Afghan municipalities have been struggling to maintain and build revenue sources. Lacking computerization, they have had to process municipal transactions and execute municipal processes manually. Compounding the struggle to manage municipal finances effectively, the Deputy Ministry of Municipalities (DMM) has had no system in place to enable them to track and lead the improvement of municipal financial performance.
USAID’s Strong Hubs for Afghan Hope and Resilience (SHAHAR) addressed exactly this issue by implementing the Integrated Financial Management System (IFMS) in 14 provincial partner municipalities, and is in the process of implementing it in three more. SHAHAR also worked closely with DMM to establish the IFMS National Hub, a central IFMS system connecting all municipalities, and providing a vehicle for DMM to monitor municipal financial performance and generate detailed executive reports.