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 1997 FY 1998 FY 1999 Actuals Estimate Request Child Survival and Disease.......... $ 7,000,000 $ 7,400,000 $ 6,400,000 Development Assistance.............. $10,800,000 $12,300,000 $15,250,000 P.L. 480, Title II........................... --- $ 8,745,700 ---
Introduction
Tanzania stands as a model of multi-ethnic balance in a region racked by turmoil and instability. 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. Tanzania is playing an active role in efforts to resolve the multiple (and costly) crises afflicting the Great Lakes region. The country is rich in natural resources and contains some of the world's most biologically diverse ecosystems. It is in the U.S. interest to continue supporting this key east African country which, despite its limited financial resources, actively champions regional cooperation, has set aside one-fourth of its land in protected areas, promotes private sector-led development, and is committed to democratic governance and a market-driven economy.
The Development Challenge
Tanzania has embarked upon a program of economic and political liberalization designed to resurrect the economy after nearly 30 years of stagnation. Over the past two years, a foundation has been established for sustainable growth and improved human welfare, USAID's twin program goals.
High fertility and high rates of sexually transmitted diseases, including HIV/AIDS, contribute to elevated adult and infant morbidity and mortality in Tanzania. In response, USAID supports training for public and private health providers in family planning (FP), maternal and child health, and HIV/AIDS prevention and control measures; provides contraceptives, equipment and supplies to clinics; and produces and distributes informational materials. 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 family planning services; an increase in proportion of infants exclusively breastfed; and over 180 non-governmental organizations (NGOs) assisted and capacity built to provide AIDS information and services.
Tanzania's substantial network of protected areas (floral and fauna) is not sustainable as currently managed. Adequate authority has not been devolved to the resource users. Consequently, USAID is providing technical assistance, training and commodities to key environmental organizations to arrest the loss of biodiversity. Results include more decentralized environmental management, improved donor coordination and a greater awareness of the economic benefits from strengthened partnerships among tour operators, government and local communities.
The lack of effective participation by citizens in decision-making is a major problem in Tanzania. To strengthen the participation of civil society in the democratic process, USAID works with NGOs to strengthen their ability to advocate for their legal rights, with the courts to speed access to justice, and trains journalists to improve their reporting skills. Results to date include the swift removal of a land rights bill from the parliamentary agenda due to pressure from NGOs to allow for greater public discussion, establishment of an alternative dispute resolution system in the judiciary and more broad-based and analytical news reporting.
Decades of central government control of productive activities left Tanzania with an inadequate and
crumbling infrastructure and a civil service more attuned to servicing state enterprises than regulating a market-based economy. Taxes are high and complicated, there is a lack of access to land and resource tenure rights, and the legal framework is out of date and inappropriate for a private sector-led development strategy. In response, 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 to 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 a more market driven economy, establishing the Tanzania Revenue Authority which has increased revenue collection by 40%, and identifying and resolving procedural bottlenecks stifling the establishment of new firms.
Rural roads in Tanzania are in such poor condition that they constrain the economic growth of the country. The conditions contributing to this include unsustainable institutional and financial structures for the development, operation and maintenance of the road network. The private sector was until recently virtually excluded from provision and maintenance of infrastructure. Hence, USAID provides technical assistance and training to key government and private sector staff which has resulted in new institutional arrangements. These include decentralized road operations to the regional level, adoption of transparent and competitive road contracts with the private sector, and financing road maintenance contracts through locally-generated funds. This has resulted in improved rural roads and a cost effective system for road rehabilitation and repair.
Tanzania's external debt is $7.8 billion of which less than $30 million (including $15 million of commercial debt) is owed to the United States. Almost all Tanzanian bilateral debt owed to the United States (nearly $300 million) was cancelled between 1990 and 1993. USAID estimates that from seven to 20 years (depending upon the sector) will be required before sustainable development systems are in place in Tanzania.
Other Donors
In 1996, the United States provided nearly 4% of total bilateral assistance to Tanzania. USAID's program is closely coordinated with other major bilateral donors which, in 1996, were Japan, United Kingdom, Denmark, Sweden, Norway, and the Netherlands. While the level of U.S. assistance is small, both USAID's contribution in key sectors and USAID's active policy dialogue are highly valued by Tanzanians and have led to significant improvement in Tanzania's enabling environment for private sector-led growth, including health services, road work and business development.
