Prime
Tanzania outlines measures to mitigate foreign aid policy shift
Special Seats MP Neema Lugangira
What you need to know:
- In her contributions, Ms Lugangira advised the government to cut non-essential expenditures in its operations as part of broader efforts to cushion the country from the impact of changes in donor policy
Dodoma. The government has taken steps to mitigate the impact of changing international development financing policies, particularly those by developed nations, with a focus on projects that were previously supported by the US.
Responding in Parliament on April 15, 2025 to a question by Special Seats MP Neema Lugangira, who sought to know what measures the government has adopted to reduce the impact of such external policy shifts, the minister for Finance, Dr Mwigulu Nchemba, said a comprehensive assessment had already been conducted.
“The government has completed an assessment of the impact on projects that were being funded through support from the US. The most affected areas include the health sector,” said Dr Nchemba.
He noted that large-scale projects that had previously relied on US funding have now been allocated resources from domestic sources to ensure continuity.
Dr Nchemba further told the House that the government is continuing to carry out assessments in other sectors potentially affected by foreign aid realignments, with particular attention to development partners in areas where the US had played a pivotal role.
“These ongoing reviews are critical to ensure that the government can respond effectively and safeguard key public services and development goals,” he said.
His remarks come against the backdrop of growing global concern over the implications of shifting donor priorities and foreign policy changes, especially amid fiscal tightening in several developed countries.
The sudden dismantling of USAID—the US' main foreign development agency—is reportedly unravelling healthcare systems across Africa, many of which were built through a complex network of national health ministries, private sector actors, non-profit organisations, and foreign aid.
In her contributions, Ms Lugangira advised the government to cut non-essential expenditures in its operations as part of broader efforts to cushion the country from the impact of changes in donor policy.
She also urged the government to engage international financial institutions such as the World Bank and the International Monetary Fund (IMF) with a view to
