- Sweden has announced the date when it will cease its bilateral development cooperation with the East African nation, Tanzania
- The Nordic country explained how it will use the funds freed from Tanzania, noting that they will be channelled to a European country
- Sweden continues to be a significant donor of development and humanitarian aid, but plans to reduce its budget over the next two years
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
As part of a broader reorientation of its foreign aid priorities, Sweden has stated that it will phase down bilateral development cooperation with Tanzania by August 31, 2026.
Source: Twitter
about additional disruption, as
The Nordic nation will also stop providing aid to Bolivia, Mozambique, Zimbabwe, and Liberia to free up funds to support Ukraine.
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Sweden and Tanzania have extended their current collaboration plan until the phase-out date to ensure continuity in ongoing programmes.
Why is Sweden cutting development aid to Tanzania?
The Citizen reported that the Swedish government intends to boost funding to Ukraine to at least $1.06 billion (KSh 137 billion) in 2026, according to Benjamin Dousa, the Minister of International Development Cooperation and Foreign Trade.
“The government will increase funding to Ukraine to at least $1.06 billion in 2026 because Ukraine is Sweden’s top foreign policy and aid policy priority,” Dousa stated, as reported by Daily Nation.
Despite the change, Sweden will continue to maintain a permanent presence in Tanzania through its Dar es Salaam embassy, focusing on trade, investment, political matters, and assistance to Swedish nationals.
Officials emphasised that the decision was unrelated to recent developments in Tanzania, which was rocked by post-election violence leading to the deaths of thousands of people.
“Tanzania continues to be a significant ally of Sweden. We will continue to participate through multilateral forums, such as the European Union,” Dousa reiterated.
The declaration is part of a shift in Sweden’s foreign and development policies.
Source: Twitter
How much funding will Sweden free?
Over the next two years, the measures are expected to free up more than 2 billion kronor (KSh 27.5 billion), which will be used for projects including repairing Ukraine’s energy infrastructure.
Since the current government entered power in 2022, Sweden has already cut aid to over 10 nations, including Mali and Burkina Faso.
With a budget of 56 billion kronor (KSh 769.4 billion) annually during the past three years, Sweden continues to be a significant donor of development and humanitarian aid.
The budget will be cut to 53 billion kronor (KSh 728.2 billion) per year for the 2026-2028 period, and expenditures will be reprioritised to pay for international aid commitments as well as programmes like immigration and repatriation expenses.
Has Tanzania’s tourism been affected?
As earlier reported by TUKO.co.ke, Tanzania’s beautiful beaches and safari resorts are more deserted than usual as the nation assesses the damage to its vital tourism industry following the post-election chaos.
Days of violent protests followed the October 29 election due to claims that President Samia Suluhu Hassan had manipulated the results.
There are concerns about additional disruption, as new rallies are scheduled for December 9.
Source: TUKO.co.ke
