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THE REPUBLIC OF RWANDA

Ministry of Finance and Economic Planning

MINECOFIN STRATEGIC PLAN FOR

07/2010 – 06/2013.

June 2010.

ii MINECOFIN Strategic Plan (07/2010 - 06/2013)

FOREWORD

This is an updated version of the 2010-2013 rolling strategic plan for the Ministry of

Finance and Economic Planning. The plan is updated while the world is dealing with the

impact of Global financial crisis and looking for measures to prevent future economic

crisis.

Although Rwandan economy was not so much hampered by the effects of the global

financial crisis, there is a need to broaden the tax base and improve expenditure

efficiency to ensure sustainable budget deficit given that most donor countries are still

experiencing limited access to finance.

Accounting and auditing professions will continue to be strengthened to provide timely

and high quality financial information that is reliable, and facilitate effective decision

and policy making.

The Ministry will continue to monitor the implementation of the Financial Sector

Development Program to ensure a vibrant and dynamic financial sector in Rwanda.

The implementation of Public investment policy will continue to be monitored to ensure that

investments are aligned with medium and long term development goals.

Finally, I wish to express my commitment to improve the delivery of public services and

accountability in Public Financial Management.

John Rwangombwa

Minister

iii MINECOFIN Strategic Plan (07/2010 - 06/2013)

EXECUTIVE SUMMARY

This is a framework in which the Ministry will focus its effort:

Ensuring Macroeconomic stability: The government will ensure effective decision making in

government spending, investment, widening of the tax base and ensure that debt issuing and

repayment are closely linked with Budget

Strengthening and deepening the Financial Sector: Areas still to be fully implemented

include improving access to credit, Implementation of the National Savings Mobilization

Strategy, Improving Pension Sector and Modernization of the National Payment System.

Strengthen the Planning Function by ensuring the quality of sector strategies and Districts

Development Plans as well as Aligning budget and action plans to EDPRS Priorities.

Ensure successful implementation of EDPRS by updating EDPRS, Policy Results Matrix and

Common Performance Assessment Framework and ensure effective implementation.

Ensure Fiscal Discipline by deepening reforms in budget implementation and formulation.

Strengthen Public Finance Management through Rolling out SmartFMS to all budget

agencies, building a strong and effective government Internal audit, Strengthen Budget

Preparation Process and Integrating districts accounts in single treasury account.

Strengthen fiscal decentralization: The Government will implement the newly developed

Fiscal Decentralization Strategy.

Ensure alignment and improve the quality of public investment: National Public

Investment Policy will be utilized to improve resource allocation, quality, and efficiency of

the investment portfolio and increase the level of project execution rates.

Integrating Population Issues in National Development Programs: Socio-demographic

indicators will be updated and population issues mainstreamed in DDPs and sector strategies.

Implementation of the Regional Integration activities related to fiscal and monetary

policies are aimed to increase trade through the access to wider market while having a long

term impact on economic development.

Build the capacity of the institution to deliver: The Ministry will develop Institutional

information policy, staff performance monitoring framework, on job training management

program, staff replacement/ succession program and continue to enhance ICT security.

iv MINECOFIN Strategic Plan (07/2010 - 06/2013)

ACRONYMS

AGF Automobile Guarantee Fund BFP Budget Framework Paper BM&E Budget Management & Expenditure BRD Banque Rwandaise de Développement BSHG Budget Support Harmonization Group BSDF BRD SME Development Fund

CPAF Common Performance Assessment Framework CEPEX Central Public Investment and External Finance Bureau CMAC Capital Markets Advisory Council CEPGL Economic Community of the Great Lakes Countries CRB Credit reference Bureau CSR Caisse Sociale du Rwanda DDP District Development Plans DFID Department for International development DPCG Development Partners Coordination Group DPM Development Partners Meeting DPR Development Partners Retreat ERDM Electronic Records and Documents Management EAC East African Community EACCU East African Community Customs Union EDPRS Economic Development and Poverty Reduction Strategy FSDP Financial Sector Development Program GBE Government Business Enterprises HR Human Resources ICPAR Certified Public Accountants of Rwanda ICT Information and Communications Technology IFMS Integrated Financial Management System IMF International Monetary Fund JBSR Joint Budget Support Review

JDR Joint District Review

JSR Joint Sector Review

MCBF Microfinance Capacity Building Fund MCF Microfinance Credit Fund MDGs Millennium Development Goals MDTF Multi Donor Trust Fund M&E Monitoring and Evaluation MFIs Micro Finance Institutions MGF Microfinance Guarantee Fund MINECOFIN Ministry of Finance and Economic Planning MSMEs Micro- Small And Medium Enterprises MTEF Medium Term Expenditure Framework NISR National Institute of Statistics of Rwanda NPS National Payment System NPV Net Present Value

