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									        UNITED REPUBLIC OF TANZANIA




MKUKUTA ANNUAL IMPLEMENTATION
         REPORT 2009/10

 "Taking stock of achievements and challenges over the last five years"




                           FINAL DRAFT




     MINISTRY OF FINANCE AND ECONOMIC AFFAIRS




                           November, 2010
                                                                  Table of Contents

Table of Contents ..................................................................................................................................... i
Preface .................................................................................................................................................... iii
ACRONYMS ......................................................................................................................................... iv
EXECUTIVE SUMMARY .................................................................................................................. viii
CHAPTER ONE...................................................................................................................................... 1
BACKGROUND ..................................................................................................................................... 1
   1.1. Introduction ................................................................................................................................. 1
   1.2. The Purpose, Objectives and Use of the Report .......................................................................... 1
   1.3. Coordination MAIR Preparation ................................................................................................. 1
   1.4. Scope and limitations of the report .............................................................................................. 1
CHAPTER TWO..................................................................................................................................... 3
GROWTH AND REDUCTION OF INCOME POVERTY.................................................................... 3
   2.1 Introduction .................................................................................................................................. 3
   2.2. Performance ................................................................................................................................. 3
      Goal 1: Ensuring Sound Economic Management .......................................................................... 3
      Goal 2: Promoting Sustainable and Broad Based Growth ............................................................. 8
      Goal 3: Improved Food Availability and Accessibility at Household Level in Urban and Rural
      Areas ............................................................................................................................................ 17
      Goal 4 & 5: Reducing Income Poverty (Urban and Rural) .......................................................... 20
      Goal 6: Provision of Reliable and Affordable Energy to Consumers .......................................... 21
   2.3. Progress Related to Relevant Programmes and Reform Processes ........................................... 25
   2.4. Challenges and the Next Steps .................................................................................................. 29
CHAPTER THREE: .............................................................................................................................. 32
IMPROVED QUALITY OF LIFE AND SOCIAL WELLBEING....................................................... 32
   3.1. Introduction ............................................................................................................................... 32
   3.2 Performance ................................................................................................................................ 32
      Goal 1: Equitable access to quality primary and secondary education for boys and girls ........... 32
      Goal 2: Improved survival, health and well -being of all children and women ........................... 37
      Goal 3: Access to clean, affordable and safe water, sanitation, decent shelter ............................ 42
      Goal 4: Adequate social protection and rights of the vulnerable and needy groups with basic
      needs and services ........................................................................................................................ 46
   3.3. Status and Progress in Sector Review........................................................................................ 50
      3.3.1. Education Sector Review ................................................................................................... 50
      3.3.2. Health Sector Review......................................................................................................... 50
      3.3.3 Water Sector Review .......................................................................................................... 51
   3.4. Challenges and Lessons Learned ............................................................................................... 52
   3.5.      Key issues, priorities and the next steps. ............................................................................. 52
CHAPTER FOUR: ................................................................................................................................ 53
GOVERNANCE AND ACCOUNTABILITY...................................................................................... 53
   4.1. Overview ................................................................................................................................... 53
   4.2 Performance ................................................................................................................................ 53
      Goal 1: Structures and systems of governance as well as the rule of law .................................... 53
      Goal 2: Equitable allocation of public resources with corruption effectively addressed ............. 57
      Goal 3: Effective public service framework in place to provide foundation for service delivery
      improvements and poverty reduction ........................................................................................... 62
      Goal 4: Rights of the poor and vulnerable groups are protected and promoted in the justice
      system .......................................................................................................................................... 64
      Goal 5: Reduction of Political and Social Exclusion and Intolerance ......................................... 65
      Goal 6: Improved personal and material securities reduced crime, eliminate sexual abuse and
      domestic violence......................................................................................................................... 67
      Goal 7: National cultural identities enhanced and promoted ....................................................... 68
   4.3. Status and progress of reforms .................................................................................................. 69
     4.3.1. Public Service Reform Programme (PSRP) ....................................................................... 69
     4.3.2. Local Government Reform Programme (LGRP) ............................................................... 70
     4.3.3. Legal Sector Reform Programme (LSRP) ......................................................................... 71
     4.3.4. National Anti-Corruption Strategy and Action Plan (NACSAP)....................................... 72
     4.3.5. Public Financial management Reform Programme (PFMRP) ........................................... 73
  4.5. Challenges, Lessons Lerned, and the Next Steps ...................................................................... 74
CHAPTER FIVE ................................................................................................................................... 75
MKUKUTA FINANCING.................................................................................................................... 75
  5.1. Introduction ............................................................................................................................... 75
  5.2. Budget Preparation and Execution Tools .................................................................................. 76
  5.3. Resource Mobilisation ............................................................................................................... 76
     5.3.1 Domestic resource mobilisation .......................................................................................... 77
     5.3.2 External resources mobilization .......................................................................................... 77
  5.4: Resource Allocation .................................................................................................................. 78
  5.5. Budget Execution....................................................................................................................... 80
  5.6. Budget Reporting and Transparency ......................................................................................... 82
  5.7. Challenges, Lessons Learned and the Way Forward ................................................................. 83
CHAPTER SIX ..................................................................................................................................... 85
MONITORING AND EVALUATION ................................................................................................. 85
  6.1. Background and Introduction .................................................................................................... 85
  6.2. Overall Achievements of the MKUKUTA Monitoring System ................................................ 86
  6.3. Performance of MMS Working Groups and MKUKUTA Secretariat ...................................... 87
     6.3.1. MKUKUTA Secretariat ..................................................................................................... 87
     6.3.2. Communication Technical Working Group ....................................................................... 88
     6.3.3. Research and Analysis Technical Working Group (R&AWG) ......................................... 88
     6.3.4. Survey and Routine Data Group ........................................................................................ 89
  6.4. Challenges and Lessons Learned ............................................................................................... 90
ANNEX I: STATUS OF MKUKUTA INDICATORS ......................................................................... 92




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                                            Preface

Over the past five year, Tanzania has been implementing the National Strategy for Growth
and Reduction of Poverty (MKUKUTA) as the overall organizing framework to rally
Government efforts and the efforts of other stakeholders in fighting against poverty. These
efforts and their outputs, outcomes, and impacts have been monitored on continuous
basis. In this monitoring exercise, the Government has been preparing the MKUKUTA
Annual Implementation Report (MAIR) each year in order to report on the progress,
challenges, and lessons learned. The MAIR 2009/10 does exactly that.

But since MAIR 2009/10 is also the last in the series of MKUKUTA cycle, it also provides a
trend analysis of what has happened since 2005/06 – the first fiscal year of MKUKUTA
implementation. Unlike other MAIRs, I therefore hope that you will find MAIR 2009/10 to
be rich in contents and methodical as it attempts to situate the current status in relation to the
baseline in 2005 and the targets we set for 2010.

Readers will note that MAIR 2009/10 corroborate its predecessors by showing numerous
success, i.e. in the social service delivery – education, health, water and sanitation; in good
governance and accountability; and in areas of economic growth. It also highlights a number
of challenges, particularly challenges related to the effectiveness in implementing core
reforms, quality of social services, and the like.

However, readers are reminded that MAIR 2009/10 was prepared when the Government, in
collaboration with other stakeholder, has just finalized the preparation of another cycle of
MKUKUTA – i.e MKUKUTA II. Thus, many of the challenges highlighted in MAIR
2009/10 have their prescriptions in MKUKUTA II.

I hope that MAIR 2009/10 will provide you with sufficient reflections of where Tanzania
was five year ago, where it is today, and sketches of major challenges to be addressed in next
five year –i.e. in MKUKUTA II.

As we look back in the past five years in MAIR 2009/10, let us also stride ahead with zeal by
improving the implementation effectiveness of MKUKUTA II in the next five years.

Enjoy your reading.


Ramadhani M. Khijjah
PERMANENT SECRETARY MINISTRY OF FINANCE AND ECONOMIC AFFAIRS
ACRONYMS

AGITF      Agricultural Input Trust Fund
AGOA       African Growth Opportunities Arrangement
AIDS       Acquired Immune Deficiency Syndrome
AMSDP      Agricultural Marketing Systems Development Program
ARV        Anti-Retroviral
ASAGBC     Alex Stewart (Assayers) Government Business Corporation
ASDS(P)    Agricultural Sector Development Strategy (Program)
ASLM       Agricultural Sector Lead Ministries
ASR        Agricultural Sector Review
BERS       Budget Execution Reporting System
BEST       Business Environment Strengthening for Tanzania
CCRO       Certificates of Customary Rights of Occupancy
CMU        Cash Management Unit
COBET      Complimentary Basic Education in Tanzania
CPI        Consumer Price Index
CSO        Civil Society Organization
DADP       District Agricultural Development Plan
DASIP      District Agriculture Investment Plan
DHS (T)    Tanzania Demographic and Health Survey
DPs        Development Partners
DTS        Distributive Trade Survey
EMA        Environmental Management Act
EPA        Economic Partnership Agreement
EPZ        Export Processing Zone
FDI        Foreign Direct Investment
FSEIAP     Financial Sector Reform Implementation Action Plan.
GAP        Good Audit Program
GBS        General Budget Support
GDP(mp)    Gross Domestic Product(market prices)
GEFC       Global Economic and Financial Crisis
GoT        The Government of Tanzania
HBS        Household Budget Survey
HIPC       Heavily Indebted Poor Country
HIV        Human Immune Virus
ICT        Information Communication Technology
IFMS       Integrated Financial Management System
ILFS       Integrated Labor Force Survey
IMG        Independent Monitoring Group
ITNs       Insecticides Treated Nets
JAST       Joint Assistance Strategy for Tanzania
KM         Kilometer
LGAs       Local Government Authorities


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LGCDG     Local Government Capital Development Grant
LGRP      Local Government Reform Program
LGTP      Local Government Transport Program
LSRP      Legal Sector Reform Program
LSS       Life Saving Skills
M&E       Monitoring and Evolution
MAIR      MKUKUTA Annual Implementation Report
MCC       Millennium Challenge Corporation
MCIMS     Mining Cadastre Information Management System
MDA       Ministry, Department and Agency
MDGs      Millennium Development Goals
MDRI      Multilateral Debt Relief Initiative
MEWATA    Medical Women Association of Tanzania
MITM      Ministry of Industry, Trade and Marketing
MKUKUTA   Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania
(NSGRP)   National Strategy for Growth and Reduction of Poverty
MMMP      MKUKUTA Monitoring Master Plan
MMS       MKUKUTA Monitoring System
MPEE      Ministry of Planning, Economy and Empowerment
MTEF      Medium Term Expenditure Framework
MTPP      Medium Term Pay Policy
MTSPBR    Medium Term Strategic Planning, Budgeting and Reporting Manual

NACF      National Anti-Corruption Forum
NACSAP    National Anti-Corruption Strategy and Action Plan
NAIVS     National Agricultural Input Voucher System
NAO       National Audit Office
NBS       National Bureau of Statistics
NFRA      National Food Reserve Agency
NGOs      Non Governmental Organizations
NMSPF     National Multi-sectoral Social Protection Framework
NPS       National Panel Survey
OPVO      Oral Polio Vaccine Day
PADEP     Participatory Agricultural Development and Empowerment Project
PAF       Performance Assessment Framework
PCCB      Prevention and Combating of Corruption Bureau
PEDP      Primary Education Development Program
PER       Public Expenditure Review
PFM       Participatory Forest Management
PHDR      Poverty and Human Development Report
PHSDP     Primary Health Services Development Program
PHSDP     Primary Health Services Development Plan
PLWHA     People Living with HIV and AIDS
PMCT      Prevention of Mother to Child Transmission of HIV
PMO-RALG   Prime Minister’s Office-Regional Administration & Local Government
PMS        Poverty Monitoring System
PPP        Public Private Partnership
PPRA       Public Procurement Regulatory Authority
PRBS       Poverty Reduction Budget Support
PRGF       Poverty Reduction Growth Facility
PRSC       Poverty Reduction Support Credit
PRSP       Poverty Reduction Strategy Paper
PSAs       Production Sharing Arrangements
PSI        Policy Support Instrument
PSM        Performance Management System
PSMP       Power Sector Master Plan
PSRP       Public Service Reform Program
REPOA      Research on Poverty Alleviation
RHMT       Regional Health Management Team
RIMKU      Ripoti ya Utekelezaji ya MKUKUTA
RVF        Rift Valley Fever
RWSSP      Rural Water Supply and Sanitation Projects
SACST      Strengthening Anti Corruption Anti Corruption Strategies in Tanzania

SBAS       Strategic Budget Allocation System
SDPs       Sector Development Plans
SEDP       Secondary Education Development Report
SEZ        Special Economic Zone
SGR        Strategic Grain Reserve
SIDO       Small Industry Development Organization
SMEs       Small and Medium Enterprises
SSR        Self Sufficient Ratio
SUA-LWC    Strategy for Urgent Actions on Land Degradation and Water Catchments

TA         Technical Assistance
TAS        Tanzania Assistance Strategy
TASAF      Tanzania Social Action Fund
TB         Tuberculosis
TDS        Tanzania Debt Strategy
THIS       Tanzania HIV/AIDS and Malaria Indicator Survey
TSIP       Transport Sector Investment Program
TSMP       Tanzania Statistical Master Plan
TSPA       Tanzania Service Provision Assessment Survey
TTDP       Teacher Training Development Program
TWGs       Technical Working Groups
UVI        Muunganisho wa Ujasiriamali Vijijini
VCT        Voluntary Counseling and Testing
WHO        World Health Organization



                                          vi
WSDP   Water Sector Development Program
                             EXECUTIVE SUMMARY

        Introduction
MKUKUTA Annual Implementation Report (MAIR) is one of the key outputs of the
MKUKUTA Monitoring System. MAIR 2009/10 is the last report in the series
gauging the performance of MKUKUTA. Like the previous MAIRs, it provides an
overview of progress towards the MKUKUTA outcomes, focusing on performance,
challenges, and lessons learned during the year under review. Being the last in the
series, MAIR 2009/10 also provides the trend various indicators have taken since the
beginning of MKUKUTA implementation in 2005/06. Generally, there has been
significant progress in achieving the goals envisioned in the three MKUKUTA
Clusters.

       Cluster I: Growth and Reduction of Income Poverty
Overall economy:
The economy of Tanzania has recorded impressive economic performance of about 7
percent GDP growth rate over the last five years. However, the growth rate declined
slightly to 6 percent 2009 largely because of the adverse impact of the Global
Economic and Financial Crisis (GEFC).

In 2009, the annual inflation rate reached 12.8 percent compared to MKUKUTA target
of 4 – 5 percent. The annual rate of inflation has increased over the last five years due
to exogenous shocks such as adverse weather which reduced food crop production,
and increase in global oil prices and food prices.

The trend in official currency reserves, over the last five years, has been impressive.
The foreign reserves for 2009 were equivalent to 5.7 months of import of goods and
services compared to 4.6 months of import in the year 2008. The current reserve
position surpasses MKUKUTA target of 4 months of imports.

The revenue collection has improved as a result of policy changes and institutional
reforms. For example, in 2007/08 the government reviewed tax rates and revenue
collection procedures. Subsequently, the ratio of revenue to GDP increased from 12
percent in 2005/06 to 16 percent in 2009/10.

Growth sectors:
Manufacturing Sector: The growth of manufacturing activity declined from 9.9
percent recorded during the year 2008 to 8.0 percent registered in 2009. The growth in
this sector is still below MKUKUTA’s target of 15 percent.

Agricultural Sector: The growth rate in 2009 declined to 3.2 percent from 4.6 percent
recorded in 2008. The growth rate is below the MKUKUTA target of 10 percent.
Nevertheless, the food self sufficient ratio remained favorable; increasing from 102 in
2005 to 112 in 2010.



                                          viii
Mineral Sector: The growth rate decreased to 1.2 percent in 2009 from 2.5 percent
recorded in the previous year. The contribution of mining sector to the GDP also
declined slightly from 2.6 percent in 2008 to 2.5 percent in 2009.

Road Sector: The sector has, over the years, been accorded high priority as
underpinned by the implementation of Transport Sector Investment Programme
(TSIP). To that effect, the proportion of roads in good and fair conditions increased
from 82 percent in 2005 to 89 percent in 2010.

Energy Sector: During the period under review, two production sharing agreements
(PSAs) were negotiated and one PSA was signed. Further, the Government continued
to implement the Tanzania Energy Development and Access Expansion Project
(TEDAP) to enhance access to power supply. A total of 3,290.25 Gigawatt-hour
[GWh] of electricity from hydro generation source were produced compared to
2,917.03 GWh in 2008. This is increase of 12.8 percent mainly associated with
generation of electric power from natural gas.


       Cluster II: Improved Quality of Life and Social Wellbeing
The Government in collaboration with other stakeholders, continued to improve the
delivery of social services, notably in education, health, water and sanitation and social
protection.

Social Services:
Education
The government has continued to implement various measures to promote provision of
education at all levels as stipulated in Education Sector Development Program
(ESDP).

Pre-primary Education: There has been an increase of 3.3 percent of pupils enrolled
in pre primary schools in 2010 (925,465) compared to the same in 2009 (896,146). In
terms of gender parity, the ratio is almost 1:1 between boys and girls. Likewise, the
number of pupils enrolled in pre-primary education increased from 638,591 in 2005
compared to 925,465 in 2010.

Primary Education: There was a slight decrease (0.3 percent) in primary school
enrolment from 8,441,553 in 2009 to 8,419,305 in 2010. Out of these, 4,203,269 were
boys while 4,216,036 were girls. The enrolment in primary school has increased by
5.8 percent between 2006 and 2010. Gross Enrolment Ratio (GER) is 106.4 percent in
2010 and the Net Enrolment Ratio is 95.4 percent, indicating adequate absorption
capacity at primary schools for all school ages (7 – 13).

Secondary Education: During the period 2005 – 2010, the number of secondary
school increased from 1,745 to 4,266. These include 3,397 community schools and
869 private schools. During the same period, the number of secondary school teachers
increased from 23,905 in 2005 to 40,517 in 2010. As a result of these efforts, the
Gross Enrolment Ratio (GER) in secondary schools (form 1 – 4) increased to 47.3
percent in 2010 from 20.2 percent in 2006. The Net Enrolment Ratio (NER) also
increased to 30.8 percent in 2010 from 13.4 in 2006. The GER for Form 5 and 6 has
also been on the rise during the period 2006 – 2010. That is, 4.8 percent in 2010 from
3.2 percent in 2006. Likewise, the NER reached 1.9 percent in 2010 compared to 1.0
percent in 2006.

Higher Education: The number of students enrolled in government and non
government universities and colleges has increased to 118,951 in 2010 (were 76,936
were male and 42,016 were female) as compared to 40,993 students in 2005/06.

Technical and Vocational Education Training: Students enrolled in technical
colleges increased from 50,173 in 2005, (of which 20,493 were males and 29,680 were
females) to 169,124 in 2010 (where males were 97,428 and 71,696 were females).

Health
Child and Maternal Health: The under-five mortality rate declined from 112 per
1000 live births in 2004/05 to 91 per 1000 live births in 2007/08 and thereafter to 81
child deaths per 1000 live births in 2009/10. The maternal mortality ratio has declined
to 454 deaths per 100,000 live births in 2010 compared to 529 deaths per 100,000
(1996) and 578/100,000 (2004/05).

Malnutrition and Wasting: Under the Food and Nutrition Technical Assistance
(FANTA), the government has undertaken measures to improve infant and child
nutrition and health outcomes by adopting better targeted food security and nutrition
policy, strategies and programs. It also took measures aimed at integrating nutrition
services into the national HIV response and in designing the Food by Prescription
(FBP) program in Tanzania. Children underweight (weight-for-age below -2SD)
declined from 21.9 percent in 2004/5 to 16 percent in 2009.

Malaria Control: In the efforts to combat malaria disease, the government continued
to implement the Malaria Control Strategic Plan 2008-2013, by distributing long
lasting insecticide treated nets, through the voucher scheme and provision of
intermittent presumptive treatment for malaria to pregnant women in the country. The
percentage of households owning at least one bed net has increased from 56.3 percent
in 2007/08 to 74.7 percent in 2009/10. Likewise, the percentage of households owning
at least one Insecticide Treated Net (ITN) has increased from 39.2 percent in 2007/08
to 63.4 percent in 2009/10.


HIV and AIDS: The National HIV and AIDS Prevention and Control Act was passed
by parliament in 2008. The government also prepared the second Health Sector
Strategic Plan for HIV/AIDS 2008-2012 and the National Essential Health Sector
Strategic Interventions packages for HIV and AIDS to guide implementation. During
the review period, substantial progress was achieved especially, with respect to the



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percentage of HIV positive women receiving ARVs to prevent MTCT and number of
persons with advanced HIV infection receiving ARV combination.

Water: During the period under review, the Government constructed and rehabilitated
several water projects including new shallow wells/boreholes. This has consequently
resulted in enhanced use of improved sources of drinking-water in both rural and
urban areas, albeit with marked differences across geographic regions. The proportion
of the population with access to clean and safe water in rural areas has increased from
53.1 percent in 2005 to 58.7 percent in 2009. Consequently, the proportion population
served has improved from 74 percent in 2005 to 84 percent in December 2009.

      Cluster III: Governance and Accountability
There is also significant progress toward achieving the goals on governance and
accountability.

Citizen registration: In 2009/10 the Government continued with setting up the
National Identity System by establishing the National Identity Authority. This agency
is vested with the task of coordinating the system that will eventually issue national ID
to all residents. Education campaigns have continued to prepare the general public for
national ID.

Gender balance in leadership posts: Women in decision making posts increased
from 26 percent in 2005 to 31 percent in 2010. The number of women in strategic
posts increased as follows: Judges - 13 to 34; ministers – 4 to 7; permanent secretaries
– 7 to 9; Regional Administrative Secretaries – 4 to 10; District Commissioners – 20 to
25; Council Directors – 14 to 35; and Directors in Ministries and Agencies – 19 to 133.

Land tenure as an issue of good governance: In 2009/10 the Government continued
to improve land use management in many aspects. 21,160 farms were surveyed under
MKURABITA and 17,526 of them registered in computerized systems in order to
issue land titles. During the period, 8,109 titles were prepared and issued. Land titling
is critical for dispute resolution. Land titles are also important in accessing other
resources such as credit and in enhancing government revenue collection.

Procurement and Auditing: With exception of six new councils, Local Government
Authorities (LGAs) have constituted Tender Boards as stipulated in the laws. In most
of the councils, the Tender Boards met as mandated and discussed the relevant issues.
The number of LGAs issued with clear reports increased from 53 in 2005/06 to 77 in
2008/09. The number of LGAs with qualified and adverse opinion has continued to
decline. The observed improvement is partly explained by increased LGAs absorption
capacity and enhanced human resources, particularly the cadre of accountants, as well
as increased use of IFIMS and Plan-Rep tools

Issues of Corruption: In order to spearhead the war against corruption, the
government has facilitated and improved the collaboration and coordination of the
operations anti-corruption related institutions (PPRA, NAO/CAG, and PCCB). To tha
effect, between 2005 and 2010, 755 new corruption cases were filed in the court of
laws. The Government has won 155 cases and recovered TZS 28,827,667,374.
Furthermore, the government has filed 19 cases of grand corruption since 2005.

Outstanding court cases back log: The percentage of cases pending for two years or
more ranged between 24 percent and 29 percent. It also shows that in 2008, 74 percent
of all cases had been pending for one year. As regard to speeding up filed cases,
various initiatives have been undertaken; these include appointment of more judges,
resident magistrates and primary court magistrates, state attorneys, and law secretaries.
For example, the number of judges in the Court of Appeal increased from 8 in 2005 to
21 in 2010. Likewise, the number of judges in the High Court increased from 24 to 68
during the period under review.


        MKUKUTA Financing
Resource Allocation
Financing continues to be an important part of MKUKUTA implementation, in
facilitating achievement of outcomes under the three clusters. The Government
continued to use domestic and external resources for MKUKUTA financing.
Frameworks and tools for resource allocation include the budget guidelines, medium-
term expenditure framework (MTEF), the strategic budget allocation system (SBAS),
and the local government planning and reporting database (Plan-Rep). Audit reports
and the integrated financial management system (IFMS) are tools for budget
execution. Tools for allocating resources were further upgraded in 2009 to strengthen
the capacities in the area of planning, budgeting, monitoring, evaluation and
performance reporting. Since the commencement of MKUKUTA implementation in
2005/06, there have been various efforts undertaken by the Government in
collaboration with other stakeholders aimed at improving resource allocation. The
share of the Government budget financing MKUKUTA has been increasing every year
from 54.1 percent of the total budget in 2005/06 to 71.2 percent in 2009/10.

Budget Execution
With regard to expenditure performance, total expenditure for 2009/10 amounted to
TZS 8,173.7 billion compared to TZS 6,811.8 billion in 2008/09. This is an increase
to 26.7 percent of GDP, compared to 25.7 percent in 2008/09. The ratio of total
expenditure to GDP increased consistently during MKUKUTA implementation from
23.4 percent in 2005/06, to 26.7 in 2009/10. The development expenditure, as a
percentage of GDP, increased from 7.7 percent, when MKUKUTA implementation
started in 2005/06, to 8.5 percent towards the end MKUKUTA lifespan in 2009/10.

Budget Reporting and Transparency
Progress has been made in strengthening public financial management and in
improving transparency. One of the tools used for realization of better outcomes is the
Integrated Financial Management System (IFMS). Today, the IFMS has been installed
in all MDAs and in 21 Sub-Treasuries as well as in 87 LGAs. Work is underway to
extend the IFMS to the remaining Councils. The remaining LGAs (46) continue to use


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either a manual system or some form of electronic spreadsheet to record financial
transactions. Regarding transparency on resource use, MOFEA disseminated through
the newspaper and MOFEA website (www.mof.go.tz) resource disbursed to MDAs/LGAs
on monthly basis. The LGAs, on the other hand normally posts on notice boards the
resources received and requisite expenditures items.


      Monitoring and Evaluation
MKUKUTA Monitoring System (MMS) did shoulder its core mandate by putting in
place an elaborate institutional arrangement of the three technical working groups
(TWGs) and the MKUKUTA Secretariat. These technical working groups comprise:
Census/survey and Routine Data, Research and Analysis, and Communication.

MKUKUTA Secretariat
In 2009/10, the MKUKUTA Secretariat continued to oversee and perform its core
functions of coordination, in terms of supporting the operations of the Technical
Working Groups and the Technical Committee. This included preparation and
consolidation of work plans and the reports (quarterly, semi-annual and Annual) and
facilitation of flow of funds. Besides this, the Secretariat devoted much effort on two
major tasks which were: designing the new strategy and carrying out an assessment of
the effectiveness of MMS. The Secretariat also prepared the concept note on the
design of the successor strategy (MKUKUTA II), the review and consultation
guidelines, commissioned 26 studies that fed into the MKUKUTA review process, and
managed MKUKUTA II drafting process. The MKUKUTA Secretariat also
coordinated the production of MKUKUTA Annual Implementation Report (MAIR) for
2008/09.

Communication Technical Working Group
The Communication Technical Working Group (CTWG) implemented its plans in line
MKUKUTA Monitoring Master Plan (MMMP). During the period under review, the
group released three major outputs. The first is informing the public on MKUKUTA
review process. The dissemination was done through recording and broadcasting
various TV and Radio programs. The other output was to organize the Annual National
Policy Dialogue (MKUKUTA/ PER/GBS Annual Consultative Meeting, 2009). This
was held on 19th to 24th November, 2009. The Secretariat of the General Budget
Support (GBS), Public Expenditure Review (PER) and MKUKUTA Secretariat jointly
coordinated the National Policy Dialogue week. The third output was the production of
Mapambano Magazine.

Research and Analysis Technical Working Group
During the period under review, the Research and Analysis Technical Working Group
(RAWG) implemented all its planned activities except a few due a number of factors
factors. Indeed, the Technical Working Group commissioned two studies for
MKUKUTA review process. Furthermore, the group organized various meetings as
per annual work plan and budget.
Survey and Routine Data Group
In 2009/10, the Census and Survey Technical Working Group (CSTWG) had planned
to carry out printing, dissemination activities, and evaluation of the 2007 Household
Budget Survey (HBS), data collection, cleaning, analysis, report writing for the first
wave and preparatory activities for the second wave of the National Panel Survey
(NPS). Likewise, CSTWG made preparations for new surveys, including the 2009/10
Tanzania Demographic and Health Survey (TDHS) and 2009 Integrated Business
Survey (IBS). These activities were at various stages of implementation.




                                         xiv
                                       CHAPTER ONE
                                       BACKGROUND

1.1. Introduction
MKUKUTA Annual Implementation Report (MAIR) is one of the key outputs of the
MKUKUTA Monitoring System. The Report has been produced every year since the
beginning of MKUKUTA implementation in 2005/06. Therefore, MAIR 2009/10 is the last
report in the series of MKUKUTA Annual Implementation Reports. Like its predecessors,
this report provides an overview of progress towards the MKUKUTA outcomes, focusing on
performance, challenges, and lessons learned. In addition to annual progress reporting, the
MAIR 2009/10 reports on cumulative performance since 2005/06. In so doing, it assesses
where Tanzania is in relation to the base line and the targets. MAIR 2009/10 is informed by
the recently concluded MKUKUTA Review and acknowledges that most of the identified
implementation challenges of MKUKUTA have been taken on board in MKUKUTA II
(2010/11 – 2014/15). This being the case, the discussion of challenges in MAIR 2009/10 has
been made brief and general. Therefore, the presentation of challenges in this report serves
as a pointer and reminder of what MKUKUTA II implementation will have to focus on.

1.2. The Purpose, Objectives and Use of the Report
The purpose of the MAIR is to track progress, and to inform subsequent policy actions and
activities as well as informing budget decisions and MTEF process. The value addition of
MAIR is that it consolidates and provides a coherent analysis of information from sectors to
cluster level, thus facilitating the dialogue among stakeholders for subsequent interventions.
It also facilitates forging of closer links between Government coordination, monitoring and
reporting. The key objectives and use of the report include:
(i)      To provide an assessment of progress against Government priorities of economic
         growth and reduction of poverty as identified in MKUKUTA;
(ii)     To generate information that will facilitate organization of interventions and priorities
         in different sectors into a consistent and sustainable implementation strategy;
(iii) To stimulate further dialogue and debates, among stakeholders, on key strategic
         issues of concern including prioritization and sequencing of interventions, and
         resources mobilization and utilization in subsequent dialogue processes – as per
         proposed dialogue structure (PER, GBS, and Sectoral Reviews);
(iv) To identify key issues and options for scaling up investment to achieve MKUKUTA
         goals and targets;
(v)      To provide inputs and information for national budget process, including the Plan and
         Budget Guideline, and Budget Formulation.

1.3. Coordination MAIR Preparation
The responsibility of coordinating and producing MAIR is under the Poverty Eradication and
Empowerment Department (PEED) in the Ministry of Finance and Economic Affairs. This
Department collaborates with other stakeholders including Ministries, Departments,
Agencies (MDAs), Local Government Authorities (LGAs), Research and Academic
Institutions and Non State Actors in producing this report. Therefore, this report draws
information from various sources including report from sector reviews, MDAs Performance
Reports, Budget Speeches, PHDR, Economic Surveys, etc.


1.4. Scope and limitations of the report


                                               1
This report focuses on performance, challenges and lessons learned in each cluster. A trend
analysis since 2005/06 to date has been presented, where data are available. However, the
report is unable to link outcome and budget due to limitations existing between the Strategic
Budgeting Allocation Software (SBAS) and the Integrated Financial Management System
(IFMS).      Nonetheless, MAIR 2009/10 recognizes that MKUKUTA is also being
implemented by other actors such as the private sector, NGOs, CSOs, FBOs as well as the
communities. However, the interventions by these actors are not explicitly captured by and
narrated in this report.


1.5. Organization of the Report
The rest of the report is organized in five chapters. Chapter II focuses on Cluster I: Growth
and Reduction of Income Poverty. Chapter III covers issues of Cluster II: Improvement of
Quality of Life and Social Wellbeing. Chapter IV reports on Cluster III: Governance and
Accountability. Chapter V covers issues on MKUKUTA Financing and Government
Budget. Chapter VI concludes by focusing on Monitoring and Evaluation




                                             2
                          CHAPTER TWO
             GROWTH AND REDUCTION OF INCOME POVERTY

2.1 Introduction
This chapter assesses the trend in growth performance and the progress achieved in the
course of reducing income poverty. This assessment highlights challenges and lessons learnt
in achieving the envisioned goals. Six goals and operational targets are examined in this
chapter. These goals are: ensuring sound macro-economic management; promoting
sustainable and broad-based growth; improving food availability and accessibility at
household level in urban and rural areas; reducing income poverty of both men and women
in urban and rural areas; and the provision of reliable and affordable energy to consumers.

2.2. Performance

Goal 1: Ensuring Sound Economic Management
The enhancement of sound economic management is a key driver for rapid and sustained
economic growth and overall reduction in income poverty. In view of this, the government of
Tanzania has given top priority to this goal in order to ensure that rational economic policies
are consistently pursued, monitored, evaluated and sustained.

Over the last five years, the Tanzanian economy recorded impressive economic performance,
except for 2009 when the economic performance slowed down due largely because of the
adverse impact of Global Economic and Financial Crisis (GEFC). The key indicators that
track the performance of this goal are: annual rate of inflation; Central Government revenue
as percent of GDP; fiscal deficit as percent of GDP; external debt service as percent of
exports, external debt as a percent of GDP; and unemployment and underemployment in
rural areas.

In achieving the desired goals under economic management, the government has continued
to pursue prudent fiscal and monetary policies. On the fiscal front, expenditures policies
focused on job protection, promotion of investment in infrastructures and social services
were pursued. Moreover, the fiscal stimulus package totaling TZS 1.7 trillion was put in
place to cushion the export sector from the adverse effects of global financial crisis. In the
financial sector, two measures were adopted to address the effects of the financial crisis.
First; the commercial banking sector adopted a tight lending policy, which affected credit
growth, hence increase in liquidity in the bank system, holding of foreign exchange,
reduction in average money market interest rate. During the year 2009/2010, the Bank of
Tanzania, through Monetary Policy Statement, adopted a slightly relaxed monetary policy
stance in order to mitigate the adverse effects of the crisis with the primary objective of
maintaining macroeconomic stability. This strategic move is in line with the counter-cyclical
fiscal revenue measures aimed at ensuring sustained growth of the economy.




