Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
TANZANIA
FY 1998 Development Fund for Africa . . . . . . . . . . . . . . . . . $20,000,000 Introduction.
Tanzania stands at the forefront of multi-ethnic balance in a region racked with turmoil and instability. While neighboring states have either collapsed or are in the process of doing so, Tanzania has remained a model of stability. Politically, Tanzania has progressed from a single party, authoritarian regime with a state-controlled media to a multi-party system with a lively and independent press. Substantial progress has been achieved in economic reform as well, including the elimination of price controls and parastatal divestiture. Tanzania is a long-time friend and ally of the United States and is playing an active role in efforts to resolve the multiple (and costly) crises afflicting the Great Lakes region. Over 250,000 refugees, with influxes continuing daily from Zaire and Burundi, are sheltered on Tanzanian soil at great social and environmental costs. In the past, Tanzania has been an important contributor to various peacekeeping operations throughout the continent and carries an influential voice in African affairs. The country is rich in natural resources and contains some of the world's most biologically diverse ecosystems. It has the potential to become Africa's next success story. It is in the U.S. interest to continue supporting this key African country which, despite its limited financial resources, actively champions regional peace, has set aside one-fourth of its land in protected areas, and has the potential to serve as a model for Africa of the benefits of democratic governance and a market-driven economy.The Development Challenge.
From independence in 1961 until the mid 1980's, the country had a one-party, authoritarian regime committed to a socialist model of economic development. The Constitution was amended in 1992 to end the constitutional supremacy of the governing party. Tanzania held its first ever multi-party presidential election in October 1995, and the ruling party candidate, Benjamin Mkapa, was sworn in as the new president of the United Republic of Tanzania on November 23, 1995.Decades of central government control of productive activities left Tanzania with an inadequate and crumbling infrastructure, an overstaffed and underpaid civil service more attuned to servicing state enterprises than regulating a market-based economy. The nascent private sector was fearful that government would revert to the statist policies of the past. However, Tanzania embarked upon a major economic reform program in 1985 under then President Ali Hassan Mwinyi that decontrolled prices, interest rates and the exchange rate, and eliminated the monopoly positions of state-owned enterprises in manufacturing, trade and marketing. Over 144 state-owned enterprises out of 382 have so far been removed from government control through sale, lease, or liquidation and there are plans to remove an additional 50 firms a year for the next several years. In 1991, private banking was allowed, and there are currently 13 private financial institutions operating in the country. Unfortunately, the Mwinyi administration could not sustain the reform effort; increased corruption and fiscal mismanagement hollowed out the reform process. Donor concern intensified and most cancelled all forms of budget support.
In his first year in office, President Benjamin Mkapa has moved quickly to reinvigorate the reform process and to reestablish fiscal and monetary control. Since the newly established Tanzania Revenue Authority (TRA) began operations on July 1, 1996, monthly tax collections have reached record levels. Based on successful completion of a "shadow" International Monetary Fund (IMF) program, an Enhanced Structural Adjustment Facility (ESAF) was approved in November 1996, thus opening the door for a World Bank Structural Adjustment Credit, and the resumption of donor program support. An added benefit of ESAF approval was the $1.7 billion in Paris Club debt relief granted to Tanzania on January 21, 1997. Tanzania's external debt stood at $7.4 billion at the end of 1995, about 150% of gross domestic product (GDP). Debt service was equivalent to 41.6% of export of goods andservices, and transfers.
Tourism and mining are experiencing rapid growth. A sector with high growth potential is agriculture; only 15% of Tanzania's arable land is cultivated and its many river basins provide ample prospects for increased irrigation and hydroelectric development. A new Sheraton Hotel opened in the capital in October 1995; a U.S. firm, RJ Reynolds, completed its purchase of the state-owned cigarette factory in December 1995; and Coca Cola completed a $35 million expansion of its bottling plant in February 1997. South Africa is becoming Tanzania's largest trading partner and investor. Other foreign investors are taking notice of Tanzania's improving investment climate--an investor forum in November 1996 attracted 264 foreign investors from 38 countries including 13 from the United States; and reportedly netted four contracts and 75 letters of intent, worth $786 million. In his speech delivered at the forum, President Mkapa pledged government's commitment to simplify the tax system and reduce rates, to revise the investment policy act, to make the Investment Promotion Center more transparent and truly a one-stop shop, to revise immigration and labor laws to make them more conducive to private investment, and to reform land tenure. Multilateral and bilateral donors alike are encouraged by the improvement in fiscal discipline and the renewed commitment to improving the enabling environment for substantial private sector participation.
