Tanzania Digital Tanzania Project

Public Disclosure Authorized
FOR OFFICIAL USE ONLY

Report No: PAD2673
INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR 105.9 MILLION

(US$150 MILLION EQUIVALENT)
TO THE
UNITED REPUBLIC OF TANZANIA
FOR THE
DIGITAL TANZANIA PROJECT
May 6, 2021
Digital Development Global Practice

Eastern and Southern Africa Region
This document has a restricted distribution and may be used by recipients only in the performance of
their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
CURRENCY EQUIVALENTS
(Exchange Rate Effective March 31, 2021)
Currency Unit = Tanzanian Shilling (TZS)

US$1.00 = TZS 2,319.00
US$1.00 = SDR 0.71
FISCAL YEAR
July 1 – June 30
Regional Vice President: Hafez M. H. Ghanem

Country Director: Mara K. Warwick
Regional Director: Boutheina Guermazi
Practice Manager: Isabel Neto
Task Team Leaders: Timothy Kelly, Maria Claudia Pachon
ABBREVIATIONS AND ACRONYMS
AFD Agence Française de Développement / French Development Agency

AfDB African Development Bank
AI Artificial Intelligence
AIDS Acquired Immune Deficiency Syndrome
API Application Programming Interface
ASA Advisory Services and Analytics
ASDP Agricultural Sector Development Program
AWPB Annual Work Plan and Budget
BoT Bank of Tanzania
BRELA Business Registration and Licensing Agency
CAG Controller and Auditor General
CAGR Compound Annual Growth Rate
CAPEX Capital Expenditure
CE Citizen Engagement
CSO Civil Society Organization
CSIO Chief Information Security Officer
C-ESMP Contractor Environment and Social Management Plan
C-ESHSMP Contractor Environment, Social, Health and Safety Management Plan
CPF Country Partnership Framework
COSTECH Commission for Science and Technology
COVAX COVID-19 Vaccines Global Access Facility
COVID-19 Coronavirus Disease 2019
CQS Selection Based on the Consultants’ Qualifications
DA Designated Account
DDP Digital Development Partnership
DE4A Digital Economy for Africa
DFIL Disbursements and Financial Information Letter
DHS Demographic and Health Survey
DPF Development Policy Financing
DPMU Director of Procurement Unit
DSL Digital Subscriber Line
DSSI Debt Service Suspension Initiative
DTP Digital Tanzania Project
eGA e-Government Authority
ES Environmental Specialist
ESA Environmental and Social Assessment
ESCP Environmental and Social Commitment Plan
ESF Environmental and Social Framework
ESIA Environmental and Social Impact Assessment
ESMF Environmental and Social Management Framework
ESMP Environmental and Social Management Plan
ESRM Environmental and Social Risk Management
ESS Environmental and Social Standards
FCS Fragile and Conflict Situations
FDI Foreign Direct Investment
FinTech Financial Technology
FM Financial Management
FPM Financial Procedure Manual
FYDP Five Year Development Plan
G2B Government to Business
G2C Government to Citizens
G2E Government to Public Employees
G2G Government to Government
GBV Gender-Based Violence
GDP Gross Domestic Product
GEMS Geo-Enabling Monitoring and Supervision initiative
GePG Government Electronic Payment Gateway
GFS Government Financial System
GHG Greenhouse Gas
GNI Gross National Income
GoT Government of Tanzania
GovNet Government Network
GovTech Government Technology
GRM Grievance Redress Mechanism
GRS Grievance Redress Service
GSMA Global System for Mobile Communications Association
HAPS High-Altitude Platform Systems
HIV Human Immunodeficiency Virus
HLI Higher Learning Institution
HR Human Resources
IBRD International Bank for Reconstruction and Development
IA Implementing Agencies
ICT Information and Communication Technology
ICTC Information and Communication Technologies Commission
ICTA Information and Communication Technology Agency of Sri Lanka
ID Identification
IDA International Development Association
IFR Interim Financial Report
IMF International Monetary Fund
IoT Internet of Things
IPF Investment Project Financing
ISR Implementation Status and Results Report
IRU Indefeasible Right of Use
IT Information Technology
ITU International Telecommunication Union
KPI Key Performance Indicator
LGA Local Government Authority
LMIC Lower-Middle-Income Country
LMP Labor Management Plan
M&E Monitoring and Evaluation
MCIT Ministry of Communications and Information Technology
MDAs Ministries, Departments and Agencies
MoEST Ministry of Education, Science and Technology
MFD Maximizing Finance for Development
MIT Ministry of Industry and Trade
MNOs Mobile Network Operators
MoFP Ministry of Finance and Planning
MPA Multi-phase Programmatic Approach
MWTC Ministry of Works, Transport and Communications (former)
NBS National Bureau of Statistics
NCB National Competitive Bidding
NDC National Data Center
NGO Non-Governmental Organization
NICTBB National ICT Broadband Backbone
NIDC National Internet Data Center
NISMIS National ICT Statistical Management Information System
NOC Network Operations Center
NPP National Procurement Procedures
NPS National Payment System
NPV Net Present Value
NSDI National Spatial Data Infrastructure
OSS Operations Systems Support
OSSC One Stop Service Center
PAD Project Appraisal Document
PAP Project-Affected Person
PCM Private Capital Mobilization
PDO Project Development Objective
PFS Project Financial Statement
PIM Project Implementation Manual
PIU Project Implementation Unit
PLR Performance and Learning Review
PO-PSMGG President’s Office - Public Service Management and Good Governance
PO-RALG President’s Office - Regional Administration and Local Government
PMU Procurement Management Unit
PP Procurement Plan
PPA Public Procurement Act
PPE Personal Protective Equipment
PPP Public Private Partnership
PPRA Public Procurement Regulatory Authority
PPSD Project Procurement Strategy for Development
PS Permanent Secretary
PSC Project Steering Committee
QCBS Quality- and Cost-Based Selection
RAP Resettlement Action Plan
RCIP-TZ Regional Communications Infrastructure Program in Tanzania (P111432)
REA Rural Energy Agency
RFQ Request for Quotations
RPF Resettlement Policy Framework
SDR Special Drawing Rights
SEA Sexual Exploitation and Abuse
SEP Stakeholder Engagement Plan
SEQUIP Secondary Education Quality Improvement Program
SIM Subscriber Identity Module
SME Small and Medium Enterprises
SMS Short Message Service
SPD Standard Procurement Document
SORT Systematic Operations Risk-rating Tool
SS Social Specialist
STEM Science, Technology, Engineering and Mathematics
STEP Systematic Tracking of Exchanges in Procurement
SWIFT Survey of Well-being via Instant and Frequent Tracking
TA Technical Assistance
TARURA Tanzania Urban and Rural Roads Agency
TC Technical Committee
TCRA Tanzania Communication Regulatory Authority
TDV Tanzania Development Vision
TISS Tanzania Inter-Banking Settlement System
ToR Terms of Reference
TPC Tanzania Posts Corporation
TRA Tanzania Revenue Authority
TTCL Tanzania Telecommunications Corporation Limited
TTL Task Team Leader
TVWS Television White Spaces
UCSAF Universal Communications Service Access Fund
UN United Nations
UNDB United Nations Development Business
UNICEF United Nations Children's Fund
UPU Universal Postal Union
URT United Republic of Tanzania
USF Universal Service Fund
VGP Vulnerable Groups Plan
VGPF Vulnerable Groups Planning Framework
WB World Bank
WBG World Bank Group
WDR World Development Report
WHO World Health Organization
The World Bank
Digital Tanzania Project (P160766)
TABLE OF CONTENTS
DATASHEET ........................................................................................................................... 1
I. STRATEGIC CONTEXT ...................................................................................................... 7
A. Country Context................................................................................................................................ 7
B. Sectoral and Institutional Context .................................................................................................... 9
C. Relevance to Higher Level Objectives............................................................................................. 11
II. PROJECT DESCRIPTION.................................................................................................. 13
A. Project Development Objective ..................................................................................................... 13
B. Project Components ....................................................................................................................... 13
C. Project Beneficiaries ....................................................................................................................... 21
D. Results Chain .................................................................................................................................. 21
E. Rationale for Bank Involvement and Role of Partners ................................................................... 22
F. Lessons Learned and Reflected in the Project Design .................................................................... 23
III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 24
A. Institutional and Implementation Arrangements .......................................................................... 24
B. Results Monitoring and Evaluation Arrangements......................................................................... 26
C. Sustainability................................................................................................................................... 26
IV. PROJECT APPRAISAL SUMMARY ................................................................................... 27
A. Technical, Economic and Financial Analysis ................................................................................... 27
B. Fiduciary.......................................................................................................................................... 28
C. Legal Operational Policies ............................................................................................................... 30
D. Environmental and Social Standards .............................................................................................. 30
V. GRIEVANCE REDRESS SERVICES ..................................................................................... 35
VI. KEY RISKS ..................................................................................................................... 35
VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 39
ANNEX 1: Implementation Arrangements and Support Plan .......................................... 48
ANNEX 2: Detailed Project Description .......................................................................... 59
ANNEX 3: Economic and Financial Analysis .................................................................... 74
ANNEX 4: How Digital Tanzania will contribute to meeting IDA-19 digital commitments 81
ANNEX 5: Climate Co-Benefits ....................................................................................... 83
ANNEX 6: World Bank Group COVID-19 Country Program Response Note – Tanzania..... 85
ANNEX 7: Identification of gender barriers and opportunities and targeted actions ....... 88
DATASHEET
BASIC INFORMATION
BASIC_INFO_TABLE
Country(ies) Project Name
Tanzania Digital Tanzania Project
Project ID Financing Instrument Environmental and Social Risk Classification
Investment Project
P160766 Moderate
Financing
Financing & Implementation Modalities
[ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC)
[ ] Series of Projects (SOP) [ ] Fragile State(s)

[ ] Performance-Based Conditions (PBCs) [ ] Small State(s)
[ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country
[ ] Project-Based Guarantee [ ] Conflict

[ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster
[ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Enhanced Implementation Support (HEIS)
Expected Approval Date Expected Closing Date
27-May-2021 31-Oct-2026
Bank/IFC Collaboration
No
Proposed Development Objective(s)
To increase access to high quality broadband internet services for government, businesses and citizens, and to
improve the government's capacity to deliver digital public services.
Components
Component Name Cost (US$, millions)

1. Digital Ecosystem 28.70
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2. Digital Connectivity 62.50
3. Digital Platforms and Services 47.80
4. Project Management 3.50
Unallocated 7.50
Organizations
Borrower: United Republic of Tanzania

Implementing Agency: President's Office - Public Service Management and Good Governance (PO-
PSMGG)
Ministry of Communications and Information Technology (MCIT)
PROJECT FINANCING DATA (US$, Millions)
SUMMARY -NewFin1
Total Project Cost 150.00
Total Financing 150.00
of which IBRD/IDA 150.00

Financing Gap 0.00
DETAILS -NewFinEnh1
World Bank Group Financing
International Development Association (IDA) 150.00
IDA Credit 150.00
IDA Resources (in US$, Millions)
Credit Amount Grant Amount Guarantee Amount Total Amount

Tanzania 150.00 0.00 0.00 150.00
National PBA 150.00 0.00 0.00 150.00
Total 150.00 0.00 0.00 150.00
Expected Disbursements (in US$, Millions)
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WB Fiscal Year 2021 2022 2023 2024 2025 2026 2027
Annual 0.00 27.57 48.74 27.95 20.68 17.92 5.36

Cumulative 0.00 27.57 76.31 104.26 124.94 142.86 148.21
INSTITUTIONAL DATA
Practice Area (Lead) Contributing Practice Areas

Digital Development Governance
Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks
SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)
Risk Category Rating
1. Political and Governance ⚫ Moderate
2. Macroeconomic ⚫ Moderate
3. Sector Strategies and Policies ⚫ Moderate
4. Technical Design of Project or Program ⚫ Moderate
5. Institutional Capacity for Implementation and Sustainability ⚫ Moderate
6. Fiduciary ⚫ Substantial
7. Environment and Social ⚫ Moderate
8. Stakeholders ⚫ Moderate
9. Other ⚫ Low
10. Overall ⚫ Moderate
COMPLIANCE
Policy
Does the project depart from the CPF in content or in other significant respects?
[ ] Yes [✓] No
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Does the project require any waivers of Bank policies?

[ ] Yes [✓] No
Environmental and Social Standards Relevance Given its Context at the Time of Appraisal
E & S Standards Relevance
Assessment and Management of Environmental and Social Risks and Impacts Relevant
Stakeholder Engagement and Information Disclosure Relevant
Labor and Working Conditions Relevant
Resource Efficiency and Pollution Prevention and Management Relevant
Community Health and Safety Relevant
Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant
Biodiversity Conservation and Sustainable Management of Living Natural Relevant

Resources
Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant
Local Communities
Cultural Heritage Relevant
Financial Intermediaries Not Currently Relevant
NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential
environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review
Summary (ESRS).
Legal Covenants
Sections and Description

Section I.A.2 of Schedule 2 to the Financing Agreement:
By no later than three (3) months after effectiveness, GoT, through MCIT, shall establish, and thereafter maintain
throughout the Project’s implementation period, a committee chaired by the Permanent Secretary of the MCIT
with the Permanent Secretary of the PO-PSMGG as vice-chair, with composition, functions, responsibilities and
resources, satisfactory to the Association, for purposes of: (a) providing overall strategic guidance on the
implementation of the Project; (b) ensuring interinstitutional coordination; (c) approving the yearly Annual Work
Plan and Budgets; and (d) carrying out high level monitoring and supervision of Project activities, including
reviewing the Project Reports, as set forth in the Project Implementation Manual (“Project Steering Committee” or
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“PSC”).

Section I.A.5 of Schedule 2 to the Financing Agreement:
By no later than three (3) months after the Effective Date, GoT, through the PSC, shall establish, and thereafter
maintain at all times during the implementation of the Project, a technical committee (the “Technical
Committee”), chaired by the Director of ICT, MCIT, and comprising representatives of a wider range of stakeholders
(i.e. MDAs, academia, and the private sector, as required per the agenda items); which committee shall be provided
with an adequate structure, functions, terms of reference and resources satisfactory to the Association, as set forth
in the PIM, in order to advise and make recommendations on specific technical aspects of Project implementation,
as required by the PSC and/or the PIU

Sections I.E. 1& 2 of the Schedule 2 to the Financing Agreement
GOT shall, and shall cause the OSSC operators and mobile network operators and other service providers, to ensure
that the Project is: (i) carried out in accordance with the Environmental and Social Standards in a manner
acceptable to the Association; (ii) implemented in accordance with the ESCP in a manner acceptable to the
Association, including actions and measure specified therein to be implemented with due diligence and efficiency,
the provision of sufficient funds therefor, and the maintenance of policies, procedures and retention of qualified
staff in adequate numbers, as specified in the ESCP .

Section I.B.1 & 2 of Schedule 2 to the Financing Agreement:
GoT shall: (a) by not later than the Effective Date, have prepared, through the PIU, and formally adopted, a Project
implementation manual, in a manner and substance acceptable to the Association; and (b) ensure that the Project
is carried out in accordance with the Project Implementation Manual.

Section I.D.1 of Schedule 2 to the Financing Agreement:
GoT shall, by no later than April 30 of each year during the implementation of the Project, prepare and furnish to
the Association an annual work plan and budget containing all activities proposed to be included in the Project
during the following Fiscal Year, and the proposed financing plan for the expenditures required thereunder.
Conditions
Type Financing source Description

Effectiveness IBRD/IDA Clause 4.01 a) of Article IV of the Financing Agreement
The Project Implementation Manual (“PIM”) has been prepared and
adopted in form and substance satisfactory to the Association
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Effectiveness IBRD/IDA Clause 4.01 b) of Article IV of the Financing Agreement.
The Project Implementation Unit has been established and staffed
with at least a Project coordinator, a procurement specialist, a
financial management specialist, an environmental specialist and a
social specialist, in a manner and substance satisfactory to the
Association
Effectiveness IBRD/IDA Clause 4.01 c) of Article IV of the Financing Agreement.
GoT has prepared, cleared with the Association, and publicly
disclosed the Labor Management Plan and Vulnerable Groups
Planning Framework, in a manner and substance satisfactory to the
Association
Effectiveness IBRD/IDA Clause 4.01 d) of Article IV of the Financing Agreement.
GoT has established and operationalized the grievance redress
mechanism
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I. STRATEGIC CONTEXT
A. Country Context
1. Tanzania is a geographically large, diverse, and strategically important lower-middle-income country (LMIC) on
the Indian Ocean. Out of 54 African countries, Tanzania is the fifth largest in terms of population, the ninth largest in
terms of the size of economy (for example, by gross domestic product [GDP] in US dollars), and the thirteenth largest in
terms of geographical area. Solid income growth over two decades has led the country to reach LMIC status in July 2020.
2. The graduation from low-income status reflects sustained macroeconomic and political stability as well as the
country’s rich natural resources endowment and strategic geographic position. Macroeconomic stability has been
crucial to Tanzania’s growth, inflation rates have been low, below 5 percent since 2018 and sustainable fiscal and
current-account deficits have been financed by a combination of domestic and external sources. Over the past two
decades, investment has been a key driver of economic growth. The rise in overall investment translated into a sustained
accumulation of capital stock and has consistently accounted for roughly two-thirds of real GDP growth.
3. COVID-19 has negatively impacted Tanzania’s macroeconomic performance, decelerating GDP growth in 2020,
although Tanzania is one of the few economies in the region that avoided recession.1 The global economic slowdown
adversely affected Tanzania’s export-oriented industries, especially tourism and traditional exports, and has caused a
drop in foreign investment. The exception is gold mining which has benefitted from rising prices since the onset of the
pandemic. Although the government did not impose a lockdown, the pandemic initially spurred precautionary behaviors
that slowed down domestic economic activity.
4. Tanzania’s vulnerability to the global pandemic remains high, and risks are tilted to the downside. Under a
severe outbreak, Tanzania’s health care system would become heavily strained, and social distancing would paralyze
most manufacturing and services. In early 2020, the Government of Tanzania (GoT) implemented critical measures
aimed at containing the spread of COVID-19 and encouraged people to avoid unnecessary movements, practice hand
hygiene and social distancing, and identified several public and private hospitals that would serve as isolation centers for
people infected with COVID-19. The government reported COVID-19 cases only up to April 28, 2020. The availability of
official information on COVID-19 infection and mortality rates is important in assessing the effectiveness of national
public health response. In February 2021, the Minister of Health, Community Development, Gender, Elderly, and
Children restarted efforts to contain the pandemic, urging the general public to take precautionary measures against the
spread of infectious diseases, including COVID-19, and urged wearing of masks, avoiding overcrowding in hospitals, and
continued education of the population by health professionals. See Annex 6 for more details of the World Bank Group
(WBG) response in Tanzania.
5. The poverty rate in Tanzania has been declining gradually. The national poverty headcount has improved from
34.4 percent of population in 2007 to 28.2 percent in 2012 and further to 26.4 percent in 2018. Despite Tanzania’s
impressive GDP growth between 2012 and 2018, poverty reduction slowed, and growth has become less inclusive.
Inequality has also risen during this period. The international poverty headcount (US$1.90 per day at 2011 purchasing
power parity) remained high and unchanged during this period, at 49 percent. With a Human Capital Index of 39 in 2020,
Tanzania is ranked among the bottom 25 countries, at 152 out of 174.
6. Successful transition to middle-income status will require sustaining high growth while offering a more inclusive
set of economic opportunities to improve living standards for the majority of Tanzanians. National aspirations laid out
1 Tanzania Economic Update 15th Edition, 2021.
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in the Tanzania Development Vision (TDV) 2025 are to transition to a middle-income country with a high level of human
capital development, characterized by improvements in the quality of livelihood of the people. Tanzania has made
improvements in life expectancy; infant mortality; primary and secondary school enrollment rates; gender equality; and
access to health, electricity, water, and sanitation. However, there is still a large agenda ahead to sustaining growth over
the medium term, improving the inclusiveness of growth to reduce poverty, and strengthening upward economic
mobility and economic security for the population. Growth in Tanzania has been led by sectors that employ a small share
of the labor force. Insufficient job creation, low productivity, and high population growth, combined with a large
infrastructure gap, and lack of access to digital opportunities have hindered the inclusiveness of economic growth and
prevent growth gains to translate into poverty reduction.
7. Regardless of rapid urbanization, approximately 70 percent of the Tanzanian population still lives in rural areas,
where poverty is deeper when compared to the population in urban areas. While rural areas have reduced the
incidence of poverty faster than urban areas, going from 33.4 percent to 31.3 percent from 2012–2018, it is estimated
that 80 percent of the poor and extreme poor live in the rural areas. Out of the 11.3 million rural poor, some 3.5 million
live in extreme poverty. By contrast, in urban areas there are only 2.6 million poor, of which 745,000 live in extreme
poverty. Furthermore, population keeps growing fast, adding approximately 1.5 million people annually, which puts
pressure on the economy, natural resources, infrastructure including digital, urban planning, and job creation.
8. Tanzania’s cost of adaptation to current climate impacts is estimated at approximately US$500 million annually
and, by 2030, could increase to US$1 billion a year if no action is taken.2 Individual annual events have economic costs
in excess of 1 percent of GDP. Recognizing its vulnerability to climate impacts, the GoT adopted the National Climate
Change Strategy in 2012, a plan that identifies climate change risks for 18 sectors and 12 cross-cutting areas, and it
proposes over 200 strategic interventions to mitigate risks. However, the implementation of climate-resilient
approaches and its integration in projects has been insufficient. Currently, there is a lack of action plans to address
climate change for most sectors, and the country is already experiencing the problems related to inaction. As an
example, important historical paper archives of birth registration are located close to the coast in Dar-es-Salaam and are
at risk from rising sea levels. Digitization of these paper archives will help to mitigate this risk.
9. The Tanzania social context in rural settings is less favorable to women. It is estimated that the losses in human
capital wealth that can be attributed to gender inequality in Tanzania are up to US$111 billion.3 Agriculture employs
56 percent of the total women labor force (76 percent in rural areas), but approximately 64 percent of them do not
receive any kind of payment4. Furthermore, data show the prevalence of different forms of violence against women in
Tanzania. The 2015–2016 Tanzania Demographic and Health Survey (DHS) and Malaria Indicator Survey (2015–2016)
reveals that 39.5 percent of women, ages 15–49 years, have experienced one or more acts of physical violence since age
15; rural women are more likely to experience any form of physical violence (41.8 percent) than urban women (35.5
percent).
10. A faster path for economic growth will be largely dependent on the swift actions and policies decided in the
short and medium term. Efforts linked to job creation and supporting the rural population with improved access to
health and educational services and enhancement of the sectoral conditions for agriculture to improve food security will
be critical. In this context, the planned activity under the project to extend mobile broadband coverage in rural areas
2 World Bank Group. 2015. “Financing Climate-Resilient Growth in Tanzania.” Environment and Natural Resources Global Practice Policy Note.
World Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/23251 License: CC BY 3.0 IGO.
3 World Bank. 2019. “Tanzania Economic Update. Human Capital: The Real Wealth of Nation.”
4 DHS, Tanzania, 2015-2016
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will be important. According to the 2017 survey of mobile phone usage, the constraint of lack of coverage, as a reason
for non-phone ownership, is almost five times higher in rural areas than in urban ones.5
B. Sectoral and Institutional Context

11. The digital economy is a key driver of Tanzania’s future growth and prosperity.6 The country has had a
competitive telecommunications market since the early 1990s and currently counts three mobile operators which each
have at least 25 percent of the mobile market by subscribers (Vodacom, Airtel, and Tigo) and three other players with
smaller shares (Halotel, Zantel, and Tanzania Telecommunications Corporation Limited [TTCL]).7 Tanzania has made
significant progress in improving connectivity and access to digital financial services over the past decade which
contributes to economic growth and financial inclusion. According to the Tanzania Communication Regulatory Authority
(TCRA)8, by the end of 2020, mobile phone (voice) penetration had risen to 51.3 million (88.4 subscriptions per 100
inhabitants). The number of active mobile money accounts at the end of 2020 was around 32.3 million, and the value of
digital financial transactions in 2019 was equivalent to nearly 50 percent of total GDP (Annex 2, Tables 7 and 8).
Furthermore, at least half a million people are employed as mobile money agents, which creates both direct and indirect
jobs for citizens. Following the launch of 3G/4G services in major population centers, access to the internet, particularly
mobile broadband, has recently begun to take off. The TCRA estimated around 28.4 million users (49.0 per 100
inhabitants) at the end of 2020, and the government is aiming for 80 percent penetration by the year 2025. These
achievements have been driven by both public and private investments in telecommunications infrastructure and digital
service delivery, particularly within the highly competitive mobile telecom market. In sectors with significant
infrastructure deficits, such as energy and transport, the spread of mobile connectivity and financial services is further
unlocking opportunities for new services and business models through rapid growth of distributed rural electrification
initiatives by the Rural Energy Agency (REA) and ICT innovations in delivery of government services. It is expected that
this project will help unlock further opportunities and hence increase government revenue and private sector growth,
especially by attaining the target of 80 percent broadband internet penetration by 2025, to which component 2 of the
project will make a major contribution.
12. A number of interrelated factors are constraining private sector investment and competitiveness critical to
closing Tanzania’s digital divide and creating a strong foundation for growth of the digital economy. These include:
(a) Underinvestment in backbone network infrastructure. Low cost, high quality, and geographically widespread
fiber-optic backbone networks are essential for providing telecom services. To date, the National ICT
Broadband Backbone (NICTBB) has deployed 7,910 km of fiber, with an expansion to 15,000 km targeted by
2025. The network has too few loops to create sufficient redundancy to protect from cuts, especially for cross-
border links. High prices for rights-of-way further deter investment.9 Prices for wholesale capacity have
recently been reduced to enhance usability and competitiveness. The government, through the regulatory
authority (TCRA), needs to deploy an open access policy to allow competition and to encourage more
innovation in the use of existing infrastructures. There are initiatives taken by the government, such as the
metro loops, which have granted operators access and fair use, hence more competition and usability in the
5 World Bank. 2020. Has the digital revolution come to Tanzania: Household survey findings on mobile phone adoption.
6 World Bank Group. 2020. “Tanzania Economic Update #14: Just a Click Away: The Potential of the Digital Economy.” World Bank Group. 2019.
“Fundamental Drivers of Future Growth in the Tanzanian economy.”
7 In November 2019, a plan was announced to merge Tigo and Zantel. As part of the transaction, the Government of Zanzibar may relinquish its 15
percent stake in Zantel. All of the other operators are privately owned except TTCL which was fully renationalized in 2016.
8 TCRA. 2021. Quarterly Communications Statistics, Oct-Dec 2020, at:
https://www.tcra.go.tz/statistic/2020%20Quarterly%20Statistics%20Reports/december.
9 The Tanzania Urban and Rural Roads Agency (TARURA) charges an initial charge of US$1,000 and an annual charge of US$1,000 per km of fiber.
By comparison, there are zero charges in Rwanda while Zambia charges only an initial fee of US$503 per km and no annual fee.
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infrastructure. The government needs to allow such initiatives to further open up the market.
(b) Low levels of income, digital literacy, and domestic market size. Consumers of ICT services are highly price
sensitive given the low levels of average income in Tanzania. Combined with aggressive competition in the
mobile retail market, this has led to low marginal revenues for service providers, which discourages investment
in infrastructure and services in rural areas where there isn’t a sufficient customer base to overcome the low
margins.
13. The Regional Communications Infrastructure Program Phase 3 in Tanzania (RCIP-TZ) has played a critical role in
increasing connectivity for citizens and the government and enabling digital transactions. The RCIP-TZ (P111432; 2009–
2017) contributed to a dramatic reduction in the cost of wholesale international connectivity, including a 99 percent
drop in pricing from US$10,000 per E1 connection in 2008 to US$110 by the end of 2015, with available international
bandwidth increasing from 302 Mbps in 2008 to 47,010 Mbps by June 2016.10 These developments have led to lower
retail prices and better quality of ICT services for consumers and businesses. An additional 2.6 million people in 1,393
previously unconnected rural villages now have mobile (typically 2G) coverage through public-private partnerships
facilitated through the RCIP-TZ and the Universal Communications Service Access Fund (UCSAF), helping to narrow the
digital divide. Around 72 Ministries, Departments and Agencies (MDAs) and 77 Local Government Authorities (LGAs) are
now connected to high-speed broadband through the Government Network (GovNet), enabling high-quality electronic
communications, record keeping, and digital service delivery.
14. Despite this progress, Tanzania is nevertheless not fulfilling its potential for harnessing digital communications
and technologies for economic growth, job creation, and service delivery. The country was ranked 167 out of 175
countries in 2018 in the International Telecommunication Union’s (ITU) ICT Development Index, down from 139 in
2011.11 In the ITU’s Global Cybersecurity Index, Tanzania ranked 69th globally in 2018. The ICT sector accounts for a mere
2 percent of GDP, compared with at least 3 percent (and typically more) in similar countries, representing a gap
estimated at a minimum of US$450 million for each percentage shortfall. Tanzania also lags its neighbors in terms of
take-up of 3G and 4G mobile broadband services. Despite progress in extending rural connectivity, a significant digital
divide persists, with at least three million people living in areas still without any mobile signal (according to the Global
System for Mobile Communications Association [GSMA]), and more than 18 million people without data coverage,
essential to connect to the internet.12 Even in areas with sufficient signal coverage, mobile broadband services remain
unaffordable to much of the population, with tariffs for a basic plan (500 MB per month) equivalent to 10 percent of
gross national income (GNI) per capita. This is twice the United Nations (UN)-endorsed affordability benchmark of 5
percent or less (UN Broadband Commission). The reasons for this are explored further in annex 3.
15. Furthermore, there is a disconnect between the formal education system and the skills required in the market,
particularly for women. This is a common refrain from companies in the ICT sector. The formal education system is
targeted toward academic performance rather than job-related skills, particularly those required for the success of the
digital economy. As a result, companies have to invest heavily to train recruits, and, in many cases, recently trained
professionals are poached by competitors or migrate to other countries to seek work; thus, companies need to
constantly train new recruits. The World Economic Forum estimated in 2017 that 41 percent of all firms in Tanzania
identified an inadequately skilled workforce as a major constraint, compared to 30 percent in Kenya, 9 percent in South
Africa, and 6 percent in Nigeria. Furthermore, the country has a 10 percent gender gap in labor force participation. To
make an impact, a comprehensive and gender-inclusive digital skills program needs to be developed.13 Other aspects of
10 As of December 2020, total international internet bandwidth to Tanzania had expanded further to 376 Gbit/s (source: TeleGeography Inc.).
11 ITU (International Telecommunication Union). 2019. Measuring the Information Society.
12 According to data from GSMA, 3G population coverage at the end of 2020 was 69.5 percent and 4G coverage at 37.7 percent.
13 World Economic Forum. 2017. The Future of Jobs and Skills in Africa. http://www3.weforum.org/docs/WEF_EGW_FOJ_Africa.pdf.
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the gender gap that this project is seeking to address include a lack of sex-disaggregated data, lack of institution capacity
focused on gender, gender gaps in device ownership, and a lack of awareness of digital services available to women. The
ways in which the project is designed to address these challenges are highlighted in Annex 7.
16. However, if the digital economy is to rapidly expand and respond effectively to the COVID-19 pandemic, there
are a number of interventions that the GoT can consider. These include moves to make mobile money and low-value
data packages affordable for the poor and to increase participation of citizens in digital financial services. Investment in
enhanced coverage of mobile broadband in rural areas is particularly necessary to reduce the digital divide.14 To
stimulate progress toward integration in the global digital economy, the GoT should continue to attract carrier-neutral
data centers and content distribution networks, in addition to ensuring an enabling environment to encourage operators
to invest more in underserved areas. As physical trade declines as a result of COVID-19 restrictions, the GoT should also
move to facilitate digital trade, primarily by passing a strong data protection act15 with supportive regulations and
reviewing how intellectual property is protected online, providing an enhancement of the enabling environment for
digital platforms and usability. It is expected that the eCommerce Initiative under sub-component 1.2c of the project will
strengthen the enabling environment for digital trade and allow for better competitive platforms.
C. Relevance to Higher Level Objectives

