THE REPUBLIC OF RWANDA
Ministry of Finance and Economic Planning
MINECOFIN STRATEGIC PLAN FOR
07/2010 – 06/2013.
June 2010.
ii MINECOFIN Strategic Plan (07/2010 - 06/2013)
FOREWORD
This is an updated version of the 2010-2013 rolling strategic plan for the Ministry of
Finance and Economic Planning. The plan is updated while the world is dealing with the
impact of Global financial crisis and looking for measures to prevent future economic
crisis.
Although Rwandan economy was not so much hampered by the effects of the global
financial crisis, there is a need to broaden the tax base and improve expenditure
efficiency to ensure sustainable budget deficit given that most donor countries are still
experiencing limited access to finance.
Accounting and auditing professions will continue to be strengthened to provide timely
and high quality financial information that is reliable, and facilitate effective decision
and policy making.
The Ministry will continue to monitor the implementation of the Financial Sector
Development Program to ensure a vibrant and dynamic financial sector in Rwanda.
The implementation of Public investment policy will continue to be monitored to ensure that
investments are aligned with medium and long term development goals.
Finally, I wish to express my commitment to improve the delivery of public services and
accountability in Public Financial Management.
John Rwangombwa
Minister
iii MINECOFIN Strategic Plan (07/2010 - 06/2013)
EXECUTIVE SUMMARY
This is a framework in which the Ministry will focus its effort:
Ensuring Macroeconomic stability: The government will ensure effective decision making in
government spending, investment, widening of the tax base and ensure that debt issuing and
repayment are closely linked with Budget
Strengthening and deepening the Financial Sector: Areas still to be fully implemented
include improving access to credit, Implementation of the National Savings Mobilization
Strategy, Improving Pension Sector and Modernization of the National Payment System.
Strengthen the Planning Function by ensuring the quality of sector strategies and Districts
Development Plans as well as Aligning budget and action plans to EDPRS Priorities.
Ensure successful implementation of EDPRS by updating EDPRS, Policy Results Matrix and
Common Performance Assessment Framework and ensure effective implementation.
Ensure Fiscal Discipline by deepening reforms in budget implementation and formulation.
Strengthen Public Finance Management through Rolling out SmartFMS to all budget
agencies, building a strong and effective government Internal audit, Strengthen Budget
Preparation Process and Integrating districts accounts in single treasury account.
Strengthen fiscal decentralization: The Government will implement the newly developed
Fiscal Decentralization Strategy.
Ensure alignment and improve the quality of public investment: National Public
Investment Policy will be utilized to improve resource allocation, quality, and efficiency of
the investment portfolio and increase the level of project execution rates.
Integrating Population Issues in National Development Programs: Socio-demographic
indicators will be updated and population issues mainstreamed in DDPs and sector strategies.
Implementation of the Regional Integration activities related to fiscal and monetary
policies are aimed to increase trade through the access to wider market while having a long
term impact on economic development.
Build the capacity of the institution to deliver: The Ministry will develop Institutional
information policy, staff performance monitoring framework, on job training management
program, staff replacement/ succession program and continue to enhance ICT security.
iv MINECOFIN Strategic Plan (07/2010 - 06/2013)
ACRONYMS
AGF Automobile Guarantee Fund BFP Budget Framework Paper BM&E Budget Management & Expenditure BRD Banque Rwandaise de Développement BSHG Budget Support Harmonization Group BSDF BRD SME Development Fund
CPAF Common Performance Assessment Framework CEPEX Central Public Investment and External Finance Bureau CMAC Capital Markets Advisory Council CEPGL Economic Community of the Great Lakes Countries CRB Credit reference Bureau CSR Caisse Sociale du Rwanda DDP District Development Plans DFID Department for International development DPCG Development Partners Coordination Group DPM Development Partners Meeting DPR Development Partners Retreat ERDM Electronic Records and Documents Management EAC East African Community EACCU East African Community Customs Union EDPRS Economic Development and Poverty Reduction Strategy FSDP Financial Sector Development Program GBE Government Business Enterprises HR Human Resources ICPAR Certified Public Accountants of Rwanda ICT Information and Communications Technology IFMS Integrated Financial Management System IMF International Monetary Fund JBSR Joint Budget Support Review
JDR Joint District Review
JSR Joint Sector Review
MCBF Microfinance Capacity Building Fund MCF Microfinance Credit Fund MDGs Millennium Development Goals MDTF Multi Donor Trust Fund M&E Monitoring and Evaluation MFIs Micro Finance Institutions MGF Microfinance Guarantee Fund MINECOFIN Ministry of Finance and Economic Planning MSMEs Micro- Small And Medium Enterprises MTEF Medium Term Expenditure Framework NISR National Institute of Statistics of Rwanda NPS National Payment System NPV Net Present Value