                                              3
                      An Overview of Economic Performance

      The trend of inflation has been increasing from 5 percent recorded in 2005 to
         12.1 percent in 2009.
      In 2009 foreign reserves increased to USD 3,551.3 million, equivalent to 5.7
         months of imports of goods and services, compared to USD 2,872.2 million
         in 2008.
        Global Economic and Financial Crisis 2008/09 had adverse impact on the
         development of private sector mainly due to fall in credits to private sector
         and reduced export earnings
        National Debt increased by 26.6 percent during the year under review.
        The value of FDI decreased to USD 650 million compared to USD 744
         million recorded in 2008. 
        GDP growth recorded slight drop to 6 percent in 2009 compared to 7.4
         percent in 2008
        Performance of export crops exhibited mixed trajectories; cotton pyrethrum
         and tobacco recorded increased trends in comparison to 2008 
        Income poverty seems to have remained unchanged. 


Annual Rate of Inflation:
The annual rate of inflation has over the last five years generally soared as shown in figure
2.1. The increase in inflation is attributed to a combination of exogenous shocks. Some of
the exogenous shocks include the hike in global oil and food prices, the decrease in demand
and price of primary exports in the world market. Other shocks include extreme weather
condition, which adversely effected agricultural and energy production, and consequently
inhibited the growth of other sectors of the economy.

In 2009, the annual inflation rate reached 12.8% compared to MKUKUTA target of 4% and
5% in 2005. Large weight attached to food in the computation of national Consumer Price
Index makes food price was one of the main causes of double digit inflation since the year
2008. To the contrary, the average non-food inflation was 3.8 percent in year 2009 compared
to 6.7 in 2008.

Inflation is expected to slow down in the medium term as food supply continues to improve.
Moreover, as the global economic and financial crisis slow down, the outlook for a more
robust external sector is bright.




                                              4
Figure 2.1: The Trend of Inflation from 2000 – 2009




Source: Economic Survey, 2009

Official Currency Reserve
Figure 2.2 plots official reserves in terms of months of imports which have been held by the
Bank of Tanzania for the period between financial years 2005/06 and 2009/10. It is evident
from figure 2.2 that the trend in official currency reserves over the last five years has been
fairly impressive. In particular, official foreign reserves reached USD 3,551.3 million in
2009 compared to USD 2,872.2 in 2008. This is an increase of 23.6 percent. The foreign
reserves for 2009 were equivalent to 5.7 months of imports of goods and services compared
to 4.6 months of imports in 2008. The current reserves are adequate and surpass MKUKUTA
target of 4 months of imports.

The positive trend of official foreign reserve is attributable to two major developments. First
is a rapid increase in exports of goods and services than the increase in the import bill as well
as the decline in official current transfers. The second factor is disbursement of funds for
balance of payment support from IMF under the Exogenous Shock Facility (ESF) and the
allocation of Special Drawing Rights (SDR).

Figure 2.2: Official Reserves




Source: Bank of Tanzania

Government Revenue Performance
Over the last five years, the revenue collection has improved as a result of policy changes
and institutional reforms, including the review of tax rates and revenue collection procedures.


                                               5
In general, the trend in the ratio of revenue to GDP has increased; rising from more than 12
percent in 2005/06 to about 16 percent in 2009/10. However, following a drop in the value of
imports and economic slowdown as a result of GEFC, revenue to GDP ratio declined to 15
percent in 2009/10. The overall revenue performance for the period between 2005/06 -
2009/10 is depicted in Figure 2.3. The decline in domestic revenue collection was couple
with a decrease in foreign financing from 10.1 percent of GDP in 2007 to 9.1 percent in
2009. As a result, the Government expenditure is currently around 26 percent of GDP.

During the fiscal year 2009/10, tax revenue collection was 91.5 percent of the total estimates
while non tax revenue was 85.2 percent of the target. Therefore, when compared with year
2007/08, tax revenue collection was lower by 0.9 percent. The under-performance is partly
due the impact of the global economic and financial crisis and postponement of the
implementation of some revenue measures announced in the 2009/10 budget. This
notwithstanding, tax revenue grew by 10 percent while the growth in non tax revenue was 11
percent compared to the levels in 2008/09. The overall fiscal deficit to GDP ratio during the
2007/08 was 4.3 percent compared with 6.3 percent recorded in the year before.

Figure 2.3. Government Revenue and Foreign Grants for FY 2000/01 – 209/10




Source: Ministry of Finance and Economic Affairs.

National Debt:
In general, the national debt has increased over the last five years. The increase has been
attributed to new disbursement, exchange rate fluctuations, accumulation of interest arrears
and issuance of new domestic bonds. At the end of December 2009, the national debt stood
at USD 10,690.3 million compared to USD 8,346.3 million in 2008, representing an increase
of 26.6 percent. In 2009, the national debt is equivalent to 28.5 percent of GDP compared to
30.0 percent in 2008. This level of public debt is sustainable under the criteria set in Debt
Sustainability Analysis (DSA) and MKUKUTA target of 50 percent as shown in table 2.1.
To a large extent, government measures to improve revenue collections coupled with debt
cancellation under the enhanced HIPC and MDRI accounted for this trend.




                                             6
 Table 2.1: Performance of Key Debt Indicators
                        2004/05     2005/06     2006/07     2007/08     2008/09     2009/10

National Debt as % of 48.9          50.8        48.2        30.2        35.0        35.8
GDP
External Debt as % of 37.6          36.3        31.6        16.6
GDP
Domestic Debt as % of 11.3          14.5        16.6        13.6
GDP
Source: Ministry of Finance and Economic Affairs.

External debt
The total external debt amounted to USD 7,641.9 million in 2009 compared to USD 5,811.1
million in 2008, reflecting an increase of 31.5 percent. Of this amount, USD 6,163.2 million,
or 79.3 percent, was principal debt while USD 1,604.9 million or 20.7 percent was interest
arrears. The profile of disbursed external debt by borrower category indicates that the central
government debt accounted for 80.7 percent while private sector and public corporations
debts accounted for 13.7 percent and 5.6 percent of the total external debt stock respectively.

A cursory glance in the analysis of external debt, by creditor categories, shows that IDA,
ADB and the IMF are the main multilateral creditors. Taken together, they account for an
average of 90.7 percent of the outstanding debt. Of all multilateral creditors, IDA is the
biggest source of financial assistance, accounting for 62 percent of the total outstanding debt.
In term of bilateral creditors, JAPAN/JICA, Brazil and China are the main creditors and
account for 69 percent of the bilateral debt.

Domestic Debt
The domestic debt amounted to TZS. 3,837.7 billion by December 2009, compared to TZS.
3,245.8 billion in 2008, equivalent to an increase of 18.2 percent. Of this amount, TZS.
2,512.9 billion or 65.5 percent was Government guaranteed and the remainder was other
government debt. The increase in domestic debt was mainly attributed to increase in treasury
bills and bonds. During the period between July and December 2009, a total amount of TZS
324.0 billion was paid as domestic principal debt through rollover, and TSZ 53.0 billion was
paid as interest.

Unemployment
During the implementation of MKUKUTA I (2005/06 -2009/10), the government
implemented the National Employment Creation Programme with the aim of creating one
million jobs by 2010. By April 2010, a total of 1,313,561 new jobs were created outside the
agriculture sector. The private sector created a total of 1,185,387 job against 128,174 jobs
created by the public sector. Further, Tanzania Employment Services Agency (TaESA)
opened two zonal offices in Arusha and Dodoma in order to extend employment services
closer to the people. These services include linking job seekers to employers locally and
internationally, and providing training on interview techniques and information on labor
markets.




                                               7
Goal 2: Promoting Sustainable and Broad Based Growth

The promotion of sustainable and broad based growth is a key driver for the provisoon of a
permanent and lasting solution to poverty. In order to achieve this goal, eleven operational
targets were set. The targets under this goal are related to GDP growth, sectoral growth and
sectoral contribution to national output. The subsequent sub-sections attempt to review and
assess the performance in relation to this goal.

GDP Growth
The GDP growth declined to 6% in 2009 from 7.4% in 2008 (figure 2.4). This decrease is
attributed to prolonged drought during the 2008/09 season which resulted in a considerable
fall in both agricultural and industrial outputs. The growth rate was further plagued by
disrupted electricity generation triggered by the drought and the dilapidated power plants. In
October 2009, total energy demand was 769 MW but power plants could only supply 538
MW, an equivalent of 70 percent of the aggregate demand.

 Figure 2.4: GDP Growth and Sector Growth (at Constant 2001 prices)




Source: Economic Survey, 2009

In addition, the impact of global economic and financial crisis and the resultant economic
slowdown in the global economy world contributed to a fall in demand for traditional,
processed and manufactured exports. Worse still, the economic downturn in the global
economy also resulted in a reduced demand for tourism, a fall in both capital flows and
foreign aid.

Manufacturing Sector
The growth of manufacturing activity declined from 9.9 percent recorded in 2008 to 8.0
percent in 2009 (Figure 2.4). This growth rate is still well below MKUKUTA’s growth target
of 15 percent in manufacturing sector by year 2010. As documented elsewhere in this report,
the ramification ensuing from the global economic turmoil is part of the causes, in addition to
electricity power disruption. Despite the fall in growth rate, the contribution of
manufacturing sector to the national output increased from 7.8 percent to 8.6 percent between
the year 2008 and 2009, respectively. The rising share of manufacturing sector to the
national output is a product of a number of sound policies that the government instituted in



                                              8
the recent past to kick start growth in this important sector. Such policies, among others,
include but not limited to, SMEs policy, trade and tax policies targeted to invigorate
manufactured output. In addition, the increased share of manufacturing sector in total output
is the result of slow growth in other sectors—particularly the agriculture sector.

Agricultural Sector
The agriculture growth rate during the year 2009 declined to 3.2 percent from 4.6 percent
recorded in 2008. This is below the MKUKUTA target of 10 percent by year 2010. This
drop is a direct consequence of a fall in the growth rate of crop output from 5.1 percent to 3.4
percent in the agricultural output during the same season. As a result, the share of agricultural
sector in the GDP also declined marginally from 25.7 percent recorded in 2008 to 24.6
percent in 2009. Figure 2.4 and 2.5 suggests that the trend in agriculture growth rate has
gradually been falling during the decade.

 Figure 2.5. Trend in Agriculture Growth rate and its Sub-Sectors




 Source: Economic Survey, 2009

The underperformance in the agricultural sector (notably the crop sector) in 2009 was largely
contributed by unfavourable weather conditions. In 2009, the growth rate in maize production
fell to 6.5 percent from 7.7 percent growth registered in 2008. Of all the crops,
sorghum/finger millet production was particularly hit— sorghum/finger millet output went
down drastically by 80 percent.

In an attempt to jumpstart the resumption of growth in the agricultural sector, the
Government, in collaboration with other stakeholders, undertook a number of policy,
strategies, and program measures. Some of these interventions have been well articulated in
Agricultural Sector Development Programme (ASDP) and more recently in KILIMO
KWANZA strategic document. These measures include increased use of fertilizers and
agrochemicals, irrigation, construction of rural roads, use of power tillers, etc.

Livestock
The growth of the livestock sector declined form 2.6 percent in 2008 to 2.3 percent in 2009,
which is below the targeted growth rate of 9 percent by 2010. Also, the share of livestock in
GDP declined during the 2009. Vagaries of nature—particularly a prolonged period of


                                               9
drought in the northern part of the country contributed to this poor performance during the
2008/09 rain season. This under-performance calls for more efforts to boost productivity in
the livestock sector. In fact, the government in collaboration with a number of NGOs, has
over the last few years distributed 10,095 heifers to small scale livestock farmers vide Heifer
in Trust scheme. In addition, the government has strengthened the capacity of the National
Insemination Centre and campaign to promote milk consumption.

Fisheries
In an endeavour to improve the fishing sector, 9,617 surveillance patrols were carried out
during the 2009 to curb illegal fishing in the ocean, lakes and other pertinent water bodies.
The number of such patrols during the year 2008 were 7,227. The upsurge in patrols resulted
in the confiscation of illegal fishing instruments such as monofilaments. In addition, during
the 2009 a total of 831 inspections to gauge the adherence to the stipulated health and hygiene
standards were carried in 14 fish processing factories and 13 warehouses for stocking fish
products.

The growth rate in fisheries sub-sector declined during 2009. It decreased by nearly a half of
the growth performance recorded in 2008. The trend shown in Figure 2.7 suggests that the
sector performance is inadequate. This under-performance is attributable to continued
utilization of traditional fishing methods coupled with the destruction of marine ecosystems—
fishing hatcheries. Despite these shortcomings, the share of fishing sub sector in the GDP rose
modestly from 1.2 percent in 2008 to 1.4 percent in 2009.

Figure 2.6: Fisheries Growth Rate




Source: Economic Survey, 2009

A total of 344,567.2 tons of fish were harvested in 2009 compared to 350,311.4 tons
collected in 2008. In addition, a total of 174,540 small scale fishermen were engaged in
fishing activities during the year 2009 compared with 170,038 fishermen in 2008. Out of
174, 540 fishermen engaged in fishing activities, 136,933 harvested 299,729.1 tons valued at
TZS 354.4 billion from freshwater bodies. The coastal strip employed 37,607 fishermen who
harvested 44,838 tons valued at TZS 56.6 billion.




                                              10
Exports
Traditional Exports
In 2009, the performance of export crops exhibited mixed trends. In the case of cotton,
pyrethrum and tobacco, increased volumes and value were realized compared to 2008.
However, the production of other traditional exports witnessed a falling trend. Cotton
production declined in 2009/10 to 267,000 tons of seed cotton from 368,697 in 2008/09.
This is a decline of 28 percent. Coffee production declined by 31 percent during the same
period. Cashew nuts production also declined significantly from 99,107 tons in 2008 to
74,169 tons in 2009. This is nearly 30 percent decline. In general, the decline in production
of cash crops was largely contributed by adverse weather conditions and shortage of
insecticides and pesticides. The share of individual crops in the total export crop basket in
2009 is provided in Figure 2.7

 Figure 2.7: The share of individual export crops in total export crops in 2009




 Source: Economic Survey, 2009

Non traditional Exports
In 2009, the value of non-traditional exports decreased to USD 2,163.2 million from USD
2,270.6 million in 2008, a decrease of 4.7 percent. This was due to the fall in exports of
manufactured goods, particularly cotton fibres; processed coffee, sisal products; re-exports
and fish and fish products. However, gold continued to contribute significantly to the total
exports of non-traditional goods. In 2009, non-traditional exports accounted for 82.1 percent
of the total merchandise exports compared to 84.4 percent in 2008.

 Credit to Private Sector
Growth of credit to the private sector slowed down to 9.8 percent in during the period ending
January 2010, compared to both 41.0 and 47.0 percent recorded in the year ending January
2009 and December 2008 respectively. The slower growth rate of credit to the private sector
is mainly explained by a continued cautious stance taken by banks in extending credit to the
private sector, following the global financial crisis. In terms of composition of credit to the
private sector, personal loans accounting for 20 percent, received the lion share. The second
largest share was trade activities (16.6 percent) followed by other services (15.3 percent),
manufacturing (11.1 percent), agriculture (9.3 percent), transport and communications (8.8
percent). However, with the implementation of the Government’s Economic Rescue Plan,
which commenced in June 2009, it is expected that growth in credit to private sectors will be
revamped.



                                              11
 Foreign Direct Investment
The value of Foreign Direct Investment (FDI) was USD 650 million in 2009 compared to
USD 744 million in 2008, a decrease of 14.5 percent. In the earlier years of MKUKUTA
implementation, FDI reached USD 653.4 million in 2007 compared to USD 616.6 million in
year 2006. The decrease in 2009 was a result of the impact of the global economic and
financial crisis. However, the government continued to improve the business environment
through the implementation of Business Environment Strengthening for Tanzania (BEST)
Programme. Figure 2.8 displays trend of FDI during 2005 – 2009 period.

 Figure 2.8: Foreign Direct Investment 2005 – 2009




 Source: Bank of Tanzania, 2010


Mineral Sector
The government, in collaboration with development partners, is implementing number of
projects in order to accelerate economic growth and reduce poverty. Currently, the
government is implementing the Sustainable Management of Mineral Resource project
(SMMRP). The SMMRP is a five-year programme (2009/10 to 2013/14) financed by an
IDA Credit of USD 50 million, with co-financing from the government of US$5 million.
The SMMRP has been designed to help the government to strengthen its capacity to manage
the mineral sector, in particular to promote adherence to the principles of good governance
and transparency in the sector; to spur local economic development through increased
linkages between the mineral sector and other sectors; reducing conflicts; improve
management of social and environmental issues related to mineral sector development; and
to increase growth and competitiveness in the mineral sector.

In addition, the government continues to develop and strengthen the capacity of the small
scale miners through training programmes in zonal and resident offices in various regions.
The training is aimed at instilling competencies in mineral exploration, processing,
marketing, value addition, occupational health and safety environmental management and
protection, entrepreneurial skills etc. all these are geared towards complementing
government's efforts in reducing poverty among small scale miners.

Compared to the year 2008, the performance of the mineral was not impressive. The growth
rate declined to 1.2 percent in 2009 from 2.5 percent recorded in 2008. The contribution of


                                           12
mining sector in the GDP remains below the observed share in 2008 (in real terms). It
declined from 2.6 percent in 2008 to 2.5 percent in 2009. The gloomy picture of mining
sector was largely attributed to the slow pace of mineral exploration caused by the global
economic recession that reduced aggregate demand in 2008. For example, in 2009, 4,831
diamond mining licenses were issued compared to 4,980 in 2008. Consequently, the carat of
diamonds dropped by 22.8 percent; from 237, 676 carats in 2008 to 181, 874 carats in 2009.
The obsolete technology in use in the Williamson Diamond mines also contributed to this
poor performance. The value of mineral exports was USD 1,217.3 million in 2009 compared
to USD 1,098.8 million in 2008, an increase of 10.8 percent. The increase was mainly
attributed to increase in gold production and prices of gold and diamond in the world market.
Indeed, the impact of the global economic and financial crisis (GEFC) raised the gold prices
as consumers were hedging the currency against a loss in the value of other financial assets.

Transport Sector
Road Sub-sector
The road sector has over the years been accorded priority through the implementation of
Transport Sector Investment Programme (TSIP). The general trend of overall road network
condition indicates an improvement of roads in good and fair condition categories. Roads in
good and fair condition increased from 79 percent in June 2007 to 95 percent in June 2009
and then dropped to 89 percent in June 2010. The abnormal rains experienced in FY 2009/10
had a negative effect of reducing the quality of road condition, especially on the unpaved
roads. In addition, the condition in FY 2009/10 fair and good roads has decreased due to
expansion of the network. A total of 3,165 km of district roads have been reclassified into
national roads by July 2009. These roads are mostly in fair and poor condition. During the
year under review the physical performance is discussed in the ensuing sections for both
maintenance and development programmes and projects:-

Road maintenance is one of the pressing activities that are undertaken every financial year
with the aim of preserving the investment made in roads. In addition, it provides the optimum
riding quality, which subsequently reduces the road user costs. The planned target for the
road maintenance for 2009/10 was to maintain a total of 28,763.1km of roads and 2,232
bridges. Up to 30th June 2010, the achievement was 28,546.8km (or 101 percent) and 2,481
bridges (or 111 percent). The annual physical target exceeds the one that was reported during
the second quarter. This is because the maintenance plan was revised during the mid – year
review; thus causing the actual performance to exceed 100 percent. As it can be observed
from Table 2.2, the average for three years shows that the achievement in development
projects was 90 percent of the planned targets. This is regarded as a good performance.

Table 2.2: Trunk Roads Upgrading and Rehabilitation
Financial Year   Planned (km)                    Achieved (km)                 Achieved
                                                                              Vs Planned

                 Upgrading      Rehab   Total    Upgrading   Rehab   Total    (%)
2007/2008        440            29.7    469.7    386         14      400      85
2008/2009        155.3          46.5    201.8    73.6        5.1     78.7     40
2009/2010        203            71.8    274.8    262.3       171.1   433.4    158
Total            798.3          148     946.3    721.9       190.2   912.1    96
Note: Upgrading and Rehabilitation of trunk roads was carried out to bitumen standard.




                                                13
From 2008 to 2009, a number of contracts were awarded which have resulted upgrading of a
significant number of roads to bitumen standard in FY 2009/10. On average the performance
for three years was 96 percent, which is regarded as excellent.


Table 2.3: Regional Roads upgrading and Rehabilitation – Physical
Financial     Planned (km)                   Achieved (km)                    Achieved VS
Year                                                                          Planned

              Upgrading    Rehab    Total    Upgrading    Rehab.    Total     (%)
2007/08       57           1,119    1,176    30.5         964.2     994.7     85
2008/09       63.7         1,145    1,208.7 23.4          866.1     889.5     74

2009/10       73           1,014    1,087    52.5         853.5     906       83
Total         193.7        3,278    3,471.7 106.4         2,683.8   2,790.2   80

Note: Upgrading was carried out to bitumen standard while rehabilitation was up to gravel
standard.

As indicated in Table 2.3 above, the physical trend varied from 85 percent, 74 percent and 83
percent and on average was 80 percent of the target. Also, the physical performance attained
for each of the three years is regarded as good.

In 2009, a total of 7,471.30 kilometres of trunk roads were in good condition compared to
5,902.24 kilometres in 2008, an increase of 26.6 percent. In addition, a total of 4,190.98
kilometres were in fair condition compared to 3,386.2 kilometres in 2008, an increase of 23.7
percent, while a total of 1,123.90 kilometres were in poor condition compared to 1,178
kilometres in 2008, an improvement of 4.6 percent.

Figure 2.9: Condition of Road Network 2005 - 2009




Source: Ministry of Infrastructure Development




                                            14
 Table 2.4: Percentage of Local Roads in Good and Fair Condition
               FY 2006/07         FY 2007/08         FY 2008/09          FY 2009/10
  Condition                        Targe                                           Actual
               Target    Actual            Actual    Target     Actual   Target
                                   t
  Good          -        14.0     16.0    23.0       24.0      23.5      29.0       22.38
  Fair          -        41.5     42.0    34.0       36.0      35.0      31.0       33.82
  Good/Fair     -        55.5     58.0    57.0       60.0      58.5      60.0       56.2
  NOTE: Data for FY 2006/07 is from LG-RICS and in the following years from the Councils
  themselves.

In 2009, a total of 9,989.19 kilometers of regional roads were in good condition compared to
10,701.87 kilometers in 2008, equivalent to a decrease of 6.7 percent. In addition, 6,903.54
kilometers were in fair condition compared to 6,352.03 kilometers in 2008. Likewise,
3,333.09 kilometers were in poor condition compared to 1,936.49 kilometers in 2008,
equivalent to a deterioration of 72.1 percent. Table 2.5 below summarizes the road condition
overtime.

Table 2.5: Road Condition Over Time
                                Good              Poor      % of Good Network       length
  Year                          (%)      Fair (%) (%)       & Fair    (km)
 June 2005                      47       35       18        82        28,892
 June 2006                      53       33       14        86        28,892
 June 2007                      42       37       21        79        28,892
 June 2008                      56       34       10        90        29,847
 June 2009                      66       29       5         95        29,847
 June 2010                      56       33       11        89        33,012
 Source: TANROADS Quarterly Progress Reports

Development funding contribution from the Government as well as from the development
partners has been very limited in relation to the LGTP five year budgets. Out of the funds
collected by the Roads Fund, according to other conditions, not less than 90 percent shall be
used for maintenance and not more than 10 percent for development. For these reasons the
backlog maintenance needs have not been met and the overall condition of local roads seems
to be in decline. However, the actual performance achieved surpasses MKUKUTA target of
maintaining at least 15,000 km by 2010.




                                            15
 Table 2.6: Local Roads Performance for the last 4 years – Maintenance (end of June 2010)
                                                                     Bridges,
                     Routine          Spot            Periodic
            Exp.                                                     drifts,    Supervision
                     Maintenance      Maintenance     Maintenance
 FY         (TZS.                                                    culverts
            Mill.)            TZS.            TZS.           TZS.    TZS
                     KM               KM              KM                        TZS. Mill.
                              Mill.           Mill.          Mill.   Mill.

 2006/07    7,759    3,600   1,978    1,204   2,147   262   2,197    817        620

 2007/08    40,787   14,424 8,568     7,490   12,403 1,386 14,273 3,756         1,787

 2008/09    59,023   20,531 15,366 8,091      14,510 1,993 22,356 4,091         2,700

 2009/10    46,020   11,3477 9,357    4,597   10,517 1,575 19,012 4,678         2,453




Bridges and Ferries Development
Major bridges whose construction was completed in the past three financial years include
Ruvu (along Dar- Es –Salaam –Chalinze road section); Unity at border with Mozambique;
Mpiji along Bagamoyo road; and Mingoyo- Mbwemkuru (27 bridges). Major Bridges under
construction are Malagarasi (along Tabora – Kigoma road); and Nanganga and Nangoo
(along Mtwara – Masasi road). In the same period, Ferries rehabilitated were two, namely
MV Alina (DSM) and Sengerema (Mwanza). New ferries commissioned were nine, namely
MV Misungwi (Mwanza); Kigamboni (DSM), Kilombero (Morogoro), Ruhuhu (Ruvuma),
Kome (Mwanza), Utete (Coast) , Pangani (Tanga), along Rugezi – Kisorya (Ukerewe) and
along Musoma – Kinesi (Mara).

Environment
The government continued to address environmental issues which have had deleterious
impact on land, biodiversity and human conditions by implementing policies, laws, strategies
and regulations. The regulations include: Safety Use of Modern Biotechnology of 2009;
Management of Solid Wastage of 2009; and Management of Poisonous Wastage of 2009.
Moreover, the Government played a proactive role in coordinating and implementing various
international conventions regarding climatic change; drought and deforestation; control of
the chemicals which deplete the ozone layer; conservation of biodiversity; control over
transportation and disposal of poisonous wastage; and importation of poisonous wastage into
the African continent.

In an effort to ensure sustainable management of the environment, the government employed
21 inspectors from the National Environment Management Council in order to enhance
efficiency in managing the environment in the country. Further, 90 percent of the councils in
the country appointed environmental officers in order to bring technical services to the
grassroots level. Furthermore, in ensuring effective conservation of water sources and
afforestation, Presidential Award on Conservation of Water Sources and Afforestation was
launched.

The government continues to encourage investors to adhere to the Environmental Impact
Assessment (EIA) requirement before executing their projects. In 2009, more than 90 percent
of the projects were given operational certificates after meeting the EIA requirements and
standards. Equally important, in an effort to destroy solid wastages, the Government


                                              16
continues to sensitize industries to use solid wastages as raw materials. Specifically, Tanpack
and China Paper to recycle papers; Morogoro Plastic Industries, Kemi Cortex and Simba
Plastic to recycle plastic wastage; Aluminium industries to recycle metal tins; sisal factories
to recycle sisal wastages in order to generate electricity; and sugar factories to use sugarcane
residuals to produce energy.

Further, the Government continues to coordinate the activities of Global Environment Fund
in the country. Two major projects valued at USD 6.5 million were approved. Furthermore,
three projects of controlling the impact of climatic change, valued at USD 4.8 million were
prepared and presented to the Fund agency and a total of 19 small environmental projects
valued at USD 750, 910 were financed.

Goal 3: Improved Food Availability and Accessibility at Household Level in Urban and
Rural Areas

The overall objective of this goal is to eradicate food poverty through increased productivity
in food from 9 million tons in 2003/04 to 12 million tons in 2010; and maintain strategic grain
reserve of at least 4 months of national food requirement. This will result in improved food
availability and accessibility at household level in both urban and rural areas.

During the review period, the trend of food crop production was not satisfactory due to
unfavorable weather conditions. The production of maize declined by 6.5 percent in 2009,
compared to an increase of 7.7 percent in 2008. Production of rice increased by 1.2 percent in
2009 compared to 0.34 percent in 2008. Similarly, production of sorghum and millet
decreased substantially by 80.9 percent compared to an increase of 8.7 percent in 2008.
Strategic Grain Reserve collected 73,682.7 MT of maize in 2009/10 compared to 61,588 MT
collected in 2008/09.

  Table 2.7: Food Crops Production in Tanzania between 2005 – 2010 (000 Tons)
Crop                           2005       2006          2007       2008        2009
Maize                             3219        3423         3302       3556        3425
Paddy                             1168        1239         1342       1346        2952
Wheat                              102         110          83          92          97
Millet/Sorghum                     935         940         1165        1064        899
Cassava                           5539         6158        5199        5392        3568
Pulses                             886         1050        1156        1126        1085
Banana                            2972         3507        3083        2947        1929
Sweet Potatoes                    2793         4189        3965        4138        3729

 Source: Ministry of Agriculture Food Security and Cooperatives

Table 2.8 below shows that self sufficient ratio (SSR) of food for the past five years. The
trend shows that since 2005, the ratio has been above minimum. When SSR is below 100 that
implies there is food deficit, when SSR is between 100 and 120 that implies the country is self
sufficient in terms of food and when SSR is more than 120 then there is food surplus.




                                              17
Table 2.8: Trend of SSR for the past 5 years
    Year            Self Sufficient Ratio (SSR)                     Remarks
2005                             102                              Above minimum
2006                             112                              Above minimum
2007                             106                              Above minimum
2008                             105                              Above minimum
2009                             102                              Above minimum
2010                             112                                *Provision

Source: Department of National Food Security, MAFC.

Government Initiatives to Ensure Increase in Food Production
             Irrigation Farming
In 2009, a total of 326,492 hectares for paddy irrigation were developed compared to 289,245
  hecters in 2008. In 2009, a total of 37,247 hectares of irrigation farming for various crops
  were developed compared to 32,800 hectares in 2008. The projects were developed in seven
  zones which are Kilimanjaro, Tabora, Mtwara, Mwanza, Mbeya, and Morogoro. In 2009, a
  feasibility study and project designs were conducted covering a total of 275,744 hectares for
  irrigation compared to 145, 683 hectares in 2008, an increase of 89 percent. The major
  achievements, among others, include increase productivity of paddy from irrigated farms
  from 6.5 tons per hectare in 2008, to 6.7 tons in 2009. For irrigated farm, maize yield has
  increased from 0.7 to 4 tons/ha. Other crops such as beans and vegetables production have
  increased significantly. The tangible benefits include, improved food security, increased
  family income, improved housing and increased employment opportunities. Others benefits
  were enhanced ability to afford school fees and medical treatment.

Table 2.9: Development of Irrigation Services in Tanzania
Achievements                  2005       2006          2007      2008            2009
Feasibility Study- Hectares                                      145,683         275,744

Water Reservoir                                                  8               12
Developed Hectares                                               289,245         326,492
Productivity of Paddy(Tons                                       6.5             6.7
/Hectare)

 Source: Ministry of Water and Irrigation

               Extension Services and Training
During the review period, a total of 1,058 extension officers were recruited by Local
Government Authorities. Up to June 2010, a total of 1,802 extension officers were employed
and distributed to the Local Government authorities. In addition, 3,498 pre-service students
were enrolled in 2009, out of which, 2,753 students were in first year, certificate and diploma
levels, and 745 students are in second year at diploma level. Likewise, a total of 1,999 youth
are in pre-service practical training on extension services in 64 districts. In 2009, a total of 75
extension workers from private sector were trained on contract based extension services in
order to extend services to farmers. The process of building 141 centres of agricultural
resources at ward levels began in some councils in the country. The centres did contribute to
imparting knowledge and technology to farmers especially in Urambo and Lushoto Councils.
Likewise, 2,020 demonstration farms with 52,845 farmers (27,703 men and 25,142 women)



                                                  18
were established in the councils for the purpose of educating farmers on principles of modern
farming.

                 Mechanization of Agriculture
Whereas, the demand for tractors is between 1,500 – 1,800, that of power tiller it is estimated
at 1,500-2,000 and that of animal power at 40,000. In the efforts to mechanize agricultural
activities, a total of 472 tractors and 495 power tillers were imported in 2009 compared to 464
tractors and 240 power tillers imported in 2008. The increase in importation was attributed to
the rise in demand for farm implements as well as increase in access to loans for farming
implements.

Table 2.10: Tractors Importation from 2005/2006 to 2009/2010

Year                   2005/06      2006/07   2007/08    2008/09   2009/10
Tractors
                       356          445       464        472       558
Power tillers
                       100          160       240        495       1859

Source: Ministry of Agriculture Food Security and Cooperatives

                Seeds and Fertilizers
During the 2009/2010 season, the input voucher system was used by farmers to purchase farm
inputs fertilizer and improved seeds under the subsidy program. The demand for inorganic
fertilizer in 2009/2010 was estimated at 385,000 MT and the supply during the period was
237,894 MT (61.8 percent of the demand). Out of the fertilizer available, 140,550 MT were
sold to 737,000 farmers in 53 districts through the voucher system. About 1,499,000 vouchers
were used by farmers. It is estimated seed demand for cereal crops, legumes and oil seeds in
season 2009/2010 was 30,000 MT. However, the availability of improved seeds was
11,056.07MT; an equivalent of 36.8 percent of the demand. The government therefore issued
subsidy through the voucher system for sorghum 290 MT and sunflower 85.4 MT. In general,
the farm inputs availability and utilization have improved as shown as in Table 2.11.

Table 2.11. Inputs Used in 2006/07 - 2008/09 (Metric Tons)
                        2006/07                     2007/08                  2008/09
Input Type               Actual                      Actual                   Actaul
             Target                       Target                   Target
                         Achievement                 Achievement              Achievement
Fertilizer   385,000     284,925          385,000   111,530        385,000    237,894


Fertlizer
             108,703     108,703          89,820    81,980         237,894    141,050
Subsidy
Seeds        29,640      12,119.8         29,640    16,392         29,640     11,056.07

Source: Ministry of Agriculture Food Security and Cooperatives

      Livestock Production and Livestock Products Development
The production of beef, mutton, lamb, pork and chicken increased by 10.0 percent from
410,706 tons in 2008 to 452,230 tons in 2009. This was due to increase in sales of livestock as


                                               19
a precautionary measure against drought. Additionally, a decline in livestock price attracted
traders to purchase more livestock for butchery. The number of livestock sold in different
markets in the country increased from 781,230 cattle, 623,732 goats to 114,564 sheep, valued
at TZS319.2 billion in 2008/2009 to 857,208 cattle, 682,992 goats and 122,035 sheep, valued
at TZS 382.4 billion in 2009/2010. The production of milk increased to 1.6 billion litres in
2009 from 1.5 billion litres in 2008, an increase of 7.0 percent. The upward trend was
attributed to increase in production and collection as well as the sensitization campaigns on
milk consumption.

