Tanzania FY18-22
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Document of The World Bank Group FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 121790-TZ INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY PARTNERSHIP FRAMEWORK Public Disclosure Authorized FOR THE UNITED REPUBLIC OF TANZANIA FOR THE PERIOD FY18-FY22 February 14, 2018 Public Disclosure Authorized International Development Association The International Finance Corporation The Multilateral Investment Guarantee Agency Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. The date of the last Country Assistance Strategy Progress Report was July 3, 2014 UNITED REPUBLIC OF TANZANIA - FISCAL YEAR July 1 - June 30 CURRENCY EQUIVALENTS Exchange Rate Effective as of January 31, 2018 Currency Unit: Tanzanian Shilling (TZS) US$1.00 = TZS 2,253 SDR 1.00 = US$1.42 ABBREVIATIONS AND ACRONYMS AF Additional Financing LNG Liquefied Natural Gas AIDS Acquired Immunodeficiency Deficiency M&E Monitoring and Evaluation Syndrome ASA Advisory Services and Analytics MDA Ministries, Departments, and Agencies ASDP Agricultural Sector Development Program MFD Maximizing Finance for Development ASDS Agricultural Sector Development Strategy MIC Middle-income Country BP Bank Policy MIGA Multilateral Investment Guarantee Association CCT Conditional Cash Transfer MSME Micro, Small and Medium Enterprises CIDA Canadian International Development Agency NSDS National Skills Development Strategy CIF Carbon Investment Fund OP Operations Policy CLR Completion and Learning Review PFM Public Financial Management CPF Country Partnership Framework PforR Program for Results CPIA Country Policy and Institutional Assessment PHC Primary Health Care CRW Crisis Response Window PIU Project Implementation Unit DAWASCO Dar es Salaam Water and Sewerage Corporation PPPs Public Private Partnerships DFID Department for International Development PSCP Private Sector Competitiveness Project DMGP Dar es Salaam Maritime Gateway PSSN Productive Social Safety Net DPO Development Policy Operation PSW Private Sector Window DRC Democratic Republic of Congo PW Public Works DSA Debt Sustainability Analysis RCIP Regional Communication Infrastructure Program EAC East African Community REGROW Resilient Natural Resource Management for Tourism and Growth EAMU East African Monetary Union RI Regional Integration EAPP Eastern Africa Power Pool SAGCOT Southern Agricultural Growth Corridor of Tanzania EBA Enabling the Business of Agriculture SATTF Southern Africa Trade and Transport Facilitation EC European Commission SCD Systematic Country Diagnostic e-GP Education Global Practice SDG Sustainable Development Goals EITI Extractive Industries Transparency Initiative SME Small and Medium Enterprises EKTZ Ethiopia-Kenya-Tanzania-Zambia SOE State-owned Enterprise ESF Environmental and Social Framework SSA Sub-Saharan Africa ESMAP Energy Sector Management Assistance Program SUF Scale-Up Facility FY Fiscal Year SUZA State University of Zanzibar FYDP II Second Five Year Development Plan TA Technical Assistance GDP Gross Domestic Product TANESCO Tanzania Electric Supply Company GEF Global Environment Facility TASAF Tanzania Social Action Fund HDFC Housing Development Financial Corporation TDV Tanzania Development Vision ICAS Investment Climate Assessments TIRP Tanzania Intermodal Rail Development ICT Information and Communication Technology TREEP Tanzania Rural Electrification Expansion Project IDA International Development Association TUSP Tanzania Utility Strengthening Project IEY Investing in the Early Years TVET Technical and Vocational Training IFAD International Fund for Agricultural Development TZS Tanzanian Shillings ii IFC International Finance Corporation USAID United States Agency for International Development JAST Joint Assistance Strategy WBG World Bank Group LE Livelihoods Enhancement ZSGRP III Third Zanzibar Strategy for Growth and Reduction of Poverty LGA Local Government Authority ZUSP Zanzibar Urban Services Project IDA IFC MIGA Vice President: Makhtar Diop Sérgio Pimenta Keiko Honda Director: Bella Bird Cheikh Oumar Seydi Merli Baroudi Task Team Leaders: Preeti Arora Manuel Moses Moritz Nebe Gayle Martin Dan Kasirye iii FY18-FY22 COUNTRY PARTNERSHIP FRAMEWORK FOR THE UNITED REPUBLIC OF TANZANIA TABLE OF CONTENTS I. INTRODUCTION ..........................................................................................................................1 II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA ......................................................................3 A. Geography and Regional Context ...................................................................................................... 3 B. Social and Political Context ............................................................................................................... 4 C. Economic Context ............................................................................................................................. 5 D. Poverty Reduction and Shared Prosperity ........................................................................................ 7 E. Development Opportunities and Challenges .................................................................................... 9 III. WORLD BANK GROUP COUNTRY PARTNERSHIP FRAMEWORK .................................................... 13 A. Government Program and Medium-Term Strategy ........................................................................ 13 B. Learning from the Country Assistance Strategy .............................................................................. 14 C. Stakeholder Consultations .............................................................................................................. 15 D. Overview of the WBG Strategy ....................................................................................................... 16 E. Objectives Supported by the WBG Program ................................................................................... 18 Focus Area 1: Enhance Productivity and Accelerate Equitable and Sustainable Growth ....................... 19 Focus Area 2: Boost Human Capital and Social Inclusion ....................................................................... 26 Focus Area 3: Modernize and Improve the Efficiency of Public Institutions .......................................... 30 F. Implementing the CPF ..................................................................................................................... 32 G. Financial Management and Procurement ....................................................................................... 37 H. Partnerships and Donor Coordination ............................................................................................ 37 I. Monitoring and Evaluation .............................................................................................................. 38 IV. MANAGING RISKS TO THE CPF PROGRAM.................................................................................. 38 iv LIST OF ANNEXES Annex I. Results Framework ........................................................................................................................ 41 Annex II. Completion and Learning Review ................................................................................................ 57 Annex III. Stakeholder Consultations .......................................................................................................... 82 Annex IV. Selected indicators of World Bank Portfolio Performance and Management ............................ 83 Annex V. IDA Operations Portfolio .............................................................................................................. 84 Annex VI. Trust Funds Portfolio in Tanzania ................................................................................................ 85 Annex VII. IFC Statement of Held Investments ........................................................................................... 86 Annex VIII. MIGA Current Exposure ............................................................................................................ 87 Annex IX. Gender in the Tanzania CPF ........................................................................................................ 88 Annex X. Technology-driven Innovation and Disruption ............................................................................. 91 Annex XI. Maximizing Finance for Development ........................................................................................ 93 Annex XII. Map ............................................................................................................................................ 95 LIST OF FIGURES Figure 1. Links between the FYDP II, the SCD and the CPF Focus Areas ....................................................... 2 Figure 2. Snapshot of Expected CPF Results ................................................................................................. 3 Figure 3. Spatial Distribution of Poverty ....................................................................................................... 8 Figure 4. Stunting among Children under 5, percent .................................................................................... 8 Figure 5. Road Density and Electricity