Local Administration Journal 14(2) • April – June 2021 • 123-144 123

Received: March 31, 2021 • Accepted: June 17, 2021

RESEARCH ARTICLE

Role of Local Government Authorities

in Promoting Local Economic
Development and Service Delivery to
Local Communities in Tanzania
Rogers Rugeiyamu Amani Shayi
The Local Government Training Institute, The Local Government Training Institute,
Tanzania Tanzania

Erick Kashonda Bahati Mohamed

The Local Government Training Institute, The Local Government Training Institute,
Tanzania Tanzania

Abstract
Local Government Authorities (LGAs) possess traditional roles of securing a stable business and
service delivery environment at the community level. Despite the aforesaid roles, the actual
contribution to local economic development (LED) and service delivery remains inconclusive in
Tanzania. This paper aims to explore the role of LGAs in promoting LED and service delivery to
local communities in Tanzania. The study is conducted along Community Economic Development
and Service Support Approach to be used in assessing the role of LGAs in promoting LED and
service delivery at the community level. The approach provides a guideline for LGAs regarding
where to focus in order to become active in playing their role. The study uses documentary review
of reports, books, articles and newspapers. The collected data were analyzed through secondary
data analysis approach. The findings revealed that LGAs promote LED by providing soft loans,
improving business infrastructure and local investment support. Also, LGAs promote service
delivery by ensuring supply of water, supporting electricity supply and school improvements.
Challenges toward playing a more effective role were identified including non-performing loans
and failure to provide entrepreneurship skills. The study urges LGAs to put more effort toward
solving the identified challenges, e.g., addressing non-performing loans, completing unfinished
business infrastructure, and becoming innovative toward service delivery and economic liberation
of local communities.

Keywords
economic development, local community, LGAs, service delivery

CORRESPONDING AUTHOR
Rogers Rugeiyamu, The Local Government Training Institute
P.O. Box 1125, Dodoma, Tanzania. Email: okoth3890@gmail.com
© College of Local Administration, Khon Kaen University. All rights reserved.
Introduction
Local Government Authorities (LGAs) were established under the constitution of the
United Republic of Tanzania of 1977 Articles 145 and 146. The purpose of the LGA is to transfer
authority to the people, empower them to participate, and involve them in the planning and
implementation of development programs within their respective areas. LGAs in Tanzania have
the function of social development and public service delivery, facilitation of maintenance of law
and order and promotion of local development under a participatory process. They are
administered through local councils responsible for overseeing local government activities
(Rugeiyamu et al., 2018, 244).
LGAs in Tanzania passed through a long history. In summary, their evolution can be
traced to a pre-colonial time when people organized themselves in kingdoms/chiefdoms.
Rudimentary forms of LGAs also existed during colonialism, especially during British domination
when chiefs/kings were also used in colonial administration. During independence LGAs were
retained and improved to cope with the environment of that time. In 1972 LGAs were abolished
and replaced by the development committees with central control, and then re-established in
1982. The 1982 re-establishment resulted in the structure of LGAs in Tanzania today (Mmari,
2005, 5).
In relation to Articles 145 and 146 of the constitution of the United Republic of Tanzania,
LGAs are empowered by the Local Government (District Authorities) Act No.7, 1982 establishing
district authorities and Local Government (Urban Authorities) Act No. 8, 1982 establishing urban
authorities. In this regard, LGAs in Tanzania are divided into rural authorities established by Act
No. 7, and urban authorities established by Act No. 8 as identified above (Njunwa, 2005).
The district authority is made up of units including village government, Township
Authorities and District Councils. The village government is composed of the village council
(comprising the village chairperson, village executive officer, and not more than twenty-five
members), and the village assembly in which all members of the village who have reached the
age of 18 years are eligible to participate. A village assembly is called quarterly during the year.
As Tanzania LGAs follow a council committee system, the village has three committees which
are planning/finance/economic affairs, social services, and security. The village council members
are elected every five years.
Again, Township Authorities are for promoting and maintaining an effective and efficient
system of local government in a township area. The township administration is comprised of the
chairman, one elected member from each ward in the area of the township authority, not less
than three members appointed by the respective district where the township resides, members of
parliament residing in the township area, such that the number of women members who are
qualified to be elected to the township authority comprise not less than one quarter of all the

