Who Benefits from EITI?

Governments and citizens of resource-rich countries are the primary beneficiaries of EITI. Knowing what [the] governments receive and what [the] companies pay is a critical first step to holding decision-makers accountable for the use of those revenues. Benefits for EITI implementing countries may include:

• Improved governance;
• Increased revenues available for use in national budget;
• Better management of resources;
• Greater economic and political stability;
• Prevention of conflict around the oil, mining and gas sectors;
• An improved investment climate and increased access to capital (e.g. aid, project investment and debt relief); and
• Reputational benefit of increasing trust in public institutions.

There is increasing international pressure for good governance and transparency from organizations such as the International Finance Corporation (IFC). The IFC will invest in a project only after assessing the governance and transparency risks of the project, and also requires the disclosure of revenues by host countries. Companies are also demanding a level playing field and a predictable environment in which to invest. Resource-rich countries implementing EITI may provide a clear signal to international financial institutions and investors that the government is committed to strengthening its transparency and accountability over natural resource revenues, and signal that they are a reliable country to invest in. Developing countries that join EITI may gain access to financing that they would not otherwise have available to them.