Professional Documents
Culture Documents
TANZANIA
AHVP/RDGE/AHAI/COTZ DEPARTMENTS
Public Disclosure Authorized
July 2022
TABLE OF CONTENTS
ABBREVIATION AND ACRONYMS………………………………………………………………………..
PROJECT INFORMATION SHEET…………………………………………………………………………..
I. INTRODUCTION .................................................................................................................................................1
II. STRATEGIC THRUST & RATIONALE ...............................................................................................................1
2.1 MAIN DEVELOPMENT CONSTRAINTS ................................................................................................................................ 1
2.2. PROJECT LINKAGES WITH COUNTRY STRATEGY AND OBJECTIVES.................................................................................... 2
2.3 RATIONALE FOR BANK’S INTERVENTION .......................................................................................................................... 2
2.4 COORDINATION AND COOPERATION WITH TECHNICAL AND FINANCIAL PARTNERS ............................................................ 3
V. IMPLEMENTATION...........................................................................................................................................7
5.1 INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS.................................................................................................. 7
5.2 PROCUREMENT ............................................................................................................................................................... 8
5.3 FINANCIAL MANAGEMENT, DISBURSEMENT, AND AUDIT ................................................................................................... 8
5.4 MONITORING AND EVALUATION ...................................................................................................................................... 9
5.6 RISK MANAGEMENT........................................................................................................................................................ 9
VII. RECOMMENDATION....................................................................................................................................11
I. RESULTS FRAMEWORK
II. ENVIRONMENTAL AND SOCIAL COMPLIANCE NOTE (ESCON)
CURRENCY EQUIVALENTS
FISCAL YEAR
1 July – 30 June
1
Add any additional foreign or local currencies relevant to the project and their currency equivalents.
i
ABBREVIATION AND ACRONYMS
ii
IFR Interim Financial Reports
IPSAS Public Sector Accounting Standards
ISTS Integrated Safeguards Tracking System
JICA Japanese International Coorporation Ageny
LGA Local Government Authority
M&E Monitoring and Evaluation
M-Kilimo Agricultural Extension Information Platform
MoA Ministry of Agriculture
MT Metric Tons
MVIWATA The Network for Smallholder Farmers in Tanzania
NAIVS National Agriculture Input Voucher Scheme
NMB National Microfinance Bank
NPV Net Present Value
OCB Open Competitive Bidding
PAR Project Appraisal Report
PFM Public Financial Management
PIT Project Implementation Team
PMPs Procurement Methods and Procedures
PRCA Procurement Risks and Capacity Assessment
PRODAP Lake Tanganyika Integrated Regional Development Program
PSC Project Steering Committee
PTC Project Technical Committee
SA Special Account
SBDs Standard Bidding Documents
SDG Sustainable Development Goals
SUGECO Sokoine University Graduates Entrepreneurs Cooperative
TAAT Technologies for African Agricultural Transformation
TADB Tanzania Agricultural Development Bank
TAISP Tanzania Agricultural Inputs Support Project
TANIPAC Tanzania Initiative for Preventing Aflatoxin Contamination
TARI Tanzania Agricultural Research Institute
TASTA Tanzania Seed Traders Association
TFRA Tanzania Fertilizer Regulatory Authority
TOSCI Tanzania Official Seeds Certification Institute
TPHPA Tanzania Plant Health and Pesticides Authority
UA Unit of Account
UN United Nations
UNCDF United Nations Capital development Fund
USD United States Dollar
WFP World Food Program
iii
PROJECT INFORMATION SHEET
CLIENT INFORMATION
Project Name TANZANIA AGRICULTURAL INPUTS SUPPORT PROJECT
Sector AGRICULTURE
Borrower/ Recipient UNITED REPUBLIC OF TANZANIA
Project Instrument ADF 15 Loan (UA 52.59 M) and ADF 15 Grant (UA 1.82 M)
Executing Agency MINISTRY OF AGRICULTURE
PROJECT CATEGORISATION
Environmental and Social Risk
[Category 2 , [SNSC 02/07/2022]
Categorization
Does the project involve
[No]
involuntary resettlement?