124 Local Administration Journal 14(2) • April - June 2021

members, and the township executive officer (with no right to vote) who becomes the secretary
to the council. Members of the council are elected for a period of five years (S.45, 136, 160 District
Authorities Act). At the district level, there is a district council, comprised of members elected
from each ward (to terms of five years), members of parliament representing constituencies within
the area of the district council, and three members appointed by the minister responsible for LGA.
District Councils supervise the implementation of all plans for economic, commercial, industrial,
and social development in their respective areas. Also, the council approves by-laws made by the
village councils, and coordinates implementation of plans, projects, and programmes for the
villages within its area of jurisdiction. The administrative part of the district council is headed by
the district executive director who is the head of administrative officials/technocrats of the
council, while the director is also a secretary to the council (S.5, 35, 122 District Authorities Act).
On the side of urban LGAs, the system is composed of three units which are town
councils, municipal councils, and City councils. A town council is comprised of members elected
from the ward within the town and members of parliament representing constituents within the
town. Members of the town council are elected every five years. The elected members then elect
a chairman and vice-chairman for each town council. Again, a Municipal Council is made up of
members elected from wards within the municipality, members of the parliament representing
the constituencies within the municipality, and not more than three members appointed by the
minister responsible for the local government affairs from among the residents of the
municipality. Here, the council is headed by the Mayor. Moreover, City councils are composed of
one member elected form each wards within the city, the members of the Parliament residing
within the city council, and not more than three members appointed from the residents of the
city (S.19 Urban Authorities Act).
Each town council, municipal, or city council has a Chairman, Vice-chairman, Mayor and
a Deputy Mayor respectively. The chairman and vice-chairman of a town council, and the Mayor
and the Deputy Mayor of a municipal council and a city council are elected by members of the
councils from amongst the elected members of the urban authorities. The life of each council is
a period of five years. Each unit has a director who manages bureaucrats within the respective
councils and becomes a secretary to the council (S.20 Urban Authorities Act).
Again, the relationship between LGAs and central government is built along the system
of inter-governmental relations with central government having the over-riding power within the
framework of constitution. The relationship between line LGAs and line ministries is that line
ministries are the supportive and capacity-building bodies, policy-making bodies, and monitoring-
quality-assurance bodies within the local government legislation framework, along with the
control bodies such as legal control and audit. Again, the President’s Office Regional
Administration and Local Government (PO-RALG) ministry coordinates all initiatives from
ministries toward LGAs, and issues regulations and guidelines for LGAs.

Role of Local Government Authorities 125

 In fact, the revealed structure of LGAs as part of Local Government Reform is a move
toward fully decentralization by the devolution agenda of 1998 (Lukumai, 2006, 10). It can be
said that the current political and economic reforms and the renewed interest in decentralization
policies and its implementation provide local government with increased opportunity to become
actively involved in local economic development (LED) (Ofori, 2011, 1). The involvement of local
government in LED in recent times has been a major issue of discussion, and specifically in
Tanzania (PORALG, 2018; 2019, 6). LED is anticipated to be a gear toward liberating the
community economically and improving the service delivery at the local level. LED can be defined
as a positive social, economic, and political change in a community (Isaacs, 2006, 4). In this
aspect, it is regarded as a process in which community members maximize their potential and
institutional capacity to mobilize and manage resources to produce sustainable and justly
distributed improvements in quality of life consistent with their own aspirations (Isaacs, 2006, 4).
The LED promotes increased opportunities for better economic performance and sustained
community livelihoods. It empowers the poor, strengthens their participation in the local capital
life and decision making, reduces poverty and fosters economic growth. This is the role that the
LGAs are supposed to play to enable the local community to achieve economic development
(PORALG, 2019, 6).
LED is supposed to be participatory. In most cases, it is based on the partnerships
between local authorities and community members, private sector, and civil society to promote
economic development. This study focuses on the role played by the LGAs in liberating people
economically, and efforts toward service delivery to communities (The Federation of Canadian
Municipalities, 2014, 7).

Objective of the Study

The study using a newly proposed “Community Economic Development and Service
Support” framework aimed to explore the role of LGAs in promoting LED and service delivery in
Tanzanian communities.

Review of Literature
The Role of LGAs in Promoting LED and Service Delivery
LGAs have to play a significant role to achieve full LED of local communities in Tanzania.
The following empirical studies show what they have been doing so far and the issues they have
been facing toward achieving LED and service delivery outcomes.
Magigi (2013, 174) citing Kigoma and Coastal regions as a case study revealed that the
LED strategy was introduced in 2009 under partnership modalities between the governments of
Tanzania and Belgium under the Belgian Technical Cooperation (BTC). The latter provided

126 Local Administration Journal 14(2) • April - June 2021

technical and financial support while District Councils in the said regions are the project
implementers. The District Councils implementing the Project were selected due to high
incidence of poverty among the communities in Kigoma and Coast regions. These include
Kibondo, Kigoma Ujiji, and Kigoma District in the Kigoma region. For the Coastal region the
selected districts include Rufiji, Mafia, and Mkuranga. The strategy through capacity building and
awareness creation has made good progress. However, challenges remain, including the lack of
effective institutional arrangements for partnership in service delivery to the communities,
minimal competencies (both by the service providers and, consequently, the community) on the
processes for establishment and utilizing projects as facilities and opportunities for enterprise
that can create employment while managing production resources in a sustainable manner,
service provisions to communities that mostly are supply driven, uncoordinated with minimal
team work (even within the district council extension system), and stand alone, competitive, and
parallel action between the public and civil society organizations/private sector.
Yatta (2015, 19) found that, in Tanzania, 36 percent of the LED projects integrate an
economic governance dimension (capacity building of the local actors, the institutional
development of local governments, and the establishment of platforms for dialogue between
the various actors in LED including community members and central government). About one-
third of the LED projects focus on locality development which involves mainly infrastructural
development, natural resources management, housing and hygiene etc. Livelihoods
development was found in just under one-fourth of the projects (support to marginalised groups
and assisting communities in managing natural resources), and enterprise development was
addressed only by nine percent of the LED projects. Most of these projects are implemented by
and in collaboration with the LGAs. Considering the pace of LED in Tanzania, the revealed data
hold promise for achievement, though requiring greater effort by the LGAs, specifically in
supporting the marginalized groups to attain economic development and improve service
delivery to the local community.
The President’s Office of Regional Administration and Local Government (PORALG)
(2018, 103), in its best-practices handbook, cites several efforts by councils toward achieving LED.
One of the cited examples is that of the Missenyi District council initiative about producers’
empowerment, market linkage, and rural financing in Kilimilile and Mushasha wards to liberate
people economically. Before the implementation of this initiative, people of Kilimilile and
Mushasha wards experienced a cycle of poverty and underdevelopment due to lack of formal,
reliable, credible, and coordinated markets of various farm and handcraft products. The council
initiative aimed at achieving producers’ empowerment, market linkage, and rural financing
ultimately leading to poverty reduction and economic empowerment. To implement this, the
council, in collaboration with Market Infrastructure Value Addition and Rural Financing (MIVRAF)
and GEODATA Consultant Limited created farmers’ groups, conducted training, linked farmers