17. The GoT is seeking to promote digital development as a key enabler of economic growth and industrialization,
job creation, service delivery, and government efficiency. The Five Year Development Plan (FYDP) III 2021/22–2025/26
recognizes that the digital economy creates “many new economic opportunities” and “paves the way for Tanzania to
leverage digitization in growing her digital economy pie and, most importantly, in accelerating economic transformation”
with the ICT sector playing a leading role in the “fourth industrial revolution”. The FYDP III sets a target of ensuring that
broadband internet reaches 80 percent of citizens by 2025, with universal mobile broadband coverage by the same date.
The goal is to raise the estimated contribution of the communication sector from 1.5 to 3 percent of GDP by 2025. In its
letter of November 12, 2020, the GoT also recognized the Digital Tanzania Project (DTP) as one of the priority projects it
wished to implement under IDA-19.
18. In addition to the ICTs’ direct impact on GDP growth, the GoT has recognized that digital technologies can play a
strong role in boosting growth across the economy. In 2016 mobile operators alone contributed over US$2.5 billion,
the equivalent of 5.2 percent of GDP. The TDV 2025 states that the ICT sector should be “harnessed persistently in all
sectors of the economy” and that this demands that “adequate investments are made.” National ICT Policy 2016
emphasizes the role of the private sector in financing ICT infrastructure and designing “collaborative frameworks
between ICT investors and the government.” The WB Country Partnership Framework (CPF), covering the period
FY18/19–FY22/23,16 recognizes that: (a) to achieve its ambitious economic development and industrialization goals,
Tanzania must equip its citizens and businesses to flourish in the digital economy or risk being left behind; (b) digital
technologies can create ladders of opportunity and transform access to services and information for marginalized
people; and (c) modern ICT infrastructure and digital platforms are vital to make public institutions more efficient,
transparent, and accountable.
19. The project is aligned with the World Bank’s (WB) Digital Economy for Africa (DE4A) initiative17, which is
14 It appears that the number of ‘whitespots’ (where cellular signals are not available) may be higher than the statistics reported by operators
suggest, based on evidence from alternative sources, such as OpenSignal.com.
15 These policy issues are explored in more detail in: World Bank. 2020. Tanzania Economic Update 14: Addressing the Impact of COVID-19.
https://openknowledge.worldbank.org/handle/10986/33878.
16 https://openknowledge.worldbank.org/handle/10986/29600
17 Digital Economy for Africa (DE4A) initiative, see: https://www.worldbank.org/en/programs/all-africa-digital-transformation.
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supporting the implementation of the African Union’s Digital Transformation Strategy for Africa, 2020-2030, 18 and
contributing to the WBG’s twin goals of shared prosperity and reduced poverty. The Digital Transformation Strategy for
Africa sets out a bold vision that calls for every African individual, business, and government to be digitally enabled by
2030, in order to drive the digital transformation of Africa and ensure its full participation in the global digital economy.
A well-functioning digital economy can help accelerate achievement of the WBG’s twin goals of shared prosperity and
reduced poverty. Activities under sub-component 2.2, to extend coverage of mobile broadband to rural areas, will help in
alleviating poverty, while the efforts to strengthen digital small and medium enterprises (SMEs) under component 1 will
contribute to shared prosperity. With a well-functioning digital economy, countries can achieve inclusive and faster
economic growth, offer innovative products and services, create jobs and export revenue, and achieve greater
international competitiveness (see annex 3). The GoT will need to invest in organizational reforms, improving the skills of
the public sector, and in transforming how it delivers services by using ICT more effectively. The Tanzania CPF FY18/19–
FY22/23 supports this effort by helping to identify and implement automated processes that reduce transaction costs
within the government and in the public sector’s interface with citizens and businesses and minimize scope for
discretionary behavior by public officials. Such technology-based service enhancements, for instance, will complement
the development of one stop service centers (OSSCs). The project will contribute to all three focus areas of the CPF, but
in particular to focus area 1, on enhancing productivity and accelerating equitable and sustainable growth, notably
through the efforts being undertaken in the project to stimulate digital entrepreneurship (Component 1) and to ensure
that all parts of the country benefit from mobile broadband coverage (Sub-component 2.2). Indeed, the implementation
of the project will bring benefits to all parts of the WBG portfolio in Tanzania (see annex 2, table 10).
20. The project will consider any potentially negative climate impact arising from the implementation of activities
while seeking to accelerate positive climate potential in project activities. In Tanzania, as elsewhere, increasing
digitization has a positive as well as potentially adverse climate impact. While increasing energy consumption drives
greenhouse gas (GHG) emissions, digital technologies can also be used to warn vulnerable populations about natural
disasters (for instance, by extending mobile internet to rural areas, under sub-component 2.2) and to reduce transport
needs and hence emissions (through the extended availability of government online service delivery through sub-
component 3.3). The project will, whenever possible, choose climate-friendly options to mitigate impact and improve
resilience, including amongst other things climate-friendly infrastructure choices, ICT refurbishment with a focus on e-
waste management, and employing public ICT services to enhance climate resilience. These choices are fully aligned
with Tanzania’s national climate strategy and the WB’s Africa Climate Business Plan.
21. Every economy in Africa was hit hard in 2020 by the COVID-19 pandemic, though expected country-specific
magnitudes remain highly uncertain.19 As of April 4, 2021, there were around 216,000 cases in the region resulting in
over 3,000 deaths to date.20 Although project preparation started before the pandemic struck, its design has been
adapted to provide a digital response to COVID-19 (see annex 6). Due to this pandemic outbreak, the country cannot
escape the impact on the wider region which has seen economic growth rates plunge.
18 African Union. 2020. Digital Transformation Strategy for Africa (2020–2030). https://au.int/en/documents/20200518/digital-transformation-
strategy-africa-2020-2030.
19 World Bank. 2020. Tanzania Economic Update: Addressing the Impact of COVID-19.
20 Data from the Johns Hopkins University site at: https://coronavirus.jhu.edu/map.html, with data for East Africa covering Burundi, Kenya, Rwanda,
Republic of South Sudan, Tanzania, and Uganda.
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II. PROJECT DESCRIPTION
A. Project Development Objective

PDO Statement
The Project Development Objective (PDO) is to increase access to high quality broadband internet services for
government, businesses and citizens, and to improve the government's capacity to deliver digital public services.
PDO Level Indicators
22. Achievement of the PDO will be measured by the following PDO Level results indicators:
a) IDA-19 Access Indicator. Percentage of the population covered by a mobile broadband network signal (3G, 4G
or higher).
b) Government Access Indicator. Number of Government Ministries, Departments and Agencies benefitting from
broadband internet service.
c) IDA-19 Citizen Access Indicator. Individuals (aged 15 and above) using the internet, per 100 inhabitants, of which
percentage female.
d) Digital Public Services Indicator. Number of monthly transactions accessing a public service via internet or a
mobile phone.
B. Project Components
23. The DTP is structured around four components, three of which seek to contribute to core enablers of digital
development: (a) The Digital Ecosystem: strengthening the laws, policies, regulations, institutional capacity, and human
capacity needed to promote ICT infrastructure investment, market competitiveness, digital engagement, job creation,
and innovation; (b) Digital Connectivity: ensuring access to affordable, high-quality internet services for all citizens,
including in rural areas, and for critical government institutions; (c) Digital Platforms and Services: building the technical
capacity, skills, institutions, and local digital infrastructure for the Government to deliver services to citizens and conduct
its own business digitally. A fourth component (d) supports Project Management. Unallocated contingency funding has
also been set aside. A summary budget is provided in table 1 (more detail in table 9 of annex 2).
Component 1: Digital Ecosystem (US$28.7 million equivalent)
24. This component aims to make Tanzania a more attractive and competitive place for digital investment and
innovation, ensuring that the benefits of digital technology are reaching all citizens and helping lay the groundwork for
growth of the digital economy. This will be accomplished by strengthening the many interrelated elements that
characterize a thriving digital ecosystem, helping the GoT in drafting forward-looking laws, regulations, and policies;
building digital skills and capacity of government institutions and youth; prioritizing gender inclusivity (see annex 7) and
developing a critical mass of innovators, entrepreneurs, and support services; developing a robust local ICT industry that
is founded on private investment and is able to deliver e-Commerce services; strengthening cybersecurity capacity to
prevent, detect, and respond to cyberattacks and improving data protection and privacy; and working toward closing
the digital divide, ensuring that all citizens and businesses benefit from digital development in the long term, especially
the poor, women, the elderly, and communities in rural areas. Two sub-components will support these goals.
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1.1. Digital Enabling Environment (US$13.4 million equivalent)
a) Establishment of a National Center for ICT Professional Development and Innovation (US$10.0 million)
25. The objective of this activity is to develop a national center for ICT professional development and a series of ‘soft
centers’, or tech hubs for youth, entrepreneurs, and SMEs, in five zones of the country, to promote local innovation in
the country. The implementation of this activity will be carried out by MCIT in collaboration with higher learning
institutions (HLIs), vocational training institutions, and the industry, as well as with the Ministry of Education, Science
and Technology (MoEST) and the Commission for Science and Technology (COSTECH). This activity will require close
collaboration with the private sector to ensure that newly trained ICT professionals are ready to enter the workforce
and have the qualifications and soft skills demanded by private sector companies, including cybersecurity awareness
and skills. The project will specifically address the facilitation needed by women to enable them to attend the training,
track the involvement of women in benefitting from the training provided, and promote internships for young women
under the government-funded program for youth employment. Direct collaboration with the private sector will be
sought, including by way of specific on-the-job training programs or internships provided by the soft centers. The
national center will be established at the ICT Commission in Dodoma, while four soft centers will be housed in training
institutions or universities. The soft centers will be located in four zones, namely the Northern, Southern, Coastal, and
Western zones. The soft centers will be assisted in developing cost-recovery mechanisms for the services they offer and
will need to establish good relations with private sector clients to establish longer-term sustainability, once the project
funds are fully used.
b) Establishment of Fabrication Laboratories (US$3.0 million equivalent)
26. This activity aims to establish Fabrication Laboratories (FabLabs) to enhance local capacity for the refurbishment
of ICT hardware and updating of software to enable the reuse and increased lifetime of ICT equipment and to
complement efforts to distribute ICT equipment to educational institutions. This will contribute toward the acquisition
of low-cost ICT equipment for learning purposes. In addition, establishing FabLabs will reduce e-waste and build capacity
in Tanzania for reusing and prolonging the lifespan of ICT equipment, which is an important future strategy for tackling
e-waste. Up to three FabLabs would be established and they will need to develop cost-recovery mechanisms and seek
private sector support for the placement of beneficiaries to ensure longer-term viability. The soft centers and fab labs
are expected to promote digital entrepreneurship and the results framework will track the number of digital businesses
that are created or sustained through the project, as well as number of jobs created, including the increase in the number
of female employees.
c) ICT regulatory scan and review (US$0.4 million equivalent)
27. Under this activity, the MCIT, in cooperation with the TCRA and in consultation with the licensed operators and
with the help of consultants funded from the project, will conduct a scan of the legal and policy environment to identify
possible gaps that might be hindering the development of the digital economy in Tanzania and to review possible
responses. This will target broadband implementation and provide recommendations on any new initiatives that may
be necessary to create an enabling regulatory, legal, and fiscal environment for the digital economy. The activity will
look at national statements of digital policy and look at legislation under development, such as on data protection or
freedom of information. It will benchmark the status of digital economy development in Tanzania against other countries
in the region. Under this activity, the MCIT will also convene with the TCRA and the Ministry of Health, Community
Development, Gender, Elders and Children to ensure that gender considerations and the needs of women are integrated
into this regulatory scan of the digital economy (see annex 7). The results of this regulatory scan should provide inputs
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to the implementation of other components, notably sub-component 2.2. on rural connectivity. Activities to be funded
under this sub-component will include consultants and the costs associated with stakeholder consultations.
1.2. Infrastructure to support National ICT Development and e-Commerce (US$15.3 million equivalent)
a) Enhancing the national addressing and postcode system (US$12.0 million equivalent)
28. This is an ongoing activity which will scale up the pilot projects for the National Spatial Data Infrastructure (NSDI),
already started and managed by the TCRA, which currently covers 66 wards21. This initiative is expected to cover an
additional 711 wards from 37 councils, which includes capital cities, strategic areas, central business districts, and other
high-revenue-generating areas. The activities under this initiative involve development of digital maps, naming of
roads/streets and installation of signage and house number plates; data collection; enhancement/update of the national
Address Database, preparation/review of policies and regulations, ICT works, and awareness and capacity building. The
NSDI, or digitized map with multiple different layers, will provide a platform on which information can be layered to
support key activities such as the national digital identification (ID) and spatial maps for national development, taking
into account requirements for data protection. The fieldwork for the mapping would be carried out under the guidance
of the MCIT, TCRA, and Tanzania Posts Corporation (TPC). Ground mapping and photography would be supplemented
by commercial firms recruited competitively to assist with digital mapping using remote sensing data from satellites and
aerial photography. Activities to be funded would include supply of goods, consultancy services, and coverage of
operational costs.
b) Development of a national ICT statistical information management system (US$2.0 million equivalent)
29. This activity aims to provide complete, accurate, and current statistical data for ICT in the country to support policy
decisions for national development. This data would be collected, for instance, by carrying out household ICT surveys,
building on the survey carried out in 2017 by the WBG in conjunction with the National Bureau of Statistics (NBS), with
funding from the Digital Development Partnership (DDP)22 used by the NBS for national reporting. The surveys will track
usage trends by gender, age, wealth, education and urban/rural status. The results framework will record the number
of respondents, above the age of 15, who are internet users, of which the percentage who are female. In addition, it will
facilitate investment growth in the ICT sector by providing useful data to potential investors. The funding will be used to
develop an electronic management system, establish necessary frameworks for enhancing ICT statistics availability, and
commission further surveys for key ICT indicators under the guidance of the NBS.
c) E-Commerce initiatives for Tanzania Posts Corporation (US$1.3 million equivalent)
30. This activity is intended to assist the TPC to catch up with recent technological developments and participate more
actively in the delivery of e-Commerce. The initiative will later allow integration with global e-Commerce including the
Universal Postal Union’s (UPU) Ecom@Africa initiative. The initiative seeks to make Tanzania a hub for e-Commerce in
the region and will enhance e-business growth and the participation of citizens in the digital economy.
31. While specific priority activities have been identified, the design of the component is intended to remain flexible,
allowing the project to respond to new challenges and opportunities as they arise in this fast-changing sector. There may
be a requirement for some additional enabling legislation to promote the development of e-Commerce in Tanzania, and
this will be tracked under the regulatory scan in sub-component 1.1c. This sub-component will primarily finance
21 http://www.address.go.tz/
22 The DDP is a trust fund managed by the World Bank.
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consultants for the development of a secure national e-Commerce platform to assess the country’s e-commerce
readiness, a scan of the legal and regulatory environment to complement the scan under sub-component 1.1c, and
hosting of the e-Commerce platform and stakeholder engagement. More details are provided in annex 2.
Component 2. Digital Connectivity (US$62.5 million equivalent)
32. The government’s aim is to ensure that 80 percent of Tanzanians can access high-speed broadband connectivity
by 2025, in line with the GoT’s target. Widespread, affordable, and reliable connectivity is an essential prerequisite to
providing and accessing digital services for socioeconomic development, and the wider digital economy. In addition to
the measures to boost sector competitiveness and private network investment under component 1, there is a need for
more direct investment to meet the connectivity needs of the government and the private sector and to create
incentives for the private sector to close the digital divide in internet service provision between urban and rural
populations. This component will support the GoT’s agenda for industrialization and equitable spatial development,
ensuring that all Tanzanians, including those in rural areas, have equivalent access to digital services and opportunities.
This will be supported through two sub-components (for more details, see annex 2).
2.1 Connected Government (US$33.0 million equivalent)
33. This sub-component will support the connection to high-speed broadband of those MDAs, LGAs, and other
government institutions that are currently unconnected, or have only slow-speed connections to the GovNet. This sub-
component will build on the successful connectivity program initiated under the RCIP-TZ, under which around 72 MDAs
and 77 LGAs were connected to GovNet. This sub-component aims to connect a further 200 institutions including LGAs,
regional offices, regional hospitals, district hospitals, and other MDAs to high-performance internet services. Given that
the extension of digital connectivity within the country is paramount, a reliable and robust ICT backbone infrastructure
as well as a strong governance, technical, and operational framework and capacity development for the security of the
backbone, GovNet, and their connected networks from cyberattacks, hijacking, and breaches is a necessity. In view of
this, the project will support the enhancement of GovNet to provide resilience routes as well as the extension of
coverage of the national backbone to areas needed by telecom operators and other communication service providers
for provision of services to citizens and businesses.
34. Furthermore, the DTP will fund the pre-purchase of bulk internet capacity of at least 1.5 Gbps per location for
10 years (that is, as an ‘indefeasible right of use’ [IRU] contract). The capacity will be used by MDAs and LGAs to facilitate
government service delivery. The pre-purchase of international bandwidth in bulk will aggregate demand from priority
user groups—schools, universities, hospitals, eGovernment use, and so on. Supporting access to cheaper capacity for
these targeted user groups will allow them to grow their consumption in line with their actual demand (currently
constrained by the prohibitive cost of capacity). This in turn will increase the viability of international infrastructure and
in particular increase the usage of submarine cable infrastructure. The pre-purchase of bandwidth would be carried out
through competitive tendering for IRU contracts, which would be carried out in lots, with one lot covering the provision
of international internet bandwidth and other lots covering different regions of the country (for instance, four zones, to
be awarded in phases). The preferred technology to connect the government institutions would be fiber-optic cable, but
where this is not immediately available, temporary solutions using microwave, satellite, or 4G mobile broadband could
be considered. The bandwidth contracts on offer from GoT should provide an incentive for operators to upgrade their
networks to fiber over time. Companies winning the contracts funded under the project would be required to apply
relevant WB Environmental and Social Framework (ESF) standards for all construction works carried out to extend their
networks in the zones served under the project. Although the lease of capacity would extend for ten years, any
operations and maintenance costs that go beyond the closing date of the project, as well as additional bandwidth
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purchased after the closing date, would fall under the responsibility of the GoT. Therefore, steps should be taken to
implement cost recovery mechanisms among user MDAs.
2.2 Rural Broadband for Development (US$29.5 million equivalent)
35. This sub-component will build on the successful rural connectivity program supported under the RCIP-TZ by
extending data-enabled (3G or higher) network coverage to the three million people currently living in areas of the
country that are currently unserved by any mobile cellular signal and will upgrade existing 2G networks to 3G and above.
This will encourage participation in digital economy development and will help those rural areas that have previously
been unable to participate in online learning or remote meetings to do so. This follow up program will be conducted in
collaboration with the UCSAF and will draw upon lessons learned from the RCIP-TZ program, for instance to refine the
delivery mechanisms for incentives to encourage private sector investment in rural areas by using national roaming.23
The activity will also make use of ‘Television White Spaces (TVWS)’ spectrum for enhancing broadband coverage in the
underserved areas. This will require a consultant study to provide (i) a thorough spectrum analysis that will help visualize
the scope for using TVWS spectrum in rural areas and (ii) policy and regulatory guidance on the use of this spectrum and
license coverage.
36. The proposed mechanism is a ‘reverse auction subsidy’, similar to the one used under the RCIP-TZ and as used in
multiple WB programs, such as the Niger Smart Villages for Rural Growth and Digital Inclusion (P167543) and Digital
Malawi Program Phase 1(P160533). The UCSAF would designate geographical zones (in clusters or lots) where interested
bidders (such as mobile operators, cell tower companies, high-altitude platform services, and so on) would be invited to
bid competitively for the lowest viable subsidy to capital expenditure (CAPEX) that would be required for them to
provide, or upgrade, service in the designated zones. Thus, project funding would be used alongside funds from the
UCSAF (using funds contributed to the Universal Service Fund [USF]) and would leverage funds from the private sector,
under a maximizing financing for development (MFD) approach. Under the RCIP-TZ program, a WB-financed contribution
of US$30 million leveraged private sector investment of around US$70 million and brought around 2.5 million people
under mobile signal coverage for the first time. This would be a significant contribution to private capital mobilization
(PCM) from the project, but these sums are not included in the data sheet because the leveraged amount will only be
known once the bidding process is completed and because there is no commitment or requirement from the private
sector to contribute a specific amount. A further challenge to extending rural broadband is the fact that mobile phone
use is generally in advance of rural electrification. Under the RCIP-TZ, solar power arrays with battery storage were used
and will be supported also under the DTP. Rural electrification initiatives carried out by the REA should be additionally
beneficial to the program, and where possible renewable technologies will be used.
37. Activities to be funded under this sub-component include: (a) a study on the scope for using TVWS spectrum; (b)
a study to define the modality to be used for the reverse subsidy auctions, to define a program operational manual to
govern awards, and to monitor the implementation of awards; and (c) a series of reverse subsidy auctions, open to
competitive bidding, in areas designated by the UCSAF. Winning bidders benefitting from CAPEX subsidies under the
project would be obliged to abide by relevant WB safeguards standards in any civil works carried out (for example,
construction of cell towers).
23 Under national roaming, the company providing rural connectivity in a particular zone would allow other cellular operators to market their own
services in that zone without requiring payment of roaming charges. The firm undertaking the investment may typically be granted a short period
of exclusivity of 1–2 years before competing firms are allowed into the market. The national roaming mechanism was researched under field trials
led by the GSMA in Tanzania, as documented in: GSMA (Global System for Mobile Communications Association). 2018. Tanzania Rural Coverage
Pilots: Performance Reports. https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2018/02/GSMA_Tanzania_Jan.pdf.
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Component 3. Digital Platforms and Services (US$47.8 million equivalent)
38. Component 3 seeks to enhance the core infrastructure and capacity necessary to support digital public service
delivery, increase the efficiency of the GoT’s internal operations, and roll out priority digital productivity platforms and
public services.
39. Progress has been made in recent years in developing digital services and elements of a shared services platform
(mobile services portal, short message service [SMS] gateway, government electronic payment gateway [GePG], and so
on); strengthening the e-Government Authority (eGA); and deploying digital productivity tools for government (first
phase of e-Office, introduction of one-stop government digital service delivery centers [Huduma Jamii Centers], initial
digitalization of records, revenue management, and so on). However, various MDAs and LGAs still operate stand-alone
ICT systems and infrastructure, spending considerable financial and human resources (HR) to develop, implement, and
operate each separate digital service. This fragmented approach risks creating cybersecurity vulnerabilities in non-
standardized systems. It also creates significant financial, operational, and security liabilities for institutions that are ill-
suited to cope with them. In addition, the GoT lacks sufficient HR to meet increasing IT demands and adequate policies,
practices, and an effective IT infrastructure to deploy high-quality digital services in a fast, secure, reliable, and cost-
effective manner, under a ‘whole-of-government’ approach. Developing ICT skills under this sub-component is intended
to serve government institutions and industrial sectors that are in need of high skills for operations underway in the
country.
40. Increased access to affordable, high-quality connectivity will create an opportunity to enhance the way the GoT
conducts its business and provides services to citizens using digital technologies. Offering public services through mobile
and online platforms can create significant benefits to citizens, who might otherwise need to travel long distances and
spend significant time and resources to access those services. This is particularly important for Tanzania’s rural residents,
who may lack access to public transport and quality roads but are much more likely to have access to a mobile phone.
Likewise, digital platforms offer opportunities to deliver new categories of services and transactions, such as digital cash
transfers under social protection or payroll schemes, lower administrative and logistical barriers to service delivery, and
reduce scope for corruption. Component 3 will include three sub-components (see annex 2 for more details).
3.1 Digital Services and Productivity Platforms (US$29.5 million)
a) One-Stop Service Centers (OSSC) (US$21.5 million)
41. This activity will seek to improve existing processes and procedures for offering government services to citizens
and small businesses by establishing 31 OSSCs (or Huduma Jamii in Swahili), of which up to 10 will be implemented in
the first two years of the project (eight on the mainland; two in Zanzibar). These centers will be designed for citizens to
access public services in a simple, speedy, and seamless manner in one location, which may be operated, for instance,
by a post office, a community association, or a local entrepreneur. A feasibility study that was completed in November
202024 with funding from the African Development Bank (AfDB) provided recommendations for the implementation of
this activity and the location of the OSSCs. The study notes that, currently, to establish a business, an entrepreneur
would need to visit five separate parts of government (Business Registration and Licensing Agency [BRELA], Tanzania
Revenue Authority [TRA], relevant ministry, LGA, and Ministry of Industry and Trade (MIT) and visit a bank to make
payments at each stage. The aim would be to allow this process to be followed through a single visit to a single
government portal facilitated by an OSSC. OSSCs would provide both informational and transactional services for up to
24URT PO-PSMGG (United Republic of Tanzania President’s Office - Public Service Management and Good Governance). 2020. Feasibility Study for
the Establishment of One-Stop-Shop-Centres (Huduma Jamii Centers), in Tanzania mainland and Zanzibar.
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32 government services by the end of the project. The feasibility study also proposes using a processing fee (less than 5
percent of the cost of a given service) as a means of financing OSSCs. While these services could also be accessed from
a website, OSSCs would provide intermediary services, such as assisting citizens in navigating the relevant steps,
accepting payments, printing and additional services. Measures would be put in place to maximize the protection of
private data entered, uploaded, and processed at the OSSCs, as well as to shield their servers from hacks, breaches, or
accidental exposure.
42. The project will work with existing government buildings and any civil works conducted will be subject to WB
environmental and social safeguards procedures. In line with the draft budget presented in the feasibility study, the
activities to be funded under this activity will include consultant fees, in particular for business process improvement, as
well as supply of ICT goods and services and rehabilitation of the existing buildings (for instance, internal wiring and
repartitioning of rooms). Training of OSSC staff will also be required, notably for cybersecurity awareness and good
practice. Supervision of the OSSC will involve (i) reviewing the designs for integrating service delivery platforms; (ii)
building staff capacity; (iii) revising the OSSC’s legal frameworks; (iv) carrying out public awareness campaigns; (v)
rehabilitating/refurbishing existing infrastructure; (vi) providing/constructing last mile connectivity and interconnection
with backend systems of service delivery; (vii) providing ICT equipment; (viii) developing/establishing procedures and
processes for OSSC operations; and (ix) undertaking supervision, monitoring and evaluation of OSSCs’ performance. One
of the aims of the OSSC program is to make government online services more accessible, and to this end, workshops will
be held with targeted groups (such as women, the elderly, persons with disabilities) to understand their needs and
accessibility constraints in order to improve the user-friendliness of the OSSCs.
b) Digital Economy (US$8.0 million equivalent)
43. This activity, under the MCIT will focus on enhancement of GoT financial/payment systems by strengthening
regulations pertaining to digital financial transactions, in collaboration with the Bank of Tanzania (BoT), and enhancing
the National Payment System (NPS). Regulations, standards, and guidelines on recognized international practices for the
protection of digital payments systems and digital financial services from cybercrime will be adopted, as will measures
to protect the privacy of personal data in compliance with forthcoming legislation. By establishing skills and systems that
better serve the digital economy, this activity should contribute to increasing revenue for the government. Financing
under the activity will support consultant services and purchase of ICT goods and services, including software
development and cybersecurity strengthening.
3.2 Data Center Infrastructure (US$13.2 million equivalent)
44. This sub-component aims to enhance the National Internet Data Centre (NIDC) infrastructure by acquiring
additional storage and networking equipment (goods) and computing resources (services) for the government shared
platform. It also seeks to enable cost-effective sharing of resources, increasing the reliability of electronic services
offered by the GoT and enhancing the storage of government data as well as creating efficiency in sharing and accessing
government applications through shared cloud infrastructure. For highly sensitive government data and confidential
private data, local data storage hosting on a government cloud may be required, rather than using private cloud services.
For this purpose, an existing government data center and the NIDC will be used and enhanced with additional security
and data storage capacity. The cybersecurity and physical security of the NIDC and its infrastructure will be assessed at
the start of project implementation and via regular risk analyses and penetration tests throughout the lifetime of the
project, with the recommendations from this assessment to address vulnerabilities of the facilities and to build the
capacity of data center staff. Cybersecurity technical assistance (TA) will also be financed under this sub-component, in
complement to the cybersecurity training planned under sub-component 3.3b. Sub-component 3.2. will support
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consultant services (for training and TA), purchase of ICT goods and services, and additional training, notably on
cybersecurity awareness, with a focus on good practices in energy efficiency and use of renewable energy.
3.3 Digital Literacy and Capacity Building (US$5.1 million equivalent)
a) Government ICT cadre training program (US$4.6 million equivalent)
45. This activity seeks to build the capacity of ICT professionals within the GoT for managing and supporting existing
and future government ICT systems (supply side), based on an ICT skills gap assessment conducted in all ministries in
2018. The project foresees training in specialized ICT skills for up to 500 ICT experts from GoT ministries, with a balance
between men and women, and longer courses (master’s degrees) at top-level universities worldwide, as well as
recognized industry certifications, for instance for cybersecurity, so that government IT officials can serve as Chief
Information Security Officers (CSIOs) of their agencies. Synergies will be sought with the National Center for ICT
Professional Development and Innovation supported under sub-component 1.1 to make sure the appropriate programs
are developed to support ICT professionals in the public sector or with interest in government jobs. Civil servants
benefitting from training overseas will be required to have worked already for the government for several years and to
sign contracts to stay within government for a minimum length of time, or to commit to repaying part of the costs of the
training. The selection framework will be prepared and included in the Project Implementation Manual (PIM). This is
intended to reduce the level of brain drain from the GoT. Training for e-service operations will also be provided under
this sub-component.
b) Citizen Digital Literacy (US$0.5 million equivalent)
46. This activity will support an awareness program that is intended to raise the level of utilization of online
government services and that will run for the entire duration of the DTP. It will include, but not be limited to, social
media, TV, and radio programming to promote e-Government services; TV adverts and short video clips; print media
campaign; dissemination of publicity materials; and workshops and seminars (for media and the public). The awareness
program will include campaigns directed to the public to sensitize it to cybersecurity and the protection of personal data
as well as the rights of individuals to determine use of their personal data. The program will also resort to digital forums,
conferences, exhibitions, and different digital competitions among youth to strengthen digital involvement and
contribution in innovations and creativity. The activity intends to increase digital literacy in terms of increased awareness
and usage of digital services by citizens, including specific consultations with the GoT and local stakeholders to ensure
that women’s engagement with citizen services are accounted for. This activity will primarily support workshops,
consultant services, and training.
Component 4: Project Management (US$3.5 million equivalent)
47. This component will support essential project management functions, covering primarily staff and operational
costs. The GoT, through the MCIT and PO-PSMGG, will establish a single project implementation unit (PIU), which will
be responsible for supervising project implementation. The PIU will comprise an overall project coordinator, a digital
government services specialist, an ICT technical specialist/TA officer, and specialists in procurement and financial
management (FM) as well as safeguards specialists. Component 4 will also include funding for strategic communications,
monitoring and evaluation (M&E), internal audit, logistics and operational overhead, and specialists in gender inclusion,
and diversity. In addition, it will finance capacity building for beneficiary agencies, such as the UCSAF and eGA, on the
preparation of bidding documents and contracts specific to procurement of ICT, which often includes both goods and
services in a single contract. The detailed list of PIU support activities is defined in the PIM which has been developed
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for the project.
Unallocated (US$7.5m equivalent)
48. The project includes unallocated contingency funding that will be used to strengthen those project activities that
are disbursing well and where additional funds may be required. Eligible situations, scope and modalities of usage of the
unallocated fund will be defined in the PIM, but these reserved funds must be used for the purposes of the PDO and
cannot be used for any activities other than those defined in this PAD and in the financing agreement.
Table 1: Summary of main project activities, by component

