Tanzania

	FY 1998 Actual	FY 1999 Estimate	FY 2000 Request
Development Assistance	$12,300,000	$14,750,000	---
Development Fund for Africa	---	---	$16,150,000
Child Survival and Disease	$7,400,000	$6,900,000	$7,300,000
Economic Support Fund	---	$9,231,000	---
P.L. 480 Title II	$10,623,000	---	---

Introduction.

The United States' national interests in Tanzania include stabilizing population growth, preventing the spread of HIV/AIDS, arresting environmental degradation, and promoting democracy, human rights, and broad-based national and regional economic growth. The United States also supports Tanzania's active role in resolving the multiple (and costly) crises afflicting the Great Lakes region. Since the launch of economic and political reforms in 1995, Tanzania has become a stronger development partner. It is a key East Africa country which, despite its limited financial resources, actively champions regional cooperation: 1) has set aside one-fourth of the world's most biologically diverse ecosystems in protected areas, 2) promotes private sector-led development, 3) is committed to democratic governance and a market driven economy, and 4) has a growing potential for attracting U.S. investment in its rich mineral and tourist sectors.

The Development Challenge.

Tanzania's challenges to development are formidable. Based on the severity of the problems faced by Tanzania, USAID expects to be involved in this country's economic development for at least the next decade. Over 50% of its 30 million people live in extreme poverty which is exacerbated by rapid population growth; high rates of transmitted diseases, including HIV/AIDS; unsustainable use of natural resources; and weak human and physical infrastructure. In addressing these problems, USAID is assisting the Government of Tanzania (GOT) to establish a foundation for sustainable growth and improved human welfare.

New policies, protocols, and planning tools have been developed and put in place by the Ministry of Health (MOH) with USAID assistance. Also, contraceptives, equipment and supplies have been provided to clinics. Over 5,200 public and private health providers have been trained in the areas of family planning (FP) and maternal and child health. Results to date include a doubling of modern contraceptive use in five years; availability of at least three FP methods at more than 90% of service delivery sites currently offering FP services; and an increase in the proportion of infants exclusively breast-fed.

USAID has assisted the GOT to develop a major new HIV/AIDS awareness and prevention program involving over 180 NGOs. A program to promote social marketing of condoms has proved highly successful, with about 10 million units distributed in FY 1998.

USAID's environment program has assisted the GOT in strengthening the strategic planning capacity of the country's wildlife institutions which are addressing degradation issues in and around game reserves where population pressures are serious. USAID has improved GOT and donor coordination on key environmental issues; and facilitated the completion of an assessment, both internally and externally, of the economic opportunities available within the wildlife sector.

In the governance area, USAID has facilitated an increase in the transparency and professionalism of the judiciary through the introduction of Alternative Dispute Resolution (ADR) practices and a computerized court case flow management system. This system prevents tampering with records and increases transparency in the record keeping system. USAID has provided support to magistrates and judges through training and the provision of copies of the laws and for the Controller Auditor General's office where the GOT Auditing Act has been redrafted to introduce performance auditing.

USAID is working to improve the regulatory and tax environment for private sector-led growth and is providing business management skills through training and technical assistance to micro and small enterprises and business associations. Achievements to date include a restructuring of the financial sector which has resulted in an increase in the number of private financial institutions and in a more market driven economy. USAID has also contributed to the establishment of the Tanzania Revenue Authority, which has increased revenue collection by 45%; and has assisted in identifying and resolving procedural bottlenecks stifling the establishment of new firms.

USAID's successful infrastructure program has rehabilitated nearly 200 kilometers of district roads in the Iringa Region generating over 45,000 workdays of employment and contributing significantly to food security.

In FY 1998, USAID donated 20,000 MT of P.L. 480 Title II emergency food to defray suffering and hunger for over 1.4 million Tanzanians in regions facing food shortages due to drought. The El Nino rains which began in November 1997, resulted in only about 7,000 MT of the food being distributed through April 1998. However, another 7,000 MT was used later in 1998 to assist 150 villages in two regions where crops were destroyed by El Nino flooding and pests. The remaining 6,000 MT was transferred to the refugee food program in Tanzania. Also in response to the El Nino floods, USAID obligated $1 million in OFDA funds to repair rural roads destroyed by the heavy rains in five regions. As a result of the August 7, 1998 terrorist attack which killed 11 individuals and injured about 100 people in Tanzania, USAID will provide humanitarian assistance for bombing victims for rehabilitation and reconstruction of damaged infrastructure, and for building capacity within the GOT to better manage future disasters.

Tanzania's external debt is $8.2 billion of which less than $30 million (including $15 million of commercial debt) is owed to the United States. Almost all Tanzania bilateral debt owed to the United States (nearly $300 million) was cancelled between 1990 and 1993.

Other Donors.