Role of Local Government Authorities 127

with micro-finance institutions, assisted farmers in preparation of simplified business plans and
marketing strategies, and organized groups for collective marketing. The implementation of this
initiative led to increased production and guaranteed food security, introduced reliable markets,
increased individual and group incomes, and linked farmers with financial institutions (PORALG,
2018, 103).
Another notable example by PORALG (2018, 114) is the Ukerewe District council local
economic initiative on cassava production and value addition. The initiative was implemented
after a decrease in production of cassava caused by infertility of soil, cassava diseases, poor
processing techniques, poor markets, and food insecurity. The council aimed at improving
livelihoods of farmers through income generation and increased food security at the household
level by supporting value chain and addressing major production, processing, and marketing
bottlenecks. The council, in collaboration with stakeholders, carried research to identify the best
cassava varieties, and organize farmers into groups for easy production, processing and
marketing. The initiative resulted in increased production and processing of quality cassava
products, expansion of cassava markets, increased incomes, and better food security.
Arguably, the above examples by PORALG (2018, 114) are a good indication of what is
possible toward achieving full LED. However, the challenge for the LGAs is to ensure the
continuation of technical economic assistance and to ensure that all of the communities are
reached by the assistance. This will ensure that there is equal balance in terms of economic
development to the local people.
Dijk (2019, 68), citing Mbulu and Karatu Districts in the Manyara region, revealed that, in
the process of ensuring economic development and service delivery, LGAs at the village level,
(leaving aside the finance/planning, social services, and security committees), there were other
committees for overseeing delivery of specific services, e.g., the primary/secondary education and
rural health care/drinking water committees. While the committees overseeing delivery of such
services were independent in discharging their duties, reporting on their functioning made up part
of the local government reporting structure. Furthermore, there were committees carrying out
specific economic functions including the one operating the mnaada (monthly market), cattle
dipping, irrigation system, and tree nursery. Committees sometimes organised joint input supply
as well, e.g., the mbegu bora (a programme to introduce improved agricultural practices and
inputs), and joint production of bees and honey. On matters of socio-economic infrastructure,
such as roads, agricultural storage facilities (go-downs), irrigation canals, cattle dipping, schools,
health dispensaries, and water supply, their quality depended largely on leaders’ vocational and
technical capacities and insight. It was revealed that capacity was significant for economic-
related committees. Capacity was also required in governance of social services, for example, in
parent-teacher associations, village water committees or water boards and rural health centre
boards.

128 Local Administration Journal 14(2) • April - June 2021

 Community Development Support Approaches
These are approaches that insist on funding and capacity building for communities in
order to increase economic empowerment, improve responsiveness to citizens’ demands and
priorities, accelerate service delivery, and improve the quality of life of poor, marginalized social
groups and households targeted by support to communities. They are community development
approaches which treat individuals and community groups as assets and partners in the
development process. Individuals and community groups work in partnership with LGAs to hasten
development (Dongier et al., 2003, 4). In the context of the ‘Improved Opportunities and
Obstacles to Development’ approach, community support (empowerment) entails the process of
strengthening capability of communities in development which enables them to identify
challenges and potential, and proactively unite and collectively tackle challenges as community
development initiatives through support and empowerment by the LGAs (PORALG, 2019, 4).
Community development support approaches are employed to meet complex
interrelated social and economic development needs at the local level, for which the functional
specialization of public sector organizations impedes an effective response. The LGAs linked to
particular disadvantaged groups such as ethnic minorities, residents of remote regions, and
women/youth often employ community support methods to promote economic development
(Binswanger et al., 2003, 16). Some have enhanced upstream links to sectoral systems by
promoting policies and procedures that explicitly acknowledge community roles. Others have
introduced LGAs into their management systems as intermediaries between community
organizations and central government agencies (PORALG, 2019, 3).
Proponents of community development advocate participation and capacity building,
particularly in social and economic capital. In this aspect, it is contended that LGAs need to
provide resources and technical assistance at the community level to enable people to organize
and address their needs. Community support approaches also promise to improve the
performance of local government through enabling communities to stimulate economic
development. Moreover, community support programs can build local capacity through
collective problem solving and collective action, supported by externally-provided incentives,
material inputs, and technical assistance with the aim of advancing the economic development
level and service delivery (World Bank, 2004).
The World Bank (2004), in a local development discussion paper, itemized the following
assumptions about these approaches. Firstly, through providing support, including financial
resources and training directly to communities, and community support approaches to empower
people by enhancing opportunities for choice and voice. The approaches provide purchasing
power to people without access to other resources that influence public decision making as well
as problem-solving capacity. Resource transfers to community organizations can also stimulate

