implementation of a blockchain-based platform to strengthen payroll management

implementation of a blockchain-based platform to strengthen payroll management
implementation of a blockchain-based platform to strengthen payroll management

Guinea-Bissau: commissioning of a blockchain-based platform to strengthen payroll management

May 29, 2024

Bissau. A capacity-building mission, led by Concha Verdugo-Yepes, senior economist and project manager in the IMF’s Africa department, is currently in Bissau from May 27 to 31. This Wednesday, May 29, she is participating in the official launch of the “blockchain-based solution which aims to strengthen the transparency of payroll management at the Ministries of Finance and Public Administration.”

At the end of the launching ceremony, organized in collaboration with the Court of Auditors and chaired by the Prime Minister, Mr. Rui Duarte de Barros, and by the Minister of Finance, Mr. Ilídio Vieira Té, Ms. Verdugo-Yepes highlighted that it was a remarkable achievement for a fragile state:

“Guinea-Bissau is one of the first countries in sub-Saharan Africa to use digital blockchain technology to improve public administration payroll management, promote budgetary transparency and combat payroll vulnerabilities. of governance. This innovation can help strengthen public confidence in fiscal institutions, increase stakeholder accountability, and reduce any perception of corruption in administration.

“Blockchain technology detects anomalies and triggers alerts when salary information is inconsistent. It helps reduce auditing and reconciliation work, and provides reliable, high-quality data to AI models in a timely manner.

“This solution could help address issues of critical macroeconomic importance and ensure the success of the IMF-supported program. When we started the project in 2020, payroll represented 84% of tax revenue, the highest ratio in the region. This means that for every $100 in taxes collected, $84 was spent on wages. Few resources remained for health, education, infrastructure or debt repayment. This ratio is now 53%, but it remains high compared to the region’s convergence rate of 35%.

“We thank the authorities for their collaboration throughout this process, notably in the design of a blockchain-based platform adapted to Guinea-Bissau, alongside our technology partner Ernst and Young, and for their participation training that facilitates the adoption of this technology. We are also grateful for the support that other major development partners have provided, such as UNDP, the African Development Bank, the governments of France and Japan, and the donor partners of the IMF Regional Technical Assistance Center for West Africa (West AFRITAC): Belgium, China, France, Germany, Luxembourg, Netherlands, Norway, Switzerland, European Union and European Investment Bank.

“The ball is now in the court of the Guinea-Bissau authorities. However, the IMF remains ready to provide support to successfully deploy this solution in other ministries in the coming months, in collaboration with West AFRITAC. »

Context: the solution presented is a digital platform that guarantees the availability of a reliable set of payroll data. It has features to protect data integrity, check in real time whether civil servants meet the required conditions, monitor the execution of the payroll budget, control approved payments of civil servants’ salaries and pensions and their disbursements by commercial banks. This solution also detects anomalies in the data and produces reports in near real time to guide decision-makers.

IMF Communications Department

PRESS OFFICER: Nicolas Mombrial

PHONE:+1 202 623-7100EMAIL: [email protected]



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