## _cr0822

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---

### Executive summary — purpose and scope
- MAIR 2006/07 (MKUKUTA Annual Implementation Report) is an output of the Government’s monitoring system to inform stakeholders on progress in MKUKUTA implementation and associated processes, stimulate dialogue on key issues, and inform subsequent planning, budgeting and implementation.
- Report basis: analysis of progress at goal level and overview of performance, challenges, lessons learned, and next steps within each MKUKUTA cluster.
- Key objectives:
  - Assess progress against Government priorities of economic growth and reduction of poverty as identified in MKUKUTA.
  - Generate information to organize sector interventions into a consistent implementation strategy.
  - Stimulate dialogue on prioritization, sequencing of interventions, and resource mobilization and utilization.
  - Provide inputs for national budget process including Plan and Budget Guideline and Budget Formulation.

### Cluster I — Growth and reduction of income poverty (summary findings)
- Macroeconomic and external sector
  - GDP growth: "6.2 percent in 2006" (compared to "6.8 percent in 2005").
  - Real GDP average growth: "6.0 percent" over past seven years; target for Goal 2: "annual real GDP growth between 6-8 percent".
  - Annual rate of inflation in the year to June 2007: "5.9 percent" (above MKUKUTA target "4 percent").
  - Official foreign reserves: "5.3 moths of import" in 2006/07 (compared to "6 months of import in 2005").
  - External debt stock: "US$5,749.0 or about 35percent of GDP" (MKUKUTA target: "50 percent or less"); external debt equals "80.0 percent of the total national debt stock".
  - Export of goods and services: "US$ 3,133.1 million in 2006" from "US$ 2,945.5 million in 2005"; export earnings as percent of GDP: "21.9 percent in 2006/07" (down from "22.2 percent in 2005/06").
  - Imports increased by "28.9 percent" due to foodstuff and oil bills.
- Financial and labor indicators
  - Government domestic revenue (tax and non tax) as percent of GDPmp: "15.6 percent in 2006/07" (from "14.3 percent in 2005/06").
  - Domestic credit to private sector: "12.5 percent of GDP in 2006" (from "11.0 percent of GDP in 2005").
  - ILFS 2006 unemployment rate: "11 percent" (target: "6.9 percent by 2010"; base "12.9 percent in 2000/01").
  - Active population (labor force): rose to "20.6 million" from "17.8 million in 2001/02" (average annual increase "760,000").
  - Employment distribution FY 2005/06 (out of "18.3 million employed"): "76.5 percent in agriculture", "9.3 percent in informal sector", "8.0 percent in private formal sector", "3.5 percent in domestic work", "2.4 percent in government", "0.4 percent in parastatals".
- Sectoral performance
  - Manufacturing growth: "8.6 percent in 2006" (from "9 percent in 2005"); contribution to GDP "9.2 percent in 2006".
  - Agricultural growth: "4.1 percent in 2006"; crop sub-sector "4.0 percent in 2006" (vs "5.2 percent in 2005"); livestock sub-sector "4.1 percent in 2006" (MKUKUTA target: "9percent by 2010").
  - Mining sector growth: "16.4 percent in 2006" (from "15.7 percent in 2005"); contribution to GDP "3.8 percent in 2006" (from "3.5 percent in 2005"); value of mineral exports "US$ 823.9mil in 2006" (from "US$ 711.3mil in 2005"); gold export volume declined "11 percent to 42.7 tons in 2006".
  - Electricity sub-sector growth: "-2.5 percent in 2006" (compared to "5.3 percent in 2005"); hydropower generation dropped from "561 MW in 2005/06" to "260 MW in 2006/07".
- Infrastructure, roads and food security
  - Council roads scheduled for rehabilitation: "13,353km"; rehabilitated by April 2007: "3,181km".
  - Trunk and regional roads in good and fair condition: increased from "51 percent in 2000" to "78 percent by December 2006".
  - FY developments: "318 KM tarmac roads constructed"; "78 Km of tarmac roads rehabilitated"; "153.5 KM of gravel roads rehabilitated".
  - Food crop production: "10.9 million tones in 2005/06"; Food Self Sufficient Ratio (SSR): "112 percent" in 2005/06; SGR purchased and stocked "27,500 tones of cereals" (noted as low compared to MKUKUTA target of 4 months national requirement).
- Informal sector and SMEs
  - Share of labor force in informal sector: increased from "5.3 percent in 2000/01" to "9.3 percent in 2005/06".
  - Support: informal sector exhibitions, demand-driven skills programs; "27,244 enterprises were given loans" through National Empowerment Funds.

### Cluster II — Improved quality of life and social wellbeing (summary findings)
- Education
  - Pre-primary net enrolment (age 5–6): increased from "24.6 percent in 2004" to "33.1 percent in June 2007".
  - Primary education:
    - Gross Enrolment Ratio and Net Enrolment Ratio: "114.4 percent and 96.1 percent in 2006" to "114.4 percent and 97.3 percent in 2007".
    - Pass rate Standard VII: improved from "22 percent in 2000" to "70.5 percent in 2006"; cohort completing Standard VII: "78 percent in 2006" (MKUKUTA target: "90 percent").
    - Transition rate primary to secondary: "21.7 percent in 2002" to "36.1 percent in 2005" and "67.5 percent in 2006".
    - Teacher–pupil ratio: "1:58 in 2005" to "1:52 in 2006".
    - Number of primary schools: "11,624 in 2000" to "14,700 in 2006".
  - Secondary and higher
    - Secondary gross/net enrolment improved (examples): net enrolment in secondary "13.4 percent in 2006" and "20.6 percent in 2007".
    - Students registered for form one: "243,359 in 2006" to "401,011 in 2007" (increase "65 percent" noted).
    - Higher learning enrolment: "55,134 to 75,346 for academic year 2005/06 to 2006/07"; female percent "35", male "65".
  - Infrastructure and inputs (selected)
    - "4,677 class rooms constructed out of a target of 5,832".
    - "1,720 teachers' houses constructed".
    - "62,875 pupils' desks made compared to target of 52,785".
    - "2,492,568 school books of various kinds bought".
  - Concerns: low inclusion of children with disabilities ("0.29percent in 2007" vs target "20percent"); quality pressures from rapid expansion.
- Health, child survival and maternal outcomes
  - Under-five mortality: declined from "191 per thousand live births in 1990" to "112 in 2005/06".
  - Infant mortality: declined from "115 per thousand live births in 1990" to "68 in 2005/06".
  - Measles vaccination: "87 percent in 2005" (MKUKUTA target "85 percent").
  - DPT-HB3 coverage for 2006: "87 percent".
  - Under-fives stunted: "38 percent"; underweight: "22 percent".
  - Maternal mortality: increased from "529 per 100,000 live births (1996 DHS)" to "578 per 100,000 live births (2004/05 DHS)".
  - Births attended by skilled health workers: "46.0 percent".
  - HIV prevalence: adult estimate "7 per cent of the population in 2004".
- HIV/AIDS and TB
  - HIV prevalence by sex: "7.7 per cent for females and 6.3 per cent for males".
  - Prevalence in age 15–24: "3.0 percent for males" and "4 percent for females".
  - ANC trend: declined from "9.6 percent in 2001/02" to "8.2 percent in 2005/06".
  - ARV rollout: ARVs introduced in "more than 200 health facilities in 2006/07"; "48 percent of the targeted number of people was receiving treatment" against the government target of "100, 0000 people with advanced HIV infection".
  - TB treatment success rate: "82.6 percent (as of 2005)" (WHO gold standard: "85 percent").
- Water, sanitation and shelter
  - Rural clean and safe water supply: "53.5 percent in 2005/06" to "55.7 percent in 2006/07".
  - Urban clean and safe water supply: "73 percent in 2005/06" to "78 percent in 2006/07".
  - Water-meter installation: "About 82 percent of water users have their water line installed with water-meter".
  - Sewerage access maintained at "17 percent" across Urban Water Authorities; "25 percent of the wastewater generated daily was collected and disposed through sewerage systems".
  - RWSSP begun in "24 districts"; "About 429 water wells were drilled nationwide".
  - Lake Victoria-Kahama-Shinganga project designed to "produce 120,000 Cubic Meter/day for over 1million people in Mwanza and Shinyanga regions".
- Social protection and vulnerable groups
  - National Multi-sectoral Social Protection Framework (NMSPF) developed to guide coordination and prioritizes children and young people, women, people with disabilities, the elderly and People Living with HIV and AIDS (PLWHA’s).
  - TASAF piloting a community-based conditional cash transfer (CB-CCT) in most villages.
  - Operational targets by 2010: reduce child labour from "25percent to less than 10percent"; increase orphans and most vulnerable children reached; "20 percent of children and adults with disabilities reached"; "40percent of eligible older people reached".

### Cluster III — Governance and accountability (summary findings)
- Representation, inclusion and rule of law
  - Women in decision-making positions at Central government: "26.8 percent in 2005" and "29.1 percent in 2006" (MKUKUTA target: "30 percent"); Women representatives in Parliament: "30.4 percent".
  - Proportion of communities reporting governance initiatives: "over 50 percent" (2007 HBS).
  - Decreed clause for ruling cases within "90 days after completion of hearing".
  - Ruling rates: commercial cases "91 percent"; land cases "32 percent"; human rights cases "70 percent".
- Anti-corruption, transparency and public financial management
  - PCCB reported cases increased from "1,244 in 2000" to "3,121 in 2005"; in 2007 "15 cases out of 19 qualified for court hearing".
  - Domestic revenue during FY2006/07: "111. 3 percent (by March, 2007) of the annual domestic revenue budget estimate".
  - LGAs posting budgets and expenditures: "100 percent" compliance in posting on public notice boards.
  - IFMS rollout: "85 out of 133 councils connected to IFMS network" (other passages note "85 out of 122" and related counts).
- Justice, policing and prisons
  - Outstanding court cases: dropped from "58 percent in 2005" to "46.7 percent in 2007" (target: reduce to "40 percent by 2010").
  - Judges and magistrates appointed/recruited: "23 Judges", "77 Resident Magistrates", "46 Primary Court Magistrates"; "211 attorneys" authorized for LSRP Phase I recruitment.
  - Police-recorded crime incidence: declined by "about 17 percent in year 2006 compared to year 2005".
  - Prisoners: "44,565 (June 2006)" and "39,782 (June 2007)"; prison carrying capacity increased from "22,699 to 27,653" in 2005/06 and 2006/07 respectively.
  - Specialized courts: Commercial Court disposed "140 out of 153" commercial disputes in 2006; Land Court disposed "476 out of 787" land disputes in 2005/06 and "612 out of 1,915" in 2006/07.
- Cultural identity and sports
  - Cultural training: "2,840 individuals trained" in arts and culture sectors.
  - Kiswahili promotion: "Over 500 certificates and 50 documents translated into Kiswahili"; "156 TV and radio programs" broadcast.
  - Sports: sport associations/clubs/centers registered "124 in 2005 and 241 in 2006".
- Key governance challenges
  - Inadequate infrastructure, human resources and capacity building across justice, law enforcement and local government; notice boards often inaccessible; data gaps on Certificates of Customary Rights of Occupancy (CCROs); inadequate technology for law enforcement; prison overcrowding; capacity constraints to absorb increased LGAs funds.

### MKUKUTA financing — allocations, execution and challenges
- Trends and aggregates
  - Development partners' budget support: "Tshs 1,030 billion in the first two years of PRS" to "Tshs 3,090 billion in the first two years of MKUKUTA implementation".
  - Domestic revenue collection: "Tshs 1,973 billion in the first two years of PRS" to "Tshs 4,897 billion in the first two years of MKUKUTA implementation".
  - Approved budget to implement MKUKUTA in 2006/07: "48 percent of the total budget allocations"; remaining "52 percent" for projects/programs not directly linked to MKUKUTA.
  - Components of the 52 percent: Wages and Salaries "18 percent", LGAs "12 percent", and CFS "10 percent".
  - Distribution of MKUKUTA intervention budget: "46 percent for Cluster 1", "36 percent for Cluster 2", "18 percent for Cluster 3".
- Fiscal performance FY 2006/07 (selected)
  - Domestic revenues by end-June 2007: "TShs 2,739,022 million" (which is "11.3percent higher" than annual estimate "TShs 2,460,995 million").
  - Total Expenditure to GDP ratio: declined from "26.1 percent in 2005/06" to "25.5 in 2006/07".
  - Total expenditure for 2006/07: "Tshs. 4,761,700 million", equivalent to "98 percent of the total estimate of shillings 4,850,588 million".
  - Development budget unpredictability and timing issues: examples of ministry disbursement shares in 2005/06 provided (e.g., MAFSC "47 percent" of budgeted development resources; MoEVT "32 percent"; MoHSW "81 percent").
- Budget reporting and transparency
  - Public Finance Act of 2001 and accounting manuals guide reporting.
  - Quarterly execution reports and monthly IFMS flash reports available; need to structure them by programs and MKUKUTA clusters.
  - Planned actions: institute classification and reporting mechanisms to compile comprehensive fiscal information; link IFMS with SBAS and RIMKU; prepare a manual for MDAs to report on MKUKUTA.
- Remaining financing challenges (explicitly listed)
  1. Concretize and integrate non-state actors' contribution in poverty reduction.
  2. Resources generated for MKUKUTA implementation are not sufficient to cover earmarked interventions; need to increase domestic tax and non–tax revenues and encourage development partners to increase contributions.
  3. Existing system fails to match complexities introduced by multiple funding channels at district levels; need to rationalize funds flow and ensure transparency.
  4. Foreign resources predictability is an issue; unpredictability and delay in capturing information related to development funds.
  5. Need for guidance on level of detail in initial budget submissions by MDAs to avoid excessively detailed activity submissions lacking strategic framework.
  6. Need to improve connectivity between budget and program documents and coordination/authority between budget and program officers within MDAs.

### Monitoring and evaluation, harmonization and capacity building
- MKUKUTA Monitoring System (MMS)
  - PMS (2001) reviewed and revised into MMS; MMS approved by MKUKUTA Technical Committee in February 2006.
  - Final national indicator list contains "84 indicators at national level".
  - MMS major changes: consolidation of Steering and Technical Committees into MKUKUTA Technical Committee; creation of three Technical Working Groups: Research & Analysis TWG; Survey and Routine Data TWG; Communication TWG.
  - Tools and software: RIMKU developed; harmonization work ongoing with PIMA and PLANREPII and IFMS.
- Survey and data program status (selected)
  - Agriculture Sample Census (2002/03): near completion; multiple reports; remaining regional and national reports to be completed by "September 2007".
  - Integrated Labor Force Survey (ILFS 2006): data collection, processing, analysis completed; draft report expected "October 2007".
  - TSPA: completed data collection and preliminary report; final reports by "October 2007".
  - 2006/07 Household Budget Survey (HBS): implementation started "April 2006"; exercise expected to be completed by "December 2007".
  - National Panel Survey (NPS): still in design stage.
  - Tanzania Disability Survey: implementation planned for financial year "2007/08".
  - THIS (Tanzania HIV/AIDS and Malaria Indicator Survey): preparatory activities done; training scheduled "September 2007"; fieldwork to start after training.
  - 2007 Business Survey: execution started "May 2007"; by end-June 2007 "about 85 percent of the enumeration work completed".
- Communication and coordination achievements
  - MKUKUTA HIGHLIGHTS newsletter produced every two months from "January 2006"; new MKUKUTA monitoring website operational; new email contact with over "450 individuals and organizations".
  - Research outputs include third Poverty and Human Development Report (PHDR) and MKUKUTA Status Report (2006).
- Harmonization initiatives and institutional alignment
  - Inter Ministerial Taskforce on Planning, Budgeting and Reporting formed in 2006/07 (MPEE, PMO-RALG, PO-PSM, MoF).
  - Medium Term Strategic Planning, Budgeting and Reporting Manual (MTSPBR, 2005) documents rationalized processes.
  - Explicit reporting requirements incorporated into 2007/08 Plan and Budget Guidelines.
  - Harmonization goal: MKUKUTA → PER → Budget Guideline → sectoral budgets and MTEF.
- M&E challenges and way forward
  - Weak links between MMS and MDAs/LGAs monitoring; MMS funding highly dependent on external support (sustainability concerns).
  - Low attendance and engagement in TWG meetings; need to mainstream TWG activities within member institutions.
  - Planned actions: put in place an M&E policy; capacity building at all levels; improve RIMKU, PIMA and PLANREP; migrate MMS funding from pool fund to mainstream national budget; Joint Task Force between Government and Development Partners addressing transition issues up to "2012".

### Key issues and the way forward (cross-cluster priorities)
- Cross-cutting priorities and policy directions (select items)
  - Economic infrastructure: prioritize roads, energy diversification (reduce hydro-dependence), and rural electrification (Rural Electrification Master Plan finalized).
  - Agriculture and rural livelihoods: scale up irrigation (total area under irrigation "273,945 hectares"), promote agro-processing, increase access to formal credit (only "3.0 percent" of smallholders accessed formal credit for agricultural purposes per Agricultural Sample Census 2002/03), expand fertilizer subsidy (about "89,941 tones" sold in 2006/07) while addressing distribution concerns.
  - Human resources: address HRH crisis in health (human resource gap "estimated at 67 percent"); recruit and train teachers and health staff (about "3,600 staff recruited" to health facilities between "July 2006 and March 30, 2007").
  - Social protection: finalize and implement NMSPF; scale up TASAF interventions and community-based conditional cash transfers.
  - Governance: scale up awareness raising, ethics training, capacity building for LGAs, reduce case backlogs, expand auditing and anti-corruption measures, improve notice-board reach and data disaggregation (e.g., CCROs by gender).
  - Financing: increase domestic revenue mobilization; improve predictability of foreign resources; rationalize multiple funding channels at district level; better link budget submissions to strategic frameworks; improve SBAS–IFMS–RIMKU interoperability.
  - Monitoring and harmonization: strengthen MMS institutionalization; complete key surveys (HBS, ILFS, THIS); harmonize reporting tools (RIMKU, PIMA, PLANREPII); mainstream funding into national budget by "2012".
- Specific operational follow-ups (selected)
  - Continue implementing Power Master Plan, TANESCO recovery and emergency power projects; finalize rural electrification and off-grid plans and PSAs (19 PSAs concluded by end of August 2007).
  - Scale up irrigation rehabilitation and construction: "111 irrigation schemes" contributed to area under irrigation increase.
  - Speed up implementation of Special Economic Zones and Mini Tiger Plan and re-examine comprehensive growth strategy.
  - Enhance environmental management (bans on exports of logs, sandalwood, charcoal; ban on plastic bags < "30 microns"; SUA-LWC actions restoring catchments).
  - Strengthen legal sector reforms (LSRP), Public Service Reform Program (PSRP Phase II demand-driven approach), Local Government Reform Program (LGRP), National Anti-Corruption Strategy and Action Plan (NACSAP II), and Public Financial Management Reform Program (PFMRP).

### Annex highlights — selected numeric indicators and targets
- Macroeconomic and external
  - GDP: "US$ 16,520 mil." (footnote context) at exchange rate "TShs 1250/US$".
  - External debt stock: "US$5,749.0" (~"35percent of GDP").
  - Export earnings as percent of GDP: "21.9 percent in 2006/07".
- Social and human development
  - Food crop production: "10.9 millions tons in 2005/06"; SSR "112 percent in 2005/06".
  - Primary school enrolment: Gross/Net "114.4 percent and 97.3 percent in 2007".
  - Under-five mortality: "112 in 2005/06"; infant mortality: "68 in 2005/06".
  - Maternal mortality: "578 per 100,000 live births (2004/05 DHS)".
  - HIV: adult prevalence "7 per cent in 2004"; ARV patients "about 93,689 under ARV treatment by July 2007 out of 188,264 enrolled".
- Infrastructure and services
  - Council roads scheduled: "13,353 km"; rehabilitated by April 2007: "3,181 km".
  - Trunk/regional roads in good and fair condition: "78 percent by December 2006".
  - District roads rehabilitated during 2006/07: "62.7    km".
  - Rural water access: "55.7 percent in 2006/07"; urban water access: "78 percent in 2006/07".
- Budget and finance
  - Domestic revenues end-June 2007: "TShs 2,739,022 million".
  - Total expenditure 2006/07: "Tshs. 4,761,700 million" ("98 percent" of estimate).
  - Development partner budget support: "Tshs 3,090 billion" (first two years MKUKUTA).
  - MKUKUTA budget shares: Cluster 1 "46 percent"; Cluster 2 "36 percent"; Cluster 3 "18 percent".
- Governance and justice
  - Women in central government decision-making: "29.1 percent in 2006".
  - Outstanding court cases: "46.7 percent in 2007" (down from "58 percent in 2005").
  - Prison population: "39,782 (June 2007)"; prison capacity "27,653" (2006/07).
  - Police-recorded crime incidence: declined by "about 17 percent in year 2006 compared to year 2005".

