4.2 Consultative Process in Formulating the Business Plan Process ...... The operational plan template in Annex 1 is to
INTERNATIONAL CONFERENCE ON THE GREAT LAKES (ICGLR)
SHORT VERSION RINR BUSINESS PLAN 2014-2018
Content 1. Background -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 3 1.1 Genesis of ICGLR -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 3 1.2 Evolution of RINR -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 4 1.3 Centrality of RINR -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 4 2. Institutional Challenges -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 5 2.1 Institutional and Operational Structure -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 5 2.2 Financial Management System that Responds to the RINR Needs -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 6 2.3 Partnership Management and Resource Mobilization -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 6 3. Lessons from the Recent Activities of RINR -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 7 4. RINR Business Plan -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 8 4.1 Focus of the Business Plan 2014 -‐2018 -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 8 4.2 Consultative Process in Formulating the Business Plan Process -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 8 4.3 Business Plan Components -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 8 4.3.1 Human Resources Capacity Developed with Appropriate Skills Interface -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 9 4.3.2 Institutional Process Management to Enhance RINR Implementation -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 9 4.3.3 Regional Certification Mechanism -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 9 4.3.4 Harmonization of National Legislations -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 10 4.3.5 Formalization of Artisanal Small-‐Scale Mining (ASM) – Promotion of Value Chain -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 11 4.3.6 Database for Mineral Flows -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 12 4.3.7 EITI Peer Learning Mechanism -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 13 4.3.8 Policy Environment for Sustained Legal Exploitation of the Natural Resources -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 13 5. Natural Resources Exploitation for Development -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 14 5.1 RINR and Mineral Resource Utilization for Long Term Positive Impacts -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 14 5.2 Regional Integration Promoted -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 15 5.3 Gender Dimensions of Mineral Resource Exploitation -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 16 6. Implementation -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 17 6.1 Modalities for Operations -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 17 6.2 Monitoring, Evaluation and Reporting (MER) -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 17 6.3 Resources Mobilization -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 18 6.3.1 Business Cases -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 18 6.3.2 Self-‐Financing -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 19 6.3.3 Partner Contribution -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 19 6.3.4 Trust Funding -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 19 6.3.5 Operational Plans -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 19 6.3.6 Funding Needs for 2014 – 2018 -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 21 7. Conclusion -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ 22
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1. Background 1.1 Genesis of ICGLR The International Conference for the Great Lakes Region (ICGLR) has a fairly long history. It emerged from of a series of international responses to the conflicts in the Great Lakes Region. The first initiatives for the new mechanism for regional co-operation in the Great Lakes Region were started in 1999. It was officially launched in 2004. The governments of the countries in the Great Lakes region came together under the auspices of the United Nations (UN), the African Union (AU) and the Group of Friends (GoF) in 2003 in an effort to find solutions to the problems facing the region. Since December 2003, the development partners provide the ICGLR with political, diplomatic, financial and technical support. This led first to the Dar es Salaam Conference and Declaration in November 2004, and thereafter to the signing of the Pact in Nairobi in 2006 (figure 1). The ICGLR therefore effectively came into existence on 15th December 2006 when the Pact on Security, Stability and Development in the Great Lakes Region was signed in Nairobi by or on behalf of the heads of state of Angola, Burundi, Central African Republic (CAR), the Republic of Congo (RoC), DRC, Kenya, Rwanda, Sudan, Tanzania, Uganda and Zambia. It entered into force on 21st June 2008 when it had been ratified by eight out eleven countries.
Figure 1: PACT and Protocols The ICGLR is an attempt to build a regional institution that covers a volatile region with countries and governments with different interests and degrees of involvement in the mineral resources driven conflicts. The region is a major global source of tantalum and niobium, tin, tungsten, gold and their derivatives. 3
These minerals are commonly referred to as 3TGs or “conflict minerals”. We would rather refer to them as “comfort minerals” for reasons to be explained in part C of this chapter of the Business Plan.
1.2 Evolution of RINR The problem of the region covered by ICGLR, which has huge natural resources on the one hand, and on the other hand, the presence of the disastrous effects of armed conflicts can be explained by the missing linkages between the supply chain of natural resource and the formal economy of the ICGLR Member States. The exploitation and trade within the region are frequently conducted illegally. Consequently, the wealth deriving from natural resources is unequally distributed and often finances rebel activities, which further destabilise the region. To respond to this predicament the ICGLR has developed a comprehensive approach to put an end to the predatory use of natural resources. The Regional Initiative against the Illegal Exploitation of Natural Resources (RINR) particularly aims at breaking the link between mineral revenues and rebel financing. As part of the Pact on Security, Stability and Development in the Great Lakes Region, which was signed by the twelve Heads of States in Nairobi on December 15th 2006, the Protocol on the Fight against the Illegal Exploitation of Natural Resources outlines the actions that Member States have agreed to take. This Protocol provides the legal basis for the implementation of the initiative, which consequently aims at translating the Protocol into concrete actions. Subsequent to the signing of the Pact of Nairobi in 2006, the ICGLR Heads of State and Government committed themselves to address the issue of illegal exploitation of mineral resource in the region by holding a Special Summit in Lusaka, Zambia. During the Lusaka Summit, the Heads of States and Government decided upon the use of six specific tools to put RINR into practice. Furthermore, this Special Summit served as a forum to expand partnerships with other relevant programs in the domain of natural resources exploitation such as the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High Risk Areas.
