Context:
State delivery of public services such as education, healthcare and sanitation as well as security re-quires transparent and efficient management of public finances. This remains a challenge for many African countries. Some governments fail to mobilise sufficient revenues, budgeting remains difficult and there are shortcomings in transparency and accountability. As they often do not sufficiently fulfil their supervisory mandates, supreme audit institutions (SAIs) and parliaments are often seen as weak links in the chain of accountability. Moreover, where mismanagement of public resources is exposed, sometimes little is done to enforce the corresponding sanctions or changes in behaviour.
Good financial governance means promoting transparency and accountability in the management of public resources. It supports the delivery of services by governments and gives them credibility in the eyes of their citizens. Public contributions to the exchequer through taxes should be accompanied by value for money reflected by efficient delivery of public utility services by the State.
Objective:
Good financial governance change agents in the areas of taxation, budgeting, financial control, and legislative financial and budgetary supervision are empowered to support systemic changes in African countries and reduce Illicit Financial Flows in Africa.
Approach:
GIZ implements the Good Financial Governance in Africa programme. To strengthen the knowledge and skills of decision makers, the programme cooperates with regional public finance Pan-African Networks and provides technical advice, training and support for peer-learning processes, in the five areas in: tax administration and policy, budget reform, external audit, legislative oversight and tackling tax-related illicit financial flows in Africa. Part of the GFG II programme is the Multi Donor Action on "Tackling Tax related Illicit Financial Flows". This Multi Donor Action (MDA) is jointly co-financed by the European Union (EU), the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Ministry for Foreign Affairs of Finland, Department for Development Policy (Fin) as a Team Europe initiative "Illicit Financial Flows (IFFs) and Transnational Organized Crime (TOC)".