MEFMI Officials Trained on Managing Contingent liabilities 

Contingent liabilities have increasingly become one of the largest sources of fiscal risks in most countries and have attracted a lot of attention among policymakers, researchers and international financial institutions.  Despite the prominence of contingent liabilities in relation to fiscal sustainability, most governments in developing countries do not have the capacity to identify, measure and monitor them as well as design and implement mitigation measures. As part of efforts to address this capacity gap, MEFMI offered an e-learning course on Managing Contingent Liabilities from 19 October to 27 November 2020.  

The six (6) week course equipped participants with requisite skills for identifying, measuring and monitoring contingent liabilities in the public sector.  It also developed participants’ skills to develop and implement frameworks for managing risks arising from the materialisation of contingent liabilities in their respective countries. In addition, it also provided a platform for participants to deliberate and share ideas and country experiences in this area.  A total of 35 officials from 11 MEFMI member states, namely; Angola, Botswana, Kenya, Malawi, Mozambique, Namibia, Rwanda, Tanzania, Uganda, Zambia, and Zimbabwe, participated in the course which was mentored by Ms. Lerzan Genturk from Turkey.  

It is expected that the participants will support the development of frameworks to manage contingent liabilities in their respective countries. These frameworks can help guide the fiscal authorities on the size of buffers that may be needed to avoid unplanned or untimed budget adjustments. 

Given the risks that the materialisation of contingent liabilities pose on the fiscus, MEFMI plans to continue offer more support to countries to develop frameworks for managing contingent liabilities going forward. 

Prepared by Josephine Tito