In May 2024, Guinea-Bissau made a groundbreaking move by launching a blockchain platform as part of its Extended Credit Facility (ECF) program with the International Monetary Fund (IMF). This platform, developed in collaboration with Ernst & Young and supported by financial partners, aims to revolutionize public wage bill management. It represents one of the first blockchain-based initiatives in Africa to tackle governance challenges and improve fiscal transparency.

 Key Features of the Blockchain Platform:
The blockchain solution is designed to securely manage wage bill data for public service employees and pensioners. It provides near real-time monitoring of salaries, pensions eligibility, budget allocations, payment approvals, and disbursements. The platform enhances data integrity, reduces the burden of audits, and generates timely fiscal reports for policymakers. By using tamper-evident technology, it can identify discrepancies and prevent fraudulent payments.

Benefits for Guinea-Bissau:
The blockchain platform significantly strengthens fiscal management in Guinea-Bissau, aligning with the country’s goals of fiscal transparency and improved governance. As part of the IMF-supported program, the initiative has already reduced the wage bill’s share of tax revenues from 84% in 2020 to 50%, though further progress is needed to meet regional standards. The platform’s ability to detect inconsistencies and prevent fraud builds public trust in fiscal institutions and makes government operations more efficient.

Future Prospects:
Looking ahead, Guinea-Bissau plans to expand the platform’s reach to cover all 26,600 public employees and 8,100 pensioners by November 2024. This expansion will further improve accountability in public wage management and ensure compliance with the country’s regulatory framework. The ongoing support from the IMF and its partners underscores the country’s commitment to sustainable economic development and governance reform, marking this initiative as a significant step toward a more transparent future for Guinea-Bissau.

Advertisement

Source: imf.org

The post Guinea-Bissau is Using Blockchain to Boost Fiscal Transparency appeared first on HIPTHER Alerts.