By: Gloria Anderson Eric Crentsil
Calls for Africa to accelerate its shift toward digital public finance systems intensified on the final day of the 3rd African Association of Accountants General Conference, where speakers emphasized that the continent’s next frontier of fiscal governance will be built on technology-driven accounting and reporting.
Joining participants virtually from Washington, D.C.,Mr. Srinivas Gurazada, Head of the PEFA Secretariat, delivered a detailed presentation on “Digitization and Digitalization: The Foundation of Accrual Accounting and Future-Ready PFM in Africa.”
He stressed that African governments can no longer achieve transparency and effective financial management without a strong digital backbone supporting the entire public finance cycle.
Mr. Gurazada began by situating digitization within the broader PFM landscape, offering participants a refresher on the Public Expenditure and Financial Accountability (PEFA) framework and its evidence-based assessment of public finance systems across countries. He noted that since the early 2000s, global research, including extensive PEFA assessments, has shown that shifting from cash-based to accrual accounting significantly improves fiscal management, especially in areas such as debt and asset management, pension liabilities, budgeting, and transparency.
He referenced case studies from countries like Rwanda and Vietnam, where the transition to accrual systems provided governments with deeper insights into their financial positions and enhanced compliance in budgeting and asset reporting. These, he said, demonstrate that the long-term benefits far outweigh the cost of reforms.
Turning to Africa, Mr. Gurazada explained that digitalization is now the central pillar required to make accrual accounting effective. While many countries already have Integrated Financial Management Information Systems (IFMIS) capable of supporting accrual reporting, he cautioned that fragmented systems, limited interoperability, and inconsistent data structures continue to slow progress.
“The key is integration,” he said. “Budget preparation, financial reporting, procurement, and statistical systems must speak to each other. Without harmonised charts of accounts and fully connected platforms, consolidation will remain a challenge.”
He stressed that governments must build ecosystems where data can flow seamlessly across agencies, enabling whole-of-government financial statements. Achieving this, he noted, requires both technological restructuring and institutional commitment.
On the role of emerging technologies, Mr. Gurazada acknowledged the growing influence of artificial intelligence in data analysis and policy support. However, he cautioned against overreliance, warning that AI cannot replace human judgment in fiscal decisions. Instead, he said, AI should be viewed as a tool for improving accuracy, speed, and the quality of information available for decision-makers.
He added that as digital tools evolve, Africa’s public finance professionals must be equipped with the skills to manage digital platforms, interpret data, and ensure accountability. “Technology will enhance PFM,” he noted, “but the human element of sound judgment, transparency, and ethical responsibility remains irreplaceable.”
Mr. Gurazada concluded by emphasizing that digital readiness is no longer optional for African countries seeking stronger fiscal governance.
He encouraged governments to invest in integrated systems, build capacity among professionals, and align reforms with global best practices in accrual accounting.
He expressed appreciation for the opportunity to engage participants virtually and extended an invitation to African PFM experts to visit the PEFA Secretariat in Washington, D.C., for further collaboration.
The conference ended with a strong consensus: Africa’s fiscal future will depend on how quickly and effectively governments embrace digital reforms that strengthen financial reporting and build public trust.