* _cr0822*

### EXECUTIVE SUMMARY ......................................................................................................

### EXECUTIVE SUMMARY

### 1.1. Introduction
- The MKUKUTA Annual Implementation Report 2006/07 (MAIR) is an output of the Government’s monitoring system.
- Objective: contribute to the overall Government reporting system that includes output reporting by MDAs, LGAs and non-state actors implementing MKUKUTA activities.
- Report basis: analysis of progress at goal level and overview of performance, challenges, lessons learned, and next steps within each MKUKUTA cluster.
- Purpose: inform stakeholders on progress in MKUKUTA implementation and associated processes, stimulate dialogue on key issues, and inform subsequent planning, budgeting and implementation.

### 1.2. Growth and Reduction of Income Poverty — Key Findings
- Macroeconomic and policy context:
  - Ongoing reforms, sound monetary policy, National Debt Strategy, financial sector reforms, investment promotion, employment generation, export promotion, infrastructure and human resource development, expansion of irrigation schemes, and provision of agricultural credit and inputs to small holders contributed to outcomes.
- Output and growth:
  - GDP growth: 6.2 percent in 2006 compared to 6.8 percent in 2005.
  - Primary drivers of the 2006 slowdown: drought and energy crises; agriculture, manufacturing, electricity and water sectors most affected.
- Trade and external sector:
  - Total exports of goods and services: US$ 3,133.1 million in 2006 from US$ 2,945.5 million in 2005.
  - Export growth mainly contributed by mineral and service exports (including earnings from tourism).
  - Trend in export earnings as percentage of GDP: marginal decrease from 22.2 percent in 2005/06 to 21.9 percent in 2006/07, but trend on the increase overall.
- Fiscal and financial indicators:
  - Government domestic revenue collection (tax and non tax revenue) as a percentage of GDPmp: increased to 15.6 percent in 2006/07 from 14.3 percent in 2005/06.
  - Domestic credit to private sector: increased from 11.0 percent of GDPmp in 2005 to 12.5 percent in 2006.
- Debt and reserves:
  - External debt stock in the year under review: estimated at US$5,749.0 or about 35percent of GDP compared to 50 percent of GDP as MKUKUTA requires.
  - External debt equals 80.0 percent of the total national debt stock.
  - Official foreign reserve: equivalent of 5.3 moths of import compared to 6 months of import in 2005.
  - Reasons for reserve decline: (i) increased import bills caused by increased petroleum prices, (ii) increase in importation of capital goods, (iii) increases in importation of foodstuffs in response to the drought.
- Sectoral performance:
  - Manufacturing sector growth: 8.6 percent in 2006 compared to 9 percent in 2005; decline explained by power crisis and increase in price of industrial oil.
  - Agricultural sector growth: 4.1 percent in 2006 due to drought.
    - Crop sub-sector: grew by 4.0 percent in 2006 compared to 5.2 percent in 2005.
    - Livestock sub-sector: grew by 4.1 percent in 2006, against MKUKUTA targets of 9percent by 2010.
  - Mining sector growth: increased from 15.7 percent in 2005 to 16.4 percent in 2006.
    - Contribution of mining to GDP: increased from 3.5 percent in 2005 to 3.8 percent in 2006.
- Informal sector and SMEs:
  - Share of labor force employed in the informal sector: increased from 5.3 percent in 2000/01 to 9.3 percent in 2005/06.
  - Government continues to promote the sector via informal sector exhibitions for East African Countries and demand driven skills programs.
- Infrastructure:
  - Council roads scheduled for rehabilitation: 13,353km.
  - Council roads rehabilitated by April 2007: 3,181km.
  - Trunk and regional roads in good and fair conditions: increased from 51 percent in 2000 to 78 percent by December 2006.
- Food security:
  - Food crop production: 10.9 million tones in 2005/06.
  - Food Self Sufficient Ratio (SSR): 112 percent, in line with MKUKUTA targets.

### 1.3. Improved Quality of Life and Social Well Being — Key Findings
- Results reflect government and other actors’ programmes in education, water, health and social protection.
- Education:
  - Government committed to expanding access to and quality of education at all levels with focus on basic and secondary education.
  - Emphasis: expansion in educational facilities and access should go hand in hand with maintenance of quality.
  - Most indicators in education have registered considerable improvements.
  - Reported enrolment indicators (partially cited): Gross Enrolment Ratio and Net Enrolment Ratio of both boys and girls including children with disabilities at primary schools increased from 114.4 percent and 96.1 percent in 2006 to 114.4 percent and [text truncated in source].
- Other social sectors:
  - Observed results associated with programmes implemented in water, health and social protection; detailed goal-level results are presented in the main report.

### 1.4. Governance and Accountability — Overview (as presented in contents)
- Governance and accountability issues, reforms and sector reviews are covered under CHAPTER FOUR in the report (detailed performance, progress, status of reforms, challenges, lessons and way forward appear in chapters and annexes).

### 1.5. MKUKUTA Financing — Overview (as presented in contents)
- MKUKUTA financing, resource mobilization, allocation, budget consistency, MKUKUTA structure and the budget, budget execution and reporting mechanisms are addressed in CHAPTER FIVE (detailed status and analyses in main report).

### 1.7. Key Issues and the Way Forward (as presented in contents)
- The report identifies key issues and proposes next steps within each MKUKUTA cluster; detailed issues and actions are presented in CHAPTER SEVEN and concluding sections (including specific issues for Growth and Poverty Reduction, Social Wellbeing and Quality of Life, Governance and Accountability, MKUKUTA Financing, and Monitoring and Evaluation).

* _cr0822 - EXECUTIVE SUMMARY ......................................................................................................_

### 97.3 percent in 2007 respectively.

### _cr0822 - 97.3 percent in 2007 respectively.

### Health outcomes
- Mixed performance in health outcomes.
- Infant and under-five mortality rates exhibited a substantial decline (no numeric values provided).
- Maternal mortality increased from 529 per 100,000 live births (1996 DHS) to 578 per 100,000 live births (2004/05 DHS). This increase has been partly attributed to the impact of the HIV and AIDS pandemic.

### Water and sanitation
- Modest progress over the last two years.
- Rural clean and safe water supply: increased from 53.5 percent in 2005/06 to 55.7 percent in 2006/07.
- Urban clean and safe water supply: increased from 73 percent in 2005/06 to 78 percent in 2006/07.

### Social protection (NMSPF) and vulnerable groups
- MKUKUTA emphasizes need for a social protection policy framework to prevent population falling into poverty and vulnerability.
- The National Multi-sectoral Social Protection Framework (NMSPF) aims to guide coordination, implementation, management, harmonization, funding and sustainability of social protection interventions.
- NMSPF prioritizes less economically active households/individuals and those unable to address shocks or risks associated with poverty and vulnerability. These groups include children and young people, women, people with disabilities, the elderly and People Living with HIV and AIDS (PLWHA’s).

### Quality and affordability of public services; accessibility
- Preliminary information: 86 percent of rural communities spent 30 or fewer minutes to reach the nearest road passable throughout the year.
- Communities in Dar es Salaam and other urban areas are closer to health services than rural counterparts:
  - 93 percent in Dar es Salaam use 30 minutes or less to reach the nearest dispensary or health center.
- Community-level accessibility to nearest health center or dispensary by area:
  - Rural areas: 69 percent report 30 or less minutes.
  - Other urban centers: 90 percent report 30 or less minutes.
  - Dar es Salaam: 93 percent report 30 or less minutes.

### Governance and accountability
- Representation and gender equity improved:
  - Proportion of women in decision making positions at Central government: 26.8 percent in 2005 and 29.1 percent in 2006 (MKUKUTA target: 30 percent).
- Rule of law measures:
  - Government decreed clause providing for ruling of cases within 90 days after completion of hearing.
  - Ruling of land cases: 32 percent.
  - Ruling of human right cases: 70 percent.
- Anti-corruption and oversight:
  - Number of cases reported by PCCB increased from 1,244 in 2000 to 3,121 in 2005.
  - Government strengthened National Audit Office (NAO), the Public Procurement Act and procedures.
- Improvements and outputs in justice and specialized courts:
  - Commercial Court disposed 140 commercial disputes out of 153 in 2006.
  - Land Court disposed 476 out of 787 land disputes in 2005/06 and 612 out of 1915 in 2006/07.
- Police-recorded crime incidence:
  - Reported number of incidences of crime at Police Stations declined by about 17 percent in year 2006 compared to year 2005.
- Constraints in governance and justice:
  - Notice boards often inaccessible (located in district headquarters).
  - Data gaps on Certificates of Customary Rights of Occupancy.
  - Inadequate infrastructure, human resources and capacity building.
  - Ongoing challenges in legal reforms and judiciary improvement, skills development, human rights understanding, monitoring, and provision of modern technology and equipment for dissemination and sensitization.

### Local government financing and service delivery
- Application of formula-based allocation under Local Government Capital Development Grant (LGCDG) increased resources flowing to LGAs up to 19.7 percent (2007/08) compared to 16.1 percent during 2006/07 financial year.
- Government focusing on gauging judicial efficiency for vulnerable groups, backlog reduction, case screening and prosecution process improvements.
- Strategies applied include capacity enhancement of the Commission for Human Rights, stakeholder awareness, NGO capacity building on monitoring/reporting human rights abuse, and collaboration with regional/international human rights agencies — resulting in more complaints received and resolved.

### MKUKUTA financing — allocations, mobilization, and execution
- Development partners' budget support:
  - From Tshs 1,030 billion in the first two years of PRS to Tshs 3,090 billion in the first two years of MKUKUTA implementation.
- Domestic revenue collection:
  - From Tshs 1,973 billion in the first two years of PRS to Tshs 4,897 billion in the first two years of MKUKUTA implementation.
- Approved budget to implement MKUKUTA in 2006/07: 48 percent of the total budget allocations; remaining 52 percent for projects and programs not directly linked to MKUKUTA targets and outcomes.
  - Components of the 52 percent (2006/07 total budget): Wages and Salaries 18 percent, LGAs 12 percent, and CFS 10 percent.
- Distribution of MKUKUTA intervention budget:
  - 46 percent for Cluster 1.
  - 36 percent for Cluster 2.
  - 18 percent for Cluster 3.
- Government working on establishing actual expenditure for 2006/07 derived from IFMS based on MKUKUTA clusters.
- Preliminary analysis of actual releases for FY 2006/07: disbursement satisfactory with deviations from initial allocations due to reallocation to more priority areas in response to power crisis experienced in first half of 2006/07, food shortages, oil prices and increasing domestic interest payments.
- Improvements in budget reporting and transparency linked to Public Finance Act of 2001 and government accounting procedure manuals.
- Government developing a framework for MKUKUTA-based analysis of budget execution results to be reported through BERs; interim policy link assessed via consistency between SBAS-based allocations and actual expenditures (budget variations) and impacts on poverty through MKUKUTA Monitoring System.

### MKUKUTA financing — remaining challenges (numbered as in source)
1. To concretize and integrate the non state actors’ contribution in poverty reducing efforts. Integration of private sector and civil society interventions in planning is needed; stakeholders to be encouraged to share information in next MKUKUTA implementation report.
2. Resources generated for MKUKUTA implementation are not sufficient to cover adequately earmarked interventions. Resource mobilization remains central; Government will seek ways to increase domestic tax and non – tax revenues and encourage development partners to increase contributions.
3. Existing system fails to match complexities introduced by multiple channels of funding programs at district levels. Need to rationalize funds flow and ensure transparency; instituting classification and reporting mechanisms for comprehensive fiscal information will be prioritized.
4. Foreign resources predictability remains an issue: unpredictability and delay in capturing information related to development funds (most donor financed) against approved estimates.
5. Need for guidance on level of detail in initial budget submissions by MDAs to avoid highly detailed (activity) submissions lacking a strategic framework.
6. Need to improve connectivity between budget and program documents, and coordination and authority between budget and program officers within MDAs.

### Monitoring and evaluation — systems, coordination, and surveys
- MKUKUTA Monitoring System implementation status covers period from 2005/06 and 2006/07 (2005/06 was a transition year).
- MKUKUTA Secretariat (2005/07) coordinated review of Poverty Monitoring System and development of MKUKUTA Monitoring System; challenges include strengthening Management Information Systems of MDAs and LGAs to improve data quality and frequency.
- Secretariat facilitated Technical Working Groups (TWGs) and Technical Committee; annual calendar of meetings agreed in early 2006.
- Secretariat achievements: strengthened communication and networks between Secretariat and stakeholders; coordinated harmonization of planning, budgeting and reporting; developed Medium Term Strategic Planning, Budgeting and Reporting Manual; coordinated development of Multi Sectoral Social Protection Framework.
- Research and Analysis TWG outputs (2005-07):
  - Production of third Poverty and Human Development Report, including policy briefs in English and Kiswahili.
  - MKUKUTA Status Report (2006) prepared based on revised MKUKUTA indicators.
  - Coordination of Views of the People Study and open policy dialogue sessions.
- Survey and Routine Data TWG outputs:
  - Development of Tanzania Statistical Master Plan (TSMP).
  - Analysis of Agriculture Sample Census (2002/03) being finalized; outputs include Crop Report, Livestock Report, Technical Report, Household conditions and Access to natural Resource Report.
  - Printing of Regional Level 2003 Reports for Tanga, Dodoma, Morogoro, Iringa and Mara finalized; remaining 16 Regional reports and two national level reports (Large Scale Farms Report, and Gender Profile of the Agricultural Sector) to be completed by September 2007.
  - 2006 Integrated Labor Force Survey (including Child Labor and Time-use modules) is ongoing.
- Other ongoing or planned surveys and data activities:
  - Tanzania Service Provision Assessment Survey (TSPA),
  - 2007 Household Budget Survey (HBS),
  - National Panel Survey (NPS) (still in design stage),
  - Tanzania Disability Survey (implementation planned for financial year 2007/08; planning and preparations done),
  - Tanzania HIV/AIDS and Malaria Indicator Survey (THIS) (preparatory activities done in 2006/07),
  - 2007 Business Survey,
  - Distributive Trade Survey (DTS) (implementation started in 2006/07).
- Communication TWG activities: creating awareness on MKUKUTA framework and implications of major findings to foster stakeholder dialogue and support implementation.

### Progress on harmonization initiatives
- 2006/07: Inter Ministerial Taskforce on Planning, Budgeting and Reporting formed comprising staff from Ministry of Planning, Economy and Empowerment (MPEE), Prime Minister’s Office - Regional Administration and Local Government (PMO-RALG), President’s Office - Public Service Management (PO-PSM) and Ministry of Finance (MoF) to rationalize and harmonise government reporting, monitoring and evaluation approaches.
- Notable progress: rationalization of planning, budgeting, monitoring and reporting processes documented in Medium Term Strategic Planning, Budgeting and Reporting Manual (MTSPBR) produced by Government in 2005.
- Government will continue harmonization of M&E systems and institutionalize M&E functions within MDAs and LGAs to link with MKUKUTA monitoring system.

### Key issues and the way forward
- Need for further examination and strengthening of linkages between sectors within each cluster to inform cluster-level discussions.
- Strengthen processes for prioritization, sequencing and checking consistency between interventions and MKUKUTA expected outcomes.
- Scale up implementation modalities and capacities through community involvement and public-private partnerships.
- Specific priority issues include:
  - Economic infrastructure,
  - Enhancing agriculture sector performance and promoting more agro-processing,
  - Exploring alternative sources of energy and rural roads,
  - Impact of HIV/AIDS,
  - Unplanned settlements in urban centers,
  - Attention to vulnerable groups and Human resource crisis,
  - Inclusion of other players in MKUKUTA implementation report,
  - Monitoring and Evaluation improvements.

### Background and purpose of the report
- The MKUKUTA Annual Implementation Report (MAIR) is an output of the Government’s monitoring system to contribute to overall Government reporting on progress, including output reporting by MDAs, LGAs and non-state actors implementing MKUKUTA activities.
- MAIR 2006/07 is based on analysis at goal level and provides overview of performance, challenges, lessons learned, and next steps within each MKUKUTA cluster; reporting uses operational targets and both quantitative and qualitative information.
- The Poverty Eradication Division, MPEE coordinated MAIR production with MDAs, LGAs, research institutions and Non State Actors; MKUKUTA Technical Committee provided overall oversight.
- Purpose and objectives of the report include:
  - Assess progress against Government priorities of economic growth and reduction of poverty as identified in MKUKUTA;
  - Generate information to organize sector interventions into a consistent implementation strategy;
  - Stimulate dialogue on prioritization, sequencing of interventions, and resource mobilization and utilization;
  - Identify options for scaling up investment to achieve MKUKUTA goals and targets;
  - Provide inputs for national budget process including Plan and Budget Guideline and Budget Formulation.

*Source: _cr0822 - 97.3 percent in 2007 respectively.*

### 1.4 Harmonization and alignment of key national processes and MAIR

### _cr0822 - 1.4 Harmonization and alignment of key national processes and MAIR

### Harmonization and alignment of key national processes
- The government, in collaboration with key stakeholders, has pursued harmonization and alignment of key processes on policy planning and budgeting.
- Harmonization and alignment agenda has included monitoring and reporting as well as harmonization of external flows with priorities in national development objectives.
- The principles of development partnership relating to harmonization and alignment of aid modalities have been articulated in several documents including: Independent Monitoring Group report, PER Evaluation Reports, Tanzania Assistance Strategy (TAS) and Joint Assistance Strategy for Tanzania (JAST).
- The current MKUKUTA Annual Implementation Report (MAIR) takes forward the harmonization agenda, including progress made so far and challenges ahead, and recognizes opportunities arising from harmonization and alignment of key national development processes.

### Organization of the report (Section 1.5)
- Chapters TWO, THREE, and FOUR present the implementation of MKUKUTA Cluster I, II and III, respectively.
- Chapter FIVE provides a review of overall fiscal performance and strategic resource allocation, covering resource mobilization, budget preparation, execution, reporting and transparency, and articulates recommendations for moving forward.
- Chapter SIX reviews the implementation of the monitoring and evaluation process as per the MMMP, including what has worked, what has not worked, reasons, lessons learned and recommendations; it concludes by focusing on harmonization with the objective of strengthening reporting on MKUKUTA Implementation using RIMKU.
- Chapter SEVEN provides a summary of key issues and actions for going forward, taking on board achievements, challenges and lessons learned in implementation of all Clusters of MKUKUTA and the Reporting and Monitoring mechanism, financing and resource allocation; it ends by articulating considerations for sector reviews and the PER process.

### Scope and limitations of the report (Section 1.5)
- The MAIR aspired to report on expenditure, activities, output and impact on outcomes (planned activities, resources committed and used, implemented activities and delivered outputs), but MAIR 2007 does not meet all these expectations.
- A key limitation: although budgetary allocation has been aligned to MKUKUTA, current budget execution reporting is not fully aligned with MKUKUTA strategic goals and outcomes, making it difficult to obtain budget out-turn information classified according to MKUKUTA.
- The reporting problem is expected to be significantly reduced as budget execution reporting mechanisms (RIMKU, IFMS, PlanRep, etc.) are adjusted to interface with one another.
- Other limitations: missing data on some indicators that are not produced routinely; monitoring system yet to produce outcome indicators in areas such as culture. Nevertheless, activities and processes bearing on these areas have been reported.

### Overview of CHAPTER TWO: Growth and reduction of income poverty
- Chapter TWO provides an overview of performance under Cluster I of MKUKUTA (broad outcome: “broad-based and equitable growth is achieved and sustained”), organized by six goals with operational targets; the assessment covers activities, outputs, outcomes, challenges and lessons learned.
- Premise: adequate economic growth is a major and necessary condition for poverty reduction as it impacts household incomes and government revenue for social services.

### Main achievements under MKUKUTA Cluster I
- High real GDP growth.
- Improved collection of domestic revenue and revenue services.
- Improved export earnings and external resource flow.
- Improved trunk and regional road conditions.
- Improved food self sufficiency ratio.
- Financial sector reforms and domestic resource mobilization policies strengthened monetary and fiscal performance, improving resource allocation for growth and poverty reduction.
- Improved control of public expenditure through use of IFMS.

