Danida reaffirms long-term partnership in Tanzania’s development
What you need to know:
- Denmark’s partnership with Tanzania has flourished over more than six decades, positioning Denmark as one of Tanzania’s most significant economic allies
Dar es Salaam. The Danish International Development Agency (Danida) reaffirmed its commitment to Tanzania, announcing that it will maintain its embassy in the country.
This comes after Denmark initially stated in 2021 that the Danish mission would close by 2024.
However, in November 2023, it was confirmed that Denmark would continue its diplomatic and developmental engagement with Tanzania.
Deputy Head of mission and head of cooperation for Danida, Ms Lise Abildgaard Sørensen, explained that the decision to remain in Tanzania was driven by a desire to be an equal partner in fostering shared interests such as trade, investment, human security, and social cohesion.
She emphasised the need for a shift in Denmark’s approach to development, moving away from traditional donor-recipient relationships.
“It was the only right decision,” Ms Sørensen remarked during a ceremony in Dar es Salaam to mark the 20th anniversary of the Financial Sector Deepening Trust (FSDT) over the weekend.
Ms Sørensen commended FSDT for its innovative programs, including mobile banking and microinsurance, and noted the Trust’s role in helping over 38 million Tanzanians obtain national identification.
“The groundwork has been done,” she said, referencing the strides made in market infrastructure, access to finance, and improved policies that are essential for economic development.
Denmark’s relationship with Tanzania has spanned over 60 years, with the country emerging as a key economic partner.
Sørensen revealed that Denmark is Tanzania’s largest investor, a decision driven by the country’s stable political environment and positive economic outlook.
The event saw significant praise for FSDT’s transformative role in Tanzania’s financial sector.
Deputy Governor of the Bank of Tanzania, Sauda Msemo highlighted FSDT’s contributions in shaping policies and enabling financial services that align with the needs of Tanzanians.
She also acknowledged FSDT’s impact on market-oriented solutions and its role in enhancing financial inclusion for underserved communities.
FSDT’s 20th-anniversary celebration underscored its role in supporting financial inclusion and fostering an inclusive financial ecosystem in Tanzania.
With Denmark’s continued partnership, FSDT is poised to further its mission of transforming the country’s financial landscape for the benefit of all Tanzanians.
The event also acknowledged the legacy of Lawrence Mafuru, whose vision for financial inclusion continues to guide FSDT’s work.
CEO of FSDT, Eric Massinda, praised Mafuru’s contributions, while Dr Charles Mwamwaja from the Ministry of Finance highlighted FSDT’s role in advancing policies like the National Financial Inclusion Framework and SME Financing Strategy.
As Tanzania’s economic and political influence grows, the partnership between Denmark and FSDT remains crucial in driving sustainable development and financial inclusion across the country.