Increased Eggs Production
Production of eggs increased by 4.3 percent from 2.7 billion eggs in 2008, to 2.8 billion eggs
in 2009. Likewise, the number of chicken increased from 33 million in 2008, to 34 million in
2009, an increase of 3.0 percent. The increase was a result of positive response by poultry
farmers to use appropriate vaccine for chicken tick and increase in demand of chicken and
eggs in the market.

Table2.12: Production of Livestock Products in Tanzania (2005 to 2010)
Product            Unit Measure    2005     2006        2007        2008        2009
Meet Production
Beef               Tons                     210,370     180,629     218,976     255,178
Mutton/Lumb        Tons                     78,579      80,936      81,873      82,884
Pork               Tons                     29,925      31,721      33,307      36,000
Chicken            Tons                     69,420      77,280      77,250      78,168
TOTAL                                                               410,706     452,230
Milk Production
Cows               Litre(000)               941,815     946,524     980,000     1,012,436
Cows(High Breed)   Litre(000)               470,971     475,681     520,000     591,690

TOTAL                                                               1,500,000   1,604,126

Eggs               Total(000)               2,145,000   2,230,800   2,690,000   2,806,350

 Source: Ministry of Livestock Development and Fishery

Fisheries Production and Fish Products Development
During 2009/2010 fish catch amounted to 335,674.26 metric tons worth TZS 401.83 billion
compared to 324,821 metric tons valued at TZS 371.4 billion in 2008/2009. A total of
41,148.26 tons of fish and other fisheries products valued at TZS 207 billion were exported in
2009/2010 compared to 51,426.2 tons worth 205 billion exported in 2008/2009. In the efforts
to increase fisheries production, 19 landing sites were improved around Lake Victoria to meet
the stipulated fish and fisheries products quality standards and 1,354 samples of fish fillets,
water and sediments were analyzed for the presence of unwanted micro-organisms and
chemical residues in different laboratories of Nyegezi (Mwanza), Government Chemist
Laboratory (Dar es Salaam), Tanzania Bureau of Standards (Dar es Salaam), TPRI (Arusha),
Chemiphar (Uganda) and South African Bureau of Standards (SABS). Results indicated that
the products were safe for human consumption.

Goal 4 & 5: Reducing Income Poverty (Urban and Rural)
According to the NPS 2008/09 Report, income poverty has remained virtually unchanged in
Tanzania. It is noted that food poverty has increased (insignificantly) from 16.6 percent in


                                              20
2007 to 17.4 percent in 2008/09 and basic needs poverty from 33.6 percent to 34.0 percent.
The results show that both food and basic needs poverty have declined on average by about
0.3 percentage points per annum over the last 17 years. Trends in basic need poverty level are
summarized in Table 2.13.

Table 2.13: Poverty Levels by Headcount Ratios 1990, 2000 and 2007 (%)
 Year           Dar es Salaam     Other Urban areas    Rural areas     Tanzania
 1991/92             28.1                28.7              40.8          38.6
 2000/01             17.6                25.8              38.7          35.7
 2006/07             16.4                24.1              37.6          33.6
 2008/09             15.9                18.1              40.1          34.0
Sources: NPS Report 2010

Table 2.13 also shows that there has been a slight divergence between rural and urban areas
between 2007 and 2008/09. Apparently, basic needs poverty declined by 6.0 percent in urban
areas outside Dar es Salaam. However, there was a slight increase in poverty (2.5 percent) in
rural areas. Apparently, changes in Dar es Salaam are negligible. Further analysis of the
NPS consumption data is required to lend more confidence to these results.

The robust link between economic growth and poverty reduction is employment. However,
the Integrated Labour Force Survey 2006, pointed out that unemployment remains an issue, in
particular among the youth aged 18-34. The unemployment rate for this age group was 13.4
percent in 2006. Generally, unemployment rate is higher for females than for males, except in
the rural areas. In Dar es Salaam, for instance, the unemployment rate for females was 40.3
percent in 2006, against 19.2 percent for males.


Goal 6: Provision of Reliable and Affordable Energy to Consumers

There are two operational targets related to the provision of reliable and affordable energy to
the consumers. These are (i) liberalization of the power sub -sector effected by 2010 and (ii)
at least three (3) Production Sharing Agreements (PSAs) negotiated, concluded and signed by
June 2010.

The government continued with its efforts to increase access and reliability of electricity
supply. One of the efforts was to develop alternative sources of energy to reduce reliance on
major hydro-plants and. A total of 3,290.25 Gigawatt-hour [GWh] of electricity from hydro
generation was produced compared to 2,917.03 GWh in 2008. This translates into an increase
of 12.8 percent which is mainly due to generation of electric power from natural gas.
However, the maximum demand in the national grid was 791MW in 2009 compared to 693.8
MW in 2008. The apparent increase of in demand in the national grid was essentially due to
power loss, wear and tear of electric generating plants and of course, an increase of electricity
demand from customers.

For instance, during review period a total of 59,547 new customers were connected to the grid
and provided with electricity compared with 24,456 customers in 2007, indicating that there
was a significant increase in the number of customers who were connected and provided with
electricity during the period. The increase in the number of customers connected to the grid is
equivalent to 14 percent of all households in urban areas compared to 10 percent in 2005. The
target was to reach 20 percent. This target was not achieved due to inadequate capacity of the


                                               21
Tanzania Electricity Supply Company (TANESCO) to meet demand for electricity and
increase in the costs of connecting electricity. Indeed, rural households connected to
electricity were two percent. To address this anomaly, the Government has established the
Rural Energy Agency (REA) to speed up implementation of rural electrification project.

Liberalization of the power sub-sector
The Government continued to encourage participation of private sector investments in the
power sub-sector as part of the implementation of policy reforms to enable private power
producers to operate in this sub-sector. These producers participate in the projects generating
between 10 KW and 10 MW. During the period under review, TPCL–Moshi, Sao Hill Ltd–
Mufindi, Mkonge Energy System, Stanley and Sons (Mafia) and TANWAT – Mufindi
projects have initiated Standardised Power Purchase Agreement (SPPA) with TANESCO.

In addition, more standardized power purchase agreements and tariff guidelines, specifically
for SPPs (less than 10 MW) were developed by EWURA. It is expected that the existence of
the SPPAs and Rural Energy Agency and the Rural Energy Fund (REA/REF), will encourage
more private sector participation in the power sub-sector. REA will stimulate and co-finance
private sector led investments in modern energy services. The Electricity Act, 2008 which
allows generation and distribution to the private sector is one of the reforms which will also
increase participation of private power producers to operate in the energy sub-sector. The
enactment of the Public-Private Partnership (PPP) in 2010 will definitely attract more private
sector players to invest in the energy sub-sector.

However, in an effort to increase transparency and accountability, energy sector was
earmarked as one the sectors to feature in the Extractive Industries Transparency Initiative –
EITI. Therefore, more information about energy sector will be easly available and accesible
and thus help to increase more participation of private sector investments in the power sub-
sector.

Production Sharing Agreements
During the period under review, two active Production Sharing Agreements (PSAs) were
negotiated and one PSA was signed. The companies involved and their agreements and their
respective areas of operation are as follows: Beach Petroleum- Company Lake Tanganyika
South (exploration and production) agreement was signed; Tullow Oil Company -Lake
Tanganyika North the (exploration and production) agreement was not concluded; and
Motherland Industries Company Malagarasi (exploration and production agreement) initiated
and negotiations are on-going.

Measures taken to ensure provision of reliable and affordable energy
The Government spearheads its efforts to ensure the provision of reliable and affordable
energy through the following measures:
(a) Strengthening of existing generation capacity, increasing energy supply as well as
initiating new measures to increase energy supply. These measures are:
  i.     Construction of a 45 MW permanent gas fired plant at Tegeta. This was completed in
         December, 2009;
  ii. Commissioning of four ABC machines (6.25 MW) at Kigoma Municipal Council
         each with a capacity of producing 1.25 MW;
  iii. Construction of a 8.1 MW three plants at Somanga Fungu. This project has been
         completed;




                                             22
 iv.   Research on geothermal energy in the Lake Ngozi area in Rungwe District. This was
       carried out in an effort to improve databank on potential areas for investment;
 v.    Electrification of Mkinga, Kilindi, Uyui, Bahi and Kilolo district headquarters. This
       undertaking has been concluded.

However, the process of procuring 100 MW Ubungo II gas plants and 60 MW plant in
Nyakato Mwanza is underway and tender evaluation has already been completed.
(b) During the year under review, the Government implemented the Tanzania Energy
Development and Access Expansion Project (TEDAP) to enhance access to power supply.
This is a World Bank funded project which aims at:

 i.    On-grid system reinforcement and rehabilitation of major load centers like
       Kilimanjaro, Arusha and Dar es Salaam in order to improve availability, reliability and
       reduce losses and
 ii.   Off-grid systems enhancement where electricity access will be boosted through small
       power development projects based on solar PV, small hydro and biomass. More than
       100 MW will be generated from small power systems reaching more than 100
       households, schools, health centers, hospitals and small income generation business in
       more than six regions in the next four years.

Petroleum and Natural Gas
During the period under review the Government spearheaded its efforts of increasing
awareness on the benefits of using natural gas, available in the country, as an alternative
source of energy. The construction of CNG compression and filling stations at Ubungo was
completed as a move to support this effort. The connection of natural gas supply to
Movenpick Hotel and 13 TPDC’s estate houses, convertion of 14 petrol cars into gas using
system and an increase of gas using industries from 26 in 2008 to 32 in 2009 were some of
the realised outputs from those efforts. Moreover, research on better way of promoting use of
LPG was done at Mtwara, Kahama, Bariadi, Kigoma, Kasulu, Kibondo, Singida, Mpwapwa
and Same.

Alternative Sources of Energy
The Government continues to pursue efforts aimed at developing alternative sources of
energy to reduce reliance on major hydro-plants. Some of the initiatives undertaken to
promote use of alternatives sources of energy were:
    (i) Solar Energy: The UNDP/GEF solar electricity project was replicated in Mwanza,
        Mara, Kagera and Shinyanga regions. This replication facilitated the installation of
        132 solar photovoltaic (PV) systems in secondary schools, dispensaries, health centres
        and police stations in the Lake Zone. Solar replication of about 1 MW was also
        installed at Sumbawanga district in Rukwa Region through Sustainable Solar Market
        Packages – SSMP project and plans are underway to replicate the initiatives in
        Kagera, Kigoma, Ruvuma, Shinyanga and Tabora regions, under the World Bank
        financed Tanzania Energy and Access Expansion Development Program - TEDAP.
        Also, some projects were implemented in Rukwa, Kigoma, Ruvuma, Shinyanga, and
        Tabora Regions. Other solar electricity proposals, through SIDA, cover Tabora,
        Singida, Manyara, Iringa, Morogoro, Tanga, Coast, Rukwa, Kigoma, Mbeya,
        Ruvuma, Mtwara and Dodoma regions. In addition, the government, through REA,
        conducted Lighting Rural Tanzania Competition 2010 financed by World Bank in an
        effort to replicate in Arusha Region. Ten winners were obtained and are expected to
        start implementation. The Government, through MEM, conducted training to solar


                                             23
    energy providers. During the period under review, a number of solar PV dealers were
    trained on customers care. Moreover, 200 artisans were trained on how to install and
    maintain solar home systems.
(ii) Wind Energy: Wind energy project producing 10 kW at Wama Nakayama-
    Nyamisati Sekondary School in Rufiji district was completed. In addition, the
    Government, in collaboration with Denmark, conducted studies and mapped potential
    areas for generating electricity using wind energy in regions of Arusha, Dar es
    Salaam, Tanga, Mtwara, Iringa, Kilimanjaro, Manyara and Rukwa. The potential sites
    for investments in wind energy include Karatu in Arusha, Gomvu in Dar es Salaam,
    Mkumbara in Tanga, Litembe in Mtwara, the area around Makambako in Njombe
    District, some areas in Singida Region and Same District in Kilimanjaro Region. More
    research work on wind power potentials are expected to be conducted in Rukwa and
    Mafia island. The feasibility studies for Makambako and Singida have already drawn
    interest of investors in setting up wind farms for electricity generation. Two firms
    called Wind-EAI and Power Pool East Africa are expected to establish two wind
    energy farms at Kititimo in Singida Region after getting the necessary approvals from
    TANESCO and EWURA. To begin with, Wind-EAI is developing 50MW and Power
    Pool EA 30MW. Power Pool EA has also shown interest on the Makambako site. The
    fact that wind based technology is considered environmental friendly gives an added
    advantage to investors who can draw on benefits under Clean Development
    Mechanism (CDM) from carbon credits.

(iii) Bio fuel Energy: During the period under review, the task force to coordinate bio-
   fuels in Tanzania was formulated. Guidelines for bio-fuels development were
   completed. Further, Terms of Reference to obtain consultants for preparation of a Bio-
   fuel policy, laws, and institutional structure were prepared. The task force will is also
   required to identify bio-fuel agro-zones in the country among other duties. The
   requisite ministry continues to promote, monitor and coordinate all initiatives and
   activities on bio fuel use and development. Thirty institutions were involved in bio
   fuel development and more private sector developers are showing interest in
   promoting environmental friendly sources of energy.

   These developers include: Sun Bio fuels Tanzania Ltd (Kisarawe-Coast Region),
   Sweden’s Sekab BioEnergy Tanzania (Bagamoyo and Rufiji), PROKON Renewable
   Energy Solutions and Systems Ltd (Mpanda), Bioshape Tanzania Ltd (Kilwa),
   Diligent Tanzania Ltd (Arusha, Manyara, Kilimanjaro), TaTEDO (Coast, Dar es
   Salaam, Arusha), Kikuletwa Farm (Kilimanjaro), JKT (various camps), and the
   Farming for Energy for Better Livelihood in Southern Africa (FELISA) in Kigoma
   Region. It is evident that large scale bio-fuels production, such as ethanol from sugar
   cane, palm oil, and jatropha would require supportive policies and regulations for
   start-ups, in order to secure investments and markets.

   In addition, concerns on the need for ensuring national food security, environmental
   conservation, and preserving land for future agricultural expansion and forest
   development have to be taken on board in the course undertaking bio-fuel projects

(iv) Geothermal: The estimated potential of this source of energy is about 650MW with
   potential sites being Lake Natron, Lake Manyara, Kisaki, Luhoi in Rufiji, Songwe in
   Mbeya and Lake Ngozi. Initial assessment for geothermal resources was conducted at
   Kisaki in Morogoro region. The assessment revealed existence of geothermal potential


                                          24
       in the area. However, further assessment needs to be undertaken using geochemical,
       geophysical and geological methods. Also, research on geothermal energy in the Lake
       Ngozi area in Rungwe District was carried out and confirmed a potential of more than
       10MW.

2.3. Progress Related to Relevant Programmes and Reform Processes
Agriculture Sector Review 2009/2010
The review study provided a detailed analysis of the challenges and constraints facing the
sector, drivers of growth, sector productivity, general performance and other issues on the
implementation of ASDP. The Review specifically revealed that, the percentage of families
experiencing food shortage has decreased from 52.3 percent in the year 2006/2007 to only 18
percent in the year 2009, likewise household with food surplus increased from 16.3 in
2006/2007 to 40.9 percent in 2009. On the other hand milk production from smallholders has
increased from less than 2 to 3 litters per cow per day from upgraded local cattle up to 16
litter per cow per day. As for DADPs implementation, there has been some progress made in
terms of achieving the set targets. For instance, under the investment sub-component, out of
100 irrigation schemes planned to be constructed, 76 were constructed, (76% achievement);
54 irrigation schemes were rehabilitated, out of planned 65 (83% achievement); and 70 dip
tanks were to be constructed and 74 others rehabilitated (achievement was 70% and 96%,
respectively).

Besides those few success stories, in reality capacity of the sector to ensure national food
security is yet to be attained, for several reasons. Production is still largely undertaken on
small-scale holdings, using inadequate tools (mostly the hand hoe for land operations) and far
from adequate technology - many cannot afford inputs for lack of savings and inability to
access production credit; while at the same time the input subsidy provided by the
government is still inadequate compared to the demand and its provision for selective number
of regions. Input prices in recent years have escalated both domestically and globally. Pasture
development support services are inadequate to satisfy the demand of stakeholders: livestock
farmers (nomadic and non-nomadic), ranch owners, etc.

Other important areas identified during the Agriculture Sector Review 2009/20010 were;
 i.    Inadequate extension services due to inadequate number of extension staff . Those
       available have to cover large areas; and may have no transport; or if he/she has, may
       not be provided with adequate resources to buy fuel
 ii. Lack of access to proper farming machinery/implements; and labour-saving
       equipment (motorized seedling planters, weeding machines, appropriate tractors and
       so on).
 iii. Inadequate institutional arrangement. One should mention the need to separate the
       crop extension unit and the livestock extension units at district level (just as is the case
       at national level) so that each unit can report, receive orders from, and report
       independently to the designated authority at par.
 iv. There has been inadequate sensitization/ training on use of the subsidized inputs; the
       provision of requisite extension services is essential for supporting proper use of the
       subsidy. In Mara Region, for instance, reports showed shortage of 300 village
       extension staff, a factor that was impairing the effective use subsidized inputs. In
       Rorya District, on its part, most of the subsidized accaricide sent for cattle dipping
       could not be utilized since the cattle keepers in the area were not sensitized on the
       importance and use of that input



                                                25
 v.    Existence of price cartels - practiced by some groups of particular export crop buyers;
       and even domestic market crop buyers. This is experienced at auctions and is practiced
       by wholesalers (for instance fruit markets at Buguruni and in some neighbouring
       market centres). This anomaly is spearheaded by the fact that, most farmers are more
       or less price-takers for both input, crop and livestock products for lack of market price
       information. Most farmers have low bargaining ability/power. A related challenge is
       that of using improper scales and units, e.g. rumbesa.
 vi. Planning capacity: 73 percent of LGAs performed well in respect of linking of
       mission/objectives/ targets with ASDP objectives. 69 percent showed linkage with
       targets; and 59% on analysis of key problems.
 vii. Poor grading of crop by farmers, prior to getting it into the primary society store;
       hence depressed prices or rejection. The buying primary societies (or agent) not doing
       grading due to either pressure of the buying exercise from the farmers, or due to not
       having grading equipment. The worst part is the fact that, some farmers bring for sale
       produce containing some produce that is either immature or unripe, or soaked in water
       to increase weight.
 viii. High interest charges have made some cooperative unions to either go bankrupt or
       accumulate unserviceable debts. The poor management of some cooperative unions
       also accounts for their inability to buy crops and to properly utilize the loans obtained
       from banks.
 ix. Inadequate (physical, financial) management knowledge/ skills in cooperative
       societies or marketing societies - low / poor physical, financial and negotiating skill.
       Other Cooperative societies/ unions have no working capital of their own to enable
       them to purchase of the crop from their farmers as a result farmers are not paid cash
       upfront.
 x.    Some of the researchers in agricultural research stations were reported to have left
       work due to what they said was low salaries and lack of incentives. Apparently, by
       regulation their salaries cannot be topped up from the Capital Development Fund.
       Lack of incentives breed poor work, so it is an area the government and stakeholders
       should look into and redress.
 xi. On the inadequate usage of inputs, there is still rampant land degradation due to poor
       land use methods as result of inadequate soil conservation measures on crop lands and
       overgrazing by livestock keepers. There was also under –achievement, for instance,
       there was a target to construct 108 farm produce storage structures but the
       achievement was 47 percent.

Energy Sector Review
The Joint Energy Sector Review (JESR) was conducted in October, 2009 and realised that
despite the challenges facing the sector, energy sector is showing steady growth and plays a
significant role in the national economy. The following were the recommendations made by
the JESR, 2009:
    (i) Sources of funds for the Energy Sector Development: Improving generation
        capacity, transmission and distribution is key to the expansion of power supply in the
        country. This requires substantial funding by the Government and support from
        Development Partners (DPs). Activities like gas development for power generation,
        oil exploration, establishment of strategic fuel reserves and the development of new
        and renewable energy sources all require both financial investments and technical
        support from DPs and the private sector at large to enable the Government to meet its
        economic growth targets as expressed in MKUKUTA, Vision 2025 and MDGs. It
        should be understood that both financial investments and technical support in the


                                              26
       energy sector are vital due to the fact that the sector is one of the key engines for
       economic growth and development in the country. Therefore, it is hereby
       recommended that efforts need to be undertaken to improve mobilisation of funds and
       increased allocations and disbursements of funds to energy projects.

   (ii) Rural Energy: The establishment of REA/REF reflects Government’s commitment
       towards supplying energy to the rural sector. However, in order to improve access
       and energy penetration into the rural areas, efforts need to be directed towards the
       development of new and alternative energy sources. During the year under review, the
       REA and REF continued to monitor and implement rural electrification projects in an
       effort to secure rural energy supply. However, inadequate financial and technical
       capacities are challenges facing REA as an implementing institution of rural
       electrification projects. On the other hand, low private investment in rural energy is a
       challenge facing electrification in rural areas. Investments are perceived as
       unprofitable by the private sector. It was therefore recommended that, adequate
       incentives should be put in place to attract private investments into the sector. The
       recommended incentives were; low cost technologies and subsidizing electricity
       connections in the rural areas where people’s ability to afford connection charges is
       very low.

   (iii) Governance: The issue of governance in the energy sector resurfaced during the
        JESR, 2009. It was recommended that the Government should be committed in
        observing and enforcing the Acts regulating the sector such as the Electricity Act of
        2008, the Petroleum Act of 2008 and the soon to be enacted the Gas Act. The
        emphasis was placed on the need to clearly define the mandates of key players
        (MEM, EWURA, TANESCO, REA and other operators).

Transport Sector Review
In pursuit of SWAP, the Ministry of Infrastructure Development (MOID) in collaboration
with the Prime Minister’s Office, Regional Administration and Local Government (PMO-
RALG) held the first Joint Infrastructure Review in Transport and Communications in
October 2007. The 2nd JISR in Transport was held in October 2008. Outputs of the two JISRs
were valuable inputs for feeding into MKUKUTA Cluster 1 as well as the October 2007 and
November 2008 GBS Reviews.

Progress in the Implementation of Agreed Issues in the JISR 2009
The status of implementation of issues raised during the last JISR 2009 is as follows:
 i.    Continuous Reforms in the Transport sector: Whereas the Road Safety Policy was
       approved by the Government in January 2010, the Road Safety Bill is still under
       preparation. The Government has obtained World Bank funds to support the Safety
       and Environment Division in MoID in the establishment of the Road Safety Agency.
       The Government is looking into the possibility of amending the Road Tolls Act (1998)
       to accommodate other alternative sources of financing to expand the Roads Fund base
       since it has relied only on fuel levy as the sole source of financing.
 ii. Progress on TSIP Implementation: The Ministry continues with implementation of
       TSIP Phase 1 (2007/08 -2011/12) which ends in June 2012. The total financial
       requirement for Phase 1 is about USD 6.2 billion. The study on Assessment of
       Transport sector Performance done in mid-2009 acknowledged that 40 percent of the
       priority projects under Phase 1 of the TSIP have been implemented, and that about 64
       percent of the financial expenditure was already utilized by March 2009. The delays in


                                             27
      releasing development funds as well as the escalation of unit costs of construction
      particularly for road works remain a big challenge towards achievement of the TSIP
      implementation targets.
 iii. Finances: Traditional financing sources for implementing TSIP remained the same –
      that is the Government and DPs, including Global Lenders such as World Bank and
      other international financing institutions. The current Government policies emphasize
      the enhanced involvement of private sector in infrastructure development. Public
      Private Partnerships (PPPs), Infrastructure Bonds, and market securities have also
      been proposed as alternative financing modalities. The approval of PPP Policy and the
      PPP Act in 2010 is supportive milestones towards successful implementation of the
      TSIP.
 iv. Local Government Transport Programme (LGTP): One of the agreed issues for
      implementation as per JISR 2009 was the need for the Government to secure full
      funding for the LGTP from its own budget and pursue alternative sources of financing.
      Since October 2009, the LGTP has not received any funds from either the GOT or
      DPs. The issues of LGTP financing remains to be a challenge for follow up in 2010
      JISR. However, the Government allocated about TZS. 17.5 billion for implementation
      of this programme for financial year 2010/11.
 v. Increasing Unit Costs of Road works: By mid 2010, the Government undertook a
      study to assess the increasing unit costs of road works. The study team reviewed 33
      roads projects done since IRP (Integrated Roads Project) in 1995. It reviewed the
      study done by the World Bank on Unit Costs & Governance covering 13 Sub-Saharan
      African countries, as well as, similar study report for Zambia done in 2007. The draft
      report is at its final stage, however some preliminary findings show that, among other
      things the increase in unit costs is caused by the following reasons:- (i) natural
      increase of prices of bitumen, fuel and labour, (ii) poor preparations of contracts, (iii)
      poor project management by contractors, (iv) delay payments and (v) corruption.
 vi. Urban Mobility: The major issue here is the implementation of the DSM Transport
      Master Plan and the establishment of DUTA as alternatives for curbing DSM City
      traffic congestion. The feasibility study of DUTA establishment is at the final stages.
      Regarding the DSM Transport Master Plan, the Government is mobilizing resources to
      implement various recommended projects in the plan. Several roads at the DSM city
      centre are currently rehabilitated to minimize traffic congestion.
 vii. Decongestion of Dar es Salaam Port: According to June 2010 statistics, the
      container dwell time reached 12.5 days, surpassing the target of 16 days set for 2010,
      while the ship turnaround time reached 4.5 days, against the 12 days target for 2010.
      Regarding other strategies to improve the port's operation and attract more in-country
      and transit cargo, the Government is search for funds to conduct feasibility study and
      to design the new Mwambani Port in Tanga and Kilwa. The feasibility study for
      Mbegani port has been completed; it shows that the project is viable. The government
      is looking for strategic investors. In the case of the Kisarawe freight station, the draft
      final report for feasibility study has been prepared.

Improvement of Performance of the Railway Sub-sector: In April 2010 the Government
declared the concession agreement with RITES of India as 'not working properly'. In that
respect, all shares of the concessionaire (51%) will be bought by the Government to enable it
to run the TRL operations and eventually come up with options on the future operations of
railway line. The Government conducted an inter-modal study whereby findings make it
clear that short and medium term measures are needed to revive the railway system, including
rehabilitation of the existing line rather than waiting for upgrading to standard gauge.


                                              28
2.4. Challenges and the Next Steps
Agriculture Sector
The main challenges facing agricultural sector in Tanzania as identified by the Agriculture
Sector Review 2009/2010 include the following:
i.    Inadequate access to agricultural production credit, which resulted in inadequate
      purchasing power to procure the required inputs. For instance, fertilizer is available,
      but it is expensive for farmers to buy adequate amounts. In some cases, farmers do not
      use fertilizers at all. This is evident in a number of irrigation schemes in MWanza,
      Dodoma, Tabora, Mbeya, and Morogoro. Yet the farmers seem to have hardly any
      alternative to chemical fertilizers, as other possibilities like the use of either green
      manure or compost manure appear to be a remote idea in the minds and practices of the
      farming communities.
ii. Inadequate water in many irrigation schemes has made such schemes to operate under
      capacity. For instance, at Lower Moshi Irrigation Scheme, only half of the developed
      irrigation land is irrigated each year due to shortage of water during dry season.
      However, during rainy season the land is flooded, thus making it difficult to grow
      crops.
iii. Existence of inefficient/ inadequate market outlets for farm produce, including those
      caused by frequent bans on cross-border food exports (Mbeya, Kilimanjaro, Ruvuma,
      and Mtwara regions are particularly affected by such bans). Poor coordination and
      weak linkages among players, including weak producers' associations and inadequate
      agro-processing (value addition) account for the inefficiency of the marketing system.
iv. Over-dependence on one export market (for instance India for raw cashew nuts) or
      having too few buyers at auctions
v.    Most small scale agro-processors have not been provided with adequate training on
      processing skills due to scarcity of qualified agro- processing trainers..
vi. Disbursement of funds and poor fund flow information: Although there has been
      delayed disbursement of funds to LGAs in the past, this situation has improved
      considerably 2008/09. However, there are still some pockets of delayed disbursements
      or delay in processing the already disbursed funds. For example, in Rorya District
      Council, funds for first quarter FY 2009/2010 were received on 11th of September 2009.
vii. Procurement procedures are a great challenge as far as implementation in some of the
      DADPs is concerned. The non-availability of qualified contractors at village/district
      level is one of the challenges as well.
viii. Inadequate technical services: A number of investment projects are not implemented on
      time due to inadequate technical personnel to supervise them. For instance, with regard
      to irrigation infrastructure, there are hardly qualified irrigation engineers in districts to
      supervise irrigation development schemes.
ix. Several constraints hamper mechanization of agriculture. These range from low
      purchasing power, cost of agricultural machinery, lack of agricultural credit; (banks
      have not been too ready to provide agricultural credit, lack of well trained operators and
      mechanics for agricultural machinery, to lack of suitable machinery packages for main
      agricultural operations.

In an effort to address the above challenges, the government has formulated short, medium,
and long term strategies bring about Green Revolution in the country. The main areas of
focus are the foloowing:
 i.    Ensure timely availability and distribution of farm inputs to farmers
 ii. Strengthen research and extension services

                                                29
 iii.   Protect crops against pests and diseases
 iv.    Promote agricultural production according to agro-ecological zones.
 v.     Promote mechanization of agriculture.
 vi.    Provide support and facilitate agro-processing of commodities
 vii.   Put in place policies that enhance private sector participation in the agricultural sector.

Livestock Sector
The challenges facing te sector have been identified as follows:
 i.    Enhancing the commercialization of the livestock industry while at the same time
       increasing per capital consumption of livestock products;
 ii. Satisfying market requirements in terms of volume, quality and sanitary needs
       including livestock traceability;
 iii. Adoption of improved technologies to improve production and productivity
 iv. Enhancing capacity to control existing and newly emerging livestock diseases
 v. Developing agri-business sector to provide employment opportunities
 vi. Ensuring availability of participatory, cost effective and demand driven livestock
       services, including training of extension officers
 vii. Changing livestock farmers’ attitude and mindset by abandoning traditional to
       livestock practices
 viii. Building capacity of stakeholders, including pastoralists, on environmental protection
       and sustainable livestock farming
 ix. Provision of adequate grazing land and infrastructure.

During 2010/2011 period the Government will undertake the following initiatives to address
the above challenges and achieve Kilimo Kwanza goals:
  i.   Strengthen livestock extension services and research on high yielding animal breeds;
  ii. Provide targeted subsidies on livestock inputs;
  iii. Promote investment in livestock sector;
  iv. Construct and rehabilitate livestock infrastructures such as dams, cattle dips, abattoirs
       and markets;
  v. Improve access to artificial insemination services and improved breeds.

Fisheries Sector
The following are challenges facing the sector:
 i.    Curbing increased use of illegal fisheries gears and methods and trafficking of fish and
       fisheries products across the borders;
 ii. Tapping the vast potential for aquaculture development that could contribute
       significantly to food security, employment creation and enhance national income
 iii. Enhancing human and financial capacity and infrastructure provision for sustainable
       management and utilization of fisheries resources;
 iv. Reducing post-harvest losses in various fish species attributed to poor infrastructure
       (transport and distribution networks), inappropriate technologies in fish handling and
       processing facilities;
 v. Reducing over dependence on capture fisheries;
 vi. Mobilization of investments for the fisheries sector development
 vii. Inventorisation, conservation and utilization of fisheries resource base




                                                30
      In order to achieve the targets earmarked for the development of in fisheries sector, the
      following measures will be undertaken:
       i.    Prevention and combating of illegal fishing and improving fish breeding environment
       ii. Improvement of fishing infrastructure including construction of fish receiving stations
             and cold storage facilities;
       iii. Promotion of fish farming and strengthening of aquaculture production and services;
       iv. Improvement of the collection, processing, analysis and dissemination of information
             on fisheries
       v. Promotion of investment in the fisheries sector.

      Energy Sector
      The energy sector is faced with several constraints and challenges as follows.

  i.     Slow pace of implementation of electrification projects due to inadequate financing and
         ultimately release of funds
 ii.     Mismatch between demand and supply of electricity
iii.     Power losses associated with poor maintenance of power plants and transmission
         infrastructure.
iv.      Unreliable power supply due to poor infrastructure for transmission and distribution of
         energy
 v.      Delayed implementation of some energy related projects due to global economic and
         financial crisis
vi.      Fluctuation of prices of petroleum products in the world markets which lead to increased
         costs of supply of power to consumers. This in turn, weakens affordability of the
         population to access power.

      Road Subsector
      The following are the challenges experienced in the course of implementing maintenance and
      road development programmes:
        i.   Low capacity of the local construction industry: Many contractors lack requisite
             equipment and financial capital to execute major maintenance works. Paved road
             works are particularly affected due to lack of specialized equipment for works
             involving bitumen. Surely, TANROADS cannot solve this problem alone; other
             stakeholders’ contribution is required in enhancing the capacity of local contractors.
             TANROADS has undertaken a number of efforts to address this. They include:
             improving the packaging of contracts to sizes that can enable contractors invest in
             equipment; and guaranteeing payment to suppliers for loaned/hired equipment.
        ii. Contracts Management Skills: Human capacity building is a continuous process being
             spearheaded by TANROADS in order to impart skills. Training in project or contracts
             management and procurement is being provided on continuous basis to the staff
             mainly through courses offered within the country. Various development partners are
             also assisting in this area. These include DANIDA, JICA, EU and World Bank.
        iii. Insufficient Supervision Capacities: The capacities for supervision in terms
             availability of adequate human resources and requisite equipment and tools is a
             challenge. Therefore, effective supervision of work sites has not been realized.
        iv. Inadequacy of Axle Load Control: The current operations for axle load control are
             mainly concentrated on major corridors leaving a number of roads without control
             measures. To that effect, roads in regions without temporary or permanent
             weighbridges are prone to damage due to overloaded vehicles. TANROADS will



                                                    31
        continue to evaluate the situation and put in place plans for installation of
        weighbridges whenever the allocated budget allows.


                          CHAPTER THREE:
            IMPROVED QUALITY OF LIFE AND SOCIAL WELLBEING

3.1. Introduction
This chapter reports on the progress towards achieving MKUKUTA outcomes on quality of
life and social wellbeing. It also attempts to assess the achievements on the quality of life and
social well being over the past five years of MKUKUTA implementation. MKUKUTA
appreciates the central role of investing in people towards promoting human development and
poverty reduction. Therefore, issues of better health, higher education levels, and improved
nutrition, water and sanitation, in addition to raising individual incomes, are ingredients of
non-monetary aspects of the quality of life.

