MEFMI Supports Mozambique on Debt Database Validation

Comprehensive, complete and accurate debt statistics are important for enhancing transparency and accountability of public debt management operations, informing macroeconomic policies as well as improving creditor confidence. As part of efforts to ensure sound debt databases in the region, MEFMI continues to implement capacity building interventions to equip member countries with requisite skills on the use and management of computer-based debt management systems for recording, analyzing and reporting public debt statistics.

Recognising the important role of maintaining comprehensive debt statistics, the Ministry of Economy and Finance (MEF) in Mozambique requested MEFMI for technical assistance to validate its debt database. In addition, the Ministry requested MEFMI to train staff on IT administration of the Commonwealth Debt Recording and Management System (CS-DRMS) and help resolve other IT related challenges. In response, a MEFMI mission visited Maputo from 15 to 26 July, 2019. The Mission was co-funded by MEFMI and the World Bank and DFID in Mozambique.

To achieve the above objectives, the Mission team held meetings and worked with staff of the Ministry of Economy and Finance, particularly the Debt Management Unit. Officials from the Bank of Mozambique and Mozambique Stock exchange also participated in the CS-DRMS IT training and uploading of domestic securities into the system.

The Mission conducted the following activities: reconciled debt records with statements from Mozambique’s creditors; trained officials to prepare debt reports and statistics using CS-DRMS; guided officials on the use of multicurrency wizard in CS-DRMS; registered domestic debt and guarantees into CS-DRMS; recorded floating rates of external loans; addressed data gaps in the system; installed additional access points of CS-DRMS for domestic debt users, and trained IT staff on technical support for CS-DRMS. About 95 percent of the debt data was validated.

A follow up mission to address the outstanding tasks is scheduled before the end of the year. This will focus on ensuring the accuracy of the entire database against creditor statements, training officials on the use of CS-DRMS and recording of guaranteed debt.

The Mission team comprised Ms. Josephine Tito of MEFMI Secretariat; Ms. Tiyamika Kanthambi, a MEFMI Graduate Fellow from the Ministry of Finance, Economic Planning and Development in Malawi; and Messrs Lekinyi Mollel and George Kariuki, Accredited Fellows from the Bank of Tanzania and National Treasury of Kenya, respectively.