European Commission approves Tanzania’s biggest ever EU cooperation programme

The European Commission on 3 August 2009 formally approved the Annual Action Programme 2009 for the United Republic of Tanzania providing the country with € 385 million in assistance for budget support and infrastructure programmes that will enable pro-poor economic growth.

This programme complements the bilateral cooperation programmes of the individual EU Member States. It is the largest ever financial commitment made by the EU in support for Tanzania since EU cooperation first started in 1975.

“This substantial financial commitment demonstrates our confidence in the Tanzanian Government to aggressively tackle the economic challenges ahead, and to put good governance, accountability and the fight against corruption at the centre of their agenda,” stated Karel De Gucht, Commissioner for Development and Humanitarian Aid.

The Annual Action Programme 2009 will fund four actions for a total of € 385 million that will be channelled through government systems. € 305 million will be provided in form of enhanced general budget support through a so-called “Millennium Development Goal (MDG) Contract”. The MDG-Contract is a predictable financial commitment over a 6 year period – twice as long as the common budget support agreements – aligned with the country’s procedures and policy priorities focussing on MDG-related results. Tanzania is one of only 7 African countries to benefit from this unique form of cooperation.

€ 70 million will be allocated for infrastructure development in the framework of a Road Transport Sector Policy Programme, a field in which the European Commission has been active for many years. The programme aims at providing adequate transport infrastructure that is sustained by effective policies, strategies and investment programmes for all transport sub-sectors.

€ 8 million will go into a programme supporting the development of renewable energy, an area where progress is urgently needed. In Tanzania only 10% of the population has access to electricity and the use of fuel, wood and charcoal for domestic purposes causes serious health and environmental problems.

The support to the National Authorising Office (NAO), the Ministry of Finance of the United Republic of Tanzania, amounts to € 2 million. The objective of the programme is to boost the NAO’s institutional capacities to tackle poverty issues and to effectively implement all projects and programmes.

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