Africa-Press – Tanzania. THE government has successfully reviewed its 2024/2025 budget and secured over 220bn/- to cover critical areas affected by recent shifts in United States foreign aid policy.
Finance Minister, Dr Mwigulu Nchemba, informed the National Assembly yesterday that 88bn/- of the funds have already been disbursed to ensure the continuation of key health projects impacted by the policy changes.
He was responding to a supplementary question from Patrick Ndakidemi (CCM), MP for Moshi Rural, who inquired about the effect of a recent executive order by former US President Donald Trump on development initiatives in Tanzania and how the country plans to utilise its natural resources to mitigate such external shocks.
Dr Nchemba clarified that Tanzania had no direct government-to-government financial cooperation with the US for development project funding. Instead, most US development assistance was channelled through American institutions working with Tanzanian partners.
“There was no direct budgetary impact following the foreign aid policy changes,” he said, adding, “However, the government conducted a thorough assessment of institutions previously receiving such funds — not only in response to the US policy shift but as part of a broader review of support from development partners.”
He said the government is committed to ensuring continuity of the affected projects, especially in the health sector, by allocating necessary funds from its own budget and other sources.
Beyond responding to aid shortfalls, Dr Nchemba said the government is intensifying efforts to operationalise major domestic projects that rely on locally available resources to boost domestic revenue and reduce reliance on imported goods.
“These initiatives will not only generate substantial income but also increase the production of goods that can be made locally, enhancing economic resilience,” he noted.
Responding to Ndakidemi’s primary question on the government’s preparedness to counter foreign policy shifts from developed nations, Dr Nchemba said Tanzania is scaling up efforts to increase domestic revenue generation, aiming to finance a significant portion of the national budget internally.
He added that the government will continue to attract private sector participation in development financing through publicprivate partnerships (PPPs) and other innovative models.
“This strategy will help reduce the borrowing burden on the government and lessen budgetary dependence on development partners,” he said.
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