In FY 1998, the United States ranked tenth among donors. Other donors include the World Bank ($180 million), the Netherlands (the largest bilateral donor providing about $100 million), European Union ($80 million), Japan ($60 million), Denmark ($54 million), Norway ($51 million), Sweden ($49 million), Germany ($43 million), and United Kingdom ($33 million). USAID and other donor programs are complementary with broad donor coordination achieved through monthly meetings held among the donors and regular consultations with GOT officials to discuss achievements, issues and results within each sector.

FY 2000 Program.

USAID will continue working with the GOT to improve family health through family planning, HIV/AIDS prevention and child survival interventions; arrest environmental degradation; as well as establish a more responsive legal and policy environment. These interventions encourage Tanzanian citizens and businesses to take private initiative, which increases their productivity and incomes. Also, USAID will continue to work with civil society to enhance public participation, accountability and the rule of law. USAID's program will emphasize broad based national and regional growth. It will build on the lessons learned and results achieved during the previous years, while effectively coordinating its efforts with those of other donors and the GOT to achieve measurable results.

TANZANIA

FY 2000 PROGRAM SUMMARY
(in Thousands of Dollars)

USAID Mission Director, Lucretia Taylor

USAID Strategic and Special Objectives	Economic Growth & Agriculture	Population & Health	Environment	Democracy	Human Capacity Development	Humanitarian Assistance	TOTALS
S.O. 1 Increased Use of Family Plan/ Maternal and Child Health and HIV/AIDS Preventive Measures - DFA - CS	--- ---	3.900 7,300	--- ---	--- ---	--- ---	--- ---	3,900 7,300
S.O. 2 Foundation Established for Adoption of Environmentally Sustainable NRM Practices - DFA	---	---	3,800	---	---	---	3,800
S.O. 3 Civil Society and Government: More Effective Partners - DFA	---	---	---	2,500	---	---	2,500
S.O. 4 Increased Micro and Small Enterprise Participation - DFA	3,000	---	---	---	---	---	3,000
S.O. 5 Rural Roads Improved - DFA	2,800	---	---	---	---	---	2,800
S.P.O. 1 Tanzania Bomb Victims - DFA	150	---	---	---	---	---	150
Totals: - DFA - CS	5,950 ---	3,900 7,300	3,800 ---	2,500 ---	--- ---	--- ---	16,150 7,300

---

ACTIVITY DATA SHEET

PROGRAM: TANZANIA
TITLE AND NUMBER: Increased Use of Family Planning/Maternal and Child Health (FP/MCH) and HIV/AIDS Preventive Measures, 621-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000 $3,900,000 DFA, $7,300,000 CS
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2003

Summary: This strategic objective was redesigned in FY 1999 with the object of promoting changes in health-seeking behavior and a reduction in harmful health practices in order to reduce high fertility rates, high risk births, infant mortality, and rising rates of HIV transmission. The program made excellent progress over its first five years resulting in an increase in contraceptive prevalence from approximately 6% to 12% of all women. However, after this initial dramatic rise it appeared that contraceptive use began to level off in 1996 mainly due to periodic shortages of contraceptives. In 1997, this problem was rectified when a major donor, the United Kingdom, agreed to increase its donation of contraceptives. In 1997, the amount of contraceptives distributed increased by 14% over the previous year indicating that use of family planning was once again on the rise. Use of various media to provide information on AIDS prevention and an innovative condom social marketing program have resulted in annual sales of over 10 million condoms. Knowledge of how to prevent the spread of HIV is improving, but reduction in high risk behavior is still not adequate to reduce HIV transmission. The direct beneficiaries of the USAID program are adults of reproductive age (15-49) with a special target group of low income families living in both urban and rural areas.

Key Results: Three key intermediate results are necessary to achieve this strategic objective: 1) The formulation of policies and laws addressing key issues in HIV/AIDS, reproductive health, malaria and other key infectious diseases must occur to improve access to quality reproductive and child health services. Voluntary organizations and community based groups are being trained in advocacy to mobilize political and civil service leaders for better reproductive and child health services; 2) Increased provision of quality reproductive and child health services through training of health providers, equipping selected private, voluntary and government facilities, provision of contraceptives; and improvements in management and cost recovery; 3) Improved customer knowledge and practices to mitigate against disease as well as the health services' ability to respond to customer needs which affect demand for services. Health education programs through radio, posters and special events and social marketing programs have increased both demand for reproductive health products and customer knowledge. Customer feedback surveys will be utilized to shape service delivery and quality assurance programs focused on clients' rights to ensure that customer-focus is part of health service delivery.

Performance and Prospects: Performance over the past year has met expectations. The GOT is undertaking major reforms in the health sector, including decentralizing authority and responsibility to district government authorities in administering health services. This presents both a major challenge as well as opportunity to enhance the achievement of USAID program objectives over the coming years.