Tanzania, sub-Sahara Africa's 10th largest country, is ranked among the world's five poorest. A 1991 household survey showed that 51% of the population had incomes below the poverty line of $1 per person per day and 42% had incomes of less than $0.75 per day. Its population of 28 million, growing at the rate of 2.8% per year, places tremendous demands on social services, employment creation, and contributes to unsustainable exploitation of the environment. Over 80% of the population is engaged in agriculture, producing 60% of both GDP and exports. The country is well endowed with minerals and multiple agro-ecological zones permit production of a wide variety of agricultural exports. Tanzania's potential is compromised by continuing high rates of infant mortality and growing numbers of Human Immunodeficiency Virus (HIV)-infected people in the most productive age groups. Approximately 5% to 7% of the population are infected with the HIV. By the year 2000, it is estimated that 2.4 million people will be HIV-positive, that there will be 800,000 Acquired Immunodeficiency Syndrome (AIDS) cases, and over one million orphans due to AIDS-related deaths. The infant mortality rate is 92 per 1000 live births and the under five mortality rate is 141 per 1000 live births. Adult literacy is relatively high at 61%, however, primary school enrollment has dropped from nearly 100% in 1979-80 to under 70% currently.
Since the reform program began, the economy has registered annual increases in agriculture and real exports, and overall real economic growth has averaged 4% a year, much better than the previous 20 years, but not yet enough to improve the lives of the average Tanzanian. Even if Tanzania's economic growth were to accelerate to 8% a year, the World Bank estimates that in the year 2000 one-third of the population would still be living below the poverty line. It is therefore not anticipated that Tanzania will make an early exit from reliance on development assistance. Estimates for our individual SOs suggest that a minimum of seven to a maximum of 15 to 20 years will be required before sustainable systems are in place. A concerted and intensified effort to expand the economy through meaningful private sector participation is required to transform Tanzania's great potential into sustained development and lift the poor population out of dire poverty.
Other Donors
In 1995, the United States provided nearly 5% of total bilateral assistance to Tanzania. Other major bilateral donors in 1995 were the Netherlands, Denmark, Japan, Norway, Sweden, United Kingdom, Switzerland, United States, and Finland. The Nordic group of donors (Denmark, Sweden, Norway and Finland) have been the major bilateral donors in Tanzania for the past 30 years. While the level of U.S. assistance is small, both our contribution in key sectors and our active policy dialogue are highly valued by Tanzanians and have led to significant improvement in Tanzania's enabling environment for private sector-led growth over the last four years.FY 1998 Program
USAID has redesigned its country program strategy and has adopted five Strategic Objectives (SOs) to help Tanzania achieve sustainable economic growth and improved human welfare. Due to a well-established tradition of ongoing dialogue with the Government of Tanzania (GOT) during planning and implementation stages, there is strong GOT ownership of, and support for, the USAID program. Additionally, this dialogue ensures that USAID's SOs are consistent with GOT priorities. Our program will build on the progress already achieved and continue our efforts to increase use of family planning and HIV/AIDS services. Due to the importance of the natural resource base to sustainable growth in the country, the Mission will continue supporting natural resource management and expand our role in preserving wildlife. We will help build a strong foundation for the transition to democratic governance. We will continue our work with the private sector, focusing on the enabling environment, the transfer of skills and technology to entrepreneurs and business managers, and strengthened financial markets. Finally, we will help rehabilitate rural and district roads which are essential for supporting rural economic activities and are crucial for building food security in the country, a principal Greater Horn of Africa Initiative (GHAI) objective.Agency Goal: Encouraging Broad-based Economic Growth
Tanzania is richly endowed with natural resources and offers great potential for expanding agriculture, tourism and mining. The country has undertaken major reforms to reverse its decades-long socialist approach to economic development but enormous obstacles persist. This is particularly true for establishing resource tenure rights, creating a legal and regulatory environment supportive of private sector activities, curtailing corruption and restoring accountability. Furthermore, the financial sector is undeveloped and does not perform its essential role of mobilizing savings and allocating them to their most productive use. Basic infrastructure is lacking and stifles the day-to-day operations of businesses. Rural and district roads are in serious disrepair. While Tanzania has great potential for economic advancement, the enabling environment is still nascent.Ongoing USAID 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, 13 private financial institutions 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 which is designed to support new private sector investments and stimulate additional investments through examples and successes. In FY 1998, USAID will continue working with public and private sector entities to reduce the procedural and regulatory bottlenecks inhibiting increased private sector participation in economic development.
