Agency Goal: Encouraging Broad-based Economic Growth

Since the start of Tanzania's economic reform program in 1985, the country has made significant strides in reversing its decades-long socialist approach to economic development, but enormous obstacles to development still exist. The country has an abundance of natural resources, a diverse but favorable climate, and a developed university network graduating trained personnel. However, fiscal and monetary discipline is lacking, infrastructure is extremely poor or nonexistent, the financial system is woefully underdeveloped, and the legal and regulatory system prevents firms from graduating from the informal to the formal sectors. While Tanzania has great potential to be a leader in Africa for economic advancement, the enabling environment is still not there.

USAID's rural road rehabilitation and maintenance program has reduced transport costs in the rural areas, more than doubled business activities, increased farm income by 25% and improved access to health services and schools. It has also created a new private road building and maintenance contracting industry, introduced a more transparent contracting system and established a user-financed road fund that is assuming an increasing share of the responsibility of program sustainability. At least 90% of rehabilitation work is now carried out by private contractors from just 30% five years ago. The Mission's Tanzania Zambia Railroad Authority project has reduced turn-around time of trains on the 1,800 kms Dar es Salaam to Zambia stretch from 21 days to seven days. Locomotive availability improved from 46% to 76%.

Assistance in restructuring the financial sector has enhanced the technical and managerial skills of the Central Bank and increased its independence, prepared the groundwork for a private sector insurance industry and introduced a completely market-based foreign exchange system. Over the past two years under this SO, eight private banks have opened. The newly established Business Services Center, and its Advisory Council, have been welcomed as a practical approach to resolving technical and marketing problems inhibiting private sector growth, on a fee-for-services basis. We have assisted in the establishment of Tanzania's first venture capital fund, and established a $20 million enterprise trust fund.

Agency Goal: Stabilizing World Population Growth and Protecting Human Health

High fertility (6.3 per woman) and high rates of sexually transmitted diseases, especially HIV/AIDS, contribute to elevated adult and infant morbidity/mortality in Tanzania. AIDS is estimated to be the leading cause of death among the 20 - 45 year old age group. The consequences of poor reproductive health range from the obvious human welfare losses to decreased economic productivity. Increased rates of maternal/infant illness and death profoundly affect the family as a social and economic unit (Tanzanian women are the primary care givers and contribute significantly to the family's income. The resulting strains on already overburdened health, social welfare and other services are enormous. Although demand for family planning is very high (56% of all women aged 15 - 49 would like to limit or space births), only 11.3% of these are using modern contraception. There is increased concern about HIV/AIDS, high awareness of the problem and increased use of condoms, although access is stillproblematic.

Results of USAID activities include a doubling of modern contraceptive use (from six percent to 11.3%) in only three years; availability of at least three family planning methods at most facilities; contraceptives available in 90% of service delivery sites; and mobilization of 106 non-governmental organizations (NGOs) within a unique system of networks to provide a variety of AIDS prevention and family support activities. Use of various media to provide information on AIDS prevention and an innovative program to sell condoms using modern marketing techniques has resulted in sales of over 10 million in less than two years, double the anticipated goal.

Agency Goal: Building Democracy

Tanzania has long had a government plagued with corruption and economic mismanagement. The first- ever, multi-party presidential election was held in October 1995. The new government has pledged to curb corruption and manage its resources in a more transparent manner. USAID's fourth Strategic Objective is designed to harness the energies of individuals, NGOs and the private sector in working together toward democratic governance.

Although this is a new strategic objective, the Mission has supported several democracy/governance activities in the past. In the legal sector, USAID has strengthened the judiciary by assisting in the institution of alternative dispute resolution. The Mission has also worked to upgrade the quality of auditing and accounting, in both the public and private sectors. Finally, the provision of international election observers by USAID enhanced the transparency of Tanzania' first multi-party national elections. The final report issued by these observers will be useful in improving subsequent elections held at all levels of government.

USAID Mission Director: Mark Wentling

PROGRAM: TANZANIA
TITLE AND NUMBER: Strengthening Natural Resources Management Capacity, 621-S001
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997 $5,556,335 DFA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003

Purpose: To foster the adoption of policies, legislation and practices which enhance the ability of Tanzanians to conserve and utilize natural resources in a sustainable manner.

