Maseru
The Central Bank of Lesotho hosted AFRITAC South delegates to a first of its kind meeting which took place at Lehakoe Recreational and Cultural Centre on Thursday, 27 June 2024. The Annual Steering Committee Meeting was set as a means to see to the complex challenges that the country encounters and ultimately come up with ways to combat them.
The Regional Capacity Development Center for Southern Africa (AFRITAC South – AFS) is a synergetic effort of the International Monetary Fund (IMF). It was opened in Port Louis (Mauritius) in May 2011 and serves a total of 13 countries namely: Angola, Botswana, Comoros, Lesotho, Madagascar, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Zambia, and Zimbabwe.
Its objectives include allocating technical assistance, training, and peer learning opportunities in core areas such as public financial management, tax and customs administration, banking supervision and regulation, monetary policy and FX market operations, financial market infrastructure and fintech, real sector statistics, financial and fiscal law, governance, and anti-corruption. Key beneficiaries are finance ministries, central banks, revenue authorities and statistical agencies.
“…The mandate of AFS is to provide capacity-building assistance, facilitate the reform process in member countries and support regional integration. As a regional center which is close to the countries it serves, AFS offers several advantages including:
i. Decentralized and better delivery of technical assistance to the particular needs of the region.
ii. Enhanced country ownership and accountability.
iii. Quicker and more efficient response to technical assistance requests.
iv. Closer coordination with other technical assistance providers in the region.
v. More focused subject-specific and hands-on training for government officials.”
AFS is said to be governed by a Steering Committee which is made up of representatives from AFS countries and external development partners. The committee reviews the center’s annual reports and endorses annual work plans and priorities. In August 2017, the center started its second phase of operations and has taken up a results-oriented approach to the planning and managing of its activities.
“Staffing of AFS reflects member countries’ technical assistance needs with the composition of the team of resident experts being tailored to the priorities of participating countries. At present, the center has 10 long-term resident advisors on the following areas: revenue administration, public financial management, macroeconomic statistics, banking supervision, and monetary policy and operations…”
The keynote address at the meeting was offered by the acting Minister of Finance and Development Planning Prof. Ntoi Rapapa. He expressed his acknowledgement for the companionship and association between all the participants that were gathered there. He said the bond has grown stronger and has produced impeccable results in areas including fiscal and monetary policies across the differing jurisdictions an overtime.
He thanked the IMF for their continued support as they tackle individually and/or collectively the rather complex and dynamic changes facing the advancement of the respective countries’ development. He said he hope the seminar will assist in redefining the strategic partnership to realize the shared vision aimed at transformation. The fund was also commended for their commitment in fostering international financial stability, shared prosperity and liberal trade order through policy advise, financial assistance and capacity development.
Additionally, Prof. Ntoi divulged that the current macroeconomic and financial landscape continues to present disconcerting challenges to policy makers within sub-Saharan Africa region. These adversities require collaboration, bold decision-making and medium to long-term reforms. These reform which should aim at rejuvenating macroeconomic stability for shared prosperity. The reforms are further encouraged to strengthen social safety nets, address infrastructure, education and health gaps as well as to expedite interventions targeted at improving the business environment for private sector investment. The going concern for youth and women who continue to be financially excluded should also be attended to.
“… All these efforts require finance,” said the Minister. He added saying continuing tight external conditions and high global interests, and a secular decline in official development assistance constrain the options for policy action. They emphasize the dire need for renewed efforts on domestic revenue mobilization, improving spending efficiency and strengthening work on debt management and managing fiscal risks. Medium-term fiscal anchors which are credible can be useful in guiding a path toward improved fiscal and debt sustainability.
Another aspect which was highlighted as critical was the strengthening of institutions and building of human capital in the quest to work on capacity development. The multiple policy changers and the spectra of geo-economics fragmentation are centers which are required to have sufficient financing to meet the large needs of the region. “… The financing gaps at a number of the AFRITAC South and the Africa Training Institute are thus of grave concern. This has prompted a small country such as Lesotho to show leadership and pledge 1million USD for Phase 3 of AFRITAC South, and we call upon all our colleagues in the region to take heed…” announced Prof. Ntoi.
He went on to express his appreciation to the IMFs Capacity Development support in areas such as public financial management, revenue administration, central bank operations, bank supervision and payment systems, statistics, and legal framework. He said the Bank also welcomes support in new priorities such as digitalization, climate, and Artificial Intelligence and other ventures that have been adopted.
In the Fiscal Year 2025, there are goals to prioritize training and technical assistance from AFRITAC South in multiple areas: risk-based supervision, payment system, monetary policy implementation and operations, statistics, public financial management, tax and customs administration as well as projects whose focus is digitalization.
Prof. Ntoi ended his remarks by saying, it is quite evident more needs to be done to address the financing challenges which are faced by AFRITAC South. Therefore, much must also be done to avoid interference in the flow of Capacity Development services. “We hope other member countries will expedite contributions and/or review financing given the need to scale up Capacity Development services, especially in areas such as climate, gender, digitalization, cyber security and to support much awaited structural reforms,” concluded the Minister.
