ASSESSING THE MUNICIPAL FINANCE ECOSYSTEM IN TANZANIA

The United Nations Capital Development Fund (UNCDF) Local Development Finance team supports local governments and economies in public service delivery in the world’s least developed countries. UNCDF has been asked by the government of Tanzania to assist in the development of a municipal bond market. UNCDF engaged a Capstone team to assess the current spectrum of subnational development finance options and the larger intergovernmental and subnational fiscal ecosystem in Tanzania. The team conducted primary and secondary research to identify possible market opportunities for municipal finance in the country. The team synthesized its findings into a final report, providing recommendations for intergovernmental and subnational fiscal and governance reforms that could enhance the creditworthiness of subnational governments in Tanzania.