Tanzania

(1)

MARCH 2007 • EMBASSY OF SWEDEN TANZANIA

Sida Country Report 2006

(2)

(3)

1. Summary

Swedish Development Assistance to Tanzania, according to the new Cooperation strategy for development cooperation with Tanzania 2006–2010, is currently undergoing a change. The fi nancial develop-ment cooperation shifts from project and programme support to

General Budget Support (GBS) for poverty reduction, for implementation of the National Strategy for Growth and Reduction of Poverty

(NSGRP1_).

The Swedish commitment to the Paris Declaration on Aid Effective-ness calls for increased use of the Tanzanian systems for follow-up and reporting. In this Annual Country Report Sida has, when possible, used these systems and sources of information on results. However the Tanza-nian reporting systems needs to be strengthened. Relevant information on results are lacking in some areas and a number of complementary sources of information have been used (Appendix 3).

During 2006 efforts were made to achieve the specifi c goals set out in the strategy.The objectives will most likely be achieved by the end of the strategy period. Since the achievement of the specifi c goals is not meas-urable on short-term basis, the mid-term review of the strategy to be made during 2008 will provide with further information.

Decision was made to substantially increase the General Budget Support 2006–2008 and the fi rst year of implementation resulted in an increase to 300 MSEK (40% of country allocation). The work to concen-trate the development cooperation areas continued during the year according to plans and have so far has resulted in a general agreement with Tanzania where seven areas are identifi ed for phase-out. Conse-quently, specifi c agreements were made with partners in the phasing out sectors.

Sida has initiated and carried out various activities to advocate for a rights perspective. One example is the project, “Taking Rights Seriously”, with the aim to strengthen the human rights perspective in practice and dialogue.

The Paris Baseline survey of 2006 showed that Sida scored below average on most of the Paris indicators. The data was though collected during 2004/2005 – two years ago – and since then Sida’s contribution portfolio has changed in accordance with the new country strategy.

1 _{The second Poverty Reduction Strategy has the title National Strategy for Growth and Reduction of Poverty (NSGRP)}

(6)

Sida expects to score better in the future and has set forth some specifi c Sida targets for 2010.

With regard to the power analysis, an instrument has been developed to be used in the coming years with the purpose of following the develop-ment of democratic governance and power relations in Tanzania.

The poverty in Tanzania is decreasing even though lack of data is a problem. Since 1995 there has been a strong sustained growth of almost 6%, but this fact has not yet been captured in the poverty estimates. However, poverty simulations made by the World Bank, the IMF and others suggest that the link between poverty reduction and economic growth is strong in Tanzania. A new Household Budget Survey will be conducted in 2007 that should provide more reliable data by 2008.

The GDP of Tanzania in 2006 was lower than the Government’s target and dropped from 6,8% in 2005 to 5,8% The drop was mainly caused by the drought in northern Tanzania during the fi rst half of the year and the following energy crisis. The energy crisis was further deepened by delays in investments in alternative energy sources and delays in establishing a commercially viable distribution company. The GDP for 2007 is expected to be 6,7%.

There was a progress towards achieving the Millennium Develop-ment Goals (MDG) although much more needs to be done if all targets are to be reached by 2010. Tanzania has achieved selected targets already i.e. universal primary education, proportion of urban population with access to safe water and basic sanitation and Global partnership for development. Progress is most problematic with the health-related goals; reduction of child and maternal mortality, combating HIV/AIDS, malaria and other diseases.

President Kikwete maintained his enormous popularity and consoli-dated his position further during 2006. With a strong mandate, the president outlined an ambitious agenda. His fi rst year in offi ce was however heavily marked by the energy crisis and its fi nancial implica-tions. The government’s management of the crisis raised concerns regarding effi ciency, transparency and accountability. The implementa-tion of the reform agenda was seriously delayed, especially with regard to anti-corruption matters. The situation on Zanzibar has stabilised al-though the deep mistrust between the opposition and the government remained. The progress on a sustainable solution between the parties is expected to be slow.

(7)

5

2. Political, Economic

and Poverty

Development

2.1 Poverty Reduction: Overall Trends and Perspectives Poverty remains a critical concern for Tanzania, with income levels still amongst the lowest in Africa. Between 1992 and 2001, the proportion of people living below the national poverty line fell slightly from 39% to 36%, while the number of people living below the international “dollar a day” poverty line was 58%. Strong sustained growth since 1995, of almost 6% per annum, have not yet been captured in the poverty esti-mates. While poverty today is surely below 2001 levels, the lack of data is

a problem for policy making. However, poverty simulations2_{suggest that}

the link between poverty reduction and economic growth is strong in Tanzania. The simulations suggest that poverty has continued to decline, also on the rural side. A new Household Budget Survey will be conduct-ed in 2007 and should produce more reliable poverty data and bring clarity to what degree poverty has been reduced in Tanzania in the last fi ve years – a period with stable, continuous and relatively high economic growth.

During 2006 Tanzania suffered from a severe drought resulting in an energy crisis with power rationing commencing in February throughout the year. The crisis had indirect effect on poverty as crisis related expen-ditures crowded out other more poverty-related expenexpen-ditures in the budget. More serious, the energy crisis negatively affected present and future growth. However, due to the fact that only 10% of the population is connected to the electricity grid and the tariffs are heavily subsidized, the crisis did not directly affect the poor as much as middleclass and healthy households.

Tanzania is making progress towards achieving the MDG targets although much more needs to be done if all targets are to be achieved. As the table below illustrates, Tanzania has achieved some selected targets already: Goal 2 (universal primary education); Goal 3 (gender equality in primary schools, although not in secondary schools); Goal 7 (proportion of urban population with access to safe water and basic sanitation); and Goal 8 (Global partnership for development). With an increased focus on (rural) growth, and implementation of improved policies, strengthened institutions, and additional funding, Goal 1 (eradicate extreme poverty and hunger) is feasible. Progress is most problematic with the health-related Goals 4, 5 and 6 (reduction of child

(8)

and maternal mortality, combating HIV/AIDS, malaria and other diseases) even with improvements in policies, institutions, and funding and despite the signifi cant progress that has been made to date, espe-cially in combating child mortality.

