South Africa - Municipal Financial Management Technical Assistance Project

This project proposes to fund technical assistance and capacity building activities in the core competencies required for the effective implementation of municipal Public Finance Management (PFM) legislation and procedures in South Africa. It is a response to the shortage of skilled labor and limited capacity, which is one of the biggest challenges facing local governments in the country. The operation will place special emphasis on skills development and knowledge transfer to ensure sustainability. The project has two mutually reinforcing components: (i) Analysis and Advisory Services: This component will support the National Treasury in undertaking four analytical work in areas where the Government prioritizes policy reform. (ii) Strengthening the financial management capacity of municipalities targeting the main actors involved in budget preparation, planning, reporting, supply chain management, risk management, cash management and investments, internal control and financial reporting.