Improving Cash Management in West Africa

AFRITAC West

Posted by Jean-Pierre Nguenang[1]

The IMF’s Fiscal Affairs Department (FAD) and its Regional Technical Assistance Center in Abidjan (AFRICTAC West, AFW) recently organized a seminar on “Ensuring Active Cash Management to Finance the State Budget in Member Countries of AFW”. 39 participants from the ten member countries of AFW[2] included representatives from directorates in charge of procurement, budget management, cash and debt management, as well as a regional institution in charge of the securities markets (Agence Union Economique et Monétaire Ouest Africaine- UEMOA-Titres). In his opening speech, Mr. Adama Coulibaly, Director of Cabinet of the Ministry of Economy and Finance of Côte d’Ivoire, welcomed the participants and emphasized the central role of cash management for fiscal consolidation efforts in the region.

In addition to presentations by participants on their countries experience, FAD staff and experts delivered four main presentations on selected topics that relate to cash management and the treasury single account (TSA):

Two important conclusions emerged from the discussion. First, participants agreed that it would be useful to sensitize senior officials and ministers of finance to the core issues, perhaps by organizing a high-level seminar on cash management. Such an event could highlight the substantial economic and fiscal benefits that a TSA can generate through improved liquidity management (savings of up to 2 percent of GDP in Nigeria), as well as the political economy challenges of implementing such a system. Second, it was agreed that the region should consider establishing, with support from AFRICTAC West and FAD, a network of treasury officers. Such a group could meet on an annual or more frequent basis to discuss cash and debt management, and other issues of mutual importance. Similar networks have been established in other regions, e.g., East and Southern Africa (ESAAG), Central Asia and Central and Eastern Europe (PEMPAL), and Latin America (FOTEGAL). FAD and AFRITAC West will follow up on these recommendations.

[1] Senior Economist, Public Financial Management II Division, Fiscal Affairs Department, IMF.

[2] Benin, Burkina Faso, Côte d’Ivoire, Guinea, Guinea-Bissau, Mali, Mauritania, Niger, Senegal, and Togo.

Note: The posts on the IMF PFM Blog should not be reported as representing the views of the IMF. The views expressed are those of the authors and do not necessarily represent those of the IMF or IMF policy.

Recent