USAID's rural road rehabilitation and maintenance program has led to 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 in these areas. It has also helped create 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, up from just 30% five years ago. In FY 1998, USAID will replicate this system to the district level where an even greater impact on food security can be achieved. District level road engineers will be trained in its use for the rehabilitation of District roads.
Strategic Objective 4: Increased Private Sector Participation in the Economy
Strategic Objective 5: Sustainable Roads Improvement System Operating Agency Goal: Stabilizing World Population Growth and Protecting Human Health
Of the total funding requested in FY 1998 for the population and health Agency goal, $4,100,000 is planned for population activities, and $6,900,000 is planned for health activities.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 the 1996 DHS survey shows that the desire for spacing (37%) and limiting (28%) births is consistently high (65%), the actual use of modern family planning methods is low (only 11.7% of all women aged 15-49 are using family planning methods). In response to this high demand and the spread of HIV/AIDS, USAID will train more public and private health providers in Family Planning and HIV/AIDS prevention and control measures; provide contraceptives, equipment and supplies to clinics; and produce and distribute informational materials.
USAID activities have resulted in a doubling of modern contraceptive use (from 6% in 1991 to 11.7% in 1996); availability of at least three family planning methods at approximately 90% of service delivery sites; and mobilization of 150 non-governmental organizations (NGOs) within a unique system of networks to provide a variety of AIDS prevention and family support services. In FY 1998, USAID will continue the use of various media to provide information on AIDS prevention and an innovative program to sell condoms using modern marketing techniques which have resulted in sales of over 23 million, double the anticipated goal.
Strategic Objective 1: Increased Use of Family Planning/Maternal and Child Health (FP/MCH) and HIV/AIDS Preventive Measures Agency Goal: Protecting the Environment
Tanzania is one of the five most biologically diverse countries in Africa. It is home to Ngorongoro Crater, the Serengeti and vast areas of game parks and reserves of profound international significance. It contains Africa's highest mountain (Kilimanjaro) and borders Africa's largest (Victoria) and deepest (Tanganyika) lakes. In recognition of these endowments, some 25% of the country is set aside as protected areas. However, in an agrarian economy like Tanzania, rapid population growth increases the demand on the natural resource base and results in unsustainable exploitation of the environment. Current land use practices in agriculture (including shifting cultivation), livestock raising (free range use), and exploitation of forest products (firewood, charcoal, construction) are degrading the environment. Not only is sustainable development threatened but so is the country's endowment of wildlife resources. Degradation has been further aggravated by the large influx of refugees who have destroyed forests and water catchment areas in their search for firewood.Past USAID assistance has resulted in strengthened institutional capacity of the country's only agricultural university, which has begun applying the results of research to problems identified by rural citizens. In addition, USAID assisted the Wildlife Department to upgrade its planning and policy capacity, resulting in draft management plans for game reserves. In FY 1997, USAID will begin an expanded, concerted program to stem the loss of biological diversity, to combat increased poaching of wildlife, and to start work on the establishment of a policy framework for sustainable coastal management to complement on-going pilot activities financed by other donor organizations. Emphasis is on empowering communities through promotion of improved community-based natural resource management.
Strategic Objective 2: Foundation Established for Adoption of Environmentally Sustainable Natural Resource Management Practices Agency Goal: Building Democracy
Tanzania has long had a government plagued with corruption and economic mismanagement. The first ever multi-party presidential election held in October 1995 ushered in a new government which pledged to eliminate corruption and manage its resources in a more transparent manner. USAID is seeking to harness the energies of individuals, NGOs and the private sector in working together toward achieving these governance objectives.The Mission has supported several democratic governance activities in the past. In the legal sector, USAID is continuing to strengthen the judiciary by assisting in the institution of alternative dispute resolution (ADR) as a means of reducing delay in civil court cases. In a pilot "settlement week," one court in Dar es Salaam reduced its backlog by 16%. USAID support to the new Tanzania Revenue Authority (TRA) contributed to TRA's posting record monthly tax collections. Additionally, 314 journalists have attended USAID-funded media seminars. Not only have journalists' skills improved, but some are requesting that the seminars be replicated at their place of business for their entire staff. The Mission has also worked to upgrade the quality of auditing and accounting, in both the public and private sectors.
