Agriculture Sector development Programme - SBL - Phase II


Overview

  • Reference: P-TZ-AA0-020
  • Appraisal Date: 01/10/2011
  • Board Presentation: 15/01/2012
  • Status: PipelinePIPE
  • Implementing Agency: MIN OF AGRIC, FOOD,COOPERATIVES
  • Location: NATIONAL

Description

The project will have three inter-related technical The programme design incorporates the lessons learnt from past and on-going national and donor interventions in Tanzania. The Programme comprises two components with eight sub-components, as detailed below: Component 1: Local Level Support This component supports sector activities at village, ward and district levels and will focus on three sub-components

(i) local agricultural investments,

(ii) local agricultural services, and

(iii) local agricultural capacity building and reform. Component 2: National Level Support This component will focus on five sub-components which are as follows:

(i) Agricultural Services,

(ii) National Irrigation Development,

(iii) Marketing and Private Sector Development,

(iv) Food Security, and

(v) Coordination, Monitoring and Evaluation.


Rationale

On the basis of the performance of the macro-economic and fiduciary environment in Tanzania and the problems usually associated with multiple projects the Government and the Development Partners have agreed to adopt the following principle in the management of development assistance as laid down in the Joint Assistance Strategy (JAST): ownership, harmonization, alignment, managing for results, and mutual accountability. These building blocks have constituted the cornerstones for the formulation and the proposed support to the programme. Hence, the Government and the Donor community's commitment to have the ASDP as the sole programme framework for the development of the agriculture sector . The key design principles envisioned in the ASDP include

(i) Increasing control of resources by beneficiaries: it stresses the importance of increasing the voice of farmers in local planning processes and in increasing their control in the design and implementation of priority investments and in the types of service that they need. It aims to empower farmers through placing greater control of resource allocations in the hands of groups and communities to improve the relevance and responsiveness of services;

(ii) Pluralism in service provision: It aims to provide a wider choice in service providers to increase cost-effectiveness and competition. The private sector will be enabled to compete for sector service provision contracts with a de-linking of public funding from delivery;

(iii) Results-based resource transfers: Resources allocations to LGAs will be more transparent and equitable through adopting and extending the local government grant system. The incentive for LGAs to use their funds effectively will be promoted through annual assessments, while support will be given to assist those LGAs that perform poorly to build their capacity in key management areas; and

(iv) Integration with government systems: existing government financing and planning systems (the MTEF, DADP, grant transfers) will be used to ensure sustainability, strengthen alignment with government priorities and avoid un-harmonised, project-based approaches with parallel implementation mechanisms. The Bank's proposed financing mechanism for the ASDP-I is Sector Budget Support, making use of the national systems without creating parallel structures for implementation, procurement and financial management in line with the JAST principles and the Paris Declaration. The rationale behind the use of National systems stems from, among others, the fact that Tanzania, with the support of donors, has successfully developed and piloted a mechanism for channelling funds directly to the Districts. The mechanism, known as the Local Government Capital Development Grant (LGCDG) was developed by the Government with the objective of making it the mechanism through which all development funds will be transferred to LGAs. The funds are transferred to LGAs through Capital Development Grants (CDG) and Capacity Building Grants (CBGs). Agriculture is of strategic importance, not only as a means of increasing household incomes amongst a large number of the population's disadvantaged and poor, but also, in fulfilling household nutritional needs, increasing foreign exchange earnings and providing raw materials for the agro-industry. By improving the capacities of farmers and the District officials, on the one hand, and on the other hand, by supporting the provision of rural infrastructural facilities, the programme will directly contribute towards increasing farm incomes for its clients and enhancing food security. It will also contribute to the sector goal of promoting national economic growth and reducing poverty and food insecurity, which are consistent with the country's vision as well as its agricultural strategy. Finally, the programme will assist in alleviating the main constraints that presently hamper the development of the agriculture sector.


Benefits

1. The development of the agriculture sector, the mainstay of the economy of Tanzania will go a long way in increasing its GDP's share and towards the reduction of poverty and food insecurity. The successful achievements of the programme's expected results will undoubtedly have significant positive impacts on the targeted communities, especially the farmers. It is estimated that the programme will impact directly 3 million households, of whom approximately 25% are female headed. With emphasis on empowering local communities through greater consultation and participation in planning and deciding on the type of investment or sub-project/s, the programme methodology will ensure ownership of direct beneficiaries and the sustainability of the developmental results. Agriculture infrastructures (e.g. small-scale irrigation scheme) will increase yields and reduce climate vulnerabilities resulting in secure production and grain reserve as indicated in the ASDS 2.Estimating the direct benefits generated by the ASDP-I is complicated by the participatory nature of the programme, which will support investments in community infrastructure or farmer group-based technologies that cannot be known in advance. Nonetheless, the main outputs of the programme, greater responsiveness and efficiency of research and extension services and increased investment in productive or public assets, are expected to generate a range of benefits including higher farm productivity and incomes, greater farmer voice in decision-making and more cost effective public expenditures. By simultaneously reacting to the specific needs of farmers and mobilising more effective service delivery systems and investments, the programme will provide participating communities with the new skills and technologies that best respond to local obstacles and opportunities for growth.


Key contacts

AMADOU Ibrahim Ahamed - OSAN1


Estimated Cost

Amount
UAC 44

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