Climate Safeguards
[Category 2]
Categorization:
Fragility Lens Assessment: [No]
Gender Marker System
[Category 2]
Categorization:
2 Obtain CPIA rating here - Country Policy and Institutional Assessment (afdb.org) (VPN required)
iv
ADF/ADB KEY FINANCING INFORMATION
Interest Rate: N/A
Service Charge: (%)
Commitment Fee: 0.5%
Tenor: 40Years
Grace Period: 5 Years
Amount (millions)
Source Financing Instrument
UA [Other currency]
African Development Fund 52.59 [ADF] [Loan]
African Development Fund 1.82 [ADF/Grant]
Government Counterpart Contribution: 7.86 [Cash/ In Kind]
Total Project Cost: 54.41
v
I. INTRODUCTION
1. Management submits the following report and recommendation on a proposed ADF loan of UA
52.59 million and an ADF grant of UA 1.82 million from the African Development Fund to the United Republic
of Tanzania to finance the Tanzania Agricultural Inputs Support Project within the framework of the African
Emergency Food Production Facility (AEFPF). The project results from a request of the Government of
Tanzania dated 30 May 2022 to support its efforts to mitigate the impact of the global compounded shocks caused
by the war in Ukraine on the domestic economy and preserve resilience. It is designed under the AEFPF,
approved by the Board of Directors on 20 May 2022. The project will contribute to strengthening food security
and resilience of the Tanzanian economy, with particular emphasis on increasing national agricultural
productivity and mitigating food security risks due to the Ukraine – Russia crisis and climate-induced stresses.
1
fuel, and fertilizer shocks will lead to an additional 1.2 million people falling below the poverty line3. The fertilizer
shock is most detrimental for poorer rural households, which rely more heavily on agriculture for their income
and spend a larger share of their income on food. The analysis shows that reduced fertilizer availability and use
in response to higher prices, will lead to real GDP falls by 1.3 percent.
3
Diao, Xinshen; Dorosh, Paul A.; Ellis, Mia; Pauw, Karl; Smart, Jenny; and Thurlow, James. 2022. Tanzania: Impacts
of the Ukraine and global crises on poverty and food security. Global Crisis Country Brief 11. Washington, DC:
International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.135958
2
2.4 Coordination and Cooperation with Technical and Financial Partners
9. This project was prepared in close collaboration with other Development Partners (DPs) in the agricultural
sector working group. The Food and Agricultural Oorganisation (FAO) and the United Nations Capaital
Development Fund (UNCDF) will provide technical assistance (USD 100 000) to support the deployment of
digital solutions for the scaling up of farmer registry and E-voucher systems. Japan International Cooperation
Agency (JICA) has expressed strong interest in co-financing for a total loan of USD 50 million to further scale
up rice intensification and market linkages. This project will establish operational synergies with current projects
(Annex 1.3. Similar projects financed by the Bank and other partners) and planned long-term investment
operations.
3
Component 2: Financing Fertilizer Availability and Affordability (USD 50.3 Million or 60% of total cost)
12. The demand of fertilizer currently in the country is estimated to be 698,262 metric tonnes out of which
there is a need to import about 418,883 metric tonnes to cover the deficit from local production, which stands at
43,579 metric tonnes and a balance carried over from the previous season of 117,900 metric tonnes. There is
urgent need for intervention to ensure fertilizer availability in the country. The government is supporting the
enhancement of local production capacities by the proposed exemption of raw materials and machinery directly
used in the manufacturing of fertilizers. The government also wants to reinstate bulk procurement to cover
imported fertilizer requirement. However, the current budget earmarked for fertilizer will not allow to achieve
the targeted volumes of fertilizer if private sector financing is not leveraged. The leverage is possible through
Partial Trade Credit Guarantee to suppliers for distribution of inputs to farmers via aggregators, Hub agro dealers
and retailers.