FY 1999 Program
USAID's FY 1999 assistance program will continue to focus on the following priority sectors: health, HIV/AIDS and family planning; environmentally sustainable natural resources management; democratic governance; micro and small enterprise development; and rural roads improvement. Due to a well-established tradition of ongoing dialogue with the Government of Tanzania (GOT) during planning and implementation stages, there continues to be strong government ownership of, and support for, the USAID program and its goals. In fact, USAID's assistance strategy for Tanzania is fully compatible with the GOT's recently articulated Long-Term Development Vision. The objective of the Vision is to ensure that Tanzania attains sustainable human development by striking a careful balance between development objectives, cultural considerations, basic human needs and the preservation of the natural environment for the benefit of current and future generations.
TANZANIA
FY 1999 PROGRAM SUMMARY
(in Thousands of Dollars)
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 & Child Health and HIV/AIDS
Prevention
-CSD
- DA
---
---
6,400
4,100
---
---
---
---
---
---
---
---
6,400
4,100S.O. 2. Foundation Established for Environ. Sustainable Nat. Resources Mgt. Practices - DA
---
---
3,000
---
---
---
3,000
S.O. 3. Foundation for the Transition to Democratic Governance Established
- DA
---
---
---
2,150
---
---
2,150
S.O. 4. Increased Micro/Small Enterprise Participation in the Economy
- DA
3,500
---
---
---
---
---
3,500
S.O. 5.
Rural Roads Improved In a Sustainable Manner
- DA
2,500
---
---
---
---
---
2,500
Totals
- CSD
- DA
---
6,000
6,400
4,100
---
3,000
---
2,150
---
---
---
---
6,400
15,250
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: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $6,400,000 CSD; $4,100,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003
Purpose: To increase knowledge of and access to family planning (FP), Maternal and Child Health (MCH), and Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome (HIV/AIDS) information and services in order to reduce high fertility rates, high risk births, infant mortality, and rising rates of HIV transmission.
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, MCH, and AIDS prevention education and service delivery activities. Results to date include a doubling of modern contraceptive use (from 5.9% to 11.7%) in five years; availability of at least three FP methods at more than 90% of service delivery sites currently offering family planning services; and over 180 NGOs assisting in the provision of AIDS information and 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 29 million, nearly double the anticipated goal for the end of the project which is four years away.
Description: USAID assistance is concentrated in two areas aimed at improving human welfare: (1) family planning and maternal and child health, and (2) prevention, education, counseling and testing for HIV/AIDS. USAID also supports regular research surveys which provide national level data on FP, AIDS, and child survival (CS). Building on success to date, the activities in FY 1999 will continue to focus on these areas.
USAID assistance promotes enhancing client choice of and access to safe, effective FP methods achieved through training personnel (clinic-based and community-level); provision of contraceptives, equipment and supplies to clinics, and to community-based workers/distributors and peer educators; and production and distribution of information, education, and communication materials. Activities in support of CS include service provider training, promotion of sexually transmitted disease (STD) and family planning services, and institution and capacity building of the Ministry of Health and NGO/private sector organizations. Support is also provided for an integrated MCH care delivery system, including the development of integrated training curricula (which incorporates family planning, child survival, reproductive health, and HIV/AIDS components), promotion of breastfeeding, and antenatal care. USAID's program incorporates PVOs that administer CS activities in two regions of Tanzania and focus on reduction of maternal and child morbidity and mortality, improvement of childhood nutrition, control of malaria, provision of family planning and reproductive health services, and implementation of HIV/AIDS and STD interventions.
USAID assistance promotes the establishment and support of an indigenous, community-based approach to AIDS prevention and family support through "networks" or clusters of NGOs which cover approximately 50% of the country. Work sites are targeted for intervention and education activities, since working adults in Tanzania suffer from high rates of HIV infection. Social marketing of condoms and training of NGO personnel in the identification and management of STDs, and provision of targeted sites for HIV counseling and testing are key innovative AIDS prevention interventions.
Sustainability of USAID assistance in the health and population sector will be achieved through the Government of Tanzania's (GOT) 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 greater efforts to enable service sites to manage cost-sharing responsibilities.
