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Ratification of Collaborative Africa Budget Reform Initiative (CABRI )

Ratification of Collaborative Africa Budget Reform Initiative (CABRI ). Presentation to Portfolio Committee on Finance Tuesday 13 November 2007 Lesley Fisher. Content. Background and purpose Objectives of legal status & GA recommendation Options Current membership Ratification process

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Ratification of Collaborative Africa Budget Reform Initiative (CABRI )

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  1. Ratification of Collaborative Africa Budget Reform Initiative (CABRI) Presentation to Portfolio Committee on Finance Tuesday 13 November 2007 Lesley Fisher

  2. Content • Background and purpose • Objectives of legal status & GA recommendation • Options • Current membership • Ratification process • South Africa • Founding members • Hosting agreement • Achievements to date

  3. Establishment and objectives • Professional network of senior government officials in ministries of finance and planning from across Africa. • South African National Treasury played a leading role in establishment together with Mozambique and Uganda in 2004. • Key objective of CABRI is the promotion of efficient and effective management of public finances to foster economic growth and enhance service delivery for the improvement of living standards of people living in Africa.

  4. CABRI aims to: • support senior budget officials in the management of public finance systems and develop approaches, procedures and practices for improving these; • advance the development of Member States by building capacity and promoting training and research in the field of public finance management, in particular from a practitioner’s perspective; and • develop and promote common African positions on budgetary issues of interest to Africa.

  5. Objectives of Legal Status • Draft memorandum of understanding forms the basis of existing structure of the informal network • Enable financial and legal independence from any national government and other regional bodies • Support funding arrangements - membership fees, donor funding etc. • Enable formal engagement with regional and international bodies

  6. Legal Study • Considered a number of existing organisations e.g. AU, NEPAD, AFRU • Identified two options: • By an international legal agreement between member countries • By resolution of another established pan-African body

  7. Pros and Cons

  8. General Assembly Recommendation December 2006 • To fast track process, International Agreement can be negotiated by 6 countries • Thereafter, new members join through accession process • Application for accession is presented at General Assembly meetings • Countries have two years in which to present their application for accession

  9. International Agreement • Provide a founding instrument for CABRI, which can accommodate the various needs regarding institutions, powers, membership, finances, procedures The final product of negotiations is a signed text but this is not yet a binding treaty June 2007 Secretariat prepared draft agreement based on MoU. Agreement circulated to all countries Once all 6 countries have ratified the agreement, the agreement will come force Negotiators mandated to negotiate on behalf of State (May & June) Each country is required to ratify the agreement. This process varies from country to country

  10. Countries participating in CABRI

  11. Legal Status Table 1: Status of the signatory countries of the International Agreement

  12. South African process • Signed by Minister of Finance 7 August 2007 • Cabinet approval 24 October 2007 • Dialogue and negotiations Mauritius • Training workshop & study tour SANT • Financial contribution to be determined at next GAM • Between R1m – R1.5m per annum • Effective 2009/10 • Legal status – April to June 2008 • South African government to host CABRI and act as interim secretariat

  13. Hosting agreement • South Africa will host CABRI • Agreement concluded as soon as reasonable after legally established • Standard agreement concluded in consultation with DFA, SARS, DHA • Priviledges, immunities, immigration, tax exemptions • Disputes, amendments, inviolability of office • To be finalised between Secretariat and Government of South Africa

  14. Achievements in 2007 • Membership increased from 17 countries to 28 in year and fostered a more committed and active membership base • Increased the relevance of activities • Dialogue and negotiations – Mauritius • Training workshop and study tour SANT • Received a positive feedback from members on activities • Established an institutional reputation • Launched CABRI as a legal entity • Received acknowledgment of CABRI’s publications as resources for PFM • Strengthened relationship with development partners and partnering institutions.

  15. THANK YOU

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