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The United Republic of Tanzania Prime Minister’s Office PROGRAMME FOR BUSINESS ENVIRONMENT STRENGTHENING FOR TANZANIA (B E S T) Presentation to GBS Review Ubungo Plaza, 25 th Nov 2008 BEST: IMPLEMENTATION STATUS, CHALLENGES AND NEXT STEPS – WHY WE MUST NOT QUIT? Better Regulation Unit 1

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The United Republic of Tanzania Prime Minister’s Office. PROGRAMME FOR BUSINESS ENVIRONMENT STRENGTHENING FOR TANZANIA (B E S T) Presentation to GBS Review Ubungo Plaza, 25 th Nov 2008 BEST: IMPLEMENTATION STATUS, CHALLENGES AND NEXT STEPS – WHY WE MUST NOT QUIT? - PowerPoint PPT Presentation

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Page 1: The United Republic of Tanzania Prime Minister’s Office

The United Republic of TanzaniaPrime Minister’s Office

PROGRAMME FOR BUSINESS ENVIRONMENT STRENGTHENING FOR TANZANIA (B E S T)

Presentation to GBS Review Ubungo Plaza, 25th Nov 2008

BEST: IMPLEMENTATION STATUS, CHALLENGES AND NEXT STEPS – WHY WE

MUST NOT QUIT?

Better Regulation Unit

1

Page 2: The United Republic of Tanzania Prime Minister’s Office

OUTLINE1. Why Investment Climate Reforms?2. What kind of program is BEST?3. What is BEST: what are the problems?4. Closer Look at the 4 core reform areas

4.1 Business Registration, Regulation and Exit4.2 Land Administration Reforms4.3 Labour Market Reforms4.4 Commercial Dispute Resolution4.5 Strengthening Tanzania Investment Centre4.6 BEST Program Institutional Support4.7 BEST Zanzibar Component4.8 Development Partners Concerns

5. Major cross-cutting challenges and way forward? 2

Page 3: The United Republic of Tanzania Prime Minister’s Office

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1. Investment Climate reforms agenda for broad-based growth: why?

3 critical sets of factors: accepted indisputable realities

Investment Climate: - sectoral policies; laws; regulations; implementing institutions and their capacity

Infrastructure: - is it efficient / competitive?- Hard: transport, ports, utilities, communication, social

infrastructure, & infrastructure for agriculture - Soft: financial and ICT services

Private sector core competencies: Innovation & creativity for higher productivity & excellence- Education and skills: specific skills for each sector- Access to technology and other production assets- Access to finance- Access to foreign markets & entry into those markets

Page 4: The United Republic of Tanzania Prime Minister’s Office

Why Investment climate reforms (2)? A conducive regulatory environment is major economic growth

driver through better services to private sector in less time and at lower cost. Through less bother to private sector in collecting data to facilitate government functions in planning, regulating, maintaining peace and order, ensuring property rights etc. Efficient information collection, analysys, storage, dissemination and use is critical and can be costly – very costly. Therefore focus on:

Easy entry, efficient regulatory regime and smooth exit to Business

Security of property rights and use of land as an assetMore Formalized Businesses especially SMEsAccess to Finance for all including reduced business risk and

lower costs of borrowingTimely and amicable resolution of Commercial Disputes Employment / Income generation & govt revenue

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Page 5: The United Republic of Tanzania Prime Minister’s Office

Why investment climate reforms?Macro economic fundamentals in place but not a

sufficient conditionTremendous push for additional investment in

education and infrastructure but not a sufficient condition

Increased investment in FDI flows has taken place largely in Tourism, Natural resources (mining) and more is desirable: due to changes that have taken place and are continuing – TIC work and data

Recognition of more work on investment climate is there and efforts are ongoing.