Planned activities during FY 1999 include enhanced and expanded NGO activities in the delivery of quality reproductive health services (including STD/HIV/AIDS services); introduction of the female condom as a dual protection method against pregnancy and STD/HIV infection; and social marketing of oral contraceptives.
Host Country and Other Donors: The GOT oversees the FP and AIDS programs and supports recurrent costs for most clinic-based service providers. The United Kingdom, United Nations Children's Fund, the World Bank, Germany and Denmark provide extensive support for child survival interventions, including essential drugs, maternal and child health services, health infrastructure and logistics. USAID and the United Nations Fund for Population Activities are the main donors supporting family planning. The United Kingdom and Germany also support family planning and reproductive health activities. The European Union provides STD drugs and training through the National AIDS Control Program. Total health sector donor contribution over a seven year period is estimated at $250 million. GOT support to the health sector over the same period is $15 million plus physical infrastructure and maintenance.
Beneficiaries: Beneficiaries include 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; and children who benefit from improved MCH and child health services.
Principal Contractors, Grantees or Agencies: Host government, private non-profit companies, U.S. universities such as Johns Hopkins University, University of North Carolina, and University of Michigan, U.S. NGOs, such as CARE, AFRICARE, Pathfinder, Access to Voluntary and Safe Contraception International, Population Services International, The Population Council, Family Health International, and MACRO International, and a diverse array of Tanzanian NGOs.
Major Results Indicators: Baseline Targets (2003) Modern method 5.9%/6.6% (1992) 20%/23% Contraceptive Prevalence Rate among all/currently married women 15-49 Proportion of men who 49% (1994) 90% know using a condom is a way to avoid AIDS Percentage of service 24% (1994) 80% delivery sites with a service provider trained in FP and reproductive health Percentage of infants less than six 22% (1992) 32% months exclusively breast-fed
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 1999: $3,000,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003
Purpose: To stem the loss of biodiversity by advancing environmental policies, legislation and improved natural resource management practices in and around selected protected areas.
USAID Role and Achievements to Date: USAID supports institutional strengthening, policy dialogue, legislative reform, and village-level activities designed to support community-based natural resources management around protected areas with rich biological diversity. Achievements to date include: strengthened strategic planning capacity of the country's wildlife institutions resulting in more decentralized environmental management for enhanced resource use; improved donor coordination on key environmental issues which has meant more focused interventions towards conservation of biodiversity of mangrove ecosystems; and the completion of a comprehensive assessment of the economic opportunities of photographic tourism for communities resulting in better wildlife conservation. USAID works in partnership with the Peace Corps and local communities to introduce soil conservation/land management techniques to increase community benefits resulting from coexistence with wildlife. The Tanzania Coastal Management Partnership has begun development of an integrated coastal management policy to address environmental degradation and sustainable use of coastal resources.
Description: To protect Tanzania's abundant biodiversity in the evolving policy environment in the natural resources sector, four management regimes have been identified for strengthening: 1) the network of National Parks; 2) 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. To achieve this objective, a consortium of the U.S. Department of Interior, Peace Corps, and USAID have formed a Partnership for Biodiversity which is providing assistance in anti-poaching, ecotourism, and protected areas management. It is also designing new and innovative wildlife governance systems that establish economic incentives for community and local government to sustainably manage wildlife resources. The Tanzania Coastal Management Partnership is facilitating a participatory and transparent process to unite government and civil society to wisely conserve and develop coastal ecosystems and resources. 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. U.S. non-governmental organizations (NGOs) and universities are working alongside local NGOs to implement these programs.
Host Country and other Donors: USAID's key partners are the Office for Environment in the Vice President's Office, the Departments of Wildlife and National Parks, both within the Ministry for Natural Resources and Tourism, and at least 15 donor agencies. Together they provide over $50 million annually in broadly defined areas of environment and natural resources. Donors include Denmark, the European Union, the Food and Agriculture Organization, Finland, Germany, Japan, Netherlands, Norway, Sweden, the United Kingdom, United Nations Development Program, and the World Bank. USAID co-chairs a monthly donor focus group on the environment which fosters coordination of activities.
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.
