The Tanzania Productive Social Safety Net III (PSSN III)

What is the Tanzania Productive Social Safety Net III (PSSN III) Project?

The Productive Social Safety Net III (PSSN III) Project, financed with a $250 million credit from the International Development Association* (IDA), is designed to support Tanzania's poorest households. Its primary goals are to increase access to social protection and better jobs for targeted poor households while building a sustainable and adaptive social protection system that can respond to shocks like climate events.

The project will be implemented by the Tanzania Social Action Fund (TASAF), which has extensive experience from previous phases of the program.

Who will benefit from this financing, and what support will they receive?

PSSN III is expected to reach about 2.2 million extremely poor and vulnerable people in approximately 100 of the poorest councils across Mainland and Zanzibar. The support will be delivered through two main channels:

• Productive cash transfers, which combine regular financial support with measures that help families save, invest in their children's health and education, and build skills for self-employment. This will include livelihood support, such as business grants and entrepreneurship training for 10,000 youth.
• Climate-smart public works, providing temporary jobs that boost incomes and build resilient community assets like small-scale water harvesting and rangeland management systems.

What were the results of the previous PSSN phase?

The previous phase, PSSN II, delivered national-scale impact, reaching 5.2 million people in 1.36 million households at its peak. Key achievements include:

• Poverty reduction: The program was associated with a 10% reduction in poverty among beneficiaries, and a nearly 20% increase in monthly consumption.
• Human capital gains: It led to a 6-percentage-point increase in school enrollment, improved food security and increased the use of health services.
• Economic inclusion: Households that received grants in addition to cash transfers earned approximately 20% more than those with cash or public works alone.
• Effective targeting: About 71% of all benefits successfully reached the poorest 20% of the population.

How does the new project align with policies and long-term development vision?

PSSN III is closely aligned with Tanzania's national strategies. It supports the National Social Protection Policy (2023), which aims to reduce poverty and build resilience and Tanzania's Vision 2050, which seeks to provide universal access to social protection. The project is also a core component of the World Bank Group's Country Partnership Framework for Tanzania (FY25-FY29).

Are there other development partners contributing to PSSN III?

The program builds on collaboration with national institutions and development partners supporting social protection, notably the Republic of Ireland and the United Kingdom's Foreign, Commonwealth and Development Office (FCDO).

How is the integrity of the financing ensured?

The World Bank has a fiduciary duty to ensure that funds are used only for their intended purposes. This project includes multiple layers to ensure fiduciary integrity:

• Results-based financing: The project links disbursements to measurable results through performance-based conditions which are independently verified.
• Strict policies and guidelines: The project is governed by the Bank's Anti-Corruption Guidelines, procurement regulations, and financial management requirements. All expenditures are subject to audit.
• Monitoring and supervision: Implementation is closely monitored through regular reporting, on-site supervision, and independent audits.
• Accountability: The Bank's Integrity Vice Presidency (INT) independently investigates any credible allegations of fraud or corruption. If wrongdoing is found, the Bank can suspend disbursements, cancel funds, and debar responsible firms or individuals.

How can citizens give feedback or raise concerns?

A strengthened Grievance Redress Mechanism (GRM) allows beneficiaries and community members to provide feedback and report concerns.

• Tanzania GRM: Toll-free at 0800 110057 and 0800 110058, or through a paid call at 0739-000038
• World Bank Grievance Redress Service: www.worldbank.org/GRS
• World Bank Accountability Mechanism: www.accountability.worldbank.org
• World Bank Tanzania Hotline (for project-related issues and complaints): [email protected] or call +255 22 216 3777

Who can be contacted for more information?

• Government of Tanzania/TASAF: [email protected]
• World Bank Tanzania Country Office (general inquiries): +255-22-216-3200