Public Finance Management experts urge governments on corruption, debt management, and tax policy

KAMPALA, UGANDA | Julius Businge | Public Finance Management experts have urged African governments to take deliberate steps to improve tax-to-GDP ratios, manage public debt responsibly, and intensify the fight against corruption through effective Public Finance Management (PFM) reforms.

Speaking at the second edition of the Public Finance Management Conference for Africa, which took place from February 18 to 20, 2025, in Kampala, Uganda, key stakeholders emphasized the urgency of financial discipline in ensuring sustainable economic growth.

CPA Derick Nkajja, Secretary/CEO of the Institute of Certified Public Accountants of Uganda (ICPAU), said that strengthening financial governance requires bold reforms.

“We need to move beyond discussions and take concrete steps towards improving revenue collection, debt transparency, and fiscal discipline. Governments must ensure that their tax policies are efficient and that collected revenue is used for intended purposes,” Nkajja said.

Keto Kayemba, president of the Pan African Federation of Accountants (PAFA), pointed out the importance of leveraging Africa’s natural resources for financial sustainability.

“Africa is rich in resources such as oil, gas, and minerals, yet many countries struggle with unsustainable debt. Governments must ensure that revenue from these resources supports long-term growth. Borrowing should be strategic—focused on critical areas that will generate returns and ensure debt repayment without straining future budgets,” Kayemba said.

The African Union Commission (AUC) reiterated its commitment to strengthening PFM across the continent.

Edith Akorfa Lumor, the director of finance for the AUC, stressed the vital role of professional accountants in financial governance.

“Public Finance Management and professional accountants are inextricably linked. Accountants facilitate the development of strong PFM frameworks, uphold standards, and combat illicit financial flows,” Lumor said.

She emphasized that improved financial reporting and regulatory oversight would help African nations curb corruption and ensure accountability in the management of public resources.

Lumor also announced AUC’s plans to enhance financial data collection and reporting mechanisms to support Africa’s credit ratings.

“We are developing a comprehensive strategy to compile accurate financial data and produce reports that will help assess Public Finance Management across African countries. This will contribute to more credible credit ratings, improving the ability of African nations to attract investment and negotiate better financing terms,” she noted.

The conference also addressed the significance of sustainability reporting, particularly in the context of climate change and economic stability.

“Sustainability reporting is essential for aligning fiscal policies with long-term development goals. Governments must integrate environmental, social, and governance (ESG) factors into their public finance strategies to ensure resilience in the face of economic uncertainties,” Lumor added.

One of the recurring themes at the conference was the need for African governments to leverage technology in financial management.

Lumor highlighted how artificial intelligence (AI) could revolutionize PFM by improving data collection, detecting fraud, and enhancing accountability.

“AI-driven insights can help governments detect anomalies in financial transactions, track public expenditure more effectively, and reduce corruption risks. If adopted widely, AI can transform the efficiency and transparency of public finance management across Africa,” she explained.

Uganda, like many other African nations, faces significant challenges in revenue mobilization and debt management. Despite an increase in the country’s tax-to-GDP ratio from 9.0% in 2013 to 12.5% in 2022, it still lags behind the African average of 16.0%.

Experts at the conference emphasized the need for Uganda and other nations to implement policies that enhance tax compliance and broaden the tax base. “We must tackle issues such as tax evasion and illicit financial flows, which deprive governments of much-needed revenue for development,” Kayemba stated.

Uganda’s public debt has also been a growing concern, reaching $25.59 billion (Shs94.87 trillion) in the fiscal year 2023/24, equating to 46.8% of the country’s GDP. While this marks a slight decrease from 47.4% the previous year, experts cautioned that the debt service-to- revenue ratio of 31.5% remains high, limiting fiscal space for critical investments in health, education, and infrastructure.

The conference concluded with a unified call for African governments to prioritize PFM reforms that will improve revenue collection, enhance accountability, and strengthen debt sustainability.

Participants urged policymakers to take proactive measures in implementing modern financial management practices, leveraging technology, and fostering collaboration with professional accountancy organizations to drive meaningful change.

As Africa moves towards greater financial integration, experts stressed the importance of aligning national financial policies with global best practices. “With stronger partnerships, strategic investments, and the adoption of digital innovations, African nations can build a more resilient financial ecosystem that supports long-term economic growth,” Lumor said.

Henry Musasizi, the junior Minister of Finance, emphasized the Ugandan government’s dedication to managing debt, improving the tax-to-GDP ratio, and ensuring fiscal discipline.

“African governments must take decisive action to enhance revenue collection and eliminate inefficiencies in public finance. The Ugandan government is committed to strengthening debt management, increasing the tax-to-GDP ratio, and maintaining fiscal discipline to drive economic growth,” Musasizi said.

He also highlighted the government's efforts in fighting corruption and adopting modern financial management practices. “We must continue to prioritize transparency and accountability in the management of public funds, leveraging technology and policy reforms to create a more resilient financial system,” Musasizi added.