### Goal 1 — Ensuring sound economic management (targets and indicators)
- Two targets: Maintain Macroeconomic Stability, and Reduction in Unemployment.
- Operational targets include:
  - inflation rate at maximum of 4 percent;
  - maintaining official foreign reserves of at least six months of imports;
  - achieving debt sustainability (containing the external debt to GDP ratio at 50 percent or less).
- Indicators used: annual rate of inflation; Central Government revenue as percent of GDP; fiscal deficit as percent of GDP (before and after grants); external debt service as percent of exports; export as percent of GDP; reduced unemployment from 12.9 percent in 2000/01 to 6.9 percent by 2010; address underemployment in rural areas.

### Goal 1 — Performance (selected findings)
- Total exports of goods and services grew by 6.4 percent to US$ 3,133.1 million in 2006 from US$ 2,945.5 million in 2005.
- Imports increased by 28.9 percent due to large import bills for foodstuff and oil.
- Export growth contributors: mineral and service exports (including earnings from tourism); export development strategy aims to increase quantity and quality of exports through processing and preferential windows (AGOA and EBA).
- Government domestic revenue collection (tax and non tax revenue) increased to 15.6 percent of GDP in 2006/07 from 14.3 percent in 2005/06.
- Domestic credit to private sector increased from 11.0 percent of GDP in 2005 to 12.5 percent in 2006 (a 1.5 percentage increase, above MKUKUTA target of one percent per annum).
- Foreign Direct Investment (FDI) flows: slight decline in the year under review; Tanzania moved in Ease of Doing Business ranking from 150th in 2005 to 142nd in 2006.
- Annual rate of inflation in the year to June 2007 was 5.9 percent (above target of 4 percent per annum).
  - Contributing factors: drought affecting food crop production and increase in petroleum price (raising transport and thermal electricity generation costs).
- Broad money supply (M2) grew by 13.5percent in 2006 compared to 36.9percent in 2005.
- National external debt stock in the year under review was estimated at US$5,749.0 or about 35percent of GDP compared to 50 percent of GDP as MKUKUTA requires.
  - Debt service as percentage of exports of goods and service declined from 4.4 percent in 2005 to 2.3 percent in 2006.
  - The total external debt is equivalent to 80.0 percent of the total national debt stock.
  - Government now borrows only on concessional terms as stipulated in the National Debt Strategy, directing such loans to capacity building, investment promotion and employment generation, improving government domestic revenues, export promotion, infrastructure and human resource development.
  - Footnote in source: GDP of US$ 16,520 mil. at an exchange rate of TShs 1250/US$.
- Official foreign reserves: as of 2006/07 reserves equated to 5.3 months of import compared to 6 months of import in the year before.
  - Reasons for decline: increased petroleum import bills; increased importation of capital goods; increased importation of foodstuffs due to drought.
  - Export earnings as percentage of GDP marginally decreased from 22.2 percent in 2005/06 to 21.9 percent in 2006/07.
- Unemployment: ILFS 2006 unemployment rate was 11 percent (target: 6.9 percent by 2010; base 12.9 percent in 2000/01).
  - Unemployment by area: Dar es Salaam 31.4 percent; other urban areas 16.3 percent; rural areas 7.1 percent.
  - Active population (labor force) rose to 20.6 million from 17.8 million in 2001/02 (average annual increase of 760,000).
  - FY 2005/06 employment distribution (out of 18.3 million employed): 76.5 percent in agriculture (compared to 84.2 in 2000/01); 9.3 percent in informal sector (compared to 5.3 percent in 2000/01); 8.0 percent in private formal sector (compared to 2.4 percent in 2000/01); 3.5 percent in domestic work (compared to 3.1 percent in 2000/01); 2.4 percent in government (compared to 2.2 percent in 2000/01); 0.4 percent in parastatals (compared to 0.5 percent in 2000/01).
  - As of December 2006, about 201,000 new employment opportunities were recorded from various sectors; private sector leading in new employment creation.
  - Interventions: Labor Based Technology Unit (Ministry of Infrastructural Development) operational to increase jobs via road construction; 27,244 enterprises given loans through National Empowerment Funds; expansion and strengthening of Labor Exchange Centers; establishment of Cross-Border Placement Services Section in the ministry responsible for labor.
  - National Service provided initial artisan and life skills training: totals under National Service during FY 2005/06 and 2006/07: 3,374 and 2,454 youths respectively (see Goal 2 for related figures).
  - Defense forces continued to protect sovereignty and national security, contributing to stability necessary for socio-economic development.

### Goal 2 — Promoting sustainable and broad based growth (targets and performance)
- Goal 2 has 11 operational targets; some indicators are not routinely generated at reasonable frequencies.
- GDP Growth:
  - Target: annual real GDP growth between 6-8 percent.
  - Real GDP has been growing at an annual average of 6.0 percent over the past seven years (above Sub-Saharan average); growth was 6.2 percent in 2006 compared to 6.7 percent in 2005.
  - Decline in 2006 mainly attributable to drought and energy crises affecting agriculture, manufacturing, electricity and water sectors.
- Manufacturing sector:
  - Target: increase growth from 8.6 percent in year 2000 to 15 percent by 2010.
  - Registered growth: 8.6 percent in 2006 compared to 9 percent in 2005.
  - Contribution to GDP rose from 9 percent in 2005 to 9.2 percent in 2006.
  - Agro-processing: 4,280 new jobs created in 61 newly licensed crop-processing firms between January 2006 and June 2007.
  - National Service programme: during FY 2005/06 and 2006/07 a total of 3,374 and 2,454 youths respectively were provided with initial training in artisan skills and related life skills.
- Agricultural sector:
  - Target: grow from 5 percent to 10 percent by 2010.
  - Growth: agricultural sector grew by 4.1 percent in 2006 (crop sub-sector grew by 4.0 percent in 2006 compared to 5.2 percent in 2005).
  - Constraints: heavy reliance on poor technology and low access to credit (Agricultural Sample Census Survey 2002/03: only 3.0 percent of total small holder area under irrigation; only 3.0 percent of small holders accessed formal credit for agricultural purposes).
  - Interventions: expansion of irrigation schemes and provision of agricultural credit and inputs to small holders; Agricultural Sector Development Program (ASDP) implemented through DADPs, AMSDP, DASIP, PADEP.
  - Irrigation: 9,557 hectares of irrigated area developed in 2006 compared to 14,396 hectares in 2005; total area under irrigation reached 273,945 hectares compared to 264,388 hectares during the period under review (increase due to construction and rehabilitation of 111 irrigation schemes).
  - Fertilizer subsidy: about 89,941 tones of fertilizers procured under the subsidy arrangement were sold to farmers in 2006/07 (concerns that scheme benefits middle business-persons more than target smallholder farmers).
- Livestock sub-sector:
  - MKUKUTA target: 9percent by 2010.
  - Growth: 4.8 percent in 2004; 4.1 percent in 2006.
  - Constraints: drought and outbreak of Rift Valley Fever (RVF) reduced consumption and trade of livestock and products.
  - Policy and legislation: livestock policy of 2007 prepared; Meat Industry Act. No. 10,2006 enacted (effective May 2007); drafting of Animal Welfare Bill and Hides and Skins Bill underway; livestock components of ASDP implemented.
- Mining sector:
  - MKUKUTA target is to increase export proportion of value added minerals (further details in source beyond provided excerpt).

*Source: _cr0822 - 1.4 Harmonization and alignment of key national processes and MAIR*

### 0.5 percent to 3.0 percent by 2010.  So far there are no data for the indicator, but it is noted that

### _cr0822 - 0.5 percent to 3.0 percent by 2010.  So far there are no data for the indicator, but it is noted that

### Mining sector
- Growth in the mining sector, including quarrying, increased by 0.7 percentage point from 15.7 percent to 16.4 percent in 2006.
- Contribution of the sector to GDP increased from 3.5 percent in 2005 to 3.8 percent in 2006.
- Value of mineral exports increased by 15.8 percent in 2006 to US$ 823.9mil from US$ 711.3mil in 2005, mainly due to increase in the price of gold in the world market.
- Volume of gold exports declined by 11 percent to 42.7 tons in 2006.
- Little improvement in value addition through processing is implied by the rise in export value but decline in export volume.
- Government interventions:
  - Upgrading Gemstone Carving Center in Arusha to be a training center for jewelry and gemstone crafts.
  - Establishment of Mining Cadastre Information Management System providing data on location, ownership, and estimated mineral potentials.
  - In small-scale (artisanal) mining: plot demarcation approved for 4,1666 licenses under new licensing arrangement out of 5,800 licenses issued under older arrangement.
  - 549 new licenses for small-scale miners were issued in the period under review.

### Scaling-up the informal sector and SMEs
- ILFS 2006 results: share of labor force employed in the informal sector increased from 5.3 percent in 2000/01 to 9.3 percent in 2005/06.
- Government promotion measures include informal sector exhibition for East African Countries and demand-driven skills programs.
- Specific small-scale mining licensing actions noted above (4,1666 demarcated licenses; 549 new licenses).

### Road sector
- MKUKUTA target: repair 15,000 km of rural roads annually by 2010 from 4,500 km in 2003.
- Council roads: 13,353 km scheduled for rehabilitation; by April 2007 a total of 3,181 km of council roads had been rehabilitated.
- Trunk and regional road condition improved: percentage of trunk and regional roads in good and fair conditions increased from 51 percent in 2000 to 78 percent by December 2006.
- Fiscal-year developments:
  - National/trunk roads: 318 KM tarmac roads constructed; 78 Km of tarmac roads rehabilitated; 153.5 KM of gravel roads rehabilitated.
  - Regional roads: 368 km of gravel roads and 15 km of tarmac road rehabilitated.
- Preliminary 2007 HBS result: developments in the road sector have increased market accessibility.
- Government completed preparation of Transport Sector Investment Program (TSIP); one goal is to ensure all national (trunk) roads are paved (tarmac) by 2018.
- Fuel levy adjusted in June, 2007 to generate more resources for existing road network maintenance.
- Roads Act 2007 approved by Parliament in April 2007; preparations for implementing regulations in progress.

### Impact on environment: land and biodiversity
- Operational targets: Reduced negative impacts on environment and peoples’ livelihoods and reduced land degradation and loss of biodiversity.
- Government measures:
  - Short-term ban on trade of exporting logs, sandalwood, charcoal and sleepers contributed to decline in logging activities.
  - 2006 harvested logs: 5,117,063 cubic meters; 2005 harvested logs: 5,867.48 cubic meters.
  - Ban on use of plastic bags with thickness not exceeding 30 microns.
  - Formulation of action plan for implementation of Environmental Management Act.
  - Drafting of regulations related to land management including tree planting, and establishment of Village Land Forest Reserves.
  - Regulations on Environment Impact Assessment, environmental inspectors and registration of environmental experts.
  - Establishment of Environmental Grant under Urban Development Program.
  - Support for Participatory Forest Management initiatives in 29 districts in eight regions.
  - Protection and management interventions showing gains in Eastern Arc and Coastal Forest eco-region.
  - Strategy for Urgent Actions on Land Degradation and Water Catchments (SUA-LWC) in place; under SUA-LWC eviction of people from Ihefu basin/valley led to restoration of natural vegetation, increased water flows to the Ruaha River, and increased water level in the Mtera dam.
- Continued need for improved environment management at district and community level.

### Goal 3 — Improved food availability and accessibility at household level
- MKUKUTA operational targets:
  - Increased food crops production from 9 million tons in 2003/04 to 12 Million tons in 2010.
  - Maintained Strategic Grain Reserve of at least 4 month of national food requirement.
- Performance:
  - 2005/06 food crop production reached 10.9 million tones.
  - Resulting food Self Sufficient Ratio (SSR) of 112 percent in 2005/06; projected SSR of 109 percent in 2007/08.
  - Proportion of districts with food shortage increased from 15% in 2001/02 to 50% in 2006/07; projection for 2007/08 shows a decline to 17% of all districts.
  - Five regions projected to have food shortage: Tabora, Singida, Kilimanjaro, Arusha, and Dar es Salaam.
  - SGR purchased and stocked 27,500 tones of cereals during the year under review (noted as low compared to MKUKUTA target of SGR stock of 4 months of national food requirement).
- Implemented activities for food security:
  - Four major food production and situation surveys.
  - Training on post harvest management technologies for food crops; radio and TV programs.
  - Drafting of the National Food Security Strategy.
  - Strengthening data collection and analysis on weather and food situation for early warning.
  - Substantial expansion in areas under irrigation to reduce dependency on rain-fed agriculture.

### Goals 4 & 5 — Reducing income poverty (Urban and Rural)
- Data limitations:
  - Basic indicators require HBS data; HBS 2006/07 underway.
  - Lack of intermediate-year poverty measures due to infrequent HBS.
- Proxy measures and performance:
  - Agricultural GDP grew by 4.1 percent in 2006 against the target of 9 percent by 2010.
  - Given population growth rate of 2.9, implied per capita rural income increase was 1.2 percent.
- Government interventions to boost incomes:
  - Drafting of agricultural marketing policy planned for completion in 2007/08.
  - Programs: Rural Financial Services Program; National Entrepreneurship Development Funds; Rural Micro, Small and Medium Enterprises Support Programme (MUVI) coordinated by MITM through SIDO; components of TASAF II.
  - Beekeeping interventions: intensive training in best practices; community based organizations contracted to manage resources; about 90 district licensing committees facilitated to undertake forestry harvesting plans countrywide.
- Legal and regulatory framework enforcement: Environmental Management Act, Forest Act, Beekeeping Act, Fishery Act, Wildlife Act.
- Positive impact of reforms noted; gaps remain in sharing of forest revenue in participatory forest management (PFM) arrangements.

### Goal 6 — Provision of reliable and affordable energy to consumers
- Operational targets:
  - Liberalization of the power sub-sector effected by 2010.
  - At least three (3) Production Sharing Agreements (PSA) negotiated, concluded and signed by June 2010.
- Performance:
  - Three PSAs were negotiated and concluded from January to August 2007, making 19 PSAs so far concluded and operational by the end of August 2007.
  - Establishment of a website for information on petroleum existing and potential stocks.
- Energy sector challenges and statistics:
  - 2006 characterized by power shortage and high crude oil and petroleum product prices.
  - Growth rate of electricity sub-sector declined to -2.5 percent in 2006, compared to 5.3 percent in 2005.
  - Hydropower generation dropped from 561 MW in 2005/06 to 260 MW in 2006/07.
  - Government initiated load-shedding program due to severe electricity shortage.
- Government responses and initiatives:
  - Implementing emergency power generation projects.
  - Feasibility study on seismic data to establish availability of gas and petroleum.
  - Collaboration with Artumas Company and drilling of two exploratory wells at Mnazi Bay (Mnazi Bay 2&3) in Mtwara Rural District.
  - Finalized drafting of rural electrification master plan.
  - Signed two agreements for production of electricity and secured funds for electrifying remaining district headquarters.
- Energy sector review actions:
  - Preparation of Power Master Plan (costed and prioritized).
  - Progress on TANESCO financial recovery plan and governance, including study on standardized Power purchase Agreement and Tariffs for off-grid renewable energy schemes, and drafting of electricity Act.

### Status and progress of sector reviews
- Purpose and objectives of sector reviews:
  - Provide deeper understanding of critical linkages between sub-sector policies, strategies, plans, laws and regulations.
  - Identify major achievements, gaps, issues and challenges.
  - Focus on planning and budgeting problems and provide recommendations.
  - Discuss stakeholder contributions to effective policy dialogue with Government.
  - Improve monitoring of progress in line with MKUKUTA’s outcome based approach.
  - Provide inputs to guide sector policy guidelines and strategic plans.
- Cluster I and II sector review activities undertaken during review period include Transport, Roads and Communication, Energy and Agriculture.
- Transport Sector Review:
  - Preparation for Joint Infrastructure Sector Review (Transport, roads and Communication) finalized for September, 2007.
  - TSIP preparation covering all sub sectors finalized and aligned with Medium Term Expenditure Framework 2007/08 – 2008/09.
  - TANROADS performance improved in absorptive capacity, maintenance performance and road conditions.
- Energy Sector Review:
  - Preparation at advanced stage; stakeholder review scheduled for October 2007.
  - Progress on Power Master Plan and TANESCO recovery measures as noted above.
- Agriculture Sector Review (ASR):
  - 2006 ASR reviewed 2001–2005; agriculture sector growing at average annual rate of almost 5 percent during that period.
  - Annual aggregate economic growth rates exceeded population growth rate of 2.9 percent, leading to positive poverty reduction.
  - Private sector investments in agriculture expanded and increased job creation.
  - ASR recommended strategic options:
    - Improving producer incentives;
    - Developing new sources of agriculture growth;
    - Increasing farm productivity;
    - Improving agribusiness and processing;
    - Enhancing participation of rural poor in agriculture growth;
    - Improving agriculture sector investment climate;
    - Improving public expenditure management in the agriculture.
  - Initiatives: Draft National Food Security Strategy; preparations for ASR (including PER and ASDP performance review); amendments of legislation for all crops boards; special studies on SGR, input Trust Fund and input subsidies; draft Agricultural Extension Implementation Guideline.

### Employment and financial sector reforms
- Employment:
  - National Employment Policy (1997) revised.
  - National Employment Creation Strategy and Program to ensure target of creating 1,000,000 new jobs by 2010.
  - Preparations started for Employment Promotion Service Bill (2007) and review of National Labor Law Phase II; Implementation of Labor Law Reform Phase I started.
- Financial sector:
  - Second generation financial sector reforms through Financial Sector Reform Implementation Action Plan (FSIAP) adopted by government in March, 2007.
  - Laws governing Bank of Tanzania and other Banking and Financial Institutions revised to enhance supervisory role and financial sector responsiveness.
  - Draft Leasing and Mortgage laws under stakeholder discussion.

### Challenges
- Main challenge: translating macro-level achievements into sustainable development at grassroots level and ensuring gains from growth reach poor households.
- Need to strengthen meso-level mechanisms (policies, legal frameworks, institutions) to facilitate micro-level responses.
- Economy dependent on few exports; export earnings not increasing significantly.
  - Underutilization of market access opportunities: EBA, GSPS (China and Canada), AGOA and EPZs; EPA negotiations ongoing until December.
  - Need to diversify exports and meet international market standards.
  - Low export earnings relative to import bill causing significant negative trade balance.
- Energy challenges: unreliable hydro supply in last two years; need to reduce dependency on hydro energy and develop alternative electricity sources; challenge to reach rural dwellers at reasonable and affordable cost.
- Economic growth rate still low relative to MKUKUTA target; current growth insufficient for substantial poverty reduction given population growth of about 3 percent per year.
- Rural growth challenges tied to agriculture: rain-fed dependency; low productivity of land and labor inputs; underdeveloped irrigation potentials; limited capital and access to financial services; inadequate agricultural technical support services; poor rural infrastructure hindering rural-urban linkages; pest/infestation issues implied.

*Source: _cr0822 - 0.5 percent to 3.0 percent by 2010.  So far there are no data for the indicator, but it is noted that*

### 2007. Likewise, SEZs are yet to be realized as a market opportunity.

### _cr0822 - 2007. Likewise, SEZs are yet to be realized as a market opportunity.

### Agriculture, natural resources, and rural livelihoods: performance and challenges
- Constraints identified: outbreaks of crop and animal pests and diseases; erosion of natural resource base and environmental degradation; weak producers’ organizations; poor coordination; limited technological capacity.
- Natural resources sector: limited gains in southern highlands, miombo forest in Tabora and southern Tanzania; development of forest based industries and sustainability of livelihoods limited partly due to substantial under funding and lack of mechanisms or studies to capture the private sector contribution in the implementation of National Forest Program.
- Revenue observations: increases in revenue collection from the natural resource sector come from impounding and sales of illegal harvests of natural resources.
- Rural non-farm activities: promising for increasing rural employment, especially in food processing and service sectors, where roads, electricity and communications reduce transaction costs.
- Livestock sector: need to facilitate provision of services required to improve production and productivity and ensure reliable domestic and external markets for livestock products.

### Labor market, harmonization, and employment policy challenges
- Labor mobility: expected free movement of labor among East African member states poses challenges.
- Research gaps: more research needed on employment issues, including youth unemployment.
- Policy harmonization deficits: lack of harmonization across sector policies (Employment vs. Trade, Investment, Finance and Educational policies; Labor vs. Privatization; policies aimed to attract more foreign investment).
- Recommendation: review and harmonize laws to ensure consistency.

### Environmental governance and way forward
- Priorities to reduce illegal harvesting and strengthen governance:
  - cub illegal harvesting;
  - improve governance in the sector;
  - scale-up tree planting initiatives;
  - enforce revenue collection targets;
  - strengthen Forest Surveillance Unit.
- Data needs: more support in data collection and analysis regarding the contribution and sustainability of natural resources.

