New funding from US months after aid blocked

Dar es Salaam, Tanzania - 2014-12-12 USD and TZS in Dar es Salaam, Tanzania, on December 12, 2014. Photo by Daniel Hayduk

Months after $472 million USD in aid was cancelled, a new round of aid cash worth $407 million USD has been pledged by the United States.  Photo: Daniel Hayduk

Months after $472 million USD in aid was cancelled over Zanzibar’s election irregularities and implementation of the controversial cybercrimes act, the United States has pledged a new round of aid via the United States Agency for International Development (USAID.)

USAID says they intend to invest $407 million USD (890 billion TSH) this year in various sectors including health, agriculture, natural resource management, education, energy and democratic governance.

“Through the agreement, the United States, in full coordination with the Tanzanian Government, aims to support Tanzania’s socioeconomic transformation to middle income status by 2025,” says a press release issued by the US embassy.

The $407 million USD investment would represent half of the annual budget that the United States Government spends on development and other bilateral programs in Tanzania, which are implemented partly by the Government of Tanzania and by non-governmental implementing partners working in Tanzania.

In March, it was the United States’ Millennium Challenge Corporation (MCC) that dropped funding over Zanzibar’s election re-run and the implementation of the cybercrimes act, but stressed other funding commitments would not be affected.

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