Rwanda, World Bank Approves Deal to Boost Accountability
The Rwanda Government and the World Bank, on Monday signed a $20 million credit facility to support the Ministry of Finance and Economic Planning (MINECOFIN) in budget transparency and reliability.
The fund, which has been earmarked for the Public Finance Management Reform Project (PFMRP), will see MINECOFIN expand the Financial Management Information System (FMIS) coverage and Electronic Government Procurement system (e-GP) as well as provide IT backbone to all decision-making processes in the country.
Speaking at the signing ceremony, Finance Minister, Uzziel Ndagijimana said that the loan (approximately Rwf17 billion) will be repaid in 38 years at an interest rate of 0.75 per cent. The credit has a 6-year grace period.
Ndagijimana said “The loan will facilitate the enhancement and rollout of these systems (FMIS and (e-GP).”
He added that the facility will improve accountability through increasing professionalism of public finance by funding mass scale professionalisation programme for public finance officials in the areas of accounting and audit, budgeting and procurement.
The credit will benefit a “pool of PFM core institutions”, including the Ministry of Finance, Rwanda Public Procurement Authority (RPPA), Institute of Certified Public Accountants of Rwanda (ICPAR).
The World Bank Group Country Manager, Yasser El- Gammal, said the agreement is a continuation of an area the two parties have been engaged in for a while, a sector he considers “foundational” in accountability.
El-Gammal said “Public financial management is a foundational sector, because you can have the money but if you are not able to spend the money wisely, properly—be able to account for it—then your leakages become high.”
“Rwanda already has a solid public financial management system, and this is a support that is anchored in the overall sector strategic plan of the country”.
El-Gammal also hopes that the deal will be able to enhance accountability at the grassroots levels, which would allow the Government to have more reliable medium term budget, and, most importantly, support human capital that is involved in the public financial management space.
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