Regional bankers meet to discuss challenges

ACTION:Facing uncertain times head on Central bank governors from seven countries are gathered in Kigali to share good practices as well as prepare for challenges ahead in the financial sector. The bankers are meeting under the auspices of the East Africa Regional Technical Assistance Centre (East AFRITAC) that was initiated by IMF with the primary objective of assisting African countries to build their capacity in monetary policies. The two day-meeting also marks the tenth anniversary since the centre rolled out its operations. The meeting was attended by delegations from IMF-East AFRITAC’s regional member countries including Ethiopia, Kenya, Malawi, Rwanda, Tanzania, and Uganda, Eritrea and delegations from the donor community.According to Monique Nsanzabaganwa, Deputy Governor National Bank of Rwanda (BNR), the country had gained immensely from the centre, especially in setting up rules and regulations for financial institutions like insurance and pension.“They built the capacity for Rwandan people and this has improved transparency, accountability which is reflected in the public financial management program.” Nsanzabaganwa said the meeting would discuss how countries have benefited, evaluate activities and discuss the way forward.Xavier Maret, the centre’s coordinator, said the partnership is mainly focused on public financial management, revenue administration, financial sector regulation, monetary policy operations, and statistics institutions to build their capacity and macro fiscal issues.“All the benefiting institutions have recorded a positive outcome like consumer price indices that many countries have launched. Countries have been able to publish on quarterly basis their national accounts in statistics,” Maret observed.In terms of revenue administration, countries have also managed to introduce large tax payers units and ensured better management of small and medium enterprises as tax payers.As for financial sector regulation, the centre provided technical assistance to central banks in risk base supervision and consolidated banks supervision.The centre also introduced programme budgeting in a bid to improve on public financial management.“Essentially, we contribute to the outcome of governments and evaluate what central banks have achieved. We recorded successes because there has been ownership, I have to say, because the advice provided was implemented,” hailed Maret.Rwanda has in the past been commended by IMF under the Policy Support Instrument (PSI) for its reforms, particularly among public financial institutions.IMF argues that reforms should continue to focus on enhancing revenue administration, improving the quality of national statistics and enhancing policy coordination and capacity building.