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Good Financial Governance (GFG)


The project contributes to strengthen Tanzania’s public financial system, a central element to cement its economic status. The 3rd phase aims at expanding the mobilization of domestic revenue and improving the government’s expenditure control. It shall strengthen interinstitutional mechanisms for tax data exchange, enhance the audit system, and improve public procurement. At policy level, it seeks to develop an evidence-based and gender responsive fiscal strategy for better public service delivery to benefit the population, especially the poor.

Country/region Topic Period Budget
Tanzania
Governance
nothemedefined
Public finance management
Domestic revenue mobilisation
01.05.2024 - 30.04.2027
 CHF  3’900’000
The project in brief
Background Tanzania has enjoyed a steady economic growth prior to the Covid pandemic (6.7% Gross Domestic Product growth between 2015 and 2019). Despite slower growth due to the pandemic and the effects of the Ukraine – Russia conflict, Tanzania remains one of the fastest growing economies in Africa (6.1% growth projections for 2024). The domestic revenue mobilisation is increasing but these revenues remain insufficient to finance all necessary public services and the government’s ambitious development objectives to serve its fast growing population (+ 3% in 2022). The tax base remains narrow coupled with a lack of stability in the tax policy environment and low taxpayer compliance. Other challenges include lack of transparency and accountability of public spending.
Objectives Domestic revenues are raised and spent in a more transparent and effective manner, benefiting the whole Tanzanian population, especially the poor.
Target groups

Direct target Groups:

  • Senior management of the Ministry of Finance, line ministries, departments, and agencies 
  • Selected Local Government Authorities
  • Selected private sector entities 
  • Civil Society Organizations

Indirect Target Groups:

  • Tanzanian citizens, especially women and the poor  
Medium-term outcomes
  1. Strengthened capacities for mobilising domestic revenues at national and local level
  2. Strengthened capacities for public expenditure control
  3. Improved strategic framework conditions for evidence-based fiscal policymaking
  4. Strengthened competences for implementing the Public Finance Management Reform Program (PFMRP) in Zanzibar
Results

Expected results:  

  1. Local Government Authorities use third-party data to estimate revenue potential from service levy
  2. Quality and analysis of taxpayer data is improved, including the use of digital solutions
  3. An increased number of public officials have obtained professional certifications on public procurement, internal and external audit
  4. Multi-stakeholders’ consultations are organized to follow-up of national audit recommendations
  5. The Ministry of Finance has developed a gender-sensitive medium-term revenue strategy


Results from previous phases:  

  1. The introduction of a comprehensive audit methodology has led to increased National Audit Office’s capacities and audit quality
  2. A Memorandum of Understanding between the Tanzania Revenue Authority and the Local Government ministry has been signed for data exchange in the collection of local taxes
  3. The internal auditor’s general division has been allotted an independent budget line in the national budget which is key to execute its mandate independently
  4. 30 Local Government Authorities have increased their source of revenues by more than 50%
Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Private sector
Foreign state institution
  • Foreign private sector North
  • Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)


Coordination with other projects and actors Contributes to Public Financial Management Reform Programme (PFMRP) funded by the United Kingdom, Norway, World Bank and Tanzania government;
Complements other Swiss supported initiatives: Anti-Corruption programme, Direct Health Facility Financing (DHFF), the Tanzania Social Action Fund (TASAF); Universal Health Coverage (UHC) and Uwajibikaji Tanzania program (UTP).
Budget Current phase Swiss budget CHF    3’900’000 Swiss disbursement to date CHF    0 Budget inclusive project partner CHF    9’996’327 Total project since first phase Swiss budget CHF   12’002’847 Budget inclusive project partner CHF   17’005’000
Project phases

Phase 3 01.05.2024 - 30.04.2027   (Active)

Phase 2 01.08.2020 - 31.01.2024   (Completed) Phase 1 01.02.2015 - 31.07.2020   (Completed)
  • Sector according to the OECD Developement Assistance Commitiee categorisation GOVERNMENT AND CIVIL SOCIETY
    GOVERNMENT AND CIVIL SOCIETY
    Sub-Sector according to the OECD Developement Assistance Commitiee categorisation
    Public finance management
    Domestic revenue mobilisation
    Cross-cutting topics The project supports partner organisation improvements as a priority
    Aid Type Mandate without fiduciary fund
    Project and programme contribution
    Project number

    7F09238

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Last update 03.01.2021