## The IMF’s COVID-19 Crisis Capacity Development Initiative — Report on Activities, June 2021

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**Canonical URL:** [The IMF’s COVID-19 Crisis Capacity Development Initiative — Report on Activities, June 2021](https://www.imf.org/-/media/files/capacity-developement/cccdi/cccdi-progress-report-june-2021.pdf)

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### Overview and Objectives
- The Coordinating Committee meeting was scheduled for June 21, 2021; the report provides an update on the CCCDI work program and financing.
- New partners welcomed: China, Singapore, and Canada.
- CCCDI priorities linked to global themes:
  - Boosting inclusive growth.
  - Governance and accountability in the crisis response.
  - Incorporating climate indicators into macroeconomic frameworks to support a green recovery.
  - Strengthening debt management.
  - Leveraging digitalization and high frequency data.
- Implementation is expanding: regional CD centers integrated CCCDI support; first event on Supreme Audit Institutions organized; course on improving tax administration in Central America, Panama and Dominican Republic started.

### Regional Programs — Ongoing (Selected entries, FY2022 budgets and statuses)
- Africa (Eritrea, Ethiopia, Kenya, Malawi, Rwanda, Tanzania (including Zanzibar), and Uganda)
  - Delivery Modality: RCDC AFE
  - FY22 Budget: 2.5
  - Focus: Revenue Mobilization, PFM, Monetary Policy and Foreign Exchange, Financial Sector Supervision, Statistics and High Frequency Data for Nowcasting, Cybersecurity
  - Status: AFE developed a work program for FY22; plan expected to be endorsed at the Steering Committee meeting in July.
- Africa (Sub-Saharan Africa)
  - Delivery Modality: RTC ATI
  - FY22 Budget: 0.75
  - Focus: Capacity development on greening macro-frameworks, debt management, and improved forecasting
  - Status: Added to ATI's work program; supported by an LTX focused on resilience.
- Africa (Ghana, Cabo Verde, Nigeria, Sierra Leone, Liberia and The Gambia)
  - Delivery Modality: RCDC AFW
  - FY22 Budget: 20.54 and also an additional line 0.3 (trade facilitation) and 0.41 (climate into infrastructure and appraisal for Ghana)
  - Focus: Support countries to integrate gender related issues in budget processes; trade facilitation; incorporate climate into infrastructure appraisal.
  - Status: Customs administration LTX funded and being recruited; course on filing and payment obligations launched with 70 officials participating; further courses scheduled.
- Business Continuity and Disaster Recovery Assistance
  - Region: Africa (Angola, Botswana, Comoros, eSwatini, Lesotho, Madagascar, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Zambia, and Zimbabwe)
  - Delivery Modality: RCDC AFS
  - FY22 Budget: 0.12
  - Status: AFRITAC South delivered CD missions and a regional BCP seminar; CCCDI will fund follow-up activities in FY22 and FY23.
- Integrate debt management and cash management to exit from COVID19 crisis
  - Region: Africa (Benin, Burkina Faso, Côte d'Ivoire, Guinea, Guinea-Bissau, Mali, Mauritania, Niger, Senegal and Togo)
  - Delivery Modality: RCDC AFW
  - FY22 Budget: 0.04
  - Status: Resources will support missions to Mali, Guinee and possibly a regional seminar.
- Assessing credit risks at Banks affected by the crisis; Exiting from the crisis - financial supervision and regulation
  - Delivery Modality: RCDC AFW
  - FY22 Budgets: 0.02 and 0.02 respectively
  - Status: Banking Supervision Asset Quality Reviews planned for FY22 and FY23.
- Training for officials in 4 countries focused on improved macro-fiscal forecasting to address crisis
  - Countries: Nicaragua, Honduras, El Salvador, and the Dominican Republic
  - Delivery Modality: RCDC CAPTAC-DR
  - FY22 Budget: 0.50
  - Status: Four beneficiary countries identified; assistance to one country commenced in June with a scoping mission.
- Improve tax administration and compliance to boost domestic revenues and promote more inclusive growth
  - Region: Central America, Panama, Dominican Republic
  - Delivery Modality: RCDC CAPTAC-DR
  - FY22 Budget: 0.08
  - Status: Project started with a course; seventy officials participating; two more courses scheduled.
- Boost domestic revenues impacted by COVID
  - Region: Afghanistan, Algeria, Djibouti, Egypt, Iraq, Jordan, Lebanon, Libya, Morocco, Sudan, Syria, Tunisia, West Bank & Gaza, Yemen.
  - Delivery Modality: RCDC METAC
  - FY22 Budget: 0.31
  - Status: Customs administration LTX recruitment ongoing; METAC and FAD coordinating LTX tasks with revenue administration LTX.
- Cyber-regulatory frameworks to strengthen financial and payment systems
  - Countries: Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka
  - Delivery Modality: RCDC - SARTTAC
  - FY22 Budget: 0.05
  - Status: Cybersecurity Training part of SARTTAC's FY2022 work plan.