13. The objective is to leverage private sector financing to achieve the targeted volumes (200,000 MT) of
fertilizer, and make fertilizer affordable and accessible to farmer through a subsidy programme. The project will
focus on investments in two sub-components, namely (i) Financing Fertilizer Availability and (ii) Facilitating
Fertilizer Affordability and fertilizer use efficiency. The project will build upon the success of the Bank’s Africa
Fertilizer Financing Mechanism (AFFM) to provide credit guarantees to importers and aggregators. This will be
done in partnerships with CRDB Bank, National Microfinance Bank (NMB), and Tanzania Agricultural
Development Bank (TADB) (Annex 2-2:B). The project will finance the implementation of the fertilizer subsidy
program directly targeting farmers with the use of electronic vouchers to ensure effective targeting, transparency,
traceability and inclusion, especially of women and the youth. Project interventions will include: (i)
accelerate and scale up e-registration of farmers, agro-dealers and extension agents; (ii) implement e-
tagging for digitized authentication of subsidized fertilizers; (iii) deploy electronic vouchers to ensure
effective targeting, transparency, and traceability; (iv) leverage existing agro-dealer network for last
mile supply of subsidized fertilizers to farmers; and (v) leverage the existing network of extension
officers to promote fertilizer use efficiency.
Component 3: Enabling policy environment and institutional strengthening (USD 4.83 Million or 6% of
total cost)
14. The Government of Tanzania has committed to achieve self-sufficiency of wheat and edible oil, and
expand rice production by 2030. The component objective is to implement policy reforms, actions and
commitments that will lead to improved regulatory environment for the rapid uptake of certified seeds and
fertilizers. The Government has committed to the following policy actions: (i) Private Public Policy Dialogues
on subsidies programme; (ii) develop and disseminate guidelines for input subsidies, farmer registration and e-
vouchers; (iii) finalize agreement on Trade Credit Gurentees for Bulk procurement of fertilizer; (iv) develop a
National Wheat Transformation Plan; and (v) increase budget allocation to agriculture and facilitate donor
coordination and alignment. The project will also complement GoT’s current investments in strengthening
extension systems as well as agricultural data systems, monitoring and evaluation.
4
000 MT of food directly benefitting a total of 1,200,000 households corresponding to 4,800,000 persons,
including 40% women and youth. These outcomes will be achieved by the combination of investments in (i)
rapid production, multiplication and large scale delivery of certified seeds of climate resilient and market
preferred varieties of the three crops; (ii) financing bulk purchase and production of fertilizers using trade credit
guarantees; (iii) leveraging digital technologies for the delivery of smart subsidies of certified seeds and fertilizers
to ensure transparency and inclusion, especially for women; (iv) strengthening extension services to promote
grood agronomic practices, greater fertilizer use efficiency and reduction of postharvest losses; and (v)
implementing policy actions and commitments to address the structural factors that prevent modern inputs from
reaching farmers. The project theory of change is depicted in Annex 2-1.
5
Table 2: Project sources of financing
(UA Million) (USD Million) % of
Total
Project
Sources of financing Foreign Local Total Foreign Local Total Cost
African Development Fund
(Loan) 39.26 13.33 52.59 53.00 17.99 70.99 84.4
African Development Fund
(Grant) 0.94 0.88 1.82 1.27 1.19 2.46 2.9
The Government of Tanzania 0.76 7.10 7.86 1.03 9.59 10.61 12.6
Total Project Costs 40.96 21.31 62.27 55.29 28.77 84.07 100.0
V. IMPLEMENTATION
5.1 Institutional and Implementation Arrangements
25. The project will be implemented under the Ministry of Agriculture (MoA), which will be the Executing
Agency (EA). The Executing Agency shall establish a Project Steering Committee (PSC), Project Technical
Committee (PTC) and a Project Implementation Team (PIT). The Project Steering Committee (PSC) will be
chaired by the Permanent Secretary of the Ministry of Agriculture (MoA) or its representative and comprised
stakeholders from Ministries, local governments and organizations representing farmers, women and the youth
7
and relevant private-sector entities. The PTC will be an interface between the PSC and the PIT and will convene
quarterly. A Project Implementation Team (PIT) drawn from the Ministry of Agriculture will be established in
Dodoma and will be responsible for implementing the project activities at the regional and district level. The
project will recruit two technical advisers for Project Management and Procurement.
