Tanzania benefits from political stability, and has been experiencing solid economic growth for the last 15 years. However, the country has still low income and human development indicators and 28% of Tanzanians continue to live in poverty. The EU supports Tanzania through development cooperation to address key challenges such as food and nutrition insecurity, low agriculture productivity, lack of energy access, and a range of governance issues.
Tanzania is a significant beneficiary of EU development cooperation, mainly financed by the European Development Fund (EDF).
The EDF cycle of 2014-2020 amounts to €626 million. It promotes pro-poor and sustainable growth, and focuses on good governance, in particular in public finance and domestic accountability, as well as increasing energy access and security, and sustainable agriculture to improve food and nutrition security and better management of natural resources and ecosystems. It also finances actions to support civil society, business and employment.
Under the previous cycle of funding from 2009-2013, the EU dedicated €606 million to programmes in Tanzania, with a main focus on infrastructure, communications and transport, trade promotion and regional integration, in order to strengthen competition within the Tanzanian economy and to better exploit opportunities from regional and international trade liberalisation. Additionally, macroeconomic support has been provided to implement the national development strategy.
The Millenium Development Goal (MDG) contract, with a budget of €305 million, contributed alongside budget support from other development partners to double public spending on priority sectors for poverty reduction. These included agriculture, education, energy, health, roads and water. Among other outcomes, these joint efforts resulted in the primary school enrolment rate doubling over the past decade, with 90% of children now attending primary school, the number of nurses and midwives working in districts increasing considerably, and other improvements in basic service delivery.
Additional support to Tanzania is channelled through other EU initiatives, in particular thematic funding in the areas of climate change, the environment, food security, health, migration and human rights, and funds for the East African region and the African continent.