Role of Local Government Authorities 129

participation in collective decision making, economic development and accountability processes
at the community level.
Secondly, community development support includes the supply of resources to
community-based organizations and voluntary associations in order to finance or co-finance
service provision. In order to link resource allocation to national policy priorities and to local
demand, the World Bank points to the need for rules for budgeting, targeting, and appraisal of
proposals for community investment. Considerable effort goes into detailing strategic options
and operational procedures for resource allocation and management (area-based planning and
allocation or first-come/first-served project financing, need-based or demand-based appraisal
criteria, level and type of community contributions, and financial reporting requirements).
Thirdly, community development support approaches typically employ dedicated
organizations (often social funds) and individuals to ensure compliance with procedures of
resource allocation. Moreover, community support approaches often involve communities in
producing or coproducing facilities and services. To participate effectively, communities may
need to improve their practical skills/knowledge, and their organizational capacity for solving the
problems that motivate community collective action, e.g., whether to maintain a water pump,
oversee a primary school, sustainably harvest fisheries and forest resources, or build a bridge on
a track linking a village to a feeder road. Enhancing these capacities is, thus, another feature of
direct community support approaches.
At this juncture, the study develops and proposes one of these community support
approaches called “Community Economic Development and Service Support Approach” to be
used as a basis of the study in exploring the role of LGAs in promoting LED and service delivery
at the local level. The approach suggests that the LGAs need to empower individuals and
community groups at the local level to achieve economic development through two categories
of support. One of the categories is named Economic Empowerment Factors (EEF) including
entrepreneurial skills (education), and loans for local investment and business infrastructure, to
promote economic development. The other category is Social Services Support (SSS) by which
local government ensures the provision and support of important social services including
electricity, water, and schools which can trigger economic development. The approach
demonstrates that, when these factors are ensured by LGAs, they will be in a position of
empowering community development -- economically and socially -- by ensuring employment,
and improving per capita income/GDP/living standards on one hand, and improving
schools/water supply/electricity on the other, as depicted in Figure 1.

130 Local Administration Journal 14(2) • April - June 2021

 LED
SSSF  Employment
Electricity
 Per Capita Income
Water
 GDP
Schools
 Living standard
Improved Service
LGAs
Delivery
EEF  Improved schools
Loans  Improved water
Local investment support facility
Business Infrastructures  Electricity
Entrepreneurial skills
assurance

Figure 1. Community Economic Development and Service Support Approach

Source: Authors (2021)

Methodology
Study Approach
The study uses the ‘Community Economic Development Support’ approach to explore
the role of the LGA. This is an approach proposed by Rugeiyamu, Shayo, Kashonda and Mohamed
to study the role of LGAs in promoting economic development and service delivery to the local
community. The approach belongs to the family of Community Development Support
Approaches which focuses on the funding, capacity building, investments and increased
empowerment to the local community, thereby fostering economic development (Clay & Jones,
2009).

Data Collection Methods

The study uses documentary review to explore the role of LGAs in promoting economic
development and service delivery to the local community. The documents include the Controller
and Auditor General Report for Fiscal Year 2018/2019, the Bank of Tanzania report (2018),
Newspapers’ of The Citizen, The Guardian, and Daily news. The Guidelines for Improved
Opportunities and Obstacles to Development (O & OD) (2019) were reviewed. The reason for using
this method was to ensure that the study access the information covering all of LGAs on the roles
being discussed.

Data Analysis
This study used a secondary data analysis approach. Secondary data analysis is analysis
of data that was collected by someone else for another primary purpose. Hakim (1982) defines

Role of Local Government Authorities 131

secondary analysis as “…any further analysis of an existing dataset which presents interpretations,
conclusions or knowledge additional to, or different from, those presented.” It begins with an
investigation to learn what is already known and what remains to be learned about a topic
through reviewing secondary sources and investigations that others have previously conducted
in the specified area of interest. Analysis was done by identifying the data set, evaluation of data
and presentation of data. The approach was useful in this study through replication, re-analysis
and re-interpretation of existing research and giving opportunities to establish new ideas on the
subject at hand (Johnston, 2014, 620).

Findings And Discussion

Economic Empowerment Factors (EEF)
These are factors expected to be supported by LGAs to empower individuals and
community groups to trigger economic development at the local level. They include loans, local
investment support, business infrastructure development, and entrepreneurial skills provision.
These factors were inspected to measure the role of LGAs in promoting economic development
and service delivery. The results are presented below.

Provision of Loans
The approach insists on the provision of loans by the LGAs to the community for
the aim of boosting the economic development at the community level. The review of LGA
documents revealed that LGAs are providing soft loans to community groups. For instance, on
the aspect of youth and women, LGAs in Tanzania under Women and Youth Development Fund
Guidelines and Directives issued by the government, each LGA is required to contribute ten
percent of its own revenue to a women & youth revolving fund for the aim of enabling women
and youth to access loans and engage in various economic activities (Mmari and Katera, 2018).
The review of LGA documents revealed that LGAs are trying to contribute ten
percent of their own revenue for the women & youth development fund. Table 1 (which has been
extracted from the Controller and Auditor General [CAG] report of LGAs for 2017/2018) shows
data for LGAs with outstanding contributions to women and youth from 2014/2015 to
2017/2018. In this aspect, it can be argued that this is a good indication of how LGAs play a role
in the economic development of community groups especially women and youth as they have
been able to use loans to engage in entrepreneurial activities to raise their income, living
standards and contributing to the GDP.

