Objectives of the Department:
Monitoring the Macroeconomic environment and ensuring its Stability overtime.
Functions of the Department:
Managing and direct the design, coordination and monitoring of the implementation of sound economic and financial policies for MINECOFIN Rwanda.
· Guiding the creation of evidence based policy making by developing strong research capacities in the directorate.
· Coordination and supervision of all the technical activities of the economic development sector;
· Ensuring the implementation of policies, strategies and programmes in the areas of economic development;
· Instructing the creation and maintenance of synergy between the macroeconomic planning, external finance and budgeting processes in government;.
· Ensuring harmony of strategic plans across government so as to facilitate setting of government priorities;
· Ensuring coordination with key external agencies such as BNR, NISR.
· Maintaining a strong linkage between all the economic sectors (fiscal, monetary, real and external) sectors;
· Building and maintaining a strong budgeting process that links budget to Macroeconomic Policy
Macroeconomic Policy Unit
Main role: to formulate and monitor country's economic policies and programs having a bearing on domestic and international aspects of economic management.
Main functions include:
· Formulation and monitoring of macroeconomic policies, including issues relating to fiscal policy and public finance, inflation, public debt management, monitoring foreign exchange resources including balance of payments etc.
· Tracking Rwanda economic developments and providing policy advice on macroeconomic and microeconomic issues through policy analysis and the production of macroeconomic forecasts, in particular on growth. The forecasts inform economic policy, the fiscal framework, tax forecasts and debt management strategy.
· Facilitating the economic surveillance of Rwanda carried out by the International Monetary Fund.
∙ Advise the Ministry on the economic prospects and the economic implications of policies and programs;
∙ Promoting regional growth and development.
Outputs of the Unit:
∙ Macroeconomic framework (GDP projections, fiscal, monetary and external sector forecast)
∙ Negotiation with IMF under the Policy Support Instrument (PSI) as a program designed to promote a close policy dialogue between the IMF and the Country (MEFP).
∙ Debt Sustainability Analysis
∙ The economic chapter of the budget and the updates;
∙ Different analysis and research on the economic situation and outlook (Annual economic report, Economic performance briefs, economic analysis etc.)
∙ Tax policy reforms (initiate tax policies and law to achieve economic policy objectives and raise domestic revenues to finance government budget, handle negotiations of Double Taxation Agreements etc.)
Created in 2005, the External Finance Unit is the key Government entry point of external financing. The External Finance Unit provides development partners with a centralised interface; and, it offers guidance and leadership on how Development Partners can better align their support to Government priorities.
The External Finance key responsibilities are:
. Mobilizing External Financing from traditional partners and non-traditional partners to complement domestic revenues in the National Budget. This financing includes;
1) Official Development Assistance (Grants & Concessional Loans)
2) Commercial loans to finance Government priorities (Sovereign Bonds)
. Mobilizing financing for the private sector from International financial institutions.
. Coordination of Development Partners through various forums.