### Way forward — agricultural development and rural poverty reduction
- Policy orientation:
  - adopt agriculture policy geared towards small-scale low productivity farms as part of poverty reduction strategy rather than agricultural growth per se;
  - develop viable full-time small-farm activities combining subsistence and market production;
  - promote revitalized commercial agriculture to increase employment and reduce rural poverty directly by absorbing wage labor and indirectly via growth of downstream processing industry.
- Productivity and market information:
  - improve flow of market information and speed-up private sector response (e.g., Agricultural Marketing Systems Development Program (AMSDP)).
- Inputs and services:
  - improve availability, distribution, and affordability of agro-inputs and extension services;
  - control pests and diseases.
- Rural non-farm economy:
  - scale-up encouragement of rural non-farm activities;
  - ensure government improves education levels and basic infrastructure to stimulate rural non-farm development.
- Financial sector:
  - increase pace of implementing second generation financial sector reforms to provide adequate and affordable financial services supporting growth.
- Energy diversification:
  - accelerate diversification to other sources of energy through promotion of regional cooperation in the energy sector and implementation of the PSMP.
- International economic diplomacy:
  - speed up implementation of national foreign policy with focus on economic diplomacy to attract foreign markets, foreign investors, and negotiate for low interest loans and debt cancellation.
- Public financial management focus:
  - attaining and sustaining sound financial management and accountability;
  - improving resource mobilization, allocation, and utilization.

### Education — progress, coverage, and remaining gaps
- Pre-primary:
  - net enrolment at pre-primary level of 5 to 6 years old children increased from 24.6 percent in 2004 to 33.1 percent in June 2007.
- Primary education:
  - Gross Enrolment Ratio and Net Enrolment Ratio at primary schools increased from 114.4 percent and 96.1 percent in 2006 to 114.4 percent and 97.3 percent in 2007, respectively.
  - pass rate in final Primary School National Examinations (Standard VII) improved from 22 percent in 2000 to 70.5 percent in 2006; projected rate of 60 percent was reached in 2005 when pass rate was 61.5 percent. Cohort completing standard seven reached 78 percent in 2006; MKUKUTA target of 90 percent expected to be achieved in future.
  - transition rate from primary to secondary increased from 21.7 percent in 2002 to 36.1 percent in 2005 and 67.5 percent in 2006; surpassed MKUKUTA target of 50 percent.
  - teacher-pupil ratio declined from 1:58 in 2005 to 1:52 in 2006.
  - number of primary schools increased from 11,624 in 2000 to 14,700 in 2006.
- Secondary education:
  - Gross Enrolment Ratio and Net Enrolment Ratio in secondary schools improved from 6.6 and 5.0 in 2000 to 11.7 and 10.1 in 2006, respectively.
  - net enrolment rate in secondary education increased from 5.9 percent in 2002 to 13.4 percent in 2006 and 20.6 percent in 2007.
  - number of secondary schools increased from 927 in 2000 to 1,755 in 2006.
  - students registered for form one increased from 243,359 in 2006 to 401,011 in 2007, equivalent to an increase of 65 percent.
  - students who joined form five in public schools increased from 15,509 to 33,088 in 2005 and 2007 respectively, representing an increase of 19.1 percent.
- Supporting facilities (years under review):
  - 4,677 class rooms constructed out of a target of 5,832.
  - 1,720 teachers' houses constructed.
  - 62,875 pupils' desks made compared to target of 52,785.
  - 2,492,568 school books of various kinds bought.
- Higher learning:
  - student enrollment increased from 55,134 to 75,346 for academic year 2005/06 to 2006/07 respectively; percentage female was 35 and male 65.
  - initiatives: establishment of Gender Management Units at DIT, MIST, and TCA; lowering cut off point for female qualification in accessing government loans; establishment of Dodoma University expected to play significant role.
- Remaining concerns:
  - increase in students/teacher ratio and quality of service delivery amid crash recruitment of teachers;
  - fiscal implications of current expansion in enrolment and transition rates in medium to long term;
  - very low inclusion of children with disabilities: 0.29percent of children with disabilities enrolled in schools in 2007 (0.24percent in 2006) compared to MKUKUTA target of 20percent.

### Health, child survival, and maternal outcomes
- Targets by 2010 include reductions in infant and child mortality, prevalence of stunting and wasting in under fives, hospital based malaria-related mortality amongst under fives, maternal mortality, and HIV prevalence among 15-24 pregnant women; and increases in births attended by trained personnel, vaccination of infants, and promotion of knowledge-based care among health workers.
- Mortality and immunization:
  - under-five mortality decreased from 191 per thousand live births in 1990 to 112 in 2005/06.
  - infant mortality decreased from 115 per thousand live births in 1990 to 68 in 2005/06.
  - proportion of children vaccinated against measles improved from 78.2 percent in 2000 to 87 percent in 2005 (above MKUKUTA target of 85 percent).
  - OPVO coverage increased from 33 percent in 2001 to over 60 percent in each of the last three years.
  - DPT-HB3 coverage for 2006 stood at 87 percent, exceeding MKUKUTA target of 85 percent.
  - drug supplies and availability estimated at 80 percent, with regional variation.
- Malnutrition:
  - proportion of under-fives stunted dropped to 38 percent; underweight dropped to 22 percent (6 to 7 point declines compared to previous surveys).
- Maternal health:
  - maternal mortality increased from 529 per 100,000 live births (1996 DHS) to 578 per 100,000 live births (2004/05 DHS); partly attributable to HIV and AIDS pandemic.
  - 46.0 percent of births attended by skilled health workers (births attended by clinical officers 2.2 percent; attended by nurse or midwife 37.1 percent).
  - births in health facility were 47 percent of all births.
  - deliveries recorded in health facilities increased from 725,000 to more than 900,000 in 2003 and 2004, representing an equivalent increase of 60 percent of the expected deliveries.
- HIV:
  - HIV prevalence in adults is estimated at 7 per cent of the population in 2004.

### Summary assessment
- The chapter provides an overview of performances, challenges, and lessons learned related to economic growth and reduction of income poverty.
- Government strides: government has made major strides in putting the economy on higher and sustainable growth path, contributing to improved social wellbeing and quality of life.
- Feedback loop: in the medium to long terms, improved quality of life and social wellbeing (better education, health, nutrition, etc.) feed back to growth.
- Next steps: issues of social wellbeing and quality of life are addressed in the next chapter.

*Italicized source attribution: _cr0822 - 2007. Likewise, SEZs are yet to be realized as a market opportunity.*

### 7.7 per cent for females and 6.3 per cent for males. The prevalence rate in the 15-24 age groups

### _cr0822 - 7.7 per cent for females and 6.3 per cent for males. The prevalence rate in the 15-24 age groups

### HIV/AIDS prevalence and treatment
- HIV prevalence reported as "7.7 per cent for females and 6.3 per cent for males."
- Prevalence in the 15-24 age groups:
  - "3.0 percent for males"
  - "4 percent for females"
- Trend from antenatal clinic data (all ages):
  - Prevalence declined from "9.6 percent in 2001/02" to "8.2 percent in 2005/06."
- Trend within age group 15-24:
  - Prevalence declined from "7.6 percent in 2001/02" to "6.8 percent in 2005/06."
- Antiretroviral treatment (ARVs):
  - ARVs introduced in "more than 200 health facilities in 2006/07."
  - "48 percent of the targeted number of people was receiving treatment" against the government set target of "100, 0000 people with advanced HIV infection."
- Policy expectation:
  - "It is further anticipated that the national campaign for voluntary HIV screening will reduce the rare of transmission."

### Tuberculosis control
- Treatment success rate:
  - "Success rate standing at 82.6 percent (as of 2005)"
  - WHO gold standard for treatment success stated as "85 percent."
- Epidemiological notes:
  - TB cases experienced a "staggering upward trend" with the advent of HIV and AIDS.
  - "Recent past years have witnessed a decline in notified cases."

### Access to clean water, sanitation, and environmental risk reduction (Goal 3)
- Operational focus: increase proportion of population with access to clean and safe water, increase percentage of households with basic sanitation, increase percentage of schools with adequate sanitation facilities, reduce water-related environmental pollution and vulnerability to environmental disasters.
- Rural water supply:
  - "Supply of clean and safe water in rural areas has increased from 53.5 percent in 2005/6 to 55.7 percent in 2006/7; a two percent increases as targeted in MKUKUTA."
- Urban water supply:
  - "Population with access to clean and safe water in urban areas increased from 74 percent in 2005/6 to 78 percent in 2006/7."
- Water service metrics:
  - "About 82 percent of water users have their water line installed with water-meter."
  - "The 17 percent access to sewerage service in different Urban Water Authorities was maintained"
  - "25 percent of the wastewater generated daily was collected and disposed through sewerage systems."
- Infrastructure and projects:
  - "Implementation of the Rural Water Supply and Sanitation Projects (RWSSP) has begun in 24 districts."
  - "About 429 water wells were drilled nationwide."
  - "850 new areas were identified as potential of ground water (water well drilling)."
  - Lake Victoria-Kahama-Shinganga project:
    - Designed to "produce 120,000 Cubic Meter/day for over 1million people in Mwanza and Shinyanga regions."
- Water quality monitoring:
  - "A total of 493 water resources points were inspected to examine water pollutants and environmental degradation agents."
  - "3,058 water samples were examined to see their status in terms of germs and poisonous chemical."
  - "Over 90 percent of the sample was free from danger under international standards."
  - Target: "to reduce water-related environmental pollution levels to less than 10 percent by 2010."
- Occupational and land-use measures:
  - "A draft policy on Occupation Health and Safety and Health and Occupation bill have been developed."
  - Land use planning actions:
    - Establishment and training of rural Land use planning teams for four districts.
    - Facilitation of eleven pilot villages for Iringa, Mbozi, and Masasi.
    - Land use plans for Handeni and Kilindi.
    - Production of "40 samples of building designs for Mwanza city, Tabora and Mbeya Municipalities."
    - "Eight interim Land Use Plans of urban settlements" prepared.
    - Activities: issuance of Letters of Offer and Certificates of Title, preparing valuations, granting approval of mortgages and transfer of properties.
    - Construction of "three demonstrative low cost housing."

### Social protection and basic needs (Goal 4)
- Programmatic approaches:
  - Government efforts: expanding the pension system, promoting savings and credits, disaster management, enhancing policy environment.
  - Multisectoral programs and actors: charitable institutions, Civil Society Organizations, corporate institutions, TASAF (Tanzania Social Action Fund).
- TASAF role:
  - Provides financing for small-scale public investments targeted at the poor and vulnerable, enhances capacity and skills, creates a safety-net through cash transfer arrangements requiring participation in public works.
  - "TASAF is piloting a community-based conditional cash transfer (CB-CCT) in most villages in Tanzania."
- Local Government and pensions:
  - Continued support to Local Government Loans Board; "assets and investments of the Board have been increasing."
  - Contribution reserve (MCR) is growing; loans to Councils increasing.
  - "The Act No. 9 of 2006 transformed Local Government Provident Funds to a pension fund" for LGA employees.
- National framework:
  - National Multisectoral Social Protection Framework (NMSPF) to rationalize gaps and fast track MKUKUTA goals.
  - NMSPF prioritizes less economically active households/individuals and groups unable to address shocks or risks associated with poverty, including "children and young people, women, people with disabilities, the elderly and People Living with HIV and AIDS (PLWHA’s)."
- Operational targets for MKUKUTA social protection (by 2010):
  - "(i) Reduced proportion of children in child labor country wide from 25percent to less than 10percent by 2010"
  - "(ii) Increased number of orphans and most vulnerable children reached with effective social protection measures by 2010"
  - "(iii) 20 percent of children and adults with disabilities reached with effective social protection measures by 2010."
  - "(iv) 40percent of eligible older people reached with effective social protection measures by 2010."

### Universal access to quality and affordable public services (Goal 5)
- Operational targets: increased provision of essential infrastructure, proportion of population satisfied with health service delivery, planned and serviced human settlements, availability of skilled personnel, partnerships between LGA, CSO and private sector.
- Rural roads and accessibility:
  - Household Budget Survey (HBS) 2007 preliminary: "86 percent of the communities in rural areas spent 30 or fewer minutes to reach the nearest road passable throughout the year."
  - Dar es Salaam and other urban centers: "99 percent and 98 percent, respectively."
- Health workforce and access:
  - Recruitment initiatives:
    - "Three year recruitments permit (February 2006 – February 2009)."
    - Emergency hiring initiative by the Ministry of Health and Social Welfare.
  - "About 3,600 staff have been recruited and deployed to various health facilities all over the country between July 2006 and March 30, 2007."
  - Financial support provided to "119 staff pursuing postgraduate and specialized studies inside and outside the country."
- Access to health services (HBS 2007 preliminary):
  - "93 percent in Dar es Salaam using 30 minutes or less to reach the nearest dispensary or a health center."
  - "Figures for other urban centers and rural areas are 90 percent and 69 percent, respectively."
  - Government built "225 dispensaries in rural areas" during FY 2006/07.
  - Development of Primary Health Services Development Program (PHSDP) 2007 – 2017, with first phase "2007-2012" focusing on strengthening services at district level.
- Education staffing:
  - Recruitment of teachers being fast tracked by "reduction of years in training" and "accelerated training plans."

### Status and progress of sector reviews (Cluster II)
- Environmental sector review:
  - "Environment Management Act (EMA) in 2004" enacted; program to support EMA implementation for enforcement.
  - Regulatory actions: prohibition of manufacturing, importation, selling, buying, and using bags under "30 microns thickness"; prohibition of plastic sachets for water, juice, and milk packaging regardless of thickness.
  - Prepared regulations: Environmental Impact Assessment Regulations; Environmental Audit Regulations; Environmental Quality Standards Regulations; Fees and Charges Regulations; Ozone Depleting Substances Regulations; Strategic Environmental Assessment Regulations.
  - Initial stages for preparing Economic Instruments Regulations.
  - Plan to produce the State of the Environment Report "after every two years." "The first report is in the final stages."
- Education sector review:
  - Latest review held "in early 2006."
  - Key recommendations being addressed:
    - Develop a costed planning process for the full sector with clear and timely budget guidelines and MDAs effective submissions.
    - Develop full sector MTEF/PER process including Public Expenditure and Financial Accountability Review (PEFAR).
    - Increase awareness and capacity building amongst MDAs and LGAs on MKUKUTA and its impact on coherent Cluster oriented planning and budgets.
    - Development partners to improve on predictability of funding through GBS and SBS.
  - Higher and technical education sub-sector survey result:
    - "The sub-sector has 170 non-University public post-secondary education and training institutions." (Survey covered public institutions only.)
- Water sector review:
  - "The government has continued to consolidate gains achieved in the water sector during year" (text continues beyond provided excerpt).

*IMF staff report excerpt: _cr0822 - 7.7 per cent for females and 6.3 per cent for males. The prevalence rate in the 15-24 age groups*

### 2006. One of the major steps included the Water Sector Review, undertaken in September 2006.

### _cr0822 - 2006. One of the major steps included the Water Sector Review, undertaken in September 2006.

### Water sector reform and program adoption
- Water Sector Review undertaken in September 2006.
- Revision of the National Water Sector Development Strategy adopted by the Government in December 2006.
- Development and adoption by the government of the Water Sector Development Program (WSDP).
  - The WSDP pulls together sub-sector programs for rural water supply and sanitation, urban water supply and sewerage and water resource management into a single development program for the sector.
- Revision of Water Sector Legislations presented to the Parliament in January 2007.

### Health Sector Review and program developments
- Reforms in the health sector are on the 8th year of implementation.
- An external evaluation is being conducted by the government in collaboration with DPs, spearheaded by the Ministry of Finance.
- Key program developments:
  - Development of a primary health sector program (MMAM 2007-2017), which is a 10 year program.
  - A road map to implement Maternal and Child Health Program in line with MDG goals 4 and 5 is in place.
  - HIV/AIDS strategy with a rolling over plan for ARVs treatment developed.
  - Sanitation and hygiene strategy developed.
  - Strategy for non-communicable disease control developed.
- Other developments (operational and programmatic):
  - Council Health Management Teams and Health Service Boards were established to enhance ownership and accountability to the communities.
  - The government supported urban areas in the introduction of a repayment scheme, namely Tiba kwa Kadi (TIKA) to cater for the informal sector.
  - Integrated logistic system, aimed at tracking the use of medicines and supplies to reduce wastage, developed and tested in Dodoma and Iringa.
  - Pretest of Kiswahili IMCI modules after incorporation of HIV was conducted for 32 health workers in selected districts.
  - The Prevention of Mother to Child Transmission of HIV (PMCT) services has been rolled out from pilot areas (mainly referral hospitals) to nine regional hospitals.

### Challenges (cluster II social services)
- Education sector:
  - Safeguarding education standards and quality at all levels remains a critical challenge amidst a relatively large increase in enrolment rates.
  - Needs include expansion of education facilities: more classrooms, teaching materials, teacher’s houses, toilet facilities, and appropriate number of qualified teacher to pupil/student ratio.
  - Gender disparities persist in enrolment at upper secondary and tertiary levels; main challenges include retention and performance of girls due to inability to meet costs, labor market demands, and early pregnancies and marriages.
- Health and social services:
  - Challenges in sustaining achievements in DPT-HB3 immunization coverage and scaling up to all regions.
  - Need for reductions in new cases of TB and routine counseling and testing for HIV and AIDS.
- Water and sanitation:
  - Need for rehabilitation, expansion and construction of water and sanitation networks, encouragement of proper use of latrines and waste disposal, and upgrading unplanned settlements.
- Social vulnerability:
  - Rising magnitude of special needy groups, compounded by transmitted diseases and destitution brought about by HIV/AIDS, including families headed by children and aged ones.
- Human resources:
  - Inadequate qualified staffs needing skills upgrading in education, health sectors and LGAs.
  - Human resource gap in the health sector is estimated at 67 percent.
  - Poor motivation of staffs, particularly those in remote rural and underprivileged areas.

### Lessons learned
- Local community participation through planning, material and financial contributions is paramount to attaining cluster goals.
- Lack of adequate facilities, including housing in rural and underprivileged areas, discourages social sector workers from working in those areas.
- Inadequate access to sufficient basic social services such as water and alternative sources of fuel undermines education initiatives at household level by consuming time that could be used for other productive activities.
- Increasing the percentage of teachers with relevant qualifications is necessary but not sufficient for quality improvement.
- Increased immunization and vaccination, as well as nutritional improvements, played a greater role in reducing malnutrition, infant and child mortality, and in reducing stunting and wasting.

### The way forward — policy directions and priority actions
- Education:
  - Continue enhancing quality and standard of education through programs to increase the number of qualified and professional teachers, improve school facilities and social amenities that improve school environments.
  - Targeted programs to address gender disparities and provide priorities for girls across all education levels.
- Capacity building:
  - Continue enhancing capacity building for LGA staffs to strengthen management of public resources.
  - Explore the possibility of promoting distance learning for social sector workers to improve capacity and competency, especially in rural and underprivileged communities.
- Health and social protection:
  - Concerted efforts to reverse negative trends in maternal mortality.
  - Scale up implementation of the National HIV/AIDS Multisectoral Framework including scaling up of ARVs coverage.
  - Develop guidelines and mechanisms for mainstreaming OVC issues in MDAs and build capacity of state and non-state actors on issues of disabilities and elderly.
- Service delivery and partnerships:
  - Continue to enhance both quantity and quality of social services with adoption of public-private partnership.
  - Institutionalize social protection arrangements while considering vulnerable groups.
  - Scale up environmental campaigns to raise awareness on environmental conservation and protection.
- Financing and governance enablers:
  - Progress in social wellbeing is attributed to increased allocation of resources to MKUKUTA activities following increases in domestic revenue collections and support from development partners.
  - Legal and institutional frameworks that foster good governance and accountability underpin macroeconomic improvements and progress in social services.
  - Issues of improvement in MKUKUTA financing are discussed in Chapter V; next chapter focuses on progress in enhancing good governance and accountability.

### Governance and Accountability — overview of Cluster III
- MKUKUTA emphasizes putting in place economic structures and processes to ensure:
  - Transparent and accountable use of public resources (financial, information and natural resources).
  - Management systems, personal security, tolerance and inclusion, and participation in decision making.
- The cluster presents implementation progress on Governance and Accountability using outcome and process indicators, reflects on challenges and lessons learned, and outlines the way forward.
- The cluster has seven goals:
  - Ensure that structure and systems of governance as well as the rule of law are democratic, participatory, representative, accountable and inclusive.
  - Equitable allocation of public resources with corruption effectively addressed.
  - Effective public service framework in place to provide foundation for service delivery that support poverty reduction.
  - Rights of the poor and vulnerable groups are protected and promoted in the justice system.
  - Reduction of political and social exclusion and intolerance.
  - Improvement of personal and material securities, reduced crime, eliminate sexual abuse and domestic violence.
  - Promote and enhance national cultural identities.