132 Local Administration Journal 14(2) • April - June 2021

Table 1. Outstanding Contributions to Women and Youth

Year Number of LGAs inspected Outstanding (10%) Amounts (TZS)

2017/2018 142 40,377,882,284
2016/2017 143 53,222,719,138
2015/2016 151 28,521,878,199
2014/2015 112 17,690,754,651
Source: CAG General report of LGAs for 2017/2018 (2019, 66)

However, the CAG General report of LGAs for 2017/2018 revealed some weaknesses
of LGAs on the aspect of contributing ten percent to the development of women and youth. After
assessing the implementation of women & youth development fund directives, it was found that
143 out of 185 LGAs did not contribute ten percent of their own revenue to the women & youth
development fund, in the amount of TZS 40, 377,882, 284. In this aspect, it can be argued that
the issue of LGAs not contributing ten percent of their own revenue to the women & youth
development fund, retards the efforts toward liberating community groups economically.
The LGA budget draws upon local revenue (contributing almost nine to ten percent
of the total budget), intergovernmental transfers (contributing 90 percent) and donor funding
(one percent). The ten percent to be contributed by LGAs is from the LGAs own revenue. Own-
source revenue includes money received from fees, fines and penalties, license fees, building
permits and other sources specified in their by-laws. For instance, during Fiscal Year 2017/2018,
185 LGAs managed to collect a total of TZS 566,729,291,189 from own source revenue against
the approved budget of TZS 677,965,549,714, resulting in an under-collection of TZS
111,236,258,525, equivalent to 16% of the total revenue estimated to be collected. Of the total
budget, 60 percent is allocated for development and 40 percent is allocated for expenditures.
Again, the intergovernmental transfers are allocated for expenditure and personal emoluments.
Also, the donor funding is used for development purposes. It is in the development part of the
budget that loans for women and youth, business infrastructure, and local investment dwell. It
should be born in mind that the budget funding is not uniform, and it varies from one LGA to
another and from year to year due to the differences in revenue collection. The business
infrastructure support is funded by both own sources and intergovernmental transfers. For water
supply, the responsibility has been shifted to RUWASA which cooperates with LGAs to ensure
service provision.
Also, the CAG General report of LGAs for 2017/2018 revealed that, in 90 LGAs, the
loans issued to women and youth were not recovered. Loans were not recovered due to ineffective
control, as LGAs were not following up on the returns of loans from beneficiaries. It was revealed
that, out of TZS 17,009,608,283 loaned, only TZS 6,965,154,627 were recovered, leaving a
balance of TZS 10,044,453,656, equivalent to 59 percent. Table 2 (as extracted from CAG General

Role of Local Government Authorities 133

Report of LGAs for 2017/2018) shows the increasing trend of unrecoverable women and youth
loans for four consecutive years.

Table 2. Trend of Unrecoverable Women and Youth Loans for Four Consecutive Years

Financial Year No. of Councils Inspected Unrecovered Amount (TZS) %

2017/2018 90 10,044,453,656 59
2016/2017 84 5,809,326,477 63
2015/2016 76 4,746,008,627 50
2014/2015 52 2,003,235,125 21
Source: CAG General report of LGAs for 2017/2018 (2019, pp. 67)

Debatably, the non- recovered loans may lead to the failure of the fund intentions
of liberating community groups economically. The study authors are of the view that the fund
has good intentions of improving the economic performance of community groups. However,
proper management of these funds from LGAs need to be ensured so that they can help
individuals at the community level to develop economically as they will be able to use the
provided funds to open new business.

Local Investment Support

The approach urges LGAs to support individuals and community groups on
investment. This includes creating a conducive environment for community members to invest,
for instance, in agriculture and small factories that can help to boost the local economy. It can
also involve providing support through grants or land to groups as a catalyst for economic
development. In assessing the implementation of this factor by the LGAs, the study revealed that
the government, through LGAs, has set aside a total of 4,014 hectares of land for youth to
practice commercial farming. For instance, in Mtwara region, 146 Ha have been allocated, 154
Ha in Lindi, 546 Ha in Kagera, 106 Ha in Mwanza, 176 Ha in Mara, 215 Ha in Geita, 344 Ha in
Simiyu, 59 Ha in Shinyanga, 53.5 Ha in Manyara, 60.3 Ha in Dodoma, 41.3 Ha in Singida, 88.8 Ha
in Kigoma, 557.9 Ha in Tabora, 613 Ha in Iringa, 40 Ha in Njombe, 590 Ha in Ruvuma, and 223.6
Ha in Morogoro. The land is allocated to groups of youth engaging in agriculture to enhance their
household livelihood (Ministry of Agriculture Livestock and Fisharies, 2016). The Deputy Minister
for Parliamentary Affairs, Labour, Employment, Youth and Persons with Disabilities in 2018 also
highlight this aspect on the two-day workshop on market linkages in Dodoma, organized by
Sokoine University Graduate Entrepreneurs Cooperative (SUGECO). The Deputy Minister revealed
that the government has been insisting that each municipality (LGA) have special places where
youth can engage in economic activities and be given land to cultivate cash crops (The Guardian,
2018, 9th May).

134 Local Administration Journal 14(2) • April - June 2021

 Arguably, the move of LGAs to set aside land for youth to engage in cultivation of
cash crops is essential for economic development of youth and the community at large as it raises
the living standards and income. This is due to the fact that youth groups will be able to cultivate
cash crops that, when sold, will help them to invest to other areas like factories, a move which
will boost their economic development and the country at large. However, the study views that
LGAs should ensure flexibility in the provision of land to youth so that youth will be motivated to
invest instead of complicating the process, which might deter youth from engaging in agriculture.

