A statement signed by Mr Mohammed Amin Adam, Executive Director of ACEP stated the directive is ample demonstration of the growing desire by global leaders to expand the horizon of democratic management of natural resources particularly in Africa and the developing world.
The EU is a strong development partner to Africa and has over the years supported the development efforts of most African countries including assistance to democratic institutions to effectively deliver on their mandate to the people.
The EU directives would help facilitate a change in paradigm from resource mismanagement and corruption to sustainable transformation of natural resources to real development outcomes.
ACEP noted however that there are still resource rich African countries that have not come to terms with the growing transparency movement around the globe and are still introducing measures to create elite societies filled with rent-seeking behaviour and vested interests.
It said: “There are some countries that have introduced transparency legislations for the management of natural resources but yet are reluctant in the strict application of these legislations.”
The EU Directive like the Dodd Frank Reforms, which does not allow exemption of countries in Africa, provides great opportunity to hold the leaders of these resource rich countries in Africa and elsewhere accountable to their people.
ACEP stated that the global movement for transparency in the extractive industry must be a global responsibility without exemption.
It called on the governments of Australia, Canada, Hong Kong and South Africa to follow the bold initiatives by the EU and the United States with urgency and pass similar transparency legislations.
The statement said: “In this case, there would be no hiding place for corrupt resource companies and government of resource rich countries.”