OBL Organic Budget Law PDS Paris Declaration Survey PER Public Expenditure Review PEM Public Expenditure Manual PFM Public Finance Management

v MINECOFIN Strategic Plan (07/2010 - 06/2013)

PIC Public Investment Committee PIP Public Investment Program PMO Project Management Office PPP Public-Private Partnership PRGF Poverty Reduction and Growth Facility RAMA La Rwandaise d’Assurance Maladie RIC Regional Integration Committee RPC Rwanda Payment Card RPPA Rwanda Public Procurement Authority RRA Rwanda Revenue Authority RSSB Rwanda Social Security Board SACCOs Saving and Credit Cooperatives SIP Strategic Issues Paper SMARTFMS Integrated Financial Management System SMEs Small and medium enterprises SIGTAS Standard Integrated Government Tax Administration System STA Single Treasury Account SWOT Strengths, Weaknesses, Opportunities and Threats analysis TMC Treasury Management Committee UNFPA United Nations Population Fund WB World Bank ZBA Zero Balance Account

vi MINECOFIN Strategic Plan (07/2010 - 06/2013)

CONTENTS

FOREWORD ........................................................................................................... II

EXECUTIVE SUMMARY ............................................................................................. III

CONTENTS........................................................................................................... VI

1 INTRODUCTION ................................................................................................... 2

1.1 VISION AND MISSION .......................................................................................... 2

1.2 CORE FUNCTIONS ............................................................................................. 2

1.3 KEY GOALS ................................................................................................... 3

1.4 CORE VALUES ................................................................................................ 3

2 KEY STRATEGIC OBJECTIVES OF THE MINISTRY OF FINANCE AND ECONOMIC PLANNING IN THREE

YEARS PERIOD..................................................................................................... 4

2.1 MONITORING THE MACROECONOMIC ENVIRONMENT AND ENSURING ITS STABILITY. ........................... 4

2.2 ENSURE SUCCESSFUL IMPLEMENTATION OF EDPRS ........................................................... 5

2.3 STRENGTHENING THE PLANNING FUNCTION ................................................................... 6

2.4 STRENGTHENING THE NATIONAL STATISTICAL SYSTEM ......................................................... 6

2.5 RESOURCE MOBILIZATION STRATEGY .......................................................................... 8

2.6 STRENGTHEN THE IMPLEMENTATION OF THE PUBLIC FINANCE MANAGEMENT REFORMS. ...................... 9

2.7 STRENGTHEN FISCAL DECENTRALIZATION. ................................................................... 11

2.8 ENSURE ALIGNMENT AND IMPROVE THE QUALITY OF PUBLIC INVESTMENT ..................................... 12

2.9 INTEGRATING POPULATION ISSUES IN NATIONAL DEVELOPMENT PROGRAMS ................................. 13

2.10 STRENGTHENING AND DEEPENING THE FINANCIAL SECTOR ................................................... 14

2.11 IMPLEMENTATION OF THE REGIONAL INTEGRATION ACTIVITIES RELATED TO FISCAL AND MONETARY POLICIES.15

2.12 STRENGTHEN INSTITUTIONAL AND INDIVIDUAL CAPACITY BUILDING STRATEGIES. ......................... 16

3 INCOME ESTIMATES AND SOURCES OF FUND .............................................................. 18

4 MONITORING AND EVALUATION FRAMEWORK ............................................................. 19

4.1 DEFINITION OF THE M&E FRAMEWORK ...................................................................... 19

4.2 THE PURPOSE OF THE MONITORING SYSTEM OF MINECOFIN’S ACTION PLAN ................................ 19

MINECOFIN Strategic Plan (07/2010 - 06/2013)

1

1 INTRODUCTION

1.1 Vision and Mission

The Ministry of Finance and Economic

planning has a Vision of “Developing

Rwanda into a Country Free of

Poverty” and a Mission of “Raising

sustainable growth, economic

opportunities and living standards of

all Rwandans; and achieve the highest

standards of accountability and

transparency in public finance

management.

1.2 Core Functions

The core functions of the Ministry are

as follows:

1. Develop and disseminate

economic policies, strategies and

programs

Design sound macroeconomic

policies, strategies and reforms to

maintain a stable macroeconomic

environment with low inflation,

moderate budget deficits and

sustainable public debt;

Develop medium and long term

economic development and poverty

reduction plans and programs;

Develop financial policies,

strategies and reforms to create a

vibrant and dynamic financial sector;

Develop public investment policies,

strategies and programs to improve the

productivity of the economy and

investment climate;

Assess the needs for complementary

external financing in order to implement

the economic plans.

