The Ministry of Finance will be increasing its rollout of the Integrated Financial Management Information System (IFMIS), an automated program that supports the management of public sector budgetary, financial, and accounting operations to enhance public financial management.

The announcement was made during a presentation of IFMIS strategic plan for the period 2021-2025 to key stakeholders. Presenting key result areas to be achieved in the second strategic period, Ato Nega Mengistu, IFMIS Project Manager of the Ministry of Finance said the government is working to transform Public Finance Management (PFM) efficiency, transparency and accountability as well as build its overall capacity to increase institutional and operation coverage of the program to reach an additional 760 sites in various parts of the country.

The strategic plan, which is in line with the various financial management reforms carried out by the ministry, emphasized how IFMIS is contributing to Ethiopia's macroeconomic stability, enacting public service delivery, improving accountability across budgeting, revenue collection, and expenditure management.

Ato Nega also explained that during the first strategic period 2016-2020 IFMIS was rolled out to 156 sites, training was conducted for 14,773 end-users, sufficient internal capacity was built to support the application. As part of the achievement of the first period he also said that 84% of the Federal Government’s budget is currently being managed by IFMIS. IFMIS has also managed over 25+ million transactions during the first strategic period. The strategic plan shows ministry will enhance the integration of IFMIS with other information systems such as Debt Management and Financial Analysis System (DMFAS), NBE, CBE revenue, and Customs.

Other key related public financial management reforms being carried out by the ministry include Program Based Budgeting (PBB), Unified Chart of Accounts (CoA), Treasury Single Account (TSA), The Electronic Procurement System (e-Procurement), and Electronic Payments (e-Payments). The success of IFMIS will be critical to increase efficiency reduce back-office costs with standardized processes for shared services. It will also allow the government to manage its finance from a single and integrated system.

The successful implementation of an IFMIS will enable standard processes across public bodies and regions timely, relevant, and reliable financial data to promote fiscal discipline, assist with resource allocation, and improve operational efficiency and fiscal transparency. It will also improve the current limitation of financial system support for property administration, fixed assets management, procurement, and payroll.