Extractive Companies

Extractive companies, big or small, must abide by the laws of the country in which they operate. In most African countries, some companies behave like states within states. Therefore, it is important to guide both national and foreign companies on how they should behave.

Recommended Principles and Guidelines for Extractive Companies

Claude Kabemba's picture

Director of the Southern Africa Resource Watch (SARW)

January 13th, 2014

Extractive companies, big or small, must abide by the laws of the country in which they operate. In most African countries, some companies behave like states within states. Therefore, it is important to guide both national and foreign companies on how they should behave.

Recommended Principles and Guidelines for Extractive Companies

i.            All extractive companies must respect the political jurisdiction of the country in which they operate and in no way attempt to undermine the constitutional, regulatory and legislative environment by means of secretive, non-transparent, international or global contracts and agreements in line with certain voluntary principles such as the OECD guidelines.

ii.            SADC countries must enhance the rule of law and good governance at national and local levels to make sure that extractive companies respect national policies and are transparent.

iii.            Extractive companies must not discriminate on any grounds when employing local people.

iv.            Extractive companies must be guided by the laws of the country they are operating in when employing foreign citizens.

v.            Extractive companies’ obligation to support local communities must be mandatory and form part of national regulations.

vi.            Extractive companies must prioritise the procurement of local goods and services in a transparent manner in order to promote local development.

vii.            Extractive companies must publish annual financial reports or account statements in line with international best practice on good corporate governance.




The OECD Guidelines provide a set of principles for multinational companies on social and environmental performance, and adherence to host countries’ laws and tax regulations, and anti-bribery measures.

 

 

About the author(s)

Claude Kabemba is the Director of the Southern Africa Resource Watch (SARW). In 2006, the Open Society Initiative for Southern Africa (OSISA) asked him to spearhead the formation of SARW. He holds a PhD in International Relations (Political economy) at the University of the Witwatersrand (Thesis: Democratisation and the Political Economy of a Dysfunctional State: The Case of the Democratic Republic of Congo). Before joining SARW, he worked at the Human Sciences Research Council and the Electoral institute of Southern Africa as a Chief Research Manager and Research Manager respectively. He has also worked at the Development Bank of Southern Africa and the Centre for Policy Studies as Policy Analyst. Dr. Kabemba’s main areas of research interest include: Political economy of Sub Saharan Africa with focus on Southern and Central Africa looking specifically on issues of democratization and governance, natural resources governance, election politics, citizen participation, conflicts, media, political parties, civil society and social policies. He has consulted for international organizations such Oxfam, UNHCR, The Norwegian People’s Aid, Electoral Commissions and the African Union. He has undertaken various evaluations related to the work of Electoral Commissions and civil society groups interventions in the electoral process in many African countries. He is regularly approached by both local and international media for comments on political and social issues on the continent. His publication record spans from books (as editor), book chapters, journal articles, monographs, research reports, and newspaper articles.

Contacts

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