### Country Programs — Selected entries (FY22 budgets and statuses)
- Morocco: Forecasting Policy and Analysis
  - Delivery Modality: Standalone project
  - FY22 Budget: 0.33
  - Status: Review of Bank Al-Maghrib’s decision-making structure and Quarterly Projection Model launched to incorporate recommended adjustments.
- Jordan: PFM, Cash Management, addressing Liquidity Pressures
  - Delivery Modality: Standalone project
  - FY22 Budget: 0.10
- Tajikistan: Strengthen tax administration and tax collection
  - Delivery Modality: Standalone project
  - FY22 Budget: 0.06
- Yemen: Strengthen core tax functions impacted by crisis
  - Delivery Modality: Standalone project
  - FY22 Budget: 0.02

### Thematic Programs (FY22 budgets, focus and statuses)
- Supreme Audit Institutions (Global - select RCF/RFI recipient countries)
  - Delivery Modality: Standalone project
  - FY22 Budget: 1.23
  - Focus: Build capacity of supreme audit institutions to make reports on emergency spending more transparent and accountable.
  - Status: First event held April 2021 with audit agencies from Kenya, Sierra Leone, and South Africa; mission to Mozambique in early July to initiate country-level TA.
- Tax Policy (Global LICs, MICs, EMEs)
  - Delivery Modality: Standalone project
  - FY22 Budget: 1.1
  - Focus: Better manage domestic revenue mobilization given COVID; tax policy changes to ensure equity and fairness.
  - Status: Eleven countries identified for assistance; modalities under discussion.
- Expenditure Policy (Global LICs, MICs)
  - Delivery Modality: Standalone project
  - FY22 Budget: 0.55
  - Focus: Capacity Development for Ministries of Finance evaluating public spending allocations, adequacy, efficiency and sustainability of funds, with a focus on SDGs.
  - Status: Two possible country pilots identified (Sierra Leone and Jordan); modalities under discussion.
- Total FY22 Budget (for listed ongoing programs in Table 1): 9.05
  - Note: Workplan covers only projects financed by CCCDI subaccount.

### New Programs — Selected entries (Table 2, FY22 budgets)
- AFC Customs Administration Advisor for hands-on advice to modernize customs
  - FY22 Budget Envelope: 0.2
- FAD AFC tax and customs digitization, exemption monitoring, risk-based audit, compliance improvement plans.
  - FY22 Budget Envelope: 0.7
- AFE Tax Administration Advisor to provide in-country support to Ethiopia, Kenya, Rwanda, and Uganda on their Medium-term revenue strategies (MTRS)
  - Delivery Modality: RCDC AFE
  - FY22 Budget Envelope: 0.2
- AFW AND FAD Tax Admin Digitization: Support the digitization of procedures and computerization of tax administration core functions.
  - FY22 Budget Envelope: 0.1
- Macro-fiscal advisor at SARTTAC to support building strong macro-fiscal planning and forecasting functions
  - Countries: Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka
  - Delivery Modality: RCDC SARTTAC
  - FY22 Budget Envelope: 0.2
- Country standalone examples:
  - Albania: Updating the Medium-term Revenue Strategy and strengthening customs administration — FY22 Budget Envelope: 0.2
  - Brazil (Sao Paulo State): Strengthening Public Sector Costing System — FY22 Budget Envelope: 0.1
  - Lebanon: Business Continuity Plan for the Lebanon Tax Authority and compliance risk management strengthening — FY22 Budget Envelope: 0.2
  - Jordan: Support to the formulation of a Medium-term Revenue Strategy (MTRS) — FY22 Budget Envelope: 0.8
  - Pakistan: Follow-up to TADAT assessment reform recommendations — FY22 Budget Envelope: 0.4
- Thematic FY22 Budget Envelope highlights:
  - Incorporating COVID-related fiscal risks in the Fiscal Risk Assessment Tool (FRAT) — FY22 Budget Envelope: 0.1
  - Supporting policymaking on climate change issues and income inequality for low-income countries and low-end emerging market economies — FY22 Budget Envelope: 1.2
- Total FY22 Budget (for listed new programs in Table 2): 5.5
  - Note: Workplan covers only projects financed by CCCDI subaccount.

