Tanzania Country Self Assessment Report

African Peer Review Mechanism (APRM)

Tanzania Country Self Assessment Report

(Final Revised Edition)

September 2011

Table of Contents

No Item Page No
Table of Contents…………………………………………………… i
List of Tables and Figures and Case Studies……………………….. iv
Acronyms and abbreviations………………………………………. ix
Acknowledgements…………………………………………………. xviii
Political Map of Tanzania…………………………………………… xx
Country Fact Sheet…………………………………………………… xxi
Executive Summary………………………………………………….. xxvi

CHAPTER ONE: Background and Introduction 1
1. Introduction…………………………………………………… 1
1.1 Historical Background……………………………………………… 1
1.2 Liberalisation and Policy Reforms………………………………… 3
1.2.1 First Generation Financial Sector Reforms………………………… 3
1.2.2 Second Generation Financial Sector Reforms……………………… 4
1.3 Regional Integration……………………………………………… 5
1.4 Poverty Reduction Strategies……………………………………… 5
1.5 Integrity and Fight Against Corruption……………………………… 6
1.6 Structure of the Report…………………………………………… 9

CHAPTER TWO: The Context of APRM in Tanzania and Methodology of Assessment 10
2.1 Background…………………………………………………… 10
2.2 Stages of the APRM Process……………………………………… 10
2.3 APRM Operations in Tanzania…………………………………… 10
2.3.1 Initialization of the Process in the Country………………………… 11
2.3.2 InnitialStakeholders Seminar……………………………………… 11
2.3.3 The Country Support Mission……………………………………… 11
2.3.4 Focal Point Ministry……………………………………………….. 11
2.3.5 Continued SensitisationSeminars…………………………………… 12
2.3.6 The Country Support Follow up Mission…………………………… 12
2.4 Methodology used for Self Assessment …………………………… 12
2.4.1 Technical Assessment Teams (TATs) …………………………… 12
2.4.2 Survey Methodology……………………………………………… 13
2.5 Methodology Used to Update the CSAR
Strengths…………………………………………………… 14
2.6 Challenges…………………………………………………… 15

CHAPTER THREE: Democracy and Political Governance 16
3.1 Introduction…………………………………………………… 16
3.2 Standards and Codes…………………………………………… 16
3.3 Assessment of Performance of APRM Objectives………………… 17
3.3.1 Objective One: Prevention and Reduction of Intra and interstate Conflicts in Tanzania………………………………………………. 17
3.3.2 Objective Two: Constitutional Democracy and Rule of Law……… 38
3.3.3 Objective Three: Promotion and Protection of Economic, Social and Cultural Rights, Civil and Political Rights as enshrined in the African and the International Human Rights Instruments………….. 70
3.3.4 Objective Four: Upholding Separation of Powers in Tanzania: Protection of Independence of the Judiciary and effectiveness of Parliament…………………………………………………… 84
3.3.5 Objective Five: Ensuring Accountable, Efficient and Effective Office Holders and Public Servants…………………………………. 104
3.3.6 Objective Six: Fighting Corruption in the Political Sphere…………. 112
3.3.7 Objective Seven: Promotion and Protection of the Rights of Women 122
3.3.8 Objective Eight: Promotion and Protection of the Rights of Children and Young Persons in Tanzania……………………………………. 134
3.3.9 Objective Nine: Promotion and Protection of the Rights of Vulnerable Groups including Internally Displaced and Refugees…… 158
3.4 Conclusions and Recommendations………………………………… 170

CHAPTER FOUR: Economic Governance and Management 182
4.1 Introduction…………………………………………………… 182
4.2 Standards and Codes………………………………………………… 183
4.3 Assessment of Performance of APRM Objectives………………….. 187
4.3.1 Objective One: Promotion of Macroeconomic policies that Support Sustainable Development……………………………………………. 187
4.3.2 Objective Two: Implementation of Transparent, Predict table and Credible Government Economic Policies…………………………….. 218
4.3.3 Objective Three: Promotion of Sound Public Finance Management. 225
4.3.4 Objective Four: The Fight Against Corruption and Money Laundering…………………………………………………… 241
4.3.5 Objective Five: Process of Accelerating Regional Integration by Participating in the Harmonization of Monetary, Trade and Investment Policies………………………………………………… 248
4.4 Conclusions and Recommendations……………………………….. 257

CHAPTER FIVE: Corporate Governance 259
5.1 Introduction…………………………………………………… 259
5.2 Standards and Codes………………………………………………… 260
5.3 Assessment of Performance of APRM Objectives………………….. 261
5.3.1 Objective One: Promote an Enabling Environment and Effective Regulatory Environment…………………………………………….. 261
5.3.2 Objective Two: Ensure that Corporations act as good corporate citizens with regard to Human Rights, Social Responsibility and Environmental Sustainability……………………………………….. 287
5.3.3 Objective Three: Promote Adoption of Codes of Good Business Ethics in Achieving the Objectives of the Corporations…………….. 309
5.3.4 Objective Four: Ensure that Corporations Treat All Their Stakeholders (Shareholders, Employees, Communities, Suppliers And Customers) in a Fair and Just Manner………………………………………………….

5.3.5 Objective Five: Providing for Accountability of Corporations, Directors and Officers ……………………………………………………………
5.4 Conclusions and Recommendations………………………………… 324

CHAPTER SIX: Socio – Economic Development 329
6.1 Introduction…………………………………………………………. 329
6.2 Standards and Codes………………………………………………… 331
6.3 Assessment of Performance of APRM Objectives…………………. 349
6.3.1 Objective One: Promote Self Reliance in Development and Build Capacity for Self Sustaining Development………………………….. 349
6.3.2 Objective Two: Accelerating Socio-Economic Development to Achieve Sustainable Development and Poverty Eradication………..
6.3.3 Objective Three: Strengthen Policies , Delivery Mechanisms and Outputs in Key Social Development Areas, including Education for All, Combating HIV and Aids and Other Communicable Diseases

6.3.4 Objective Four: Ensure Affordable Access to Water, Sanitation, Enegry, Finance (including Micro-Finance, Markets, ICT, Shelter and Land to all Citizens especially the Rural Poor…………………..

6.3.5 Objective Five: Progress towards Gender Equality in all Critical Areas of Concern…………………………………………………….
6.3.6 Objective Six: Encourage Broad Based Participation in Development by all Stakeholders at all levels……………………….
6.4 Conclusions and Recommendations………………………………… 485

CHAPTER SEVEN: Overall Conclusions and Recommendations 489
7.1 Conclusion…………………………………………………………… 489
7.2 Best Practices………………………………………………………… 463
7.2.1 Democracy & Political Governance………………………………….. 463
7.2.2 Economic Governance and Management………………………….. 495
7.2.3 Corporate Governance……………………………………………… 495
7.2.4 Socio- Economic Development……………………………………… 496

CHAPTER EIGHT: The National Programme of Action (NPoA) 497

List of Tables, Figures and Case Studies
Page Number Item Number Content
xxi Table 1.1 Basic Information
xxii Table 1.2: Overall Ease of Doing Business in Tanzania by Rank (out of 178 Economies)
xxiii Table 1.3 Zanzibar: Enrolment rate in Primary Education
xxiii Table 1.4 Tanzania MDG Indicators – Progress in MDGs at a Glance: Mainland Tanzania
xxv Table 1.5 Tanzania MDG Indicators – Progress in MDGs at a Glance: Zanzibar
xxiv Figure 1.1 Trend Analysis of Primary Education NER (net enrolment ratio) and GER (gross enrolment ration), 2006-2010 in Tanzania Mainland
16 Table 3.1 Treaties/Conventions/Protocols Ratified by Tanzania as of September 2007
23 Box 3.1 Best Practice – Constitutional Entrenchment of Government of National Unity
24 Box 3.2 Best Practice – The Role of Individuals and Statesmanship in Reconciliation (Maridhiano) in Zanzibar
24 Box 3.3 Best Practice – Institutionalization of Referendum in Zanzibar
31 Table 3.2 Major Sources of Conflict
31 Table 3.3 Percentage Distribution of Experts Opinion on Major Sources of Recent Conflicts in Tanzania
44 Box 3.4 Best Practice – The Election Expenses Act No. 6 of 2010
46 Box 3.5 Best Practice – URT Declaration on Jurisdiction of the African Court of Human and Peoples’ Rights
76 Box 3.6 Best Practice – Zanzibar Success In the Fight Against Malaria
83 Box 3.7 Best Practice – Alternative Dispute Resolution Mechanisms
90 Box 3.8 Best Practice – Security of Employment for Magistrates
98 Box 3.9 Best Practice – Authority of the Legislature in Checking Executive’s Abuse of Power
119 Box 3.10 Best Practice – Adherence to Accountability
120 Table 3.4 The State of Corruption Cases in the last five years (2003-2007)
125 Box 3.11 Gender Based Violence Cases
141 Table 3.5 Major Institutions and Policies for Safeguarding Children and Young Persons Rights
145 Box 3.12 Best Practices – Promotion and Protection of the Rights of the Child (I)
146 Box 3.13 Best Practices – Promotion and Protection of the Rights of the Child (II)
152 Table 3.6 New Standard I Enrollees (2002-2006)
152 Box 3.14 Best Practices – Improved Access to Education
153 Table 3.7 Enrollment of Children with Disabilities in Schools (2007)
166 Box 3.15 Case of internally displaced People – In Sun Biofuel
168 Table 3.8 The State of Persons with Disabilities
184 Table 4.1 Matrix on implementation of Standards and Codes in Tanzania
190 Table 4.2a Mainland Tanzania: Selected Macro-economic indicators 2003-2008
191 Table 4.2b Mainland Tanzania: Developments in International Trade, 2006-2010
192 Table 4.3 Results: Households Rating of Effectiveness of Government Policies in Controlling Inflation: Mainland Tanzania
192 Table 4.4a Zanzibar: Selected Macroeconomic Indicators 2006-2010
192 Table 4.4b Zanzibar, Balance of Trade, 2006 – 2010 (T.Shs. Million)
193 Table 4.5 Results: Experts Rating of the Effectiveness of Measures Linking Macro and Micro Economic Policies: Zanzibar
204 Figure 4.1 Zanzibar: Resource Gap 2000/2001-2009/10 (T.Shs billion)
206 Box 4.1 Environmental Laws Enacted in Tanzania
209 Table 4.6 Mainland Tanzania: Trend in Employment by Sector, 1990/91 – 2005/06
211 Table 4.7 Mainland Tanzania – Economic Activity Rate (15-64) females &males (trend data) 2006
211 Table4.8 Mainland Tanzania: Percentage of Employed Population (15-64 years) in primary, secondary & tertiary sectors (female& males), 2006
212 Table 4.9 Zanzibar: Employment and Output of Key Sectors 2006-2010
213 Table 4.10 Mainland Tanzania: Shares and Output of Key Economic Sectors, 2006-2010 (Tshs. Million, Real)
215 Table 4.11 Incidence and Depth of Poverty in Mainland Tanzania (Poverty headcount index)
216 Table 4.12 Poverty Incidence in Zanzibar 2004/05-2009/10
217 Box 4.2 Best Practice – Ensuring Sound and Stable Macroeconomic Management
219 Box 4.3 Assumptions for the Macroeconomic Outlook in The Medium Term
241 Box 4.4 Best Practice – Public Expenditure Management
248 Box 4.5 Best Practice – War against Corruption
249 Table 4.14 Mainland Tanzania – Traditional and Non-Traditional Exports, 2006-2010 (USD Mill.)
254 Table 4.15: Tanzania: Tariff Phase Down Offers-Tariff Lines at 0 (Percent)
255 Table 4.16: Tanzania’s Trade Balance in EAC and SADC (USD Million) 2006-2010
262 Table 5.1 Some of the Key Provisions in the Company Act, 2002
264 Table 5.2 Key Corporate Governance Provisions Contained in the BFIA, 2006
266 Box 5.1 Best Practice – Corporation and Public Sector Institutions Compliance with International Accounting Standards
267 Table 5.3 Some of the Conventions Ratified by Tanzania since 1961
270 Table 5.4 Listed Companies on the Dar es Salaam Stock Exchange
271 Table 5.5 Business Ownership Structure in mainland Tanzania
272 Table 5.6 Mainland Tanzania Structure of Business Participation by Type of entity and Category
273 Table 5.7 Comparable Sizes of Business Entities: Zanzibar and Mainland
274 Table 5.8 Zanzibar: Private Sector by Type of Registration and Sub-Service
275 Table 5.9 Zanzibar: Employment in the Private Sector
280 Table 5.10 Categorization of Enterprises by Size in Tanzania
285 Table 5.11 Overall Ease of Doing Business in Tanzania by Rank (out of 178 Economies)
287 Table 5.12 Efficiency of Corporate Business Facilitation in Tanzania
288 Table 5.13 UN Global Compact: categories and principles
294 Table5:14 Rights spelt out in Employment and Labour Act, 2004
301 Table 5.15 Reported work related accidents in the Public and Private Organizations from 2005 – October, 2007 in Dodoma Region
306 Box 5.2 Negative Experience: Story from Envirocare- Sun biofuel
307 Table 5:16 Legislations on The Environment
308 Table 5.17: Quality, Capacity and Efficiency of Compliance Enforcement Institutions
313 Table 5.18: Summary of the Interlinked Components of the BEST Program
313 Table 5.19: External Influences against Ethical Practice (Percent)
314 Table 5.20 stakeholders and their interests and contribution to the organization
316 Table 5.21 Stakeholders Power Influence on Corporate Behavior (percent of responses)
318 Table 5.22 The extent of Protection of Stakeholders Rights
320 Table 5.23 Whether the Corporate Framework Policies and Regulations Ensure Accountability to Stakeholders (Percent)
323 Table 5.24 Ownership Structure of major corporations in Tanzania
324 Table 5.25 Trends in the composition of boards of directors in selected listed companies
323 Table 5.26 Trends in establishment of Committee 2008-2010
346 Table 6.1 Summary of Actions taken by the Government of Tanzania to comply with Charters and Conventions
353 Table 6.2 To what extent have you participated in the following?
354 Table 6.3 Orientation of National Development Programmes to the Promotion of Self-Reliance and Capacity Building
357 Box 6.1 Best Practice – Participatory Planning
358 Table 6.4 How much of the Budget spent in the Development Projects in our Village/Mtaa is from Citizens?
360 Figure 6.1 Revenue, 2001/02 to 2009/10 (Tshs million)
362 Figure 6.2 Government Expenditure 2001/02 to 2009/10 (Tshs million)
363 Figure 6.3 Development Expenditure as a Percentage of Recurrent Expenditure, 2001/02 to 2009/10
364 Figure 6.4 Development Expenditure 2004/05-2009/10
364 Figure 6.5 Ratio of domestic to foreign development expenditure 2004/05-2009/10
365 Table 6.5 The Level of Dependence to External Financing of National Development
365 Table: 6.6 Recurrent and Development Expenditure as percent of GDP
366 Figure 6.6 Zanzibar: Resource Gap 2000/2001-2009/10 (T.Shs billion)
366 Figure 6.7 Tanzania’s Dependency on Aid, 2001/02 to 2007/08
367 Table 6.7 Trends in Debt Ratio to Gross Domestic Product
368 Figure 6.8 The trend of Imports and Exports Trade in Zanzibar 2006 – 2010
373 Table 6.8 Mainland Tanzania: Selected Macroeconomic Indicators, 2006-2010
374 Table 6.9 Incidence of Poverty in Tanzania
381 Figure 6.9 Trends in Allocation to MKUKUTA and Non-MKUKUTA areas
387 Table 6.10 Zanzibar: Selected Macroeconomic Indicators 2006-2010
387 Table 6.11 Poverty Incidence in Zanzibar 2004/05-2009/10
398 Table 6.12 Key Ratios in Education Sector Spending
398 Table 6.13 Breakdown of Education Budget by Sub-Sectors, Financial Years 2000/01 and 2010/11
398 Table 6.14 Key Ratios in Education Sector Spending
499 Table 6.15 Health Sector Recurrent and Development Funding,
406 Figure 6.10 Percentage of Children Under One Year Vaccinated against DPT and Hepatitis B with a Third Dose, 2002-08
410 Figure 6.11 Number of Tuberculosis Cases in mainland Tanzania vs MDG Targets
411 Table 6.16 Perceptions on Trends in Fighting HIV and AIDS
414 Table 6.17 Infant, Under-5 and Maternal Mortality
415 Box 6.2 Best Practice – Zanzibar Success in Fight Against Malaria
416 Table 6.18 Nominal MoHSW Spending, FY2003/04 – FY2006/07 (TShs Million, Current prices)
416 Table 6.19 Expenditure and Financing of HIV and AIDS Activities for Period July 2004 to June 2007 (TShs million)
417 Table.6.20 Enrolment in Zanzibar Universities
417 Table 6.21 Enrolment rate in primary education
418 Table 6.22 Enrolment rate in secondary education from Form 1 to Form IV
418 Table 6.23 Registration rate for Form V to VI.
418 Table 6.24 Primary School Exam results for standard seven pupils from 2001 to 2009.
419 Table 6.25 Results for Form IV exams from 2001 to 2009
419 Table 6.26 Results for Form VI exams from 2001 to 2009
419 Table 6.27 School Drop outs by Gender
420 Table 6:28 School Drop outs due to early marriages and pregnancies
420 Table 6:29 Girls who continued with their studies
421 Table 6:30 Acess to University Education Outside Zanzibar
421 Table 6.31 Government Recurrent Budget Allocation to Education Sector (TShsMillions)
424 Figure 6.12 Budget Allocations in the Water Sector, 2004 to 2010
425 Figure 6.13 Household by Source of Drinking Water vs MKUKUTA Targets
427 Figure 6.14 Household Water Expenditure and Access, by Wealth Quintile
431 Figure 6.15 Type of Latrine used by Households
452 Table 6.32 Percentage of Households by Source of Drinking Water and Area
453 Table 6.33 Source of Drinking Water
454 Table 6.34 Household data on household use of energy for cooking and lighting
455 Table 6.35: Summary on loans distribution from 2000-2007
456 Table 6.36: Telecommunication services available in Zanzibar
456 Table 6.37 Construction Materials of Main Dwelling Unit by Area (percentage)
461 Table 6. 38 Number of Women and Men in Public Decision-Making Positions (URT)
462 Table 6.39 Currently Employed Persons by Occupation, Sex and Area, 2006 (percent)
465 Table 6.40 Representation of women in decision-making positions (Zanzibar)
466 Table 6.41 Representation of women and men in employment in different economic activities
474 Table 6. 42 Additional Information on Steps in the Planning and Budgeting Cycle
477 Box 6.3 Weaknesses associated with consultations for PRSP, 2000