The progress in achieving the above aspects is assessed in terms of equitable access to quality
primary and secondary education, universal literacy among men and women, and expansion
of higher, technical and vocational education. It is also assessed in terms of improved
survival, health and well -being of children, women and vulnerable groups. Other aspects
captured by the assessment include, access to clean, affordable and safe water, improved
sanitation, adequate social protection and rights of the vulnerable groups. The report also
covers issues of performance and challenges that inhibit systems from effective provision of
universal access to quality public services that are affordable and available. Indeed, effective
provision would have translated into wellbeing of the targeted beneficiaries.

The chapter also report on the progress of key reform processes across Cluster II. It
concludes by making reference to lessons and best practices learned with the view of
improving implementation effectiveness in subsequent years. The following sections gauge
progress achieved towards each goal using requisite indicators.

3.2 Performance

Goal 1: Equitable access to quality primary and secondary education for boys and girls
universal literacy among men and women, and expansion of higher, technical and
vocational education

Education is one of the major indicators of social well being and human development. Thus,
there is a need to ensuring that the population has equal and continuous access to quality
formal and non-formal education. Such access unlocks opportunities for individuals to
advance and promotes country's human development. The government, through the Education
Sector Development Programme (ESDP), has been implementing a number of programs
across all levels of education, with the aim of attaining the set targets under this goal.
Progress on this goal is monitored through the following indicators:

 i.     Net enrolment (pre primary and primary)
 ii.    Cohort completion rate
 iii.   Percentage of student passing primary school
 iv.    Pupil – Teacher ratio
 v.     Percentage of qualified teachers


                                               32
 vi.     Pupil –Text book ratio
 vii.    Transition rate (Grade 7 – Form 1)
 viii.   Literacy rate among age 15 and above
 ix.     Net secondary enrolment
 x.      Percentage of student, passing Form 4 examination
 xi.     Enrolment in higher education
 xii.    Technical Education and Vocational Training

Pre-primary Education: The government has continued to undertake various measures to
promote provision of education, at all levels, as stipulated in the 2nd phase of Primary
Education Development Plan (PEDP). This has resulted in impressive performance. There
has been an increase of 3.3 percent of pupils enrolled in pre primary schools in 2010
(925,465) compared to the same in 2009 (896,146). The increase comes mostly from the non
government schools. In terms of gender parity, the ratio is almost 1:1 between boys and girls.
That is 461,628 were boys while girls were 463,837. However when comparison is made
between 2005 and 2010 the increase is significant. The number of pupils enrolled in pre-
primary education increased from 638,591 in 2005 compared to 925,465 in 2010. The
number of females were 319,974 and 463,837 in 2005 and 2010, respectively. This
performance is largely attributed to the government policy on pre primary requirement and
enhanced private sector participation in the education sector. Figure 3.1 provides a trend
analysis of both net enrolment rate and gross enrolment rate of pre-primary education for the
past five years. Both ratios show a series of upward movement, indicting that the overall
enrolment has been rising through out the period under review.




Source: MEVT – BEST 2010

Primary Education: The Government continued with the implementation of the second
phase of Primary Education Development Program (PEDP II, 2007-2011) with the aim of
ensuring that the its objective of providing free pre-primary and primary education is
achieved. It is observed that, there was a slight decrease (0.3 percent) in primary school
enrolment from 8,441,553 in 2009 to 8,419,305 in 2010. Out of these, 4,203,269 were boys
while 4,216,036 were girls. During the period under review, the government made a
resolution to enroll children aged 6 years in Standard One. This resulted in increased


                                             33
enrolment of 67.8 percent into grade One in 2010. The enrolment in primary school has thus
increased by 5.8 percent between 2006 (7,959,884) and 2010. The Gross Enrolment Ratio
(GER) was 106.4 percent in 2010 and Net Enrolment Ratio was 95.4 percent, indicating
enough absorption capacity at primary schools for all school ages (7 – 13). The number of
pupils with disabilities in primary school reached 29,287 out of which 16,934 were boys and
12,353 were girls in 2010. Figure 3.2 displays trend analysis of the enrolment rates for the
past five years.
                 Figure 3.2: Trend Analysis of Primary Education NER and
                 GER                      for 2006-2010


                  120.0
               Rate
                  110.0

                  100.0

                   90.0

                   80.0
                            2006         2007          2008          2009    2010

                    NER     100.0        97.3           97.2         95.9    95.4
                    GER     112.7        114.4         112.3         110.5   106.4
                                                       Years


                                                      NER      GER

Source: MEVT – BEST 2010

The government has spearheaded its with efforts to improve quality of education by training
and recruiting primary school teachers. As of 2010, 94.5 percent of primary school teachers
were qualified at Grade A and above. The Pupil – Qualified Teacher Ratio thus improved
from 1:64 in 2008 to 1:54 in 2009 and 1:51 in 2010 against the required ratio of 1:40. During
the period 2005 – 2010, 12,464 teachers with grades B and C were trained and promoted to
grade A. Subsequently, the number of pupils passing Primary School Leavers Examination
(PSLE) has been on the decline for three consecutive years, from 2007 to 2009. The
percentage of pupils passing the primary school leaving examination (PSLE) declined from
62.7 percent in 2008 and 49.4 percent in 2009. Nonetheless, the concern about quality of
primary has remained a major challenge, which the government continues to address. The
poor quality of primary education manifested itself by the high pupil/teacher ratio - 1:54 in
2009 and 1:51 in 2010.




                                                 34
                                   Issues on Quality
      Quality improvement is the major component of PEDP II, focusing mainly
      on improved teaching approaches and methods in classrooms, ensuring
      availability of quality teaching and learning resources and the necessary
      support for maintaining educational standards. Furthermore, there have been
      efforts to improve the quality of education by increasing number of
      qualified teachers and construction of classrooms. However, the quality of
      education needs to be sustained by sustained recruitment of qualified
      teachers, provision of in-service training, regular quality assurance and
      provision of appropriate teaching and learning materials.

      Source: Education Sector Performance Report (2009/2010).


Literacy rate among age 15 and above: The problem of rising illiteracy rate among the
poorest people is widely acknowledged as a stumbling block on efforts geared towards
eradicating poverty. The government has embarked on a program that will ensure that all
illiterate youth and adults have access to quality education as a way of improving of people’s
livelihoods and creating a learning society which is a key factor for sustained social and
economic development. The improvement of literacy is being addressed by ensuring the
attainment of the objectives of the universal primary education, through the Primary
Education Development Plan (PEDP), and revamping adult literacy programme, through the
Adult and non Formal Education Strategy 2003 – 2008. Currently, the problem is being
addressed through the “Yes I can” literacy Development Project, 2008/09 – 2012/13.
                            Gender Parity Index (GPI)
       The Gender Parity Index (GPI) for primary education has virtually
       been achieved at a ration of 1:1. This shows that boys and girls are
       equally enrolled in primary schools. This indicates that Tanzania is on
       track to realize Eduction for All (EFA) targets and MDGs by
       eliminating gender disparity at primary education level by 2015.

       Source: Education Sector Performance Report (2009/2010).


Secondary Education: The government continued with expansion of secondary education in
line with the education policy and successful implementation of the Primary Education
Programme (2002-2006). During the period 2005 – 2010 the number of secondary schools
increased from 1,745 to 4,266. These include 3,397 community schools and 869 private
schools. During the same period, the number of secondary school teachers increased from
23,905 in 2005 to 40,517 in 2010. As a result of these efforts, the Gross Enrolment Ratio
(GER) in secondary schools (Form 1 – 4) increased to 47.3 percent in 2010 from 20.2 percent
in 2006. The Net Enrolment Ratio (NER) also increased from 13.4 in 2006 to 30.8 percent in
2010. The GER is generally higher for boys than girls. There has also been an increasing in
trend for both GER and NER during the period. The GER for Form 5 and 6 has also been on
an increase during the period 2006 – 2010. That is 4.8 percent in 2010 from 3.2 percent in
2006. The NER reached 1.9 percent in 2010 compared to 1.0 percent in 2006.




                                             35
The gender parity in secondary education has also recorded significant progress. In 2010, the
number of students in secondary schools (Form 1 – 6) increased to 1,638,699 from 524,325 in
2005, equivalent to an increase of 1,114,374 pupils. The number of girls was 728,528, in
2010, (equivalent to 44.5 percent) and boys were 907171, (equivalent to 55.5 percent)
compared to 244,571 girls (equivalent to 46.6 percent) and 279,854 boys, (equivalent to 53.4
percent) in 2005. Figure 3.3 provides a trend analysis of both NER and GER for secondary
schools for the last five years. Both NER and GER have been increasing from 2006 to 2010,
implying that over the last five years the rate of enrolling students at the official schooling age
improved overtime.




Source: MEVT – BEST 2010

Transition rate from Form 4 to 5 has been fluctuating over the past five years. This aspect
justifies the long voiced concerns about the deteriorating quality of secondary education. This
underscores the point that rapid education expansion has its costs and risks. The completion
rate has improved significantly, reaching 36.1 percent by 2009. The percentage of student
passing Form 4 in 2009 has been mixed, explained partly by changes in the drop-out rates
among Form 1 – 4 students. The pass rate has been fluctuating over the period. For instance,
in 2005 it was 89.3 percent, as compared to 89.1 percent in 2006, but rose to 90.3 percent in
2007. In 2008 the pass rate went down to 83.6 percent and further down to 72.5 percent in
2009.

Higher Education: As regards to higher education there has been an impressive performance.
The number of students enrolled in government and non government universities and colleges
increased to 118,951 in 2010 (of which males were 76,936 and females 42,016) as compared
to 40,993 students in 2005/06. The impressive performance in higher education is largely due
to increased availability of loans from the Higher Education Students Loans Board (HESLB)
and the raising number of public and private institutions providing higher education.

Technical and Vocational Education Training: Students enrolled in technical colleges
increased from 50,173 students in 2005, (of which 20,493 were males and 29,680 were
females) to 169,124 students in 2010 (of which males were 97,428 and 71,696 were females).
Likewise, Technical and Vocational Training centers increased to 889 in 2010 from 819 in
2005. As a result, during the period under review, enrolment in Technical and Vocational



                                                36
institutions increased to 129,031 (of which 52,684 were females and 76,347 males) from
89,031 students in 2005 (comprising 31,625 females and 57,406 males).
                               Demographic Pressures
      Enrolment rates have increased at all levels of education, except at the
      primary level where Net Enrolment Ratio (NER) and Gross Enrolment
      Ratio (GRE) have decreased in 2010. While the primary education sub-
      sector has the capacity to absorb the emerging school age population,
      there is demographic pressure on other levels of education, which are
      unable to absorb increasing number of students. For example, the
      population of primary school age population (7-13 years old) in 2010 is
      7,911,584, while the actual enrolment of 7-13 year olds is 7,547,806 and
      the total enrolment is 8,419,305 pupils (all ages). That is NER of 95.4
      percent and GER of 106.4 percent. This implies that the primary sub-
      sector has enough places to enroll 6.4 percent more pupils than the actual
      primary school age population in 2010.

      Source: Education Sector Performance Report (2009/2010).



Goal 2: Improved survival, health and well -being of all children and women
and especially of vulnerable groups

Human development, broadly defined, is the overarching objective of governments world-
wide. Globally, the concept of population health is the bedrock of public health. The state of
population’s level of health is, in itself, a robust indicator of human development. Over the
last couple of years, the Government has invested heavily in this area with the view to
creating a pool of healthier workforce. Progress under this goal is monitored through a
number of indicators as shown hereunder:
        i. Infant mortality rate
       ii. Under-five mortality rate
     iii. Diphtheria, Pertussis, Tetanus and Hepatitis B (DPTHb3) immunization coverage
      iv.  Proportion of under-fives moderately or severely stunted (height for age)
       v. Maternal mortality ratio
      vi.  Proportion of births attended by a skilled health worker
     vii.  HIV prevalence among 15-24 year olds
    viii. Percentage of persons with advanced HIV infection receiving anti-retroviral
           (ARV) combination therapy
      ix. Tuberculosis (TB) treatment completion rate

Child and Maternal Health: The operational target was to achieve reduced child (under
five) mortality from 154 to 79 in 2010 per 1000 live births as well as reduced infant mortality
from 95 in 2002 to 50 in 2010 per 1,000 live births. Reduced maternal mortality from 529 to
265 in 2010 per 100,000 Thus in order to achieve the MKUKUTA targets under this goal,
including Millennium Development Goals on child mortality, maternal health and HIV /AIDS
and malaria (goal 4, 5 and 6), the government has put in place a programme that focuses on
expanding health facilities in villages, wards and districts in line with the Primary Health
Services Development Programme (PHSDP). The ten year program is in response to long


                                              37
term government commitment to improve social and economic well being of the people
through provision of quality social services, health being one of them. The overall project
objective is to accelerate the provision of quality primary health care services to all by 2017.

Furthermore, the government, in collaboration with other stakeholders, has continued with the
implementation of Reproductive and Child health Strategic Plan (2005-2010) and the Road
Map Strategic Plan to Accelerate Reduction of Maternal, Newborn and Child Deaths (2008-
2015) with the objective of accelerating the attainment of the set goals and targets. Notable
achievements have been recorded. The deaths of children under-five (the probability of dying
between birth and the fifth birthday) years of age have continued to record significant
declines. The rate declined from 112 per 1000 live births in 2004/05 to 91 per 1000 live births
in 2007/08 and thereafter to 81 child deaths per 1000 live births in 2009/10. Thus, the target
was attained by 98 percent. Infant mortality rate (the probability of dying before age one) has
also declined from 68/1000 live births in 2004/05 to 58 per 1000 live births in 2007/08 and
then to 51 per 1000 live births in 2009/10. When compared with the target of 50/1000 deaths
of infants by 2010, this represents 98 percent attainment of the target. Suffice, to appreciate
the fact that achievement under these operational targets was also partly explained by
enhanced efforts such as increased immunization and malaria control services countrywide.
Figure 3.4 provides a trend analysis of child health as per the last five rounds of DHS.




Source: Demographic and Health Surveys (1996-2010)

Just like the child health, reporting on maternal health depends on data and information from
Demographic and Health Survey (DHS). Preliminary results from the 2009/10 DHS show
that maternal mortality recorded substantial progress compared to the previous survey. The
results show that the maternal mortality ratio during the ten-year period is 454 maternal
deaths per 100,000 live births compared to 529/100,000 (1996) and 578/100,000 (2004/05)
maternal death.

Immunization Services: Immunization and vaccination services have been scaled up
significantly with the increase in the number of health facilities providing vaccinations
services from 2,954 in 2005 to 4,535 in 2009. Vaccination has high impact on reduction of


                                              38
child mortality. The vaccines given protect children against tuberculosis, polio, diphtheria,
tetanus, whooping cough, hepatitis and measles. The number of vaccinated children
increased from 1,249,388 in 2005 to 1,356,421 in 2009, an increase of 8 percent.

The government also provided a new type of vaccine in year 2009/2010 known as
haemophillus influenza type B vaccine (Hib). The vaccine protects children under the age of
one year against pneumonia and meningitis. The Hib vaccine is combined with four other
vaccines previously delivered together to make a pentavalent vaccine consisting of five
vaccines; DPT-HB-Hib. The new combination of five vaccines protects children against six
different communicable diseases: diphtheria, tetanus, whooping cough, hepatitis, pneumonia
and meningitis. During the period under review, the percentage of number of children below
one year of age were vaccinated against measles increased from 88 percent in year 2008 to 91
percent in 2009. This performance is above HSPSIII target of 85 percent. Figure 3.5 provides
a trend overview of routine immunization coverage for the past seven years.


                           Figure 3.5: DPT-Heb/Hib3 Coverage




              Source: JAHSR 2010

Malnutrition and Wasting: Malnutrition contributes to more than half of all under-five
childhood deaths in most countries and Tanzania is not an exception. The associated effects of
poverty, inadequate household access to food, infectious disease, inadequate breastfeeding
and inadequate complementary feeding practices often lead to illness, growth faltering,
nutrient deficiencies, delayed development, and death, particularly during the first two years
of life. In recent years development agencies and governments have emphasized selective
interventions to improve health and nutritional status, such as immunizations, oral re-
hydration, antibiotics, and micronutrients, with child survival being a major motivation and
justification. During the past five years the government has been working closely with other
stakeholders to improve maternal and child health. For instance, under the Food and Nutrition
Technical Assistance (FANTA), the government has been working to improve infant and
child nutrition and health outcomes by strengthening food security and nutrition and by


                                             39
implementing policy, strategies, and programs, embedded in the President’s Emergency Plan
for AIDS Relief (PEPFAR). The integration of nutrition services into the national HIV
response and the designing of Food by Prescription (FBP) Program in Tanzania are other
initiatives which have been undertaken by the Government.

FANTA has also been working with the Tanzania Food and Nutrition Centre (TFNC), which
initiates and coordinates national nutrition activities, to develop an initial FBP program in
care and treatment centers (CTCs) in nine sites and train health care providers in other CTCs
in routine nutrition assessment counseling for people living with HIV (PLHIV). FANTA-2
also worked with the TFNC to develop FBP training manual and related job aids for
physicians, nurses, dietitians and counselors in CTCs. Likewise, several PEPFAR partners are
helping to implement the FBP activities. All these initiatives have contributed significantly to
reducing malnutrition and wasting in children under-five years of age. As indicated in Table
3.1, the percentage of children under-five who were stunted declined from 38 percent in 1999
to 16.5 percent in 2009. The proportion of children facing wasting, severe malnutrition was
3.7 percent in 2004/5 compared to 3.8 percent in 2009/10. It should be noted that this year the
results are a bit different because the analysis used new WHO growth standards thus making
the results less comparable to previous ones. Since data on malnutrition depend on surveys,
table 3.1 below provides a trend overview for the last three DHS surveys.

Table 3.1: Indicators of Child Malnutrition, 1999 and 2009
                      Stunting (height-for-Underweight (weight-Wasting (weight for
                      age below -2SD)      for-age below -2SD) height below -2SD)

1999                   44.0%                  29.5%                   5.3%
2004/5                 38.0%                  21.9%                   3.7%
2009                   42%                    16%                     3.8%

Source: TRCHS 1999, TDHS 2004/5 and 2009/10

Lastly, in 2009, malnutrition treatment guide for children under-five years was prepared. The
guidelines will be used by health service providers in various municipalities in the country.

Malaria Control: The objective under this target is to achieve reduced hospital –based
malaria-related mortality, amongst under-fives, from 12 percent in 2002 to 8 percent in 2010.
In the efforts to combat malaria disease, the government continued to implement the Malaria
Control Strategic Plan 2008-2013, by distributing long lasting insecticide treated nets, through
the voucher scheme and provision of intermittent presumptive treatment for malaria to
pregnant women in the country. Furthermore 9,000,000 nets were distributed to all children
under five years of age free of charge. Also, indoor residual spraying (IRS) has been
conducted in Kagera Region since 2007. This last mentioned intervention is targeted to cover
the highly endemic regions in the country in order to reduce the magnitude of the disease
burden. The high burden malaria regions in Tanzania are Kagera, Mwanza, Mara, Lindi,
Mtwara and Ruvuma. The IRS will be rolled out to two other lake regions of Mwanza and
Mara.

During the same period the government distributed 4,200,000 long lasting insecticide treated
nets to pregnant women and 1,257,020 nets to children under one year through the voucher




                                              40
scheme. According to the preliminary DHS 2009/10 survey results, these efforts culminated
into increased ownership and use of mosquito nets. The survey results show that:
  i.     The percentage of households owning at least one bed net has continued to increased
         from 56.3 percent in 2007/08 to 74.7 percent in 2009/10. Likewise the percentage of
         households owning at least one Insecticide Treated Net (ITN) has increased from 39.2
         percent in 2007/08 to 63.4 percent in 2009/10.
  ii. The percentage of children under five years who slept under a bed net (treated or
         untreated) the night before the survey increased from 36.3 percent in 2007/08 to 72.6
         percent in 2009/10. Likewise, the percentage of children under five years who slept
         under an ITN the night before the survey increased from 25.7 percent in 2007/08 to
         64.1 percent in 2009/10.
  iii. The percentage of pregnant women who slept under a bed net (treated or untreated)
         the night before the survey increased from 36.0 percent in 2007/08 to 67.6 percent in
         2009/10. Likewise, the percentage of pregnant women who slept under an ITN the
         night before the survey increased from 26.7 percent in 2007/08 to 57.1 percent in
         2009/10.

HIV and AIDS: Although currently there is no new survey data on the prevalence of HIV
and AIDS apart from the Tanzania HIV AIDS and Malaria Survey 2007/08 data, a number of
activities were carried out during the past five years with the objective of fighting the vice.
The national HIV and AIDS prevention and control act was passed by Parliament in 2008.
The government also prepared the second Health Sector Strategic Plan for HIV/AIDS 2008-
2012 and the National Essential Health Sector Strategic Interventions packages for HIV and
AIDS to guide implementation.

The government continues to mobilize the general public to go for voluntary HIV testing. By
March 2010 a total of 11.7 million people had tested for HIV voluntarily. Out of these
654,982 are on care and treatment for HIV/AIDS and 337,854 are on Anti-retroviral
treatment. During the review period substantial progress was achieved especially with respect
to the percentage of HIV positive women receiving ARVs to prevent MTCT and percentage
of persons with advanced HIV infection receiving ARV combination. Specifically, some of
the achievements include the following:
     Significant increase in the number of HIV positive women receiving ARV for PMCT;
        from 34 percent in 2007 to 55 percent in 2008. However, in 2009 a decline to 43
        percent was observed. This signifies that more efforts are required to meet the 2015
        target of 80 percent.
     A total of 80,628 persons were receiving ARVs by the end of 2007 and thereafter the
        number increased to 248,280 by May 2009 and then to 342,981 by May 2010. This is
        a significant increase but the number is far below the target of 440,000 by 2010.
     The number of health facilities offering PMTCT services increased from 5 in 2004 to
        3,626 by December 2009, equivalent to 78.6 percent of all ANC facilities in the
        country
     68 percent of all HIV pregnant women received prophylaxis for PMTCT
        (58,833/86,000)
     The access to counselling and testing in PMTCT sites is 98 percent.
     The number of health facilities providing VCT increased from 520 in 2005 to 2,134 in
        May 2010
     The number of health facilities providing care and treatment has increased from 4 in
        2005 to 909 by May 2010.




                                              41
    The number of patients enrolled on care and treatment services has increased from
       zero in 2004 to 664,115 by May 2010.




                           Knowledge of HIV Prevention Methods
      Three in four women and men know that condoms can reduce the risk of
      contracting the HIV virus during sexual intercourse. Almost 90 percent of
      women and men indicate that the chances of getting the AIDS virus can be
      reduced by limiting sex to one uninfected partner who has no other partners.
      Generally, about seven in ten women and men know both means of reducing
      the risk of getting HIV.

      Differentials in levels of awareness of these prevention methods by age, marital
      status and urban-rural residence are not large. In general, women aged 30-39,
      and men aged 25-39, urban respondents and better educated respondents are
      more knowledgeable of HIV prevention methods than other respondents.
      Knowledge also tends to be higher among women and men in Dodoma region,
      as well as Dar es Salaam, Pwani, Mtwara, and Ruvuma regions.

      Source: TDHS, 2009/10.




Goal 3: Access to clean, affordable and safe water, sanitation, decent shelter
 and a safe and sustainable environment and thereby reduced vulnerability from
environmental risk

Literature on human development acknowledges that water is central to the realization of
human potential. It is a source of life for people and the planet. Clean water and sanitation
have profound bearing on health and human dignity as well as impacting on economic
growth. Inequalities in access to clean water for drinking and for other productive purposes
undermine the capacity to tap unfolding opportunities for growth and reduction of poverty.
Cognizant of the potential interdependencies between this goal and other goals and the role of
water in general, decent shelter and sustainable environment in spearheading human social
wellbeing, a number of initiatives and activities were taken during the MKUKUTA
implementation. Progress and performance of these various activities are measured by the
following indicators:
 i.     Proportion of population with access to piped or protected water as their main
        drinking water
 ii. Number of reported cholera cases
 iii. Percentage of households with basic sanitation facilities
 iv. Percentage of schools having adequate sanitation facilities
 v.     Total area under community-based natural resources management

Water supply services: In efforts to promote access to clean and safe water, during the
period under review, the parliament enacted the Water Resources Management Act No. 11 of



                                             42
2009 and Water Supply and Sanitation Act No. 12 of 2009. These two pieces of legislation
gives mandate to the Basin Water Offices and Local Government Authorities (LGAs) to
register Water User Associations (WUAs) and Community Owned Water Supply
Organizations (COWSOs) respectively. The laws have paved the way for easier registration
of the WUAs and COWSOs near their areas of operation. These measures have widened the
scope for sustainable management of water supply facilities, as well as water sources by the
beneficiaries themselves.

During the period under review, the Government constructed and rehabilitated several water
projects including building of new shallow wells/boreholes. This has consequently resulted in
increased use of improved sources of drinking-water in both rural and urban areas. This
notwithstanding, marked differences across geographic regions are observed. Other outcomes
of these initiatives include, increased proportion of the population with access to clean and
safe water in rural areas, from 53.1 percent in 2005 to 58.7 percent in 2009. Despite the
increase, the that the target was not met due to various reasons including, the delayed
commencement of the programme by one year; the pre-requisite nature of water projects that
require preparatory activities before actual implementation; inadequate absorptive capacity of
the implementing agencies (LGAs); under estimation of the unit costs, procurement
bottlenecks, and delay in disbursement of funds to the districts. The objective was to construct
water points sufficient to provide services to an additional 8.0 million people in rural areas by
2010.

In the course of implementing water sector programme since 2007, there was a change in the
implementation modality, whereby quick win projects were implemented while procurement
of consultants was taking place. A two-year-work plan was developed which targeted to
construct 12,700 water points during the period. From July 2007 to June 2010 some 3,897
water sub-projects were constructed, resulting in 8,277 operational water points, serving an
additional population of 2,069,250 people.

During the same period, the proportion of people served by the 19 urban water authorities and
who use drinking water from improved sources increased from 74 percent in 2005 to 84
percent in December 2009. The average hours of supply for all utilities have remained at a
reasonably high level (17 hours per day). Likewise, the trend has been positive on the loss of
water, as unaccounted for water has decreased from 42 percent in 2006 to 35 percent in 2010.
In Dar es Salaam; DAWASA has made very good progress in improving its water bill
collection efficiency over the past year to over 90 percent, and has increased water supply
services from 50 percent in 2005 to 68 percent in 2009. Among outputs that accounted for
these outcomes include: construction of new intakes, treatment plants, laying new raising
mains and laying distribution pipelines for water supply. These measures have increased
water connections from 174,815 in 2005 to 251,610 in 2010. Likewise, the interventions in
rehabilitation and expansion of sewerage systems in urban areas accounted for the increase of
in sewer connections from 12,726 in 2005 to 17,843 in 2010.

Other achievements include: establishment of 9 basin water boards which became fully
operational in 2009; putting in place the new water sector institutional framework in
accordance with the National Water Policy of 2002. The framework covers basin water
boards, local government authorities and urban authorities; and the completion in early 2010
of the capacity development plans in all implementing agencies.




                                               43
Improved Sanitation: The goal in to integrate systematic monitoring and assessment of
water quality, sanitation, waste management and hygiene education as a way of improving
health and living conditions. The strategy to achieve this goal for the integration of sanitation
and hygiene is to:
 i.     Promote community behavior change and improved sanitation facilities by use of the
        Participatory Hygiene and Sanitation Transformation approach.
 ii. Develop effective sewage and sanitation management systems for rural and urban
        areas.
 iii. Introduce effective water quality and pollution control mechanisms.
 iv. Strengthen and enforce environmental and sanitation by-laws
 v.     Enhance the multi-sector initiatives to improve sanitation.

The resources being allocated to the area of sanitation and hygiene in Tanzania have been
limited than those devoted to boosting water supply. The focus on sanitation and hygiene has
been a challenge because of its cross-cutting nature. This phenomenon has made it not to get
priority it deserves in terms of allocation of resources. However, efforts have been
undertaken to raise the profile of the importance of sanitation and hygiene in relation to
reducing Under-5 child morbidity and mortality. Also there have been challenges in the
definitions for sanitation, leading to difficulty in interpreting national survey data for
monitoring progress. Strategically steps have been made to address the negative perceptions
and challenges. These include:
  i.    The signing of a Memorandum of Understanding between the four key Ministries
        working on sanitation and hygiene, MOHSW, MOWI, MOEVT, PMO-RALG.
  ii. The development of the zero Draft of a National Sanitation and Hygiene Policy. The
        draft is with stakeholder for consultations. Further, efforts to standardise definitions
        for use in monitoring of progress have been embarked upon.
  iii. The development of a Draft Strategic Plan for School Water, Sanitation and Hygiene.
  iv. Efforts to raise the profile of sanitation and hygiene sub-sector through collaborative
        advocacy have been undertaken.
  v. The development of harmonized national school water, sanitation and hygiene
        guidelines by the four key Ministries has been undertaken.
  vi. Initial discussions to work towards an improved monitoring and evaluation framework
        for sanitation and hygiene in Tanzania have been conducted.
  vii. Initial planning to scale up demand led promotion of sanitation and hygiene based on
        promising approaches is being implemented in selected districts

On the other hand, it is difficult to know exactly how many people have access to improved
sanitation due to the indicators used in the national surveys which focus on ‘traditional
latrines’, some of which may be improved and many may have not. The international Joint
Monitoring Programme of the World Health Organisation and UNICEF estimated that in
2008, 33 percent of households in Tanzania with access to improved latrines (31 percent
urban and 34 per cent rural). However, the estimates were scaled down to 27% urban and
23% rural in 2010 after changing the definitions of the two concepts. The estimated figures
are particularly low for Tanzania as the JMP considers that shared latrines are not improved
and country has a high proportion of shared latrines.

The MOEVT data in 2008 indicate approximately 61 pupils share one latrine drop hole.
Although there has been an increase in the number of latrines constructed over the last ten
years, the dramatic increase in school enrolment has led to a significant increase in demand



                                               44
for school WASH infrastructure. Indeed, the resources allocated for this expenditure item fall
short of the demand. A detailed study in 2009 of all schools in 16 districts in Tanzania
indicated that the school water, sanitation and hygiene situation varies dramatically across
schools with only 11 per cent of schools meeting the MOEVT minimum standard of 20 girls
and 25 boys per drop hole. The results show that 20 percent of schools having more than 100
pupils per drop hole and 6 percent with no latrines at all. Further, the results show 32 per cent
of schools do not have water on the school premises, 92 percent of schools having no
functioning hand-washing facilities and 52 percent of the schools had no doors on girls
latrines.

A further analysis of data for July 2009-March 2010 period shows that a number of effort has
been undertaken. They include:
 i.    The awareness of people on sanitation and hygiene education increased in which
       2,751,325 people were sensitized;
 ii. 1,397 demonstration latrines were constructed;
 iii. 3,863 artisans were trained on construction of sanplats and low cost sanitary toilets.
       To that effect, 5,779 sanplats were produced
 iv. 17,422 school sanitation clubs were formed;

Reduction of Pollution Levels in the Water Sources
In order to ensure that water supplied from various sources is clean and safe for consumption,
the Government planned to inspect 1750 water sources and collect 3,500 water samples to
analyze and test the water quality in various water laboratories countrywide. As of April,
2010 a total of 3,223 water samples from both urban and rural areas were collected and
analyzed. Out of the total collected samples collected 3,043 (equivalent to 94.4 percent) were
found to be of good quality or the required standards.

In attempt to reduce water pollution, during the period under review, the government targeted
to collect 300 waste water samples from various industries and sewerage treatment ponds.
This target was achieved by 81 percent as 243 waste water samples were collected and
analyzed. The analysis showed that 225 samples (92.6 percent) were found to be within the
required standard. This indicates that various stakeholders (municipalities, industries and
authorities) are becoming more aware of and are instituting measures to control pollution
through regular effluent monitoring.

Decent shelter and a safe and sustainable environment:
The government has been carrying out a number of initiatives geared towards ensuring that its
citizens enjoy improved quality of life, as well as access to decent living and neighborhoods.
It is for this reason that during the period under review, a number of initiatives and activities
were undertaken by the government. These include:
  i.     22,491 Certificates of Occupancy, out of the target of 20,000 were prepared and
         signed
  ii. Site inspections at Mbezi, Jangwani Beach, Tegeta, Ununio and Boko areas in Dar es
         Salaam were carried out and a total of new 4,098 Certificates of Title were re-issued
  iii. 15 district land registries and 61 village land registries were rehabilitated or
         constructed.
  iv. Preparation of 3,296 Certificates of Village Land was undertaken and 93,400
         Certificate of Customary Rights of Occupancy were issued
  v.     Guidelines for preparation of Village land use plans were prepared and 5,000 copies
         produced


                                               45
 vi.   Registration of 17,390 Certificates of Title and 28,169 other legal documents was
       effected
 vii. Preparation and approval of 7,386 property valuations reports were done
 viii. Determination of 7,756 lands and housing disputes was carried out;
 ix. Preparation of land used plan for 128 villages was carried out. The target was 100
       village land us plans.
 x.    Surveyed 1,604 Village boundaries in Kilimanjaro (93) Singida (316) Mara (351)
       Mwanza (33), Kagera (284), Kigoma (21), Tabora (127), Shinyanga (243), Dodoma
       (54), Manyara (5) and Morogoro (87);
 xi. Identification of 19,876 landed properties in Mwanza in the unplanned settlements and
       preparation of regularization scheme was done. Further, 7,000 plots were surveyed,
       518 certificates of occupancy prepared and 135 title deeds issued. Furthermore, 1057
       plots in unplanned settlements were surveyed in Dar es salaam.

Goal 4: Adequate social protection and rights of the vulnerable and needy groups with
basic needs and services

MKUKUTA underscores the importance of social protection interventions. Social protection
includes traditional family and community support structures, and interventions by state and
non-state actors that help manage and prevent the risks threatening the security and well-
being of the poor at the local level. Social protection also embraces opportunities for social
and economic progress. MKUKUTA identified four broad areas and nine operational targets
under this goal. These areas include: social protection, support to vulnerable groups, child
protection and rights and access of the rural population to modern energy services. Therefore,
performance assessment of this goal is based on these broad areas.

