Good Financial Governance is the legitimate use of governmental power and authority in the management of a country’s financial resources with integrity, transparency, accountability, equity and a result-orientation to promote development. Good Financial Governance implies effective, efficient and accountable state departments and financial institutions, which act within the framework of a functioning rule of law. They are used to mobilise resources and manage financial liabilities and assets, as well as building effective budgeting, budget execution, robust accounting, auditing and oversight systems.
Every public service needs to be financed – be it schools, hospitals or transport. Efficient and transparent management of public finance is crucial to enable development and poverty reduction in Africa. This applies to the entire budget cycle: tax administration, budget preparation and execution, control by parliaments and external auditing by Supreme Audit Institutions. At every stage, the responsible institutions should primarily work to the benefit of the people to ensure sufficient public finance for public services.
The Good Financial Governance (GFG) in Africa programme promotes transparency and accountability in public financial management and is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union (EU). Its objective is to foster Good Financial Governance in Africa, more specifically to equip decision-makers in African public finance to use region-specific services, products and further education to improve financial governance.
Effective revenue collection provides a government with funds that are needed to develop the country, alleviate poverty, and to deliver much-needed public services.
A credible budget is more than just figures. It shows precisely and comprehensively how much public money is available and for what purpose it is allocated.
Supreme Audit Institutions (SAIs) assess how governments manage their financial resources. Does government follow the relevant rules?
Parliamentary oversight is a crucial pillar for creating credibility in budgeting and in holding governments accountable for the results
The relevance of Good Financial Governance for development was highlighted in a number of international debates and declarations. Regional public finance networks increasingly strengthen the representation of Africa in international processes and discussions and ensure the continent’s perspectives are taken into account at global level.
IFFs are illegal movements of money or capital from one country to another. Illicit money leaving the continent facilitates criminal activities and reduces the amount of resources available to Africa to invest in jobs and provide critical social services to citizens and economy.
Good Financial Governance, what is it all about? This short film shows why the transparent and efficient use of public funds is so important for development.