*Source: _cr0822 - 2006. One of the major steps included the Water Sector Review, undertaken in September 2006.*

### 4.2 Performance and progress

### 4.2 Performance and progress

### Goal 1: Structures and systems of governance and rule of law are democratic, participatory, representative, accountable and inclusive

- Main operational target: ensure wide representation at all levels of government with focus on the poor and vulnerable; instill accountability and good governance culture in all MDAs and LGAs.
- Gender representation and public sector female employment:
  - Proportion of women in decision making position at Central government: 26.8 percent in 2005 and 29.1 percent in 2006 (MKUKUTA target: 30 percent).
  - Proportion of women in decision making position: Local government 38.36 percent; regional secretariat level 25.44 percent.
  - Female permanent secretaries: 27.8 percent.
  - Commissioners in government: 15 percent.
  - Directors in government: 29 percent.
  - Female Assistant Directors: 28.2 percent of total Assistant Directors in the Civil Service.
  - District Administrative Secretaries: 11.7 percent.
  - Female Executive Directors at LGA level: 26.4 percent.
  - Female ministers: 19 percent of ministers.
  - Women representatives in Parliament: 30.4 percent (noted as highest compared to any East and Central African country).
- Community governance:
  - Over 50 percent of communities indicated they have governance initiatives (2007 HBS community characteristics).
  - Over 95 percent of annual community meetings take place in the communities.
- Legal Sector Reform and rule of law:
  - Decreed clause providing for ruling of cases within 90 days after completion of hearing.
  - 52 percent of all prisons were visited and prisoners' complaints were dealt with; 27 percent of referral cases were held.
  - Ruling rates in 2005/06: commercial cases 91 percent; land cases 32 percent; human rights cases 70 percent.
  - Registration/documentation (2007): 46,320 marriages; 829,384 births; 118,538 deaths.

### Goal 2: Equitable allocation of public resources with corruption effectively addressed

- Operational targets: (i) equitable, accountable and transparent allocation, accessibility and use of public resources; (ii) effective regulations and mechanisms addressing petty and grand corruption.
- Domestic revenue and fiscal transparency:
  - Domestic revenue during FY2006/07 reached 111. 3 percent (by March, 2007) of the annual domestic revenue budget estimate.
  - All LGAs provided resources via formula-based grant allocation; significant funds formerly transferred through Ministerial Votes now sent directly to LGAs.
  - Tshs 286 billion from PMO RALG and five Sectoral Ministries transferred to LGAs in 2006/07.
- Anti-corruption and accountability measures:
  - Strengthened National Audit Office (NAO) leading to more audited MDAs, Regions, LGAs and Embassies on time.
  - Strengthened compliance with Public Procurement Act; more MDAs and LGAs complied.
  - LGAs achieved 100 percent compliance in posting information on budgets, revenue and actual expenditure on public notice boards.
  - PCCB reported cases increased from 1,244 in 2000 to 3,121 in 2005.
  - In 2007, 15 cases out of 19 qualified for court hearing.
  - Disciplinary actions and awareness-raising (seminars, radio and TV programs) implemented.
- LGA capacity building and staffing:
  - Training at Hombolo Local Government Training Institute (short courses): 240 Village Executive Officers; 102 Mtaa Executive Officers; 2,663 Village and Mtaa Chairpersons; 300 Ward Executive Officers; 87 Councilors.
- Financial management at LGAs:
  - 85 out of 133 councils connected to Integrated Financial Management System (IFMS) network.
  - Government employed 207 accountants and 64 auditors in various councils.
  - Audit outcomes: 53 councils received clean certificate; 67 conditional certificate; 4 received adverse opinion.

### Goal 3: Effective public service framework to provide foundation for service delivery improvements and poverty reduction

- Objectives: place administrative systems and management in interest of service recipients; institutionalize and implement Decentralization by Devolution (D by D).
- Civil service pay reform: pay reform component of PSRP directed to increase pay levels to motivate civil servants.
- Access and time-cost to services (2007 HBS community characteristics):
  - Use 30 or less minutes to reach nearest health center/dispensary: rural areas 69 percent; other urban centers 90 percent; Dar es Salaam 93 percent.
  - Spend 30 minutes or less to access nearest government secondary school: rural communities 61 percent; other urban centers 91 percent; Dar es Salaam 98 percent.
  - All communities in other urban areas spend 30 minutes or less to access nearest primary schools.
  - Access to pre-primary schools within 30 minutes: rural areas 94 percent; Dar es Salaam and other urban centers 99 percent.
- Decentralization by Devolution (D by D):
  - Share of resources flowing to LGAs under LGCDG: 19.7 percent in 2007/08 compared to 16.1 percent during 2006/07.
  - Capacity building for councilors and LGA staff to enhance decision making and technical capacity.

### Goal 4: Rights of the poor and vulnerable groups protected and promoted in the justice system

- Focus: reduce outstanding court cases backlog; improve case screening and prosecution processes.
- Outstanding court cases backlog:
  - Percentage of outstanding court cases dropped from 58 percent in 2005 to 46.7 percent in 2007.
  - Court activity: 12 sessions of the Court of Appeal conducted with a total of 978 appeals heard.
  - High Court: 98 sessions conducted in all 13 zones.
  - Director of Public Prosecution disposed 1,111 cases.
  - Target: reduce outstanding court cases to 40 percent by 2010 (trend indicates likely achievement).
- Judicial staffing and recruitment:
  - Appointed 23 Judges (2 for Court of Appeal; 21 for High Court).
  - Recruited 77 Resident Magistrates and 46 Primary Court Magistrates.
  - Employed 12 State Attorneys and 7 Law Secretaries allocated to zonal offices of the Attorney General’s Chambers.
- Prosecution system reforms:
  - Technical study on transformation of prosecution system finalized; recommendations at securitization stage.
  - Needs assessment for LSRP Phase I civilianization of prosecution services accomplished in six regions.
  - Authorization granted to recruit 211 attorneys and supporting staff for LSRP Phase I with remuneration packages.

### Goal 5: Reduction of Political and Social Exclusion and Intolerance

- Emphasis: develop and strengthen political and social systems to increase citizen participation, particularly for the poor and vulnerable.
- Human rights commission and activities:
  - Enhancements: capacity building for Commission for Human Rights; stakeholder awareness; NGO capacity building for monitoring and reporting abuses; regional and international collaboration.
  - 2006/07 Commission cases: received 226 complaints on human rights violations from remandees — 39 advised and 187 resolved.
  - Total new complaints received: 4,523; complaints resolved: 3,149 (about 70 percent of total backlog).
  - Commission opened two Regional Offices in Lindi and Mwanza.
  - Inspections in 2006/07: 35 prisons and 53 police stations in 33 districts of Tanzania Mainland.
- Awareness and partnership:
  - Human rights and good governance campaigns covered 36 districts.
  - Commission adopted Public Private Partnership Approach; 18 non state actors assessed for collaboration.
  - Efforts to resolve political tension in Zanzibar: REDET (University of Dar es Salaam) initiated a training program fostering tolerance; potential for scaling up noted.

### Goal 6: Improved personal and material securities, reduced crime, eliminate sexual abuse and domestic violence

- Operational target: ensure institutions and agents (police, courts, prisons) observe human rights and ensure justice and security.
- Prisons and inmate numbers:
  - Number of inmates: 44,565 (June 2006) and 39,782 (June 2007).
  - Under Prison Act, No. 34 of 1967, 931 prisoners allowed to serve sentences out of prison via community works.
  - Prison carrying capacity: increased from 22,699 to 27,653 inmates in 2005/06 and 2006/07 respectively.
- Court caseload and crime reporting:
  - District Court file cases increased by more than 100 percent from 2005 to 2006.
  - High Court file cases increased about 32 percent.
  - Court of Appeal file cases increased by less than 1 percent.
  - Police Station reported incidences of crime declined about 17 percent in 2006 compared to 2005.
- Law reform and protection of women:
  - Law Reform Commission research on customary laws initiated amendments addressing biases that suppress women.
- Police capacity building and ICT:
  - Human Rights and Good Governance training for 967 Police Officers as of May 2007; 13 officers sent abroad for professional skill enhancement.
  - 86 Police Officers attended short courses under bilateral agreements.
  - LAN/WAN connectivity installed for police stations in Mbeya, Mwanza, Dodoma, Arusha, Zanzibar, Police Headquarters Dar es Salaam, Dar es Salaam Special Zone, and three police training colleges (Dar es Salaam, Zanzibar, Moshi).
- Primary Courts rehabilitation and construction:
  - Primary Courts rehabilitated: 51 in 2005/06 and 54 in 2006/07.
  - New Primary Courts constructed: 15 in 2005/06 and 13 in 2006/07.
- Specialized courts performance:
  - Commercial Court: disposed 140 commercial disputes out of 153 in 2006; in 2005 disposed 91 disputes out of 115.
  - Land Court: disposed 476 out of 787 land disputes in 2005/06 and 612 out of 1,915 in 2006/07.
  - Note: specialized courts remain understaffed.

### Goal 7: National cultural identities enhanced and promoted

- Cultural promotion and activities:
  - Training: 2,840 individuals trained in music, fine arts, theatre arts, traditional and modern dance, and acrobatic.
  - Artistic resources study conducted in Ruvuma, Mtwara, and Kilimanjaro.
  - Government acquired land for National House Culture Complex.
  - Intellectual property awareness: 330 artists trained on copyrights.
  - Promotion of cultural festivals (e.g., Zeze Award); increased support to Bagamoyo College of Arts; film and video inspection for cultural protection.
- Kiswahili promotion:
  - Over 500 certificates and 50 documents translated into Kiswahili.
  - 156 TV and radio programs on Kiswahili broadcast.
  - 180 mistakes in Kiswahili words identified and corrected.
  - Increased use of Kiswahili at international level, e.g., African Union meetings.
- Sports and games:
  - Sport associations/clubs/centers registered: 124 in 2005 and 241 in 2006.
  - Ongoing: phase one construction of national sport complex; rehabilitation of national football stadium; employment of international-standard sports trainers.
  - Malya Sport College: 36 students enrolled in courses for football, netball, volleyball, basketball, and athletics.
  - Publication: book titled "Mchezo wa Bao."

### 4.3 Status and progress of reforms (overview of reform programs cited)

- Reforms underpinning governance and accountability progress: Legal Sector Reform Program (LSRP); Public Service Reform Program (PSRP); Local Government Reform Program (LGRP); National Anti-Corruption Strategy and Action Plan (NACSAP).

#### 4.3.1 The Legal Sector Reform Program (LSRP)
- Key achievements:
  - Enactment of legislation to establish the Law School of Tanzania in 2007.
  - Development and approval of legal framework and structure of the National Prosecution Service to speed prosecution procedures.
  - Modernization and strengthening of Police investigation system; improved judiciary performance and access to justice.
  - Simplified rules, procedures and guidelines for investigation, mediation and reconciliation stages.
  - Legal Sector Policy final document in place and being disseminated.
  - Translation of 2 Laws and 3 subsidiary legislations from Swahili to English to increase public awareness and understanding of the national constitution.

#### 4.3.2 Public Service Reform Program (PSRP)
- Achievements:
  - Installation of key systems and processes in various MDAs aligned with harmonization of national planning and budgeting.
  - Rolling out subject file management systems to MDAs.
  - Promotion of decentralized decision making via reengineering human resource processes.
  - Launching of more Executive Agencies and improvement of pay levels for public servants.
  - PSRP Phase II designed and expected to be effective by December.

*Source: _cr0822 - 4.2 Performance and progress*

### 2007.  The  PSRP  Phase  II  will  adopt  a  demand  driven  implementation  approach,  creating  more

### _cr0822 - 2007. The PSRP Phase II will adopt a demand driven implementation approach, creating more

### PSRP Phase II
- Will adopt a demand driven implementation approach, creating a more enabling environment for the MDAs to manage reforms in their institutions.
- Will focus more on strengthening the demand side of accountability through involving more citizens, stakeholders, and CSOs in MDAs service delivery interventions including policy dialogue.

### 4.3.3 Local Government Reform Program (LGRP)
- Government implementing the third Medium Term Plan under the LGRP.
- Core reforms: political administration, fiscal decentralizations, good governance, central-local relations, and restructuring.
- Notable achievement: fiscal decentralization, especially formula based allocation of development funds under the LGCDG system.
- Decentralization by Devolution has started in five ministries.
- Capacity building for councilors and LGA staff is being conducted to improve decision-making.
- Organizational restructuring of LGAs to improve service delivery is underway.
- Community sense of ownership increasing through direct involvement or representation in LGA business.

### 4.3.4 National Anti-Corruption Strategy and Action Plan (NACSAP)
- Government formulated National Anti Corruption Strategy and Action Plan II (NACSAP II) based on review of NACSAP I.
- New and more enhanced Anti-Corruption legislation enacted (June 2007) to improve effectiveness of PCCB.
- Efforts directed to establish National Anti-Corruption Forum to increase stakeholder participation.

### 4.3.5 Public Financial Management Reform Program (PFMRP)
- Significant progress under several PFMRP components.
- Noteworthy improvements:
  - Strengthening of macroeconomic programming and improvement of fiscal marksmanship.
  - Stronger coordination of external aid.
  - Greater timeliness of external audit reports.
  - Elaboration and progressive rollout of the integrated financial management information system (IFMS) throughout central government and parts of local government.
- Substantial progress in budget preparation via concurrent introduction of the MTEF and ongoing Public Expenditure Review process.
- Remaining critical challenge: strengthen budget preparation and operational management in MDAs and local government to secure durable improvements in public service efficiency and effectiveness.

### 4.4 Challenges (accountability, law enforcement, decentralization, auditing, legal reforms, human rights, technology)
- Information posting: inadequate analysis and consumption of notice-board information at grassroots; many notice boards inaccessible (located at district headquarters rather than village centers).
- Law enforcement infrastructure shortages: offices, office equipment, housing, communication equipment.
- Inadequate remunerations leading to bribery; inadequate human resources and capacity building; resulting laxity in court systems and police investigations.
- Prison overcrowding due to inadequate expansion.
- Fiscal decentralization challenge: inadequate capacity to cope with increased funds flow to LGA—urgent need to match devolution with capacity enhancing programs and increase understanding of devolution concept among central and local officials.
- Auditing: shortage of resources to audit all accounts; remote areas disadvantaged in human resource allocation due to reluctance of staff to be posted there.
- Corruption-related: poor regulation in natural resource management; inadequate community participation in natural resources management.
- NACSAP II: challenge to define effective modality for involving non-state actors.
- Procurement: challenges in performance of tender boards under the new procurement act.
- Legal reforms: continuing challenges in improving the judiciary; need for rationalization and harmonization of pay levels in legal sector reform program; need to fast track case flow management, increase judiciary independence, and enhance citizen information on judiciary roles and functions.
- Human rights and skills: need for skills development in Human Rights understanding, frequent monitoring, modern technology for dissemination and sensitization, and equipment—critical in prisons and refugee camps; challenge in identifying credible NGOs for public-private partnerships in human rights delivery.
- Criminal technology gap: poor technology to address sophisticated transnational organized crimes (terrorism, money laundering, drug trafficking, illegal immigrants, etc).
- Prisons: average inmates per facility as percentage of authorized capacity exceeds recommended rate.
- Data gap: lack of national data on sexual abuse and domestic violence.

### 4.5 Lessons
- Low level of awareness at grassroots, particularly on use of public information provided by LGAs.
- Need to disaggregate available information and conduct a baseline study to establish total number of people who own CCROs at household level and by gender.
- Need to build capacity and improve working conditions of law enforcers.
- Improved interventions in this cluster will catalyze growth, poverty reduction, and social wellbeing outcomes.
- To reduce corruption: more awareness to change mindsets of public office holders; strengthen auditing activities of public institutions to reduce resource divergence.
- Need to strengthen capacity and pay attention to accounting units in public offices.
- Need to harmonize decentralization by devolution processes in the constitution to ensure consistency, continuity, and efficient implementation.
- Formal coordination among reform programs (LSRP, PSRP, LGRP, etc) is lacking yet essential; need to remove contradictions in some sector laws.

### 4.6 Way forward (government actions and priorities)
- Scale up awareness raising to communities on role and usefulness of public information; more training on ethics and integrity in professionalism to enhance governance and accountability.
- Conduct baseline survey for key performance indicators for future monitoring and evaluation.
- Improve working infrastructures and conditions.
- Investigate and institutionalize modalities to involve non-state actors in notice-board information posting to enhance public accountability.
- Considerations include: capacity building interventions, recruitment of more staff, reduction of case backlog, improvement of communication infrastructure, and implementing comprehensive systems for good governance, accountability, and representation.
- Increase community involvement in natural resource management; capacity building of LGAs staff for resource and service delivery management.
- Human rights priorities: expand prison facilities and install offenders' information management systems.
- Scale up border control and monitoring.
- Scale up Community Service Program and Fire and Rescue Services in all regions.

### CHAPTER FIVE: MKUKUTA FINANCING — overview
- Chapter covers fiscal performance and strategic resource allocation for MKUKUTA, including resource mobilization, budget preparation, execution, reporting, and transparency.

### 5.1 Resource mobilization, Allocation and Budget Consistency — findings and progress
- Implementation involves public sector and non-state actors; this report focuses on government financing as major contributor.
- Shift from sector-based resource allocation under first PRS to recognition that all MDAs/sectors contribute to poverty reduction under MKUKUTA.
- Complementary initiative: Joint Assistance Strategy for Tanzania (JAST) to facilitate MKUKUTA objectives and reduce transaction costs.
- Instruments used: General Budget Support (GBS) and Public Expenditure Reviews to consolidate government and development partner efforts.
- Development partners' budget support increased from Tshs 1,030 billion in the first two years of PRS to Tshs 3,090 billion in the first two years of MKUKUTA implementation.
- Domestic revenue collection increased from Tshs 1,973 billion in the first two years of PRS to Tshs 4,897 billion in the first two years of MKUKUTA implementation.
- Causes of revenue increases: major reforms in main collecting agents and improved public finance management enhancing development partner confidence.
- Improvements in budget management: link between MKUKUTA priorities and budgetary allocation strengthened through Strategic Budget Allocation System (SBAS) and Planning and Reporting (planned) software for local governments.
- SBAS rolled out to Regional Secretariats for 2006/07 budget preparation.
- MKUKUTA and MDGs costing exercise interim results and PER consultations used to prioritize interventions; eight sectors completed MKUKUTA costing: health, education, water, roads, agriculture, land, labour and energy.

- Remaining challenges (listed in source):
  - to concretize and integrate the non state actors’ contribution in poverty reducing efforts.
  - Resources generated for MKUKUTA implementation are not sufficient to cover adequately earmarked interventions.
  - Foreign resources predictability is still an issue to be addressed
  - Inadequate resources
  - Macroeconomic constants outing form the relevance of mode of financing, and the structure of the budget
  - The need for clear guidance on the resource constraints, which would reduce (if not eliminate) unrealistic requests by MDAs.
  - The need for guidance on the level of details on initial budget submission by MDAs to avoid the highly detailed (activity) submissions which normally lack a strategic framework, and
  - The need to improve the connectivity (linkage) between budget and program documents, as well as coordination and authority between budget and program officers within MDAs.

### 5.2 MKUKUTA Structure and the Budget — allocations and shares
- MKUKUTA recognizes all sectors and MDAs contribute to poverty reduction; for analytic/planning, expenditures directly related to MKUKUTA clusters are classified as MKUKUTA expenditures.
- Within SBAS, approved budget to implement MKUKUTA in 2006/07 was 48 percent of total budget allocations; remaining 52 percent was for projects/programs without direct link to MKUKUTA.
- Components in the remaining 52 percent include Wages and Salaries (18percent), LGAs (12percent) and CFS (10percent) of total budget in 2006/07.
- Of the MKUKUTA interventions budget: 46percent budgeted for Cluster 1, 36 percent for Cluster 2, and 18 percent for Cluster 3.
- Preliminary IFMS-based analysis of actual releases for FY 2006/07 shows disbursement for MKUKUTA activities was satisfactory with some deviations due to government reallocations in response to power crisis in first half of 2006/07, food shortages, oil prices, and increasing domestic interest payments.
- Strategic choice challenge: balancing spending between “growth-promoting expenditures” and social sectors (directly and indirectly productive sectors).
- Medium-term focus: prioritize and sequence MKUKUTA interventions with multiple effects; provide more resources for pro-poor growth enhancing expenditures with relatively higher import content.
- Expectation: increase in expenditures on infrastructure development relative to social services; consideration of strategies addressing regional imbalances and mainstreaming cross-cutting issues.