Social Protection
This goal has identified four operational targets namely (i) increase number of orphans and
most vulnerable children reached with effective social protection measures; (ii) percentage of
children and adults with disabilities reached with effective social protection measures; (iii)
percentage of older people reached with effective social protection measures; and (iv) reduce
violence against women. In this regard, MKUKUTA articulated the need to develop the
National Social Protection Framework. The Government, in collaboration with other
stakeholders, has developed the National Social Protection Framework which is now at
approval stage. The framework aimed at among other things harmonizing the implementation
of programmes, scaling-up of the most cost-effective programmes and improving joint
monitoring and evaluation of progress in the area of social protection. In order to enhance and
scale up social protection measures, through social security, two laws were enacted by the
Parliament. These laws are the Social Security Regulatory Authority Act 2008 and the
Workers Compensation Act 2008.

Various social protection interventions were also implemented by Tanzania Social Action
Fund (TASAF). During the period under review, TASAF did deliver critical infrastructure
services and social assistance to both urban and rural poor and vulnerable groups, while at the
same time addressing institutional organizational and capacity-building needs at village and
district levels. As a result, the communities have been able to improve accessed to basic
socio-economic services, increase access to income generating opportunities and improved
the quality of basic services, as well as enhancing livelihoods of beneficiaries, especially the
marginalized groups in the communities.



                                              46
Since 2005 to May 2010, a total of 9,012 TASAF projects were identified in all councils
including the Community Based Conditional Cash Transfer (CB-CCT) projects, which are
under pilot in Kibaha, Bagamoyo and Chamwino District Councils. Out of these projects,
7,546 received funds totaling TZS. 156 billion. The already completed projects which have
been handed over to the communities were 4,078. The targeted beneficiaries have started
enjoying the fruits of the projects. Furthermore, 1,720 beneficiaries’ sub-groups, with a total
of 21,712 members were created. 58 percent of the sub-groups were provided with training
on savings and credits, including the skills related to business operations.

Social protection measures for older people are mainly related to health, care and support. In
the financial year 2009/10, a total of 6,512, elderly people were cared for in 17 homes that are
run by the government and 23 homes run by faith based organizations. In 2008/09, a total of
2,000 people were served. Furthermore, the government has established, in each hospital and
heath centre, a special section to cater for elderly so that they can access health services free
of charge and more conveniently. Also, in supporting the elderly, the government transferred
53,600 public retired workers from the pension treasury register to the Public Pension Funds.
These public retired workers are getting their pensions since July 2008 through the new
system.

Support to Vulnerable Groups
During the year under review, the government, in collaborations with other stakeholders,
continued to facilitate councils to develop community based program of identifying the Most
Vulnerable Children (MVC). A total of 746,823 children were identified as MVC since the
beginning of the program in 2000. Among them 358,168 were girls and 388,015 boys.
Comparing to the previous year (2008/09), the total number of children who were identified
as MVC was 611,150. The children who have been identified as MVCs are provided with
health care, food, educational needs and psycho-social support. Available statistics shows that
for the period of 10 years of implementation of this program, only 373,412 children were
identified as MVC. The increase in the number of MVC is matter of policy concern and
hence the need to look into factors that contribute to the increase of vulnerable children. This
policy issue will continue to be addressed in government plans. For example, in the course of
addressing the vulnerability problem of children, the government, through the Ministry of
Community Development Gender and Children, has developed a draft community strategic
plan to control the increase of street children. Furthermore, in order to safeguard child rights,
child act was enacted in 2009. The aim of the act is to provide for reform and consolidation of
laws relating to children, to stipulate rights of the child and to promote, protect and maintain
the welfare of the child in line with international and regional conventions.

Violence Against Women
Efforts to reduce violence against women were also stepped up throughout MKUKUTA
implementation. During the period under review, the government prepared a film to create
awareness on violence against women, children and albinos. This film was shown in villages
of regions of the Lake Zone where the practice was rampant. The government also produced
copies of National Program on Controlling and Eliminating Violence Practices against
Women and Children. The aim of this program is to; (i) amend laws which are not in favor of
women and children, (ii) provide education, training and mobilizing communities to eliminate
all forms of discrimination against women, children and albinos, (iii) provide services to those
who have already been affected by the violence and (iv) to educate communities on effects of
cultural values that perpetuate discrimination.




                                               47
Effective Social Protection Measures
The percentage of children and adults with disabilities reached with effective social protection
measures is another area that MKUKUTA was focusing on. During the year under review, the
government provided assistive devices to 232 persons with disabilities while seed capital for
income generating activities was given to 173 vulnerable families. Vocational training was
also conducted for 2500 persons with disabilities, 980 were females and 1,520 were males. In
pre-primary education, total enrolment of children with disabilities in 2010 was 1,771 out of
these, 963 were boys and 808 were girls. The enrolment of children with disabilities in 2010
was less than the previous year which enrolled a total number of 2,208. Generally speaking,
the Tanzania Disability Survey 2008 Report showed that 38.4 percent of the school aged
children with disabilities were attending school. The provision of accessible facilities
including water and sanitation facilities are barriers for disabled children to be able to satisfy
school and attend to their water, hygiene and sanitation needs with dignity. The low
enrolment of children with disabilities in education implies also that their participation rate in
education is low. Appropriate measures are needed to identify them and ensure their
participation in education system is enhanced.

In the same vein, the government enacted the Persons with Disabilities Act in May 2010 with
the objective of providing health care, social support, accessibility, rehabilitation, education
and vocational training, communication, employment or work protection and promotion of
basic rights to the persons with disabilities.

Access of the rural population to modern energy services
Access of the rural population to modern energy services is another area that the government
has continued to invest its resources. The government maintains that rural Tanzania cannot be
transformed into a modern economy, and that rural livelihoods cannot be improved
significantly without a dramatic improvement in their access to modern energy services. In
recognition of this situation, the Parliament enacted the Rural Energy Act in 2005 for the
purpose of establishing the Rural Energy Board and the Fund and Agency to be responsible
for promotion of improved access to modern energy services in the rural areas. This is to be
achieved through a fund which is administered by the board to provide for grants and
subsidies to developers of rural energy projects.

Rural Energy Agency (REA) which was established under this act became operational in
2007. REA has increased the speed of rural electrification. In this regard, REA has given
subsidies with the aim of supplying electricity to head quarters of five districts of Kilolo,
Kilindi, Mkinga, Bahi and Uyui. Other areas where REA funded rural electrification are; Mto
wa Mbu, Matema Beach and Chief Oswald secondary school in Musoma. Additionally, REA
provided fund to compensate assets of people affected by Songo Songo gas project. In year
2008, the government enacted the Electricity Act whose objective was facilitation and
regulation of generation, transmission, transformation, distribution, supply and use of electric
energy. Further, is mandate to provide for cross-boarder trade in electricity and planning and
regulation of rural electrification. The act also allows Independent Power Producers (IPPs) to
transmit distribute and supply power to consumers, thereby ending the monopoly currently
enjoyed by TANESCO.

Goal 5: Effective systems to ensure universal access to quality and affordable public
services




                                               48
Setting and achieving goals can be very overwhelming if requisite systems are not in place. In
this regard, the government continued to review policies, laws and institutional framework in
terms of their working and implementation modalities with the view to ensuring universal
accessibility to quality and affordable public services. Thus, MKUKUTA envisioned
increased provision of essential infrastructure, planned and serviced human settlements and
skilled personnel. Effective advocacy was also needed to forge effective partnerships
between the government, LGAs, CSOs and the private sector. Therefore, this goal, as
stipulated in MKUKUTA, identified the following areas to be the subjects of assessment.
These areas include; roads, schools and health facilities, water and other services.

During the year under review, the Government continued to construct road networks with a
view of increasing accessibility to various areas such as cities, regions, districts, wards,
hamlets and villages. The type of construction ranged from tarmac, gravel to rehabilitation of
networks. In the financial year 2009/10, the Government constructed road networks of total
length of 2,237 KM. However, for the period of MKUKUTA implementation construction of
tarmac roads increased from 4,670kms in 2005 up to 5,637kms in 2010 an increase of 967
kms of tarmac road. The increase in construction of road networks was also alluded to in the
recent Household Budget Survey 2007 that showed 86 per cent of the communities in rural
areas spent 30 or fewer minutes to reach the nearest road, passable throughout the year.
Therefore, improvement in the road networks usually eases public access to other services.

Under the education sector, the Government, through the Education Sector Development
Programme, implemented various initiatives that resulted in an increase of accessibility of
pupils and students to different levels of educational training opportunities. In the health
sector, accessibility to health services has been widening as a result of the implementation of
the Health Policy 2007, Health Sector Strategic Plan III and Primary Health Services
Development Program (PHSDP). The overall objective of PHSDP is to provide accessible
and quality health services to all Tanzanians by 2017 through (i) ensuring fair, equitable and
quality services to communities, (ii) empowering communities and involving them in health
services provision and (iii) ensuring that health services reach all Tanzanians, especially those
living in rural areas. For example, immunization services expanded from 2,954 centres in
2005 to 4,535 centres in 2009. In bridging the gap of the required critical mass of health
professionals, the Government recruited 472 staff and deployed 4,020 staff to councils,
regional secretariat and other ministries, during the period under review.

Currently, the general public has the opportunity to complain, comment and suggest on the
environment for effective service delivery through the Wananchi website. As of May 2010, a
total of 68,061 opinions were received and 46,383 were sent to the respective institutions for
the requisite actions. The remaining opinions (21,678) were not directly related to government
service provision. During the year under review, 105 communication officers, from various
government institutions, were trained in using the Wananchi website for the purpose of timely
response to the public opinions received through this website. Furthermore, establishment of
Client Service Charter, in various public institutions, is a valuable system which gives
information to the clients on accessibility and the kind of the services they are entitled to
receive from a particular public institution and the timeframe for receiving such services.

Public Private Partnerships (PPP) have been effectively addressed through the Public Private
Partnership Policy 2009 and the requisite Act of 2010. The main objective of the policy is to
promote private sector participation in the provision of resources tor PPP projects in terms of
investment capital, managerial skills and technology. The PPP Act, 2010 aims at enabling and



                                               49
promoting private investment in the construction, maintenance and/or operation of
infrastructural and other projects that are of public interest.

3.3. Status and Progress in Sector Review
3.3.1. Education Sector Review
The Joint Education Sector Review took place from 5-7 October, 2009. During the review it
was noted that interventions in the education sector were guided by Primary Education
Development Programme (PEDP), Secondary Education Development Programme (SEDP),
vocational education and higher education policies. The main result has been increase in
enrolment, which has also thrown challenges with regard to quality because of overstretched
educational infrastructure as well as human resource capacity.

During the review it was noted that inequity in resource allocation was one of the challenges
that faced the primary education sub-sector. For instance, teachers were unequally distributed
both between and within regions, and between and within councils. Poorer regions had fewer
teachers than wealthier regions and schools in remote areas had fewer teachers than schools in
urban centres. Other challenges include low, though improving, transition rates to secondary
education and high drop out rate which stands at around 33 percent. Although enrolment rate
of girls in secondary schools is similar to that of boys (gender parity), the drop outs are
significant for girls. As a result, a clear gender gap in enrolment emerges during the last years
of secondary education.

Quality of secondary education was another issues raised during the review. It was noted that
the challenges of quality at secondary education are reflected in declining pass rates at both
ordinary and advanced levels, dropping from 89.1 percent in 2006 to 83.7 percent in 2008 and
96.3 percent in 2006 to 89.6 percent in 2009, respectively. Variations across subjects were
also high; only a quarter of candidates passed basic mathematics. The pass rate for science
subjects was also low. Gender imbalance at post secondary school level remains a challenge.
During 2008/09, for example, females made up only 32.1 percent of total enrolment in public
universities and university colleges compared to 32.2% in 2006. Low participation rate of
women in tertiary education does deprive women in terms of level and nature of their
participation in decision making processes. It was also observed that in general, there has
been substantial increase in education funding during MKUKUTA implementation1,

3.3.2. Health Sector Review.
The 10th Joint Annual Health Sector Review was carried out from 7th to 9th October, 2009 The
review marked 10 years of implementing reform agenda in health sector under SWAp
modality with dramatic and progressive changes in the way health services are being offered
in the country. During the review process several resource documents were used as an input,
including the Technical Review Meeting Report, the Milestones Report, the Draft Public
Expenditure Review, MTEF and the desk study “Translating Health Strategic Plan III (2009-
2015) to District Level and Beyond” Essentially the review had five man objectives namely:
     Review progress in implementation of the last year of the extended HSSP II with
        focus on assessing progress against 2008/09 milestones, report upon service delivery
        performance since 2008 JAHSR, budget execution (PER update 2007/08) and status of
        the health facilities rehabilitated and constructed under the MMAM and health
        window.


1
    For further details on financing see chapter five on MKUKUTA Financing.


                                                      50
        Share important policy developments (the 2009/2010 budget of the MOHSW and
       PMO-RALG, Public Health Act and any other relevant information as need may be.
     Develop and agree on concrete steps to ensure that the implementation of the Health
       Sector Strategic Plan III (2009-2015) can deliver the expected results.
     Agree upon specific budget priorities for the fiscal year 2010/2011
     Agree upon the milestones for 2009/2010
The review process found out that there was a general improvement in health service delivery
and health plans but attention was drawn to specific areas where increased capacity is
required. With respect to the agreed milestones, the review showed a mixed picture of
improvements and that ten out of fourteen 2008/09 milestones were partly fully achieved. On
the other hand, the 2008/09 Public Expenditure Review and Income and Expenditure
Statement it was found that in spite of the increased per capita expenditure and total
expenditure to the sector, the health budget as a percentage of government budget has
declined while the actual per capita financing of LGAs has stabilized. It also shows that while
budget execution has decreased, the share of foreign funds to finance the health sector has
increased. The desk study on translating the Health Sector Strategic Plan III into District
planning contained a large number of recommendations that were well received by members.
The recommendations to focus on maternal and neonatal health, human resources for health
and planning processes were considered positively.

3.3.3 Water Sector Review
The fourth Joint Water Sector Review meeting for water sector was held from 1st to 2nd
October 2009. The review attracted attendance of 285 participants representing key water
sector stakeholders including the Ministry of Water and Irrigation, other key stakeholder
ministries; Regional Secretariats; Water User Associations; Higher Learning Institutions;
Religious Institutions; Development Partners; urban sub-sector implementing agencies; Local
Government Authorities; Water Basins Authorities; CSOs, NGOs; media; and the
Parliamentary Committee on Social Services.

The overall objective of the two days meeting was to review progress made during 2008/2009
financial year and come up with agreed milestones and undertakings for the next year of
implementation. In the course of discussions, especially during group interactions; key issues
that worth remedial actions were agreed. These include:

i)          Establishment of the Programme Management Information System;
ii)         Ensuring the work plan for 2010/2011 is objective based, and that it should result
            from strategic planning meetings with implementing agencies;
iii)       Strengthening compliance with the WSDP MoU with development partners in terms
           of timely preparation and submission of quarterly progress reports including the IFRs
           and audit reports;
iv)        Intensifying the joint sector dialogue processes including holding of bi-monthly
           TWG meetings and quarterly WSWG meetings;
v)         Strengthening the monitoring framework for accuracy of data and information in
           collaboration with stakeholders including the NBS;
vi)        Affirming on broadening the steering and budgetary allocations for sanitation and
           hygiene to all implementing agencies, including finalizing the sanitation policy and
           its implementation strategies; and




                                               51
vii)    Speeding up the process for each implementing agency to prepare the institutional
        capacity development action plan basing on the water sector capacity development
        framework.
These recommended actions were key result areas with regard to WSDP undertakings for
implementation during the period of 2009/2010. They also formed the basis for the
programme’s mid term review that was agreed to be done by March 2010.

3.4. Challenges and Lessons Learned
In spite of the enormous achievements and progress attained in the past five years in the
course of MKUKUTA implementation, there are a number of challenges that triggered
shortfalls in some areas of implementation. Most of the challenges have been picked in the
MKUKUTA II including addressing implementation effectiveness These include among
others:
     Climate change effects: over the last couple of years climate change has affected
        government initiatives in service sectors, such as supplying waters services, frequent
        droughts, floods, and breakout of diseases.
     Human resources: Delivery of services at local councils has also been hindered by
        lack of adequate qualified staff such as health personnel, teachers and technicians.
     PPP: There has been inadequate participation of the private sector both in terms of
        development, investment, management and operation of social service sectors,
        especially in water projects.
     Financing: inadequate budgets allocations towards investment and development of
        service infrastructure projects.

3.5. Key issues, priorities and the next steps.
Ensuring equitable and inclusive access to quality education at all levels for boys and
girls: Addressing issues of quality of education in pre primary, primary and secondary levels
is a priority in MKUKUTA II. Efforts will be made to improve the quality of pre-primary,
primary and secondary education while sustaining gains achieved in expanding access to
education in order to produce the requisite human capacities necessary for the growth and
development agenda. Furthermore, increased access to secondary education, especially for
girls is expected to be one of the most effective measures to address issues of population
dynamics, including reduction in fertility rate. Quality education encompasses issues related
to improved physical infrastructure, teaching and learning materials, human resources and
school governance; quality teaching and a friendly learning environment that motivates
learning, and development of reading, strategic thinking, effective communication and
promotion of positive cultural ethic and behavior.

The interventions to ensure universal access to quality pre-primary, primary, and to lower
secondary education, include:
       (i)    Rehabilitating and expanding school infrastructure, especially the construction
              of laboratories and dormitories for secondary school.
       (ii)   Providing school materials in the required ratios and mix;
       (iii) Ensuring achievement of the recommended subject specific textbook-student
              ratios;
       (iv) Provision of school feeding programs;

During the implementation of MKUKUTA II the issue of quality of teachers will be
addressed through training, deploying and retention of teachers in order to achieve



                                             52
recommended students-qualified teacher ratios at pre-primary, primary and lower secondary
education levels. Furthermore, in order to improve the quality of education the use of ICT in
teaching and learning will be promoted.
                                        CHAPTER FOUR:
                           GOVERNANCE AND ACCOUNTABILITY

4.1. Overview
Good governance and accountability of resources are essential preconditions for sustainable
development. The governance and accountability focus on the rule of law, accountable leaders
and public servants, deepened democracy, political and social tolerance and sustainable peace,
political stability, national unity and social cohesion. These aspects are critical in ensuring
that growth is broad-based and that there is improvement in quality of life and social well
being. This chapter therefore presents the implementation progress on governance and
accountability. Like in the previous two chapters, it highlights overall performance of each
goal, based on a set of outcomes and indicators. It then reflects on challenges, lessons learned
and the next steps in addressing the challenges.

The interventions for governance and accountability are aimed at achieving the following
broad outcomes.
   i. Good governance and the rule of law
  ii. Accountability of leaders and public servants
 iii. Democracy, and political and social tolerance
 iv.   Peace, political stability, national unity and social cohesion.

These outcomes are assessed under seven goals, namely:
   i. Structures and systems of governance as well as the rule of law to be democratic,
       participatory, representative, accountable and inclusive
  ii. Equitable allocation of public resources with corruption effectively addressed
 iii. Effective public service framework in place to provide foundation for service delivery
       improvements and poverty reduction
 iv.   Rights of the poor and vulnerable groups are protected and promoted in the justice
       system
  v. Reduction of political and social exclusion and intolerance
 vi.   Improve personal and material security, reduce crime, and eliminate sexual abuse and
       domestic violence
vii.   National cultural identities to be enhanced and promoted

The progress for the year FY 2009/10 and the analysis of the trends since implementation of
MKUKUTA (2005/06) are presented at goals level.

4.2 Performance
This section presents progress made in the year under review – FY 2009/10 and, where data
allows (both qualitative and quantitative), the trend analysis of the progress since FY 2005/06
will be presented. This report has also used findings of studies conducted during the
MKUKUTA review in 2009 and 2010.

Goal 1: Structures and systems of governance as well as the rule of law
are democratic, participatory, representative, accountable and inclusive

Progress under this goal is monitored using the following indicators:



                                              53
   i.   Percentage of population with birth certificates (urban, rural, Dar es Salaam)
  ii.   Percentage of women among senior civil servants
 iii.   Percentage of women representatives elected to district council
 iv.    Proportion of women among Members of Parliament
  v.    Percentage of females from smallholder households with land ownership or customary
        land rights
 vi.    Proportion of villages assemblies holding quarterly meeting with public minutes
vii.    Proportion of LGAs posting public budgets, revenue and actual expenditures on easily
        accessible public notice boards

The interventions under this goal aimed at ensuring a wide representation at all levels of
government structures with the focus on the poor and vulnerable groups. They also aimed at
ensuring accountability and good governance in all MDAs and LGAs. There has been
significant progress in many areas – many of which could not be reflected in MKUKUTA
indicator framework. Nevertheless, they are also included in this presentation.

Citizen registration
MKUKUTA recognizes that citizen registration is vital for effective governance and
accountability. Thus, in 2009/10 the Government did set up the National Identity System.
The Government has established National Identity Authority vested with the task of
coordinating the system that will eventually issue national ID to all residents. So far,
education campaigns have been conducted to prepare the general public for national ID. The
ID will be a powerful tool of governance and for efficient service delivery since it will
identify each resident in Tanzania.

In the meantime, the Government continues to implement the Vital Registration Programme
(VRP) through the Registration, Insolvency and Trustee Agency (RITA). Institutionally, the
VRP has spearheaded the transformation of the birth registration system in Tanzania, by
ensuring that it becomes a one-stop process. As a result, there has been progress in issuance
of birth certificates. However, this process is challenged by the substantial variations in
across geographic and social groups. By 2007/08 the proportion of Tanzanians with birth
certificates reached 20.1 percent compared to 17.6 percent in 2004/05. However, it is noted
that only 6.3% of children under-5 years of age in Mainland Tanzania had a birth certificate –
with an apparent rural/urban divide of 3.3 percent and 20.9 percent, respectively. The overall,
registration in urban area was 46 percent against 15 percent in rural areas. The geographical
variations reflect disparities in supply of such service. The registration also varied by
household's socio-economic status, whereby 60 percent of the children in the highest wealth
quintile get registered compared to only 10 percent in the lowest quintile.

Gender balance in leadership posts
Some of the indicators toward the achievement of this goal are the gender gap in political and
government decision making bodies. The agenda of narrowing the gender gaps has been
mainstreamed in government policies. As per MKUKUTA objective, the target was to
increase the proportion of women in strategic posts to 30 percent.

The result is generally impressive. Women holding decision making positions increased from
26 percent in 2005 to 31 percent in 2010. Specifically, the trend shows that in the past five
years, the number of women in strategic posts increased as follows: Judges - 13 to 34;
ministers – 4 to 7; permanent secretaries – 7 to 9; regional administrative secretaries – 4 to 10;




                                               54
district commissioners – 20 to 25; council directors – 14 to 35; and directors in ministries and
agencies – 19 to 133. Table 4.1 gives more details of the progress.

  Table 4.1. Number of Leadership Posts and Proportion of Filled by Women
  (Selected Years)
                                        Year 2004/05               Year 2009/10
                                        Total % women              Total % women
  Ministers                                 27            15           27        26
  Deputy ministers                           17          30            21        24
  MPs (elected)                           230              6         233           8
  MPs (nominated)                            10          20            10        50
  MPs (special seats)                       48          100            75       100
  PS                                        25           28            26        27
  Deputy PS                                   8           13           14         21
  Directors -ministerial level              112          26          286         46
  Asist. Directors -ministerial level     194            25           155        24
  Regional commissioners                     21          10            21        14
  RAS                                        21          19            21        47
  District Commissioners                   107           19           114        27
  Council Directors                       100            14           132        26
  DAS                                     109             21           88         12
  Ambassadors                               36             6           32          9
  Judges                                    38           34            81        58
  Source: Speech of the Minister – PO-CSM, July 2010, Table 3 of page 103

The Government recognizes that for post holders to be effective, they need capacity in terms
of studies and training. To this end, the Government in the past five years sponsored 315
women government officials to undergo masters study programs in order to enhance their
capacity so that they can take more challenging posts. It has also established gender desks in
most MDAs in order to further sensitize and educate their respective staff on matters related
to gender equity.

Land tenure as an issue of good governance
There is no new statistics on the percentage of females from smallholder households with land
ownership or customary land rights since 2003. However, the on-going data analysis of the
Agricultural Sample Census 2009 will provide this indicator. Nevertheless, the Government,
in collaboration with various land stakeholders, continues to implement the National Land
Policy (1995) and its twin Acts - the Land Act and Village Land Act, No. 4 and 5 of 1999.
One of key emphases of the policy is the issue of land tenure especially to rural household. In
2009/10 the Government continued to improve land use management in many aspects. For
example, through MKURABITA, 21,160 farms were surveyed country-wide. Out of which
17,526, were registered in computerized systems in order to prepare land titles. During the
period, 8,109 titles were prepared. Land titling is critical for dispute resolution, access to
other resources such as credit, and for enhanced government revenue collection.

In 2009, the government started to implement the Land Use Master Plan (2009-2029). The
plan aims at maximizing the contribution of land resources to national development. It
emphasizes land use planning at national, district and village levels, while recognizing various
demands and their dynamics. The government also passed the Unit Titles Act 2008 which
allows multiple ownerships of landed units. It also passed the Mortgage Financing Act 2008
to enhance access to housing finance and reduce expansion of squatters in urban areas.


                                              55
Furthermore, in order to speed up land title processing, the Government has also established
zonal offices of the Commissioner of Land. In this regard, the issuance of land titles has now
been decentralized to the zonal offices.

Participation and representation at local level:
Democratic governance relies on a broad-based citizen participation in public affairs and
elections. The local government election in 2009/10 was conducted successfully and costed
TZS. 13 billion. Among the achievements recorded were as following:-

  i.   Several meeting of various stakeholders, to collect comments on election process were
       held. On the basis of these comments, election regulations and guidelines for local
       government election were improved
 ii.   Free, fair and democratic local government election was conducted in 132 LGAs in
       October 2009.

 Table 4.2. Proportion of Women and Male Elected Leaders in Local Government
 (Villages, Mitaa and Hamlet (Vitongoji) in 2009
                Title              Male Female     Total     Male Female
  Village chairperson                  10,408       249       10,657      98%          2%
  Mitaa Chairperson                     2,150       299        2,449      88%         12%
  Vitongoji Chairperson                53,786      1,908      55,694      97%          3%
  Member of Village Council            115,901     10,054    125,955      92%          8%
  Member of Mtaa Council        7,138    1,802     8,940                  80%        20%
  Grand Total                  189,383 14,312    203,695                  93%         7%
 Source: PMO-RALG -Local Government Election Report (2009)

Since 2005, the Government has place emphasis on the need for growth and regulation of
democratic institutions at all level. At the local level, the government did support the holding
of regular, well-conducted and transparent meetings of assemblies in villages and urban
wards. It also supported efforts for citizens’ access to information on the conduct of local
authorities. These interventions were in terms of community governance initiatives and
community meetings. Although there is no new dataset, by 2007, over 50 percent of the
communities indicated to have had governance initiatives, and out of these, 95 percent
conducted annual community meetings. The reported increase between 2003 and 2007 (as
indicated in PHDR 2009) underscores Government efforts in enhancing community
participation in development planning and budgeting through the Opportunities and Obstacles
for Development (O & OD) planning process. This process has been facilitated by the Prime
Minister’s Office – Regional Administration and Local Government (PMO-RALG),
complemented by the supports from sectors' initiatives and TASAF projects. All these efforts
have been scaled up and have definitely enhanced people participation in the development
process.

Furthermore, the Government recognizes that strong cooperative societies are an essential
element of democratic governance. Therefore, since 2005 the Government has been
implementing the Cooperative Modernization Program and as a result the number of
cooperative societies increased from 5,739 in 2005/06 to 9,510 in 2009. Likewise,
membership increased from 291,368 to 795,482 during this period. Accordingly, savings
increased from TZS 65.7 billion to TZS 385.5 billion over the period. Through these


                                              56
cooperatives, members have realized enhanced access to credit for conducting various
economic and social projects. The increased economic participation in economic activities is
complemented by enhanced participation in political affairs.


Goal 2: Equitable allocation of public resources with corruption effectively addressed

There are two operational targets addressed under this goal. These are (i) allocation,
accessibility and use of public resources in an equitable, accountable and transparent manner;
and (ii) instituting effective regulations and mechanisms regarding petty and grand corruption.
In setting this goal, MKUKUTA asserts that effective delivery of essential social services to
all Tanzanians is contingent upon a system which is transparent, fair and equitable collection
and allocation of public funds. It was proposed that progress in achieving this goal could be
gauged using the following indicators:
   i. Total revenue collected as percentage of revenue due at the national level.
  ii. Percentage of procuring entities complying with the Public Procurement Act and
        Procedures
 iii. Percentage of government entities awarded clean audit certificate by the National
        Audit Office (NAO)
 iv.    Percentage of local government authorities that receive the full calculated amount of
        their annual formula-based budget allocation
  v. Number of convictions in corruption cases, as percentage of the number of
        investigated cases, sanctioned for prosecution by the Director of Public Prosecutions
        (DPP)
 vi.    Total value of revenue received from concessions and licenses for mining, forestry,
        fishing and wildlife, as a percentage of their estimated economic value.

Progress in revenue collection
Tanzania has recorded significant increase in government revenue collection. From
governance and accountability viewpoint, efforts to enhance collection include broadening of
the tax base through registration of new tax payers and restructuring of the tax system. Other
measures include: training and awareness-raising among government staff on corruption and
strengthening of complaints mechanism in the public services delivery. The discussion of this
trend was covered in the presentation of Cluster I under macroeconomic stability. Thus, this
sub-section is devoted to presenting progress in areas where governance issues has been
raised in recent past, especially on the area of collection from natural resources.

Recent policies on natural resources emphasize, among other things, the contribution of the
sector to government revenues, and ultimately better public service delivery. Among these
policies is the Mineral Policy (2009) which was revised in 2010, as well as the Forestry
Policy (1999), and those related to wildlife and fishery. In implementing these policies, the
Government aims at enhancing benefits to the local communities. For instance, all LGAs
with wildlife hunting areas are now allowed to retain 25 percent of the proceedings from
hunting of wildlife. The funds are then used to provide social services in those LGAs.
Furthermore, the mineral policy and the Act have, as revised, aim at ensuring effective
participation and sharing of benefits from mineral resources at both the individual level
(artisan miners) and the national level. To the effect that Tanzania has joined the Extractive
Industries Transparency Initiative (EITI), a coalition of governments, companies and civil
society representatives to ensure that natural resources benefit all citizens, enhanced
governance of the mineral sector is expected to be realized. The EITI commits the



                                              57
Government to work with civil society and the private sector as a way of increasing
transparency in the extractive sector.

Planning and Budgeting in LGAs
The Local Government Act No.9 of 1982 requires each district and urban council to prepare
annual estimates of income and expenditure. Further, councils are required to prepare plans
and budgets and present their plans and budget, in line with the MKUKUTA, using the
Planning and Reporting (Plan-Rep) System. In 2009/10, most LGAs had their plans and
budgets prepared and approved as per section 54(1) of the Act, which directs councils in a
period of not less than two months before beginning of the financial year, to have their plans
and budgets approved by the full councils meeting. The performance indicators show the
following:-
 i.    Minutes of the Council Management Team (CMT) meetings reviewed showed that
       development plans from Lower Local Governments were discussed and integrated in
       the councils MTEF development plans. Only three councils (2.5%) did not integrate
       fully the plans of the Lower Level Government (LLGs). All MTEF plans were
       prepared in a participatory manner and included the proposals of LLGs
 ii. More than 87 percent of councils had allocated their development budget to
       MKUKUTA priority areas as stipulated in the guidelines.
 iii. Most MTEF development plans and budgets were more clearly linked, operational
       costs of investments were captured and there was evidence on the involvement of
       LLGs in discussing the plans, and strategies for facilitating lower level planning and
       budgeting. It was also noted that O & OD was widely applied by the Councils, while
       others did use Participatory Rural Appraisal (PRA) framework.

Procurement in LGAs:
The Public Procurement Act (2005) and its guidelines issued in August 2007, set out the
procurement guidelines for LGAs. The results of the assessment conducted indicate that, with
exception of six new councils, the rest had legally constituted tender boards with the required
memberships. In most of the councils, the Tender Boards met as required and discussed the
relevant issues. Furthermore, officials interviewed (suppliers, public and council staff)
confirmed the legality of the tender boards. Indeed, most of the procurement management
units have the relevant guidelines and manuals in place.

The trend of procurement entities complying with the Public Procurement Act 2004 has been
mixed. After the establishment of the Public Procurement Regulatory Authority (PPRA), the
proportion of procurement entities in compliance with the Act increased from 10 percent in
2005 to nearly 60 percent in 2006. But this assessment was based on a limited number of
entities which were used in the pilot. After going full-scale, the overall percentage of
procuring entities complying with the Act declined to 39 percent in 2006/07. But since then,
the number has improved to 43 percent in 2007/08. However, the implementation of the Act
has come at a cost of delays in timely procurement. To rectify this, the Government presented
a bill to the parliament in June 2010. The purpose is to put in place improved provisions for
the 'regulation of public procurement by repealing the Public Procurement Act, 2004 and by
re-enacting a new Public Procurement Act.

Issues of Corruption
During the implementation of MKUKUTA, issues of corruption have been addressed by
PPRA, NAO, and PCCP, among others. Thus, in order to strengthen war against corruption,
the government has facilitated the improvement of the collaboration and coordination of the


                                              58
operations of PPRA, NAO/CAG, and PCCB. These efforts have been coordinated under the
NACSAP II, which started to be implemented in 2006, with a view to scale up the war against
poverty and ensure efficient service delivery. To that end, the Government enacted the Anti-
Corruption Act 2007, which identifies/defines 24 corruption acts, unlike its predecessor,
which identified only four. The revision gives the new Act a sharper age and a broader
mandate to fighting corruption. To benchmark and gauge trends on this issue, the
Government in collaboration with other stakeholders carried out the National Governance and
Corruption Survey in 2008. The survey found that most people understand corruption as
demand for unofficial payment (92.5%); as compared to demand for sex (29.4%) or abuse of
power (25.9%). As with regard to the causes of corruption, most people feel that the main
causes of corruption are greed/selfishness, (96%), moral indecency (92%) and lack of control
and accountability of public officials (88%). Also, it was found that most people feel the
service providers solicit or initiate corruption (76.3%) while 15.6% feel that individuals
decides to offer a payment on their own accord.