Strategic Objective 3: Foundation for the Transition to Democratic Governance Established
TANZANIA
FY 1998 PROGRAM SUMMARY
Encouraging
Broad-based
Economic
Growth
Stabilizing
World Population
Growth &
Protecting
Human
Health
Protecting
the
Environment
Building Democracy
Providing Humanitarian Assistance
TOTALS
USAID Strategic Objectives 1. Increased Use of Family Planning/Maternal and Child Health and HIV/AIDS Preventive Measures - Dev. Fund for Africa
---
11,000,000
---
---
---
11,000,000
2. Foundation Established for Adoption of Environmentally Sustainable Natural Resource Management Practices - Dev. Fund for Africa
---
---
4,000,000
---
---
4,000,000
3. Foundation for the Transition to Democratic Governance established - Dev. Fund for Africa
---
---
---
2,500,000
---
2,500,000
4. Increased Private Sector Participation in the Economy - Dev. Fund for Africa
1,000,000
---
---
---
---
1,000,000
5. Sustainable Roads Improvement System Operating - Dev. Fund for Africa
1,500,000
---
---
---
---
1,500,000
Totals - Dev. Fund for Africa
2,500,000
11,000,000
4,000,000
2,500,000
---
20,000,000
USAID Mission Director: Lucretia Taylor
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: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $11,000,000 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 11.7% of all women use modern FP methods, 65% would either like to space (37%) or limit (28%) 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 the rapid population growth rate and control of the impact of HIV/AIDS will contribute to sustained 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 approximately 90% of service delivery sites; and 120 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 have resulted in sales of over 23 million, double the anticipated goal.
Description: USAID assistance is concentrated in 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, including an integrated family planning/child survival/reproductive health/HIV/AIDS training curricula. 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 cost sharing.
Host Country and Other Donors: The Government of Tanzania oversees the FP and AIDS programs and supports recurrent costs for most clinic-based service providers. The United Kingdom, United Nations Children's Fund (UNICEF), World Bank, Germany and Denmark provide extensive support for child survival interventions (other than child spacing), including essential drugs, maternal and child health services, health infrastructure and logistics. USAID and the United Nations Fund for Population Activities (UNFPA) are the main donors supporting child spacing. The United Kingdom and Germany also support child spacing and reproductive health activities in several districts. The European Union provides STD drugs and training through the National AIDS Control Program.
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. The private sector will receive increased support to enable them to deliver community and clinic-based services (including social marketing for both FP and AIDS control).
Principal Contractors, Grantees or Agencies: Host government, private non-profit companies, U.S. universities--Johns Hopkins University, University of North Carolina, Tulane University and University of Michigan-- and Tanzanian NGOs.
Major Results Indicators: Baseline TargetsModern method Contraceptive Prevalence 11%/13% 1994 20%/23% (2002) Rate among all/currently married women 15-49 Tanzania Knowledge, Attitudes and Practice Survey (TKAPS)
Condom use in most recent sexual encounter 19% women/36% 40%/50% (2002) with non regular partner men (1994 TKAPS)
Percent of high risk births* 58.5% 50% (2002) 1992 Demographic & Health Survey (DHS)
Percent of infants less than four months 32% 42% (2002) exclusively breast-fed 1992 DHS
*defined as a birth to a women who is less than 18 or over 34 years old; or has more than three children; or the birth interval is less than 24 months.
ACTIVITY DATA SHEET
PROGRAM: TANZANIA
TITLE AND NUMBER: Foundation Established For Adoption of Environmentally Sustainable Natural Resource Management Practices, 621-SO02
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $4,000,000 DFA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003
Purpose: To advance environmental policies, legislation and improved natural resource management practices which enhance biodiversity conservation in selected areas.