No. Component/Sub-component Amount (US$, millions)
1. Digital Ecosystem 28.7
1.1 Digital Enabling Environment 13.4
1.2 Infrastructure to support ICT Development and e-Commerce 15.3
2. Digital Connectivity 62.5
2.1 Enhancement of Government ICT Connectivity 33.0
2.2 Rural Broadband for Development 29.5
3. Digital Platforms and Services 47.8
3.1 Digital Services and Productivity Platforms 29.5
3.2 Data Center Infrastructure 13.2
3.3 Digital Literacy and Capacity Building 5.1
4. Project Management 3.5
Unallocated 7.5
TOTAL 150.0
C. Project Beneficiaries
49. The project is intended to benefit all Tanzanians, covering the government, businesses, and citizens, through
improvement in the affordability, availability, and quality of service delivery. However, more specific beneficiaries
include the rural population, through the proposed expansion of the rural network (sub-component 2.2), government
agencies that will benefit from improved provision of connectivity to support service delivery (sub-component 2.1), as
well as citizens who will have more accessible e-services (sub-component 3.1). Youth, as well as government employees
and citizens in general, will benefit from improved digital skills and literacy (under component 1 and sub-component
3.3b). Women will be specifically targeted by the activities that seek to increase their participation in the digital economy
and digital skills development (sub-component 3.3). The private sector will benefit both from the expanded training
opportunities under component 1 and the competitive bidding opportunities created under component 2 for the
provision of internet and mobile broadband services.
D. Results Chain
50. The key elements of the Results Chain that will ensure achievement of the PDO are: (a) strengthening the digital
ecosystem, (b) increasing digital connectivity for governments and rural users, and (c) improving digital platforms and
services. Figure 1 represents the results chain of the project and contributions to the PDO. The results chain assumes a
higher degree of coordination of government ICT functions than is currently the case, for instance in the purchase of
internet capacity and the adoption of cybersecurity principles. It also assumes effective private sector consultation
processes. Achievements in these three areas will result in increased access to affordable high-quality internet services
and improvement in the GoT’s provision of public services. The implementation of the DTP will also benefit all parts of
the WB portfolio in Tanzania (see annex 2, table 10).
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Figure 1.Results Chain
E. Rationale for Bank Involvement and Role of Partners

51. The DTP capitalizes on digital technologies to accelerate growth, improve access to services, and make
government operations more efficient. It supports a four-pronged approach to driving Tanzania's digital transformation:
(a) the building on the earlier RCIP-TZ program and scaling up specific activities that were initiated under RCIP-TZ, such
as on rural broadband (sub-component 2.2); (b) adoption of technology solutions in all sectoral interventions; (c)
deepening integration and enhancing the competitiveness of the regional telecom market and digital economy; and (d)
effective coordination with activities in the sector conducted by other development partners, such as the UPU
Ecom@Africa Initiative (in sub-component 1.2), the AfDB, the European Union, the Government of Finland and the
Agence Française de Développement (AFD).
52. Alignment with the WB’s Regional Integration Agenda and planned program. Moreover, the DTP supports
regional goals to address market fragmentation in the financial sector and ICT/telecom investments in cross-border data
flows.). The DTP builds on the RCIP TZ by improving the regulatory environment and creating demand for regional digital
content. It supports enhancing transport, energy, and digital connectivity for improved services to rural areas. Physical
links to urban areas are critical to expand economic opportunities for Tanzanians in rural areas. There is also an
opportunity for Tanzania to join the pipeline East and Southern Africa Regional Digital Integration Project (P176181) at
a later stage.
53. The DTP will help identify and implement automated processes that reduce transaction costs both internally
and in the public sector’s interface with citizens and businesses; automation will also minimize the scope for discretion
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for public officials and enhance service delivery mechanisms. Technology-based service enhancements will complement
the OSSCs (sub-component 3.1). The DTP will support this transition to more automated services and establish electronic
payments, for example, taxes, licensing fees, and fines. More intensive use of ICT in data collection and publication will
help the government increase frequency and accessibility of statistical data in the country. Finally, the project will also
support the WBG’s twin goals, in particular the activities under sub-component 2.2 that will extend coverage of mobile
broadband to rural areas, which will help in alleviating poverty. Activities that will strengthen digital SMEs under
component 1 will contribute to shared prosperity.
F. Lessons Learned and Reflected in the Project Design
54. The Digital Tanzania Project’s design, preparation, and implementation arrangements draw from lessons
learned during the RCIP-TZ implementation. For example, the RCIP-TZ demonstrated the positive impact of using a
phased approach to enable smoother implementation and strengthen the project’s relevance throughout its course. The
identification of this sequencing at the preparation stage can result in a more efficiently organized implementation
process. Additionally, a trade-off exists between time needed for proper implementation and the relevance of activities
designed. This is particularly relevant in the ICT sector where technology and priorities evolve very fast. A multi-phased
approach allows for more flexibility in adapting the project’s design to changing circumstances in the ICT sector or in the
country context to ensure the project’s relevance throughout its life. The project design will also seek synergies between
different infrastructure sectors (for instance, energy and transport, as well as to enhance the digital economy) to
promote ‘dig once’ policies for infrastructure deployment. The fact that the MCIT was formerly part of the Ministry of
Works, Transport and Communications (MWTC), which had responsibility for works and transport as well as digital
communications, will be an advantage in this respect.
55. Coordination. For successful implementation of ICT sector reforms, projects within a country must be fully aligned
with governments’ priorities, timeline, and institutional capacity, as well as other ongoing initiatives in the country. An
integrated approach is always best. In the case of Tanzania, the achievement of project objectives and the realization of
some of the activities depended directly on results pursued by the GoT outside the scope of the RCIP-TZ. The project
provided direct support to the proper deployment and operationalization of the NICTBB in the country, even if this was
not explicitly part of the project scope, as the team recognized the NICTBB as a key element to the achievement of the
RCIP-TZ’s objectives and the realization of activities under the connectivity component. Establishing more formal
mechanisms for collaboration with other development partners active in the sector will help the implementation of the
project, especially for component 3.
56. Digital government. Through the DTP, the GoT and the WB will be focusing their investments in building the
foundations of digital government (interoperability modules and Application Programming Interfaces [APIs], cloud
technology, cybersecurity, data warehouses, and so on), instead of developing specific eGovernment applications.
eGovernment applications might become obsolete during the lifetime of the project, especially if the implementation
period is significantly extended. Additionally, developing eGovernment applications requires strong coordination
between different parts of government, thereby significantly mitigating coordination risks that the project might incur
during implementation.
57. Public Private Partnership models. The RCIP-TZ project proved the importance of simple Public Private
Partnership (PPP) arrangements and provided examples of different but equally effective PPP models. In Malawi and
Mozambique, the pre-purchase of wholesale bandwidth by the government created incentives and reduced investment
risk for private operators to build out new backbone infrastructure which could serve both the government and the
private market. This significantly reduced the investment costs for the government and eliminated ongoing maintenance
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and operations risks and liabilities. It also created many of the same benefits of alternative PPP models such as
consortiums or management contracts whereby the government retains some level of shareholding/ownership of the
network while avoiding complex legal arrangements for joint ownership (which can lead to delays in operationalization,
financial and operational risks, and financial liabilities for maintenance and upgrades). In Tanzania, the reverse subsidy
auction model adopted for rural mobile connectivity ensured highest value for money and maximum leveraging of
private financing through the competitive award process while shifting all financial and operational risk for the mobile
sites and service offerings to the private sector operators. Government equity or partial/full ownership of the mobile
sites would have created a more complicated legal and operational structure as well as greater risk. The positive
outcomes from the RCIP-TZ suggest that these models are both effective in delivering results and efficient in their cost
structure and organization and could be adopted in future connectivity operations leveraging the MFD principle.
III. IMPLEMENTATION ARRANGEMENTS
A. Institutional and Implementation Arrangements

58. The primary agencies involved in the implementation of the project are the MCIT and the PO-PSMGG. The MCIT
will be the overall lead implementing ministry, hosting the project implementation unit (PIU), while the PO-PSMGG will
coordinate the implementation of e-Government-related components (notably sub-components 2.1 and 3.2) and
participate in other activities under the project, such as OSSCs (sub-component 3.1). The project’s proposed institutional
and implementation arrangements will benefit from the experience and lessons drawn from the successful
implementation of the RCIP-TZ. The latter’s PIU, which was reporting to both the MCIT and PO-PSMGG, had performed
satisfactorily until the project closed on December 31, 2017, though the dual reporting structure caused some delays in
gaining internal clearances for procurements. For the DTP, a single PIU will be created, within MCIT. In addition, the
MCIT already has a lot of experience in working with the WB, as it implemented several other WB-funded projects in
earlier years, notably in the transport sector, when it was part of the former MWTC.
59. Drawing on the lessons learned from the RCIP-TZ, a number of changes are proposed to the PIU structure and
procedures to improve efficiency and reduce implementation risk. These include:
i. Designation of a single, fully dedicated project coordinator for all project activities (previously this was split
between different representatives for each institution, and the positions were shared with other government
responsibilities). Technical oversight would remain with the relevant stakeholder for each component/activity,
while the project coordinator would have responsibility and authority for day-to-day project management,
coordination between the PIU and relevant technical counterpart, oversight of procurement, FM, safeguards,
project communications, and so on. Table 9 in annex 2 provides information on the allocation of responsibilities
for technical oversight for different activities. In general terms, the MCIT is responsible for all of component 1,
partnering with the TCRA for sub-component 1.2a and the TPC for sub-component 1.2c, and is itself a partner
in all other sub-components. The MCIT is also responsible for some parts of sub-component 3.1. PO-PSMGG is
responsible for sub-component 2.1, parts of 3.1, and for sub-components 3.2 and 3.3. The UCSAF is responsible
for sub-component 2.2. PIU staff for FM, procurement, safeguards, communications, and so on would likewise
cover all project activities.
ii. A single designated account (DA) is proposed and will be under the dedicated PIU in MCIT. Permanent
Secretaries (PSs) from both ministries (the MCIT and PO-PSMGG) will have decision-making responsibility for
the approval of activities that will be under their respective institutions.
iii. Recruitment of at least one (1) environmental and one (1) dedicated social specialist to strengthen oversight of
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safeguards issues; and
iv. Strengthening of the PIU with on-call staff who are familiar with WB procedures for communications, M&E, and
diversity inclusion management, given the larger project size and number of activities proposed under DTP.
60. Beyond the MCIT and PO-PSMGG, key project stakeholders will be involved in project design and oversight via
a Project Steering Committee (PSC). The PSC will provide guidance on priority setting and cross-MDA coordination
throughout the lifecycle of the project. It will also be responsible for monitoring and ensuring that the project is
successfully implemented through designated implementation arrangements. The PSC will be chaired by the PS of MCIT,
with the PS-PO-PSMGG acting as vice-chair. Its members will include, but not be limited to, the PS-PO-RALG, PS-PO-
MSMGG and PS-MoEST. CEOs of other stakeholders and beneficiaries may be invited to attend as required.
61. A Technical Committee (TC) reporting to the PSC and gathering different beneficiary institutions will advise and
make recommendations on specific technical aspects of project implementation, as required by the PSC. The TC will
report to the PSC and be chaired by the Director of ICT within the MCIT. The permanent members of the TC will include,
but not be limited to, representatives from MCIT, MoFP, PO-RALG, PO-PSMGG, MoEST and UCSAF. A large number of
other MDAs, notably the Ministry of Health, Community Development, Gender, Elders and Children, COSTECH, TCRA
and the MIT, figure amongst the list of project beneficiaries that will have an opportunity, together with representatives
from the private sector, academia and other stakeholders, to participate in the TC on request, for consultations, as
required, according to the agenda items. Terms of reference (ToR) for both the PSC and TC have been prepared and form
part of the PIM.
62. Data Protection. Large volumes of personal data, personally identifiable information and sensitive data are likely
to be collected and used in connection with the management of this project, under circumstances where measures to
ensure the legitimate, appropriate and proportionate use and processing of that data do not yet feature in national
law25. To guard against potential abuse of that data, the project will incorporate best international practices for dealing
with data in these particular circumstances. Such measures may include, for example, (a) data minimization (collecting
only data that are necessary for the purpose); (b) data accuracy (correcting or erasing data that are not necessary or are
inaccurate); (c) use limitations (data are only used for legitimate and related purposes); (d) data retention (retain data
only for as long as they are necessary); (e) informing data subjects of use and processing of data and allowing data
subjects the opportunity to correct information about them, and so on.
63. Private Capital Mobilization (PCM). The project is designed around the principle of MFD, whereby the private
sector takes the lead in investment and service provision wherever possible and public funds are only used in the event
of market failure. As a result, it is expected that IDA financing will serve to mobilize private capital in a number of ways:
a) The primary PCM mechanism used in the project is reverse auctions (under sub-component 2.1 on rural
broadband). Under the RCIP-TZ, the reverse auction mechanism leveraged private investment in the ratio of
just over 1:2 – that is, US$30m of IDA financing subsidies leveraged around US$70m in investment in cell
towers from private mobile operators. Under this project, this ratio is expected to be lower, as the zones
targeted are more economically marginal, but still significant. However, as this is an outcome of a competitive
bidding process, the exact anticipated value of PCM has not been reported to avoid signaling to the private
sector the level at which they should bid.
b) PCM is also likely through the pre-purchase of internet capacity for MDAs under sub-component 2.1. Here,
25 New draft legislation covering data protection is under development in Tanzania, but as of March 2021, it had not yet passed into law.
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the GoT is acting as an anchor tenant in guaranteeing an income for investors that commit funds to building
out their network in urban and rural areas. Again, the incremental additional investment to which the project
will contribute is difficult to estimate, as it will be the outcome of a competitive bidding process, but it is
likely to be substantial as the project is committing US$33m of IDA financing to the sub-component.
c) PCM could also arise under sub-component 1.1, where the funding of the soft-centers and FabLabs are likely
to stimulate investment from those private companies whose growth is nurtured through these initiatives.
Private capital may also be invested alongside public funds in the planned National Center for ICT Professional
Development and Innovation. Finally, public investment in a national addressing and postcode system under
sub-component 1.2 should stimulate private sector investment in eCommerce.
B. Results Monitoring and Evaluation Arrangements

64. A national ICT data collection survey has been undertaken in preparation of the project. This baseline survey,
financed through the Digital Development Platform and using the Survey of Well-being via Instant and Frequent Tracking
(SWIFT) methodology, was carried out by the WB in 2018-19. Subsequent surveys are expected to be carried out every
two to three years (that is, twice during the life of the project and once following completion), covering over 1,400
households in rural and urban locations and including Zanzibar. The SWIFT data diagnostic focused on key indicators
related to ICT adoption, usage, and impact and was disaggregated by income group, gender, type of mobile
phone/service, and so on. Areas targeted as part of the rural connectivity program will receive specific attention to help
inform project design and course corrections. In addition, a Digital Sources of Growth study was commissioned by the
WB in 2019 and formed the basis for a special focus chapter on the development of the Digital Economy in Tanzania in
the 14th edition of the Tanzania Economic Update (May 2020). The National ICT Statistical Management Information
System that will be developed under sub-component 1.2b should allow for improved monitoring of key performance
indicators (KPIs) in the sector.
65. The project will also leverage the WB Geo-Enabling Initiative for Monitoring and Supervision (GEMS) for data
collection and analysis, including citizen engagement. GEMS uses open source tools for in-field collection of structured
digital data that automatically feeds into a centralized M&E system. Using GEMS systematically allows operations to
enhance the transparency and accuracy of M&E, and the accountability of third-party monitoring.
C. Sustainability
66. The project’s sustainability should be ensured using private sector led, market-based mechanisms for allocation
of resources. As an example, the provision of internet access to government MDAs under sub-component 2.1 will be
allocated through a competitive bidding mechanism that awards long-term supply (or IRU) for internet capacity (typically
for 10–15 years, that is, beyond the closing date of the project) to winning bidders. Similarly, the provision of rural
broadband under sub-component 2.2 is assured through the use of the ‘reverse auction’ mechanism, whereby a subsidy
is offered to the network operator or tower company seeking the lowest level of subsidy to construct and run the
infrastructure under a competitive bidding process. In coordination with the PIU, the funding flow to the UCSAF, the
universal service agency which collects a small percentage of operator revenue, will guarantee the sustainability of the
rural broadband component. It may in the future also be used to support connectivity for schools and hospitals and
general broadband development (under sub-component 2.1). The phased structure of the project should help reinforce
its longer-term sustainability, with lessons learned in earlier phases applied in project design for later phases. For
instance, several of the project components that will be procured in multiple lots (for example, sub-components 2.1 and
2.2) or in multiple units (for example, the OSSCs in sub-component 3.1 and the soft centers in sub-component 1.1) can
be phased to allow for learnings to be applied in later procurements (learning by doing).
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IV. PROJECT APPRAISAL SUMMARY
A. Technical, Economic and Financial Analysis

67. The anticipated economic and financial benefits of the DTP come from three main sources:
a) Improvements in connectivity and coverage of digital technologies, in particular from rural mobile
broadband, largely from component 2, sustained by regulatory enhancements foreseen in sub-component
1.1c. Direct impacts will accrue from a growing ICT sector,26 particularly the spillover into computer and
information services as applications and data storage and processing facilities are developed to leverage the
increased connectivity. Indirect benefits accrue from increased connectivity across different economic sectors.
Enterprise productivity is enhanced, thereby boosting growth. Analysis presented in annex 3 suggests that the
net present value (NPV) generated by the boost to GDP would be worth about US$47.7 million over the period
till 2028, with further gains thereafter. The enhanced connectivity for government institutions and district
health centers will also benefit the government’s provision of digital services and response to emergencies
such as the COVID-19 pandemic and other outbreaks.
b) The impact of enhanced electronic public services, which is foreseen in component 3. In the economic analysis
carried out to support this program, the model of Sri Lanka has been followed as a case study. There, the gains
per household from the eLanka development program (P081771; US$53 million) were worth around US$6.12
per household per year, often from time savings. Applying this to Tanzania would generate an expected saving
worth around US$190 million over 10 years.
c) Finally, the cost savings for government institutions, which also derive mainly from component 3, can be
calculated in a similar manner. Based on Australian experience, there is an estimated saving of over US$12 per
transaction from doing transactions online that would otherwise require face-to-face interaction. If just
50 percent of government transactions with businesses and citizens could be transferred online, the net saving
would be US$867 million over 10 years, or around 5 percent of the national government budget. This is
therefore the biggest potential saving of all, though the main benefits would only be observed in the long term
once the connectivity agenda has been addressed and the focus can shift to developing eServices and
eTransactions.
68. These estimates as well as other economic and financial benefits from the DTP are explored in more detail in
annex 3. They indicate that the modest investment in the DTP (US$150 million) would be repaid many times over from
potential cost savings and from the boost to economic growth of over US$1.1 billion over 10 years, or around
US$433 million using NPV. Furthermore, this calculation does not take into account savings and economic boost from
other parts of the program, such as the stimulus to e-Commerce (in sub-component 1.2) or the benefits from better
trained civil servants (under sub-component 3.3). Overall, therefore, DTP will provide a welcome boost to Tanzania’s
future economic prospects.
26 The statistical classification of the ICT sector includes the following services: telecommunications, computer programming; consultancy and
related activities; and data processing, hosting, and related activities; web portals. See United Nations. "Alternative Aggregation for the
Information Economy," pp 209-216 in International Standard Industrial Classification of All Economic Activities, Rev 4, at:
https://unstats.un.org/unsd/publication/seriesm/seriesm_4rev4e.pdf
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Technical
69. The project components were designed as an integrated and interlinked program to maximize the development
impact of the investments. Investment from the WB and development partners is being complemented by TA, reform,
and skills development support to increase access to both ICTs and digital services while also equipping citizens,
businesses, and the government with the skills, capacity, and incentives they need to use them to reap maximum
dividends. This approach aligns with lessons learned from other operations and from the World Development Report
2016 (WDR16) on Digital Dividends. The WDR16 analysis highlights the need to complement access to technology with
reforms and investment in ‘analog’ foundations. Thus, in the DTP’s design, sub-components 2.1 and 2.2 as well as sub-
components 3.1 and 3.2 focus on the investment in digital technologies and component 1 is intended to strengthen the
analog foundations, in particular policy and regulation (sub-component 1.1c), institutional capacity and accountability
(sub-component 1.1a), and development of digital skills (sub-components 1.1a, 1.1b, and 3.3).
70. The technical design is consistent with international best practices. The design of the project is founded on a
model of competitive private sector delivery wherever possible, utilizing an MFD approach to leverage private sector
expertise and financing and to contribute to overall sector development. This is fully consistent with international
experience and lessons learned from the RCIP-TZ program, which show that this is a more cost-effective and efficient
way of delivering ICT services rather than through direct government financing, ownership, and operation of telecom
infrastructure. It is a ‘demand-side’ rather than a ‘supply-side’ intervention, applying principles of open access and
nondiscriminatory pricing. To borrow from the terminology of WDR16,27 the locus of the intervention is mainly at the
middle mile (sub-component 2.1) and the last mile (sub-components 2.2 and 3.2), backed up by strengthening of
‘invisible mile’ elements of data protection and management of scarce resources, such as spectrum and rights of way
(sub-component 1.1c).
71. Tried and tested digital technologies will be used through demand-side pre-purchase and demand aggregation
methodologies. While the procurement processes will be technology neutral, leaving technical choices to commercial
vendors, it is expected that the middle mile technology to be employed will be primarily fiber-optic cables, backed up
by microwave and satellite (as a temporary solution) in the more remote and rural areas, where the need arises. In the
last mile, fiber will also be used for government clients (sub-component 2.1), but for small businesses and citizens in
rural areas mobile broadband solutions will be deployed under sub-component 2.2. In this context, mobile broadband
implies 3G and 4G mobile cellular technology, though there will be scope to experiment with private led fifth generation
technologies (5G) which are now becoming available, as well as emerging technologies for rural broadband such as
TVWS, high-altitude platform systems (HAPS), and nanosats.
72. Technical choices will rely on climate-resilient design to the extent possible. As climate and geophysical hazards
may affect digital infrastructure, future-proof technologies that are more resilient and robust than traditional ones will
be prioritized. As noted, to the extent possible underground deployment of fiber cables, as opposed to, for example,
aerial cables, will be prioritized, as these are water resistant and tend to be more robust. The overall design will take
into account recent climate change trends and future-projected changes.
B. Fiduciary
(i) Financial Management
73. Adequate FM arrangements are in place and meet the minimum requirements for WB-supported projects. The
27 World Bank. 2016. World Development Report: Digital Dividends.
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MCIT and the PO-PSMGG implemented the RCIP-TZ. The project would build on the lessons learned by the RCIP-TZ. A
single project DA denominated in U.S. dollars will be opened at the BoT into which the proceeds of the loan will flow
from the WB to the project. The GoT will establish a single PIU which would be responsible for the day-to-day operations
including the FM activities of the project. The MCIT and PO-PSMGG both will deploy qualified project accountants
approved by the WB to the PIU. The PS MCIT and the PS PO-PSMGG will both have independent oversight (approval)
authority for the initiation, approval, and the authorization of project expenses under the respective components for
their ministries and submit the approved expenditures directly to the PIU for payment processing in line with the
government’s regulations, including the Government D-Fund system, and the WB’s regulations. The PIU will be responsible
for convening meetings including of the PSC and TCs. The PSC will be chaired by the PS of the MCIT with the PS of PO-
PSMGG as vice-chair. During the FM assessments for the RCIP-TZ, the following key risks were identified: (a) the risk of
lack of coordination across the implementing MDAs (MCIT and PO-PSMGG) leading to delayed disbursement; (b)
multiple DAs and the disbursement issues; (c) the risk of loan proceeds not being used for the purpose intended; and (d)
financial reporting and oversight and delayed audit reports. The mitigating measures for the DTP are as follows: (a) a
single PIU will be established to manage the day-to-day activities of the project; (b) the PSC will have overall oversight
responsibility for the project, and only the activities approved by the PSC will be implemented; (c) the project will be
audited by the Controller and Auditor General (CAG) of Tanzania; and (d) the PIU will submit the audited project financial
statements (PFS) to the WB six months after the end of each financial year. The fiduciary risk is considered substantial.
(ii) Procurement
74. Procurement for the project will be carried out in accordance with the WB Procurement Regulations for IPF
Borrowers under Investment Project Financing, dated November 2020 (hereafter referred to as ‘Procurement
Regulations’); Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and
IDA Credits and Grants (revised July 1, 2016); and the provisions stipulated in the financing agreement.
75. As required by the Procurement Regulations, a Project Procurement Strategy for Development (PPSD) has been
developed by the Implementing Agency and approved by the WB. Based on the PPSD a Procurement Plan (PP) covering
activities for at least the first 18 months has been prepared which will be finalized with PPSD. The procurement plan sets
out the selection methods to be followed by the Recipient in the procurement of goods, works, non-consulting services,
and consulting services financed by the WB. The PP will be updated at least every 12 months, or as required, to reflect
the actual project implementation needs. Each update of the PP shall require WB approval. All PPs will be publicly
disclosed in accordance with the WB disclosure policy.
76. The MCIT and PO-PSMGG will use Systematic Tracking of Exchanges in Procurement (STEP), a WB system to
prepare, clear, and update PPs and conduct all procurement transactions. Personnel from the MCIT and PO-PSMGG will
be trained in STEP, as necessary, by WB staff.
77. A procurement capacity and risk assessment has been carried out by the WB for the MCIT and PO-PSMGG to
review the organizational structure for implementing the project and the adequacy of procurement staff. Based on the
assessment and taking note of the role and responsibility of the MCIT and PO-PSMGG for procurement, the procurement
risk rating was rated as Substantial. Details of the risk assessment and mitigation measures are provided in annex 1.
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.C. Legal Operational Policies

