MKUKUTA ANNUAL IMPLEMENTATION REPORT

1. MKUKUTA ANNUAL IMPLEMENTATION REPORT GBS Annual Review Meeting, November 24th – 27th, 2008. Dar-Es-Salaam.

2. OUTLINE • Background • Introduction • Performance • Lessons and Challenges • Issues for further dialogue

3. 1.0 BACKGROUND • MKUKUTA Implementation thro’ government, • Processes, • Core reforms • Sector Development programmes • Interventions (projects/programmes) by Non State Actors. • Private sector • Civil societies • Faith Based Organizations • Communities • Thus, MAIR has been prepared from impl. Reports of these actors

4. 2.0 INTRODUCTION • The MKUKUTA Annual Implementation Report (2007/8) provides an overview of performance, challenges, lessons and way forward on three clusters of MKUKUTA. • Progress in financing, monitoring and evaluation. • It also includes progress on other processes and reforms, and how these have contributed to achievements of MKUKUTA outcomes. • The primary objective of MAIR is to provide progress and stimulate dialogue to inform future plans.

5. Contd • MAIR limits its scope to reporting on overview recognizing that details are available at MDAs and NSAs reports. • The report has attempted to link performance results with expenditure though to a limited extent. • Work is ongoing to harmonize the softwares • The MAIR 2007/08 has updated status of MKUKUTA indicators within the respective clusters. • Contribution of the Non State Actors in achieving MKUKUTA goals. • Data and information for some goals have not changed significantly from the previous report.

6. 3.1 PERFORMANCE: Growth and Reduction of Income Poverty • Most indicators have shown improving trends. • Inflation declined from 7.3 percent in 2006 to 7.0 percent in 2007 but still above the target of 5.0 percent. The high inflation was attributed to the global oil and commodity prices. • Tax revenue collection as percentage of GDP registered impressive performance • Credit to the private sector has grown in 2007/08, with commercial banks credit to the private sector recording an average growth rate well above the annual target. • The national debt has increased but within sustainable levels. • The value of Foreign Direct Investment (FDI) flow increased by 8.0 percent to USD 512.5 million compared to USD 474.7 million in 2006.

7. Cont’d • On employment generation - over 437,205 new jobs were created (About 44% of the target). • Real GDP growth increased from 6.7 percent in 2006 to 7.1 percent in 2007 despite the economic shocks. • Manufacturing sector continued to be among the most attractive destination of investment projects followed by tourism. • Improvement in real GDP growth resulted in an increase in the per capita income to Tshs. 548,388 which is an increase of 14.6 percent at 2001 prices.

8. 3.2 PERFORMANCE: Quality of Life and Social Wellbeing • Government in collaboration with stakeholders continued to implement various programs and reforms across social sectors with the aim of enhancing the quality of life and social wellbeing of the people. • Education • Implementation of the Education Sector Development Programmes has continued to produce impressive results. • the pre-primary education Net Enrolment Ratio increased from 33.1 to 36.2 percent while Gross Enrolment Ratio increased from 35.2 to 38.1 percent in 2008. • Enrolment of children with disabilities increased from 685 in 2007 to 2,146 in 2008.

9. Cont’d • Primary Education: • The net primary school enrolment reached 97.2 percent in 2008 which is slight lower from the MKUKUTA target of 99 percent. • the transition rate from standard VII to secondary schools increased to 56.7 percent in 2007 which is above MKUKUTA target of 50 percent. • Enrolment of orphans increased from 748,641 in 2007 to 915,234 in 2008. • Enrollment of children with disability increased from 24,003 in 2007 to 34,661 in 2008. • However the challenge has continue to be the need to ensure the increased enrolment simultaneously expand with sanitation facilities of which though improved in terms of toilets reaching a ratio of 1:60 for the consecutive past three years they are still considered inadequate as compared to the target of 1:20 (girls) and 1:25 (boys) by 2010.

