National Poverty Policy Week, November 2013 Presented by Mr. Ladislaus Mwamanga, TASAF Executive Director

Outline Background Achievements Lessons learned Implementation challenges Challenges of poverty reduction and vulnerability TASAF-III Design Factors TASAF III Objectives, Beneficiaries and Components TASAF III Institutional Set up Programme Approach

 Tanzania Social Action Fund (TASAF) was officially initiated in 2000 by the Government of the United Republic of Tanzania  It was one of its initiatives on poverty reduction anchored to Poverty Reduction Strategies using community driven development(CDD).  The First Phase of TASAF ( ) addressed key issues that were identified in the first Poverty Reduction Strategy Paper (PRSP I), that is reduction of poverty by improving the social and economic services in key sectors of education, health, economic infrastructure and water with emphasis on rural and peri-urban areas. Main focus was on :  improving social service delivery  addressing income poverty for poor able bodied but food insecure households and  capacity enhancement 3 Background

 A total of 1,704 sub projects were funded and implemented and total of TZS 72 billion was used.  7.3 million beneficiaries in 40 districts on the Mainland and all districts in Zanzibar were reached through supported sub projects.  113,646 PWP direct beneficiaries (47% women) and transferred cash income was US$ 3.3 million  136,333 beneficiaries trained in various aspects of project management  More than 20,000 members of Community Project Committees, more than 1,500 district facilitators, about 200 NGOs/CBOs as well as Council Management Teams were trained. 4 Achievements of the First Phase

 The Second Phase of TASAF ( ) built on Millennium Development Goals (MDGs) and the first National Strategy for Growth and Reduction of Poverty (MKUKUTA I and MKUZA I) to assist meeting the targets by 2010 for MKUKUTA I/MKUZA I and 2015 for MDGs. 5 Implementation of the Second Phase

 The focus of the Second Phase was to address:  Lack and/or shortage of social services  income poverty in rural and urban areas, and  capacity enhancement of beneficiaries and institutions supporting targeted communities and households. 6 Implementation of the Second Phase….

 A total of 12,347 sub projects were funded and implemented and TZS 430 billion was used.  Population with access to improved social services was 18,682,208  Vulnerable individuals participating in income generating activities: 371,250.  Community Based-Conditional Cash Transfer reached 11,576 households with 28,480 individual beneficiaries.  A total of 280,223 individuals were reached with training at all levels.  A total of 1,778 voluntary savings groups with 22,712 savers were formed and saving a total of 750 million 7 Achievements of the Second Phase

 TASAF has not provided adequate coverage and continuity of support.  Resources were limited and inadequate to meet overwhelming demand from communities ( SPIF 118,000 vs 12,347 SP funded).  Functionality in some of created assets, especially in health and education sectors.  Scaling up of initiatives implemented in limited pilot areas, like the Community-Based Conditional Cash Transfer and Community Savings and Investment Promotion.  Low capacity of LGAs to support implementation at community level.  Inadequate reporting and follow up on the part of LGAs Challenges

… however, not everybody is equally poor… a significant number of people is very close to the poverty line… … but there are differences among the poor. Challenges of poverty reduction …….

 Consolidate the impressive achievement of TASAF-II using community-driven development (CDD) approach to facilitate implementation of public works, income generating activities for poor and vulnerable groups  Fill gaps in light of demand expressed by communities  Scale up conditional cash transfers, community savings and investments, and livelihood enhancement  Ensure functionality of created assets (education, health and water)  Improve Institutional Arrangement for effective support to poor communities TASAF III Design Factors

 Capacity enhancement of beneficiaries and organization support delivery of TASAF-III  Contribute to the attainment of MKUKUTA-II and MKUZA-II objectives and the advancement of the social protection agenda.  Targeted infrastructure development to spur progress towards achievement of the MDGs  Nationwide coverage  Focus on House Holds TASAF III Design Factors …..

