Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Economic Implications of Tanzania's NGO Sector In Employment, Investment, and Development
April 21, 2024  
From 2014 to 2024, Tanzania witnessed a significant growth in the number of registered NGOs, reaching a total of 10,538 entities. These organizations played a vital role in the country's development landscape, offering a diverse range of services to address various societal needs. The cumulative number of services provided by these NGOs amounted to a […]

From 2014 to 2024, Tanzania witnessed a significant growth in the number of registered NGOs, reaching a total of 10,538 entities. These organizations played a vital role in the country's development landscape, offering a diverse range of services to address various societal needs. The cumulative number of services provided by these NGOs amounted to a staggering 16,600,125, showcasing the breadth and depth of their impact across different sectors and communities. Despite the substantial number of services offered, the employment generated by these NGOs stood at 4,661, highlighting their efficiency in leveraging resources to create meaningful opportunities for individuals within the workforce.

In terms of project funding allocation, the data underscores the prioritization of key sectors crucial for Tanzania's socio-economic progress. Education emerged as a top priority, with a substantial investment totaling TZS 225,903,250,015.00 billion, reflecting the nation's commitment to improving literacy rates and educational infrastructure. Health received the highest project funding, amounting to an impressive TZS 1,814,732,170,335.00 billion, indicative of efforts to enhance healthcare accessibility and quality across the country.

While there has been significant investment in projects across various sectors in Tanzania, the employment generated directly by these projects, as indicated by the number of employments (4,661), might not be proportionally high compared to the scale of project funds allocated. This indicates a potential gap between the magnitude of financial investment and its direct impact on job creation within the economy. While projects in sectors such as education, health, and economic empowerment receive substantial funding, the employment generated appears relatively modest. This could imply a need for further examination of the types of projects funded and their capacity to create sustainable employment opportunities, ensuring that investments effectively translate into broader economic benefits, including job creation and livelihood improvement for Tanzania citizens.

Investments in water and energy sectors amounted to TZS 31,814,006,296.00 billion and TZS 4,162,001,734.00 billion, respectively, emphasizing the importance of ensuring reliable access to essential utilities for all Tanzania citizens. Economic empowerment initiatives received substantial support, with project funds totaling TZS 3,888,363,427,553.00 billion, underscoring efforts to foster sustainable economic growth and poverty alleviation.

Furthermore, attention was given to critical areas such as governance, gender equality, social protection, environmental conservation, agriculture, and human rights, as reflected in the allocated project funds. These investments aimed to address systemic challenges, promote inclusive development, and uphold fundamental rights and values within Tanzania society. Overall, the data highlights the multifaceted approach adopted by Tanzania in leveraging NGO partnerships and strategic project funding to advance its developmental goals and improve the well-being of its citizens.

Tanzania's development landscape over the past decade, particularly in terms of the role played by NGOs and the allocation of project funds across various sectors.

NGO Growth and Service Offerings:

The significant increase in the number of registered NGOs from 2014 to 2024 shows a growing presence of civil society organizations actively engaged in addressing social, economic, and environmental challenges. The diverse range of services offered by these NGOs, totaling over 16 million, highlights their multifaceted contributions to societal development.

Employment Impact:

Despite the large number of services provided, the employment generated by NGOs remained relatively modest. This shows that while NGOs play a crucial role in service delivery and community development, their direct contribution to employment generation might be limited compared to other sectors.

Sectoral Priorities in Project Funding:

The allocation of project funds across different sectors reflects the government's priorities and development agenda. Education, health, water, and economic empowerment received substantial investments, indicating a focus on improving human capital, healthcare infrastructure, and economic opportunities.

Inclusive Development:

Investments in sectors such as governance, gender equality, social protection, and human rights underscore Tanzania's commitment to fostering inclusive development and safeguarding the rights and well-being of all citizens.

Environmental Conservation:

The significant allocation of funds towards environmental conservation initiatives highlights Tanzania's recognition of the importance of preserving natural resources and addressing environmental challenges such as climate change and biodiversity loss.

Tanzania Registered NGO’s (from 2014-2024)Number Of Services OfferedEmployments
10,538                   16,600,125.00 TZS               4,661
Total Project Funds By SectorsTZS(Billion)
Education            225,903,250,015.00
Industrialization                   251,585,223.00
Health         1,814,732,170,335.00
Water               31,814,006,296.00
Energy                4,162,001,734.00
Infrastructure                   434,752,417.00
Governance              81,537,861,476.00
Economic empowerment         3,888,363,427,553.00
Gender              26,990,221,399.00
Social protection              59,263,005,493.00
Environmental         1,199,734,576,737.00
Agriculture            137,455,187,055.00
Human right              33,454,416,740.00
Total Project Funds         7,504,096,462,473.00

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