Tanzania has secured USD 55.9M (approx. TZS 161.3B) from development partners for the Health Basket Fund (HBF) for the 2025/26 fiscal year to support primary healthcare delivery and strengthen health systems.
The amount represents a 20% increase from the USD 44.3M disbursed in the 2022/23 financial year.
The signing ceremony for the annual side agreement of the HBF took place on 18 July 2025, officiated by the Minister for Health, Jenista Mhagama, and attended by senior representatives of development partners.
The Health Basket Fund will finance national, regional, and facility-level health plans, including procurement of medicines, medical supplies, and delivery of primary health services across more than 7,300 healthcare facilities in Tanzania through direct facility financing mechanisms.
Minister Mhagama stated that the fund continues to support key health reforms, including Decentralisation by Devolution and Direct Health Facility Financing (DHFF), where funds are disbursed based on performance targets verified by the Internal Auditor General.
She reiterated the government’s commitment to transparent use of the funds and advancing Universal Health Coverage (UHC) through improved service delivery and access to care.
The minister also welcomed the return of the United Kingdom to the fund and commended all contributing partners for their continued engagement in the HBF since its launch in 1999.
Deputy Minister in the President’s Office – Regional Administration and Local Government (PO-RALG), Dr Festo Dugange, emphasized the HBF’s role in improving grassroots health services and essential care, including maternal and child health.
He noted that the fund has contributed to reducing maternal mortality from over 600 to 104 deaths per 100,000 live births, earning President Samia Suluhu Hassan the Global Goalkeepers Award for health leadership.
UNICEF Country Representative and Chair of the Health Basket Fund, Elke Wisch, highlighted the HBF as a model for coordinated joint financing aligned with government health priorities.
She pledged continued support in expanding equitable health access, implementing financing reforms including the Universal Health Insurance Law, and strengthening maternal and child health.
Permanent Secretary at the Ministry of Finance and Planning, Dr Natu Mwamba, disclosed that TZS 1.2B had been approved as a carryover from the 2024/25 fiscal year, with TZS 526.2M allocated for independent performance verification.
She underlined the importance of monitoring health indicators such as early breastfeeding initiation to ensure accountability and inform policy interventions.
The Health Basket Fund is a joint financing initiative involving Tanzania and nine development partners: Canada, Denmark, Ireland, Korea, Switzerland, the United Kingdom, the World Bank, UNFPA, and UNICEF.
Since its inception in 1999, the fund has disbursed over USD 1.3B (approx. TZS 3.2T) to support national health sector strategic plans, particularly in primary healthcare.