Tz received 6.3% of SADC FDI inflows ($369 out of $5,899 billion on average for period 2002 - 2005

5

Page 6: The United Republic of Tanzania Prime Minister’s Office

Average FDI Inflow to SADC for Top Ten Countries, 2002-2005

0 5 10 15 20 25 30 35 40

Others

Madagascar

Seychelles

Zambia

Namibia

Mozambique

Tanzania

Botsw ana

DRC

Angola

South Africa

Coun

try

Percentage

Page 7: The United Republic of Tanzania Prime Minister’s Office

FDI Inflow in the EAC, 2002-2005

Country 2002 2003 2004 2005 Average Percentage of Total

Tanzania 388 308 331 448p 369 57.7

Uganda 203 202 222 258 221 34.5

Kenya 52 82 46 21 50 7.8

Total EAC 643 592 599 727 640 100.0

Page 8: The United Republic of Tanzania Prime Minister’s Office

Average FDI Inflows in the EAC, 2002 - 2005

0 10 20 30 40 50 60 70

Kenya

Uganda

Tanzania

Cou

ntry

Percent

Page 9: The United Republic of Tanzania Prime Minister’s Office

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2. What is BEST: Priority reform areas Business entry & regulation: a Ease of business start up for large investors; registration system favouring informal sector; simplification of regulatory licensing regime; and national identification system for natural persons . Ease of exit to ensure that non-performing assets are put to alternative use Land Administration: Access to titled land for security of tenure and use of land as an asset: business premises or land for agriculture, use of landed property for mortgage purposes Labour market reforms: ensure fair contractual relationships between employers and employees Efficient commercial dispute resolution (contract enforcement purposes)Changing of Government Culture: RBP and RIADirect support to TIC and BEST Zanzibar

Page 10: The United Republic of Tanzania Prime Minister’s Office

What kind of program is “BEST”?

On 22 July 2002 the Government of the United Republic of Tanzania approved implementation of the Business Environment Strengthening for Tanzania (BEST) Programme.

MOU signed between Government, TPSF and four bilateral Development Partners (DPs) in December 2003 - the Department for International Development UK (DFID), Danish International Development Agency (DANIDA), the Embassy of the Kingdom of the Netherlands, and the Swedish International Development Agency (Sida).

Implementation of BEST (Phase I) started in February 2004 focusing on legal and regulatory framework reforms (changing laws and regulations). Phase I scheduled to end in June 2008. Twenty five per cent of resources go to Private Sector Advocacy (USD 4.5 mil out of USD 18 mil) 10

Page 11: The United Republic of Tanzania Prime Minister’s Office

What is “BEST” – Why Phase 1 and 2?

The Government signed a DCA with IDA Private Sector Competitiveness Project: half of its resources (SDR 27.6 million) go to BEST and the other half goes to FSDT and an Enterprise Competitiveness component

The DCA comes with redesign of BEST to include institutional capacity building for implementing the improved legal framework and more emphasis on Land Administration reform

Actual implementation of Phase II starts with effectiveness of DCA, planned for July 2006, realised in January 2007 with signature of Amplified MOU.

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Page 12: The United Republic of Tanzania Prime Minister’s Office

What is BEST - Why Phase I and Phase 2Phase 2 of BEST, in terms of Financing by

bilateral DPs could not start before July 2008. Two different time frames for BEST Phase Two is

source of misconceptions and wrong perceptions i.e. that BEST Phase II is a new program being designed afresh to be negotiated and signed in post July 2008. NO – it is the same old program started in approved by CABINET in July 2002 and subsequently revised through Government approval for the PSCP in 2006.

Good news: CIDA may join BEST DPs (if we make it – we shall overcome). Also Finland would like to support BEST Zanzibar on Land Administration Reforms

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Page 13: The United Republic of Tanzania Prime Minister’s Office

What is BEST: Land reform is the key?Shocking news: we could lose it all if: DPs not

impressed on implementation progress by May 2009; and if we do not come to mutual understanding on level of government commitment in oversight of reforms: evidence is regulatory reforms in many jurisdictions have required oversight from top echelons of THE EXECUTIVE

Challenging News for the DPs: we can meet the challenge of commitment head on and are even asking for more resources: A sustainable strategy for Land Administration reforms requires a minimum of USD 50 million up to June 2013 as seed Capital from BEST – figure from World Bank . This does not include necessary Government commitment. 13

Page 14: The United Republic of Tanzania Prime Minister’s Office

3. What is BEST: What are the problemsThere are many perspectives: different studies and

reports highlight similar problems. Government has been addressing these problems – hence decisions of 2002 to implement BEST and 2006 to expand outreach of BEST

The problems are known – use one perspective out of:Property and Business Formalization Program

(MKURABITA)CTI Study on the Legal, Regulatory and Judicial

Framework: done by ESRF in 2000Reports commissioned during the design of BEST and in

the design of the World Bank’s Private Sector Competitiveness Project (PSCP)

