USAID funding halt puts Tanzania NGOs, agriculture at risk
What you need to know:
- USAID’s decision to halt all new funding obligations and sub-obligations under Development Objective Agreements (DOAGs) follows an Executive Order reassessing U.S. foreign aid
Dar es Salaam. Over 60 non-governmental organisations (NGOs) involved in Tanzania’s agricultural value chain, particularly those supporting youth and women, face disruption following the United States’ announcement of a 90-day suspension on foreign aid.
The policy shift, effective from 24 January 2025, has raised concerns across sectors reliant on USAID funding, including agriculture and healthcare.
Stakeholders are urging the Tanzanian government to review national projects to ensure essential services, including the supply of medicines, remain available.
USAID’s decision to halt all new funding obligations and sub-obligations under Development Objective Agreements (DOAGs) follows an Executive Order reassessing US foreign aid. While initially set for up to 30 days, the suspension may lead to a complete withdrawal of funding for some projects, heightening concerns among partner nations.
Agricultural experts warn that Tanzania’s farming sector will be directly affected. Mr Malembo Lucus, an agribusiness expert and founder of Malembo Farm in Tanzania and Kenya, stated that about 65 NGOs in the country—many focused on horticulture—depend on USAID, with some receiving up to 30 per cent of their funding from the agency.
Horticulture is increasingly vital to Tanzania’s economy. Official figures from the Bank of Tanzania (BoT) indicate that earnings from horticultural exports reached $496.2 million in the year ending October 2024, up from $414.6 million the previous year, driven mainly by vegetable exports.
“Many young people in Tanzania have ventured into vegetable and fruit farming, and a large percentage of their organisations depend on USAID funding. This means production will decline, and many workers may lose their jobs,” Mr Lucus told The Citizen.
A key initiative at risk is Feed the Future Tanzania Tuhifadhi Chakula (Let’s Save Food) project, a $24 million programme renewed in September 2024. The five-year initiative aims to reduce post-harvest losses in Tanzania’s horticulture and cereal value chains and is implemented by the Tanzania Horticulture Association (Taha) and the Southern Agricultural Growth Corridor of Tanzania (Sagcot) Centre.
Attempts to reach Mr Geoffrey Kirenga of the Sagcot Centre for comment were unsuccessful. However, Taha’s CEO, Ms Jacqueline Mkindi, told The Citizen that they had been instructed to wait. “The work goes on,” she said.
Since its launch in August 2023, the Tuhifadhi Chakula project has significantly impacted Kilimanjaro’s banana market, ensuring 216,000 metric tonnes reached buyers, reducing post-harvest losses, and generating nearly Sh400 million for local farmers.
The project, running until July 2028, involves over 930,000 value chain actors—including farmers, processors, traders, and financial institutions—across multiple regions.
Beyond agriculture, concerns are rising over global health initiatives. Former Minister for Lands, Housing and Human Settlements Development, Prof Anna Tibaijuka, warned of the potential consequences of funding cuts for HIV/AIDS programmes, including the President’s Emergency Plan for AIDS Relief (PEPFAR) and the Global Fund.
“The loss of funding would severely affect access to life-saving antiretroviral (ARV) drugs,” Prof Tibaijuka posted on X (formerly Twitter). “This could lead to a resurgence in HIV infections and increased mortality rates. The Ministry of Health must assess the situation and implement necessary measures.”
Other health programmes at risk include the Momentum Integrated Health Resilience initiative and the President’s Malaria Initiative. Education projects such as Tusome Pamoja and Waache Wasome, supporting early-grade reading and adolescent girls’ education, also face uncertainty.
Environmental and conservation initiatives such as Heshimu Bahari (Respect the Ocean), Landscape Conservation in Western Tanzania, and Endangered Ecosystems of Northern Tanzania could experience funding challenges. Economic growth and trade initiatives like Kilimo Tija (Agricultural Productivity) and the East Africa Trade and Investment Hub may also suffer setbacks.
An agriculture economist from the University of Dodoma, Dr Letengano Mwinuka, said that this crisis presents an opportunity for the Tanzanian government to evaluate national projects and ensure critical sectors, particularly health, remain resilient.
“The health and agricultural sectors are interconnected. If people cannot access medicine, they won’t be able to engage in productive activities like farming. The government must take immediate action to mitigate the impact of these cuts,” Dr Mwinuka said.
Stakeholders have urged the Prime Minister’s Office to review national health projects and prioritise essential medicine procurement.
While awaiting further developments, securing vital supplies and sustaining agricultural productivity are crucial steps in protecting the country’s economic and social stability.
With growing uncertainty over foreign aid, the Tanzanian government faces mounting pressure to respond swiftly, ensuring the welfare of key sectors amid an evolving global funding landscape.