1.3 Centrality of RINR The centrality of the RINR is expressed in its ability to work with a network of Member States, industry, mining cooperatives and civil society organizations. Figure 2 attempts to demonstrate the network of actors within the framework of the RINR. Commitment by the Member States and their support to the process for the implementation of the initiatives against illegal exploitation of mineral resources is fundamental. This would ensure that the exporters, traders, processors, and middlemen within the Member State borders are compliant with the standard requirements for legal mineral exploitation.
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Fig 2: Centrality of RINR The cooperation by the industries working on mineral exploitation on ensuring compliant to the certification requirements by both the large scale mineral producers and artisanal mining is necessary. This is a key ingredient for the success in ensuring the certification of mineral products for legal trade from the region.
2. Institutional Challenges 2.1 Institutional and Operational Structure The emphasis of the Lusaka Declaration on fast-tracking the implementation of the RINR implies in practice is that the role of the ICGLR Secretariat be expanded to not only coordinate and facilitate political processes but also to guide and oversee implementation of the natural resource management in the region. The implications are that the operational structures in the Secretariat have to be recalibrated to
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meet the new challenges and current needs. The establishment of the Natural Resource Coordination Unit within the Secretariat is an important step forward. With the increased expectations from Member States towards the need to deliver on the RINR results, there is a need for a high level of coordination between Member States and the Secretariat for an effective outcome and coherent implementation on the ground. The TU will endeavor to enhance regular communication flows with the Member States at the national level.
2.2 Financial Management System that Responds to the RINR Needs There is a need for human resources in the Secretariat that are specifically dedicated to RINR resource management including regular reporting. The financial management system applied should comply with internationally accepted Accounting Principle, which includes the use of International Accounting Standards and International Financial Reporting Standards. These imply capacity development of the staff charged with resources allocated to RINR initiative at the Secretariat. Initial work in this area has been initiated with the financial support from USAID. This needs to be sustained to ensure full-fledged development of internal financial management capacity for the Secretariat. The self-financing study that was recently completed is a step in the right direction for ownership and sustainability in the long term.
2.3 Partnership Management and Resource Mobilization All the stakeholders have emphasized the need for a resource mobilization strategy. Efforts are being made to develop a framework for domestic financing. This provides a building block. A lot more remain to be done. The discussions on resource mobilization and partnership should shift to investigations on what the key aspects and actions on resource mobilization need to be put in place now and within the next 5 years; who are the key partners that are actively involved in financial and technical support to RINR and by how much. A number of development partners have shown interest to contribute in support of ICGLR initiatives. These include, among others, the Member States, UN Agencies, PAC (Canada), GIZ, EU, USAID, AfDB and private sector partners. The concern on this approach relate to the risk of ICGLR remaining dependent on partner funding for its development initiatives. There is, therefore, a need for formulating a funding strategy that responds to the priorities of the Secretariat but consistent with the needs of the MS and the contributing partners and to have clear list of pipeline donors and corresponding exist strategies for sustainability. The funding flow mechanism to the Conference Secretariat for use by the RINR should be revisited to ensure increased ownership and accountability. Except for a few cases, the current funding flow mechanism is hinged below the expected notch. To a large extent, the financial support for RINR initiatives are channeled through quasi-governmental entities. This could be a challenge as quasigovernmental institutions are also implementing entities. 6
The TU of the RINR would consider developing a funding flow mechanism that promotes direct engagement and contacts with the multilaterals, bilateral and private sector entities. This would be a notch higher than the quasi-governmental institutions. This will give the CS the leverage to own, control and be accountable for the resources channeled to the RINR initiatives. This is not to imply that he quasigovernmental entities are excluded, rather a systematic synergy has to be developed. The Business Plan would be costed to serve as a tool for resource mobilization for RINR. The clarity and the sharper focus of the expected results and related activities will incentivize the partners to contribute to the specific aspects of the Business Plan. What is required is for the TU of the RINR to initiate formulation of a partnership strategy that includes: § Strategic and intelligent information gathering for the CS to detect and provide alert to the Secretariat on the issues on natural resource management being articulated elsewhere. § Establishing a lobbying mechanism that the CS can use to trigger MS as individual countries or as groups of countries to respond to strategic emerging issue that could have impact on the natural resource exploitation and their management in the region. § The establishment of mechanism to be used to provide testimonials on lessons and practices from the region. § Providing market access architecture for strategic minerals products from the region.
