The European Union (EU) has disbursed through the Ministry of Finance and Economic Affairs Euro 48 million (around Tshs. 97 billion) to support Tanzania's 2011/12 budget under the General Budget Support (GBS) facility.

These funds are intended to help Tanzania to reduce poverty and achieve the Millennium Development Goals (MDGs).

The EU also has informed the Government of the satisfactory conclusion of the General Budget Support annual review, which promises well for the continuation of the important support to the budget of Tanzania, also for the years 2012 and 2013.

Twelve of Tanzania’s Development Partners (DPs) including the EU, which is the current GBS Chair, have committed 453 million dollars (USD) to support the Government’s 2011/12 budget.

The EU is supporting the government’s poverty reduction strategy- MKUKUTA, and participates with other donors in the Joint Assistance Strategy for Tanzania. The main focus of EU development programmes has been to assist the government’s poverty reduction strategy, mostly through budget support, roads, water, legal and judicial reform, health and education.

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

The EU 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.