OBL Organic Budget Law PDS Paris Declaration Survey PER Public Expenditure Review PEM Public Expenditure Manual PFM Public Finance Management
v MINECOFIN Strategic Plan (07/2010 - 06/2013)
PIC Public Investment Committee PIP Public Investment Program PMO Project Management Office PPP Public-Private Partnership PRGF Poverty Reduction and Growth Facility RAMA La Rwandaise d’Assurance Maladie RIC Regional Integration Committee RPC Rwanda Payment Card RPPA Rwanda Public Procurement Authority RRA Rwanda Revenue Authority RSSB Rwanda Social Security Board SACCOs Saving and Credit Cooperatives SIP Strategic Issues Paper SMARTFMS Integrated Financial Management System SMEs Small and medium enterprises SIGTAS Standard Integrated Government Tax Administration System STA Single Treasury Account SWOT Strengths, Weaknesses, Opportunities and Threats analysis TMC Treasury Management Committee UNFPA United Nations Population Fund WB World Bank ZBA Zero Balance Account
vi MINECOFIN Strategic Plan (07/2010 - 06/2013)
CONTENTS
FOREWORD ........................................................................................................... II
EXECUTIVE SUMMARY ............................................................................................. III
CONTENTS........................................................................................................... VI
1 INTRODUCTION ................................................................................................... 2
1.1 VISION AND MISSION .......................................................................................... 2
1.2 CORE FUNCTIONS ............................................................................................. 2
1.3 KEY GOALS ................................................................................................... 3
1.4 CORE VALUES ................................................................................................ 3
2 KEY STRATEGIC OBJECTIVES OF THE MINISTRY OF FINANCE AND ECONOMIC PLANNING IN THREE
YEARS PERIOD..................................................................................................... 4
2.1 MONITORING THE MACROECONOMIC ENVIRONMENT AND ENSURING ITS STABILITY. ........................... 4
2.2 ENSURE SUCCESSFUL IMPLEMENTATION OF EDPRS ........................................................... 5
2.3 STRENGTHENING THE PLANNING FUNCTION ................................................................... 6
2.4 STRENGTHENING THE NATIONAL STATISTICAL SYSTEM ......................................................... 6
2.5 RESOURCE MOBILIZATION STRATEGY .......................................................................... 8
2.6 STRENGTHEN THE IMPLEMENTATION OF THE PUBLIC FINANCE MANAGEMENT REFORMS. ...................... 9
2.7 STRENGTHEN FISCAL DECENTRALIZATION. ................................................................... 11
2.8 ENSURE ALIGNMENT AND IMPROVE THE QUALITY OF PUBLIC INVESTMENT ..................................... 12
2.9 INTEGRATING POPULATION ISSUES IN NATIONAL DEVELOPMENT PROGRAMS ................................. 13
2.10 STRENGTHENING AND DEEPENING THE FINANCIAL SECTOR ................................................... 14
2.11 IMPLEMENTATION OF THE REGIONAL INTEGRATION ACTIVITIES RELATED TO FISCAL AND MONETARY POLICIES.15
2.12 STRENGTHEN INSTITUTIONAL AND INDIVIDUAL CAPACITY BUILDING STRATEGIES. ......................... 16
3 INCOME ESTIMATES AND SOURCES OF FUND .............................................................. 18
4 MONITORING AND EVALUATION FRAMEWORK ............................................................. 19
4.1 DEFINITION OF THE M&E FRAMEWORK ...................................................................... 19
4.2 THE PURPOSE OF THE MONITORING SYSTEM OF MINECOFIN’S ACTION PLAN ................................ 19
MINECOFIN Strategic Plan (07/2010 - 06/2013)
1
1 INTRODUCTION
1.1 Vision and Mission
The Ministry of Finance and Economic
planning has a Vision of “Developing
Rwanda into a Country Free of
Poverty” and a Mission of “Raising
sustainable growth, economic
opportunities and living standards of
all Rwandans; and achieve the highest
standards of accountability and
transparency in public finance
management.
1.2 Core Functions
The core functions of the Ministry are
as follows:
1. Develop and disseminate
economic policies, strategies and
programs
Design sound macroeconomic
policies, strategies and reforms to
maintain a stable macroeconomic
environment with low inflation,
moderate budget deficits and
sustainable public debt;
Develop medium and long term
economic development and poverty
reduction plans and programs;
Develop financial policies,
strategies and reforms to create a
vibrant and dynamic financial sector;
Develop public investment policies,
strategies and programs to improve the
productivity of the economy and
investment climate;
Assess the needs for complementary
external financing in order to implement
the economic plans.
2. Regulate the sector and related sub-
sectors
Draft and monitor the implementation of
economic-related laws and regulations.
