Embassy of Japan in Tanzania
在タンザニア日本国大使館
Japan's ODA in Tanzania
November, 2009
I. Overview on Tanzanian Politics, Economy and Development
(1) Tanzania is one of the most politically stable countries in Sub-Sahara Africa and has been playing a leading role in the consolidation of peace in the Great Lakes Region. The stability of domestic politics since its independence in 1961 was largely attributable to the strong leadership of the first President Nyerere. While the multiparty system was introduced in 1992, the Government has been continuously administrated by the ruling party CCM. President Kikwete was elected at the end of 2005.
(2) Tanzanian economy deteriorated due to the socialistic economic policies adopted under the Nyerere Administration. Since the latter half of 1980’s, several efforts in economic reforms have been made and market-oriented policies have been implemented. Tanzanian economy has been dependent on agriculture sector which accounts for about 40% of GDP and 80% of labour forces. Recently the growth of tourism and mining (gold, gems, etc.) sectors are outstanding and the growth rate of GDP over the last five years has surpassed 7.1%. Inflation rates had been contained below 5% since 2002 whilst hike of food prices has increased inflation rates to 7.3% in 2006 and to 7.0% in 2007. In 2008, the global financial crisis has caused high food and oil prices, inflation rate has reached to double figures, 10.3%. Tanzania is, however, still among poorest countries with per capital income (GNI) of US$400 (2007) despite the substantial improvement of macro-economic indicators such as foreign exchange reserves. Poverty reduction is still a challenge for the country.
(3) The first Poverty Reduction Strategy (PRS1) was launched in October 2000, focusing on seven prioritised sectors: Education, Health, Agriculture, Water, Road, HIV/AIDS and Judicial System. The National Strategy for Growth and Reduction of Poverty (NSGRP), which is the PRS2, was launched in July 2005, and adopted a result-oriented approach based on the ownership of Tanzanian Government in the three clusters: “Growth and Reduction of Income Poverty”, “Improvement of the Quality of Life and Welfare” and “Governance and Accountability.”
(1) Purpose of Japan’s assistance to Tanzania
Japan has placed Tanzania as an important targeted country for its official development assistance in Africa based on the fact that Tanzania has enjoyed political stability and maintained good relationships with Japan since its independence, and also provided political leadership in East Africa. It is vital to continuously provide support to this country in order to sustain its economic development and poverty reduction in view of its remarkable achievement of economic growth in recent years.
(2) Prioritised Sectors
Japan’s Country Assistance Programme (CAP) for Tanzania, which was revised in June 2008, prioritises the areas of its cooperation in agriculture, infrastructure (transport, energy, water) and governance. Its cooperation is also provided in the health and education sectors. In accordance with Japan’s CAP, Japan provides assistance in line with NSGRP or MKUKUTA.
(a) Agriculture
Agriculture is of vital importance for the economic growth of Tanzania given that about 30% of GDP, 30% of total exports and about 80% of labour forces are all from this sector. However, significant improvement in agricultural productivity has not been observed due to the rain-fed and extensive agriculture. In response to this situation, Japan has been providing technical support for irrigated rice production through technical cooperation in supporting service delivery systems of irrigated agriculture and, in addition, capacity development for irrigation-related technology at the level of local government. Japan has also been actively participating in policy discussion along with providing financial contribution to the ASDP Basket Fund.
(b) Infrastructure
Japan has been supporting the improvement of infrastructure in Tanzania. 20% of paved trunk roads, 40% of electrification network and 30% of telephone circuits in Dar es Salaam have been constructed by Japan’s assistance and we have also given support for power transmission and distribution in the city. Inadequacy, however, exists in the infrastructure development across the country. For instance, pavement ratio of trunk roads is merely 5%. Infrastructure development is indispensable for stable economic growth. Operation and maintenance of invested infrastructure with the ownership of the central and local governments are also crucial. Development of human resources in technology is a big challenge.
(c) Governance
Japan has assistance priorities on “local government reform”, “public financial management reform” and “monitoring of poverty reduction strategy". More stress has been put on “local government reform” and “public financial management reform". A comprehensive assistance approach is taken in this area: technical cooperation aimed at organizational and institutional capacity development of the Government and basket funding support which provides a financial base for ongoing reforms and to enhance the impact of the Japanese technical cooperation mentioned above around the country. Governnance assistance is expected to also strengthen the capacity of the Government of Tanzania to improve policy dialogues.
