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US to Provide $560 Million in Bilateral Assistance to Tanzania in 2024

Khamala Harris with Samia Hassan

Tanzania and the United States have signed several agreements to deepen and broaden economic cooperation during the visit of U.S. Vice President Kamala Harris to Tanzania and her meeting with Tanzania’s President Samia Suluhu Hassan on 30th March 2023.

In a joint media briefing with Harris at the State House in Dar es Salaam, President Hassan said the agreements focus on USAID assistance to Tanzania, port cooperation, commercial dialogue, and information and communication technology.

“On USAID assistance through the Development Objectives Agreement (DOAG), the United States will commit USD 1.3 billion to finance various socio-economic programmes in Tanzania,” President Samia clarified.

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She also called for an early renewal of the African Growth and Opportunity Act (AGOA) which ends in 2023, to extend it to at least 2030 allowing Tanzania and other African countries to increase their exports to the U.S. market.

Similarly, President Samia has called on the United States to review the Visa Agreement to enable citizens of both countries to benefit from long-term visas by increasing the growth of business, tourism, and investment.

For her part, Vice President Harris applauded President Samia for her ongoing
reforms in Tanzania, describing her as a champion for democracy.

“You (President Samia) have been a champion in terms of democratic reforms in this country. Under your leadership, Tanzania has taken important and meaningful steps. President (Joe) Biden and I applaud you,” Vice President Harris said.

Harris also said that the Export-Import Bank of the United States will sign a Memorandum of Understanding (MoU) with Tanzania to facilitate up to USD 500 million in U.S. exports to Tanzania in transportation, infrastructure, digital technology, and clean energy projects in order to boost trade between the two countries.

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Furthermore, a statement from the U.S. White House explains that the United States, through the Partnership for Global Infrastructure and Investment (PGII), the Administration’s signature G7+ effort to enable transformative infrastructure development, has helped facilitate a strategic partnership between Life Zone Metals and TechMet, a leading critical metals company part-owned by the U.S. Government through the U.S. International Development Finance Corporation (DFC).  

Life Zone Metals entered into a Framework Agreement with the Tanzanian government to open a new multi-metals processing facility that will use innovative, low-emission technology to process nickel and other critical minerals mined in Tanzania, targeting the delivery of battery-grade nickel to the U.S. and the global market as soon as 2026.  

The partnership will also work to identify additional opportunities across the region for critical mineral inputs to the new facility.  These efforts are aimed at building and expanding resilient, transparent supply chains for clean energy technology that are based on extensive local engagement, respect for the environment and conservation, and safe, high-integrity labour practices.

In addition, the U.S. Trade and Development Agency (USTDA) will support the expansion of affordable broadband access to thousands of people across East and Central Africa through a USD 1 million feasibility study grant to help develop new fibre backbone and access network infrastructure in Tanzania, Kenya, the Democratic Republic of the Congo, and Uganda.

The statement also indicates that the Biden Administration intends to provide USD 560 million in bilateral assistance in fiscal year (FY) 2024 alone for Tanzania.

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