Books:

Studies:

 

 

Books

Learning from Resilience Strategies in Tanzania: An outlook of International Development Challenges

Edited by Pascaline Gaborit & Olomi Donath.

Tanzania has been considered a model for development, peace, and stability despite the arrival of refugees from neighbouring countries and the potential tensions related to climate change. Although it has accessed the rank of middle-income country, Tanzania still faces several challenges, particularly in the wake of the Covid-19 pandemic. The book aims at analyzing these challenges as well as the country’s successes through a multi-disciplinary approach considering economic perspectives as well as conflict prevention, dialogue integration, climate change adaptation, forests’ protection, and social perspectives – especially relating to women and girls. The current Covid situation has shaken the whole world and raised many questions on how the different regions and countries could adapt and develop resilience strategies in an uncertain and ever-changing context. Therefore, the book is not only about Tanzania but also about what we can learn from the research on Tanzania in terms of vulnerabilities and resilience strategies. This book is an outlook of International Development Challenges.

This book is co-funded by the European Union in the framework of the project Pilot 4 Research and Dialogue.

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Cite as: Gaborit, Pascaline, Donath, Olomi. Learning from Resilience Strategies in Tanzania, (Bruxelles, Belgium: Peter Lang Verlag, 2021) accessed Nov 21, 2021, https://www.peterlang.com/document/1152350

Promoting Dialogue on Economic and Fiscal Policy in Tanzania: A Handbook for Practitioners

Edited by Bram J. De Smet.

This handbook serves as a guide for practitioners who engage in dialogue on fiscal and economic policies in Tanzania. It focuses on the dialogue that was conducted within the frame of the Pilot 4 Research and Development project, which aimed to promote dialogue on economic and fiscal governance in Tanzania, and which created a platform for sustainable dialogue including public and private stakeholders from different Tanzanian regions. This handbook is based on the three studies and nine policy briefs that were published, as well as on the dialogue that took place between the various stakeholders during the seven consultation events that were organized during the project.
The Pilot 4 Research and Development project (2019-2021) was run by PILOT4DEV and the Institute of Management and Entrepreneurship Development in Tanzania, under the lead of the Tampere Peace Research Institute (TAPRI, Tampere University, Finland). The project was co-funded by the European Union.

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Studies

Study 1: “Macroeconomic policies and Fiscal Reforms in Tanzania: Positive Developments”

Published: 21 April 2021

The main goal of this report is to present findings of the interim review which sought to perform an in-depth analysis of the macroeconomic and fiscal reforms in Tanzania amid the implementation of the second FYDP II (2015/16-2020/21). The study explores the current situation in relation to the implementation of the right and adequate macroeconomic and fiscal policies/reforms. In doing so, this report highlights three key areas that inform macro-financial performance of the Tanzanian economy, focusing on achievements and vulnerabilities. The report also suggests ways to deal with these issues particularly through policy dialogues. These broad areas are: monetary banking sector performance; fiscal and budgetary framework; and the external sector performance. Accordingly, the review team examines the main assumptions and drivers behind the macroeconomic and fiscal reforms made at midterm in order to analyze the main achievements and gaps in the implementation framework.

This study builds on a review of relevant documents and research. Evidence assessed during the review process includes national surveys and reports, sector reports, annual reports from different stakeholders, studies and information issued from the World Bank, IMF databases and different FYDP reports. Apart from that, for triangulation purposes, the review team made field visits in the regions of Mwanza, Shinyanga, Moshi, Dodoma and Dar es salaam to check on reliability and consistency of the secondary data and reports.

Policy Brief 1 – “Two Decades of Reforms in the Mining Sector in Tanzania: A Way Forward” (12 March 2021)

Key Findings:
While large mining companies are mainly aggrieved by tax reforms, the Artisanal and Small-scale Miners (ASM) are currently constrained by numerous taxes, high costs of formalization, inaccessibility of loans, ban in exportation of raw minerals, too high research costs, high license costs, and a lack of advanced technology for mining activities. Because of a lack of education and traditionally influenced legal constraints to owning or inheriting land and mineral rights, most women in the mining sector end up operating unregistered, particularly in informal activities.

