DEVELOPMENT COOPERATION FRAMEWORK Presentation by Ministry of Finance 10 December 2013

1. Introduction Tanzania Development Vision 2025 and Zanzibar Vision 2020 aim United Republic of Tanzania (URT) to become a middle income country. This aspiration is reflected in the Tanzania Vision 2025 and Zanzibar Vision 2020 with the objective of attaining among others, high levels of industrialization, competitiveness, quality livelihood, rule of law and having in place a learning society. The Development Cooperation Framework (DCF) outlines Tanzania’s broad development cooperation opportunities and the challenges faced by the country. The DCF will be implemented from 2013/2014 to 2024/25.

Introduction (Cont) It defines the overall objectives and principles surrounding new development partnership as well as commitments by the various parties supporting Tanzania’s Development in the medium term

2. Rationale for Development Cooperation Framework New and emerging development assistance providers; The repercussion of the shift from aid effectiveness to development (Trade and Investment) effectiveness; Inclusion and engagement of private sector through smart Public Private Partnership Dialogue in productive and commercial activities; New implementation framework of development programmes and projects for results (Expire of JAST); Discovery of oil, gas and uranium; and Consistently use and application of Information and Communication Technology (ICT).

3. DCF OBJECTIVE The overall objective of this framework is to contribute to sustainable development and poverty reduction in line with the Tanzania Development Vision 2025 and Zanzibar Vision 2020 by consolidating and coordinating governments and Development Cooperation Partners (DCPs) efforts. It also aims to support Exit Strategy from ODA by strengthening Governments’ capacity to mobilize resources, analyze potential investments opportunities and optimize returns from both regional and international markets.

4. DCF Guiding Principles Ownership. Development Stakeholders should commit to fostering national ownership; Alignment: Aligning all development programmes and projects to National priorities; Use of Country systems: All Development programmes must utilize and strengthen URT country systems including Accounting, Procurement, Auditing and M & E systems; Information on Aid. Development Stakeholders must provide timely and disaggregated information on their assistance; Strengthening Accountability. All parties should promote government leadership in development cooperation management;

DCF Guiding Principles (Cont) Country Knowledge building. Both Government and Development Stakeholders should prioritize and effectively support country knowledge building while focusing on national development priority areas; Aid for Trade: URT recognizes the need for addressing supply side constraints for both domestic and export markets in order to stimulate investments; and Increase Domestic Revenues: URT will continue widening and managing domestic revenue collection in order to reduce aid dependency in medium and long term horizon.

5. Dialogue Dialogue is an essential component of ensuring ownership and accountability in development cooperation. The dialogue among stakeholders will be guided by the following principles:  Government leadership: It must provide leadership at all levels of dialogue;  Inclusiveness: At each level of dialogue, participation of all key stakeholders must be ensured with the view of enhancing ownership, transparency, accountability and sustainability;  Mutual trust and respect: Dialogue must be open, frank, and based on mutual trust and respect ;  Minimize transaction costs: Dialogue must minimize transaction costs through simplification of processes and procedures  Effective information sharing: Information must be shared among stakeholders in a transparent, timely, clear and accessible manner.  Inbuilt monitoring: A joint follow-up mechanisms must be established to assess how the dialogue outputs feed into policy processes.

6. FINANCING INSTRUMENTS AND ARRANGEMENTS Development Stakeholders will continue to support core priority areas of national Development Plans and strategies by providing support through General Budget Support (GBS), Basket Funds (BF), Direct Project Funds (DPF), Public Private Partnership (PPP), Aid for Trade and other development financing instruments; Aid for trade is financial and technical assistance that facilitates the integration of developing countries into global economy through initiatives that expands investments in order to enhance trade. Public private partnerships will serve as vehicle to sourcing financing from the private sector to support implementation of Government development strategy.

7. Monitoring and Evaluation The Development Stakeholders will undertake a joint review. The review will be coordinated by a joint Government- Development Stakeholders Working Group. The Government and Development Stakeholders will jointly commission an Independent Monitoring Group to undertake a mid-term and final assessment of the performance of the Government and Development Stakeholders in implementing the agreed actions, indicators and targets.

8. Roles and Responsibilities DPs will contribute resources to Development priorities that create sustainable development outcomes; Actively participate at various levels of the dialogue and advise the Government and other domestic stakeholders based on an agreed division of labour; facilitate domestic accountability by being transparent in the provision of their development assistance to all domestic stakeholders, by making increasing use of Government systems. DPs are mutually accountable with the Government to domestic stakeholders and to each other for their actions in fulfilling their shared commitments in development co- operation

9.Way forward Stakeholders’ consultations (October – December, 2013) Launching end January, 2014

Thank you for your attention