Earlier this month, the EU and the government of the Republic of Zambia signed the agreement, which will contribute to the improvement of the planning, budgeting and budget implementation capacities in the African country.

Ambassador of the European Union to Zambia, Alessandro Mariani said during the signing ceremony: “With political support, the most important ingredient, this program can greatly contribute to the strengthening of public finance management which is in the supreme interest of the people of Zambia”.

He added that the programme will address some of the key challenges Zambia is facing in the field of PFM, which are crucial for sustained inclusive growth.

It will also improve fiscal transparency and accountability through effective oversight of the country’s budget in all phases, he said.

The programme on Effectiveness and Transparency in the Management of Public Resources (EFFECT) will also improve the capacity of the main oversight institutions in the country – the National Assembly, the Office of the Auditor General and the Anti-Corruption Commission.

Additionally, the agreement will support the revenue authorities in mordernising the revenue collection processes to ensure that the “tax system is simpler, the tax base expanded and the compliance increased”, the EU said in a statement.

Independent regulators in Africa, including Zambia, met last month to strengthen auditing and accounting regulations across the continent by formalising a common base and adopting international standards.