Principal Contractors, Grantees or Agencies: USAID implements activities with the Peace Corps, U.S. Fish and Wildlife Service, CARE, University of Rhode Island, Tuskegee University, Tanzania's Sokoine Agriculture University, African Wildlife Foundation, World Wildlife Fund, World Resources Institute, Management Systems International, International Resources Group, Academy for Educational Development, and host country NGOs.
Major Results Indicators: Baseline Target (1998) (2003) Areas under improved conservation practices in selected zones as a % of total farmed area 0 35% Percent of revenue increases from new and 0 10% improved use of biological resources within reserve or game park (e.g., from tourism and beekeeping) Percent of selected communities effectively 0 40% managing natural resources
ACTIVITY DATA SHEET
PROGRAM: TANZANIA
TITLE AND NUMBER: Foundation for the Transition to Democratic Governance Established, 621-SO03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $2,150,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003
Purpose: To promote and support democratic governance by assisting the Government of Tanzania (GOT) to become more responsive to citizens' needs, and by strengthening civil society to play an increased role in the democratic process.
USAID Role and Achievements to Date: The democratic governance strategic objective (SO) is multi-faceted. In the legal sector, USAID support is targeted at improving access to justice. One way this is being accomplished is through alternative dispute resolution (ADR). Previously it took a minimum of one year for a case to be resolved, whereas in late 1997, through the use of ADR, cases are resolved within four months from the time they are entered into the system. The introduction of a computerized court case flow management system is improving case load management and scheduling. It determines the case backlog, prevents tampering with records, prevents delays in hearing cases as a result of poor scheduling or bribery, and provides a transparent record keeping system. USAID is also providing support to strengthen the freedom of the press by training journalists and encouraging them to network and form professional associations. The number of press clubs in the country has increased from one to 12, thereby providing journalists with a network of organizations to support each other in their profession, particularly with respect to potentially politically sensitive news stories. The percentage of regional news articles appearing in the larger Dar es Salaam-based newspapers has increased from near zero to 37%. Reporting includes much more news analysis. As a result of training and technical support to GOT auditors, progress is being made in the area of accountability and transparency. GOT auditors have completed an audit of a family planning activity in the Ministry of Health, and a roads activity in the Ministry of Works. In addition, the Controller Auditor General (CAG) has taken the initiative of redrafting the Government Auditing Act in order to incorporate performance auditing into the procedures for auditing government ministries.
Description: To achieve the objective of improving access to justice, the following activities are planned: 1) the continued training of magistrates, judges and lawyers in the use of ADR; 2) the implementation of ADR in the new juvenile and commercial courts and in other courts across the country; and 3) the provision of additional computers and training for clerical staff to expand the court cases database for improved tracking and monitoring. Activities to strengthen the freedom of the press include: the continued training of journalists through workshops covering topics such as good governance, investigative reporting, interviewing techniques and economic issues; and encouraging the formation of press clubs to provide a means of networking for journalists within the various regions. Activities are also being implemented to educate the citizens of Tanzania on the principles of democratic governance (DG). Additional civic education centers will be opened in Tanzania to inform citizens of their rights, privileges and responsibilities. Additionally, a civic education curriculum for secondary schools will be developed. By providing institutional support to several women's organizations, the capacity of women throughout the country to hold seminars and workshops on issues of concern is being increased. As a result, more women are knowledgeable about their legal rights. Topics covered at workshops or seminars include: inheritance laws, domestic violence, and female genital mutilation. To improve the accountability and transparency of the GOT, technical assistance is being provided to the Tanzania Revenue Authority (TRA) for the establishment of a tax research and policy unit.
Host Country and Other Donors: The following donors are active in the DG sector: Denmark, Germany, Netherlands, Norway and Sweden. Donors are actively working on improving the legal system through support to the courts and the Attorney General's Office (the United Kingdom (UK) and Nordic countries); in promoting women's development (Netherlands); and improving the capacity of the
law school (UK) and the media (UK, Germany, and Denmark). USAID participates in a donor coordination committee and has assumed the responsibility for maintaining a database of donor supported DG activities. Government and local contributions to the DG effort are substantial. Depending on the year, the amount of funding the Government allocates to DG varies. In 1995, a national election year, the GOT's direct contributions were estimated to be $20 million. In relation to USAID objectives, the GOT supports electoral materials, judicial operations and civic education.