3. Develop institutional and human
resources capacities
Strengthen and coordinate the national
economic planning processes across
government;
Strengthen the process of
intergovernmental fiscal decentralization
and local finance management to improve
the delivery of public services;
Strengthen the capacity of public
institutions in public financial management
and budget preparation;
Guide the strengthening of the national
statistical system;
MINECOFIN Strategic Plan (07/2010 - 06/2013)
2
4. Monitor and evaluate the
implementation of economic
policies, strategies and programs
For details of economic policies
being monitored and evaluated, see
core function 1.
5. Oversee the institutions under
supervision
Give direction/orientation on
specific policies and programs to be
implemented by the institutions
under supervision of the Ministry, to
mention:
- BNR, - RPPA, -RRA,
- RSSB, - CEPEX,
- NISR
- FSDP and - AGF
Supervise the functioning and
management of public institutions
and agencies of the Ministry in
ensuring cost effectiveness and
management of cross-cutting
economic issues.
6. Mobilise and manage external and
internal resources for the Country
Identify, mobilize and manage
external resources, including donor
aid, and ensure their efficient
utilization;
Develop strategy and plans to raise
domestic sources of finance, including an
equitable and efficient tax and benefit
system;
Manage the public debt (both internal and
external), and Government financial
portfolios.
7. Maintain a strong public financial
management (PFM) system to ensure
transparency and accountability in the
use of public funds
Promote evidence-based planning;
Strengthen performance-based budgeting;
Treasury management;
Oversee the implementation of a
transparent public procurement system;
Produce public accounts and strengthen the
accounting system countrywide;
Provide guidance and oversight to the
internal auditors within government
institutions and strengthen the audit
function countrywide.
8. Manage the overall national budget
process
Prepare MTEF and annual budget with
allocation of resources guided by national
priorities and plans;
Enable budget execution by being the
direct interface with budget users wishing
MINECOFIN Strategic Plan (07/2010 - 06/2013)
3
to carry out transactions on the
government’s accounts;
Monitor and report the budget
execution;
Coordinate budget reforms.
9. Support functions: Corporate Planning –
Documentation – Public Relations – Legal
Affairs - Secretariat and ICT Services.
10. Resources Management Functions:
Finance - Human Resources -
Logistic – Stores.
1.3 Key goals
By fulfilling its core functions, the
Ministry aims at achieving the following
goals:
Macroeconomic stability and
sustainable growth;
Integrated evidence-based planning
and performance-based budgeting
processes;
Availability of sufficient Resources
to finance the Country development
agenda (EDPRS priorities and Vision
2020) ;
Achieve the highest international
standards in Public Finance
Management (PFM) in order to
ensure an accountable use of
resources;
Effective financial and fiscal
decentralization for the improved
public services delivery and accountability;
Economic productivity through improved
public investment climate and the quality
of public investments
Integrating population issues in the national
development programme;
Promote a dynamic, efficient and stable
financial market accessible to all segments
of the population;
Contribute to foster deep regional
integration through openness to change as
well as mobility of goods, services, labour
and capital;
Build MINECOFIN into a strong, efficient and
responsive institution.
1.4 Core Values
The Ministry of Finance and Economic Planning
is firmly committed to excellence and
effectiveness when carrying out its mandate.
For this reason, the Ministry affirms the
following values in the provision of all of its
services:
Customer service;
Professionalism;
Innovativeness;
Teamwork;
Accountability;
Gender promotion;
Career growth;
Efficiency and;
Integrity.
.
MINECOFIN Strategic Plan (07/2010 - 06/2013)
4
2 KEY STRATEGIC OBJECTIVES OF THE MINISTRY OF FINANCE AND ECONOMIC PLANNING
IN THREE YEARS PERIOD
Throughout the period of three years (2010-2013), the Ministry will focus on the following
strategic areas as grouped under 10 Ministerial goals:
Goal One: Maintain a stable macroeconomic environment with low inflation, moderate budget deficits and sustainable public debt
Strategic Objective:
2.1 Monitoring the Macroeconomic Environment and ensuring its stability.
The overall macroeconomic objectives in three coming years would be to sustain the real GDP
growth rates of around 7- 8 percent a year and ensuring:
Sustained growth is in line with EDPRS targets;
Controlled inflation (single digit);
Sustainable trade balance and capital account and;
Low unemployment.
The objectives mentioned above will be achieved through:
Fiscal consolidation: Maintaining a sustainable fiscal position through improved revenue
mobilization and increased expenditure efficiency;
Monetary and exchange rate policies: Strengthening monetary and exchange rate policies to
ensure low and stable inflation;
Structural reforms that deepen the financial sector;
Increase domestic productive capacity which increases employment
Other Initiatives include:
Strengthening debt management: The Government will revise medium-term debt strategy
(MTDS) and;
Continuing research on the appropriateness of the flat tax in Rwanda;
MINECOFIN Strategic Plan (07/2010 - 06/2013)
5
Results table
1: Goal/ Strategic intent:
A stable macroeconomic environment with low inflation, moderate budget deficits and
sustainable public debt
Output results Outcome results indicator
-Macroeconomic policy analysis
carried out;
-Proposals on pro-growth
macroeconomic policy changes
provided;
Sustained economic
growth
Real GDP growth rate
Inflation related data collected,
analysed and recommendations
provided to the policy makers.
