The most significant outcome from adopting International Public Sector Accounting Standards) (IPSAS) is the tangible improvement in public financial management that transcends mere regulatory compliance. Data from the World Bank highlights that countries that implement IPSAS can achieve reductions of 15–25% in maintenance costs and up to 30% in infrastructure lifecycle costs, reflecting better asset management and depreciation accounting. ALSO READ: Rwanda’s shift to IPSAS: A milestone in public financial management Moreover, a study of 107 nations confirms that IPSAS adoption enhances governance by increasing transparency, accountability, and trust in public finances. These benefits are particularly pronounced in developing countries where governance challenges are more acute, yet the adoption of IPSAS helps standardise financial reporting and resource management, opening doors for more effective oversight and economic efficiency. A path to public trust and sustainable governance IPSAS plays a direct role in nurturing public trust and aiding sustainable governance by delivering standardised, credible financial data. This standardised reporting framework strengthens investor confidence, contributing to improved sovereign credit ratings and a higher influx of Foreign Direct Investment (FDI). Rwanda’s experience offers concrete evidence: the parliamentary Public Accounts Committee has utilized IPSAS to address undocumented expenditures and irregular procurement, flaws that previously hampered service delivery. By offering reliable, audit-ready financial information, IPSAS enables watchdog institutions to hold government entities accountable more effectively. The example of New Zealand further illustrates that consistent IPSAS implementation supports institutional trustworthiness and transparent governance, both of which are prerequisites for long-term sustainable governance. In Rwanda, IPSAS has evolved into a strategic governance tool that supports long-term planning and resource optimization. By enabling the recognition of over 13 trillion Rwandan francs in public assets and liabilities, IPSAS has provided government institutions with a clearer picture of their financial position. This visibility allows for more informed decisions on infrastructure investment, maintenance scheduling, and debt management, ensuring that public resources are deployed where they generate the greatest impact. Improving coordination and operational efficiency The standardisation introduced by IPSAS also improved coordination across ministries and agencies. Through systems like the Integrated Financial Management Information System (IFMIS), financial data is now harmonised, enabling real-time tracking of expenditures and commitments. This has reduced duplication, improved budget execution, and facilitated joint planning across sectors such as health, education, and infrastructure. IPSAS has thus become a backbone for operational efficiency in Rwanda’s public sector. Supporting environmental accountability and climate finance Rwanda’s commitment to environmental sustainability has been strengthened through IPSAS provisions related to biological and heritage assets. Institutions like Rwanda Forestry Authority now use IPSAS 27 and IPSAS 45 to report on reforestation and land rehabilitation efforts. This transparency has enabled the country to issue verified carbon credits and attract climate finance, demonstrating how IPSAS supports not only financial integrity but also ecological stewardship. Fostering citizen engagement and participatory governance The publication of IPSAS-compliant financial statements and simplified citizen budgets has made public finance more accessible to Rwandans. Citizens are now better informed about how their taxes are used, which encourages participation in budget consultations and strengthens trust in government institutions. This transparency reinforces the social contract and promotes a culture of accountability and civic responsibility. Building institutional capacity and regional leadership IPSAS adoption has also driven capacity building within Rwanda’s public finance workforce. Targeted training programmes have equipped accountants, auditors, and financial managers with the skills needed to implement and sustain IPSAS reforms. Furthermore, Rwanda’s success has positioned it as a regional leader, sharing its experience with other African nations through platforms like the Rwanda Cooperation Initiative, thereby promoting harmonised public sector reforms across the continent. IPSAS as a catalyst for public confidence They call it IPSAS, but we call it public trust in how governments manage public finances. They name IPSAS 45 as Property, Plant, and Equipment (PPE), we call it the proper way to trace public assets, ensuring no building or vehicle disappears without a trace hence true value in use is recognized over the life of an asset over and above traceability. They refer to IPSAS 23 as Revenue from Non-Exchange Transactions, we call it the assurance that taxes paid by citizens are used for their intended purpose. IPSAS is more than an accounting framework. It’s a governance tool, a trust-building mechanism, and a foundation for sustainable development. It ensures that every franc, or dollar entrusted to the government is traceable, reportable, and used to improve lives, from building hospitals and roads to delivering clean water and education. When citizens see this, they don’t just pay taxes, they do so with confidence, knowing their contributions are making a difference. Jean de la Croix Ndahunga is an Assurance Senior Associate at PwC Rwanda. Anthony Njeeh is an Assurance Associate Director at PwC Rwanda.