Beneficiaries: Direct beneficiaries include court staff (judges and magistrates) and lawyers, journalists and press clubs, regional libraries, NGOs, and auditors in TRA and CAG. More broadly, the men and women of Tanzania will benefit from a more efficient and effective judicial system, a greater understanding of their civic rights and responsibilities, and a more accountable and transparent government bureaucracy.
Principal Contractors, Grantees or Agencies: USAID implements activities with the United States Information Service and host country NGOs.
Major Results Indicators: Baseline Targets Number of cases resolved by ADR 0 (1995) 50 (1999) Percentage of citizens (male/female) knowledgeable of their legal rights 30/30(1997) 35/35(1998) Percentage of citizens (male/female) demonstrating knowledge of selected democratic governance principles 50/20 (1997) 55/25 (1999) Number of journalists that are members of press clubs 100 (1997) 150 (1999)
ACTIVITY DATA SHEET
PROGRAM: TANZANIA
TITLE AND NUMBER: Increased Micro and Small Enterprise Participation in the Economy, 621-SO04
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $3,500,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003
Purpose: 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.
USAID Role and Achievements to Date: USAID is addressing a wide range of constraints to private sector development. Major reforms have taken place in the financial sector where USAID assistance helped to free the banking sector of state domination and controls, set out a successful model for venture capital investment (creating 500 new jobs to date), and established programs for micro and small enterprise lending. USAID training and technical assistance to the Bank of Tanzania has helped make the bank a leader in the reform process. 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. Policy studies have been a catalyst to a new industrial policy that is making foreign and local investment easier. The "Investor Roadmap" has identified a series of reforms in customs, immigration and business permits to make commercial and industrial operating procedures more business-friendly. Changes to streamline customs have already resulted from the Roadmap exercise. Further changes to improve procedures are in process. The USAID-financed Business Center has trained over 2,000 micro-entrepreneurs and assisted directly over 800 small businesses resulting in 1,325 new jobs and substantial increases in business incomes. USAID is recognized as the leader in private sector development in Tanzania by the government and donors alike.
Description: USAID will continue its work in the private sector but focus more on micro-enterprise development as the most effective way to create employment and economic growth. One focus will be on improving the enabling environment for business development with a priority on micro-enterprises including those in the informal sector. The Investor Roadmap activity to remove or change policy, procedural and regulatory impediments will be continued as well as work on areas specific to micro-enterprises. Policy and procedural change is achieved through funding analytical work, promoting a dialogue between government and business on proposed courses of action and offering, where requested, to help establish policies and procedures.
The second focus will be on identifying and establishing effective micro-business assistance arrangements that work in Tanzania. Non-governmental organization (NGO) spin-off entities from The Business Center and other NGOs will participate in the direct training of small and micro entrepreneurs throughout the country. There is a huge unmet demand for training in basic business skills including how to set up a business, accounting procedures, and basic marketing and advertising. Additionally, some micro-entrepreneurs in promising sectors or areas (e.g. seaweed production and small-scale mining) will receive specialized consulting services to improve management and operations. Direct loan programs through Micro Finance Institutions (MFIs) will also be supported. Group lending and simplified procedures to keep overhead to a minimum will be appropriately tested and developed. NGOs and commercial banks will be participants in the establishment of effective MFI programs.
Business associations in Tanzania remain weak and do not yet articulate their members' concerns and needs for reform and assistance to national decision-makers. Strengthening these associations will give a voice, especially to rural-based businesses and perhaps the informal sector, to ensure that government policy assists rather than constrains private sector growth.
Planned activities during 1999 include a greater focus on micro-enterprise assistance, including financial services and possibly credit. USAID will monitor the start-up of MFIs. Micro-enterprise initiatives may include a Micro-enterprise Center that is flexible and proactive on the full range of micro-enterprise assistance needs. Business associations will receive specific help in strategic planning, software for tracking membership data bases, and maximizing income sources for sustainability.
