Tanzania Country Strategy Paper African Development Bank Group JUNE 2015

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

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

Total Approvals during CSP: Sectoral Composition ( UA m or USD m ) 4

Key lessons from CSP 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

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

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

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

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

Resource envelope/Financing instruments 10 ADF Last year ADF-13 (2016) ADF-14 ( ) 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

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

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

Asante sana 13