The US will grant USD194m to the East African Community (EAC) to improve regional integration in the EAC member states, which include Tanzania, Burundi, Kenya,…
The United States (US) established diplomatic relations with Tanzania (then Tanganyika) in 1961.
The US is committed to strengthening democracy in Tanzania and working with Tanzania on women’s and children’s health, HIV/AIDS, nutrition and food security, economic growth, energy, sustainable development, and security.
According to the US Embassy to Tanzania: “This USD407m investment would represent half of the annual budget that the US Government spends on development and other bilateral programs in Tanzania, which are implemented partly by the Government of Tanzania and by non-governmental implementing partners working in Tanzania.”
USAID began working in Tanzania (then Tanganyika) in the early 1960s to build human capacity in the public service sector, for which education was a priority.
USAID helped to establish:
– The Morogoro Agricultural College
– The Institute of Public Administration
– Teacher training colleges in both Iringa and Dar es Salaam
While focusing primarily on education, USAID also invested in community development, conservation and infrastructure projects in order to transport food and water to rural areas.
In the 1970s, USAID focused on large-scale agricultural projects with the goal of increasing small farm outputs in Tanzania.
Programs included increasing credit available to farmers, bolstering the extension service within the Ministry of Agriculture, including seed multiplication and distribution.
In the 1980s, USAID’s core objective for Tanzania was to increase transportation services in rural areas. In the 2000s, USAID shifted its focus to health initiatives in Tanzania.
The Millennium Challenge Corporation (MCC), a US government aid agency, completed in 2013 its Tanzania Compact, designed to benefit more than five million people by investing in the country through targeted infrastructure improvement projects in transportation, energy, and water. A total of USD698.1m were disbursed.
However, the MCC had suspended its Tanzania Compact II, worth USD472m (£331m), after criticizing the 2016 Presidential elections in Zanzibar that were deemed ” neither inclusive nor representative”.
Tanzania US Trade
Tanzania’s exports to the US are dominated by agricultural commodities, minerals, and textiles while imports from the United States include wheat, agricultural/transport equipment, chemicals, used clothes, and machinery.
Tanzania is eligible for preferential trade benefits under the African Growth and Opportunity Act. The United States also has Trade and Investment Framework Agreements with the East African Community (EAC) of which Tanzania is member.
The US Government, through the US Agency for International Development (USAID), will invest USD407m in Tanzania in 2016.