T a n z a n ia ’s M K U K U T A a n d M D G t a rg e ts a n d s ta tu s 19 9 0 (o r clo s es t av a il a b le ) 20 0 6 (o r c lo s e s t av a il a b le ) 20 1 0 MK UK UT A Ta rg e t 20 1 5 MD G T ar g e t 20 1 0 MK UK UT A T a rg e t – a t c u rr ent t rend T a rg e t – w it h be tt e r pol icies, in s ti t. a n d a d d i-ti o n a l f u n d in g G o a l 1 : e ra d ic a te ex tr e m e p o v e rt y a n d h u n g e r 20 1 5 t a rg e t = h a lv e 1 9 9 0 l e ve l o f i n c o m e p o ve rt y a n d m a ln u tr it io n Inc ome – % b e lo w t h e n a ti o n a l p o ve rt y l in e 39 % 3 6 % 2 4 % U n c e rt a in Y e s – % b e lo w d o lla r a d a y p o ve rt y l in e 6 1 % 5 8 % 3 1 % C h ild m a ln utr iti o n – % o f c h ild re n u n d e r 5 u n d e rw e ig h t 2 9 % 22 % 1 5 % – % o f c h ild re n u n d e r 5 s tu n te d 4 3 % 3 8 % 2 0 % N o U n c e rt a in – % o f c h ild re n u n d e r 5 w a s te d 6 % 3 % 2 % Y e s Y e s G o a l 2: A c h ie v e u n iv e rs a l p ri m a ry e d u c a ti o n 20 1 5 t a rg e t = n e t e n ro lm e n t o f 1 0 0 % N e t e n ro lm e n t i n p ri m a ry s c h o o l 5 1 % 9 1 % 9 9 % 1 0 0 % M e t Y e s G o a l 3: P ro m o te ge n d e r e q u a li ty , e m p o w e r w o m e n 20 1 5 t a rg e t = e q u a l g e n d e r r a ti o G ir ls / b o y r a ti o n f o r e n ro lm e n t i n p ri m a ry s c h o o l 1 .0 1 0 .9 9 1 1 M e t Y e s G ir l/ b o y f o r e n ro lm e n t i n s e c o n d a ry s c h o o l 0 .7 0 0 .8 1 1 1 Y e s Y e s G o a l 4 : Re d u c e c h il d m o rt a li ty 20 1 5 t a rg e t = r e d u c e 1 9 9 0 c h ild m o rt a lit y b y t w o t h ir d s U n d e r f iv e m o rt a lit y ( p e r 1 0 0 0 ) 1 4 1 1 1 2 7 9 4 7 N o U n c e rt a in In fa n t m o rt a lit y ( p e r 1 0 0 0 ) 9 2 6 8 5 0 N o U n c e rt a in G o a l 5 : I m p ro v e m a te rn a l h e a lt h 20 1 5 t a rg e t = r e d u c e 1 9 9 0 m a te rn a l m o rt a lit y b y t h re e f o u rt h s Re d u c e m a te rn a l m o rt a lit y b y t h re e q u a rt e rs ( p e r 1 0 0 ,0 0 0 b ir th s) 5 2 9 5 7 8 2 65 1 3 2 N o U n c e rt a in B ir th s a tt e n d e d b y s k ill e d s ta ff ( % o f t o ta l) 53 % 4 6 % 8 0 % N o Y e s

(9)

7 19 9 0 (o r clo s es t av a il a b le ) 20 0 6 (o r c lo s e s t av a il a b le ) 20 1 0 MK UK UT A Ta rg e t 20 1 5 MD G T ar g e t 20 1 0 MK UK UT A T a rg e t – a t c u rr ent t rend T a rg e t – w it h be tt e r pol icies, in s ti t. a n d a d d i-ti o n a l f u n d in g G o a l 6 : C o m b a t H IV / A ID S , m a la ri a , o th e r d is e a s e s 20 1 5 t a rg e t = h a lt a n d b e g in t o r e ve rs e A ID S e tc. H IV p re va le n c e i n t h e t o ta l p o p u la ti o n ( % ) n .a . 7. 0 < 7. 0 H IV p re va le n c e a m o n g 1 5 – 2 4 y e a r p re g n a n t w o m e n n .a . 7. 6 5 N o U n c e rt a in G o a l 7 : Ens u re e n v iro n m e n ta l s u s ta ina b il it y 20 1 5 t a rg e t = i n te g ra te i n to G o v. p o lic ie s , r e ve rs e l o s s o f e n vi ro n m e n ta l r e s o u rc e s, h a lv e p ro p o rt io n o f p e o p le w it h o u t a c c e s s t o s a fe w a te r a n d s a n it a ti o n P ro p o rt io n w it h a c c e s s t o c le a n a n d s a fe w a te r i n u rb a n a re a s 9 2 % 9 1 % 9 0 % 9 0 % M e t Y e s P ro p o rt io n w it h a c c e s s t o c le a n a n d s a fe w a te r i n r u ra l a re a s 3 6 % 4 7 % 6 5 % 9 0 % N o Y e s P ro p o rt io n o f p e o p le w it h a c c e s s t o b a s ic s a n it a ti o n i n u rb a n a re a s 9 8 % 9 6 % 95 % M e t Y e s P ro p o rt io n o f p e o p le w it h a c c e s s t o b a s ic s a n it a ti o n i n r u ra l a re a s 9 1 % 92 % 95 % Y e s Y e s G o a l 8 : D e v e lo p g lo b a l p a rt n e rs h ip f o r d e v e lo p m e n t 20 1 5 t a rg e t = s u s ta in a b le d e b t, m a ke a va ila b le b e n e fi ts o f n e w t e c h n o lo g ie s D e b t s e rv ic e ( % o f e x p o rt s o f g o o d s a n d s e rv ic e s) 3 2 .9 % 6.8 %

(10)

2.2 Macroeconomic Development

Drought, largely in northern Tanzania in late 2005 and fi rst half of 2006, and the following energy crisis affected all key economic indicators negatively. Delays in investments in alternative energy together with delays in establishing a commercially viable distribution company caused massive load sheeding in 2006 and an estimated 2% reduction in GDP growth. Real GDP in 2006 was below Government’s target and dropped to estimated 5.8%, down from 6.8% in 2005. However, this rate is still high by African standards and refl ects, in part, signifi cant growth in construction. Assuming normal rainfall, a recovery in the manufacturing sector can be expected in as the higher production costs caused by power rationing are alleviated. Real GDP growth is expected to rebound to 6.7% in 2007.

Bank of Tanzania (BoT) did not meet its target of maintaining the rate of infl ation at 4% or below until the end of June 2006, and will most likely not meet its current target of reducing infl ation to 4% by end-June 2007. The latest data for December 2006 showed that the year-on-year infl ation rate increased for the fi fth consecutive month, to 6.7%, owing to the still ongoing impact of the drought, which raised food prices, as well as the international price of imported oil. The rising cost of oil imports was exacerbated by continued power cuts, which forced local industry to use oil-fi red generators, raising production costs.

The Tanzanian shilling fell sharply against the US dollar in 2006, reaching TSh1, 320/US$1 by the end of August, before rising towards the end of the year, to fi nish 2006 at TSh1, 275/US$1. The fall refl ected the burgeoning current-account defi cit and, in particular, a demand for fuel and food products that was enhanced by seasonal drought-induced food and electricity shortages. The so called “Dutch-disease” with an appreciated shilling due to large infl ow of aid does not seem to have materialized.

Following a recent revision of data by the BoT, it is now estimated that the overall current-account defi cit widened signifi cantly in 2005, to 8.1% (instead of earlier reported 5.3%), owing to a widening of the trade defi cit. This deteriorating trend in the trade defi cit and the current account continued into 2006. Imports in particular climbed substantial-ly, largely because of the effect of increased international oil prices, which was exacerbated by the energy crisis that forced industry to use oil-powered generators, and also by an increase in capital imports directed at the mining, communication and manufacturing sectors, where foreign investment has been strong. Overall, the current-account defi cit is estimated to have reached 11.1% of GDP in 2006.