### 5.3 Budget Execution — fiscal performance, releases, and constraints
- Emphasis on financing strategy critical to achieve MKUKUTA targets: adequate resources and mechanisms to address fund mismanagement.
- Government to increase domestic resource collection and mobilize DPs to scale up external assistance in line with international commitments and local needs; available resources to be used prudently for value for money.
- Challenge: linking use of funds to actual results, especially where impacts take more than one year to materialize.
- Fiscal developments 2006/07:
  - Domestic revenues by end-June 2007: TShs 2,739,022 million, which is 11.3percent higher than annual estimates of TShs 2,460,995 million.
  - Better domestic revenue performance attributed to efficient tax administration and implementation of FY 2006/07 tax measures.
  - Total Expenditure to GDP ratio declined from 26.1 percent in 2005/06 to 25.5 in 2006/07.
  - Total expenditure for 2006/07 was Tshs. 4,761,700 million, equivalent to 98 percent of the total estimate of shillings 4,850,588 million, compared to 94.4 percent in 2005/06.
  - Main reason for shortfall: inadequacy in capturing donor assistance provided directly to projects.
- Fund release patterns:
  - Flow of funds to some MDAs skewed towards specific months; MOF releases funds monthly based on MDAs’ cash flow plans and funds availability.
  - Low releases compared to cash flow forecasts in the first quarter of 2006/07 for most MDAs, due to inadequacies in cash flow planning by MDAs and treasury resource inflow.
- Development budget challenges: unpredictability and delay in capturing information related to development funds financed by donors against approved estimates.
  - Example 2005/06 development disbursements:
    - MAFSC received 47 percent of total budgeted development resources, 12 percent disbursed in the first half of the year.
    - MoEVT received 32 percent of total budgeted development resources, 22 percent recorded in the first half of the year.
    - MoHSW received 81 percent of total approved development budget for the year, with 43 percent during the first half of the year.
  - First quarter releases for these ministries were: agriculture -6percent, education 12percent, and health 3percent.
- Concluding operational points:
  - Budgeting must be matched by resource availability and timing consistent with MDAs’ cash plans.
  - Government actions to increase domestic revenue and sustain socio-economic environment for poverty reduction are underway; development partners encouraged to adhere to pledges.
  - Targets set for 2010 can be achieved given resource availability (as projected), proper alignment of resources with government priorities, and timely release to needy sectors.

*Source: Excerpt from the provided IMF PDF content unit.*

### 5.4 Budget Reporting and transparency

### 5.4 Budget Reporting and transparency

### 5.4.1. Status on budget reporting mechanisms
- Reporting requirements are stipulated in the Public Finance Act of 2001 and operationalized through the government's accounting procedure manuals.
- Budget structure is based on international GFS standards, requiring data transformations between SBAS–based (MKUKUTA) resource allocation and GFS–based budget documentation, and vice versa.
- Government is developing a framework for MKUKUTA–based analysis of budget execution results; such analysis shall be reported through the BERs.
- Interim policy link to budget execution is assessed through consistency between SBAS based allocations and actual expenditures (i.e. budget variations) and impacts on poverty via the MKUKUTA Monitoring System.
- Other reporting mechanisms:
  - Quarterly execution reports published on the Ministry of Finance website providing the overall fiscal framework.
  - Monthly flash reports using IFMS containing information on funds committed and disbursed.
- Identified needs:
  - Quarterly and monthly reports, while timely, accessible, and useful, need to be structured on the basis of programs and MKUKUTA for better outlook.

### 5.4.2. Status on report coverage
- Intermediary (Q1–Q3) BERs cover Government finances on a cash basis, exclude direct–to–project funding by DPs, and treat transfers to LGAs as expenditure.
- Limitations noted:
  - Some project expenditures are not covered.
  - Some LGAs expenditure is assumed premium.
  - Existing system fails to match complexities introduced by multiple channels of funding programs at district levels.
- Planned actions:
  - Institute classification and reporting mechanisms for compiling comprehensive fiscal information during the next year of MKUKUTA implementation.
  - Require development partners and beneficiary institutions to adopt integrated approaches to funds flow and reporting.
- Government measures in progress:
  - Preparation of a manual to be used by all MDAs for reporting on MKUKUTA.
  - Linking the IFMS with the SBAS remains a key challenge; Government is working on a methodology to allow more efficient exchange of information between the tools to facilitate timely SBAS based analysis of budget execution results.

### 5.5 Other policies related to Government Budget

- Joint Assistance Strategy (JAST)
  - Adopted in December, 2006.
  - Result of a broad government-led consultation with development partners and non-state actors; aims to rationalize and harmonize donor support to reduce transaction costs and enhance national ownership and government leadership.
  - Participating development partners prepared a Joint Programming Document (JPD) fully aligned to MKUKUTA objectives.
  - Government will lead joint analysis with development partners on alternative scenarios of expenditure and external financing aiming for consensus on medium term strategy and expenditure plans prior to 2008/09 budget cycle, to facilitate scaling up of aid.
- Pay Reform
  - Presidential Commission on Public Service Pay submitted its report in December, 2006 focusing on medium term policy linking government employment levels and budgetary implications.
  - Government is reviewing the Commission’s recommendations against MKUKUTA priorities and budgetary feasibility to develop an updated medium term pay policy.

### CHAPTER SIX: MONITORING AND EVALUATION — Overview
- Poverty Monitoring System (PMS) developed in 2001; reviewed in 2005/06 and revised as MKUKUTA Monitoring System (MMS), approved by Government through MKUKUTA Technical Committee in February 2006.
- MKUKUTA Monitoring Master Plan is a working document guiding MMS implementation.
- Major changes in MMS:
  - Consolidation of Steering Committee and Technical Committee into MKUKUTA Technical Committee with responsibilities including timely production of information and informing IMTC, Cabinet and Parliament.
  - Introduction of three Technical Working Groups (merged Survey and Census with Routine Data into Survey and Routine Data TWG; Research & Analysis TWG; Communications TWG renamed from Dissemination, Sensitization and Advocacy).
  - Strengthened alignment between national-level outcome monitoring and Government Strategic Planning, Budgeting and reporting systems.

### 6.2 Implementation status (2005/06–2006/07)

#### 6.2.1 MKUKUTA Secretariat
- Review and coordination:
  - Coordinated review of PMS and development of MMS; wider consultations with stakeholders.
  - National indicators reviewed and broadened; final list contains 84 indicators at national level.
  - Challenge: strengthen Management Information Systems of MDAs and LGAs to improve data quality and frequency.
- Coordination and communications:
  - Facilitated TWGs and Technical Committee; annual calendar of meetings agreed in early 2006.
  - Ensured availability and management of funds to TWGs.
  - Up-graded electronic newsletter titled MKUKUTA HIGHLIGHTS produced every two months from January 2006.
  - New email contact mkukutamonitoring@gmail.com with over 450 individuals and organizations.
  - New MKUKUTA monitoring website operational.
- Harmonization and tools:
  - Contributed to Medium Term Strategic Planning, Budgeting and Reporting Manual linking MKUKUTA, Sector policies, Strategic Plans and MTEF frameworks.
  - MKUKUTA matrix reviewed to facilitate MDAs planning.
  - SBAS reviewed to incorporate MKUKUTA cluster strategies.
  - Developed RIMKU (Ripoti ya Utekelezaji wa MKUKUTA) software; work ongoing to harmonize RIMKU with other government software.
- Costing:
  - Coordinated MKUKUTA Costing exercise for key interventions from eight key sectors: health, education, water, roads, agriculture, land, energy and labor — cost estimates intended on an annual basis for five years and beyond.

#### Consultation achievements
- Coordinated development of Multi Sectoral Social Protection Framework with participatory consultations at national, sub-national, and non-state actor levels.
- Consolidated consultation reports to prepare draft framework; mapping and policy review ongoing; draft to inform final consultations expected between October and November, 2007.

#### 6.2.2 Research and Analysis TWG
- Responsible for analysis and coordination of national research outputs.
- Main output in 2005–07: production of third Poverty and Human Development Report (PHDR) with policy briefs in English and Kiswahili and first-time district-level indicator analysis using poverty mapping methodology.
- Produced The Status Report (2006) based on revised MKUKUTA indicators.
- Coordinated Views of the People Study and open policy dialogue sessions; commissioned various policy-based studies.

#### 6.2.3 Survey and Routine Data TWG
- TWG has two sub-groups: Surveys and Routine Data; NBS chairs the TWG secretariat; PMO-RALG co-chairs Routine Data sub-group.
- Routine Data sub-group:
  - Focused on awareness, zonal workshops, sector consultations; inputs informed draft Routine Data System Strategy Paper.
  - Emphasis on development of Tanzania Statistical Master Plan (TSMP) chaired by NBS to improve statistical information for M&E and to develop MDA statistical plans.
- Survey sub-group: progress on key surveys (2005–07)
  - Agriculture Sample Census (2002/03)
    - Near completion; outputs include Crop Report, Livestock Report, Technical Report, Household conditions and Access to natural Resource Report.
    - Printing of Regional Level 2003 Reports for Tanga, Dodoma, Morogoro, Iringa and Mara finalized.
    - Remaining 16 Regional reports and two national Level Reports (Large Scale Farms Report, and Gender Profile of the Agricultural Sector) to be completed by September 2007.
    - Dissemination application for the dataset designed to enable tabulations and cross-tabulations.
    - Major challenge: delays in production due to magnitude of dataset.
  - Integrated Labor Force Survey (ILFS) (2006)
    - Preparatory phase completed by December 2006.
    - As of June 2007: data collection, data input and processing, list of indicators, dummy tables, data analysis and report writing completed.
    - Draft report expected by October 2007.
  - Tanzania Service Provision Assessment Survey (TSPA)
    - Implementation started 2005/06 and continued 2006/07.
    - Completed data collection, data processing and produced Preliminary report.
    - Evaluation study carried out; final reports to be produced and disseminated by October 2007.
  - 2006/07 Household Budget Survey (HBS)
    - Implementation started April 2006.
    - Adopted diary method with recall on a sub-sample as a test.
    - National-level sample stratified DSM, other urban areas, and rural.
    - Completed pre-testing, pilot testing, household listing, training of enumerators, questionnaire administration, data processing and drafting of report.
    - Exercise expected to be completed by December 2007.
  - National Panel Survey (NPS)
    - New initiative to follow individuals, households, communities, health and education facilities over time; intended to evaluate TASAF II.
    - Still in design stage (questionnaires, sampling, data collection methodology under scrutiny).
  - Tanzania Disability Survey
    - Implementation planned for financial year 2007/08.
    - Preparatory activities completed: instruction manual and three questionnaires developed; stakeholder consultations; pre-test of instruments; preparations for pilot test in Dodoma.
  - Tanzania HIV/AIDS and Malaria Indicator Survey (THIS)
    - Preparatory activities done in 2006/07; implementation scheduled for financial year 2007/08.
    - Achievements: household listing completed and stakeholder consultations held.
    - Training of enumerators scheduled for September 2007; fieldwork to start after training.
  - 2007 Business Survey
    - Physical execution started May 2007.
    - By end of June 2007: procurement of field materials; printing of questionnaires and manuals; purchase of computers; Training of Trainers; training of Regional Supervisors and Enumerators; enumeration exercise in all regions.
    - About 85 percent of the enumeration work completed.
  - Distributive Trade Survey (DTS)
    - Implementation started in 2006/07.
    - Planning, formation of steering committee and sampling design initiated and in progress.

#### 6.2.4 Communication TWG
- Led by Poverty Eradication Division in the Ministry of Planning, Economy and Empowerment.
- Responsibilities:
  - Create awareness on MKUKUTA framework and disseminate major findings from MMS outputs to foster stakeholder dialogue and support MKUKUTA implementation.
- Activities and channels used:
  - Wide distribution of MKUKUTA Monitoring Master Plan (MMP).
  - Dissemination of MKUKUTA Status Report 2006 to members of parliament and other stakeholders.
  - Dissemination of MMS outputs during the 45 Independence Anniversaries.
  - Use of Radio and TV programs to reach village audiences with MKUKUTA and MDGs messages.
  - Use of MKUKUTA calendars and seminars for Members of Parliament.
  - Close collaboration with Research Working Group in designing the Views of the People study.

*Source: _cr0822 - 5.4 Budget Reporting and transparency*

### 6.3 Harmonization of National Processes with MAIR

### 6.3 Harmonization of National Processes with MAIR

### Overview
- Harmonization and alignment of aid modalities in Tanzania have been articulated in: Independent monitoring Group report, PER Evaluation Reports, Tanzania Assistance Strategy (TAS) and Joint Assistance Strategy for Tanzania (JAST).
- The harmonization and alignment agenda has three main categories:
  - Development and use of a common framework for disbursement, accounting, reporting and performance appraisal based on government-established systems to enhance transparency and predictability of donor financing and improve reliability of donor disbursements in timing and amount for better planning and budgeting.
  - Addressing the disconnection between Sector Development Program and MKUKUTA by reviewing sector development programs and strategies to ensure consistency with MKUKUTA and a strategic link between resource allocation and MKUKUTA.
  - Harmonization and rationalization of national processes particularly the MKUKUTA Monitoring System (MMS), Public Expenditure Review (PER) and the MTEF/Budget Guideline; and bringing GBS, PRSC and PSI into national processes rather than treating them as separate stand alone sub-processes.
- MKUKUTA’s cluster outcome approach requires PER and other processes to reflect cluster outcomes linked to the budget process. MKUKUTA sequencing: MKUKUTA (and its monitoring system) feed into the PER process → informs the preparations of the budget guidelines → the budget guideline informs sectoral budgets and MTEF preparations.
- The calendar of key processes has been reviewed and harmonized; harmonization has addressed linkages of MKUKUTA Monitoring System with other monitoring systems at MDAs and LGAs and harmonization of output from MMS with PER.

### 6.3.1 Progress on Harmonization Initiatives
- In 2006/07 an Inter Ministerial Taskforce on Planning, Budgeting and Reporting comprising staff from Ministry of Planning, Economy and Empowerment (MPEE), Prime Ministers Office - Regional Administration and Local Government (PMO-RALG), President’s Office - Public Service Management (PO-PSM) and Ministry of Finance (MoF) was formed to rationalize and harmonize government reporting, monitoring and evaluation approaches.
- Notable progress includes rationalization of planning, budgeting, monitoring and reporting processes and dialogue mechanisms.
- Government produced a detailed manual: “Medium Term Strategic Planning, Budgeting and Reporting Manual (MTSPBR)” in 2005 to document rationalized processes.
- Explicit performance reporting requirements were developed and incorporated into the 2007/08 Plan and Budget Guidelines specifying more analytical, reader friendly and accessible reports consistent with MKUKUTA and other national reporting requirements.
- Within the manual, MKUKUTA reporting is defined as aggregating self-reported performance information from MDAs and LGAs and supporting it with independent surveys and analytical work through production of MAIR and PHDRs and status reports for non-PHDR years.
- MDAs and LGAs produce quarterly performance reports linked to MKUKUTA cluster outcomes through the new reporting system of RIMKU, and linked to Sector Reviews, Public Expenditure Reviews (PERs) and MDA and LGA audit reports.
- Three softwares—PIMA, PLANREPII and RIMKU—were assessed and a decision made to harmonize all three to support seamless reporting. Further improvements to RIMKU will be made in relation to PLANREPII, PIMA SBAS and IFMS to meet reporting needs including MKUKUTA Annual Implementation Report (MAIR).
- An independent study on Monitoring and Evaluation inventory across government is ongoing in 27 MDAs to assess M&E capacity and inform development of M&E policy and legal framework.
- A new dialogue structure was designed to facilitate cluster-wide dialogue, bringing together processes under GBS, PER and MKUKUTA. GBS, PER and MKUKUTA Secretariats have collaborated in implementing harmonization; events such as the PER annual consultative meetings and Poverty Policy Week are now planned and organized in collaboration.

### 6.4 Challenges and Lessons Learned
- The shift from PRSP to MKUKUTA broadened and deepened the monitoring agenda (data collection, analysis, dissemination, resources and management). Expansion of indicators to more than 80 increased demands on routine and survey data, research and analysis.
- The outcome framework requires participation of more institutions and actors than PRSP, indicating need for stronger monitoring and reporting systems and clearer links within and across Government and other key players, and consolidation of accountability processes.
- Weak links persist between MMS and MDAs/LGAs monitoring work; MMS has had little impact on strengthening routine data systems or research work at MDA and LGA levels.
- Differences remain between indicators used in MKUKUTA and those in MDA performance frameworks where they exist.
- MMS funding is highly dependent on external support with substantial contributions to the pool fund from Development Partners, raising sustainability concerns for monitoring activities and achievements since PMS inception in 2001.
- Despite reconstitution of groups in April 2006 and agreed annual meeting calendars, low attendance at regular meetings has affected implementation. One reason is TWG activities not mainstreamed within member institutions; many participants perceive roles as advisory rather than functionary, assuming Secretariats will undertake the work. Lesson: encourage accomplishment of practical tasks rather than advisory roles to reduce unrealistic expectations.

### 6.5 The Way Forward
- Government will continue harmonization of M&E systems in government institutions for quality reporting and better decision-making and will institutionalize M&E functions within MDAs and LGAs to link with MKUKUTA monitoring system.
- Actions to be undertaken:
  - Put in place an M&E policy and capacity building interventions at all levels.
  - Improve RIMKU, PIMA, and PLANREP application software.
  - Conduct training of MDAs and LGAs on RIMKU and PLANREP software respectively.
- To address funding issues, Government will gradually implement recommendations from the mapping study to migrate MMS funding from Pool Fund to the mainstream national budget.
- A Joint Task Force between Government and Development Partners has been formed to identify critical issues (ranging from funding to strengthening MMS implementation) to be addressed during the transition period, which goes up to 2012.

*Source: 6.3 Harmonization of National Processes with MAIR (excerpt).*

### ANNEX 1: SUMMARY OF OUTCOMES, PERFORMANCE, AND CHALLENGES

### ANNEX 1: SUMMARY OF OUTCOMES, PERFORMANCE, AND CHALLENGES

### CLUSTER I: GROWTH AND REDUCTION OF INCOME POVERTY

- Goal 1: Ensuring sound economic management
  - Outcome / Performance
    - Annual rate of Inflation: rose from 5.9 percent in 2005 to 7.3 percent in 2006.
    - Central Government Revenue as percent of GDP: Government domestic revenue (tax and non-tax revenue) as a percent of GDP increased from 14.3 percent in 2005/06 to 15.6 percent in 2006/07.
    - Fiscal Deficit as percent of GDP (before and after grants): has been -11.5 and -5.5 respectively.
    - External debt to export ratio: External debt services as percent of exports declined from 4.4 percent to 2.3 percent in 2005 and 2006 respectively.
    - Export as percent of GDP: rose to 21.9 percent in 2006/07.
    - Official Foreign Reserves (OFR): declined to 5.3 months of imports of goods and non-factor services.
    - Unemployment: rate declined from 12.9 percent in 2005 to 11 percent in year 2006.
    - A total of 27,244 enterprises were given loans countrywide through National Empowerment Funds for the purpose of reducing unemployment and income poverty.
  - Challenges & Lessons
    - Over reliance on rainfall for agriculture and for electricity production.
    - Low productivity.
    - Low economic growth.
    - Rising inflation.
    - Inhibitive registration formalities.
    - Inadequate financial resources.
    - Narrow tax base.
    - Outdated labor laws.
    - Increased government expenditure due to expansion of sectors i.e. education.
    - Over reliance on oil imports.
    - Difficulties of stabilizing the exchange rate and protecting value of the Tanzania Shilling.
    - The rapid growth of the informal sector.
  - Way forward
    - Exploring alternative sources of energy.
    - Stepped up involvement of village communities.
    - Increased financing.
    - Reviewing curriculum for self-employment.
    - Entrepreneurship.
    - More aggressive export drive.
    - Updating and implementing labor laws.

