WB Support to Improve Fiscal Management in Tanzania for Growth, Jobs and Better Access to Services

The World Bank’s Board of Executive Directors has approved a US$50 million credit from the International Development Association (IDA) to provide continuing support to Tanzania’s efforts to improve the quality of life for urban residents through improved fiscal management and improved infrastructure. The project will benefit some 1.4 million Tanzanians, of which nearly half are women.

The Tanzania Strategic Cities Project (TSCP) focuses on eight urban centers: Mwanza, Arusha, Mbeya, Mtwara, Kigoma, Tanga, Dodoma and Ilemela. The Danish foreign aid agency, DANIDA, will provide an additional US$6 million to support critical complementary activities.

“The project supports the establishment of well-functioning and productive urban centers in Tanzania, which are essential for accelerating job creation and catalyzing the transformation of the Tanzanian economy and reducing poverty throughout the country,” says Philippe Dongier, World Bank Country Director for Tanzania.

Launched in 2010, the original TSCP project notched significant gains including better fiscal management at local government levels, improved urban governance and planning, construction of first-ever sanitary landfills as well as storm drains, bus terminals and street lights. The project includes support for a new urban management tool (the Local Government Revenue Collection Information System, ‘LGRCIS’) that uses a GIS platform and will support local governments tax reporting, revenue collection, operations and maintenance, urban planning, permitting and land management systems. The modernized system allows online payments including via mobile phones. This system will improve how local governments collect taxes, with significant gains in transparency, accountability, and customer-focused timely responses.

“Tanzanian cities are the locus of formal and informal activity and account for over 50 percent of the country’s economic growth said Onur Ozlu and Andre Bald, World Bank Co-Task Team Project Leaders. “Yet, institutional capacity and access to basic infrastructure has lagged significantly. This project will support the Government of Tanzania’s efforts to create dynamic urban areas that are conducive to inclusive growth and job creation.”