AID COOPERATION FRAMEWORK IN TANZANIA Presentation by Ministry of Finance DPG INDUCTION 21ST OCTOBER 2013

The Presentation Outline 1.Introduction 2.Tanzania Assistance Strategy 3.Joint Assistance Strategy for Tanzania 4.Roadmap to improve development cooperation 5.Achievements 6.Challenges 7.Dialogue Structure 8.Paris Declaration Survey Results 9.The Development Assistance Framework (DAF) 10.Process for DAF Development DPG INDUCTION 21ST OCTOBER 2013

1. Introduction Development Assistance is an important source of public finance for development in Tanzania. Large number of DPs in various sectors of the economy, differing modalities of aid delivery, all present challenges: Multiple procedures, missions and reporting requirements leading to high transaction cost and pressure on the GoT. Inadequate Government ownership in aid management Need recognized for better coordination and management of aid to make it more effective on the ground Since mid-1990s improvements made in aid management and GoT-DP relationship (Helleiner reports), leading to TAS (2002/03 – 2004/05 ) and then JAST (2006/ /11); Roadmap to improve Development Cooperation Tanzania has actively taken part in international initiatives on aid effectiveness (from Marrakech to Busan)

2. Tanzania Assistance Strategy (TAS) TAS implementation /03 – 2004/05 TAS sought to ensure that external resources are transparently and effectively delivered, managed, and accounted for, with the view to speed up achievement of the national development goals TAS Priorities Predictability of External Resources Integration of external resources into the Government budget and Exchequer system Harmonization and rationalization of processes Capacity building for external resource management and aid coordination DPG INDUCTION 21ST OCTOBER 2013

3. Joint Assistance Strategy for Tanzania (JAST) Objective of JAST was to build an effective development partnership in line with national and international commitments to aid effectiveness. JAST priorities Strengthening MTEF projections and integrate all external resources into the Government budget and Exchequer system Establish effective division of labour within Government and among DPs. Harmonise and Rationalise Government and DP processes in line with national calendar of processes DPG INDUCTION 21ST OCTOBER 2013

4. Roadmap to improve Development Cooperation The roadmap focused on three areas for improvement: i.ODA management and aid on budget. ii.Effectiveness of aid modalities. iii.Quality of dialogue, mutual trust and aid architecture. DPG INDUCTION 21ST OCTOBER 2013

5. Achievements Considerable progress has been made in increasing the predictability of external resources, both with regards to availability of information on aid commitments and in terms of more reliable aid disbursements; Improvements in the reflection of ODA, specifically basket and project funds in national budget estimates and exchequer system; Improvement of the capacity of the Government institutions, systems and procedures in budgeting, financial management and reporting; like SBAS, IFMS and AMP; Dialogue Structure is in place and being implemented in some sectors; Division of Labour in Government and DPs; Alignment of DP support to the MKUKUTA and MKUZA; The Independent Monitoring Group (IMG) has continued to the central element of mutual accountability, playing an important role in stimulating dialogue on development cooperation among Government, DPs and NSAs. DPG INDUCTION 21ST OCTOBER 2013

6. Challenges Harmonisation of Development Partners reviews and missions. Existence of multiple/parallel Sector Working Groups for bilateral decision making and financial disbursement procedures. This is evident in basket funding modality. This undermines the use of country systems. In some sectors, the dialogue existing is between DPs and Lead MDAs and not including all MDAs in the sectors and CSOs. Slow progress and even a reversal in trend in some areas of the aid effectiveness agenda. The GBS funding is going down, its process is complicated and is associated with high transaction cost. Challenges in aid management in terms of aid information in the AMP database. DPG INDUCTION 21ST OCTOBER 2013

15 September, 2011National Dialogue Structure9 MKUKUTA-PER Main Working Group MKUKUTA- PER CWG 1 MKUKUTA- PER CWG 2 MKUKUTA- PER CWG 3 MKUKUTA- PER Macro Group Sector ASector BThematic Area A Sector CSector DThematic Area B Thematic Area C MDA DP Non-state actors Sector/thematic area lead MDAs & lead DPs CWG 1 lead MDA & lead DP CWG 2 lead MDA & lead DP CWG 3 lead MDA & lead DP Macro Group lead MDA & lead DP (lead) JOINT COORDINATION GROUP 7. DIALOGUE STRUCTURE

8. Paris Declaration Surveys results (Tanzania performance by indicators)

9. THE DEVELOPMENT ASSISTANCE FRAMEWORK (DAF) Development Assistance Framework is a document that will guide development relationship between GoT and Development stakeholders (DPs, NGO’s, CSO’s, Private sector, foundations, Parliamentarians, Politicians, media and Academicians. DAF follows an expire of the prior document, the Joint Assistance strategy for Tanzania (JAST ) which focused on aid effectiveness bringing engagement mainly between GoT and Donors. DPG INDUCTION 21ST OCTOBER 2013

Why DAF 1.Changing global development and aid architecture 2.Unfinished business in JAST and sustain achievements 3.Busan agreement: from aid effectiveness to development effectiveness 4.Inclusive development cooperation partnership recognising the contribution of CSOs and the private sector DPG INDUCTION 21ST OCTOBER 2013

10.Process for DAF development Drafting done Stakeholders’ consultations (October – November, 2013) Launching end November, 2013 DPG INDUCTION 21ST OCTOBER 2013

Thank you for your attention DPG INDUCTION 21ST OCTOBER 2013