Exports were somewhat weaker than expected largely due to unfa-vourable weather conditions which delayed the start of the procurement season for traditional exports. However, overall current-account defi cit was ameliorated as Tanzania benefi ted from the fi rst full year of reduced debt payments under the multilateral debt relief initiative (MDRI). Tanzania’s debt sustainability indicators are well below the debt sustain-ability thresholds.

Tanzania has had almost a decade of successful implementation of IMF sponsored PRGF-programs. In African terms this is exceptional and the last PRGF was about to come to an end in August 2006 to be replaced by a non-fi nancial Policy Support Instrument (PSI). This would mark a new chapter in Tanzania’s relationship with the IMF and mainly send a signal to donors, multilateral development banks and the markets that the IMF continue to endorse Tanzania’s macroeconomic policies.

(11)

9 However, the sixth and fi nal review of PRGF had to be postponed due to issues related to the energy-crisis and the PRGF was extended to end of the year. In December information from the external auditors of BoT indicated impropriety in the managements of an external debt account at BoT. The allegations raised questions regarding program implementa-tion, capacity to repay the Fund, and safeguards of Fund resources. Again the PRGF was extended, this time to August 2007 to clarify the nature of the alleged impropriety and make sure that no systematic problems existed that could give rise to safeguard concerns.

2.3 Political Development and Human Rights

President Kikwete maintained his enormous popularity and consolidated his position further when assuming the presidency of the ruling party CCM in June. With a strong mandate, the president outlined an ambi-tious agenda. His fi rst year in offi ce was however heavily marked by the severe energy crisis and its fi nancial implications. The implementation of the reform agenda was delayed, especially with regard to anti-corrup-tion. The government’s management of the energy crisis raised concerns regarding effi ciency, transparency and accountability. Civil society, including media, continued to strengthen its voice.

On Zanzibar, the situation stabilised while the deep mistrust between opposition and government remained. Talks between the parties over the political future broke down during the year, but were later resumed. Any progress on a sustainable solution is expected to be slow.

Internationally, the regional integration within the East African Community, EAC, continued with Burundi and Rwanda as new mem-bers. Tanzania also concluded its two years’ tenure as a non-permanent member of the UN Security Council. Its constructive role in African confl icts, especially in the Great Lakes region, was maintained. About 300 000 refugees remained in Tanzania under the auspices of UNHCR. Following the positive developments in the region, voluntary repatriation increased. At the same time, Tanzania took a fi rm stance against illegal immigrants in the country.

The human rights situation remained unsatisfactory. The respect for the freedom of speech and association were not fully respected. Tanzania has ratifi ed most part of the core international human rights treaties, but implementation is still unsatisfactory. Tanzania has still not ratifi ed the Convention Against Torture and Other Cruel, Inhuman and Degrading Treatment or Punishment (CAT), Second Optional Protocol to the International Covenant on Civil and Political Rights, aiming at the abolition of the death penalty (ICCPR – OP2). Moreover, the GoT reporting to the various treaty bodies is insuffi cient. Tanzania had 2006 ten reports that were not submitted to the Treaty Bodies. The most recent country report is on the implementation of the Convention on the Rights of the Child (1998 – 2003) submitted in 2005, due in 2004. The scarce reporting is claimed to be a lack of capacity. The Serengeti case remained unresolved; the court land case and compensation to the villagers is still pending. The ban of the NGO HakiElimu persisted throughout the year and this is an indication of the limited space for NGO’s to criticise government policies but is also a severe violation of the right to freedom of expression and organisation.

The updated Tanzania Country Gender Profi le (TPNG) was

com-pleted in 20063_{. The purpose was to collect, assess and analyze published}

materials emanating from the Government of Tanzania (GOT) and

(12)

other stakeholders working towards the promotion of gender equity in Tanzania. Findings concluded that GOT has facilitated equitable legal conditions through some very progressive laws such as the Land Laws of 2000, 2002 and 2004 but the co-existence of the customary laws and religious and statutory laws, undermines the promised benefi ts to wom-en. There are also still severe limitations in some of the Acts which were once hailed as ground breaking, such as the Sexual Offences (Special Provisions) Act (SOSPA) which does not go far enough to stop gender violence within marriages or co-habitation arrangements, and the Marriage Act which has discriminatory minimum marriage age limits for girls and boys. Access to legal aid for the majority is also a challenge in spite of the efforts of the NGO’s to fi ll this gap.

2.4 Development Cooperation and Partnership

Since mid 2004, the Government has led a process to develop a Joint Assistance Strategy Tanzania ( JAST). Set in the global context of the Rome and Paris Declarations on Aid Effectiveness, the initiative has been intended to deepen the impact of the relationship between Govern-ment and its many developGovern-ment partners. In particular, the JAST aims to embed fundamental principles that strengthen national ownership of the development process, and harmonise donor and Government proc-esses and procedures in ways that make aid more effective and simpler to manage. Government has led the development of JAST, with broad-based consultations within Government, with DPs and with non-state actors. In October 2006, the JAST was approved by Cabinet, making the JAST an offi cial document for the Government. The JAST was offi cially launched on 5 December 2006 and 20 DPs reaffi rmed their commitments to JAST with signing the JAST Memorandum of Under-standing. The JAST is being operationalized through the completion of an Action Plan and Monitoring Framework developed by the govern-ment-led JAST Working Group. During the year Sweden took over as the DP chair in the JAST Working Group.

While the JAST process produced a key document on important principles it became clear early in the year that it would not be suffi cient to replace individual DPs program documents. As many DPs were required by HQs to have some form of program document available during the year, the Development Partners Group (DPG) prepared a results-based Joint Programming Document ( JPD). The JPD provides a common frame for DPs to locate their individual agency plans. The JPD refl ects DPG planned support and commitments to Tanzania on aid effectiveness over the 4 remaining years of MKUKUTA, FY 06/07– 09/10. Some DPs (World Bank, Denmark, Dfi d, EC) have already used the JPD as core element of their own program documents with a sepa-rate supplement, addressing agency-specifi c issues, including more detailed descriptions of their specifi c assistance programs.

The fi rst MKUKUTA Annual Implementation Report was not fi nalized as planned during the year. For the annual review of GBS in October a very rough zero draft was available but could not fi ll its purpose of providing information on progress in achieving MKUKUTA outcomes. Finalization of the report is underway and is expected in early 2007.

Below table is from the Paris Baseline survey conducted in 2006 with data for FY 2004/05 and responses from 30 DPs. Tanzania has already achieved four of the twelve Paris indicators (indicator 1, 4, 11 and 12). However, the table also shows that Sida is scoring well below average on

(13)

11 most indicators. As the survey uses data 2 years back in time and Sida’s portfolio has undergone some changes lately – accelerated by the new country strategy – it could be expected that a snapshot today would present a better scoring. Nevertheless, Sida has set forth some targets for the Sida portfolio by 2010 – the end period for MKUKUTA, JAST and Swedish Co-operation Strategy. Development will be monitored and reported in forth-coming Annual Country Reports.

