Tanzania to get Sh370 billion EU grant

 

The headquarters of the Bank of Tanzania in Dar es Salaam. PHOTO | FILE

Summary

• The package was announced yesterday by the European Commissioner for International Partnerships, Ms Jutta Urpilainen

Dar es Salaam. The European Union (EU) has announced another €166 million (Sh370 billion) in grants to support Tanzania’s blue economy initiative as well as the public and private financing.

This is the second package of grants as the EU announced €180 million (Sh400bn) earlier this year, after discussions between President Samia Suluhu Hassan and EU leaders in Belgium early this year.

The package was announced yesterday by the European Commissioner for International Partnerships, Ms Jutta Urpilainen, who met the minister for Foreign Affairs and East African Cooperation, Dr Stergomena Tax, and the minister for Finance and Planning, Dr Mwigulu Nchemba.

The money is expected to contribute to the implementation of the Global Gateway, the new European strategy to boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world.

“Worldwide, Global Gateway aims to mobilise up to €300 billion of investment by 2027, in a Team Europe approach between the EU, its member states, development financial institutions and the private sector. In Tanzania, these actors will work together with the government to use EU grants, such as the one announced today, in order to bring additional investments,” said Ms Urpilainen.

The two sides discussed different issues ranging from political and economic relations, development partnerships and regional integration.

This visit of the EU official follows several meetings President Hassan had had with her counterparts from the EU.

“This package of grants complements the joint strategy of our partnership. As government of Tanzania, we see the mix of direct contribution to the national budget and support to the private sector as the best combination to guarantee economic development in our country,” said Dr Nchemba.

“The European strategy that aims to promote sustainable and inclusive investments is perfectly in line with Tanzania’s vision and I express my sincere appreciation for this excellent collaboration,” he added.

A third EU package of €20 million (about Sh45 billion) will soon be released and specifically address girl education in Tanzania.

“The government appreciates particularly this support which has been used to implement development interventions in various sectors including macroeconomic, sectorial policies, road transport, airports, energy, agriculture as well as environment and climate change to mention a few,” added Dr Nchemba.