THE UNITED REPUBLIC OF TANZANIA NATIONAL FIVE YEAR

THE UNITED REPUBLIC OF TANZANIA NATIONAL FIVE YEAR DEVELOPMENT PLAN 2016/17 – 2020/21 “NURTURING INDUSTRIALIZATION FOR ECONOMIC TRANSFORMATION AND HUMAN DEVELOPMENT” Presentation to Development Partners Ministry of Finance and Planning 28 th April 2016

Outline 1. Introduction 2. Objectives of FYDP II 3. Priority Areas of the Plan 4. Financing Strategy 5. Implementation Strategy 6. Monitoring and Evaluation 2

1. INTRODUCTION 3

1. INTRODUCTION… Ø The Five Year Development Plan 2016/17 – 2020/21 (FYDP II) will therefore succeed the FYDP I which expires at the on June 2016, in line the current planning framework. Ø Following the Government’s decision to merge the Five Year Developement Plan and MKUKUTA frameworks, FYDP II now has dual focus: u u Growth Focused interventions: geared at transforming Tanzania into a middle-income country through industrialisation Human development focused interventions: championing the fight against poverty through enhancing income security, access to social services, responsive governance and social protection. Ø The theme of the National Development Plan 2016/16 – 2020/21 is “Nurturing Industrialization for Economic Transformation and Human Development”, -to take into account the dual focus of the Plan. 4

2. OBJECTIVES OF FYDP II To mobilize and organize the national resources strategically in order to: Ø Nurture an industrial economy in a bid to transform Tanzania into a semi -industrialised nation by 2025; Ø Accelerate economic growth while making sure that the quality of that growth will benefit the majority of the people in terms of significant poverty reduction and job creation especially for the youth and women; Ø Creating a conducive environment for business and enterprise development; and Ø Foster and strengthen implementation effectiveness. 5

3. PRIORITY AREAS FYDP II identifies four broad priority areas in which its interventions will be focused on, namely: i. Growth Focused interventions: geared at transforming Tanzania into a middle-income country through industrialisation; ii. Human development focused interventions: championing the fight against poverty through enhancing income security, access to social services, responsive governance and social protection; iii. Interventions to create a conducive environment for enterprises and business to thrive; and iv. Interventions to strengthen implementation effectiveness. 6

3. PRIORITY AREAS… 3. 1 GROWTH FOCUSED INTERVENTIONS Strategic interventions and initiatives to foster economic growth and build an industrial economy, the identification of which took the following into consideration: . 4 Adding value to the country’s vast array of natural resources and primary products; 4 Availability of markets at the national, regional and international levels (areas where Tanzania has comparative advantages) 4 Strategically using the country’s unique geographical position as a gateway to and from the Eastern and Southern African region 4 Promoting industries that use medium level technology for creation of employment opportunities for the youthful population that the country is endowed with. 4 Facilitating the efforts to layout a solid base for the development of basic industries (e. g. steel, chemical, fertilizer, and cement). 7

3. PRIORITY AREAS… 3. 1 GROWTH FOCUSED INTERVENTIONS… § Strategic Interventions in Manufacturing a) SEZ/EPZ: Kurasini Logistics Centre; Mtwara corridor (oil and Gas); Mtwara SEZ (Fertilizers, Ship building); and SEZs in Bagomoyo, Kigoma, Tanga, Ruvuma, Mara, Manyoni and Bunda; b) Industrial Parks: Tanga - Kange; Kilimanjaro KMTC; Mtwara, Lindi, Songea, Sumbawanga, Dodoma, Singida, Shinyanga, Kagera, Manyara, Njombe, Katavi, Geita, Simiyu, and Morogoro; c) MSMEs Parks: capacity building on efficiency and productivity – KAIZEN II; improve SMEs infrastructures in all industrial regions; d) Automotive industries: Commercialization of Nyumbu; revamping General Tyre (Arusha); Camartec (Arusha); and motorcycle assembly plant; e) Petrol and Chemical industries: Liquidation of Natural Gas (LNG) and construction of LNG plant in Lindi; Mtwara Petrochemical Industries Complex; improvement of pharmaceutical laboratory at TIRDO; f) Construction Industries: Ceramics, cement, Kisarawe kaolin; g) Agro-Industries and Agro-processing: Textiles; leather; edible oil; sugar etc ; h) Iron and steel: production and development of iron technology; 8

3. PRIORITY AREAS… 3. 1 GROWTH FOCUSED INTERVENTIONS… § Strategic Interventions in the Mineral sub-sector Processing of precious metals and gemstones; Caustic Soda Refinery Plant ; iron ore and steel industry; Kabanga Nickel; and Mkuju Uranium Projects; § Strategic Interventions in the Agricultural sector a) Increase in production and productivity of food and cash crops: maize, paddy, sunflower, cotton; b) ASDP II Project; c) Mkulazi Agricultural City; d) Development of Irrigation schemes; and e) Livestock, forestry and fisheries. 9

