AfDB - Tanzania Partnership

Transport and energy have been identified by the Tanzanian Government as the key constraints to the country’s economic growth. As a result, the sectors have been made national development priorities, and currently account for 49% of the AfDB’s portfolio in Tanzania. The new African Development Bank (AfDB) 2016–2020 country strategy for Tanzania contains two pillars: 1. Addressing infrastructure bottlenecks 2. Strengthening governance and accountability Other ongoing priorities such as gender equality and empowerment have been mainstreamed into the strategy. The first pillar focuses on improving domestic and regional transport connectivity as well as access to electricity. The second pillar, which reinforces the first, focuses on improving financial management and institutional capacity building and reforms. These are aimed at unlocking private sector investment and finance for job creation. The strategy highlights that untapped investment opportunities exist in agribusiness, tourism, natural gas and mineral sectors, real estate, construction, housing, and the financial sector. It notes that private sector development in Tanzania is hampered by infrastructure gaps, especially related to transport and energy, low access to finance, skills gaps and mismatch, and lack of business development support services. Importantly, the latest plan identifies the private sector as a key driver to inclusive and green economic growth that is yet to be harnessed. Pillar 1 Interventions Energy sector operations will focus on renewable energy, including geothermal (direct use application components) and hydropower as well as regional connectivity through rural, national, and regional transmission lines. Transport sector operations will emphasize the construction and upgrading of trunk roads across the country and to neighboring countries as well as and rural feeder roads. Interventions will also cover other transport modes such as rail, airports, and seaports. These will extend to bulk transport systems such as mass bus rapid transit systems. Additionally, transport investments will comprise complementary initiatives such as market and post-harvest infrastructure. Pillar 2 Interventions To improve public financial management, the Office of the Internal Auditor General will be strengthened to effectively execute its quality assurance, risk management, and control functions. Additionally, oversight institutions such as the Controller and Auditor General will be supported to efficiently perform their functions. In collaboration with the East Africa Regional Technical Assistance Center (AFRITAC), the AfDB will provide capacity building, technical assistance and advisory services to the Government. In the gas sector in particular, the AfDB will focus on two areas: (i) capacity building for the negotiation of commercial transactions; and (ii) advisory and other support in the implementation of the oil and gas local content policy. To improve the environment for private sector investment, the AfDB will support institutional regulatory reforms aimed at catalyzing private sector investments and finance through PPPs. The AfDB aims to support the PPP Centre and PPP Technical Committee through to ensure the proper conduct of PPP project checks and screening. Indicative Lending Program Indicative Non-Lending Program Contact African Development Bank Tel: +255-22-2125281/2 Fax: +225-22-2125283 Email: