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Tanzania: EU Gives Sh900 Billion in Budget Support
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The Citizen (Dar es Salaam)
8 May 2008
Posted to the web 8 May 2008
Polycarp Machira
Finance and Economic Affairs minister Mustafa Mkulo chats with the Head of the European Commission Delegation in Tanzania,Ambassador Tim Clarke,at the launch of the National Strategic Paper and Country Indicative Programme in Dar es salaam yesterday
EU gives Sh900bn in budget support
The European Union yesterday pledged to give Tanzania 555 million euros (Sh950 billion) in support of the national budget, but urged the country to intensify the war against grand corruption.
The EU, through the European Development Fund (EDF), is expected to provide the money in the form of grants under the National Indicative Programme (NIP).
The decision comes just a week after some Western donor countries threatened to stop supporting the budget after being "hocked by revelations on grand corruption" in the country.
But speaking in Dar es Salaam on Tuesday, the head of the European Union Delegation in Tanzania, Mr Tim Clarke, said EU had decided to support the country's budget after exhaustive consultative meetings between the EU and the Government.
"We have been concerned about corruption, but after having discussions with the minister of finance last week finally we have agreed to work together," Mr Clarke said.
Announcing the budget support, Mr Clarke said the EU was seeking a proactive approach, a sense of urgency and commitment and a desire to end the causes of corruption in the country.
Ambassador Clarke said that much as the Government had taken steps to combat corruption, there was still a need for more efforts to root out the evil.
He, however, noted that there was no country in the world that would boast of immunity to corruption, adding that measures to curb the problem would encourage donors to support developing countries.
"We are encouraged by the steps that have been taken so far and will continue to be vigilant .We have to succeed! There can be no 'Plan B'. All money coming from government coffers must be accounted for and transparency upheld," Mr Clarke said at the launch of the 10th EDP country support strategy and indicative programme.
This is the European Commission's largest ever support to Tanzania, covering the 2008 to 2013 period. It was signed last December during the Africa-European Union summit in Lisbon.
"The whole programme amounts to over Sh1 trillion, let there be no mistake, our aim is to make a difference by focusing on areas where our organisation has experience and expertise and complementing the substantial bilateral aid programme from EU member states," added Mr Clarke.
He looked at the regional context of Tanzania, where within the next year EU will announce major new packages of support, both to the East African Community and SADC.
The programme launched yesterday was conceived within the framework of Joint Assistance Strategy for Tanzania (Jast). Tanzania is the first country in the world in which the European Commission has aligned itself formally with a joint programme of the type.
It foresees significant direct support to the government budget, linked to specific poverty reduction objectives and boost other areas like trade, agriculture and transport.
On his part the minister for Finance and Economic Affairs, Mustafa Mkulo said the country support strategy (CSS) launched yesterday is underpinned by the central objective of reducing poverty through accelerating sustainable economic growth, social development, and reinforcing governance and accountability.
He said during the six year period (2008-2013) 80 per cent of the allocated funds from the EU will be channeled through the general budget support which is the government's preferred aid modality in line with Tanzania Joint Assistance Strategy and Paris Declaration on Aid effectiveness. The remaining 20 per cent of the fund will be for other project support.
Meanwhile, Tarime MP Chacha Wangwe yesterday asked Mr Clarke to prove his statement that the Government was committed to combating corruption.
He also wanted the Minister for Finance to clearly state what showed that the Government had a strong will to fight the evil.
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"EU has been all along having close ties with the Government, full of corrupt leaders. Could I be right if I say that the EU has vested interests in the Government, and in one way supports corruption in the country?" he asked Mr Clarke.
In response, Mr Clarke said EU had respect for the Tanzanian government and democracy, saying EU institutions had nothing to do with corruption in any part of the world.
The ambassador said from what he witnessed in parliament recently, the august House is doing a good job to instill democracy through open and democratic debates, coupled with solidarity among MPs when it comes to discussing issues of national interest.
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