Clarification from Government on a news article published by The Guardian regarding "foreign aid cut"



The Government of the United Republic of Tanzania would like to clarify a statement which appeared in the Guardian newspaper of 31st March 2016 article and other print and social media titled Magufuli’s government hit by more foreign aid cuts. The Government would like to inform the general public that it is not true that a group of 14 western development partners have announced withdrawal of their general budget support to Tanzania.

Development partners still support the national budget through three modalities namely General Budget support, basket funds, and direct to project funds. In Financial Year (FY) 2015/16 a total of 8 development partners pledged to provide General Budget Support, these include African Development Bank, Canada, Denmark, European Union, Finland, Ireland, Sweden, and the World Bank.

Meanwhile, as for FY 2016/17, African Development Bank, Denmark, European Union and the World Bank have so far confirmed to provide General Budget Support. However, other Development partners will continue to provide support to the 2016/17 national budget through basket funds and project funds.

These include Belgium, Canada, China, Denmark, Finland, France, Germany, Spain, India, Ireland, Italy, Japan, South Korea, Norway, Sweden, Netherlands, United Kingdom, United States of America and Switzerland. Others are International Multilateral Development Agencies, including the African Development Bank, BADEA, Global Funds, OPEC Fund, Saudi Fund, European Union, United Nations agencies and the World Bank.

Due to the ongoing domestic resources mobilization efforts of the fifth Government, it is anticipated that other Development Partners will also continue with the General Budget Support modality. In this regard, the Government is still in discussion with development partners regarding General Budget Support for FY 2016/17.

Moreover the Government in collaboration with Development Partners is in the process of commissioning a study on how best to improve the development cooperation of Tanzania including the dialogue structure.

The Government would like to thank the Development Partners for their continued support towards the development initiatives of the United Republic of Tanzania.

1ST APRIL 2015