Business Infrastructure
The business infrastructure entails the basic facilities, structures, and services
including transportation, water, electricity, and markets. Infrastructure development presumably
triggers economic development. In this aspect, the approach contends that LGAs need to ensure
that such infrastructures are accessed by the local community for the aim of boosting their
economy. The study found that the LGAs have been playing a role in the construction of
infrastructure to hasten the economic development of people at the local level. Regarding
markets for instance, through own-source revenue, the Bagamoyo DC is constructing a modern
fish market costing TZS1,415,910,550, the Namtumbo DC constructed a modern commercial
market costing TZS1,600,793,853 (CAG General Report of LGAs for 2019/2020), and Dodoma City
Council constructed a modern market (Job Ndugai market) costing TZS14 billion financed by a
World Bank loan. For the Dodoma City aspect, the market has a place for petty traders so that it
can help boost the local economy (The Guardian, 2019 March, 23). Moreover, it was found that,
in some LGAs, there is ongoing construction of a modern commercial market such as at the
Namtumbo District Council and construction of Luganga market at Kilolo District Council (DC).
Concerning bus terminals, Dodoma City constructed a bus terminal at a cost of
TZS24 billion whereby, among other issues, it provides priority to small traders within the city to
engage in business to improve the local economy (The Guardian, 2020 May, 28). Dar es Salaam
City constructed a bus terminal at a cost of US$22 million which has provided several
opportunities to citizens including accommodating 3,000 buses per day, booking offices, banking,
pharmaceutical services, canteens, fast food, spare parts shops, a gym, vending machines and
ATMs. Also, there is an ongoing construction of a bus stand in Iringa DC among other
infrastructure projects (John, 2020). It can be conjectured that, when these and the like projects
are completed, these actions will boost the economic development of the local community as
individuals can establish businesses in the completed marketplaces and bus stands. This is
expected to boost the economic development of the local community. Again, these actions are
a good move toward service delivery because community members will gain access to bus stand
services and market services and household products.

Role of Local Government Authorities 135

 On the aspect of infrastructure for transportation, the study found that LGAs are in
a good position toward improving the transportation infrastructure. This is due to the government
establishment of the Tanzania Rural-Urban Road Agency (TARURA) to be used in addressing the
rural and urban road challenges. TARURA operates under the Ministry in the President’s Office of
Regional Administration and Local Government, and was established as announced in the
Government Gazette No. 211 of June 2017 to trigger road construction and renovations in the
LGAs (The Citizen, 23 April 2017).
In responding to the challenge of roads in the LGAs, TARURA safeguards rural roads.
For instance, The Citizen (2018, 7th February) reported that TARURA officials visited seven district
councils of the Singida region with the aim of mobilizing groups to safeguard rural roads, and
reminding executives of TARURA in the councils to maintain the road funds and focus on keeping
the constructed roads passable for as long as possible (The Citizen, 7 February 2018).
In connection to that, The Citizen (7 February 2018) reported TARURA allocated
TZS1.08 billion for infrastructure projects in Mbozi DC in the Songwe region. It was revealed that,
the money will include the construction of nine roads, ten bridges, and 18 culverts. In addition,
the TARURA manager in Mbozi District announced that roads to be upgraded include Tacri-
Ilembo (2km), Ukinga-CCM (1.5km), Ilasi-Ilolo Secondary (2km), Lutheran- Sifika (1.3km), Ilolo-
Ndolezi (2km), and Ihanda-Gharani (600km) (The Citizen, 7 February 2018).
Moreover, The Guardian (17April 2019) reported that, the Minister of State in the
President’s Office, Regional Administration and Local Government revealed that, the government
has earmarked TZS33 billion for TARURA projects across the country. The minister revealed that
this allocation was in response to complaints of members of parliament that roads in their
constituencies were not constructed as planned. TARURA is expected to construct more tarmac
roads as the agency’s budget has been increased to TZS496.5 billion from the previous level of
TZS463.5 billion.
Based on the above examples, it is demonstrated that, through TARURA, LGAs will
be able to boost road construction which will improve movement of goods and people. This will
enable entrepreneurs at the community level to start new businesses. Also, it will facilitate service
delivery as individuals will be able to use the roads to engage in service oriented businesses.
However, the effectiveness of TARURA depends on the ability of the government, LGAs, and
development partners to fund and support the construction of roads and the ethical oversight by
the agency personnel.

Entrepreneurial Skills
This approach calls upon LGAs to provide and ensure that people at the community
level are informed of the essential skills of entrepreneurship so that they can be innovative in
establishing new businesses to boost their economy. In this aspect, it can be demonstrated that

136 Local Administration Journal 14(2) • April - June 2021

despite the fact that, the LGAs have a role to play to ensure individuals and community groups
are equipped with such skills, they also depend on the non-governmental organizations (NGOs)
to assist in that role. The Guardian (2019, 25th March) reported that Sokoine University Graduate
Entrepreneurs Cooperative (SUGECO) teamed up with the UN Food and Agriculture Organization
(FAO) to provide training for 250 youth on agribusiness skills to entrepreneurs from Morogoro,
Singida, Coast and Dodoma regions. It was found that trainees were to be informed of theory and
practice on drip system installation, fertilizer application, soil preparation techniques, seed
sowing, value addition, and business acquisition skills. The training incorporated the
government’s Agriculture Strategy 2016-2020 and the broader Agriculture Sector Development
Program and country’s Vision 2025 (The Guardian, 25 March 2019).
The LGAs need to ensure that the training helps to create more entrepreneurs to
boost local economic development. However, the LGAs should not depend only on NGOs.
Instead, they need to promote self-initiative to ensure that skills are imparted to community
members. Collaboration can be a good thing toward achieving this factor as Missenyi District did
by collaborating with Market Infrastructure Value Addition and Rural Financing (MIVRAF) and
GEODATA Consultant Limited to provide training to citizens and ensure market linkages.