.
Triggered?
Projects on International Waterways OP 7.50 No
Projects in Disputed Areas OP 7.60 No
.
D. Environmental and Social Standards
(i) Environmental standards

78. The DTP will support subprojects and activities that are likely to generate some unfavorable and site-specific
environmental and social impacts. However, the exact nature of subprojects, their location, and core areas of impacts,
extent, magnitude, and duration of impacts caused by the various types of investments are yet to be specified to a
detailed level where an Environmental and Social Impact Assessment (ESIA) and or an Environmental and Social
Management Plan (ESMP) can be developed for approval under the national regulations. The WB Environmental and
Social Framework (ESF) institutes a requirement for appraisal before the approval of funding. The WB Environmental
and Social Standards (ESS) relevant for the DTP are the ESS 1 - Assessment and Management of Environmental and Social
Risks and Impacts; ESS 2 - Labor and Working Conditions; ESS 3 - Resource Efficiency and Pollution Prevention and
Management; ESS 4 - Community Health and Safety; ESS 5 - Land Acquisition, Restrictions on Land Use and Involuntary
Resettlement; ESS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources; ESS 7 -
Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities; ESS 8 - cultural
heritage; and ESS 10 - Stakeholder Engagement & Information Disclosure.
79. Given that the DTP will be implemented nationwide, and that the exact locations of physical interventions are
not precisely known at this stage, an Environmental and Social Management Framework (ESMF) has been prepared to
reflect ESF requirements. Once the network’s details and specific locations for the construction of associated
infrastructures have become known, site-specific ESMPs will be prepared as necessary during project implementation,
in line with the ESMF. The private sector, wherever involved, will be required to use the ESMF to guide its own policy on
environmental management and thereby conform to national policies and WB’s ESF.
80. ESS 1: Assessment and Management of Environmental and Social Risks and Impacts applies under the proposed
activities under Components 1, 2, 3, and 5. The impacts likely to be generated will be site specific and range from low to
moderate in significance and can be easily mitigated. Potential impacts and risks are expected to be site specific and
largely during construction stage of the works and as well as during the implementation of other soft components of the
project such as trainings. The risks and impacts include: (a) exposure or propagation of communicable diseases during
the implementation of activities, both in terms of community exposure and exposure of project workers; (b) dust and
noise pollution; (c) restrictions with regard to access and traffic disruption; (d) road safety hazards and increase in traffic
and its related accidents during construction; (e) loss of vegetation which might lead to alteration of habitats; (f)
community and occupational health and safety hazards largely during the construction stage of the subprojects; (g) land
acquisition and/or economic displacement; (h) safety of workers, neighboring communities, and road users resulting
from increase in traffic around and toward construction sites; (i) generation of waste (including construction and e-
waste); (j) both positive and negative impacts to Vulnerable Groups in case project activities are implemented in their
communities; (k) electric and magnetic fields; (l) occupational risks due to likely exposure of workers to microscopic glass
fiber shards/glasses that can penetrate human skin and eye and can be inhaled and associated hazards like fire risks due
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to presence of flammable materials in high-powered laser installation areas; (m) occupational hazards to workers from
contact with live power lines during construction, maintenance, and operation activities; (n) economic growth and
livelihoods diversification from increased and secured e-economy; (o) risks of gender-based violence/sexual exploitation
and abuse - sexual harassment (GBV/SEA-SH); and (p) expanded rural and urban connectivity to ICT and access to
services.
81. Based on the preliminary assessment, the project has prepared: (a) an ESMF which covers all risks and impacts
associated with ESS 1, 2, 3, 4, 5, 6, 7, 8, and 10 during construction and operation; this will guide the preparation of site-
specific ESMPs for subprojects during implementation of the project but before commencement of civil works; (b) a
Resettlement Policy Framework (RPF) to guide the development of site-specific RAPs which will be prepared during
project implementation; (c) a Stakeholder Engagement Plan (SEP); and (d) an Environmental and Social Commitment
Plan (ESCP) that has been agreed upon with the borrower and has set out the substantive measures and actions that will
be required for the project to meet environmental and social requirements over a specified period of time. The project
will also prepare and disclose after Board approval but before project effectiveness: (a) Labor Management Procedures;
and (b) a Vulnerable Groups Planning Framework (VGPF) to lay out the steps to be followed to promote sustainable
development benefits and opportunities in a manner that is accessible, culturally appropriate/inclusive for the
subprojects implemented in interest areas for vulnerable groups.
82. ESS 3 Resource Efficiency and Pollution Prevention and Management. Implementation of activities to be financed
under project sub-components may generate dust, erosion, sediments, solid and liquid wastes including oils, which are
likely to pollute water bodies and the air and land if not properly managed. Screening will determine the significance of
the likely impacts and risks and mitigation measures will be included in the sub project ESMPs. Mitigation measures will
be adopted for both construction purpose and in any construction camp to ensure surface/ground water use efficiency.
Appropriate measure will be observed to manage solid and liquid waste from the construction site and camps.
83. ESS 4 on Community Health and Safety. The implementation of some of the project components will involve civil
and structural works that may pose risks to the community during construction and operations. The project will further
evaluate the risks and impacts of investments that have not been identified at this stage but could have on the health
and safety of the local communities during construction and operation stages and propose and implement appropriate
mitigation measures.
84. The ESMPs will form a part of bidding and contractual documents for the implementation of the subprojects.
The contracted service providers and/or construction contractors will prepare site-specific Contractor Environmental,
Social, Health and Safety Management Plans based on the project-developed, and site-specific ESMPs.
85. The design of the project facilities and their construction will also ensure safety for workers and communities.
The project will take into consideration: (a) views of the communities sourced through the consultations as guided by
the SEP and (b) screening of the subprojects and development of site-specific ESMPs. The ESMP(s) will also include
Emergency Response Plans according to ESS 4 that will be mandatory for the construction period and recommended for
the operation stage. Contents and scope for the plans according to the different identified risks are described in the
ESMF.
86. The project’s traffic- and construction-related impacts within or surrounding the project worksites could affect
persons with disabilities more if adequate mitigation measures are not in place. The project will consult with and assess
risks to persons with disabilities within each community hosting the subprojects and include in the ESMPs commensurate
migration measures. These may include but not be limited to necessary signage understandable to both community and
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project workforce; consultation and sensitization of persons with disabilities in the communities about the project, risks,
mitigation measures, and available grievance redress channels; awareness raising to community and project workers on
challenges faced by, risk to persons with disability and project-prepared mitigation measures; and provision of universal
access in all sites and project-funded facilities.
87. Hazardous materials and general waste. Some potential risks are related to use of diesel, oil, batteries, electronic
wastes and general waste from camp sites as well as day to day construction activities (waste water, pallets, solid waste,
and so on), the ESMF defines the measures to avoid, prevent and mitigate adverse impact on the health and safety of
works, communities and ecosystems. The project will include measures and actions to reduce risks during storage,
transportation and final disposal of hazardous materials and general waste.
88. ESS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources. Given that the actual
sites of some of the possible infrastructure development are still unknown, this standard is considered relevant at this
point. Potential impacts to habitat may be more significant during modification/rehabilitation and installation of
infrastructure. Recommended measures to prevent and control impacts to terrestrial habitats during rehabilitation of
the right-of-way include: Siting fixed line infrastructure (for example, fiber optic cable) and other types of linear
infrastructure rights-of-way, access; roads, lines, and towers to avoid critical habitats through use of existing utility and
transport corridors, whenever possible; Avoidance of modification/rehabilitation of project activities during the
breeding season and other sensitive seasons or times of day; Revegetation of disturbed areas with native plant species.
Necessary measures and requirements should be included in bids and contracts and any ESMP or C-ESMP.
(ii) Social standards
89. DTP will be a critical enabler of socioeconomic development and transformation, especially in the rural areas
where there is a greater digital divide compared to the urban centers. The project will have an overall positive impact
on the country’s population, both urban and rural, particularly on youth through capacity development initiatives and
incentives for job creation under components 1 and 2. In addition, it will increase efficacy of public service delivery and
promote more equitable and easier access to services by citizens. The project has been designed to be gender and
disability inclusive through the following: (a) the design of the OSSCs will ensure accessibility for persons with disability,
as well as exploring the opportunity to tailor digital services to the special needs of vulnerable groups; (b) sub-
component 3.3 will also address issues of web accessibility for elderly and disabled citizens, including best practice on
interface design and user agents; (c) component 1, in particular, will seek to increase women’s access to technology, and
will undertake interventions to strengthen digital skills and foster digital entrepreneurship with special emphasis on
women, for example, by increasing women’s participation in programs of the National Center for ICT Professional
Development and Innovation. Also, in sub-component 1.1, there will be a focus on providing equivalent access to both
men and women to digital skills training.
90. The WB’s due diligence found social risks and impacts that could result from the implementation of the project.
Components 2 and 3 are expected to be implemented mainly within the existing wayleaves and government-owned
facilities and thus this will minimize the need for land acquisition but might require the clearing of encroachment on the
wayleaves. These may result in both physical and/or economic displacement. Other social impacts and risks may include
but are not limited to: (a) labor influx and associated GBV/SEA in the project area, whose risk has been rated as low as
per the GBV/SEA risk assessment; (b) increase in local inflation; (c) pressure on social amenities during construction of
some of the facilities requiring increase in non-local labor; (d) possible increase in prevalence of human
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immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS); and (e) exclusion of vulnerable groups28
and/or vulnerable persons which include but are not limited to women, the elderly, and persons with disabilities in the
consultation process of subproject activities in sub-component 3.3b, citizen digital literacy. These will be addressed by
the: (i) RPF that will guide the preparation of site-specific RAPs; (ii) ESIAs and their accompanying ESMPs and C-ESMPs;
(iii) Labor Management Plan (LMP); (iv) SEP; and (v) Vulnerable Groups Plans (VGP) of the sub-projects prepared
following the VGPF.
91. ESS 4 on Community Health and Safety. Some project sub-components (such as sub-component 2.2) may
generate labor influx and its related risks and impacts including GBV/SEA, as well as labor working conditions related
issues. The GBV risk assessment has been conducted and the risks were found to be Low. Skilled workforce may not be
available in some of the rural areas and therefore construction-related activities are likely to involve both local and
nonlocal laborers. The project workforce is expected to be small. Other social impacts and risks that are not limited to
GBV/SEA are possible increase in the prevalence of HIV/AIDS, crime and social conflict between local community and
non-local workers, pressure on social services and amenities, etc.. To manage the risks associated with labor influx and
its resultant impacts, provisions will be made in the Standard Bidding and Procurement Documents as well as in the site-
specific contractors ESMPs for the subprojects. Very early in the project implementation phase, this is expected to
culminate in the development and adoption of but not limited to the following: GBV/SEA risk mitigation plans; guidance
on labor force-host community relations; HIV/AIDS prevention and management program; child labor and abuse
prevention policy and strategy; prevention of SEA policy and standard operating procedures; and grievance redress
management system (separate for both community and project workforce). The project will also consider partnering
with nongovernmental organizations (NGOs)/civil society organizations (CSOs) within the project areas to exploit existing
platforms to manage some of these social risks as needed. The contracts under the subprojects are also recommended
to include the requirements for adoption of a code of conduct guiding the responsibilities of the contractors and their
labor. To further manage the risks of GBV/SEA, the PIU will work with HR personnel of entities implementing the
subprojects to include protection against sexual exploitation and abuse content in staff inductions, including all
contractors, consultants, temporary staff, and casual laborers. The PIU will also work with HR to ensure that procedures
to guard against hiring persons who have a record of SEA offences are put in place and applied.
92. The project applies ESS 5 on Land Acquisition, Restrictions on Land Use and Involuntary Resettlement due to
possibility of land acquisition and/or physical and economic displacement of persons in component 2. Activities under
this component may involve direct financing of communication infrastructure construction, such as laying of ducts and
establishment of other ancillary infrastructure, for example, access routes. Initial project screening and experiences from
the RCIP-TZ, however, indicate that land acquisition and involuntary resettlement of people will be minimal, as the bulk
of these activities will mainly follow existing road reserves. Network alignment will also be adjusted to address any risks
of affecting sites of cultural significance.
93. Since the project’s footprint is largely unknown at this stage, an RPF has been prepared in consultation with
relevant stakeholders and disclosed in country on November 18, 2019 and by the WB on November 20, 2019. These
documents have been updated in detail and the revised versions were posted on the MCIT website on November 9,
2020. Further stakeholder consultations on the project and the draft documents took place on November 23, 2020 and
February 10, 2021 and the outcomes of these consultations have been documented in the project’s SEP. The final RPF
was disclosed in-country on March 18, 2021 and on the World Bank’s external website on the March 19, 2021. The RPF
provides guidance on the process for preparing, reviewing, approving, and implementing site-specific RAPs where
necessary and before the commencement of any civil works. The RPF also provides guidance on the process of land
28
Under the DTP, the term Vulnerable Groups has been used to define communities that are described in ESS 7 and meet the
criteria set out in paragraphs 8 and 9 of this standard.
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acquisition, valuation of losses attributed to the project, public consultations for the purposes of land and involuntary
displacement, establishment of a functional grievance handling mechanism, and disclosure requirements. Should a
private provider undertake any new investments in infrastructure and related civil works to provide these services, they
will be required to use the RPF to guide their land acquisition and resettlement and thereby conform to national laws
and policies as well as the requirements of WB Environmental Framework’s ESS 5.
94. The implementation of sub-component 2.2 (Rural Broadband for Development) and sub-component 3.3b
(Citizen Digital Literacy), whose coverage are nationwide, may positively impact the underserved communities in the
rural areas who have been left out of access to mobile and data communications by improving access. The activities
financed by sub-component 3.3b will be made accessible, culturally sensitive, and in language understandable to these
communities to raise their awareness of government online services and increase their uptake. The project consulted
representatives of the vulnerable groups (as defined by the criteria in ESS 7 paragraphs 8 and 9 of the World Bank
Environmental and Social Framework) at the national level on February 10, 2021 and the outcomes of this consultation
will guide project design and the preparation of the VGPF as required by ESS 7. The VGPF will be prepared before project
effectiveness and will be reviewed and cleared by the World Bank before its implementation. The VGPF will lay out the
steps to be followed to promote sustainable development benefits and opportunities in a manner that is accessible and
culturally appropriate/inclusive for the subprojects implemented in vulnerable group interest areas after project
approval but before project implementation.
95. ESS 8 on cultural heritage applies to the program due to possible impact on tangible/intangible cultural resources
that may be encountered during the implementation of civil works related to the project implementation, such as
trenching for laying of cables, clearing areas for the installation of masts, and development of access roads. These risks
will be assessed and managed through the cultural resources and chance-find procedures provided in the ESMF and in
the site-specific ESIAs and their ESMPs. In addition, chance-find procedures will be included in both the contractor’s
ESMP and supervised by the construction supervision consultants and the service providers implementing the project.
96. To build capacity of the PIU under component 4, one Social Specialist (SS) and one Environmental Specialist (ES)
who are familiar with WB procedures and approaches to social risk management will be recruited to support in the
project’s Environment and Social Risk Management (ESRM), which will include but not be limited to: (a) stakeholder
engagement and management; (b) implementation of the ESMF, RPF, and the coordination of preparation of site-specific
RAPs, ESMPs, and ESIAs; (c) social inclusion; and (d) grievance redress management. The specialists will also be
responsible for the monitoring and reporting on the implementation of the ESRM in the project. In addition, the social
specialist will also work with service providers contracted under the project to require the use of the RPF to inform their
own land acquisition and resettlement policies and practices.
97. ESS 10 Stakeholder Engagement and Information Disclosure. The project footprint is not yet fully defined and
thus consultations under the project were done with stakeholders at the national level on three occasions. The first
round of consultations was conducted during the preparation of the ESMF and RPF between April 23, 2018 and May 11,
2018 with government agencies, service providers, academic institutions, and regulatory authorities. Additional
consultations at the national level with CSOs` and members of the public were conducted on November 23, 2020. For
the second round of consultation with CSOs the draft ESMF and RPF were disclosed online by the MCIT; the consultations
were advertised in two local dailies in both Kiswahili and in English; and targeted invitations were also sent to CSOs at
the national level. Consultations were also conducted by the MCIT with the CSOs representing vulnerable groups through
both a physically and virtually attended meeting on February 10, 2021. As required by ESS 10 on Information Disclosure
and Stakeholder Engagement, the project has an SEP which includes: (a) the establishment of a functional grievance
redress mechanism (GRM) with requirements of preparation of protocols to guide receipt and management of cases of
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GBV and SEA and sexual harassment and (b) the identification of stakeholders to be involved during project
implementation. The SEP presents an overall approach to the participation and inclusion of a range of stakeholders
including governmental and nongovernmental actors. Nongovernmental actors are local-level organizations, as noted
above, and national-level organizations representing persons with disabilities, vulnerable groups, and other interest
groups. The ESF documents, ESMF, RPF, SEP and the ESCP were disclosed in-country on March 18, 2021 and on the WB’s
external website on March 19, 2021.
98. During project preparation, there was an outbreak of a global pandemic, that is, COVID-19. The project’s SEP has
therefore incorporated guidelines for conducting consultation in the event of pandemic outbreaks during project
implementation. These guidelines include: (a) guidance on consultations where face-to-face interactions are a must; (b)
processes to follow and basic requirements in conducting virtual/remote consultations; and (c) alternative platforms for
stakeholder engagement and consultation where face-to-face interactions are not permitted. The preparation and
implementation of site-specific SEPs and stakeholder engagement in the subprojects will therefore ensure meaningful
consultations while complying with the project’s SEP. The GoT and World Health Organization (WHO) provided
guidelines on global pandemics Infection Prevention and Control.
99. Citizen Engagement. The project has a robust citizen engagement strategy that is defined in the SEP with a
grievance mechanism. As an indicator of citizen engagement (CE), the project will track the number of grievances
received and addressed within 30 days. The project will also track user satisfaction with the delivery of government
services, through the results framework. Also, effective consultations with project-affected persons (PAPs) and project
beneficiaries will take place during implementation. CE will be reported on in the project’s quarterly reports.
V. GRIEVANCE REDRESS SERVICES
100. Communities and individuals who believe that they are adversely affected by a WB supported project may
submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service
(GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns.
Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel
(IP) which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and
procedures. Complaints may be submitted at any time after concerns have been brought directly to the WB's
attention, and WB Management has been given an opportunity to respond. For information on how to submit
complaints to the WB’s GRS, please visit http://www.worldbank.org/en/projects-operations/products-and-
services/grievance-redress-service. For information on how to submit complaints to the WB IP, please visit
www.inspectionpanel.org.
VI. KEY RISKS
101. The overall risk to achieving the PDO is rated as Moderate. The main residual risks arise from the macroeconomic
environment, including the impact of the COVID-19 pandemic, and the fiduciary environment. Table 2 summarizes the
anticipated risks, the mitigation measures and the consequent residual risk.
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Table 2: Risk and Mitigation Measures

Risk Category and Key Risks Summary Mitigation Measures Residual Risk
Political and governance Moderate • IAs are working in close collaboration with line Political and governance:
• Restructuring of counterpart ministries, regional governments, and LGAs. Moderate. Although the
organizations, most notably the creation • Continuity with governance structure for RCIP-TZ ability of the project to
of the MCIT from the former MWTC. project, which was successfully implemented. influence political and
• Involvement of many different governance risk is limited,
ministries and agencies in the PSC. for the moment the risks
appear moderate. This
will continue to be
monitored during project
implementation.
Macroeconomic: Substantial • The pandemic is increasing the level of demand for Macroeconomic:
• Economic slowdown, notably impacts digital services, which the project proposes to Moderate due to the
from COVID-19 global pandemic, and on improve. impact of the COVID-19
the ability of the private sector to • Overall, the broader economic situation is not likely pandemic on the project,
mobilize capital. to undermine the sustainability of investments which remain uncertain
• Pandemic is associated with increased made under the proposed project, as it does not rely but could still greatly
cost of service delivery and reduced on any financial commitments or matching funds affect implementation
affordability. from the government, though it does anticipate and PCM. Nevertheless,
PCM. risk exposure is reduced
• Pandemic recovery phase marked by higher rates of due to no requirement for
economic growth. financing by the
Government.
Sector strategies and policies: • The project encourages private sector-led Sector strategies and
Substantial developments, based on the MFD approach, policies: Moderate. The
• Existing strategy and policy documents including using competitive tendering mechanisms project uses competitive
are not considered robust enough to for the pre-purchase of internet capacity (Sub- tendering based on an
ensure an open and competitive component 2.1) and the competitive allocation of MFD approach, and
telecom market. For instance, the lack project funds for expansion of rural broadband using includes a series of
of data protection legislation may be a reverse auctions (Sub-component 2.2). activities on digital
deterrent to foreign investment in the • Component 3.2 will support the development of a economy to be
sector. digital economy strategy that will provide the implemented early in the
• Expectation of preferential treatment by framework for the government’s digital strategy. project.
government for TTLC, for instance in This activity will be implemented early to make sure
rural broadband and in contracts for that, moving forward, the government strategy and
government services. accompanying policies integrate a digital-first
approach.
• A regulatory scan is planned as well as a thorough
program of capacity building and stakeholder
consultation is being pursued under the program,
notably under sub-component 3.3. A, and a forward-
looking approach to technology adoption is being
taken, as detailed in the sections above.
Technical design of the project: • To mitigate these risks, preparatory studies and Technical design of the
Substantial feasibility studies will be commissioned at an early project: Moderate, as the
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• While there is a natural progression stage to ensure that there is a high level of mitigation strategies are
from what was implemented under the technological adaptation and to provide for ‘learning implemented early to
RCIP-TZ, new technologies will by doing’ on the part of the PIU. The private sector, ensure a sound design.
nevertheless be adopted under the DTP which has a good understanding of these
(for instance, use of national remaining technologies, will lead in the implementation of sub-
and newer generation of mobile component 2.2.
technologies under sub-component 2.2 • To mitigate this risk, the project will leverage web-
on rural broadband for development), and cloud-enabled digital solutions as much as
and this introduces some element of possible to closely supervise project
risk. implementation, such as the bi-weekly virtual
• There are also risks associated with the meetings between the IA and the WB, which have
affordability of these new technologies. been a feature of the preparation phase.
This will require a deeper technical
knowledge within the implementing
agencies.
• There was no project preparation
advance, which meant that some
project preparation activities could not
be started early.
Institutional capacity for • Building on successful implementation of RCIP-TZ, Institutional capacity for
implementation and sustainability: with several members of the implementation team implementation and
Substantial reunited, including the project manager. sustainability: Moderate,
• The new Ministry has limited • Moving to a single PIU under the DTP should help as the PIU will capitalize
implementation experience with WB mitigate capacity risks. on prior PIU knowledge of
projects. • Fiduciary functions will be strengthened through recent Bank-financed
• Absorption capacity may be low. further capacity building and designation of projects, and experience
• The creation of the new MCIT from the dedicated staff financed under the project. gained during project
former MWTC introduces further • Component 4 will provide TA and capacity building preparation.
complications. for project coordination and activities, including
cross-cutting issues.
• Core functionalities and project management
activities will be targeted first, and the project will
be built from the basics.
• The WB will be proactive to encourage close
coordination between several government
agencies, including the Office of the President, the
Ministry of Finance and Planning (MoFP), the
MCIT, COSTECH, under the leadership of a strong
project steering committee and management
team, and the participation of the private sector
for the successful achievement of the project PDO.
Fiduciary: Substantial • Moving to a single PIU, rather than the dual PIU Fiduciary: Substantial29,
• Creation of new Ministry (MCIT) from structure used during RCIP-TZ, will reduce as majority of mitigation
former MWTC. procurement delays. measures are to still to be
29Residual fiduciary risk has been assessed at the appraisal stage, considering actual and planned mitigation measures at the start of project
implementation. These will be continually reviewed and updated during implementation. Once the mitigation measures have been successfully
implemented, the fiduciary risk will likely be re-evaluated as Moderate.
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• Staff have inadequate experience in • Capacity-building interventions will be financed rolled out during
managing procurement of complex under the project. implementation. (More
works, goods, and consulting work. • Required staff will be hired by the IAs to fill the detail provided in annex
• Inadequate number of procurement capacity gap identified during the FM and 1)
team members to cope with volume of procurement capacity assessment.
procurement transactions. • Continuous training on WB financial management
• The government prefers to staff the PIU policies and disbursement procedures.
with its own staff rather than external • WB fiduciary colleagues will be proactive in
support from consultants. providing training as required.
• The PIU should consider recruiting additional staff
members who are familiar with WB internal policies
and procedures, as recommended during the FM
assessment
Environmental and social: Moderate • Capacity-building activities are included in the ESCP. Environmental and social:
• MCIT is a new ministry and its present MCIT and PO-PSMGG will receive specific trainings Moderate, the risks are
institutional capacity on safeguards during implementation. DTP will develop and not likely to be significant
needs strengthening. implement measures and actions to assess and and are easily mitigated in
• Exclusion of vulnerable groups, women, manage the risks of gender-based violence (GBV) a predictable manner.
elderly, and disabled persons in the and sexual exploitation and abuse-sexual
consultation process of subproject harassment (SEA).
activities. • Provisions for inclusion and requirements for
• GBV/SEA risk in the project is rated low. engagement have been included in the SEP and
VGPF to guide implementation of all subprojects.
• The PIU will hire one Environmental Specialist and
one Social Specialist to oversee Environmental and
Social Risk Management in project implementation.
Stakeholders: Moderate • Stakeholder consultations, both virtual and face-to- Stakeholder involvement:
• Although there is a large number of face, will be used as a mechanism for promoting Moderate, as there is a
beneficiary stakeholders under the outreach and sharing best practices, feedback, and stakeholder engagement
proposed project, and although the oversight, and the proposed TC reporting to the PSC plan and national
pandemic makes coordination more will include private sector representatives. consultations have been
difficult, they are nevertheless fewer • The GoT is working on modalities to enhance the completed. This will
than for the RCIP-TZ, which was management of the NICTBB and ICT infrastructures. continue to be assessed
successfully implemented. • The project will have a GRM to receive and address during the project
• Lack of understanding or ownership of concerns from stakeholders/beneficiary implementation.
activities could lead to misalignment or communities in a timely manner.
inefficient implementation.
Other risks are Low. • Risks will continue to be monitored throughout the Other risks are Low.
• Security risks project.
• Climate change risks
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VII. RESULTS FRAMEWORK AND MONITORING
Results Framework
COUNTRY: Tanzania
Digital Tanzania Project
Project Development Objectives(s)

