(3 Minutes Read)
The European Union (EU) has announced a payment of € 33.12 million (TZS 97 billion) as a grant to support the Government of Tanzania’s ongoing sectoral reforms. This disbursement is aimed at fostering socio-economic development and enhancing the resilience of Tanzanian citizens.
The funding is allocated across five key sectors slated below, each of which is crucial for the country’s growth and stability.
Blue Economy:
Developing a climate-resilient blue economy along Tanzania’s coastal regions, including Zanzibar and the Indian Ocean. The funds will support governance reforms, and capacity building, and enhance inter-ministerial coordination. The Ministry of Finance and the Vice President’s Office for Environment will lead this effort.
Green and Smart Cities:
Focused on promoting sustainable urban development in Mwanza, Tanga, and Pemba, this support aims to improve living standards by enhancing environmental sustainability, creating economic opportunities, and improving public services, especially for women and youth.
Gender:
Dedicated to advancing gender equality and empowering women and girls, the funding will seek to address gender-based violence, promote economic empowerment, and support women’s participation in leadership and decision-making processes.
Digital4Tanzania:
Aiming to leverage digitalisation for economic growth and improved public services, it includes expanding the Tanzania Government Communications Network and enhancing cybersecurity measures, in line with the Personal Data Protection Act.
Finance for Growth:
It has a focus on improving fiscal governance and access to finance.It will enhance domestic resource mobilisation, support financial market infrastructure, and promote public-private dialogue, particularly benefiting Micro, Small and Medium Enterprises, notably in favour of women and youth.
These funds are not just an investment in the present but a commitment to the country’s future,” said Christine Grau, EU Ambassador to Tanzania. By focusing on areas such as the Blue Economy, urban development, gender equality, digitalisation, and financial growth, the EU is helping to build a more resilient and prosperous Tanzania. The EU’s budget support is considered as an impactful financing tool as it allows for direct support to national policy reforms, making use of the country’s financial systems. This approach reduces transaction costs for the government and increases mutual accountability and transparency.
The main objective is to contribute to a climate-resilient Blue Economy in the Tanzanian coastal area, Zanzibar and the Indian Ocean (within Tanzania Exclusive Economic Zone). Through budget support, the grant will contribute to transformative governance systems and policy reforms in specific public sectors, including capacity building for inter-ministerial coordination and governance. Budget support and technical assistance will support key institutions to implement Tanzania’s ambitious goals in the Blue Economy.
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This financial assistance, called – budget support-, is part of the EU’s ongoing partnership with Tanzania, aligning with the EU’s Global Gateway strategy, which aims to bolster infrastructure and development through public and private sector investments.
