Over the past 40 years, Tanzania has received more than EUR 3 billion to implement an extensive range of projects and programmes. These all have one overarching aim: to reduce poverty; be it through improving roads, provision of energy services, agricultural development, healthcare and sanitation, community education or good governance.
Most of EU funding to Tanzania originates from the European Development Fund (EDF). The EDF is financed by EU Member States and supports cooperation activities in the fields of economic, social and human development, as well as regional cooperation and integration. The total financial resources of the 11th EDF worldwide amount to EUR 30.5 billion for 2014-2020.
According to the 11th EDF National Indicative Programme (NIP) for Tanzania (EUR 611), the EU will promote pro-poor, inclusive and sustainable growth, in line with the EU Agenda for Change and with the country national development strategies. The NIP is focused on three sectors: good governance and development, energy, and sustainable agriculture.
European Union Support to Tanzania
Good Governance and Development
The EU promotes good governance through interventions in areas as diverse as the rule of law, democratisation, public finance management, transparency of extractive industries, human rights and capacity development of civil society organisations. In all interventions, particular attention is paid to the promotion of gender equality and women empowerment, as well as child-rights.
The EU supports the Government's reforms and systems in public finance management, including domestic revenue mobilisation, the national budget process, and expenditure management. Dedicated technical assistance is provided to the oversight institutions, such as the internal auditor general, the controller auditor general and certain parliamentary committees.
Furthermore, the EU has a long-standing tradition in supporting credible, transparent and inclusive elections in Tanzania and is also actively promoting legal sector reforms and capacity development, as well as policy and regulatory reforms for civil society organisations in Zanzibar.
For almost a decade now, the EU has joined forces with Tanzania to improve people's access to energy. It has promoted the introduction of innovative approaches for decentralized solutions to energy supply based on renewable sources, as well as grid development and new connections in rural areas. Support has also entailed activities to strengthen capacities of key stakeholders in the sector, in rural electrification planning and policy, as well as regulatory reforms. The EU is scaling up its engagement under the 11th EDF with a focus on broader energy sector reforms, energy efficiency and renewable energy, and access to electricity in rural areas.
EU's support to energy efficiency will ensure access to affordable, reliable, and modern energy by improving efficiency supply and consumption of energy. Likewise, it will make the sector more sustainable, gender inclusive and climate smart by strengthening the legal, regulatory and institutional framework. Rural electrification is promoted by supporting the Rural Energy Agency to improve access to reliable electricity through the extension of the transmission and distribution network.
Investment in electricity needs to be prioritised by focusing on its economic benefits and its potential to create jobs. Most energy projects that have received EU grant funding, such as small scale hydro power projects in the Southern Highlands or solar-hybrid mini-grids in Lake Victoria, aim to spur productive use of energy for job creation. Job creation is also promoted, particularly among women, through capacity building and training of professional Energy Auditors and Energy Management Specialists.
Access to modern cooking solutions is another area that receives support under the 11th EDF. While there is a significant market in Tanzania, dissemination is hampered by policy and market challenges including low affordability and lack of potential investors for establishing and up-scaling sustainable cooking fuel and improved cook stoves production. There is a need to demonstrate that through cross sectoral cooperation, private sector engagement and marketing of clean cooking technologies, measurable results can be achieved and dependency on charcoal reduced. The new programme will be complemented by sustainable forest management.
The agriculture sector in Tanzania is the key driver for poverty eradication, sustainable development and employment generation. Agriculture is characterised by smallholder farming and has a high potential for further expansion in production, local value addition and export. Also, changing demographics will imply a surge in food demand and need for economies of scale in production and value chain, with implications for the job market. Firstly, 70% of the population depends on agriculture for livelihood and as primary source of income. Secondly, agriculture provides 30% of total exports and 65% of raw materials for Tanzanian industries. The private sector is gradually investing in production, storage, processing, distribution and retailing.
The EU is a longstanding partner of Tanzania in sustainable agriculture, food and nutrition security. Cooperation over the last decade has focused on key commodities which offer opportunities for pro-poor trade at national, regional and continental level. The sector has been supported by the EU through several programmes and instruments, such as the “Trade and Agriculture Support Programme I and II”, the “Southern Agricultural Growth Corridor of Tanzania” (SAGCOT) initiative, the “EU Global Climate Change Alliance” initiative and the “Accompanying Measures for Sugar Protocol”.
