Evaluating the efficacy and best practices of financial management information systems for municipalities in an emerging economy

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Abstract

This study evaluates the effectiveness and best practices of financial management information systems (FMIS) in municipalities within an emerging economy. Despite growing adoption of FMIS to improve financial transparency, reporting, and decision-making, implementation challenges persist, particularly at the municipal level (Sebakamotse & van Niekerk, 2020). The research investigates how FMIS contribute to improved financial management, identifies policy and operational gaps, and explores compliance with national financial frameworks. A qualitative approach grounded in interpretivism was adopted, using an exploratory-descriptive case study design. Twelve senior officials from finance and information and communication technology (ICT) departments across three municipalities were purposively selected and interviewed. Thematic analysis revealed a fragmented FMIS landscape dominated by SAGE Evolution and SAP ERP, with limited module utilisation and inconsistent policy implementation. While municipalities reported some compliance with the Municipal Finance Management Act (MFMA), significant gaps were found in alignment with the Municipal Standard Chart of Accounts (mSCOA). Audit findings related to underutilised modules and unauthorised, irregular, and wasteful expenditures point to systemic inefficiencies and poor internal controls. These insights provide a foundation for improved FMIS implementation and policy formulation across municipalities in emerging economies.

Keywords: Financial Management Information Systems, Municipal Finance, Public Sector Accountability, Emerging Economies, Local Government Financial Management

Authors’ individual contribution: Conceptualization — T.P.K. and C.J.N.; Methodology — T.P.K. and C.J.N.; Validation — T.P.K. and C.J.N.; Investigation — T.P.K. and C.J.N.; Data Curation — T.P.K. and C.J.N.; Writing — Original Draft — T.P.K. and C.J.N.; Writing — Review & Editing — T.P.K. and C.J.N.; Visualization — T.P.K. and C.J.N.; Supervision — C.J.N.; Project Administration — T.P.K. and C.J.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G18, H83, L3, M48

Received: 04.04.2025
Revised: 31.07.2025; 16.08.2025; 31.12.2025
Accepted: 12.01.2026
Published online: 15.01.2026

How to cite this paper: Kweyama, T. P., & Nyide, C. J. (2026). Evaluating the efficacy and best practices of financial management information systems for municipalities in an emerging economy. Journal of Governance and Regulation, 15(1), 106–116. https://doi.org/10.22495/jgrv15i1art10