This study investigates the funding mechanisms that support Local Economic Development (LED) initiatives across seven regions in Tanzania: Kilimanjaro, Dar es Salaam, Mwanza, Kigoma, Iringa, Dodoma, and Mtwara. LED is recognized as a strategic approach to enhancing local economic capacities through decentralized governance, enabling local authorities to tailor initiatives to their communities’ specific needs. However, the success of LED largely hinges on effective funding systems—how financial resources are mobilized, allocated, and managed. This study explores the main sources of funding, the effectiveness of allocation mechanisms, and the financial management practices that influence the outcomes of LED projects.
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