6 Develop a global partnership for development

Where we are?

Tanzania has implemented a number of core policies and structural reforms including; Trade and Exchange Rate Liberalization, Public Service Reforms, Investment Promotion, Tax Reforms, Financial Sector Reforms, Legal Sector and Local Governance Reforms, the National Anti-corruption Strategy, Mini Tiger Plan, and others. These have improved confidence on the economy, and one consequence is the improvement in the flow of ODA and FDIs. Tanzania is among the largest recipient of foreign aid. External resource flows have increased from about $ 1.1 billion in 2000 to about $ 2.4 billion in 2011 from DAC countries. This indicates however, slight drop from $ 2.9 billion in 2010. Assistance is mainly provided in the form of direct budget support, although the share has been gradually declining in recent years. The budget support mechanism has improved predictability of external resource inflows and therefore improved budget planning and execution.

The external debt stock at 38.6 per cent of GDP in 2012 indicates a gradual increase from a low of 31.2 per cent in 2009 and is likely to increase over the coming years as Tanzania is planning to reduce donor dependency and source resources from financial markets. Still, by and large, the majority of the external debt stock comprised of multilateral debt, although bilateral, commercial and export credit continue to be important sources of external resources. The drop in the external debt stock is mainly a reflection of the benefits of the debt relief under the HIPC initiative.
Other initiatives that provide potential for financing national development and the achievement of the Millennium Development Goals include: trade issues that are being addressed through a number of interventions such as Economic Partnership Agreements with European Union. Tanzania is a member of Africa, Caribbean and Pacific (ACP) group of countries, which are currently involved in negotiations with the EU on Economic Partnership Agreements (EPAs). Also, there have been efforts through regional integration to promote trade. Such groupings include the East Africa Community (ECA), and the Southern African Development Cooperation (SADC). In 2010, Tanzania ratified the ECA Common Market Protocol paving the way for free movement of goods, labor, services and capital in the ECA.

Targets for MDG8
  1. Develop further an open, rule-based, predictable, non-discriminatory trading and financial system
    • Developing countries gain greater access to the markets of developed countries
    • Least developed countries benefit most from tariff reductions, especially on their agricultural products
  2. Address the special needs of least developed countries
    • Net Official development assistance (ODA), total and to the least developed countries, as percentage of OECD/DAC donors' gross national income
    • Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation)
    • Proportion of bilateral official development assistance of OECD/DAC donors that is untied
    • Market access
    • Debt sustainability
  3. Address the special needs of landlocked developing countries and small island developing States
    • Official development assistance (ODA) received in landlocked developing countries as a proportion of their gross national income
    • ODA received in small island developing States as a proportion of their gross national incomes
    • Proportion of bilateral official development assistance of OECD/DAC donors that is untied
    • Market access
    • Debt sustainability
  4. Deal comprehensively with the debt problems of developing countries
    • Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative)
    • Debt relief committed under HIPC and MDRI Initiatives
    • Debt service as a percentage of exports of goods and services
  5. In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries
    • Proportion of population with access to affordable essential drugs on a sustainable basis
  6. In cooperation with the private sector, make available the benefits of new technologies, especially information and communications
    • Telephone lines per 100 population
    • Cellular subscribers per 100 population
    • Internet users per 100 population