5.2 Procurement
26. Procurement of goods (including non-consultancy services), works and the acquisition of consulting
services, financed by the Bank for the project, will be carried out in accordance with the “Procurement Policy
and Methodology for Bank Group Funded Operations” (BPM), dated October 2015 and following the provisions
stated in the Financing Agreement. Specifically, Procurement would be carried out following: (i) Borrower
Procurement System (BPS): Specific Procurement Methods and Procedures (PMPs) under BPS comprising
Laws and Regulations Public Procurement Act, 2011 revised 2016 and its Regulations using the national
Standard Bidding Documents (SBDs) or other Solicitation Documents for certain transactions to be entailed
under the project; and, (ii) Bank Procurement Policy and Methodology (BPM): Bank standard PMPs, using the
relevant Bank Standard Solicitation Documents SDDs, for contracts that are either: (i) above the thresholds
indicated in Annex B5, or (ii) in case BPS is not relied upon for a specific transaction or group of transactions.
27. Procurement Risks and Capacity Assessment (PRCA): the assessment of procurement risks at the
Country, Sector, and Project levels and of procurement capacity at Ministry of Agriculture were undertaken and
presented in Technical Annex B5. The appropriate risks mitigation measures have been included in the PRCA
action plan proposed in Technical Annex B5. The Borrower undertakes to execute the following remedial
actions: (i) developing a clear Procurement Plan that will be monitored by the Bank team and the Borrower on a
regular basis; (ii) carrying out a procurement audit in accordance with BPS on an annual basis. The annual
procurement audit report shall be submitted to the Bank no later than six (6) months after the end of each financial
year.
5.5 Sustainability
33. This project is a short-term intervention that supports immediate and long-term results of improving
productivity and building resilience. Key elements of project sustainability include: (i) anchoring the project in
existing institutional structures (MoA, ASA, TARI, TOSCI, TFRA and LGA), as well as building institutional
capacity at different levels; (ii) promoting a market-led input delivery system that will not displace the private
sector so that farmers can continue to purchase seeds and fertilizers from the additional income derived from
increased production; (ii) leveraging farmer registration and digital platforms for the provision of financial
services, climate and health information; (iii) using credit guarantees as revolving funds to facilitate access to
finance and promote domestic private sector; (iv) implementing critical policy actions and commitments to
promote a more conducive environment for the development of effective private-public partnerships; (v)
establishing sustainable market linkages, including through the developmen of SAPZ project; and (vi) linking
the project to long-term investment oprations by the Bank and other development partners.
9
existing capacity. Nevertheless, continued monitoring and mitigation of risks throughout the project phases will
be critical to the success of the project.
VII. RECOMMENDATION
43. Management recommends that the Board of Directors approve the proposed ADF 15 loan of UA 52.59
million and a ADF 15 grant of UA 1.82 million from the resources of the African Development Fund to the
United Republic of Tanzania for the purposes and subject to the conditions stipulated in this report for the
Tanzania Agriculture Inputs Support Project within the framework of the African Emergency Food Production
Facility (AEFPF).
11
I. RESULTS FRAMEWORK
A PROJECT INFORMATION
❚ PROJECT NAME AND SAP CODE: P-TZ-A00-014
❚ COUNTRY: UNITED REPUBLIC OF TANZANIA
❚ PROJECT GOAL: To improve production and productivity of priority crops by scaling up delivery of quality inputs to smallholder farmers in the target
areas
a)Country ambition: promote agricultural production to ensure food security and provide inputs for industrial
production.