2. Regulate the sector and related sub-

sectors

Draft and monitor the implementation of

economic-related laws and regulations.

3. Develop institutional and human

resources capacities

Strengthen and coordinate the national

economic planning processes across

government;

Strengthen the process of

intergovernmental fiscal decentralization

and local finance management to improve

the delivery of public services;

Strengthen the capacity of public

institutions in public financial management

and budget preparation;

Guide the strengthening of the national

statistical system;


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4. Monitor and evaluate the

implementation of economic

policies, strategies and programs

For details of economic policies

being monitored and evaluated, see

core function 1.

5. Oversee the institutions under

supervision

Give direction/orientation on

specific policies and programs to be

implemented by the institutions

under supervision of the Ministry, to

mention:

- BNR, - RPPA, -RRA,

- RSSB, - CEPEX,

- NISR

- FSDP and - AGF

Supervise the functioning and

management of public institutions

and agencies of the Ministry in

ensuring cost effectiveness and

management of cross-cutting

economic issues.

6. Mobilise and manage external and

internal resources for the Country

Identify, mobilize and manage

external resources, including donor

aid, and ensure their efficient

utilization;

Develop strategy and plans to raise

domestic sources of finance, including an

equitable and efficient tax and benefit

system;

Manage the public debt (both internal and

external), and Government financial

portfolios.

7. Maintain a strong public financial

management (PFM) system to ensure

transparency and accountability in the

use of public funds

Promote evidence-based planning;

Strengthen performance-based budgeting;

Treasury management;

Oversee the implementation of a

transparent public procurement system;

Produce public accounts and strengthen the

accounting system countrywide;

Provide guidance and oversight to the

internal auditors within government

institutions and strengthen the audit

function countrywide.

8. Manage the overall national budget

process

Prepare MTEF and annual budget with

allocation of resources guided by national

priorities and plans;

Enable budget execution by being the

direct interface with budget users wishing


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to carry out transactions on the

government’s accounts;

Monitor and report the budget

execution;

Coordinate budget reforms.

9. Support functions: Corporate Planning –

Documentation – Public Relations – Legal

Affairs - Secretariat and ICT Services.

10. Resources Management Functions:

Finance - Human Resources -

Logistic – Stores.

1.3 Key goals

By fulfilling its core functions, the

Ministry aims at achieving the following

goals:

Macroeconomic stability and

sustainable growth;

Integrated evidence-based planning

and performance-based budgeting

processes;

Availability of sufficient Resources

to finance the Country development

agenda (EDPRS priorities and Vision

2020) ;

Achieve the highest international

standards in Public Finance

Management (PFM) in order to

ensure an accountable use of

resources;

Effective financial and fiscal

decentralization for the improved

public services delivery and accountability;

Economic productivity through improved

public investment climate and the quality

of public investments

Integrating population issues in the national

development programme;

Promote a dynamic, efficient and stable

financial market accessible to all segments

of the population;

Contribute to foster deep regional

integration through openness to change as

well as mobility of goods, services, labour

and capital;

Build MINECOFIN into a strong, efficient and

responsive institution.

1.4 Core Values

The Ministry of Finance and Economic Planning

is firmly committed to excellence and

effectiveness when carrying out its mandate.

For this reason, the Ministry affirms the

following values in the provision of all of its

services:

Customer service;

Professionalism;

Innovativeness;

Teamwork;

Accountability;

Gender promotion;

Career growth;

Efficiency and;

Integrity.

.


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2 KEY STRATEGIC OBJECTIVES OF THE MINISTRY OF FINANCE AND ECONOMIC PLANNING

IN THREE YEARS PERIOD

Throughout the period of three years (2010-2013), the Ministry will focus on the following

strategic areas as grouped under 10 Ministerial goals:

Goal One: Maintain a stable macroeconomic environment with low inflation, moderate budget deficits and sustainable public debt

Strategic Objective:

2.1 Monitoring the Macroeconomic Environment and ensuring its stability.

The overall macroeconomic objectives in three coming years would be to sustain the real GDP

growth rates of around 7- 8 percent a year and ensuring:

Sustained growth is in line with EDPRS targets;

Controlled inflation (single digit);

Sustainable trade balance and capital account and;

Low unemployment.