Background: Although Tanzania can boast of setting aside enormous reserves (approximately 25% of the mainland has been designated as protected areas) that contain some of the world's premier tourist attractions, weak institutions, low budgetary support and lack of political will have resulted in considerable encroachment into these areas. Furthermore, current land use practices (farming and livestock production, forest production or extraction, wildlife hunting) are unsustainable. The new government (elected in October 1995) has stated that sustainable use of natural resources will be a priority, and a new office of environment and poverty alleviation has been created in the Vice President's Office. Therefore, the policy environment is positive and supportive of activities under Strategic Objective (SO) 1. These activities include the ongoing Planning and Assessing for Wildlife Management and the Tuskegee-Sokoine University linkage project, both of which have been implemented over five years. New activities include Participatory Environmental Resources Management and Cooperative for American Relief Everywhere (CARE) Kagera Natural Resource Program. These latter two activities have been developed in response to the Government of Tanzania (GOT) requests that efforts be made to stem environmental destruction. Two external constraints that may affect the ability of USAID/Tanzania to achieve the SO are: (1) continued influxes of Burundian and Rwandan refugees which will exert destructive pressure on the environment; and (2) the possible need to respond to natural disasters which might divert resources away from sustainable natural resource management practices.

USAID Role and Achievements to Date: Modest amounts of assistance were provided in this area during the early 1990s, with anticipated increases for the latter half of the decade. USAID's support includes institutional strengthening, policy dialogue and legislative reform, strengthening of Tanzanian planning capacity, and discrete grass-roots activities designed to pilot and test approaches to community-based natural resource management. Achievements to date include strengthening the institutional capacity of the country's only agricultural university, which has begun applying the results of research to problems identified by rural citizens. Tanzania's Wildlife Department has produced ten policies and planning documents, of which five have been approved by the GOT and are in various stages of implementation. USAID has also established a partnership with the Peace Corps to place natural resource management experts in local communities.

Description: USAID's program has a multi-faceted approach which provides: 1) support for the overarching enabling environment (i.e. enacting appropriate laws and policies) for sustainable use of natural resources; 2) targeted strengthening of both governmental and non-governmental institutions; 3) increasing broad citizen awareness of the value and finiteness of Tanzania's natural resource base; and 4) adoption of sustainable resource practices by communities in pilot locations. Funding is channeled mainly through U.S. non-government organizations (NGOs) and universities with efforts being made to raise the capacity of local NGOs to be able to receive funds directly in the future. U.S. Government inter-agency collaboration is enhanced through USAID support to Peace Corps Volunteers who work directly with communities to identify simple and low-cost ways to conserve and productively use land, water, forests, livestock and wildlife resources. An important principle guiding all USAID activities 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. Sustainability is also addressed by supporting the establishment of community-based institutions andlegal/regulatory systems that redress environmental/natural resource abuses.

Host Country and other Donors: The GOT has prepared a number of policies and planning documents for the environment and key sectoral areas. Many of these still need to be revised to ensure consistency across sectors and to be ratified by Parliament. GOT capacity to manage competing demands for natural resources and ensure that use of the environment is sustainable remains at an embryonic stage among the major donors supporting this sector: Overseas Development Agency of the United Kingdom (ODA-UK) supports ecosystem wildlife management; the Netherlands supports environmental sanitation and land use management; Finland supports forestry and land use management; the European Union supports agroforestry; other donors have either supported the preparation of national level policy and planning documents (eg. Swedish International Development Authority, Food and Agriculture Organization (FAO), World Bank) or district and community-based sector-specific projects (e.g. the Netherlands, FAO, Norwegian Agency for International Development, Germany, ODA, SIDA) in areas such as forestry, soil conservation, small-scale irrigation, and community conservation programs for wildlife. Among the 12 donors supporting natural resource management, the United States ranks ninth in terms of annual disbursements. The Mission participates in a monthly donor focus group on the environment which fosters coordination of activities of various donors aimed at improving natural resource management.

Beneficiaries: Over 80% of the country's labor force (about 12 million people) live in rural areas and are involved in agriculture, herding, forest extraction or mining activities. Legislation and policies which support sustainable use of the country's natural resources will benefit over 40% of these residents directly as well as private sector businesses involved in tourism, mining, and marketing of agricultural and forestry products. Visible improvements will be seen in terms of reduced erosion, more productive agriculture, increased benefits from wildlife and forest products and increased income for those communities involved with the pilot activities.

Principal Contractors, Grantees or Agencies: USAID will implement activities through Peace Corps Volunteers, CARE, Tuskegee and Sokoine Universities, African Wildlife Fund, and U.S. and host country NGOs to be determined.

