Tanzania is a low-middle income country in East Africa that benefits from a stable macro-economic outlook. Despite the decline of the poverty rate, the absolute number of those in poverty remains high due to the high rate of population growth.
Tanzania has an abundance of natural resources, good weather conditions, a long coast and big lakes, as well as a strategic geo-position as a getaway for landlocked countries. But the country needs to deepen its economic transformation, which requires investment, new technologies and skilled labour.
The long-standing partnership between the EU and Tanzania has been reinforced since the arrival of Samia Suluhu Hassan as president in 2021. The political dialogue and the cooperation have also deepened.
The EU supports Tanzania and Zanzibar development plans through the Global Europe MIP (2021-2027), with a €426 million allocation for the initial period, with three priority areas: Green Deals, Human Capital and Employment and Governance.
EU actions in Tanzania are in line with the Global Gateway Strategy in the fields of climate and energy, digital infrastructure and transport corridors for which Tanzania also benefits from regional EU programmes.
Our flagship initiatives
Green and Smart Cities SASA This Team Europe Initiative brings together the EU, Belgium, Finland, France, The Netherlands, Sweden and the EIB (€75 million+ €20 million in EFSD+ guarantees). The initiative supports concrete investments in green infrastructures; making cities an engine for local economic growth and circular economy, capacitates local and central authorities in their (e-)governance and invests in public service delivery. At the same time, the programme aims at enhancing the quality of life for the inhabitants of the targeted cities. An enabling urban environment will be promoted, urban resilience and public services strengthened, and the local economy in the selected cities stimulated.
Blue economy for job creation and climate change adaptation (€110 million + €30 million in EFSD+ guarantees), a Team Europe initiative bringing together Finland, France, Germany, Ireland, The Netherlands, Sweden and the EIB, AFD and KfW. The programme supports the design and governance of Blue Economy policies and regulations; spurs investments in key infrastructures and innovative business ecosystems; promotes circular economy, climate adaptation and access to green finance for actors of the local government and communities. It will help to unlock the potential of the ocean and coastal economies (e.g. in fisheries/mariculture, forestry, renewable energies and eco-tourism sectors) while preserving the environment and biodiversity for climate and disaster resilience. The project will help generate jobs and growth, and deliver on Tanzania’s climate change commitments.
Finance for Growth aims to promote better fiscal governance and access to finance to catalyse green, inclusive, and sustainable development. The project is designed to create an enabling environment for business and investment. It will contribute to
- unlocking broader and more affordable access to finance in a country where private investment levels are particularly low
- strengthening the capacity of the public administration for raising revenue and delivering public services and investments and
- promoting accountability.
The Gender Transformative Change Programme 'Breaking the Glass Ceiling' will accelerate progress towards behavioural change for gender equality and women and girls’ empowerment through an increased awareness on all forms of gender-based violence, the promotion of women’s economic empowerment, and the enhancement of equality in participation, leadership, and decision-making.
The Digitalisation (Digital4Tanzania) will contribute to improving the digital economy, increasing accessible connectivity to services, and developing innovation ecosystems.
The EU is also active in the energy sector with the 'Tanzania Energy Sector Reform programme'.
In each of these programmes, there is a budget support component. Tanzania also benefits from blending through 2 programmes together with EIB on Gender and Blue Economy Finance.
Finally, in 2023 the Global Gateway Flagship project Kakono Hydropower Plant has been developed together with the Agence française de développement (AFD) and the African Development Bank (AfDB).