3. PRIORITY AREAS… 3. 2 HUMAN DEVELOPMENT FOCUSED INTERVENTIONS § Strategic Interventions Education aiming at: a) Consolidating gains in education, including scaling strengthening school management, inspection, and standards; b) Improving quantity and quality of specialized skills to raise competitiveness of the human resource in general and for strategic industries under FYDP II. This includes addressing skill level mix and skill mismatch by ensuring that training is a demand driven; c) Streamlining the management and regulation of the vocation education sub-sector, including clarifying the mandate of the regulators in the subsector. d) Enhancing participation of the private sector in education sector; and e) Increasing access to field studies, practical, and internship training to young graduates in private sector industries. 10

3. PRIORITY AREAS… 3. 2 HUMAN DEVELOPMENT FOCUSED INTERVENTIONS… § Strategic Interventions in Health aiming at: a) Improving quality and standards of health delivery system; b) Providing adequate and equitable deployment of human resources for health; c) Ensuring adequate availability and access to medical supplies; d) Increasing coverage and improving health insurance, including coverage of the vulnerable groups, e. g. the old and those with disabilities; e) Expanding and improving health infrastructure and facilities; f) Improving both neonatal care and antenatal care; and g) Improving nutrition. 11

3. PRIORITY AREAS… 3. 2 HUMAN DEVELOPMENT FOCUSED INTERVENTIONS… § Strategic Interventions in Water, Sanitation and Hygiene aiming at: a) Ensuring access and availability of safe water in rural, urban areas and in public facilities (schools, health facilities, etc. ) as well as reducing distance to water points; b) Improving availability and access to quality sanitation facilities at household level and in public places both in rural and urban areas. c) Improving solid and liquid waste management. d) Improve protection and restoration of water-related ecosystems and watersheds. 12

3. PRIORITY AREAS… 3. 2 HUMAN DEVELOPMENT FOCUSED INTERVENTIONS… § Strategic Interventions in Water, Sanitation and Hygiene aiming at: a) Ensuring access and availability of safe water in rural, urban areas and in public facilities (schools, health facilities, etc. ) as well as reducing distance to water points; b) Improving availability and access to quality sanitation facilities at household level and in public places both in rural and urban areas. c) Improving solid and liquid waste management. d) Improve protection and restoration of water-related ecosystems and watersheds. 13

3. PRIORITY AREAS… 3. 2 HUMAN DEVELOPMENT FOCUSED INTERVENTIONS… § Strategic Interventions in Human Settlement & Sustainable Urban Management aiming at: a) Improving quality of urban and commercial centers, housing & dwellings as well as the surroundings in rural and urban; b) Ensuring proper land use planning, management & settlement development, including enforcing property rights and standards, as well as promoting the development of satellite towns; c) Carrying out reforms in land sector, including redevelopment of unplanned urban settlements and increase the number of surveyed and planned rural settlements; and d) Ensuring environment sustainability in development of township, towns, and cities, including strengthening national and sub-national (LGAs) land development planning. 14

3. PRIORITY AREAS… 3. 2 HUMAN DEVELOPMENT FOCUSED INTERVENTIONS… § Strategic Interventions Strengthening Capability & Social Protection aiming at: a) Empowering and improving the capabilities of the poor to enable them to effectively utilize the resources around them. Supporting provision of skills, joint/group savings and investment e. g. VICOBA, etc. entrepreneurial skills, extension services, counseling and encourage the able-bodied poor to engage in productive activities, etc. ; b) Undertaking reforms/review of the current social support and protection schemes such as the Cash Transfer scheme under TASAF to eliminate risk of creating dependence among the able-bodied. The most vulnerable include people with special physical and psychological needs. c) Reforming public works schemes, contributory social security schemes and value addition agricultural support programmes targeting the working age. 15

3. PRIORITY AREAS… 3. 3 INTERVENTIONS AIMING AT CREATING A CONDUCIVE ENVIRONMENT FOR BUSINESS ANDE NTERPRISE § Interventions aiming at providing requisite infrastructure especially electricity (production, tansmission and distribution) in rural and urban areas; water infrastructures; construction and rehabilitation of railway infrastructure; roads and bridges, ports and airport infrastructures, e. g. a) Railway (Standard gauge): construction of the central railway to Standard Gauge; Mtwara - Mbambabay and braches to Mchuchuma to stdandard gauge ; and Tanga - Arusha - Musoma railway. b) Roads: Dar es salaam - Chalinze - Morogoro Express way, (200 km); Arusha - Moshi - Himo (105 km); Kidahwe (Kigoma) - Ilunde - Malagarasi – Kaliua, (88 km); Itoni – Mkiu – Ludewa – Manda (211. 42 Km); Bagamoyo – (Makurunge) – Saadan – Tanga, (178 km) etc. c) Rural roads 16

