CLR Review Independent Evaluation Group
For Official Use Only CLR Review Independent Evaluation Group 1. CAS Data Country: Tanzania CAS Year: FY11 CAS Period: FY12 – FY15 Public Disclosure Authorized CLR Period: FY12 – FY16 Date of this review: March 6, 2018 2. Ratings CLR Rating IEG Rating Development Outcome: Moderately Satisfactory Moderately Unsatisfactory WBG Performance: Good Fair 3. Executive Summary i. This review of Tanzania’s Completion Report of the World Bank Group’s (WBG) Country Assistance Strategy (CAS) covers the period of the original CAS, FY12-15, and the Country Assistance Strategy Progress Report (CASPR), FY14-16. The CAS period was extended at CASPR to allow the WBG to work with the new administration in preparing the next Country Partnership Framework (CPF). ii. Tanzania is a low-income country with a GNI per capita of US$900 in 2016. During the CAS period, the economy grew steadily at 6.7 percent annually compared with an average of 3.5 percent for Sub-Saharan Africa (SSA). Yet, a recent IMF program review report (January 2018) underscores that recent signs of weakening economic activity coexist with large infrastructure gaps, a business climate that has worsened, budget payment arrears in part owing to the electric utility’s (TANESCO) financial difficulties, and problems with tax collections, administration, and policy. Governance indicators on the efficiency and transparency in public management did not improve during the CAS period. Moreover, in the 2018 Doing Business report, Tanzania ranks 137 out of 190 countries, which compares less favorably with its SSA neighbors and reveals weak private sector competitiveness. Hence, sustained reforms to enhance budget credibility and implementation as well as to improve the business climate are needed to achieve strong growth led by the private sector as intended by the government.
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