ACHPR African Charter on Human and People’s Rights
ADF Agricultural Development Fund
AFRITAC African Growth and Opportunity Act
AEC African Economic Community
AGOA African Growth Opportunity Act
AIDS Acquired Immune Deficiency Syndrome
APRM African Peer Review Mechanism
ARC Association for Regional Cooperation
ARVs Anti Retroviral
ASA Alex Stewart Assayers
ASDS Agricultural Sector Development Strategy
ASSP Association of Small Scale Producers (UWAZI)
AU African Union
BAKWATA National Muslim Council of Tanzania
BEST Business Environment Strengthening in Tanzania
BET Board of External Trade
BFIA Banking and Financial Institutions Act
BG Budget Guidelines
BOP Balance of Payments
BOT Bank of Tanzania
BP British Petroleum
BRELA Business Registration and Licensing Agency
CAADP Comprehensive African Agricultural Development Programme
CAG Controller and Auditor General
CBOs Community Based Organizations
CCM Chama cha Mapinduzi
CCT Christian Council of Tanzania
CET Common External Tariff
CFAA Country Financial Accountability Assessment
CHODAWU Conservation, Hotels, Domestic and Allied Workers Union
CHRGG Commission for Human Rights and Good Governance
CMA Commission for Mediation and Arbitration
CMOs Chief Ministers’ Office
CMSA Capital Markets and Securities Authority
COMESA Common Market for Eastern and Southern Africa
Consultative Council
COTWU Communication and Transport Workers Union of Tanzania
CPA Certified Public Accountant
CPS Central Payment System
CRDB Cooperative and Rural Development Bank
CRMP Cooperative Reform and Modernization Program
CSAR Country Self Assessment Programme
CSM Country Support Mission
CSFM Country Support Follow Up Mission
CRSRC Civil Service Reform Commission
CSO Civil society Organization
CSR Corporate Social Responsibility
CSRP Civil Service Reform Programme
CTI Confederation of Tanzania Industries
CUF Civil United Front
CUZA Cooperative Union of Zanzibar
CWT Chama cha Waalimu Tanzania (Teachers Union)
DANIDA Danish Internal Development Agency
D-by-D Decentralization by Devolution
DCs District Commissioners
DFID Department for International Development
DMC Dar es Salaam Merchant Chamber
DRC Democratic Republic of Congo
DoE Department of Economics
DOE-VP Department of Environment, Vice President’ Office
DOWUTA Dock Workers Union of Tanzania
DP Development Partners
DPOs Disabled People’s Organizations
DSE Dar es Salaam Stock Exchange
EA East Africa
EAC East African Community
EACJ East African Court of Justice
ELA East African Legislative Assembly
EBA Everything But Arms
EC European Community
ECA Economic Commission for Africa
EDU-MIS Education Management Information System
EIA Environmental Impact Assessment
ELRA Employment and Labour Regulation Act
EPZ Export Processing Zone
EPA External Payment Arrears
ERB Engineers’ Registration Board
ERP Economic Recovery Programme
ESAAMLG Eastern and Southern Africa Anti-Money Laundering Group
ESDP Education Sector Development Programme
EU European Union
EWURA Energy and Water Utilities Regulatory Authority
FASP Financial Sector Assessment Project
FAWETA Federation of Women Entrepreneurs of Tanzania
FBO Faith-based Organization
FCC Fair Competition Commission
FDI Foreign Direct Investment
FICOS Financial Cooperative Societies
FIU Financial Intelligence Unit
FSAP Financial Sector Assessment Programme
FSAP Financial Sector Assessment Project
FTA Free Trade Area
GBS General Budget Support
GDP Gross Domestic Product
GEC Global Economic Crisis
GFS Government Finance Statistics
GSP Generalized System of Preferences
HBS Household Budget Survey
HDI Human Development Index
HIPC Highly Indebted Poor Countries
HIV Human Immuno-deficiency Virus
HoR House of Representatives
HS Harmonized System
HSSE Healthy, Safety, Security and Environment
IAS International Accounting Standards
IASB the International Accounting Standards Board
ICT Information and Communication Technology
IDs Identity Cards
IFA International Federation of Accountants
IFAS International Financial Accounting Standards
IFMS Integrated Financial Management System
IFRS International Financial Reporting Standards
IGAD Inter Governmental Authority on Development
IGWUTA Industrial and General Workers Union of Tanzania
IIRT International Investors Round Table
ILC International Labour Code
ILD Institute of Liberty and Democracy
ILO International Labour Organization
ILS International Labour Standards
IMF International Monetary Fund
IMTC Inter-Ministerial Technical Committee
IOR Indian Ocean Rim
IPC Investment Promotion Centre
ISA International Standards on Auditing
ISO International Standards Organization
ISS Institute for Security Studies
JAST Joint Assistance Strategy for Tanzania
JFC Joint Finance Committee
JUC Joint Union Committee
LART Loans and Advances Realization Trust
LDI Local Development Investments
LDCs Least Developed Countries
LESCO Labour, Economic and Social Council
LIRT Local Investors Round Table
LGA Local Government Authority
LGRP Local Government Reform Programme
LSRP Legal Sector Reform Programme
LTPP Long Term Perspective Plan
M&E Monitoring and Evaluation
MACEMP Marine and Coastal Environment Management Programme
MCA Millennium Challenge Account
MCC Millennium Challenge Corporation
MACMOD Macroeconomic Modeling
MDAs Ministries, Departments and Agencies
MDG Millennium Development Goal
MFAIC Ministry of Foreign Affairs and International Cooperation
MFI Micro-Finance Institutions
MFN Most Favoured Nation
MEAC Ministry of East African Cooperation
MICS-ZNZ Ministry of Information, Culture and Sports – Zanzibar
MIS Management Information System
MITI-ZNZ Ministry of Tourism, Trade and Investment – Zanzibar
MITM Ministry of Industry, Trade and Marketing
MKUKUTA Mkakati wa Kukuza Uchumi na Kupunguza Umasikini Tanzania
MKURABITA Mpango wa Kurasimisha Rasilimali na Biashara za Wanyonge Tanzania
MKUZA Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Zanzibar
MLYWCD Ministry of Labour Youths, Women and Children
MNCs Multinational Corporations
MoCAGG Ministry of Constitutional Affairs and Good Governance
MoCT-ZNZ Ministry of Education and Vocational Training Zanzibar
MoF Ministry of Finance
MOFEA Ministry of Finance and Economic Affairs
MoHA Ministry of Home Affairs
MoHSW Ministry of Health and Social Welfare-Zanzibar
MoHSW Ministry of Health of Social Welfare
MoICS Ministry of Information, Culture and Sports
MoID Ministry of Infrastructure Development
MoLDF Ministry of Livestock Development and Fisheries
MoRASF-ZNZ Ministry of State (PO) Regional Administration and Special
Armed Forces -Zanzibar
MPAMITA Mkakati wa Pamoja wa Misaada Tanzania (JAST)
MPIP Medium Term Plan
MPEE Ministry of Planning, Economy and Empowerment
MSMEs Micro, Small and Medium Enterprises
MTEF Medium Term Expenditure Framework
MTS Multilateral Trading Systems
NACSAP National Anti Corruption Strategy
NBAA National Board of Accountants and Auditors
NBFIs Non Bank Financial Institutions
NBC National Bank of Commerce
NBS National Bureau of Statistics
NDC National Development Corporation
NDMC National Debt Management Committee
NEC National Electoral Commission
NEMC National Environmental Management Council
NEPAD New Partnership for Africa’s Development
NER Net Enrolment Rate
NGC National Governing Council
NGOs Non-governmental Organizations
NMP National Microfinance Policy
NMB National Micro Finance Bank
NPES National Poverty Eradication Strategy
NPoA National Programme of Action
NSGRP National Strategy for Growth and Reduction of Poverty
NSSF National Social Security Fund
NTEs Non-traditional Exports
OCGS Office of the Chief Government Statistician
OECD Organization for Economic Cooperation and Development
O & OD Opportunities and Obstacles to Development
OPRAS Open Performance Review and Appraisal System
OSC Objectives, Standards and Codes
OSCI Objectives, Standards, Criteria and Indicators
OSHA Occupational Safety and Health Act
PAC Public Accounts Committee
PADEP Participatory Agricultural Development and Empowerment Programme
Pas Protected Areas
PBFP Property and Business Formalization Programme
PBGs Plan and Budget Guidelines
PCB Prevention of Corruption Bureau
PCCB Prevention and Combating of Corruption Bureau
PCI Per Capita Income
PEDP Primary Education Development Plan
PEFA Public Expenditure and Financial Accountability
PEFAR Public Expenditure and Financial Accountability Review
PER Public Expenditure Review
PETS Public Expenditure Tracking Surveys
PFMRP Public Financial Management Reform Programme
PFMS Public Financial Management System
PMO-RALG Prime Minister’s Office – Regional Administration and Local Government
PMS Poverty Monitoring System
PO President’ Office
PO-GGCU President’s Office – Good Governance Coordination Unit
PO-PSM President’s Office, Public Service Management
PO-ZNZ President’s Office – Zanzibar
PPA Public Procurement Act
PPF Parastatal Pension Fund
PPP Public Private Partnership
PPRA Public Procurement Regulatory Authority
PRBS Poverty Reduction Budget Support
PRP Poverty Reduction Programme
PRS Poverty Reduction Strategy
PRSC Poverty Reduction Support Credit
PRSP Poverty Reduction Strategy Paper
PSI Pre-Shipment Inspection
PSRC Public Service Reform Commission
PSs Permanent Secretaries
PTC Permanent Tripartite Commission
RAAWU Researchers, Academicians and Allied Workers Union
RAS Regional Administrative Secretary
REC Regional Economic Community
RECOMAC Regional Coastal and Marine Conservation – Zanzibar
RGoZ Revolutionary Government of Zanzibar
RIFF Regional Integration Facilitation Forum
ROSC Report on the Observance of Standards and Codes
RS Regional Secretariat
RTAs Regional Trading Arrangements
RTS Regional Trading Systems
SACCOs Savings and Credit Cooperative Societies
SACU Southern Africa Customs Union
SADC Southern Africa Development Community
SADCC Southern Africa Development Coordination Conference
SAGCOT Southern Agricultural Growth Corridor of Tanzania
SBAS Strategic Budget Allocation System
SEDP Secondary Education Development Programme
SELF Small Enterprises Loan Facility
SEZ Special Economic Zone
SGFSR Second Generation Financial Sector Reform
SIDA Swedish International Development Agency
SLREA Strengthen Labour Relations in East Africa
SMEs Small and Medium Enterprises
SMZ Serikali ya Mapinduzi Zanzibar
SUA Sokoine University of Agriculture
SUMATRA Surface and Marine Transport Regulatory Authority
TACAIDS Tanzania Commission for AIDS
TALGWU Tanzania Local Government Workers Union
TAMICO Tanzania Mines and Construction Workers Union
TAMWA Tanzania Media Women Association
TAS Tanzania Accounting Standards
TFAS Tanzania Financial Accounting Standards
TASAF Tanzania Social Action Fund
TASIWU Tanzania Social Services Industry Workers Union
TASO Tanzania Agricultural Society Organization
TASU Tanzania Seamen’s Union
TAT Technical Assessment Team
TAWLA Tanzania Women Lawyers Association
TAWU Tanzania Agro-forestry Workers Union
TBA Tanzania Bankers Association
TBS Tanzania Bureau of Standards
TBTs Technical Barriers to Trade
TCA Tanzania Consultancy Association
TCAL Tanzania Chamber of Agriculture and Livestock
TCCIA Tanzania Chamber of Commerce, Industry and Agriculture
TCECA Tanzania Civil Engineering and Construction Association
TCRA-CCC Tanzania Communication Regulations Authority-
TDHS Tanzania Demographic and Health Survey
TDMC Technical Department Management Committee
TEA Tanzania Exporters Association
TEC Tanzania Episcopal Conference
TEWUTA Telecommunication Workers Union of Tanzania
TFCC Tanzania Fair Competition Commission
TFDA Tanzania Food and Drugs Authority
TGNP Tanzania Gender Networking Programme
TIC Tanzania Investment Centre
TLS Tanganyika Law Society
TMW-UNION Tanzania Media Workers Union
TNBC Tanzania National Business Council
TOMA Tanzania Oil Marketing Association
TOR Terms of Reference
TPAWU Tanzania Plantation and Agriculture Workers Union
TPSF Tanzania Private Sector Foundation
TPU Tanzania Pilot’s Union
TRA Tanzania Revenue Authority
TRAWU Tanzania Railways Workers Union
Tshs. Tanzania Shillings
TTB Trade Technical Barriers
TUGHE Tanzania Union of Government and Health Employees
TUICO Tanzania Union of Industrial and Commercial Workers
TUJ Tanzania Union of Journalists
TUPSE Tanzania Union of Private Security Employees
UDSM University of Dar es Salaam
UK United Kingdom
UN United Nations
UNCC United Nations Convention on Climate Change
UNDP United Nations Development Programme
UNIDO United Nations Industrial Development Organisation
URT United Republic of Tanzania
US United States (of America)
US$ United States Dollar
USA United States of America
USAID United States Agency for International Development
UWAZI Association of Small Scale Producers
VAT Value Added Tax
VETA Vocational Education Training Authority
VPO Vice President’s Office
WAMEUTA Tanzania Fishing Crew and Allied Workers Union
WB World Bank
WCED World Commission on Environment and Development
WHO World Health Organization
WTO World Trade Organisation
ZAFREZA Zanzibar Free Economic Zones Authority
ZAMCOM Zambezi Watercourse Commission
ZATUC Zanzibar Trade Union Congress
ZATI Zanzibar Agricultural Transformation Initiative
ZBAS Zanzibar Budget Allocation System
ZBC Zanzibar Business Council
ZCCIA Zanzibar Chamber of Commerce, Industries and Agriculture
ZEC Zanzibar Electoral Commission
ZEXA Zanzibar Exporters Association
ZGS Zanzibar Growth Strategy
ZIP Zanzibar Investment Policy
ZIPA Zanzibar Investment Promotion Authority
ZNBC Zanzibar National Business Council
ZNCCIA Zanzibar Chamber of Commerce, Industry and Agriculture
ZPRP Zanzibar Poverty Reduction Plan
ZRB Zanzibar Revenue Board
ZSBAS Zanzibar Strategic Budgetary Allocation System
ZSGRP Zanzibar Strategy for Growth and Reduction of Poverty
ZTIA Zanzibar Tourism Investors Association


The National Governing Council (NGC) of African Peer Review Mechanism (APRM) – Tanzania has completed the process of governance assessment of Tanzania and is pleased to submit the Country Self Assessment Report (CSAR) to the APRM Continental Secretariat for their action. Production of Tanzania’s CSAR could only have been possible with the massive support and assistance of many stakeholders, institutions and people within Tanzania as well as outside the country. In the limited space we have, it is not possible to acknowledge all the institutions and people individually. We will nonetheless mention here only a few of them.

The NGC would like to express its deep appreciation, first and foremost, to the Government of the United Republic of Tanzania, first for acceding to the governance assessment process; and second for its continuous support, facilitation and strong commitment to the process.

In preparing the CSAR, the NGC of APRM-Tanzania received massive support, assistance and encouragement from all the key and strategic stakeholder groups of the process. These include people from the civil society, leaders of political parties, Members of the Tanzania Parliament, Members of the House of Representatives in Zanzibar, The High Court of Tanzania, The High Court of Zanzibar, the Court of Appeal of Tanzania, Women Groups, Youth Groups, Academia, Tanzania Electoral Commission, Zanzibar Electoral Commission, Human Rights Commission, the Government of Tanzania, the Revolutionary Government of Zanzibar, the general public at large, amongst many. On different occasions, the stakeholders participated actively in various APRM activities, including sensitization workshops, responding to APRM questionnaires, validation workshops, etc. Together the stakeholders provided the bulk of the inputs and material for the production of the CSAR. We sincerely appreciate and acknowledge their immense contributions and inputs in the process.

The NGC would also like to express its thanks to Hon. Bernard K. Membe (MP), the, Minister for Foreign Affairs and International Cooperation (MFAIC), who is the designated Focal Point Minister in the Tanzania APRM governance assessment process for supporting and facilitating the process; and in particular in setting up the required national structures for the assessment exercise and for providing funds for the process. Equally, the NGC would like to thank sincerely successive Permanent Secretaries Mr. Seth Kamuhanda, Mr. Sazi Salula and Mr. John Haule together with Ambassador Francis Malambugi and Ms Zuhura Bundala, Directors for the Department of Africa and designated Focal Point Officers – all of MFAIC, for their strong support to the NGC and the assessment process.

The NGC acknowledges the constant support provided by Prof. Adebayo Adedeji, the former member of the APR Panel of Eminent Persons, who lead the Tanzanian peer review process, for his support during the Country Support Mission in 2006 and during the Country Follow- up Support Mission, in 2009. During both missions, Prof Adedeji provided valuable guidance to the NGC and its Secretariat regarding the process.

Special thanks go to the Technical Assessment Teams (TATs) which were engaged in the Desk Research phase of the assessment process. These include: the Department of Political Science and Public Administration of the University of Dar es Salaam – which prepared the chapter on Democracy and Political Governance; the Economics Department of the University of Dar es Salaam – which prepared the chapter on Economic Governance and Management; the then Faculty of Arts and Social Sciences of the University of Dar es Salaam and the University of Dar es salaam School of Business – which prepared the chapter on Corporate Governance; and the Research on Poverty Alleviation (REPOA) – which prepared the chapter on Socio-Economic Development. Together the TATs facilitated the NGC to achieve its key outputs – Thematic Area Reports.

Quality Assurance Consultants – Professor Gaudence Mpangala, Dr. Natu El-Maamry Mwamba, Dr. Haji Semboja, Dr. Eliab Luvanda and Professor Tadeo Satta together did wonderful job to identify governance gaps from the reports and ensured that the thematic area reports met acceptable standards. The NGC of APRM – Tanzania appreciates and acknowledges so much the contribution of these scholars to the success of this process.

The NGC would like to thank Dr. David Manyanza for his meticulous work in facilitating the preparation of the National Programme of Action (NPoA) based on the identified governance gaps, proposed actions to remove the gaps, preparation of the matrix and costing of the activities and tasks. In this context and likewise, the NGC would also like to recognize the inputs of planning officers from key Sectoral Ministries, Departments and Agencies (MDAs), private sector associations and from civil society organizations who provided enormous inputs in the preparation of the NPoA.

A special sense of appreciation and recognition goes to Dr. Joseph Shitundu, Dr. Ali Kilindo and Ms. Grace Kiwia who did a commendable job in preparing the background and introductory chapters together with the fact sheet, and merging the thematic area reports and NPoA into a single, coherent and reader friendly CSAR document.

The NGC would also like to thank Dr. Johnson Ishengoma for preparing a summary or Popular Version of the CSAR that was used during the Validation Workshops. Likewise, the NGC would like to thank Ms Pendo Malangwa, George Mrikaria and Prince Bagenda for translating the CSAR Popular Version into Kiswahili – a document which was extensively used during Validation Workshops.

The NGC would like to recognize the role and efforts made by the APRM – Tanzania Secretariat for working so hard and tirelessly in coordinating the process and providing required technical expertise that culminated into the production of this high quality output (CSAR and NPoA).

Finally, it is worth remembering that the assessment process and the production of the CSAR and the NPoA consumed immeasurable resources. The Government of the United Republic of Tanzania and the United Nations Development Programme (UNDP) provided the funds for this process. The NGC would, thus, like to extend its appreciation to both the Government of the URT and UNDP for their unflinching support towards the APRM process, without which this document would not have been presented in its present form.



Table 1.1: Basic Information
Background The United Republic of Tanzania was formed after the union of two Sovereign States, Republic of Tanganyika and People’s Republic of Zanzibar in 1964. One Party rule came to an end in 1992 with the first multi-party elections held since independence.
President of Zanzibar:
Prime Minister:
H.E. Dr. Jakaya Mrisho Kikwete
H.E. Dr. Mohammed Gharib Bilal

H.E Dr. Ali Mohammed Shein
Hon. Mizengo Peter Pinda
Location: Tanzania is located in Eastern Africa between longitude 290 and 410 East and latitude 10 and 120 South. Tanzania borders the Indian Ocean in the Eastern part with a coastline of 1,424 km from Kenya to Mozambique. In the North Tanzania borders Kenya 769 km and Uganda 396 km while in the West it borders Rwanda 217 km, Burundi 451 km and Democratic Republic of Congo 459 km. In the South Tanzania borders Zambia 338 km, Malawi 475 km and Mozambique 756 km.
Area: Mainland Tanzania, 945,090 sq km; and Zanzibar 2500 sq.km
Resource Base Natural Resources: Arable and pasture land; wetlands, inland water bodies (62,050 sq.km) and Indian Ocean. Forests and woodlands (3,350 sq.km). Mineral resources: gold, diamonds, nickel, coal, iron ore, gemstones, natural gas, caustic soda; small reserves of copper, silver, platinum; unconfirmed reserves of uranium. Planted area Mainland Tanzania: 1.5 million hectares during short rains, 5.7 million hectares during rainy season. Zanzibar: 11100 hectares during short rains and 67200 during rainy season

Population: 41.9 million (Mainland 39.3 million, Zanzibar 1.2 million; 2008 projection):Female (51 per cent); male (49 per cent)
Age Structure: Under 15 years (40 per cent); 15-64 years (48 percent); over 65 years (12 percent)
Capital: Dodoma
Main Towns Dar es Salaam (Commercial Capital), Mwanza, Tanga, Arusha, Mbeya, Dodoma and Zanzibar.
Ethnic Groups About 120 ethnic groups, the largest representing 13 percent, remaining large groups under 5 percent each and Minority of Asians and Europeans
Languages The official languages are Kiswahili and English; with Kiswahili being the widely spoken and written language
Districts 133 in Mainland Tanzania and 10 in Zanzibar
Regions 21 Mainland and 5 Zanzibar
Independence: 9 December 1961, Tanganyika; Zanzibar, 1963 (Revolution 1964)
Constitution: 1977, amended in 1992 to allow multiparty political system (last amendment 2005); Zanzibar Constitution 1984 last amended, 2010)
Executive The executive arm of government of the United Republic is headed by the President, who is the Head of State, Commander-In-Chief of the armed forces and heads the Cabinet. Immediately under him are the Vice President for Union Government and the Prime Minister for the Union Government. Zanzibar has its President and under him are the First Vice President and Second Vice President).
Legislature After 2010 General Elections the National Assembly consists of 357 seats, including elected MPs and Special seats. Out of these, 50 MPs are from Zanzibar. 239 members elected by popular vote in single-member constituencies using the first-past-the post system, 102 seats are reserved for women elected by their political parties on the basis of proportional representation among the political parties represented in the National Assembly. 5 members are indirectly elected by the Zanzibar House of Representatives and up to 10 members may be appointed by the President of URT.
Legal System: The legal system is based on the English Common Law system. This was derived from its British colonial legacy. The system of government is to a large degree, on the Westminster Parliamentary model.
Judiciary: The Judiciary is formed by the various courts of judicature and is independent of government. The Judiciary has five tiers, the Court of Appeal of the United Republic of Tanzania, the High Court for Mainland Tanzania. Magistrate’s courts are at two levels i.e the Resident Magistrate Courts and the District Courts, both of which have concurrent jurisdiction. Primary courts are the lowest in the judiciary hierarchy. Apart from sharing the Court of Appeal of the United Republic of Tanzania with mainland Tanzania, Zanzibar has a distinct and separate legal system. Besides the High Court of Zanzibar, there are Magistrate Courts and Kadhi Courts.
Source: URT: Tanzania in Figures 2011

Table 1.2: Overall Ease of Doing Business in Tanzania by Rank (out of 178 Economies)
Topic Rankings DB 2011 Rank DB 2010 Rank Change in Rank
Starting a Business
122 122 No change
Dealing with Construction Permits
179 179 No change
Registering Property
151 148 -3
Getting Credit
89 87 -2
Protecting Investors
93 92 -1
Paying Taxes
120 116 -4
Trading Across Borders
109 111 2
Enforcing Contracts
32 32 No change
Closing a Business
113 112 -1