The objectives mentioned above will be achieved through:

Fiscal consolidation: Maintaining a sustainable fiscal position through improved revenue

mobilization and increased expenditure efficiency;

Monetary and exchange rate policies: Strengthening monetary and exchange rate policies to

ensure low and stable inflation;

Structural reforms that deepen the financial sector;

Increase domestic productive capacity which increases employment

Other Initiatives include:

Strengthening debt management: The Government will revise medium-term debt strategy

(MTDS) and;

Continuing research on the appropriateness of the flat tax in Rwanda;


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Results table

1: Goal/ Strategic intent:

A stable macroeconomic environment with low inflation, moderate budget deficits and

sustainable public debt

Output results Outcome results indicator

-Macroeconomic policy analysis

carried out;

-Proposals on pro-growth

macroeconomic policy changes

provided;

Sustained economic

growth

Real GDP growth rate

Inflation related data collected,

analysed and recommendations

provided to the policy makers.

Controlled inflation

(single digit)

Inflation rate

-Data analysis on employment status

carried out;

-The employment levels established.

Policy

recommendations to

ensure employment

stability adopted

Employment rate

Support in the design of the National

export strategy

Sustainable current

account

Current account balance

Goal Two: Foster greater evidence-based planning and performance- based budgeting. Objectives:

2.2 Ensure successful implementation of EDPRS

The Government of Rwanda is in the third year of the implementation of the Economic

Development and Poverty Reduction Strategy (EDPRS) adopted in 2007. The strategy focuses on

economic growth, poverty reduction, enhancing human development and good governance.

In order to continue to ensure successful implementation of EDPRS the Ministry will:

Update EDPRS, Policy Results Matrix and Common Performance Assessment Framework;

Carryout national wide awareness campaign of EDPRS and Vision 2020;

Prepare the MDGs Report and;

Coordinate the Joint sectors and Districts reviews.


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2.3 Strengthening the Planning Function

Planning function provides standards and a framework within which Government operates.

The framework facilitates the Government to understand more clearly what needs to be

achieved, how and when to achieve it.

The Ministry consequently will strengthen the planning function by:

Ensuring the quality of sector strategies and Districts Development Plans;

Aligning budget and action plans to EDPRS Priorities;

Strengthening M&E System;

Building the capacity of planners in central and local government;

Updating the master plan for studies and researches regarding EDPRS implementation process

and;

Conducting public expenditure review for selected sectors.

2.4 Strengthening the national statistical system

High quality statistical information enables the Government and other users to make decisions

based on accurate and reliable statistical data.

The purpose of NISR involves improving the government and partners’ capacity to use evidence-

based information for decision making by coordinating national efforts to collect and achieve

reliable data, analyze, document and disseminate derived indicators within an integrated and

sustainable framework (Fostering evidence-based planning).

Key initiatives for the three coming years include:

Conduct a survey of all enterprises to ensure a correct measure of the Gross Domestic

Production;

Ensure proper design of the household survey and revise the methodology for conducting pre

and post crop assessments;

Produce statistics that meet EDPRS, MDGs and other development policies requirements;

Promote dialogue between users and producers of statistical data;

Increase the accuracy, timeliness and usage of statistics;

Implement an effective quality management system;

Promote statistical advocacy and partnerships and;

Promote integration and coordination among producers of official statistics.


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Results table

2: Goal/ Strategic intent:

Foster greater evidence-based planning and performance- based budgeting

Output results Outcome results Indicator

Sector strategies reviewed Feedback on gaps and quality

issues of sector strategies and

Districts Development plans given

-Checklist available

-The assessment report of

the Quality Assurance Team

Sector Budgets and Action

plans developed

Budgets and Action plans are

aligned to EDPRS Priorities

Strategic Issues embedded in

Plan of Action

Reporting formats at central

and local Government levels

Harmonized

M&E System strengthened

EDPRS Implementation

reports (Quarterly)

Public expenditure review

conducted

Improved efficiency and

effectiveness of resource

allocations.

Public Expenditure Review

Reports

2010/11 EDPRS, Policy

Results Matrix and Common

Performance Assessment

Framework updated

Improved tracking of EDPRS

implementation and performance

EDPRS implementation

reports

Economic statistical data

produced

Social - economic polices and

decisions informed by statistical

results

Updated CPAF and EDPRS

Results and Policy Matrix

MDGs targets monitored and

reported

MDG reports informs policy making

and dialogue

Updated MDGs report

(annually)

Policy assessment report

produced and research

carried out to assess EDPRS

flagships

Strategic Plans and policies are

evidence based

Study reports


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Goal Three: Mobilize internal and external resources. Objectives:

2.5 Resource mobilization strategy

External Resource Mobilization:

MINECOFIN will continue to undertake necessary actions to improve coordination and

harmonization of donor interventions by supporting mutual accountability framework in the

context of Rwanda’s Aid Policy. Effective functioning of Development Partners Coordination

Group (DPCG), Budget Support Harmonization Group (BSHG), Joint Budget Support Review (JBSR)

and the organization of the Development Partners Meeting (DPM) will be ensured.

