Tanzania-Japan relations


  • Overview

  • Economic relations
  • Japanese business in Tanzania

  • Economic cooperation
    1. Japan's Country Assistance Policy for Tanzania
    2. Grassroots Human Security Project

    [Translation of Country Development Cooperation Policy as released to Japanese public]

    Country Development Cooperation Policy for the United Republic of Tanzania

    September, 2017

    1. Purpose of Development Cooperation

    Tanzania is a friendly country that has been maintaining a cordial and cooperative relationship with Japan, both internationally and bilaterally, under its moderate foreign policy and stable domestic politics since the establishment of diplomatic relations with Japan in 1961.

    Geopolitically, Tanzania is located at a strategic point that connects Sub-Saharan Africa with the Indian subcontinent and the Middle-Eastern world. Having a Dar es Salaam Port, which is a gateway to landlocked countries, she is in an important position in East African transportation.

    1. UNHCR(2017) Burundi Regional Refugee Responce Plan2017

    The country has also been playing a major role in ensuring peace and stability within the region and prevention of proliferation of unstable factors; receiving more than 200,0001 refugees from neighboring countries such as Burundi and Congo (DRC) and facilitating the dialogue and mediation of the crisis in Burundi. Especially in recent years, with the existence of a number of terrorist organizations with higher rate of violence in the region, maintaining Tanzania’s socio-economic stability and growth is directly linked to assure her soundness in politics and security sustained since her foundation as well as the ones of East Africa region.

    1. World Bank (2016) WB Development Indicator

    2. World Bank (2016) WB Development Indicator

    In recent years, Tanzania has achieved a steady GDP growth of around 7%2each year, with the stable macroeconomic indicator, the country is now promoting the economic and social development goal towards becoming a middle-income country by 2025 as stipulated in "Tanzania Development Vision 2025". The income per capita has increased by more than 30% in the last 5 years (from 700USD in 2010 to 920USD in 2015).3Considering her favorable conditions of existence of abundant natural resources such as natural gas being explored in recent years, as well as the population size which is one of the largest in the area, she has a great potential to be a base for Japanese company to expand their business in Africa. Strengthening the relationship with Tanzania is hence meaningful.

    1. World Bank (2016) WB Development Indicator

    Despite its high potential, the poverty rate still remains high at 28.2%4,and there are remaining issues such as broad country land with low population density, enormous needs for basic social infrastructure, weak administrative organizations, and rural-urban inequality as well as the challenge on youth employment and business environment improvement. In 2016, the Tanzanian government formulated the Second National Five-Year Development Plan (FYDP II) in order to further promote economic growth and poverty reduction. Therefore, it is highly necessary for Japan to continue supporting stable economic and social development in line with the national strategy of Tanzania.

    2. Basic Policy of Japanese ODA: Promoting economic and social development towards sustainable economic growth and poverty reduction

    In line with Tanzanian national strategy to be a middle-income country, Japan will assist Tanzania in creating and promoting a virtuous circle of comprehensive, sustainable and stable economic growth and poverty reduction.

    3. Priority Areas

    (1) Nurturing driving forces of economic growth

    The development of agriculture sector (including fisheries), which 70% of the labor population is engaged, is crucial, as it assures the food security and maintains stable rural economy. Japan will support rice production, irrigation, strengthening food value chain, and so on, under Agricultural Sector Development Plan II led by the Government of Tanzania to further develop the sector. Additionally, under FYDP II which sets industrialization as the first priority, the engagement in development of the active cooperative sector will be made through supports on the business environment improvement and KAIZEN project.

    (2) Infrastructure development conducive to economic and social development

    To facilitate the basis of the socio-economic development, Japan will support basic infrastructure improvement in transportation and traffic as well as electricity and energy by employing Japan’s high quality infrastructures, which were well emphasized in the Sixth Tokyo International Conference on African Development (TICAD VI). Regarding transportation and traffic, the improvement of arterial traffics and urban transportation will be focused. As for electricity and energy, implementation of the master plans in electricity and gas sector will be preceded by applying both hard and soft component. Japan will also pay attention to the increased needs on sustainable urban development including lifeline infrastructure during the planning process.

    (3) Improvement of governance and the public service delivery

    The regional disparities and income inequality which is a result of the recent economic growth and urbanization draw great attention. From the viewpoint of equity, Japan will continue to improve basic administrative services such as local governance, water and health care services. From the view point of appropriate expenditure planning and its implementation as well as strengthening revenue collection, Japan also intends to strengthen public financial management such as improving capacity in the field of taxation and auditing.

    4. Points to be considered5

    1. The past ODA individual evaluation reports for Tanzania are as follows;
      Tanzania Country Assistance Evaluation (2005)
      Tanzania Country Assistance Evaluation (2016)
    2.   
    3. East African Community: The regional organization of the Republic of Kenya, Tanzania, Uganda, Burundi, Rwanda, South Sudan. The headquarters is located in Arusha, Tanzania.

    4. Southern African Development Community: The intergovernmental organization of 15 southern African countries including Tanzania. The headquarters is located in Gaborone, Botswana.

    (1)During the project implementation, Japan will pay full attention to the safety measures of authorized personnel on account of the security situation in Tanzania, and take necessary safety action.

    (2)Japan will endeavor to achieve international pledges which Japan has declared commitment. In particular, aligning the ones declared in TICAD VI, Japan will focus on human resource development and high quality infrastructure.

           

    (3)Japan will give heed to regional economic partnership and medium and long term trade liberalization that advances with the EAC6and SADC7framework.

    (4)Japan will strive to formulate projects that make use of her superiority in public and private sectors, and help Japanese companies with promoting their business and trade in Tanzania. In particular, Japan will utilize its strengths and features in overcoming the social vulnerability towards global issues such as climate change and environmental conservation.

    (5)Japan will implement effective and strategic cooperation by combining appropriate tools such as ODA loans, overseas investment loans, and public-private partnerships.

    (6)Japan will strategically make use of the opportunity of aid coordination to maximize aid effectiveness.

    Rolling Plan for Tanzania 2018 (PDF)