For many African countries, the discovery of mineral resources have promised to be a game-changer that would bring prosperity to the nation. This week, CABRI participated in an IMF AFRITAC South workshop on strengthening fiscal frameworks and Public Finance Management in the extractives sector, which took place in Mauritius.
The workshop brought together officials from various southern African countries, as well as international experts, to exchange ideas and experiences in dealing with management of natural resource wealth. The discussions highlighted that resource-rich countries in Africa are trying to find the balance between saving revenues from the extractives sector and spending those resources on immediate development needs. There is also a growing trend among resource-rich countries to minimise consumption, and save money from natural resource revenues in the form of sovereign wealth funds.
CABRI had the opportunity to present its work plan on fiscal policy and revenue management in the extractives sector. Our fiscal and budget policy programme aims to support African countries to design and implement appropriate and sustainable fiscal and budget policies. CABRI is undertaking work in the extractives industry sector, with a particular focus on how African countries manage planning revenue in the form of sovereign wealth funds, and foster transparency and accountability. It will build on several of the activities undertaken previously, such as the projects on value for money in the agriculture, health and education sectors. The CABRI dialogue on value for money in financing the extractives industry will take place in early 2016.