Controlled inflation
(single digit)
Inflation rate
-Data analysis on employment status
carried out;
-The employment levels established.
Policy
recommendations to
ensure employment
stability adopted
Employment rate
Support in the design of the National
export strategy
Sustainable current
account
Current account balance
Goal Two: Foster greater evidence-based planning and performance- based budgeting. Objectives:
2.2 Ensure successful implementation of EDPRS
The Government of Rwanda is in the third year of the implementation of the Economic
Development and Poverty Reduction Strategy (EDPRS) adopted in 2007. The strategy focuses on
economic growth, poverty reduction, enhancing human development and good governance.
In order to continue to ensure successful implementation of EDPRS the Ministry will:
Update EDPRS, Policy Results Matrix and Common Performance Assessment Framework;
Carryout national wide awareness campaign of EDPRS and Vision 2020;
Prepare the MDGs Report and;
Coordinate the Joint sectors and Districts reviews.
MINECOFIN Strategic Plan (07/2010 - 06/2013)
6
2.3 Strengthening the Planning Function
Planning function provides standards and a framework within which Government operates.
The framework facilitates the Government to understand more clearly what needs to be
achieved, how and when to achieve it.
The Ministry consequently will strengthen the planning function by:
Ensuring the quality of sector strategies and Districts Development Plans;
Aligning budget and action plans to EDPRS Priorities;
Strengthening M&E System;
Building the capacity of planners in central and local government;
Updating the master plan for studies and researches regarding EDPRS implementation process
and;
Conducting public expenditure review for selected sectors.
2.4 Strengthening the national statistical system
High quality statistical information enables the Government and other users to make decisions
based on accurate and reliable statistical data.
The purpose of NISR involves improving the government and partners’ capacity to use evidence-
based information for decision making by coordinating national efforts to collect and achieve
reliable data, analyze, document and disseminate derived indicators within an integrated and
sustainable framework (Fostering evidence-based planning).
Key initiatives for the three coming years include:
Conduct a survey of all enterprises to ensure a correct measure of the Gross Domestic
Production;
Ensure proper design of the household survey and revise the methodology for conducting pre
and post crop assessments;
Produce statistics that meet EDPRS, MDGs and other development policies requirements;
Promote dialogue between users and producers of statistical data;
Increase the accuracy, timeliness and usage of statistics;
Implement an effective quality management system;
Promote statistical advocacy and partnerships and;
Promote integration and coordination among producers of official statistics.
MINECOFIN Strategic Plan (07/2010 - 06/2013)
7
Results table
2: Goal/ Strategic intent:
Foster greater evidence-based planning and performance- based budgeting
Output results Outcome results Indicator
Sector strategies reviewed Feedback on gaps and quality
issues of sector strategies and
Districts Development plans given
-Checklist available
-The assessment report of
the Quality Assurance Team
Sector Budgets and Action
plans developed
Budgets and Action plans are
aligned to EDPRS Priorities
Strategic Issues embedded in
Plan of Action
Reporting formats at central
and local Government levels
Harmonized
M&E System strengthened
EDPRS Implementation
reports (Quarterly)
Public expenditure review
conducted
Improved efficiency and
effectiveness of resource
allocations.
Public Expenditure Review
Reports
2010/11 EDPRS, Policy
Results Matrix and Common
Performance Assessment
Framework updated
Improved tracking of EDPRS
implementation and performance
EDPRS implementation
reports
Economic statistical data
produced
Social - economic polices and
decisions informed by statistical
results
Updated CPAF and EDPRS
Results and Policy Matrix
MDGs targets monitored and
reported
MDG reports informs policy making
and dialogue
Updated MDGs report
(annually)
Policy assessment report
produced and research
carried out to assess EDPRS
flagships
Strategic Plans and policies are
evidence based
Study reports
MINECOFIN Strategic Plan (07/2010 - 06/2013)
8
Goal Three: Mobilize internal and external resources. Objectives:
2.5 Resource mobilization strategy
External Resource Mobilization:
MINECOFIN will continue to undertake necessary actions to improve coordination and
harmonization of donor interventions by supporting mutual accountability framework in the
context of Rwanda’s Aid Policy. Effective functioning of Development Partners Coordination
Group (DPCG), Budget Support Harmonization Group (BSHG), Joint Budget Support Review (JBSR)
and the organization of the Development Partners Meeting (DPM) will be ensured.