Major Results Indicators:
Baseline Target
Increase in revenue/income 0 (1995) 35% (2002)
Decrease in rate of natural resource decline per 0 (1995) 10% (2002)
annum
Increase in land area managed by communities/user
groups 0 (1995) 40% (2002)
Hectares established under village forest reserves 0 (1995) 3000 (2002)

PROGRAM: TANZANIA
TITLE AND NUMBER: Increased Productive Employment and Income Generating Opportunities, 621-S002
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997 $3,070,870 DFA
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2003

Purpose: To enable Tanzanians to participate more fully in the private sector and to both derive benefits from and contribute to sustainable economic development.

Background: Tanzania's economy needs to grow to develop productive jobs for an increasing rural population and urban unemployed. This strategic objective directly addresses practical impediments to financial and business development and the policy constraints which inhibit private sector growth. Mission efforts provide direct private business support services and emphasize rebuilding of the newly privatized financial sector.

The state of infrastructure in Tanzania is in such poor condition that it severely stifles the day-to-day activities of the population and the overall economic growth of the country. The constraints that led to this state are related to existing unsustainable institutional and financial structures for the development, execution and maintenance of infrastructure facilities. The private sector, which has the inherent and proven institutional and financial capability and capacity for economic growth, was virtually excluded from these activities.

USAID Role and Achievements to Date: USAID's support includes involvement and participation in the following areas: the rehabilitation and maintenance of rural and district roads; the effective and efficient operations of the Tanzania and Zambia Railroad Authority (TAZARA); and rural telecommunications. The rural road rehabilitation and maintenance program has reduced transport costs, more than doubled business activities, increased farm income by 25% and improved access to health services and schools. It has also created a new private road-building and maintenance contracting industry, introduced a more transparent contracting system and established a user-financed road fund that is assuming an increasing share of the responsibility of program sustainability. The TAZARA project has reduced turn-around time of trains on the 1,800 kms Dar es Salaam to Zambia stretch from 21 days to seven days.

Assistance in restructuring the financial sector has enhanced the technical and managerial skills of the Central Bank and increased its independence, prepared the groundwork for a private sector insurance industry and introduced a completely market-based foreign exchange system. Over the past two years under this SO, eight private banks have opened. The newly established Business Services Center, and its Advisory Council, have been welcomed as a practical approach to resolving technical and marketing problems inhibiting private sector growth, on a fee-for-services basis. USAID has also assisted in the establishment of Tanzania's first venture capital fund, and established a $20 million enterprise trust fund.

Description: Attaining this objective will be accomplished through improvements in the enabling environment, supporting private-sector solutions to infrastructure constraints, transferring management skills and technology to small businesses, and strengthening financial markets. Activities include improvement of rural roads, railroad, and rural telecommunications; development and training of business people, both rural and urban; strengthening business associations to function as fora for policy dialogue and change; establishing a microenterprise fund to be operated by the first indigenous Tanzanian bank; and training and technical assistance to the Central Bank to enable it to execute appropriate monetary/fiscal and supervisory/regulatory functions.

Host Country and Other Donors: The road program component is part of an integrated road program that is supported by 16 other donors and the World Bank. The Nordic countries also support TAZARA, the national railway to Zambia. USAID/Tanzania is the recognized lead donor in supporting private sector activities, and the new microenterprise project is anticipated to bring additional donor participation. USAID resources dedicated to financial sector reform are complemented by the International Monetary Fund World Bank, Nordic country programs as well as the Tanzanian Central Bank (Bank of Tanzania).

Beneficiaries: The principal beneficiaries under this SO are Tanzanian women, men and children totalling over 29 million, both urban and rural, whose access to goods and services as well as to viable means of earning a livelihood will be increased; and over 100,000 Tanzanian entrepreneurs, managers, and business people, who will receive both direct and indirect assistance in the management of, and increasing profitability of, their enterprises in addition to facilitating their access to commercial credit.

Principal Contractors, Grantees, or Agencies: Development Alternatives, Inc., is the prime contractor for implementing The Business Center component. Additionally, 8(a) firms - Gardiner Kamya Associates, Harvey and Co. Inc., and International Technology Investments Ltd., - have been utilized in venture capital operations as well as in-country training activities and specific Central Bank assignments.

