U.S. Says Aid To Country Rises
[Note from Blog Administrator: I would like to propose a new title for this article. How about "Tanazania for Sale".]
The Citizen (Dar es Salaam)
27 December 2007
By Costantine Sebastian
US aid to Tanzania rose to $648 million (Sh725 billion) - nearly 30 per cent more from that of the previous fiscal year which ended last September.
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“This fiscal year [October 1, 2007 to September 30, 2008], the overall US Government direct ($392 million) and multilateral assistance to Tanzania will be $648 million [more than half a billion US dollars or over Sh725 billion],” public affairs official Jeffery Salaiz of the US embassy in Dar es Salaam told BusinessWeek.In fiscal year 2007, it provided about $500 million through official development assistance (Oda) and via contributions to multilateral organizations working in the country.
Part of the current aid will be provided under the Millennium Challenge Corporation (MCC) Compact which is expected to be signed next month.
The MCC’s $697 million, which covers five years, seeks to strengthen the country’s roads, energy and clean water.
He said the ultimate goal of the MCC funds is to stimulate economic growth and increase opportunities for foreign direct investment (FDI) toward the further reduction of poverty.
US Department of Commerce figures show that American FDI to Tanzania averaged $20.8 million between 2001 and 2005. It was $21 million and $22 million in 2001 and 2002 before falling to $18 million in 2003 and then surged to $22 million and $21 million in 2004 and 2005 respectively.
The total value of FDI in the country last year was $473 million up from $325 million in 2005.
Through programmes as diverse as Usaid, the Millennium Challenge Corporation, the President’s Emergency Plan for Aids Relief (PEPFAR), the Presidential Malaria Initiative (PMI), the Department of Defence’s Humanitarian Assistance programme and the State Department’s small grant funds, the United States government is helping Tanzania strengthen its democratic tradition, he said.
“Our largest assistance is the PEPFAR. Since its inception in 2003, PEPFAR has contributed over $500 million in Tanzania towards combating the dreaded scourge of HIV/Aids. This fiscal year, the United States Government expects to increase PEPFAR assistance by an additional $303 million,” he noted.
According to him, the breadth of activities in which the US is partnering with the government is vast. Apart from combating HIV/Aids and malaria, the assistance programme also includes increasing education performance in math and science, conserving Tanzania’s ecosystems, and building its peacekeeping capacity.
The link between development and democracy underpins the United States Government’s support for Africa as a whole and this region in particular, he explained.
MCC Compact is the latest major US initiative on the horizon, he said. Under it, the US is supporting democratic development through the Millennium Challenge Account initiative.
“We are channelling our foreign assistance to responsible leaders who govern justly, advance economic freedom, and invest in their people. Once signed, implementation of the proposed compact will strengthen Tanzania’s infrastructure network (roads, energy and clean water) to stimulate economic growth and increase opportunities for FDI toward the further reduction of poverty,” he said.
The external finance sector has an important role in the economic development of Tanzania because of the country’s limited capacity to generate adequate domestic resources thus the need for external aid to complement the country’s own resources.
Donor assistance accounts for about 41 per cent of the government budget and net Oda to the country in 2001-2003 averaged US$1.4 billion with external resource requirements to meet the millennium development goals amounting to $2.5 billion a year during 2005 -15.
Tanzania has received aid to support development in most sectors, with a changing emphasis over time from agriculture and transport in the 1960s to industry and energy in the 1970s. Currently, the focus is moving towards pro-poor expenditures, such as support to health and education, as well as development management.
Despite the volume of aid received, Tanzania is still considered as one of the poorest aid dependent countries.
By Costantine Sebastian
US aid to Tanzania rose to $648 million (Sh725 billion) - nearly 30 per cent more from that of the previous fiscal year which ended last September.
“This fiscal year [October 1, 2007 to September 30, 2008], the overall US Government direct ($392 million) and multilateral assistance to Tanzania will be $648 million [more than half a billion US dollars or over Sh725 billion],” public affairs official Jeffery Salaiz of the US embassy in Dar es Salaam told BusinessWeek.
In fiscal year 2007, it provided about $500 million through official development assistance (Oda) and via contributions to multilateral organizations working in the country.
Part of the current aid will be provided under the Millennium Challenge Corporation (MCC) Compact which is expected to be signed next month.
The MCC’s $697 million, which covers five years, seeks to strengthen the country’s roads, energy and clean water.
He said the ultimate goal of the MCC funds is to stimulate economic growth and increase opportunities for foreign direct investment (FDI) toward the further reduction of poverty.
US Department of Commerce figures show that American FDI to Tanzania averaged $20.8 million between 2001 and 2005. It was $21 million and $22 million in 2001 and 2002 before falling to $18 million in 2003 and then surged to $22 million and $21 million in 2004 and 2005 respectively.
The total value of FDI in the country last year was $473 million up from $325 million in 2005.
Through programmes as diverse as Usaid, the Millennium Challenge Corporation, the President’s Emergency Plan for Aids Relief (PEPFAR), the Presidential Malaria Initiative (PMI), the Department of Defence’s Humanitarian Assistance programme and the State Department’s small grant funds, the United States government is helping Tanzania strengthen its democratic tradition, he said.
“Our largest assistance is the PEPFAR. Since its inception in 2003, PEPFAR has contributed over $500 million in Tanzania towards combating the dreaded scourge of HIV/Aids. This fiscal year, the United States Government expects to increase PEPFAR assistance by an additional $303 million,” he noted.
According to him, the breadth of activities in which the US is partnering with the government is vast. Apart from combating HIV/Aids and malaria, the assistance programme also includes increasing education performance in math and science, conserving Tanzania’s ecosystems, and building its peacekeeping capacity.
The link between development and democracy underpins the United States Government’s support for Africa as a whole and this region in particular, he explained.
MCC Compact is the latest major US initiative on the horizon, he said. Under it, the US is supporting democratic development through the Millennium Challenge Account initiative.
“We are channelling our foreign assistance to responsible leaders who govern justly, advance economic freedom, and invest in their people. Once signed, implementation of the proposed compact will strengthen Tanzania’s infrastructure network (roads, energy and clean water) to stimulate economic growth and increase opportunities for FDI toward the further reduction of poverty,” he said.
The external finance sector has an important role in the economic development of Tanzania because of the country’s limited capacity to generate adequate domestic resources thus the need for external aid to complement the country’s own resources.
Donor assistance accounts for about 41 per cent of the government budget and net Oda to the country in 2001-2003 averaged US$1.4 billion with external resource requirements to meet the millennium development goals amounting to $2.5 billion a year during 2005 -15.
Tanzania has received aid to support development in most sectors, with a changing emphasis over time from agriculture and transport in the 1960s to industry and energy in the 1970s. Currently, the focus is moving towards pro-poor expenditures, such as support to health and education, as well as development management.
Despite the volume of aid received, Tanzania is still considered as one of the poorest aid dependent countries.
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