Objective:  The objective of TASAF III is to enable poor households to increase incomes and opportunities while improving consumption. Beneficiaries:  The direct beneficiaries of TASAF III are the people currently living below the basic needs poverty line  This support will be focused on the poor and vulnerable households as well as those temporarily affected by short-term shocks.  These people will receive safety net support as well as the opportunity to participate in livelihood enhancing activities.  The broader number of people living under the basic needs poverty line will be eligible for livelihood support interventions as well as be prioritised for the targeted infrastructure support. Objectives and Beneficiaries of TASAF-III

Need for a Productive Social Safety net System Approach To cope with chronic poverty To mitigate shocks To reduce vulnerability in the mid- and long- term by investing in human capital of children To move on to a positive trajectory(route) Poor and vulnerable households require different types of support – A single intervention is not enough

+ + CCTs (HH with children and pregnant women) Incl. monthly community sessions PWP (HH with adults able to work) Plus savings promotion The Productive Social Safety Net: A system to support the poor and vulnerable in Tanzania Income generating activities, Savings, Training Education, health and nutrition services Human capital accumulation and sustained reduction of poverty v Smooth consumption, accumulation of assets v Participation for several years *A household becomes a beneficiary of both programs Unified registry of Beneficiaries Common targeting

Increasing consumption of extremely poor on a permanent basis Smoothing consumption during lean seasons and shocks Investing in human capital Strengthening links with income generating activities Increase access to improved social services Objective of the Productive Social Safety Net

Provision of predictable and timely cash transfers through a combination of :  CCTs for poor and vulnerable households (Education, health, nutrition)  Participation in seasonal cash-for-work programs during the lean season and shocks (a labor intensive intervention with 75/25 ratio of labor/capital) The same group of households will be beneficiary of both programs (over 85% beneficiaries will be able to participate in the CCTs and the cash-for-work Institutional reform  At the Social Protection sector level (Coordination, institutional responsibilities, rationalization of SP expenditures)  Implementing agency level (from a social fund to a safety nets approach) Instruments to support a system approach  Common targeting mechanism  Single registry of beneficiaries  Same payment mechanism  Comprehensive M&E System and integrated MIS Productive Social Safety Net

In all LGAs select villages using a Village/Mtaa/Shehia Index Village Assembly identifies the poorest households CMC collects information from households TASAF verifies list of beneficiaries applying a PMT Village Assembly validates final list of households CMCs collects information to register beneficiaries in the URB URB (administered by TASAF) URB (administered by TASAF) VC sends list of hh via LGAs TASAF sends list of hh via LGAs Selection and Registry of Beneficiaries

Target population  Those leaving below food poverty line Benefits  From the CCT:  Basic benefit: US$5 per month  Variable benefit: up to additional US$5 per month  From the cash-for-work:  US$1.35 per day for up to 60 days in four months Participation in the two programs equivalent to about 35% of annual households consumption. That means a HH will receive equivalent of $ 201 per year  From Livelihood enhancement:  capacity building and community sessions,  From Targeted Infrastructure:  support on Health, Education and Water sectors Benefits and beneficiaries

It is a generous program… Size of the benefit as % of pre-transfer consumption among beneficiaries

… and affordable

… with expected significant impacts…  Ex-ante simulations indicates:  Extreme poverty reduction of 52%  Extreme poverty gap reduction of 43%  The cost of the program once it reaches all poor households leaving below food poverty will be approx. 0.6% of the GDP  Emphasize on group saving and investment aspects  Capacity building and community sessions  Effective use of M&E system and MIS  Effective technical support and facilitation

 National level: National Steering Committee(NSC), Sector Expert Team (SET), TASAF Management Unit (TMU), TASAF is Under PO State House:  Regional level: RAS office: Focal TASAF Officer - Follow up of implementation in PAAs  PAA level: Executive Director, Management Team,(all sectors) Finance Committee, Full council  Ward level: Extension staff, CDO,..- Direct provision of technical support to communities and households  Village/mtaa/shehia level: CMC under oversight of Village Council/Mtaa Committee/Shehia Advisory Council, endorsed by Village Assembly/Mtaa/Shehia meeting, overall support to programme  CMCs. Day to day implementation management, collection of information to register beneficiaries and to verify compliance with co-responsibilities  Education and health sectors. Provision of information on compliance with co- responsibilities  Payment Agencies. Direct transfer to beneficiary households and reconciliation of payments TASAF III Institutional Set up

 The implementation modalities of TASAF III will require significant investment in the development of capacity at national, regional, PAA and community level and building systems at all levels.  In order to effectively and adequately develop capacity, the programme will therefore adopt a phased approach to programme roll-out.  Roll out plan starts with Regions with high poverty index  The exact speed of roll-out, and the final scale of the programme will be determined by the level of resources and capacity.  It is planned to reach all PAAs before end of December We have reached 22 PAAs to be concluded in January Programme Approach

Thank you for your attention Productive Social Safety Net (PSSN)