Tanzania Country Strategy Paper 2016-20

African Development Bank Group

JUNE 2015

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Consultations will focus on

‘Country Strategy Paper’ (CSP): what it is and what it aims to achieve

Previous CSP (2011-15): total approvals and lessons learned Tanzania’s major opportunities and challenges Main principles informing the CSP 2016-20 Proposed CSP 2016-20 ‘Areas of Focus’ (Pillars) CSP 2016-20 Resource Envelope Next Steps Discussion

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What is a CSP?

African Development Bank Group business plan that guides its support to its Regional Member Countries – such as the United Republic of Tanzania

Analytic framework for Bank development support modalities and advisory services

Prepared on a 3- to 5-year cycle Results focused Indicative & flexible

4Total Approvals during 2011-15 CSP: Sectoral Composition(UA 697.28m or USD 990.14m)

Trasnsport32%

Agriculture17%Energy

14%

Water2%

Social Sector8%

Multi-sector 27%

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Key lessons from CSP 2011-15

Rigorous selectivity in country programing maximizes development impact

High project/ programme quality at entry improves implementation and development impact

Holistic consideration of the various transport modes (roads, ports, & railway etc) will facilitate interconnectivity, private sector growth and economic transformation

Streamlining of central government processes should yield efficiency gains and expedite project/ programme implementation

Addressing capacity challenges at the PIU/ coordination levels requires candid assessments of the underlying gaps to inform holistic solutions

6Tanzania’s key strengths and opportunities

Peace and political stability

Track record of maintaining macroeconomic stability

Natural resources and tourism

Nascent private sector with significant unexploited potential

Strategic geographical location – along ocean with major seaport hub: potential for regional logistics hub

7Tanzania’s major challenges and weaknesses

Low progress towards inclusive growth

Infrastructure bottlenecks – notably in transport & energy

Weaknesses in public sector governance

Vulnerability to climate change

Lack of employable skills and skills miss-match

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Proposed CSP 2016-20 Pillars

Economic transformat

ion to inclusive

and green growth

PILLAR 2: Governance & Accountabilit

y

PILLAR 1: Infrastructu

re Developme

nt

9The two proposed pillars focus on …

Pillar 1

• Transport• Roads, railway, ports

• Energy• Generation, transmission,

interconnection

• Cross-cutting issues incl. inclusive growth, gender, green growth

Pillar 2

• Energy and transport sector governance

• Public sector institutional and capacity development support

• Targeted institutional and other support for MSME growth

Non-lending activities

• Technical Assistance

• Advisory services

• Knowledge work

10Resource envelope/Financing instruments

ADFLast year ADF-13

(2016)ADF-14 (2017-19)1st year ADF-15

(2020)PRGs, PCGs

NCBADB (sovereign &

non-sovereign)AGTF

Africa50PRGs, PCGs

Local currency bonds

Other

Climate investment financing

Trust Funds

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Processing: next steps

June – September 2015Incorporate feedback from consultations, Management, and Board

October 2015Validation of CSP in Tanzania

November 2015Presentation of CSP to AfDB Group Board for approval

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Issues for discussion

Have we identified the right areas for Bank intervention?

Any other issues that the Bank needs to consider?

Possible areas for collaborations, in terms of

Co-financing

Joint planning: lending and non-lending activities

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Asante sana