The annual publication of WB Doing Business indicators14

Page 15: The United Republic of Tanzania Prime Minister’s Office

Tz one of top 10 reformers in 07: slippages in 08/09

Indicator Factor Performance status

1. Ease of Doing business2. Starting a business3. Dealing with licenses4. Employing workers5. Registering Property6. Getting Credit7. Protecting Investors8. Paying Taxes9. Trading Across Borders10.Enforcing Contracts11.Closing a Business

2007 2008 20091.142 124 127/1812.127 953.172 1704.143 1515.157 1606.117 1157.99 838.113 1049.167 1009.65 3510.105 109 15

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Dealing with licenses: 2008 status – 170 / 178

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Page 17: The United Republic of Tanzania Prime Minister’s Office

Employing workers in 2008 – good progress but improve quality

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Page 18: The United Republic of Tanzania Prime Minister’s Office

Registering property 2008

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Investment Climate Reforms: Doing Business indicators – compares 181 countriesAnnual Review based on ten factors:1.Starting a business 6. Dealing with licenses 2. Employing workers 7.Registering property3. Enforcing contracts 8. Getting credit4. Trading across borders 9. Protecting

investors5. Paying taxes 10. Closing a business

Two additional factors to be brought in. When?1. Added Not paying bribes 2. Added Using infrastructure

Page 20: The United Republic of Tanzania Prime Minister’s Office

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Institutional transformation for efficient information collection, storage, retrieval and use in modern government: National Registration System

Natural persons

Legal persons

Property

• Births• Deaths• Marriages• Health• Soc. Security• Voting• Employment• Tax• Census• Passport• ID• Driving• Aliens

• Shareholders• Directors• Tax

• Land• Moveable assets• Patents• Trade and service marks• Business/corporate names

Page 21: The United Republic of Tanzania Prime Minister’s Office

4. Closer look at the 4 reforms areas4.1 BUSINESS ENTRY, REGULATION AND EXIT The objective of this component is lower the costs of investing in, establishing and operating a business in Tanzania by minimizing policy, legal, regulatory and institutional barriers to business entry and operation, particularly barriers to registration and licensing. Envisaged output includedevelopment of a transparent and efficient business regulation and licensing regime.Establishment of Business Registration a one stop fast and lower cost business registration system linked to other registries as a tool for economic formalization Modernized of core primary data collection registries – Registration of natural persons and personal identification; property registry;Other registries: the courts; labour etc (users of information from primary data collectors and processors) – linkage into a national registration systemAn end to lost files, an end to dusty files that no one wants to touch, an end to data collected but not analysed, an end to data abuse, an end to endless queues and to “come back tommorrow”.

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Page 22: The United Republic of Tanzania Prime Minister’s Office

4.1 BUSINESS ENTRY, REGULATION AND EXIT Ctnd.

ACHIEVEMENTS Business Activities Registration Act (BARA) was passed January

2007, setting the stage for the introduction of one time, one-stop, decentralised, non pre-approval based business registration system, thus eliminating a costly, time-consuming barrier to business start-up.

A roadmap for the modernisation of the Business Registration, and Licensing Agency (BRELA) was undertaken, a new draft Corporate Strategy prepared, and a feasibility study for a new BRELA front office has been completed and design now underway.

Draft policy on business licensing reform which is expected to lead to extensive simplification of the existing business licensing regime has been drafted and road show for stakeholder consultations on. Go for dramatic repeal of obsolete laws and regulations / illegal administrative procedures through “KISHOKA” - Guillotine 22

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BUSINESS ENTRY, REGULATION AND EXIT Ctnd

CHALLENGESNo common vision on reforms and different

views about the BARA. Stalemate on concept of a simple tool for economic formalization – evidence from MKURABITA and fame of Hernando de Sotto and Peruvian experience

Consensus building on amendments to BARA and reform of business licensing. (Important that MITM, PO-RALG and Local Authorities work together as partners) – study tour if they want it.