Policy Brief 2 – “Localizing Sustainable Development Goals (SDGs) in Tanzania: Redefining Responsibilities” (17 March 2021)

Key Findings:
There is a shared understanding among stakeholders in Tanzania of the urgency of addressing the many socioeconomic and environmental issues standing in the way of sustainable development. A crucial step in achieving this was the adoption of the United Nations (UN) Sustainable Development Goals (SDGs). To ensure the development of a sustainability and inclusive economy, the government has taken several steps to localize the SDGs and create awareness of these goals among key stakeholders. Despite that, the sense of ownership of the SDGs within the political arena is still limited.
Based on primary and secondary data, this brief concludes that the government officials, CSOs/NGOs and other key stakeholders are aware of the SDGs and have aligned their policies and frameworks (such as the Five Year Development Plan (FYDP)) with the SDGs. However, at community level, awareness of SDGs is very low and mainly confined to elites. Moreover, localization and attainment of SDGs are faced with many challenges including lack of localized action plans, weak partnership and collaboration between key partners, as well as limited human and financial resources. In addition to that, the study found that monitoring and evaluation of SDGs at the local level is critical but limited by a lack of up-to-date data and limited skills in monitoring, evaluation and reporting of SDGs.

Policy Brief 3 – “Empowering Tanzanian Youths in Agribusiness: Lessons from the SUGECO Model” (29 April 2021)

Key Findings:
For the past two decades, there has been a great deal of effort to engage youths in agribusiness in Tanzania. Despite these efforts, to date, the level of successful youth involvement in agribusiness is still low. A survey made by the review team in five regions of Shinyanga, Mwanza, Moshi, Dodoma and Dar es salaam shows that youths are still constrained by a lack of access to market information, capital and land, as well as inadequate skills. More specifically, a major challenge for those that do engage is to maintain a marketable quality of the agribusiness products.
Moreover, the main gaps in the current interventions to engage youths in agribusiness include: (i) a focus by stakeholders on technical training in agricultural production while overlooking other capacity building aspects such as business skills, mindset change and monitoring and evaluations of agribusiness; and (ii) ineffective methods of identifying appropriate youths for agribusiness projects.
This policy brief uses a case study of SUGECO’s project titled “Youth Special Incentive Schemes in Agribusiness in Tanzania (2014-2019)” to advocate for an effective model of engaging youths in agribusiness. The project was financed by BEST-Dialogue and most of the information for this brief is based on the end-of-project evaluation report.
The popular model involves five phases which are as follows: (a) changing mindset; (b) technical capacity building including an understanding of the entire value chain; (c) entrepreneurship and business planning; (d) internship and apprenticeship attachments; (e) and incubation. The model has led to 10,000 capacity building actions, around 5,000 successful agribusiness start-ups, and more than 15,000 new and decent jobs over a period of three years. This is equivalent to a total annual income of Tshs. 60 billion (approx. USD 30m).

               

Study 2: “Tanzania’s Fiscal Governance, Budget Needs and Public Expenditure with an Analysis on Inequalities and Trust”

Published: 29 October 2021

The government’s budget is an important tool for the implementation of policy decisions to achieve social and economic objectives. It allocates resources among different needs and priorities in order to bring economic stability and growth. It is a tool used to connect fiscal governance, budget needs and expenditure management to achieve the Sustainable Development Goals (SDGs), including those related to inclusivity and trust. Indeed, it is broadly agreed that inequalities undermine sustainable development, hence the inclusion of the fight against inequalities in the SDGs.