Major Results Indicators:
Baseline Target
Volume of traffic on rural roads 30 Vehicles/day (1990) 60 Vehicles/day (1998)
Rural road works contracted by 10% (1990) 90% (1998)
private sector
Freight handled by TAZARA 1 million Tons Yr (1987) 1.3 million Tons/Yr (1998)
Private sector GDP (%) 64% (1992) 70 (1998)
No. of private sector financial 0 (1992) 10 (1998)
institutions
Value of pvt sector com'l loans 324 (1992) 550 (1998)
($000s)
Gap between mkt and official FX 28 (1992) 0
rates (%)
Assisted businesses with sales 0 (1994) 125
growth over 25%
New jobs created (The Business 0 (1994) 2000
Center)

PROGRAM: TANZANIA
TITLE AND NUMBER: Increased Use of Family Planning and HIV/AIDS Preventive Measures, 621-S003
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1996, $14,041,879 DFA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003

Purpose: To increase knowledge of and access to family planning (FP) and Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome (HIV/AIDS) information and services.

Background: High fertility of over six births per woman and the spread of HIV/AIDS (5% - 7% of the population is infected) contribute to high infant/adult morbidity and mortality in Tanzania. Although only 11.3% of all women use modern FP methods, 40% would like to limit births. AIDS is attacking the most productive age group (15-45 years), resulting in an enormous strain on the health system and on the social structure. Reduction of fast population growth rate and controlling the impact of HIV/AIDS will contribute to sustainable economic growth.

USAID Role and Achievements to Date: USAID provides commodity, management and technical support to government and non-governmental organizations (NGOs), all of which implement a variety of FP and AIDS prevention education and service delivery activities. Results include a doubling of modern contraceptive use (from 6% to 11.3%) in only three years; availability of at least three FP methods at most facilities; contraceptives available in 90% of service delivery sites; 106 NGOs assisted to provide AIDS information/services. Use of various media to provide information on AIDS prevention and an innovative program to sell condoms using modern marketing techniques has resulted in sales of over 10 million in less than two years, double the anticipated goal.

Description: USAID focuses on two areas: family planning/child spacing and reduction of high risk births; and prevention of HIV/AIDS. Enhancing client choice of and access to safe, effective FP methods is achieved through training personnel (clinic-based and community-level); provision of contraceptives, equipment and supplies to clinics; and informational materials production and distribution. An extensive research agenda provides national level data on FP, AIDS and child survival (CS). Activities in support of CS include health worker training, promotion of sexually transmitted disease (STD) and child spacing services, institution/capacity building of the Ministry of Health and NGO/private sector organizations, and promotion of an integrated maternal child health (MCH) care delivery system. Efforts to stimulate an indigenous, community-based approach to AIDS prevention and family support through "networks" of NGOs working together covers about 50% of the country. Workplaces are targeted, since working adults have high rates of HIV. Social marketing of condoms and training of NGO personnel in the identification and management of STDs are key AIDS prevention interventions. Sustainability will be achieved through host country ability to technically manage the National FP Program on its own; continued host government support of recurrent costs for clinic-based personnel; NGO ability to raise their own funds and implement programs; and a greater emphasis on selling commodities and services.

Host Country and Other Doonors: The Government of Tanzania oversees the FP and AIDS programs and supports recurrent costs for most clinic-based service providers. The private sector will receive increased support for delivery of community and clinic-based services (including social marketing for both FP and AIDS control). The United Kingdom, United Nations Children's Fund, World Bank, Germany and Denmark provide extensive support for child survival interventions (other than child spacing), including essential drugs, maternal and child health, health infrastructure and logistics. USAID and the United Nations Fund for Population Activities are the main donors in child spacing (the UK and possibly Germany have expressed interest in supporting FP activities), while the European Union will provide STD drugs and training.

Beneficiaries: Men and women of reproductive age (50% of the population) who wish to space/limit births, and prevent HIV infection or sexually transmitted diseases. Youths (25% of the population) who are at risk of pregnancy or STDs, and are seeking services from public and private sector providers. Children who benefit from improved MCH and child health services.

Principal Contractors, Grantees or Agencies: Host government, private non-profit companies, John Hopkins University, University of North Carolina, Tulane University, Unversity of Michigan, and Tanzania NGOs.

Major Results Indicators:
Baseline Targets
Modern method Contraceptive Prevalence 11.3/13.4% 1994 13%/15% (1997)
Rate among all/currently married women Tanzania Knowledge,
Attitudes and Practice
Survey (TKAPS)
Condom use in most recent sexual encounter 20% women/36% men 25%/40% (1997)
with non regular partner (1994 TKAPS)

PROGRAM: TANZANIA
TITLE AND NUMBER: Strong Foundation for the Transition to Democratic Governance, 621-S004
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997, $843,597 DFA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003

Purpose: To establish a strong foundation for the transition to democratic governance in Tanzania.