Social Service Support Factors (SSSF)

These are factors that are expected to be supported and provided by the LGAs to ensure
service delivery but with significant effects to economic development. They include electricity,
water, and schools. These factors were tested to assess the role of LGAs in promoting economic
development and service delivery, and the results are presented next.

Provision and Support of Electrical Supply

It is crucial for LGAs to support and ensure the supply of electricity to community
members and groups as part of electrical service delivery. Also, the supplied electricity can be
utilized to boost economic development of the community members by using the service to
engage in business activities that will improve the local economy including opening hair salons,
charging stations for mobile phones, welding shops, and furniture stores, among others. The
Rural Energy Agency (REA) was established under Act. No. 8 of 2005 under the Ministry of Energy
and Minerals to promote and facilitate access to modern energy services in the rural areas of
mainland Tanzania. REA activities are implemented under the Rural Energy Fund which provides
capital subsidies for the development of rural energy projects. REA is supposed to work closely
with LGAs to ensure the sufficiency of its activities. The central government, through the parent
ministry, supports LGAs in ensuring the electrical supply to rural areas (Rural Energy Agency
Report, 2015, 5).

Role of Local Government Authorities 137

 REA has been successful by ensuring the supply of electricity to the rural areas. For
instance, in its report for the Fiscal Year ending in June 2015, the Turnkey Phase II Project covered
all regions of Mainland Tanzania. The Project supported the supply and installation of six step-
up substations (11/33kV) in isolated thermal power stations of Kasulu, Kibondo, Kigoma, Mbinga,
Ngara and Tunduru, medium- and low-voltage lines, distribution transformers, and connections
for customers. Further, the Project covered the electrification of 13 un-electrified District
Headquarters of Buhigwe, Busega, Chemba, Itilima, Kakonko, Kalambo, Kyerwa, Mkalama, Mlele,
Momba, Nyasa, Nanyumbu and Uvinza. As of June, 2015 the overall project completion stood at
66% (Rural Energy Agency, 2015, 8).
Again, The Citizen (2017, 3rd July) reported that a total of 3,753,615 households in
mainland Tanzania are electrified with any form of electricity out of 11,454,818. This is equivalent
to one-third of all households of mainland Tanzania, and represents an increase from 18% of all
households connected to electricity in 2011/2012. REA reported that urban areas access to
electricity was 65.3% compared to 16.3% in rural areas.
The electrical supply has been contributing to the GDP of the country. For instance,
the Bank of Tanzania (BOT) in its annual report for Fiscal Year 2017/2018, reported GDP growth
of 7.1 percent for 2017 compared to 7.0 percent in 2016. One of the factors contributing to GDP
growth was power supply. This shows that improvements in the power supply in the rural areas
through REA probably significantly contributed to the Tanzania GDP (Bank of Tanzania, 2018, 4).
It can be seen that, as more people in the rural areas have access to electricity, they
are able to use electricity to generate income by opening hair salons, welding shops, and mobile
phone charging stations, among many others. This is very significant for economic development
since electricity service delivery can significantly improve living standards of local communities.
Tanzania continues to expand electrification of the country. However, REA also
requires support from LGAs, especially in identifying areas to be supplied with electric power,
promote electrification awareness, and ensuring that the electricity facilities are maintained
properly. This is done by involving LGA leaders to identify needs, locations, and priorities.

Water Supply Support

This factor calls upon LGAs to ensure the supply of water at the community level
to enable individuals and community groups to access water to be used as a service and for
economic development. Some individuals can generate income by helping others to access water
resources. Also, an accessible water supply can be used by community groups for various
economic activities such as brick-making and irrigation activities. Water is crucial also for health,
and facilitates meaningful labor participation by women and youth who otherwise have to look
for and carry water.

