GOVERNANCE AND PRIVATE SECTOR DEVELOPMENT SUPPORT PROGRAM (PHASE II)

Project Summary

Approval Date	18 Dec 2019
Signature Date	13 Mar 2020
Planned Completion Date	31 Dec 2024
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	15124
Commitment	U.A 40,000,000
Status	Implementation

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	06 Jul 2020

Export

Contact Details

Name	OKUDZETO Eline
Email	e.okudzeto@afdb.org

Geographic Location

Country	Tanzania, United Republic of

Project Classification

Finance Type	N/A
Flow Type	ODA
Aid Type	Sector Budget Support

Commitments

U.A 40,000,000

African Development Fund

U.A 40,000,000

Disbursements

Document Type	Language	Document

Indicator	Target Year	Target Value
The time to register a business	2018	1
Private gross fixed capital formation (% of GDP)	2018	32
Aggregate expenditure outturn compared to original approved budget	2018	15
Score on 0pen budget index	2018	46
Public Procurement compliance rate	2018	81
Improvement in the implementation of Controller & Auditor General (CAG) recommendations in central and local government	2018	45
Cabinet approval of the blue print for regulatory reform to improve the business environment	2018	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	2018	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	2018	VAT regulation amended
Operationalize the online company registration system (BRELA)	2018	Time for company registration reduced to 1 day
Operationalization and roll out of the Government Electronic Payment Gateway (GePG) system	2018	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	2018	Merge the issuance of TIN & and company registration
Unifying identified fees and levies	2018	Reduction of fees & charges in the agriculture sector
Public-Private Partnership (PPP) law amendments approved by Cabinet	2018	PPP law amendments approved by Cabinet
Establishment of Public-Private Partnership (PPP) guidelines	2018	PPP guidelines approved
Government adopts a central government expenditure arrears prevention and clearance strategy	2018	Arrears strategy approved and published
Implementation of the arrears prevention measures, as articulated in the arrears prevention and clearance strategy	2018	Arrears reduce to 3% of the 2018/19 Government expenditure
Government adopts a central budgeting management system	2018	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	2018	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)	2018	Full operationalization of the DMD
Government ensures key national projects selected in the 2018/19 budget comply with the PIP manual	2018	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)
Government operationalizes the eprocurement system	2018	Rollout of the eprocurement system to the Government Medical Supplies
Development of Public Private Partnership Guidelines for the procurements	2018	System rolled out to 100 procurement entities
Number of procurement bids awarded to women entrepreneurs	2018	100
People trained / recruited - of which women	2018	100
Cabinet approval of the Public Audit Act Amendments	2018	Amendments of the Public Audit Act approved by Cabinet
Development of an Internal audit guidelines for oil and Gas	2018	Guidelines for oil and Gas approved and operational
Revised AFROSAI-E Financial and Compliance Audit Manual approved and piloted	2018	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)	2018	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)	2018	Evidence of systematic management responses to internal audit recommendations 55% (2018/19)