EU unlocks 461bn/- for Tanzania

DAR ES SALAAM: THE European Union has restored access to 156 million euros (approximately 461bn/-) in development funding for Tanzania after delaying approval of its 2025 programme following the events of October 29, 2025, the EU’s Head of Cooperation in Tanzania and the East African Community, Marc Stalmans, has confirmed.

Stalmans told the `Daily News’ in Dar es Salaam yesterday that the European Commission decided on July 23, 2026, to proceed with the full allocation, retaining the planned activities and objectives without reducing the budget or changing the scope of cooperation.

“The money is available for Tanzania since the 23rd of July this year,” Stalmans said in an interview on the sidelines of the Women Leadership Forum organised by the Uongozi Institute in Dar es Salaam.

The funding had been expected to be approved by the end of 2025 but was delayed as the EU considered its response to the October 29 events, he said.

European officials had weighed whether to maintain the existing level of cooperation with Tanzania, change the programme’s scope or reduce its budget.

“At the end of the day, the European Commission decided to go for the full budget available, for the same kind of action that were foreseen, for the same numbers,” Stalmans said.

The 156 million euros allocation forms part of the EU’s 2025 Annual Action Plan for Tanzania. Its approval makes the funding available for implementation through normal procedures, although it does not mean the entire amount has already been disbursed.

Stalmans did not specify when individual projects would begin receiving funds or when disbursements would be completed.

The programme was caught up in concerns over Tanzania’s political and human rights situation following the October 29, 2025 General Election. In November 2025, the European Parliament called for the withdrawal of the proposed financing decision, citing concerns over post-election violence and alleged human rights violations.

The funding process was subsequently delayed, although the European Parliament’s position was not, by itself, the EU’s final funding decision.

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The 156 million euros package forms part of the EU’s broader 2021–2027 development cooperation framework with Tanzania, which focuses on green development, human capital and employment and governance. The partnership also supports areas including sustainable infrastructure, digitalisation and regional integration.

Beyond development assistance, the EU is an important trading partner and a source of investment in infrastructure, energy, agriculture and digital connectivity. Bilateral trade in goods reached 2.14 billion euros in 2025, according to European Commission data.

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