As centrally-managed programs are phased-out and districts assume responsibility for programs in family planning and HIV/AIDs, there may be a decline in services because districts may not allocate sufficient resources to these key health interventions or have the technical and managerial capability to administer them effectively. The district staff will require much technical support and training to assume new roles in resource allocation, planning, budgeting and management. USAID is targeting its public sector assistance to support capacity building of district health teams to facilitate effective decentralization of health support systems. An important area of focus is improving the ability of district authorities to manage drug and contraceptive supply systems and to monitor supply levels at health facilities. USAID will also work with voluntary agencies to improve their capacity to work with district authorities in the delivery of reproductive and child health activities. There may be opportunities for voluntary agencies to assume responsibilities that government cannot or to provide services on behalf of government such as supervision, quality assurance, training, advocacy or other managerial support. USAID's efforts will promote a public-private partnership in health care delivery with a significant amount of assistance going to the voluntary sector.

Short-term progress over the next two to three years may be impeded during the transition to a decentralized health service delivery system. However, the long term outlook is very promising, particularly the potential larger role for the private, voluntary sector in the delivery of reproductive and child health services.

Possible Adjustments to Plans: USAID has been in dialogue with the GOT to develop a cohesive and comprehensive program of support to the voluntary health sector. The result will be an increased role of the voluntary sector in the provision of quality reproductive and child health services in addition to an increased awareness and demand for these services. Given the goals of health sector reform, including the need to rationalize service delivery in Tanzania, the objective of the new program will be to encourage and support partnerships between government and a range of voluntary agencies for improved reproductive and child health services. Public sector support will be reviewed and restructured in the coming year, particularly given the achievement of results in reproductive health over the past five years. This will ensure that USAID support to the public sector continues to be strategically placed and supportive of health sector reforms which focus on promoting policy and regulatory roles at the national level and enhanced ability of district level officials to plan, administer and deliver health services through public/voluntary partnerships.

Other Donor Programs: The top five donors in rank order are: Denmark, the United Kingdom, the United States, the World Bank and Switzerland. USAID and the United Nations Fund for Population Activities (UNFPA) are the main donors supporting family planning. The United Kingdom and Germany also support family planning commodities and related supplies. The Netherlands is the main donor of condoms to the private sector social marketing program. The European Union provides drugs to treat sexually transmitted diseases, and training through the National AIDS Control Program. The total health sector donor support per annum is approximately $100 million.

Principal Contractors, Grantees or Agencies: Host government; U.S. universities such as: Johns Hopkins University, University of North Carolina, and University of Michigan; U.S. non-government organizations (NGOs): such as CARE, AFRICARE, Pathfinder, Access to Voluntary and Safe Contraception International (AVSC International), Population Services International (PSI), Family Health International (FHI), MACRO International; and a diverse array of Tanzanian NGOs and voluntary agencies.

Selected Performance Measures:

	Baseline (1996)	FY 2000	Target (2003)
Modern method contraceptive use rate among all women age 15 - 49	11.7%	16.2%	20%
Proportion of men who know condom use is a way to avoid AIDS	55%	68%	75%
Percent of service delivery sites with a practitioner trained in reproductive health	59%	69%	80%
Percent of infants less than 6 months exclusively breast-fed	29%	35%	42%

---

ACTIVITY DATA SHEET

PROGRAM: TANZANIA
TITLE AND NUMBER: Foundation Established For Adoption of Environmentally Sustainable Natural Resource Management Practices, 621-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000 $3,800,000 DFA
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2003

Summary: The purpose of this strategic objective is to stem the loss of biodiversity by advancing environmental policies, legislation and improved natural resource management practices in selected areas. Within the context of Tanzania's evolving policy environment in the natural resources sector, four management systems have been identified for assistance: 1) the network of national parks; 2) the national system of game reserves as a second and more widespread network of protected areas; 3) community-based approaches in areas adjacent to protected areas on lands owned by communities and supported by local districts; and 4) coastal resources at both the national and local levels. USAID is implementing the following activities in these four areas. A consortium of the U.S. Department of Interior, Peace Corps, and USAID Partnership for Biodiversity is providing valuable assistance in anti-poaching, tourism promotion, and protected areas management. The World Resources Institute is designing new and innovative wildlife governance systems that will establish economic incentives for community and local government to sustainably manage wildlife resources. Peace Corps volunteers are working directly with communities to identify simple and low-cost conservation measures. The Tanzania Coastal Management Partnership comprised of the GOT, USAID, and University of Rhode Island's Coastal Resources Center is facilitating a participatory and transparent process to unite government and civil society to wisely conserve and develop coastal ecosystems and resources.

