IFAD in the United Republic of Tanzania

IFAD's Executive Board approved its first loan to the United Republic of Tanzania in 1978 – the second loan ever approved by the board. Since then, IFAD has approved and financed a total of 15 projects in the country through investments of US$360 million, or some 48 per cent of project costs.

Tanzania has the second-largest IFAD portfolio (in terms of volume of lending) in the East and Southern Africa region, after Ethiopia. Since the beginning of IFAD's operations in the country, the government has provided cofinancing of US$72 million to IFAD-supported projects, or about 10 per cent of total portfolio costs. The other major cofinanciers have been the World Bank (1.5 per cent) and African Development Bank (11.4 per cent).

Aligned with the country's second National Strategy for Growth and Reduction of Poverty and its Development Vision 2025, IFAD's current results-based Country Strategic Opportunities Programme (COSOP) in Tanzania was introduced in 2007. Before preparation of this COSOP, IFAD had already contributed to basket funding in a sector-wide approach for agriculture – through the Agriculture Services Support Programme – together with several other development partners. The COSOP acknowledged that a funding gap existed in the national Agricultural Sector Development Programme (ASDP) and proposed continuing IFAD's contribution to the sector-wide approach as well as financing separate operations.

The 2007 COSOP set four strategic objectives, each of which corresponded, de facto, to the envisaged IFAD operations:

  • Improving access to productivity-enhancing technologies and services by contributing to the agricultural sector-wide approach through two ongoing loans and a new programme, ASDP
  • Enhancing participation of farmers' organizations in national sector-wide planning, again by supporting ASDP through loans and grants, but with a special focus on improving the planning and advocacy capacity of farmers' organizations
  • Increasing access to sustainable rural financial services through IFAD's loan for the Marketing Infrastructure, Value Addition and Rural Finance Support Programme, which is the successor to a national rural finance programme also supported by IFAD
  • Increasing access to markets and opportunities for rural enterprise through IFAD's loan for the Rural Micro, Small and Medium Enterprise Support Programme, which follows up a previous IFAD-funded programme on agricultural marketing, and which aims to expand the model to other districts.

The current active portfolio consists of five programmes and projects, with an IFAD investment of approximately US$200 million, aimed at reaching about 3 million households. A May 2011 end-of-phase evaluation commissioned by the Ministry of Agriculture and development partners noted that, overall, ASDP has achieved significant results by introducing a sector-wide approach for agriculture from the national level down to the village level. It has also streamlined planning, monitoring, evaluation and reporting, and facilitated the development of institutional and human resource capacity. However, a number of challenges still need to be addressed to increase efficiency and reduce constraints in the smallholder agriculture sector.

Given the implementation experience gained by IFAD and other development partners in Tanzania regarding basket-funded programmes, the focus of both the government and its partners is gradually shifting towards supporting the delivery objectives of the BRN initiative – and towards promoting linkages with the private sector to improve efficiency and ensure more sustainable markets. One of the principal accomplishments under the basket fund arrangements has been a decentralized strengthening of implementation capacity, and future programmes will build upon this result.

In the process of preparing its investment programme for 2013-2015, IFAD is discussing investment options with the government, which may include support to BRN and the Southern Agriculture Growth Corridor of Tanzania (SAGCOT). Both of these initiatives centre on the goal of transforming smallholder farming into a profitable commercial venture. At the end of 2013, SAGCOT was selected by the Africa Forum as one of 100 notable innovations for sustainable and inclusive development being implemented across Africa.

In April 2014, IFAD expects to initiate a country programme evaluation in Tanzania. The findings will guide preparation of the next COSOP, to be presented to the Executive Board in December 2015. In order to allow for lessons to be drawn from the recommendations of the country programme evaluation, the implementation period of the current COSOP is being extended to December 2015.

IFAD appointed a liaison officer in Tanzania in 2003, after the approval of its Field Presence Pilot Programme. In 2008, the organization outposted the first Country Programme Manager there, and the previous liaison officer became a Country Programme Officer. As of March 2014, IFAD outposted a new Country Director to Dar es Salaam. The Country Director is also responsible for the IFAD country programme in Rwanda.


Source: IFAD