A good governance would rely on an accountability and transparency over distributions of public resources. This study was meant to provide an in-depth and detailed analysis of Tanzania’s inclusiveness of the budgeting process and a critical review of the process. The study focused on assessing the transparency and the accountability of the government budget process with a specific analysis of inequalities and trust. The study used the budgetary framework process to show how different stakeholders are engaged in the budgeting process. Youth, women, private sector, development partners, and members of parliament were used to demonstrate their engagement and participation in the budgetary process. The study also assessed the budgetary alignment with the national long, medium, and annual plans. From the desk reviews and the field data analysis, the findings brought up interesting information and inputs for policy, decision makers and other stakeholders.

Policy Brief 1 – “Youth Engagement in the Budgeting Process: Our Voices or Void” (20 August 2021)

Key Findings:
There is very limited awareness, interest, participation, and inclusivity of youth in the budgeting process
Existing structured mechanisms such as local government youth empowerment funds which provide group loans for youth, women, and people with disabilities, do not cater for the needs on the ground, especially supporting individual initiatives/ideas
There is low level of trust on the structures and government organs which are responsible for budget approval and M&E on behalf of the citizens, e.g. Parliament and CAG office
Low satisfaction with the laws, regulations, and guidelines designed to re-enforce accountability in the budget cycle
Youth friendly communication channels are not used to increase their participation in the budgeting process
Lessons from Kenya and Vietnam suggest that youth-led campaigns, series of youth workshops, LGAs actively advertising on call for youth inputs, community-centred activities by the LGAs, and engaging youth in designing the solutions for addressing the participation challenge can be effective strategies in motivating and realising young engagement in public affairs including the budget process.

Policy Brief 2 – “Women Inclusion in the Budgeting Process: Comparison of Effectiveness of Women Networks and Dialogue Platforms” (10 September 2021)

Key Findings:
There is low understanding, participation and inclusivity of women dialogue platforms, networks, associations and groups in the budgeting process. Women living in rural areas participate, and are more aware of the budget process than those living in townships and urban areas. Platforms/networks connected with or established by the government are more effective than those operating without a connection to the government and national level apex dialogue platforms. There is weak accountability of the budget process in terms of planning, approval, execution and monitoring. Women agenda is not featured or mainstreamed in the national dialogue platforms agenda, their voices are not heard. There is no clear women dialogue structure for women representation, hence it limits collaboration, coalitions, and cooperation to develop a common women agenda and forge partnerships and strategic alliances. Dialogue platforms and networks as institutions lack good management systems, financial and human resource capacity. Women platforms/networks representatives/staff lack the capacity to analyze and integrate women issues with other economic activities and this limits their ability to build a case on facts.

Policy Brief 3 – “Is Tanzania’s Agriculture Budget Aligned with the Country’s Development Plans?” (6 October 2021)

Key Findings:
There is alignment between the agriculture priority interventions under the Five-Year Development Plan (FYDP), and the budget and program. Between 2016/17 and 2020/21 the budget allocation for the agricultural sector declined by 70%. The share of the agriculture budget declined from 5.28% to 1.32% in the past five years and remained significantly lower than the amounts agreed in the Maputo and Malabo declaration stating a target of 10%. In the last three years, a resource gap was observed of 15 to 21% from the public sector to support the FYDP agriculture-based intervention. Between 2018/19 and 2020/21, the Agricultural Sector Development Program Phase II (ASDP II) has remained underfunded.
A resource gap was observed during the same period (from 74.7 to 76.7%).

