October 1, 2024

Domestic resource mobilisation (DRM) is essential in allowing countries to own and flexibly chart policies that address their specific
development challenges while mitigating the risks of debt distress.
There have been several DRM interventions in all EAC countries. In Tanzania, IDA 20 has contributed to the four-year US$278
million Tanzania Cities Transforming Infrastructure and Competitiveness Project (TACTIC) that began in 2024, and the five-year
US$50 million P-for-R Public Finance Management and Procurement Systems for Service Delivery Program (PFMPS). In Kenya, IDA
18 includes the US$750 million Kenya Inclusive Growth and Fiscal Management Development Policy Financing (DPF) in 2019. In
Uganda, fiscal challenges have historically been underprioritized by Multilateral Development Banks (MDBs) with many opting to
focus on public expenditure management and social service delivery. For example, notwithstanding the current World Bank’s
portfolio of IDA-financed credits and grants of $4.86 billion in commitments, none of the 19 supported national projects exclusively
target DRM in Uganda. In Rwanda, financial support includes provision of a grant of over US$2 million to the RRA to streamline
processes for domestic tax administration and raising taxpayer awareness of RRA services and procedures, increasing the fiscal
space, and advancing reforms under the Resilience and Sustainability Facility (RSF).

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