By Vivienne Russell | 30 April 2014

International Monetary Fund experts have been working with finance ministry and central bank officials from 12 southern African countries on ways to improve cash management.

The IMF’s Mauritius-based technical assistance centre covering the southern African region convened a cash management workshop last week to consider how best practice in cash management systems and practices can contribute to the smooth running of government transactions, achievement of fiscal policy targets, public debt management and monetary policy.

Dev Manraj, financial secretary of the Mauritius Ministry of Finance and Economic Development, said cash management was an area that was gaining greater prominence among policy makers in the region. ‘Poor cash management exerts a cost on public finances and on monetary policy.’

Manraj stressed the importance of effective cash management systems for ensuring adequate cash is available to pay for expenditures when they are due, for minimised net government borrowing costs and for facilitating monetary policy implementation.

The IMF has five technical assistance centres across Africa providing training on public financial management and tax administration. The fifth centre, covering western Africa, opened last month.