Implementation of BARA = Every district has its own show since the repeal of the General license

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Page 24: The United Republic of Tanzania Prime Minister’s Office

BUSINESS ENTRY, REGULATION AND EXIT CtndKEY PRIORITY ISSUES 1.BARA - consensus reached on the way forward, Act amended,

regulations published and procurement process for implementation activities underway

2.BRELA – (i) procurement process for scanning/indexing/digitization process re-commenced and contract for developing record management system awarded (ii) Programme Coordinator in BRELA in place and (iii) Contract for commissioning Architectural firm to design BRELA front office commenced, commitment of BRELA to rehabilitation of premises secured, and front office designed;

3.MSME database – contract for TA awarded and TA in place. Groundwork for establishment of MSMEs database undertaken;

4.RITA – (i) scanning/indexing process underway, (ii) Award contract for consultant to prepare strategy for computerization

5.Regulatory Licensing Draft Policy to be submitted to wider stakeholder group for consensus building before onward submission to the Cabinet.

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Page 25: The United Republic of Tanzania Prime Minister’s Office

The objective of this component is the establishment of an effective, efficient and equitable land administration which guarantees security of tenure and facilitates efficient land market. Do we know who owns the land? Output include:Establishment of appropriate legal, institutional framework for implementation Efficient land (property) registration and information system countrywide for government and private sectorDevelopment of supporting infrastructure - reference points, surveying, mapping etc Resolve existing Land Disputes and forestall future ones between individuals and between communities (herders against farmers; investors vs small holdersFormalization of Landed Property Rights in Urban Unplanned settlements: Titles for landed propertyImplementation of village land Act N0. 5 of 1999: Customary Certificates of Occupancy

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4.2 LAND ADMINISTRATION REFORM

Page 26: The United Republic of Tanzania Prime Minister’s Office

LAND ADMINISTRATION REFORM CtndACHIEVEMENT Mortgage Regulations and Bills to regulate Land markets and the real

Estate Agency and Valuation Professions have been drafted. Surveying and Mapping equipment and infrastructure has been procured

and digitised mapping in 15 project districts is due to commence. Two study tours was undertaken in preparation for the commencement of

pilot activities relating to the formalisation of land rights, implementation of the Village Land Act in Thailand, Cambodia, Ethiopia and India ,

An environmental assessment framework and resettlement policy framework for the pilot are in the process of being completed and put in place.

A project to decrease the backlog of land related disputes was embarked on, but whereas strong progress was made on clearance of backlog cases in Ilala (87%) and Mbeya (61%), the backlog in Dar es Salaam continued to mount, leading to the need for a review and possible extension of the backlog project.

procurement is underway in relation to a large number of contracts for land related assignments and provision of goods;

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Page 27: The United Republic of Tanzania Prime Minister’s Office

LAND ADMINISTRATION REFORM CtndCHALLENGES Seed capital to implement a land administration strategy

over the coming 10 to 15 years starting with pilot in 15 districts

Early finalization of legal framework Real estate agency bill, Valuation Bill Sectional property Bill(unit titles), land acquisition and compensation Bill, land use planning Act in line with resettlement and

environment safe guide policy, Survey and mapping policy Modernization of Property Registry at HQ and Districts:

start with 15 districts and role out the experience across the country: 20 years?

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Page 28: The United Republic of Tanzania Prime Minister’s Office

LAND ADMINISTRATION REFORM CtndKEY PRIORITY ISSUES Project Write-up and Working Manual for systematic village land

adjudication in Babati and Bariadi districts improved for implementation for universal titling project.

Manuals for adjudication in 8 villages in 13 other districts for eveyone in the select villages

Major challenge in reference points for surveying and production of maps of appropriate scale: Recourse to Satellite Imagery (bill close to USD4 million for 15 districts only. Reference points for surveying being financed for only a fragment of the national system that is required

Yet land is there but who owns it: perception of plenty of land could be misperception – only 44 million arable land for a population of 40 million. There is need to have data – where is that land, what is it suitable for, who is holding it and what they are doing with it. People should make money and government earn revenue from that land.

Todate Certificates of Village Land (CVL) and Right of Occupancy (54,000 CROs) to land owners in 18 villages in Babati and Bariadi districts issued.