USAID's environmental education and communication outreach activities are designed to raise public awareness of targeted issues. An important principle guiding all USAID work is to ensure that a balance is achieved between conservation and production goals and that resource owners and users are able to recoup a fair share of the benefits from resource use. Funding for these USAID-supported activities is channeled mainly through U.S. environmental non-governmental organizations (NGOs) and universities with efforts made to raise the capacity of local NGOs to participate fully in the future. The direct beneficiaries of achievement of this objective include government environmental management institutions and NGOs. The indirect beneficiaries are the people of Tanzania who will benefit from the improved natural resource management practices.

Key Results: Three key intermediate results were considered to be necessary to achieve this objective: 1) a policy framework established for sustainable Natural Resources Management (NRM) resulting in a wildlife conservation and utilization policy, environmental policy, and coastal resources management policy; 2) institutional strengthening and technical capacity for analysis built, particularly those of NGOs, local authorities and Government departments directly involved in the management of natural resources; and 3) practical applications appropriate for NRM identified, tested and implemented in pilot areas.

Performance and Prospects: USAID supports institutional strengthening, policy dialogue, legislative reform, and discrete grass roots activities designed to test approaches to community-based natural resource management. There are several achievements to date: 1) strengthened strategic planning capacity of the country's wildlife institutions which will result in decentralized environmental management and improved resource use; 2) improved donor coordination on key environmental issues which has meant more focused interventions in the sector and avoided duplication of effort; 3) the completion of a comprehensive assessment of the opportunities for linking tourism and the wise and sustainable use of resources which will result in better wildlife conservation and greater income generating opportunities; 4) District and village level organizations are engaged in NRM activities such as restoration of water catchment areas and reforestation; and 5) The development of a General Management Plan for Tarangire has improved wildlife management. USAID works in partnership with the Peace Corps and local communities to introduce soil conservation techniques and identify and increase community benefits resulting from coexistence with wildlife. The Tanzania Coastal Management Partnership has started developing an integrated coastal management policy to address environmental degradation and sustainable use of coastal resources. USAID also supports a linkage project between Sokoine University of Agriculture (SUA) and Tuskegee University (TU). This project has strengthened the capacity of SUA to teach, promote and extend integrated natural resources management practices in 17 villages, improving incomes of about 75,000 low income people.

Possible Adjustments to Plans: While it is recognized that USAID will continue to support the GOT to preserve its unique biodiversity and natural resources, plans are underway to revise the assistance strategy. The purpose of this revision is to improve program management, link more fully conservation of biological diversity with economic opportunities in the wildlife sector, and establish a functional community-based natural resources management strategy that allows participation of Community Based Organizations (CBOs) and other NGOs. The outcome of these revisions should be known by the second quarter of FY 1999.

Other Donor Programs: There are at least 15 donors providing complementary assistance of over $50 million annually in broadly defined areas of environment and natural resources. The top five donors in rank order are: European Union, Germany (GTZ), Netherlands, Denmark (DANIDA) and the United States. The Mission co-chairs a monthly donor focus group on the environment which fosters coordination of activities to avoid duplication and to enhance attainment of results. Donor coordination is good and key government agencies are committed to protecting the country's rich natural resources and the environment.

Principal Contractors, Grantees or Agencies: USAID has built an excellent partnership between U.S. based organizations and host country NGOs to implement its program. Specifically, USAID implements activities with the U.S. Peace Corps, U.S. Fish and Wildlife Service, CARE, Tuskegee University, Sokoine Agriculture University, Colorado State University, University of Rhode Island, African Wildlife Foundation, World Wildlife Fund, World Resources Institute, Management Systems International, International Resources Group, Academy for Educational Development, Environmental Policy and Institutional Strengthening (EPIQ), and a number of host country NGOs and private voluntary organizations.

Selected Performance Measures:

	Baseline	FY 2000	Target
Areas under improved conservation practices adopted in selected zones as a % of total farmed area	0 (1998)	5%	35% (2003)
Percent of Government revenue collection in pilot areas that is shared with local communities	0 (1998)	3%	10% (2003)
Percent of selected communities effectively managing natural resources	0 (1998)	5%	40% (2003)

---

ACTIVITY DATA SHEET

PROGRAM: TANZANIA
TITLE AND NUMBER: Civil Society and Government are More Effective Partners in Governance, 621-S003
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $2,500,000 DFA
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2003

Summary: A study conducted in early 1998 to reassess the status of democratic governance concluded that the transition to a democratic system of governance in Tanzania had slowed compared to the pace in the early part of the 1990s. At the heart of this issue is the finding that the Executive Branch of the Government of Tanzania (GOT) dominates Tanzanian political life and is not balanced with, or checked by, any other countervailing political forces. The net result has been an ineffective form of governance which has been manifested by pervasive corruption, limited provision and poor quality of public services. Citizens and their voluntary organizations have had limited participation in the processes and institutions that define Tanzanian political life. While civil society provides the principal hope for improving the state of democracy and good governance in Tanzania through its demand for political reform, it is also recognized that there are institutions within central and local government that would like to reform. The problem, however, is the lack of interaction between these reformist elements in the government and those in civil society. The purpose of this strategic objective (SO) is to target and support those reformist elements in government units and civil society organizations (CSOs) that will broaden their participation in governance and public policy in order to rekindle the transition process. Direct beneficiaries include targeted government institutions and CSOs. The indirect beneficiaries are the men and women of Tanzania who will benefit from a more responsive government as well as more effective and active representation from CSOs on their behalf.

