1. Tanzania Country Strategy Paper 2016-20 African Development Bank Group JUNE 2015

2. Consultations will focus on  ‘Country Strategy Paper’ (CSP): what it is and what it aims to achieve  Previous CSP (2011-15): total approvals and lessons learned  Tanzania’s major opportunities and challenges  Main principles informing the CSP 2016-20  Proposed CSP 2016-20 ‘Areas of Focus’ (Pillars)  CSP 2016-20 Resource Envelope  Next Steps  Discussion 2

3. What is a CSP?  African Development Bank Group business plan that guides its support to its Regional Member Countries – such as the United Republic of Tanzania  Analytic framework for Bank development support modalities and advisory services  Prepared on a 3- to 5-year cycle  Results focused  Indicative & flexible 3

4. Total Approvals during 2011-15 CSP: Sectoral Composition ( UA 697.28m or USD 990.14m ) 4

5. Key lessons from CSP 2011-15 5 Rigorous selectivity in country programing maximizes development impact High project/ programme quality at entry improves implementation and development impact Holistic consideration of the various transport modes (roads, ports, & railway etc) will facilitate interconnectivity, private sector growth and economic transformation Streamlining of central government processes should yield efficiency gains and expedite project/ programme implementation Addressing capacity challenges at the PIU/ coordination levels requires candid assessments of the underlying gaps to inform holistic solutions

6. Tanzania’s key strengths and opportunities 6 Peace and political stabilityTrack record of maintaining macroeconomic stabilityNatural resources and tourism Nascent private sector with significant unexploited potential Strategic geographical location – along ocean with major seaport hub: potential for regional logistics hub

7. Tanzania’s major challenges and weaknesses 7 Low progress towards inclusive growth Infrastructure bottlenecks – notably in transport & energyWeaknesses in public sector governance Vulnerability to climate change Lack of employable skills and skills miss-match

8. Proposed CSP 2016-20 Pillars 8 Economic transformation to inclusive and green growth PILLAR 2: Governance & Accountability PILLAR 1: Infrastructure Development

9. The two proposed pillars focus on … Pillar 1 Transport Roads, railway, ports Energy Generation, transmission, interconnection Cross-cutting issues incl. inclusive growth, gender, green growth Pillar 2 Energy and transport sector governance Public sector institutional and capacity development support Targeted institutional and other support for MSME growth Non-lending activities Technical Assistance Advisory services Knowledge work 9

10. Resource envelope/Financing instruments 10 ADF Last year ADF-13 (2016) ADF-14 (2017-19) 1 st year ADF-15 (2020) PRGs, PCGs NCB ADB (sovereign & non-sovereign) AGTF Africa50 PRGs, PCGs Local currency bonds Other Climate investment financing Trust Funds

11. Processing: next steps 11 June – September 2015 Incorporate feedback from consultations, Management, and Board October 2015 Validation of CSP in Tanzania November 2015 Presentation of CSP to AfDB Group Board for approval

12. Issues for discussion  Have we identified the right areas for Bank intervention?  Any other issues that the Bank needs to consider?  Possible areas for collaborations, in terms of  Co-financing  Joint planning: lending and non-lending activities 12

13. Asante sana 13