Source: Doing Business 2011, World Bank Group

Table 1.3 Zanzibar Enrolment Rate in Primary Education

Year Registration standard 1-2 percentage
2001 172,465 94.6
2002 184, 382 98.1
2003 191,959 100.3
2004 199,988 101.3
2005 208,283 101.3
2006 209,241 100.6
2007 214,096 104.6
2008 216,731 104.4
2009 220,819 106.8
2010 226,812 112.1

Source: Ministry of Education (2010)

Table 1.4 Tanzania MDG Indicators
Progress in MDGs at a Glance: Mainland Tanzania
MDG Indicator Baseline: 1990 Current status 2015 Target Progress at a Glance
1. Eradicate extreme poverty and hunger 1.1 Proportion of population below($1, PPP) (based on national income poverty line) 39 33.6
(2007) 19.5
1.1 Proportion of population below($1, PPP) (based on national food poverty line) 21.6 16.6 (2007) 10.8
1.8 Under-5 Underweight (%) Children underweight (weight-for-age below -2SD) declined from 21.9 percent in 2004/5 to 16 percent in 2009. 28.8 22 (2005 14.4
1.8 Under-5 Stunted (%) 46.6 38 (2005) 23.3
2. Achieve universal primary education 2.1 Net enrolment ratio in primary education (%) 54.2 97.2 (2009) 100
2.2 Gross enrolment ratio in primary education (%) 112.7 100
3. Promote gender equality and empower women 3.1 Ratio of girls to boys in primary school (%) 98 101 100
3.2 Ratio of girls to boys in secondary school (%) The gender parity in secondary education has also recorded significant progress. In 2010, the number of students in secondary schools (Form 1 – 6) increased to 1,638,699 from 524,325 in 2005, equivalent to an increase of 1,114,374 pupils. The number of girls was 728,528, in 2010, (equivalent to 44.5 percent) and boys were 907171, (equivalent to 55.5 percent) 105 100
3.3 Ratio of females to males in tertiary education (%)
The number of students enrolled in government and non government universities and colleges increased to 118,951 in 2010 (of which males were 76,936 and females 42,016) 68.0 100
3.4 Proportion of women among members of Parliament (%) 30.3 100
4. Reduce child mortality 4.1 Under-five mortality rate (per 1,000 live births) 191 81 (2010) 64
4.2 Infant mortality rate (per 1,000 live births) 115 51 (2010) 38
4.3 Proportion of children vaccinated against measles 85 90
5. Improve maternal health 5.1 Maternal Mortality Ratio (per 100,000 live births) 529 454 (2010) 133
5.2 Proportion of births attended by skilled health personnel (%) 43.9 63 (2008) 90
6. Combat HIV/AIDS, malaria and other diseases 6.1 HIV prevalence, 15-24 years 6 2.5 (2008) <6 7. Ensure environmental sustainability 7.8 Proportion of population using an improved drinking water source (:% of rural population) 51 57.1 (2009) 74 7.8 Proportion of population using an improved drinking water source (:% of urban population) 68 83 (2009) 84 7.9 Proportion of people with access to improved sanitation (Rural/Urban) 88.9/98.5 8. Develop a global partnership for development Key to colours: green = achievable; yellow = achievement probable; red – not achievable Sources: 1. URT (2010) “Accelerating Progress towards the MDGs: Country Action Plan 2010-2015” Final Report; 2. Table 1.5 Progress in MDGs at a Glance -Zanzibar MDG Indicator Baseline: 1990 Current status 2015 Target Progress at a Glance 1. Eradicate extreme poverty and hunger 1.1 Proportion of population below($1, PPP) (based on national income poverty line) 61 44.41 (2010) 30.5 1.1 Proportion of population below($1, PPP) (based on national food poverty line) 25 13.04 (2010) 12.5 1.8 Under-5 Underweight (%) Children underweight (weight-for-age below -2SD) 39.9 19.9 (2010) 19.9 1.8 Under-5 Stunted (%) 47.9 30.2 (2010) 23.8 2. Achieve universal primary education 2.1 Net enrolment ratio in primary education (%) 50.9 81.5 (2010) 100 2.2 Gross enrolment ratio in primary education (%) 112.1 100 3. Promote gender equality and empower women 3.1 Ratio of girls to boys in primary school (%) 98 0.99 (2007) 100 3.2 Ratio of girls to boys in secondary school (%) 0.96 (2007) 100 3.3 Ratio of females to males in tertiary education (%) 68.0 100 3.4 Proportion of women among members of Parliament (%) 30 (2010) 50 4. Reduce child mortality 4.1 Under-five mortality rate (per 1,000 live births) 202 79(2007/2008) 67 4.2 Infant mortality rate (per 1,000 live births) 120 54 (2008) 40 4.3 Proportion of children vaccinated against measles 95.8 (2009) 100 5. Improve maternal health 5.1 Maternal Mortality Ratio (per 100,000 live births) 377 - 1998 279 (2010) 170 5.2 Proportion of births attended by skilled health personnel (%) - 44.7 (2008) 90 6. Combat HIV/AIDS, malaria and other diseases 6.1 HIV prevalence, 15-24 years 6 2.5 (2008) <6 7. Ensure environmental sustainability 7.8 Proportion of population using an improved drinking water source (:% of rural population) 35 60 (2010) 67.5 7.8 Proportion of population using an improved drinking water source (% of urban population) 70 80 (2010) 85 7.9 Proportion of people with access to improved sanitation (Rural/Urban) 26/52 51/75 (2005) 8. Develop a global partnership for development Key to colours: green = achievable; yellow = achievement probable; red – not achievable Source: MDGs Country Report 2011 Figure 1.1 Trend Analysis of Primary Education NER (net enrolment ratio) and GER (gross enrolment ratio), 2006-2010 in Tanzania Mainland Source: Ministry of Education and Vocational Training (2010) Basic Education Statistics EXECUTIVE SUMMARY 1.0 THE APRM PROCESS i. The primary purpose of the African Peer Review Mechanism (APRM) is to foster the adoption of policies, standards and practices that lead to the attainment of the objectives of the New Partnership for Africa’s Development (NEPAD). APRM was endorsed in 2003 by African leaders to complement NEPAD. The latter was adopted earlier in 2001 when African leaders proclaimed the Declaration on Democracy, Political, Economic and Corporate Governance. This NEPAD declaration was of particular importance because it acknowledged many similar but un-integrated declarations and frameworks for Africa’s way forward that had been made for two decades. The NEPAD declaration integrated them and made good governance its central plank. In adopting NEPAD whose long term objective is to eradicate poverty and place African countries on the path of sustainable growth and development, the leaders pledged to promote and protect democracy and human rights by developing clear standards of accountability, transparency and participatory governance. ii. The African leaders agreed that through APRM, member states will monitor their own progress in governance and good practices in four thematic areas, namely democracy and political governance, economic governance and management, corporate governance and socio-economic development with the ultimate goal of identifying governance deficiencies and looking for means to address them as well as sharing experiences and best practices. iii. The APRM process incorporates both a country self-assessment and an assessment by experts from other African countries. Respectively, the end products of the evaluation process are the Country Self Assessment Report (CSAR) and The Country Review Report (CRR) which incorporates the National Plan of Action (NPoA). iv. The CSAR and the tentative NPoA are submitted to the APR Continental Secretariat. Thereafter a visit by the Country Review Mission (CRM) follows to conduct its own consultations with governance stakeholders and drafts the Country Review Report (CRR). Each Government responds to the findings of the CRM and their responses are appended to their CRR. The final CRR and NPoA are then submitted to the APR Forum of participating Heads of State and Government for deliberations and the way forward. 1.2 The APR Process in Tanzania v. Tanzania is among 30 countries that are participating in the APRM process. The government acceded to the mechanism by signing the MoU on May 26, 2004 and the country’s Parliament ratified the MOU on February 1, 2005. Initialisation of the process in the Country vi. Initialisation of the process in Tanzania involved firstly, sensitisation of key stakeholders, including Members of Parliament, CSOs, and Political Parties etc. During this seminar stakeholders identified three quarters of the members of the National Governing Council (NGC). Secondly, it involved the visit by the Country Support Mission which advised on constituting a representative and an inclusive NGC. Focal Point Ministry vii. In Tanzania the Ministry of Foreign Affairs and International Cooperation (MFAIC) has been designated as the Focal Point Ministry, and a ministry official with ambassadorial rank is the Focal Point Officer. It is closely assisted by the President’s Office - Planning Commission (formerly the Ministry of Planning, Economy and Empowerment), and the Office of the Minister of State for Good Governance in the President’s Office. Sensitisation Seminars viii. The operations of APRM Tanzania commenced in earnest in mid 2007, when a full-fledged National Secretariat was established to support the NGC. A series of sensitization workshops were conducted to make stakeholders aware of the program so that they could participate and own the process as well as ensure its sustainability. Sensitisation seminars were organized countrywide for key stakeholder groups. While sensitization workshops were being carried out, desk research on the four thematic areas was undertaken by Technical Assessment Teams (TATs). The Country Support Follow-up Mission (CSFM) ix. The Country Support Follow-up Mission (CSFM) visited Tanzania from March 3 – 4, 2009. The team was lead by Professor Adebayo Adedeji, a then member of the APRM Panel of Eminent Persons and the then leader for the Tanzanian process. x. The overall objective of the CSFM was to review the progress achieved until then and to exchange views on how best to carry out the remaining activities aimed at accomplishing the initial phase of the process. This visit was necessary because time had elapsed since the first Country Review Mission in 2006. The meetings which were conducted with different stakeholders were interactive for peer learning purposes. In the end, the CSFM agreed with the NGC on a road map for the Tanzanian process. 1.3 Methodology used for Self Assessment Technical Assessment Teams (TATs) xi. Four Technical Assessment Teams (TATs) were selected on transparent and competitive basis. Three of these were from the University of Dar es salaam namely, the Department of Political Science and Public Administration (Democracy and Political Governance); Department of Economics (Economic Governance and Management); and the then Faculty of Arts and Social Sciences (Corporate Governance). Assessment on the Socio- Economic Development thematic area was undertaken by Research on Poverty Alleviation (REPOA). However, in updating of the CSAR, the Corporate Governance assessment was handled by a technical expert from the School of Business, University of Dar es Salaam. xii. The assessment of governance was based on a common questionnaire that was prepared by the APR at the continental level which was then domesticated. The TATs used standard techniques for responding to the questionnaire. xiii. By March 2008, the four Technical Assessment Teams (TATs) had prepared the desk research reports. These were followed by household and expert opinion surveys which were conducted in August 2008 in all the 26 regions of Tanzania (both mainland Tanzania and Zanzibar) to elicit people’s opinions on governance. A different survey for corporate organisations was conducted with a view to establishing governance gaps and best practices in their operations in the country. Opinions and investigations on governance which were submitted by key social groups, consisting mainly of leading CSOs were also incorporated into the reports. Subsequently the results of the opinion surveys were incorporated in the desk research and discussed by the stakeholders. The reports were then subjected to quality assurance and validation by stakeholders. Finally, the thematic area reports were consolidated into a single report, i.e, the Country Self Assessment Report (CSAR) with its accompanying Preliminary National Program of Action (NPOA) aimed at addressing the identified gaps in governance. xiv. The sample for the Expert Survey involved Tanzanian citizens of at least 26 years of age. A total of 110 experts were interviewed. This included 3 experts from each of the 25 regions and 35 experts from Dar-es-Salaam Region. It was also planned that at least one female be selected from each region and that at least 17 females be selected from Dar-es-Salaam region. xv. With respect to the Household Sample Survey, for the case of rural areas in mainland Tanzania, 2 districts were selected and in each District 2 villages were selected with 21 households being sampled for each village. One person aged 18 years and above, was sampled for interview in each of the sampled households. For the case of Zanzibar, 2 shehias were selected from both districts in each region and then 21 households were selected from each sampled shehia. One person aged 18 years and above, was selected for interview in each of the sampled household. The sample size was technically representative of the total population in Tanzania. xvi. The sample for urban areas comprised Dar-es-Salaam Region and other 9 municipalities on mainland Tanzania and Urban West Region in Zanzibar. It also included a super stratum consisting of other urban districts in mainland Tanzania and other urban locations in Zanzibar as listed for the 2002 Population and Housing Census. The sampling procedure for selecting the urban areas was, again, a combination of four and three stages but, in contrast with the rural sample, only 17 households were selected from the list of households at the last stage. xvii. The sample had a total of 65 sampling locations out of which 48 were in rural areas and 17 in urban areas. The sample also took into account gender balance that is, out of the total of 42 respondents required from each rural location, 21 were females and the other 21 were males. Similarly, out of the 34 respondents required from each of the urban locations, 17 were females and the other 17 were males. The total households sampled in the country were 2,594 representing roughly 23 percent of the sampled population in urban areas and 77 percent of the same in rural areas. xviii. Data collection of the expert questionnaire extended over the period of August 18, 2008 to September 20, 2008. Opinions of most of the sampled experts from the regions were collected during the period of August 18, 2008 to August 28, 2008. The expert questionnaire was filled in by another group of experts in Dar es Salaam at a special workshop held on September 9, 2008. xix. Overall, 102 of the 110 responded or 93 per cent response rate which is rated as excellent. Unfortunately, only a few female respondents were captured. Male respondents were mainly from urban locations as expected, considering the restrictions imposed on education. Most of the people with university and college education are found mainly in urban areas. xx. Data collection of the household questionnaire was done from August 18, 2008 to August 31, 2008. A total of 2,559 households were covered against the planned number of 2,594 households which is rated as excellent. Rationale for Updating and Reviewing the Country Self Assessment Report xxi. The Country Self Assessment Report was submitted to the APRM Continental Secretariat on July 14, 2009. It was expected that, the Country Review Mission (CRM) would have been fielded to Tanzania in September 2009 and the Country would have been peer-reviewed in January 2010. However, this did not happen due to the fact that the then Eminent Person, Professor Adebayo Adedeji had other commitments in Ethiopia which was preparing for its review, and subsequently, Tanzania was preparing for its General Elections which were held in October 2010. These factors contributed to the delay in the APR process in Tanzania. xxii. Given that two years have passed since the CSAR was sent to APRM Continental Secretariat, many changes have taken place in the political and socio-economic landscape. Some of the findings in the Report were rendered out of date. This necessitated a review of the CSAR with a view to making it relevant to the current situation. The review was made from March 2011 to July 2011 with the assistance of the Technical Assessment Teams which were involved in the preparation of the initial report except the Corporate Governance area that was handled by an expert from the School of Business, University of Dar es Salaam. The reports were subjected to quality assurance and validation through technical workshops. A National Validation Workshop was organized on August 10, 2011 whereby various key stakeholders provided their perspectives on the Report. The updated summary of the findings is provided below. Overall, the findings have largely remained valid since 2009. Limitations xxiii. Due to budgetary and time constraints, data collection for updating the Report was mainly limited to desk research methodology. Stakeholders’ opinions were also collected through validation workshop conducted after the CSAR had been sent to the APRM Continental Secretariat in July 2009. Stakeholders who provided inputs during validation seminars included: In Zanzibar: Members of House of Representatives, CSOs, Academia, Media and Business Community. In mainland Tanzania: Leaders of Political Parties, CSOs, Media, Leaders of Women Groups, TGNP, Regional Administrative Secretaries both from Mainland and Zanzibar, People with Disabilities, Council Directors, Honourable Judges, Religious leaders, Principal Secretaries, People living with HIV AIDS, Elderly people in Shinyanga, Albinos in Mwanza, etc. The Preliminary National Programme of Action xxiv. The National Programme of Action has also been revisited after reviewing the governance gaps and proposed governance actions to remove the gaps. 2.0 SUMMARY OF FINDINGS IN THE THEMATIC AREAS 2.1 Democracy and Political Governance xxv. Assessment on political and democratic governance focused on efforts aiming to consolidate a constitutional political order in which democracy, respect for human rights, the rule of law, the separation of powers and effective and responsive public service are realized to ensure sustainable development, a peaceful and stable Tanzanian society. xxvi. The review has highlighted several intra-state conflicts, including those related to the Union matters; the existing constitutional framework; intra and inter-party conflicts; local artisan miners versus large mining firms investing in the country and land disputes resulting from forcible evictions of local communities from their lands, settlements and properties. Other sources of conflicts are organized crime, illicit arms trade, refugees and internally displaced persons. Results from desk research and validation workshops reveal that the leading sources of conflicts in the society are political in nature. In particular these are related to the elections, intra and inter-party disputes and other related political reasons. Economic factors such as inequalities and wealth distribution are cited as second major source of conflicts in Tanzania. xxvii. The findings maintain that government officials and political leaders are the least favoured option for resolving conflicts in the society. This is partly based on the fact that they may not “practice what they preach” on the question of resolution of conflicts in the country. Furthermore, there is a noted low level of awareness of the citizenry on the available conflict resolution mechanisms, and how those mechanisms actually function, as well as stakeholders’ knowledge on the costs and benefits of employing the same. Another revealing feature is the preference for formal or government institutions as opposed to individuals. Respondents have expressed that institutions can be relied upon as conflict resolution mechanisms rather than individuals who occupy them. xxviii. Before the 2010 General Elections Zanzibar was far from being described as calm. Following the latest reconciliation initiative (Maridhiano) of November 2009, championed by the then President of Zanzibar, Amani Abeid Karume and CUF’s Secretary General, Seif Shariff Hamad and subsequent constitutional amendments to allow the formation of Government of National Unity, the long standing political conflict in Zanzibar seems to have been settled. However, more effort is needed to constantly review the workings of the power sharing arrangements under the Government of National Unity so as to sustain the reconciliation process beyond the previous and next general elections. xxix. On inter-state relations, it has been observed that Tanzania has been enjoying a relatively harmonious relationship with her immediate neighbours, and that accession of Rwanda and Burundi to the East African Community is likely to create conditions for even more harmony. The border situation with neighbouring countries has generally been rated as calm. xxx. On the whole, there has been some improvement in constitutional democracy and rule of law in Tanzania since the introduction of multiparty politics in 1992. It is important, however, to note that Tanzania consists of two different polities (mainland Tanzania and Zanzibar) with varying scales of failures and achievements. Political competition on the mainland is still a serious problem as opposition parties have contested the validity of the elections – particularly the 2010 General Elections focusing on the validity of the processes and outcomes. xxxi. The legal framework and institutional arrangements in Tanzania as a whole are still considered restrictive to allow a well-functioning multiparty system. Opposition parties and civil society organizations have been raising critical issues on constitutional deficiencies and even putting demands for a new constitution. Laws governing elections, political parties, media and civil society organizations are also seriously contested by opposition parties and civil society organizations. Promotion and protection of human economic, social, cultural, civil and political rights in Tanzania has been undertaken not only by the government but also by civil societies and even groups of individuals. In 1984 Tanzania incorporated into her Constitution a Bill of Rights which provides for various economic, social, cultural, civil and political rights as enshrined in international and regional human rights instruments. In simple terms, democratic governance in Tanzania is still fragile - it still faces challenges, including the fact that one of the basic prerequisites of democratic governance, i.e., general consensus on the basic rules of the game is still inadequate. xxxii. Tanzania has been hailed as one of the first countries in Africa to enact a specific legislation, the Election Expenses Act. No. 6 of 2010, to regulate the role of money in electoral politics which was one of the formidable challenges of democracy and public accountability in the developing world. The Act is a milestone to curb the tendency of giving unfair advantage to wealthy candidates. However, the effectiveness of the Election Expenses Act was dismal in reducing the problem of corruption and undisclosed funds. There is need to review the law so as to improve its effectiveness. xxxiii. By 2007, Tanzania had ratified a number of core international instruments that guaranteed civil, political, social, economic and cultural rights. The instruments ratified include: the International Covenant on Civil and Political Rights and The International Covenant on Economic, Social and Cultural Rights (ICESCR), 1966; International Convention on the Elimination of all Forms of Racial Discrimination (CERD); International Convention on the Rights of the Child (CRC); and The Convention on the Elimination of all Forms of Discrimination against Women (CEDAW). At the Regional level, Tanzania has ratified the African Charter on Human and Peoples’ Rights (ACHPR), the African Charter on the Rights and welfare of the Child (ACRWC); the Protocol to the African Charter on Human and Peoples’ Rights on Rights of Women in Africa (The African Women Protocol); and the Protocol to the African Charter on Human and Peoples’ Rights; Establishing the African Court of Human and Peoples’ Rights, and the Grand Bay (Mauritius) Declaration and Plan of Action for the Promotion and Protection of Human Rights. xxxiv. The Political Parties Act No. 5 of 1992 does not provide for parties to forge alliances for electoral contests. It requires existing parties that wish to forge alliances to first of all dissolve themselves before they become a completely new party. This has discouraged the initiatives by opposition parties to form electoral alliances and contest elections as a unified bloc against the ruling party. Following the passing of the 2008 Political Parties (Amendment) Bill in February 6, 2009, some amendments to the principal law (Political Parties Act, 1992) were proposed. Under the new law, a new Section (11A) to the principal legislation ostensibly allows registered parties to unite. However, in practice, the unity or alliance envisaged is fraught with unfair conditionality, including a requirement that leaders of the parties which unite should resign from all the political party positions they hold by virtue of being members of the alliance. xxxv. The legal sector reform programme has developed clear procedures for training, monitoring, evaluation and adjustment to ensure that progress is sustained in all aspects with a view to making the justice system more viable and accessible. The justice system has been assessed by various people, organizations and institutions. The common conclusion in these assessments is that the justice system lags behind the minimum standards and, therefore, necessary and sustained reforms are required to ensure that the justice system is fair and accessible to all. xxxvi. The fusion of the Executive and Parliament complicates the functioning of the doctrine of separation of powers in Tanzania. For example, Tanzania’s Constitution requires all cabinet ministers and deputy ministers to be appointed from among Members of Parliament. xxxvii. Generally, the Executive is well placed to widen its sphere of action because of its wide discretionary powers and the fact that it controls most of the resources needed by the other powers. The Executive also controls the coercive instruments of the state, thus it is possible for the Executive to take “ultra vires” actions without the other powers raising a finger. xxxviii. This involves the tendency by state agencies to ignore court orders or decisions of Parliament. This sometimes leads to contempt of court or contempt of Parliament but most significantly, it erodes the efficacy of the doctrine of checks and balances. For example, in the case of Happy George Washington Maeda v. Regional Prisons Officer, Arusha (High Court of Tanzania at Arusha, Miscellaneous Case No. 36 of 1979), the late Judge Mnzavas, J.K., ordered the release of the applicant from custody as both his arrest and detention were unlawful. However, on leaving the judge's chambers as a free man, the applicant was apprehended by police officers in civilian attire who were waiting for him outside the court. He was re-arrested and returned to custody. xxxix. It is the Parliament which enacts the Finance Bill or the budget of the Government. On the other hand, it is the Executive which controls the funds that have been endorsed by Parliament. The Judiciary keeps watch over any misuse of funds, giving orders over any financial disputes whenever invited to do so. Thus each has a stake in public funds and they sometimes clash over control and use of these funds. The fact that each branch checks on the others, this sometimes fuels a tug of war but is an important development. xl. Article 142 (5) of the Union Constitution states that the moneys for the salaries, pension and gratuity paid to justices of the Court of Appeal, judges of the High Court of the United Republic shall be a charge on the Consolidated Fund of the Government of the United Republic, meaning that the payment with the exception of allowances shall not be varied in a manner which is less beneficial to them (Article 142(3). However, the same arrangement is lacking for salaries of magistrates. This is a shortcoming. xli. While judges of the High Court and Justices of the Court of Appeal are immune from prosecution or litigation for acts or words said in performance of judicial duty, magistrates are protected from litigation for things done or said in the performance of their judicial duties only when the acts are done or words are said in “good faith”. While judges and Justices of Appeal cannot be removed from office unless it is recommended by a Commonwealth Judicial Board, magistrates can be removed from office by a Judicial Service Special Commission composed of members, the majority of whom are politicians and officers from the Executive. This does not augur well for the upholding of the concept of Independence of the Judiciary. While salaries of judges and Justices of Appeal are payable out of the Consolidated Fund thus ensuring security of remuneration for them, there is no security of remuneration for magistrates. These shortcomings need to be addressed. xlii. There have been cases where the Parliament enacts a law which is finally challenged in court and declared null and void for being inconsistent with the Constitution. Instead of appealing in court, the Executive rushes to the National Assembly to enact another law whose effects nullify the court decision. Since courts do not usually move on their own motion unless invited by an aggrieved person to review a certain law, such re-enacted law remains on the statute books even when they were obnoxious. An example is the case of Mtikila vs. Attorney General (High Court of Tanzania in Dodoma, Civil Case No. 5 of 1993). The applicant, among other things, challenged articles 39, 67 and 77 of the Constitution that required all candidates in elections to be members of and sponsored by political parties. In its judgment, the court declared that it shall be lawful for independent candidates, along with candidates sponsored by political parties, to contest presidential, parliamentary and local council elections. xliii. Instead of appealing to the Court of Appeal or just allowing private candidates to contest elections as directed by the High Court, the Government chose to table in Parliament a bill, Act No 34 (1994) that amended the Constitution to the effect that the ban against private candidates remained intact. Some analysts claim that the Parliament has powers where necessary to nullify any unreasonable Court decision. They refer to a decision which was made by the British Parliament in 1965. In that year, the British Parliament enacted a law to prevent the implementation of a decision by the House of Lords, the highest court in Britain xliv. Using Articles 20 and 21 of the Constitution, the Chairman of the Democratic Party (DP) Rev. Christopher Mtikila has for years challenged this restrictive law. It has to be noted that since 1992, there have been three major cases on independent candidates. In the first two cases, Rev. Christopher Mtikila v. the Attorney General (TLR 1995) and Rev. Christopher Mtikila v. the Attorney General (Misc. Civil cause No. 10 of 2005), the High Court ruled in favour of an independent candidate. However, in the third case, the Attorney General v. Rev. Christopher Mtikila (Civil Appeal No. 45 of 2009), the Court of Appeal of Tanzania on June 17, 2010, while subscribing to the need of independent candidates, it nullified the previous judgments by the High Court on the ground that the court had no jurisdiction in declaring a constitutional provision to be unconstitutional; and that the independent candidate issue being political and not legal should be resolved by the Parliament. xlv. Regarding promotion and protection of the right to health, Zanzibar has achieved tremendous success in malaria control. Currently malaria parasites prevalence rate in Zanzibar is estimated to be below 1 percent. Before the success of this programme, malaria was number one public health problem in Zanzibar. In 2003 for example, malaria accounted for 43 percent of all outpatient consultations and ranked first among diseases in terms of morbidity and mortality in health facilities. Malaria has recently declined from 34.3 percent (2006) to 10.8 (2008) of all hospitalized cases. However, the Anti-malaria program still faces challenges. xlvi. Tanzania Government has improved policy and legislative environment to strengthen public institutions for efficient and effective public service. This involves adoption of several Policies and Legislative measures including: a) Steps to have a policy and legislation (Executive Agencies Act No 30, 1997) in place for it to be able to establish executive agencies; b) Enactment of the Public Service Management and Employment Policy as well as the Public Service Act No.8 of 2002 both of which aim at the restoration of meritocratic principles in public service human resources management. The selection and promotion procedures for the civil service in Tanzania are in principle supposed to be based on merit; c) The enactment of the Medium Term Pay Policy, with two hallmarks, (i) defining medium term targets for enhancing salaries of priority professional cadres, and (ii) emphasizing rapid enhancement of pay for personnel with managerial, professional and technical skills and responsibilities to increase prospects for Government to compete in recruitment and retention of such personnel; d) The constitution of Tanzania contains provisions regarding finances of the United Republic. It stipulates the need to prepare estimates of Revenue and Expenditure of the Government on yearly basis and submit them to Parliament. The Parliament has the oversight role and the Government has to answer questions about its spending of tax payer’s money; e) The Public Procurement Act No.21 of 2004 (which repealed the Public Procurement Act 2001) provides rules, regulations and procedures for public procurement; f) The Local Government Finance Act No.9 of 1982 (as amended by Miscellaneous Act No. 6 of 1999) that stipulates the requirements and procedures to be followed by local government authorities in preparing annual estimates of revenues and expenditures was put in place. This aims at making sure that local government finances are well managed and that there is transparency in operations, and reporting; g) Government Circulars that come out from time to time. These are issued by the Government outlining regulations and procedures to be followed on budget, financial matters, recruitment, etc. and h) Reports of the Controller and Auditor General on Government finances are now made public. xlvii. Tanzania like many other countries has been fighting corruption since its independence. Several legal and institutional measures have been put in place to combat corruption. The National Anti-Corruption Strategy and Action Plan (NACSAP) and the Prevention and Combating Corruption Act, 2007 were adopted. Also international instruments for prevention and combating corruption such as the Southern Africa Development Community (SADC) Protocol Against Corruption, 2001; African Union Convention on Prevention and Combating Corruption, 2003; and United Nations Convention Against Corruption, 2003; of which Tanzania was among the signatories have been ratified by the Tanzanian Parliament. xlviii. The Government has been blamed for focusing its war largely on petty corruption cases while dragging its feet on grand corruption cases. However, considering the grand corruption cases under prosecution in particular looking at the manner in which the Parliament dealt with the Richmond ordeal, and recently the case of the former Bank of Tanzania Director of Personnel and Administration, Amatus Liyumba who was sentenced to two years in prison on May 24, 2010 after being convicted of abuse of office during the construction of the Bank of Tanzania’s ‘Twin Towers project’, for example, sends signals that the culture of impunity on grand corruption cases is giving way to accountable governance. xlix. From 1995 to 2011, a total of 47,283 corruption allegations were received, amongst them, a total of 934 public officials were punished administratively for corruption offences and 256 corrupt offenders have been convicted in courts since 1995 to January 2011. Furthermore, a total of 798 cases have been filed into courts since the Prevention and Combating of Corruption Act, 2007 became operational. Also, Tshs. 97.1 Billions have been recovered by PCCB from 1995 to January 2011. l. The anti-corruption provisions as contained in Part XLI of the Penal Act, No 6 of 2004 are not broad enough to cover the current aspects of corruption as envisaged by the International standard and laws of many other jurisdictions, including mainland Tanzania. li. Compared to men, women are placed in a secondary position in political status, access or influence. As a result, Tanzanian women like others all over the world are waging a struggle for equal access, influence and development. This struggle is waged at all levels, namely family, local, national, regional and international. At the international level, various international human rights instruments and conventions have been adopted aimed at promoting and protecting the rights of women. They include: a) The UN, Convention on the Political Rights of Women, 1952; b) The UN, Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), 1979; c) The UN, Declaration on the Elimination of Violence against Women1993; d) Beijing Declaration and Platform for Action, 1995; e) The UN Resolution on Women in Conflict, 2000; and f) The AU, Protocol to the African Charter on Human and People’s Rights on the Rights of Women in Africa, 2003. lii. The government of Tanzania has tried to a certain level to promote rights of women in the country. It has incorporated some legal provisions in different legislations that specifically protect the rights of women in various aspects such as against sexual abuse and other forms of violence as provided for under the Penal Code and the right to property under the Law of Marriage Act, the Land Act as well as the Village Land Act. liii. The extent of women’s involvement in various decision-making organs has considerably improved than previously. The Village Land Act, No.5 of 1999, for instance, seeks to enhance women participation in decision making over land issues by making it mandatory that women be represented in land committees at village and ward levels. Also, some notable progress has been made to increase the number of women in senior leadership positions in the Government. For instance, the number of women Cabinet ministers increased from 20 percent in 2004 to 26 percent in 2010 and the number of Women Permanent Secretaries increased from 21 percent in 2004 to 33 percent in 2010. liv. The Government of Tanzania has undertaken various efforts geared at mainstreaming gender in development policies and processes. The poverty reduction strategies have incorporated gender in some of their targets and outcome areas. In 2000, the Government revised the Women Development Policy of 1992 and charged the Ministry of Community Development, Gender and Children with the task of coordinating gender issues. Based on this, the Ministry developed a strategic plan on gender in 2006. lv. Tanzania’s commitment to the protection and promotion of the rights of children and young persons dates back to independence days. The decolonization struggle in Tanganyika and Zanzibar was not only for attaining self-determination but also was aimed at ending all forms of subjugation, exploitation and disrespect to the rights of Tanzanians, including the rights of children and young persons. On the eve of independence the political leadership identified three major development stumbling blocks namely; ignorance, poverty and disease, and waged serious struggles against the three mutually reinforcing enemies. As such, initiatives for removing the three development impediments addressed also the needs and rights of children and young persons. lvi. The governments of Tanzania and Zanzibar have made serious attempts to raise the consciousness of the people in respect to the fundamental human rights, including the rights of children and young persons. lvii. Tanzania has ratified almost all international conventions which govern the protection of the rights of children and young persons. The country is a state party to the CRC and its Optional Protocols as well as other internationally recognized conventions and instruments designed to facilitate the protection and promotion of the rights of the child and young persons. This is cogent proof of the commitment of the government of the URT and Zanzibar as well as the political leadership to promoting, protecting and enforcing respect to the rights of children and young persons. Both the URT and Zanzibar constitutions, to a great extent, guarantee the rights of the child and young persons. lviii. The governments of the URT and Zanzibar have several legislations which facilitate not only the implementation of the international conventions on the rights of children but also provide an elaborate legal framework for implementing the requirements of the conventions. The two governments have formulated a plethora of policies and created several specific institutions for implementing and safeguarding the rights of the child and young persons. To a great extent, the two governments have created space and conducive environment for the NGOs to complement efforts, hence attaining the most desired synergy in the endeavour to enhance respect, in deeds, to the rights of the child. lix. The Government-NGOs partnership in Tanzania and particularly in Zanzibar regarding the protection and promotion of the rights of the child is worth emulating by other countries. It seems plausible to point to one indisputable fact that the country has made very good progress in the promotion and protection of the children and young persons’ rights. Despite the success stories, there are a number of challenges and areas which the two governments need to address in order to make a difference and attain world class standards in enforcing and promoting the rights of the child and young persons. lx. With regard to refugee protection, even the system of protection put in place by international law through the 1951 UN Convention on the Status of Refugees and its 1967 Protocol is experiencing significant problems. This makes it unable to respond adequately to the refugee question worldwide. Major constraints in the system include: the design of the system itself which was intended to address a refugee question created by the World War II and the advent of the Cold War, growing lack of resources resulting from lack of commitment from countries party to the Convention, and a discriminatory tendency on handling refugees from different continents. lxi. However, it is noted that the question of refugee protection in Tanzania has not been adequately dealt with. Much as Tanzania has tried to implement the UN Convention on the Status of Refugees by enacting a specific law relating to refugees, it has not adequately been able to conform to some of the standards set out by the said Convention. 2.2 Economic Governance and Management lxii. Economic governance in Tanzania has to be seen within the context of overall improvement in governance. Tanzania’s ranking on good governance ranking has improved in recent years, with many indicators showing this HDI, 148/177 countries in 2010, up from 149/177 (UNDP 2008a); Ibrahim Index ranking Tanzania 15/48 countries in Africa and 1/5 countries in the EAC (www.moibrahimfoundation.org). It is worth mentioning that Tanzania qualified for MCC grant on August 19, 2006. lxiii. Assessment of the economic governance focused on the following objectives: a) Promotion of macroeconomic policies that support sustainable development; b) Implementation of transparent, predictable and credible government economic policies; c) Promotion of sound public finance management; d) The fight against corruption and money laundering; and e) Process of accelerating regional integration by participating in the harmonization of monetary, trade and investment policies. Mainland Tanzania lxiv. Signing, ratifying and adopting Standards and Codes is the mandate of the Union Government. As such, Zanzibar being part of United Republic of Tanzania is implementing and complying. Tanzania has adopted APRM Standards and Codes and is keenly implementing almost all of them. lxv. Results from the expert opinion survey (2008) show that in mainland Tanzania implementation of the Standards and Codes has been moderate – 38.2 percent of respondents (expert opinion). lxvi. The economy of mainland Tanzania exhibits typical characteristics of developing economies with a high poverty incidence (food poverty, 16.5 percent; basic needs poverty 33.3 percent in 2007 – URT 2008c) and needing greater attention to achieve all the Millennium Development Goals. lxvii. Macroeconomic and structural reforms implemented in recent years have resulted into strong macroeconomic performance and stability, characterized by sustained positive growth rate of the economy and low inflation. These achievements have been reflected in the steady rise in GDP growth as well as increase in Foreign Direct Investment. Real GDP growth rate in real terms increased from 6.7 percent in 2006 to 7.0 percent in 2010 with a dip to 6.0 percent in 2009 mainly due to Global Financial Crisis. Measures have included implementation of policies that support economic growth and private sector development; improvement in the planning process through participatory mechanisms; strengthening monitoring and evaluation; utilizing independent advice on macroeconomic outlook and integrating the principles of sustainable development as well as mainstreaming gender issues. lxviii. Despite the adequacy of these policies, Tanzania continues to face challenges with respect to overdependence on aid and effects of large aid inflows, capacity building for (macro) economic management and weak macro-micro link. Also, global economic slowdown and financial crises as well as rising oil and food prices are risks that threaten to undermine economic performance. The Government has put in place adequate policy strategies, including more prudent monetary and fiscal policies supported by government initiatives and improved domestic food production and availability in order to mitigate the risks. lxix. Survey results showed slight differences in perceptions between households and expert opinions. The areas of disagreement were with regard to employment and management of the economy. lxx. Government economic policies are greatly influenced by the macro economic situation. Credibility of policy will very much depend on the accuracy of outcomes (predictability). The “participatory” element that is emphasized all the way to the local government units (villages and mitaa or streets and shehia), and the feedback mechanisms that are supposed to work for the monitoring and evaluation and reporting (including improved accuracy in data collection and use) promotes transparency and credibility. lxxi. The closeness of macroeconomic projections to actual overtime shows increasing predictability and credibility of government economic policy. Attainment of the macroeconomic projections is rated to have been satisfactory in the period 1995 to 2008, at least from the rising trend in real GDP growth. lxxii. The challenges that remain revolve around there being multiple institutions that need to be coordinated in order to improve efficiency in revenue performance. Other possibilities for raising revenue collection include further streamlining of the tax exemptions and fiscal incentives designed to attract foreign investment and turning greater surveillance on non-tax revenues as well as tightening the taxation of the mining and other natural resources-based sub-sectors. Property tax and business formalization programme will make it possible for the tax base to expand as more and more business activities come out in the open. lxxiii. Generally, transparency, predictability and credibility of government economic policies are improving. The APRM survey results showed closeness of perceptions between households and experts. lxxiv. Economic difficulties (mainly structural) in the 1980s and the general thrust of economic reforms since mid 1980s shaped Tanzania’s current financial framework. Parliamentary legislations in the 1990s helped revamp and strengthen the financial system. Tanzania has, therefore, laid down the foundation of a stable and sustainable financial system as a result of macroeconomic stability. lxxv. The reforms resulted in a new landscape and new culture of doing business in the financial system. The positive outcomes of these reforms include growth in financial intermediation. The ratios of broad money, private sector credit to GDP, for example, rose by over 50 percent in the past five years (2003-2007). lxxvi. The positive effects of intermediation are also consistent with trends in the savings and capital formation ratios which also show improvement. A number of challenges, however, remain. These include extending financial services to the broad population (i.e. increasing the proportion of population with access to modern financial services – currently at less than 10 percent); increasing the depth and efficiency of the financial system in order to support economic growth; high lending rates, macroeconomic risks, stringent lending conditionality of commercial banks and largely undeveloped financial markets. lxxvii. Tanzania is positioned to overcome these challenges through legal and institutional reforms being implemented in order to remove the main obstacles to lending, deepening financial intermediation and further development of the financial system. These reforms are on-going in the “Second Generation Financial Sector Reforms”. lxxviii. Budget estimates are formulated in line with detailed macroeconomic forecasts, which are then approved by Parliament through passing the Appropriation Bill. The expenditure process is guided by Public Expenditure Review (PER) – currently – known as the Public Expenditure and Financial Accountability Review (PEFAR), a participatory process adopted during 1998/99, with the objective of monitoring the budget in terms of management, control and accountability in order to promote sound management of public finance. Both processes have very elaborate cycles. lxxix. The main reforms in public finance management implemented since 1990s include adoption of a Central Payment System (CPS) and the Integrated Financial Management System (IFMS) connecting all government ministries, Departments and independent Agencies (MDAs) and rolled out to all regions, in order to institute expenditure discipline lxxx. Quarterly budget execution reports are issued and the Controller and Auditor General (CAG) releases annual reports of expenditure for the different tiers of government. An “Expenditure Tracking Unit” has also been established, and all expenditures are authorized by Parliament only. lxxxi. Adherence to good governance and clean quarterly financial reports have been set as preconditions for Local Government Authorities (LGAs) to access Local Government Capital Development Grant issued by the central government to address weak revenue base of LGAs. Challenges to sound public finance management include insufficient capacity and absence of performance audit (apparently practised during earlier years of the reform, but abandoned in recent years due to “financial difficulties”). A general assessment shows that reforms are in place, though challenges related to aid dependency, local government reforms, and financial intermediations still need to be addressed. lxxxii. Survey results indicated the main areas of concern being effectiveness of government in controlling own expenditure (households) and encouragement of financial intermediation (experts). lxxxiii. Corruption is abuse of entrusted power for private gains (financial, material, non material). Corruption affects people’s livelihoods, is a disincentive to investments, drains scarce resources and diminishes a country’s prospects for development. Corruption is evident in both government and non governmental offices. Corruption is viewed as a vice and crime. For operational purposes corruption is categorized into grand (subverting significant aspects of the manner in which the state or market system works and hence reaping significant gains) and petty (mainly in service delivery systems such as health, education etc. The gains are meager, in some cases only to make ends meet). lxxxiv. In Tanzania the legal basis for preventing and combating corruption is embedded in the Constitution of the United Republic of Tanzania. The Parliament has passed a number of laws intended to combat corruption in Tanzania. lxxxv. Tanzania has also established a National Anti-Corruption Strategy and Action Plan (NACSAPI & II), which brings together a coalition of stakeholders (public/private) to combat corruption. In addition, there is a new Prevention and Combating of Corruption Act, 2007 which provides wider powers to investigate compared to the repealed law. It has also widened the scope of offences from four in the repealed law to 24 in the new Act. lxxxvi. Tanzania has implemented many programmes for combating corruption: strengthening the anti corruption bureau, increasing incentives to civil servants, increasing transparency as well as introducing competitive pressure. Positive developments in the war against corruption in Tanzania include the media being active in exposing and detailing cases of corruption; a Prime Minister and two Cabinet ministers resigning in 2008 due to being linked to corruption scandals as well as Members of Parliament being charged in court of law for alleged bribery to influence outcomes of elections. lxxxvii. Despite such signs of positive developments, more could be achieved if the following measures could be implemented: transparency in contracts of national interest, making PCCB answerable to an Independent Committee, observing accountability by professionals and stepping up awareness campaigns against corruption. In addition, attacking corruption from the variety of social artifacts (norms, values, culture, etc.), as well as raising the marginal cost (of being caught) and reducing the monopoly power of bureaucrats. Money laundering lxxxviii. Money laundering has become a major problem in the modern world. However, trans-national organized crime is a relatively recent phenomenon in Tanzania. lxxxix. Though the scale of money laundering has not been large in Tanzania, recent criminal activities related to corruption, trafficking in humans (within and across the country), drug trafficking and incidences of terrorist activities that are related to money laundering call for appropriate legislation and capacity building to deal with such incidences. The government sees the fight against financial crime as a part of Good Governance. xc. Tanzania’s evolving financial sector is still weak, relatively less sophisticated and therefore susceptible to manipulative machinations by corrupt and criminal elements. Some of the vulnerabilities that make Tanzania susceptible to money laundering include transactions done mainly in cash, the liberal policy on Foreign Direct Investments, absence of national identity cards, limited public awareness on the adverse impact of money laundering, etc. xci. The Financial Intelligence Unit (FIU), established by the Ati-Money Laundering Act 2006, is responsible for receiving, analysing and disseminating suspicious transaction reports and other information regarding potential money laundering or terrorist financing received from reporting persons and other sources from within and outside Tanzania. All banks are required to report suspicious transactions (e.g. large deposits that are followed with immediate withdrawals –the threshold is currently TZS 10 million). xcii. The major challenge that calls for capacity building is in Anti-Money Laundering and Combating Financing of Terrorism, Financial Crime Awareness and Prevention in order to keep abreast of increasingly more sophisticated techniques of the crime. Generally, measures are in place and challenges still remain especially in combating money laundering. Survey results showed the main area of concern to be effectiveness of measures. Households were of the opinion that the measures were not effective (61.3 percent of respondents). xciii. Though Tanzania has adequate policies and strategies for promotion of international trade, the country remains a marginal player globally. Prospects in regional integration, though, are promising. xciv. Tariff reduction remains a key aspect of Regional Trading Arrangements. Tanzania has implemented substantial trade reforms in the 1990s and first half of 2000s, resulting in substantial reduction in its tariff protection (more so for non agricultural products). There is ample room to gain from integration with respect to services and further reduction in non tariff measures. xcv. Even before the East African Community (EAC) and Southern African Development Community (SADC) protocols were signed in year 2000, Tanzania had made considerable gradual tariff simplification from 18 levels with rates ranging from 0 to 200 percent in the mid 1980s to seven ranging from 0 to 100 in 1988/89 and further to only four categories ranging from 0 to 25 percent (0, 10, 15 and 25). xcvi. Macroeconomic convergence is necessary to promote regional integration and accelerate the integration process. Tanzania had achieved most of the convergence criteria of both EAC and SADC blocks by 2006 except in budget deficit and current account balance. xcvii. The main challenges that Tanzania faces with respect to regional trade are unfavourable trade balance and multiple belonging to more than one integration scheme with each moving towards a customs union. xcviii. There are other challenges with respect to improving competitiveness. Current measures to address this challenge, such as capacity building, are in various stages of implementation. Competitiveness constraints were seen as the challenge to benefiting from regional integration. Survey results showed the measures by government to address regional imbalance in trade to be mildly effective (35.6 percent of respondents – highest opinion). Zanzibar xcix. Zanzibar comprises the main islands of Unguja and Pemba and a number of small isles, largely uninhabited. Development in general and economic management in particular is guided by a set of policy frameworks. c. The population of Zanzibar was estimated at 1.2 million in 2010. Based on the latest inter-census data the population growth rate is estimated at 3.1 percent. Zanzibar’s population has a higher proportion in the younger age groups than in the older age groups. The proportion of the population under the age of 15 is about 44 percent and the population in the age group 15-64 accounts for 49 percent of the total, with 7 percent being above 65 years. ci. The economy of Zanzibar exhibits typical characteristics of developing economies with a high poverty incidence (food poverty, 13 percent; basic needs poverty, 49 percent – RGZ 2006) and needing greater attention to achieve all the Millennium Development Goals. Efforts in the implementation of Standards and Codes cii. Tanzania has adopted APRM Standards and Codes and is keenly implementing them. Both the Mainland and Zanzibar are implementing and complying with respect to Standards and Codes. Survey results rated implementation as good or fair – 40 percent each (by experts). ciii. The Government of Zanzibar has taken many measures in terms of strategies and programmes to make the macroeconomic framework sound and supportive of sustainable development. Macroeconomic and structural reforms implemented since 1988 in order to restore major economic balances and liberalize the economy, have resulted into strong macroeconomic performance and stability characterized by sustained positive growth rate of the economy and low inflation rate. All these are positive achievements which have a great potential of addressing the poverty situation. The challenges faced include capacity building for (macro) economic management and weak macro-micro link. civ. The comprehensive national poverty reduction strategy, ZSGRP/MKUZA, has mainstreamed gender to target gender equity. In the three clusters of MKUZA, other cross-cutting issues have all been considered especially the environmental impact of major activities to be carried out by different sectors of the economy. All programs and projects in each cluster have considered gender, HIV/AIDS, employment creation and environmental issues. cv. Measures taken by the Government to promote private sector development include crafting the investment policy and creating investment promotion institutions, establishment of the Zanzibar Business Council as well as building a revolving fund for local investors, including an economic empowerment programme “AK” funds, officially launched on April 16, 2008 in order to attain economic growth and reduction of poverty (counterpart to “JK funds” in the Mainland). cvi. Challenges facing the private sector include: a) Limited international exposure on external markets (both input and output markets); b) Low international competitiveness; c) Low negotiation skills (with government and international actors); d) Low ICT exposure; and e) Inadequate funding. cvii. Unlike on mainland Tanzania, where there is a functioning national cooperative body, the Cooperative Union of Zanzibar (CUZA) as of to date is not functional body. There is limited cooperation among the cooperatives themselves, and inadequate and inappropriate support measures (in both regulatory and development areas). There is also non-execution of powers of the responsible Minister and the Registrar. This situation, therefore, calls for a comprehensive reform programme of the cooperative system in Zanzibar. cviii. The overall assessment is that measures are in place but the pace of reforms is slow. The APRM Survey results showed differences in perceptions between households and experts, the difference being in effectiveness of government measures in creating employment. cix. The Government is implementing core reforms in order to improve transparency, predictability and credibility of economic policies. The reforms include financial and economic management, good governance, and institutional and human resource reforms. cx. The Zanzibar Government has taken steps to make the macroeconomic framework sound and supportive of sustainable development. They include reviewing the Vision 2020; Restructuring the Planning Commission, Adopting a new Strategy for Growth and Reduction of Poverty, and Introducing a new Program Budget System to improve budget effectiveness. cxi. The achievements of outcomes in all the three clusters of ZSGRP are being facilitated by the core reforms. The desired outcomes of growth depend, to a large extent, on the implementation of financial management reform. cxii. A number of key measures have been taken in terms of legislation, policies and programs, institutional development and resource allocation to ensure the effective and transparent functioning of government economic policies. The measures include: involving private sector and civil society organizations in different forums; in the Budget Ceiling Committee and in preparing key policy documents, e.g., MKUZA, ZGS, and MKUZA costing exercise. Evidence of effectiveness and transparency is showing up: the private sector and civil society organizations participate at all times. cxiii. The Government of Zanzibar has established collaborative arrangements at sub-national authorities in implementing economic policies and programs. District authorities undertake activities related to different sectors at district and lower shehia levels. Activities at times are implemented through civil society organizations or recognized institutional arrangements (private or public). cxiv. Further measures to enhance predictability have included the following: a) Resource transfer to spending MDAs from the central fiscal authorities is managed by a system of monthly ceiling allocation of resources based on the available resources at the particular time. IFMS keeps track of allocation and timely utilization of the disbursed funds; b) National projects and programs are rarely abandoned. The only fact that can delay completion of a project is delay in financing the program from both local and external funding if the program/project is partly funded from outside sources, or is scheduled to another period for technical reasons; and c) Absorptive capacity is not high due to limited technical capacity from the implementing authorities. This is coupled with slow process in disbursing funds, reporting before getting next disbursement and inability to report on time. cxv. The challenges facing the country’s macroeconomic framework include: a) Low technical capacity to oversee and implement the programs indicated in the national policies; b) Low level of financial resources to effectively implement plans. The country currently meets less than 50 percent of what is required to implement its programs; and cxvi. The other challenges for Zanzibar include; reliance on a few sectors which are not sustainable, poor agricultural production methods, the sector dependent on by majority of the population, as well as limited capacity to collect data timely for use such as computing seasonal economic data. cxvii. Overall, measures are in place and improvements are being noted. The APRM survey results showed households- rating as “good” and experts rating as “low”. cxviii. The government has taken key measures in terms of legislation, policies, programs, and institutional development in order to promote domestic resources mobilization and deepen financial intermediation. These measures have led to improvement in tax effort. cxix. In terms of implementing a predictable fiscal framework, the measures taken include: a) Ensuring that MKUZA interventions are well mainstreamed with the MTEF of MDAs and that targets are met within a specified period of implementation; b) Connecting all MDAs to IFMS and requiring expenditure records to be reported on daily basis and ensuring that there is no misalignment of resource allocation; c) Installing an effective M&E system which can monitor physical and financial performance of the national policies and programs; and d) Ensuring that MDAs do not exceed what is allocated to them based on the allocation from Budget frame proposed to and approved by the House of Representatives (HoR). As one of the achievements, projections have closely matched out turns especially after 2005/06. cxx. The main challenges faced include low investment portfolio and low level of technical know how on the operation and analysis of finance data and information. The government is addressing these challenges through mobilizing both local and foreign investors and has embarked on training programmes to improve performance on financial data analysis. cxxi. Under the Local Government Reform Programme, decentralization is part of public finance management. Currently decentralization is implemented through district authorities. The process is less effective in that officers at district level still receive directives from main sector offices (headquarters), thus weakening coordination and unified development of the district. cxxii. Further, capacity of sub-national authorities to generate and manage fiscal resources; and plan and implement economic policies is limited. In addition, limited capacity in manpower and other resources for undertaking responsibilities and activities at sub- national levels, and close proximity of district centres to the headquarters, making the need to have a fully fledged decentralization system unviable, thus limiting effectiveness of decentralization. This calls for a design of a viable decentralization system which suits Zanzibar, a small island economy. cxxiii. The general assessment is that many measures are in place, some are still being set; and the situation is improving. Survey results showed that the main area of concern is effectiveness of government in controlling expenditure (households rated it as poor). cxxiv. There are concerns about the level of corruption in government and private institutions in Zanzibar. The issues commonly raised about corruption in Zanzibar revolve around: a) Increasing incidences of corruption in private and public sectors; b) Financial mismanagement of public funds; and c) Poor investigation and prosecution capacity in corruption cases. cxxv. The legal basis for preventing and combating corruption is embedded in the Constitution of the United Republic of Tanzania. Corruption is considered as vice and crime in Zanzibar. Zanzibar has its own anti-corruption measures. It does not have a specific law on corruption matters but the Penal Decree, Act No. 6 of 2004, contains relevant provisions. This law came in operation after major amendments on August 16, 2004. Part ten of the law, which is comprised of section 76 to 91 is titled as “Corruption, Abuse of Office and Other Economic Offences”. Section 76 creates an offence of corruption. cxxvi. Zanzibar does not have a specific legislation on money laundering; though some provisions of the Penal Decree, Act No. 6 of 2004 are resembling those of the Mainland’s Anti-Money Laundering Act, 2007, for example, Section 76 (2) of the Penal Decree. The supervisory role of the Bank of Tanzania on the financial system covers Zanzibar (Central Banking is a Union matter). As such, the Bank’s Circular Number 8 on Money Laundering applies to Zanzibar as well. cxxvii. The main area of concern as revealed by the APRM survey results was effectiveness of measures by government to fight corruption. About 52.7 percent of households rated the measures as not effective; while 40 percent of experts rated the effectiveness as fair. cxxviii. Tanzania being a United Republic of formally two sovereign states, namely Tanganyika and Zanzibar faces unique challenges in the EAC as well as other regional arrangements. Tanzania has joined the EAC as one member state. Zanzibar as part of the URT, takes part in the EAC meetings of the protocols under the umbrella of the URT. On specific issues of Zanzibar interest, an arrangement is there for the parties (URT Government and the Zanzibar Government) to sit and resolve their concerns and set up arrangements on how to present their case in the EAC. Examples of such cases include the differing laws on land and Zanzibar Investment Promotion Agency (ZIPA) where a compromise could be created after a joint discussion between the parties. cxxix. Given the structural nature of the Tanzanian state a systematic mechanism of bargaining and compromise between the Union Government and the Zanzibar Government is needed to resolve most of the issues relating to specific interests of Zanzibar particularly those which are non-union. cxxx. Zanzibar has continued to face trade deficit with both the Mainland and the rest of the world. Import cover rates are low and declining in recent years, from 22.7 percent in 2003 to 16.4 percent in 2007 while trade deficit to GDP ratio has been at around 20 percent. cxxxi. Zanzibar is strategically located (geographically) to benefit from international trade (historic as well). The full potential has not been exploited. The challenges to fully benefit from competitive export trade include ensuring that high quality goods are produced to meet export market standards, developing the legal framework and strategic plan to implement the Trade Policy and export strategy and develop domestic capacity to produce and supply high quality products and services. Other challenges include low capacity of the Zanzibar Airport and Malindi Port. cxxxii. The full potential of Zanzibar in regional integration has not been realized despite strategic location - geographical and historic. Survey results showed the effectiveness of measures to address trade imbalance to be mildly effective (40.0 percent of respondents, highest score). 