10. Cont’d • Secondary Education: • The secondary school net enrolment rate reached 23.5 percent in 2008 as compared to 10.1 percent in 2005 and the MKUKUTA target of 25 percent. • The progress has mainly been due to the out-turn improvement of the number completing primary schools.

11. Cont’d • Higher Education: • The number of student enrolled to higher learning institutions has increased from 55,134 in 2005/06 academic year to 75,346 in 2006/07 academic year. • Out of these, 35 percent were female. • The increase is mainly due to financial support from the Higher Education Student Loan Board (HESLB).

12. Cont’d • Health Sector: • Various interventions by government and other actors continue to be directed to improve the health sector under MMAM • providing preventive education to communities, • Vaccination campaigns • control of infectious diseases like malaria, tuberculosis and HIV/AIDS.

13. Cont’d • There has been some gains in child and maternal Health • The reported proportion of children protected at birth reached 73% in 2007 • Malaria cases has continued to decline leading to reduced under five mortality rate • Vaccination against Measles has reached 85% • Maternal mortality rate remains relative high (at 578/100,000) compared to MKUKUTA target of 265 per 100,000 by the year 2010.

14. Cont’d • HIV/AIDS: • Efforts have been put in place to expand services to combat HIV/AIDS under TACAIDS and NACP • management of Sexually Transmitted Infections (STIs), • Voluntary HIV testing and counseling , • Prevention of Mother to Child Transmission (PMTCT) and safe blood • PMTCT services has been expanded to 1600 sites • By December 2007, about 713,506 (47 percent) pregnant women out of 1,509,000 received HIV testing in PMTCT sites. • By December 2007 about 42,595 HIV positive pregnant women (34 percent) out of 123,738 estimated HIV positive pregnant women in the country received ARV prophylaxis to prevent MTCT.

15. …Cont’d • The government and stakeholders scaled up implementation of TB/HIV Collaborative programme • TB treatment success rate has reached 84.8 (2008) compared to 81.3 (2004) • Number of TB cases per 100,000 pop declined from 186 (2004) to 158 (2007)

16. Cont’d Water Sector: • The government is implementing the Water Sector Development Programme • Rural water supply • Urban water supply, and • Sanitation • The proportion of the population with access to clean and safe water in rural areas increased marginally from 55.7 percent in 2006/07 to 57.1 percent in 2007/08 • The increase is equal to an increase of service coverage to additional 1.1 million people • Water supply coverage in urban areas increased marginally from 78% to 79.9 in 2007/8 • HBS data indicate a decline, in general, of the population with access to clean and safe water

17. Cont’d • Social Protection • The government is at an advanced stage in preparing the National Multi-sectoral Social Protection Framework (NSPF) • as a guiding tool in this area. • In 2007/8 government continued to assist special needy groups • Provided support to 17 elderly homes and three vocational training colleges specialized on people with disabilities. • Supported vocational training for 270 orphans, children in remands and rehabilitation centers. • a total of 421,557 children with disabilities were identified; of which 202,347 were girls.

18. 3.3 PERFORMANCE: Governance and Accountability • The Government continued scaling up implementation of the National Framework on Good Governance. • The focus areas included: • people's participation in decision making for social, political and economic development; • private sector and regulatory framework; • constitutionalism, rule of law, administration of justice and human rights protection; • gender equity and equality; • accountability, transparency, and integrity in the management of public affairs; • electoral democracy; and • public service.

19. Cont’d • Some progress have been made in the implementation of the Framework • the Government updated and reviewed 12 laws • during the same period 34 bills were prepared out of which 23 bills were passed by the parliament. • the Government established a Community/People’s Website (www.wananchi.go.tz) to enhance communication between government and the public.

20. Cont’d • In ensuring effective public service delivery, the government is implementing various strategies to institutionalize the D by D process. • Local Government Reform Programme where 14 Ministries were assessed to evaluate the extent to which they are D by D compliant. • The process has resulted into increased efficiency in usage of the LGAs received funds. • The reform also enhanced transparency in financial allocation as well as accuracy of allocation to functions that have been identified.

