Enhancing Coordination and Collaboration in Development Cooperation
Select Representatives to Facilitate Communication
In a bid to enhance coordination and collaboration in development cooperation, representatives from various sectors will be identified to facilitate communication. For the private sector and other non-state actors, representation through associations and groupings is highly recommended.
Representation of International Development Cooperation Partners
International Development Cooperation Partners are encouraged to establish representation arrangements that promote:
- Division of labor
- Continuity of institutional memory
- Effective engagement
- Seamless communication and coordination among stakeholders
Financing Instruments and Arrangements
Financing is a crucial element in development cooperation, alongside policy engagement and goodwill. Development Cooperation Partners will continue to support core priority areas of national development plans and strategies through various financing instruments.
Overview of Financing Instruments
The Government emphasizes the importance of integrating development resources into their respective budget and exchequer system to achieve effective planning, implementation, monitoring, and accountability. Several modalities may be blended to achieve specific objectives.
Financing Modalities
General Budget Support (GBS)
General Budget Support is the preferred financing instrument for Governments due to its compliance with international development cooperation undertakings and the Constitution of Tanzania. GBS conditionalities typically relate to:
- Macroeconomic management
- Financial accountability
- Budgetary allocations
Budget Support (BS)
A modified budget support instrument will be used to provide support to Governments’ budgets based on progress in implementation of pre-agreed reforms or indicators in selected sectors or programs. BS resources are channeled directly to Governments’ budgets, subject to full contestability in allocation and flow through Government accounting systems.
Basket Funds (BFs)
This financing modality involves multiple Development Cooperation Partners collectively financing a country’s development program at sector level using harmonized procedures and processes. Management of this modality spurs a Sector Wide Approach, increasing alignment with Government policy and expenditure framework.
Direct to Project Funding
There are two ways to channel funds through this modality:
- Project Funds through Exchequer System (C-Funds): involves depositing funds in the Government’s revenue account at the Bank of Tanzania
- Direct to Project Funds (D-fund): provides funds directly to a specific project with reporting requirements
Accountability and Transparency
All financing instruments will ensure accountability for resource utilization through Government systems. Transparency and contestability in allocation will be ensured, reducing transaction costs and increasing harmonization and coordination among stakeholders.