Activities in Tanzania

Local Government Development Grant Basket Fund

As part of the decentralization process, the government of Tanzania has introduced a grant system, which allows Local Government Authorities to spend the transferred funds without any conditionality according to their priority development activities. A basket fund system was established by the Government of Tanzania in cooperation with bilateral development partners and the World Bank, whereby Japan has been contributing annually 100 million yen for the past three years since 2008. Allocation for each Local Government Authority resourced from this basket fund is determined by annual performance assessment exercise of the previous year, while appropriateness of the grants expenditure is closely monitored as to impact born in the Local Government Authority's area of jurisdiction. The LGDG system's significant contribution has been recently recognized especially on the Local Government Authorities' capacity enhancement both in terms of administration and development process management.

Japan also provides support to strengthen capacity of Local Government Authorities to utilize this basket fund through various technical cooperation projects, It is expected that the combination of financial support through the basket fund and technical cooperation projects will result in improved public and financial administration at local government level.