Indicators Tanzania Survey Results Sida Result Global Targets by 2010 Sida Target 2010

Indicator 3: Aid flows are aligned with national priorities

90% of aid flows to government sector reported on government’s budget 78% 85% >90% Indicator 4: Strengthened capacity by coordinated support 50% of technical cooperation flows are implemented through coordinated programmes

57% 50% 75%

Indicator 5a: Use of country PFM systems

66% of aid to the public sector using countries PFM systems

62% 77% (1/2 reduction) >80% Indicator 5b: Use of country procurement systems

61% of aid to public sector using public procurement systems

49% 74% (1/3 reduction) 75% Indicator 6: Avoiding parallel implementation structures 56 PIUs 6 19 (reduce by 2/3) 0 Indicator 7: Aid is more predictable

70% of aid disbursed within the fiscal year for which it was scheduled 68% 85% (halve the gap) 85% Indicator 9: Use of common arrangements or procedures

55% of flows are provided in the context of Programme-based approaches

38% 66% 80%

Indicator 10a: Joint missions

17% of donor missions to the field are joint

7% 40% 40%

Indicator 10b: Joint analytic work

38% of country analytic work is joint

(14)

3. Swedish

Development

Cooperation

3.1 Strategic Assessment and Considerations

The Cooperation Strategy 2006–2010 is based on a very positive assess-ment of the MKUKUTA. Although some important risks and dialogue areas are identifi ed in the strategy (the political dimension of poverty and the quality of growth) the overall conclusion is that Swedish Develop-ment Cooperation 2006–2010 shall deepen the alignDevelop-ment with national efforts to increase growth and reduce poverty. No major policy changes have occurred in Tanzania since that analysis was made and the strategy is therefore relevant.

In line with the assessment of poverty reduction commitment in Tanzania and with the Joint Assistance Strategy for Tanzania ( JAST) the Cooperation Strategy 2006–2010 defi nes an overall objective and three specifi c goals for Swedish development cooperation with Tanzania 2006–2010:

Overall objective:

The overall objective of Swedish development cooperation with Tanza-nia is to help create conditions that will enable the poor to improve their lives. This is to be accomplished by supporting Tanzania’s efforts to reduce poverty. Swedish assistance is to be based on the Millennium Development Goals (MDGs) and the NSGRP, and implementation is to comply with the principles of the Paris Declaration and the Tanzanian Joint Assistance Strategy ( JAS).

Specific goals:

1. The aim is for GBS to account for 50–70 per cent of the country allocation towards the end of the strategy period.

2. Swedish development cooperation is to be concentrated to 3–5 areas of cooperation as defi ned by the Tanzanian JAS and this strategy. 3. Swedish development cooperation is to be associated with the rights

perspective in our dialogue with both Tanzanian partners and other donor partners.

The Cooperation strategy also specifi es the overarching dialogue issues as advocating rights and greater effi ciency in poverty reduction.

2006 was the fi rst year of implementation of the new Cooperation Strategy. To a large extent the results of the implementation in 2006

(15)

13 therefore naturally are related to changing plans, entering into new relationships with partners and starting a more focused dialogue. It is yet too early to observe substantial concrete outcomes of the new strategy. However some concrete steps have been taken:

• Sweden and Tanzania has agreed on a new general agreement on development cooperation where seven areas of continued cooperation have been defi ned and seven areas of gradual phasing out have been identifi ed. Consequently specifi c agreements on phasing out have been agreed upon with all partners in the phase-out sectors. • Sweden and Tanzania has come to a new agreement on general

budget support 2006–2008. The agreement implies a substantial move from project and programme to general budget support as fi nancial modality for Swedish development assistance to Tanzania. The consequence of the agreement is that GBS as a share of the country allocation will move from below 20% in 2005 to approxi-mately 65% in 2008.

• The human rights based approach to development planning and the human rights perspective in dialogue has been elaborated in the project Taking Rights Seriously. The project involves some strategic partners in civil society and the development partners group and aims at through reaction and promotion strengthen the human rights perspective in development practice and dialogue.

• Agreements with other development partners on division of labour have been reached in a number of areas. On the overall cooperation level Sweden is leading the Donor Group for the Joint Assistance Strategy for Tanzania in 2006/07. Sweden is also co-lead with the World Bank in the Energy Sector Donor Group. From 2007 Sweden will assume the lead role in the Education Sector Donor Group as well as the Private Sector and Trade Donor Group (in addition to this Sweden is donor facilitator for the Integrated Framework (IF) initia-tive).

The mature and comprehensive institutions for harmonization among ODA-donors in Tanzania make it easy for Sweden to infl uence and participate in the work of the European Union and multilateral donor partners. In 2006 Sweden participated actively in developing a Joint Programme Document within the JAST-implementation and in the discussion on UN-programming (UNDAF/Delivering as one). 3.2 Volume of Programming Overview

In 2006 the total volume of fi nancial assistance was 744 MSEK. The increased allocation (originally 700 MSEK) made it possible to increase the ambition in prioritized areas of Cooperation in line with the new Cooperation Strategy, whilst phasing out old partnerships in sectors not prioritized in the new strategy. It was however challenging to balance the programming between old commitments and new ambitions.

(16)

Financial forecast for the Country Programme 2007–2009

2006 2007 2008 2009 MSEK % MSEK % MSEK % MSEK %

General Budget Support 300 40 350 46 500 62 500 63

Project and basket support to state institutions Prio sector 180 24 187 24 182 23 192 24 Phase-out sectors 172 23 129 17 41 5 4 1 Support to Non-State Actors Prio sectors 63 8 71 9 53 7 81 10 Phase-out sectors 12 2 12 2 11 1 10 1 Other 16 2 15 2 14 2 13 2

Total (including over planning) 743 764 801 800

As can be seen in the table above the Cooperation Strategy is substan-tially changing the Country Programme. GBS is increasing its share of the total ODA from 40 to 63 percent. Assistance to projects in sectors that shall be phased out is moving from 25 to 2 percent.

Two major challenges remain:

The share of non-budget support to state institutions is remaining at approximately a fourth of the Country Allocation. The explanations for this are two:

1/ The energy sector is a priority sector where the main part of the support is support to infrastructural projects where the project funding modality is most appropriate.

2/ The Tanzanian Government and the Donors still prefer basket support to fund the core reform programmes where Sweden is an active partner.

The share of support to non-state actors is expanding slowly. Partly this is due to the weak absorption capacity in civil society organi-sations in Tanzania, but partly it is a consequence of the slow phasing out process in other sectors. There might be a reason for further acceleration of the concentration of Swedish support – for example by a decision to phase out of one more sector from 2008.

3.3 Risk analysis

In the country strategy it is stated “considering potential risk factors, a range of possible scenarios could arise, requiring intensifi ed dialogue and/or volume adjustments” i.e. if the development in Tanzania deterio-rated with consequences on volumes of aid and the Swedish GBS. Sida follows continuously the development in order to discuss strategic adjustments and appropriate measures with the Tanzania Government and other donors in case some of the scenarios would happen.

