Trump aid freeze to hit Tanzania civil society hard: report

For decades, the US has been Tanzania’s largest donor, channelling billions of dollars into various sectors, including health, education, agriculture, and human rights advocacy. The support has traditionally been distributed as direct government aid, funding to American and international organisations operating in the country, and financial assistance to Tanzanian civil society organisations (CSOs).

However, THRDC, which conducted a preliminary study on the effects of the funding cut, said the freeze will hit many Tanzanian CSOs that were already grappling with financial sustainability challenges due to shifting donor priorities, increasing competition from international NGOs, and reduced foreign aid allocations.

“The suspension of US funding has only exacerbated these difficulties, leading to job losses, project terminations and disruptions in service delivery,” THRDC national coordinator, Mr Onesmo Olengurumwa said.

The report highlighted that most Tanzanian CSOs relied on secondary grants, adding that the sudden aid suspension left them struggling to sustain operations.

“The withdrawal of US aid has placed immense financial pressure on Tanzania’s civil society sector. Many organisations relied heavily on these funds, and without them, projects that provided essential services to vulnerable groups have come to a standstill,” Mr Olengurumwa said.

Programmes such as the US President’s Emergency Plan for Aids Relief (Pepfar), which benefited people living with HIV/Aids, were implemented in Tanzania through local NGOs.

However, the projects that were once flourishing have stalled unexpectedly, and vulnerable communities that depended on these services now face uncertainty.

The report predicts that Tanzania’s financial landscape will also take a hit, with a significant reduction in foreign exchange inflows.

“The absence of US funding, previously estimated at billions of dollars annually, will weaken the availability of foreign currency and reduce government revenue streams that NGOs once generated through employment and taxation,” Mr Olengurumwa said.

“The health sector is particularly vulnerable, Many of the programmes that depended on US funding have either slowed down or shut down completely, leaving thousands of beneficiaries stranded.”

Over the years, the US aid has played a pivotal role in Tanzania’s healthcare system, supporting programmes to combat HIV/Aids, malaria and maternal health issues.

Other projects focused on youth empowerment, skills training, and employment opportunities.

“Without funding, we’ve had to shut down some of these programmes. It’s devastating because young people who depended on these initiatives for a better future now have nowhere to turn,” said founder and executive director of the Zanzibar Fighting Against Youth Challenges Organisation (Zafayco), Mr Abdalla Abeid.

The THRDC report urged NGOs to push for direct funding from international donors instead of relying on intermediaries, and to explore alternative fundraising avenues, including support from local businesses and philanthropic entities.

“We must move towards financial independence. This means engaging local businesses, encouraging philanthropic giving, and developing income-generating activities to sustain our initiatives,” Mr Olengurumwa noted.

THRDC has also raised concerns over the governance aspect of the funding freeze, pointing out that such a sudden policy shift disregards financial agreements and has created turmoil for thousands of Tanzanians.

“This is not just about money—it’s about lives. We’re talking about women who have escaped abusive homes, children who have been orphaned, and people living with disabilities who relied on our support to survive,” said the founder and executive director of Door of Hope Tanzania, Mr Clemence Clelinus.

He said while the immediate effects of the funding freeze are severe, CSOs are now focusing on long-term resilience strategies.

The THRDC report called for increased dialogue between the government, development partners, and the private sector to explore sustainable funding mechanisms.

“This crisis should serve as a lesson. We must rethink how we operate and diversify our funding sources. Our survival as civil society depends on it,” Mr Olengurumwa.