Focus on formalization of land ownership: Modern electronic land registry, with a few paper records and biometrics to avoid fraud is the way to go. 28

Page 29: The United Republic of Tanzania Prime Minister’s Office

4.3 COMMERCIAL DISPUTE RESOLUTIONThe objective of this component is to reduce the complexity, cost and time taken to process and resolve commercial disputes and strengthen the delivery of commercial justice. Output include:

Access to Commercial justice improved (land, labour and commercial courts)

Updating of the framework for civil justice – started as efforts to reform the Civil Procedure Code

Modernized delivery of civil justice based on continuing legal education

Tanganyika law society supported to become an effective advocacy, representative and regulatory organization for lawyers in Tanzania

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Page 30: The United Republic of Tanzania Prime Minister’s Office

COMMERCIAL DISPUTE RESOLUTION Ctnd

ACHIEVEMENTSMwanza Commercial Court Sub Registry launched in

April 2008 Information Communication Technology (ICT)

Roadmap report for Tanzanian Courts is now in place. Extensive stakeholder consultations have taken place

on the Law Reform Commission's Position Paper on Civil Justice reforms.

Position Paper on the review of Court of Appeal Rules made under Appellate Jurisdiction Act, 1079 is in place. Draft report of Court of Appeal Rules in place ready to be presented to Stakeholder for discussion and comments

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Page 31: The United Republic of Tanzania Prime Minister’s Office

COMMERCIAL DISPUTE RESOLUTION CtndCHALLENGES Recruitment of dedicated experts: Senior Legal Adviser with

international expertise and a dynamic Tanzanian as CDR Project Manager

Early submission to the cabinet, papers on the review of the Civil Justice System which should go simultaneously with the comprehensive drafting process of civil justice legislation by the Law Reform Commission i.e. Review of Civil Justice Law and review of law relating to the conduct of legal profession.

Nine Laws under Civil Justice System that are critical to private sector development are: Constitution of the United Republic of Tanzania Magistrate Court Act Advocate Act Tanganyika Law Society Act Civil Procedure Code Evidence Act; Arbitration Act; Government Proceeding Act Appellate Jurisdiction Act 31

Page 32: The United Republic of Tanzania Prime Minister’s Office

COMMERCIAL DISPUTE RESOLUTION CtndKEY PRIORITY ISSUESImplementation plan for ICT Roadmap : case

management; law reports on line; library on line; filing on line; court recording systems; video conferencing between zonal centres

Publication of the Law Reports for the 1999-2006Draft of bills for the 9 Civil Justice System and

private legal practice Tanzania Upgrading case management systems and

software, and introducing computer aided transcription and video conferencing starting with the Court of Appeal and the High Court

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Page 33: The United Republic of Tanzania Prime Minister’s Office

COMMERCIAL DISPUTE RESOLUTION CtndKEY PRIORITY ISSUES TO BE IMPLEMENTED Cont..Commercial Court registry in Mbeya and Dodoma

(own funds)Case backlog disposal Programme in High Court

and Resident Magistrate Courts ( on pilot basis)Small cases stream in magistrates courts ?Commercial Law Continuing Legal Education

framework for Tanzania Judges, Magistrates and advocates to be developed and implemented, including training modules in commercial law (commercial law and legal skills) and training in ADR for 52 Judges, 400 magistrates and 500 advocates

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Page 34: The United Republic of Tanzania Prime Minister’s Office

4.4 LABOUR LAW REFORMThe objective of this Component is to introduce an efficient , effective, flexible and socially responsible labour market which will generate decent jobs. The reform address the need for greater enterprise growth and job creation, and higher productivity through the promotion of core employment standards and workplace harmony. Output include:

New labour market policies, bills and regulation prepared

Labour market institutions are strengthened to implement new labour market reforms

Labour market information system established

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Page 35: The United Republic of Tanzania Prime Minister’s Office

LABOUR LAW REFORM CtndACHIEVEMENTSSeven regulation were drafted i.e. Occupational Safety, Health

Facilities Regulation, First Aid Regulations, Vessel under Pressure Regulation, General Administrative Regulation, OHS electricity rules, hazardous chemicals substances and OSH (building and construction industry) rules.

Social Security (Regulatory Authority) Act 2008 (SSRA Act No. 8 of 2008) has been signed by the President on the 6th June 2008.

Workers Compensation Act enacted in November 2008. National Employment promotion and Service Policy has been

passed by the Cabinet Secretariat in May 2008 and Bill is in the final stages and will be submitted to the Parliament for the first reading October 2008.

CMA which has successfully resolved over 5,214 cases where by 3,914 were resolved by Mediation and 1,300 cases by Arbitration.