Key Results: Pursuant to the redesign of the activities in FY 1998, three key intermediate results have been identified as necessary to achieve this objective: (1) Targeted CSOs effectively represent public interests to government on selected issues. CSO capacity will be built in the areas of internal democratic practice, development management and policy advocacy; (2) Targeted government institutions are more responsive to public concerns on selected issues. GOT agencies will be targeted for capacity building assistance which aims at reinforcing a customer service orientation; and (3) The enabling environment supports CSO-government partnership in governance. The mission will closely monitor the legal and regulatory environment reforms in the political system.

Performance and Prospects: Progress has been most notable in implementing Alternative Dispute Resolution (ADR) in the court system, and strengthening the outreach capacity of selected non-governmental Organizations (NGOs) specifically those working on women's legal rights. The focus of the ADR activities remained in Kisutu court, which is one of the largest primary courts in Tanzania. There, the use of ADR became routine with one day set aside each week for ADR settlements, reducing the backlog of cases in the system. It had been planned that 50 cases would be settled by ADR last year but 102 were settled, exceeding our target by 100%. In conjunction with ADR, the use of the case-flow tracking system has improved the service provided by this court. The Chief Justice has noted that not only can he assure better management of cases through this computerized system, but he has a method to curb corruption in the system.

By supporting several workshops, through the distribution of literature and brochures, and with well-organized lobbying campaigns, one of Tanzania's leading women's organizations in conjunction with other groups has raised the level of awareness on the issue of violence against women. Participants in the workshops included ordinary citizens, government officials, police officers, health workers, lawyers, and university professors. As a result of the increased awareness, the issue of sexual violence was discussed more openly than in the past, and newspaper and television reports focused more on the problem. The citizens of Tanzania subsequently left the government with no option but to address this serious problem. On July 1, 1998, the Tanzanian Parliament passed the Sexual Offenses Special Provision Act. Under this act all persons convicted of rape or the sexual defilement of children will be sentenced for life. Such persons will not be entitled to having his/her sentence pardoned. With the passing of this act, it is envisaged that the rate of sexual crimes will fall considerably. To date, press reports confirm that the judicial system is actively implementing this law as several individuals have already been convicted and sentenced.

During an evaluation, it was found that even greater impact could be made if assistance were directed at further strengthening the capacity of targeted government units to provide better service, and to support mechanisms which promoted public dialogue between the government and civil society.

Possible Adjustments to Plans: To address these issues, additional support will be provided to the Judiciary and other GOT units, as well as providing technical assistance to CSOs for institutional capacity building and the strengthening of their advocacy and networking skills. Other donors with larger budgets are working more intensely in the area of civic education and USAID will continue to coordinate with these donors. The design of these assistance programs is ongoing at the present time. The Mission is working with its partners in the GOT and civil society, and with other donors to create activities that will be complementary and have the greatest impact.

Other Donor Programs: The following five donors in rank order are active in the democracy and governance sector: Norway, Sweden, Denmark, Netherlands and Germany. The United States is the smallest donor. The Danish International Aid Agency (DANIDA) is working on improving the legal system through support to the new commercial court; the Netherlands has been involved in improving the capacity of the media and trade unions, and providing civic education awareness training; Germany is also providing support to the media; and Sweden is providing capacity building assistance to the Tanzanian Parliament. Resources directed toward this objective from the GOT and donors is approximately $14 million per annum.

Principal Contractors, Grantees or Agencies: USAID implements activities with host country NGOs but will be soliciting competitively for the involvement of U.S. private voluntary organizations that are interested in implementing some of the new activities.

Selected Performance Measures:

	Baseline	FY 2000	Target (2003)
Number of cases resolved by ADR (per annum)	0 (1995)	200	325
Number of CSO-initiated public policies presented to government that are acted-on	0 (1998)*	3	5
Number of public hearings initiated by government units	0 (1998)*	2	4
Percent of total court cases that go to ADR (per annum)	0 (1998)*	40%	60%
* a survey will be undertaken in the summer of FY 99 to provide baseline data

---

ACTIVITY DATA SHEET

PROGRAM: TANZANIA
TITLE AND NUMBER: Increased Micro and Small Enterprise Participation in the Economy, 621-SOO4
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $3,000,000 DFA
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2003

Summary: In 1995, Tanzania was only beginning to emerge from a centrally planned economy to a modern free market. With no private banks to stimulate investment, scarce opportunities for current and prospective private business owners to obtain business training and advice, and a government bureaucracy still unfriendly to private business, the vast majority of Tanzanians were stifled in their attempts to improve their livelihoods. The purpose of this strategic objective is to increase access by micro and small businesses to financing, business services and management skills within an improved business environment in order to stimulate employment and reduce poverty. The principal beneficiaries will be the 100,000 Tanzanian entrepreneurs who will receive both direct and indirect assistance to improve their management capacity and their access to credit including the Bank of Tanzania, Ministry of Finance, and senior and line civil servants of other arms of government; and business associations. The indirect beneficiaries are the more than 40% of Tanzanians who are unemployed or seasonally underemployed who derive jobs and incomes as a result of an expanding private economy.