138 Local Administration Journal 14(2) • April - June 2021

 The LGAs support improving the supply of water at the community level as a means
to stimulate the local economy. The CAG General report of LGAs for Fiscal Year 2017/2018
reported ongoing water projects including water construction project in Iringa DC and water
projects in Mtwara DC. The study anticipates that, when these new water projects are
implemented effectively, LGAs will be in a good position to play a bigger role in economic
development. People will be able to use water for economic development such as engaging in
irrigation or brick-making, among other economic uses. Again, the LGAs are partnering with the
central government funding through the Ministry of Water and Irrigation. The World Bank has
provided US$252 million for the Water Support Project (2007-2015) which benefits 14,461,715
people in both rural and urban areas of Tanzania. In that project, 5,908 water points were
developed, 44,270 new piped household water connections were created, 4,330 water user
permits and 24 discharge permits were granted, 1,680 school sanitation facilities were newly
constructed or upgraded, and 16,183 villages signed a declaration to improve household
sanitation. The project was an effort to reduce poverty, improve water quality, increase income,
and promote access to sanitation (World Bank, 2018).
Moreover, the government has established the Rural Water Supply and Sanitation
Agency (RUWASA) responsible for construction of dams and deep water wells in the villages. The
agency was established under Water Supply and Sanitation Act No.5 of 2019. It is expected that
it will address water problems in the rural areas. The agency will help to extend water access in
rural areas which will help people at the community level to use water for business activities. The
study contends that the agency needs to work closely with LGAs in order to identify the water
resource needs and ensure security of the water infrastructures (The Guardian, 2019, 2nd July). If
the agency works collaboratively with LGAs, it will be able to help villages to create irrigation
canals as done in Mbulu and Karatu Districts as revealed by Dijk (2019, 68). This will improve the
agricultural system and water supply and, hence, boost locally-generated income, raise living
standards, and contribute to the GDP of the country. Up to December, 2019, RUWASA had
completed 85 projects, or an average of five projects a month. The water supply coverage
improved from 65 percent in 2018 to 70 percent in 2019. Such benefits have increased water
access to Tanzanian communities especially in rural areas (RUWASA, 2019). RUWASA
collaborates with LGAs in identifying communities with water needs and challenges, and areas
where water facilities will be placed (Kwezi, 2021).

Schools Service
Schools are one of the education facilities where people can learn and improve skills
that can help to boost the economy through employment. Since 2008, the administration of
primary and secondary education was transferred to the formerly-named Prime Minister Office
Regional Administration and Local Government (currently re-named as Ministry in the President’s

Role of Local Government Authorities 139

Office Regional Administration and Local Government) (URT, 2011). LGAs assume the role of
administration of education in their localities by ensuring the availability of schools, teachers, and
other relevant facilities to enable Tanzanians to access education more easily. They also
collaborate with the Ministry of Education to ensure smooth running of schools. The LGAs
through the President’s Office Regional Administration and Local Government ensure the supply
of teachers and school facilities, and the Ministry of Education ensures that learning tools are
provided and examination administration is done.
So far, the progress of school construction in the LGAs is impressive whereby almost
each ward has one primary and one secondary school. The LGAs have been promoting easier
access to primary and secondary education. The Tanzania’s Standard Newspapers (2019, 30th
August) reported that the Serengeti District Council had opened nine new public secondary
schools with the aim of easing learning and reducing congestion of students in classes in the
schools. It was reported that the District Council has been spending part of its revenue to invest
on the construction of secondary school’s facilities. The newly-constructed schools in this district
include Makundusi, Robanda, Mara Somacho, Maji Moto, Sedeko, and Kyambahi. Citing the
Serengeti District Council, LGAs are showing efforts toward the construction and maintenance of
the schools so that students can have a chance to learn and improve their knowledge in a
sufficient environment. Again, this has increased the employment opportunities and income to
teachers and student enrolment. For instance, total enrolment in Form 1-6 increased by 1.8%,
from 1,774,383 pupils in 2015 to 1,806,955 pupils in 2016, and 1,908,857 in 2017. The number
of teachers in secondary schools increased from 73,407 in 2013 to 110,163 in 2017 (PORALG,
2017).
In this connection, through the construction of schools, the enrolment and
performance of students have been increasing. This is attributed to the improvement of the
learning facilities, and specifically schools. For example, at least 110,505 candidates who sat for
the Form 4 examination in 2018 scored Division 1 to 3, and 108,642 were selected for Form 5
education in public schools. Those data were cited by the Minister of State in President’s Office,
Regional Administration and Local Government. The Minister revealed that a total of 1,676
students were selected for the second batch, yielding a total of 110,318 of students who have
secured slots in public schools, reported as a record of 99.8 per cent of all passed candidates
(Daily News, 2019, 29th August).

The results above reflect the great efforts of LGAs toward liberating individuals
economically and promoting service delivery. This is because access to school gives youth the
ability to be liberated and become more innovative. Education facilitates self–employment and,
hence, boosts economic development. Nevertheless, LGAs have to maintain their efforts to
ensure that other facilities are provided in schools including textbooks, teachers, and laboratories.

140 Local Administration Journal 14(2) • April - June 2021

Conclusions
It is concluded that the role of LGAs in promoting LED and service delivery include the
following: Providing loans, investment support, electrical supply, school services, and business
infrastructure. All of these inputs contribute to the improvement of per capita income of the
country, gainful employment, and elevated living standards. For instance, in 2019, per capita
income was estimated to be US$986 which is equivalent to eight percent of the global average,
and is expected to reach US$930 by the end of 2020 and US$965 in 2021. Tanzania’s GDP grew
5.4 percent in 2018 and 5.8 percent in 2019. Despite the promising progress, LGAs have a long
way to go in achieving the full economic development and service delivery to the local
community. This is because many LGAs have not yet reached their full potential. The issues such
as un-recoverable loans, business infrastructure under-development, and lack of
entrepreneurship education need to be addressed clearly to overcome the prevailing challenges
in order for LGAs to improve their role toward economic development and service delivery.
It is recommended that LGAs increase their role in providing education on
entrepreneurship to community members so that the issue of non-performing loans can be
solved, and so that the recovered funds can be made available to help others. LGAs should
continue to create a supportive environment for investment for community members. Also, socio-
economic development projects need to be accelerated so that they can be used for economic
development and service delivery for community members. Finally, LGAs and scholars should
consider using the Community Economic and Service Support Approach to assess the LGA role
in LED.

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