Ministry of finance assesses public finance management with support from cooperation partners

The results of the assessment will provide an overview of the state of public finance management in the country and will provide a necessary basis for determining the improvements needed to achieve greater efficiency and transparency in the use of public resources. After the PEFA implementation phase, the Ministry of Finance plans to develop a public finance management reform strategy, which will be supported in a concerted manner by development partners.

In effect, this diagnosis will be carried out until the end of the year and is in line with the Angolan Government's objective of improving the management of public finances in the country: monitoring of public finance management is crucial for the continuity of budgetary discipline, unveiling performance of resource allocation and the level of efficiency of public services financed by the State Budget.

AFD, the European Union in Angola, the Swiss Embassy in Angola, together with the IMF, the World Bank and the African Development Bank, offered to support the Angolan Ministry of Finance to carry out a diagnosis in 2021 of the public finance management in Angola, using the PEFA methodology.

The Public Expenditure and Financial Accountability Program (PEFA), or Public Finance Evaluation Framework, is a standard for analysing and presenting the strengths and weaknesses of the public finance management system of a country or sub-national institution. Through quantitative indicators defined in a standard methodology, PEFA provides a snapshot of the public finance management system at a given moment and can be replicated in successive assessments, which allows to monitor the evolution of the system's performance over time.

This instrument was developed in 2001 by 7 international development institutions and has since been internationally recognized as a standard for the study of public finance management systems, with more than 200 evaluations carried out worldwide.