(d) Other areas
Japan also provides assistance to the health and education sectors. In the health sector, Japan provides assistance to the areas of population management, HIV/AIDS and children's health, moreover basic education assistance in the education sector.
III. Aid Harmonisation and Coordination
(1) Aid harmonisation and coordination have been actively promoted under the partnerships between the Government of Tanzania (GoT) and Development Partners (Donors) through providing budget support, financing basket funds, etc. The harmonisation efforts have been made in order to efficiently utilise development resources of GoT and donors, aligning donors’ assistance to the national strategy and creating good results of poverty reduction.
(2) Japan started to provide financial assistance to the Poverty Reduction Budget Support (PRBS) applying debt relief in FY2001. Since FY2003 Japan has annually provided 545 million Japanese Yen ($4.54 million) to PRBS and 55 million Japanese Yen ($0.46 million) to the Poverty Monitoring System Pooled Fund under the scheme of non-project grant aid, which was the first operation of Japan’s ODA to put our grant to the Budget Support. Japan has provided 2 billion Japanese Yen ($16.7 million) for co-financing for the Poverty Reduction Support Credit (PRSC) of the World Bank since FY2006. In FY2008, Japan extended JPY 630 million ($ 6.16 million) to four basket funds in total under the scheme of Grant Aid for Poverty Reduction Strategy (PRS), namely Agriculture Sector Development Programme (ASDP): JPY 325 million, Public Financial Management Reform Programme (PFMRP): JPY 50 million, PRS Monitoring: JPY 155 million and Local Government Capital Development Grant (LGCDG): JPY 100 million.
(3) In view of producing tangible results through GBS, and in response to GoT's initiative to accelerate decentralisation by devolution, it is crucial to establish a cycle of planning, implementation, monitoring and feedback in the central and local governments planning and budgeting system to make sure that public finance of both domestic and external funds are soundly managed, that the development budget is linked to concrete interventions of GoT and that the result of the monitoring is appropriately and properly reflected in government policies. In this context, Japan has also been supporting PFMRP, Poverty Monitoring and the Local Government Reform Programme (LGRP) with various assistance including technical cooperation for capacity development as well as grant aid for the basket funds as mentioned above.
IV. Ongoing projects and programmes assistance
(US million, $1=120 Japanese Yen)
Loan Assistance
Debt Relief
Grant Assistance
Basket Funding
- ASDP Basket Fund (2.71)
- PFMRP Basket Fund (0.42)
- PRS Monitoring Pooled Fund (1.29)
- LGCDG Basket Fund (0.83)
Agriculture Sector
Transport Sector
Water Sector
Energy Sector
Health Sector
Technical Assistance
Agriculture Sector
Transport Sector
Water Sector
Energy Sector
Health Sector
Local Government
Public Financial Management Reform
V. Examples of completed projects and programmes assistance
(US million, $1= 120 Japanese Yen)
Grant Assistance
Improvement of Bridges on Trunk Road (15.3)
Dar es Salaam Roads Improvement Project (29.9)
Makuyuni -Ngorongoro Road Rehabilitation Project (26.7)
Rehabilitation of TANZAM Highway (Kitonga Gorge Section) (6.3)
Dar es Salaam Fish Market (13.6)
Construction of Kirumba Fish Market in Mwanza (5.2)
Rural Drinking Water Supply in Hanang, Singida Rural, Manyoni and Igunga Districts (6.5)
Rural Water Supply in Lindi and Mtwara regions (15.4)
The Eradication of Poliomyelitis (1.9)
Project for Infectious Disease Control (6.7)
Project for Infectious Disease Control Phase II (2.5)
HIV/AIDS Control (7.3)
Development of School Facilities for Dar es Salaam Primary Schools (10.4)
Technical Assistance
Kilimanjaro Agriculture Training Centre (KATC) (22.3)
The National Irrigation Master Plan (4.0)
Project for Capacity Building of Hombolo Local Government Training Institute (1.5)
Strengthening of Capacities of the National Bureau of Statistics in Data Providing Service (2.0)
Morogoro Health Project (7.0)
Integrated Malaria Control Project (2.3)
Japan's ODA Disbursements to Tanzania
Japan's Country Assistance Program for the United Republic of Tanzania