To increase access to high quality broadband internet services for government, businesses and citizens, and to improve the government's capacity to
deliver digital public services.
Project Development Objective Indicators

RESULT_FRAME_TBL_ PD O
Indicator Name PBC Baseline Intermediate Targets End Target

1 2
1. to increase access to high quality broadband internet services for Govt, businesses and citizens
Percentage of the population covered by

a mobile broadband network signal (3G, 52.00 60.00 70.00 75.00
4G or higher) (Percentage)
Number of Government Ministries,

Departments and Agencies benefitting
240.00 300.00 400.00 425.00
from broadband internet service
(Number)
Individuals (aged 15 and above) using the

internet, per 100 inhabitants, of which 25.00 32.00 37.00 40.00
percentage female (Percentage)
Percentage of internet users who are

46.70 47.00 47.50 48.00
female (Percentage)
2. to improve the government's capacity to deliver digital public services
Number of monthly transactions 0.00 200,000.00 400,000.00 500,000.00

accessing a public service via internet or
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RESULT_FRAME_TBL_ PD O

1 2
a mobile phone (Number)
PDO Table SPACE
Intermediate Results Indicators by Components

RESULT_FRAME_TBL_ IO

1 2
1. Digital Ecosystem
Increase in the number of digital or
digitally-enabled businesses, registered
and operational, supported by the 0.00 50.00 75.00 100.00
project (Number)
Increase in the number of female
employees in digital or digitally-
enabled businesses, registered and 0.00 50.00 75.00 100.00
operational, which are supported by
the project (Number)
Number of people obtaining new digital
skills or knowledge under the project 0.00 2,500.00 3,750.00 5,000.00
(Number)
Number of people acquiring new
digital skills or knowledge under the 0.00 1,000.00 1,500.00 2,000.00
project who are female (Number)
2. Digital Connectivity
Climate Indicator: Increase in the number
of people able to receive natural hazard
0.00 500,000.00 1,000,000.00 2,000,000.00
information and emergency warnings,
under the project (Number)
Network Quality Indicator: Average
4.85 7.50 8.75 10.00
download speeds (in Mbit/s) (Number)
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RESULT_FRAME_TBL_ IO

1 2
3. Digital Platforms and Services
Percentage of the population accessing
0.00 1.00 2.50 5.00
digital public services (Percentage)
Citizen engagement indicator: User
satisfaction with digital government
0.00 30.00 40.00
services, disaggregated by gender
(Percentage)
Percentage of respondents satisfied
with delivery of Government digital 0.00 30.00 35.00 40.00
services who are femaie (Percentage)
4. Project Management
Citizen Engagement Indicator:
Percentage of grievances which receive a 0.00 50.00 70.00 80.00
response within 30 days (Percentage)
IO Table SPACE
UL Table SPACE
Monitoring & Evaluation Plan: PDO Indicators

Methodology for Data Responsibility for Data
Indicator Name Definition/Description Frequency Datasource
Collection Collection
Percentage of the Based on operators
population covered by a reports, and call tower
signal of at least 3G and maps, backed up where
Percentage of the population covered by
preferable 4G or even 5G Annual TCRA / GSMA possible by TCRA
a mobile broadband network signal (3G,
quality, capable of carrying crowdsourced data (eg
4G or higher)
mobile data traffic, at high from social media
capacity and speed. Baseline users).
at 31 Dec 2018 for 3G was
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52 per cent and for 4G was

28 per cent.
Number of government
locations (eg Ministries,
Departments and Agencies,
Local Government Agencies, Based on tenders
Number of Government Ministries,
Regional Offices, District Annual eGA / PIU issued successfully eGA / PIU
Departments and Agencies benefitting
Offices, District hospitals, under the project
from broadband internet service
etc) receiving enhanced
internet connectivity under
sub-component 2.1 of the
project
TCRA / ICT Household
Percentage of the adult National Questionnaire, based
Individuals (aged 15 and above) using the TCRA / National Bureau
(15+) population that have Annual Bureau of on representative
internet, per 100 inhabitants, of which of Statistics / ITU
used the internet at least Statistics stratified sample of
percentage female
once in the previous month / ITU population
2018
baseline data
is from a
Percentage of total internet household
users (aged 15 or above) survey --
who are female. Internet World Bank.
Household survey of
users are defined as those 2020 "Has
Percentage of internet users who are Biennial mobile phone and PIU
who have used the internet the digital
female internet adoption.
within the last month, revolution
whether from home, work come to
or school, and whether via Tanzania?
phone, tablet, laptop or PC. Household
survey
findings on
mobile
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phone
adoption" --
conducted by
the WBG
together
with the NBS,
using a
stratified
sample of
households,
and using the
SWIFT
methodology
((Survey of
Well-being
via Instant
and Frequent
Tracking). Its
is expected
that similar
surveys will
be carried
out at
intervals
during the
course of the
project.
Number of transactions per

Annual
Number of monthly transactions month accessing a public eGovernmen Project Implementation
reporting of Government records
accessing a public service via internet or a service (ie a service offered t Authority Unit
monthly data
mobile phone by government) via internet
or a mobile phone.
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Examples might includes

paying taxes or a fine,
receiving a salary, accessing
a public record etc. This
would be based on services
supported by the project,
rather than pre-existing
ones
ME PDO Table SPACE
Monitoring & Evaluation Plan: Intermediate Results Indicators

Methodology for Data Responsibility for Data
Indicator Name Definition/Description Frequency Datasource
Collection Collection
Increase in the number of
digital business, or digitally- Number of companies
enabled businesses (eg registered, broken
making use of eCommerce down by the nature of
BRELA
or online transactions) their business. Will
Increase in the number of digital or company PIU, using data from
registered and operational Annual required work on the
digitally-enabled businesses, registered registration BRELA
in Tanzania, at the end of a definition of digital
and operational, supported by the project database
calendar year. The statistics businesses un sub-
would focus on those component 1.2
businesses supported under (NISMIS)
the project, under
component 1
This indicator measures the
Examination of the
Increase in the number of female number of female
records maintained by
employees in digital or digitally- entrepreneurs and female
Annual BRELA BRELA, the Business PIU / BRELA
enabled businesses, registered and employees in digital
Registrations and
operational, which are supported by businesses supported under
Licensing Agency
the project the project, under
component 1.
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Number of people
enrolled on training
The number of people
programs supported
receiving training through
Statistics directly under the
the project, for instance
Number of people obtaining new digital Annual collected by Digital Tanzania PIU
under the Digital Ecosystem
skills or knowledge under the project PIU program, principally
component, or for the sub-
under component 1
component on public sector
and sub-component
capacity building.
3.3.
The number of people

receiving training through Number of people
the project who are female, enrolled on training
Number of people acquiring new for instance under the programs supported
Annual PIU PIU
digital skills or knowledge under the Digital Ecosystem directly under the
project who are female component (1), or for the Digital Tanzania
sub-component on public program.
sector capacity building
(3.1).
This indicator measures the
Based on number of
increase in the number of
people covered in areas
people able to receive alerts
where project
as to natural hazards (eg
interventions have
extreme weather events, or
been financed to
Climate Indicator: Increase in the number other emergency
increase the coverage
of people able to receive natural hazard information, as a result of Annual UCSAF / PIU UCSAF / PIU
of mobile broadband
information and emergency warnings, project interventions. This is
signal (3G, 4G and
under the project expected to result from the
higher). Data collection
increased availability of
will be based on UCSAF
SMS-based alert system in
tenders that are
rural areas where the
successfully completed.
project has facilitated
investment, for instance
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bringing rural communities

within range of a cellular
communications system for
the first time.
Cable.co.uk
The average speed (but other Average download
experienced by users for sources such speeds on broadband
broadband networks (both as Ookla or networks, sampled by
fixed and mobile) in the TCRA may pinging users, remotely, PIU, using published data
Network Quality Indicator: Average Annual
country, sampled by pinging also be used at different times of sources.
download speeds (in Mbit/s)
users, remotely, at different if available or day and week.
times of day and week. if based on a Measured in Megabits
Measured in Megabits per larger sample per second (Mbit/s)
second (Mbit/s) size).
Based on the number

of online transactions
eGovernmen for government
The number of people who
t Authority, services, by unique
have accessed a digital PIU, based on data from
with baseline users, to generate the
Percentage of the population accessing public service in Tanzania, Annual the eGovernment
data from number of unique users
digital public services within the last year, as a Agency.
WBG Findex of digital government
percentage of the
survey 2017 services, in a particular
population of Tanzania.
year. If possible, broken
down by gender.
Annual (or Annual customer

Percentage of respondents
potentially satisfaction survey, or
who responded "satisfied" PIU, based on data from
Citizen engagement indicator: User based on eGovernmen potentially a feedback
or "very satisfied" to a the eGovernment
satisfaction with digital government feedback t Authority form to be filled in by
survey of usage of digital Authority.
services, disaggregated by gender after users after usage of a
government services,
usage) particular service.
disaggregated by gender
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Annual (or
Percentage of respondents Annual questionnaire
potentially
who responded "satisfied" survey, or potentially
Percentage of respondents satisfied based on eGovernmen PIU, based on data from
or "very satisfied" to a based on responses to
with delivery of Government digital real-time t Authority eGA
survey of usage of digital real-time feedback
services who are femaie feedback
government services, who form
data)
are female
Percentage of grievances of Based on PIU logging of
Citizen Engagement Indicator: Percentage complaints, relating to the grievances received and
Annual PIU PIU
of grievances which receive a response project, which are process for responding
within 30 days responded to within 30 days to them.
of receipt (annual average)
ME IO Table SPACE
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ANNEX 1: Implementation Arrangements and Support Plan
Environmental and Social (Including Safeguards)
1. The MCIT will be responsible for the implementation of the SEP, ESCP, LMP, VGPF, RPF, and ESMF. The MCIT and all
project implementation partners will prepare site-specific LMP, VGP, ESMP, and RAPs and update the SEP with site-specific
details as they are known as necessary for each of the subprojects of the DTP. The MCIT will need to recruit one SS and one
ES who will work closely with the project coordinator and the contractors in implementing and monitoring site-specific plans
prepared for the subprojects. Both the SS and ES will help the project staff and the relevant subproject contractors in the
implementation of the project standard documents and site-specific plans prepared for the subprojects. The SS and ES will
monitor and report on the status of the ESRM implementation in all relevant subprojects of the DTP.
Fiduciary Arrangements
Financial Management Arrangements
2. FM assessment was carried out in line with the World Bank Policy on IPF issued on November 10, 2017.
3. The project will be implemented by the MCIT and the PO-PSMGG. The MCIT and the PO-PSMGG jointly implemented
the RCIP-TZ, and the project will build on the lessons learned from it. The FM arrangements under the RCIP-TZ were
satisfactory for both ministries. There are no overdue audit reports or ineligible expenditures awaiting refund by either
ministry.
4. Budgeting Arrangements. The MCIT and PO-PSMGG will submit the annual work plan and budget (AWPB) based on the
agreed work program to be financed. The annual AWPB will be consolidated by the PIU and submitted to the Task Team
Leader (TTL), by April 30 each year, for no-objection by the TTL. Also, AWPB preparation will comply with the government
budget calendar and will be included in the Medium-Term Expenditure Framework of the MCIT and PO-PSMGG, respectively,
consistent with the Budget Act of 2015 and Budget Regulations of 2015. The ministry uses the Central Budget Management
System for budget documentation purposes which is linked to the Integrated Financial Management Information System
Government Financial System codes. The project will incorporate the AWPB in the Interim Financial Reports (IFRs), and for
monitoring purposes, the project will establish the variance between the budget and actuals and provide explanations for
any significant variances, and how the project management plans to address them. The World Bank will monitor the
implementation of the work plan and budget through the IFR’s reviews and during the periodic implementation support
supervision missions.
5. Accounting. The PIU will use the World Bank Client Connection Payments System for the project, and this will be
documented in the project Financial Procedure Manual (FPM), which forms a part of the PIM. The accounting activities will
include the management of bank accounts using the payment process of the Tanzania Inter-Banking Settlement System
(TISS), and reconciliations, assets recording and management, accounting of commitments and accrued
expenditures/liabilities, and preparation of annual PFS will be documented in the FPM. The project has developed the PIM
and the FPM, and they have integrated comments from the WB fiduciary experts. These are required to be finalized and
approved by the World Bank by the date of project effectiveness.. The PIM will include the details of the FPM. The books of
accounts to be maintained specifically for the project will include cash book, ledgers, journals, fixed asset register, and
contract register. The accounts codes (Chart of Accounts) for the project will include the classifications of sources and
application of funds (expenditures). The accounting department is headed by a chief accountant and s/he will be responsible
for supervising the project accountants. The segregation of duties for the initiation, authorization, and approval of accounting
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transactions are clearly defined in the PIM for the purposes of processing the financial transactions of the project.
Internal Control Arrangements and Internal Audit
6. Internal Control Arrangements. Adequate internal control systems are in place at the MCIT and PO-PSMGG. The PIU
has built on the internal controls that existed under the RCIP-TZ and have put in place satisfactory levels of segregation of
duties for the project. The internal controls will ensure that the funds are utilized for the purpose intended. The manual
describes the accounting system including transaction cycles, funds flow processes, accounting records, supporting
documents, the accounting processes from the initiation of a transaction to its reporting, and the financial reporting process
to be used for the preparation of the financial statements.
7. Internal Audit Function. The internal auditors of the MCIT and PO-PSMGG will be responsible for the internal audit
activities of the project. The project will use ministries’ line internal control units for internal audit activities of the project.
The internal audit uses the risk-based audit approach to carry out its work. The internal audit will submit quarterly internal
audit reports to the head of the PIU and the PSs of the MCIT and PO-PSMGG. The external auditor’s report will also be
submitted to the World Bank six months after the end of each financial year.
Funds Flow Arrangements
8. Adequate funds flow arrangements are in place. The project will maintain a single US dollar DA at the BoT and a project
bank account in Tanzanian shillings at a commercial bank for the purposes of implementing the project. The proceeds of the
loan will flow from the World Bank into the DA held at the BoT. Funds from the DA at the BoT will be used for expenditure
that does not exceed the agreed threshold, and the operational account at the commercial bank will be used for payment of
minor expenditures of the project. The diagram below shows the funds flow arrangement. The project will submit a cash flow
forecast for six months, against which the initial disbursement will be based. Subsequent disbursements will be based on six
months forecast net of cash balance at the end of the quarter to which the IFRs relate.
Disbursement Methods
9. The project allows four disbursement methods including advance, reimbursement, direct payment, and special
commitments. Under the advance method the project will disburse against six-monthly cash forecasts. The project will submit
a six-months cash forecast for the initial disbursement. Subsequent disbursements will be based on six-month cash forecast
net of the closing cash balance for the previous quarter. Details of the disbursement methods are enshrined in the World
Bank Disbursement Handbook, and they will be included in the Disbursements and Financial Information Letter (DFIL). The
DFIL was agreed at negotiations (April 22-23, 2021) and will be issued by project effectiveness.
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Figure 2: Proposed Funds Flow Arrangement
IDA
Project Designated Account

in BoT (USD)
Project Operating Account

in commercial bank (TZS)
Payment to suppliers, vendors and project eligible

expenses
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Table 3. Risk Assessment Matrix

Risk Rating Mitigation measures Residual
prior to
mitigation
Budgeting. Lack of detailed annual H The project shall prepare the AWPB based on the agreed S
work planning and budgeting which upon work program as defined in the PAD and PIM. The PSs
may limit effective monitoring of of the MCIT and PO-PSMGG both shall have oversight
the AWPB. responsibility for approval of the AWPB for their MDA,
consistent with the Budget Act of 2015 and Budget
Coordination issues by the MCIT Regulations of 2015. The project shall submit quarterly IFRs
and PO-PSMGG. and the comparison of the budget versus actual of the
AWPB shall be included in the IFRs. The WB shall monitor
the implementation of the AWPB through quarterly IFRs
and FM supervisions and recommend the mitigations
measures for addressing any significant variances between
the budget and actual.
Accounting. Weak accounting S The MCIT and PO-PSMGG both will deploy professionally M
systems that may potentially not be competent accountants to the project. The bank accounts
able to adequately record and shall be managed using the TISS. An FPM and PIM will be
report on transactions. developed, and it will include detailed accounting
procedures for the project. The accountants shall be
Inexperienced and/or lack of deployed to the project based on a ToR acceptable to the
professional and competent WB. The WB shall provide FM capacity building training to
accountants who would manage the the accountants.
accounting activities of the project.
Financial Reporting. Delays and/or S The IFR template was agreed at negotiations and the M
the submission of poor quality IFR reporting template shall be incorporated in the accounting
content to the WB. software for the project. The WB will review the IFRs for
accuracy and timeliness of submission.
Internal Control. Weak control H The PSs of the MCIT and PO-PSMGG both shall be S
environment due to: (a) weak responsible for the enforcement of all internal controls
internal controls and management arrangements as outlined in the PFM law and regulations,
oversight; (b) weak audit committee financing agreement, PAD, and PIM.
and lack of effective internal audit
activities; and (c) anti-corruption The internal audit unit of the MCIT and PO-PSMGG shall be
guidelines for the project. responsible for the internal audit activities of the project
and they shall submit quarterly internal audit reports to the
PSs of the MCIT/PO-PSMGG.
The project shall incorporate corruption prevention and

reporting mechanisms in the PAD, FPM, and PIM and shall
collaborate with the Anti-Corruption Bureau to fight
corruption in the project.
The WB shall review the implementation of the internal

controls’ arrangements through implementation support
supervision missions and technical reviews. The ToR for the
external auditors shall include a requirement for them to
review the internal control arrangements.
Funds Flow. Delays in submitting S The FM capacity building including on client connection M
withdrawal applications in client shall be provided to the project accountants and the project
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Risk Rating Mitigation measures Residual

prior to
mitigation
connection to access the loan and shall use the IFRs method-based disbursement which
implement. allows for the project to disburse based on six-month cash
forecast.
Auditing. Inappropriate audit S The CAG of Tanzania shall audit the project on ToR S
opinion due to limited scope and acceptable to the WB. The ToR shall include the audit
coverage. Lack of follow-up on scope, coverage, and timing and it will include a
implementation of the audit requirement for audited financial statements to be
findings. accompanied by a management letter.
The project and the WB shall prepare a ‘remediation action

plan’ which shall outline the responsibility and the timeline
for the implementation of the audit recommendations by
the project. The WB will monitor the implementation of the
RAP during supervision missions. The CAG will also review
the RAP during the audit exercise for the ensuing fiscal year.
Overall FM Risk Rating S The overall FM risk is considered is Substantial30. S
Note: H = High, S = Substantial, M = Moderate, L = Low.
Procurement Arrangements
10. Procurement Procedures: Procurement for the project will be carried out in accordance with the ’World Bank
Procurement Regulations for IPF Borrowers under Investment Project Financing’, dated November 2020 (hereafter referred
to as ‘Procurement Regulations’); Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by
IBRD Loans and IDA Credits and Grants (revised July 1, 2016); and the provisions stipulated in the Financing Agreement.
11. PPSD and PP. As required by the Procurement Regulations, a PPSD has been developed and revised to take account of
inputs from WBG fiduciary specialists. It was approved by the WB on April 9, 2021 and agreed at negotiations. Based on the
PPSD, a PP to cover activities for at least the first 18 months has been prepared to set out the selection methods to be
followed by the Recipient in the procurement of goods, works, non-consulting services, and consulting services financed by
the WB. The PP will be updated at least every 12 months, or as required, to reflect the actual project implementation needs.
Each update of the PP shall require WB approval. All PPs will be publicly disclosed in accordance with the WB disclosure
policy. For each contract to be eligible for financing by the credit, different procurement methods, estimated costs, prior
review requirements, and time frame will be agreed upon between the Government and the Wb in the PP.
12. STEP. The WB’s system will be used to prepare, clear, and update PPs and conduct all procurement transactions for
activities under the project. As part of the preparation, MCIT and PO-PSMGG staff have been trained in STEP.
13. Procurement Publications. The MCIT in consultation with the PO-PSMGG will be required to prepare and submit to the
WB a General Procurement Notice. The WB will arrange for its publication in United Nations Development Business (UNDB)
online and on the WB’s external website. Specific Procurement Notices for all international competitive procurements and
Requests for Expressions of Interest for all consultancies estimated to cost not less than US$300,000 shall be published in at
30Residual fiduciary risk has been assessed at the appraisal stage, considering actual and planned mitigation measures at the start of project
implementation. These will be continually reviewed and updated during implementation. Once the mitigation measures have been successfully
implemented, the fiduciary risk will likely be re-evaluated as Moderate.
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least one newspaper of national circulation in the borrower’s country, or in the official gazette, or on a widely used website
or electronic portal with free national and international access, and in UNDB online and the WB’s external website through
STEP.
14. Procurement Templates. The WB’s Standard Procurement Documents (SPDs) shall be used for procurement of goods,
works, and non-consulting services under International Competitive Procurement. National bidding documents may be used
under National Procurement Procedures (NPP) subject to the exceptions stipulated in the textual part of the PP. Similarly,
the selection of consultant firms shall use the WB’s SPDs, in line with procedures described in the Procurement Regulations.
15. Public procurement in Tanzania is governed by an act (Public Procurement Act) that was amended and became
effective on July 7, 2016. The associated Regulations for the amended act have been published. The act will be applied for
procurements below the defined thresholds involving NPP. Under the act, procurement functions remain decentralized to
procuring entities with the Public Procurement Regulatory Authority (PPRA) continuing to provide oversight functions in
public procurement. In addition, the amended act has maintained the definitions of fraud and corruption with regard to
coercive practices, collusive practices, and obstructive practices. The amendments have been published in the Government
Gazette of the United Republic of Tanzania (URT) No.28 Vol.97 dated July 8, 2016 and Government Notice No. 333 of
December 30, 2016, respectively. The reasons for the above amendments were the long duration of procurement processes,
issues with integrity and professionalism, constraints to commercially oriented government companies/institutions, lack of
and failure to apply approved standards for common items and services required by the GoT, and differences in procurement
procedures used by LGAs and those used by other procuring entities. The need for approval of exceeded budget, previously
required from approving authority, has also been amended. The amendments also emphasize submitting details, not just a
list of procurement contracts awarded and the use of the Procurement Management Information System. The amended act
also protects local content and firms. Furthermore, the amended regulations stipulate that contracts exceeding TZS 1 billion
will need vetting by the Attorney General’s Office before signing. This is an increase from the previous threshold of TZS 50
million.
16. The amended act has also reduced the cool-off period from 14 days to 7 days, during which time an intention to award
the contract is communicated to all bidders, giving them an opportunity to submit a complaint if any on the proposed
award. Furthermore, the procurement complaint review was changed to a two-tier process, with the PPRA no longer involved
in the review of complaints (see figure 3). Thus, this leads to a substantial reduction in the overall time for handling
complaints. Otherwise, the overall basic principles of the public procurement and general institutional arrangements have
remained the same. The amendment has introduced, among others: (a) mandatory inclusion of local firms and experts in
consultancy contracts; (b) domestic preference for both international and national competitive bidding (NCB); (c) a
requirement to set aside contracts to be used for capacity building of local firms; and (d) a requirement to set aside contracts
below a set threshold to be awarded to local firms only.
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Figure 3: Revisions to procurement complaints review process
17. For better implementation of the amended act, a set of regulations have been issued; the Public Procurement
Regulations 2016 and Government Notice No. 121 of April 22, 2016. These are supplemented by the LGAs’ (Establishment
and Proceeding of the Tender Boards) Government Notice No.177 of 2007 for procurements under the LGAs. In line with the
issued regulations, various documents as working tools have been issued, including Standard Bidding Documents
(Procurement of Works, Procurement of Goods, and Procurement of Non-consulting Services), Standard Request for
Proposals, Guidelines on the Tenders Evaluation (Works, Goods, and Non-consulting Services), Guidelines on the Technical
and Financial Proposals Evaluation and Report Preparation, Guidelines for Preparing Responsive Proposals, Guidelines for
Preparing Responsive Bids, and Procedural Forms. All these documents are accessible on the PPRA’s website free of charge.
18. The amended act has been reviewed by the WB and found to be satisfactory to a large extent, except for the following
provisions: (a) there will be no preference accorded to domestic suppliers and contractors under NCB for goods, non-
consulting services, and works under this project; (b) there should be no mandatory requirement for inclusion of local experts
and firms for the consulting assignments; (c) negotiations with the lowest evaluated bidder to reduce price in the case of
goods, works, and non-consulting services where competitive methods have been used shall not be allowed; (d) the fixed
budget method shall not be used for goods, works, and non-consulting services; and (e) procurement standards established
and approved by the GoT may be used, provided that they are not restrictive. Furthermore, in accordance with paragraph
5.4 of the Procurement Regulations, the following shall be observed: (a) the request for bids/request for proposal documents
shall require that bidders/proposers submitting bids/proposals present a signed acceptance at the time of bidding, to be
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incorporated in any resulting contracts, confirming application of, and compliance with, the WB’s Anti-Corruption Guidelines,
including without limitation to the WB’s right to sanction and the WB’s inspection and audit rights and (b) rights for the WB
to review Borrower’s procurement documentation and activities.
19. Procurement of Works. Works contracts procured under this project might include limited deployment of fiber optic
cables, wiring of buildings for in-building telecommunications networks (passive infrastructure) and building of ducts;
rehabilitation/construction of buildings for OSSCs (sub-component 3.1); construction of infrastructure for Government
Communications Network (GovNet) extension (sub-component 2.1), construction of the ICT Professional Development
Center (sub-component 1.1) and connectivity for last mile and rural broadband connectivity (sub-component 2.2).
Procurement for goods will use international or national procurement procedures, as guided by Procurement Regulations.
For procurement involving national competitive procurement, the Borrower may use its own procurement documents,
acceptable to the WB. Requirements of paragraphs 5.3 to 5.6 of the Procurement Regulations shall be observed when using
the country’s own procurement procedures, subject to the conditions stated in the textual part of the PP.
20. Procurement of goods. Goods to be procured under this project will include a national addressing and postcode system;
a national ICT statistics management information system; government connectivity, rural broadband for connectivity;
government cloud and infrastructure; and items to support project implementation and monitoring (office equipment and
ICT equipment for tracking, and so on). Procurement for goods will use international or national procurement procedures,
as guided by procurement regulations. For procurement involving national competitive procurement, the Borrower may use
its own procurement documents, acceptable to the WB. Requirements of paragraphs 5.3 to 5.6 of the Procurement
Regulations shall be observed when using the country’s own procurement procedures, subject to the conditions stated in
the textual part of the PP.
21. Selection of consultants. Consultancy services under this project will include technical support consultancies (digital
youth, innovation, and talent development for industrial competitiveness, legal, regulatory, and fiscal reform; digital literacy
and capacity building; digital economy—including enhancing digital tax collection, and so on). The Quality- and Cost-Based
Selection (QCBS) selection method will be used, whenever possible. Other selection methods, as stipulated in paragraph 7.2
of Section VII of the Procurement Regulations, may also be used. Contracts for consultancy assignments estimated to cost
less than US$300,000 or equivalent may be contracted through the selection based on the Consultants’ Qualifications (CQS).
Short lists of consultants for services estimated to cost less than the equivalent of US$300,000 per contract may be composed
entirely of national consultants in accordance with relevant procurement regulations. However, if foreign firms express
interest, they will not be excluded from consideration.
22. Operating costs. Operating costs shall consist of operating and maintenance costs for vehicles, office supplies,
communication charges, utility charges, travel expenses, per diem and travels costs, office rental, training costs, workshops
and seminars and associated costs, among others. These items will be procured using the Borrower national procurement
and administrative procedures acceptable to the World Bank including selection of project implementation support
personnel.
23. Training and workshops. Training and workshops will be based on capacity needs assessment. Detailed training plans
and workshops activities will be developed during project implementation and included in the project annual workplan and
budget (AWPB) for the WB’s review and approval. The annual training plan will identify, inter alia: (a) the training envisaged,
(b) the justification for the training, (c) the personnel to be trained; (d) the duration for such training; and (e) the estimated
cost of the training. At the time of the actual training, the request shall be submitted to the WB for review and approval.
Upon completion of the training, the trainees shall be required to prepare and submit a report on the training received.
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24. Project Preparation Advance. The GoT did not request a project preparation advance or the use of retroactive financing
under the project.
25. Procurement Management Arrangements. It is anticipated that a PIU will be set up for implementation of the project.
One procurement staff from each implementing entity (MCIT and PO-PSMGG) will be dedicated to the project and be part of
the established PIU.
26. Procurement risk assessment. Implementation of the project activities will generally be mainstreamed within existing
government entities and structures. Procurement activities will be managed by a single PIU under the MCIT. This is a different
approach than that used under the RCIP-TZ where separate project management units were maintained in the MCIT and PO-
PSMGG.
27. A capacity assessment of the entities to implement project procurement activities was carried out in January 2019
and in October 2019. The assessment reviewed the organizational structure, functions, staff skills and experiences, adequacy
for implementing the project, and the interaction between the project staff responsible for procurement. For the MCIT, the
Procurement Management Unit (PMU) has four staff, who are all relatively new to the MCIT, but three of them have some
knowledge of procurement using WB procedures (old guidelines) before they were transferred to the MCIT (including
Sustainable Management of Mineral Resources Project (P096302), Energy Sector Capacity Building Project (P126875), and
Water Sector Development Project (P087154)). Under the national budget, there has been no national competitive tendering
for the MCIT, with major procurement carried out using restricted tendering procedures. In FY2018/19, the MCIT had a score
of 98.4 percent under a PPRA performance audit. This was an improvement from the FY2016/17 audit with a score of 75
percent with major issues identified in the PPRA audit related to (a) Tender Board members not having received training on
the Public Procurement Act (PPA); (b) the PMU not maintaining and archiving procurement records; (c) lack of Tender Board
approval for some documents; (d) tenders not evaluated based on criteria stated in bid documents; (e) awarding tenders
beyond tender validity period; (f) no evidence of performance securities for signed contracts; (g) inadequate contract
management, including delayed payments; and (h) inadequate space and facilities for procurement records. With new MCIT
procurement staff, major issues relate to, (a) inadequate knowledge and skills in WB procurement procedures, particularly
the Procurement Regulations and STEP; (b) some members of the Tender Board still not trained in the PPA; (c) inadequate
contract management skills; (d) inadequate office equipment for the staff (computers, printers, scanners, photocopiers); and
(e) procurement record keeping system needs to be established, although space is no longer an issue. For the PO-PSMGG,
the PMU in Dodoma has a total of five procurement staff. Although three of the staff were with the PO-PSMGG PMU during
the implementation of the World Bank-financed RCIP-TZ using the old guidelines, their participation was very minimal, with
little knowledge acquired. Under the national budget, there has been no national competitive tendering for the PO-PSMGG,
with major procurement carried out using restricted tendering procedures for goods and no consultancy services. In
FY2018/19, the PO-PSMGG had a score of 98.43 percent under a PPRA performance audit. Major issues in the audit related
to (a) lack of Tender Security Declarations and (b) contract management issues including non-adherence to delivery period
and goods warranties. For the new project, major issues for the PO-PSMGG relate to (a) inadequate knowledge and skills in
WB procurement procedures, particularly the Procurement Regulations and STEP; (b) some members of Tender Board still
not trained in the PPA; (c) inadequate contract management skills; and (d) the need for a procurement record keeping system
to be established.
28. The overall project risk for procurement was assessed as Substantial. The risk would be reduced to a residual rating of
Moderate once the mitigation measures proposed in table 4 are implemented.
Table 4– Procurement Risks and Mitigation Measures
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Risk Mitigation Measure Time Frame Responsibility

