Five sectors in Tanzania to benefit from Sh100 billion EU reform support

Dar es Salaam. The European Union (EU) has outlined five areas where €33.12 million (about Sh100 billion) will go support Tanzania's ongoing reforms.

The budget support aims to foster socio-economic development and enhancing the resilience of Tanzanian citizens, the EU said in a statement issued yesterday.

"We are pleased to continue our support for Tanzania's growth and development.

The funds are not just an investment in the present but a commitment to the country's future,” said the EU Ambassador to Tanzania, Ms Christine Grau.

“By focusing on areas such as the blue economy, urban development, gender equality, digitalisation, and financial growth, we are helping to build a more resilient and prosperous Tanzania,” she added.

The focus areas include the blue economy in which the financing targets to develop a climate-resilient blue economy along Tanzania's coastal regions, including Zanzibar and the Indian Ocean.

The funds will support governance reforms, capacity building, and enhance inter-ministerial coordination, the EU said.

Another area is green and smart cities in which the support focuses on promoting sustainable urban development in Mwanza, Tanga and Pemba.

The financing aims to improve living standards by enhancing environmental sustainability, creating economic opportunities, and improving public services, especially for women and youths.

On gender, the funding is dedicated to advancing gender equality and empowering women and girls including seeking to address gender-based violence, promote economic empowerment and support women's participation in leadership and decision-making processes.

The fourth focus area is Digital4Tanzania initiative in which the financing aims 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.

The fifth sector is finance for growth, which has a focus on improving fiscal governance and access to finance.

The reforms 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.

The 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.