In the assessment and decision on GBS and the development of the Joint Programming Document ( JPD) a number of potential risks were analysed and the impact these risks would have for the development cooperation was considered. In the documents the probability of identi-fi ed risks to occur was rated, risk management and mitigation measures were presented in order to manage these risks. Three of the potential risks identifi ed were external shocks, domestic accountability and governance and institutional capacity constrains. When monitoring the risk assessment of GBS it can be noted that the risk of external shocks not effectively managed (rated low probability) actually did materialize during the year in the form of drought and high oil-prices. The lack of adequate response from the Government had a negative impact on budget execution, growth and reduction of poverty. For this reason GBS was scaled down. The political risks in the area of domestic accountability and governance are

(17)

15 caused by weak checks and balances and were in the assessment intended to be managed by strengthening the NGOs, parliamentarians and media institutions. The Swedish support is increasingly directed to support the civil society and relevant institutions i.e. the National Audit Offi ce in order to handle these risks. The institutional capacity were rated as me-dium, which seems do be adequate. The constrains continue to slow down the pace in many of the public sector reforms and leads to vulner-ability, although most of the reforms enjoy broad political support.

(18)

4. Specific Country

Programme

Overview

The Swedish development assistance to Tanzania is currently undergo-ing a change from project and programme support to GBS fi nancundergo-ing implementation of the MKUKUTA and the achievement of the MDG goals in line with the country strategy. The fi rst part of the presentation below is focusing on the goal specifi ed in the country strategy to aim for GBS to account for 50–70 per cent of the country allocation at the end of the strategy period.

The structure of the MKUKUTA is based on three Clusters: Growth and reduction of poverty, Improvement of quality of life and social wellbeing and Governance and accountability, with goals specifi ed for each cluster. The second part of the presentation below consists of an analysis of the Swedish support to the different sectors and is following the MKUKUTA structure. Each part of the presentation begins with a presentation of the identifi ed goals for each cluster, an overall assessment of the development/progress in the cluster and followed by a more detailed description of the results of the Swedish contributions. 4.1 General Budget Support

During FY 05/06 Sweden was lead in the “Troika+” that coordinates GBS to Tanzania from 14 development partners. During the period a new framework for GBS was developed. It involved a new Performance Assessment Framework (PAF), a new MoU for budget support as well as a new format for the Annual Review. The work was driven by the need to shift accountability more fi rmly to Government and domestic stake-holders (instead of the donors), further reduce the transaction costs and encourage the development and use of Tanzania’s own fi nancial system rather than setting up and using parallel donor systems.

A new GBS contribution for 2006–2008 was assessed and approved by Sida during the spring and summer. The contribution is on tota1.2 billion SEK, gradually increasing from 300 million SEK in 2006, to 400 million SEK in 2007 and 500 million SEK in 2008. For the increase to take place the following specifi c conditions were stipulated in the agree-ment:

– The underlying principles of the MoU are respected.

– The Annual Review of GBS shows an overall satisfactory progress. – The Annual Review shows continued positive trend in the PFM area. – Effective sector reviews and dialogue are established and conducted.

(19)

17 The Annual Review of GBS 2005 took place in October 2005. The conclusion of the review was that there had been reasonable satisfac-tory overall progress, although concerns were in particular raised about governance issues. Based on the results of the review and in accordance with the conditions in the new MoU for GBS, Sida committed in December 2005 to disburse 300 million SEK in the fi rst quarter of FY06/07. The disbursement took place in September 2006.

The Annual Review of GBS 2006 took place in October 2006. It concluded that the overall progress was generally satisfactory, but showed less positive outcome than in recent years, mainly due to issues related to energy crisis. In Sida’s view, the lack of appropriate response on the crisis from the Government had a negative impact on budget execution, growth and reduction of poverty. For this reason, Sida de-cided that 350 million should be disbursed as GBS in 2007. This is 50 million less than indicated in the MTEF and bilateral agreement but 50 million more than the previous year. Given that the underlying principles of the MoU are still respected, disbursement of 350 million SEK will take place in July 2007. In accordance with the Cooperation Strategy, it was decided that the country plan for 2007 would be reduced with the corresponding amount.

The experience of the Annual Review 2006 showed that “one proc-ess, one assessment” is possible to combine with individual fi nancial responses of the donors. The Swedish bilateral agreement has proven to de facto have a variable tranche in its gradual annual increase given that specifi c conditions are fulfi lled. It also showed that GBS offer a good opportunity for Sida, or any other GBS-provider, to focus and raise issues on development in any sector as GBS is seen as fi nancing

MKUKUTA in its entirety with no specifi c sector focus. The experience also showed that GBS has proven to be a superior instrument when it comes to establish policy dialogue at the right level with the right people. One example of this is the energy sector, in which despite long and substantial assistance, policy dialogue has traditionally been more technical than strategic with a clear change after the GBS annual review. 4.2 Cluster 1: Growth and reduction of income poverty

Goals in the MKUKUTA:

• Ensuring sound economic management. • Promoting sustainable and broad-based growth.

• Improved food availability and accessibility at household level in urban and rural areas. • Reducing income poverty of both men and women in rural and urban areas.

• Provision of reliable and affordable energy to consumers.

The main target outcome of Cluster 1 of the MKUKUTA is that broad-based and equitable growth is achieved and sustained. Cluster 1 includes the sectors of agriculture, energy, infrastructure and private sector development. The Swedish development cooperation focuses on energy and private sector development.

The overall assessment shows that the Cluster 1 goals are in progress, but the rate of growth needs to be accelerated and broad based, espe-cially in agriculture. Indicators explicitly linked to private sector need to be further developed. Among those measured is credit to private sector which increased above target of 1% increase/annum. Although a formal

(20)

indicator it is worth mentioning that Tanzania moved up on the World Bank’s “Doing Business” ranking. However one major concern during 2006 was the energy crisis, distracting the sector’s attention on long-term development and hampering the growth rate. The contribution of the energy sector to GDP was 1,4%, the same as it was in 2004. There is also a need to enhance efforts on reforms removing bottlenecks hampering growth in the economy, particularly in agriculture, energy, infrastruc-ture and private sector development.

Crucial institutional developments in the cluster were the establish-ment of the Energy and Water Regulatory Authority (EWURA), and the appointment of the Rural Energy Board as a step forward in the estab-lishment of a Rural Energy Agency (REA) promoting access to modern energy services in rural areas. In the Private Sector the inclusion of the World Bank as a fi nancier of the Business Environment Strengthening in Tanzania (BEST) reform programme was an important development. This lead to an extensive review, leading to a redesign and signifi cant enlargement of the programme. The submission of a strengthened Business Activities Registration Bill to the Parliament could also be seen as an important development.

Assessment of specific contributions

The MKUKUTA recognizes the provision of modern energy services as prerequisite for economic growth and poverty alleviation with clear links both to the growth of the economy and reduction of income poverty (cluster 1) and improvement of quality of life and social well being (cluster 2) where sub goals for the energy sector are found. In Tanzania about 90% of energy consumed origins from biomass, wood and charcoal. Less than 10% of the entire population has access to electricity while in the rural areas it is only 1%. One of the Government’s goals for the energy sector is that 25% of the population should have access to electricity by 2010. Major challenges for the energy sector have been to develop additional generating capacity and to expand access to modern energy services to the growing demand.

