World Bank Group (WBG) Engagement in Tanzania
The current World Bank (WB) portfolio in Tanzania includes 24 projects funded by the International Development Association (IDA)for a net commitment of $4.2 billion. Key sectors supported by WB projects include transport/ICT (28%), social, urban, rural development (22%), energy (9%), education (8%), social protection (9%), water/sanitation (5%), health/nutrition (5%) and agriculture, finance/markets, trade, governance, and environment/natural resources, which make up about 1-2% of the portfolio for each area. Tanzania also participates in five regional projects supporting transport, energy, environment, health and education, with a total commitment amount of $393 million.
In March 2018, the WB Board of Executive Directors endorsed the new Tanzania Country Partnership Framework 2018-2022 (CPF). The CPF is informed by extensive consultations with a wide range of stakeholders as well as a country opinion survey. Aligned with the priorities identified in Tanzania’s Second Five-Year Development Plan and Zanzibar’s Third Strategy for Growth and Reduction of Poverty, the CPF has three focus areas: (1) enhance productivity and accelerate equitable and sustainable growth, (2) boost human capital and social inclusion, and (3) modernize and improve the efficiency of public institutions.
The CPF2018-2022 represents both continuity with, and enhancement of, the current program and more intensive engagement in priority areas. It will deepen investments in transport, information and communication technology, and energy to support spatial transformation and inclusive growth, and will significantly scale up human capital development. These interventions will address the rural-urban divide and boost the enablers for poverty reduction that affect access to infrastructure, social services and productive jobs. Given the key role of the private sector, the new framework will innovate to maximize access to finance and generate jobs for Tanzania’s development.
International Finance Corporation (IFC)
IFC’s strategy in Tanzania involves proactively developing infrastructure projects through investment and advisory (Public-Private Partnerships) interventions, focusing on power, oil, and transportation. IFC will also work closely with the International Development Association to identify actions to promote more rapid commercialization of agriculture. IFC’s strategy places emphasis on strengthening financial markets, particularly in terms of access to finance for micro and small-medium enterprises. IFC is looking to forge partnerships with local banks aimed at supporting its initiatives in the financial sector with local currency financing, as well as developing products to support the microfinance, small-medium enterprises and housing sectors. IFC seeks to provide advisory services to improve the investment climate through reform programs that cover licensing, regulatory reform and other areas tracked in the Doing Business indicators.
High-quality, consolidated knowledge products facilitated and deepened policy dialogue, and informed design and realization of government programs. These products were used to inform plans for, e.g., tourism-led growth and initiatives related to energy, governance, education, and natural resources.
The Tanzania economic updates have focused on select topics: productive jobs, unlocking the potential of the tourism industry, improving tax performance, and leveraging public private partnerships to finance development.
Under the current CPF, the Bank will continue to use analytics to guide operations. The analytical products will be prepared in close collaboration with the client, taking into consideration counterpart capacity, and knowledge products will use a combination of hands-on technical assistance, impact evaluations, policy notes and broader reports to inform the lending programs and policy dialogue. The Systematic Country Diagnostic, completed in March 2017, has been recognized by a broad range of stakeholders as an important source of knowledge.
lastupdated: Oct 12, 2018