2.3 Corporate Governance cxxxiii. The assessment and evaluation of corporate governance in Tanzania has focused on: a) the adequacy of policies, legal provisions and regulatory instruments in enabling corporations to conduct their businesses efficiently and effectively; b) the adequacy of oversight mechanisms to ensure that corporations comply with national and international operational standards and best practices; c) ensuring that corporations are managed in accountable and transparent manner; d) ensuring that corporations are in compliance with the set national and international operational standards, codes and principles and; e) Ensuring that corporations behave as responsible citizens with regard to their legal obligations, social responsibilities, human rights and sustainable environment. cxxxiv. Tanzania has embarked on various institutional, policy, legal and regulatory reforms to enable the private sector play its expected leading role in the economy. The adoption of policies and regulations is also one of the several steps towards an ideal corporate good governance practice. However, the enforcement of the policies, laws and regulations for ideal corporate governance is still weak to a large extent, in areas such as labour laws, human rights and sustainable environmental management. cxxxv. Tanzania has provided generous investment incentives to foreign and local investors who have sometimes abused them. It is common for investors to stay for five years without paying significant taxes simply by manipulating tax-related investor related incentives. They can play around with the loopholes to make unjustifiable profits and to avoid substantial amounts of tax dues. cxxxvi. Tanzania is signatory to several international conventions and agreements. Tanzanian institutions like the Tanzania Bureau of Standards (TBS), the National Board of Auditors and Accountants (NBAA), the Bank of Tanzania, the Tanzania Food and Drugs Authority (TFDA), the Confederation of Tanzanian Industries (CTI) and Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), are expected to be playing an oversight role to ensure acceptable levels of corporate governance. There is a big variance between the mere existence of such institutions and their effectiveness to ensure good practice. A systematic enforcement of the regulations as instruments under the authority of these institutions to ensure good practice remains a weak area requiring a critical examination. cxxxvii. Enforcement is most often marred by corruption, collusion, conflict of interest, but especially the low capacity on the part of these institutions. The Fair Competition Commission, TCI, TPA, TBS, TFDA, etc., cannot effectively track all substandard and counterfeit imports which increasingly get dumped into the Tanzanian markets. The mass media has on several moments exposed counterfeit products, some of which have been impounded and destroyed by authorities such as the Fair Competition Commission and the TFDA. cxxxviii. On whether corporate entities behave as responsible citizens with regard to their legal obligations, social responsibilities, human rights and sustainable development, there were mixed results. On the one hand, some companies have assisted the neighboring communities to construct schools and health facilities in pursuit of their social responsibilities. A question still remains on knowing the ratio of what is given to the communities compared to profits and other gains made by the “donating companies”. cxxxix. Tanzania is a signatory to several conventions concerning labour relations and rights. In trying to ratify the conventions, mainland Tanzania enacted the 2004 Employment and Labour Regulation Act (ELRA) and for Zanzibar, Employment Act No 11, (2005) and Labour Relations Act No 1 of (2005). However, the enforcement of ELRA in some companies has become a thorn in the eye. For instance, the Tanganyika Planting Company (TPC), a sugar plantation with a huge sugar manufacturing factory, has had long standing labour disputes. In addition, some private companies in Kilimanjaro and Morogoro lacked transparency on labour relations and environmental management issues. The reasons behind the lack of transparency were not established. However, such situations are a good ground to doubt the existence of an appropriate corporate governance practice. cxl. Tanzania largely subscribes to good practice and standards such as the International Standards Organization (ISO), the International Standards on Auditing (ISA), the International Accounting Standards (IAS) and the International Financial Reporting Standards (IFRS). The National Board of Auditors and Accountants (NBAA), creates and adapts auditing and accounting standards. We therefore have in place the Tanzania Accounting Standards. Tanzania also subscribes to, and has adopted, the Basel I and II Codes and Standards, as well as those of the OECD. cxli. There exists a significant gap between adoption, ratification and the implementation of the observance of the standards and codes in the area of corporate governance in Tanzania. Implementation and enforcement are unsystematic; and are hardly evaluated because of, among other factors, the low capacity of standards and codes enforcement bodies such as the NBAA, the Bank of Tanzania, the Insurance Supervision Directorate and the respective professional organizations. cxlii. Corporation executives are hardly accountable for operational and consequential negative actions on the societies which surround them, especially in the area of environmental pollution. The internal company accountability relations are hardly verifiable because they are mostly fire-walled by secrecy. Little or nothing significant is known about management behaviour and accountability observance in many of the companies visited during the APRM Survey. What they call company secrets and sifted information release by the corporations’ spokespersons may be leaving out sensitive but very important information against good corporate governance standards. 2.4 Socio-Economic Development cxliii. Tanzania has signed/ratified/adopted most of the international standards and codes specifically aimed at promoting socio-economic development. They cover a wide spectrum of issues, from human rights to the interrelationships that exist between growth, sustainable development and the environment. These include: a) The Convention on the Rights of the Child; b) The World Conference on Human Rights; c) The International Conference on Population and Development; d) The World Summit on Human Development; e) The Fourth World Conference on Women; f) The United Nations Conference on Environment and Development (UNCED); g) The Right to Development in the African Charter and Human and People's Right's including the Protocol on the Right of Women in Africa; h) The African Charter for Popular Participation in Development; i) The African Charter on the Rights and Welfare of the Child; j) The World Summit on Sustainable Development; k) The World Summit on Social Development Plan of Action; l) The Convention on the Elimination of All Forms of Discrimination against Women; m) United Nations Convention on the Rights of Persons with Disabilities, 2006; n) ILO Convention Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, 2000; and; o) African Court on Human and Peoples Rights. etc. cxliv. However, the review shows that more efforts are required to accelerate the ratification of the standards and Codes and domesticate them within existing Tanzania regulations and operational framework. cxlv. The government has also made significant progress towards the implementation of a number of these codes. For example, in accordance with the goals of the World Summit for Sustainable Development, the Government has made important strides in implementing poverty reduction strategies with an increased share of public expenditure in the social sector, especially towards basic education and provision of health services. The Government has also adopted policy, legal and regulatory frameworks to domesticate some of these codes. cxlvi. However, there is a general inadequacy of awareness of some standards in the area of socio-economic development. This is particularly due to the fact that all the codes and standards are not yet translated into Kiswahili (the national language). Similarly, the ratification status of some could not be ascertained from implementing institutions and other official sources. The process of translating and domesticating the standards and codes into local laws is being pursued in a number of cases. The Government has also taken measures to establish institutions, such as The Commission for Human Rights and Good Governance (CHRGG), to promote the achievements of the objectives of the codes and standards. The concern which remains is that some implementing agencies are not well informed about the status of the treaties. More efforts are therefore required to domesticate the frameworks so as to be effectively complied with. cxlvii. The sustainability of any development strategy depends heavily on the extent to which the formulation of the strategy itself has involved the people mostly affected by it. To some extent, it depends on the level and sources of funding. At the national level, a wide range of stakeholders have been involved in policy formulation i.e. in formulating Vision 2025 and subsequent policies and strategies including the National Poverty Eradication Strategy (NPES); and National Strategy for Growth and Reduction of Poverty (NSGRP), commonly known by its Kiswahili acronym MKUKUTA. Stakeholder involvement has also been adopted in the designing and implementation of sectoral programmes (PEDP, SEDP, etc). The consultative processes in developing national development strategies involved a wide range of stakeholders, including Members of Parliament, representatives of political parties, leaders of various religious denominations, women and youth organisations, private sector, farmers, professional associations, and ordinary Tanzanians. Results of the APRM Survey show that a majority of Tanzanians from both Mainland and Zanzibar participate in government processes. cxlviii. Since the initiation of the Opportunities and Obstacles to Development (O&OD) in 2002, planning of development projects at community level has been in line with community needs. Under this arrangement, communities identify their priority projects and they plan for the budget and the modalities of funding. The involvement of communities in the planning process is part of the implementation of the Local Government Reforms. cxlix. A number of measures have been taken to sustain ownership of development programmes, including training in monitoring and evaluation. Local Government Authorities qualify for Capital Development Grants if they meet criteria indicating a certain level of capacity. Funds are made available in order to build capacity for financial management at local level. Also funds going to lower levels of government through sectoral programmes (e.g. PEDP) also have capacity building components for the oversight committees. Monitoring and evaluation is also part and parcel of ensuring that the projects implemented by communities are sustainable. Within this context, councils have to ensure that all projects are implemented according to agreed norms and standards. At the end of the year, an assessment is done in every council to ensure that implementation followed agreed standards and was accomplished in a timely manner. cl. The Government budget has been increasing in nominal terms from both internal and external sources. Foreign resources constitute between 34 percent of the budget in F/Y 2010/2011. Allocations of recurrent expenditure are much higher than those of development expenditures. However, the rate of increase of the latter has been faster than that of the former. Analysis of development expenditure shows that by far the largest share is financed from external sources. This undermines self-sustaining development. cli. The country’s debt stock as a proportion of GDP is high, averaging 88 percent for the period between 2000/01 and 2005/06. However, trends show slight improvement overtime. The debt stock to GDP ratio decreased from 98.8 percent in 2000/01 to 69.6 percent in 2005/06- however, largely, as a result of debt relief, rather than economic performance. On the other hand, the total external debt service ratio to exports has averaged 5.5 percent for the period between 2000/01 and 2005/06. What this ratio tells us is that the country on average pays 5.5 percent of its export earnings in external debt servicing annually. The trend shows that there has been improvement overtime from 9.4 percent of the export earnings in 2000/01 to 3.0 percent in 2005/06. More efforts in export performance would further reduce this ratio and hence increase the allocation of the country’s export earnings for domestic development. clii. Since the late 1990s, accelerating socio-economic development has been guided by key policy documents, notably: the Tanzania Development Vision 2025; the Local Government Reform Programme (LGRP); the National Poverty Eradication Strategy (NPES); the Poverty Reduction Strategy Paper (PSRP); Rural Development Policy (RDP); and the National Strategy for Growth and Reduction of Poverty (NSGRP/MKUKUTA). Generally, the policy framework is consistent with the aim of achieving sustainable development and poverty reduction. On the other hand, socio-economic development is not only a matter of policy. Good policies are necessary - but not necessarily a sufficient condition for development. cliii. The outcome-based approach adopted particularly with the NSGRP brings to the fore issues of cross-sector collaboration, inter-linkages and synergies in achieving priority outcomes. The key local actors implementing the various policies and strategies towards achieving sustainable development and poverty reduction include central government ministries and local government authorities, independent departments and agencies, private sector, Civil Society Organizations and Communities. Parliament plays an oversight role in the implementation process. Likewise, Development Partners play a supportive role. cliv. On the legal front, reform of the country’s legal sector to sufficiently support social and economic change has not taken place at the same pace as economic reforms. A substantial body of laws was fashioned for a centrally-planned economy and therefore cannot be efficacious in a competitive market system. With globalization, regionalization and technological advances, new demands are placed on the economy and the conduct of its agents, creating the need for a more conducive environment for competitiveness. clv. Central government expenditure increased from 16 percent of GDP in 1998/99 to 26 percent in 2004/05. The allocation of expenditure was guided by the Poverty Reduction Strategy. This continues to be the case under MKUKUTA. However, estimates of the costs of achieving the outcomes and targets of MKUKUTA suggest that they by far exceed currently available resources. There are shortages of qualified health personnel and secondary school teachers. Financing has been provided both by foreign aid inflows and domestic revenue. The assumption has been that the marginal cost of these sources of financing is relatively low. Implicitly, the cost of domestic borrowing and foreign, non-concessional borrowing is considered to be high and thus excluded from the financing package. clvi. Evidently, Tanzania has embarked on extensive initiatives to accelerate socioeconomic development. However, these initiatives have often suffered from a number of weaknesses that have limited their effectiveness in achieving their goals. clvii. A number of challenges need to be addressed in order to ensure that economic policy making is able to support and sustain high economic growth and to react appropriately to the evolution of the domestic and international economy. The focus of economic policy from 1995 was primarily on macro-economic stabilization and creating a conducive environment to attract foreign investments and more recently on poverty reduction. In addition, economic management has been fragmented among a variety of institutions which creates inadequate coordination of policy formulation and implementation. There is currently the need for greater focus on economic growth; need for strengthening private sector institutions and redefining the government–private sector relationship, and need for strengthening the capacity of institutions at the regional and district levels. clviii. As for the policy outcomes, the analysis reveals that although growth appears to have increased steadily since 1993, its slow trajectory, however, is a concern. Sectoral growth has been slow with slight fluctuations, but there has been structural change. Trends in macroeconomic indicators provide a mixed picture. Inflation rates, fiscal deficits, and the trade balance have suffered since 2002/03. In addition, while there has been an increase in credit to the private sector, it remains limited to a small number of firms and a large portion of bank liquidity is invested in government securities. The spread between lending and savings rates although narrower than previous years, continues to be high, reflecting a continuation of the high cost of borrowing from commercial banks and low incentives for those saving. clix. Strategies for ensuring basic provision of social services for all - notably health, education, water and sanitation - and controlling the spread of HIV and AIDS and other communicable diseases are recognized to be critical inputs towards improving livelihoods and promoting equitable growth and development. Improved service delivery is also the overriding objective of the country’s major reform programmes: the Local Government Reform Programme, the Public Sector Reform Programme, the Public Financial Management Reform Programme and the Legal Sector Reform Programme. Other sector reform programmes, such as the Health Sector Reform, Primary Education Development Plan (PEDP, 2002-2006) and the Secondary Education Development Plan (SEDP) started in 2004, target improvement of service delivery directly. clx. The national response to HIV and AIDS is delineated in the five year National Multisectoral Strategic Framework on HIV and AIDS 2003-2007 (NMSF) - which has high donor support, global and bilateral, focused initiatives, and policy and strategic support. Despite strategic plans covering all sectors, there has been limited progress in actually mounting a multisectoral effort to address the pandemic. The bulk of the funding to tackle HIV and AIDS goes to the health sector, and there is evidence of progress in slowing down the rate of new infections and protecting the 85-90 per cent of HIV free people in the community. HIV prevalence rates have fallen in the past few years. However, there remain concerns about the overwhelming influence of external financing for HIV and AIDS programmes. Weak national systems, conflicting priorities, inadequate coordination and capacities at community level have led to gaps in the implementation of HIV and AIDS interventions. clxi. Overall, available data show positive trends in the education sector. There is an overall increase in primary and secondary school enrolment, the percentage of pupils passing the Primary School Leavers’ Examination and transiting to secondary schools, and recent improvements in pupil-teacher ratios in primary schools. Despite these achievements, the quality of education remains a concern and it is growing because of the extra strain resulting from the rapidly increased enrolment, especially in secondary schools. The delivery of education is faced with problems of inadequate teaching and learning materials; and shortage of teachers and teachers’ houses. There are also limited opportunities for vocational and technical training and higher learning. clxii. Regarding health, remarkable strides have been made in improving child health – a significant decline in infant and under-five mortality and some improvement in nutritional status. There is also encouraging evidence that strategies to prevent and control malaria are bearing fruit. Nonetheless, the burden of diseases is still very high. The health system is under staffed and the HIV and AIDS epidemic is exerting more demand on an already over-stretched system. Despite a network of primary health facilities, accessibility to health care is still inadequate, and the quality of care delivered is, by and large, sub-standard for various reasons – poor referral systems, inadequately skilled workforce, insufficient medical equipment and supplies, and shortage of medicines. The cost of services is also a critical problem. Attention needs to be focused on the persistently high maternal and newborn morbidity and mortality rates. The recently designed Primary Health Sector Development Programme (PHSDP), 2007-2012, seeks to address some of the dominant constraints facing the health system. Overall, rural areas and the poor remain disadvantaged both in terms of outcomes and service uptake. clxiii. Currently, budgetary requirements for the social sector are large and Tanzania is hugely dependent on external support to finance health and education, and especially HIV and AIDS, which raises concerns regarding sustainability. The human resource shortage particularly in the health sector is undermining the capacity of government and non-governmental health providers alike to deliver quality services. Overall, a budget allocation to the health sector has increased in absolute terms from Tsh. 787.2bn in 2009/10 to Tsh. 1,205.9bn in 2010/11. clxiv. Some progress in governance is evident, and significant strides have been made in the areas of fiscal decentralization, human resource decentralization and legal harmonisation issues. The formula-based allocation of recurrent grant funds to LGAs for education and health sectors are now fully operational. But there is still a long way to go in terms of information about public income and expenditure at local level - what financing and supplies are being provided for schools, health and other services, and where they are going. The main challenge of the Decentralization by Devolution process is indeed to ensure that the devolution of activities is matched with an appropriate transfer of human and financial resources. Inadequate attention has been paid to capacitate the ‘demand’ side of service delivery by making sure that users are informed of their rights and obligations and are enabled to exercise their rights through holding the government and service providers accountable and ensuring effective use of resources. clxv. Water and sanitation were one of the priority sectors in the PRSP, focusing on rural water supply through rehabilitation and construction of water schemes. Since then sector allocations have grown consistently although more funds are still needed in order to meet the targets. Tanzania adopted a new Water Policy in 2002. Since then the sector has engaged in progressive reforms aiming to create structures and programmes that will guide the sector to meet both the medium and long term targets. These include development and costing of the Water Sector Development Programme (WSDP) and Strategy and revision of the principal water legislation. clxvi. The National Water Policy 2002 identifies as one priority, access to water for low income groups who live largely in rural areas. Historically urban water supply has received more resources than rural water supply. Budget allocations from both local and foreign funds reflect this fact and human capacity is also concentrated in urban authorities. A combination of these factors has resulted in better coverage figures in urban areas; coverage figures shows national coverage for urban dwellers is 85 percent and for rural dwellers 42 percent. In view of the service gap between rural and urban areas, the Government has started to raise the allocation for rural water supplies substantially. clxvii. Tanzania has high access rates to household sanitation facilities hovering between 83-97 percent for both urban and rural areas. However, availability of public toilets is extremely low in Dar es Salaam (17.5 percent), other urban areas (19.7 percent) and in rural communities (15 percent) and more efforts are needed in this area especially in increasingly urbanising areas overall 14 percent of households in Tanzania have no toilet facility. In-depth analysis indicates that over half of the latrines used are temporary and therefore if the quality of latrine is considered, coverage figures would be much lower. There is inadequate coordination of various institutions involved in planning and delivering sanitation services. Sanitation has often been considered to be an individual household/family responsibility, and subsequently tends to be severely under-funded in sector investment programmes. Budget allocations for software interventions are also minimal, a trend which needs to be reversed. clxviii. Electricity coverage countrywide is very low. Use of domestic electricity is almost exclusively for urban dwellers. It is estimated that only 10 percent of urban population have access to electricity compared to less than 2 percent for rural population. Of the 20 districts with high degree of access to electricity only 2 are rural districts; Mwanga and Hai. Even in Dar es Salaam where access is highest, less than 50 percent of households are connected to electricity supply. This has been a result of many factors including lack of financial strength for the expansion of the national grid; absence of policy, regulatory and financing mechanisms for alternative off-grid alternatives, and the relatively high costs of service provision. Aware of these challenges, the Government of Tanzania has redefined its energy access policy. The latest National Energy Policy of 2003 takes into consideration the need to reform the market for energy services and establish an adequate institutional framework, which facilitates investments and expansion of services. Rural electrification initiatives include the establishment of the Rural Energy Board (REB), Rural Energy Agency (REA), and Rural Energy Fund (REF) to be responsible for promotion of improved modern energy services in the rural areas of mainland Tanzania and through the Fund to provide grants and subsidies to developers of rural energy projects to stimulate increased provision of modern energy services in rural areas. The sector is also moving towards diversification of energy from over reliance on hydro to gas, solar, coal and wind to allow reliable generation of power. clxix. Financial sector reforms have aimed at gradually establishing more open credit markets, achieving flexible liberal interest rates and enhancing financial intermediation. These reforms led to the Banking and Financial Institutions Act of 1991 and 2006, Cooperative Society Acts of 1991 and 2003 which paved way for establishment of SACCOS, and the Bank of Tanzania Act of 1995. The National Micro-finance Policy, 2000 was formulated to establish a basis for the evolution of an efficient and effective micro financial system in the country that serves the low-income segment of society, and thereby contribute to economic growth and poverty reduction. clxx. The government has also initiated independent programmes that have aimed at ensuring access to finance to disadvantaged communities, including the Rural Financial Services Programme (2002); Small Entrepreneurs Loan Facility (2000); and the Tanzania Social Action Fund (2000 and 2005). Despite these efforts, there are still a number of impediments to financial markets. These include low levels of financial literacy; poverty as a barrier where rural dwellers are generally poorer than their urban counterparts; and poorly developed infrastructure especially roads, communications, electricity, transportation and the like. The combination of these barriers lead to lower participation and poor financial accessibility; increased transaction costs per monetary unit of financial intermediation; increased risks for any financial institution attempting to serve rural clients. Formal financial institutions largely avoid serving rural areas and the financial services which are available are provided by informal agents or mechanisms which offer a narrow range of financial services to limited customers. The APRM survey reported that 71 percent of respondents from the mainland perceived difficulties in accessing credit, while 29 percent felt that they could access credit. Responses were the same for both male and female respondents. There was a substantial difference between urban and rural respondents; while only 24 percent of rural respondents reported access to credit, the percentage of urban respondents was double that (48 percent). In the same survey 25 percent of respondents reported that they had access to a bank. clxxi. Measures to liberalise trade were taken in the early 1980s to improve access to markets. The National Trade Policy (2003) aims to stimulate trade development by establishing improved physical market- place infrastructure and stimulating dissemination of market information and increasing access to the market. A more recent initiative by Government to improve access to markets is the Agricultural Marketing Systems Development Programme initiated in 2005. This has four components namely Agricultural Marketing Policy Development; Producer Empowerment and Market Linkages; Financial Market Support Services; and Rural Market Infrastructure. Tanzania has also participated in a number of international trade agreements and negotiations in both multilateral and regional frameworks, and established Export Processing Zones (EPZs). Yet trade performance remains rather limited. clxxii. Access to ICT is supported by the National ICT Policy of 2003. Tanzania has made remarkable progress in deploying ICT in a liberalised market. The Tanzania Communications Regulatory Authority (TCRA) was established by Act no. 12 of 2003 as an independent Authority for postal, broadcasting and electronic communications industries in Tanzania. Statistics reveal that growth of this sector has been very impressive. As of March 2008, about 9.5 millions Tanzanians had access to telephone services. Mobile telecommunication leads the market; 98 percent of telephone subscribers use mobile services compared to 2 percent with fixed line services, by March 2009 there were 14 million subscribers to voice telecom services. The annual number of telephone subscribers is growing at an average rate of 47 percent. The number of radio and TV stations in Tanzania increased from 14 and 10 in 2000 to 47 and 29 in 2006 respectively. The majority of the radio stations are district based. For example, out of 47 radio stations in 2006, 35 were district based - 17 commercial and 18 non commercial. clxxiii. The overall framework for legal and human rights for women and men is the Constitution (1977) and the Bill of Rights (1984). The Constitution of Tanzania states that all persons are born equal and are entitled to recognition and respect, and the 13th amendment of the Constitution, Article 13(4) clearly states that no person shall be discriminated against on the basis of gender. Tanzania has made positive steps in providing a legal and policy framework for promoting gender equality. Several laws have been revised and new ones enacted, including the Employment and Labour Relations Act, 2004, Land Act (4) 1999 and its revision in 2004, Village Land Act No.5 of 1999 which gives women rights to land just as men and the Sexual Offenses (Special Provisions) Act (SOSPA) of 1998. The Government is also in the process of revising other laws, for example, laws of inheritance. clxxiv. In 2000 the Government revised and approved the National Women and Gender Policy 2000. The Ministry of Community Development, Women Affairs and Children was thereafter renamed the Ministry of Community Development, Gender and Children (MCDGC) in 2002, signifying a change of focus from a strategy of women in development to one of gender and development. Gender Focal Points have been established in every ministry, department and agency of government to facilitate mainstreaming of gender in all Government undertakings. Most assessments show that the results are largely positive especially in education and training, access to microfinance, representation in decision making positions, etc. clxxv. Despite positive developments, substantial challenges still remain. Assessments show that men and women are not fully utilizing the opportunities of favorable legal and policy frameworks. In spite of much greater awareness of gender mainstreaming within the government machinery, the practice of mainstreaming is still inadequate in most MDAs due to both capacity and structural constraints. The major challenge remains that of changing mindsets - social transformation of gender relations and women’s empowerment. Men and women, often fail to exercise their rights due to lack of awareness of their legal rights, structural and financial constraints, and inadequate support from local institutions. Economic empowerment of women remains the biggest challenge in both the formal (especially private) and informal sector. clxxvi. The legal and policy framework strongly supports the role of all stakeholders to play a decisive role in matters of development. The Constitution strongly emphasizes people’s participation, and this has further been amplified by local government laws and various guidelines issued by the ministry responsible for local government. The Local Government Laws of 1982 put in place mechanisms for people’s participation in important socio-political and economic decisions affecting their lives. Most of the policies which guide socio economic development provide participatory space for the people. The Policy of Decentralization by Devolution (D by D) states that local governments will be holistic (i.e. multi-sectoral, government units with a legal status) operating on the basis of discretionary, but general powers under the legal framework constituted by the national legislation. Under D by D, the people are empowered to make decisions. The roles of the various stakeholders at the Council and sub-district levels are clearly defined. clxxvii. Decentralization of government involves political, financial and administrative areas. Political decentralisation is devolution of powers and the setting of the rules for councils and committees, the chairpersons, etc., including the integration of previously centralised service sectors into a holistic local government system installing councils as the most important local, political body within its jurisdiction. Financial decentralisation is based on principles of financial discretionary powers of local councils (i.e. powers to levy local taxes and the obligation of central government to supply local governments with adequate unconditional grants and other forms of grants). The principles also allow local councils to pass their own budgets reflecting their own priorities, as well as to incur mandatory expenditures required for the attainment of national standards. Administrative decentralisation involves de-linking local authority staff from their respective ministries and establishing procedures for a local payroll. Local governments will thus have and recruit their own personnel, organised in a way decided by their respective councils in order to improve service delivery. Administrative decentralisation makes local government staff accountable to local councils. clxxviii. Participation in programme preparation at national level is growing stronger as the capacity of stakeholders is strengthened. In particular, organisations of civil society are more actively involved than had been the case previously. Participation has been characterised by involvement in consultations, special review workshops open to all stakeholders, the formation of committees and technical working groups which work on programme implementation and monitoring. . clxxix. The field survey by APRM clearly indicates that some progress has been made in involving communities in planning, budgeting and implementation of plans and monitoring and evaluation. On the issue of involvement in planning, in rural and urban areas, respectively 38 percent and 24 percent of respondents reported participation. Concerning participation in budget preparation, respective percentages for rural and urban respondents were 24 percent and 10 percent. As regards participation in implementation of plans, 37 percent and 25 percent reported positively, and 27 percent and 19 percent reported they had participated in monitoring and evaluation. An interesting aspect of these results is that rural respondents reported higher rates of participation than those in urban areas. The survey results also showed that more men participated in planning, budgeting, implementation of plans and monitoring and evaluation compared to women, which may be reflective of social/cultural practices which discourage women from active public engagement. clxxx. Experts who were interviewed for the survey also indicated that communities are encouraged to participate in planning. Just over 10 percent of them indicated that communities are highly encouraged to participate, 32 percent said communities are considerably encouraged and 42 percent said they were encouraged to a fair extent. clxxxi. Participation in programmes such as education, health, water, construction and energy was reported to be high. When the answers with average to high involvement are combined, then participation in education was reported by 93 percent of respondents in both rural and urban respondents; participation in health was reported by 64 percent and 69 percent of rural and urban respondents respectively; in water services for rural and urban areas it was 50 percent and 69 percent respectively; in road construction for rural and urban areas it was 51 percent and 72 percent respectively. For energy services it was 10 percent and 78 percent for rural and urban areas respectively which also attests to the low percentage of the population with electricity services in rural (2 percent) and in urban areas (10 percent). clxxxii. From a gender perspective, on the average, more women indicated participation in programmes than men. In education it was 93 percent and 92 percent for men and women respectively in rural areas, and 89 percent and 92 percent for men and women respectively in urban areas. For health services, it was 63 percent and 68 percent for men and women respectively in rural areas, and 70 percent and 68 percent for men and women respectively in urban areas. For water service it was 49 percent and 52 percent for men and women respectively in rural areas while in urban areas it was 65 percent and 72 percent for men and women respectively. clxxxiii. The APRM survey results may reflect both efforts in mobilising communities and the greater interest of members of the public in those services which are of more direct benefit to them. The major challenge that remains is having communities participate in more general planning, budgeting, implementation and controlling processes of their local governments. clxxxiv. Challenges to such participation include the concentration of power and resources at more central levels of government which undermines participation at lower levels; the limited engagement of councils in proper planning and oversight; the multiplicity of funding sources for local government spending and the complexity and burdens on reporting which are involved; the uncertainty and irregularity of receipt of funds for planned activities; weak accountability mechanisms; and decisions at sub district level being overruled by officials at council, PMO-RALG and Ministry of Finance and Economic Affairs levels. Best Practices clxxxv. The African Peer Review Mechanism aims at monitoring progress in governance and good practices in four thematic areas; viz Democracy and Political Governance, Economic Governance and Management, Corporate Governance and Socio-economic Development with a view to identifying governance gaps and best practices. Below is a summary of some of the identified best practices in governance in Tanzania. Democracy and Political Governance Constitutional Entrenchment of Government of National Unity • The entrenchment of power-sharing arrangements in the form of Government of National Unity (GNU) has been an innovative approach to end the long standing political conflict in Zanzibar where the society was politically and socially polarized from the colonial era, the polarization which survived after independence and further revived and intensified following the introduction of multiparty politics in 1992. Under the new constitutional arrangement, the party which wins the presidency in Zanzibar is required to form government in collaboration with the party or parties which have representation in the House of Representatives. The party which takes the second position in the election gets the post of the First Vice President and ministerial portfolios are distributed in proportion to the share of seats in the House of Representatives. This arrangement significantly reduces the political stakes involved in elections in a situation whereby electoral political competition was a zero-sum-game and a matter of life -and –death among the two main contending political forces on the Islands; Institutionalization of Referendum in Zanzibar • In January 2010 the Zanzibar House of Representatives passed the Referendum Act. No. 6 of 2010. In Zanzibar’s political history no referendum had ever been held before. Major decisions with far-reaching implications were made without involving the people through a referendum vote. By enacting this legislation Zanzibar has broadened the avenues for direct popular participation in determining the destiny of its people. Zanzibaris can now demand direct participation in making major decisions, instead of surrendering that power to their elected representatives in the legislative body; • Tanzania has harmonious relations with neighbours. Tanzania has not been involved in interstate conflicts with its neighbours; • Generally, Tanzania has ratified core instruments that guarantee civil, political social, economic and cultural rights. It has established a Commission for Human Rights and Good Governance which has so far performed well. The Election Expenses Act No. 6 of 2010 • Tanzania has become one of the first countries in Africa to enact a specific piece of legislation to regulate the role of money in electoral politics. The role of money in politics has become one of the formidable challenges of democracy and public accountability in the developing world. The Election Expenses Act No. 6 of 2010 demands for the disclosure of all sources of funds during elections; it demands financial accountability and transparency by political parties and candidates and puts ceilings of the amount of funds to be used as election expenses. The enforcement of the Act was met with several systemic and institutional constraints during the 2010 General Elections, which provided the first test for its effectiveness. On the whole, the legislation served a useful purpose as an instrument of deterrence. • Tanzania ratified the Worst Forms of Child Labour Convention in 2001. It is one of the three countries in the world carrying out the Time Bound Programme for elimination of the worst forms of child labour; • Tanzania has played a big role in resolving conflicts of neighbouring countries e.g. Burundi, Rwanda and Kenya; • Tanzania has been a leading country in Africa in hosting many refugees; • Tanzania has improved policy and legislative environment to strengthen public institutions for efficient and effective public service e.g., i. Executive Agencies creation; ii. Public Service Act no. 8, 2004; and iii. Public Procurement Act 2001. • Tanzania has put in place several measures in fighting corruption e.g., i. National Anti-corruption Strategy and Action Plan (NACSAP), PCCB; ii. It has ratified international instruments for prevention and combating of corruption; iii. Now deals with grand corruption like Richmond case, EPA etc; and iv. It has enacted laws aimed at combating corruption and enhancing good governance in the country. • Tanzania has implemented a policy of decentralization within the government which aims at improving service delivery e.g. it has created executive agencies. • The law in Tanzania (Legal Aid Criminal Proceedings Act of 1969) provides for free legal aid to persons accused of criminal offences, especially capital offences such as murder and treason. There are also many NGOs providing legal aid to the indigent e.g., Women Legal Aid Centre, TAWLA, LHRC. This is an effort to make legal services accessible to all. • Tanzania is committed to promotion and protection of Rights of the Child and Young Persons. i. Raised consciousness among people on fundamental human rights including rights of children and young persons; ii. Ratified almost all international conventions which govern the protection of the Rights of the child and young persons; iii. The constitution guarantees Rights of the child and young persons; and iv. Government has created space and conducive environment for NGOs to complement efforts to enhance respect for the rights of the child. • The usage of one language of Kiswahili throughout Tanzania which has more than one hundred and twenty tribes using their different vernaculars has built trust and confidence among the communities, hence paving way for peace, security and solidarity. • Tanzania has relatively enjoyed strong leadership internally and is internationally respected which has also significantly contributed to peace and unity. Tanzania Mainland witnessed one unsuccessful army mutiny in 1964 as opposed to fashionable military coups which were experienced by other African countries in the 1960s and 1970s. This of course is relatively different from what has been experienced in Zanzibar. • Tanzania championed the campaign for a New International Economic Order against stringent conditions of the World Financial Institutions including the World Bank and the International Monetary Fund (IFM). This is still a valid agenda to date. • The country managed to pave an amicable and peaceful transition from single party politics to multiparty politics different from what was experienced by neighbouring countries and other African countries. With an exception of Zanzibar, the country has been able to hold four peaceful multiparty elections. However more efforts should be made to ensure the autonomy of the electoral bodies and the review of Political Parties Act of 1992 leading to transparent, free and fair elections. • Institutionalization of smooth transfer of powers of the Presidency since 1985 by enacting a law providing for only two terms presidency of five years each. • Liberation of Frontline states, including Mozambique, Zimbabwe, Namibia, Angola, etc. • Creation of viable sub-district level structures. • Zanzibar has made tremendous success in controlling malaria. Zanzibar has been able to bring the disease under control. This has been due to the strong commitment by the Government of Zanzibar and generous assistance by external partners. The lesson learned and challenges ahead for Zanzibar Provide a case study for other African Countries. Economic Governance and Management • Tanzania’s good governance ranking globally has improved in recent years to 148/177 in 2010 from 149/177 in 2008. • Tanzania has initiated several macroeconomic and structural reforms which have resulted into strong macroeconomic performance and stability (sustained growth rate, low inflation, improvement in foreign reserve position) e.g. Local Government Reform Programme, Land Policy, and Micro-Finance Policy. SME Policy, MKUZA, MKUKUTA. • It is also implementing policies which support economic growth of the Private Sector Development and improvement in planning process through participatory mechanism e.g. The Budget Process and Public Expenditure Review, Public Expenditure and Financial Accountability Review (PEFAR). • Efforts have been made in the fight against money laundering. Established the Financial Intelligence Unit (FIU), BoT Circular no. 8, Zanzibar Penal Decree, Act No. 6 of 2004. • Management of global financial crisis: early Government efforts to stave off adverse effects. The Government responded through various measures, as put forward in the Report. • Transparency of Audit Reports - Controller and Auditor Generals Reports are widely shared, and accessible to a larger section of population. • Establishment of women’s bank and establishment of business councils in all levels (Regions, Districts). • Private Sector Participation - establishment of Public-Private Policy in November 2009 and enactment of the Public-Private Partnership Act. No. 19 of 2010 as well as the related Regulations. Public – Private Partnership (PPP) is well practised in mainland Tanzania at least at the National level. Private institutions such as TCCIA and TNBC are actively and democratically well engaged. The President of the United Republic of Tanzania is the Chairman of Tanzania National Business Council (TNBC). It is strongly advised that such an active engagement should be practised at the grass-root level. There is a similar institution known as Zanzibar Business Council which coordinates PPP dialogue. • MKUKUTA and MKUZA: the thrust of poverty reduction focus balances high economic growth and substantial poverty reduction. • Establishment of Tanzania Joint Assistance Strategy: the Joint Assistance Strategy for Tanzania (JAST) upholds the objective of providing a framework for partnership and strengthening donor coordination, harmonization, partnerships, national ownership in the development process and procedures for making aid more effective and simpler to manage. • Time Use module of NBS, establishing the cost of care, and its linkage to macro level economic performance, builds a case for more resources to services benefiting communities, gender and women equality empowerment. Corporate Governance • Tanzania has taken steps to enhance corporate business development in the country by putting in place appropriate legal and regulatory environment e.g. It has established institutions such as Tanzania Bureau of Standards, FCC, CMSA, WMA, TRA, etc. • Tanzania has ratified various conventions which aim at creating an enabling environment for corporations to operate and protect workers’ rights at work places e.g. OECD/Commonwealth Principles of Corporate Governance, ILO Conventions. • There is a legal framework that protects communities against poor environmental management by corporations (Environmental Management Act 2004). Tanzania has: i. put in place an effective framework with specified rights and obligations of a company, its directors, shareholders and other stakeholders; ii. developed good corporate governance principles by using the services of professional and industry associations; iii. promoted high quality financial disclosure requirements and proper ownership structures; iv. enhanced the effectiveness of supervisory bodies such as NEMC; and v. built capacity in corporate governance through training and educational programmes at the level of directors, senior managers, financial regulations with a view to improving the performance of SMEs e.g. CFAA, PEPA, PEFAR, Private Sector Foundation, BEST Program etc. Socio-Economic Development • Tanzania has acceded to various international instruments which enhance the rights of women, children and people with disabilities, including: i. Convention on Elimination of all forms of Discrimination Against Women (1979); ii. The African Charter on the Rights and Welfare of the Child (2001); iii. Beijing Declaration and Platform for Action (1995); and iv. United Nations Convention on the Rights of Persons with Disabilities (2006). • Tanzania has taken measures to ensure broad-based participation in the formulation of policies and strategies, e.g., MKUKUTA/MKUZA, PEDEP; etc. • Tanzania is implementing various reforms aimed at sustainable development and poverty reduction within the framework of Vision 2025 and 2020 of Zanzibar Local Government Reform Programme (LGRP), NPES, PSRP, RDP (Rural Development Policy) MKUKUTA NSGRP/MKUZA; • Since 1990s a number of enabling policies and strategies have been adopted to ensure provision of basic social services. (Health, Education, Water, Combating the HIV-AIDS pandemic). The indicators on education, health and HIV show that progress is being made e.g. school enrolment and child mortality; • The Tanzania Social Action Fund (TASAF), initiated in 2000, is another approach that involves communities in identifying their own development needs using participatory approaches and the implementation of identified interventions. Several sub-projects have been implemented under the TASAF initiative in both mainland Tanzania and Zanzibar. TASAF funds complement LGAs effort and stimulate participation of local communities in planning and executing their development projects because it directly addresses locally identified priority projects; • Gender Responsive Budgeting (GRB) which Tanzania had embarked on is worth mentioning as a best practice of government initiatives for promoting gender equality objectives through equitable allocating of national resources. GRB is about ensuring that government budgets, policies and programs that underlie them address the needs and interests of individuals that belong to different social groups. Thus, GRB looks at biases that can arise because a person is male or female, but at the same time considers disadvantage suffered as a result of ethnicity, caste, class or poverty status, location and age. 5.0 Identified Governance Gaps Identified gaps under the four thematic areas are: Democracy and Political Governance • The union question – discontent from both sides of the Union in matters of the structure and sharing of resources; • Low levels of understanding of the workings of the Government of National Unity by the some political parties and government functionaries; • Conflicts related to structure of governance; • Refugees and internally displaced persons; • Land disputes; • Conflicts between local people and foreign investors; • Tendency by government to disregard verdicts made by the Commission for Human Rights and Good Governance; • Low level of awareness on available conflict resolution mechanisms, on how they function and the cost of employing them; • Constitutional restrictions in realization of basic rights; • difficult for ordinary citizens to press for justice; • The Commission for Human Rights and Good Governance is constrained in many ways in promoting and protecting human rights; • Police Force not adequately exercising impartiality in dealing with political parties and electoral process; • Inadequate enforcement of the Election Expenses Act. No. 6 of 2010; • Inadequate ability to forge political alliances constrains association by political parties; • Electoral Commissions (NEC & ZEC) not adequately independent; • Restrictive legal provisions with respect to freedom of associations; • Newspaper Act of 1976 contains many restrictions on the freedom of the press; • tendency by the Parliament and the Executive to limit the courts powers • Likely abuse of discretionary powers by the Executive; • Courts’ decisions are sometimes rendered invalid by the Government through Parliament by amending the constitution or legislation to maintain the unconstitutional laws and virtually the status quo; • Growing mob justice significant threat to rule of law; • Limitations on Human Rights in the Bill of Rights; • Catalogue of the Bill of rights not adequately conforming to international instruments of human rights; • The bill of rights in the constitution does not adequately include social, economic and cultural rights; • Vesting the original jurisdiction on human rights violation in the High Court of Tanzania seriously impedes accessibility to justice by victims; • Fusion of Executive and Parliament complicates the functioning of the doctrine of separation of powers; • Relatively excessive Powers of the Executive; • Inadequate compliance with the Principles of Separation of Powers; • Shortcomings in Implementation of the Concept of Independence of the Judiciary; • Low productivity in the public service institutions compared to the expenditure levels; • Low levels of accountability due to corruption, embezzlement and negligence. • Some Public service staff difficult to change mindset; • Limited sense of ownership to MDAs; • Reform was not linked adequately to generating movement and change in the entire government machinery; • Slow adoption and implementation of the public service reform in Zanzibar so as to improve public service delivery; • Reforms not fully owned by government; • The positioning of the PCCB under the Presidency without legal limitations of the powers of the president to its operations may subject the PCCB to undue political interference or control; • Low awareness of the citizenry to demand for government accountability; • Weak demand side for accountability; • Low capacity of Civil Society Organizations to raise awareness of the citizenry; • Affirmative action for empowerment of women limited to elective positions only; • Low participation of women in political party leadership due to limited internal party democracy; • Ineffective mechanism to enforce social protection measures ie waiver, exemptions and insurance schemes, particularly in rural areas; • Inadequate incentives for teachers especially in the rural areas; • Increased dropout rate of students; • Increased rate of failures in secondary school exams; • Some of the International conventions which Tanzania has acceded to and ratified have not been adequately incorporated into domestic legislation; • Promotion and Protection of the rights of the child and young persons have limited coordination and mainstreaming; • Strategies for creating public awareness, especially to the adults toys and law enforcement organs on the rights of the child experience low level of implementation;
• Corporal punishment in schools (including faith based schools) is still persistent;
• Policy on the care of the Most Vulnerable Children and Orphans not comprehensive enough;
• Refugee rights are not fully adhered to;
• Guidelines to deal with internally displaced persons are not fully in place; and
• Access to rights of people with disabilities is not adequately taken care of.