Furthermore, the ministry will:
Ensure aid effectiveness and better aid management focused on long term investments with
impact on growth;
Develop Resource Mobilizations Strategy;
Conduct needs assessment of SWAps and develops Plan of Action for supporting SWAps;
Undertake 2011 Paris Declaration Survey (2011 PDS);
Organize forward and backward looking Joint Budget Support Reviews (JBSR) and;
Strengthen the use of the Development Assistance Database (DAD).
Internal Resource mobilization: Key reforms to be implemented to improve internal resources mobilization include:
Collection of social security contributions starting 2010 -2011 financial year;
Increase internal revenue collection through improved revenue administration and expansion
of tax base. The goal is to increase domestic revenues by o.2 of GDP each year;
Strengthen RRA presence in provinces and computerize all provincial offices by the end of
2010;
Improve risk-based assessment of ASYCUDA++ by introducing electronic submission to support
customs documents;
Automate the enforcement module in the Standard Integrated Government Tax Administration
System (SIGTAS). This will help the tax administration to improve enforcement efforts to
recover outstanding arrears.
MINECOFIN Strategic Plan (07/2010 - 06/2013)
9
Results table 3: Goal/ Strategic intent: Mobilize internal and external resources Output results Outcome results Indicator DPCG, BSHG, JBSR held as scheduled
Better coordination and aid effectiveness
-Total Missions that are joint -% of donor analytic work that is coordinated
Manual of Procedure on Aid mobilization validated
Forward and backward looking Joint Budget Support Reviews (JBSR) Organized
Development Partners (DPs) make firm and indicative commitments of development assistance
JBSR Report with a commitment schedule
Development Assistance Database (DAD)updated
Information on Official Development Assistance (ODA) is available and informs the relevant units
Availability of quarterly ODA Report
Needs assessment of SWAps conducted and Plan of Action for supporting SWAps in place
Better understanding of the SWAps’ needs
SWAps needs assessment report with Plan of Action
2011 Paris Declaration Survey (2011 PDS) conducted
Awareness is created on the status of aid effectiveness in Rwanda
Availability of 2011 PDS Results
Revenues assessed and collected in accordance with relevant laws
Tax revenue increase by 0.2 of GDP % increase of domestic revenues
Multiple revenue collection Centres established
Clearance time reduced Average clearance time
Block management system fully implemented
Simplified tax systems and procedures
Number of recruited taxpayers
IT systems extended to all tax stations
Transmission Speed of tax returns increased
Number of tax stations having IT systems
Goal Four: Achieve the highest international standards in Public Financial Management (PFM) in order to ensure an accountable use of resources Objective:
2.6 Strengthen the implementation of the Public Finance Management reforms.
The PFM Reform Strategy aims to improve government’s capacity and systems to utilize public funds to achieve economic growth and poverty reduction.
The emphasis in three coming years will be to improve expenditure efficiency and monitoring
priority expenditures. Further more, Integrated Financial Management Information System will be
piloted in five government agencies and ultimately in all Ministries and Budget Agencies
MINECOFIN Strategic Plan (07/2010 - 06/2013)
10
Other reforms include:
Build a strong and effective government internal audit function for the purposes of
strengthening internal controls in financial management and reporting;
Enhance gains through good governance and privatization through the capital market;
Ensure a robust and sound financial management and reporting system in public enterprises;
Strengthen Budget Preparation Process and mainstream gender;
Integrating district accounts into a Single District Treasury Account;
Monitor public procurement process to ensure competition, value for money and transparency.
Results table 4: Goals/ Strategic intent: Achieve the highest international standards in Public Financial Management (PFM) in order to ensure an accountable use of resources Output results Outcome results Indicator Internal audit function is in each MDA and the internal auditors trained
Improvement in Public Finance Management
Compliance level of financial management rules and regulations
Updated standards and manuals, code of ethics enforced and trainings conducted
Professional government internal auditors provide high quality service
Financial Reports meet the international Standards
Requirements of the privatization policy on capital markets are observed
Bralirwa, initial offer Listing of Bralirwa on Rwanda Capital market
Fiscal reports of Public Enterprises analyzed and compiled
Improvement in assessment and management of risk
Availability of fiscal risk reports
Simplified budget processes and procedures finalized and validated
Condensed and user-friendly manuals
The level in which Budget agencies apply the processes and procedures described in the manual
Formats for revenue and expenditure forecasts prepared and ready for use
Efficient cash flow management
The level in which arrears resulting from poor expenditure management reduced
Districts accounts Integrated into Single District Treasury Accounts
The execution of government funds effectively monitored and managed
Single District Treasury Account is a sub- count of the main STA
SmartFMS Rolled out to all budget agencies
Efficient management of public resources
-Reduced Fiduciary Risk -Minimized arrears
Amended law on public procurement in place
Improved competition, and transparency in public procurement
-Proportion of the value of procurement tendered competitively or justified -Number of bidders violated procurement law
Compliance audits carried out
MINECOFIN Strategic Plan (07/2010 - 06/2013)
11
Goal Five: Improve the delivery of public services and accountability through effective financial and fiscal decentralization. Objective:
