Liberia’s delegation exchange notes with Ugandan counterparts on macroeconomic policy framework

Kampala, Uganda - A Liberian delegation headed by Deputy Minister for Economic Management at the Ministry of Finance and Development Planning, Augustus J. Flomo is currently in the Ugandan capital Kampala, having knowledge sharing discussions with counterparts from Uganda Ministry of Finance and Economic Planning, Uganda Revenue Authority, Uganda Bureau of Statistics and the Central Bank of Uganda.

The visit, which is very engaging, is meant to get the Ugandan experience on macroeconomic policy management processes as Liberia develops its own Macroeconomic Framework Models.

Currently, Liberia relies on the International Monetary Fund (IMF) for its macroeconomic projections, something the country wants to change as it is with many countries in the ECOWAS region and Africa.

The primary objective of the visit is to help senior management and key technical staff from core ministries and agencies in Liberia acquire best practices and experience on how to successfully prepare, manage, and implement macroeconomic policy framework.

The visit builds on existing efforts by the Government of Liberia to institutionalize the implementation of the macroeconomic framework across relevant ministries and agencies, using context-specific models that are largely owned and controlled by local authorities.

The visit also created the platform for both countries to share management experiences and lessons learnt from various macroeconomic and fiscal forecasting, macro-fiscal policy analyses, institutional arrangements for meeting macro-fiscal targets, strengthening policy coordination, building consensus between policymakers and technical staff on major policy issues, and using macroeconomic policy framework effectively to inform multilateral surveillance missions—from the IMF, World Bank, and other bilateral institutions.

The Liberian delegation first visited the Ministry of Finance and Economic Planning where presentations were made by representatives from both countries, sharing leadership experiences and best practices for institutionalizing macroeconomic policy management and forecasting.

The two Ministries were able to identify areas that were similar, and those ones which they could learn from by sharing experiences. Uganda has had a stable economy since the 1990s with a stable growth rate between 4.5-6 percent annually, and for about 20 years since the 2000s, have had vast experience in macroeconomic policy management, something Liberia could benefit from.

The Liberian delegation also met with Uganda Revenue Authority and the Central Bank of Uganda, who are both far ahead of Liberia in the implementation of Value Added Tax (VAT). The Central Bank of Uganda for a long time has relatively developed its financial markets—the domestic debt market is active, capital market has improved and several other reforms that Liberia could benefit from.

 Both institutions in Uganda agreed to provide technical support for technicians from LRA and CBL, using zoom platform and onsite training which may include seconded.

On Wednesday, June 29, 2022, the Liberian delegation met with the Ugandan Bureau of Statistics, which was the last day of the engagements. The counterparts discussed the different statistical methods and programs being implemented including the National Accounts and other major statistical surveys.

The management at the Uganda Bureau of Statistics emphasized that collecting data is costly and that consistency in producing data is equally important. The authority advised that all governments need to spend adequate resources on generating statistics to primarily inform development planning and policymaking, which Uganda is making significant progress due to strong political support.

While in Kampala, the delegation paid a courtesy visit to the Country Manager of the African Development Bank in Uganda, Hon. Augustine Kpehe Ngafuan, the former Minister of Finance and Development Planning.

The delegation from Liberia includes Ministers and Senior Technicians from The Study tour team include ten (10) Government officials (including Ministers and Senior Technicians) from the Ministry of Finance and Development Planning (MFDP), Central Bank of Liberia (CBL), Liberia Institute of Statistics & Geo-Information Services (LISGIS), Liberia Revenue Authority (LRA), and the Ministry of Commerce and Industry (MOCI).