Supporting public financial and economic management in Malawi
Title: Strengthening public financial and economic management in Malawi
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Ministry of Finance and Economic Affairs
Overall term: 2022 to 2025
Malawi is one of the poorest countries in the world. Few people believe that the government can improve the situation. This mistrust is fostered by the perception of widespread corruption. Low taxes and a high level of national debt drastically restrict the financial scope for the government to pursue political goals.
Reforming public financial administration is high up on the government’s agenda. The focus here is on the legal framework and the new Integrated Financial Management and Information System (IFMIS). This IT system is used to plan, implement and monitor the budget, and also for reporting.
Those responsible for the public financial system are improving the financial scope for action. Public funds are being put to better use for reducing poverty.
The project’s lead executing agency is the Ministry of Finance and Economic Affairs in Malawi. Other important partners include the Office of the President and Cabinet (OPC), the Malawi Revenue Authority (MRA) and training institutions.
Key project activities in cooperation with the Ministry of Finance and Economic Affairs include providing training for IFMIS users in governmental ministries, departments and agencies, and advising on IFMIS risk management.
The project is helping the MRA to ensure that taxable profits do not flow out of Malawi. It also advises the MRA on the digitalisation of tax administration and public relations work. The registration of taxpayers and the proper assessment of tax liabilities assist the country in raising its own income. In turn, this supports the government in financing its development policy.
In the OPC, the project provides strategic advice on improving the public contract management system, on expanding training for civil servants, and on enhancing internal business processes and IT systems.
Last update: October 2022