Key Results: USAID is addressing a wide range of constraints to private sector development. In order to achieve its objective, four intermediate results are required: 1) Legal and regulatory reforms support new and existing businesses as measured by the average number of months it takes to commence business operations; 2) Provision of sustainable financing to micro and small enterprises; 3) Enhanced micro and small enterprise (MSE) management through the provision of training to a broad audience in each of Tanzania’s 20 regions; and 4) Strengthened business associations by at least quadrupling dues-paying membership in assisted associations within 5 years.

Performance and Prospects: Performance has been as expected in 1998. Tax collection and transparency in the tax process have improved with USAID assistance to help establish a new tax collection agency, the Tanzanian Revenue Authority. The "Investor Roadmap" has identified and continues to successfully implement a series of reforms in customs, immigration and business permits to make commercial and industrial operating procedures more business-friendly. USAID training and technical assistance to the Bank of Tanzania (BOT) has helped make the bank a leader in the reform process. USAID assistance in the financial sector is helping to free the banking sector of state domination and controls while improving oversight of the industry; set out a successful model for venture capital investment; and establish innovative programs for MSE lending. The USAID-financed Business Center (TBC) has trained over 5,000 micro-entrepreneurs and assisted directly over 800 small businesses. The combined result of increased access to finance and to technical know-how has resulted in over 4,000 new jobs and substantial increases in business incomes.

A pilot technical assistance scheme with Tanzania’s largest business association, in cooperation with Sweden’s SIDA, was launched in 1998. It has resulted in increased demand by business associations for specific help in such areas as strategic planning; software for tracking membership data bases; and maximizing income sources for sustainability. Numerous and growing private business associations have broadly acknowledged, for the first time, that this support must enable them, and the private sector as a whole, to operate independently over time to meet the needs of their growing membership, including advocating for public sector reform. With the active support of USAID Tanzania, The Tanzania Private Sector Foundation, was formed in 1998 to carry on this function of supporting the development of sustainable, effective, business associations. USAID is recognized as the leader in private sector development in Tanzania by the government and donors alike.

Possible Adjustments to plans: Many of the activities are winding down after several years of successful implementation. In order to determine the best strategy to continue to move the objective forward, USAID is undertaking several sectoral analyses. Preliminary results indicate that this objective will likely focus more on both urban and rural (agriculture-based) enterprise development as the most effective way to create employment and generate economic growth. USAID's approach to enterprise development must be flexible and responsive to the human, technological (including infrastructure) and capital capacities of the average Tanzanian while simultaneously increasing these capacities. In addition, we anticipate that we will target the agribusiness and mining sectors. USAID is also investigating appropriate interventions to dramatically increase access to micro credit and finance, building upon experience establishing lending programs for MSEs.

Other Donor Programs: Donor coordination in assistance to the private sector is strong. USAID chairs the donor working group on private sector development and its sub-committee on micro-finance. The top five donors in rank order are: The United States, United Kingdom, Netherlands, Denmark and Sweden. Approximately $20 million is provided on annual basis to this sector.

Principal Contractors, Grantees, or Agencies: The program is implemented with the strong participation and leadership of the government as well as local non-governmental organizations. Private companies are important partners as well as beneficiaries. Current U.S. private company partners include Development Alternatives, Inc., as the prime contractor for The Business Center component that terminates in January 31, 1999, and the 8(a) firm of Gardiner, Kamya Associates which is conducting BOT in-country training. The Investor Roadmap was completed under contract to The Services Group.