CHALLENGES: No major challenge 35

Page 36: The United Republic of Tanzania Prime Minister’s Office

LABOUR LAW REFORM CtndPRIORITY ISSUESDetailed Regulatory Impact Analysis (RIA) training using OSH,

Workers Compensation and National Employment Promotion Policy Bills; and their respective regulations

Sensitization to Members of Parliaments on draft Bills: Workers Compensation, Employment Promotion Services, and OSH

Finalize other Labour bills: Employment Promotion Services Bill; Occupational Safety and Health (OSH) Bill and Workers Compensation Bill

Prepare and publish the related Regulations, Code of Practices, Guidelines and Standards for the Employment Promotion Services Bill; Occupational Safety and Health (OSH) Bill and Workers Compensation Bill and Social security Act 2008;

Study on extension of social security to the poor including informal sector;

Harmonization and Streamlining Work Permits Procedures36

Page 37: The United Republic of Tanzania Prime Minister’s Office

4.5 STRENGTHENING TANZANIA INVESTMENT CENTREThe objective of this component is that TIC is

supported to attract new investment and to maximize it impact on the economy. Output include:

An effective TIC website is in place and targeted marketing activities are taking place

An effective targeted investment promotion strategy implemented to raise the profile and image of Tanzania as a business location in Sub Sahara Africa

Existing investors are supported to expand investment and develop local suppliers network

Sites and infrastructure developed to meet investors needs are being promoted

TIC to provide quality services to investors 37

Page 38: The United Republic of Tanzania Prime Minister’s Office

STRENGTHENING THE TANZANIA INVESTMENT CENTRE Ctnd

ACHIEVEMENTSA major achievement was the award

to TIC as the most efficient investment agency in Africa in 2007 as well as the registration of a total of 813 new investments worth US$ 6.94 Billion that created a total of 120, 344 new jobs.

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Page 39: The United Republic of Tanzania Prime Minister’s Office

STRENGTHENING THE TANZANIA INVESTMENT CENTRE Ctnd

KEY PRIORITY ISSUESWorking with TAHA to prepare investment

promotion materials on Horticulture and floriculture in Tanzania

Working with GATSBY, Tanzania Cotton Board to prepare good investment climate for cotton

Targeting investors in Europe, Asia and America in the coal and iron projects under the A T Kearney project. Identifying potential investors, contacting them and persuading them to invest in Tanzania.

Conducting internal research to understand the current status of the Oil pipeline project

Organizing regional investment promotion seminars to Kagera and Singida

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Page 40: The United Republic of Tanzania Prime Minister’s Office

4.6 BEST PROGRAMME AND INSTITUTIONAL SUPPORTACHIEVEMENT Key administration improvements in overall programme management

have been implemented within BRU. Much capacity building for 19 MDAs (6 Ministries, 13 Agencies / Departments)

Incorporation of Regulatory Impact Assessment into Tanzania's law and policy making processes has been formally approved by Permanent Secretaries, MPs and the Office of the Cabinet Secretariat, widespread training and awareness activities have taken place, and introductory training capacity in RIA has been built in a local training institution;

Best Management and Institutional Support has a 2-year rolling work plan system is in place, work and procurement plans now being signed off by MDAs prior to submission to TRC, and reporting takes place quarterly, half-yearly and annually according to agreed formats. An M&E framework has been developed with full MDA participation.

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BEST PROGRAMME AND INSTITUTIONAL SUPPORT Ctnd

CHALLENGES Limited capacities of implementing MDAs to deal with WB

procurement procedures and other operational activities. Consequently, MDAs feel over whelmed and actual implementation is slowed down. Capacity to deal with complex procurement procedures needs further strengthening in MDAs.

Ownership is a problem that is changing slowly. Appreciation of need for reforms has taken time. Shock of withdrawal of bilateral donor support to BEST Phase II. Is BEST programme activities additional work for civil servants?

Participation of international consultants in assignments can be challenging because they may not be fully conversant with the national context and often don’t appreciate problems related to reforming local government processes. This causes a perception in MDAs that reform is being imposed from the outside, which leads to a fears about the ramifications of reform and discourages their participation.