Background: Tanzania's vast biodiversity, including both fauna and flora, is among the richest in the world and is its greatest asset. 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 the absence of a legal and institutional framework on which to base a long-term strategy for sustainable management of Tanzania's natural resources are resulting in significant loss in its biodiversity. The Government of Tanzania (GOT) and donors are in agreement that the current state of the environment is of high concern. USAID recognized that piecemeal efforts in the sector have had limited impact and need to be replaced by a more focused approach. The result is USAID's strategic objective that focuses on policy reform, institutional development, and testing practical applications in selected areas. A linkage project between Tuskegee University and Tanzania's only agricultural university, Sokoine University of Agriculture (SUA), continues to enhance the capacity of SUA staff to plan, conduct, and monitor more appropriate, applied field-based natural resources management research. With USAID support, the African Wildlife Foundation (AWF) and the World Wildlife Fund (WWF) collaborated to upgrade the planning and policy capacity of the Department of Wildlife, resulting in enhanced stewardship of wildlife. Tanzania has approximately 800 kilometers of coast that is characterized by diverse ecosystems including coral reefs, sea grass beds, sandy beaches, and mangrove forests. The Mission will begin work on Integrated Coastal Management issues to assist the GOT's sustainable coastal development efforts. Our new initiative, the Partnership for Biodiversity, is a joint effort of USAID, the U. S. Department of Interior, and U. S. Peace Corps. This Partnership will provide rigorous, dynamic in-service training in law enforcement for Department of Wildlife and National Parks rangers to combat the increase in poaching activities. Implementation of this anti-poaching initiative will include a mass media campaign to increase civil society's awareness of the tragic long-term consequences of poaching and will be targeted at communities living around protected areas, park management personnel, and selected municipalities.
USAID Role and Achievements to Date: USAID supports 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 strengthened institutional capacity of the country's only agricultural university, which has begun applying the results of research to solving problems identified by rural citizens. As a result of increased faculty training in the United States and an enhanced curriculum with a strong link to Tanzania's small scale agriculture sector, farmers' skills have been improved. Tanzania's Wildlife Department has produced 10 policy and planning documents, five of which have been approved by the GOT and will result in better management of the game reserves. USAID/Tanzania, working with CARE Tanzania, has built capacity at village and district levels to identify, refine and implement feasible natural resource management activities, such as restoration of water catchment areas and reforestation. USAID has also established a partnership with the Peace Corps which will place natural resource management experts in local communities to introduce soil conservation techniques and demonstrate benefits from coexistence with wildlife.
Description: USAID's multi-faceted approach provides: 1) support for the overarching enablingenvironment (i.e. enacting appropriate laws and policies) for sustainable use of natural resources; 2) targeted strengthening of both governmental and non-governmental institutions; 3) broad citizen awareness of the value and finiteness of Tanzania's natural resource base; and 4) help in the adoption of sustainable resource practices by communities in pilot locations. Funding is channeled mainly through U.S. non-governmental 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 and legal/regulatory systems that redress environmental/natural resource abuses.
Host Country and Other Donors: Our key partners are The Planning Commission, the Vice President's Office for Environment, and the Department of Wildlife and the National Parks, both within the Ministry for Natural Resources and Tourism. There are at least 15 donor agencies providing assistance to Tanzania in broadly defined areas of environment and natural resources. These are DANIDA (Denmark), European Union, Food and Agriculture Organization, Finland, GTZ, Irish Aid, JICA (Japan), Netherlands, Norwegian Agency for International Development, Swedish International Development Authority, Overseas Development Agency (United Kingdom), United Nations Development Program, and the World Bank. Assistance is provided to field activities in forestry, irrigation, soil conservation, water resources management, community-based natural resource management in protected areas or buffer zones, research on select biodiversity issues, policy dialogue, and assistance in revising outdated environmental legislation. 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.
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 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 implements activities with the U.S. Peace Corps, U. S. Fish and Wildlife Service, CARE, Tuskegee and Sokoine Universities, African Wildlife Foundation, and several U.S. and host country NGOs.
