SUPPORT REFORMS OF PUBLIC FINANCIAL MANAGEMENT II

Rwanda's economy has been growing by an average of around seven percent annually for several years. Tax revenues in relation to GDP have also risen steadily in recent years. This development fits in well with Rwanda's efforts to sustainably expand the Rwandan government's (GoR) room for action through increased own revenues and at the same time reduce dependence on donor support. In recent years the government has made considerable progress in building a robust and modern public finance system. However weaknesses remain particularly in the areas of own revenue mobilisation and management effective implementation of the Financial Management Information System (IFMIS) accounting and internal audit and external control. For this reason the project supports the GoR in implementing the national Public Financial Management (PFM) reform programme. The objective of the PFM agenda and thus also of the FC measure is to sustainably increase the quality and performance of public financial management at all government levels. Central activities in the project are the digitalisation of IFMIS workflows and the archives of the Ministry of Finance as well as the development of investment manuals processes and training materials to help state owned business enterprises make sound investment decisions. The FC measure is being implemented in the form of a joint basket financing between KfW the Belgian cooperation ENABEL and the GoR and follows on from earlier measures to support the PFM reform process. The Rwandan Ministry of Finance and Economic Planning is responsible for implementing the PFM sector strategy and managing the PFM basket. The FC contribution for the basket financing amounts to up to EUR 4.0 million for the period of the Rwandan fiscal years 2021 22 to 2023 24.