Frequently Asked Questions

The Extractive Industries Transparency Initiative (EITI) is a global standard that promotes the open and accountable management of extractive resources which includes the oil, gas and mining sectors. It requires companies disclosing what they pay and Governments what they receive along the entire extractive industries value chain. The EITI is a coalition of governments, companies, civil society groups, investors and international organizations working together. It supports improved governance in resource rich countries through the full publication and verification of company payments and government revenues from oil, gas and mining operations.

We define the Extractive Industries as the oil, gas, mining and forestry industries.

EITI implementation in Malawi is overseen by a tripartite arrangement of a Multi Stakeholder Group (MSG) comprising members from Government, Industry and Civil Society Organisations. The MSG is supported by a Secretariat (MWEITI) which oversees EITI implementation on a day-to-day basis.

• Revenues from the extractive industries should be an important engine for economic growth leading to sustainable development.
• Some countries rich in oil, gas and minerals have under-performed relative to other countries without natural wealth. There is a close correlation between the countries rich in natural resources and the countries with high levels of poverty.
• Transparency over payments and revenues increases accountability and therefore the likelihood that the revenues generated by the development of natural resources are used in an efficient and equitable manner. It can also reduce the risk of diversion or misappropriation of resources.
• EITI as a planning tool – because of its reliable data and information, this could be used for research to establish areas for focus during development of strategic policies for the extractive sector.
• It will help to build trust among various stakeholders and thus minimizing conflict in the long run.
• Promote the good will of government as a partner in sustainable management and development of the extractive sector.
• It will help address the challenges related to the informal and Small-scale Artisanal Miners whose activities can make a significant contribution to GDP.
• The credibility earned by the country from EITI implementation will attract more foreign investment into the sectors.