Major Results Indicators: Baseline TargetAreas under improved conservation 0 (1997) 35% (2002) practices adopted in selected zones as a % of total area Percent revenue increases from 0 (1997) 10% (2002) appropriate practices Percent of selected communities 0 (1997) 40% (2002) effectively managing natural resources
ACTIVITY DATA SHEET
PROGRAM: TANZANIA
TITLE AND NUMBER: Foundation for the Transition to Democratic Governance Established,
621-SO03
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $2,500,000 DFA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To establish a 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 current government must overcome a heavy legacy of corruption, economic mismanagement and one-party socialist thinking to achieve these goals. USAID/Tanzania's Strategic Objective 3 will assist the Government of Tanzania (GOT) in overcoming these constraints.
USAID Role and Achievements to Date: The DG Strategic Objective is multi-faceted. In the legal sector, USAID support is improving access to justice through a variety of activities. One mechanism being used to reduce delay in civil court cases is Alternative Dispute Resolution (ADR). Three pilot projects on ADR were established in 1995 - one each in Dar es Salaam, Arusha and Mwanza. In the Dar es Salaam pilot project, a "Settlement Week" was held in the busiest civil court in Tanzania. As a part of Settlement Week, 12 magistrates and 10 attorneys were trained in the use of ADR, and 78 cases, or 16% of the backlog in the court, were settled. Additionally, 100 cases in that court have recently been transferred to ADR. The Mission is also providing the almost 1,000 magistrates in this country with copies of basic laws which they do not have to enable them to refer to the laws of the country when deciding cases. USAID also supports the media, through funding media seminars on various topics, such as legal reporting and the impact of laws on journalists. Each topic is presented in several cities in Tanzania at the local press clubs. To date, there have been three series of workshops around the country, with 314 media people attending. The impact has been significant as evidenced by attenders requesting that workshops be replicated at their place of business for the entire staff, and press clubs not originally included requesting that workshops be expanded geographically to include them. The Mission also supports measures to increase Government of Tanzania (GOT) accountability and transparency, through assistance to the Tanzania Revenue Authority (TRA) and the Office of the Controller Auditor General (CAG). The TRA became functional on July 1, 1996, and has gotten off to an excellent start with monthly tax collection at record levels. The Mission supports the CAG through activities designed to upgrade the quality of auditing and accounting procedures, and reporting by the CAG staff.
Description: To achieve this objective, assistance has been directed toward: 1) enabling the legal system to serve the public interest effectively and transparently, improving media responsiveness and responsibility, 2) improving GOT accountability and transparency, 3) increasing citizens' understanding and application of DG principles, and 4) improving media responsiveness and enhancing the media's understanding of its responsibility to report accurately. In addition to the activities listed above, all of which are ongoing, USAID will provide support to women's legal rights NGOs and to a pilot activity assisting regional libraries in collecting/stocking publications of regional or local value for professionals and the general public.
Host Country and Other Donors: Major donors active in the DG sector include a World Bank-led consortium (including the Nordic countries, the United Kingdom and Canada) working on improving the legal system through support to the courts and the Attorney General's Office. Donors are also active in promoting women's development (most notably the Netherlands), and improving the capacityof the law school (the UK) and the media (the UK, German NGOs, Denmark, African NGOs). UNDP supports the CAG, and the UK is in the process of implementing a long-term activity to support the CAG. USAID/Tanzania regularly meets with these and other donors to share information and to collaborate on implementation. These meetings may be informal (meeting with a donor agency representative) or formal (the monthly DG donors' meeting). The SO3 team has also established a data base on donor DG activities which has been shared with partners and stakeholders.
Beneficiaries: Direct beneficiaries include court staff trained in ADR, magistrates receiving copies of laws, litigants, journalists, and TRA and CAG staff. More broadly, the Tanzanian people generally will benefit from a more efficient and knowledgeable justice system.
Principal Contractors, Grantees or Agencies: Through a Participating Agency Service Agreement (PASA), U.S. Information Service is implementing the ADR, media workshops, women's legal rights and library activities
Major Results Indicators: Baseline Targets% eligible citizens registered 81 (1995) 90 (2000) to vote, national elections % registered voters voting, 75 (1995) 85 (2000) national elections Disputes resolved by ADR as 0 (1994) 10% (1997) % of cases settled Reduced % spoiled votes, 5 (1994/5) 3% (1997) local/national elections Reduced # electoral petitions 127 (1995) 70 (2000) filed, national elections
ACTIVITY DATA SHEET
PROGRAM: TANZANIA
TITLE AND NUMBER: Increased Private Sector Participation in the Economy, 621-SO04
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $1,000,000
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003
Purpose: To enable the private sector to play a constructive role in achieving sustainable economic development in Tanzania.
