Lesotho Officials Trained on Financial Programming and Policy Framework

Consistent macroeconomic data is critical for evidence-based economic policy making. In light of this, a Financial Programming and Policy (FPP) Framework is a key analytical tool as it enables data collection, processing and analysis for all the four (4) macroeconomic accounts (National Accounts; Statement of Government Operations; Balance of Payments; and Depository Corporation Survey). It also allows for the recording of interrelations between the four accounts in an integrated and consistent manner. The FPP framework can also be used to simulate the short-run and long-run effects of certain shocks to the economy’s real growth rate, budget deficit, and the balance of payments position, etc.

In recent years, MEFMI has received numerous capacity building requests from member countries in this area. Among other factors, the identified capacity gaps have been a result of new developments in the area, revisions of manuals guiding the four (4) macroeconomic accounts and high staff turnover in client institutions in the region. The Ministry of Finance of Lesotho is among the client institutions that recently managed to develop an FPP framework with assistance from the International Monetary Fund (IMF). The Ministry then reached out to MEFMI for training on the FPP framework.

It is on this basis that MEFMI provided hands-on training on the FPP framework to the Ministry officials. The training was conducted from 11 to 22 July 2022. The objective of this training was to deepen officials’ understanding of the compilation and analysis of the four (4) macroeconomic accounts using the framework. This is supposed to assist the Ministry to formulate consistent policies to achieve and maintain macroeconomic stability and hence, contribute to the goal of rapid and sustained growth.

Twelve (12) officials from the Ministry participated in the training. Of the 12 participants, seven (7) of them (58 percent) were male while five (5) of them (42 percent) were female. This is attributable to the lower numbers of females in the institution. The training was facilitated by three (3) resource persons, namely Mr. Senei Molapo, a MEFMI Graduate Fellow and MEFMI Programme Manager, Mr. Chathebert Mudhunguyo, Deputy Director – Fiscal Policy and Advisory Services Department, Ministry of Finance, Zimbabwe as well as Ms. Marethabile Hlaahla, Chief Economist and a MEFMI Graduate Fellow in Government Finance Statistics (GFS) at the Research Department of the Central Bank of Lesotho.

Prepared by Senei Molapo