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June 2014

Tanzania: Country Assistance Strategy Progress Report World Bank Group. June 2014. Development context in Tanzania has changed since 2011. Strong growth has continued (at 7%), but poverty reduction & job creation remain central challenges

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June 2014

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  1. Tanzania: Country Assistance Strategy Progress Report World Bank Group June 2014

  2. Development context in Tanzania has changed since 2011 • Strong growth has continued (at 7%), but poverty reduction & job creation remain central challenges • Discovery of large reserves of natural gas provides a major opportunity • Aid is going downas proportion of public investment. Public investment is on the rise reflecting expected future gas revenue growth and sustained economic growth • Policy implementation & service delivery outcomes are lagging, primarily because of constrained institutional capacity to invest productively and manage efficiently • “Big Results Now!” initiative to focus on implementation and deliveryin key result areas

  3. Progress of CAS Implementation • Mixed progress towards achieving the CAS outcomes—about half of the expected outcomes are on track • Delays in implementation & approval of some operations are the main causes • Review of WBG CAS progress is in line with the government’s own assessment of its implementation record

  4. Proposed CAS Adjustments Productive investments for growth of labor-intensive industries • Agriculture Productivity integrating small farmers into commercial value chains • Key Infrastructure: Power, central corridor railway and port; urban transport infrastructure and water supply • Leveraging natural gas • Business Environment & Competitive Industries • Building employable skills through vocational and higher education Targeted Programs for reduction of extreme poverty • Scaling up targeted social safety net program to benefit the extreme poor through conditional cash transfer • Education Quality • Reducing maternal mortality (if a strong and credible plan materializes) • Improving government openness, accountability, public finance management, in the context of OGP commitments.

  5. New Modalities of WBG Support • Evolution in the approach to budget support: more focus and more result-based support • Power & Gas • Public Finance & Open Government • Business Environment and Competitive Industries • Pensions (TBC) • Guarantee operations: gas production; power PPPs • Possible IBRD financing: Dar Port; housing finance • WBG integrated services (WB + IFC): PPPs in energy; agribusiness; housing finance • Extend the current Country Assistance Strategy by 12 months to June 30, 2016 • Front Loading IDA 17 (estimated $1.8 billion)

  6. Annex 1: Proposed Lending Program FY15-16 Contd…

  7. Annex 1: Proposed Lending Program FY15-16

  8. Annex 2: Proposed Knowledge Program FY15-16

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