❚ PROJECT ALIGNMENT b) AEFPF: To boost local food production and strengthen the resilience of food systems to mitigate short- and long-
WITH COUNTRY AND CRF: term risks due to the war in Ukraine and climate-induced stresses
c) Alignment indicators: Increased food production, and (ii) Reduced food and nutrition insecurity
B RESULTS MATRIX
RESULTS CHAIN AND BASELINE TARGET MEANS OF FREQUENCY OF
UNIT
INDICATOR DESCRIPTION [2020/2021] [ 2024/25] VERIFICATION REPORTING
❚ OUTCOME 1: Improved production and productivity of wheat, sunflower and rice
Agriculture Routine
Data System (ARDS)
OUTCOME INDICATOR 1.1: Wheat: 1.5 Wheat: 3.0 Project Completion
Yields of wheat, sunflower and Tons per hectare Sunflower 1.0 Sunflower 2.0 Report Annual
rice Rice 2.0 Rice 3.0 Midterm review
Implementation status
report
Agriculture Routine
OUTCOME INDICATOR 1.2: Data System (ARDS)
Increase in production of wheat, Wheat: 70 Wheat: 500 Project Completion
sunflower and rice 000 Metric tons Sunflower 650 Sunflower 700 Report Annual
(Additional production of wheat, Rice 2700 Rice 4000 Midterm review
sunflower and rice) Implementation status
report
Agriculture Routine
Data System (ARDS)
OUTCOME INDICATOR 1.3:
Number Wheat: TBD Wheat: 600 000 Project Completion
Number of farmers adopting
disaggregated by Sunflower: TBD Sunflower: 400 000 Report Annual
Good Agricultural Practices
gender Rice: TBD Rice: 200 000 Mid term review
(GAP)
Implementation status
report
❚ OUTPUT 1: Scaled up food production of priority crops
OUTPUT INDICATOR 1.1
Number of farmers receiving
Agriculture Routine
subsidies for certified seeds of 1 200 000 (40% Quarterly, Semi-
Number 0 Data System (ARDS)
climate resilient varieties of wheat, women) annual, Annual
sunflower and rice
(disaggregated by gender)
OUTPUT INDICATOR 1.2
Agriculture Routine
Number of farmers receiving TBD 1 200 000 (40% Quarterly, Semi-
Number Data System (ARDS)
extension services (disaggregated women) annual, Annual
by gender)
OUTPUT INDICATOR 1.3
Wheat: TBD Wheat 7200 Agriculture Routine
Quantities of certified seeds Quarterly, Semi-
Metric Tons Sunflower; TBD Sunflower 5600 Data System (ARDS)
produced and delivered to farmers annual, Annual
Rice TBD Rice 16000
(wheat, sunflower, rice)
I
Agriculture Routine
OUTPUT INDICATOR 1.4 Quarterly, Semi-
percent 30 15 Data System (ARDS)
Percentage of postharvest losses annual, Annual
Progress Report
❚ OUTPUT 2: Enhanced fertiliser supply financing
OUTPUT INDICATOR 2.1: TFRA Reports Quarterly, Semi-
Tons 678,000 700,000
Fertilizer consumption quantities AFAP Reports annual, Annual
OUTPUT INDICATOR 2.2:
Agriculture Routine
Number of farmers receiving e- 1 200 000 (40% Quarterly, Semi-
Number 0 Data System (ARDS)
vouchers of fertilizers women) annual, Annual
(disaggregated by gender)
OUTPUT INDICATOR 2.3: Agriculture Routine
Quarterly, Semi-
Quantities of fertilizer availed to Tons TBD 600 000 Data System (ARDS)
annual, Annual
farmers
OUTPUT INDICATOR 2.4:
Number of private sector seed and TFRA Reports
Seed TBD Seed 20 Quarterly, Semi-
fertilizer companies accessing Number TASTA Reports
Fertilizer TBD Fertilizer 5 annual, Annual
finances for agro-inputs supply ASA Reports
and distribution
❚ OUTPUT 3: Improved policy and regulatory environment for food system
OUTPUT INDICATOR 3.1:
Number of farmers registered on 1 200 000 (40% Ministry of Agriculture Quarterly, Semi-
Number 0
the digital platforms women) Reports annual, Annual
(disaggregated by gender)
OUTPUT INDICATOR 3.2:
Ministry of Agriculture Quarterly, Semi-
Number of policies, regulations Number 0 7
Reports annual, Annual
and guidelines implemented
Budget adopted by the
OUTPUT INDICATOR 3.3:
National Assembly Quarterly, Semi-
Percentage increase in budget Percentage 3 5
Public Expenditure annual, Annual
allocated to agriculture