Inadequate knowledge and Training in WB Within two months of MCIT and PO-PSMGG in
skills in WB procurement Procurement Regulations project effectiveness. consultation with the WB.
procedures, particularly the and STEP, using an
Procurement Regulations and accredited WB training
STEP. institution.
Inadequate contract Training in contract Within six months from MCIT and PO-PSMGG.
management skills. management. project effectiveness.
Lack of essential office Provision of office Within three months of MCIT
equipment equipment. project effectiveness.
(computers, scanners, and so
on).
Inadequate record filing and Establish a sound filing and Within three months of MCIT and PO-PSMGG
record management record management system project effectiveness.
system. including training
responsible staff.
Lack of knowledge in the Training of Tender Board Within six months from MCIT and PO-PSMGG
Tanzania PPA by Tender Board members in PPA. project effectiveness.
members.
29. Thresholds for Prior Review, Procurement Approaches and Methods. The PP sets forth those contracts which shall be
subject to the WB’s prior review. All other contracts shall be subject to post review by the WB. A summary of prior review
and procurement approaches and methods thresholds for the project are indicated in tables 5 and 6, based on the
procurement assessment.
Table 5 – Thresholds for Goods, Works, and Non-Consulting Services
Procurement Approaches and Methods (US$, millions)

Prior Review (US$,
Category Open International Open National Request for
millions)
Quotations
(RFQ)
Works ≥ 10 ≥ 15 < 15 ≤ 0.2
Goods, IT, and non-consulting
≥2 ≥5 <5 ≤ 0.1
services
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Table 6 – Thresholds for Consulting Services

Category Prior Review Short List of National Consultants
(US$, millions) Consulting Engineering and Construction Supervision
Services
Consultants (Firms) ≥1 ≤ 0.3 ≤ 0.3
Individual Consultants ≥ 0.3 n.a. n.a.
Note: General - ToR for all contracts shall be cleared by the WB.
(a) Shortlist for consultancy services for contracts estimated to be less than US$300,000 equivalent per contract
may be composed entirely of national consultants.
(b) Consultancy services for contracts estimated to cost US$300,000 equivalent and above per contract shall be
advertised in UNDB online, Tanzania PPRA, MCIT and PO-PSMGG websites, and the WB’s external website in
addition to advertising in national newspapers in accordance with the provisions of paragraph 2.5 of the
Consultants’ guidelines.
30. Record keeping. The implementing entities (MCIT and PO-PSMGG/PIU) will be responsible for record keeping and filing
of procurement records for ease of retrieval of procurement information. In this respect, each contract shall have its own file
and should contain all documents on the procurement process.
31. Monitoring. M&E of procurement performance will be carried out through WB implementation support and post
procurement review missions. On the other hand, the PPRA will monitor and evaluate the procurement in line with prevailing
Tanzania Procurement Regulations.
32. Frequency of Procurement Supervision. In addition to the prior review supervision to be carried out from WB offices,
the capacity assessment of the implementing agencies recommends one supervision mission every 12 months to visit the
field operations and carry out post review of procurement actions.
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ANNEX 2: Detailed Project Description
COUNTRY: Tanzania
1. The DTP aims to assist the country in harnessing its digital potential, ensuring that all citizens and businesses have
access to high-quality, low-cost connectivity; that public services are easily and securely accessible online; and that the digital
economy is driving growth, innovation, and job creation. Across the globe, digital technologies are rapidly transforming the
way people, businesses, and governments communicate and access information and how they transact and deliver services.
Tanzania has the opportunity to embrace this trend, taking proactive steps to ensure that its citizens, businesses, and
institutions are equipped to participate, innovate, and flourish in an increasingly online, digital-first environment. This vision
will require a long-term commitment to making the investments and policy reforms needed to increase connectivity, spur
private sector ICT investment and innovation, and develop a new generation of digital leaders and creatively use technology
to improve the efficiency and impact of public services.
2. Tanzania has made notable strides in the development of digital public services applications and delivery capacity in
recent years, but significant gaps and opportunities for leapfrogging remain. The RCIP-TZ facilitated the development and
piloting of a number of digital services and platforms. These include the national business portal, a digital birth registration
system, e-procurement, e-office applications for the government, telemedicine, and a mobile services portal which hosts
services such as utility bill notifications, health insurance verification and tracking, pension notifications, fuel price
notifications, voter verification, and government job application, amongst others. Nonetheless, the country ranks 139 out of
193 countries in the 2018 UN e-Government index, an improvement since 2014 (146), but behind regional peers such as
Rwanda (120) and Kenya (122). Many piloted applications have only recently been completed and are yet to be scaled up to
reach a broad range of users. With the increasing access to connectivity, there is nearly unlimited scope to increase digital
public services offerings. Technological and business model innovations have likewise created opportunities to leverage
significant cost savings, reduce the time for deployment, and increase impact of new digital services by sharing IT
infrastructure, software, data, and HR across all government service delivery entities.
3. This ambitious program will follow a phased approach. This project focusses on strengthening Tanzania’s core Digital
Foundations—closing the connectivity gap, increasing market competitiveness and investment, and strengthening the
digitally enabled service delivery infrastructure and capacity within the government. It is possible to envisage a second phase,
or additional financing, that would focus on Tanzania’s Digital Acceleration, leveraging improved connectivity and enhanced
capacity for public digital service delivery to accelerate growth of the digital economy, encouraging private and public
innovation utilizing digital technology, strengthening and deepening robust cybersecurity capabilities for the digital economy,
and supporting the expansion of digital public services offerings across key sectors. Both phases will involve collaboration
with education and health sector initiatives as well as with the private sector to strengthen digital skills development to equip
citizens and businesses with the capability to use technology to improve their livelihoods today and to thrive in the digital
economy of tomorrow.
4. The Borrower has requested an estimated IDA financing envelope of US$150 million to support the DTP. The
achievements of this project are expected to include: (a) addressing barriers to enhanced telecom market competition and
private investment including adoption and enforcement of policies on Open Access and Infrastructure Sharing for the
backbone communications infrastructure; (b) substantially raising the percentage of Tanzania’s citizens that can access
broadband internet services; and (c) improved government efficiency and ability to deliver services to citizens in a more
effective, timely, decentralized, and cost-efficient way by leveraging shared government communications infrastructure and
the OSSCs.
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5. A number of interrelated factors are constraining private sector investment and competitiveness critical to closing
Tanzania’s digital divide and creating a strong foundation for growth of the digital economy. These include:
(a) Underinvestment in backbone network infrastructure. Low-cost, high-quality, and geographically widespread
fiber-optic backbone networks are essential to provision of telecom services. To date, the NICTBB has deployed
7,910 km of fiber, though a total of 15,000 km are targeted by 2025. Also the network has too few loops to create
sufficient redundancy to protect from cuts, especially for cross-border links. The network reportedly suffers from
shortage of capacity and lack of reliability and lacks sufficient points of presence to meet market demand.
Furthermore, private operators face significant barriers to investing in their own backbone infrastructure or to
complete the missing links in the NICTBB.31 High prices for right-of-way further deter investment.32 Prices for
wholesale capacity have come down recently, but much more has to be done to attract more usage and investment.
Price trends need to respond to technological change and market trends. For ICT infrastructure development and
investment, the government will have to collaborate with different ICT stakeholders to ensure improved
performance of the existing infrastructure so as to attain Tanzania’s targets for digital development.
(b) Low levels of income, digital literacy, and domestic market size. Consumers of ICT services are highly price
sensitive given the low levels of average income in Tanzania. Combined with aggressive competition in the mobile
retail market, this has led to low marginal revenues for service providers, which discourages investment in
infrastructure and services in rural areas where there isn’t a sufficient customer base to overcome the low margins.
The lack of digital literacy among a wide swathe of the population and lack of relevant digital content (online
services, marketplaces, information, and media, in local languages), together with low levels of smartphone
ownership, limit demand for ICT services and suppress the addressable customer base. Addressing these dual
challenges will require interventions to incentivize rollout of services in rural areas, narrowing the digital literacy
gap, creating high demand digital public services, and fostering a domestic and regional environment/market
conducive to creation of locally and regionally relevant digital content.
(c) Constrained online trust environment. An uncertain data privacy and protection legislative regime and the need
for strengthening cybersecurity governance, standards, and operational and technical capabilities impede trust in
Tanzania’s online transaction environment for investors and the private sector.
6. The project utilizes the MFD approach to use limited public funding to leverage the maximum amount of investment
from the private sector and other development partners, and to ensure a high impact from public investment. The principle
underlying MFD is to use private sector investment in infrastructure, wherever possible, and to use public funds sparingly, as
a way of leveraging private sector investment. Two examples of this in the project are:
• The use of government pre-purchase of internet capacity under sub-component 2.1, so that the government acts
as an anchor tenant to encourage greater network investment; and
• The use of reverse auctions under sub-component 2.2, where public funds are allocated to the operators who can
use them most efficiently.
31 With the exception of Halotel, which has deployed 19,000 km of fiber, primarily in rural areas, whereby a number of fiber pairs on the network
will eventually be made available for use by the NICTBB. The other major operators, Airtel, Tigo, Vodacom, and Zantel, have been prevented from
constructing their own fiber backbone. Nevertheless, they have formed the Fiber Consortium, which has constructed some 400 km of metro fiber.
32 The TARURA charges an initial charge of US$1,000 and an annual charge of US$1,000 per km of fiber. By comparison, there are zero charges in
Rwanda while Zambia charges only an initial fee of US$503 per km and no annual fee.
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7. The project places emphasis on creating a conducive enabling environment to encourage private sector investment
in infrastructure and services, notably through the regulatory scan in sub-component 1.1, the studies planned on rural
broadband under sub-component 2.2 and on the digital economy under sub-component 3.1. Public financing will only be
utilized to meet public needs and to address market failures, providing incentives for private sector investment through
public-private partnerships rather than creating competing public infrastructure or services. It will build on the successful
private partnerships for rural connectivity established under the RCIP-TZ which leveraged more than US$2 in private
investment for every US$1 in project investment, raising about US$100 million in total and bringing an additional 2.5 million
citizens within coverage of mobile networks; a good example of private capital mobilization. Finally, the increase in digital
skills and new digital public service offerings is expected to drive demand for private investment in connectivity and
complementary digital services and applications, which would be further expanded in a possible additional financing later in
the project lifecycle.
Table 7: Tanzania’s ICT sector statistics, 2015-20
2015 2016 2017 2018 2019 2020 CAGR
Mobile subscribers (millions) 39.67 40.04 39.95 43.50 47.76 51.29 5.3%
Mobile internet users (millions) 16.28 18.01 19.01 22.28 25.79 28.47 11.8%
Monthly traffic (On & Off Net), in 4,156 4,676 5,182 5,365 5,940 7,506 12.7%
million minutes
Source: TCRA. All dates are for year end, and monthly traffic is for December each year.
CAGR = Compound Annual Growth Rate.
Table 8: Tanzania’s growing mobile money market, 2014–19
2014 2015 2016 2017 2018 2019 CAGR
Active Users (millions) 13.86 19.01 17.03 19.38 23.30 23.96 11.6%
Mobile Money Agents 238,461 270,974 371,132 427,445 483,283 560,043 18.6%
Monthly Mobile 3,570 4,752 5,342 6,639 7,648 8,213 18.1%

Payments (TZS, billions)
Source: BoT. All data is for December, except for 2019 which is for November.
CAGR = Compound Annual Growth Rate.
Component 1: Digital Ecosystem (US$28.7 million equivalent)
8. The aim of this component is to make Tanzania a more attractive and competitive place for digital investment and
innovation, ensuring that the benefits of digital technology are reaching all citizens and helping lay the groundwork for
growth of the digital economy. This will be accomplished by strengthening the many interrelated elements that characterize
a thriving digital ecosystem—creating and implementing forward-looking laws, regulations, and policies; building digital skills
and capacity of institutions and youth; developing a critical mass of innovators, entrepreneurs, and support services;
developing a robust local ICT industry that is founded on private investment and is able to deliver e-Commerce services;
strengthening cybersecurity capacity to detect, prevent, and respond to cyberattacks; improving data protection and privacy;
and working toward closing the digital divide, ensuring that all citizens benefit from digital development. These goals will be
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supported through four sub-components detailed below. While specific priority activities have been identified, the design of
the component is intended to remain flexible, allowing the project to respond to new challenges and opportunities as they
arise in this fast-changing sector.
1.1 Digital Enabling Environment (US$13.4 million equivalent)
a) Establishment of the National ICT Professional and Innovation Center (US$10 million equivalent)
9. The objective of this activity is to develop a center for ICT professional development and ‘soft centers’ to promote local
innovation in the country. The implementation of this activity will be carried out in collaboration with academic institutions,
vocational training institutions, and the industry. This activity will include the following sub-activities:
(i) Establishment of a Center for ICT Professional Development
10. The objective of this sub-activity is to collaborate on the development of a center for ICT professional development in
Tanzania. This will cater for skills development and mentorship, identification, and recognition of ICT
academics/professionals. Additionally, the center will allow for easier recruitment of skilled professionals by local companies
and foreign investors, including the export of skills outside Tanzania. Like other African economies, Tanzania has both a
shortage of ICT skills as well as a large number of unemployed ICT graduates. The aim of the center, which will be coordinated
by the MCIT in collaboration with the HLIs, will be to improve the process of matching the skills of the estimated 5,000 ICT
professionals in Tanzania and employer requirements. A particular focus will be on improving employment opportunities for
female ICT professionals. The center will enhance specialized ICT professional skills to support the country’s industrialization
agenda which is aligned with the concept of the 4th Industrial Revolution and digital economy competitiveness. Established
industries are increasingly ICT enabled and require special competencies which few Tanzanians possess at present. These
competencies require specialized training currently only available in Tanzania, at considerable cost. The advantages of such
a center include cost reduction, development of homegrown solutions (local products, services, and content), and an
opportunity to import talent from other countries, hence contributing to the country’s sector growth and digital economy.
The center will also include curriculum on e-waste, digital energy efficiency, and other topics that educate students on
climate-friendly digital skills.
ii) Establishment of Dedicated Zonal ‘Soft Centers’ for Youth, Entrepreneurship and SME Development
11. This sub-activity aims to establish dedicated ‘soft centers’ to build the local software industry, upskill youth nationwide,
and enhance gender participation in digital development. Soft centers will be established in five zones to provide software
developers with resources and tools countrywide. Consultations with industry, government, and academia have revealed
that formal ICT training programs in Tanzania often fail to provide the hands-on, practical skills demanded in the market.
Likewise, youth with talent for digital innovation often lack the corresponding business and communications skills needed to
commercialize their ideas or establish and run successful enterprises. The activity will address the following: (a) establishment
of a digital youth internship program to place academic graduates within digitally oriented businesses, government
MDA/LGA’s IT departments, or digital services units; (b) establishment of up to four zonal soft centers to provide digital
entrepreneurship opportunities for young people working on digital solutions and products for both private and government
use; and (c) development of guidelines for operationalization of the centers. Special emphasis will be placed on attracting
female participants to the programs and soft centers to help correct the long-standing gender imbalance in the sector. The
increase in the number of female employees will be tracked as part of the results framework.
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b) Establishment of FabLabs (US$3 million equivalent)
12. This activity aims to establish ICT hardware refurbishment centers that will enable the reuse and increased lifetime of
ICT equipment to complement efforts to distribute ICT equipment to educational institutions. This will also support the
acquisition of low-cost ICT equipment for learning purposes, as well as building capacity in Tanzania for reusing and
prolonging the lifespan of ICT equipment. Reuse is an important strategy to reduce resource-intensive production of ICT
equipment and to tackle the growing challenges of e-waste. Secondly, the initiative will provide mechanisms for linkages
between disposal service providers and refurbishment centers for easy management and control. This will be done through
collaboration with vocational and technical training institutions. Activities to be supported include establishing FabLabs and
Technology Hubs (TechHubs) in one of the selected technical training institutions and enhancing local capacity to support
the development of refurbishment centers for repair, recycling, and distribution of ICT equipment
c) Scanning of ICT Regulatory (Policy, Legal, and Infrastructure) Environment (US$0.4 million equivalent)
13. Under this activity, the MCIT, in cooperation with the TCRA and in consultation with the licensed operators, will conduct
a quick scan of the legal and policy environment to identify possible gaps that might hinder the development of a secure
digital economy in Tanzania, especially broadband implementation. The study will also scan for policies that include carbon
emissions for ICT and e-waste management. The results of the study will provide an information platform for digital
development in Tanzania by recommending new initiatives required to create an enabling regulatory, legal, and fiscal
environment for the digital economy. This study will also contribute to the development of strategies, guidelines, and
standards for optimization of deployment and usage of ICT infrastructures in Tanzania.
1.2 Infrastructure to Support National ICT Development and e-Commerce (US$15.3 million equivalent)
a) Enhancing the National Addressing and Postcode System (US$12 million equivalent)
14. This is an ongoing activity which will focus on scale-up of the NSDI, managed by the TCRA, which currently covers 67
wards33, to cover the full territory and population of Tanzania. The NSDI, or digital map, will provide a platform on which a
variety of layers of information can be laid for various purposes, including national digital ID and spatial maps for national
development. In the context of national ICT development, it will provide essential support for the further development of e-
Commerce, thereby improving tax collection efficiency and economic growth. The program is intended to further cover 13
cities with high revenue collection, aiming at increasing collection of untapped revenue. The implementation plan includes
the installation of street signage and enhancement of the existing database at the TCRA.
b) Development of National ICT Statistical Management Information System (NISMIS) (US$ 2 million
equivalent)
15. This activity aims to provide complete, accurate, and current statistical data for ICT networks and services in the country
so as to support policy-making decisions for national development. ICT statistics play a vital role in supporting ICT investment
growth and, more importantly and strategically, economic growth in the country. Appropriate ICT applications will achieve
efficient statistical undertakings with reliable and accessible data when the need arises. The ministry, recognizing the need
for improved statistics in the sector, will design tools that will support collection and analysis of ICT statistics that includes
the programs that are undertaken by the ministry and other departments. The results of these programs/activities will be
monitored and stored by the NISMIS and respectively will be used for planning, data enumeration, data processing, data
33 http://www.address.go.tz/
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analysis, and data dissemination for better decision making. This will also be used by the NBS as part of national statistical
reporting. In addition, it will facilitate investment growth in the ICT sector by providing useful data to potential investors.
c) Tanzania Postal e-Commerce Initiatives (US$1.3 million equivalent)
16. Tanzania has been carrying out economic reforms with the objective of achieving higher economic growth by improving
economic infrastructure and social services delivery and alleviating and ultimately eradicating poverty by using natural
resources sustainably with the aim of becoming a middle-income economy. With the development of technology, shopping
habits in Tanzania have changed due to the rapid spread of enabling technologies and opportunities such as online shopping
and digital auctions. Digital markets and over-the-top platforms have led to a massive engagement of citizens into e-
Commerce. In this regard, the TPC, in collaboration with the UPU’s Ecom@Africa initiative, will join other countries in Africa
and globally to engage in digital commerce in new emerging markets across the world.
17. By joining the Ecom@Africa initiative, Tanzania will gain various benefits such as: (a) positively impacting the provision
of the Universal Service Obligation placed on the TPC to ensure that postal services are reasonably accessible to all people in
the URT by enabling rural and underserved communities to market, sell, and purchase online; (b) becoming the hub for e-
Commerce via the UPU international postal network whereby e-Commerce buyers and sellers within eastern and southern
African countries will buy and sell their products securely through a trusted hub e-Commerce platform; and (c) enabling the
Tanzania Government to share and integrate innovative solutions and capabilities with other member countries. The
implementation of this activity will begin with a feasibility study to assess e-Commerce readiness, project scoping, and
implementation of process mapping and national digital platforms for e-Commerce development.
Component 2: Digital Connectivity (US$62.5 million equivalent)
18. The aim of this component is to ensure that the government, businesses and citizens can access high-speed broadband
connectivity. Widespread, affordable, and reliable connectivity is an essential prerequisite to provide and access digital
services for social economic development. In addition to the measures to boost sector competitiveness and private sector
investment, there is a need for more direct public and private investment to meet the connectivity needs of the country. This
component will support the government’s agenda for industrialization and equitable spatial development, ensuring that the
government and citizens, including those in rural areas, have equivalent access to digital services and opportunities. Further,
the component will provide incentives for the private sector to reduce the digital divide in internet service provision between
urban and rural populations. This component will include the following sub-components.
2.1 Connected Government (US$33.0 million equivalent)
19. This sub-component will support the provision of secure broadband internet to currently unconnected MDAs, LGAs, and
other government institutions in rural areas, as part of the GovNet. This will build on the successful GovNet program under
the RCIP-TZ, which connected around 186 MDAs, LGAs, regional hospitals, and regional secretaries. Benefits include lowering
communication/collaboration costs, affordable international bandwidth, improving efficiency in service provision and
revenue collection by the government through shared electronic platforms which are enabled by GovNet, and providing them
with low-cost internet bandwidth. A reliable and robust governance, technical, and operational framework for the security
of GovNet and its affiliated infrastructure from cyberattacks, hijacking, and breaches is crucial. Activities that will be
implemented include: (a) a feasibility study to identify priority institutions for connections based on projected bandwidth
demands, location (digital mapping), cost, and overall impact; (b) incentives to the private sector to connect the identified
institutions through commercial tendering; and (c) enhancement of government internet bandwidth through long-term
supply agreements.
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20. The aim is to supply these government institutions with enhanced bandwidth by pre-purchasing bulk internet services
from the private sector, using competitive bidding, to be delivered at the desired locations. This way, government demand
as an anchor tenant for bandwidth is leveraged to encourage the private sector to invest in infrastructure in rural areas.
Specific supported activities include: (a) a feasibility study, conducted by a consulting firm who would be competitively
selected, to conduct a gap analysis covering bandwidth demand, location (digital mapping), likely costs, and overall impact
and (b) competitive tendering for internet bandwidth on behalf of the government, through long-term supply agreements,
based on IRU or ‘dark fiber’. This mechanism has been used successfully in a number of other WBG projects, notably Digital
Malawi Program Phase 1 (P160533), eTransform Ghana (P144140), and ICT Sector Support for Somalia Phase II (P152358).
One obvious advantage is that it allows for the benefits of the project to continue beyond the closing date, as IRUs effectively
allow for long-term leases of dark fiber.
2.2 Rural Broadband for Development (US$29.5 million equivalent)