Tanzania experienced an electricity crisis during the year with heavy power rationing caused by a combination of a long-term non-investment period and a drought-related decline in the state utility TANESCO’s hydro-generation. Hydro-generation counts for 75% of the installed capacity. The crisis has demonstrated the energy sector’s great impact on economy and development. Development partners (World Bank as lead and Sweden co-lead) have been working closely with Government to address energy needs as well as the fi nancial sustainability of the sector. A Financial Recovery Plan for TANESCO has been developed includ-ing assumptions on government commitments. An Energy Sector Re-view has been agreed upon at the General Budget Support Annual Review.

The Swedish support to the energy sector linked foremost to goal 6 Provision of reliable and affordable energy services. The support con-cerned (i) provision of modern energy services in rural areas through rural electrifi cation and market facilitation of solar panels to rural areas, and (ii) institutional support for establishment of REA and capacity development of MEM and TANESCO. The portfolio included ten contributions in the tune of totally MSEK 300 fi nancing 18 contracts.

The support to provision of modern energy services concerned fi ve rural electrifi cation projects on different stages. The construction of Urambo grid extension has been completed and 625 customers have

(21)

19 been connected up to date. Serengeti is in its fi nal stage with 600 custom-ers connected. The third project still under construction was Makam-bako and Njombe substations and grid extension, delayed due to techni-cal problems. The procurement of constructor for joint implementation of Ukerewe and Simanjiro rural electrifi cation projects was in its fi nal stage. Feasibility studies of two new rural electrifi cation projects have been fi nalised. Sida has also supported preparations of three hydro-power studies (Masigira, Mpanga and Ruhudji).

The institutional support programme to the Ministry of Energy and Minerals was fi nalised in August 2006. Results were (i) the establishment of the Rural Energy Agency (REA), (ii) Electricity Act drafted for im-proved legal framework regulating the sector (iii) energy sector reform strategy drafted and submitted to Cabinet. Sida has supported the capacity of TANESCO by a four-year Management Support Service Contract, fi nalised in December 2006. One improvement resulting from the Contract was increased revenue collection rate from 70% in 2002 to 97% in 2006. The expected fi nancial and technical turnaround of the utility was not met partly due to the energy crisis. Funds generated from the increased revenue collection for fi nancing investments to reduce technical losses have been used to cover for the cost of expensive fuel instead, and the management’s focus on resolving the crisis has distorted its focus on deliverables according to Contract. Finally, the work with the rural electrifi cation projects has had a positive impact on the capacity of TANESCO’s rural electrifi cation division through project management experiences and guidelines.

Swedish Private Sector Development supports one major reform pro-gramme, i.e. the Business Environment Strengthening in Tanzania (BEST). Other major support in the sector includes the Financial Sector Deepening Programme (FSDT), Tanzania Chamber of Commerce, Industry and Agriculture and the Export Promotion of Organic Prod-ucts from Africa (EPOPA). Awaiting Government of Tanzania’s consid-erations, preparations of explicit trade related support, such as Integrated Framework for Trade Related Technical Assistance is still pending.

The BEST Programme received extensive review as part of re-design that took place to enable the World Bank join the four Development Partners who provided initial support. The Review was satisfactory as a process in terms of participation and dialogue. In terms of content, the overall trajectory was judged to be positive but the speed of reform was inadequate. This was largely due to institutional bottlenecks.

However the review was satisfi ed that adequate steps were planned and were being implemented to address these bottlenecks. An explicit out-come of was the submission of a strengthened Business Activities Regis-tration Bill to the Parliament. A separate review of BEST advocacy component (one of seven components), which is managed separately, showed a very satisfactory result and is deemed to have had some impact in terms of changing existing policy and in enforcing existing regulation. Accordingly reviewers recommend extended support by donors.

The Financial Sector Deepening Programme (FSDT) became fully operational in the middle of 2005. It now has secured funding from fi ve donor agencies and the Government of Tanzania (GoT) through 2011 for a total of MUSD 46. A review was carried through during the year. The review concluded that in accordance with its business plan FSDT has transferred all of the grant agreements of the FSD Programme and developed a large project pipeline of over 30 projects. Most funds have gone to three large retail fi nancial institutions and one network of

(22)

SAC-COs. These institutions have managed to increase the number of bor-rowing clients by over 15,000, loan volumes by 27% and self-suffi ciency by an average of 14%, despite a disappointing decrease in average portfo-lio quality.

The MSEK 20 of Swedish support to Tanzania Chamber of Com-merce, Industry and Agriculture (TCCIA) will come to an end 2007. The 10 year programme has enabled TCCIA to build a member driven network of Chambers in all regions in Tanzania. The major challenge of the Chamber is to achieve fi nancial self sustainability. Measures are underway to meet that goal. A special achievement have been the estab-lishment of Business Information Centres in 10 regions in the country, aiming to increase the Chambers’ services to members and fee income for the Chambers

The MSEK 31 support to Export Promotion of Organic Products from Africa (EPOPA) programme is coming to an end by 2008. 12 projects are presently operated by EPOPA involving farmers of coffee, pineapples, honey, peanuts, vanilla, sesame and tuna. Above that EPOPA also runs projects of training and institutional development. More than 12000 farmers have benefi ted from the programme during the year.

4.3 Cluster 2: Improvement of Quality of life and social well-being

• Ensuring equitable access to quality primary and secondary education for boys and girls, universal literacy among men and women and expansion of higher, technical and vocational education.

• Improved survival, health and well-being of all children and women and of especially vulnerable groups.

• Access to clean, affordable and safe water, sanitation, decent shelter and a safe and sustainable environment and thereby, reduced vulnerability from environmental risk. • Adequate social protection and provision of basic needs and services for the vulnerable

and needy.

• Effective systems to ensure universal access to quality and affordable public services.

The central role of social service sectors – notably education, health, water and sanitation, – is clearly recognised for achieving the broad outcomes of the cluster, as is the key role of local government authorities as the primary providers of services at the local level. Good performance was noted in the education sector with increased enrolment of both girls and boys at primary level. Short supply of qualifi ed teachers, mostly in rural areas, teaching and learning materials remains a challenge particu-larly when considering the needed expansion of the education sector. There are some gains in other MDGs as infant and under fi ve mortality, HIV/AIDS and malaria, but the maternal mortality has not declined. Large earmarked external funds for new vaccines and for treatment of AIDS, TB and malaria result in long-term commitments and crowd out discretionary funding for health.

During 2006 65 MSEK were disbursed as support to the Primary Education Development Programme (PEDP) through a basket fund

(23)

21 arrangement. From the second half of 2006, support to primary educa-tion, and to the education sector as a whole, was integrated into the General Budget Support. PEDP has shown good progress in terms of enrolment, achieving about 96% net enrolment in 2006. In February, the fi rst full education sector review workshop took place. The review, completed in June with a high level meeting, agreed on basic principles and a work plan. Notably, HakiElimu was expressible barred from participation and banned to conduct some of its work. This represents a considerable setback for the development towards an open and demo-cratic society. Sweden supported HakiElimu in its endeavours to promote people’s engagement in education at all levels. HakiElimu faced a major challenge in trying to lift a ban issued by the former minister of educa-tion. Despite the hampering that the ban has imposed, HakiElimu’s activities have continued in areas such as media coverage of education issues, access to information on education for communities, engagement in education debate, and infl uencing education policies.

