The 2015 report on the Extractive Industries Transparency Initiative (EITI)-Congo was published on Wednesday, February 7, 2018 in Brazzaville by Florent Michel Okoko, Chairman of the executive committee. The 16 pages document was drafted in December 2017 by Finergies, a French office, which had been selected as an independent administrator. It contains information on the state revenues from three sectors in which 134 companies are involved : hydrocarbons, mines and forests.

The report aims at enabling a better understanding  of the extent to which the extractive sector contributes to the economic development of the Congo.

The document reveals that  the Congolese State collected (based on the estimates made  following the statement of income made by businesses and the revenues collected by the Tax and  land  department ) more than 550 billion CFA francs ( 1 billion  US  dollars) from  businesses involved in the extractive sector  as follows : 512 milliards  CFA  francs ( 0.9 billion  US dollars)  from  hydrocarbons ; 4.9 billion CFA  francs ( 8.3 billion  US dollars US)  from  the mining sector  and 33 billion  CFA francs  ( 56.7 billion  US dollars)   from the forest sector.

The report also points out that  the money collected would be around 37% of the State revenues (non donations), based on the level of revenues  appearing in the law and regulations  for 2015. In this regard, Congo is considered  as one of the so called rich countries in terms of  extractive growth  according to the nomenclature established by the IMF.

The report  points out with satisfaction that  the recent progress made in implementing article 2 of the new oil code (enacted in October 2016).  According to Finergies,  the adoption  of  a transparency  code (enacted in March 2017)  ought to make things  easy.

Progress made and recommendations

It appears that some progress has really been made. Yet, the report points out some weaknesses.  It is about governance and transparency  on the use of the revenues from the extractive sector where more efforts have to be made. It also recommends that the coordination  and exchange of information be improved between the various State bodies, the aim being to collect more revenues from the extractive sector.

In order to stimulate the EITI process and to improve the public governance  of  extractive industries  in Congo, Finergies recommends that  the executive committee of EITI-Congo :

-  takes similar measures to mobilize some stakeholders of EITI,  so that more extractive  businesses  diligently get involved in the statement process  and  EITI reports be issued in less time. In this regard,  the progress made  with the drafting of  article 2 of the new oil code (enacted in 2016) and the adoption of a transparency code  (enacted in March 2017) ought to make things easy;

- understands the cause of the weaknesses  of the DGID in the statement process by working with the Congolese administration,  so that EITI future reports be as complete as possible  as regard revenues  from the extractive sector;

- encourages responsible ministries  of the extractive  sector  to keep on making efforts in view of  the progress made recently so as  to set up  oil, mining and  forest registry offices, once updated at an appropriate time, would centralize the names of persons to get in touch with and  information available on extractive businesses registered in Congo.

With a view to achieving more  transparency  in the sector, the oil, mining and  forest  registry offices would be at the disposal of  the public , specially through the  websites of the responsible ministries  and  EITI Congo's website as well;

- encourage responsible ministries, the Ministry of Finance first, to adopt a specific tax nomenclature  for the mining sector, so as to enable the Congolese administration appropriately monitor the extractive sector revenues;

- encourage  responsible ministries, the Ministry of Finance first, the Ministry of economy and industrial development and promotion of the private sector ( the present  Ministry of Economy, Industry and Public Portfolio),  the Ministry of Hydrocarbons and the Ministry  of Mines and Geology  to keep on implementing  the recommendations made  in the EITI reports of the years : 2010, 2011, 2012, 2013 and 2014;

Finergies office also  recommends the following to the executive bureau of  EITI-Congo;

- to follow the activities  of the mining sector, the revenues of which are still low in terms of contribution,  on the basis of the State's statement, by concentrating on the  follow up  of oil revenues.  The processing of the mining sector revenues by comparing statements made both by the State and   businesses will be an option to look at again  following the issuance of EITI report of 2017,  so as to cover the activities of  Societé de recherches minières (SOREMI) , a mining research company,  whose production  started in March  2017;

- to consider if it is appropriate to examine the flow of property tax for the mining sector  during the next proceedings for comparison;

- to maintain the principle of  an additional statement related to the other important  payments for the next EITI financial years, so as to allow the coverage in EITI reports of all important payments from the extractive  sector, and to  better understand the practices  of the Congolese extractive  industry;

- to keep on making efforts based on the progress made  following the issuance of EITI report  for the implementation of  EITI 2016  standard, specially  the statement relating to data of each  project and the documents on the true property  of  extractive  businesses operating in  Congo.

As a reminder, EITI is a voluntary initiative which aims at improving the governance of public revenues from  mining activities  in countries rich in oil, gas and mining resources. The Republic of the Congo joined the initiative in 2004. Congo was considered as a candidate in 2008 and became a member in February 2013.

Press department  of the Ministry of  Finance