Joseph Isangura
Following the European Union’s decision to suspend €156 million (around TSh 400 billion) in planned aid for Tanzania in 2026, the government has reassured citizens that national finances remain stable.
Officials emphasized that the country has strong domestic revenue streams and will not face a financial crisis due to the freeze.
Tanzania’s Foreign Affairs Minister, Ambassador Mahmoud Kombo, addressed the media, urging citizens to put the aid suspension into perspective. “Tanzanians will not go hungry because of this. When compared to our total national budget, EU aid is only a small fraction,” he explained. The 2025/26 budget totals TSh 56.49 trillion, primarily funded by domestic revenue (TSh 40.47 trillion) and loans (TSh 14.95 trillion), with foreign grants accounting for TSh 1.07 trillion.
The European Union Parliament approved the resolution to suspend aid with 539 votes in favor and 27 abstentions, citing concerns over post-election unrest, human-rights issues, and electoral irregularities in the 2025 general elections.
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Analysts say the freeze primarily targets aid disbursed through government channels, while most development programs run by NGOs, international agencies, and civil society remain largely unaffected.
Minister Kombo reassured the public that essential government services, infrastructure projects, and development initiatives will continue as planned. He highlighted that the government’s foreign aid exposure is relatively small, and the EU funds represent only a minor portion of planned expenditures.
Although the immediate impact on government operations is limited, experts caution that externally managed programs could experience delays if the suspension persists. The government continues to engage with EU representatives through diplomatic channels, emphasizing transparency, reforms, and collaboration.
Tanzania remains committed to ensuring stable governance and economic resilience, relying on domestic resources, strategic borrowing, and international partnerships to maintain development momentum.