Early Exit Strategy for BEST and rolling out of the pilots to other districts (for electronic registries and services delivery) 41

Page 42: The United Republic of Tanzania Prime Minister’s Office

BEST PROGRAMME AND INSTITUTIONAL SUPPORT CtndKEY PRIORITY ISSUESAction on DPs concerns put in place – work has started and

is proceeding Exit strategy in place and MDAs take over effective

programme management and implementation.Regulatory Licensing Policy approved and a home is found

for it.Procurement processing time reduced through new

processes;

IEC Strategy in place and being implemented.Mainstreaming of BRU into Government structure takes offStrategies for rolling out of pilots to other districts and

transformed service delivery countrywide – to the furthest and most remote corner of Tanzania just the same as it is done for the citizens of Dar es Salaam and Dodoma

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Page 43: The United Republic of Tanzania Prime Minister’s Office

4.7 BEST ZANZIBAR – SUB COMPONENT Similar reforms in Zanzibar

ACHIEVEMENTS:a preliminary scoping report on land reform activities has been prepared ZIPA’s Corporate Strategy is currently being developed. Other activities focus on the conclusion of procurement processes for consultancy inputs for business entry reform, modernization of the integrated registry, scanning and indexing of existing paper records and review of land policy and land laws.

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Page 44: The United Republic of Tanzania Prime Minister’s Office

BEST ZANZIBAR –SUB COMPONENT Ctnd

KEY PRIORITY ISSUESImplementation of ZIPA Corporate Plan Priorities that are ongoing

Business Entry Exit and Security registration Digitization of Registrar General Office’s paper

records Business licensing and Regulatory licensing reform Fiscal Policy Advisor s (Fiscal/Tax Policy issues) to

MOFEA Levies and Taxation of Small and Micro Business in

Zanzibar Consultancies to be commissioned to update TCFB

report, Weight and measures Act No. 4 of 1983 and Fair Trading and Consumer Act No. 2 of 1995 44

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4.8 Major Challenges & Way forwardCritical minimum push in ongoing reforms – holistic

legal and regulatory reforms in four sectors and ongoing pilots in institutional capacity building for implementation

Government has responded to the DPs Concerns and the responses are not paper answers. There is action unfolding in the background and we shall deliver by Mid-May 2009

Taking action on DPs concerns as per responses already submitted to them: there are no fundamental issues. The most demanding is probably the need for higher involvement of higher echelons of government i.e. President, Prime Minister and Cabinet - which is already happening although this may not be generally known.

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4.8 Challenges: DP’s Concerns1. Government Commitment to regulatory reforms

1.1 Unclear high level commitment; limited private sector engagement; weak governance; and MDA commitment1.2 Commitment through 2 Cabinet decisions &:

Specific commitment not necessarily automatic – process of consultations and has now emerged thro shift to PMO;

Private sector engagement – in spirit and actual – TWGs. Let the private sector explain their own timidity?)

MDA commitment – full and apparent commitment in Land Administration, Labour Market and CDR reforms as well as Zanzibar.

1. BEST Management Issues46

Page 47: The United Republic of Tanzania Prime Minister’s Office

4.8 Development Partner’s Concerns (2)1.2 BEST Management Issues

Concerns: ambitious program scope; BRU management weaknesses; BRU vs MDAs; compliance with procurement.

Responses: Ambitious program scope being addressed through adoption

of piloting across all reform areas. Challenges related to BEST exit strategy and sustainability of reforms. For instance Land Administration reforms may take 15 - 20 years including the five years under BEST program)

BEST management: a very rapid process of metamorphosis from a unit staffed by 6 people to more than 20 and a limited lifespan = exit before end of BEST program.

BRU vs MDAs: learning process: blunt facts vs study tours

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Page 48: The United Republic of Tanzania Prime Minister’s Office

4.8 Other Challenges (3)Differences in strategy and approaches resolved in

Land Administration reforms and Team of 35 Officials and 7 Activity Leaders ready and anxious to move. Challenge is adequate seed capital for a BEST program exit and sustainable rolling out of the 15 districts pilot.

Have advised MoCAJ not to gamble away resources for modernization of the Judiciary through reluctance to recruit a Senior Legal Adviser . Successful reforms elsewhere have benefited from TA;

BARA can benefit from study tour opportunities “one-stop-shop business registries that are tools formalization”

PMO is now: championing reforms; the national registration system; and National Licensing Policy?

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The Government accepted the diagnostics as far back as 2002, has accepted the challenges on hand today, and is determined to move forward with BEST and beyond BEST. We are upbeat

about the 6 months ahead.THANK YOU

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