UNDP Empowers Local Governments in Tanzania to Localize Sustainable Financing Through INFF Workshop

June 10, 2025
A woman in a colorful patterned outfit writes notes at a conference table, focused and attentive.

UNDP Tanzania, through its Integrated National Financing Framework (INFF) Facility, organized a three-day capacity-building workshop in Morogoro aimed at strengthening the ability of Local Government Authorities (LGAs) to mobilize sustainable finance for local development. Held in collaboration with the President’s Office – Regional Administration and Local Government (PO-RALG),and the Institute of Rural Development Planning,  the workshop engaged stakeholders from Regional Secretariats and LGAs in Dodoma, Dar es Salaam (Temeke MC), and the Coastal Region (Kibaha MC). The objective was to build local capacity for implementing INFF at the subnational level, aligning financing with the Sustainable Development Goals (SDGs) and Tanzania’s development priorities.

A speaker in a suit presents to an audience seated in a bright room.

Day One introduced participants to the INFF concept and its relevance to local governance. Key themes included the role of LGAs in financing development, aligning local plans with SDG targets, and the need to integrate financing strategies into planning processes. Participants explored opportunities to diversify revenue streams and reduce dependency on central government transfers. 

Day Two focused on analyzing the local government financing landscape. Presentations highlighted that LGAs remain heavily dependent on intergovernmental transfers, averaging 85% of their annual budgets. Own-source revenue (OSR) collection has remained low—about 15.5% across three fiscal years—despite the introduction of systems like TAUSI and FFARS. This dependency limits fiscal autonomy and hinders timely implementation of local priorities. Participants emphasized the need to enhance OSR collection, strengthen the link between revenue generation and planning, and develop alternative financing models to reduce reliance on national budget cycles.

Day Three marked the inclusion of LGAs—Kibaha MC, Temeke MC, and Dodoma CC—who reviewed actual revenue performance data from FY2018/19 to FY2023/24. While recent trends show slight improvement, challenges in financial independence persist. The session focused on operationalizing INFF at the local level through the development of localized financing strategies, structured stakeholder engagement, and innovative financing instruments such as Public-Private Partnerships (PPPs), diaspora bonds, and Islamic finance. A key outcome was the engagement of the Institute of Rural Development Planning (IRDP) to support selected LGAs in diagnostics, financing gap analysis, and aligning development plans with INFF principles.

The workshop concluded with commitments from LGAs to pilot localized INFFs with technical support from UNDP, PO-RALG, and IRDP—marking a significant step toward sustainable, locally driven financing for development in Tanzania.