3. Lessons from the Recent Activities of RINR Despite of being a relatively new initiative, the RINR has already achieved some remarkable successes in its fight against the illegal exploitation of natural resources in the Great Lakes Region. These include § Establishment of Regional Certification Mechanism; § A certification manual has been developed and approved by the 12 Heads of State. It provides a practical guide for the implementation of the Regional Certification Mechanism. § The submission of a draft legislation model to the Committee, which will make it easier for ICGLR Member States to domesticate the legal provisions of the Protocol against Illegal Exploitation of Natural Resources into national legislation. § Production of the test version of a database which has already started to gather data on the production and exports of selected natural resources; § Initiating the process to set up the Regional Audit committee for the management of third party audits. § Implementation of the decision to set up a laboratory for the Analytical Fingerprinting in SEAMIC, in Tanzania
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4. RINR Business Plan 4.1 Focus of the Business Plan 2014 -2018 The ICGLR-RINR Business Plan 2014-2018 aims to provide a framework for addressing regional challenges related to the exploitation of natural resource endowment for the benefit of the population. It will aim to mobilizing the resources for implementation of initiatives and priority programmes enunciated under the Strategic Plan of ICGLR. The RINR Business Plan will enable the member states to collaborate within the framework of planned activities to achieve positive gains in the exploitation of the natural resources in the region.
4.2 Consultative Process in Formulating the Business Plan Process The elaboration of the ICGLR Business Plan involved extensive consultations with different stakeholders including Government, industry, civil society and development partners. Specifically the following entities and organizations were engaged in the consultation process: ICGLR Secretariat, Ministries of Mines/Energy (Burundi, Rwanda, Uganda, DRC, Kenya, Zambia, Sudan and Congo Republic); Ministries of Foreign Affairs (Uganda, Rwanda, Kenya, Zambia, Soudan and Congo Republic), Members of the ICGLR Audit Committee, and United Nations Economic Commission for Africa (UNECA). In addition, consultations were held with GIZ, German Institute of Geosciences and Natural Resources (BGR), Partnership Africa Canada, Australia-Africa Partnership Facility, USAID, Service for Development Assistance for Small Scale Mining (SAESSCAM) in DRC. A number of independent individuals were contacted for their insights and contributions.
4.3 Business Plan Components The RINR Business Plan is comprised of 3 higher-level outcomes to be actualized through 12 main areas of focus divided into 19 sub-areas of focus. The areas of focus are broken down into expected results to be realized through the series of identified activities to be implemented over the Business Plan period. Achieving each of the expected results will be the responsibility of the Technical Unit in liaison with designated entities within the ICGLR and working together with the Member States and institutions interested in particular aspects of the Business Plan. This is to be undertaken within the framework of a given timeline. During the business plan period, a fund raising strategy will be formulated to facilitate mobilization of resources to fill up the financial and technical needs for the planned activities. The components discussed below are specific and linked to the three higher-level outcomes.
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4.3.1 Human Resources Capacity Developed with Appropriate Skills Interface From ICGLR perspective, the bottlenecks in successfully responding to human resource challenges in the natural resource sector include: the absence of a concerted human resource development and training approach to recruiting, training and re-training the staff; training materials that can be easily used; lack of information on training providers; and insufficient financial resources for training. During the business plan period, a clear training approach will be developed taking into account the immediate needs to ensure the implementation of initiatives under the RINR. The aspects for capacity development will include: § Staff skills development to respond to the need of RINR. Specific skills include, audit processes focusing on training for the Audit Committee; data analysis and reporting; analytical finger print; training of database focal persons in the member states; and knowledge management. § Capacity building for coordination at different levels including: coordination between the ICGLR programme that contribute to RINR initiative; coordination between RINR-Technical Unit and Member States; coordination within the Member States; and coordination of partners/donors. § Long term human capacity development natural resource management. This will call for regional joint activities on higher learning by the member states § Human health that address the health-related impact on sector productivity in the region
4.3.2 Institutional Process Management to Enhance RINR Implementation The establishment of the Natural Resources Coordination Unit at the ICGLR with full dedication to focus on RINR initiatives was long overdue. Regional Inter-Ministerial Committee (RIMC) approved the establishment of the Unit. The Unit is to be staffed with required expertise to implement the initiatives under RINR programme. A number of partners including the German cooperation through GIZ and BGR; AfDB; USAID, PAC of Canada, Australia and EU have been engaged for finance and Technical Corporation to support the Unit. The Unit will consist of the Programme Officer, Natural Resource Coordinator and staff with specific expertise required to leverage versatility and effectiveness of the initiatives under RINR. 4.3.3 Regional Certification Mechanism The association of the mineral exploitation in the Great Lakes Region with the informal sector and the financing of armed rebellion has been a concern to the Member States (MS). This association is a major factor of instability in the region and obstructs the potential contribution of natural resources towards sustainable development. The mineral exploitation should meet requirements for the due diligence for conflict free supply chain). To address this problem, ICGLR has spearheaded the establishment of a Regional Certification Mechanism which aims to monitor the supply chain of conflict-prone minerals. This is to ensure that neither mine site nor channels of trade within this particular region are in predatory control of armed groups or criminal networks. 9
The Regional Certification Mechanism is the core tool of the Regional Initiative against the Illegal Exploitation of Natural Resources (RINR). All ICGLR Member States support it. The twelve Heads of State at their Lusaka Summit formally endorsed it on 15 December 2010. It involves actors from the private sector as well as states and civil society. The full understanding and commitment to implement the certification mechanism needs to be enhanced through continuous sensitization sessions for the Member States. Its successful implementation is contingent on four pillars, which must be activated by the Members States. These include: § Chain of custody tracking from mine site to export; § Regional tracking of mineral flows via ICGLR database; § Regular third-party audits; § An independent mineral chain auditor.