Host Country and Other Donors: Donor coordination in assistance to the private sector is strong. USAID chairs the donor working group on private sector development. The GOT has placed priority on micro-enterprise development as the best approach to job creation and poverty alleviation. Specific to micro-finance, the Bank of Tanzania and the World Bank organized a multi-donor, micro-finance workshop to establish a national micro-finance policy, an important step in coordination. Other donors, specifically the Netherlands, United Kingdom, and Canada, will be included in the design and funding as appropriate in the micro-enterprise initiatives. USAID will continue to work closely with the Embassy of Sweden in creating a coordinated and complimentary approach to assist the Tanzania Chamber of Commerce, Industry and Agriculture regional branches.
Beneficiaries: The principal beneficiaries will be 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 credit; the Bank of Tanzania's senior staff, and business associations.
Principal Contractors, Grantees, or Agencies: The program is implemented with the strong participation and leadership of the government as well as NGOs and private companies. Local businesses are important partners as well as beneficiaries. U.S. private company partners include Development Alternatives, Inc., Harvey & Co., Inc.; Gardiner Kamya Associates, and International Technology Investments Ltd.
Major Results Indicators: Baseline Target (1999) Estimate of the private sector's contribution to GDP (%) 64% (1992) 72% Number of private sector financial 0 (1992) 18 institutions Value of private sector commercial 324 (1992) 550 loans ($ 000's) New jobs created 0 (1994) 3,000 (USAID related projects) Number of micro/small enterprise 0 (1997) 350 clients receiving credit for first time (USAID related projects)
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 1999: $2,500,000 DA
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2003
Purpose: To establish a sustainable rural roads rehabilitation and maintenance system at the district level in order to increase farmers access to markets, inputs, and social services.
USAID Role and Achievements to Date: USAID has assisted the Government of Tanzania (GOT) to establish sustainable, transparent, institutional, and financial systems for rural road rehabilitation and maintenance at the regional level. USAID now plans to extend these systems down to the districts which have the responsibility of supporting road maintenance on 60% of the country's road network. USAID's rural road rehabilitation and maintenance program at the regional level has reduced transport costs, more than doubled business activities, enabled farm income to increase by 25% and improved access to health services and schools in supported areas. It has also helped create a new private road building and maintenance contracting industry, introduced a more efficient, effective and transparent contracting system and established a user-financed Roads Fund that is assuming an increasing share of the cost of road maintenance. At least 90% of rehabilitation work is now carried out by private contractors, up from just 30% five years ago. Through focused training and technical assistance, the regional engineers of the GOT in all 20 regions of the country have developed the capacity to supervise and manage road contracts effectively and in a transparent manner. In addition, local private contractors and consultants have been instructed on and now use appropriate road technology, such as labor-based methods of road rehabilitation and maintenance.
Description: Technical assistance at the district level will be used to improve institutional and financial systems governing road maintenance. The successful regional level activities will be replicated at the district level in 20 of the 100 districts in the country. Local communities will also be involved and assist in the maintenance of district roads, initially on a cost sharing basis. Rural districts in Tanzania are the hub of agricultural production and home to 80% of the country's population. The selected 20 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. Specific activities to be undertaken include: decentralizing GOT procedures and operations of district roads to district level; providing technical assistance, training and limited equipment to build the capacity of the district staff to plan, budget, and supervise road contracts; assisting the district offices to establish and follow transparent procedures in the use of road maintenance funds; and funding actual district road maintenance contracts.
Host Country and Other Donors: The United Nations Development Program and Denmark have started to assist the GOT in the rehabilitation and maintenance of roads in 10 of the 100 districts of the country at a combined funding level of $1 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 district road assistance is coordinated by the Prime Minister's Office.
Beneficiaries: The principal beneficiaries will be the residents in the 20 districts where roads will be improved and whose 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.
Principal Contractors, Grantees, or Agencies: Local private road construction firms, the Ministry of Works, the Prime Minister's Office and various local community groups at the regional and district levels.
Major Results Indicators: Baseline Target (1997) (1999) Sustainable system operating in districts None 8 districts See footnote 1 District road works contracted out to private sector as percent of all district roads executed 5% 30% Reduction in the average transport cost of goods on district roads 100 40-70% (current cost index) (of baseline cost index)
Footnote: 1Sustainable road maintenance system means decentralized and transparent operations by a well trained staff, private sector involvement, and utilization of locally-generated resources.
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