Tanzania to Enhance Domestic Tax Revenues to Make Good Loss in Foreign Aid

( 3 Minutes Read)

 Vaccination campaigns for polio eradication and HIV/AIDS treatment through the President’s Emergency Plan for AIDS Relief (PEPFAR) have been suspended, jeopardizing millions of lives.

The Public-Private Partnership Centre (PPPC) has called for Tanzania to expand public-private partnerships (PPPs) and enhance domestic tax revenues in response to a potential freeze in US foreign aid.

Following his inauguration on January 20, 2025, US President Donald Trump’s administration announced a halt to foreign aid, primarily administered through the US Agency for International Development (USAID). The freeze is part of a broader effort to restructure US foreign policy and “use taxpayer dollars wisely to advance American interests.” This decision has far-reaching implications across Africa, including Tanzania, particularly in vital sectors like health and education.

Vaccination campaigns for polio eradication and HIV/AIDS treatment through the President’s Emergency Plan for AIDS Relief (PEPFAR) have been suspended, jeopardising millions of lives. In a recent live televised event, the PPPC executive director, Mr David Kafulila, suggested that the negative effects of the US aid freeze could be mitigated through strengthened PPPs and improved domestic revenue collection.

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Kafulila emphasised that the US, which controls a quarter of the world’s economy, holds significant sway over global financial institutions such as the World Bank (WB) and the International Monetary Fund (IMF). Thus, shifts in US economic policy can have profound global repercussions.