Background: Democratic governance (DG) issues lie at the heart of the Tanzanian development problem. Tanzania requires a government which manages resources well and transparently, and which can harness the energies of individuals, non-governmental organizations (NGOs) and the private sector to use the tremendous natural resources of the country wisely and effectively. The new Mkapa government must overcome a heavy legacy of corruption, economic mismanagement and one-party socialist thinking to achieve these goals. USAID/Tanzania's Strategic Objective 4 will assist the Government of Tanzania (GOT) in overcoming these constraints.

USAID Role and Achievements to Date: This is a new strategic objective that encompasses a new project as well as other activities. While the Mission did not previously have a specific DG strategic objective, USAID has been active in this area for several years. In the legal sector, USAID has strengthened the judiciary by assisting in the institution of alternative dispute resolution. The Mission has also worked to upgrade the quality of auditing and accounting, in both the public and private sectors. Finally, the provision of international election observers by USAID enhanced the transparency of Tanzania's first multi-party national elections. The final report issued by these observers will be useful in improving subsequent elections held at all levels of government.

Description: To achieve this objective, assistance will be directed toward: 1) improving media responsiveness and responsibility, 2) enabling the legal system to serve the public interest effectively and transparently, 3) increasing citizens' understanding and application of DG principles, 4) improving GOT transparency and accountability, and 5) helping political institutions to better perform key representative functions. Specific activities include: 1) media workshops such as the legal system, economics, and the rights of journalists, 2) training the judiciary, attorneys and law students in alternative dispute resolution as a means of improving access to justice, 3) working with indigenous non-governmental organizations (NGOs) and associations to improve their outreach capacity, 4) developing a democracy unit as part of a civic education course to be used in secondary schools, and 5) strengthening the audit capabilities of the Controller Auditor General. Funding for many of the activities is channeled through the United States Information Service (USIS) in Dar es Salaam under a collaborative effort to utilize the strengths of the U.S. Mission to Tanzania in those areas. USAID works directly with the Controller Auditor General, and the association-building activities will be administered by USAID. For instance, local-level natural resources associations will be targeted by one of the Mission's environmental activities.

Host Country and Other Donors: Major donors active in DG include a World Bank-led consortium, United Kingdom (UK), Canada, the Nordic countries) working on the legal and financial systems. Donors are also active in women's development (most notably the Netherlands), improving the capacity of the law school (the UK), and the media (the UK, German NGOs, African NGOs). USAID/Tanzania regularly meets with these and other donors involved in DG to share information and to collaborate on implementation. These meetings may be informal (meeting with a donor agency representative) or formal (the monthly Women in Development meetings attended by all donors active in that area). The host country contribution is in-kind, provided through GOT assistance in the design and implementation of various activities. For example, there were several meetings with representatives of the Ministry of Education and the Institute for Education to discuss the design of the civic education activity, and we will continue to require their assistance during implementation. Additionally, judges and registrars ofmany courts around the country have been consulted frequently in the development of training in alternative dispute resolution, and they will continue to be consulted as the training occurs. The GOT will also donate office space as needed.

Beneficiaries: Democratic governance is achieved when decisions are transparent and are made through some form of a democratic process, and where those in power are held accountable through free and fair elections. A significant part of democratic governance is civil society, which incorporates the idea of citizen participation. Thus, the beneficiaries of the establishment of a strong foundation for the transition to democratic governance in Tanzania include all Tanzanians.

Principal Contractors: Through a Participating Agency Service Agreement, USIS will implement several of the activities under this SO, as noted above.

Major Results Indicators: With the exception of the Controller Audit General activity, Strategic Objective Four is composed of new activities and has not yet been implemented fully. The Mission is currently in the process of developing impact indicators.

Indicator (baseline year):
Baseline Targets
Percent eligible citizens registered to vote, 81 (1995) TBD (2000)
national elections
Percent registered voters voting, national 75 (1995) TBD (2000)
elections
Disputes resolved by ADR as % of cases 0 (1994) TBD (1997)
settled
Reduced % spoiled votes, local/national 5 (1994/5) TBD (1997)
Reduced number electoral petitions filed, 127 (1995) TBD (2000)
national elections