Review Reports
II
II. ENVIRONMENTAL AND SOCIAL COMPLIANCE NOTE (ESCON)
A. Basic Information4
Project Title: Tanzania Agricultural Input Support Project (TAISP) Project ‘’SAP code’’: P-TZ-A00-014
Country: Tanzania Lending Instrument5: DI FI CL BS GU RPA EF RBF
Project Sector: Agriculture Task Team Leader: Salum RAMADHANI
Appraisal date: 22/06/2022 Estimated Approval Date: 14/07/2022
Environmental Safeguards Officer: Emmanuel MULIGIRWA
Social Safeguards Officer: XXXXX
Environmental and Social Category: 2 Date of categorization: 01/07/22 Operation type: SO NSO PBO
Is this project processed under rapid responses to crises and emergencies? Yes No
Is this project processed under a waiver to the Integrated Safeguards System? Yes No
B. Disclosure and Compliance Monitoring
B.1 Mandatory disclosure
Environmental Assessment/Audit/System/Others (specify: Pest Management Plan (PMP)
Was/Were the document (s) disclosed prior to appraisal? Yes No NA
Date of "in-country" disclosure by the borrower/client [Date]
Date of receipt, by the Bank, of the authorization to disclose [Date]
Date of disclosure by the Bank [Date]
Environmental Assessment/Audit/System/Others (specify: NA.)
Was/Were the document (s) disclosed prior to appraisal? Yes No NA
Date of "in-country" disclosure by the borrower/client [Date]
Date of receipt, by the Bank, of the authorization to disclose [Date]
Date of disclosure by the Bank [Date]
Resettlement Action Plan/Framework/Others (specify: NA)
Was/Were the document (s) disclosed prior to appraisal? Yes No NA
Date of "in-country" disclosure by the borrower/client [Date]
Date of receipt, by the Bank, of the authorization to disclose [Date]
Date of disclosure by the Bank [Date]
Vulnerable Peoples Plan/Framework/Others (specify: NA)
Was the document disclosed prior to appraisal? Yes No NA
Date of "in-country" disclosure by the borrower/client [Date]
Date of receipt, by the Bank, of the authorization to disclose [Date]
Date of disclosure by the Bank [Date]
If in-country disclosure of any of the above documents is not expected, as per the country’s legislation, please explain why: As per the provision of the
African Emergency Food Production Facility paper approved by the Board, the preparation and disclosure of the E&S documents are deferred after Board
Approval. They will be prepared and disclosed in-country and by the Bank prior to the implementation of concerned activities.
B.2. Compliance monitoring indicators
Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures Yes No NA
related to safeguard policies?
Have costs related to environmental and social measures, including for the running of the grievance redress mechanism, been Yes No NA
included in the project cost?
Is the total amount for the full implementation for the Resettlement of affected people, as integrated in the project costs, Yes No NA
effectively mobilized and secured?
Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to Yes No NA
safeguard policies?
Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the Yes No NA
project legal documents?
C. Clearance
Is the project compliant to the Bank’s environmental and social safeguards requirements, and to be submitted to the Board?
Yes No
Prepared by: Name Signature Date
Environmental Safeguards Officer: Emmanuel MULIGIRWA 30/06/22
Social Safeguards Officer: XXXXX
Task Team Leader: Salum RAMADHANI 30/06/22
Submitted by:
Sector Director: Martin FREGENE 02/07/22
Cleared by:
Director SNSC: Maman-Sani ISSA 02/07/22
4
Note: This ESCON shall be appended to project appraisal reports/documents before Senior Management and/or Board approvals.
5
DI=Direct Investment; FI=Financial Intermediary; CL=Corporate Loan; BS=Budget Support; GU=Guarantee; RPA=Risk Purchase Agreement; EF=Equity Financing;
RBF=Results Based Financing.
III