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).