Good Financial Governance (GFG)


Good Financial Governance - Longido, Arusha
Good Financial Governance - Longido, Arusha © GIZ

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.

Land/Region Thema Periode Budget
Tansania
Governance
nothemedefined
Steuerung der öffentlichen Finanzen
Mobilsierung inländischer Einnahmen
01.05.2024 - 30.04.2027
CHF  3’900’000
Hintergrund 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.
Ziele Domestic revenues are raised and spent in a more transparent and effective manner, benefiting the whole Tanzanian population, especially the poor.
Zielgruppen

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  
Mittelfristige Wirkungen
  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
Resultate

Erwartete Resultate:  

  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


Resultate von früheren Phasen:  

  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%


Verantwortliche Direktion/Bundesamt DEZA
Kreditbereich Entwicklungszusammenarbeit
Projektpartner Vertragspartner
Privatsektor
Ausländische staatliche Institution
  • Ausländischer Privatsektor Norden
  • Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)


Koordination mit anderen Projekten und Akteuren 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 Laufende Phase Schweizer Beitrag CHF    3’900’000 Bereits ausgegebenes Schweizer Budget CHF    1’012’700 Projekttotal seit Anfangsphase Schweizer Beitrag CHF   12’002’847 Budget inklusive Projektpartner CHF   17’005’000
Projektphasen Phase 3 01.05.2024 - 30.04.2027   (Laufende Phase) Phase 2 01.08.2020 - 31.01.2024   (Completed) Phase 1 01.02.2015 - 31.07.2020   (Completed)