2.7 Strengthen fiscal decentralization.
Decentralization of fiscal responsibilities aims to increase efficiency in service delivery and reduce
information and transaction costs associated with the provision of public services. The overall
objective of the intergovernmental fiscal relations component is “to put in place a comprehensive
and transparent transfer and reporting mechanism, and to deepen the policy of fiscal
decentralization as a means of improving service delivery by the Sub-National governments”.
The government will start to implement the Fiscal Decentralization Strategy aligned to the
National Decentralization Policy with the aim of increasing service delivery at the District level. A
study on Districts' revenue potential will be undertaken and a strategy to improve revenue
collection in district will be developed on the basis of the study. Furthermore, work instructions
in the PEM will be developed to ensure better PFM at the District Level. Finally, a tax
management system will be developed, tested and distributed to the rural districts for improving
their tax collection and management.
Results table
5: Goals/ Strategic intent:
Improve the delivery of public services and accountability through effective financial and fiscal decentralization Output results Outcome results Indicator
Fiscal Decentralization
Strategy implemented
Improved service delivery at the
Sub-National governments level
% increase in the fiscal
transfers from Central
Government to the Districts
A study on Districts' revenue
conducted
Customized revenue mobilisation
strategies for each district
% increase in Districts' revenue
(as of GDP)
Work instructions in the PEM
updated
Public Expenditure aligned with
Government priorities and
national budget.
The level of transparency in
public finances management
Tax Management Systems
for districts implemented
Increased districts tax collection
and management
Decreased cost of collecting
tax
MINECOFIN Strategic Plan (07/2010 - 06/2013)
12
Goal Six: Contribute to increase the productivity of the economy, employment opportunities, the investment climate, and the quality of public investments. Objective:
2.8 Ensure alignment and improve the quality of public investment
The Public investment policy has been prepared to address the main problems regarding public
investment in Rwanda mostly related to non-alignment to the medium and long term development
goals and the insufficient level of public investment.
The Ministry will ensure that national public investment strategies, programs, and the selection of
projects are aligned with short, medium and long term objectives of economic and social
development.
Further more, the Ministry will implement Project Management Office (PMO) in all Ministries. The
Project Management Office is an organizational entity that should ensure projects are completed
successfully. This office aims at reducing project cycle time, improving quality of project
deliverables, better containment and management of project scope, improving accuracy of
estimates, perceptions of clients and speeds up initiation and functioning of new projects.
PMO will act as one stop centre for all project-related status information.
Results table
6: Goals/ Strategic intent:
Contribute to increase the productivity of the economy, employment opportunities, the
investment climate, and the quality of public investments
Output results Outcome results Indicator
Policies affecting public
investment identified
The recommendation report on
MACRO policies affecting public
investment implemented
The contribution of Public
investment to GDP PIP strategic overview 2011/12-
2013/14 Elaborated
Key investment programs, export
oriented projects are inline with
EDPRS
Single project units established
in public institutions
Efficient projects performance Number of projects
completed successful
MINECOFIN Strategic Plan (07/2010 - 06/2013)
13
Goal Seven: Contribute to increase living standards of the population and human Development within a sustainable environment Objectives:
2.9 Integrating Population Issues in National Development Programs
High population growth is a major challenge facing Rwanda. Integrating population issues in
national development programs ensure a balance between socio-economic development and
population dynamics and therefore facilitate the Government to make informed policy decisions
for sustainable development
Key initiatives for the three coming years are:
Mainstream population issues in District Development Plans (DDPs) and sector strategies;
Conduct joint Monitoring and evaluation in UNFPA’s zones of intervention;
Implement the strategy for national population policy
Conduct sensitization campaign on population issues for specific groups (youth, universities,
women associations and faith based organizations);
Disseminate the national population policy at all levels;
Update socio-demographic indicators and;
Monitor the population indicators with respect to EDPRS, MDGs and Vision 2020.
Results table 7: Goals/ Strategic intent: Contribute to increase living standards of the population and human Development within a sustainable environment Output results Outcome results Indicator Population issues fully integrated in DDPS and sector strategies
Improved tracking of population living standards
The number of district’s plans cover population issues
Population indicators with respect to EDPRS, MDGs and Vision 2020 monitored
Population interventions are evidenced based
Number of field reports submitted and districts covered
Joint Monitoring and evaluation in UNFPA’s zones of intervention conducted Socio-demographic indicators updated
Improved quality and status of data compilation and consistency
Annual report on population indicators available
MINECOFIN Strategic Plan (07/2010 - 06/2013)
14
Goal Eight: Promote a dynamic, efficient and stable financial market accessible to all segments of the population.
Objectives:
2.10 Strengthening and deepening the Financial Sector
The objective of Financial Sector Development Plan is to strengthen and deepening the financial
sector in Rwanda from microfinance to long term capital markets.
In order to ensure effective monitoring of the financial sector, the Government has started the
process of activating the Financial Sector Working Group which brings together the Central Bank,
government institutions, Development Partners, Civil Society and the Private Sector. Moreover,
measures to reduce financial sector vulnerability through strengthening banking supervision and
deepening the financial sector by enhancing access to credit will continue to be implemented.
In order to ensure Financial Crisis preparedness, a financial stability committee will be established
with a mandate to develop a contingency plan that ensures a sustainable response to financial and
economic crisis.
Areas in the Financial Sector Development Plan that are yet to be fully implemented include:
Improving access to credit: The Government has created SME development fund consisting of
scaled up and consolidated Government special financial facilities. The funds will be managed by
BRD through a subsidiary called BRD SME Development Fund (BSDF) this year 2010.
Moreover, a Private Credit Reference Bureau has been set up to improve the quality of
information and the assessment of risk posed by banks credit customers. This bureau will start its
operations this year 2010.
Savings: Implementation of the National Savings Mobilization Strategy and the Umurenge SACCO’s
strategy (adopted by Cabinet in early 2009) has commenced.
These strategies will assist the Government to reach the gross national savings target of 10
percent of GDP by 2012.
Improving Pension Sector: Liberalization of the pension sector will be achieved by setting up a
legal framework for the private pension scheme and personal retirement saving accounts. The law
is expected to be officially published this year 2010.
MINECOFIN Strategic Plan (07/2010 - 06/2013)
15
Regulation and Legal Framework for the Insurance Industry: NBR will work on legal and
structural issues to ensure a well regulated insurance sector.
Modernization of the National Payment System: The National Payment System (NPS) and
strategy will be implemented to continue to modernize the Rwandan Payment Systems. The aim
of this strategy is to have a clear vision and plans that will enable Rwanda to set up an efficient,
safe, fast and reliable payment system and advance high value funds transfer.
Results table 8: Goals/ Strategic intent: Promote a dynamic, efficient and stable financial market accessible to all segments of the population Output results Outcome results Indicator Strategy to make Rwanda a financial hub in place
World class financial services available in the country
Availability of Financial Services with international standards
SME development fund created Special financial facilities for SMEs consolidated and scaled up
Promptness in accessing SMEs funds
Electronic payment system strategy implemented
Electronic payment system operational
% decrease of cash payment operations
The Implementation of Umurenge SACCOs Strategy Monitored
More Rwandans are included in the financial sector
Number of people with accounts in Umurenge SACCOs
The Microfinance strategy implemented
Microfinance institutions are accessible and adopted to the market’s needs
The number of people accessing the microfinance
Law establishing Rwanda Social Security Board implemented
Rwanda Social Security Board operational
Insurance coverage as % of GDP
Social security reforms implemented Well regulated Social security sector
Availability of Social Security Laws and Regulations
Goal Nine: Contribute to foster deep regional integration through openness to change as well as mobility of goods, services, labour and capital. Objective:
2.11 Implementation of the Regional Integration activities related to fiscal and monetary policies.
Rwanda’s Strategic Position within EAC, COMESA and CEPGL will be developed and regular
economic impact studies of accessions will be carried out to enable the country reap benefits and
opportunities that impact on long term economic development.
Key priorities include:
Follow up and participation in the establishment of East African Monetary Union (EAMU).
Proposal on the amendments to the East African Customs Management Act.
All key Rwandan institutions will be engaged in sensitizing people on the EAC common market
protocol.
MINECOFIN Strategic Plan (07/2010 - 06/2013)
16
Results table 9: Goals/ Strategic intent: Contribute to foster deep regional integration through openness to change as well as mobility of goods, services, labour and capital. Output results Outcome results Indicator Gaps in implementing EAC strategic interventions/ priorities identified and a clear coordination framework in place.
Rwanda’s Strategic Position within EAC and CEPGL adopted.
Availability of legal and regulatory framework for Rwanda regarding EAC integration
Gaps in East African Customs Management Act identified
Proposed amendments adopted and EACCU Management Act fully implemented
Validated reports on gaps in EAC Customs Management Act.
Macroeconomic convergence criteria framework updated.
East African Monetary Union (EAMU) established.