Support to the Barbro Johansson Model Girls’ Secondary School ( Joha Trust) resulted in the completion of four new laboratories and a new dormitory for 112 students. During 2006 the student capacity increased from 255 to 360, 45 students completed lower secondary, while 36 completed upper secondary education. The school continued to improve its performance in the national examinations. A remaining challenge for the Joha Trust is to provide secondary education to poor talented girls through stipends and fellowships. During 2006, an external audit of the Swedish support to Joha Trust was commissioned by Sida.

In Zanzibar a new education sector policy was approved by the House of Representatives, and an ICT policy for the education sector was developed. The results of several studies, carried out to provide a basis for decisions regarding the policy as well as the Zanzibar Education Development Programme, were presented and published. A team of consultants have been procured to support the ministry in translating the new education policy into a feasible strategic plan, to be implemented from 2008. Completion and furnishing of classrooms, stores and offi ces continued through out the year. The fi rst fl oor of a new ministry building was completed. Two Teachers’ Centres were provided new equipment in terms of books and computers.

To assist the Government of Tanzania in its effort to expand Higher Education and increase quality of research and innovation Sweden has participated in the preparation of support for a program of reforms in higher and technical education. The reforms obey the call for productiv-ity-led expansion expressed in the MKUKUTA that require more and better skills from higher education and research. Sweden initiated a dialogue with the MHEST and the cooperation partners in education to support the elaboration of a development plan, research policy and national research strategy. Consequently Sweden facilitated the partici-pation of a Tanzanian delegation to the UNESCO forum on Higher Education and Research for Development, and recruited a programme offi cer for Higher Education and Research to be based at the Embassy in Dar es Salaam.

During 2006 46.8 million SEK were disbursed to support research with the goal of strengthening national research environments, research management and research policy. The activities are centred at The University of Dar es Salaam (UDSM) and the Muhimbili College of Health Sciences (MUCHS and have led to the developed a joint Re-search Management strategy that was approved for support.

(24)

Evaluations were made on the University/Faculty fund programs at MUCHS and UDSM, the Financial Management at MUCHS, and on Sida/SAREC bilateral research cooperation programme with UDSM. The Annual Review Meeting had the goal to disseminate research fi ndings to a general audience that comprised an ample sector of the university, policy makers and other donors. Core support is now given to Research on Poverty Alleviation (REPOA), an independent non-profi t organization concerned with poverty and related policy issues in Tanzania. The support to the development of Innovation Systems and Innovative Clusters in East Africa (Tanzania Uganda and Mozambique has led to the launching of 11 pilot clusters.

Research results worth mentioning comprise: (i) the initiation of a clinical trial to test an HIV/AIDS vaccine developed within the frame-work of the research program TANSWED; (ii) production of special insulators that attracted the interest of The Tanzania Electricity Supply Company; (iii) the adoption of a UDSM Gender Policy and the Anti-sexual Harassment Policy as result of support to Gender Research.

Recognizing the central role that ICT plays in the implementation of all MKUKUTA clusters, discussions have been held with the Ministry of Education and Vocational Training to align the ICT support to the GBS in accordance with the Country Strategy, in order to strengthen the ICT policy capacity at the ministry. The effort to integrate ICT in all Teacher Training Colleges is proceeding. The plan envisages that all Teachers Training Colleges will be equipped with computer labs and internet connectivity, together with capacity building activities and curriculum development. So far, all Colleges have been equipped with cabling and connectivity solutions. The procurement process of ICT equipment for the computer labs resulted in delays of the programme, but the purchase was fi nalised in December. Continuous capacity development activities were deployed in parallel with the technology installation.

To strengthen institutional capacity building, Sweden has made an assessment for possible support to the Open University of Tanzania (OUT), the leading distance learning institution in the country.

The programme should contribute to the efforts of Tanzania to expand the student enrolment in higher education and to increase the number of teachers trained, requested from OUT by the Government.

The ICT for rural development programme has focused on initiating effective use of unutilized existing ICT infrastructure for schools, district offi ces, health institutions and the private sector in rural areas. The pro -gramme completed the fi rst site installation between Bunda-Serengeti, and a multi-stakeholder partnership was established with members from the public and private sector. The Mugumu hospital and Nata health centre were connected to the network, in combination with user training. Seven Tanzanian students from the stakeholder partnership are trained on a postgraduate level within the programme. To improve rural con-nectivity the Government decided to establish a Universal Communica-tions Service Access Fund for which Sweden provided initial funding.

The National Aids Control Programme (NACP) has reviewed and upgraded its assessment and certifi cation procedure to assess all health facilities in the start-up and expansion of ART services; and to certify health facilities that have met a set of minimum criteria required to provide care to People living with HIV/AIDS. The 3rd National Multi-sector HIV/AIDS 2006 conference provided an opportunity for stake-holders to share the available new research fi ndings, best practices and experiences as well as to critically analyse the successes and failures of

(25)

23 programme interventions with the intention of improving future inter-ventions against the scourge. The theme was Delivering Comprehensive HIV and AIDS interventions for All’

FEMINA Health Information Project has a 3 year (2006–2009) agreement whose goal is to enable youth and their communities to enjoy their rights to express themselves, to be heard, to access information and services in order to improve their sexual and reproductive health and social well being. The Save the Children Youth Friendly Approaches to HIV/AIDS programme evaluation reported a strong and widespread sense of denial about the intensity of the HIV epidemic. Thus, there is a need to promote life skills for young people for empowerment. Evaluation of the UNICEF programme – Working with Adolescent and Young People and Reaching out for the Most Vulnerable Children revealed that the projects have: (i) District focus, (ii) Enhanced youth visibility, (iii) Promoted Community participation, mobilization and organization, and (iv) Empowered families to provide better care for Most Vulnerable Children. The Student Partnership Worldwide – Tanzania, Kijana Ni Afya programme showed progress in collection of behavioural surveil-lance surveys from in and out of school youth, volunteer debriefi ng workshops, community action groups workshop and health service providers supervisory training. The latest audit confi rmed substantial progress in fi nancial management. The Forum Syd HIV/AIDS pro-gramme midterm review reported as major constraints the inadequate measurability of the targets and activities, poorly defi ned qualifi cations and size of human resources; lack of focused geographical coverage, and an inadequate monitoring and evaluation plan.

4.4 Cluster 3: Governance and Accountability

• Structures and systems of governance as well as the rule of law are democratic, participatory, representative, accountable and inclusive.

• Equitable allocation of public resources with corruption effectively addressed. • Effective public service framework in place to provide foundation for service delivery

improvements and poverty reduction.

• Rights of the poor and vulnerable groups are protected and promoted in the justice system. • Reduction of political and social exclusion and intolerance.

• Improved personal and material security, reduced crime, eliminate sexual abuse and domestic violence.

• National cultural identities enhanced and promoted.

An analysis of results under the cluster based on the MKUKUTA Implementation Framework is not feasible as country wide data as well as baseline indicators are still lacking. With improved collection of data it is expected that the MKUKUTA reporting on achieved results will most likely be further developed in the coming years. The overall assessment presented below is based on data collected from a number of different sources (see attachment 3 List of Strategic documents).