Economic Governance and Management
Identified Governance Gaps:
• Some International Standards and Codes not yet ratified/domesticated;
• External debts;
• High Level of poverty in Zanzibar;
• Registrar of Cooperatives has too much power;
• Inadequate capacity for macroeconomic management;
• Weak macro-micro link;
• Poor link between economic growth and poverty reduction;
• Gender differences in income;
• Challenges in institutionalizing of Public Expenditure Tracking Surveys (PETS);
• Loopholes in the tax regime which give investors in the Extractive Industry opportunities for manipulation and avoiding declaring taxable income;
• Informal sector that hinder collection of tax revenue from the said sector;
• High youth unemployment rates;
• Inadequate access to Social Security;
• Poor Agricultural production and marketing;
• Poor performance of the industrial sector;
• Inadequate involvement of stakeholders in the planning and execution of plans;
• Inadequate capacity for data collection, analysis and management;
• In implementing D by D only funds were sent to LGAs and not personnel;
• Activities of PPA do not target private sector;
• Implementation of MDAs Procurement Plans not effectively monitored;
• Poor performance in revenue collection;
• Existence of multiple institutions that need to be coordinated in order to improve efficiency in revenue performance;
• Inadequate capacity of local government officials to develop and execute local plans and budgets;
• Insufficient capacity of LGAs to generate revenue for undertaking development and recurrent programmes;
• Narrow tax base rendering LGAs unable to meet a larger part of their recurrent and development expenditures;
• Too much dependence of LGAs on central government for resources affects governance;
• Ineffective expenditure control by MDAs and LGAs;
• Weak distinction at the local level between central government administration and LGAs at the level of implementation, as a result there is tendency of central government to interfere with the operations of LGAs;
• Weak transparency and accountability on local government revenues;
• Weak planning in accordance with MKUKUTA and MKUZA by LGAs;
• Inadequacy of in-depth and efficient financial system to support economic growth;
• High cost of borrowing and stringent conditionality of commercial banks;
• Undeveloped financial markets;
• Low saving rates;
• Limited access to modern financial services by the broad population;
• Inadequate capacity to manage funds at regional and ministry levels;
• Misallocation of funds at central Government level;
• Weak regional and international collaboration in coordinating regulations and oversight of cross boarder financial institutions;
• Lack of a national financial crisis management plan;
• Delay in implementation of projects and programmes due to cumbersome donor procedures;
• Weak transparency in contracts of national interests;
• Limited awareness on the adverse impact of corruption and money laundering;
• Inadequate accountability by public servants;
• Too much monopoly power of public servants;
• Growing problem of Money laundering and drug trafficking;
• PCCB not adequately independent;
• Excessive use of cash transactions make Tanzania vulnerable and susceptible to money laundering;
• Policy on Foreign Direct Investments (FDIs) too liberal;
• Increase of illegal immigrants largely due to absence of national identity cards;
• Inadequate capacity to manage immigration;
• Too many exemptions in the mining sector;
• Tanzania’s poor competitiveness (mostly persistent trade deficit) in regional trade;
• Multiple membership in regional organizations with potential inherent conflict of interests;
• Inadequate sensitization and involvement of the population;
• Slow integration of the economies;
• Inadequate e-commerce application;
• Low level of financial resources to effectively implement plans (country meets less than 50 percent of requirements);
• Lack of a comprehensive reform programme for cooperatives in Zanzibar;
• Low ICT capacity;
• Limited adherence to recruitment and appointment procedures in place;
• Poor and limited responsive educational system;
• Collapse of industries, focus mainly on tourism;
• Challenge in implementation of MTEF due to lack of common understanding of the utility of this mechanism;