### Financing, Contributions, and Liquidity
- Financial support from partners currently totals about $36 million; includes a new contribution from China of US$ 5 million.
- Table 3 — Contributions (as of report dates)
  - China
    - Agreement Signed Date: 6/9/2021*
    - Agreement Amount: USD 5.0
    - Amount Received: 5.0
    - Contributions disbursed into the CCCDI Subaccount: -
  - Germany
    - Agreement Signed Date: 1/5/2021
    - Agreement Amount: EUR 6.0
    - Amount Received (USD conversion shown): 7.3
    - Contributions disbursed into the CCCDI Subaccount: 3.6
    - Future Contributions disbursed into the CCCDI Subaccount: 3.7
  - Korea
    - Agreement Signed Date: 2/17/2021
    - Agreement Amount: USD 4.0
    - Amount Received: 4.0
    - Contributions disbursed into the CCCDI Subaccount: 4.0
  - Spain
    - Agreement Signed Date: 12/22/2020
    - Agreement Amount: USD 2.0
    - Amount Received: 2.0
    - Contributions disbursed into the CCCDI Subaccount: 2.0
  - Japan (through Japan subaccount)
    - Agreement Signed Date: 11/26/2020
    - Agreement Amount: USD 10.0
    - Amount Received: 10.0
    - Contributions disbursed through other subaccounts: 10.0
  - Switzerland (through CCAMTAC and Swiss subaccounts)
    - Agreement Amount: CHF 2.0 (Exact amount to be confirmed)
    - Amount Received (USD conversion shown): 2.1
- Summary totals (Table 3):
  - Contributions disbursed into the CCCDI Subaccount: 18.3
  - Contributions disbursed through other subaccounts: 12.1
  - Total (sum reported in table): 30.4
  - Contributions received (USD conversions shown): 19.6
  - Note: * China agreement was signed after report as of date.
- Cash Flow Statement (Table 4) — As of May 31, 2021 (in millions of U.S. dollars)
  - FY 2021 Contributions (inflows): 9.6
  - FY 2022 Contributions (projections): 8.6
  - Total Contributions: 18.3
  - Interest Earned: 0.0
  - Total Cash Available (inflows): 9.6 (FY2021), 8.6 (FY2022), 18.3 (Total)
  - Estimated workplan (outflows): - (FY2021), 14.6 (FY2022), 14.6 (Total)
  - Cash Balance: 9.6 (FY2021), 3.7 (FY2022), 3.7 (Total)
  - Notes:
    - Table excludes COVID-19-related contributions disbursed through other subaccounts.
    - Contributions are net of transfers and return of funds.
    - Workplan includes programs approved for financing by the CCCDI subaccount.

### Implementation Status and Next Steps
- Implementation under the CCCDI is picking up, with scope extended to additional needs and regions.
- Specific implementation notes:
  - Recruitment of LTX experts for customs and resilience-focused roles is underway.
  - Virtual and in-person modalities planned depending on travel feasibility.
  - Regional workshops, follow-up national activity plans, and support groups established in several regions.
- Ongoing outreach to additional partners to expand financing and activities.

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_Source: https://www.imf.org/-/media/files/capacity-developement/cccdi/cccdi-progress-report-june-2021.pdf_