Background: Tanzania's economy needs to grow to develop productive jobs for an increasing rural and urban unemployed population. 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 through associations and emphasize rebuilding the newly privatized financial sector.
USAID Role and Achievement to Date: 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 the private sector insurance industry and introduced a completely market-based foreign exchange system. Over the past two years under this SO, 13 private financial institutions have opened. The newly established Business Services Center, and its Advisory Council, have been welcomed as a practical mechanism for resolving technical and marketing problems inhibiting private sector growth, on a fee-for-services basis. We have also assisted in the establishment of Tanzania's first venture capital fund, and a $12 million enterprise trust fund, with a microenterprise capital lending component.
Description: This objective will be accomplished through removing procedural and regulatory impediments to private investment, facilitating private-sector solutions to infrastructure constraints, transferring management skills and technology to small businesses, and strengthening financial markets. Activities include 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 Business Centre in conjunction with the trust fund; 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 new microenterprise project is anticipated to attract other 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 the Bank of Tanzania's Bank Supervision Department, business associations, and the 100,000 Tanzanian entrepreneurs, managers, and business people, who will receive both direct and indirect assistance to improve their management capacity and their access to commercial credit.
Principal Contractors, Grantees, or Agencies: Development Alternatives, Inc., is the prime contractor for 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 Central Bank assistance.
Major Results Indicators: Baseline TargetPrivate sector GDP (%) 64% (1992) 70 (1998)
No. of private sector financial 0 (1992) 15 (2003) institutions Value of Pvt Sector Com'l Loans 324 (1992) 550 (1998) (000's $)
Gap Between Mkt and Official FX 28 (1992) 0 Rates (%)
New Jobs Created (The Business 0 (1994) 2000 Center)
ACTIVITY DATA SHEET
PROGRAM: TANZANIA
TITLE AND NUMBER: Sustainable Roads Improvement System Operating, 621-SO05
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $1,500,000 DFA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003
Purpose: To establish a rural and district roads rehabilitation and maintenance system that operates in a sustainable manner.
Background: Tanzania's rural and district road infrastructure network is in a deplorable state, thereby constraining smallholder farmers' easy access to markets for the goods they produce and the inputs they require. The constraints that led to this condition are related to existing unsustainable institutional and financial structures for the development, execution and maintenance of road infrastructure facilities. The private sector, which has the inherent and proven institutional and financial capability and capacity in road improvement, was virtually excluded from these activities.
USAID Role and Achievements to Date: 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 in these areas. It has also helped create a new private road building and maintenance contracting industry, introduce a more transparent contracting system and establish 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. These achievements will be replicated to the district level under SO5 where a greater impact on food security can be achieved, thus contributing to one of the GHAI's principal objectives.
Description: This objective is being pursued through improving the institutional and financial system governing road maintenance, supporting private-sector solutions to road infrastructure constraints, transferring management skills and technology to small contractors and consultants, decentralizing road rehabilitation and maintenance activities, utilizing the Roads Fund for rural/district road rehabilitation and maintenance, and involving local communities in road maintenance.
Host Country and Other Donors: The USAID program is part of an integrated road program (IRP) that is supported by 16 other donors and the World Bank. Almost all are concentrating on the trunk road network or main highways while USAID is a major player in the rural and district roads. The Government of Tanzania is committed to the IRP.
Beneficiaries: The principal beneficiaries under this SO are over 1,000 Tanzanian contractors and consultants who will receive both direct and indirect assistance in the management and execution of road rehabilitation and road maintenance contracts. More broadly, the Tanzanian people generally will benefit from easier access to markets, schools and health service centers.
Principal Contractors, Grantees, or Agencies: Principal grantees are the GOT and various NGO and community groups at the regional and district levels.
Major Results Indicators: Baseline Target Volume of traffic on rural 30 Vehicles/day (1990) 60 Vehicles/day (1998) roads Rural road works contracted 10% (1990) 90% (1998) by private sector Volume of traffic on district 3 vehicles/day (1996) 6 vehicles/day (1998) roads District road works 2% (1996) 70% (1998) contracted byprivate sector