Finland’s development cooperation in Tanzania

Tanzania’s economy has grown rapidly throughout the 21st century, contributing to the reduction of poverty. Nevertheless, nearly half of the population live below the international poverty line. Tanzania is rich in natural resources and this has made the country an attractive target of investments. Tanzania’s rich natural resources have benefited the country's economy in many ways.  Finland supports Tanzania implement its own Development Plan and to become a middle-income country by 2025. Finland's planned budget frame for Tanzania in 2016–2019 is EUR 52 million.

The Tanzanians’ life expectancy has risen and a growing number of children start school.  Tanzania has improved its tax management and it is less dependent on development aid than before. The greatest challenge lies in how to produce the basic public services and how to create jobs for the rapidly growing young population in order to maintain the strong economic growth and human development. Increasing attention must also be paid to gender equality.

Country Strategy for Development Cooperation; Tanzania 2016-2019

Infograafi Tansania, englanti

Commercial cooperation

Tanzania’s rapid economic growth opens up opportunities for expanding the cooperation between Finland and Tanzania in the trade sector. The bilateral programmes in the forestry and innovation sectors aim to also increase cooperation and investments between the countries’ private sectors and to lay a foundation for partnerships in other sectors.

Civil society organisations

Finnish civil society organisation (CSOs) are active in Tanzania.  More than 20 Finnish CSOs are carrying out projects in the country. The organisations focus on complementing Finland's bilateral development cooperation. Finnish CSOs are engaged in Tanzania's development especially by supporting activities related to the position of people with disabilities, education, healthcare and the environment.

Results:

  • The impacts of development cooperation show in Tanzania. Finland has supported Tanzania’s Public Financial Management Reform Programme (PFMRP), which has brought macro-economic stability, improved budget management, strengthened the public financial management systems and the national audit systems, improved public debt management and procurement systems, and helped to fight corruption.

  • Finland’s support has promoted women’s economic and political empowerment and strengthened civil society’s capacities to hold the Government accountable for its actions. The number of female members of Parliament has risen in Tanzania through UN Women’s programme on women’s leadership and political participation, which is supported by Finland. More women than earlier were nominated as candidates in the most recent elections.

  • Projects related to natural resources have promoted women’s role among those who gain income from forests and agriculture.

  • Finnish support has influenced the objectives of Tanzania’s forestry and forest management. People are better informed about the significance of forests as a source of income and forests’ importance for the development of industries.

  • With the help of the Private Forestry Programme (PFP), more than 9,000 smallholder families have been able to plant trees in their uncultivated land areas. The average afforestation area is 1.3 hectares.

  • Finland has supported the construction of a modern and more reliable electricity grid in Dar es Salaam, the capital of Tanzania. Its overhauled electricity grid and monitoring system improve the security of electricity supply and reduce power losses during distribution. Finland’s support has been used to train employees in the Tanzania Electric Supply Company (Tanesco) to operate the newly improved system.

  • The National Information Society and Technology Development Programme, TANZICT, implemented in cooperation with the Tanzanian Ministry of Communication, Science and Technology, has strengthened innovation and entrepreneurship activities. A community of start-ups in the field of technology has been established in Dar es Salaam, and community-based technology environments have emerged in different parts of the country. Growth companies have been supported through seed funding. Additionally, Tanzanian universities provide better training courses for entrepreneurs. An extensive national ICT strategy has been prepared with Finland’s support, too. Together with the national innovation policy, it will improve the operating environment in the private sector and facilitate the introduction of the latest technologies.

  • Projects supported by Finland have managed to boost productivity and create jobs in agriculture and forestry.

  • Land and forest use planning and the registration of real property safeguard communities’ right to land and open up opportunities for private sector investments, generating significant income for people in villages. Finland's support has contributed to land registration and land use planning projects in various parts of Tanzania. Plans for land use and land protection of 850,000 hectares in 59 villages with 90,000 people have been made under the Private Forestry Programme.

  • In Zanzibar, the Sustainable Management of Land and Environment (SMOLE) has developed a digital property register, for which 63,000 properties have been surveyed. Support has also been channelled to land use planning, addressing the needs of the local communities and the environment and promoting investments. A national forest programme and the Lindi and Mtwara Agribusiness Support project (LIMAS) have also supported land use planning and safeguarding of ownership rights in village communities.

  • Approximately 2,000 smallholders and small enterprises have managed to improve their business activities through the LIMAS project. In addition, a method that helps to maintain soil nutrients has been taken into use in an area of 240 hectares.

  • The East African Community is enjoying an over ten per cent annual growth rate. The activities of TradeMark East Africa (TMEA), which is one of the promoters of growth, are also supported by Finland. Conducting trade has become less complicated: border crossing times and containers’ transport times are clearly shorter than before.

  • The Uongozi Institute, an advanced and respected training institute for Tanzanian leaders, keeps special themes related to sustainable development actively on its agenda.

Risk management

Cooperation between Finland and Tanzania involves many risks. The risks associated with the implementation of development cooperation often arise from local partners’ poor capacity, weaknesses in economic management and corruption. Risk management in the various programmes and projects requires careful planning and monitoring as well as continuous learning and quick reactions.

Risks faced in the implementation of the Country Strategy in Tanzania include deterioration of democracy, human rights and good governance.  Massive population growth poses big challenges to the country’s education and health care systems and provision of basic services.

Ongoing programmes

Effective public sector:

  • EUR 9.9 million in 2017–2021 to the Institute of African Leadership for Sustainable Development (Uongozi Institute)
  • EUR 3.9 million in 2018–2021 to the cooperation with Tanzania’s tax administration to develop the taxation system and support given by the Finnish tax administration
  • EUR 3.9 million in 2018–2021 to UN Women's programme supporting women’s leadership and political participation
  • EUR 350,000 in 2019–2020 to TWAWEZA, which is a non-profit initiative, to promote citizen’s participation in planning and decision-making processes, the State’s accountability and the development of a positive operating environment for civil society actors.

Employment and livelihoods:

  • EUR 19.5 million in 2013–2019 to the Private Forestry Programme (PFP)
  • EUR 9.95 million in 2018-2022 to the Forestry and Value Chains Programme (FORVAC)
  • EUR 700,000 to the Institutional Cooperation Instrument (ICI): Forest data programme (INFORES).

Regional and multilateral projects:

  • EUR 9.8 million in 2017–2020 to the TradeMark East Africa, which promotes the preconditions of trade in eastern African countries.
  • EUR 13 million in 2019–2022 to the regional Energy and Environment partnership programme (EEP), which develops renewable energy solutions.
  • EUR 8.7 million in 2017–2022 to the regional Southern Africa Innovation Support Programme (SAIS 2), which strengthens innovation-friendly environments and cooperation between countries.