21. The aim of this sub-component is to significantly reduce Tanzania’s digital gap by providing universal connectivity access
in rural areas, digital underserved areas, and areas that would not otherwise be viable for mobile service providers to invest.
As is the case in both developed and developing countries across the world, there are many areas with low population density
and/or very low average incomes in Tanzania that do not provide sufficient returns to drive affordable broadband services.
Expanding digital reach can among other things enhance access to markets and public digital services for rural populations
and strengthen climate resilience through early warning solutions that can save lives and livelihoods. This sub-component
will build on the successful rural connectivity program under the RCIP-TZ, which brought around 2.5 million people under
mobile signal coverage for the first time, to extend data-enabled (3G, 4G, or higher) network coverage to the three million
or so people currently living in areas that are unserved by any mobile cellular signal and through the upgrading of areas that
currently have only 2G networks to provide mobile broadband (3G, 4G, or higher). This will increase the volume of data usage
and hence encourage participation in digital economy development.
22. The primary mechanism to be used is the use of ‘reverse subsidy auctions’ similar to that used under the RCIP-TZ and as
used in multiple WB projects, such as Niger Smart Villages for Rural Growth and Digital Inclusion Project (P167543) and Digital
Malawi (P160533). The UCSAF would designate geographical zones (in clusters or lots) where interested bidders (such as
mobile operators, cell tower companies, high-altitude platform services, and so on) would be invited to bid competitively for
the lowest viable subsidy to CAPEX that would be required for them to provide, or upgrade, service in the designated zones.
Thus, IDA funding would be alongside funds from the UCSAF (using funds contributed to the USF) and would be used to
leverage investment from the private sector under an MFD approach. Under the RCIP-TZ program, a contribution of
US$30 million from IDA leveraged private sector investment of around US$70 million.
23. As of mid-2020, through the UCSAF, the government has extended communication services in 703 wards having 2,530
villages with a population of more than 4 million people. This Rural Broadband for Development activity is intended to
guarantee access to 3G or higher mobile broadband services for more than 4 million individuals. On July 18, 2019, the UCSAF
floated the Rural Telecommunication Phase 4 tender to extend communication services in rural areas. This was funded using
the UCSAF’s own resources, which is in turn contributed under assessed contributions from public telecommunication
operators. However, the UCSAF’s funds are estimated to cover only around one quarter of the total requirement to achieve
universal service in Tanzania, which would cover 521 lots with 1,222 villages having at least 6,155,344 people. Furthermore,
many areas only have 2G capability at the moment and need to be upgraded to 3G and above to provide high-speed access
to broadband internet. Therefore, it is hoped that the DTP will complement what the UCSAF can mobilize from its own
resources, with further competitive tenders to be awarded using the reverse subsidy auction mechanism.
24. This activity will pilot the use of TVWS spectrum to connect underserved rural communities. This will enable the
utilization of an unused portion of spectrum allocated for television broadcasting in provision of broadband services in rural
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communities. The pilot will be used to develop policy, guidelines, and regulations recommendations toward utilization of
unused spectrum to provide low-cost broadband services to rural communities.
Component 3: Digital Platforms and Services (US$47.8 million equivalent)
25. The aim of this component is to build the core infrastructure and capacity necessary to support digital public service
delivery, enhance the efficiency of the government’s internal operations, and roll out priority digital productivity platforms
and public services. Progress has been made in recent years in developing digital services and elements of a shared services
platform (a mobile services portal, an SMS gateway, an e-payment gateway, and so on), thereby strengthening the eGA and
facilitating deployment of digital productivity tools for government. However, various MDAs and LGAs still operate stand-
alone IT systems and infrastructure and spend considerable financial and HR to develop, implement, and operate stand-alone
digital services. This approach risks creating cybersecurity vulnerabilities in non-standardized approaches. This also creates
significant financial, operational, and security liabilities for institutions which are ill-suited to cope with them. In addition, the
government still lacks sufficient HR to meet increasing IT demands and adequate policies, practices, and an effective IT
infrastructure to deploy high-quality digital services in a fast, secure, reliable, and cost-effective manner.
26. Increased access to affordable, high-quality connectivity will create an opportunity to enhance the way the government
conducts its business and provides services to citizens using digital technology. Offering public services through unified
mobile and online platforms can create significant benefits to citizens who must otherwise travel great distances and spend
significant time and resources to access services. This is particularly important for Tanzania’s rural residents who may lack
access to public transport and quality roads but are much more likely to have access to a mobile phone. Besides
socioeconomic benefits, online services have a positive climate impact by reducing transport-related carbon emissions to
access public offices, particularly for those government offices in rural areas which are being provided with enhanced
bandwidth under the project. In addition, digital platforms offer opportunities to deliver new categories of services and
transactions such as digital cash transfers under social protection or payroll schemes, lower administrative and logistical
barriers to service delivery, deliver information on natural disasters and early warning systems to enhance climate resilience,
and reduce scope for corruption. This component will include the following sub-components.
3.1 Digital Services and Productivity Platforms (US$29.5 million equivalent)
a) One Stop Service Centers (OSSCs) -- Huduma Jamii Centers (US$21.5 million equivalent)
27. With the advent of the digital age, the service delivery framework needs to be re-engineered to include new tools and
processes. There is also a need to improve existing processes and procedures for offering services to citizens. This could be
achieved by establishing OSSCs where services can be accessed in a simple, speedy, secure, and seamless manner.
28. This activity therefore aims to establish OSSCs at central and local government service delivery points, allowing citizens
access to various government services from a single location. The OSSCs, which are referred to in Swahili language as Huduma
Jamii, will be a key platform for public service delivery and collection and payments of various fees, taxes, and levies that
citizens and businesses pay to the government through the GePG and other platforms. An objective when designing the
OSSCs will be ensuring physical accessibility for disabled people, as well as exploring the opportunity to tailor digital services
to specials needs of vulnerable persons. This could include low-cost ‘web text to voice’ services for visually impaired users.
Tasks to be implemented under this activity include a design review for the integration of service delivery platforms; capacity
building; a revision of legal frameworks; public awareness campaigns; rehabilitation or refurbishment of existing
infrastructure; construction of last-mile connectivity and interconnection with back-end systems of service delivery; purchase
of ICT equipment; establishment of procedures and processes for OSSC operations; and undertaking of supervision and M&E
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of OSSC performance.
29. The OSSCs will be established with various ICT infrastructure and equipment, including ICT application systems, a
payment gateway, a queuing system, a secured network, telecommunications equipment, and a call center. Measures would
be put in place to maximize the protection of private data entered, uploaded, and processed at the OSSCs or on their servers
from hacks, breaches, or accidental exposure. Furthermore, an OSSC management structure will be established and will
include representation of various government service providers to facilitate provision of services in an effective and efficient
manner. The activity aims to establish up to 31 OSSCs over four phases, however the number of centers may change
depending on the outcome of the experience with implementing the early phases.
b) Digital Economy (US$ 8.0 million equivalent)
30. This activity intends to address the digital economy aspect in public FM. In the digital era, the traditional economy is
transformed by the application of digital services which simplify ways of doing work by having accessible, reliable, and secure
services. It is characterized by greater digital connectivity, digital financial inclusion, skilled labor, and mainstreaming of the
operational technologies. This activity will focus on enhancement of the financial/payment systems by updating rules and
regulation pertaining to digital financial transactions, that is, the mobile financial technologies, banking systems, operators,
and regulator of the financial industry (BoT), and enhancement of the NPS. Regulations, standards, and guidelines on
recognized international practices for the protection of digital payments systems and digital financial services from
cybercrime will be adopted, as will measures to protect the privacy of personal data in compliance with forthcoming
legislation. Additionally, the activity will contribute to increasing revenue for the government and increasing the number of
players in the Financial Technology (FinTech) market by having in place skills and systems that address areas that are not well
served by the current economy. This will not only increase the revenue but also the contribution of the ICT sector to the
economy and economic growth of the country. The activity will be implemented under the guidance of the MCIT.
31. A scoping study will be carried out to identify key areas for improvement, especially around financial regulations,
technical capacity among staff, and sector readiness that enables the digital economy.
3.2 Internet Data Center Infrastructure (US$13.2 million equivalent)
32. The expected growth in the digital economy will require robust government data infrastructure. The Government has
adopted a government-wide approach to data infrastructure and is consolidating all government server rooms and Network
Operations Centers (NOCs) into a standardized government cloud infrastructure. It is projected that this investment will
support the growth of government ICT business operations over the next 5 to 10 years. Therefore, enhancing the data center
infrastructure by acquiring storage, networking equipment, and computing resources for the government shared platform
will enable cost-effective sharing of resources, increase reliability and security of electronic services offered by the
government, enhance storage of government data, as well as create efficiency in sharing and accessing government
applications through the shared infrastructure. As opposed to operating multiple siloed systems, resource sharing among
government entities will also help reduce energy consumption. Besides this efficiency gain, considerations related to data
center energy efficiency will be considered when expanding data center capacity (for example, use of renewables). In
addition, when expanding data center infrastructure, climate risks will be taken into consideration, including robustness,
back-up strategies, discontinuity plans, and training of staff on these.
33. The shared infrastructure will be hosted in the existing National Data Centers. Project financing will be used to
strengthen the support environment for the data center and the installation of additional ICT hardware (computer, storage,
and networking equipment) and software tools for the shared computing infrastructure in the existing data centers. The
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cybersecurity and physical security of the NDC and its infrastructure will be assessed at baseline and via regular risk analyses
and penetration tests throughout the lifetime of the project, with the recommendations to address vulnerabilities of the
facilities supported under the project. Implementation will take energy efficiency into account and ensure data centers are
resilient toward weather-induced risk that will increase with changing climate patterns. To realize the full benefits of data
center and cloud innovation, it is essential to be able to deploy e-services rapidly and securely. This sub-component will be
implemented by enhancing existing data center infrastructure.
3.3. Digital Literacy and Capacity Building (US$5.1 million equivalent)
34. The GoT has long recognized the importance of adopting ICTs to improve business processes in public institutions to
ensure quality as well as effective and efficient delivery of services to its citizens. In this regard significant progress in
deployment and use of ICT-enabled systems in public service delivery has been made. A number of ICT systems and
applications to support the execution of government functions and provision of government services to citizens (G2C),
businesses (G2B), between public institutions (G2G), and public employees (G2E) have been implemented in different areas.
35. To ensure that the existing e-services are well supported, promoted, and utilized by consumers (citizens, businesses,
and other stakeholders at large), the government intends to build the capacity of the ICT cadre for managing and supporting
existing government ICT Systems (supply side). It also plans to implement a promotional and awareness program on the
services available, where they can be accessed, and how they can be utilized (demand side). This activity will also address
issues of web accessibility for the elderly and disabled citizens, including best practice on interface design and user agents.
The awareness program aims to improve accessing and using e-services provided by public institutions.
a) Government ICT Cadre Training Program (US$ 4.6 million equivalent)
36. This activity is intended to address recommendations presented following an ICT skills gap assessment conducted in all
ministries in 2018. The objective of the assessment was to assess existing ICT skills and identify skills gap in the ministries, so
that proper strategies could be implemented to address the gap. Results showed that only 39 percent had expert-level skills
and the remaining 61 percent had average ICT skills, where some were able to provide delivery of ICT services and support,
but most lacked the specialized skills required to develop and support ICT products. Greater technical skills are needed to
address this deficiency, with a particular emphasis on improving the provision of skills training for women.
37. The project covers training of specialized ICT skills for up to 500 ICT experts from the ministries, with a balance between
men and women. This will also include long courses at the level of master's degrees in specialized universities worldwide,
whereas the project is intending to train in technical skills especially in emerging technologies and areas of need and that
addresses government focuses on digital economy and industrialization. Recognized industry certifications, for instance for
cybersecurity, for government IT officials to be able to capably serve as CSIOs of their agencies will also be supported. Having
ICT professionals capable of developing and supporting government ICT systems will be of great benefit.
38. The estimated cost for master’s degree training in specialized universities ranges from US$70,000 to US$100,000 per
person, allowing about 50 individuals to be trained to acquire ICT skills (such as Artificial Intelligence [AI], Internet of Things,
cybersecurity, and other emerging technologies) with a budget of US$3.5 million. In addition to master's degrees, a further
US$1.1 million is allocated to train 450 specialized ICT professionals from the MDAs and LGAs in specialized areas based on
existing gaps in short courses. This training will include sensitization on issues of usability and accessibility of public platforms,
including for disabled groups, as well as education on issues related to sustainable digitization, including e-waste handling
and energy efficiency.
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b) Citizen Digital Literacy (US$0.5 million equivalent)

39. The awareness programming intended to be carried out includes, but is not limited to, e-Government services, social
media, TV, and radio programming; TV adverts and short video clips; print media campaign; dissemination of publicity
materials; and workshops and seminars (for media and the public). Additionally, digital fora, conferences, exhibitions, and
youth-focused digital competitions to encourage innovation will be supported. This programming will support all activities in
the project. It will also include campaigns directed to the public about the protection of personal data in government services
and the rights of individuals to determine use of their personal data. Anticipated benefits include:
i. Increased levels of awareness among citizens, businesses, and other consumers of government e-services.
ii. Increased usage of the public digital services and adherence to legal and regulatory frameworks.
iii. Feedback on services currently provided by public institutions.
iv. Establishment of a forum to discuss key issues and potential solutions for emerging issues in the provision of
digital government services.
v. Increased awareness and participation of women in science, technology, engineering and mathematics (STEM)
programs and more broadly in ICT.
40. The total estimated budget for this activity is US$100,000 per year, amounting to US$500,000 over five years.
41. Planned project activities are completed by a project management component (US$3.5 million) and an unallocated
contingency fund (US$7.5 million). The PIU, established under component 4, will comprise an overall project coordinator, a
digital government services specialist, an ICT technical specialist/TA officer, and specialists in procurement and financial
management (FM) as well as safeguards specialists. Component 4 will also include funding for strategic communications,
monitoring and evaluation (M&E), internal audit, logistics and operational overhead, and specialists in gender inclusion, and
diversity.
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Digital Tanzania Foundations Project (P160766)
PROJECT ACTIVITIES AND BUDGET
42. A summary of the project sub-components, activities, and associated budget is indicated in Table 9.
Table 9: Proposed activities, budget, procurement and implementing agencies

Component Sub-component Description Amount Category Implementing Agency(ies) (Lead
(US$m) agency in BOLD)
1. Digital Digital Enabling Establishment of the National ICT Professional Goods/services, MCIT/HLIs/COSTECH/ ICTC
Ecosystem Environment Development and Innovation Center: and consultancy
Establishment of a center for ICT professional 8.0
development.
Establishment of dedicated zonal soft centers for youth, 2.0
entrepreneurs, and SMEs.
Establishment of FabLabs 3.0
Scanning of ICT regulatory (policy, legal, and 0.4 Services and MCIT/TTC/TCRA
infrastructure) environment. consultancy
Infrastructure to a) Enhancing the national addressing and postcode 12.0 Goods and MCIT/PO-RALG/
Support National ICT system. services MoFP/TCRA/TPC
development and e- b) Development of NISMIS. 2.0 Goods, services MCIT/PO-
Commerce and consultancy PSMGG/eGA/TCRA/NBS/MoFP
c) Tanzania postal e-Commerce initiatives. 1.3 Services and MCIT/TCRA/TPC/PO-
consultancy PSMGG/eGA
Component 1 Subtotal Digital Ecosystem 28.7
2: Digital 2.1 - Enhancement of GovNet connectivity (expansion of GovNet to all MDAs 33.0 Goods and PO-PSMGG/eGA/MCIT/TTC
Connectivity Government ICT and LGAs + international connectivity), enhancement of services
Connectivity resilience network infrastructure focusing on
optimization of existing networks (that is, NICTBB and
consortium network, and so on).
Pre-purchase of internet capacity for 200 government
institutions.
2.2 - Rural Broadband a) Rural broadband connectivity and rural ICT 29.5 Non-consultancy MCIT/UCSAF
for Development development. services
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Digital Tanzania Foundations Project (P160766)
Component Sub-component Description Amount Category Implementing Agency(ies) (Lead

(US$m) agency in BOLD)
Component 2 Subtotal Digital Connectivity 62.5
3: Digital 3.1 - Digital Services a) One-stop-shop centers (OSSCs) 21.5 Goods and PO-PSMGG/MCIT/TPC
Platforms and Productivity services
and Services platforms b) Digital economy 8.0 Goods and PO-PSMGG/
services MoF/MCIT/TRA/eGA
3.2 – Data Center a) Enhancing data centre infrastructure. 13.2 Goods and PO-PSMGG/eGA/MCIT
Infrastructure services
3.3 - Digital Literacy a) Government ICT cadre training program. 4.6 Training/Non- MCIT/PO-PSMGG/eGA
and Capacity Building consultancy
b) Citizen digital literacy/awareness program/feedback 0.5 Training PO-PSMGG/eGA/MCIT
mechanism.
Component 3 Subtotal Digital Platforms and Services 47.8
Project management Project management functions (project coordination, 3.5 Consultancy, MCIT / PO-PSMGG
procurement, FM, safeguards, communications, services
diversity inclusion, M&E, and so on)
Component 4 Subtotal Project Management 3.5
Unallocated 7.5
Digital Tanzania Project Total 150.0
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43. The proposed program of work under DTP will bring benefits throughout the portfolio, including for pipeline projects.
The main expected benefits are summarized in table 10.
Table 10: Digital Tanzania linkages with other projects in the Tanzania portfolio
Portfolio project Potential synergies and links (related Digital Tanzania sub-
Title
and code component)
SEQUIP P170480 Tanzania Secondary • Improved connectivity including rural coverage, MDAs, LGAs contribute to
Education Quality effective use of digital schools (Sub-component 2.1).
Improvement Program
• Use of digital technologies in schools, for instance in access to open
(SEQUIP)
educational resources, e-Learning, web browsing, and so on (Sub-
component 2.1).
• Involving schools in campaign to improve digital and financial literacy (Sub-
component 3.3).
ESPJ Tanzania Education and • Improved digital coverage in rural areas will help young entrepreneurs
P152810 Skills for Productive Jobs develop and market products, including through eCommerce applications
Program (Sub-component 2.2).
• Digital skills training for start-ups through FabLabs and soft centers (Sub-
component 1.1).
P152736 Strengthening Primary • Improved internet connectivity for district hospitals in rural areas (Sub-
Health Care for Results component 2.1).
PSSN II Tanzania Productive Social • Digitization of social safety net payments, via OSSCs, should reduce
P169165 Safety Net Project II transaction costs and improve efficiency (Sub-component 3.1).
• Rural connectivity will enable people in rural areas with connectivity and
greatly improve the coverage of the social safety net payments (Sub-
component 2.2).
WSSP-II Second Tanzania Water • Connectivity and other components, among others, will expand coverage
P150361 and Sector Support Project and contribute to public service delivery in rural areas (Sub-component
P163732 2.2).
Sustainable Rural Water
• Enabling community to use Citizens Feedback System, an integrated mobile
Supply and Sanitation
and web-based tracking information system for citizens to report
Program
complaints, trace progress, and get feedback on water-related problems
including water cut, leakage, use mobile payment systems to pay their bills,
etc., via OSSCs (Sub-component 3.1).
P150937 a Dar es Salaam Urban • Creation of the NSDI will improve integration of transport and supporting
Transport Improvement systems (Sub-component 1.2).
Project
• Improved connectivity for MDAs and LGAs will enable facilities for
improved transport planning and ticketing (Sub-component 2.1).
P159954 Development support for • Development of NISMIS, under sub-component 1.2, will enhance reporting
Tanzania Statistics of ICT statistics.
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Portfolio project Potential synergies and links (related Digital Tanzania sub-
Title
and code component)
P164920 Tanzania Roads to • Improved connectivity for MDAs and LGAs will enable facilities for
Inclusion and improved transport planning and ticketing (Sub-component 2.1).
Socioeconomic
• Provision of internet and mobile phone access to rural areas will facilitate
Opportunities (RISE)
use of on-board intelligent transport systems (Sub-component 2.2).
Program Project
P123134 Dar es Salaam • Improved data storage facilities will enable improved metropolitan
Metropolitan planning systems (Sub-component 3.2).
Development Project
• Development of the NSDI will facilitate improved planning (Sub-
component 1.2).
P150523 Tanzania: Resilient Natural • Improved rural connectivity will promote tourism opportunities (Sub-
Resource Management for component 2.2).
Tourism and Growth
TREEP TZ-Rural Electrification • Improved connectivity will increase availability of digital financial products,
P153781 Expansion Program for example, enabling use of ‘pay-as-you-go’ financing schemes for
purchase of solar panels, including through OSSCs (Sub-components 2.2
and 3.1).
• Improved/rural connectivity coverage will simplify digital services and
enable mobile money transactions and ability for all citizen regardless of
their locations to pay their utility bills (Sub-component 2.2).
TSCP Tanzania Strategic Cities • One-stop shops located in secondary cities will reduce need to travel and
P159489 Project Second Additional enable more functions to be carried out in secondary cities (Sub-
Financing component3.1).
BIG-Z Boosting Inclusive Growth • Connectivity in previously unserved rural areas should help promote
P165128 for Zanzibar: Integrated integrated rural development (Sub-component 2.2).
Development Project
• Creation of the NSDI will provide for a more integrated approach to
development (Sub-component 1.2).
HEET Higher Education for • Sub-component 1.1, with its focus on providing a transition from academia
P166415 Economic Transformation to applied digital entrepreneurship, working with HLIs, will provide for a
Project logical progression to HEET.
ZESTA Zanzibar Energy Sector • Improved connectivity will increase availability of digital financial products,
P169561 Transformation and Access for example, enabling use of ‘pay-as-you-go’ financing schemes for
Project purchase of solar panels, including through OSSCs (Sub-components 2.2
and 3.1).
• Improved/rural connectivity coverage will simplify digital services and
enable mobile money transactions and ability for all citizen regardless of
their locations to pay their utility bills (Sub-component 2.2).
P174366 COVID-19 Pandemic • See Annex 6.

Emergency Financing
Facility Project (RE)
Note: The listing is intended to be indicative, not exhaustive.
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ANNEX 3: Economic and Financial Analysis
COUNTRY: Tanzania
Mobile Broadband in Tanzania
1. Mobile internet is widely used in developing countries around the world as a substitute for, and complement to,
wired internet connections. Deployment can be quicker, with costs generally being cheaper for wireless networks, and
advance payment models suit the economic circumstances of low-income nations. Tanzania is no exception; mobile
wireless internet subscriptions grew from 4 million in 2011 to 25 million in 2019 ( Figure 4). By contrast, wired broadband
(for example, Digital Subscriber Line [DSL] technology, and fiber-optic connections) in the country account for fewer
than 5 percent of internet subscriptions.
Figure 4: Mobile wireless internet users, Tanzania
Mobile wireless Internet users Per 100 people
30 45
Millions
43
40 40
25
35 35
34
32
20 30
25
15 23
20
25
22
10 15 15
18 19
13 16
10
8 11
5
7 5
6
4
- 0
2011 2012 2013 2014 2015 2016 2017 2018 2019
Note: Population figures for calculating ‘per 100 people’ from World Bank. Though the figure for mobile wireless internet
users is published by the TCRA as ‘users’ they appear to refer to subscriptions. Given the difficulty of identifying broadband
users (due to different handset capabilities and coverage zones), there are no official figures reported for mobile broadband.
Source: TCRA Quarterly Communications Statistics Report.
2. Despite the growth, there is considerable potential for further expansion of wireless internet in Tanzania. Two of
the main drivers of wireless internet take-up are coverage and affordability. Tanzania is not performing as well in these
metrics in comparison to other East African peers such as Kenya and Rwanda (figure 5) . Consequently, Tanzania's mobile
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Internet penetration in 2019 (43 percent) is below that of Kenya (78 percent) and Rwanda (62 percent).34
Figure 5: 3G population coverage and price of 1 GB mobile internet per month (% of GNI per capita), 2020
3G coverage (% of population) 1 GB Mobile internet price per month

(% GNI per capita)
100% 94% 93%
6.0%
90%
80% 4.9%
5.0%
70%
59%
60% 4.0%
3.4% 3.3%
50%
3.0%
40%
30% 2.0%
20%
1.0%
10%
0% 0.0%
Kenya Rwanda Tanzania Kenya Rwanda Tanzania
Note: 3G coverage figures are for March 2020 and mobile internet prices are for November 2020. Conversion of mobile
internet price to percentage of GNI per capita uses exchange rates and GNI for 2019 sourced from the World Bank. Mobile
internet prices include taxes.
Source: Adapted from Safaricom, MTN Rwanda, and Vodacom Tanzania.
3. DTP will create favorable conditions that should result in a sharp boost to the country's mobile internet
penetration. Sub-component 1.1: Digital Enabling Environment and Sub-component 2.2: Rural Broadband for
Development will lead to greater sector liberalization and improved rural connectivity. This should result in lower prices
and expanded coverage, though perhaps not comparable with the spectacular gains made under the RCIP-TZ, as the
country is now starting from a much higher base of subscribers. These factors should result in Tanzania reaching the
level of East African peers in mobile internet subscription penetration (the average figure for Kenya and Rwanda was 70
percent in 2019).
4. Tanzania's wireless internet subscriptions are based on (a) its current trajectory and (b) reaching the level of East
African peers over the period 2020–2028, as shown in figure 6.35
34 Data for Kenya and Rwanda from ICT sector regulators (https://ca.go.ke/consumers/industry-research-statistics/statistics/ and
https://rura.rw/index.php?id=194).
35 Figures for Tanzania’s mobile internet subscriptions without Digital Tanzania are based on forecasts from one of the country's mobile
operators. See: Airtel Africa. 2019. Prospectus. https://airtel.africa/assets/pdf/AirtelAfricaplcProspectus.pdf.
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Figure 6: Tanzania forecast mobile broadband subscriptions
Subscriptions Per 100 people
Without Digital Tanzania Without Digital Tanzania

With Digital Tanzania With Digital Tanzania
60 80
53 70
Millions
70
50
60
40 46 61
50
30 40
30
20
20
10
10
- 0
2019
2021
2023
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2020
2022
2024
2025
2026
2027
2028
Economic impact of Digital Tanzania Project on mobile internet growth
5. Increased mobile broadband penetration has both direct and indirect impacts. Direct impacts will accrue from a
growing ICT sector, particularly the spill-over into computer and information services as applications and data storage
and processing facilities are developed to leverage the increased connectivity (for instance, under sub-component 3.2).
6. Indirect benefits accrue from increased connectivity across different economic sectors. Enterprise productivity is
enhanced, thereby boosting growth. New opportunities are created for digital businesses (Sub-component 1.1).
Numerous studies have quantified the indirect impact of broadband on the economy. An analysis conducted for the
World Bank found that each 10-percentage point increase in mobile broadband penetration increases annual GDP per
capita growth by between 0.48 and 0.60 percentage points.36
7. The indirect economic impact of the DTP can be calculated using the midpoint of the values for the percentage
point increase in GDP per capita (0.54=(0.48+0.60)/2). The base forecast for GDP growth is contrasted with the GDP
impact from DTP (Table 11). By the end of the period, it is estimated that that DTP will have raised the expected
penetration rate of mobile broadband by about 9 percentage points. The impact on GDP will be worth about US$47.7
million (NPV) cumulative, over the period till 2028, with further gains thereafter. However, the main benefits of this
investment will be evident in the social and regional allocation of increased growth, which will be focused under sub-
component 2.2 on the poorest rural areas.
36World Bank. 2017. Malawi - Digital Foundations Project (P160533).

http://documents.worldbank.org/curated/en/279041495480051045/Malawi-Digital-Foundations-Project.
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Table 11: Indirect economic impact of mobile internet from Digital Tanzania Project
Year Mobile Internet (per 100 people) GDP (US$, millions)
Without With Percentage point change Without With Difference
Digital Digital Without With Difference Digital Digital
Tanzania Tanzania Digital Digital Tanzania Tanzania
Tanzania Tanzania
2019 43 43
2020 44 45 1.7 2.4 0.7 $66,049
$66,051 $2.5
2021 46 48 1.8 2.5 0.8 $69,663
$69,666 $2.9
2022 48 50 1.8 2.7 0.9 $75,357
$75,361 $3.5
2023 50 53 1.9 2.8 0.9 $81,914
$81,918 $4.1
2024 52 56 2.0 3.0 1.0 $89,278
$89,283 $4.9
2025 54 59 2.1 3.2 1.1 $97,388
$97,393 $5.8
2026 56 63 2.1 3.3 1.2 $104,824
$104,831 $6.8
2027 58 66 2.2 3.5 1.3 $112,828
$112,836 $7.9
2028 61 70 2.3 3.7 1.4 $121,443
$121,452 $9.3
Cumulative $47.7
NPV $21.6
Note: NPV based on today’s value (with discount applied). GDP forecast for 2020–2025 is sourced from the International
Monetary Fund (IMF) World Economic Outlook database; figures for 2026–2028 are calculated based on the 2020–2025
annual average growth rate.
Impact of electronic public services
8. Sub-component 2.1: Enhancement of Government ICT Connectivity and Component 3: Digital Platforms and
Services of the project feature activities aimed at the productive use of ICT in government. The application of ICT for
government services increases efficiency and lowers costs. Citizens also benefit from less time spent travelling to
government offices and waiting in line. Several research studies from South Asia corroborate these benefits for citizens.
A study examining the effect of the introduction of different public e-services in India found that the number of trips and
waiting times were lowered for users.37 An evaluation following the introduction of a computerized vehicle registration
system in Bhutan found that although the short term costs to implement the system rose, users reported greater
efficiency and transparency.38 Data from Sri Lanka concretely illustrates the benefits for citizens. The introduction of e-
services drove a reduction in the time users spend to obtain a public service from 371 minutes in 2011 to 124 minutes
in 2013.39 The average amount spent by citizens obtaining a public service before the introduction of e-services in 2011
was LKR 1,553 (US$13.74) or 0.31 percent of average annual household expenditure.40 The cost includes travel,
opportunity cost, service fees, food, accommodation, and any other costs associated with obtaining a public service. By
2013, this figure had dropped to LKR 747 (US$5.79) or 0.15 percent of average annual household expenditure, an annual
average reduction of 22 percent.
37 Bhatnagar, Subhash C., and Nupur Singh. 2010. "Assessing the Impact of E-government: A Study of Projects in India." Information Technologies
& International Development.https://itidjournal.org/index.php/itid/article/download/523/523-1394-2-PB.pdf
38 Miyata, Mayumi. 2011. "Measuring Impacts of e-Government Support in Least Developed Countries: A Case Study of the Vehicle Registration
Service in Bhutan." Information Technology for Development. https://ict4dblog.files.wordpress.com/2011/09/miyata11-egovbhutan.pdf.

