Tanzania - Good Governance and Private Sector Development Programme (GGPSDP) - Phase II

The present intervention relates to the second phase of the Good Governance and Private Sector Development Programme (GGPSDP). It aims to contribute to Government’s efforts to strengthen good governance and promote private sector led growth and economic development. The program supports the Government of the United Republic of Tanzania (GOT’s) ongoing reforms to promote private sector investments, while addressing constraints affecting the business regulatory regime and service delivery as outlined under the blue print for regulatory reform to improve the business environment. The operation builds upon efforts to improve budget credibility in order to ensure macroeconomic stability while providing a conducive operating environment for the private sector. It would also support the ongoing reforms aimed at fiscal consolidation, thereby establishing a foundation for inclusive and resilient private sector led economic growth. The proposed operation likewise builds upon ongoing reforms to improve public sector oversight, accountability, transparency and institutional capacity to efficiently and effectively manage public resources. The GGPSDP II components remain the same as specified in the original Program Appraisal Report (PAR) namely a) Improving the business environment for private sector development; (b) improving public financial management, with focus on enhancement of budget credibility in order to sustain macroeconomic stability; and (c) improving oversight functions, with particular emphasis on strengthening procurement systems and audit services.