The World Bank has approved a new $50 million funding to assist Tanzania in strengthening its revenue management, modernizing public procurement processes, and enhancing resource allocation and audit effectiveness.
This funding, equivalent to 127.5 billion Tanzanian shillings, is part of the Public Finance Management and Procurement Systems for Service Delivery Programme. The aim is to build capacity in both Mainland Tanzania and Zanzibar to mobilize and manage public resources more effectively through improved institutional capacity, efficiency, transparency, and accountability.
The program is structured around four key result areas. The first area focuses on supporting the government’s revenue mobilization efforts, including enhancing the e-filing system and conducting taxpayer awareness campaigns. The second area aims to increase the efficiency and transparency of public procurement management by enhancing electronic government procurement systems and implementing sustainable procurement practices.
Efforts to improve financial management through better budgeting processes and financial reporting are covered in the third result area. The fourth area aims to enhance accountability by strengthening external audit and parliamentary oversight activities.
Nathan Belete, the World Bank Country Director, commended the government for recognizing the importance of robust public financial management and procurement systems in driving Tanzania’s development agenda. Despite notable progress in recent years, there are still weaknesses in core aspects of public financial management, such as unreliable annual budgets, weak control frameworks, revenue collection inefficiencies, and shortcomings in financial reporting by public institutions.
Paul Welton, World Bank Senior Financial Management Specialist, emphasized that improvements in the public procurement system could lead to significant economic benefits for Tanzania. With a large portion of the country’s budget allocated to public procurement, enhancing transparency, accountability, and service delivery will benefit all citizens and businesses in Tanzania.
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