     Box 4.1. How Tanzania has Addressed the Issue of Corruption

     The Second Phase of the National Anti-Corruption Strategy and Action Plan (NACSAP
     II for 2008-2011) was officially launched by the Government of the United Republic of
     Tanzania on December 10, 2006. NACSAP II aims to build on the achievements
     NACSAP I and addresses challenges encountered by becoming more focused, robust,
     relevant and inclusive. It also aims at complementing and integrating anti corruption
     measures into the core public sector reforms, such as Public Sector Reform Programme
     (PSRP), Legal Sector Reform Programme (LSRP), Local Government Reform
     Programme (LGRP), Public Financial Management Reform Programme (PFMRP), in
     strengthening and instituting good governance, transparency, accountability, integrity,
     efficiency and improved public service delivery. NACSAP II encourages strategic
     partnership between the anti corruption bodies of the national government, the private
     sector, civil society, media and Development Partners (DP) in combating corruption and
     enhancing good governance in Tanzania.


Other interventions include seminars on ethical matters to law enforcers as well as increased
awareness through radio and TV programs. Likewise, 3,787 students' anti-corruption clubs in
secondary schools and six colleges were established. Between 2005 and 2010, 755 new
corruption cases were filed in the court of laws. Of all the filed case, the Government has
won 155 cases and recovered TZS 28,827,667,374. It is noted that during the implementation
of MKUKUTA, the government filed 19 cases of grand corruption.




                                               59
  Table 4.3. Trends in Anti-corruption Cases




                                                                                                                      into


                                                                                                                                     cases




                                                                                                                                                                                       Saved Money/ Asset
                                                                                               Files transferred to
  YEARS



            Allegations received


                                   Cases Investigated




                                                        Investigation files




                                                                                                                                                  Conviction cases




                                                                                                                                                                                       recovered (TZS)
                                                                                                                                                                     Acquittal cases
                                                                              Administrative




                                                                                               other agencies
                                                                              actions taken




                                                                                                                             cases




                                                                                                                                     Prosecuted
                                                        Completed




                                                                                                                      courts

                                                                                                                                     Total
                                                                                                                      New
  2005      3,121                  677                  540                   111              2                      50             218          6                  10                2,500,600,000
  2006      6,320                  1,528                1,688                 209              496                    71             251          18                 28                1,301,492,528
  2007      8,235                  1,266                2,015                 280              460                    196            352          35                 45                1,580,099,081
  2008      6,137                  928                  936                   74               184                    147            416          37                 71                13,203,459,357
  2009      4,936                  720                  1,003                 29               135                    169            437          40                 53                420,3444,540
  TOTAL     40,183                 14,990               9,656                 893              2,252                  1,017          -            184                309               86,951,894,206

  Source: PCCB Presentation to General Budget Support Review (2009)

To further mainstream anti-corruption measures, the Government has also established
Integrity Committee in all MDAs to coordinate issues related to corruption, and staff
complaints on inappropriate conducts in there respective departments. By June 2009 the
Government has trained 402 officials who are members of the Ethics Committee.

Audit Issues
The number of LGAs being awarded clean audit reports by the National Audit Office has
been on the rise. The trend since 2005/06 is presented in Table 4.3. Apparently, the number
of LGAs issued with clear reports increased from 53 in 2005/06 to 77 in 2008/09. The
number of LGAs with qualified and adverse opinion has continued to decline. The
improvement is partly explained by increased LGAs absorption capacity and improved human
resource allocation, particularly the cadre of accountants, as well as the use of IFIMS and
Plan-Rep tools.




                                                                                                60
  Table 4.4 Trend in Audit Certificate Issued to LGAs (2005/2006 to
  2009/2010)

      Audit
                    unqualified Opinion                                 Qualified Opinion                               Adverse Opinion
     Opinion




                                                  2008/09




                                                                                                    2008/09




                                                                                                                                                      2008/09
                              2006/07




                                                                                2006/07




                                                                                                                                  2006/07
                    2005/06




                                                                      2005/06




                                                                                                                        2005/06
                                        2007/08




                                                                                          2007/08




                                                                                                                                            2007/08
                                                            2009/10




                                                                                                              2009/10
       Year


  City Councils      1         5         3        0          -         2        0          1         4         -         1        0         0         0
  Municipal
                     4        13         7        10         -        10         3        10         7         -         1        0         0         0
  Council
  Town Council       4         3         4         4         -         5         1         2         2         -        0         0         0         0
  District                              5         6                   5                   4
                    44        79                             -                  20                  42         -         2        0         0          1
  Council                               8         3                   0                   8
                                                                      6
  Total             53        100       72 77                -                  24        61        55         -         4        0         0          1
                                                                      7
 Source: NAO 2010.

Formula Based Budget Allocation to LGAs
One of the essential tools to ensure equitable resource allocation is the use of formula based
approach to allocate budget to LGAs. Since 2004/05, the Government has promoted the use
of this approach in order to ensure that allocations to all LGAs is transparent and equitable,
based on needs as opposed to facilities. The approach has been propagated by the on-going
Local Government Reform Programme (LGRP). The aim of the program is to transfer the
duties and financial resources, for the delivery of public services from the central government
to local government authorities (LGAs). The LGRP’s long-term goal is to reduce the
proportion of Tanzanians living in poverty, by improving citizens’ access to quality public
services provided through relatively autonomous local authorities. Although the allocation
formula has not strictly been followed, a significant amount of funds that were formerly used
to be transferred through ministerial votes are now sent directly to the LGAs. This
phenomenon is indicated in Table 4.5




                                                                      61
Table 4.5. LGAs/RS Budgets Trends from 2005/06 to 2009/10 (OC/Development) -
(DRA/DLG) (in Million TZS)
            LGAs Budgets trends from 2005/06 to 2009/10 (PE, OC and Development)
                                                                                        %
           BUDGET      2005/2006 2006/2007 2007/2008 2008/2009 2009/2010             increase
 1 P.E                    329,813   575,649   626,051  694,998    501,295                 52%
 2 OC                     154,337    154,637  184,000   214,000   326,627                 112%



 3 DEV (LOCAL)              5,681     10,077        21,237     32,180     109,512       1828%



 4 DEV(FOREIGN)                                   252,793      324,596    369,081         46%
   JUMLA                  489,832    740,362    1,084,081    1,265,774   1,306,515       167%

Source: PMO-RALG, 2010.

It is apparent that significant improvement has been registered with regard to D by D as
witnessed by the increases in resources flowing to LGAs. With more resources at local level,
efforts have to be made in the area of human capacity building for both councilors and LGAs
staff for the purpose of enabling the councils to make correct decisions coupled with
enhancing technical capacity of the staff. Furthermore, through the LGRP, the Government
has strengthened the LGAs' capacity in bringing the communities to the planning and
budgeting process in order to ensure that the value for their money is realized. This set of
reforms has improved both public service delivery and transparency.


Goal 3: Effective public service framework in place to provide foundation for service
      delivery improvements and poverty reduction

Effective public service delivery is vital for poverty reduction. Its improvement overtime is
therefore, an important component in ensuring good governance and accountability. The
realization of this goal entails: (i) placing administrative system of public institutions and its
transparent management in the interest of people that are served (ii) institutionalization and
implementation of D by D to enhance public ownership of development and poverty
reduction process. The progress on this goal can be measured by:

      i.     Percentage of population reporting satisfaction with government services
     ii.     Percentage of population who found key service providers absent when they
             needed a service

There is no recent survey reporting on these indicators. However, the pattern of increased
satisfaction is indicated in Figure 4.1. The policy interventions which led to the observed
increases have been scaled up. Further, in order to address the shortages in human resources,
in 2009/10 the Government granted permit to employ a total of 44,857 staff out of the 45,568
authorized vacancies.

Furthermore, the government continues to increase service delivery. As Figure 4.2 shows,
public satisfaction from public services continue to increase – as reflected in increased access
and reduced time through improvement of basic facilities (like roads, schools, dispensary,
etc.). Most of the developments have been covered in the presentation of Cluster I and II.


                                               62
Figure 4.2. Percentage of Respondents Reporting Satisfaction with
Government Services, by Sector, 2001, 2003, 2005 and 2008

            100
                                                          86
                      90
                                     79                               81
                      80
                      70
   % of Respondents




                             59      73                  70           64
                      60
                      50
                              50   46                     41          42
                      40
                      30
                      20
                      10
                      0
                           2001                     2005
                                   2003 Year of Survey            2008

                                        Education        Health

Source: URT (2009) PHDR

The Government is aware that clients are better served when civil servants are motivated. To
that effect, efforts have been undertaken to increase the pay levels in the civil services through
the pay reform component of the Public Service Reform Program. Since 2005 to 2010, the
minimum Government salary scale has increased by 52 percent as shown in Figure 4.2.

Figure 4.2 Trend in minimum wages between 2005/06 and 2010/11




Client Service Charter
The Government has committed itself to a client service charter, which stipulates the rights
and responsibilities of its clients, including the type and quality of service that a client should
expect from that particular institution, the time it takes to receive the service, and the
mechanism for filling complaints in case the client is not satisfied with the quality of service
received.




                                                    63
In 2009/10 the Government conducted training on public service client to different cadres in
Government, LGAs, FBOs, and CSOs in Tabora, Shinyanga, Rukwa, Ruvuma, Mtwara,
Singida, Lindi, Iringa and Coast Region in order to spearhead the implementation of the
charter. In the same vain, the Ethics Secretariat conducted training on good governance to
529 councilors from 18 LGAs. The government also aired 126 radio and 10 TV programs all
aimed at raising public awareness on good governance and rule of law and thus educate the
general public on their rights to efficient public service delivery.

The Government has established a system and framework on how to deal with complaints of
service delivery to the general public as a way of implementing the charter. The system has
been piloted in seven MDAs and complaint desks have been introduced in those MDAs. In
the same spirit, Information Education and Communication (IEC) units in all MDAs have
been strengthened in order to educate the general public of what they should expect from the
government. Furthermore, the Government, through Public Service Commission, conducted
inspection in 161 public institutions during 2005 -2010, in order to ensure compliance to laws,
rules and regulations in public service. Moreover, the government continues to implement the
Open Performance Review and Appraisal System–OPRAS – as one of the actions to improve
public service delivery.


Goal 4: Rights of the poor and vulnerable groups are protected and promoted in the
        justice system

The goal aims to ensure an effective judicial system. This aspect is a critical ingredient in
ensuring governance and the rule of law. In order to realize the goal on protection and
promotion of the rights of the vulnerable groups, the judicial system focuses on reduction
outstanding court cases backlog, case screening and prosecution process. The progress in
achieving the goal is measured by:
       i. Percentage of court cases outstanding for two or more years
      ii. Percentage of prisoners in remand for two or more years compared to all prisoners
           in a given year
     iii. Percentage of detained juveniles accommodated in juvenile remand homes
     iv.   Percentage of districts with a team of trained paralegals.

Outstanding court cases back log
Most of the stakeholders' effort in this area has been guided by the on-going Legal Sector
Reform Program (LSRP). Thus, in 2009/10 the Government took measure to address a range
of issues from timely delivery of justice, capacity of the judiciary, gender, accountability and
judicial use of public resources, to overall improvement of the legal system in the country.
Likewise, the mainstreaming of cross cutting issues has also been an integral part of the on-
going reforms. The Government embarked on process of training to officials of the judiciary
on issues of coordination and monitoring and evaluation. The objective of the training is to
improve timely delivery of justice. With regard to speeding up filed cases, various initiatives
have been considered, these includes appointment of more Judges, Resident Magistrates and
Primary Court Magistrates, State Attorneys, and Law Secretaries. For example, the number
of judges in the Court of Appeal increased from 8 in 2005 to 21 in 2010. Likewise, the
increase was from 24 to 68 in the case of the High Court.

These efforts have improved the capacity of judicial system, as reflected in the increase in the
number of court sessions. As a result, the outstanding court cases have been declining. A



                                              64
study conducted jointly by the Ministry of Constitutional Affairs (MoCAJ) and the National
Bureau of Statistics shows that over the period 2004 and 2008, the percentage of cases
pending for two years or more ranged between 24 percent and 29 percent. It also shows that
in 2008, 74 percent of all cases had been pending for one year. The trend indicates that the
target of reducing the percentage of outstanding court cases to 40 percent by 2010 is likely to
be achieved.

Case Screening and Prosecution Process
During the implementation of MKUKUTA, the Government, in collaboration with other
stakeholders, conducted a technical study on the transformation of the prosecution system in
the country. The recommendations on the legal and the structure of the national prosecution
services have informed the recent policy implementation. Again, these efforts have been
coordinated under the Legal Sector Reform Program (LSRP).

As a result of the above efforts, the Government strengthened the prosecution procedure by
preparing and distributing Investigation Framework, as well as strengthening the forensic
laboratory. In order to strengthen investigation, 502 police officers were given advanced
training and 310 were given basic training since 2005-2009/10. As the investigation capacity
increases, the percentage of prisoners in remand for two or more years has fallen consistently
from 15.7 percent in 2005 to 5.4 percent in 2009/10.

The Government has expanded dormitories in prisons in order to reduce overcrowding.
During the implementation of MKUKUTA, the carrying capacity of prisons increased by 22
percent, from 22,669 inmates in 2006 to 27,653 in 2010. However, this is still inadequate
since there are 38,148 inmates, of which 19,146 were prisoners and 19,002 were remandees.
Females were 1298 out of 38,148 inmates. The use of Parole system is inhibited by its Act
and for the period 2005/06 – 2009/10, only 251 prisoners were released under the system.
During the review period, 1,591 prisoners (out of which, 445 were females) were under home
custody in accordance with the Community Service Act 2002.

Detained juveniles
The Government, in collaboration with other stakeholders, took measures to improve services
to children in conflict with the law. In 2009/10 the Government facilitated training of 30
juvenile justice administrators in retention homes, approved school and juvenile court best
practices for handling children in conflict with the law. Moreover, 30 social welfare officers
were trained in guidance and counselling to substance abusers.              Furthermore, the
Government facilitated training of 200 community justice facilitators from 11 councils of
Arusha, Kahama, Lushoto, Mufindi, Same, Morogoro Rural, Morogoro Urban, Handeni,
Bariadi and Simanjiro.

As a result, the number of juveniles in homes decreased from 913 in 2004 to 728 in 2006, but
increased to 1101 in 2007 and decreased again to 880 in 2008. However, in the absence of
further information on the total number of juveniles in detention, currently it is difficult to say
whether or not the situation for juvenile detention is improving.

Goal 5: Reduction of Political and Social Exclusion and Intolerance

This goal focuses on the need for developing and strengthening political and social systems as
a way of promoting more participation of citizens, particularly the poor and the most




                                                65
vulnerable. The progress is to be measured by the indicator of the number of cases filed for
infringement of human rights.

The government sustained its commitment to various international human rights conventions
which it has subsequently ratified. During 2009/10 the number of cases for infringement of
human rights brought forward from previous years was 941 and new cases were 481. Going
by this indicator, the number of cases filed initially increased from 2,789 in 2004/05 to 4,948
in 2006/07, mainly reflecting intensity of the outreach programs of the Commission for
Human Rights and Good Governance. This trend is summarized in Table 4.6.

 Table 4.6. Trend in Filed Cases on Human Rights

                               Cases for infringement of human rights
                          Brought             New      Completed                  Carried
                          forward                                                forward
 2006/07                     5307             4948          3296                    6959
 2007/08                     7664             2660          2285                    8039
 2008/09                     2285             2073           789                    3569
 2009/10                      941              481           941                      481

 Source: MoCJ -Minister's Speech to the Parliament, June 2010

The observed decline is partly explained by a number of initiatives which were undertaken by
the Government and other stakeholders, including the enhancement of the capacity of the
Commission for Human Rights, raising awareness of stakeholders regarding human rights,
building of capacity of NGOs on monitoring and reporting human rights abuses, and
promotion of collaboration between regional and international human rights agencies. It is
noted that over the period of 2005-2010, the government trained 12,536 police officers on
issues of good governance and human rights.

In order to foster social inclusion, the Government in 2009/10 ratified the International
Agreement on Rights of People with Disabilities and enacted the Disability Act. These pieces
of legislation have improved the procedures on how to deal with, coordinate and supervise
interventions directed to vulnerable groups in the Tanzania. They have also been useful in
identifying the needy, where they are and what they do.

Furthermore, in implementing the International Agreement on Disabilities and Older Persons,
the Government in 2009/10, in collaboration with other stakeholders, marked the International
Days for Elderly, National Albino and Persons with Disabilities Day, whose motto was
"Elderly as a new force for development and empowering the blind economically in order to
build a sustainable means for self-reliance and national development". The effect of this
campaign was enhanced public awareness on the rights of these social groups.

The Government prepared a framework/guideline on how to deal with staff with disabilities in
order to facilitate access to and mobility in labor markets, particularly in the public sector.
Furthermore, the Government established a database of staff with disabilities and those
expected to graduate from colleges. The database will be used in developing strategies on
how to assist them in accessing labor market opportunities and in their career development.




                                              66
In the same vain, 11 government officials, with disabilities, were sponsored for the masters
study programs between 2008 and 2009.

With regard to political inclusion and participation in the democratic processes, Tanzania has
continued to improve its political image. In 2009, Tanzania successfully conducted the local
government election. Further, it is noted that by July 2010 there were 18 political parties with
permanent registration, two parties with provisional registration, and 2 parties deregistered
after failing to meet the conditions for permanent registration. Furthermore, the government
prepared the electoral codes of conduct to guide the conduct of all political parties during
elections. All political parties have ratified the codes of conduct. Likewise, the Election
Financing Act (2010) was enacted to curb corruption and improve the transparency on the
sources of finances in order to provide a level playing field for all parties.

The government has also updated the Permanent Voters' Register (PVR), and opened three
registrar offices at zonal level in Arusha, Mbeya and Mwanza. The preparations for general
election in 2010 are at an advanced stage. Seven new constituencies and 808 wards have
been established.

Goal 6: Improved personal and material securities reduced crime, eliminate sexual
abuse and domestic violence.

The operational target under this goal is to ensure that institutions and agents of government
such as the police, courts and prisons observe human rights and ensure justice and security of
all citizens. The progress toward achieving this goal is measured by:
        i. Average number of inmates per facility as a percentage of authorized capacity
       ii. Number of cases of crimes reported (Court of Appeal, High Court, District
             Courts)
      iii. Percentage of cases of sexual abuse reported that resulted in a conviction
      iv.    Percentage of surveyed respondents (males and females) who agree that a husband
             is justified in hitting or beating his wife for a specific reason.

It has already been reported that by April 2010, there were a total of 38,148 inmates in
facilities with a carrying capacity of 27,653 inmates. However, it is noted that overcrowding
has decreased from the baseline of 196.3 percent set in 2004/05 to 151 percent in 2007/08.
This performance has been mainly due to expansion of prison facilities.

In fighting crime, retooling and training on various skills was given to 8,948 police personnel
of various cadres in 2009/10. Since 2005/06 to 2009/10, the Government continues to
strengthen the capacity of crime investigation by training 1,169 police officers on
investigative skills. Over the period, 2,174 participatory/community police groups were also
formed to boost security in their respective communities.

Other measures undertaken to curb crime include: capacity strengthening through
modernization of equipment and special deployment to crime prone areas (Mara region). It is
noted that, due to increased capacity to patrol, reported crimes increased by 12.1 percent
between 2008 and 2009. Furthermore, 3,010 illegal arms were captured and destroyed,
leading to decline in incidences of large scale robbery.

The period under MKUKUTA implementation witnessed increased effort in curbing
availability and use of illicit substances. In order to ensure security in civil aviation and



                                              67
curbing drug trafficking, the Government strengthened and scaled-up security measures, by
installing modern screening equipments at Mwalimu Nyerere International Airport, Mwanza
and Arusha airports. Furthermore, between 2005 and 2010 the Government destroyed 1,863
hectares of marijuana (cannabis) in five regions, 540 tones of marijuana and 126 kgs of
heroin, 18.6 kgs of cocaine were intercepted. Also, during the period 30,761 drug pushers
were arrested. Parallel to these measures, efforts were also directed to educating the general
public on the negative effects of illicit substances.

It is noted that Tanzania has a ratio of one police officer to 1,300 people compared to
internationally recommended ration of 1:450. To address this anomaly, the police force
planned to recruit 5,715 personnel, including those needed for cyber crime. To that effect, the
government recruited 1,075 police personnel during 2009/10.


Goal 7: National cultural identities enhanced and promoted

There have been significant progresses in the area of national culture and identity. Areas in
which these progresses are observable are discussed in the subsequent sections:

Media
The Government recognizes that the media is an important player in promoting the national
culture. Thus, the Government did put in place and implemented policies that ensure the
media has the requisite freedom to perform its duties. By May 2010 the Government had
registered 710 news papers and magazines, 59 radio stations, and 28 TV stations. This
expansion of media has been realized in collaboration with the private sector. Furthermore,
the Government is in the final stages of reviewing the Media Act 2003 in order to
accommodate changes and developments in the media sector.

Cultural and Historical heritages
The Government, in collaboration with other stakeholders, continued to support institutions
responsible for preserving useful traditions. In that context, the Government conducted a
study in 2006 to identify traditional legal/law concepts in Kilimanjaro, Mwanza and Kigoma
regions to inform policies in this direction. The objective of the study was to raise awareness
of some of the useful traditional legal concepts. In 2009/10, the government commenced the
implementation of the Kiromo project in Bagamoyo district. The project aims at
strengthening the preservation of cultural and historical heritage around Bagamoyo area.
Furthermore, the Government, through Taasisi ya Sanaa na Utamaduni Bagamoyo, enrolled
121 students for long term training programs and 100 students for shorter term courses.
Likewise, Baraza la Sanaa la Taifa (BASATA) conducted training on talents identification
and development to 560 artists from five regions. Out of these, 124 artists were identified and
participated in further training. In order to market Tanzania's heritages abroad, in 2009/10
Tanzania participated in Pan African Culture Festival in Algeria by sending seven art groups.

Kiswahili as the national identity
Kiswahili continues to become one of the strongest components of Tanzania’s national
identity. Those being the case, the Government and other stakeholders have been
spearheading the expansion of Kiswahili in several fronts. Therefore, the government
conducted a research on local languages in regions of Tanga, Morogoro, Dodoma Mbeya,
Iringa, Mara, Manyara, Mwanza, Ruvuma and Singida with a view to identifying vocabularies
which could be adopted in Kiswahili. Further, in 2009/10, the Government prepared and



                                              68
aired 52 programs on Lugha ya Taifa, 52 programs on Kumepambazuka, and televised 52
programs on Ulimwengu wa Kiswahili. Furthermore, the Government conducted training on
proper use of Kiswahili to 150 news editors and reporters. As a result, Kiswahili continues to
be recognized as a pan-territorial language. Presently, Kiswahili has become official
language of the East Africa Common Market.

Patriotism and determination
In order to foster the sense of patriotism, handwork, and self-determination among the youth,
the Government reintroduced the National Services. Consequently, by June 2010, there were
7,110 new recruits. Furthermore, Tanzania armed forces have participated in peacekeeping
missions in Darfur (Sudan), Anjouan (Comoro), and Lebanon. These operations have
heightened Tanzania's profile in the international community.

4.3. Status and progress of reforms
This section presents the progress, performance, and challenges facing core reform
programmes in 2009/10. It also summarizes the same since 2005/06. These reform
programmes have positively contributed to the achievement of governance cluster goals as
well those of the other two clusters, growth and reduction of income poverty and quality of
life and social wellbeing.

4.3.1. Public Service Reform Programme (PSRP)
Public Service Reform Programme, popularly referred to as Performance Results and
Accountability Project (PRAP) was designed to create an efficient, responsive and
accountable public service to provide quality service delivery across government institutions.
During the period under implementation, the PSRP recorded the following achievements:
        i. Finalisation of two major interventions. These are: the development of Policy
           Making Processes and Action Plan, and the Ethics Operational Manual
       ii. Integration of PSRP intervention into MTEF of 90 implementing institutions in FY
           2009/10; namely 25 MDAs, 21 regions, 15 independent departments; 29 executive
           agencies
     iii. Facilitated the effective function of the Reform Coordination Unit (RCU). This is,
           by holding coordination meetings. These coordination meetings informed the
           Chief Secretary and Permanent Secretaries on development of reform programmes
           and made recommendations for appropriate actions
      iv.  Establishment of two Executive Agencies in FY 2009/10
       v. Processing and validation of human resources (HR) and payroll information of 186
           institutions in FY 2009/10
      vi.  Establishment of e-government portal and upgrading of Human Capital
           Management Information Systems (HCMIS) from version seven to version
     vii.  Embarking on capacity building initiative of MDAs in the areas of Monitoring and
           Evaluation Systems following the Formulation of Planning, Budgeting and
           Reporting Manual in 2007.
    viii. Installment of new filling systems in 2009/10 in 10 District Commissioner Offices
           with a view to enhance records management
      ix. Preparation of policy development capacity plans to enhance skills in five central
           ministries
       x. Development and implementation of a PSRP assessment mechanism known as
           Supervisory, Advisory and Reporting Framework as a mechanisms for tracking
           progress of the interventions.




                                             69
     xi.   Adopted and implemented a demand-lead initiatives in the context of PSRP to
           scale up ownership of MDAs
    xii.   Completion and adopted of Medium Term Pay Policy
   xiii.   Establishment of Leadership School
   xiv.    Development of leaders accountability frameworks
    xv.    Establishment of Centrally Recruitment Secretariat

Besides the achievements mentioned above, the implementation of PSRP encountered the
following challenges:
     i.    Spearheading e-government implementation across MDAs, Regions and LGAs
     ii. Sustaining the capacity of monitoring and backstopping mechanisms for a large
           number of implementing agencies compared to the capacity of PO-PSM
     iii. Ensuring the effectiveness of the demand-led approach
     iv. Ensuring effective application, across the Government machinery, of the
           Performance Management System (PMS) tools such as the Strategic Planning,
           OPRAS, Service Client Charters, and Service Delivery Surveys.
     v.    Attracting and retaining competent staff in public services particularly in under
           served areas.
     vi. Enhancing public service pay in tandem with the expanding scope of public
           service demand, coupled with the limited resources available.

4.3.2. Local Government Reform Programme (LGRP)
The second phase of LGRP was developed in 2008 with the aim of transforming LGAs into
competent strategic leaders and coordinators of socio-economic development, while ensuring
that the institutions in their areas of jurisdiction are accountable and transparent in delivery of
services geared toward poverty reduction. To that effect, the government approved the LGRP
II in June, 2009. LGRP II registered the following achievements during the FY 2009/10:
i.      A serious review of the Local Government Finances Act, the Local Authority
        Financial Memorandum (LAFM) and the Local Authorities Accounting Manual
        (LAAM) was undertaken to ensure they are D by D compliant. Draft documents were
        shared with key stakeholders in March 2010. A draft Cabinet Paper, proposing areas
        for amendment, was developed and submitted accordingly.
ii.     An assessment to determine LGAs access to LGDG funds for FY 2010/11 based on
        fulfillment of minimum conditions was undertaken. The results show that four LGAs
        out of 132 did not qualify.
iii.    Financial management training for council functionaries was conducted. The council
        planning officers and economists, engineers, and procurement officers in all 133
        LGAs were trained on the new accounting IPSAS framework.
iv.     Working conditions of internal auditors have been improved by providing them with
        the necessary working tools and equipment, such as computers and printers.
v.      Improved relationship between Central and Local Government from a command and
        directives to a consultative and dialogue guided by laws and regulations.
vi.     Increased awareness on D by D Policy across the government machinery.
        Furthermore, there has been improved resources devolution to LGAs by MDAs. For
        example, about TZS 286.9 billion were identified from MDAs plans and Budgets and
        devolved to LGAs following the D by D compliant assessment exercise conducted in
        14 MDAs in 2006/7.
vii. A good number of laws and regulations have been reviewed to accommodate the D by
        D principles. The following MDAs have been successfully reviewed their laws to



                                                70
        comply with D by D requirements. These are: they are Ministry of Lands, Housing
        and Human Settlement Development (Urban Planning Act, N0.8/2007, Planning Land
        Use Planning Act, N0 6/2007); Ministry of Health and Social Welfare (Public Health
        Act and HIV and AIDS Control and Prevention Act, N0. 2/2008, Mental Health Act,
        2008); Ministry of Infrastructural Development; (Road Act N0 13/2007); Ministry of
        Natural Resources and Tourism (Forestry Act. N0. /2004), Ministry of Water and
        Irrigation (Water Resources Management Act. N0 11/2009 and Water Supply and
        Sanitation Act. N0 12/2009); Vice President’s Office (Environment Act, 2004) and
        Ministry of Community Development Gender and Children (The Law of the Child
        Act, 2009).
viii.   As part of implementation of human resources decentralisation and capacity building
        initiatives, 79,458 personnel of various cadres were recruited by MDAs and posted
        directly to LGA between 2006/07 and 2009/2010. The transfer of personnel from
        MDAs to LGAs did take place as part of the implementation of human resources
        decentralisation processes.
ix.     Improved financial management, discipline and accountability was realized, as
        evidenced by increasing number of LGAs with clean audit certificates and decreasing
        of adverse certificates. Likewise, LGAs registered significant improvement in
        financial management discipline, underscored by the increasing number of LGAs
        qualifying to access the Local Government Development Grants (LGDM), which
        require LGAs to fulfill certain good governance practices. In this case, the number of
        LGAs accessing such grants increased from 25 (53%) in FY 2004/065 to 129 (98%) in
        FY 2009/10.
x.      Training and wider application of PlanReP and LGMD were undertaken to 122 LGAs
        personnel. In addition, ICT facilities in terms of 366 computers and printers were
        purchased and distributed to 122 LGAs.
xi.     The scope of LGAs using Integrated Financial Management Systems (IFMS) and
        EPICOR systems increased from 38 in 2005/06 to 86 in 2009/2010.
xii.    The number of LGAs applying Opportunities and Obstacle to Development (O&OD),
        as main planning and budgeting tools, has increased. This has been facilitated by the
        application of PlanRep2 and Local Government Monitoring Data base (LGMD)

Among the challenges facing LGRP include:
 i.   Ensuring effective application of Performance Management System (PMS) tools such
      as the Strategic Planning, OPRAS, Service Client Charters, and Service Delivery
      Surveys as across government.
 ii. Creating enabling environment for under the served areas that promotes retention of
      personnel deployed there.
 iii. Ensuring that decisions made and actions undertaken by the LGAs embrace the 'value
      for money' principle.
 iv. Broadening the revenue base of the LGAs.

4.3.3. Legal Sector Reform Programme (LSRP)
The aspiration and vision of the LSRP is “Timely Justice for All” built around the core
characteristics of: Speedy dispensation of justice; affordability and access to justice for all
social groups; integrity and professionalism of legal officers; independence of the judiciary;
and a legal framework and jurisprudence of high standards that is responsive to social,
political, economic and technological developments at both national and international levels.




                                              71
The Programme focused into six Key Result Areas (KRAs), namely: (i) strengthening and
harmonizing the national legal framework, (ii) enhancing justice for the poor and the
disadvantaged social groups, (iii) improving the observance of human rights and
administrative justice, (iv) enhancing knowledge and skills of legal professionals, (v)
improving service delivery capacity in key legal sector institutions, and (vi) programme
management, coordination, monitoring and evaluation. The following are among the
achievements:
 i.    Realization of streamlined and strengthened ministerial portfolio, prosecution and
       investigation system by separating prosecution and investigation;
 ii. Improved access to justice for persons in remand homes and prisons: by ensuring
       availability of transport facilities for prisons, remandee homes;
 iii. Support to the establishment of a legal aid network, comprising of key non-state actors
       in the legal sector for justices dispensation has been forthcoming.
 iv. Human Rights observance by law enforcement agencies was monitored by NGOs and
       Commission of Human Rights and Good Governance (CHRAGG)
 v.    Physical verification of assets and liabilities of 373 public leaders was conducted
       using systematic sampling method.
 vi. The draft National Legal Training Curriculum was developed and the Law School of
       Tanzania enrolled, for practical legal training, a total of 1074 students since March
       2008,
 vii. Newly employed state attorneys totaling 204 were posted to their respective regional
       and district prosecution offices throughout the country;
 viii. 150 district officers were trained in modern investigation skills and other 140 officers
       were trained on human rights observance and good governance;
 ix. LSRP has been fully integrated into the operations of government. The LSRP planning
       process has been harmonized with the regular MTEF planning and budgeting
       framework;

The legal sector is challenged to effectively respond to the unfolding national and
international social, political, economic and technological developments. Therefore, the
challenges include:
  i.    Coping with the changing social culture of the people triggered by urbanization,
        expanding and intensifying interaction with other cultures.
  ii. Aligning with the new pluralistic democratic political environment, coupled with the
        movement towards participatory management of socio-economic development;
  iii. Responding to the complexities of market led economy. The legal framework needs to
        change to facilitate regulation of corporate behavior, to streamline and harmonize
        existing regulatory frameworks with a view to protect consumer interests, and
        dispensation of timely cost effective civil and commercial disputes resolution;
  iv. Adoption and adaptation of ITC in the legal sector to match with the demand of the
        time. In this case, the nature of evidence admissible in court needs to be redefined;
  v.    Ensuring availability of adequate magistrates and judges across the country.

4.3.4. National Anti-Corruption Strategy and Action Plan (NACSAP)
The National Anti-Corruption Strategy and Action Plan II (NACSAP II) was designed to be
more focused, robust, relevant and inclusive. To that effect, eight (8) major goals were
identified, namely: (1) Combat corruption in a more scientific way and by addressing its root
causes; (2) Strengthen anti-corruption mechanism at all Ministries, Departments and Agencies
of government; (3) Introduce systems of integrity, accountability and transparency in Local



                                              72
Government Administration (LGA); (4) Mainstream and empower Private Sector into anti
corruption; (5) Mainstream and empower Civil Society Organisation and Non State Actors
into anti corruption processes; (6) Raise public awareness of anticorruption; (7) Build
Synergy between NACSAP and Legislative and Judicial Integrity Programmes; (8) Enhance
the capacity of PCCB, GGCU and Director of Public Prosecution to deal with corruption,
manage and implement NACSAP. To date, the NACSAP has registered the following
achievements
  i.    Establishment of Integrity Committee in all MDAs, Regions and LGAs
  ii. Development and implementation of the MDAs, Regions and LGAs Service Client
        Charters and Complaint Handling Desk in all MDAs. Regions, and LGAs.
  iii. Formulation of Political Parties Financing Act, 2010 and developing draft of
        legislation of the Public Leadership Code of Ethics Act, 2010.
  iv. Undertook capacity building initiatives to integrity committee (ICs) in all 25
        ministries, 35 departments, and 68 agencies of the Government. A total of 559 IC’s
        members were trained on Corruption and Ethics and on the roles and functions of ICs.
  v.    A total number of 109 parliamentarians from the African Parliamentarian Network
        Against corruption (APNAC – Tanzania chapter) were trained on the ethics
        infrastructure, the roles and functions of ICs and NACSAP II. Similar training was
        given to judges of the High Court and Court of Appeal of Tanzania and other Judicial
        Officers
  vi. The Preventing and Combating Corruptions Act, N0 11, 2007 was developed
  vii. Grand and petty corruption cases were forwarded to the relevant courts of law for
        decision
  viii. Increased awareness and enhanced involvement of civil society, private sectors,
        religious based organizations, media, and parliamentarians has been realized.
  ix. Establishment of PCCB offices in all LGAs has been undertaken.
  x.    The capacities of the key institutions (watchdogs and oversight) have been
        strengthened.