4.3.4 Harmonization of National Legislations The management of natural resources and their sustained exploitation is predicated on harmonized policy instruments put in place for investment in the sector. As the exploitation of the natural resources is profitdriven, the harmonized policy instruments should lead to competitiveness of products from the investment in the mineral resource sector. The harmonized policy should demonstrate common thread across the Member States. In considering process on national legislation, three issues should be emphasized: the commitment of the member states to initiate the legislative reforms; the extent to which the member states are ready to use the “model law” and domesticating it for reforming their mineral laws, and the realization that the implementation of the “model law’ requires a diligent process to make it part of the national legislation.
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4.3.5 Formalization of Artisanal Small-Scale Mining (ASM) – Promotion of Value Chain The ultimate objective is for ASMs to be a formalised and organised to undertake profitable activities that are technologically efficient, socially and environmentally responsible. The development of ASMs should be within a framework of good governance and provided with adequate legal backing to ensure freedom to expand their businesses. The process of formalization should aim to improve workplace conditions (photo 1), local development, poverty reduction and social justice within localities of their operations. The ASMs should be provided with guidelines explaining what labour, organisational, environmental and traceability requirements they have to meet to gain the larger market access for their mineral products. The promotion of artisanal mining is fundamental in the process of integrating ASM into local economy. Formalization of the ASM will enhance the productive capacity of the subsector leading to Photo 1: Artisanal Miners (Source: From Fragility to Resilience, 2014) increased revenue generation and subsequent revenue to the national economy through taxation. The current operations of the ASM miss out in creating forward and backward linkages in the economy. This results into loss of job creation, value addition and innovations. The operations of the ASM are complicated. It is not only the small-scale miners that are involved. There are also behind the scene actors and middlemen that complicate the business equations of the small-scale mining in the region. All these factors need to be considered in formulating an ASM strategy. The transit countries of the 3TsG should be considered to understand the parties involved in the process. A clear understanding should be made on the routes of gems in the region. The effort of promoting ASM in the region is a joint responsibility by all Member States. They should initiate activities to provide of extension services and capacity building to ASMs as they have huge potential for economic transformation for the region. Initiative by member states should aim at improving regulations, particularly in terms of simplifying registration and accounting requirements thus increasing ASM productivity. The specific issues for attention need to expand promote and improve the effectiveness of the ASM include: § § § § §
Need to formulate a regional policy framework on ASMs Develop a regional standards for ASM Undertake legislative and legal reforms to create environment for ASM operations Undertake mapping of available resources in the respective countries Provide extension services 11
§ § § §
Promote use of IT in the sub-sector Promote forward and backward linkage through prompting value chain Develop a strategy to expand market access for the ASMs Identify financing channels and credit lines for the ASMs
4.3.6 Database for Mineral Flows Database is important for maintaining credibility of the regional mineral flow. Data are transmitted to the Conference Secretariat on monthly basis. Analysis is undertaken on the data provided. This is meant to establish the match between the export and import data from each of the participating entity. Any discrepancies in the data match are significant, as they will determine whether or not the entity is compliant. It is for this reason that the credibility and accuracy in the data management is vital. For transparency and accountability, all the data and the analyses are made available for public access. The data management for regional mineral flow will need to be enhanced by way of supporting the Natural Resource Coordination Unit of the RINR to promote the following: § § § § § § §
Commitment by the Member States to provide timely and accurate data on mineral flow Creation of awareness among the Member States on the necessity to share data for effective trade Regular update of the database Regular publication of the database Use of the database for the production of monitoring reports Facilitating access to the database to enable the CSO and private sector to use them Integration of the database management within the Conference Secretariat – the current database system is located and managed at GIZ office by BGR team
Linked to the database management is the concept of Analytical Fingerprint (AFP). This is a scientific technique for determination of the origin of minerals in the region. The techniques are discussed in details in the AFP manual1 on methods and application. Analytical Fingerprint is applied as an optional part of a supply chain risk assessment, audit, or any other type of investigation within the RINR regional certification mechanism. It is a tool to verify standard due diligence measures thus allowing for an overall robust risk assessment, with corresponding benefits for international credibility of the RINR scheme. The process of AFP requires highly specialized and equipped analytical laboratory. A technically feasible, construction of a full-scale AFP laboratory in an ICGLR member state; a technical evaluation study by an independent consultant identified Southern and Eastern African Mineral Center (SEAMIC) in Dar-essalaam, Tanzania, as the location that is technically most suitable for the construction of a full-scale AFP laboratory in the region. 1
The Analytical Fingerprint: Method and Application – Process Manual, Version 1.3, January 2014
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This process is yet to be completed. It calls for joint consultations among the Member States to determine the best modality for the investment on the AFP laboratory. This would be an investment that would benefit the whole region while generating income to SEAMIC. It lends itself for joint investment by the Member States and the private sector in the region. An investment portfolio to respond to this opportunity should be initiated.
