At the beginning of 2024, we emphasised that, “We are ever mindful of relevance into the future; with the world in crisis, much is at stake when reforming country systems, processes and capabilities.”
Two years later at the beginning of 2026, we emphasised in our quarterly newsletter that whereas before “we may have believed that we were in an unusual time of worldwide polycrisis - it is clear now that the intensifying quantum of change has not peaked and that it will continue. (…) The structural breaking currently being experienced goes beyond a single fiscal worldwide or country polycrisis, highlighting that we are in the midst of a process of polycrises.”
We were not mistaken. Despite the massive efforts undertaken in ministries of finance across Africa in the recent past to address the various unfolding crises, and gains that have been made, the conflict between the United States of America (US) and Iran has come - with immediate economic impact. Countries worldwide have suddenly been confronted with a substantial increase in fuel prices, and further price increases will continue throughout this fiscal year, and beyond the energy sphere. Shortages of fuel are also anticipated, which has led to some countries already introducing policies to restrict and ration fuel usage.
The ramifications of the US and Iran conflict goes far beyond, and it is clear that we have a multidimensional shock with extensive impact underway. Countries have seen areas of increased cost in fiscal spending, other than in energy. Supply chain disruption is impacting access to amongst others, fertilisers with a direct impact on food security and food prices. Compounding this, there is a general inflationary effect caused by the conflict that countries now have to manage. The result is that, not only is government expenditure increased on energy and food, expenditure increases are needed to ensure the social wellbeing of vulnerable groups facing inflation, whether that be through direct cash transfer or other policies to ensure that essential public services are provided.
By all metrics, this conflict will have a bigger impact than the war in Ukraine. Reductions in national fiscal revenue are anticipated as the conflict disrupts economic and other activities and negatively impacts investment and trade through changing logistics and underlying geo-political balances. Country debt-to-GDP targets and other national fiscal sustainability measures have been substantially and adversely affected in ways that could not have been foreseen. Emergency funding has to be accessed, and national debt servicing costs increase yet again. This reduces country fiscal policy space in addressing its own development needs, which is compounded by the increased capital flight risk faced in developing nations.
In the face of this, countries will have to respond with extreme agility and rapid reprioritisation. From the point of view of the cadre of country Public Finance officials in Finance ministries in Africa, this requires striving to be, well, “The Best of the Best!”. The CABRI Secretariat accompanied by Mr Benjamin MBERIO, Director of Financial Control at the Ministry of Finance and Budget, Central African Republic, as member of CABRI’s Management Committee, visited member countries Côte d'Ivoire and Benin in March.
While in Cotonou, we met with the Director General of Budget of Benin, Mr Rodrigue Chaou and his team who stated their ambition to make Benin, “The Best of the Best!” in public finance (PF). Their recent reform work spans the entire scope of PF management and for all spheres of government. To ensure agility and prioritisation for Benin’s development, they have systematically worked on ensuring political will, institutionalisation of policy changes and institutional support for professionalising civil servants’ work areas and in the provision of the authority to officials in the execution of these reforms. They cite and value CABRI as a catalyst and expert knowledge repository across the various reforms that they have undertaken. They view these reforms as separate but integrally related.
Within the previous quarter, CABRI continued to execute its work spanning various PF areas, which included: the launch of the newest iteration of the Africa Debt Monitor, the launch of the 2025 Budget Practices and Procedures Survey, the Building Public Finance Capabilties in Health framing workshop, the launch of the Network of Health and Finance Officials, Digital PF Management Reform Stories, Improving Agriculture Value Chains as well as Country Debt, Climate and Innovative Financing instruments.
Focused on agility and prioritisation in line with the emerging work areas of CABRI member countries, the Management Committee approved the PF work programme for the 2026/27 financial year. The workplan includes new areas of work which will provide PF Knowledge able to position countries to be “The Best of the Best”, in terms of the PF policies and institution building undertaken to develop a cadre of capable officials to deliver public services for their citizens.
All African countries that are not yet members of CABRI are eligible and are invited to contact us at info@cabri-sbo.org so that you may join formally. Other stakeholders within the broader Public Finance Management community are also welcome to join us and our current partners.