Furthermore, the ministry will:

Ensure aid effectiveness and better aid management focused on long term investments with

impact on growth;

Develop Resource Mobilizations Strategy;

Conduct needs assessment of SWAps and develops Plan of Action for supporting SWAps;

Undertake 2011 Paris Declaration Survey (2011 PDS);

Organize forward and backward looking Joint Budget Support Reviews (JBSR) and;

Strengthen the use of the Development Assistance Database (DAD).

Internal Resource mobilization: Key reforms to be implemented to improve internal resources mobilization include:

Collection of social security contributions starting 2010 -2011 financial year;

Increase internal revenue collection through improved revenue administration and expansion

of tax base. The goal is to increase domestic revenues by o.2 of GDP each year;

Strengthen RRA presence in provinces and computerize all provincial offices by the end of

2010;

Improve risk-based assessment of ASYCUDA++ by introducing electronic submission to support

customs documents;

Automate the enforcement module in the Standard Integrated Government Tax Administration

System (SIGTAS). This will help the tax administration to improve enforcement efforts to

recover outstanding arrears.


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Results table 3: Goal/ Strategic intent: Mobilize internal and external resources Output results Outcome results Indicator DPCG, BSHG, JBSR held as scheduled

Better coordination and aid effectiveness

-Total Missions that are joint -% of donor analytic work that is coordinated

Manual of Procedure on Aid mobilization validated

Forward and backward looking Joint Budget Support Reviews (JBSR) Organized

Development Partners (DPs) make firm and indicative commitments of development assistance

JBSR Report with a commitment schedule

Development Assistance Database (DAD)updated

Information on Official Development Assistance (ODA) is available and informs the relevant units

Availability of quarterly ODA Report

Needs assessment of SWAps conducted and Plan of Action for supporting SWAps in place

Better understanding of the SWAps’ needs

SWAps needs assessment report with Plan of Action

2011 Paris Declaration Survey (2011 PDS) conducted

Awareness is created on the status of aid effectiveness in Rwanda

Availability of 2011 PDS Results

Revenues assessed and collected in accordance with relevant laws

Tax revenue increase by 0.2 of GDP % increase of domestic revenues

Multiple revenue collection Centres established

Clearance time reduced Average clearance time

Block management system fully implemented

Simplified tax systems and procedures

Number of recruited taxpayers

IT systems extended to all tax stations

Transmission Speed of tax returns increased

Number of tax stations having IT systems

Goal Four: Achieve the highest international standards in Public Financial Management (PFM) in order to ensure an accountable use of resources Objective:

2.6 Strengthen the implementation of the Public Finance Management reforms.

The PFM Reform Strategy aims to improve government’s capacity and systems to utilize public funds to achieve economic growth and poverty reduction.

The emphasis in three coming years will be to improve expenditure efficiency and monitoring

priority expenditures. Further more, Integrated Financial Management Information System will be

piloted in five government agencies and ultimately in all Ministries and Budget Agencies


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Other reforms include:

Build a strong and effective government internal audit function for the purposes of

strengthening internal controls in financial management and reporting;

Enhance gains through good governance and privatization through the capital market;

Ensure a robust and sound financial management and reporting system in public enterprises;

Strengthen Budget Preparation Process and mainstream gender;

Integrating district accounts into a Single District Treasury Account;

Monitor public procurement process to ensure competition, value for money and transparency.

Results table 4: Goals/ Strategic intent: Achieve the highest international standards in Public Financial Management (PFM) in order to ensure an accountable use of resources Output results Outcome results Indicator Internal audit function is in each MDA and the internal auditors trained

Improvement in Public Finance Management

Compliance level of financial management rules and regulations

Updated standards and manuals, code of ethics enforced and trainings conducted

Professional government internal auditors provide high quality service

Financial Reports meet the international Standards

Requirements of the privatization policy on capital markets are observed

Bralirwa, initial offer Listing of Bralirwa on Rwanda Capital market

Fiscal reports of Public Enterprises analyzed and compiled

Improvement in assessment and management of risk

Availability of fiscal risk reports

Simplified budget processes and procedures finalized and validated

Condensed and user-friendly manuals

The level in which Budget agencies apply the processes and procedures described in the manual