21. Cont’d • On Corruption • PCCB investigated a total of 2,887 cases out of which 1,009 investigations were completed accounting for about 35% of the total backlog. • A total of 378 convictions cases were sanctioned for prosecution in courts • Five grand corruption cases were submitted to the DPP

22. Cont’d • the government has put in place measures to enhance public service delivery • revision of the Medium- Term Pay Policy aimed at ensuring that public servants are motivated. • employed 36,331 graduates across MDAs. • measures have been taken to strengthen the capacity of judicial system. • increased the budget to the sector from Tshs. 32.7 billion in 2005 to Tshs. 47.9 billion in 2007. • increased number of Judges for the Court of Appeal and the High Court. • the governments continued with efforts to ensure human rights are improved in prisons. • Such as expansion of prisons’ dormitories to improve the accommodation capacity to 27,653 prisoners and inmates in 2007/08 compared to 22,669 in 2006/07. • Improved transport facilities

23. 3.4. MKUKUTA Financing • The implementation of MKUKUTA demanded a substantial amount of resources from all stakeholders: the government Non-State Actors. • However the government has continued to be the largest financier • The Plan and Budget Guidelines (PBGs) remained the main Government framework for resource allocation to MKUKUTA priorities. • The Strategic Budget Allocation System (SBAS) has been used to facilitate strategic resource allocation in line with the MKUKUTA clusters and goals. • The resources were allocated into areas that support pro – poor growth and provide “quick win” opportunities.

24. Cont’d • In 2007/08, about 62.7 percent of the total budget allocations were set aside for the implementation of MKUKUTA interventions. • Out of that, 49.37 per cent was for Cluster 1 • 29.48 percent for Cluster 2, and • 21.15 percent for Cluster 3

25. 3.5. Monitoring and Evaluation • Monitoring and evaluation activities for the implementation of MKUKUTA have continued to be guided by the MKUKUTA Monitoring System (MMS) and sectors’ and local authorities’ M&E systems • The institutional set up for MKUKUTA monitoring have continued to function • Monitoring outputs during the year include • an electronic newsletter known as “MKUKUTA Highlights” • MKUKUTA Annual Implementation Report 2007/8 • the Poverty and Human Development Report (PHDR) 2007 • various policy briefs • a country’s Service Provision Assessment

26. 4.0. CHALLENGES • Major challenges encountered in implementing MKUKUTA Cluster I include: • High prices of petroleum products in the world market increased the cost of running power plants. • Power cuts due to lack of regular maintenance of transmission and distribution systems affecting service • provision to both industrial and domestic consumers; • Low Absorption of Maintenance Fund

27. Cont’d • Timing and late procurement of works • Limited contracting capacity, lack of requisite equipment, inadequate procurement planning and contract management, limited supervision staff, and inadequate supervisory skills. • Absence of long term -financing mechanism for private sector investment in the sector (rural financing, credit schemes, risk management schemes etc) has discouraged the would-be investors in the sector.

28. Cont’d • In social Well being and quality of life, a number of challenges have been identified • Issues of quality • Drug Availability and Cost Issues • Issues of human resources • Rapid rising population, including special groups • Procurement issues • Issues around financing

29. Cont’d • Some of the challenges in governance and accountability include • Management and coordination of core reforms. There are still overlaps which reforms coordination unit should address. • Enhancement and strengthening of the ownership of reform programs especially the LGRP as well as mainstreaming and integrating implementation arrangements in the national planning and budgeting process. • The need to expand the usage of Kiswahili language by a wider population world wide

30. 5.0. ISSUES FOR FURTHER DIALOGUE • Sustained GDP growth with marginal decline in poverty • Agriculture mechanisation and poverty reduction • Land tenure policy • Small scale vs large scale farming • Energy crisis • Dependence on hydro sources • Growing appetite for bio fuel vs food security • Education tailored for growth strategy • Population issues