Major challenges include:
 i.    The Integrity Committees (ICs) of MDAs are not functioning effectively.
       Consequently, they have been unable to produce regular reports to GGCU. To address
       this, the development of an M & E framework will ensure regular integrity monitoring
       meetings.
 ii. The changes in technology require flexibility and multidisciplinary approaches in
       dealing with corruptions. Therefore, the need to create such capacities is imperative.

4.3.5. Public Financial management Reform Programme (PFMRP)
Public Financial management Reform Programme PFMRP phase III, addresses eight key
result areas namely; the improvement on the budget process and management; the
improvement on the accounting system and tools; the improvement on the audit function; the
strengthening of public procurement process and management, and the strengthening capacity
of parliamentary oversight committees. Others include: the improvement on non-tax domestic
revenue collections; the institutional support to PFM training institutes; and improvement on
programme coordination, monitoring and communication. The achievements realized
include:
  i.    Improvement of the budget process and management by working on macroeconomic
        modelling (MACMOD) and linking it with Financial Programming (FP), capacity




                                             73
        building and staff training on project and programme management and budget
        preparation, based on the Classification by Function of Government (CoFoG).
 ii.    Merging budget economic classification from the 1986 GFS version to the 2001 GFS
        version, preparation for accrual accounting, as well as fostering compliance with IMF
        standards.
 iii.   Improvement on the accounting system and tools through enactment of miscellaneous
        amendments to the Public Finance Act (PFA) for the establishment of an independent
        Internal Audit Department and give the Accountant General (ACGEN) authority over
        finances (IFMS) in LGAs. The legal framework was enhanced by amendment of the
        Treasury Registrar (Powers and Functions) Act Cap. 370 and the Public Corporations
        Act Cap. 257 so as to give the Office of the Treasury Registrar more regulatory
        powers. Also progress was made in linking IFMS to Electronic Fund Transfer through
        Tanzania Inter-bank Settlement System (TISS) for unified database of public debts.
 iv.    Improvement on Audit functions, through completion of office buildings in Lindi and
        Morogoro, office retooling with ICT equipment and capacity building to auditors by
        training on Teammate (140), risk based auditing (100), exposure study visit (PAC
        members) and couching on performance auditing techniques.
 v.     Strengthening public procurement, through PPRA capacity building programme,
        whereby 28 sessions conducted involving 1904 Procurement Entities (PEs) staff,
        audited 99 PEs, made audit follow up to 28 PEs which were previously audited; rolled
        out Procurement Management Information System (PMIS) to 69 PEs and registered
        122 new users in the system; made weekly publication of Tanzania Procurement
        Journal Supplement and completed a feasibility study on e-procurement.
 vi.    Commissioned a study on Non-Tax Domestic Revenue Collections and final report is
        expected in the first quarter of FY 2010/11.
 vii.   Institutional support to Public Finance Management (PFM) Service Providers
        accomplished by delivery of training materials, including books and ICT facilities.

Despite the registered achievements, the PFMRP still faces the following challenges.
 i.    Capacity to effectively operationalise core IFMS modules at LGAs
 ii. Cash flow forecasting and predictability for timely resources availability at the
       Ministries Departments and Agencies (MDAs) and Local Government Authorities.
 iii. Harmonization of systems and the budget tools like SBAS, IFMS, RIMKU, Plan Rep
       for effective budget management and budget execution reporting.
 iv. Pace of improvement in public procurement
 v.    Availability of qualified accountants, auditors and IT personnel
 vi. Strengthening dialogue on PFM issues and sharpening the focus of PFMRP at all
       levels of Government operations.

4.5. Challenges, Lessons Lerned, and the Next Steps
Many of the challenges facing the implementation of governance and accountability
interventions have been outlined in the previous section. Addressing the challenges will
improve the stance of good governance and accountability in the country. This in turn will
contribute to the successful implementation of MKUKUTA II. The following are key issues
for considerations as MKUKUTA II is implemented.

(i)       Reform design
Reform design plays an important part in the success of programmes implementation. Proper
reform design is expected to consider the level and type of changes needed (transitional,



                                             74
incremental or transformational) and when the requisite interventions are expected. However,
it was observed that, the design of most of reform programmes was silent on the type and
level of changes envisaged. As a result interventions were formulated without having
addressed the proper course of changes. There is need to have a thorough situation analysis to
determine the type and the level of envisaged changes desired (transitional, incremental or
transformational).

(ii)         Strengthening Reforms Coordination
Strengthening reforms across the government machinery will result in the achievement of
intended objectives and desired impact. The establishment of the Reforms Coordination Unit
(RCU) in the State House was considered as an ideal decision. Through RCU, the
government is consistently being informed on the progress made on these reforms. Similar
initiatives and arrangements should be encouraged to be adopted at the implementing MDAs.
However, understaffing of the unit was considered as a shortfall. Therefore, strengthening the
capacity of such unit will be critical for enhancing coordination.

(iii)      Mainstreaming of Reforms into Government Structure
The move to mainstream reforms into government structures and systems is in line with JAST
principles which require programmes to be planned and budgeted in government systems.
Such approach has an advantage of increasing transparency, accountability and ownership.
The approach ensures that the interventions are sustainable. Thus, based on this observation,
mainstreaming of the reforms requires serious consideration by both the government and
other stakeholders.

(iv)        Strengthening Reforms M&E Framework
Institutional reforms had limited contributions to the achievement of MKUKUTA objectives
due to weak monitoring and evaluations (M&E) systems. Most of the M&E systems of the
reform programmes do not link to the MKUKUTA M&E, and therefore their indicators do
not tally with to each other. This phenomenon made it difficult to track and gauge progress in
a comprehensive manner. There is need to review the current M&E systems to accommodate
MKUKUTA II M&E systems requirements.

(v)         Human Resource Development
Human resources are critical ingredient for achieving the goals of social economic
development. This being the case, human resource development needs to be given more
priority than in the past. The issue of human resource development as a cross-cutting issue
demands a broader approach, beyond the public sector reform programs. To that effect,
innovative initiatives (policy, strategies, plans, and programs) have to be undertaken by the
government, the private sector, and other stakeholders to build human capacity.



                                   CHAPTER FIVE
                                 MKUKUTA FINANCING
5.1. Introduction
Financing continues to be an important part of MKUKUTA implementation, particularly in
facilitating achievement of outcomes under the three clusters. This chapter analyses progress
on financing made during the financial year 2009/10 and looks back to the previous four years
of MKUKUTA implementation. The chapter is divided in a number of sections. Section two
presents some of the tools for budget preparation and execution; Section three discusses


                                              75
resource mobilization, both domestic and foreign. Section four discusses allocation to
MKUKUTA in some selected sectors; Section five deals with budget execution and
specifically discusses the actual disbursement versus the approved budget. Section six
discusses budget reporting and issues of transparency. Section seven outlines the challenges
encountered during the MKUKUTA implementation period and key issues for the way
forward.

        Performance at Glance
         Overall allocations to MKUKUTA were stable at around 71 percent of the budget; 
         Revenue collection has more than doubled during the MKUKUTA implementation
           period from an average of TZS. 177.1 billion per month in 2005/06 to TZS388.5
           billion in 2009/10;
         Development partners’ budget support doubled from TZS 591,711 million in the
           first year of MKUKUTA implementation (2005/06) to TZS 1,214,665 million in
           2009/10;
         Total expenditure to GDP ratio increased consistently with the MKUKUTA
           objectives from 22.8 percent in 2005/06 to 26.5 in 2009/10;
         Development expenditure, as percent of GDP, increased from 7.7 percent when
           MKUKUTA implementation started in 2005/06 to 8.5 percent towards the end of
           phase one of MKUKUTA implementation in 2009/10; 
         Progress has been made in strengthening public financial management whereby
           about two third of districts (LGAs) are now connected and using the computerized
           Integrated Financial Management System (IFMS) which is a tool for recording,
           managing and controlling expenditures.


5.2. Budget Preparation and Execution Tools
The main frameworks for resource mobilization continued to be the TRA's Corporate
Strategy, the Public Expenditure Review (PER), General Budget Support (GBS), the joint
assistance strategy, and the national debt strategy. In order to effectively manage external
financial resources, the Government installed the Aid Management Platform (AMP) in
MDAs, aimed at increased transparency and accountability of external financial inflows. The
frameworks and tools for resource allocation include: the budget guidelines, medium-term
expenditure framework (MTEF), the strategic budget allocation system (SBAS), and the local
government planning and reporting database (Plan_Rep). The audit reports and the integrated
financial management system (IFMS) are tools for budget execution. The tools for allocating
resources were further upgraded in 2009, including enhancing the capacities in the areas of
planning, budgeting, monitoring, evaluation and performance reporting. Under the budget
management component, the Government reviewed GFS 1986 to comply with GFS 2001 in
costing activities. The annual accounts are now being prepared using the International Public
Sector Accounting Standards (IPSAS) format, which facilitates improved expenditure
tracking and monitoring. In addition, the Government has begun making some payments
through Tanzania Inter-bank Settlement System (TISS), effectively from July 2010, and this
is partly expected to address the problem of intra-year expenditure float. These tools together
continue to guide both resource mobilization and expenditure in 2009/10 while ensuring that
the conditions for a favorable environment for financing MKUKUTA implementation are met
in terms of macro-micro economic factors, policy environment, governance, political stability
and peace, as well as international and regional cooperation.

5.3. Resource Mobilisation



                                              76
MKUKUTA financing has continued to be the responsibility of the Government, private
sector, NGOs, CSOs and development partners, and the communities. However, besides the
contribution of development partners, it has been rather difficult to ascertain the actual
amount spent by the private sector, NGOs and CSO to implement MKUKUTA. This is
because most of the non-state actors’ financing is not easily captured in the Government
budgeting framework. Nevertheless, the Government acknowledges their contribution in
implementing MKUKUTA.

MKUKUTA financing strategy places emphasis on domestic resource mobilization. This
included tax and non tax revenue as well as domestic borrowing. However, given the
narrowness of the domestic tax base, to raise adequate finances required for MKUKUTA
implementation, and the limitations attached to domestic borrowing (e.g to avoid crowding
out private investment), the government also sought for the support and contribution of non-
state actors to finance MKUKUTA activities. One such strategy is the PPP framework, which
is a co-financing tool adopted by the government in 2009, with the objective of encouraging
the private sector to support and finance MKUKUTA initiatives. The growing importance of
PPPs can be better appreciated in the context of its potential to address constraints of
financing, management and maintenance of public sector projects and delivery of public
services as articulated in MKUKUTA. The Government also opted for foreign assistance in
the form of grants and concessional borrowing with the long term objective of reducing aid
dependency.

5.3.1 Domestic resource mobilisation
The fiscal performance during 2009/2010 was characterized by a shortfall in revenue
collection against the target. However, in absolute terms, total domestic revenue collected
increased by 8.6 percent from TZS. 4,293.074 billion in 2008/09, to TZS 4,661.5 billion.
However, this was equivalent to 91.5 percent of the targeted TZS 5,096.0 billion for 2009/10.

Revenue collection per month has more than doubled from an average of TZS. 177.1 billion
per month in 2005/06 to TZS 388.5 billion in 2009/10. Moreover, the Government revenue, as
a share of GDP, has been growing at an annual average of 15 percent for the past five years
since the commencement of MKUKUTA. As a result, it maintained consistent upward trend
from 12.4 percent of GDP in 2005/06 to 16.2 percent in 2008/09. However, it slowed down a
bit in 2009/10 to 15.2 mainly due to the impact of the global economic and fiancial crisis
(GEFC).

On average, taxes have been accounting for around 92 percent of total domestic revenue for
the period 2004/05 to 2009/10. Taxes on imports accounted for around 37 per cent and taxes
on income 27 per cent of total domestic revenue. The consumption of locally produced goods
and services contributes around 20 percent to the total domestic revenue. The reliance of the
budget on taxes on international trade makes the Government revenue vulnerable to external
shocks.

The reforms undertaken in the international trade sector and Tanzania’s participation in
regional economic groupings, such as SADC and EAC, which entails intra-regional tax
concessions, imply that revenue from international trade taxes will decline. Thus, a prudent
strategy would have to be worked out to address that impending challenge of moving away
from reliance on taxes on international trade to taxes on income and domestic consumption.

5.3.2 External resources mobilization



                                             77
As regards to foreign assistance, performance has been satisfactory in absolute terms. The
volume of aid has doubled from TZS 591,711 million in the first year of MKUKUTA
implementation (2005/06) to TZS 1,214,665 million in 2009/10. The external resources have
been funded around 40 percent of the national budget, in 2005/06 but this share has continued
to decline since then. However, approximately 80 percent of the development budget has been
foreign financed.

The Government prefers the General Budget support (GBS) among other forms of external
financing modalities. The GBS contributions in 2009/10 increased by 29.1 percent to Tsh
1214.7 billion from TZS. 940.6 billion received in 2008/09. It is further noted that the actual
GBS received were 15.8 and 1.7 percent higher than the budget estimates for 2008/09 and
2009/10, respectively. This modality has increased the level of discretionary resources
available to the Government for MKUKUTA implementation. Table 5.1 presents the trend in
GBS resources. It needs to be noted that where actual disbursement surpassed the estimate, it
is mainly due to late disbursement of the previous year, exchange rate depreciation, and new
borrowing to meet the emergency needs such the crisis mitigation package in 2009/10. The
Government, for instance, received supplementary budget from the World Bank totaling to
USD 163 million in 2009/10 for the rescue plan purpose.


  Table 5.1: General Budget Support (GBS) Million TZS
                      2005/06                 2006/07                 2007/08                   2008/09                      2009/10

               BUDGET      ACTUAL       BUDGET     ACTUAL       BUDGET     ACTUAL        BUDGET      ACTUAL        BUDGET         ACTUAL
  Budget
  Support
  Grant         345,475     335,126      471,025    502,913      610,181    601,324       577,591   608,724        825,445       629,540


  Budget
  Support
  Loan          270,689     256,585      333,529    287,422      271,139    362,073       234,521     331,923      368,464             585,125


  Total
  Budget
  Support       616,164     591,711      804,554    790,334      881,320    963,397       812,113   940,646         1,193,909     1,214,665
  % of
  theBudget                     96.0%                   98.2%                   109.3%                    115.8%                        101.7%
 Source: MOFEA

5.4: Resource Allocation
Since the commencement of MKUKUTA implementation in 2005/06, there have been
substantial efforts taken by the Government and other stakeholders on resources allocation.
The share of the Government budget financing MKUKUTA has been increasing every year
from 54.1 percent of the total budget in 2005/06 to 71.2 percent in 2009/10 (Table 5.2). Over
the period, the Government has sought to reduce recurrent expenditure in the areas that will
not jeopardize efficiency in service delivery, while sustainably scaling up resources geared
towards capital formation. Thus, emphasis has been placed on investment in infrastructure as
key for the future growth of the economy.

As is evident in Table 5.2, wages and transfers to LGAs, which in the first two years of
implementation were excluded, are now included as part of MKUKUTA budget. This
inclusion is based on the fact that these two budget components are essential for public



                                                           78
service delivery and the attainment of MKUKUTA strategic objectives and goals. Prior to the
inclusion, the allocation to MKUKUTA during the first two years averaged around 55 percent

The share of cluster II budget increased compared to that of cluster I share between 2007/08
and 2009/10 budgets. However, cluster I has also seen its share of budget allocations
increasing in the last three years from 23.1 percent of the total budget in 2007/08 to 27.9
percent in 2009/10. The larger share of cluster II increase is accounted for by transfers to
LGAs which is for public service delivery in social services like education, health, and water
(75 percent of transfers to LGAs finance education, health and water expenditures). Also, 50
percent of the share of MDAs’ wages falls under cluster II. The share of Cluster III budget
has remained roughly stable at around 11 percent.

In 2009/10, nearly 2 percent of the total budget (TZS 1.7 trillion) was spent as response to
effects of the global financial crisis to address interventions such as compensation of losses by
agriculture traders, rescheduling of debts owed by traders to commercial banks and allocation
to SGR for food security. This fund was treated as non MKUKUTA, although it was also
allocated to MKUKUTA activities such as food security.

Table 5.2: MKUKUTA Allocations (Incl. LGA transfers)2




Source: Abridged from Budget Digest in the respective years _ MOFEA

Further analysis of the budget frame for 2009/10 indicates that, in terms of sector allocations,
the following were observed:

Energy: The government allocated around 5 percent of the total budget to the energy sector
during the fiscal years 2008/09 and 2009/10. This allocation is geared towards financing
generation, transmission and distribution of energy in the country.

Health: Overall the health sector share of total budget declined slightly in 2009/10, reaching
8.5 percent of the total budget, compared to 10.5 percent in previous two years. The decline
is largely driven by the decline in foreign funding to the sector, especially development
budget. Despite the decline, health sector remained third among the sectors that absorb the
largest share of Government budget. This confirms the Government's continued commitment
to prioritize the sector.

Education: The education sector continues to remain a high priority sector, with its budget
share at 18.5 percent of the total budget in 2009/10, slightly lower than 2008/09 when the
share was 19.4 percent. The allocation to education sector as percentage of GDP has

2
    Figures for 2005/06 and 2006/07 exclude transfers to LGA since they were treated separately


                                                        79
continued to rise in 2009/10, reaching 5.6 percent from 5.1 percent (2007/08) and 5.3 percent
(2008/09).

Road: The budget allocation to the road sector in 2009/10 increased further to 13.7 percent of
the total discretionary spending in 2009/10, a 0.3 percentage point increase compared to
2008/09. In 2009/10, the sector budget accounted for 5.6 percent of total recurrent
expenditure and 25.5 percent of the development expenditure. There was also sustained
increase in local funding of the road development budget, which is a reflection of
Government's commitment to improve the quality of roads in order to expand accessibility,
strengthen economic growth and reduce poverty.

5.5. Budget Execution.
With regard to expenditure performance, total expenditure for 2009/10 amounted to TZS
8,173.7 billion compared to TZS 6,811.8 billion in 2008/09. This is an increase to 26.7
percent of GDP, compared to 25.7 percent in 2008/09. The ratio of total expenditure to GDP
increased consistently during MKUKUTA implementation from 23.4 percent in 2005/06, to
26.7 in 2009/10.

Development expenditure in 2009/10 was 8.0 percent below budget estimates mainly due to
low inflow of foreign funds. Development spending sought to significantly remove
infrastructural bottlenecks, especially through improving supportive transport and
communication infrastructure (roads, railway, ports/harbors and telecommunication);
irrigational infrastructure; and reliable and affordable power supply, consistent with
MKUKUTA priorities. The development expenditure as percent of GDP, increased from 7.7
percent when MKUKUTA implementation started in 2005/06 to 8.5 percent towards the end
MKUKUTA implementation in 2009/10.            Increasing infrastructure investment in a
sustainable manner requires not only mobilizing more resources, but also improving
expenditure management to enhance efficiency.

Actual recurrent expenditure in 2009/10 was 6 percent below the budget estimate of TZS
5,205.2 billion. The allocations to wages and salaries have been increasing consistently for the
entire phase one of MKUKUTA implementation. The ratio has increased from 3.9 percent of
GDP in 2005/06 to 5.6 percent in 2009/10. Table 5.3 shows the trend of domestic revenue
and expenditure.




                                              80
       Table 5.3. Government Budgetary Operations
                                      2005/06      2006/07          2007/08         2008/09        2009/10
                                                                Actual in billion Tsh
      Total Revenue                                                    3,634.6        4,293.1          4,661.5
                                        2,097.6       2,739.0
      Tax Revenue                        1,919.2
                                                      2,529.4          3,359.3        4,043.7          4,427.8


      Total Expenditure                 3,866.4       4,155.4                         6,811.8          8,173.7
                                                                      5,209.0
      Recurrent Expenditure             2,555.6       2,818.2          3,398.0        4,681.5          5,562.4

      Development Expenditure            1,310.7      1,337.2          1,811.0        2,130.4          2,611.3

                                                                   Ratio to GDP
      Total Revenue                   12.4         14.1             15.9           16.2            15.2
      Tax Revenue                     11.3         13.0             14.7           15.3            14.5
      Total Expenditure               23.4         23.0             22.8           25.7            26.7
      Recurrent Expenditure           15.7         16.1             14.9           17.7            18.2
      Development Expenditure         7.7          6.9              7.9            8.0             8.5


       Source: FP August 2010_MOFEA

As regards to release of funds for the implementation of MKUKUTA interventions, the
challenge has been timely availability of the resources as the government is using the cash
budgeting system. Under this system, MOFEA has been releasing funds to MDAs on monthly
basis, based on MDAs’ cash flow plan and funds availability. Generally, the first quarter has
been affected critically owing to the parliamentary approval process of the budget which
delayed the release of funds. On the contrary, the fourth quarter has been receiving a big
chunk of the resources, oftentimes resulting in low budgetary execution. Table 5.4 shows
budget execution in selected sectors.

Table 5.4: Budget Execution in Selected Sectors (2009/10)
Sector         Released Funds (Billion TZS)         Percentage of Approved Budget

                          Recurrent       Dev.         Total         Recurrent                  Dev.             Total
Agriculture                  184.0        74.8         258.8             96.4                   80.7              91.3
Education                    421.2        80.5         501.8             98.3                   62.2              90.0
Health                       218.4       182.6         401.1             95.1                   61.8              76.3
Infrastructure               275.8       635.4         911.8             96.5                   85.6              88.7
Water                       18.314     160.891       179.084             93.1                   73.9              75.5
Energy                        57.9        37.9          95.8                99                  35.8              58.2

Source: Abridged from the respective MDAs’ Performance Reports

Agriculture: The inconsistent disbursement of funds considerably affected implementation of
the planned targets. In 2009/10, the approved budget for MAFC was TZS 283.6 billion, which
also include Tsh 55 billion under the rescue package against the global economic recession.
As of June, 2010, TZS 258.8 was disbursed to MAFC, equivalent to 91.3 percent of the
approved budget. Out of the disbursed development funds, TZS. 2.0 billion were local funds
equivalent to 80.0 percent of the local approved development budget and TZS. 72.8 billion
was foreign, equivalent to 80.8 percent of the approved foreign development budget. The


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amount spent was TZS 252.0, equivalent to 97.2 percent of the released budget, which raises
the issue of inadequate absorptive capacity.

The release of funds is also skewed toward recurrent expenditure. For instance, while funds
disbursed for the recurrent expenditure to MAFC have been averaging over 90 percent of the
approved budget between 2005/06 and 2007/08, development budget has been receiving an
annual average of less than 70 percent. This is because a big chunk of development budget is
funded by DPs who impose conditions of accessing the funds, including the issue of
procurement procedures, counterpart funding, tied loans, among others.

Energy: In 2009/10, energy budget allocation was TZS 164.5 billion, out of which TZS 58.5
was recurrent and development budget was TZS 106.0 billion (TZS 715.1 million foreign).
Out of the total development budget, the share of Government funding was TZS.45.2 billion
or 42.6 percent and for Development Partners is 57.4 percent or TZS.60.8 billion. As of June
2010, the disbursed resources for development expenditure were TZS. 37.9 billion, out of
which 98.1 percent were local. Concerted efforts need to be taken to improve the overall
allocation of funds to the energy sector and find ways to address the serious problem of delays
in funds disbursements while reducing external dependency.

Infrastructure: The approved recurrent budget for the Ministry of Infrastructure
Development for 2009/10 was TZS. 285.8 billion. Up to June 30th, 2010, the released funds
amounted to TZS. 275.8 billion, equivalent to 96.5 percent of the approved budget. The
approved development budget was Tsh 742.0 billion, of which TZS. 512.4 billion were local
funds and TZS. 229.6 billion were foreign funds. The total development funds released as of
the end of the fiscal year was 85.6 percent of the approved development budget. The foreign
funds released were TZS. 123.1 billion, equivalent to 53.6 of the approved foreign
development funds. There was 100 percent release of local development funds.

Education: Foreign development funds released were TZS. 30.2 billion, equivalent to 47.3
percent of the approved foreign budget while local funds were TZS. 50.2 billion, equivalent to
76.8 percent of the approved budget for 2009/10 (as seen in Table 5.4).

Health: Actual disbursement up to end of June 2010 was TZS. 401.1 billion while actual
expenditure was TZS. 391.5 billion (97, 6 percent). In other words, despite the fact that the
sector did not receive about a quarter of the approved budget, 2.4 percent of the funds
received were not spent up to the end of the FY 2009/10. This is mainly due to procurement
rules/procedures, late disbursement and inadequate capacity.

5.6. Budget Reporting and Transparency
Progress has been made in strengthening public financial management and transparency. One
of the tools used is the Integrated Financial Management System (IFMS). Today, the IFMS
has been installed in all MDAs and in 21 Sub-Treasuries, as well as in 87 LGAs. Work is
underway to extend the IFMS to the remaining Councils. The remaining LGAs (46) continue
to use either a manual system or some form of electronic spreadsheet to record financial
transactions. None of these LGAs has introduced an alternative accounting software.

The IFMS is used for recording, managing and controlling expenditures. It prevents
accounting officers from spending more than the budgeted amount. In so doing, it eliminates
over-expenditure, consistent with the cash budgeting system. Furthermore, implementation of
the IFMS, as a single system across the Government, provides critical controls over



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commitments and expenditures, consolidation of the national accounts with accurate
reporting, rapid integration of additional government offices and rapid skills transfer.

The IFMS has facilitated the introduction of standardized coding for resource and expenditure
items, which allows for accurate and instant expenditure tracking. It can produce
automatically expenditure reports. The introduction of the IFMS has enabled the Government
to greatly enhance transparency, control, timely release and accountability of public finances,
including external resources that are captured in the Exchequer and the national accounting
system. This in turn, has enabled the Government to more easily and effectively monitor and
evaluate performance of public resources in supporting national development and poverty
reduction goals.

Challenges, however, remain in accounting and financial reporting, in particular at the local
government level. To address them, the Government has established a project database which
will be linked to the IFMS to facilitate monitoring of the flow of funds to projects through
expenditure tracking. The Government is also implementing a Public Financial Management
Reform Program, whose objective is to assist in managing effectively external financial
resources, for increased transparency and accountability for external financial inflows.

Regarding transparency on resource use, MOFEA disseminates in the newspaper and
MOFEA website (www.mof.go.tz) resource disbursed to MDA/LGA on monthly basis. The
LGA, on the other hand, normally posts on the notice board resources received and
expenditure breakdowns.

Recently, there have been increasing need and demand from constituencies for the
Government to more effectively communicate with stakeholders and explain the background
of the budget, its guiding principles, the macroeconomic underpinnings, strategic objectives
and medium term targets in a simple, integrated and compelling manner. The Government has
responded to this challenge in a number of ways. First, the Budget Guidelines have been
streamlined and enhanced to more clearly reflect strategic objectives and choices, and the
implications for key sectors in terms of medium term resource allocation. Second, a summary
budget frame document is published (Budget Digest) and submitted to the parliament
accompanying other budget documents on the budget speech day. The budget digest explains
in a clear and concise fashion the main macroeconomic assumptions and fiscal underpinnings
of the annual budget and the medium term expenditure framework.

Third, the Government has been developing the Budget Background and Medium Term
Framework (BBMTF), a document which constitutes a milestone in the Government’s
sustained effort to address stakeholders’ demand for enhanced communication and
transparency of the budgeting process. The document is the third edition of an annual report
on the budget and the MTEF, designed to serve as a “narrative cover” for the traditional
budget books. The BBMTF is an integrated document that knits together the reviews of the
macroeconomic framework, the achievements and strategic challenges in the implementation
of MKUKUTA, and the analysis of budget execution, expenditure trends and medium term
focus, with the strategic priorities of MKUKUTA as a backdrop.

5.7. Challenges, Lessons Learned and the Way Forward
Treatment of non-MKUKUTA financing: Initially, transfers to LGA were considered as
non MKUKUTA spending, although in the final analysis, such transfers are reassigned in
LGA budget by strategic destination, such as education, health, water, roads and agriculture.



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Wages and salaries are also treated the same, although they are clearly essential for public
service delivery and therefore, key to attainment of related MKUKUTA sector strategic
objectives and goals. Omission of these two items led to understating the magnitude of
resources allocated for MKUKUTA clusters.

Insufficient resources: The resources to fund MKUKUTA activities have often fallen short
of the approved allocations. This necessitated reallocation of resources and in some instances
phasing out some of the activities, thus disarraying their levels of priority.

Underreporting: The underreporting of funds disbursed to implementing agencies, especially
where direct project funding modality is used, has been a major cause of poor budget
execution and accountability. During the planning and budgeting phase, most of donor-
funded infrastructure projects are included in the budgets, but the spending data is not
captured in the IFMS because payments are made directly to implementers/contractors. The
Government has called on the DPs to channel their assistance in the Government’s preferred
funding modality which is the GBS. This is in line with the spirit of the Joint Assistance
Strategy for Tanzania (JAST) to which all DPs have subscribed and are signatory.

Non State Actors participation: It has been rather difficult to ascertain the actual amount
spent by these bodies to implement MKUKUTA. Therefore, measures are required to
facilitate a coordinated approach for their contribution, especially now that a PPP policy is in
place.

Delay in costing: The costing of MKUKUTA was delayed and hence the three-year rolling
MTEF was used as a proxy. This did not give a comprehensive picture of what it would take
to fully implement MKUKUTA and thus establish the resource gap.

Unforeseen events: Tanzania was not spared by the adverse effects of global financial and
economic crisis, which affected negatively the key sectors of the economy especially trade
flows, capital inflows, tourism and agricultural exports. Furthermore, the droughts in 2006/07
and in 2008/09 affected such sectors as agriculture, energy and manufacturing, and thus
necessitated the reallocation of resources to meet the emergency needs.

Reporting system: Though implementing agencies have been reporting on budget execution,
the challenge has been that of reporting in accordance to MKUKUTA clusters, as it was the
case during the budget preparation with SBAS. It is somehow difficult to ascertain the
amount that the implementing agency spent on a specific MKUKUTA goal, although this can
be clearly seen during the budget preparation. Much as there is SBAS for resource allocation,
there is need to develop a software package that can link execution in the same manner (at
least at goal level) as opposed to the current practice of reporting at global level.

IFMS coverage: Although there are plans to finalize the rollout of IFMS to the remaining
LGAs, the high cost, the limited success of already connected MDA/LGA, and the limited
technical capacity within the LGAs have delayed this initiative.

Domestic financing: During the MKUKUTA implementation, the most pressing issue was
the ability to raise resources to finance MKUKUTA and the prioritisation of the activities in
all clusters of MKUKUTA, given the scarcity of the funds. The dependency on external
financing hampers the freedom of choice and the country becomes vulnerable to financial
shocks like the one gripping the world. Thus, the need to expand domestic sources of



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financing, such as broadening of the tax base is an urgent matter. Meanwhile, there is a need
to be self dependent on all financing, with donors playing only a supporting role. Tanzania
needs to look into long term, large scale financing options both within and outside Tanzania
to finance development. Options such as international sovereign bonds market, PPPs,
establishment of Development Financial Institution (DFI), remittances and FDI should be
used as key sources for financing growth and poverty reduction initiatives.

Leakage Control: Corruption, tax evasion, tax avoidance and weaknesses in Public Finance
Management, if curbed would be able to generate more resources for development. The
creation of conducive business environment and incentives to abide by the laws is one of the
policy options. Likewise, enhanced civic education to the citizenry on the importance of
paying tax is yet another option. Furthermore, prudent management of natural resources and
other endowments could contribute significantly in reducing the MKUKUTA financing gap.

Low absorptive capacity: In order for the country to benefit from the resources disbursed
from the treasury or from DPs, it is important that radical measures are taken to significantly
improve the absorptive capacity. There have been cases of unused funds in some MDAs
mainly associated with bureaucratic procedures, untimely/poor planning and lack of
collaborative arrangement.

Most of these issues were noted in other MMS outputs. The Government, in collaboration
with other stakeholders, will continue to address these issues. As such, MKUKUTA II has
been designed to ensure that most of the lessons learned and the challenges faced are
effectively addressed in the next five years.

                                 CHAPTER SIX
                          MONITORING AND EVALUATION

6.1. Background and Introduction
MKUKUTA Monitoring system (MMS), which is managed under the MKUKUTA
Monitoring Master Plan (MMMP), was established in 2005. The objective of MMS is to
track progress of the MKUKUTA implementation in order to foster enhanced commitment
and accountability for the growth and poverty reduction efforts in the country. MMS was also
designed to spur an integrated approach to monitoring and evaluation. MMS is anchored on
the following principles:
  i.    National ownership and Government leadership;
  ii. Broad stakeholders participation;
  iii. Demand driven approaches to technical assistance and information generation
  iv. Harmonization and alignment
  v.    Greater emphasis no results orientation in national policy process
  vi. Mainstreaming of cross-cutting issues and;
  vii. Broadly covering growth, governance and social wellbeing

The implementation of the MKUKUTA monitoring agenda is done through an elaborate
institutional arrangement comprising three Technical Working Groups (TWGs). These are:
  i.     The Surveys and Routine Data TWG, which is subdivided into Census and Survey and
         Routine Data sub-groups. The group is responsible for ensuring availability of quality
         and timely of both survey and routine data. It also ensures that data are collected
         under credible and harmonized statistical systems across government institutions.



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 ii.    The Research and Analysis TWG, which coordinates the research and analytical work
        on MKUKUTA implementation. It produces various analytical outputs including the
        Poverty and Human Development Report (PHDR), Policy briefs, Views of the People
        Reports, etc.
 iii.   The Communication TWG, which ensures seamless flow of information on the
        performance of the set targets to all stakeholders.