4.3.7 EITI Peer Learning Mechanism A number of ICGLR member States have endorsed the standards of the Extractive Industries Transparency Initiative (EITI). . The experiences and lessons from more advanced countries on management of revenues from the exploitation of natural resources would be very valuable to the ICGLR as an instrument for the facilitation of a peer learning mechanism. The Levy Mwanawasa Regional Centre for Democracy, Good Governance, Human Rights and Civic Education is working with MS to evaluate how best to domesticate the practices from EITI initiative. The Centre is a Regional Think Tank for ICGLR. Among other issues, it focuses on documentation of what has been done on the EITI implementation in a number of MS. This provides important ingredient for cross-country learning and information exchange country experiences on EITI. The Centre also documents learning from other similar initiatives’ experiences such as the Construction Sector Transparency Initiative (CoSTI). Drawing lessons from each other will encourage information sharing. A mechanism for information sharing and knowledge dissemination on natural resources exploitation should be established by the RINR Technical Unit building on the system already established under EITI. This will provide a platform for eenhanced learning and sharing information and knowledge on what is working and what is not working in the natural resource exploitation. It will also help in setting of priorities, improvement of practices and monitoring interventions in exploitation of natural resources in the region. As a means for information sharing a regional forum for private sector would be organized during the course of business plan period.
4.3.8 Policy Environment for Sustained Legal Exploitation of the Natural Resources The long-term aspiration of RINR is to promote sustained legal exploitation of the natural resources in the region. This requires public-private sector partnership. For private sector to sprout in the region, there is a need to maintain peace and stability. The investors need a conducive environment with stable policies and correct economic fundamentals such as macro-economic inklings, clear financial and fiscal policies. Political instability is a disincentive to investment. Equally, lack of transparency in business processes discourages investments.
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The investment environment should be a paramount consideration in the quest to attract local and international financial flows for investment in mineral sector in the region. Taxation regimes should take into account the competitive needs of the potential investors. The main objective should be the creation of a stable tax regime. In general, investors prefer taxation by one level instead of several levels due to the lack of coordination and predictability that the latter approach is likely to engender. Where several levels of entities are empowered to levy taxes, complications can arise where incentive allowances granted by one level do not match those allowed by another. There is a need to consider organizing a business round table, possibly in collaboration with the African Business Roundtable group. Efforts should be made to promote regional industrialization strategies that enable value addition to the mineral products from the region. Specific issues that will be promoted by the Technical Unit of the RINR over the Business Plan Period include: § § § § §
Need to address governance issues in the region to ensure political stability, security and inclusiveness; Common mining code to be developed by the Member States as this will facilitate ease with which management of investment in the mineral sector can be achieved; Making efforts to achieve legal harmonization of mining laws. An action in this area is already in progress in Rwanda and DRC. The Model Law developed by ICGLR would be disseminated to the privates sector in all members states Artisanal mining should be addressed both at country and regional levels. There is a need to formulate an ASM policy and to encourage cooperatives for the ASMs.
