The priority areas for funding by Tanzania Forest Fund are those which aim at conserving and managing the forests sustainably. Based on the discussions with respondents as well as review of various documentations especially the National Forest Policy, issues that need to be addressed include forest land management so as to ensure sustainable supply of products and services by maintaining sufficient forest area under effective management; enhancing forest based industry and products; ensuring ecosystem conservation and management as well as enhancing the national capacity to manage and develop the forest sector in collaboration with other stakeholders.

The following three categories of issues are considered as priority areas under the Tanzania Forest Fund arrangements:

(i) Forest resource conservation and management aimed at ensuring proper forest land management as well as ecosystem conservation and management (ii) Improvement of community livelihood which focuses on promoting community conservation initiatives aimed at improving benefit sharing and livelihood of community adjacent to forest resource base and (iii) Applied and adaptive research on management of forest resources.

The funds to be distributed to the aforesaid priority areas will base on the proportion of 30%, 60% and 10% respectively.

Types of Grants
Generally, Tanzania Forest Fund provides three types of grants to realize its mandates. These categories are differentiated by the total amount, eligible beneficiaries and duration of implementation.

Small Grants (Amounts not exceeding TZS 5 million)
Tanzania Forest Fund provides small grants to individuals and groups to support small-scale interventions on the priority areas. However, individuals need to have at least two grantors. Proposals for small grants will be reviewed internally and recommendation submitted to the Administrative Secretary for awarding decision. The funding for activities under this grant category may be requested for renewal if doing so could have added value to the attainment of the results, otherwise it is done only once. Duration for this kind of projects is up to one year. This type of grant will have a proportion of 20 % of the total available grant funds.

Medium Grants (amounts exceeding TZS 5 million and up to TZS 20 million)
Medium grants are provided to support interventions within the three priority areas. Individuals are not eligible for this type of grants. Duration will vary depending on the nature of activities but in most cases are expected to be completed within one year. Proposals are subject to external technical review. Approval for funding is done by the Board of Trustees. Under normal circumstances Medium grants will be allocated 50 % of the available grant funds.

Large Grants (amounts exceeding TZS 20 million and up to TZS 50 million)
Large grants are provided to support projects that need more resources and time in order to realize the impact and its sustainability. Projects under this type of grants in most cases are multi-year projects. Individuals are not eligible to this type of grants. Project Proposals will be subjected to review by external technical team and funding approval will be the responsibility of the Board of Trustees. This type of grant will have a proportion of 30 % of the total available grant funds.

However it should be kept in mind that the Fund has the right to reallocate the funds to other priority areas and grant types if available funds are not utilized accordingly. This is to enable optimal utilization of the set fund so as to realize the objectives of the Fund.

Types of assistance to be availed to beneficiaries
Tanzania Forest Fund will provide three types of assistance to grantees. These are:
(i) Monetary assistance – Grantees will be assisted with funds to support implementation of approved intervention. Disbursement will be as detailed in section 5;
(ii) Material assistance - Grantees may be assisted with materials including facilities and equipment. Tanzania Forest Fund will request the grantees to submit quotations from at least three service providers. Using the procurement procedures, service provider will be selected and hence provide the requested materials to the Grantee;
(iii)Technical assistance – Tanzania Forest Fund could provide technical assistance to grantees by hiring professionals to offer the requested services.

Eligible Activities for Funding
Based on the priority areas, the following activities (although the list is not exhaustive) are considered eligible for funding from Tanzania Forest Fund:

Forest resource conservation and management

• Sustainable management and utilization of forest resources
• Boundary demarcation and maintenance
• Participatory forest management
• Promotion of best practices on management of forest resources

Improvement of community livelihood projects

• Marketing of forest products
•  Promotion of non-wood forest products
• Sustainable utilization of forest resources
• Forestry related interventions
•  Beekeeping related activities
• Education on management of forest resources

Applied and Adaptive research on forest management

• Feasibility and baseline studies
•  Innovations on management of forest resources
• Monitoring and evaluation of forest resource management practices as well as technologies

Eligible Beneficiaries
Tanzania Forest Fund will provide assistance to various stakeholders who are committed to sustainable management of forest resources in the country. In addition, innovative ideas and approaches that can contribute to long-term sustainability of forest resources including improving livelihoods of communities adjacent to forest reserves, protected areas and forest plantations. Upon submission of a responsive project proposal, the following are eligible beneficiaries:

Individuals
Individuals undertaking interventions that can lead to sustainable management of forest resources as well as environmental conservation are eligible beneficiaries. However, availability of two respected grantors shall be a per-request for individuals to access the funds from Tanzania Forest Fund.

Local community groups, registered Civil Society Organizations and private sectors
Local community groups recognized by the grassroots government such as village/mtaa government were suggested as eligible beneficiaries. Other eligible organizations under this category include Non-Governmental Organizations, Community Based Organizations, Faith Based Organizations and private sectors which are working with local community in the target areas and have legal registration.

Academic Institutions
This includes all academic institutions dealing with issues related to management of forest resources.

Non-academic and Research Organizations
This group include registered professional organizations, research organizations and other related organizations in the country that their activities have merits on conservation and management of forest resources.

Central and Local Government Institutions
Central Government Ministries, Departments and Agencies as well as Local Government Authorities may submit proposals to complement or initiate interventions for conservation and management of forest resources