There is also the Technical Committee (TC), which is under the support of the Secretariat,
coordinates and provides an oversight to the overall functioning of the working groups,
including resources mobilization, drawing the data collection programme, setting of the
research and analytical agenda and the feedback mechanism. The TC is a strategic body
linking MMS with the mainstream government decision making bodies like the IMTC. The
three technical working groups and the MKUKUTA Secretariat are the fulcrum for the
implementation of the MKUKUTA Monitoring Master Plan (MMMP-2006). Thus, the
assessment of performance of MKUKUTA Monitoring System is based on the annual work
plan of the three technical working groups and the MKUKUTA Secretariat.

MKUKUTA Annual Implementation Report (MAIR 2009/10) marks the end of the cycle of
the MKUKUTA Monitoring System. This progress report provides, therefore, the highlight
on challenges, lessons learned, and keys issues for further reflection in the design of the
MKUKUTA II Monitoring System.

6.2. Overall Achievements of the MKUKUTA Monitoring System
The study on MKUKUTA M&E done under the MKUKUTA review process, revealed the
following issues:

i) Coordination of data production: MMS has succeeded in addressing the increasing
demand for robust, quality and timely data on key indicators. Under MMS, the institutional
set up brought together data producers and data users, such that, smooth coordination was
realized at the two levels. As a result, data collected were relevant to the needs of users. The
effective coordination between data producers, through the technical working groups, has
reduced the degree of overlap and duplication in data production systems. It has also initiated
work on standards and norms.

ii) Participation of stakeholders: The MMS institutional set up was inclusive and multi-
stakeholder in that the technical working groups drew their members from various
stakeholders such that, all institutions and groups with requisite relevant mandates or relevant
expertise were included. Member of the technical groups were drawn from the Government,
academic and research institutions, Development Partners, Civil Society Organizations, and
the private sector. The inclusiveness and broad participation fostered ownership of findings
emanating from the system and strengthened partnerships among the stakeholders. The
Poverty Policy Weeks, for instance, brought together a wide range of stakeholders to review
progress of MKUKUTA implementation and deliberate on the findings of the MMS outputs.

iii) Utilization of outputs generated by the MMS: The effectiveness of any M&E system is
gauged against the extent to which outputs it produces are used to inform decision making
processes at all levels of governance. The establishment of MMS was triggered by the
interest to improve MKUKUTA implementation, by producing analytical outputs which
present changes of growth and poverty reduction indicators, and also account for resources
used. As a result, Tanzania has witnessed a productive and directional policy debates based


                                              86
on the outputs produced by the MMS. Some examples of the outputs include: the spatial
analysis of poverty, the analysis of drivers of growth, and HBS 2007 results which showed
little progress in terms of income poverty. The outcomes of these discussions have
subsequently informed the design of the recently endorsed strategy, MKUKUTA II.

iv) Harmonization and alignment of national processes and M&E systems and reporting:
The MMS has contributed positively towards reforming planning; budgeting, monitoring and
evaluation. It has also contributed to informing processes that subsequently determine the
direction the Government will take in order to meet its development agenda. Therefore, the
MMS has contributed significantly to the harmonization of the various government processes.
The MKUKUTA Secretariat in particular, was instrumental in spearheading the
harmonization effort which led to the realization of a harmonized planning and budgeting
framework.

Under the framework, the Government prepared the Planning, Budgeting and Reporting and
Evaluation Manual. The manual provides a common approach to reporting, which serves
better the needs of MKUKUTA and other cross-sectoral initiative. The manual also facilitates
the production of the MAIR. However, more work is required to fully exploit the
opportunities created by this harmonized planning approach. More work, therefore, is
required with a view to strengthen it and ensure that it is also implemented effectively by the
MDAs and LGAs.

v) Enhanced results based management concept: The MMS has laid a good foundation for
developing a robust Results Based Management Framework. It has provided common sense
of purpose and intent in managing growth and anti-poverty interventions. This is a good
example that needs to be emulated and further improved in order to enhance Results Based
Management concept within the Government machinery.

6.3. Performance of MMS Working Groups and MKUKUTA Secretariat
The following sections now present the performance review of the three technical working
groups and the MKUKUTA Secretariat based on approved annual plans.

6.3.1. MKUKUTA Secretariat
In 2009/10, the MKUKUTA Secretariat continued to perform its core functions of
coordination, in terms of supporting the operations of the Technical Working Groups and the
Technical Committee. The tasks performed: included preparation and consolidation of work
plans and the reports (quarterly, semi-annual and Annual) and facilitation of flow of funds.
Furthermore, the Secretariat devoted much effort on two major tasks which are: designing the
new strategy and undertaking an assessment of the effectiveness of MMS. The Secretariat
also prepared the Concept Note on the design of the successor strategy (MKUKUTA II), the
review and consultation guidelines, commissioned 26 studies, earmarked to feed into the
MKUKUTA review process, and managed MKUKUTA II drafting process. The MKUKUTA
II drafting was finalized in June 2010 and the Government has already approved it. On MMS
II, the draft report of the study that assessed the effectiveness of the MKUKUTA Monitoring
and Evaluation systems was finalized.

The MKUKUTA Secretariat also coordinated the production of MKUKUTA Annual
Implementation Report (MAIR) for 2008/09 by carrying out various facilitative activities
ranging from developing outline, data and information gathering from sectors, to the actual
drafting of the report.



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6.3.2. Communication Technical Working Group
The Communication Technical Working Group (CTWG) implemented its plans in line with
the terms of reference as enshrined in the MMMP. During the period under review the group
produced three major outputs which include, informing the public on MKUKUTA review
process. The dissemination was done through recording and broadcasting various TV and
Radio programs. The TV and Radio programs informed the general public about the review of
MKUKUTA and invited the general public to participate by airing their views/comments on
MKUKUTA implementation and on their expectation with regard to MKUKUTA II.

The other major task was to organize the Annual National Policy Dialogue (MKUKUTA/
PER/GBS Annual Consultative Meeting, 2009), which was held between 19th and 24th
November 2009. The Secretariat of the General Budget Support (GBS), Public Expenditure
Review (PER) and MKUKUTA Secretariat jointly coordinated the National Policy Dialogue
Week. Representatives from a wide range of stakeholders participated in the event. Various
issues with respect to MKUKUTA implementation, the status of implementation of various
reforms, and public expenditure issues were discussed. The report on the proceedings of the
event was compiled and produced.

The third major output of this group was the production of Mapambano Magazine. The
magazine was designed with the objective of promoting and disseminating MKUKUTA’s
vision, programs and outcomes. It was also meant to sensitize the general public, educating,
and mobilizing and rallying all stakeholders to support poverty reduction and economic
growth efforts being undertaken. A total of 5,000 copies of the magazine(English Version)
were printed and distributed to various stakeholders which includes: Government
departments, ministries, national and international agencies, media institutions, private and
public libraries, universities, embassies, private organizations, individuals and NGOs.

6.3.3. Research and Analysis Technical Working Group (R&AWG)
During the period under review, the Research and Analysis Technical Working Group
implemented all its planned activities except a few due to various factors. A discussion on the
implemented activities and those which were not is presented below:

Setting the Research agenda
R&AWG planned to spearhead the undertaking of three studies for MKUKUTA review.
These are (i) Drivers of growth and implications on poverty reduction in Tanzania, (ii)
Growth and distributional issues (pro-poor growth) in Tanzania and (iii) Overall assessment
of the achievement of MKUKUTA. The first two studies were successfully undertaken
during the year2009/10. However, the third study was not conducted as planned because after
studying thee contents of PHDR 2009, it was realized that no significant knowledge gaps
existed to warrant commissioning a separate study. The final reports of the two completed
studies were submitted to R&AWG Secretariat and to MKUKUTA Secretariat in March
2010. Given the importance of the two studies, the R&AWG will publish them to facilitate
wider dissemination.

Special thematic meetings
In 2009/10, the RAWG conducted two (2) Special Thematic Meetings. The two meetings
discussed the following issues:-
      i. The Terms of Reference for the MKUKUTA review study on "drivers of growth".
           The policy discussion round-table drew experts from R&AWG members,



                                              88
           academics from Department of Economics (UDSM), the World Bank, TASAF,
           and UNDP.
     ii.   The implementation of Convergence Research Project whose primary objective is
           to look into the possibilities for accelerating progress towards the achievement of
           MDG1 by maximizing the impact of social services expenditures on agricultural
           labor productivity and incomes.

Organizing Open sessions
In 2009/10, the R&AWG conducted three open sessions. The three sessions were as follows:-
       i. Presentation made on a topic titled “Down but not yet out; the impact of Malaria
           control in Tanzania”
      ii. Presentation made on electricity supply interruptions and implications for
           Tanzania’s growth agenda: the case of large manufacturing enterprises.
     iii. Presentation made on a paper titled “An investigation on whether long term
           consequences of parental loss on orphans depend on age at which children have
           lost parent”.

Editing and Printing of Tanzania Gender Indicators Booklet
The Tanzania gender indicators booklet reviews progress towards the targets for gender based
indicators set by MKUKUTA. The booklet contains up to date statistics and information from
national surveys such as the TDHS, HBS, ILFS as well as routine administrative data from
MDAs. The production of the booklet was done jointly by MOFEA, and the Gender
Mainstreaming Working Group – Macro Policies under the auspices of REPOA. During the
period under review, the R&AWG undertook the function of editing & printing 7000 copies
of the gender indicators booklet as planned. The group also translated the booklet into
Kiswahili language and printed another 7000 copies of the booklet in Kiswahili language.

Maintenance of the Resource Centre
The resource center is expected to make poverty related and other development publications
available and accessible to researchers, policy makers, academicians and the general public.
The specific activities of the resource center, which the R&AWG supported in 2009/10,
included paying part of the costs related to the internet, communications and rent. In addition,
the purchasing of publications for the resource centre was also accomplished during the
second quarter of the fiscal year.

6.3.4. Survey and Routine Data Group
In 2009/10, the Census and Survey Technical Working Group (CSTWG) had planned to carry
out printing, dissemination activities, and evaluation of the 2007 Household Budget Survey
(HBS), data collection, cleaning, analysis, report writing for the first wave and preparatory
activities for the second wave of the National Panel Survey (NPS). Likewise, CSTWG
planned to start preparations for new surveys, including the 2009/10 Tanzania Demographic
and Health Survey (TDHS) and 2009 Integrated Business Survey (IBS). During the reference
period, the summary reports of HBS 2007 were prepared and draft evaluation report was
completed. On the NPS, data collection for the second cycle of the first year was completed
in October, 2009. Also, data cleaning and analysis were carried out, and a draft report for the
firs year was finalized.

In 2009/10, the major activities undertaken with regard to the agriculture survey 2009 include:
completion of manual editing and coding of the completed questionnaires, scanning of the
filled questionnaires, and production of basic preliminary tables and editing. The



                                              89
enumeration of small holders, large scale farms and community interviews were also
competed. As for the Tanzania Demographic and Health Survey (TDHS 2009/10),
development of the survey instruments was completed, and the pilot/pre-test was conducted
from July to August 2009. The survey instruments (questionnaires/manuals etc) were
improved and finalized based on the pretest results. The training of the data collectors took
place in November/December 2009. The data collection started in December 2009 and
finalized in May 2010. The data processing was completed in June 2010 and preliminary
results have been produced.

6.4. Challenges and Lessons Learned
Notwithstanding the good performance recorded, there are many challenges to be addressed.
Some of the challenges are elaborated below:

6.4.1. Routine data:
There have been fewer achievements in the coordination of routine data than for survey data.
Thus, more attention should be directed to strengthening the capacities at this level. Some of
the remaining challenges relate to unreliability of data and the existence of parallel systems of
data collection. This leads to duplication of efforts. The TSMP and the Planning, Budgeting
and Reporting Guidelines do provide an opportunity for reference in this respect as they
provide a common mechanism for reporting.

6.4.2 Indicator Set:
Like that of the PMS, the 80 indicator set facilitated easy tracking of progress on the inputs
and activities, as well as the high-level outcomes intended to be emanate from cluster
strategies. The challenge is that of tracking progress on how inputs and activities are
transformed into achieving the ultimate outcomes that are envisaged by the strategies. The
indicators for governance remained a challenge throughout the implementation of
MKUKUTA.

6.4.3. Funding for MMS:
The implementation of MKUKUTA Monitoring Master Plan largely depended on donor
support through the fooled fund mechanism. The pooled fund arrangement intended to create
the initial conditions for MMS funding issues to be gradually mainstreamed into a
government budget. This was done and the government contribution in support of the MMS
activities has been growing even though desired threshold did was not attained. This raises
the question of its sustainability.

The pooled fund mechanism added more layers of administration and accountability to the
extent that process of accessing resources became more complex, hence the delays in
disbursement of funds to the execution of activities.

6.4.4. M&E Capacity Development:
One of the interests of MMS was to see more capacities on M&E developed within
government machineries. Indeed, positive developments have been observed over the period.
A growing number of M&E units have been established, and throughout Government
machinery, M&E posts at both senior and junior levels have been established. Thus, M&E
concepts and functions are gradually being mainstreamed in the Government systems.
However, challenges remain on M&E capacity development. In particular, there are no entry
criteria and competency standards for M&E staff. There are not training programme at
undergraduate or graduate levels to prepare people for a career in M&E. The training on



                                               90
M&E is generally undertaken on an ad hoc and short term basis. M&E profession is yet to be
mainstreamed in the country's human development programs.

6.5. The way forward:
i) Coherent Indicator Framework: Gaps still exit in the current indicator framework,
particularly those for cluster III. Also, some of the indicators do not fully measure the
intended outcomes. The design of the next MMS should therefore consider developing an
indicator framework which is able to provide information on the transformation of inputs and
activities into outcomes. This will ultimately foster dialogue and policy thinking on economic
growth and poverty reduction, social wellbeing, and good governance.

ii) Utilization of outputs produced by the MKUKUTA M&E Systems: Since MMS has
enabled the production of data to a greater extent, it is high time that MMS starts to focus on
enhancing the capacity to use the data and the analysis generated. The revised MMS should
facilitate building the culture of evidence-based-decision making. This can be achieved
through the strengthening of the dialogue structure and the planning, budgeting and reporting
framework. Therefore, MDAs and LGAs should be encouraged to utilize MMS outputs to
inform dialogues and decision making processes. As noted earlier, in order to improve the
utilization of the outputs generated by the MMS, strengthening the incentives structures is a
critical consideration. However, achieving this would have to be driven by the following
elements:
        i. Increased accountability, demanded by the Parliament and local assemblies
       ii. Increased accountability demanded by the citizens or citizens’ groups, from the
            service providers (local authorities or central Government)
      iii. Increased demand for accountability by Government’s own oversight bodies, such
            as the National Audit Office, particularly on programme decisions and value for
            money.

iii) Institutional arrangements: there is need to rethink on the design of the institutional
framework in light of the achievements and opportunities offered by the new developments
around M&E in the Government machinery. Among the important developments to tap on
include: the Manual for Strategic Planning, Budgeting, Monitoring and Reporting, the new
dialogue structure and division of labor; the installation of M&E units in MDAs and LGAs;
and the expenditure tracking mechanisms.




                                              91
ANNEX I: STATUS OF MKUKUTA INDICATORS

                        Baseline                               Trends                                           Targets
    Indicators




                                                                                                    MKUKUTA
    Estimates         Year         2002   2003   2004   2005    2006    2007   2008   2009   2010     2010
                             Cluster I: Growth and Reduction of Poverty
                             Cluster-Wide Indicators




 GDP Growth per
   annum %            4.9          2000          6.9                                         6.0                 6-8%
                                          7.2           7.8     7.4     6.7    7.1    7.4
 GDP Growth of
Sectors per annum
       (%)
                                                                                             3.2
   Agriculture        3.4          2000   4.9    3.1    5.9     4.3     3.8    4.0    4.6                         10%


    Livestock         2.9          2000   2.8    2.2    4.1     4.4     4.2    4.3    2.6    2.3                  9%


  Manufacturing       4.8          2000   7.5    9.0    9.4     9.6     8.5    8.7    9.9    8.0                  15%

  Wholesale and
   Retail trade       6.5          2000   7.0    6.5    7.8     8.2     8.4    9.8    10.0   7.5


                                                                                                              3.0% increase
                                                                                                                in exports
                                                                                                              &value added
     Mining           13.9         2000   16.9   17.1   16.0    16.1    15.6   10.7   2.5    1.2               on minerals



 Increased Export
proportion of value
 added in Mining      0.5          2004                                        5%     9.5    10.8                 3%




 Gini Coefficient     0.35         2001    X      X      X          X    X     0.35    X      X                  To be
                                                                                                               Determined

                                                                                                               Rural: 24%
Head Count Ratio-     35.7         2001    X      X      X          X    X     33.6    X      X               Urban: 12.9%
  Basic Needs
   poverty line




                                                               92
                            Baseline                                  Trends                                                         Targets
    Indicators




                                                                                                                         MKUKUT
    Estimates             Year          2002     2003         2004   2005    2006        2007   2008    2009    2010      A 2010
                                       Goal 1: Ensuring Sound Economic Management

  Annual Rate of          5.2%           2001         4.5      4.4    4.2        4.3     7.3     7.0    10.3    12.1                    4%
    Inflation


     Central                              10.8   10.9 11.32 11.8         12.5 14.0 15.9         15.8    15.2                            16.4
  Government                            (01/02) (02/03 (03/04) (04/05) (05/06) (06/07 (07/08) (08/09) (09/10)
 Revenue as % of                                   )                              )
      GDP
                                                  13.4        13.1   13.1        14.2    14.5   17.5
Fiscal Deficit as %       2000/1        2001/2 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/1
      of GDP                                                                                      0


  -Before Grants           -4.6         2000/1    -5.6        -8.2   -11.2   -11.8 -13.8        12.0     X
                                                                                                                -11.5
                                                                                                                                     2008/2009
  -After Grants            -12                    -1.1        -1.7   -1.7        -4.5    6.6    -1.7     4.5    -6.9                    -3%

   External Debt
  Service as % of          17.3          2000     13.1         8.3   11.1        11.5            1.9             0.4               50% of GDP or
      Exports                                                                                                                           less
 Exports as % of           15            2000     16.5        21.0   23.1        23.7    23.6   23.1    22.0    21.97                  To be
     GDP                                                                                                                            determined
                                       Goal 2: Promoting Sustainable and Broad Based Growth
Proportion of working                                                                                                                  6.9% and
  age population not                                                                                                                    address
 currently employed         12.9        2001      X            X      X           X        X     X       X                               under
                                                                                                                                     employment
                                                                                                                                     in rural areas



 Domestic Credit to
 private sector as %        4.6         2000      6.1          7.7    8.9        10.3    12.5   13.8    18.41   16.99                Increase by
       of GDP                                                                                                                        1% of GDP
                                                                                                                                         p/a



                                                                                                                                        To be
 % increase in FDIs         25.6        2000     11.4         12.5    9.9        7.0     8.5     8.0     6.4    (14.5)               determined

Interest rate spread on
 lending and deposits      11.88        2003     10.2         10.7    8.4        7.9     6.9    15.25   16.05   14.38                   To be
   percentage points                                                                                                                 determined



                                   Baseline                                       Trends                                             Target
     Indicators


                                                                                                                          MKUKUT
      Estimate                  Year           2002         2003 2004 2005        2006     2007 2008 2009                 A
                                                                                                                            2010




                                                                            93
 % of rural population
who live within 2 kms
of all season passable       86.4          2006                                86.4     X         X        60                       To be
road proxy: percent of                                                                                                           determined
          rural
 communities/villages
   with access to all
season passable roads
 within 30 minutes of
   walking distance.
    % of trunk and
regional road network            51        2006   51   72    78       82   86    79    90      95         89
   in good and fair                                                 (June June (June (June (June, 09) (June 2010)
       condition                                                    2005) 2006) 2007) 2008)



                                                                                                                                  To be
       -Good                     16        2000   14   35    43       47    53    42    56                 66          56      determined
                                                                    (June (June (June (June              (June     (June 2010)
                                                                    2005) 2006) 2007) 2008)              2009)




                                                                                                                                  To be
        -Bad                     35        2000   49   28    22       18    14    21    10                 5           11      determined
                                                                    (June (June (June ((June             (June     (June 2010)
                                                                    2005) 2006) 2007) 2008)              2009)



                                       Goal 3: Improved Food Availability and Accessibility at Household level in
                                       Urban and Rural Areas
Food self sufficiency
     ratio(rate)            94          2001/02   88   103   102     112       106     104       105      102      112 (Prov.)       119

  Proportional of
districts reported to
have food shortages:                                                                                      46.9
 Proxy, number of           15          2001/02   15   13    62       41       41       25        40    (Prelim)                 17 Districts
districts reported to                                                                           (08/09)
have food shortages



     % change in
    production by
     smallholder         2 million       1987                                                                                    12 million
 households of key         tones                                     9.4       13.2    -2.6      1.9      0.2                      tones
 staple crop(maize,
  rice, sorghum in
 millions of tones)


   Proportional of         1.1          2000/01                    3.4 rural          Mainla      X        X                        To be
 households who eat                                                  only             nd: 1.1                                    determined
  no more than one                                                                    Rural:
    meal per day                                                                        1.2


                                      Goal 4 & 5: Reducing income Poverty of both men and women in rural and
                                      urban areas
 % of smallholders
   participating in
     contracting           0.9          2002/03   X    X     0.9      X         X       X         X                                 1.3%
 production and out
  grower schemes




                                                              94
     Indicators          Baseline                             Trends                                                   Target


                                                                                                            MKUKUT
      Estimate            Year        2002     2003 2004 2005       2006      2007    2008     200           A 2010
                                                                                                9
Total smallholder area
under irrigation as %
 of total cultivatable     2.7       2002/03    2.7    X     2.7        X      X       X       X     X                  13%
          land

% of smallholder who
accessed formal credit
   for agricultural        0.32      2002/03    3.1    X     1.6        X      X       X       X     X                  10%
      purposes




 % of smallholders
who have one or more      60%        1994/95     72    X      X         X      X      81.9     X     X                   To be
 income generating                                                                                                    determined
     activities

   % of households
whose main income is
   derived from the
harvesting, processing                                                                         X     X
  and marketing of
  natural resources
       products



% of household with
access to electricity
                                                                                                     X
                                    Goal 6: Provision of Reliable and Affordable Energy to Consumers


Number of customers      399,977     2000    427,970 485,66 501,82 537,823
    connected to                                       1      3
 national electricity                                                        573,823 24,456 56,383 59,547
  grid and off-grid



% increase in number
    of customers                               3.89   13.48 3.33    7.17      6.69     12       X    5.8
connected to national
 electricity grid and
       off-grid



                                                                                     Mainlan
 % of households in                                                                     d
rural and urban areas                                                                  4.2      X    X
   using alternative                                                                  Dar:
 sources of energy to                                                                 16.6
wood fuel (including                                                                  Other
  charcoal) as their                                                                 Urban
   main sources of                                                                     8.4
        energy                                                                        Rural
                                                                                       1.2


  Actual electricity
     generated as          36        2000      40      40     33        32     26     70.54
percentage of capacity




                                                                   95
     Indicators             Baseline                                Trends                                                            Target


                                                                                                                      MKUKUT
Estimate                  Year         2002    2003   2004 2005     2006       2007 2008        2009        2010       A 2010
                                   Cluster II: Improved Quality of Life and Social Well being
                                   Goal 1: Ensure equitable access to quality primary and secondary education for
                                   boys and girls, universal literacy and expansion of higher technical and
                                   vocational education
   Literacy rate of
  population* aged         71        2000/01   69     68                                72.5       X          70                       80%
        15+%
        -male
       -Female
                           64        2000/01   62                                                  X

                           80        2000/01   78                                                  X


Net enrolment at pre-
    primary level          24.6        2004                  24.6   25.7       28.5     33.1     36.2         37.2         37.5




 Net Primary school        59          2000    80.7   88.5   90.5   94.8       100      97.3     97.2         95.9         95.4        99%
   enrolment rate

    % of cohort
 completing standard       70          2000    68.1   67.4   72.2   68.7       78.0     56.7      65          62.5         69.3        90%
       seven
% of students passing
 the primary school        22          2000    27.1   40.1   48.7   61.8       70.5     54.2     62.7         49.4          X          60%
   leaver’s exam

Primary pupil/teacher
        ratio              46:1      2000/01 53:1     57.1   58.1   56.1       52:1     53:1     54:1         54:1         51:1        45:1

  % of teachers with
relevant qualifications    50          2001                             58     69.2     63       85.6         91.2         94.5        90%

Pupil/text book ratio
                           4:1         2000                                             3:1    5:1 – 12:1     3:1          5:1         1:1


  % Transition rate
from standard VII to       21          2002    21.7   30.1   36.1   49.3       67.5     56.7     51.6         51.6         43.9        50%
      Form 1
 % Net Secondary                                                                                 27.8         27.8
     enrolment                                 5.9    6.3    8.4    10.3       13.4     23.5                               29.9        50%
% of students passing
      Form IV              25.8        2000    36.2   38.1   37.8   33.6                35.6     26.73        17.9          X          70%
exams(division 1-3)

 Gross enrolment in                                                                                                               90,000 by
  higher education        22,065     2000/01 30,083 39,318 48,236 48,236 55,296 65,966          95,525 95,525          118,951      2008
     institutions




     Indicators              Baseline                                    Trends                                                        Target


                                                                                                                            MKUKU
Estimate                  Year          2002   2003   2004   2005       2006     2007   2008           2009         2010    TA 2010




                                                                   96
                                     Goal 2: Improved survival ,health and well-being of all children and women
                                     and especially vulnerable groups

 Life expectance at         42           1967     51       X         X         X          X        X        X      54              52 Years
        birth
 Infant mortality per
   1000 live births
      - Census              99           1999     95       X         X        68          X        X       58      51                50
       - TDHS



 Under 5 mortality
  1000 live births         154           1999     162                         112                 91       91      81                79
     -Census
     -TDHS
 DPTHb3 Coverage
       (%)                  80           2002     80                                                                                85%
     -TDHS                                                 89       94        90          87      83       84      85
      -EPI
 Proportion of under
   fives moderately         44           1999      X       X         X        38          X        X        X     16.5               20
  stunted(height for
         age)

        Ratio              529           1996                                 578         X        X        X                        265
Proportional of births
attended by a skilled       36           1999                                 46                   X        X                       80%
  health worker %

 Number of person                                                                                         205,879 248280 342,981 100.000
 with advanced HIV          0            2004                                         80,628 135,696        By    By May By May    by
 infection receiving                                                                                     December 2009    2010 December
 ARV combination                                                                                           2008                   2006

 %HIV prevalence
amongst 15-24 years
        old                9.2           2001     7.4    6.735      7.4       7.4         7.4     7.4      5.7                       5%
Maternal mortality -
      THIS
  -Blood donors
% of TB treatment
     cure rate             79.8          2001     80.1     0.9      81.3      82.6        82      87.1      X                        81
Maternal mortality -
      THIS
  -Blood donors


 % of TB treatment
     cure rate             79.8          2001     80.1   80.9       81.3      82.6        82      87.1      X                        81


                          Baseline                                         Trends                                                  Target
     Indicators


                                                                                                                         MKUKU
Estimate                 Year     2002     2003     2004     2005     2006         2007    2008          2009     2010   TA 2010

                                   Goal 3: Increased access to clean, affordable and safe water, sanitation, decent
                                   shelter and a safe and sustainable environment




                                                                         97
    Proportion of
   population with
  access to piped or                        Urban:85 Urban:73                  Urban:78 Urban:79.9         Urban    Urban                 Urban : 90
  protected water as                        Rural:42 Rural:53                  Rural:55.                    83       84                    Rural: 65
 their main drinking                        (census) (MoW)                        7      Rural:57.1                                       (within 30
  water source (with                                                           (MoWI)     (MoWI             Rural                         minutes to
 the consideration of                                                                                       58.3                          go, collect
30minutes for going,                                                                                                                      and return)
collecting and return)                                                                                               Rural
                                                                                                                     58.7




% of households with
  basic sanitation                             91                                                93          X                50 (est.)       95
      facilities

% of schools having
 adequate sanitation                          36.2     32.8      36.7                           1:60        1:61                          100% with
  facilities (as per                                                                                                                       ratios of;
policy ratio of toilets                                                                                                                     1:20 for
      to pupils)                                                                                                                              girls
                                                                                                                                            1:25 for
                                                                                                                                              boys


Number of reported
cholera cases( attack                         28.5     35.0      20.9                        2,224 up to     X                             Reduce
  rate per 100,000                                                                           August 2007                                   cholera
       people)                                                                                                                            outbreaks
                                                                                                                                          by half by
                                                                                                                                            2010


 Total area managed
 by mandated local
 institutions for the                                                                                                                        To be
     purposes of                                                                                                                          determined
  community based
  natural resources
    management


                             Goal 4: Adequate social protection and rights of vulnerable and needy groups with
                             basic needs and services
                             Goal 5: Systems are in place to ensure universal access to quality public services that
                             are affordable and available
   Proportional of
  children in child                                                                             21.1         X                              Below
       labour                                                                                                                                10%
    Proportion of
    children with                                                                              34,661      27,422                            20%
 disability attending                                                                                      (2009) 29,287
   primary school
                                                                                                                    (0.35%)




Indicators                       Baseline                                    Trends                                                       Target


                                                                                                                             MKUKU
     Estimates            Year         2002          2003     2004   2005    2006     2007      2008       2009     2010     TA 2010

                                   Cluster III: Governance and Accountability
                                   Goal 1: Structure and Systems of governance as well as the rule of law are
                                   democratic, participatory, representative, accountable and inclusive




                                                                        98
% of population with                                                                                                     To be
  birth certificates                                                 17.6       X              20.1                   determined

        Urban                                                        17.8                      20.9
        Rural                                                          2.7                      3.3
Proportion of women
 among senior civil
   servants (%);

Central Gover nment                                                            21.2            14.0    29.5              To be
                                                                                                                      determined

-Local Government                                                              35.0            23.0    30.5              To be
                                                                                                                      determined

-Regional Secretariat                                                          25.0            33.0    21.7              To be
                                                                                                                      determined

     -Judiciary                                                                35.0            33.0     45
  Court of Appeal                                                                       25      31      X

                                                                                                                         To be
     High Court                                                                        25.67    40      X             determined

    % of women
   representatives                                                              X       X      26.4     37               To be
  elected to district                                                                                                 determined
       council
Proportion of women
 among members of                                                              30.4    52.4    29.0    52.7             30%
   parliament (%)

Proportion of village
 assemblies holding                                                                                                       To
  quarterly meeting                                                                            65.0     50                be
with public minutes                                                                                                   determined



Proportion of LGAs
    posting public                                                                                                       To be
budgets, revenue and                                                                           100.0                  determined
 actual expenditures                                                                                   94.7
 on easily accessible
public notice boards




Proportion of women
 with secure tenure                                                                                                      To be
over land or property                                                                                   X             determined




                         Baseline                                Trends                                                Target
     Indicators


                                                                                                              MKUKU
                        Year        2002   2003   2004   2005   2006         2007     2008     2009    2010     TA
      Estimate                                                                                                 2010
                                     Goal 2:Equitable allocation of public resources with corruption effectively
                                     addressed




                                                                99
    Total revenue
  collected as % of
   revenue due at                                                                     91%                                To be
 national level (total                                                             (March,2009)                       determined
revenue collected by
   TRA, billion of
        TZSs)
   % of procuring
 entities complying                                                10       39         43.1                             80%
   with the public
Procurement Act and
     procedures

  % of government
   entities awarded
clean audit certificate
     from NAO


       -MDAs                           31     49    45     34      49       76         71                                To be
                                                                                                                      determined

       -LGAs                           17     34    43     43      44       81         54         77     X
     Number of
  corruption cases
 convicted as % of
     number of                                12    9       6      6        18         35         37    40               To be
 investigated cases                                                                                                   determined
   sanctioned for
 prosecution by the
        DPP
 %LGAs that receive
  the full calculated                                      37      13       5            3
   amount of their                                       (06/07) (07/08) (08/09)      (09/10)           25            Maintain
annual formula based                                                                                                   100%
  budget allocation



                                 Goal 3: Effective public service framework in place to provide foundation for
                                 service delivery improvements and poverty reduction
   % of population
reporting satisfaction
  with Government
      Services:



      Education                                     79             86       X           X         81     X
       Health                                       73             70       X           X         64     X
        Water                                       46             41       X           X         42     X
% of Population who
 found key service
   providers to be                                         53      X        X           X          X     X
 absent when they
  needed a service




     Indicators             Baseline                               Trends                                              Target


                                                                                                              MKUKU
                          Year     2002     2003 2004    2005    2006    2007       2008        2009   2010     TA
      Estimate                                                                                                 2010




                                                                100
                                Goal 4: Rights of the poor and vulnerable groups are protected and promoted in
                                the Justice System

 % of court cases                                      27.9    23.6    28.7     29      25.9      23.1               40%
outstanding for two
   or more years

  % of prisoners in
 remand for two or
more years compared      15.7   2005     X       X      6.8    15.7    7.1      6.1     5.4       5.6                 7.5
to all prisoners in a                                                 (April
     given year                                                       2007)

   % of detained
     juveniles
 accommodated in                                                                                   X                  To be
  juvenile remand                                                                                                  determined
      homes
% of districts with a
  team of trained                                                                                   X
     paralegals


                                Goal 5: Reduction of political and social exclusion and intolerance
                                                                       4,948
   Number of cases                      2,458   2,691 2,789 3,812 (06/07) 2,660         2,341                         To be
filed on infringement                  (02/03) (03/04) (04/05) (05/06)       (07/08)   (08/09)                     determined
   of human rights                                                                                 X


                                Goal 6: Improved personal and material security, reduced crime, eliminate sexual
                                abuse and domestic violence
 Average number of
 inmates per facility
 as % of authorized                      X       X      X     196.3    185     153      151       145                 To be
      capacity                                                                                                     determined

 Number of cases of
  crimes reported:


                                                                                                                      To be
  -Court of Appeal                       91     160     27     221      22     306       X                         determined

    -High Court                         2047    1863   2212    3291   4,344    2,817   3,209     3,260    3,425
 -District of Courts                   39167   39800   8494    1998   22,099 27,552    28,297    28,442   29,784

% of cases of sexual
abuse reported that
   resulted in a
    conviction

% of who agree that
a husband is justified
 in hitting or beating
 his wife for specific
         reason:

      Women                                                                                                           To be
                                                                        60      X        X                         determined

        Men                                                             42      X        X




     Indicators             Baseline                              Trends                                            Target




                                                              101
                                                                                                MKUKU
     Estimate          Year     2002   2003   2004   2005    2006   2007   2008   2009   2010     TA
                                                                                                 2010
                              Goal 7: National Cultural identities enhanced and promoted
Currently no outcome
indicators




                                                       102

								
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