To create impetus for regional integration, the RINR, within the framework of the Conference Secretariat, will endeavour to facilitate synergy for joint investment between and among member states to handle large-scale long-term ventures such as infrastructure development and joint undertaking for long-term industrialization. This will be done in collaboration with the other Regional Economic Commissions (RECs) in the region. These include, but not exclusively, East African Community
5. Natural Resources Exploitation for Development 5.1 RINR and Mineral Resource Utilization for Long Term Positive Impacts The RINR focus on promoting the exploitation of natural resources in the region would be hinged on how the mineral utilization would have long-term positive impact on the livelihoods of the population in the region. The investment architecture must be comprehensive taking into account the potentials for regional integration and cooperation among the Member States for joint investments. The huge deposits of tin, tantalum and tungsten (3Ts) and other minerals in the region (Congo, Rwanda, Uganda, Burundi and Tanzania), provides an opportunity for commercial mining. Most of the production 14
of the 3Ts is currently achieved through artisanal methods. With certification, large companies would be attracted to the region to transform the mining areas into medium to large scale mechanized mining operations. What is required is to encourage mining production that add value to the primary products. For instance, a joint venture between DRC, Tanzania, Rwanda, Uganda and Burundi could be initiated to set up a smelter for regional production. A regional smelter would lead to increased realization of export earnings and royalty payments. This is good for the cooperating Member States. On the long-term investment strategies, the region should consider joint projects to be based on the abundance on natural resources such as iron ore and copper. Specifically, the Member States consider investment in iron and steel industry. The exploitation of the natural resources in the region should be linked to the promotion of beneficiation of the minerals to enable creation of value addition. They should not be developed as enclave for the external industries. The development and management of the resources should therefore be integral part of the national economies of the Member States and therefore of the region. The mineral wealth in the region is extensive. These include the 3Ts, gold, iron ore, alumina clay, rare earth, phosphate and copper among others. To realize the development of these resources, the region needs to invest in infrastructure such as energy, roads and railways, which are needed to exploit these mineral resources. It must also be stressed that security and predictable and conducive environment are necessary conditions, though not sufficient for attracting the investment in the region. The critical issue is to establish vertical integrations within the economies of the Member States. Integration between the mining sector and other industrial sector is good for wealth creation and employment. The investment in the infrastructure along the various transport corridors should be linked to the opening up of the local economies and to enhance the forward and backward linkages. To-date the emphasis has been laid on royalties from the mining industry. The other aspect of multiplier effects should be embraced. These effects could be achieved from integration of the sector to promote supply chains, and employment generation.
5.2 Regional Integration Promoted Regional integration would provide a good development path for the Member States of the ICGLR. To a great extent, integration would focus on natural resource management of the regions. With increased integration, the regions would be able to speak with one voice at the international level. Integration would contribute to the judicious and sustainable exploitation of natural resources in the region thereby emphasizing the expected outcomes of the RINR. It is important that the countries in the region invest in geological mapping of the occurrences of minerals in the respective Member States. This could provide an opportunity for a joint project by more than one member state within the framework of trans-border initiatives. The argument for geological mapping is hinged on the fact that the natural resources to be managed in the region must be known. No management
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would be successful if the mineral locations, quantities and values are not known. Uganda has provided a lead on this and has more detailed information on its mineral resource endowment. To achieve the objective of getting to know what minerals are available in the respective member states, the entities/departments of geological surveys and mines should be enabled, empowered, and strengthened through training, international exposure, access to technology, appropriate equipment and laboratories. Furthermore, the Member States should expedite harmonization of legal framework guiding the mining laws in the respective countries. This will ease the effort to promote intra-regional trade and integration of the mining activities in the economic sectors in the region thus enhancing forward and backward linkages.
5.3 Gender Dimensions of Mineral Resource Exploitation Armed conflicts related to the exploitation natural resources in the region have led to traumatic consequences on the lives of residents in general, but in particular the women and children. The human dignity and human rights of women and the girls have been violated by the impunity of a systemic culture of rape and other forms of sexual violence that prevail during armed conflicts. The violence against women and girls portrays big challenge in terms of efforts to maintain peace and security in the Great Lakes region. To respond to this challenge, the ICGLR member states adopted Protocol 7 Article 11 of the Pact, to address the issue of Sexual and Gender Based Violence (SGBV). The focus of this protocol is to expedite stopping of human rights violations against women and children and the sexual exploitation of girls and women and their use as sex slaves. This regional protocol cannot be actualized unless it is domesticated and related to national laws in member states. The TU will collaborate with the programme on SGBV to forge ahead with initiatives that respond directly to gender issues. A number of partners are interested in supporting this initiative. These include GIZ and USAID among others. Mismanagement of natural resources in the region can lead to “conflicts” and widen the gap in social wellbeing of women, girls, disabled persons and the elderly by exposing them to extreme acts of SGBV. These acts impede development and therefore put peace and security at risk. If, however, these same natural resources are judiciously managed, they will be source of “comfort” leading to generation of income and gender economic freedom and improved social wellbeing of the status of women as has been demonstrated in some ASM sites and small businesses that emerge in the communities around some mining areas in the region, such as the cases in small scale mining in Rwanda.
