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Overview

  • Natural resources have the potential to drive growth, development and poverty reduction in developing countries. The extractive industries sector plays a dominant economic, social and political role in the lives of 3.5 billion people living in 81 countries, 51 of which are now compliant with the Extractive Industries Transparency Initiative, a global standard for transparency and accountability. However, many of these countries still face a myriad of challenges, such as resource dependency and weak governance.

    The World Bank helps countries manage their natural resource wealth in a way that maximizes the benefits of extractives, while contributing to economic growth and poverty reduction. Strategic focus areas include: effective governance; increasing transparency and promoting inclusive growth, while ensuring both people and the environment are protected. The World Bank also helps countries develop resources for a sustainable, low-carbon future, including the minerals and metals used in renewable energy technologies.

    The World Bank Group is also taking broad, fast action to help developing countries respond to coronavirus (COVID-19). We work closely with countries that rely on oil, gas and mining to help them boost economic recovery and resilience, while protecting people impacted by the extractives sector. 

    Last Updated: Apr 16,2020

  • The Bank’s work in the extractives sector focuses on three main pillars that support the overall goals of ending extreme poverty and boosting shared prosperity:

    (1) Financial Sustainability: The Bank works with governments to strengthen fiscal regimes, remove subsidies, and improve tax administration and revenue transparency to build resilience to economic shocks and reduce the opportunities for the resource curse. It also helps implement structured financial solutions to de-risk private sector investments, strengthen enterprises, and reinforce public-private partnerships.

    The Bank also works with governments to develop effective management policies for oil, gas, and mining regimes. It starts with supporting capacity building for contract negotiation, and includes developing effective legal and regulatory frameworks, tax and royalty administration, and revenue management.

    To ensure effective and transparent revenue management in the extractives sector, the Bank supports the implementation of the Extractive Industries Transparency Initiative (EITI) through technical assistance to countries working to publish and verify company payments and government revenues from oil, gas, and minerals.

    By helping governments create an enabling environment, improve sector governance and lower risk, the Bank Group leverages large-scale private sector investment through the IFC, an organization focused exclusively on the private sector in developing countries.

    (2) Social Sustainability: For effective development outcomes, local communities must actively participate in extractive industries operations from the very beginning, leveraging the industry’s infrastructure, job creation, and small business opportunities to provide long term sustainable development. To that end, the Bank promotes inclusive growth, bringing together diverse stakeholders to ensure accountability and lessen adverse impacts on communities and the most vulnerable people, particularly in fragile areas.

    (3) Environmental Sustainability: The World Bank works closely with governments to develop strategic environmental and social assessments to anticipate sector-wide impacts and to incorporate environmental and social priorities into extractive industries’ policies and regulatory arrangements.

    Along with our core lending, analytical work, and knowledge products, the Bank administers Multi-Donor Trust Funds (MDTF) to achieve ambitious development goals:

    • The Extractives Global Programmatic Support (EGPS) MDTF supports programs ranging from transparency and governance, to legal and regulatory reform, local economic diversification, strengthening institutions, and social and environmental sustainability.
    • The Global Gas Flaring Reduction Partnership (GGFR) is a coalition of governments, oil companies, and international institutions working to end routine gas flaring at oil production sites around the world as a way to increase energy access and mitigate climate change. GGFR focuses on advising governments develop institutions, regulations, policies, infrastructure, and markets for associated gas utilization. The Partnership also works to raise awareness and increase commitments to end routine flaring, monitors and produces annual global flaring data, and facilitates flaring reduction projects.
    • The World Bank’s report “The Growing Role of Minerals and Metals for a Low Carbon Future” finds that there will be a substantial increase in demand for several key minerals and metals to manufacture cleaner energy technologies. The Climate-Smart Mining Facility was created to help resource-rich developing countries benefit from this increased demand while ensuring the mining sector is managed in a way that minimizes the environmental and climate footprint.

    Last Updated: Oct 11,2019

  • The Bank is active in the extractive industries in about 70 countries and is the largest provider of extractives-related development assistance by a significant margin. Cumulative investment over the past decade is about $3.3 billion.

    Some examples:

