This Development Finance Assessment (DFA) report is the culmination of months of detailed analytical work and dialogue with actors across the public and private sectors in Tanzania. With technical support from UNDP, the assessment was commissioned by the Ministry of Finance and Planning of Tanzania in recognition of the fact that achieving its development objectives set out in its 3rd Five Year Development Plan (FYDP III) - and the aspirations captured in the Sustainable Development Goals - will require thinking holistically and making the absolute best use of all the sources of development finance available to the country.
The DFA presents the comprehensive analysis of trends in public and private finance compiled for Tanzania using a methodology grounded in the Addis Ababa Action Agenda and assesses the opportunities and challenges that the country faces to mobilize the investments needed to achieve its national development objectives. It analyses the financing policies and partnerships that are in place and looks at the contributions that actors across society can make toward FYDP III.
The analysis shows that for the past ten years total flows into the private and public sectors have been roughly the same. According to estimates prepared for this assessment, total flows accounted for up to TZS 300 trillion. Each section, dealing with the various financial flows included in the report, incorporates recommendations for maximizing financial flows and the impact on national priorities and the SDGs.
The challenges of taking concrete action to address these issues should not be underestimated. However, it is expected that the practical recommendations made in this report will provide a solid basis for constructive dialogue and action across public and private actors. Through its FYDP III, Tanzania is focusing on addressing the need to increase its production capacity; to build a competitive economy that will stimulate the country’s participation in trade and investment; and to stimulate human development.
This DFA provides ideas, recommendations and ways to mobilize the necessary resources and channel them to the country’s priority areas and SDGs. The DFA also incorporates recommendations for setting up monitoring tools and systems to allow Government and other stakeholders to assess whether the necessary funding is, in fact, flowing in the expected amounts and to the appropriate economic sectors. The High-Level Committee, proposed in the DFA, will be in charge to promote the necessary reforms and coordination with other stakeholders to achieve the development goals embedded in FYDP III.
Lastly, the DFA and subsequent INFF will enhance and strengthen Tanzania’s national planning and budgeting systems for effective delivery of intended outcomes and monitoring of financing flows. This will be possible through developing partnerships between all stakeholders, i.e. public, private, CSO and development partners.