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Rwanda: Where ICT links Public Finance Management

  • Rwanda: Where ICT links Public Finance Management

Integrated Financial Management Information Systems (IFMIS) contributes to Rwanda’s financial accountability and efficient service delivery. These ICT solutions compulsorily link key areas of Rwanda’s public finance to help the country go paperless with efficient use of public resources and value for money.

The current Public Finance Management Strategic Plan (PFM SSP; 2018-2024) is one of the sixteen sector strategies that implement Rwanda’s National Strategy for Transformation (NST1-2017-2024), and It is cross-cutting and a key enabler to Rwanda’s development aspirations. The Government of Rwanda has been successful in mobilizing and efficiently managing its public resources, while strengthening its PFM systems.

Since 2019, Belgium partnered with the Government of Rwanda to boost Rwanda’s socio-economic transformation through effective and accountable PFM. The Enabel’s PFM intervention is being implemented by the Rwandan Ministry of Finance and Economic Planning (MINECOFIN) and the Office of Auditor General of State Finances (OAG).
Through the PFM Basket Fund, Enabel PFM intervention focuses on three specific results: (1) expand the coverage and functionalities of the Integrated Financial Management and Information System (IFMIS) and other PFM ICT systems; (2) Increase compliance with PFM systems and international accounting and auditing standards and (3) Strengthen PFM systems supporting subnational investments and services.

In collaboration with the Government of Rwanda, Enabel supported the PFM digital reforms–from design, development, and roll-out to full integration with other PFM ICT systems. Today, IFMIS covered all domestic revenues and public expenditures to all 39 Rwandan Embassies and High Commissions, all 443 development projects, 216 Ministries and Government agencies, 41 Judicial entities, City of Kigali and all 30 district administrations, all 416 sectors, all 30 district hospitals and 13 referrals, all 560 health centers and 4,873 public schools.

The IFMIS was interlinked with other PFM ICT systems and has significantly contributed to the improvement of financial accountability, financial inclusion, paperwork reduction and efficient service delivery which positively impacted all PFM sector beneficiaries, and most importantly provided regular and emergency services while complying with physical distancing during COVID-19 lockdowns.
The IFMIS has automated the financial reporting for all public institutions, where preparation of financial statements is done through a single click moving from the old practice where reports were retrieved, signed, and sent to the Accountant General’s office for consolidation using excel spreadsheets.

By interlinking IFMIS with e-Tax system and banking system, a taxpayer is currently able to make his/her own tax declaration and payment through mobile or bank instantly therefore reducing taxpayer compliance costs and increase domestic revenue collection. The integration of IFMIS with e-procurement, has significantly contributed to the cost-efficient procurement processes, transparency in public procurement as well as the reduction of corruption in public procurement in Rwanda.
The e-procurement system is currently being used by 16,151 users. The digitalization of the national treasury and integration of IFMIS with Integrated Personnel and Payroll Information System (IPPS) has also reduced the time taken to prepare and pay government employees from 15days to a time less than 3 days.
The integration of IFMIS with School Data Management System (SDMS) and the Bank of Kigali Urubuto Software has made easier the tuition fees payment for all parents with BK account and helped the Government of Rwanda in monitoring of school dropout and improving the management of school feeding and capitation grant program at national level which led to the achievements of some NST 1 outcomes in education sector.
With the integration of IFMIS, e-tax and e-banking, most of national and decentralized services related to family; identification; immigration & emigration; land service; car & motor services and health services are all being accessed and paid via Irembo service platform any time hence improving financial inclusion in Rwanda.

In nutshell, Enabel’s PFM Intervention played a critical role in supporting the Government of Rwanda to ensure timely financial reporting for all public institutions, achieve the cash-less payments policy objective in all central and some local government entities, and improve service delivery.  

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