Tanzania - Good Governance and Private Sector Development Programme (GGPSDP)

Project Summary

Approval Date	11 Jul 2018
Signature Date	07 Sep 2018
Planned Completion Date	31 Dec 2019
Last Disbursement Planned Date	31 Dec 2020
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	15124
Environmental Category	3
Commitment	U.A 40,000,000
Status	Completion

Project General Description

This operation is the first phase of the Tanzania Good Governance and Private Sector Development Program (GGPSDP) for the fiscal year 2017/18. The GGPSDP is designed as a programmatic series of two consecutive general budget support operations (GBS) covering the two-year period 2017/18 and 2018/19, for a total indicative financing package of UA 80 million. The program responds to the need for Tanzania to improve the investment climate and overall business environment in order to build a strong foundation for the economy’s capacity to generate inclusive growth. More specifically, the key areas of reform supported by the program are as follows: (a) Improving the business environment for private sector development; (b) improving public financial management, with focus on enhancement of budget credibility in order to sustain macroeconomic stability; and (c) improving oversight functions, with particular emphasis on strengthening procurement systems and audit services.

Project Objectives

The overarching development objective is to promote Tanzania’s transition towards inclusive and resilient private sector-led economic growth, supported by improved economic and financial governance. The program will, in this connection, support implementation of Tanzania’s Blueprint for Regulatory Reforms to Improve the Business Environment, as well as targeted PFM reforms that are critical for creating a stable macroeconomic environment for private sector led growth.

Beneficiaries

The direct beneficiaries of the operation will include the Ministry of Industry, Trade and Investment, the Ministries of Finance and Planning (Mainland and Zanzibar) (Fiscal Unit, Budget Unit, and Public-Private Partnership Division), Tanzania Revenue Authority and the Public Procurement Regulatory Authority. Indirect beneficiaries are the citizens of Tanzania, who will benefit from the implementation of reforms to enhance competitiveness and private sector participation in the economy.

Participating Organization

Funding

African Development Fund

Implementing

Ministry of Finance and Planning, in collaboration with Ministry of Trade, Industry and Investment

Implementing

Ministère des Finances et du Plan, en collaboration avec le ministère du Commerce, de l’Industrie et de l’Investissement

Information

IATI identifier	46002-P-TZ-KA0-005
Last Update	29 Jan 2023

Export

Contact Details

Name	OKUDZETO Eline
Email	e.okudzeto@afdb.org

Geographic Location

Country	Tanzania, United Republic of

Coordinates	Location Name
-6.82349 39.26951	Dar es Salaam
-6.16394 39.1979	Zanzibar

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 40,000,000

African Development Fund

U.A 40,000,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Appraisal report	en	TANZANIA Good1 Governance and Private Sector Development Program ENG
Appraisal report	fr	TANZANIE1 Programme de de?v. de la bonne gouverance
Evaluation Report	en	viewer
Evaluation Report	en	viewer
Project Completion Report	en	viewer
Project Completion Report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
The time to register a business	Day	2019	1	2020	1
Private gross fixed capital formation (% of GDP)	%	2019	32	2020	26,6
Aggregate expenditure outturn compared to original approved budget	%	2019	15	2020	6,65
Score on 0pen budget index	Score (0-100)	2019	46	2020	17
Public Procurement compliance rate	%	2019	81	2020	76
Improvement in the implementation of Controller & Auditor General (CAG) recommendations in central and local government	%	2019	45	2020	33
Cabinet approval of the blue print for regulatory reform to improve the business environment	None	2019	The blue print approved and key actions related to quick wins of the blue print implemented	2020	Yes
Implementation of blue print recommendations related to reduction of fees, permits, licenses for business registration certificates	None	2019	At least 40 fees, on permits licenses and registration certificates in key institutions in line with the Blue Print Action Plan	2020	Yes
Amend regulations to enable Tanzania Revenue Authority (TRA) rationalize Value Added Tax (VAT) treatment with a view to promoting domestic industries	None	2019	VAT regulation amended	2020	Yes
Operationalize the online company registration system (BRELA)	None	2019	Time for company registration reduced to 1 day	2020	Yes
Operationalization and roll out of the Government Electronic Payment Gateway (GEPG) system	None	2019	Government Electronic payment Gateway system (GePG) operationalized and rolled out to 30 institutions	2020	Yes
Reducing regulatory processes in order to ease the cost of doing busines	None	2019	Merge the issuance of TIN & and company registration	2020	Yes
Unifying identified fees and levies	None	2019	Reduction of fees & charges in the agriculture sector	2020	Yes
Public-Private Partnership (PPP) law amendments approved by Cabinet	None	2019	PPP law amendments approved by Cabinet	2020	Yes
Establishment of Public-Private Partnership (PPP) guidelines	None	2019	PPP guidelines approved	2020	Yes
Government adopts a central government expenditure arrears prevention and clearance strategy	None	2019	Arrears strategy approved and published	2020	Yes
Implementation of the arrears prevention measures, as articulated in the arrears prevention and clearance strategy	None	2019	Arrears reduce to 3% of the 2018/19 Government expenditure	2020	Yes
Government adopts a central budgeting management system	None	2019	Central budgeting management system in place and used to produce the 2018/19 budget	2020	Yes
Publication of annual and quarterly budget execution report on the Ministry’s website	None	2019	Publication of annual 2017/18 budget execution report (2018) and Publication of quarterly 2018/19 budget execution report (2019)	2020	Yes
Operationalization of the Debt Management Department (DMD)	None	2019	Full operationalization of the DMD	2020	Yes
Government ensures key national projects selected in the 2018/19 budget comply with the PIP manual	None	2019	27 public investment projects prepared in line with the PIM-OM 5 at the Central Government level, 22 at the local Government level (2018/19)	2020	Yes
Government operationalizes the eprocurement system	None	2019	Rollout of the eprocurement system to the Government Medical Supplies	2020	Yes
Development of Public Private Partnership Guidelines for the procurements	None	2019	System rolled out to 100 procurement entities	2020	Yes
Number of procurement bids awarded to women entrepreneurs	Number	2019	100	2020	ND
People trained / recruited - of which women	Number	2019	100	2020	129
Cabinet approval of the Public Audit Act Amendments	None	2019	Amendments of the Public Audit Act approved by Cabinet	2020	ND
Development of an Internal audit guidelines for oil and Gas	None	2019	Guidelines for oil and Gas approved and operational	2020	ND
Revised AFROSAI-E Financial and Compliance Audit Manual approved and piloted	None	2019	Audit of 16 piloted institutions undertaken in line with the revised AFROSAI-E Financial and Compliance Audit Manual	2020	Yes
Approval of a Quality assurance audit manual (NAO)	None	2019	Quality assurance audit manual developed and approved	2020	Yes
Public finances are independently reviewed and there is external follow-up on the implementation of audit recommendations (PI 30-31)	None	2019	Evidence of systematic management responses to internal audit recommendations 55% (2018/19)	2020	Yes