United Nations Development Programme in Tanzania

Tanzania weathered 2012 well in the face of global economic and climate change challenges, regional threats to peace and security, and mounting national economic, social and environmental stress. This includes sustained economic growth, preservation of internal peace and security, contributions to regional/international peace and security and advances in democratic development.

The economy grew by 6.5 per cent in 2012-well above the regional and global averages-despite a significant slowdown in its main trading partner economies. Limited exposure to global financial markets, high gold prices and continued flow of foreign direct investments to the extractive sector seem to have somewhat shielded Tanzania from the global shocks.

In 2012 and into 2013 Tanzania also made important governance advances-it was among the top 10 best governed in Africa (sixth excluding small island States) as per the Mo Ibrahim Index. Yet, the fight against corruption remains a significant national and development challenge.

Development cooperation continues to play a significant role in financing of development activities, although there are signs of a decreasing share of ODA financing of the national budget following a deliberate Government policy measure to reduce national aid dependence (Net ODA received i.e. % of gross capital formation received in 2010 was 44.78, its highest value recorded over the past 2 decades was 106.47 in 1992, and its lowest value was 37.79 in 2008)