1. Development Cooperation Framework DPG Main, 4th March 2014

2. DCF vs Action Plan DCF • Focus on Vision 2025 (/2020 for Znz) and LTPP • Principles for engagement • Principles for dialogue • Principles for monitoring and accountability • Identify main stakeholder groups DCF Action Plan • Focus on medium-term plans/strategies • Dialogue Structure • Division of Labour • Concrete actions • Clearer directions/guidelines for stakeholder groups

3. DCF Objectives • Strengthen national ownership and government leadership in development cooperation; • Ensure effective coordination in development cooperation; • Managing resources for development results; • Strengthen both domestic and mutual accountability; • Graduate from the aid dependency through increasing trade and investments.

4. DCF Guiding Principles • Ownership.Development Stakeholders should commit to fostering national ownership; support GoT addressing challenges; minimize use of conditionalities and parallel systems. • Alignment: Continuously optimize alignment to national priorities; • Use of Country systems: All development programmes strive towards utilizing URT country systems including Accounting, Procurement, Auditing and M & E systems; • Information on Aid. Development Stakeholders should provide timely and disaggregated information on their assistance; • Strengthening Accountability. All parties should promote government leadership in development cooperation management;

5. DCF Guiding Principles (Cont) • Country Knowledge building. Both Government and Development Stakeholders should prioritize and effectively support country knowledge building while focusing on national development priority areas; • Aid for Trade: URT recognizes the need for addressing supply side constraints for both domestic and export markets in order to stimulate investments; and • Increase Domestic Revenues: URT will continue widening and managing domestic revenue collection in order to reduce aid dependency in medium and long term horizon.

6. Dialogue • Government leadership: must provide leadership at all levels of dialogue; • Inclusiveness: participation of all key stakeholders must be ensured with the view of enhancing ownership, transparency, accountability and sustainability; • Mutual trust and respect: Dialogue must be open, frank, and based on mutual trust and respect; • Minimize transaction costs: Dialogue must minimize transaction costs through simplification of processes and procedures; • Effective information sharing: Information must be shared among stakeholders in a transparent, timely, clear and accessible manner. • Inbuilt monitoring: joint mechanisms must be established to assess how the dialogue outputs feed into policy processes.

7. Financing Instruments and Arrangements • Development Stakeholders will continue to support core priority areas of national development plans and strategies by providing support through • General Budget Support • Basket support • Direct Project Funds (DPF), • Public Private Partnership (PPP) / Aid for Trade • Continued support to NSAs • Terminology focus is: • GoT will emphasize full integration of resources into budget and exchequer system • Resources are as much as possible integrated into national system/processes • Strive towards operating within GoT systems and structure • Use systems to the maximum extent possible

8. Procurement, Accounting, Audit, M&E • Work towards providing dev. Assistance to URT that is free and fully available for utilization using national procurement systems; And support URT to address challenges/improvements. • Increasingly use URT accounting and auditing procedures and systems; • Regular reviews of joint (DCF + Action Plan) performance based on global indicators.

9. DP Roles and Responsibilities • DPs will contribute resources to Development priorities that create sustainable development outcomes; • Actively participate at various levels of the dialogue and advise the Government and other domestic stakeholders based on an agreed division of labour; • facilitate domestic accountability by being transparent in the provision of their development assistance to all domestic stakeholders, by making increasing use of Government systems. • DPs are mutually accountable with the Government to domestic stakeholders and to each other for their actions in fulfilling their shared commitments in development co-operation