Aid for trade for Tanzania: case study

Aid for trade for Tanzania: case study

Aid for trade in Tanzania

This document considers whether a focus on aid for trade is the best way forward for Tanzania. The authors consider how best to channel aid for trade in the country and consider key instruments, trade related assistance and private sector development.

The document concludes that the transformation required by an economy like Tanzania’s to reap the benefits of the global market is formidable, yet achievable. Aid will be needed to accompany Tanzania in its overall transformation of its capacity to trade, its capacity to negotiate and addressing supply-side constraints. The value added of aid lies in strengthening the government budget process and in assisting the GoT continue its deep-rooted transformation ongoing at the macro level.

Further points include:

  • aid also has a huge role to play in revamping the country’s infrastructure including roads, ports, customs, and technology
  • there is also room for aid in private sector development projects; especially those which target improving product quality, direct interventions in private sector production, marketing, distribution, and transport systems
  • it is critical that while donors and governments negotiate more aid for trade, that considerable attention be paid to how aid will be delivered and how to improve government donor coordination, effectiveness, and accountability