Study 3: “Macroeconomic Policies, Foreign Direct Investment and Emerging Economic Sectors in Tanzania”

Published: 2 December 2021

The purpose of the report is to present findings on a study on the effect of macroeconomic policies on emerging sectors in Tanzania. This entailed conducting an in-depth analysis of the effect of macroeconomic policies on Foreign Direct Investment (FDI), regional integration, and emerging sectors of the horticulture, digitalization and the green economy of Tanzania (see Figure 1.1 below). The aim was to document main achievements, best practices and lessons learned. This study was largely be built on a review of relevant documents and researches including national surveys and reports, sector reports, annual reports from different stakeholders, studies and information issued from the World Bank, Bank of Tanzania (BOT), Tanzania Revenue Authority (TRA), Ministry of Finance and Planning (MoFP) and National Bureau of Statics (NBS) survey reports. Apart from that, the study team made field visits to check on the reliability and consistency of the secondary data and reports and obtain additional/updated information. In the field, Key Informant Interviews (KIIs) were conducted with stakeholders from the central and local government in Dodoma region, TRA, the National Bureau of Statistics (NBS), and private sector representatives such as the Tanzania Chamber of Commerce, Industry and Trade (TCCIA). Apart from that, surveys and Focus Group Discussions (FGDs) with horticulture farmers in Iringa and Arusha regions, manufacturers, and SMEs, including women and youths in Dar es Salaam and Mwanza regions were also conducted.

Policy Brief 1 – “Challenges with Competitiveness of Horticulture in Tanzania” (2 November 2021)

Key Findings:
The growing demand of fruits and vegetables in the global market has created a great export opportunity for the Tanzania’s horticulture subsector which has a great potential to expand and contribute to the improvement of local economy.
Exploitation of such potential is however constrained by uncompetitive tax structure; unstable supply chains characterized by weak market linkages; lack of consistency in delivery of quality products; lack of coordination between institutions; poor logistics; and inadequate extension services.
To harness Tanzania’ horticulture potential and increase international competitiveness, there is a need to revise the tax structure; improve logistics procedures; improve standards of produce; and promote digitalization.

Policy Brief 2 – “Tax Policies and Foreign Direct Investment in Tanzania” (29 October 2021)

Key Findings:
The study analyzed the role and impact of tax policy in attracting and sustaining the level of FDI in Tanzania. Findings conclude that tax incentives could have a significant impact on FDI both in short term and long term. There have been persistent problems with the implementation and enforcement of tax policies, and with the interpretation of decisions that are taken at central level. As a consequence measures fail to be enforced uniformly further down the line. Therefore
lowering/reducing taxes is an economic policy instrument that can attract more FDI in Tanzania. For tax policy to be effective in attracting FDI however, and to bring in spillover effects, the government should focus most of all on reducing production costs, improving the business environment, and on ensuring political and macroeconomic stability. These are the most important factors affecting FDI decisions to Tanzania. Moreover, it was found that, when comparing the range of economic sectors most likely to receive FDI, agriculture, mining and real estate appear to be the most sensitive to (changes or instability in) tax policies. Therefore, reducing the amount and/or number of taxes is a policy instrument that can attract more FDI in Tanzania, with stability in policy as a key element in FDI decision making.
Exempting foreign investors from domestic tax avoids a possible tax impediment for these firms when competing in foreign markets with other investors who have tax incentives advantages in their respective host countries.

Policy Brief 3 – “Promoting Green Economy in Tanzania: A Pathway to Sustainable Development” (17 November 2021)

Key Findings:
A need to formulate a comprehensive and practical Green Economy Policy and strategies to implement existing policies relating to the environment and the green economy. Since Extractive Industries Transparency Initiative (EITI) promotes the utilization of natural resources for sustainable development, the initiative should be replicated in other sectors such as manufacturing and agriculture. The promotion of ecotourism will add more value to the sector as evidence shows that global spending on ecotourism is increasing at a higher rate than the industry-wide average growth. Environmental and green economy regulations should be clarified to MSMEs to stimulate the adoption of green practices by these institutions which account for more than 90% of the country’s business profile.
If young people are provided with the right training schemes to work in the conservation programs (both land and marine), more jobs will be created and inclusive resource management will be enhanced. There is a need to increase advocacy programmes to promote the green economy and green growth agenda among the public and marginalized groups particularly women and youths.