Single currency in EAC region
Goal Ten: Build MINECOFIN into a strong, efficient and responsive institution Objective:
2.12 Strengthen institutional and individual capacity building strategies.
Achievement of MINECOFIN’s goals requires strengthening of both individual and institutional
capacities. In order to build the capacity the Ministry will implement the following initiatives:
Develop Institutional information policy;
Develop Staff Performance Monitoring framework;
Prepare on-job training Management program;
Develop and implement staff replacement/ succession program and;
Update HR policies and procedures. Conduct a result and impact analysis of previous Strategic Development Plan implementation
Other initiatives include:
Analyzing existing policies, processes and procedures and propose change or develop new ones
whenever necessary;
MINECOFIN Strategic Plan (07/2010 - 06/2013)
17
Enhancing the ICT security by developing and implementing the integrated security system,
security policy and procedures, disaster recovery strategies and plans to facilitate the ongoing
process of developing the Financial Management System and;
Ensuring effective filing management system (e-filing) and automation of the reporting
system.
Results table
10: Goals/ Strategic intent: Build MINECOFIN into a strong, efficient and responsive institution Output results Outcome results Indicator Information policy in place
Information policy adopted by senior managers and operationalised
The swiftness in information access in the Ministry.
Strategic and Action Plans produced
MINECOFIN’s decisions and plans are evidence based
Number of management decisions/ plans informed by research and reports
Updated M& E document in place SWOT analysis report validated 2010– 2011 MINECOFIN Financial statements produced Reports on the implementation of action plan produced MINECOFIN 2011 -2012 budget prepared
MINECOFIN 2011 -2012 budget adopted by the parliament and implemented
Availability of Budget execution reports
ERDM System developed and integrating with other Applications
Electronic Records and Documents Management operational
MINECOFIN’s Business processes are automated
Data and Voice Wireless Network Equipments in place
Data and Voice Wireless Network Equipments operational
The flexibility and availability of network
Staff replacement succession program in place
Six month Internship program The number of interns retained and integrated by the ministry due to their performance
Human Resource Capacity building plan implemented
Staff are creative and meet deadlines
Number of Staff with minimum performance appraisal of 70%
HR policies and procedures updated
Regulated institutional practices and behaviour
-Availability of HR policies and procedures; -Performance level staff; -Number of indiscipline cases
MINECOFIN Strategic Plan (07/2010 - 06/2013)
18
3 INCOME ESTIMATES AND SOURCES OF FUND
Below are Income estimates and sources of fund planned to support the Ministry’s
strategic plan:
Project Source 2010-2011 2011-2012 2012-2013
Gender responsive
budgeting program UNIFEM US$ 709,800 $ 603,150
PFM/MDTF
WORLD BANK
1,614,946,400 FRW
Population Desk UNFPA 3,195,931 $
Public Sector
Capacity Building
Project
World Bank 3,420,000,000 FRW 228,000,000 FRW
(400,000 USD)
Basket Fund to
support the NISR Basket Fund
5,534,219,282 FRW 6,545,000,000 FRW
20,000,000,000 FRW
Project study fund National Budget
673 ,000 ,000 FRW
Export Promotion National Budget
1, 000 000 ,000 FRW
Microfinance Capacity Building
National Budget
500, 000 ,000 FRW
Strategic Investment Fund
National Budget
4, 303, 038, 833 FRW
Trademark East Africa Project
DFID
1, 162 ,150, 000 FRW
ICF Project MDTF 1,147,951,400 FRW
Construction And Rehabilitation Of Border Posts
National Budget
300, 000 ,000 FRW
Rwanda Institutional Support to PFM (RISSP)
EU 2,000, 000 ,000 FRW (2,500,000€)
720, 000 ,000 FRW (900,000€)
MINECOFIN Strategic Plan (07/2010 - 06/2013)
19
Note:
MINECOFIN activities that are not reflected on the table above will be supported by
the institutional Budget. The resources envelope allocated to MINECOFIN for July 2010
June 2011 equals 137 349 987 429 frw. Resources domestically financed equals to
8, 373 000, 000frw and resources externally financed equals 17, 269, 049,764frw
4 MONITORING AND EVALUATION FRAMEWORK
4.1 Definition of the M&E framework
The M&E framework is an instrument that will be used by MINECOFIN to monitor the
Ministry’s progress towards achieving its objectives. Staff performance contracts will
be aligned with Key Performance indicators approved in the M&E framework as an
effective way to ensure results.
4.2 The purpose of the monitoring system of MINECOFIN’s action plan
The monitoring system has three objectives: firstly, it serves as a planning tool to
improve MINECOFIN’s performance; secondly, it serves to identify poor outcomes
sufficiently early to allow corrective measures to be taken and finally, the monitoring
system enhances accountability at three levels: political accountability of the Ministry
to the government, mutual accountability between Ministry’s authorities and staff and
mutual accountability of the Ministry and the development partners.
A comprehensive M&E framework for the Ministry (2010-2013) is to be updated and the
implementation will commence in July 2010
END
===================================================================