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EU addresses fiscal governance and change in relations with Africa
What you need to know:
- European Union Managing Director for Africa, Rita Laranjinha, discusses the EU’s role in improving fiscal governance in Tanzania and highlights how cooperation with Africa has evolved beyond the traditional donor-recipient dynamic. The Interview was hosted by The Citizen Managing Editor, Mpoki Thomson
How is the EU assisting Tanzania in improving fiscal governance, ensuring rules and regulations positively impact livelihoods?
Public finance management is absolutely essential and a key part of our agreement, as it ensures the proper and effective use of resources. Through our Finance for Growth program, we focus on domestic revenue mobilization and strengthening public finance management systems. We provide training and support to ensure progress and the consolidation of robust fiscal systems.
Why does the EU continue supporting African governments despite limited progress in achieving economic independence? Is this approach helping or perpetuating the problem?
When the EU provides budget support, we consider a range of indicators and ensure they are adhered to. While challenges remain, we have moved away from the traditional donor-recipient relationship to a partnership-based approach. This shift focuses on common interests, identifying areas where we can work effectively together, and fostering greater ownership by our partners.
Our approach is no longer solely aid-based; we actively involve the private sector, which introduces economic demands and interests. This is why the European Investment Bank (EIB) plays a significant role in Tanzania. Tanzania is among the sub-Saharan African countries with the highest level of investment from the EIB. We are now advancing beyond day-to-day cooperation to emphasize economic rationale, promoting sustainable growth and job creation through better investment.
Tanzania attracts the highest level of investment from the European Investment Bank in sub-Sahara Africa. Does it also mean that it has the highest debt?
The European Investment Bank (EIB) is not a commercial bank; it provides grants and loans with more favorable terms than those offered by commercial banks. However, it is crucial for the recipient country to consider its debt capacity when accepting these funds.
This is an important discussion today, especially as countries face varying levels of debt. The challenge lies in how they manage and cope with these debt levels while ensuring they are able to sustain development and fulfill their financial obligations without compromising long-term growth.
As you monitor elections, what is your assessment of the recent civic polls in Tanzania, which were partially contested by the opposition in the lead-up to the 2025 general elections?
The EU does not monitor elections. Our relationship with Tanzania is based on a mutually accepted agreement, alongside other African and Pacific partners, where democracy and related principles hold an important place.
Together with partner countries, we agreed that our relationships are founded on a shared commitment to respecting the rule of law, democratic principles, and values enshrined in the UN Charter.
This is not about monitoring; however, it is part of the EU's core values to uphold the rule of law and human rights, as we believe these are essential for societal progress, stability, and security for citizens.
We had an engaging conversation regarding the current political moment as Tanzania prepares for the General Elections next year. Globally, electoral processes are increasingly complex and challenging, and Europe is no exception. This discussion between partners allowed us to express concerns and hear the government’s commitments toward ensuring credible, transparent elections.
We also discussed ways to address reported irregularities, which have been openly debated within Tanzanian society. The government expressed its interest in inviting observers and promoting a credible electoral process. The EU will remain engaged with all parties involved in this electoral process.
What is the EU’s take about the status of human rights and the protection of freedom and safety of citizens in Tanzania and Africa?
Human rights are a priority for the EU, and we are deeply concerned about their status globally, including in Tanzania and Africa. These challenges are not unique to any one region—they also exist within our own societies.
It’s important not to view human rights as a static picture or a movie but rather as an ongoing process that reflects how societies evolve and how governments embrace respect for their citizens.
For this reason, human rights are always part of the conversations we have with our partners in Tanzania. When engaging with any country, we ensure that our discussions are not limited to the government alone but also include civil society, representatives of political parties, and other key stakeholders.
What concerns do members of the civil society often raise when you meet them?
They raise concerns regarding issues such as freedom of expression and the importance of active participation in society.
We firmly believe that civil society, political parties, and all institutions advocating for human rights have vital roles to play in promoting and protecting these fundamental freedoms. Their active engagement is essential for fostering inclusive, democratic, and resilient societies.
What is required to eliminate violence against women and children and how is the EU contributing to these efforts?
I am optimistic about the initiatives and progress Tanzania is making in addressing gender-based violence (GBV) through various programs. This commitment gives me confidence that the message of respecting human rights is being effectively conveyed.
It is crucial, however, that we focus not only on promoting the rights of girls but also on educating boys. By doing so, we can foster a society where equality and respect for all are upheld.
Is the goal of ending GBV by 2030 achievable?
Unfortunately, the elimination of GBV remains an unattainable goal worldwide. It is essential to put everything into perspective and address GBV not just within individual countries but from a global standpoint.
How is the EU working with Zanzibar to boost the isle’s economic growth strategies?
I have observed significant commitment from the Government of National Unity in addressing key issues related to the island's economic development, such as the blue economy and modern, sustainable agriculture practices.
During our meetings with the business community in Zanzibar, they raised critical points about the business environment, including the need for predictable tax reforms. Additionally, concerns were raised about achieving sustainable growth while minimizing environmental impact.
We saw a high level of confidence from European investors, which is why the EU is organizing a business forum in Zanzibar in February 2025. The event will aim to bring European investors to the island to better understand its immense potential and explore opportunities for collaboration and investment.
What issues should the Tanzanian government address to boost investor confidence?
Issues related to the business climate are crucial everywhere. The more effectively these issues are addressed and the greater the predictability, especially in the justice system, the more investors feel they are operating in a secure environment where rules are clear and their investments are safeguarded. These are the key areas that the Tanzanian government has been actively working on to ensure a more conducive environment for investment.
How is the EU supporting Tanzania in leveraging digitalisation to transform lives, streamline business operations, and enhance trade?
Digital transition is one of the EU's major objectives. Through the Global Gateway initiative, we aim to foster closer ties and enhance cooperation. In Tanzania, we are working together to create a framework that supports the development of an adequate digital landscape, enabling both the country and the EU to benefit from advancements in digital technology and connectivity.
With East Africa and Africa deepening economic integration, what are the key focus areas for strengthening EU-Africa trade relations?
The European Union project was founded on the principles of promoting the free movement of people, goods, and services, which has been key to its integration and sustainable growth. We firmly believe that regional integration is crucial, and the EU is a strong supporter of the African Continental Free Trade Area (AfCFTA). Through various projects, we are actively contributing to the implementation of the free trade zone. Additionally, we have been promoting regionally focused agreements, such as the Economic Partnership Agreement (EPA), to further enhance economic cooperation and integration within the region.