Evaluating the usage of Integrated Financial Management Information Systems (IFMIS) in enhancing Public Financial Management in Zambia

Abstract

Through reforms to its public Financial Management (PFM) system Zambia has made strides to promote transparency, accountability, and efficiency in the use of public resources. An example of this is the Integrated Financial Management Information System (IFMIS) project, a digital platform set up to enhance financial transactions as well as transaction recording, reporting, and expenditure controls, in government ministries. IFMIS is a tool for strengthening fiscal discipline by minimizing financial malpractices, alleviating corruption, and ensuring timely budgetary implementation. Nevertheless, empirical evidence as to whether it is effective and usable is still mixed with no clear indication of its efficacy and usability, especially in Zambia. This study was thus propelled by the desire to critically examine the usability of IFMIS and the effects thereof on financial management in Zambian government ministries. IFMIS has been found to have enhanced accuracy in financial reporting and adherence to the budgetary processes, hence reducing unauthorized expenditures and delays in fund disbursement. The study also found some challenges that negatively affect its optimal functioning, such as regular system downtimes, a lack of technical support, and resistance to full adoption by end-users due to weak training and capacity-building efforts. Moreover, although IFMIS has led to improved fiscal transparency and accountability, challenges regarding real-time tracking of expenditure still face because of the infrastructural constraints and lack of harmonization of data entry across ministries. It is concluded from the study that IFMIS has proven to be transformative in the PFM landscape in Zambia, but its potential is still not fully realized. The report suggests the government make investments in system upgrades, ongoing capacity-building programs, and institutional frameworks that are more robust to respond to demand and weaknesses in implementation. Solving these problems is key to enabling IFMIS to become a useful tool for sustainable public finance reforms and to improve the efficiency of resources allocation within the government ministries.