3. PRIORITY AREAS… 3. 3 INTERVENTIONS AIMING AT CREATING A CONDUCIVE ENVIRONMENT FOR BUSINESS ANDE NTERPRISE … a) De-congestation of Dar es Salaam: Dar es Salaam Urban Transport Master Plan; Ubungo Interchange, “Tazara Fly-over”; “Uhasibu Fly-over”; “Chang’ombe Fly-over” ; “Dar es Salaam Outer Ring Road “; . b) Ports: Container Terminal - Berths 13 – 14 Dar es Salaam; Kisarawe Cargo Freight; Bagamoyo Port; Mwambani port, Tanga; Mtwara Port; Kigoma port; and Mwanza South port ; Air transport: Revamping Air Tanzania Company Limited; c) § Improving availability of and access to land for investment; § Increase availability of skilled personell in priorty areas; § Policy and institutional reforms to: ease business start up processes; provision of business permits; acquiring utility connection to electricity; registering of property; getting credit and accessing finances; protecting investors; paying taxes; cross-border trading; enforcing contracts; and resolving insolvency 17

3. PRIORITY AREAS… 3. 4 INTERVENTIONS TO STRENGTHEN IMPLEMENTATION EFFECTIVENESS Strategic interventions and to strengthen implementation are geared at: a) Improving skills in project preparations in all stages; b) Putting a strategy to use government budget as an incentive to parastatals and private sector investment in priority projects; c) Setting SMART indicators to development projcts; d) Timely disbursement of funds; e) Identification of risks and mitigation measures; f) Improving monitoring, evaluation and reporting of developemnt projects; 18

3. PRIORITY AREAS… FLAGSHIP PROJECTS FOR TRANSFORMATIVE IMPACT Among priority interventions, there are large developmental projects to influence and catalyze Tanzania’s industrialisation and socio-economic transformation, chosen based on their potency to propel Tanzania’s supply structure to higher level of growth and value content. Proposed Flagship Projects are: 1. Construction of a new Central Railway Line to Standard Gauge. 2. Reviving Air Tanzania Company Limited (National Carrier) 3. Iron Ore Mining and Iron and Steel Complex Plant; Liganga and Mchuchuma 4. Establishment of Special Economic Zones in Tanga; Bagamoyo; Kigoma; Ruvuma and Mtwara 5. Establishment of Kurasini Trade and Logistics Centre 6. Establishment of the Agricultural City of Mkulazi; and 7. Construction of LNG Plant in Lindi. 8. Mass training of young Tanzanians in specialised skills (oil & gas, engineering, health care, etc) 19

4. FINANCING STRATEGIES A combination of traditional and Innovational strategies will be employed as followed Ø Continue streamline exemptions extended to private sector and other entities; Ø Support reforms to formalize the informal sector and bring it in the tax net; Ø Strengthening the capacity of the Local Governments to mobilize resources; Ø Strengthen the capacity for collection of non-tax revenue and rationalize applicable and methods of retention schemes across the collecting agencies; and in the following Ø Domestic Borrowing: Strengthening and capitalize the domestic Development Finance Institutions as well as reforms to enable the private sector raise the capital needed for investments in the industries and other sector. Ø Establishment and use of natural resource fund, Revenue bonds Ø ODA, Ø Other Official Flows and Other External resources (Foreign market bonds, Climate change fund, Debt to health initiative, Diaspora bond etc. ) Ø Soliciting PPPs 20

4. FINANCING STRATEGIES Ø Promoting Private Sector Financing through: 4 Strategies to lure the local & foreign private sector to participate aggressively /proactively in implementing the Plan. Attracting foreign direct investment (FDI) and portfolio investment. 4 Nurturing a culture of integrity and adherence to corporate social responsibility and disclosure regulations in order to facilitate the estimation of resources available in private sector and their sources. 4 Developing mechanisms to facilitate pooling of individuals’ savings and resources and encouraging parties to unite and undertake large projects jointly. 4 Enticing the private sector to collaborate actively with the public as well as other members of the private sectors, through including public-private partnership and/or other suitable arrangements. 21