• Constraints facing the office of the Chief Government Statistician (OCGS) in terms of collecting, compiling and computing projections statistics;
• Macroeconomic model (financial and economic) does not sufficiently address the forecasting of future outcome of the economy;
• Challenges facing the Office of the Auditor and Controller General (OCAG) including; limited capacity of staff, limited budget, equipment as well as decent working place;
• Public outcry on non implementation of OCAG recommendations;
• LGSR lagging behind due to, inadequate resources, poor capacity in HR and technical expertise, poor institutional building and legal framework;
• Low technical capacity to oversee and implement programmes indicated in the national policies;
• Low level of financial resources to effectively implement plans;
• Low level of accountability;
• Inadequate capacity to formulate policies particularly in dealing with foreign investors;
• Lack of a viable decentralization system which suits Zanzibar, a small island economy;
• Lack of PPRA in Zanzibar;
• Low investment portfolio;
• High cost of borrowing;
• Low level of technical knowhow on the operation and analysis of financial data and information;
• Limited capacity in human resources and other resources for undertaking responsibilities and activities at sub national levels;
• Close proximity of district centres to headquarters making the need to have a fully decentralized system unviable;
• Lack of harmonization of systems/issues of corruption between Mainland and Zanzibar;
• Low quality exports produced for export market;
• Legal framework and strategic plan to implement trade policy and export strategy not sufficiently established and developed;
• Domestic capacity to produce and supply high quality products and services not well developed;
• Limited international exposure on external markets for the local private sector;
• Low international competitiveness;
• Low negotiating skills with international actors.

