TANZANIA has commended the European Union (EU) for its continued role as one of the country’s major strategic development partners, particularly in supporting budgetary initiatives and key sectors.

Dr Natu El-Maamry Mwamba, Deputy Permanent Secretary in the Ministry of Finance, made the remarks yesterday in Dar es Salaam during the opening of a Budget Support Dialogue meeting for the Finance for Growth Programme. The session brought together experts from Tanzania and the EU.

Dr Mwamba acknowledged the EU’s significant contributions to Tanzania’s development, highlighting that for the previous financial year (2023/24), the EU provided €40.819 million to support key sectors, including energy, the blue economy, digitalization, gender equality, and the Green and Smart Cities project.

“We have witnessed remarkable progress under this program, from policy development to tangible achievements, including monitoring the implementation of Phase Four of the Public Financial Management Reform Programme, the Corporate Plan-6, and the Financial Sector Development Master Plan,” Dr Mwamba said.

She further emphasized that the EU’s support has been instrumental in areas such as completing the National Green Bonds Framework, establishing the National Venture Capital Fund, reducing the tax estimate ratio, increasing taxpayer registration, and boosting the percentage of loans to Micro, Small, and Medium Enterprises (MSMEs) relative to the total loans provided by banks and microfinance institutions.

Marc Stalmans, Head of the EU Cooperation Office in Tanzania, expressed gratitude for Tanzania’s continued role as a strong and reliable EU partner, effectively managing initiatives that benefit its citizens.

“Tanzania is a very close partner of the EU in the economic sector, and we highly value our partnership,” Stalmans said. “Our cooperation will only strengthen in the future.”

He also praised Tanzania’s economic performance, noting that the country has managed to maintain its debt level below 40 percent, a favourable position compared to other East African nations. He further highlighted the growing opportunities in Tanzania's private sector, which is playing a key role in driving economic growth.

The meeting was attended by several key officials, including Sauda Msemo, Deputy Governor of the Bank of Tanzania; James Msina, Assistant Commissioner of External Finance; Dionisia Mjema, Assistant Commissioner of the Financial Sector Development Department at the Ministry of Finance; Benjamin Magai, Chief Internal Auditor of the Government (IAG); Jonathan Mpuya, Head of Cooperation between Tanzania and the EU, and other experts.