Economists have urged legislators to ensure transparency and accountability in the country’s extractive industries if revenues generated in the sector are to have a positive impact on society.

This was said at the first day of a three-day consultative meeting on the role of parliament in the development of extractive industries taking place at the Parliament Building in Kimihurura, yesterday.

Organised by the Commonwealth Parliamentary Association, the International Monetary Fund (IMF), the World Bank Institute (WBI), among other partners, the meeting is running under the themed,”Transparency and Accountability in Extractive Industries: The Role of the Legislature.”

Mitchell O’Brien, World Bank’s governance specialist, said although many developing countries are endowed with natural resources, they remain marred with challenges that have made it difficult for them to utilise these resources to reduce poverty.

O’Brien believes that the ultimate solution to such challenges facing natural resource management is good governance.

"Instead of contributing to poverty reduction and economic growth, resources lead to corruption and underdevelopment…we strongly believe that one-way solution is good governance,” said O’Brien.

He said good governance spearheaded by institutions like parliament can be fundamental in putting things right and ensuring accountability of revenue generated from minerals and other resources.

"Parliaments should have access to contracts, work with civil society groups to obtain information and expertise on the operations of resource projects and ensuring effective monitoring of resources and revenues,” O’Brien added.

Mitra Farahb, the IMF country manager, noted that accountability in the mining sector has become an increasingly important topic of the IMF policy advice and technical assistance.

She cited Rwanda for having increased its extractive export revenues to a third of the country’s total foreign exchange earnings.

"This is quite impressive. The extractive industry has potential to also become a key source of government revenue,” she said.

Helping govt reap

Mitra also said IMF has provided numerous technical assistance missions to Rwanda to help the country institute legislation aimed at helping government reap the best of revenue from extractive industry.

"Stable, credible, transparent and accountable, fiscal regime, is also key to promoting sustainable mining investment as well… Rwanda, by applying a uniform fiscal regime to all its mining companies, has provided a strong signal of cooperation and fairness to have prospective investors,” Mitra said.

While opening the meeting, Senate President Bernard Makuza said the seminar’s theme (transparency and accountability) was something that Rwanda fully embraced.

"In Rwanda, transparency and accountability, including zero tolerance to corruption, are critical for the efficient functioning of our institutions, and for fostering social wellbeing and economic development,” Makuza said.

"We hope to share our commitment and our vision, for a transparent and accountable resource management.”

The Senate president said Rwanda has high hopes in the growing extractive industry, as an important opportunity of off-farm employment.

Rwanda is endowed with natural resources such as minerals, forestry, water, methane gas, and wild animals.

Tourism, agriculture and exploitation of minerals, particularly coltan, cassiterite, and wolfram, as well as tea and coffee production, are the most significant of them all.

The World Bank Group’s latest economic analysis for Rwanda noted a growth rate of 5.7 per cent in 2014, and reported that the economy has the potential to achieve a higher growth rate of 6.6 per cent in 2015.

Rwanda is one of the newest Members of the CPA, joining during the General Assembly in Kenya in 2010.

The seminar aims to discuss ways in which legislators can be part of the transformation of the mining sector and ensuring that the revenue generated in the industry are put to good use for sustainable development.

The meeting brings together about 50 participants from Australia, Cameroon, DR Congo, Cameroon, Seychelles, Uganda, Niger, Nigeria, Tanzania, Zambia and host country Rwanda.editorial@newtimes.co.rw