Formats for revenue and expenditure forecasts prepared and ready for use

Efficient cash flow management

The level in which arrears resulting from poor expenditure management reduced

Districts accounts Integrated into Single District Treasury Accounts

The execution of government funds effectively monitored and managed

Single District Treasury Account is a sub- count of the main STA

SmartFMS Rolled out to all budget agencies

Efficient management of public resources

-Reduced Fiduciary Risk -Minimized arrears

Amended law on public procurement in place

Improved competition, and transparency in public procurement

-Proportion of the value of procurement tendered competitively or justified -Number of bidders violated procurement law

Compliance audits carried out


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Goal Five: Improve the delivery of public services and accountability through effective financial and fiscal decentralization. Objective:

2.7 Strengthen fiscal decentralization.

Decentralization of fiscal responsibilities aims to increase efficiency in service delivery and reduce

information and transaction costs associated with the provision of public services. The overall

objective of the intergovernmental fiscal relations component is “to put in place a comprehensive

and transparent transfer and reporting mechanism, and to deepen the policy of fiscal

decentralization as a means of improving service delivery by the Sub-National governments”.

The government will start to implement the Fiscal Decentralization Strategy aligned to the

National Decentralization Policy with the aim of increasing service delivery at the District level. A

study on Districts' revenue potential will be undertaken and a strategy to improve revenue

collection in district will be developed on the basis of the study. Furthermore, work instructions

in the PEM will be developed to ensure better PFM at the District Level. Finally, a tax

management system will be developed, tested and distributed to the rural districts for improving

their tax collection and management.

Results table

5: Goals/ Strategic intent:

Improve the delivery of public services and accountability through effective financial and fiscal decentralization Output results Outcome results Indicator

Fiscal Decentralization

Strategy implemented

Improved service delivery at the

Sub-National governments level

% increase in the fiscal

transfers from Central

Government to the Districts

A study on Districts' revenue

conducted

Customized revenue mobilisation

strategies for each district

% increase in Districts' revenue

(as of GDP)

Work instructions in the PEM

updated

Public Expenditure aligned with

Government priorities and

national budget.

The level of transparency in

public finances management

Tax Management Systems

for districts implemented

Increased districts tax collection

and management

Decreased cost of collecting

tax


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Goal Six: Contribute to increase the productivity of the economy, employment opportunities, the investment climate, and the quality of public investments. Objective:

2.8 Ensure alignment and improve the quality of public investment

The Public investment policy has been prepared to address the main problems regarding public

investment in Rwanda mostly related to non-alignment to the medium and long term development

goals and the insufficient level of public investment.

The Ministry will ensure that national public investment strategies, programs, and the selection of

projects are aligned with short, medium and long term objectives of economic and social

development.

Further more, the Ministry will implement Project Management Office (PMO) in all Ministries. The

Project Management Office is an organizational entity that should ensure projects are completed

successfully. This office aims at reducing project cycle time, improving quality of project

deliverables, better containment and management of project scope, improving accuracy of

estimates, perceptions of clients and speeds up initiation and functioning of new projects.

PMO will act as one stop centre for all project-related status information.

Results table

6: Goals/ Strategic intent:

Contribute to increase the productivity of the economy, employment opportunities, the

investment climate, and the quality of public investments

Output results Outcome results Indicator

Policies affecting public

investment identified

The recommendation report on

MACRO policies affecting public

investment implemented

The contribution of Public

investment to GDP PIP strategic overview 2011/12-

2013/14 Elaborated

Key investment programs, export

oriented projects are inline with

EDPRS

Single project units established

in public institutions

Efficient projects performance Number of projects

completed successful


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Goal Seven: Contribute to increase living standards of the population and human Development within a sustainable environment Objectives:

2.9 Integrating Population Issues in National Development Programs

High population growth is a major challenge facing Rwanda. Integrating population issues in

national development programs ensure a balance between socio-economic development and

population dynamics and therefore facilitate the Government to make informed policy decisions

for sustainable development

Key initiatives for the three coming years are:

Mainstream population issues in District Development Plans (DDPs) and sector strategies;

Conduct joint Monitoring and evaluation in UNFPA’s zones of intervention;

Implement the strategy for national population policy

Conduct sensitization campaign on population issues for specific groups (youth, universities,

women associations and faith based organizations);

Disseminate the national population policy at all levels;

Update socio-demographic indicators and;

Monitor the population indicators with respect to EDPRS, MDGs and Vision 2020.

Results table 7: Goals/ Strategic intent: Contribute to increase living standards of the population and human Development within a sustainable environment Output results Outcome results Indicator Population issues fully integrated in DDPS and sector strategies

Improved tracking of population living standards

The number of district’s plans cover population issues

Population indicators with respect to EDPRS, MDGs and Vision 2020 monitored

Population interventions are evidenced based

Number of field reports submitted and districts covered

Joint Monitoring and evaluation in UNFPA’s zones of intervention conducted Socio-demographic indicators updated

Improved quality and status of data compilation and consistency

Annual report on population indicators available


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Goal Eight: Promote a dynamic, efficient and stable financial market accessible to all segments of the population.

