Tanzania & the EU

The United Republic of Tanzania is located in East Africa, borders on the Indian Ocean and has land borders with eight countries. Tanzania comprises the former colony of Tanganyika on the mainland and the former Protectorate of Zanzibar which were brought together in 1964 and named the United Republic of Tanzania. Zanzibar has its own President and a separate Parliament. Tanzania has a population of around 38 million. It is a political leader in Africa, a status obtained during the decolonisation period, when the country's first president, Julius Nyerere played an important role in the Pan-African Movement.

Although politically stable, the country is heavily indebted and remains one of the world's poorest countries with over 12 million people living below the poverty line. The economy relies heavily on agriculture and increasingly on tourism. Mineral production (gold, diamonds, tanzanite) is the country's biggest source of economic growth. Supported by its development partners, who contribute some 40% of the country's total budget, the government is implementing its Poverty Reduction Strategy. Successes include school enrolment which has risen from 53% in 1999 to 96% in 2006. HIV/AIDS, however, remain a cause of premature death. Life expectancy was 51 in 2007.

Key issues in EU-Tanzania relations

Tanzania is a global leader in aid effectiveness and donor harmonisation. The EC is supporting the government’s poverty reduction strategy, called MKUKUTA, and participates with other donors in the Joint Assistance Strategy for Tanzania. The main focus of previous EC development programmes has been to assist the government’s poverty reduction strategy, mostly through budget support, in primary education, roads, water, legal and judicial reform, health and education.

The new EC development cycle (2008–13) allocates € 555 M to Tanzania. Most of this (€ 305 M) is provided as general budget support for the country’s poverty reduction programme. A further € 139 M is directed at sector budget support in the road sector and € 55.5 M has been reserved for trade and regional integration.

The EC is supporting Tanzania in its efforts to promote regional integration, particularly in the East African Community and the Southern African Development Community. The EU is negotiating a new Economic Partnership Agreement with countries in the region a comprehensive trade agreement to strengthen the integration process.

Tanzania still hosts a large refugee population which has fled conflicts in eastern Congo, Rwanda and Burundi. The country has struggled to deal with the influx, and funding is provided by the EC in support of the programmes managed by the UN High Commissioner for Refugees.