Zambia: Technical Assistance Report-Strengthening Cash Forecasting
Technical Assistance Reports, June 6, 2025
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- Zambia: Technical Assistance Report-Strengthening Cash Forecasting
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Bibliographic details
- Published: June 6, 2025
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798229013468.019
Overview
- Effective cash management is essential for enhancing fiscal discipline in Zambia, yet it faces significant challenges.
- With programmatic capacity development support from the IMF the authorities are making progress in improving institutional arrangements and strengthening capacity and technical tools for cashflow forecasting.
- The IMF’s cashflow forecasting assessment tool (CFAT) has been adopted to produce a comprehensive annual cash flow plan.
- Alongside strengthening forecasting practices and data reliability, consolidating government accounts will be critical for effective cash management.
Key findings
- Progress is being made on institutional arrangements and capacity development for cashflow forecasting through IMF programmatic support.
- Adoption of the IMF’s cashflow forecasting assessment tool (CFAT) enables production of a comprehensive annual cash flow plan.
- Strengthening forecasting practices and improving data reliability are necessary next steps.
- Consolidation of government accounts is identified as critical for effective cash management.
Technical tools and processes
- CFAT (cashflow forecasting assessment tool) adopted as the core technical tool to produce an annual comprehensive cash flow plan.
- Emphasis on strengthening forecasting practices and data reliability to improve the accuracy and usefulness of forecasts.
- Focus areas include cash flow forecasting processes, cash forecasting, cash management process, cash plan, and TSA payment account operations.
Institutional and accounting reforms
- Improvements in institutional arrangements are underway to support better cash management.
- Consolidation of government accounts, including progress on the Treasury Single Account (TSA), is highlighted as essential for effective cash management.
- Relevant institutional domains: Fiscal accounting and reporting, Government cash forecasting, Government cash management, Public financial management (PFM), Revenue administration, IMF’s Fiscal Affairs Department engagement.
Policy recommendations and priorities
- Continue programmatic capacity development support to strengthen institutional arrangements for cash management.
- Maintain implementation and refinement of CFAT-based cash flow planning to produce comprehensive annual cash flow plans.
- Improve data reliability and forecasting practices across relevant agencies.
- Consolidate government accounts (including TSA structures) to centralize cash balances and improve cash visibility and control.
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