- Goal 2: Promoting sustainable and broad-based growth
  - Outcome / Performance
    - Domestic credit to private sector as a percent of GDP: increased from 11 percent in 2005 to 12.5 percent in year 2006.
    - Percentage increase in foreign direct investment: declined from 7 percent in year 2005 to 6 percent in year 2006.
    - Interest rate spread on lending and deposits: increased from 12.0 percent in year 2005 to 13.3 percent in year 2006.
    - Percentage of trunk and regional roads in good and fair condition: declined from 84 percent in year 2005 to 78 percent in year 2006.
    - Growth of sectors:
      - Manufacturing sector deteriorated from 9 percent to 8.6 percent in year 2005 and 2006 respectively.
      - Growth in agriculture sector declined from 5.1 percent to 4.1 percent in year 2005 and 2006 respectively.
      - The Livestock sector rate of growth declined from 4.2 percent in year 2005 to 4.1 percent in year 2006.
      - Mining sector growth improved from 15.4 percent to 16.4 percent in year 2005 and 2006 respectively.
  - Challenges & Lessons
    - Budget constraint.
    - Optimal utilization of sector capacity.
    - Review modalities of subsidies.
    - Increase value addition of minerals before exportation.
    - Unreliable flow of external resources.
    - The need of scaling up irrigation agriculture system.
    - Enhance adoption of modern technology in agriculture.
    - Increase R&D activities.
  - Way forward
    - Review modalities of subsidies.
    - Increase value addition of minerals before exportation.
    - Scale up irrigation agriculture systems.
    - Enhance adoption of modern technology in agriculture.
    - Increase R&D activities.

- Goal 3: Improved food availability and accessibility at household level in urban and rural areas
  - Outcome / Performance
    - Food self sufficiency rate: increased from 103 in year 2005 to 112 in year 2006.
    - Proportion of districts reported to have food shortages (percent): increased from 41 percent to 50 percent in year 2005 and 2006 respectively.
    - Production of food crops: reached 10.9 millions tons in 2005/06.
    - Target: Increased food crops production from 9 millions tons in 2003/4 to 12 millions tons by 2010.
    - Target: Maintained Strategic Grain Reserve (SGR) of at least 4 month of national food requirement.
  - Challenges & Lessons
    - Drought.
    - Outbreak of armyworms.
  - Way forward
    - Improve transport infrastructure.
    - Post harvest management techniques are required.
    - The need to improve flow of market information.
    - Establish highly mechanized irrigation systems.
    - Provide subsidized seeds and agro chemicals.

- Goals 4 & 5: Reducing income poverty of both men and women in urban and rural areas
  - Outcome / Performance
    - Increased cattle export earnings to Tshs 2.9 billion.
    - Rural Electrification Master Plan finalized.
    - Total smallholder land irrigation as a percent of total cultivatable land: (performance data not numerically specified).
    - 4,567 FDC trainees trained in life skills and entrepreneurship skills.
    - Increase in number of SACCOS and members; increase in total loans by T.Shs 11.6 billion (about 20 percent).
  - Challenges & Lessons
    - High cost of renewable energy.
    - Pilferages, thefts, sabotage of power infrastructure.
    - Insufficient technical capacity.
    - High cost of borrowing.
  - Way forward
    - Increase R&D.
    - Rural electrification programme.
    - Involvement of private sector in the implementation of rural energy projects.

- Goal 6: Provision of reliable and affordable energy to consumers
  - Outcome / Performance
    - Liberalization of Power sub sector effected by 2010.
    - At least three (3) Production Sharing Agreements (PSA) negotiated, concluded and signed by June 2010.
    - Secured funds for electrifying remaining district headquarters.
    - Percentage increase in the number of customers connected to the national grid and off grid sources of electricity: (performance data not numerically specified).
    - Signed three Agreements for production of electricity.
    - Nineteen PSAs negotiated and concluded.
    - Launched Website for information on petroleum (status and potentials).
  - Challenges & Lessons
    - Diversification of energy sources needed.
    - 2006 power crisis: need for diversifying energy sources.
    - Conflicts over energy resource use (sources, etc).
  - Way forward
    - Promotion of regional cooperation in the energy sector.
    - Implementation of the Power Sector Master Plan (PSMP).
    - Continued publication of data on open acreages offshore, onshore and in rift basins.

---

### CLUSTER II: IMPROVEMENT OF QUALITY OF LIFE AND SOCIAL WELL BEING

- Goal 1: Ensuring equitable access to quality primary and secondary education for boys and girls, universal literacy among men and women and expansion of higher, technical and vocational education
  - Outcome / Performance (Access and enrolment)
    - Increased gross and net enrolment of boys and girls in primary schools from 90.5percent in 2004 to 99percent in 2010.
    - Total enrolment increased from 669,137 in 2006 to 794,011 (18percent) in 2007.
    - Net enrolment at Pre primary level of 5 to 6 years old children increased from 24.6 percent in 2004 to 28.5 percent in 2006.
    - At least 50 percent of boys and girls aged 14-17 years are enrolled in ordinary level secondary schools by 2010.
    - 318,739 boys and 338,540 girls of age 14-17 (total 657,279 equivalent to 68percent) enrolled in form 1-4 in 2007.
    - Number of students registered for form one secondary education increased from 243,359 in 2006 to 401,011 in 2007 equivalent to an increase of 5 percent.
    - Fees relief for 417,712 students for 1,694 day schools was provided.
    - Managed to sponsor 33,865 form I-IV students whose parents are unable to send them to school.
    - At least 60 percent of girls and boys pass Standard VII examinations by 2010.
    - The pass rate of final Primary School National Examinations (Standard VII) improved from 22 percent in 2000 to 70.5 percent in 2006.
    - In year 2007, 80 percent (468,279) of boys and girls passed standard VII examinations.
    - Transition rate from primary to secondary school increased from 36.1 percent in 2005 to 67.5 percent in 2006. The girls increase was from 35.6 to 65.2 percent and boys from 36.6 to 69.8 in 2005 to 2006 respectively.
    - At least 25 percent of boys and girls are enrolled in advanced level secondary schools by 2010.
    - Gross enrolment of students in both public and private secondary increased from 55,134 in 2005/06 to 75,346 in year 2006/07. The percent of boys and girls enrolled at Advanced Secondary schools stands as 65 percent and 35 percent respectively.
    - In year 2007 a total number of 33,088 (19.1percent) boys and girls enrolled in form five.
    - Improve attendance in primary school from 77.5 percent in year 2003 to 81.0 percent in year 2006.
    - At least 90 percent of cohort complete standard VII. The percent of cohort completed standard VII has improved from 68.1 in year 2002 to 78.0 in 2006.
    - At least 70percent of girls and boys pass at Division I-III in Form IV examinations. 35.7 percent of boys and girls passed at Division I-III in 2006.
    - Increased number of both primary and secondary schools from 11,624 and 927 in 2000 to 14,700 and 2,274 in 2006/07 respectively.
    - Construction of 2,303 classrooms which is 167.8 percent of the intended 860 classrooms.
    - 2,183 teachers’ houses constructed which is 336.6 percent of the projected 500 houses.
    - Provision of lunch and water services to pupils in 622 under Child-Friendly Schools Programme implemented in Kisarawe, Masasi, Songea, Musoma, Ngara and Makete.
    - 6,863 pit latrines has been constructed, 9,120 under construction.
    - 160,222 desks fabricated.
  - Outcome / Performance (Quality, teachers, learning)
    - Increased proportion of children with disabilities enrolled, attend in and completing schools from 0.1percent in 2000 to 20percent in 2010.
    - Increased proportion of orphans and most vulnerable children enrolled, attending and completing primary education from 2percent in 2000 to 30percent in 2010.
    - Children with disabilities rose from 77.6 percent and 59.0 percent in 2000 to 114.4 percent and 97.3 percent in 2007.
    - A total number of 748,641 orphans have been enrolled in 2007.
    - Enrolment of children with disabilities into secondary schools increased by 12.17 percent from 130 (72 boys and 58 girls) in 2005 to 150 (81 boys and 69 girls) in 2006.
    - 50,813 under qualified primary school teachers have been up-graded to attain Grade IIIA which is the minimum qualification for primary school teachers.
    - Implementation of a crash program of teaching methodology for 6,000 qualified graduated form six students.
    - 645 teachers have been sponsored for higher learning courses.
    - 150 research work and publications were sponsored.
    - 450 secondary school head teachers and 103 districts secondary school coordinators have undergone management courses in various institutions.
    - Construction of 2 laboratories in one school in each region; and libraries for 30 public schools.
    - National average book-pupil ratio (BPR) improved from 1:20 in 2002 to 1:3 in 2006.
    - Teacher-pupil ratio (TPR) decreased from 1:58 in 2005 to 1:52 in 2006.
    - Pass rate for Std IV examinations increased from 85 percent in 2004 to 87.9 percent in year 2006.
    - The Primary School Leaving examinations (PSLE) pass rate increased from 48.7 percent in 2004 to 61.8 percent in 2005.
    - 2,650 primary school teachers have attended training related to HIV/AIDS pandemic. HIV/AIDS guidelines for Primary Schools are in place.
  - Challenges & Lessons
    - Overcrowded classes; number of classrooms still inadequate, in most recently built community secondary schools.
    - Inadequate number of qualified teachers.
    - Insufficient number of teachers’ houses, desks, toilets with full identification of children with disabilities through strengthened EMIS.
    - Reaching the target of enrolling 100 percent of children aged 5 and 6.
    - Low ability to absorb all school age going pupils in Standard one.
    - Low Supervision capacity of LGAs.
    - In some localities communities were reluctant to provide financial and physical contribution.
    - Some teachers are reluctant to work in specific regions.
    - Community need to be sensitized.
    - Financing gap for both PEDP and SEDP programmes.
    - All education facilities need to be developed as complete package.
    - Repetition caused by Standard IV examinations is the main contributing factor to non-completion.
    - Pregnancy and early marriages has continued to exist in some areas particularly in rural areas.
    - More schools especially community secondary schools face shortage of teachers and facilities. Quality control for private schools is important.
    - Mainstreaming HIV/AIDS in schools is effective but the need to intensify HIV and AIDS campaign remains.
    - Adult illiterate campaign need more efforts.
  - Way forward
    - Expand education facilities to meet requirements.
    - Enrolling more pre-primary pupils.
    - Expand – Pre primary, primary and secondary school facilities.
    - Sensitize local communities to contribute to construction of facilities.
    - Continue with IEC campaign to create awareness among the public on their roles and responsibilities.
    - Build more classrooms, teacher houses, offices and pit latrine.
    - Train and employ more teachers.
    - Expand enrolment and increase girl students in secondary schools.
    - Mobilize private sector to invest in education.
    - Improve attendance and ensure education quality simultaneously with increased number of qualified students.
    - Construct more classes and teachers’ houses.
    - Increase number of schools in each region.
    - Crash program of teaching methodology to improve pupil–teacher ratio.
    - Expand enrolment of teachers in teachers colleges.
    - Training of teachers to be intensified and expanded to meet the demand.
    - More awareness campaign among the parents.
    - More conducive environment in schools to be created for existing schools and newly constructed schools.
    - Intensify the adult literacy campaign.
    - Expand loan fund capacity to enroll all students eligible for joining universities.

*Source: ANNEX 1: SUMMARY OF OUTCOMES, PERFORMANCE, AND CHALLENGES*

### Introduction of NTA and phasing out of FTC at DIT, TCA and MIST

### Introduction of NTA and phasing out of FTC at DIT, TCA and MIST

### Education — Higher, Technical and Tertiary
- Outcome / Performance
  - 51,772 students in year 2006/07 accessed loans vis-à-vis 42,729 in the previous years 2005.
  - The percentage of technical institutions has increased from 4,437 in 2000/01 to 10,567 in 2005/06.
  - Established University Colleges of Education (Dar es Salaam and Mkwawa), Dodoma University students at UDSM.
  - Introduced access courses for female students at Universities and Technical colleges.
  - Introduced special scholarships for female students.
- Challenges & Lessons
  - Loan and University facility needs expansion.
- Way forward / Policy recommendations
  - Strengthen Education Students Loan Board.
  - Sensitize private sector to finance higher education.
  - Rationalization of tertiary institutions.
  - Expand physical resources for teaching and learning.
  - Increase funding to Tanzania Commission for Universities and National Council for Technical Education.
  - Encourage private sectors to assist qualified students to join university.
  - Expand number of universities countrywide.

### Child protection, labour and vulnerability
- Outcome / Performance
  - Reduce proportion of children in labour country wide from 25 percent to less than 10 percent by 2010 and avail to them alternatives including enrolment in primary education, COBET and employable vocational educational skills training.
  - 86 CDOs at LGAs and 15 tutors have been trained on child rights to disseminate knowledge to the community.
  - In absolute terms a total no. of 2,129 students succeeded to pass standard VII exams and joined formal education in year 2006/07.
- Challenges & Lessons
  - Inadequate funds and shortage of manpower.
  - Poverty at family level denies children basic needs e.g. education, health and safety needs.
  - Lack of effective micro and area-based schemes for disaster preparedness.
  - Current schemes for disaster preparedness are not well known by many people.
  - Difficulties in testing and declaring on health status; stigma discourages openness.
  - Inadequate number of CDOs at district level who deal with orphans and vulnerable groups.
  - Stereotype behavior and income poverty hinder inclusiveness of vulnerable groups in accessing social facilities.
- Way forward / Policy recommendations
  - Continue educating communities in child rights through CDOs at LGAs and conduct researches on identifying the magnitude of the problems and setting the means of solving them.
  - To educate communities on disaster preparedness and mitigation.

### Health — Child and Maternal (Goal 2)
- Outcome / Performance
  - Reduced infant mortality from 95 in 2002 to 50 in 2010 per 1,000 live births (target).
  - The Infant Mortality rate has decreased from 115/1000 live births to 68/1000 in year 1990s and 2006 respectively.
  - Reduced child (under five) mortality from 154 to 79 per 1,000 live births (target).
  - Under 5MR has decreased from 191/1000 to 133/1000 in year 1990s to 2006 respectively.
  - Rolling up of IMCI, early diagnosis and treatment of malaria within 24 hrs at least 60 percent of the infected children.
  - Availability and accessibility to quality health care, with health services provided by trained staff.
  - Improved immunization coverage of all antigens under EPI.
  - Health boards established in all 127 LGAs.
  - Service delivery agreements decentralized to LGAs as a function.
- Performance details and statistics
  - Reduced prevalence of stunting in under fives from 43.8 percent to 20 percent in 2010 (target).
  - Reduced prevalence of wasting in under fives from 5.4 percent to 2 percent in 2010 (target).
  - Drop in stunting from 43.8 percent to 38 percent, wasting from 5 percent to 3 percent (2004 data).
  - For rural areas the rates declined from 48 percent to 41 percent; rose in urban areas to 26 percent.
  - Increased coverage of births attended by trained personnel from 50 percent to 80 percent in 2010 (target).
  - As per TDHS 2005; 46 percent of births had been attended by medical officer/assistant, 4 percent by medical officers, 2.2 percent by clinical officers/assistant, and 37.1 percent by nurse or midwife.
  - 47 percent of births have been taken place in health centers.
  - The maternal mortality target: Reduce maternal mortality from 529 to 265 in 2010 per 100,000 (target); maternal mortality has increased from 529/1000 live births to 578/1000 in year 2000 and 2005 respectively.
- Challenges & Lessons
  - Infrastructure and supplies constraints to new anti-malaria regime and cost constraints in the provision of care.
  - MDG 4 is within reach by 2015, if services are made available; mortalities in children are due to underlying malnutrition (MDG 1), lack of education, specifically female education MDG 2.
  - It is unlikely the target of 20 percent (stunting) in 2010 will be reached. The droughts followed by hunger in 2004/05 and 2006 paint a gloomy picture.
  - Causes of malnutrition are multi-factorial: multi-pronged, long-term strategies needed.
  - Capacity of the LGAs is still low to oversee function of the Health Boards and Committee.
  - The concept of service agreements is new at the LGA levels.
  - Some LGAs have weak HSBs and committees; some LGAs are resisting service agreements.
  - HIV and AIDS has retarded efforts to reduce maternal mortality.
- Way forward / Policy recommendations
  - Scale up proven interventions like IMCI, correct Malaria Management, ITNS, hygiene and sanitation, health education, correction of malnutrition, specifically micronutrient deficiencies.
  - Address the crisis in human resource; target community involvement and ownership of proven effective health programmes.
  - Continued advocacy for health reforms.
  - TA to the LGAs in training the “HSBs and Committees.
  - Strengthen PPP and communities for decentralization.
  - Negotiate actively at government level to settle RS – composition and place of RHMTS.
  - Accelerate Regional Hospital reforms.
  - Invest operationalization of EMOC.
  - Make maternal services available and user friendly.
  - Quality Improvement.
  - Resolve the HRH crisis.
  - Focus more on rural areas for effective service provision.
  - Emergency obstetrics care is important in reversing the trends.

### HIV/AIDS — Prevention, Treatment and Stigma
- Outcome / Performance
  - Increased knowledge of HIV/AIDS transmission in the general population. Reduce HIV/AIDS stigmatizations.
  - Increase of counseling stations from 806 in year 2005/06 to 1,027 in year 2006/07.
  - A total number of 2,739 counselors have been attending HIV and AIDS related courses and trainings.
  - A total number of 849,334 people have been counseled.
  - HIV Training modules for FDCs have been prepared.
  - By July 2007, about 93,689 patients were under ARV treatment out of 188,264 enrolled.
  - 30 district hospitals have been distributed with CD4 scanning machines with affiliated accessories.
  - 40 students trained on peer education as of June 2007.
  - Effective HIV/AIDS education, environment and life skills programmes offered in all primary schools and teachers’ college.
  - Progress made in School Based Prevention for Primary and Secondary Level.
  - Promoted the use of the media and drama in the development of school-based interventions.
  - HIV/AIDS and reproductive health incorporated into primary and secondary school curricula. HIV/AIDS is now taught.
  - Teachers trained in Life Skills; about 480 schools have conducted training in HIV/AIDS-based Life Skills and Sex Education under the District Response Initiative (DRI). There are currently about 132 schools with teachers trained in HIV/AIDS-based Life Skills education.
  - Peer education: so far 175 schools have trained peer educators.
- Challenges & Lessons
  - The current VCT model is challenged as being stigmatizing; isolates AIDS from the other disease.
  - Inadequate VCT for HIV and AIDS.
  - AIDS cases still a problem; new measures should be applied to avoid new HIV/AIDS cases.
  - HIV/AIDS remains a scourge No. 1 in the nation, a disaster.
  - HIV/AIDS erodes and reverses all gains in national development.
  - Inadequate of trained primary teachers on the areas of environment and HIV/AIDS.
  - MOEVT has a pivotal role in preventing new infection.
- Way forward / Policy recommendations
  - Harmonize HIV/AIDS activities conducted by MDAs, LGAs, NSAs and others in combating the pandemic.
  - Implementing HIV/AIDS interventions programme in work places.
  - Training Institutions, MDAs, LGAs and NSAs sensitized on HIV/AIDS; seminars for Peer Educators.
  - Monitoring and Evaluation of HIV/AIDS activities in MDAs, LGAs and NSAs.
  - Ministry of education and vocational training mandated to mainstream HIV/AIDs activities under its core mandate.
  - Trained teachers in Life Skills to be provided countrywide.
  - Peer Education Programmes are effective tools for influencing positive behavior change in different age groups.
  - More efforts to be directed to prevention and treatment.
  - Scale up ARVs R.
  - Continued advocacy for behavior change.
  - HIV/AIDS indicator Survey (THIS) to be conducted in 2007/08 and after this survey the clear baseline indicator will be determined.
  - Operationalize the National HIV/AIDS Multisectoral Framework.

### Social protection and vulnerable groups (Goal 4)
- Outcome / Performance
  - Increased number of orphans and most vulnerable children reached with effective social protection.
  - Survey conducted in 4 regions: Arusha, Kilimanjaro, Manyara, and Mbeya. And six FDCs. 13,424 Orphans and Most Vulnerable Children were identified; among them 40 children are assisted in education.
  - Development of the National Social Protection Framework (NSPF).
  - A total number of 225 dispensaries have been constructed in rural areas.
  - National OVC/MVCs identification programme implemented in 24 districts.
  - National Social Security Policy developed.
  - National Disability Policy developed.
  - National Ageing Policy developed.
  - Guidelines for accessing free health treatment for vulnerable groups have been developed.
  - Identification of OVC/MVCs.
- Targets and indicators
  - 20 percent of children and adults with disabilities reached with effective social protection measures by 2010 (target).
  - 40 percent of eligible older people reached with effective social protection measures by 2010 (target).
- Challenges & Lessons
  - High level of poverty.
  - Increase of HIV/AIDS deaths.
  - Increase of family problems.
  - Lack of sufficient funds to implement programmes.
  - High unemployment.
- Way forward / Policy recommendations
  - Conduct survey in the whole country on OMVC to find solutions.
  - To disseminate knowledge for conducting surveys to District Community Development so that they can incorporate it in their routine work.
  - Finalize and start implementing the Multi sectoral Social Protection Framework.
  - Finalize and implement the National Disability Implementation Strategy.
  - Finalize and implement National Ageing Implementation Strategy.
  - Support to vulnerable groups.
  - Increased capacity of poor households to care for vulnerable groups targeting older people, orphans, other vulnerable children and PLWHAs.
  - Reduce violence against women.
  - Expand economic development.