5. IMPLEMENTATION STRATEGY Ø Coordination of the plan implementation will be done through a sequence of interventions to include 4 Annual Development Plans (ADPs) 4 Budget Guidelines 4 Annual Plan and Budgets 4 Budget Scrutiny 4 Linking individual and institutional performance evaluation criteria with targets of the Plan 4 Proper coordination and implementation action plans alignment of policies, institutional priorities, 4 Strengthening decentralization, including implementation of local economic development planning 4 Instituting a robust Monitoring and evaluation Framework 4 Creation of SMART performance indicators for each of the implementing MDAs; 4 Adoption of a real time response to a problem during implementation. 22

5. IMPLEMENTATION STRATEGY Ø Roles and Responsibilities 4 MOFP: responsible for planning and budgeting, and administering disbursement of finance according to the approved plans’ interventions and ensuring that relevant implementing institutions of Government and non-state actors, develop action plans, cash requirements-flows and results indicators that are consistent with realization of planned interventions for FYDP-II. 4 PO-PSM: responsible for ensuring provision of requisite human resources to operationalize the Plan and M&E strategy. This will include recruitment of M&E specialists, as well as, socioeconomic statistical analysts. 4 MDAs and LGAs: These are key implementing agents responsible for reporting on progress of implementation and achievements of planned outputs. 4 Development Partners (DPs): support M&E strategy by providing financial and technical assistance for its operationalization, capacity building for M&E, and use of M&E products. 4 National Bureau of Statistics (NBS): The role of NBS will be to provide core statistics that are critical for the monitoring and evaluation of FYDP-II goals and strategic interventions. 4 Private sector and other strategic partners: private sector and others are instrumental to the realization of the Plan priority areas. Their participation is through straight own implementation or by partnership with the public sector. 23

6. MONITORING AND EVALUATION Ø Strategy 4 Building a system that is robust, comprehensive, fully integrated, harmonized and well-coordinated to monitor the implementation of national development initiatives as well as evaluating their outcomes and impacts. 4 Strengthening implementation, monitoring and evaluation (including impact assessment) and reporting during the implementation of FYDP-II. 4 Ensuring full coordination and operationalization of the monitoring, evaluation and reporting systems as articulated in the Medium Term Strategic Plan and Budgeting Manual. 4 Adhere to the principles of monitoring and strategic issues as stipulated in the Public Investment - Operational Manual (URT 2007) and strategic issues for monitoring. 4 Improve existing routine data systems will continue, being of critical importance in enhancing monitoring and evaluation of the priority areas embedded in the Plan. The framework of routine data systems is built under the implementation of the Tanzania Statistical Master Plan (TSMP). 24

6. MONITORING AND EVALUATION Ø Approach 4 Establishing a well-coordinated government-wide M&E system in order to ensure effective implementation, tracking, evaluation and feedback on FYDP-II 4 Involving MDAs, LGAs, CSOs, private sector, research and academic in formulation and implementation of M&E activities 4 This will enable all key actors to fully internalize and own the system as well as utilize the results to inform and shape requisite intermediate interventions. Ø Institutional arrangements The key features under consideration are: 4 An institutional framework that is inclusive in the manner that it brings together all relevant stakeholders to carry out data generation (Survey and Routine Data), research and analysis, communication and feedback mechanism and linking to relevant Government policy, decision making bodies and users; 25

6. MONITORING AND EVALUATION 4 An indicator framework that tracks FYDP-II implementation and results, specifying data sources, frequency of reporting, and responsibility, among others. Examples of indicators include: institutional ü Indicators associated with nurturing an industrial economy tracking economic transformation; ü Indicators associated with policies that remove constraints to further economic transformation; ü Indicators associated with ways of working and institutional development. ü Indicators associated with Human development 4 A survey calendar to be implemented by the National Bureau of Statistics (NBS) to provide estimates for key FYDP-II indicators, including mid-term review of trends in poverty reduction. 4 A calendar of planning, budgeting and reporting; 4 Defined outputs of FYDP II M&E, including survey reports, analytical and implementation progress reports. 4 A funding mechanism and a budget for the implementation of FYDP-II M&E. 26

6. MONITORING AND EVALUATION Ø Evaluation of FYDP II 4 The evaluation will be coordinated by Mo. FP, though importantly done by external/independent evaluators, to ensure independence and objectivity 4 The evaluation will assess the overall effectiveness of FYDP-II against its objectives/goals and the targets, and where possible it will look on outcomes and impacts. 4 Evaluation will be conducted in three phases: ü Annual Internal Evaluation: involve production of Tanzania Human Development Reports (THDR), PER and sector Annual reviews to stimulate dialogue and inform the plan and budgeting process. ü Mid-term Evaluation: This will be conducted after two and half years during the Plan's implementation. ü Final Evaluation: This is to be conducted after four-and-a-half years of the Plan's roadmap of implementation. 27

THANK YOU FOR YOUR KIND ATTENTION 28