Performance-based Health Basket Fund

Project completed
Zuena Hussein Ismail with her baby attended by a health worker at Makole Health Centre in Dodoma.
Zuena Hussein Ismail with her baby attended by a health worker at Makole Health Centre in Dodoma. © FDFA

With its contribution to the health basket fund Switzerland supports the Government of Tanzania, in particular local governments, to accelerate equitable access to health services by women, children and isolated rural populations. Switzerland, as chair of the health development partners group, will lever the Fund resources through policy dialogue to create an innovative financing modality to ensure the utilization of all Tanzanians of quality health services.

Country/region Topic Period Budget
Infectious desease
Primary health care
Health systems strengthening
Medical services
Reproductive health & rights
01.11.2015 - 31.12.2021
CHF  23’758’762

The Health Basket Fund was created in 1999 as a pooling mechanism of donor resources to support the implementation of the national health strategic plan. On the one hand, this strategy, as well as efforts from global health initiatives, allowed Tanzania to reach Millennium Development Goals 4 & 6, and reduced out of pocket health expenditure by households. Furthermore, it promoted decentralised planning, budgeting and expenditure tracking for sound public financial management and stimulated the generation of local revenues by primary health care facilities. On the other hand, this first period of health sector budget support did not fully produce the expected progress in term of access to health services. The new national Health Sector Strategic Plan (2015-20) calls for intensified focus on quality health service delivery in public and private health facilities in support of universal health coverage. The Health Basket Fund has been redesigned as a performance-based health financing instrument to addresses the primary weaknesses of the past phases. Switzerland’s leadership of health partners in policy dialogue with Tanzania will use transparent and accountable diplomatic dialogue to develop further the redesigned results-oriented Health Basket Fund.


The agreed aim of the Government of the United Republic of Tanzania and Development Partners of the pooled funding arrangement is to reach underserved populations with essential, effective and affordable health services, and to contribute to effective decentralisation to enhance delivery of quality primary health care, by increasing financial resources in the health sector, with a focus on local governments.

Target groups

The beneficiaries are the people resident on the mainland Tanzania (>47 mio), in particular poor people and women and children as main users of primary health care services.

The major share (up to 90%) of the performance-based Health Basket Fund is allocated to primary health care facilities through local governments who are responsible for providing basic health care and social protection to local communities.

Medium-term outcomes

Improved performance of 33’800 primary care health workers and quality of health services

Better access to quality primary care  through 6800 health facilities and improved social accountability

The creation of a new health financing modality is accelerated through Switzerland’s leadership in policy dialogue, by chairing the health development partners group


Results from previous phases:  


Between 2000 and 2010:

The deaths of young children have been reduced by 50% or more nationwide.

Malaria cases in health centres and hospitals have dropped by 75%. Similar progress was made with malaria control in pregnancy. 

Households in Tanzania reduced out of pocket health spending by 50% thus increasing available financial resources for schooling and productive activities.

Local governments improved management of public funds by using progressively IT tools in planning, budgeting and expenditure reporting.

The 6800 public health facilities increased locally generated revenues through user fees and community health funds for social protection, allowing them to address community priorities.

Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Private sector
Foreign state institution
United Nations Organization (UNO)
  • Central State of South East
  • Foreign private sector North
  • United Nations Children’s Fund
  • World Health Organization

Other partners

Development Partners: DFATD-Canada, DANIDA-Denmark, Irish Aid-Ireland, UNICEF, UNFPA, World Bank

Budget Current phase Swiss budget CHF    23’758’762 Swiss disbursement to date CHF    23’381’222
Project phases

Phase 7 01.11.2015 - 31.12.2021   (Completed)

Phase 6 01.10.2012 - 31.12.2015   (Completed) Phase 5 01.10.2008 - 30.09.2012   (Completed)