Objectives:

2.10 Strengthening and deepening the Financial Sector

The objective of Financial Sector Development Plan is to strengthen and deepening the financial

sector in Rwanda from microfinance to long term capital markets.

In order to ensure effective monitoring of the financial sector, the Government has started the

process of activating the Financial Sector Working Group which brings together the Central Bank,

government institutions, Development Partners, Civil Society and the Private Sector. Moreover,

measures to reduce financial sector vulnerability through strengthening banking supervision and

deepening the financial sector by enhancing access to credit will continue to be implemented.

In order to ensure Financial Crisis preparedness, a financial stability committee will be established

with a mandate to develop a contingency plan that ensures a sustainable response to financial and

economic crisis.

Areas in the Financial Sector Development Plan that are yet to be fully implemented include:

Improving access to credit: The Government has created SME development fund consisting of

scaled up and consolidated Government special financial facilities. The funds will be managed by

BRD through a subsidiary called BRD SME Development Fund (BSDF) this year 2010.

Moreover, a Private Credit Reference Bureau has been set up to improve the quality of

information and the assessment of risk posed by banks credit customers. This bureau will start its

operations this year 2010.

Savings: Implementation of the National Savings Mobilization Strategy and the Umurenge SACCO’s

strategy (adopted by Cabinet in early 2009) has commenced.

These strategies will assist the Government to reach the gross national savings target of 10

percent of GDP by 2012.

Improving Pension Sector: Liberalization of the pension sector will be achieved by setting up a

legal framework for the private pension scheme and personal retirement saving accounts. The law

is expected to be officially published this year 2010.


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Regulation and Legal Framework for the Insurance Industry: NBR will work on legal and

structural issues to ensure a well regulated insurance sector.

Modernization of the National Payment System: The National Payment System (NPS) and

strategy will be implemented to continue to modernize the Rwandan Payment Systems. The aim

of this strategy is to have a clear vision and plans that will enable Rwanda to set up an efficient,

safe, fast and reliable payment system and advance high value funds transfer.

Results table 8: Goals/ Strategic intent: Promote a dynamic, efficient and stable financial market accessible to all segments of the population Output results Outcome results Indicator Strategy to make Rwanda a financial hub in place

World class financial services available in the country

Availability of Financial Services with international standards

SME development fund created Special financial facilities for SMEs consolidated and scaled up

Promptness in accessing SMEs funds

Electronic payment system strategy implemented

Electronic payment system operational

% decrease of cash payment operations

The Implementation of Umurenge SACCOs Strategy Monitored

More Rwandans are included in the financial sector

Number of people with accounts in Umurenge SACCOs

The Microfinance strategy implemented

Microfinance institutions are accessible and adopted to the market’s needs

The number of people accessing the microfinance

Law establishing Rwanda Social Security Board implemented

Rwanda Social Security Board operational

Insurance coverage as % of GDP

Social security reforms implemented Well regulated Social security sector

Availability of Social Security Laws and Regulations

Goal Nine: Contribute to foster deep regional integration through openness to change as well as mobility of goods, services, labour and capital. Objective:

2.11 Implementation of the Regional Integration activities related to fiscal and monetary policies.

Rwanda’s Strategic Position within EAC, COMESA and CEPGL will be developed and regular

economic impact studies of accessions will be carried out to enable the country reap benefits and

opportunities that impact on long term economic development.

Key priorities include:

Follow up and participation in the establishment of East African Monetary Union (EAMU).

Proposal on the amendments to the East African Customs Management Act.

All key Rwandan institutions will be engaged in sensitizing people on the EAC common market

protocol.


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Results table 9: Goals/ Strategic intent: Contribute to foster deep regional integration through openness to change as well as mobility of goods, services, labour and capital. Output results Outcome results Indicator Gaps in implementing EAC strategic interventions/ priorities identified and a clear coordination framework in place.

Rwanda’s Strategic Position within EAC and CEPGL adopted.

Availability of legal and regulatory framework for Rwanda regarding EAC integration

Gaps in East African Customs Management Act identified

Proposed amendments adopted and EACCU Management Act fully implemented

Validated reports on gaps in EAC Customs Management Act.

Macroeconomic convergence criteria framework updated.

East African Monetary Union (EAMU) established.