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6. Implementation 6.1 Modalities for Operations The Implementation of the initiatives articulated in the Business Plan will follow an agreed time frame. The pilot annual operational plan will be responsibility of the Natural Resource Coordination Unit of the CS. The country level operational plans will be the responsibility of the ICGLR National Coordinators. The contents and emphasis may be different for different MS, depending on different starting points and actual implementation drive. The operational plans at both regional and country levels will endeavor to keep a common thrust and objectives of the Business Plan. The planning modalities will remain flexible to accommodate the unique features of the MS and different mining sub-sectors. The flexible approach and in-built internal coherence and harmonized natural resource management policies would be built around existing CS strategic plans and MS which are already incorporated well into the implementation of specific areas, even beyond activities belonging strictly to ICGLR programmers. The added value of this approach would be to look at existing sector progress in each of the RINR initiatives and those of the Member State and to find a niche for joint initiatives either as synergy-creation across sectors and countries or in some cases as multi-purpose programmes related to specific sector such as infrastructure, industry or value chain development plans which identify and address in parallel bottlenecks on natural resources. A flexible implementation approach could mean that specific cluster of countries could design and implement joint initiatives for natural resources management among those with concrete interest in a particular aspect of natural resource exploitation. An example could be regional smelting project building on the regional needs to establish a smelting plant for value addition
6.2 Monitoring, Evaluation and Reporting (MER) Monitoring, evaluations and reporting will be conducted by way of assessing the on-going or completed key areas of focus. The aim of monitoring and evaluation will be to determine the relevance, efficiency, effectiveness, impact and sustainability of the areas of focus. Priority will be given to the capacity development initiative, progress of implementation of the six tools of RINR and domestication of investment policy framework.
The MER of the activities will endeavour to compile information stated as indicators in the BP for easy and consistent reference. For each the BP result area, one or more quantitative and/or qualitative indicator(s) for monitoring progress are identified. A template for monitoring and evaluation schedule for selected initiatives is given in annex 2.
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The monitoring and evaluation activities are to be planned on yearly basis by subject areas of focus with the aim of pursuing implementations and results of planned activities. Yearly M and E activities will be included in each of the CS report to the Regional Inter-Ministerial Committee (RICM). Annual performance data by key result areas will inform the on-going reviews of performance to ensure that the activities within the framework of RINR remain on track vis-à-vis the business plan objectives. This data will also be used for annual reporting to Steering Committee and the RICM meetings. Reporting will centre on the progress on implementation of initiatives against illegal exploitation of natural resources. In 2016, a comprehensive and analytical review of the Business Plan will be undertaken and the result of progress presented to the stakeholders and member states. The review will not only report on implementation of RINR initiatives but will also assess achievements in terms of intended outcomes, verified by and evaluation data, and identify lessons learned and best practices
6.3 Resources Mobilization The objective is to establish a resource framework that shows funding requirement for the Business Plan encompassing the resources that can be contributed directly to the CS and managed within its budget structures, as well as the resources that are managed by MS and development partners as part of joint initiatives. The joint initiatives would benefit from resources emanating from, member states, privates sector, and targeted bilateral and multilateral sources, aimed to address natural resources management initiatives. The resource contributions need to reflect the priorities of the region and the MS, ensuring that the nature and sources reflect the work of the RINR as well as the overarching goal of strengthening support for the achievement of the goals outlined in the Business Plan.
6.3.1 Business Cases For each of the areas of focus, the TU will aim to develop a project by initially formulating a business case2 per focus area. The business cases will be used as instruments for soliciting funding from the MS, partners, private sectors and any other stakeholders. At least twelve business cases would be expected over the business plan period. With the business cases in hand, the TU has a number of possible modalities to explore in order to mobilize resources for the RINR. These include: self-financing mechanism, partner contributions and trust funding.
2
The business case would aim to ensure that any resources allocated should be in support of a specific business need. The business case should justify the rationale for the proposed project and demonstrate how the project improves the exploitation of natural resource for the benefit of the region. A compelling business case adequately captures both the quantifiable and unquantifiable characteristics of a proposed project
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6.3.2 Self-Financing A recent study3 for ICGLR proposed that the member states contribute 5-6% of the budget of the RINR Natural Resource Coordination Unit, with the remainder funded by a levy on the export from ICGLR member states of tin, tungsten and tantalum (3Ts) and gold. This could later be extended to other natural resources exploited from the region. The study further proposed that the member states’ contribution be equally divided between ICGLR member states in the form of a ‘small flat fee’, estimated at US$5000. This would be collected through an increase in the annual contributions of member states. This is an important initiative which should be actively be explored during the Business Plan period.
6.3.3 Partner Contribution The partners interested in implementation of different components of the areas of focus may enter into partner contribution arrangements. This will enable the partners to enter into the agreement to contribute proportional shares of costs relating to the development of specific activities, based on their comparative advantages and anticipated benefits to be derived from implementation of the activities. The Member States, private sector and non-state institutions to contribute and participate in joint initiatives can explore this modality.