    • AfghanistanThe Bank is working closely with the government to ensure sustainable development of the country’s natural resources. This includes support for geological exploration, data compilation, and building the capacity of various government agencies to effectively manage resources. The Bank also helps manage ancient and treasured cultural assets around the Mes Aynak site.
    • Burkina Faso: The World Bank has provided technical assistance to the mining sector, directly benefiting over 19,000 people, including over 4,000 women. The technical assistance program supported an improved regulatory and policy framework.
    • Democratic Republic of Congo (DRC): With World Bank support, women working across the mining sector in DRC organized themselves to establish a national network to advance gender equity. The World Bank held two “Women in Mining Conferences” in 2015 and 2017 and conducted an in-depth survey in 2016/17 across five major mining provinces, which then resulted in elections for a new national Women in Mining network. The World Bank also delivered pilots on women’s working conditions and child labor. The latter pilot program succeeded in getting 1,200 children out of child labor and into school and training.
    • Ghana: Following Ghana’s 2007 discovery of oil and gas, the Bank provided support to improve public management, regulatory capacity and transparency, while strengthening local technical skills. The World Bank supported the establishment of the Petroleum Commission Ghana, an independent upstream regulator; and strengthened the Environmental Protection Agency (EPA)'s capacity to conduct marine and shoreline work essential to monitoring the oil and gas sector. The project also promoted transparency in oil and gas revenue management and regular public reporting at the granular level of each oil field and cargo – the first African country to implement this level of transparency. An estimated 675 people directly benefitted from the project, 28% of which were women.
    • Guinea: The Bank is helping build systems and capacity to manage the country’s mining sector, including the development of major growth corridors around bauxite and iron ore mines.
    • Iraq:  Iraq's Council of Ministers has formally adopted The Natural Gas Market Framework (NGMF), marking the first phase of an internationally benchmarked and transparent framework to allow private sector investors to capture, process, transport and commercialize natural gas. The reforms have the potential to bring $21 billion of private sector investment into Iraq and provide power to Iraqis who lack basic access to energy.
    • MozambiqueThe Bank is supporting mining sector reforms and sustainable development of new gas resources, including creating the enabling environment and building capacity for a new Liquefied Natural Gas (LNG) industry.
    • Nigeria: The Bank is helping the country substantially enhance the mining sector’s contribution to the economy, while strengthening key government institutions and fostering domestic investment in the sector.
    • Rwanda: the government of Rwanda created a new mining law and clear framework for the country’s mining sector. The new mining law was informed by the African Mining Legislation Atlas (AMLA), which was compiled and created by the World Bank, as part of the Extractives Global Programmatic Support (EGPS) Multi-Donor Trust Fund.
    • Senegal: The Bank is helping build capacity and providing support and technical advice to negotiate oil and LNG contracts to boost investments and foster sustainable gas sector development.
    • Togo: The Bank is helping streamline the institutional framework of key government agencies involved in the extractives sector to strengthen efficiency and accountability for effective management of the sector. The Bank is also helping artisanal and small-scale mine operators develop skills while raising awareness of sustainable mining practices in communities affected by mining operations.
    • “Zero Routine Flaring by 2030” Initiative: as of October 2019, 85 governments, oil companies, and development institutions, accounting for well over 60% of global gas flaring, have committed to end routine flaring by 2030. The initiative commits governments and oil companies to (a) not routinely flare associated gas in new oil field developments and (b) to end existing (legacy) flaring as soon as possible and no later than 2030.

    Last Updated: Oct 11,2019

  • To achieve sustainability goals and improved governance in extractive industries, which are important drivers of economic growth and poverty reduction in many developing countries, the World Bank has developed partnerships with a wide range of organizations in the sector. This helps align efforts, while also leveraging resources and expertise to end poverty and boost shared prosperity.

    • Donors to the Extractives Global Programmatic Support Multi-Donor Trust Fund: Australia, Belgium, Canada, the EU, Finland, France, Germany, the Netherlands, Norway, Switzerland, and the United Kingdom.
    • Governments in the Global Gas Flaring Reduction Partnership include Algeria; Azerbaijan; Cameroon; Republic of Congo; Gabon; Indonesia; Iraq; Kazakhstan; Khanty-Mansiysk (Russian Federation); Kuwait; Mexico; Nigeria; Norway; Qatar; and Uzbekistan. Companies include BP; Chevron; Eni; Equinor; ExxonMobil; Pemex; Shell; SNH (Cameroon); SOCAR; Sonatrach; and Total. Multilateral organizations include the European Bank for Reconstruction and Development (EBRD); the European Union; and the World Bank.

    The Extractive Industries Transparency Initiative (EITI)

    The Africa Union Commission (AUC)

    Revenue Watch Institute (RWI)

    Publish What You Pay (PWYP)

    International Council on Mining and Metals (ICMM)

    International Petroleum Industry Environmental Conservation Association (IPIECA)

    International Gas Union (IGU)

    World Wildlife Fund (WWF)

    Last Updated: Oct 11,2019

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Closing Gender Gaps in Oil and Mining



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Zero Routine Flaring by 2030

This Initiative brings together governments, oil companies, and development institutions who agree to eliminate the practice by 2030.

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Gender in Extractive Industries

Evidence suggests women often bear an unequal share of social, economic and environmental risks tied to extractive industry projects.

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Telling the Artisanal and Small-Scale Mining Story

A definitive source of information on the global artisanal and small-scale mining sector.

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Governance of Extractive Industries

A space for dialogue, innovation and collaboration for those working on extractive industries governance and transparency.

Additional Resources