Promoting good financial governance in Tanzania

Context

The Government of Tanzania is planning to drive forward the industrialisation of the country. To do so, it intends to increase revenue from its own sources and implement fundamental reforms in the area of public finance. For the country to benefit from the additional income, strong government accountability is needed, but it is equally important that citizens demand this accountability.

However, several challenges are currently hindering the development plans: The government is not yet taking full advantage of the tax potential, and there are also weaknesses in the area of auditing. Auditing recommendations from the National Audit Office are not consistently implemented, and communication between taxpayers and public decision-makers is minimal.

Objective

Tanzania’s public finance system is increasingly aligned with the principles of good financial governance: transparency, efficiency and accountability.

Approach

The project operates in four areas of action:

Improving external auditing: The project supports the National Audit Office of Tanzania in planning and conducting comprehensive audits. It carries out specialised audits and formulates corresponding audit recommendations.

Promoting the internal audit system: Training and guided learning improve internal auditing in 30 selected ministries, institutions and local authorities. The consortium of Particip and Ernst & Young also provides advice to the Ministry of Finance in this regard.

Supporting the local revenue system: The project advises 21 local authorities on how to better manage own revenues efficiently and transparently in order to increase local revenue. Local professionals and leaders are given relevant training and coaching. This improves procedures relating to taxpayer registration and tax collection.

Enhancing social accountability: The project promotes dialogue between citizens and the government. It helps partners in civil society to prepare and publish information about public finances in a clear and understandable way.

Last update: June 2023