6.3.4 Trust Funding Trust funds modality has been used effectively in other regions like in the Latin America and Caribbean region. The MS in such projects like infrastructure, smelting industries and higher learning education can explore it within the framework of RINR activities especially in pursuing joint investment. This will require technical support and guidance from UNECA and AfDB and strong backing from development partners, which would have to commit their support for the establishment trust funds, to meet emerging needs of the member states in the sub-regions. 6.3.5 Operational Plans The Business Plan will be implemented through Annual Operational Plans including specific benchmarks and budgets. The objectives of the annual work planning are to promote implementation of concrete activities identified by the Natural Resource Coordination Unit (NRC). The Unit works closely with MS and other stakeholders to foster regional synergy in natural resource management, enhance implementation of initiatives against illegal exploitation of natural resources on the region, promote investment orientation that responds to the development need of the region by creating linkages between 3
Adam Smith International, GIZ Support Program to the International Conference on the Great Lakes Region: Establishing a self-financing mechanism for the Regional Certification Scheme, ASI, London, 2012.
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natural resource sector and the rest of the economy, deepen actions on sexual based gender violence, strengthen peer learning and knowledge management and provide incentives for IT for development. The attainment of the key results of the Business Plan will require that the CS jointly with the MS and with the respective partners work in unison to embrace joint initiatives that would yield the desired results. The operational plan template in Annex 1 is to be populated on annual basis by the Natural Resource Coordination Unit. This will guide the implementation of the Business Plan both at the Conference Secretariat and the MS levels. For each expected outcomes, the operational plan template will attempt to identify key result areas, expected outputs, timeline, responsible and collaborating parties, risks and constraints and resource requirements. Annex 3 provides a detailed result mapping straddling the duration of the Business Plan period. This provides a roadway for the implementer as a ready reckoner. The National Coordinator, in liaison with the Natural Resource Coordinating Unit, will be responsible for developing annual operational plans for natural resource management at the national levels. The operation plans will be informed by the content of the five-year business plan. It will reflect unit country level development challenges to be addressed during the annual planning period. Each of the result areas can have one or more activities. Specified activity would lead to one or more outputs. The activities should have clearly defined timelines with parties responsible and collaborating in the implementation of the activities. Attempt must be made to identify possible constraints and risks that might slow down the progress of implementation. The responsible parties in liaison with the TU should ensure that the internal and external resources are mobilized for the planned activities. In addition, the TU will monitor the progress of the implementation of the planned activities and report on the status of their implementation.
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6.3.6 Funding Needs for 2014 – 2018
Indicative Budget (US $) Sub-‐Total Mineral Commodity Lessons and PracVces Shared Value AddiVon
420 000 480 000 450 000 180 000 180 000 700 000
Whistleblowing Database for Mineral Flow Value Chain Capacity for ASM LegislaVons and
InsVtuVonal Process Mgt
4 699 000
2 289 000
585 000 611 000 1 031 000 600 000 650 000 620 000 540 000 510 000 895 000 1 970 000
8 012 000
3 067 000 1 061 000 2 006 000
Fig 3: Indicative Planning Budget The outcome areas identified under the Business Plan will determine the funding needs. Resource mobilization and allocation are to be established at the level of expected results and the specific activities thereof. The responsible and collaborating parties, working in tandem with the TU and Steering Committee will promote resource mobilization by applying different fund raising modalities discussed under chapter 4 section C of this document on resource mobilization. The actual amounts needed to realize the implementation of the natural resource initiatives and activities during the Business Plan period is estimated to be 15.8 million dollars, with focus area details shown in figure 3 This would be subject of continuous dialogue with Member States, private sector entities, development partners and stakeholders as the work of the Business Plan roles forward. The costing details are worked out based on proforma costs used by UN. This includes consideration of expected travel costs, expertise on specialized fields, consultancy services, training, workshops and seminars, subsistence among others. These estimates provide the stakeholders and development partners with the idea of the magnitude of resource needs thereby enabling them to indicate financial commitments to specific initiatives and activities in order to realize the expected results and outcomes. 21
7. Conclusion The RINR Business Plan 2014-2018 aims to provide a framework for addressing regional challenges related to the illegal exploitation of mineral resource endowment in the region for the benefit of the population. It emphasizes on the mobilizing of the resources for implementation of initiatives and priority programmes consistent with the Strategic Plan of the ICGLR. The Business Plan will enable the member states to collaborate within the framework of the RINR to achieve positive gains in the exploitation of the natural resources in the region. The Business Plan is both a framework and a vehicle for addressing regional challenges related to natural resource exploitation, which at times has escalated conflicts in the region. The Business Plan will enable the region to expand collaboration within the framework of RINR initiatives to achieve positive gains in the efforts to promote socio-economic development and regional integration agenda. The key focus areas to be addressed during the Business Plan period include: human and institutional capacity; quest to realize the goals and objectives of RINR including harmonization of mining legislations, formalization of ASM, developing a database for mineral flow, peer learning and whistle blowing; investment strategy including investment policy environment; value chain and women empowerment. Appreciations go to UNECA for providing financial and technical support to the process of developing the business plan.
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