Minister of State for Finance in charge of General Duties, Henry Musasizi has emphasized public debt sustainability as a major concern across Africa, where many countries struggle to balance development financing with manageable debt levels.
He made these remarks during the second edition of the Public Finance Management (PFM) Conference for Africa, hosted by the Institute of Certified Public Accountants of Uganda (ICPAU) in Kampala.
The conference, organized in collaboration with the Pan African Federation of Accountants (PAFA) and the African Union (AU), aims to advance discussions on PFM reforms to enhance efficiency, transparency, and accountability across the continent.
Musasizi noted that Uganda, like its regional counterparts, faces the challenge of borrowing responsibly while maintaining economic stability.
He underscored Uganda’s struggle to borrow responsibly while maintaining economic stability.
Musasizi reaffirmed the government’s commitment to boosting domestic revenue collection and curbing financial leakages that undermine economic growth.
He highlighted Uganda’s stagnant tax-to-GDP ratio of 13% and outlined the Domestic Revenue Mobilization Strategy, targeting an increase to 18% in the medium term and 20% in the long term.
“We are implementing reforms to achieve these targets,” he stated.
He also identified corruption and illicit financial fraud as major barriers to effective financial management, noting that substantial funds are lost annually to fraudulent activities, depriving governments of critical resources for development.
Another key issue raised was inefficiencies in budget execution. Musasizi stressed that weak financial management systems hinder full implementation of national budgets across Africa.
He also noted that limited financial autonomy at the local government level restricts service delivery.
“Strengthening fiscal decentralization is crucial to improving governance and service delivery at the grassroots level,” he said.
To address these challenges, Musasizi called for bold leadership, strong institutions, and regional cooperation.
He emphasized the integration of innovative financial technologies to enhance transparency and efficiency in public spending.
“This is a shared responsibility. Governments, policymakers, development partners, and the private sector must work together toward a common goal,” he urged.
Derrick Nkajja, Secretary/CEO of ICPAU, highlighted the significance of the event, stating, “This conference provides a crucial platform for evaluating and advancing Public Financial Management reforms, which are key to strengthening financial systems in Africa.”
The high-level conference brought together key stakeholders in Africa’s PFM ecosystem, including Professional Accountancy Organisation (PAO) leaders, Accountant Generals, Auditor Generals, Public Accounts Committee (PAC) members, and development partners.
Discussions will center around the theme: Enhancing Public Finance in Africa: Progress and Prospects.
Building on the success of the inaugural PFM Conference for Africa held in Kenya in 2024, this year’s event aims to drive improvements in public service delivery and sustainable economic growth by recognizing past achievements, recent advancements, and emerging opportunities in PFM.
“As Africa strengthens its PFM systems, we must move beyond discussions and take decisive, collective action,” said Keto Kayemba, President of PAFA. “This conference is about forging partnerships and strategies that will drive real change.”
