Strategic Goal: Sustainable deficit financing and cash management

Objective 1: Develop, provide advice on and implement the Governments Debt Management Strategy

Strategies:  

• Formulate the Medium Term Debt Strategy (MTDS) to manage the cost and risk embedded in the Public Debt Portfolio and ensure that the MTDS is well integrated with the budget in the Medium Term Expenditure Framework.
• Prepare and Publish an Annual Borrowing Plan (ABP) to meet Governments financing requirement in  line with the budget
• Quarterly review and revision of the ABP to reflect budget updates, take account of changes in borrowing requirements, domestic and external market conditions and disbursement profiles
• Monitor implementation and review performance of the ABP against the original plan.
• Develop administrative regulations for borrowing and repayment authorization, negotiation and debt management operation.

Objective 2: To develop, provide advice on and implement the Governments Cash management requirements

• Develop and operationalize cash or liquidity management policies that define a Cash balance target or buffer
• Prepare regular and accurate cash plan for budget compliance and facilitate preparation of cash flow forecasts for MDALGs
• Measure and improve Cash Flow Performance
• Develop and implement a strategy for investment of short term cash surpluses.

Objective 3: Develop the Domestic Securities Market

Strategies:

• Prepare and publish a borrowing/issuance calendar for wholesale securities to ensure transparency and predictability 
• Meet regularly with market participants (at least annually) to exchange views on borrowing plans and the domestic market.
• Prepare internal procedures/manuals to reflect up-to-date operational practice, for example procedures for tap sales and private placements and others.
• Implement the second phase of the Primary Dealership System. 
• Introduce the use of Mobile Money as an alternative platform for investing in government securities (Project Okusevinga). 
• Widen the instrument base by introducing the first Infrastructure Bond

Objective 4: Improve Transparency of Public Debt Management Practices to Ensure Debt Sustainability

Strategies

• Develop a strategy to Improve the country’s credit rating from speculative grade  in 5 years
• Assess, manage and report on Contingent Liabilities and Guarantees
• Periodically publish a central government debt report on the Ministry website to ensure transparency of the debt portfolio and of outstanding loan guarantees.
• Operationalize the guarantee fee
• Develop guidelines for on lending
• Update and develop procedures for the use of derivatives, set up a risk monitoring and compliance section to monitor all risks related to derivatives
• Prepare and publish report  on general and non-financial public sector government
• Produce timely debt statistical bulletins and portfolio analyses

Objectives 5: To ensure effective Regional Economic and Financial Cooperation

Strategies:

• Harmonize regional policies, standards, regulations and resolutions in the development agenda.
• Ensure effective coordination and implementation of regional and international initiatives
• Finalise and implement the Development Cooperation Policy

Objective 6:  Ensure efficient and effective acquisition of financial resources

Strategies:

• Explore avenues for new financing modalities through implementation of the Public Investment Financing Strategy (PIFS)
• Ensure availability and high degree of involvement of legal advisors before signing any loan contract.
• Select advisors and banks to execute international  capital market transactions
• Establish a government negotiating team
• Finalise and implement the Expression of Interest guidelines

Objective 7: Resource, staff and manage the debt and Cash Management offices efficiently and cost effectively to ensure key responsibilities are achieved.

Strategies:

• Build capacity in financing and cash management processes for example financial analysis, cost analysis, negotiations, Asset and Liabilities management, Cash Flow Modeling and Forecasting, Derivative transactions and others
• Development a recruitment and retention strategy for key technical expertise