Ghana Extractive Industries Transparency Initiative: SAP Solution for GhanaSAPPresentation Transcript
Ghana Extractive Industries Transparency Initiative: SAP Solution for Ghana Steve Williams, Director, Corporate Social Responsibility, SAPMay 17, 2011
Resource curse The resource curse (Paradox of Plenty) refers to the paradox that countries and regions with an abundance of natural resources, specifically point-source non-renewable resources like minerals and fuels, tend to have less economic growth and worse development outcomes than countries with fewer natural resources. From Wikipedia, the free encyclopedia
The joint IT project for EITI implementation Challenges: Bringing in the oil & gas sector Closing the gap in reporting The IT solution: Addresses the challenge of delayed reporting Is a development partnership between: The Ministry of Finance on behalf of GHEITI, SAP AG GIZ operating on behalf of the German Federal Ministry for Economic Development and Cooperation (BMZ) The partnership adds a technical solution and specific managerial skills to the EITI process.
Benefits achieved From paper to real time web communication Content is checked and approved before data are made available to the Office of the Ghana EITI aggregator.
Presentation of the solutionReconciliation of payments from Extractive Industries Government entities
Public sector submit revenues received from extractive companies
Extractive companies submit their payments through the web
Addition of comments and attached files
Financial and statistical data are entered to allow analysis
Presentation of the solution Reconciliation of payments to District Assemblies Government entities Declaration of payments to Local Authorities
Declaration of Mineral royalties received from the Office of the Administrator of Stool Lands
Declaration of utilization of funds
Presentation of the solutionReporting
Ghana EITI aggregator
Follows up reporting from all the entities involved in the process
Analyzes and reconciles data
Publishes reportings through Excel or pdf files
What SAP stands for Our Purpose SAP helps our world run better in order to create enduring prosperity for people everywhere
“SAP aims to not only help businesses runbetter, but help the world runbetter,” said Jim Hagemann Snabe, co-CEO, SAP. “The Ghana EITI projectis one suchprojectwherewe’repleased to bringbothour software and ourindustry and business process expertise to help Ghana meet the global standard for transparency in the oil and mining industries.”
This project presents a unique opportunity to engage within our Corporate Social Responsibility efforts not only with a financial contribution, but also with skills and technology, and as such help the EITI process and the country of Ghana to run better.
This is a project with a potential to touch the lives of millions of people through good governance.
SAP delivers Good Governance for Ghana SAP committed to the project because the conditions were favorable to a software implementation and we were highly impressed with the maturity of the EITI process in Ghana. IT is an essential enabler to meet the high level of governance standards that this country has set itself. Effective IT bridges insight and action. In this case, it provides the big picture of revenue streams and payments, together with detailed information. Based on this information, the GEITI Secretariat will be in an even better position to ensure that declaration and payments are reconciled. In concrete terms, this project will deliver really powerful benefits such as:
Effective and fast reconciliation of declarations and payments;
Quality of data with a validation process and one version of the truth;
A simple overview of revenues;
Reduced administrative overhead;
Faster reporting cycles.
Technology delivery Business Intelligence Financial Reporting A powerful and flexible tailored IT solution to support the EITI implementation in Ghana has been installed using BFC and Extended Analytics. The solution will optimize the publication of trustful and transparent information to the stakeholders in Ghana. The solution we propose is Easy to use Implemented quickly Adaptable to the other EITI countries