Tanzania reaps $2.8 billion per year from relations with US
What you need to know:
- The report titled ‘Investing in Tanzania's People’ was produced by AidData, a US-based research lab at William & Mary's Global Research Institute, in close collaboration with Repoa, a Tanzanian policy research organization.
Dar es Salaam. New research finds that the United States' relationship with Tanzania delivered an estimated $2.8 billion per year in tangible benefits to the Tanzanian people and economy from 2012 to 2022.
The report titled ‘Investing in Tanzania's People’ was produced by AidData, a US-based research lab at William & Mary's Global Research Institute, in close collaboration with Repoa, a Tanzanian policy research organization.
According to executive director Dr Donald Mmari, the US made significant contributions to Tanzania's development through different sectors of the economy, specifically in the health sector.
“The report finds that the US was the single largest provider of HIV/AIDS-related funding by far during the period,” he said.
Data showed significant US government assistance from 2012 to 2022 in health, particularly around HIV/AIDS was $3.8 billion and malaria was $533 million.
Other assistance on agriculture was $546 million and infrastructure $579 million.
The report not only tracks direct US government assistance, but also quantifies the value of indirect benefits from trade and other channels, such as foreign direct investment (FDI); contributions from US-based NGOs in Tanzania, private foundations, and individual donors; revenue from American tourists; and remittances from Tanzanians working in the US.
AidData’s Senior Policy Specialist Ms Divya Mathew said, "Due to the difficulty in measuring non-official investments and financial flows, our estimate of $2.8 billion per year is likely conservative, and the overall US contribution to Tanzania's growth and development could be significantly higher”.
Tanzanian leaders interviewed for the report routinely cited US government and private foundation investments in building their capacity to prevent and treat HIV/AIDS, malaria, tuberculosis and other diseases as some of the most successful examples of the US-Tanzania partnership.
Repoa’s director of collaborations and capacity building, Dr Lucas Katera, affirmed that the organisation hopes this report will trigger meaningful dialogue and engagement, providing Tanzanian leaders and the public with valuable insights into the benefits of the US -Tanzania partnership.
“By highlighting both the successes and areas for improvement, the report aims to foster informed policymaking and future research, ensuring that the partnership continues to support Tanzania's growth and prosperity,” he said.
Additional examples of broader engagement with US society include remittances where it is estimated that Tanzanian diaspora living and working in the United States sends home $103.7 million annually to their families and communities.
In terms of tourism, visiting American tourists generate $317.7 million in annual revenues, while twenty-two US private foundations and philanthropies fund development activities worth $96.3 million annually.
"The report uncovers and provides a broader picture of aspects arising from the long-standing partnership that may have been overlooked and unnoticed by the Tanzanian community at large," added Repoa’s senior researcher Dr Jane Mpapalika.