### Water, sanitation, environment and shelter (Goal 3)
- Outcome / Performance
  - Increased proportion of rural population with access to clean and safe water from 53 percent in 2003 to 65 percent in 2009/2010 within 30 minutes of time spent on collection of water (target).
  - Population with access to clean and safe water in rural areas has increased from 53.5 percent to 55.7 percent in year 2005/06 and 2006/07 respectively; urban increased from 73 percent to 78 percent in same years.
  - 653 water well drilled in rural areas.
  - 82 percent of water users have their water line installed with water-meter.
  - Tshs 101 billion collected from water users as service charges.
  - Increased access to improved sewerage facilities from 17 percent in 2003 to 30 percent in 2010 (target).
  - 17 percent access to sewerage service in different Urban Water Authorities was maintained.
  - 25 percent of the wastewater generated daily was collected and disposed through sewerage systems.
  - 24 Districts had a “head start” having begun implementation of the Rural Water Supply and Sanitation Projects (RWSSP).
  - 493 water resource points have been inspected to examine water pollutants and environmental degradation agents.
  - 95 percent of people with access to basic sanitation by 2010 (target).
  - Planned and serviced urban settlements with functioning town planning procedures in place: 40 samples of building designs types produced for Mwanza city, Tabora and Mbeya Municipalities.
  - 18 interim Land Use Plans of urban settlements were prepared.
  - 4,585 Letters of Offer and 9,107 Certificates of Title prepared.
  - 9,107 Certificates of Title and 9,491 documents registered.
  - 2,496 valuations prepared and approved.
  - 102 and 538 properties granted approval for Mortgage and Transfer respectively.
  - 200,000 properties in unplanned settlements identified and 30,000 residential licenses issued.
  - 211 village land certificates and 3,940 certificates of customary rights of occupancy issued.
- Challenges & Lessons
  - LGAs limited staff hindering accomplishment of water projects on time.
  - Existence of drought in the country causing the water bodies loss water.
  - Inadequate skills to LGAs staff to manage water resources and facilities.
  - Drought caused water problem almost all over dry regions.
  - Environmental degradation.
  - Small rate of investment in water harvesting and supply.
  - Limited resources in terms of human resources and fund to accomplish planned activities.
  - Old sewerage facilities require rehabilitation, expansion; need construction of new lines.
  - Most land parcels/Plots are not surveyed, double allocation, forged document.
  - Poor attitude by rural residents on use of latrines.
  - Faster environmental degradation and pollutants disposal resulting from daily human activities.
- Way forward / Policy recommendations
  - Employ qualified staff (professional staff) and enhance training of staff and seminar provision.
  - Employ adequate and professional staff at Ministerial and LGAs level.
  - Introducing more Water Supply projects in both rural and urban areas.
  - Enhance rain water harvesting advocacy to water users as well environmental practice and investing more on large water sources to ensure sustainable water supply.
  - Enhance rehabilitation, expansion and construction of new sewerage facility in 2010 in respective urban areas.
  - The need to include Municipals with no sewerage facilities in the plan.
  - All districts to be in the Rural Water Supply and Sanitation Projects.
  - LGAs to effectively implement RWSSP.
  - Promote sanitation in rural areas; enhance sanitation, upgrade latrine, hygiene and Water Supply Programme in rural areas.
  - Observe environmental conservation practice nationwide; enhance environmental conservation in a participatory approach nationwide.
  - To produce samples of building design types to cater for demands of several land developers to reduce bureaucracy in issuing of building permits; use those samples to shorten procedures needed to get building permit.
  - Need to allocate sufficient funds for acquisition of land for plot production.
  - Survey and identify more properties to allow issuance of certificate of titles and residential licenses.
  - Plot verification at Tegeta, Mbezi & Boko and issuance of watermarked certificates of occupancy.

### Infrastructure and service delivery (Goal 5)
- Outcome / Performance
  - Improve passable rural roads from 50 percent in 2003 to at least 75 percent in 2010 (target).
  - Ensure the basic infrastructure exists, in particular adequate facilities and a network of passable roads, to enable the delivery of basic social services.
- Challenges & Lessons / Way forward
  - Ensure basic infrastructure and network of passable roads to enable delivery of basic social services.

*IMF content unit: _cr0822 - Introduction of NTA and phasing out of FTC at DIT, TCA and MIST*

### 62.7    km    of    district    roads    were    rehabilitated during 2006/07.

### _cr0822 - 62.7    km    of    district    roads    were    rehabilitated during 2006/07.

### Infrastructure rehabilitation and service delivery
- 62.7    km    of    district    roads    were    rehabilitated during 2006/07.
- Monitoring and control/supervision visits to on-going projects were conducted.
- Funding support to MWTI to foster capacity to train contractors, engineers and other related professionals were provided as requested.
- Inadequate resources for refurbishment of the proper infrastructure along with sanitation networks.
- The need to involve local communities in planning and financing part of the constructed social infrastructure.
- Enhancing the capacity at LGAs level to undertake education, health, road and water projects under their jurisdiction.
- Partnerships with CSOs and the private sector in expansion and provision of quality social services are in place.
- Realistic, streamlined and useful systems for planning and data analysis are in place.
- A system for collecting, analyzing, publishing and dissemination of various data related to infrastructure has been established.
- During the year 2006/07, two Hospitals (Tosamaganga and Dr. Artiman) have approved their hospital to be used as District Designated Referral Hospital.

### Governance and accountability — Cluster III (Goals and outcomes)
- Goal 1: Structures and Systems of governance as well as the rule of law are democratic, participatory, representative, accountable and inclusive.
  - Ensure representative, inclusive (poor and vulnerable groups) and accountable governance institutions operating at all levels.
  - The number of birth and death registered has significantly increased and currently has reached 829,384 and 118,538 respectively.
  - 31.1percent of villages/mtaa have and use birth registers.
  - Percentage of women I decision making position at central government, local government t and regional secretariat rose to 22.02 percent, 38.36 percent and 25.44 percent respectively.
  - Proportion of women representatives in the parliament has currently reached 30.4 percent.
  - Over 75percent of communities are hold quarterly meetings with public minutes.
  - Over 95percent held annual meetings.
  - 100   percent   of   Local   Government   Authorities   complied   with   posting   information  of  budgets,  revenues  and  actual   expenditures   on   the   public   notice boards for public use.
  - Available data on CCROs is not disaggregated thereby making it difficult to assess ownership by gender at the household level.
  - Inadequate analysis cum consumption of the information by the community at the grass root level.
  - Very low level of awareness and use of public information that is provided by LGAs at the grass root level.
  - Way forward highlights: need to disaggregate available information; a study to establish baseline information on total number of people owning CCROs at household level and by gender; continue scaling up public awareness with respects to the role and usefulness of public information; conduct a baseline survey for key performance indicators for future monitoring and evaluation purposes.

- Land administration and documentation
  - 4,585   Letters   of   Offer   and   9,107   Certificates of Title prepared.
  - 9,107    Certificates    of    Title    and    9,491 other documents registered.
  - 200,000    properties    in    unplanned    settlements    identified    and    30,000    residential licenses issued.
  - 211 village land certificates and 3,940 Certificates  of  Customary  Rights  of  Occupancy issued.

- Goal 2: Equitable allocation of public resources with corruption effectively addressed.
  - Domestic revenue by-pass the targets to 111.3 percent as at March 2006/07.
  - According to PPRA report (PAF), 20 procuring entities out of 339 have been audited and had an average level of compliance of 39 percent.
  - Clean certificates to MDAs: 2 4percent in 2005; 57percent in 2006.
  - Clean certificates to LGAs: 9percent in 2005; 53percent in 2006.
  - The number of councils connected to IFMS network has increased to 85 out of 122 total councils.
  - The number of corruption case reported by PCCB were 3,121 in 2005, while in 2006/07 out of 19 corruption case files reported 15 cases qualified for court hearing.
  - In 2005, the number of corruption cases convicted was 3.5percent of investigated cases sanctioned for prosecution by the Director of Public Prosecutions.
  - Challenges: low-level capacity at LGA level to spend allocated resources; auditing of public resources faced shortage of resources; inadequate awareness raising; need to strengthen auditing activities and National Audit Office capacity.
  - Way forward: continue strengthening NAO; continue to strengthen awareness raising activities; more training on ethics and integrity in professionalism.

- Goal 3: Effective Public Service framework in place to provide foundation for service delivery improvements and poverty reduction.
  - Decentralization by devolution institutionalized and implemented; resource envelop has increased to 19.7 percent in 2006/07 to LGAs.
  - Increased pay levels for public servants to 107 percent of the Medium Pay Targets. The baseline of 86 percent in 2005 (PAF).
  - Challenges: understanding of decentralization by devolution needs to be raised among central and local government authorities; need to harmonize the process in the constitution.
  - Way forward: continue sensitization and awareness raising among MDAs.

- Goal 4: Rights of the poor and vulnerable groups are protected and promoted in the justice systems.
  - Percentage of court cases outstanding declined.
  - Reduction of prisoners in remand for two or more years.
  - Appointment of 23 judges, 77 residents’ magistrates, 46 primary courts magistrates and 211 attorneys have been made in 2006/07.
  - Accomplishment of LSRP Phase I civilianization of prosecution services in 6 regions.
  - percent of outstanding cases for more than a year: 58percent in 2005; 46.7percent in 2006.
  - Challenges: shortage of staff and other facilities in courtroom; delays in instituting information system to link various legal departments.

- Goal 5: Reduction of political and social exclusion and intolerance.
  - Number of cases filed on the infringement of human rights: In 2004/05    2789; In 2005/06    3812.
  - A total of 4,523 new complaints on human rights violations were received in 2006/07 and 3,149 complaints were resolved.
  - The Commission of Human Rights and Good Governance received 226 complaints for human rights violations from remandees, out of these 39 were advised and 187 were resolved.
  - Establishment of 2 new regional offices for the commission of human rights at Lindi and Mwanza region.
  - Commission for Human Rights managed visited and inspect a total number of 35 prisons and 53 police stations in 33 districts in 2006/07 to monitoring.
  - Challenges: lack of capacity in modern technology for dissemination and sensitization.
  - Way forward: need to partner with other stakeholders in dissemination and awareness raising; involve other stakeholders in dissemination and awareness raising activities.

- Goal 6: Improved personal and material securities, reduced crime, eliminate sexual abuse and domestic violence.
  - Average number of inmates per facility as a percentage of authorized capacity: 96.3percent in 2005; 185percent in 2006.
  - The number of inmates has been reduced from 44,565 to 39,782 in year 2006/07.
  - Number of criminal cases reported:
    - court of appeal: 221 in 2005 and 222 in 2006.
    - High court: 3,291 in 2005 and 4,344 in 2006.
    - District courts: 1998 in 2005 and 22,099 in 2006.
  - 931 prisoners serve their sentences out of prisons.
  - Expansion and rehabilitation of prisons to accommodate prisoners from 22,699 to 27,653.
  - Installation of LAN/WAN connection to 7 regional police stations.
  - Challenges: Inadequate infrastructure for law enforcers; problem in identifying credible NGOs in districts which can assist the government.
  - Way forward: more effort to reach more areas and identify credible NGOs and other stakeholders; continue to strengthen the capacity of various stakeholders.

- Goal 7: National cultural identities enhanced and promoted.
  - Two Acts (National Kiswahili Council and Film Censorship Board and Stage Play) under review.
  - The Government signed a protocol for establishment of Kiswahili Commission for East Africa.
  - African Union has considered Kiswahili as one of the formal languages and some African Leaders have used Kiswahili in the AU meetings.
  - In the sports and games, the government has employed internationally recognized coaches.
  - Challenges: Globalization hinders culture transferability to many young people; inadequate culture infrastructures; shortage of open space for playing.
  - Way forward: continue reviewing culture policies; restore sports and games at schools and colleges; facilitate international conferences to promote Kiswahili; raise awareness of copyrights for artistic work.

### MKUKUTA implementation framework, alignment and M&E
- Aligning Sector Development Plan/Strategies and Local Government Authorities Development Plan/Strategies with MKUKUTA:
  - Sectors, LGAs and MDAs facilitated to review their SDPs and conduct situational analysis.
  - Alignment of MDAs and LGAs strategic plan with MKUKUTA was done and SBAS and PLANREPII software was used to allocate resources to MDAs Budget.
  - SDPs and LGAs plan objectives and actions aligned with NSGRP.
  - Continue to strengthen linkage of SDP and LGAs plan and that of MKUKUTA.
- Aligning MKUKUTA with Budget and PER Process:
  - NSGRP outcomes prioritized and sequenced.
  - MKUKUTA aligned with Budget process (PER/MTEF).
  - The Government has developed: Budget guideline for MDAs and LGAs; Harmonization Manual to guide government processes; Training; Harmonization of sector strategic plans with MKUKUTA cluster Strategies.
  - Sequencing the priority outcomes is needed.
- Strengthening Accountability and Reporting of Sectors and LGAs:
  - Sector and LGAs reporting on NSGRP targets; progressively reviewing of Sector reporting.
  - RIMKU Macro software developed.
  - PLANREPII to be upgraded to be read by RIMKU macro; process to upgrade PLANREPII is at advanced stage.
  - Training of the software.
- Integrating/mainstreaming cross cutting issues into sector programmes and plans (MDAs and LGAs):
  - Cross-cutting issues integrated/mainstreamed into sector programs and plans.
  - Some fragmented initiatives started i.e. HIV/AIDS as objective 1 in all MDAs and LGAs MTEFs.
  - Environmental Impact assessment as mandatory to all new development projects and programmes.
  - Development of generic tool for mainstreaming/integrating X-Cutting issues.
  - Facilitate sectors experts to integrate X-cutting issues in their programs and plans.
- Review and Strengthen the MMS, sector and LGA M&E systems:
  - PMS strengthened in relation to MKUKUTA.
  - PMS was reviewed and MMMP was developed.
  - Production of quarterly reports (news letter).
  - Production of annual reports (progress reports, PHDR 2006, VoP 2007 and MAIR 2007).
  - Sector M&E and LGA M&E need strengthening.
  - Link of MMMP and MDAs and LGAs M&E systems need strengthening.
  - MMS strengthening; packaging and dissemination of information from the reports; printing of reports.
- Mainstreaming MKUKUTA into NSAs:
  - MKUKUTA cluster and X-cutting issues mainstreamed in NSAs.
  - NSAs and other actors trained in MKUKUTA and their related fields.
  - NSAs facilitated through training on MKUKUTA issues.
  - Web enabled RIMKU software for NSAs was developed; launching of Webenabled RIMKU software for NSAs.
- Support to harmonization of key national development processes (PER, MTEF, NSGRP, TAS, PRBS, PRSC and PRGF):
  - NSGRP harmonized with PER/MTEF process.
  - Budget guideline were developed.
  - Meeting of PER sector working groups have been conducted.
  - Annual PER/ MKUKUTA consultations meetings conducted.
  - NSGRP harmonized with TAS, PRBS, PRSC, and PRGF.
  - Meetings between the GoT and DP on harmonization has been conducted.
  - Harmonization calendar has been finalize.
  - Joint missions and reviews has been organized.
  - Continue to improve the budget guideline; PER/MKUKUTA annual consultations to be rolled over in the regions and LGAs.
- Operationalize the NSGRP Communication Strategy:
  - Implementation plan operationalized and available.
  - Terms of reference for Views of the people were developed.
  - Communication Working Group has been meeting regularly.
  - Way forward: Prepare implementation plan for NSGRP Communication Strategy; initiate a dialogue/debate within and among stakeholders from the results obtained on PMS.

*Source: _cr0822 - 62.7    km    of    district    roads    were    rehabilitated during 2006/07.*

### 10. Initiatives for ensuring inter-sector

### 10. Initiatives for ensuring inter-sector collaboration during MKUKUTA implementation

### Outcome indicator
- Inter- sectoral collaboration fostered and enhanced

### Outcome
- Undertake deliberate initiatives to ensure there is inter-sector collaboration during MKUKUTA implementation

### Outputs Targets
- Circular issued and implemented
- MKUKUTA Costing exercise were conducted for the following sectors:- Water, Energy, Roads, agriculture, Health, Education, Employment, land

### Steps taken
- Circular issued and implemented
- MKUKUTA Costing exercise were conducted for the following sectors:- Water, Energy, Roads, agriculture, Health, Education, Employment, land

### Way forward
- Draft a circular on MKUKUTA inter-sectoral collaboration to be issued by the CS
- Complete costing exercise for the remaining sectors-governance, legal sector, Industrial sector e.t.c
- Develop Investment plan from the costing exercise conducted
- Introduce an inter-sectoral module of the MKUKUTA clusters and targets in the new TSED version
- Strengthening of CWGs

---

### 11. Review of core reforms (Institutional and structural reforms) and programs

### Outcome indicator
- Reforms revisited and focused on poverty reduction

### Outcome
- Harmonized institutions and structural reforms

### Outputs Targets
- Reforms are in harmony and consistent with MKUKUTA
- Core reforms and programs effectively contribute to achieving MKUKUTA outcomes

### Steps taken
- Number of reforms have been implemented and reviewed-LSRP, PSRP, LGRP, NACSAP e.t.c.
- Assessment of reforms has been conducted

### Way forward
- Review the reforms as per the recommendations

---

### 12. Development of the Social Protection Strategy and further analysis of Human Rights-poverty nexus

### Outcome indicator
- Implementation framework fully operational

### Outcome
- Protection of vulnerable groups from falling into poverty trap. And progressive realization of Human Rights

### Outputs Targets
- SP developed and implemented
- Human Rights integrated into development frameworks

### Steps taken
- SP consultations conducted and involved MDAs, LGAs , NSAs and DPs
- Draft SP developed and is ready for the final round of consultations

### Way forward
- Finalize SP
- Mobilize resources
- Implement SP
- Co-ordination and Monitoring

---

### 13. Scaling up implementation of the Growth Cluster

### Outcome indicator
- Implementation framework fully funded

### Outcome
- Growth rate increased from 6 percent to 10percent by 2010
- Increased exports s

### Outputs Targets
- Development of Mini Tiger Plan.
- Construction of the Special Economic Zones

### Steps taken
- Development of Mini Tiger Plan.
- Construction of the Special Economic Zones
- Identification of suitable areas for tree planting

### Way forward
- Speed up implementation of Special Economic Zones
- Spread spatially the SEZs
- Re-examine/develop a comprehensive growth strategy

---

### 14. Scaling up implementation of MKUKUTA

### Outcome indicator
- Update systems and strategies

### Outcome
- Resource Mobilization for MKUKUTA updated
- Expanded Financial Resource (Domestic and external) Mobilization strategy

### Outputs Targets
- Increased domestic resources collection
- Reforms in TRA
- Resource Allocation for MKUKUTA updated
- Updated SBAS and PLANREPII

### Steps taken
- SBAS and PLANREP were revised

### Way forward
- Develop new Financial Resource Mobilization Strategy
- More improvement of SBAS, IFMS and PLANREPII

---

### 15. Strengthening MKUKUTA Reporting System

### Outcome indicator
- Update MKUKUTA Reporting Systems

### Outcome
- Reporting system for implementation of MKUKUTA updated

### Outputs Targets
- Revised RIMKU

### Steps taken
- RIMKU Micro and Macro software were developed for both Government and Non State actors

### Way forward
- Revise and update RIMKU macro consistency with other Government systems

---

### 16. Strengthen Human Resource to implement MKUKUTA

### Outcome indicator
- Human Resource Development Strategy for MKUKUTA implementation developed

### Outcome
- Human Resource development strategy for implementing MKUKUTA updated
- Adequate staff with appropriate skills for MKUKUTA implementation

### Outputs Targets
- Uncoordinated capacity building initiatives in MDAs, LGAs and NSAs

### Steps taken
- Uncoordinated capacity building initiatives in MDAs, LGAs and NSAs

### Way forward
- Conduct Capacity needs assessment
- Coordinate Capacity building initiatives

*Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0822.pdf*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0822.pdf_