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

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

Project Summary

Approval Date	18 Dec 2019
Signature Date	13 Mar 2020
Planned Completion Date	31 Dec 2024
Last Disbursement Planned Date	30 Jun 2021
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

The present intervention relates to the second phase of the Good Governance and Private Sector Development Programme (GGPSDP). It aims to contribute to Government’s efforts to strengthen good governance and promote private sector led growth and economic development. The program supports the Government of the United Republic of Tanzania (GOT’s) ongoing reforms to promote private sector investments, while addressing constraints affecting the business regulatory regime and service delivery as outlined under the blue print for regulatory reform to improve the business environment. The operation builds upon efforts to improve budget credibility in order to ensure macroeconomic stability while providing a conducive operating environment for the private sector. It would also support the ongoing reforms aimed at fiscal consolidation, thereby establishing a foundation for inclusive and resilient private sector led economic growth. The proposed operation likewise builds upon ongoing reforms to improve public sector oversight, accountability, transparency and institutional capacity to efficiently and effectively manage public resources. The GGPSDP II components remain the same as specified in the original Program Appraisal Report (PAR) namely 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 purpose of the program is to support ongoing reforms to strengthen good governance and promote private sector led growth and economic development.

Beneficiaries

The direct beneficiaries of the operation are 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

GOVERNMENT OF TANZANIA

Information

IATI identifier	46002-P-TZ-KA0-007
Last Update	01 Dec 2021

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Contact Details

Name	OKUDZETO Eline
Email	e.okudzeto@afdb.org

Geographic Location

Country	Tanzania, United Republic of

Project Classification

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

Commitments

U.A 40,000,000

African Development Fund

U.A 40,000,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Evaluation Report	en	viewer
Evaluation Report	en	viewer
Project Completion Report	en	viewer
Appraisal report	en	viewer
Project Completion Report	fr	viewer
Appraisal report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value
The time to register a business	Day	2019	1
Private gross fixed capital formation (% of GDP)	%	2019	32
Aggregate expenditure outturn compared to original approved budget	%	2019	15
Score on 0pen budget index	Score (0-100)	2019	46
Public Procurement compliance rate	%	2019	81
Improvement in the implementation of Controller & Auditor General (CAG) recommendations in central and local government	%	2019	45
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
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
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
Operationalize the online company registration system (BRELA)	None	2019	Time for company registration reduced to 1 day
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
Reducing regulatory processes in order to ease the cost of doing busines	None	2019	Merge the issuance of TIN & and company registration
Unifying identified fees and levies	None	2019	Reduction of fees & charges in the agriculture sector
Public-Private Partnership (PPP) law amendments approved by Cabinet	None	2019	PPP law amendments approved by Cabinet
Establishment of Public-Private Partnership (PPP) guidelines	None	2019	PPP guidelines approved
Government adopts a central government expenditure arrears prevention and clearance strategy	None	2019	Arrears strategy approved and published
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
Government adopts a central budgeting management system	None	2019	Central budgeting management system in place and used to produce the 2018/19 budget
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)
Operationalization of the Debt Management Department (DMD)	None	2019	Full operationalization of the DMD
Government operationalizes the eprocurement system	None	2019	Rollout of the eprocurement system to the Government Medical Supplies
Development of Public Private Partnership Guidelines for the procurements	None	2019	System rolled out to 100 procurement entities
Number of procurement bids awarded to women entrepreneurs	Number	2019	100
People trained / recruited - of which women	Number	2019	100
Cabinet approval of the Public Audit Act Amendments	None	2019	Amendments of the Public Audit Act approved by Cabinet
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)
Development of an Internal audit guidelines for oil and Gas	None	2019	Guidelines for oil and Gas approved and operational
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
Approval of a Quality assurance audit manual (NAO)	None	2019	Quality assurance audit manual developed and approved
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)