After losing development support from the US Millennium Challenge Corporation (MCC) in the past seven years, Tanzania has convinced Washington to review its earlier decision to suspend funding to key social and economic projects in the country.

The MCC Board has put Tanzania among African countries to get financial and institutional support after closing its offices in Dar es Salaam in 2016 in protest against the general election results in Zanzibar.

The MCC had invested $700 million in electricity production and supply to urban and rural areas between 2008 and 2013.

Read (from the Archives): Tanzania says "not surprised" by US aid cut

Other key projects were roads, water supply in rural areas, education and health services.

The US embassy in Dar es Salaam said this week that Tanzania had demonstrated renewed commitment to advancing critical reforms to strengthen democracy, protect human rights and fight corruption. 

The MCC Board has, therefore, decided to partner with Dodoma to focus on policy and institutional reforms aimed at reducing poverty and promoting economic growth.

Global poverty

Established in 2004, MCC is an independent US government agency working to reduce global poverty through economic growth through grants and assistance to countries that execute good governance, fight corruption and respect democratic rights. The reinstatement of the MCC funding comes a year after President Samia Suluhu Hassan met with the MCC Chief Executive Alice Albright in Washington DC on December 14, 2022.

President Samia has reversed some contentious measures that restricted democratic space, proclaiming a 4R philosophy—reforms, reconciliation, rebuilding and resilience, targeting to change the politics and economics in the country.

Read: Two years of Samia’s reforms in Tanzania

Finance Minister Mwigulu Nchemba has visited the MCC in the US three times in the past two years, lobbying for the reinstatement of funding.

The MCC directors said shortly after the 2015 General Election that the government had ignored the concerns of the US and the international community over the voting in Zanzibar, which the opposition Civic United Front claimed to have won but Dodoma authorised a re-run-in favour of the ruling Chama Cha Mapinduzi. By Apolinari Tairo, The East African