Lesotho - Institutional Support for the Enhancement of Public Financial Management Project

Project Summary

Approval Date 14 Oct 2013
Signature Date 15 May 2014
Planned Completion Date 31 Dec 2021
Last Disbursement Planned Date 31 Dec 2021
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 11330
Environmental Category 3
Commitment U.A 2,600,000
Status Completion

Project General Description

The proposed project aims to support the Government of Lesotho with the implementation of its PFM Reform Action Plan (PFMRAP), focussing on improving Public Financial Management (PFM) systems. The project will intensify and sustain PFM reform efforts in the country. The Bank Group’s intervention falls within the broader context of supporting Lesotho’s inclusive growth agenda and fiscal consolidation efforts. The project has three components: (i) Improving spending efficiency and transparency of procurement; (ii) Enhancing accountability in use of public funds; and (iii) Ensuring sound project management, including monitoring and evaluation. It introduces a low cost intervention for strengthening the demand side for accountability and integrity in public procurement and spending by creating awareness and enabling Non-state Actors (NSAs)’ access to information and knowledge. By supporting a comprehensive reform program, establishing a common implementation Secretariat, and harmonizing reporting, joint supervision missions and common monitoring and evaluation mechanisms, the project ensures that the Bank is adhering to the principles and tenets of the Paris Declaration on Aid Harmonization. The project will be implemented over the period December 2013- December 2016 with a total cost estimated at UA 2.89 million.

Project Objectives

The overarching goal is to establish efficient, effective and accountable systems that ensure public resources are allocated towards achieving the National Strategic Development Plan (NSDP) goals of inclusive and sustained growth. This will be achieved through strengthening capacities in key public institutions engaged in public financial management. The project will target two main outcomes: i) Efficient and transparent public procurement systems; ii) Enhanced accountability in the use of public funds. The various activities will contribute to ensuring greater value for money in procurements and establishing a system of checks and balances to ensure that the public resources are spent effectively and efficiently in line with strategic priorities of the NSDP.


The direct beneficiaries of this project will be the Ministry of Finance, The Office of the Auditor General (OAG) (80 women; 34 men), the Public Account Committee (PAC) (25 members (5 women and 20 men), 1 clerk) and the Directorate of Corruption and Economic Offences (DCEO) (staff (3 men, 2 women)) of the Prevention and Education Department. Within the Ministry of Finance the beneficiaries will include the Procurement Policy and Advisory Division (PPAD) (7 men, 2 women), the Internal Audit Department (IAD) (35 women; 12 men) and the PFM Reform Secretariat (6 staff). The project will also benefit Government officials from across the 23 ministries, in particular internal auditors and procurement officers (approx. 54 women; 46 men) that will benefit from the various trainings and outreach activities. The work with the PPAD and the DCEO will also directly target and benefit the general public and private sector actors, particularly small and micro businesses through sensitization and outreach activities at the district level (aim to reach min. 300 SMEs, of which 50% women led). Indirect beneficiaries will include the broader population of Lesotho through improved procurement and scrutiny of public expenditure, which should help to ensure that public resources are allocated and used in the efficient and effective delivery of public services.

Participating Organization

Ministry of Finance
African Development Fund


IATI identifier 46002-P-LS-K00-003
Last Update 24 Mar 2023


Contact Details

Email k.gebre-selassie@afdb.org

Geographic Location

Country Lesotho
Coordinates Location Name
-29.5833 27.8333 Maseru