Assessing the implementation process of Treasury Single Account Operations and Payment Systems in Tanzania

Abstract

Anchored on stakeholder, management and modern money theories, study on which this dissertation is based assessed the implementation of Treasury Single Account (TSA) in Tanzania. The TSA infrastructure is usually implemented as part of the Financial Management Information System (FMIS) solutions. Therefore, this study assessed the implementation process of Treasury Single Account Operations and Payment Systems in Tanzania. Specifically, the study intended to; assess the legal and regulatory frameworks of the TSA operations; investigate the TSA processes and interbank systems; and examine the oversight mechanism of the TSA. Furthermore, the study employed a quantitative approach, whereby data were collected through a toolkit questionnaire with 44 questions from 60 sample size of respondents. Analysis was done descriptively, in which only frequencies and percentages were considered. In addition, graphs and tables were used to illustrate findings. The findings show the 68.2% of the overall performance in legal regulatory framework; this indicates the average performance as rating in this research. In the process and interbank systems, results show 75% of the overall performance based on the rating implies the effectiveness in this category is good. Lastly, the oversight mechanisms in results indicates 72% of the overall performance, this is categorized as good. Inferential analysis shows that all three predictors i.e. legal regulatory framework, process and interbank systems, and oversight mechanisms were statistically significant (P ≤ 0.05) to effective implementation of TSA. However, recommendations need the government to learn from other countries which have experienced the implementation of TSA operations for many years of time, the reason is to improve the overall performance of the implementation up to the highest rating score points.