Corporate Governance
Identified Gaps:
• A sizeable number of standards and codes have not yet been ratified. People are not aware of the standards and codes that have been ratified by the government, Development and adaptation of national standards to international standards not reached;
• Lack of policy on participation of private corporations in economic activities in Zanzibar;
• Lack of Law to guide activities of corporate entities in Zanzibar;
• Most business institutions are still at infancy stage. Lack of an M&E Framework for monitoring business environment;
• Multiplicity of licencing authorities in Zanzibar;
• Too much discretionary powers on tax assessors in Zanzibar;
• Inadequacy of transparency on tax procedures;
• Corruption due to overlap of activities and duplication of functions among agencies dealing with corruption;
• Cumbersome procedure of applying for credit;
• Small and weak economic infrastructure;
• An institutionalized and systematic enforcement capacity not well built;
• Culture of observing the set standards not well developed;
• Limited well built scientific capacity to develop, operationalise standard tools in conformity with global standard setting organizations such as the World Trade Organizations (WTO), the Organization for Economic Cooperation and Development (OECD) and International Standards Organization (ISO) ;
• Inadequate compliance with IAS;
• Inadequate institutional mechanism to achieve full compliance with International Accounting Standards (IAS) ;
• Growing problem of tax evasion among the business community;
• Inadequate dialogue between the private and public sectors;
• Weak dialogue between government, employers and trade unions;
• Employees are paid wages lower than the statutory minimum;
• Non-compliance by employers with disciplinary procedures;
• Limited awareness by employees on their rights and knowledge of the labour laws and regulations;
• Reluctance of some employers to recognize trade unions at workplaces;
• There has not been an agreed statutory requirement on provision of corporate social responsibility;
• Pending cases of compensation to villagers on land taken for mining activities;
• Inadequate awareness of people and corporations on environmental laws;
• A number of convention s on environment have not been ratified and domesticated;
• Limited capacity to implement comprehensive strategy on domestication of conventions;
• Weak institutional capacity for implementation of EMA 2004;
• The technology and equipment used by the mining companies pollute the environment and adversely affects the local people;
• There is more capital flight by Foreign Direct Investment (FDIs) than retention to invest on the local markets;
• Corruption still rampant despite efforts to build ethical corporate behavior;
• Weak implementation of the laws protecting stakeholders e.g. as stated in the Companies Act 2002, Environmental Management Act, 2004.