Selected Performance Measures:

	Baseline (1992)	FY 2000	Target (2003)
Bureau of Statistics estimate of the private sector's contribution to GDP (%)	64%	75%	80%
No. of private financial institutions	0	19	20
Small Business Finance Provided ($US millions)	2.9	26.25	35
New Jobs Created (Formal Sector)	0	4,200	8,000
No. of paid-up members-- Tanzania Chamber of Commerce Industries and Agriculture Targeted Branches	1,014	4,325	9,000

---

ACTIVITY DATA SHEET

PROGRAM: TANZANIA
TITLE AND NUMBER: Rural Roads Improved In a Sustainable Manner, 621-SO05
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $2,800,000 DFA
INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2003

Summary: In 1997, USAID focused its successful regional road program down to the district level, where the responsibility of supporting road maintenance on 60% of the country's road network lies. Rural districts in Tanzania are the hub of agricultural production and home to 80% of the country's population. The selected 20 out of 100 districts have the highest potential for surplus food crop production in the country. Planned road activities in these particular districts are expected to lower transport costs and improve year-round access to markets, thereby enhancing incentives for agricultural production and increasing food security. In 1997, when USAID began work on this focussed objective, none of the 20 districts had a sustainable system of road rehabilitation and maintenance, only 5% of all district road work was contracted out to the private sector and the cost of transport was rising due to the dismal conditions of the roads. One million dollars was disbursed to the GOT for emergency road repair for damages resulting from the El Nino rains. The money was used to repair 25 bridges thus restoring accessibility to the area affected.

The purpose of this activity is to: 1) increase the number of districts where decentralized road rehabilitation and maintenance work is operating in a sustainable manner from none in 1997 to 20 districts in 2003; 2) increase the percentage of district roads rehabilitated/maintained by the private sector from 5% of all district road works in 1997 to 80% in 2003; and 3) reduce the average cost of transport by up to 60% on each road section rehabilitated/maintained under the program through FY 2003. The principal beneficiaries will be the residents in the 20 districts where roads will be improved. Their transport costs will decrease for goods and services. Additionally, over 1,000 Tanzanian contractors and consultants will receive both direct and indirect assistance in the management and execution of road rehabilitation and road maintenance contracts. More broadly, the Tanzanian people will benefit from easier access to markets, schools and health service centers.

Due to the prolonged El-Nino rains and floods throughout Tanzania for a major part of the last year, a substantial number of bridges, culverts and sections of roads were either destroyed or damaged resulting in the disruption of vital transportation on major portions of the country's road network, including roads that were rehabilitated under USAID's rural roads program. As a humanitarian response to this disaster, USAID assisted the GOT in repairing some of the damaged bridges, culverts and road section utilizing $1 million of OFDA funds as well as another $1 million equivalent in local currency from USAID's existing portfolio. Many other donors also responded.

Key Results: The four key intermediate results necessary to achieve the program's strategic objective are: 1) decentralization of road rehabilitation and maintenance systems and activities to the district level; 2) private contractors rehabilitating/maintaining district roads; 3) community involvement in road maintenance increased; and 4) Roads Fund used for district road maintenance. Specific activities to be undertaken include: revising GOT procedures to decentralize road operations to the district level; providing technical assistance, training and limited equipment to build the capacity of the local technical staff to plan, budget, and supervise road contracts; assisting the district offices to establish and follow transparent allocation criteria and procedures in the use of road maintenance funds including transparent tendering and contract award systems; funding actual road maintenance contracts with local private contractors and involving local communities in the maintenance of district roads.

Performance and Prospects: For FY 1998, it was anticipated that: 1) sustainable systems of road maintenance would operate in eight districts; 2) district road works contracted out to the private sector would be 30% of all district road contracts executed; and 3) reduction in the average transport cost of goods on district roads would be 30% to 60%. By the end of FY 1998, sustainable systems have been introduced in five districts, over 60% of all district roads executed were contracted out to the private sector and 40% reduction in the average transport cost of goods was realized. For FY 1999, sustainable systems of road maintenance will operate in nine districts compared to eight as targeted. The 30% of district road network to be contracted out to the private sector as targeted for FY 1999 has been surpassed already and is anticipated to reach 70% - 80% by the end of the FY 1999. Reduction in the average transport cost of goods that was targeted at 30% to 60% for FY 1999 will be measured after the road rehabilitation is completed and an impact survey is undertaken. Based on USAID's eight year experience in this sector, it is believed that this level of transport cost reduction will be attained in FY 1999 and all targets for FY 2000 as shown in the table below will also be attained if not surpassed.

The maintenance and construction of bridges and culverts has also commenced in the five districts with both community and local government participation. Contributions from USAID, communities and local government are in the range of 50%, 25% and 25%, respectively.

Unified donor pressure, led to passage of a Roads Fund Bill by Parliament in November, 1998 which protects the funds for road maintenance and establishes a Roads Fund Board and Road Agency that are both fully accountable and that are expected to operate freely, effectively and efficiently, following commercial principles.

Possible Adjustments to plans: No adjustments are anticipated at this stage.

Other Donor Programs: The top five donors in rank order providing funds for district roads are: The United States, Denmark, Switzerland, United Nations Development Program (UNDP), and World Bank. UNDP, Denmark and Switzerland are assisting the GOT in the rehabilitation and maintenance of roads in 15 of the 100 districts of the country at a combined funding level of $2 million per year. The GOT is providing $3 million per year from the Roads Fund for the maintenance of roads in the 100 districts of the country. All donor road assistance is coordinated through the Integrated Roads Program (IRP), which has proven to be a good forum for donor coordination. Sixteen donors are providing approximately $100 million per year for the government's overall roads program.