39 ICTA (Information and Communication Technology Agency of Sri Lanka). 2013. E Government Survey – Final Evaluation.
https://www.icta.lk/icta-assets/uploads/2016/03/ICTA_eGov_FR_16-1-14.pdf.
40 The e-services cost is from ICTA, op cit., p. 16. Annual household expenditure in Sri Lanka is derived from: Department of Census and Statistics.
2015. Household Income and Expenditure Survey 2012/13. https://catalog.ihsn.org/index.php/catalog/6086.
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9. Determining the potential impact of improved public services in Tanzania is difficult given the lack of information
about the time and costs citizens incur to carry out government transactions. A 2014 survey found that over half of
Tanzanian internet users utilized the internet to get information about government or public services, equivalent to 10
percent of the population.41 However, the wording is vague about the scope and could range from simply using the
internet to find a government phone number to actually carrying out some degree of a transaction. Nevertheless, it
indicates that already there is familiarity with the concept of e-services among some citizens in the country.
10. The possible benefit to Tanzanian citizens of online services is estimated based on the findings from the Sri Lanka
study.42 The cost of obtaining a public service on site includes travel, opportunity cost, service fees, food, and
accommodation. If the same pre e-services ratio in Sri Lanka (0.31 percent of household expenditure) is applied to
Tanzania, it results in a public service spend of US$6.85 per household per transaction.43 Assuming Tanzania achieves
the same cost reduction as Sri Lanka (22 percent a year) due to DTP, the benefit to citizens is shown in table 12. The
table compares the case where there is no change to the cost of a public service compared to the fall in cost due to the
introduction of e-services, assuming that by year 10 50 percent of households would use e-services. The table shows the
reduction in the cost of obtaining three government services per year over 10 years with total savings amounting to
US$190 million (NPV).44
Table 12: Savings to citizens from reduced transactions costs resulting from Digital Tanzania Project
US$, millions
Cost of e-service % of households No e-services With e-services
Difference (US$)
Year (US$) using e-services (US$) (US$)
2021 6.85
2022 6.32 5 13 12 1
2023 5.83 7 17 14 2
2024 5.38 9 22 18 5
2025 4.96 12 30 22 8
2026 4.58 16 40 27 13
2027 4.22 21 53 33 20
2028 3.90 28 71 40 31
2029 3.59 37 94 49 45
2030 3.32 50 126 61 65
Cumulative 190
NPV 70
Note: Assumes three government transactions per year. NPV based on today’s value (with discount applied).
41 Pew Research Center. 2015. Internet Seen as Positive Influence on Education but Negative Influence on Morality in Emerging and Developing
Nations. http://www.pewglobal.org/2015/03/19/1-communications-technology-in-emerging-and-developing-nations/.
42 ICTA (Information and Communication Technology Agency of Sri Lanka). 2013. E Government Survey – Final Evaluation. https://www.icta.lk/icta-
assets/uploads/2016/03/ICTA_eGov_FR_16-1-14.pdf.
43 According to the 2017–2018 Tanzania Mainland Household Budget Survey, average monthly household consumption expenditures were TZS
416,927 (US$184).
44 In Sri Lanka, users were surveyed on about 60 government services, but the survey results only refer to the cost of the latest public service they
used and does include information about how many government services they use a year.
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11. The GoT will realize cost savings from the implementation of IT. Shared services across public institutions and
automated processes for government operations will increase productivity and efficiency. The ability to deliver online
services to citizens will reduce costs compared to face-to-face meetings. One study on the cost savings from e-
Government is an analysis for Australia finding that public services delivered online cost significantly less than those with
a physical face-to-face interaction.45 The cost per transaction was found to be A$16.90 (US$12.58) when face-to-face
compared to A$0.40 (US$0.30) online. Extrapolating data from the Australian experience to Tanzania and adjusting for
income differences leads to the following generalized assumptions:
• On average, there are 34 government transactions per person in Australia. Applying this to Tanzania results
in an estimated 1.9 billion government transactions per year.
• The cost of a face-to-face transaction in Australia, presumably mainly labor costs, is adjusted by using the
ratio of Australia's GDP per capita (in purchasing power parities) to Tanzania's. This results in face-to-face
cost per transaction in Tanzania of US$0.64. No change is made to the average cost of an online transaction
(US$0.30) since this mainly results from computerization, a cost assumed roughly similar in Australia and
Tanzania.
• It is estimated that presently 5 percent of government transactions are carried out online in Tanzania, a figure
that will rise to 30 percent after 10 years due to Digital Tanzania. In Australia, 60 percent of government
transactions were carried out online in 2015.
12. Based on these assumptions, it is estimated that the savings to the GoT from moving a quarter of all transactions
from offline to online in 10 years would be US$341 million (NPV). These savings, equivalent to 12 percent of GoT’s
expenses for 2018 and equal to 0.5 percent of its 2019 GDP, accrues from a reduction of just US$0.34 per transaction.
These are remarkable potential savings, but it should be noted than most will accrue in the later phases of the program,
when the emphasis on eGovernment applications, rather than connectivity on enabling environment, is greater. The
Australian study also calculated savings to citizens from online public services to be 0.8 percent of household
consumption expenditure. Applying that figure to Tanzania results in a citizen savings of US$24 million a year, roughly
equivalent to the US$19 million a year in the citizens savings example above based on a different set of assumptions.
Table 13: Estimated costs savings from moving government transactions from offline to online
as a result of Digital Tanzania Project
Year No change Face-to-Face (US$) Online (US$) Total (US$) Savings Online
(US$) (US$) share (%)
0 1,100 1,073.2 26.3 1,100 5
1 1,100 1,041 41 1,082 17 8
2 1,100 1,010 56 1,066 34 11
3 1,100 979 70 1,049 50 13
4 1,100 950 84 1,034 66 16
5 1,100 921 97 1,018 81 18
6 1,100 893 110 1,004 96 21
7 1,100 867 123 989 110 23
8 1,100 841 135 975 124 26
9 1,100 815 147 962 138 28
10 1,100 791 158 949 151 30
45Deloitte. 2015. Digital Government Transformation.

https://www2.deloitte.com/content/dam/Deloitte/au/Documents/Economics/deloitte-au-economics-digital-government-
transformation-230715.pdf.
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Year No change Face-to-Face (US$) Online (US$) Total (US$) Savings Online
(US$) (US$) share (%)
Cumulative 867
NPV 341
Note: NPV based on today’s value (with discount applied).
13. These estimates indicate that the modest investment in the DTP (US$150 million) would be repaid many times
over from potential cost savings and from the cumulative boost to economic growth of over US$1.1 billion over 10 years,
or around US$433 million using NPV. Furthermore, this calculation does not take into account savings and economic
boost from other parts of the program, such as the stimulus to e-Commerce (in sub-component 1.2) or the benefits from
better trained civil servants (under sub-component 3.3). Overall, therefore, DTP will provide a welcome boost to
Tanzania’s future economic prospects.
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ANNEX 4: How Digital Tanzania Project will contribute to meeting IDA-19 digital commitments
COUNTRY: Tanzania
Contribution of the proposed

IDA19 Theme Area Policy Commitments
operation
Fragility, Support building client capacity in 50 N/A (Tanzania is not on the IDA list of FCS
Conflict and percent of IDA fragile and conflict countries).
Violence situations (FCS) countries to use field-
appropriate digital tools for collection and
analysis of geo-tagged data; and apply this
technology to enhance project
implementation and coordination.
Governance Public Support 10 IDA countries to adopt By strengthening and expanding the
and Institutions service universally accessible GovTech solutions. internet connectivity of public institutions,
delivery and building digital skills of government
officials, the project (through component 2
interventions) will provide the foundations
for building GovTech solutions (through
component 3). The aim is to improve access
to, and quality of, government services. The
project will also expand the internet
connectivity of Tanzanian citizens in rural
areas, through sub-component 2.2, thus
enabling them to access GovTech solutions.
Furthermore, component 1, supporting the
general development of the digital
economy, will provide further assistance to
create, strengthen, and regulate public
digital platforms, in coordination with other
WBG interventions.
Jobs and Creating IDA commitments to close the digital Laying digital foundations to enable the
Economic and infrastructure gap by reaching 30 percent growth of digital economy in Tanzania will
Transformation connecting broadband penetration in at least 20 IDA unlock numerous opportunities across high-
to markets countries in the African continent by 2023 potential sectors in Tanzania, creating
additional digital and non-digital jobs
(supported by interventions under
component 1 of the project). Further, the
project will contribute to the government’s
aim of achieving 80 percent internet access,
notably through sub-component 2.2 on
extending mobile broadband coverage and
sub-component 3.3 on enhanced digital
literacy.
Building Some 50 percent of entrepreneurship Through sub-component 1.1, including the
capacities projects will incorporate digital financial establishment of the National ICT
and services and/or digital entrepreneurship Professional Development and Innovation
connecting elements—and ensuring they address Center, and work with FabLabs, the project
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Contribution of the proposed

IDA19 Theme Area Policy Commitments
operation
workers to constraints facing women and/or persons will promote digital entrepreneurship with
jobs with disabilities. the aim of creating at least 1,000 new digital
and digitally enabled businesses. The GoT
recognizes that the job creation potential of
improved digitization can spread to the
population through digital
entrepreneurship in Tanzania. The project is
targeting at least 100 new digital and
digitally enabled businesses. A further goal
is to increase the level of contribution of the
digital economy to be equivalent to 3
percent of Tanzania’s GDP.
Gender and Removing At least 60 percent of IDA19 financing The project has several activities that will be
Development constraints operations for digital skills development specifically tracked for their contribution to
for more will support women's access to online gender and development. Indeed, in line
and better work. with the development objective of
jobs increasing access to affordable, high-quality
internet services for the government,
businesses, and citizens, the project will be
tracking the percentage of internet users
that are women and girls. Component 1, in
particular, will seek to increase women’s
access to technology, while Components 1
and 3 will track training provided to women.
Removing All IDA19 financing operations for digital Interventions to strengthen digital skills and
barriers to development will support women's foster digital entrepreneurship will place
women's increased access to ICT services and take special emphasis on women, for example,
ownership steps to increase women's usage of through the National Center on ICT
of and services. Professional Development and Innovation;
control in sub-component 1.1, there will be a focus
over assets on providing equivalent access to both men
and women to digital skills training.
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ANNEX 5: Climate Co-Benefits

COUNTRY: Tanzania
Climate risks in Tanzania and their potential project impact
1. Tanzania is experiencing challenges related to climate change, including unpredictable rainfall, rising
temperatures, and sea levels, and an increase in extreme weather events. These changes are predicted to worsen in the
coming years and will threaten livelihoods, infrastructure, and public health, among other adverse effects.
2. The project has been screened for Climate and Disaster Risk, using the World Bank Risk Screening Assessment
Tool. Tanzania’s future exposure to relevant climate and geophysical hazards is considered substantial while the current
level of exposure is moderate. In particular, Tanzania is at high risk of rising sea levels and adverse weather. The following
highlights key risks and their linkages to the project.
3. Extreme temperature. Monthly minimum and maximum temperatures increased between 1974 and 2004 at the
meteorological stations located in the regions of Arusha, Bukoba, Dodoma, Iringa, Kilimanjaro, Mbeya, Morogoro,
Mwanza, Songea, Tanga, and Shinyanga in Tanzania. Average annual temperature is projected to increase by 1.0° to 2.7°
C by 2060. It is expected that the project will include activities in these regions. Extreme temperatures can put additional
pressure on data centers and other infrastructure installations.
4. Extreme precipitation, flooding, and landslides. Rainfall over Tanzania has become more variable. One of the
main reasons for decreased precipitation and increased flooding is related to a reduction in forest cover. Future floods
are the main natural hazard that Tanzania experiences on a regular basis. Heavy precipitation is projected to increase
over East Africa, including Tanzania. Increased heavy rainfall due to climate change may lead to malfunctioning and
disruption of critical infrastructures, including communications facilities and data centers, through soil erosion,
waterlogging, and flooding. However, in general project installations such as cell towers are in higher lying areas which
are less prone to flooding.
5. Sea level rise. Sea level rise has affected the coast of Tanzania, notably in the district of Bagamoyo in recent years.
The key structural measures of the DTP are distributed nationwide, with few in coastal areas or in Zanzibar, and are
generally far above the sea level. They are hence unlikely to be exposed to a sea level rise.
Climate related project activities
6. The project aims to systematically improve climate resilience in Tanzania through a program of activities that cover
both climate adaptation and mitigation.
Climate adaptation
• Policy scan to identify laws or gaps that tackle climate-friendly digitization.

• Capacity building for government officials to design and implement climate-resilient communications
infrastructure, and to design and implement disaster risk plans, including backup and data loss contingencies.
• Integration of topics related to climate-friendly connectivity and digital consumption, including e-waste
management and energy efficiency in training activities.
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• Extended coverage and services of broadband internet to remote areas will enable the creation of climate early
warning and emergency response systems through the uninterrupted network available in the aftermath of a
disaster.
• Technology choices for infrastructure will, when possible, take climate resilience into account. For example,
operators of cell towers in rural areas will be required to increase climate resilience by choosing sites which
are not subject to flooding.
• To the extent possible, underground deployment of fiber cables, as opposed to, for example, aerial cables, will
be prioritized, as these are more likely to be water resistant and tend to be more robust.
Climate mitigation
• Refurbishment of computers will prolong the lifetime of computers and reduce e-waste and subsequently
emissions related to production of devices.
• Increased use of digital technologies to substitute for physical movement of goods and people can reduce GHG
emissions. In particular, the focus on last-mile connectivity and OSSCs would reduce the need of rural citizens
to travel to government offices.
• Technology choices for infrastructure will, when possible, take climate mitigation into account; for example,
energy-efficient data centers.
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ANNEX 6: World Bank Group COVID-19 Country Program Response Note – Tanzania
COUNTRY: Tanzania
1. Health impact. A full assessment of the COVID-19 health situation in Tanzania has proven to be difficult. Tanzania
reported its first COVID-19 case on March 16, 2020, and as of April 29, 2020, the last date on which data was published,
recorded a total of 509 cases with 21 deaths. Tanzania, as almost all countries in Africa, appears to have lower morbidity
and mortality than the global trend, including Europe and North America. Anecdotal evidence indicates COVID-19 cases
and deaths persist, but the numbers continue to be low despite lifting of most restrictions. The Government has been
advised by the WHO, UNICEF, and various development partners, including the World Bank, to continue tracking and
ensure timely reporting of COVID-19-related information on new infections and deaths, to ensure interventions are
adapted to the epidemiological trends.
2. Economic impact. Tanzania’s solid macroeconomic performance over the past six years is being put to the test by
the COVID-19 pandemic. COVID-19 has slowed the Tanzanian economy, particularly in tourism and other externally
linked sectors including transport and manufacturing. Additionally, leading indicators of private consumption and private
investment (for example, domestic credit growth, tax revenues, import of capital goods) show a deceleration. According
to World Bank estimates, growth is projected to decelerate from an estimated 5.8 percent in 2019 to 2.5 percent in
2020, with an expected rebound near 6 percent over the medium term. Declining economic activity has held inflation in
check, at 3.1 percent year-on-year in October 2020, and is projected to remain stable. A major decline in imports plus
buoyant exports of gold and traditional products offset the decline in exports of manufactured goods and services
(tourism), with the current account on balance declining to 1 percent of GDP in September 2020 from 2.8 percent a year
earlier. Official gross reserves have declined but remain adequate to cover six months of projected imports of goods and
services, and the Tanzanian shilling has remained relatively stable against the currencies of major trading partners.
3. Distributional impact. The poverty impact of COVID-19 is considerable, albeit less severe than in other countries.
Cell phone location data suggests that in Tanzania reductions in people’s mobility were more moderate than in other
Sub-Saharan African countries. However, 14 percent of businesses had laid off workers, and around 8 percent of workers
have lost their job, according to a recent enterprise phone survey. With one quarter of the poor relying on the non-farm
sector for their income, poverty is likely to increase by 1–2 percent in 2020.
4. Government response. Tanzania’s COVID-19 response at the onset of the crisis was reasonably robust. The
country implemented critical mitigation measures to limit the spread of the virus without national lockdown and
enhanced its preparedness/containment capacity. The GoT established three coordination committees to oversee the
response at the country level. It also initiated detection and surveillance at points of entry, including at airports and
border crossings; closed schools and airports; suspended public meetings, sporting, and social events and international
passenger flights; encouraged people to avoid unnecessary movements, practice hand hygiene and social distancing;
and designated public and private hospitals to serve as COVID-19 treatment centers. In addition, the GoT operationalized
contact tracing, quarantining of contacts in designated places, and strengthened laboratory capacity to collect samples
and test for COVID-19. A National Response Plan for COVID-19 was developed, aligned with the WHO’s COVID-19 Global
Strategic Preparedness and Response Plan. It mobilized support from development partners, primarily grant financing
of US$68 million. The restrictive measures were eased from May 2020 as the government claimed a drastic drop in
COVID-19 infections.
5. Participation in the DSSI. A preliminary Debt Sustainability Analysis update (April 2020) indicates that Tanzania
remains at low risk of debt distress. Official bilateral and multilateral creditors continue to be the major financiers.
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Tanzania is participating in the COVID-19 Debt Service Suspension Initiative (DSSI) of the G20, which should free about
US$148.9 million (0.2 percent of 2019 GDP).
6. WBG Response. The Government has not sought financing from the WBG’s COVID-19 Multi-phase Programmatic
Approach (MPA). The WB COVID-19 support has primarily been through: (a) the US$3.79 million COVID-19 Pandemic
Emergency Financing Facility Project (P174366), to strengthen capacity for laboratory diagnosis and management of
COVID-19 cases, financed under the Pandemic Emergency Financing Facility and (b) the Strengthening Primary Health
Care for Results Program (P152736). The WB is a contributor to the Health Basket Fund which has provided US$6.5
million to support provision of personal protective equipment (PPE) to primary health care facilities nationwide. In
addition, the Tanzania Urban Resilience Program (P159779) has supported promoting risk awareness in urban areas
through an Information, Education and Communication package, including animated videos and posters carrying
messages on COVID-19. The WBG, in coordination with participating development partners, agreed to temporarily
suspend the health and education conditionalities linked to the payment of cash transfers for poor households beyond
supporting, on an exceptional basis, a double payment for Productive Social Safety Net Project (P165648) beneficiaries,
to provide them with an extra buffer during a time of crisis. In addition, the Bank has provided analytical input to support
the GoT’s pandemic response, including a note outlining the impact of COVID-19 from a social protection perspective,
with policy options designed to protect poor and vulnerable households.
7. All projects’ Implementation Status and Results Reports (ISRs) include a consideration of impacts of COVID-19,
and all pipelined operations, additional financing, and restructurings are being screened for potential COVID-19 response
focus. At the same time, the WB is leveraging its Advisory Services and Analytics (ASA) portfolio to strengthen the
evidence base to inform COVID-19 sensitivity in development programming, including the forthcoming Performance and
Learning Review (PLR) for the Tanzania CPF.
8. Vaccination. Tanzania is eligible for the COVAX Facility, a global effort aimed at delivering COVID- 19 vaccines to low-
and middle-income countries. The GoT is yet to apply for accessing this Facility which is advised by the technical agencies
(WHO and UNICEF) who also call for the adoption of international standard responses, including COVID-19 vaccine
deployment targeting high risk groups (including frontline health care workers; and people above the age of 65 and
those with comorbidities). The GoT has established a Technical Committee to assess the effectiveness of available
vaccines with the view to recommending the most viable option.
9. Use of IDA19 resources. Tanzania’s indicative IDA19 national allocation is around US$2 billion. The WB will ensure
that projects financed under Tanzania’s IDA19 country allocation are well aligned with both the objectives of the CPF
(FY18/19–22/23) and key IDA19 priorities, including a strong focus on human capital and infrastructure that directly
benefits the poorest. Tanzania could avail itself of financing available under the COVID-19 MPA for COVID-19 vaccination,
however, at present has not yet indicated interest in MPA financing for vaccination.
10. Development partners. A range of donors are supporting the Government’s response plan. Donor financing
includes the IMF (US$14.3 million under Catastrophe Containment and Relief Trust), the Arab Bank for Economic
Development in Africa (US$1.7 million), the European Union (US$44.2 million), Republic of Korea (US$0.5 million), and
the Global Fund for AIDS, Tuberculosis and Malaria (US$6.2 million), along with others (US$1.5 million).
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Table 14: Tanzania: FY21 indicative lending and restructuring program ( as of February 25, 2021)
CPF Focus Relief Restructuring Resilient Recovery

Enhance productivity and
accelerate equitable and
sustainable growth
US$3.79 million Tanzania COVID-19
Boost human capital and social
Pandemic Emergency Financing
inclusion
Facility Project (P174366)
Modernize and improve the
efficiency of public institutions
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ANNEX 7: Identification of gender barriers and opportunities and targeted actions

COUNTRY: Tanzania
1. Table 15 tracks some of the ways in which the Digital Tanzania project may contribute to greater gender
equality and inclusiveness.
Table 15: Gender equality and inclusiveness
Digital Intervention Barrier / Suggested gender Actionable recommendation
(subcomponent) Opportunity targeted action
Lack of actionable Focus on • Establish and embed disaggregated KPIs within the
sex-disaggregated strengthening the project.
Digital Ecosystem data. data ecosystem. • Develop gender indicators in the NISMIS.
Data (Sub-
component 1.2) • Track female usage of ICTs under future surveys,
and track progress against baseline survey carried
out in 2017.
Lack of Capacity-building • Train PIU staff and decision makers in the

institutional programs for decision government (top ranking civil servants) to develop
capacity and makers. gender expertise in digital gaps. This kind of
processes in training need not be limited to those in the ICT
decision making Tracking number of sector only, but in all relevant sectors that will play
Digital Ecosystem focused on gender female employees in a role in the implementation of ICT policy (e.g.,
gaps. firms supported under health and education departments, population
Gender Inclusive
the project. registry departments, and so on).
Policy (Sub-
components 1.1 and Identify policy Integrate gender • The regulator will convene with the Ministry of
3.3) gaps that might considerations into Health, Community Development, Gender, Elders
hinder the this regulatory scan of and Children to ensure that gender considerations
development of the digital economy are integrated into this regulatory scan of the
the digital (Sub-component 1.1). digital economy.
economy in
Tanzania.
• MNOs could develop and market bundled family
SIM cards that include one SIM intended to be
Encourage private used by a woman (for example, as employed by
Mobile Network Uninor, India), and/or offer devices on installment
Lack of
Operators (MNOs) plans (the buyer takes possession of the device on
Digital affordability for
and retail sellers to payment of a deposit and completes the purchase
Infrastructure and voice/data
pursue innovative by paying a series of regular instalments while the
Connectivity services.
pricing models in SIM MNO retains ownership until the final instalment
Affordability (Sub- cards.
components 1.1, is paid.).
2.2, and 2.2) • Consider approaches to marketing which position
Encourage private the family unit as a ‘team’, clearly explaining the
MNOs and retail benefits of multiple family members owning
Relatively high
sellers to pursue personal phones, with particular emphasis on the
smartphone prices
innovative device women of the household having their own device.
pricing models
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Platforms and Limited access to OSSCs (Huduma
• Having women involved in the Huduma Jamii could
Services government digital Jamii): ensure
ensure that female citizens are more comfortable
services for adequate coverage in
(Sub-component using these (due to female intermediaries) than if
women, due to remote and poor
3.1) run exclusively by men.
gender gap in locations, where
device ownership, women are often • Overcome social constraints on physical mobility
and more concentrated. or residential/economic mobility by choosing
restrictions on appropriate locations (e.g., local schools, public
mobility. Run a specific libraries, or a community centers).
consultation with
• The opening times of the public access centers
women to hear about
should consider women’s time constraints, leisure
how centers could be
time, etc.
more accessible to
them and then • The design of digital centers should be conducive
implement those to women’s use and comfort (e.g., cubicle-type
recommendations. designs which allow for privacy).
Platforms and Lack of knowledge Deploy an awareness • The project will engage with local civil society,
Services around digital campaign to raise the faith-based organizations, and women’s groups to
services available level of utilization of address cultural and social norms that might help
Awareness (Sub-
to women. online government or hinder women’s digital literacy.
component 3.3)
services.
• The project will collaborate with technology
companies and mobile operators to design
Improve STEM
awareness programs highlighting specific benefits
awareness among
for women by gaining digital literacy, including
women and girls.
access to information and job opportunities.
• Campaigns can also highlight how women's use of
ICT in Tanzania may be tied to tangible benefits
(for example, mobile money accounts allowing for
quick access to government cash
transfers/subsidies).
• The activity intends to increase digital literacy in
terms of increased awareness and usage of digital
services by citizens, with specific consultations
with the government and local stakeholders to
ensure that women’s engagement with citizen
services is taken into account.
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Digital Skills (Sub- Gender gap in Develop a • Track the involvement of women benefitting from
component 3.3) labor force comprehensive and the training provided, as well out as the outcomes
participation. gender-inclusive of the training.
digital skills program. • At least 60 percent of IDA19 financing operations
for digital skills development should support
women's access to online work.
• Increased awareness and participation of women
in STEM programs and more broadly in ICT.
• If the digital training is to be provided physically,
there may be social norms constraining
interactions between men and women. It thus may
be necessary to have sex-segregated training
sessions. Leaders of women associations could
take the lead in training other women in
coordination with the PIU. Likewise, the instructor
may also have to be female.
• It may be necessary to hold the trainings (whether
physical classroom sessions or modules relayed
over radio/television) at a time convenient for
women (should not clash with compulsory work or
domestic responsibilities, and to have other
women providing daycare services to give time to
fully follow the training).
• It is also important to ensure that these trainings
take place in a venue where the women feel
comfortable and can concentrate on learning (e.g.,
not in a place where men or others are viewing
them).
Note: The table is intended to be indicative not exhaustive.
Page 90

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Public Disclosure Authorized

FOR OFFICIAL USE ONLY

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT

IN THE AMOUNT OF SDR 105.9 MILLION

UNITED REPUBLIC OF TANZANIA

DIGITAL TANZANIA PROJECT

Digital Development Global Practice

(Exchange Rate Effective March 31, 2021)

Currency Unit = Tanzanian Shilling (TZS)

Regional Vice President: Hafez M. H. Ghanem

AFD Agence Française de Développement / French Development Agency

Tanzania Digital Tanzania Project

Project ID Financing Instrument Environmental and Social Risk Classification

Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC)

[ ] Series of Projects (SOP) [ ] Fragile State(s)

[ ] Project-Based Guarantee [ ] Conflict

[ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Enhanced Implementation Support (HEIS)

Expected Approval Date Expected Closing Date

Proposed Development Objective(s)

Component Name Cost (US$, millions)

2. Digital Connectivity 62.50

3. Digital Platforms and Services 47.80

4. Project Management 3.50

Borrower: United Republic of Tanzania

PROJECT FINANCING DATA (US$, Millions)

Total Project Cost 150.00

Total Financing 150.00

of which IBRD/IDA 150.00

World Bank Group Financing

International Development Association (IDA) 150.00

IDA Credit 150.00

IDA Resources (in US$, Millions)

Credit Amount Grant Amount Guarantee Amount Total Amount

National PBA 150.00 0.00 0.00 150.00

Total 150.00 0.00 0.00 150.00

Expected Disbursements (in US$, Millions)

WB Fiscal Year 2021 2022 2023 2024 2025 2026 2027

Annual 0.00 27.57 48.74 27.95 20.68 17.92 5.36

Practice Area (Lead) Contributing Practice Areas

Climate Change and Disaster Screening

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance ⚫ Moderate

3. Sector Strategies and Policies ⚫ Moderate

4. Technical Design of Project or Program ⚫ Moderate

5. Institutional Capacity for Implementation and Sustainability ⚫ Moderate

7. Environment and Social ⚫ Moderate

10. Overall ⚫ Moderate

Does the project require any waivers of Bank policies?

E & S Standards Relevance

Stakeholder Engagement and Information Disclosure Relevant

Labor and Working Conditions Relevant

Resource Efficiency and Pollution Prevention and Management Relevant

Community Health and Safety Relevant

Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant

Biodiversity Conservation and Sustainable Management of Living Natural Relevant

Financial Intermediaries Not Currently Relevant