East Africa: IMF Lauds EA States' Fiscal Transparency

By Edward Qorro in Arusha

THE International Monetary Fund (IMF) has commended East African partner states for promoting transparency in the management of financial resources.

The organisation charged with the responsibility of fostering global monetary cooperation and the

facilitation of international trade reserved praises for the six-member regional bloc for cash management and fiscal transparency.

"There's been some significant progress over the years by partner states in the management of financial resources," explained IMF East AFRITAC Coordinator Mr Hervé Joly when replying to a question posed to him by the 'Daily News'.

The IMF's official also took note of the EAC partner states' commitment in enhancing revenue collection for the benefit of its 177 million citizens.

"While the progress may not be uniform, but by and large, it is worth noting the tremendous improvement by the six countries," he said.

Mr Joly who was speaking on the sidelines of the launch of new statistics guidelines which will serve a launchpad for the envisioned regional monetary union, said the international organisation will continue to support the region in its quest of attaining the East African Monetary Union (EAMU).

EAC has set the year 2024 as a deadline towards attaining the single currency regime. The Protocol for the establishment of the EAMU was signed in November 2013 by the EAC member states.

Under the Protocol, partner states reached a consensus on the creation of key institutions and for member states to attain and maintain a set of four primary convergence criteria for at least three years before joining the bloc's planned single currency.

They include the East African Financial Services Commission, East African Monetary Institute, East African Statistics Bureau and the East African Surveillance, Compliance and Enforcement Commission.

In his remarks earlier on, Deputy EAC Secretary General in charge of Planning, Infrastructure, Finance and Administration, Engineer Steven Mlote said the launch of the EAC guidelines for the compilation of Government Finance Statistics (GFS) and the Public Sector Debt Statistics will ensure comparability regionally and internationally.

Explaining, he said, they domesticate the latest international methodology and practices in compilation of fiscal and public debt data to the EAC regional context.

"It is prudent that these indicators are compiled using a common methodology and using similar compilation practices," observed the EAC Secretary General.

According to Eng Mlote, there has been tremendous improvement in the quality of fiscal data among the EAC Partner States especially on expanding coverage from budgetary central government (BCG) to general government (GG) and finally to the public sector which includes the commercial stateowned enterprises.

In the run-up to achieving a single currency, EAC Partner States aim to harmonise monetary and fiscal policies; harmonise financial, payment and settlement systems; harmonise financial accounting and reporting practices; harmonise policies and standards on statistical information; and, establish an East African Central Bank.