Principal Contractors, Grantees, or Agencies: Local private road construction firms, the Ministry of Works (MOW), the Prime Minister's Office (PMO) and various local community groups at the regional and district levels.

Selected Performance Measures:

	Baseline (1997)	FY 2000	Target (2003)
Sustainable system operating in districts	0	12	20 districts
District road works contracted out to private sector as percent of all district roads contracts executed	5%	50%	80%
Reduction in the average transport cost of goods on district roads.	0%	30% - 60%	30% - 60%

---

ACTIVITY DATA SHEET

PROGRAM: TANZANIA
TITLE AND NUMBER: Suffering of Tanzania Bomb Victims Reduced and Local Disaster Response Capacity Enhanced, 621-SPO1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $ 150,000 DFA
INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2001

Summary: This is a program that was created in response to the August 7, 1998 terrorist bombing attack on the U.S. Embassy in Dar es Salaam, Tanzania. As a result of the bombing, $100,000 worth of equipment and supplies were provided to the main government hospital to replenish their stock. This enabled the hospital to continue with their normal operation smoothly. USAID is designing a program to provide humanitarian assistance for bombing victims, to reconstruct damaged infrastructure and to assist Tanzanian institutions and personnel to manage future disasters. Victims of the bombing will be assisted through a grant to Plan International which is undertaking family assessments to determine actual needs. USAID is also reviewing the Ministry of Works (MOW) assessments of damage to infrastructure to establish a basis for reimbursements directly to property owners. In conjunction with the Department of Health and Human Services and USAID's Office of Foreign Disaster Assistance, USAID is designing a program to upgrade the capacity of Tanzanian institutions to cope with disasters.

Key Results: Two key intermediate results that were considered necessary to achieve the program's special objective are: 1) Psycho-social, economic and health impact of bomb blast reduced as indicated by the restoration of damaged properties and settlement of eligible claims. Additionally, hospitals in greater Dar es Salaam are reimbursed for medical expenses incurred because of the bombing; and bomb blast victims receive follow up medical care, counseling and other types of economic assistance; and 2) Preparedness for future disasters enhanced through increasing disaster preparedness and management capability of hospitals and other organizations as well as establishment of a safe and adequate blood transfusion system at selected sites.

Performance and Prospects: It is expected that the first funds will be disbursed to victims early in 1999. Reimbursements for infrastructure repairs will begin as soon as possible after an independent contractor reviews the MOW damage assessments and a firm can be contracted to manage the reimbursements based on property owner receipts and police reports (and reimbursed insurance claims). Finally, USAID will provide equipment, technical assistance and training to the GOT to improve their capacity to respond to future disasters. An initial needs assessment will be performed early in 1999.

Possible Adjustments to Plans: Not anticipated.

Other Donor Programs: The United States ranks first followed by UNDP. Other donors provided symbolic assistance at the time of the bombing. To date, the GOT, Canada, Saudi Arabia, Egypt, Japan, the African Medical and Research Foundation, Algeria, and Nigeria have provided funding and supplies worth approximately $1.7 million to hospitals and for bombing victims. The United Nations Development program is the only other donor currently providing limited disaster preparedness training and technical assistance.

Principal Contractors, Grantees or Agencies: A grant has been signed with Plan International to manage the assistance to victims. A contractor will be hired to manage the funds for reimbursing property owners. Grants or contracts will be signed with contractors or Private Voluntary Organizations to manage the disaster preparedness assistance as well as funds being transferred to the Department of Health and Human Services.

Selected Performance Measures:

	Baseline	FY 2000	Target (2001)
Percent of bomb blast victims with emergency needs met	50% (1998)	95% (1999)	95%
Number of people trained in disaster preparedness skills	50 (1998)	150 (2000)	250
Percent of damaged properties eligible for USG assistance restored	0 (1998)	95% (2000)	95%
Number of hospitals reimbursed and eligible individual claims settled	20% (1998)	100% (2000)	100%
Percent of bomb blast victims with medical and consulting needs met	50% (1999)	95% (2000)	95%
Percent of victims economically disadvantaged by bomb blast assisted	50% (1999)	95% (2000)	95%
Number of personnel who complete training in disaster management	50 (1999)	100 (2000)	200
Percent of hospitals with emergency response in place	0 (1998)	60% (2000)	80%
Safe and adequate blood transfusion systems exist in selected sites	25% (1998)	40% (2000)	60%

:  :  :  :  :  :  :  :  :  :  What's New : FOIA Requests : Privacy Policy : Email This Page : Plug-ins : FAQs : Help Desk : Contact Us : Site Map Last Updated on: July 14, 1999