Public Financial Accountability: A pre-requisite to the management of Development Assistance in Mozambique beyond 2015

Abstract

In Sub-Saharan Africa, Mozambique remains as one of the poorest countries in the region receiving large volumes of Development Assistance (DA) from the international donor community yet the majority of its population still continue to suffer from poverty. This article places much emphasis on efficient and effective Public Financial Management (PFM) as a key ingredient for the achievement of both the national and international development goals in Mozambique. Through a literature based study, the article acknowledges progress that has been recorded in the Millennium Development Goals. However, the paper considers the strengthening of PFM systems through enhanced accountability and transparency as essential elements in face of the recent global development commitment to the Sustainable Development Goals. A reviewof challenges experienced in the era of MDGs in the country points to a need for greater transparency and accountability in the management of DA if the country is to achieve the SDGs. Thus, arguing on the basis of the Agency theory, the article proposes the adoption of a stringent governance mechanism for Public Financial Management measures to shape government and donor financial accountability frameworks with the view of creating an enabling environment aimed at ensuring the achievement of Agenda 2025 and the 2030 Sustainable Development Goal (SDG) targets.