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This report assesses Tanzania’s governance and public finance systems across four interconnected areas: Domestic Resource Mobilisation, Public Financial Management, Statistical Capacity, and Anti-Corruption. Declining aid, tighter fiscal space, rising debt pressures, and climate risks are increasing the urgency of strengthening domestic resources and governance. At the same time, the 2025 elections and growing political centralisation raise concerns about institutional independence, accountability, and effective oversight.

Reform frameworks are in place, with progress particularly in revenue administration. However, implementation remains uneven, while political interference, weak institutional independence, and fragmented donor engagement risk undermining technical reforms. Governance reform is therefore as much a political-economy challenge as a technical one. For development partners, this calls for sustained but realistic engagement: supporting reform-minded institutions and coalitions, strengthening independent oversight, and coordinating assistance to safeguard transparency, accountability, and institutional resilience.

Odd-Helge Fjeldstad

Research Professor, Coordinator: Tax and Public Finance