[{"bbox": [97, 152, 1135, 233], "category": "Text", "text": "finance in a country where private investment levels are particularly low, (ii) strengthening the capacity of the public administration for raising revenue and delivering public services and investments and (iii) promoting accountability."}, {"bbox": [97, 238, 736, 265], "category": "Text", "text": "The Action will deliver on the following key domains and objectives:"}, {"bbox": [93, 270, 1135, 352], "category": "List-item", "text": "1. **Public Finance:** Improve the effective, efficient and accountable mobilisation and management of gender- and climate-sensitive public finances. The action will focus on enhancing domestic resource mobilisation, public financial management and skills development for the data-driven and digital-transitioning financial institutions."}, {"bbox": [92, 356, 1135, 517], "category": "List-item", "text": "2. **Private Finance:** Enhance financial market systems to increase access to finance. The action will support regulatory frameworks, innovative financial products and services, financial market infrastructure, and financial and digital literacy. There will be a specific focus on MSMEs, women and youth and the market segments of microfinance, capital markets, green finance and fintechs. These interventions will be complementary to the \"Regional initiative to support African Central Banks through capacity building\" and EU support to the Alliance for Financial Inclusion of which Tanzania is a member."}, {"bbox": [92, 521, 1135, 577], "category": "List-item", "text": "3. **Accountability and dialogue:** The action will support anti-corruption efforts, strengthen the voices of rights holders and promote public-private dialogue on the business environment."}, {"bbox": [97, 580, 1135, 636], "category": "Text", "text": "The Action targets SDG1 (No Poverty), 8 (Decent work and economic growth), 16 (Peace, Justice and Strong Institutions) and 17 (Partnership for the goals)."}, {"bbox": [97, 640, 1135, 695], "category": "Text", "text": "In terms of modalities, budget support will support key reforms and a mix of procurement, contribution agreements and twinning grant will be used to build capacities of key stakeholders, with a strong reliance on EU expertise."}, {"bbox": [85, 728, 324, 761], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [85, 794, 236, 822], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [97, 840, 1135, 1106], "category": "Text", "text": "Tanzania is a beacon of macro-economic and political stability in the region, benefiting from a strategic location, natural endowments and a relatively diversified economy. After a decade of consistent high economic growth, Tanzania attained lower middle-income status in 2020. Changes in the political context since 2021, with the rise to power of President Samia Suluhu Hassan, have led to a gradual opening for instance in the areas of freedom of expression and association, business environment and multilateralism. The country is recovering from COVID-19, with an economic growth rate of 4.9% but a poverty rate of 27% in 2021. The various external shocks over the past three years put pressure on fiscal space, increased the risk of debt distress and some gains in poverty reduction were lost, particularly impacting women. At the same time, the effects of climate change on livelihoods are visible, access to finance is low and uneven and Tanzania's population is growing rapidly, with over 800,000 youth entering the job market every year."}, {"bbox": [97, 1111, 1135, 1299], "category": "Text", "text": "In response to this diverse mix of challenges and opportunities, the Government of Tanzania set out to build a competitive, industrialised, inclusive and climate-sensitive society that is resilient to external shocks and responds to the needs for jobs and good service delivery of its fast growing, youthful population. Closely related is the President's priority to put Tanzania on the map as an investment destination and improve the business environment to encourage private-sector led growth. **Implementing this vision and unlocking Tanzania's potential requires an enabling environment with good fiscal governance and financial markets that work for Tanzanians, especially women, youth and the poor.**"}, {"bbox": [97, 1303, 1135, 1540], "category": "Text", "text": "Tanzania's National Development Vision 2025 and Five Year Development Plan III (FYDP III) make explicit reference to the need for reliable and increased financing, good public governance and access to finance. It points to the country's revenue potential through broadening the tax base, using e-government solutions and using non-traditional and innovative sources of finance. Grants and concessional financing is expected to decline, now Tanzania has become a lower middle income country and several traditional partners shifted priorities. On the expenditure side, the Government aims to make public financial systems more efficient and effective, with a strong role for automation and digitalization. Corruption is perceived to be an issue both at low and high level. The Zanzibar Development Vision 2050 also identifies public finance management as a priority with a particular focus on domestic revenue mobilisation."}, {"bbox": [97, 1548, 1135, 1629], "category": "Text", "text": "For the financial sector, FYDP III highlights the need to restructure and strengthen financial institutions with commitments made to support the country's capital markets, support greater competition in the banking system and ease conditions for access to finance, in particular for MSMEs. There is a momentum to increase access to"}, {"bbox": [1038, 1680, 1143, 1706], "category": "Page-footer", "text": "Page 4 of 31"}]