Socio-Economic Development

• A sizeable number of standards and codes have not yet been ratified;
• Not many people are aware of the standards and codes that have been ratified by the Government;
• Development expenditure is by far financed from external sources. This undermines self sustaining development, poor prioritization and mismanagement of external funds;
• Imports outweigh exports;
• Inadequate capacity for development planning;
• Shortage of human resources at all levels;
• Inadequate awareness by the people on the programmes that are implemented by the Government;
• Economic management is fragmented among a variety of institutions which create lack of coordination of policy;
• The Government allocates larger budget to recurrent expenditure than to the Development Expenditure;
• Poor credit access to SMEs;
• Poor agricultural production;
• Reform of legal sector lags behind the economic sector, some laws of centrally planned economy still in place;
• Growing problem of unemployment among the youth on mainland Tanzania and Zanzibar;
• Inadequate capacity of ministries, departments, agencies and local authorities to implement review policies;
• Weak coordination between sectors (ministries and local authorities);
• POPC not, empowered by law to supervise planning process and its implementation;
• Inadequate capacity of POPC to discharge its duties;
• Quality of education remains a concern. The delivery of education is constrained by problems of inadequate teaching and learning materials and shortage of teachers and teachers’ houses;
• Limited access to health services;
• Weak regulations on establishment of private universities in Zanzibar as a result it is not easy to guarantee quality;
• Inadequate reliable data for planning purposes in the LGAs;
• Inadequate funds in MDAs and LGAs for implementing development plans;
• Limited awareness on HIV and AIDS to the public;
• Limited interest of people to undergo HIV and AIDS testing;
• Limited coverage of Prevention of Mother to Child (PMTC);
• Only a few people infected with HIV and AIDS receive anti retroviral drugs;
• Funding of HIV and AIDS depends largely on donor funds;
• No strict control on importation of ARVs resulting into entry of poor quality drugs;
• Limited provision of supportive medicine for those using ARVs;
• Under Tanzanian laws children and those below the age of 18 are not allowed to know their HIV and AIDS status. This contravenes human rights;
• CD4/T-Cells Test is not always modern, in most cases it results in errors in HIV and AIDS testing;
• The extent of tuberculosis problem in Tanzania is not known;
• Low awareness on tuberculosis/leprosy;
• Inadequate tuberculosis diagnostic services;
• Inadequate diagnostic services at the lower level health facilities;
• Inadequate intervention on tuberculosis and leprosy;
• Low awareness on the causes of malaria;
• Growing problem of Malaria and spreading all over the country;
• Limited capacity of service providers to provide improved social services delivery;
• Minimum involvement of the private sector in service delivery;
• Weak regulatory mechanisms of SACCOS;
• Inadequate capacity of public and private sector employees in ICT use;
• Inadequate management capacity of SACCOS members to manage resources;
• Limited private sector investments in social services delivery;
• Rural communities face shortage of funds for financing agricultural production;
• Poor accessibility to loans due to lack of collateral;
• Growing problem of people constructing houses in unsurveyed areas;
• Growing problem of land compensation due to weak land planning;
• Insuffient electricity generation compared to demand;
• Low electricity coverage;
• Poor accessibility to financial services especially in rural areas;
• The cost of building materials is very high hindering construction of descent houses;
• Growing problem of land grabbing and land disputes in both Mainland Tanzania and Zanzibar;
• Inadequate use of proper sanitation among the public and in schools;
• The practice of gender mainstreaming is still inadequate in most MDAs due to both capacity and structural constraints;
• Inadequate participation of women in development activities;
• challenge of changing mindsets on social transformation of gender relations and women empowerment;
• The legal system has not been sufficiently able to override regressive customary practices which favors men;
• Prevalence of gender violence (for both men and women) and genital mutilations;
• Inadequate capacity for planning and utilization of available resources;
• limited engagement of councils in proper planning oversight;
• Few women participate in planning, budget preparation, plan implementation and monitoring and evaluation;
• Few people participate in planning, budget preparation, plan implementation, and monitoring and evaluation;
• The complexity and burdens of reporting;
• Weak downward links of accountability between Ward Development Councils and Village Assemblies. In strict legal senses, Village Assemblies are supposed to be supreme bodies, but it is practised differently;
• Disbursement procedure of funds is cumbersome and disbursement plans are not regularly followed;
• CSOs registration in Zanzibar is centralized thus making it difficult to carry out new registrations;
• Some districts are not using O&OD planning methodology.

5.0 Proposed actions to address the identified gaps

Democracy and Political Governance
• Enact Union Constitution;
• Create awareness on workings of GNU to low level government and party functionaries;
• Introduce National ID system;
• Activate Inter Boarder Committees;
• Fast track case resolutions involving land disputes;
• Mount awareness campaigns on conflict resolution mechanisms;
• Establish a New Constitutional Court;
• Mount awareness raising programmes to police commanders to enhance freedom of holding political party meetings and rallies;
• Enhance community policing;
• Institute mechanism for enforcement of the Elections Expenses Act;
• Review Elections Act – URT;
• Review Elections Act – Zanzibar;
• Review Political Parties Act;
• Enact Freedom of Information Act;
• Enhance the functions of the Commission for Human Rights and Good Governance by providing it with Facilities and adequate budgets;
• Recruit lawyers, Judges, Magistrates and General Administrative personnel;
• Increase court rooms at District Level;
• Simplify and translate Criminal Procedures Act, Penal Code and Evidence Act into Kiswahili;
• Provide compulsory legal aid for civil cases;
• Insulate members of Parliament from the Executive arm;
• Improve usage of Party whip to abolish misuse;
• Train public officers and civil servants on implementation of public service reform in Zanzibar;
• Develop mechanisms to enhance communication and dialogue among public office holders and civil servants in Zanzibar;
• Improve participation of actors in the formulation, implementation and evaluation of reforms;
• Establish and implement Local Government Reform Programme;
• Train media practitioners on effective methods of exposing vices that are barrier to good governance;
• Mainstream NACSAP II into MDAs and LGAs;
• Conduct civic and voters education to eliminate corruption during elections;
• Separate authority to appoint and dismiss the Chief Executive of PCCB and Ethics Commission;
• Mainstream Gender in MDAs, LGAs Private sector, CSOs, FBOs, CBOs; etc.
• Strengthen the gender focal points;
• Domesticate women rights conventions;
• Develop implementation strategies for implementation of conventions;
• Review inheritance laws to include women rights;
• Enforce inheritance laws;
• Empower women to contest in political and technical spheres through education and training, affirmative action and advocacy campaigns;
• Provide effective regulation to enhance education quality;
• Provide adequate learning and teaching facilities including books;
• Train quality teachers;
• Improve working conditions of teachers;
• Maintain effective data base on children and young persons including those with disabilities;
• Institute enforcement of policies, laws and regulations;
• Review corporal punishment;
• Institutionalize the rights of vulnerable groups including internally displaced persons, refugees and persons with disabilities;
• Enactment of Law on protecting the rights of Albinos;
• Raise awareness on rights of vulnerable groups including internally displaced persons and refugees;
• Maintain effective database on vulnerable groups including internally displaced persons and refugees;
• Review policies and laws on internally displaced persons and refugees;
• Assess compatibility of Pastoralism with development trends, land laws and determine viable alternatives;
• Create awareness on land policies and laws to pastoralists and other stakeholders;
• Provide education on the concept of albinism and their rights to the public primary and secondary schools and higher learning Institutions;
• Raise awareness to the public to do away with the belief that old age is associated with witchcraft, superstition, and magic;
• Enhance provision of security system in Primary Schools, Secondary Schools and Higher Learning Institutions in order to protect lives of Albinos and other students;
• Enhance provision of improved health and education services to Albinos and other people living with disabilities;
• Provide entrepreneurship training and credit facilities to Albinos and other people living with disabilities;
• Increase number of representatives of special groups in the Union Parliament, House of Representatives and other decision making bodies and establish a democratic system of election;
• Establish courts to fast track cases related to violation of the rights of Albinos including Albino killings and raping cases of female with mental disorders;
• Introduce special education programmes for the disabled in all teachers colleges and education institutes;
• Translate laws and policies related to special groups into Kiswahili for easy understanding;
• Enforce the Disabilities Act to ensure all public and private physical infrastructures are designed and constructed in a way that is user friendly to people living with disabilities;
• Increase effort of fighting against the usage of marijuana (bhang) and other illicit drugs.

Economic Governance and Management

• Identify and ratify outstanding standards and codes
• Domesticate and create more awareness on standards and codes;
• Strengthen national debt management;
• Review and harmonise land policies between mainland and Zanzibar;
• Review Cooperatives Act with a view to streamline Powers of Registrar;
• Build capacity for macroeconomic management;
• Improve macro-micro link;
• Improve implementation of MKUKUTA and MKUZA;
• Enhance funding for microfinance projects owned by women;
• Institutionalize the use of PETS results;
• Review and enforce existing tax laws to ensure transparency in declaration of revenues from Extractive Industry;
• Integrate activities of the informal sector into the mainstream economy to facilitate tax collection;
• Review employment policies;
• Establish funding for micro- projects;
• improve access to Social Security funds to the poor and informal sector;
• Address shortcomings in the legal and regulatory framework for agriculture;
• Improve agricultural productivity;
• Improve agricultural marketing and market access;
• Improve agricultural business development services;
• Promote production for export in both Mainland and Zanzibar;
• Provide adequate facilitation and incentives for LDIs;
• Strengthen EPZs and SEZs;
• Improve local infrastructure for industrialization (energy, water, roads) for both Mainland and Zanzibar;
• Improve efficiency in production and supply of energy so as to offer competitive price;
• Enhance participation of non state actors in planning and implementation process;
• Build capacity for data collection, analysis and management;
• Devolve recruitment powers to LGAs to effectively implement D by D;
• Review PPA to include private sector;
• Implement effective M&E of MDAs Procurement Plans;
• Put in place affordable taxes and plug loopholes in tax law;
• Improve coordination of institutions that deals with revenue collection to improve efficiency in revenue performance;
• Build capacity of local government officials to develop and execute local plans and budgets;
• Enhance capacity of human resources in financial management (for both Mainland and Zanzibar);
Rationalize sources of tax for central and local government;
• Effectively implement CAG recommendations;
• Enforce operating structures of LGAs;
• Enable IFMS connectivity between MoFEA and all LGAs;
• Strengthen IFMS;
• Improve planning process in line with MKUKUTA and MKUZA objectives;
• Enhance development finance to support improved productivity and economic growth;
• Improve implementation of the asset formalisation programme;
• Improve access to financial services;
• Build capacity for financial management at regional and Ministry levels;
• Establish a Coordinating Body to regulate and oversee cross boarder financial institutions;
• Establish a national financial crisis management plan, implement and review periodically;
• Align donor funded reporting procedures;
• Strengthen the capacity of institutions dealing with corruption, money laundering and international crimes through training, ICT and provision of equipment;
• Mount awareness raising campaigns on corruption and money laundering;
• Mount civic education on patriotism;
• Review roles and responsibilities of institutions on corruption and money laundering;
• Review PCCB establishing Act with a view to review CEO appointing and dismissing authorities;
• Review Foreign Direct Investments policies;
• Operationalise National Identity Cards;
• Train more staff;
• Sustain production of strengthened quality control;
• Build capacity for market search;
• Review membership in RECs;
• Effective participation in RECs;
• Fast track integration of economies;
• Integrate ICT application to trade;

• Implement measures of diversifying the economy of Zanzibar;
• Strengthen the private sector in Zanzibar;
• Implement Cooperative Reforms in Zanzibar;
• Strengthen the capacity of institutions in ICT;
• Strengthen the work of Recruitment Secretariat;
• Improve coordination of MTEF among different stakeholders to facilitate implementation;
• Improve data collection, compiling and computing projections statistics for the office of the Chief Government Statistician (OCGS) Challenges;
• Develop and execute Macroeconomic model which addresses the forecasting of future outcome of the economy;
• Improve capacity of staff, budget, equipment as well as decent working place for the OCAG;
• Improve implementation of OCAG recommendations and improve transparency in dissemination of OCAG reports;
• Increase resources, improve HR capacity, technical expertise institutional building and legal framework to facilitate implementation of LGSR;
• Build technical capacity to oversee and implement programs indicated in the national policies;
• Build capacity for officials to develop and execute policies on foreign investors;
• Develop and execute a viable decentralization system suitable for a small island economy;
• Review the role of the Department of Stock verification under the Ministry of Finance and Economic Affairs in compliance with PPRA;
• Build capacity for analyzing financial data and information;
• Build human resources capacity for sub national levels;
• Establish a dicentralisation system viable for an island economy;
• Ensure high quality goods and services are produced to meet export market standards;
• Develop a legal framework and strategic plan to implement trade policy and export strategy;
• Develop domestic capacity to produce and supply high quality products and services;
• Strengthen market research skills;
• Implement quality control for industrial products in Zanzibar;
• Build capacity on negotiation skills.

Corporate Governance

• Ratify outstanding standards and codes;
• Domesticate, create awareness on standards and codes and report ratified standards and codes;
• Promote culture of conforming to legal and business standards;
• Formulate policy to enhance participation of private corporations in economic activities;
• Enact law to guide activities of corporate entities in Zanzibar;
• Strengthen existing business institutions;
• Establish M&E framework;
• Streamline business licencing in Zanzibar;
• Review Tax laws to remove discretionary powers of Tax assessors;
• Establish institution to deal with corruption and money laundering in Zanzibar;
• Strengthen the implementation of BEST programme in Zanzibar;
• Streamline banking procedures;
• Improve existing and build new infrastructure;
• Train personnel to perform as per IFAS and IAS;
• Put in place affordable taxes and plug loopholes in tax law;
• Set up/improve PPP mechanism at all levels;
• Train Tripartite organs on effective use of data to improve quality of negotiations;
• Establish organs of negotiation and arbitration and strengthen labor tribunal;
• Review tax laws to encourage participation in community development and create awareness to corporations;
• Fast track the pending cases in court to end the suffering of victims of eviction;
• Create awareness on environmental laws and regulations;
• Ratify and domesticate conventions on environment;
• Develop implementation strategy on domesticated conventions;
• Increase and strengthen institutional capacity for the enforcement of EMA 2004;
• Put in place measures to stop discharging chemicals to ground water sources and rivers;
• Reinstate land to alternative uses and supervise the operations in the regeneration of the land in the already mined areas such as Mara;
• Provide compensation and medical care treatments to people affected by pollution in mining areas;
• Review Investment Act;
• Promote a culture of good business ethics;
• Create sanctions for defaulters;
• Establish professionally based organizations in Zanzibar to enforce ethical code;
• Create awareness among the population on crimes related to business including money laundering and corruption;
• Review tax laws and levies;
• Review mining contracts;
• Enforce Companies Act 2002 and sensitize shareholders on their rights;
• Facilitate formation of consumer protection association;
• Crate awareness on the rights of shareholders;
• Facilitate the establishment of association of small shareholders (Mainland Tanzania and Zanzibar) ;
• Put in place appropriate codes governing accountability of corporations, Directors and Officers;

Socio-Economic Development
• Ratify outstanding standards and codes;
• Domesticate, create awareness on standards and codes and report ratified standards and codes;
• Strengthen the implementation of ASDP;
• Mainstream planning and budgeting at all levels (all segments of the society);
• Build capacity to communities for development planning;
• Recruit and train staff;
• Raise public awareness on existing programmes;
• Re-enforce coordination mechanism in policy formulation and implementation;
• Allocate adequate domestic financial resources to development expenditure;
• Improve access to micro credit;
• Review and update Acts to reflect significant social and economic changes;
• Review and update strategies to fight unemployment among the youth in mainland Tanzania and Zanzibar;
• Develop human resource capacities for reviewing policies;
• Strengthen coordination process by training management and their supervisory bodies;
• Review and update Act establishing the POPC to give legal power on supervision of planning process and its implementation;
• Build capacity of POPC on planning, policy analysis and development;
• Improve quality of education including increasing number and quality of teachers at all levels, provision of teaching and learning materials, improving teaching and learning environment at primary, secondary and higher leaning institutions;
• Improve quality of health care delivery including increasing number of health care workers, medical practitioners, health care facilities and availability of drugs at all levels;
• Review and update the Act on regulation of private universities in Zanzibar;
• Establish and implement customer service charters in MDAs and LGAs;
• Build capacity of LGAs in data collection, data analysis, and up keep of data;
• Train local government officers on how to improve generate own source revenues in the LGAs;
• Develop prioritised and costed strategic plans for MDAs and LGAs
• Raise public awareness on the existence of HIV/AIDS
• Provide comprehensive awareness on HIV and AIDs prevention to in and out of school youth;
• Conduct awareness raising on HIV and AIDS and encourage voluntary testing;
• Increase Prevention of Mother to Child Transmission Coverage (PMTC) ;
• Distribute anti Retroviral drugs to 1,000,000 people infected;
• Increase allocation of domestic financial resources to fight against HIV and AIDS;
• Ensure proper importation and distribution of Government recommended quality ARV;
• Provide supportive medicine freely to people using ARVs;
• Review ARVs policy to allow child under 18 years to know their status of HIV and AIDS;
• Provide modern and accurate machine for CD4/T-cells Test to ensure people affected start using ARVs at appropriate time;
• Re-evaluate the magnitude and deaths due to Tuberculosis;
• Raise public awareness on the existence of Tuberculosis;
• Increase coverage of TB diagnostic services nation- wide with particular emphasis on the rural areas;
• Strengthen the capacity of lower level health facilities for early diagnosis, treatment and referral of patients with drug resistant TB;
• Strengthen the implementation of the National Tuberculosis and Leprosy Control Programme;
• Raise public awareness on the causes of malaria, how to prevent it and treatment methods;
• Introduce indoor residual spraying (IRS) in all epidemic prone districts and endemic districts;
• Scale up the distribution of Insecticide-treated nets (ITNs) to all households in the country, including those without children under five;
• Strengthen the implementation of the National Malaria Control Programme;
• Empower service providers to enhance service delivery;
• Improve private sector investment in social service delivery;
• Review and implement efficient SACCOS regulatory mechanisms to improve provision of Micro credit;
• Train all public and private sector employees on computer use;
• Strengthen Farmers Cooperatives and SACCOS capacity to effectively manage resources for their members by conducting financial education programs;
• Improve private sector investment in social service delivery;
• Build capacity of SACCOS and VICOBA on agricultural financing;
• Review pertinent laws to enhance property and small business formalization;
• Facilitate land surveying, and issuance of title deeds in mainland Tanzania and Zanzibar;
• Establish potential land parcel compensation- Revolving Fund in mainland Tanzania and Zanzibar;
• Increase electricity generation to 2780 MW by 2015;
• Review tariff rates of electricity to encourage private sector participation in electricity distribution;
• Formulate policies that will encourage private banks to open bank branches in up country;
• Review the costs of building materials with the objective of facilitating the communities to build more decent houses;
• Review institutional structures over land allocation, administration and dispute adjudication in mainland Tanzania and Zanzibar;
• Fast-track resolution of cases involving land grabbing and land disputes in mainland Tanzania and Zanzibar;
• Increase the number of town planners, surveyors, land officers and rural land planners;
• Decentralize the national land use commission to all seven zones;
• Strengthen the implementation of the National sanitation campaign and School WASH;
• Re-enforce gender affirmative action in various sectors including employment and education;
• Enhance women empowerment through education, training, income generation and health;
• Enhance gender awareness and training;
• Review Law of Marriage Act of 1971 to enhance women rights.
• Strengthen the implementation of National Plan of Action to end Gender Based Violence (GBV) including Female Genital Mutilations (FGMs) in mainland Tanzania
• Improve stakeholder understanding on planning techniques at various levels
• Mainstream planning and budgeting at all levels (all segments of the society)
• Ensure participation in planning process by stakeholders at all levels by providing civic education

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About The Author

Joachim Ernest Mushi, Kitaaluma ni mwanahabari muhitimu (Uandishi-2006) wa Chuo Kikuu cha Dar es Salaam, Taasisi ya Uandishi wa Habari na Mawasiliano ya Umma (IJMC) kwa sasa Shule Kuu ya Uandishi na Mawasiliano. Nimekuwa mwandishi wa habari za uchunguzi (Gazeti la Kulikoni & Thisday), Mwandishi mwandamizi Gazeti kongwe la Kiongozi, Mhariri wa Makala mwanzilishi wa Gazeti la Jambo Leo. Kwa sasa ni Mhariri Mkuu Kiongozi wa Thehabari.com, nchini Tanzania.

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