Sustainable agriculture features as one of the three focal sectors of intervention in the current 11th EDF, with an indicative envelope of EUR 140 million. Within this framework, the EU supports development of different value chains, the commercial aquaculture sector in Lake Victoria and ways to tackle malnutrition. The National Bureau of Statistics also receives support (through the World Bank) to carry out the National Agriculture Sample Census, along with National Panel Surveys and Integrated Labour Force Survey.
In addition, the major new programme "Agri-Connect: Supporting value chains for shared prosperity" (EUR 100 million) will start in 2018. It will focus on tea, coffee and horticultural value chains. Its objective is to contribute to inclusive economic growth, increase food and nutrition security and promote private sector development and job creation in the agricultural sector and to in Tanzania.
The Regional Programme EU-EAC Market Access Upgrade Programme (MARKUP), implemented in Burundi, Kenya, Rwanda, Tanzania, Uganda, targets the same value chains from a regional perspective addressing both supply side and market access constraints, focusing mainly on the steps post-harvest to export, covering quality assurance and certification - including on voluntary sustainability standards, value addition, trade facilitation and business promotion.
Climate Change and Environment
Tanzania is highly vulnerable to the impacts of climate change, with - according to the new Agriculture Sector Development Plan II - 75-80% of the population relying on agriculture for their livelihoods, mostly rain-fed and hence climate sensitive. Strengthening resilience is therefore crucial to ensuring sustainable socio-economic development and food and nutrition security.
A major vehicle to support climate change actions is “Global Climate Change Alliance” (GCCA) programme, established by the EU in 2007 to strengthen dialogue and cooperation on adaptation and mitigation, with emphasis on emission reduction from deforestation and forest degradation and disaster risk reduction. The GCCA started its work in four pilot countries, including Tanzania, and has evolved today into a EUR 300 million programme implemented in 38 countries.
The EU promotes climate action through a wide range of initiatives, from policy and institutional development to community-based projects. This includes promoting innovative approaches in agriculture, livestock, water, energy and natural resource management in selected villages, such as agroforestry, rainwater harvesting, and fuel-efficient cooking stoves.
The EU has been at the forefront of wildlife conservation and in the fight against illegal wildlife trade, both domestically and globally, over the past decade. Since 2001, the EU has been the main financial supporter of Monitoring the Illegal Killing of Elephants (MIKE) Programme, which in Tanzania has worked in four sites: Selous/Mikumi, Ruaha/Rungwa, Katavi/Rukwa, Tarangire/Manyara.
EU is further working on decentralised and community-based natural resource management for wildlife, forest and marine ecosystems. Through a range of initiatives, the EU supports two Wildlife Management Areas (WMAs) in Western Serengeti and two in Kilombero and Lower Rufiji wetlands, participatory forest management in Kilimanjaro, Manyara and Morogoro regions and fisheries co-management in the coastal belt from Dar es Salaam to Mtwara.
The EU is a key partner in providing support for Infrastructure in Tanzania, in particular in the areas of energy, water and sanitation and transport.
In energy, a focal sector under the 11th EDF, support ranges from improving rural energy access through mini-hydro projects, biogas digesters and solar systems, to the development of transmission and distribution infrastructure, along with support to the Tanzania Electricity Supply Industry Reform Strategy and Roadmap. The EU is also supporting the development of capacities and skills in the extractive sector (oil and gas) and is one of the main contributors to the Extractive Industry Transparency Initiative (T-EITI).
In the areas of water and sanitation, the main objective of the EU engagement is to help achieve access to safe drinking water and basic sanitation, while improving water governance and the management of water resources and infrastructures. The impact of these interventions has directly improved the living conditions of 8% of the population. Projects have been concentrated in Mwanza, Mbeya, Iringa, Lindi, Kigoma, Sumbawanga and Dar es Salaam, as well as in several rural areas.
In the transport sector, the EU recognises that the availability of efficient and affordable transport is a crucial condition for economic development and poverty reduction. The EU is therefore supporting the development of transport infrastructure, especially rural roads and regional transport corridors, and is strengthening the technical and institutional capacity of authorities to define and implement effective and sustainable policies and maintenance strategies.