Officials trained on public expenditure and financial management  

The mid-term review of the implementation of the MEFMI Phase V (2017-2021) Strategic Plan conducted in 2019 identified addressing capacity gaps in Public Expenditure and Finance Management (PEFM) as a priority area in the region. This capacity gap is a result of the recent global economic developments that make it challenging to effectively conduct sound PEFM. In light of this, there is need for policymakers to have good understanding of best PEFM practices in order to effectively address emerging issues such as technological revolution and the rise in electronic data, climate change, gender mainstreaming and global pandemics as well as the importance of PEFM in supporting the achievement of the Sustainable Development Goals (SDGs), among others.

It is in this regard that MEFMI conducted an e-Learning course on introduction to PEFM from 18 October to 5 November 2021. The course, which was conducted in English and Portuguese, combined theory and hands-on-exercises covering various topics. It began by introducing participants to the basic principles of PEFM, particularly the rationale, principles of effective systems, institutional and legal frameworks and approaches to assessing PEFM systems. Participants were also taken through common weaknesses and recent reforms in developing countries’ PEFM systems. In addition, a step-by-step guidance on how to analyse and restructure government expenditure, use public investment management frameworks and develop the medium-term expenditure framework were demonstrated. Participants were also taken through the process of expenditure tracking, how to design effective fiscal expenditure rules and the role that the integrated and financial management information system play in PEFM reporting process.

The course also focused on recent developments affecting the conduct of PEFM, specifically looking at i) PEFM and SDGs; ii) PEFM and technological innovations; iii) PEFM and climate change; and iv) gender mainstreaming in PEFM systems.  To strengthen the learning gain and interactivity, various discussion topics were presented which allowed participants to share their views and country experiences. These topics were; (i) navigating the fiscal policy trilemma; (ii) the effectiveness of medium-term expenditure frameworks; (iii) challenges of government absorption capacity in the MEFMI region; (iv) climate change responsive budgeting; and (v) incorporating SDGs in public expenditure frameworks.

The course was attended by 40 participants (22 males and 18 females) drawn from ministries of finance/economic planning, central banks and statistics offices of 11 MEFMI member countries. These countries are Angola, Eswatini, Kenya, Lesotho, Malawi, Mozambique, Namibia, Rwanda, Tanzania, Zambia and Zimbabwe.  The participants were guided by the resource team which comprised Dr. Daniel Mambule Mwanje (Independent Consultant); Professor Antonio Franco (Independent Consultant) and Dr. Sayed Timuno (MEFMI Staff). Mr. Fernando Cambumdo was engaged to translate the course materials from English to Portuguese.

Participants are expected to use knowledge and skills from the course to improve the conduct of public expenditure in their respective countries and in the process of better fiscal policy analysis.

By: Dr. Sayed Timuno