Single currency in EAC region

Goal Ten: Build MINECOFIN into a strong, efficient and responsive institution Objective:

2.12 Strengthen institutional and individual capacity building strategies.

Achievement of MINECOFIN’s goals requires strengthening of both individual and institutional

capacities. In order to build the capacity the Ministry will implement the following initiatives:

Develop Institutional information policy;

Develop Staff Performance Monitoring framework;

Prepare on-job training Management program;

Develop and implement staff replacement/ succession program and;

Update HR policies and procedures. Conduct a result and impact analysis of previous Strategic Development Plan implementation

Other initiatives include:

Analyzing existing policies, processes and procedures and propose change or develop new ones

whenever necessary;


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Enhancing the ICT security by developing and implementing the integrated security system,

security policy and procedures, disaster recovery strategies and plans to facilitate the ongoing

process of developing the Financial Management System and;

Ensuring effective filing management system (e-filing) and automation of the reporting

system.

Results table

10: Goals/ Strategic intent: Build MINECOFIN into a strong, efficient and responsive institution Output results Outcome results Indicator Information policy in place

Information policy adopted by senior managers and operationalised

The swiftness in information access in the Ministry.

Strategic and Action Plans produced

MINECOFIN’s decisions and plans are evidence based

Number of management decisions/ plans informed by research and reports

Updated M& E document in place SWOT analysis report validated 2010– 2011 MINECOFIN Financial statements produced Reports on the implementation of action plan produced MINECOFIN 2011 -2012 budget prepared

MINECOFIN 2011 -2012 budget adopted by the parliament and implemented

Availability of Budget execution reports

ERDM System developed and integrating with other Applications

Electronic Records and Documents Management operational

MINECOFIN’s Business processes are automated

Data and Voice Wireless Network Equipments in place

Data and Voice Wireless Network Equipments operational

The flexibility and availability of network

Staff replacement succession program in place

Six month Internship program The number of interns retained and integrated by the ministry due to their performance

Human Resource Capacity building plan implemented

Staff are creative and meet deadlines

Number of Staff with minimum performance appraisal of 70%

HR policies and procedures updated

Regulated institutional practices and behaviour

-Availability of HR policies and procedures; -Performance level staff; -Number of indiscipline cases


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3 INCOME ESTIMATES AND SOURCES OF FUND

Below are Income estimates and sources of fund planned to support the Ministry’s

strategic plan:

Project Source 2010-2011 2011-2012 2012-2013

Gender responsive

budgeting program UNIFEM US$ 709,800 $ 603,150

PFM/MDTF

WORLD BANK

1,614,946,400 FRW

Population Desk UNFPA 3,195,931 $

Public Sector

Capacity Building

Project

World Bank 3,420,000,000 FRW 228,000,000 FRW

(400,000 USD)

Basket Fund to

support the NISR Basket Fund

5,534,219,282 FRW 6,545,000,000 FRW

20,000,000,000 FRW

Project study fund National Budget

673 ,000 ,000 FRW

Export Promotion National Budget

1, 000 000 ,000 FRW

Microfinance Capacity Building

National Budget

500, 000 ,000 FRW

Strategic Investment Fund

National Budget

4, 303, 038, 833 FRW

Trademark East Africa Project

DFID

1, 162 ,150, 000 FRW

ICF Project MDTF 1,147,951,400 FRW

Construction And Rehabilitation Of Border Posts

National Budget

300, 000 ,000 FRW

Rwanda Institutional Support to PFM (RISSP)

EU 2,000, 000 ,000 FRW (2,500,000€)

720, 000 ,000 FRW (900,000€)


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Note:

MINECOFIN activities that are not reflected on the table above will be supported by

the institutional Budget. The resources envelope allocated to MINECOFIN for July 2010

June 2011 equals 137 349 987 429 frw. Resources domestically financed equals to

8, 373 000, 000frw and resources externally financed equals 17, 269, 049,764frw

4 MONITORING AND EVALUATION FRAMEWORK

4.1 Definition of the M&E framework

The M&E framework is an instrument that will be used by MINECOFIN to monitor the

Ministry’s progress towards achieving its objectives. Staff performance contracts will

be aligned with Key Performance indicators approved in the M&E framework as an

effective way to ensure results.

4.2 The purpose of the monitoring system of MINECOFIN’s action plan

The monitoring system has three objectives: firstly, it serves as a planning tool to

improve MINECOFIN’s performance; secondly, it serves to identify poor outcomes

sufficiently early to allow corrective measures to be taken and finally, the monitoring

system enhances accountability at three levels: political accountability of the Ministry

to the government, mutual accountability between Ministry’s authorities and staff and

mutual accountability of the Ministry and the development partners.

A comprehensive M&E framework for the Ministry (2010-2013) is to be updated and the

implementation will commence in July 2010

END

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