The core governance programmes are progressing, but in different pace. The Public Service Reform Programme (PSRP) was generally considered to be developing satisfactory. Progress was seen towards achieving the medium term pay target whereas concerns were noted regarding the sustainability of the wage bill as well as the effectiveness of

(26)

the allowance regime. The Local Government Reform Programme (LGRP) has been progressing, though continued efforts of the Govern-ment are needed i.e. to fully impleGovern-ment its public sector pay reform. Progress within the LGRP is overall satisfactory although there are differences between the outcome areas. An essential result is achieved since the political support to Decentralization by Devolution (D-by-D) across the government is reported. As a result of the reform 70% of the Local Government Authorities were during 2006 also able to qualify for the formula based grants from the central government (57% in 2005).

The takeoff of the Legal Sector Reform Programme (LSRP) was delayed during 2006 due to technical problems such as recruitment of adequate staff to the programme. The reform is now ready for imple-mentation even if there is a need for broadened ownership and strength-ened dialogue around it.

Corruption remains a serious problem. Tanzania was ranked 93 out of 163 countries surveyed in Transparency International’s 2006 Corrup-tion PercepCorrup-tions Index (compared to 88 out of 159 countries in CPI 2005). The government made attempts to address corruption i.e. by including a second national anticorruption action plan, (NACSAP II) that were launched in December 2006. In order for NACSAP II and the review mechanisms to function effectively, a baseline and a scientifi c survey will be carried out upon which anti-corruption efforts will be based in 2007. The revised anti-corruption bill, initially expected to be submitted to Parliament in November 2006, is now anticipated to be submitted in April 2007. This legislation will be crucial for making further progress in fi ghting corruption. Overall, in order to achieve results in combating corruption, better coordination of the different existing core reforms is needed.

Civil society organisations have increased in number and capability and are active in policy analysis, advocacy, service delivery and citizen engagement roles. However, the overall capacity of these organisations remains weak. CSOs have not adequately been engaged in the core reforms, to mainstream human rights towards realization of social justice. However, in the coming years, civil society organisations will increasingly strive to cooperate with the government by mainstreaming human rights concerns in its work. Sida has developed guidelines and assessment tools for support to civil society organizations in Tanzania. The media is to a large extent free of overt censorship, though monopoly of media ownership increased during the year.

A new Swedish contribution to the LGRP was envisaged for 2006 but was put on hold awaiting the approval of the new cooperation strategy. Another factor which led to the postponement of a new agreement on support was the proposed amendment of the Local Government Act.

Uncertainties remained regarding support to Zanzibar. Contributions in support to reconciliation and democracy building will be explored during 2007.

Phase-out agreements were made to consolidate realization of objec-tives of three urban projects. These agreements included support to the Stone Town Conservation and Development Authority (STCDA), aimed at making the authority a stronger, legally functioning public regulatory institution. Support was given to the Bagamoyo Strategic Urban Devel-opment Plan and Kibaya Urban Initiative Project, which will accelerate completion of the physical activities and lead to the improvement of

(27)

25 living conditions of the poor is the area through implementation of the local and economic development plan. The proposed training in fi nan-cial management and service delivery is in line with ongoing local government reform processes.

Mfuko wa Utamaduni Tanzania (Mfuko) continued during 2006 with grants provision to various organisations to promote cultural activities. An Evaluation will be carried out during 2007 in order to document the experiences and to determine pre-conditions for Sida’s phasing-out of this contribution in line with the country strategy.

The embassy entered into an agreement of support the Tanzania Gender Networking Programme (TGNP) through a basket funding mechanism. The support has contributed to build a stronger feminist movement in the country and facilitated gender progressive change in key policies and framework. TGNP’s campaign for 50% women’s repre-sentation in parliament and district councils resulted in the ruling party CCM has adopted a 50/50 goal for its own leadership and for candidates in forthcoming elections.

Through the District Development Programme (DDP) in Ukerewe, Bunda and Serengeti district councils registered achievements. Planning and fi nancial systems have been strengthened. This made it possible to generate reliable work plans and progress reports. As a result 2 out of 3 councils qualifi ed for the performance based development grants.

As a consequence of the Land Management Programme (LAMP) in Babati, Kiteto, Simanjiro and Singida 3 out of 4 districts were managed well enough to qualify for the grants. The expansion and consolidation of Village Community Banks (VICOBAs), currently more than 150, led to increased income for more than 4500 poor people as well as enhance-ment of people’s awareness on rights. Land confl icts continued to de-crease and higher outputs from agricultural and livestock practices are recorded in these districts.

Support given to Media Council of Tanzania (MCT) through a bridging fund enabled it to register notable results in improved ethics amongst journalists and media outlets. There is less interference of editorial work by the media owners and senior editors. The support to MCT has also led to increased active participation amongst the public, SCOs and media stakeholders in the drafting of the Freedom of Infor-mation and Expression Act (2006).

Pastoralists Indigenous Non-Governmental Organizations (PINGO) Forum has been very instrumental in advocating and campaigning for the minority groups’ right to land. PINGO have campaigned for multi-ple land use as opposed to the Governments plans to evict pastoralists and hunters-gathers. The organisations have also contributed to initiate a policy/law review of wildlife, livestock, national development, conser-vation and natural resource policies in the sector.

Sida have supported the Integrated Financial Management and Accountability programme (IFMAP) and the National Audit Offi ce (NAO), which both are components of PFMRP. Sida’s fi nancing of IFMAP will come to an end during 2007. The implementation of IFMAP has been successfully carried out by the Ministry of Finance and the system meant a lot when GBS was put into practice. Sida’s support to the NAOT project has been carried out in partnership with the Swedish NAO. The project has been delayed and is implemented at a slow pace. Although the intentions were to fi nalise the project during 2007, the partners have been discussing a continuation. A decision on the continu-ation will be made during 2007.

(28)

5. Office and

Administrative

Issues

Administrative Division

The post as Administrative Assistant (part time) has not been refi lled after the last incumbent left her position in December, 2006. In order to save, the duties (mainly archive matters) will be distributed among present staff within the division.

A joint seminar was held in Dar es Salaam early November for the Nordic Contact Persons for Emergency matters in the country.

The Embassy has been instructed by the Ministry for Foreign Affairs to develop a consular action plan in case of a crisis. This work is going on and will be fi nalised early 2007.

The Embassy has bought one new vehicle in replacement of two old ones, thus the fl eet will be reduced by one.

Development Cooperation Division

During the last half of 2006 new staff was recruited at the Swedish Embassy, two Regional and four National Programme Offi cers. Two of the latter hold newly created positions, one as controller and another for Higher Education and Research. In addition, there are two new Nation-al Programme Offi cers working with the civil society with HIV/AIDS. Appendix 1. Selected macro-economic and social indicators

Appendix 2. Planning overview

Tanzania

Sida Country Report 2006

Table of Contents

1. Summary

2. Political, Economic

and Poverty

Development

3. Swedish

Development

Cooperation

4. Specific Country

Programme

Overview

5. Office and

Administrative

Issues