Press Release
4 September 2006
UK contributes £90 million to Tanzania
The UK Government’s Department for International Development has just contributed £90 million (approximately Tsh. 220 billion) to the Government of Tanzania. This is part of a three-year commitment of £310 million made by the UK to Tanzania in January 2006.
The funds will support the implementation of the Tanzanian Government’s National Strategy for Growth and Reduction of Poverty, or Mkukuta. British High Commissioner Philip Parham, and Head of DFID Tanzania David Stanton met Gray Mgonja, Senior Permanent Secretary at the Ministry of Finance on August 30 to mark the occasion.
The money will be provided in the form of General Budget Support (GBS), and will supplement the budget of the Government of Tanzania, allowing it to speed up the country’s progress towards reaching the Millennium Development Goals. The UK’s contribution forms part of a wider, five-year multilateral agreement between the Government of Tanzania and 14 development partners, including the UK.
Tanzania has seen progress in recent years in its fight against poverty. About 8 million children now attend primary school, which is about 96% of all children who are eligible to attend. The number of children who die before their fifth birthday has decreased by almost a quarter, and about 90% of infants have been vaccinated against measles.
“One major challenge for Tanzania now is to improve the quality of its social services, and to ensure that these services reach as many people as possible. Our £90 million contribution will help Tanzania address some of these challenges,” said Philip Parham.
The three-year UK commitment comprises £90 million for financial year 2006/07, £105 million for 2007/08, and £115 million for 2008/09. The money is to be paid in a single sum in the first quarter of each financial year, in line with the Government of Tanzania’s budgetary requirements.
"We’re particularly encouraged by reductions in child mortality, and progress in primary school education, although there’s still far to go,” said David Stanton.
“Budget support is the Government of Tanzania’s preferred aid modality. By making aid flows more predictable, we are helping Tanzania to invest confidently in the future, and help sustain its economic growth.”
"Our development co-operation with Tanzania is part of a broader partnership that includes trade and investment,” added Philip Parham. “The UK is one of Tanzania's largest sources of direct foreign investment. The partnership also includes efforts to support regional peace and security, as fellow members of the Commonwealth, and as close colleagues on the UN Security Council at a crucial time in international relations."
For further information, contact 020 7023 0600, e-mail: pressoffice@dfid.gov.uk or call our Public Enquiries Point on 0845 300 4100.
Notes to editors
The UK’s support for the Tanzanian budget has risen steadily in the past 5 years:
- £35 million ($50 million) in 2001/02
- £45 million ($71 million) in 2002/03
- £60 million ($100 million) in 2003/04
- £65 million ($121 million) in 2004/05, and
- £85 million ($150 million) in 2005/06.
On January 14, 2006 the Government of Tanzania and 14 General Budget Support donors signed a Partnership Framework Agreement (PFM) which governs how GBS will work for the next 5 years. The UK’s announcement of the £90 million payment is in accordance with the agreements in the PFM, whereby donors commit to increase the predictability of aid flows by indicating their contributions three years in advance.
The 14 development partners supporting Poverty Reduction Budget Support (PRBS) are:
- African Development Bank
- Canada
- Denmark
- the European Union (EU)
- Finland
- Ireland
- Japan
- Germany
- the Netherlands
- Norway
- Sweden
- Switzerland
- United Kingdom, and
- the World Bank.
