Tanzania And UK Signed GBP 110 Million MoU On Social Development For The Next Five Years

tanzania-uk-productive-social-safety-net

The Governments of the United Kingdom and Tanzania have recently signed a Memorandum of Understanding (MoU) on social development representing a total investment of GBP 110 million.

The fund will be provided through the British Department for International Development (DFID) over the next five years and will support the Productive Social Safety Net (PSSN) program, which aims at reaching one million of Tanzania’s poorest households.

The program consists on secure a basic income, guarantee a minimum of 60 paid-days of labour a year and promotes education and healthcare among the children.

By providing a conditional cash transfer, green public works and livelihood enhancement the program expects to improve opportunities to the poorest communities in Tanzania by the year 2020.

More than 28% of the population live in poverty in Tanzania and the Government expects to reduce it to 14% within the next five years with the PSSN program, Ministry of Finance Permanent Secretary, Dr. Servacius Likwelile, explained to the press after the signing of the MoU.

According to DFID, GBP 87,639 have been already released for technical and advisory services and GBP 30 million more would be release in the next 12 months to start with the provision of conditional cash transfers to secure food and children’s attendance to school.

Tanzania ranks fifth in the top five countries receiving UK’s aid through the DFID with 48 active projects totaling GBP 178 million and Pakistan topping the list with 32 active projects totaling GBP 368 million according to DFID.

Want to know more about the Economy in Tanzania? Our free Tanzania Business and Investment Guide 2026 covers the Economy, plus regulations, key sectors, and investment opportunities—all in one place.

Download Free Guide
Related Posts
Tanzania budget 2026 2027 private sector review
Read More

Tanzania Private Sector Embraces 2026/27 Budget Reforms but 10% GDP Growth Needed to achieve Vision 2050

The Tanzania Private Sector Federation (TPSF) and the Confederation of Tanzania Industries (CTI) welcomed several business and tax reforms in Tanzania's 2026/27 Budget, including faster VAT refunds, investment incentives, and regulatory simplification. However, private sector leaders said economic growth will need to accelerate from the targeted 6.3% in 2026 to more than 10% annually to achieve the Tanzania Development Vision 2050 goal of becoming a USD 1 trillion economy.
Tanzania Khamis Mussa Omar Parliament bunge
Read More

Tanzania 2026/27 Budget of TZS 62.33 Trillion Targets 6.3% GDP Growth and Investments in Railways, Offers New Businesses One-Year Tax Holiday

Tanzania's 2026/27 budget is set at TZS 62.33 trillion (USD 24 billion), up 10.3% from the previous financial year, targeting 6.3% GDP growth with 74.2% financed from domestic revenue as grants fall 39.1%. Key investor measures include halving the deemed profit-distribution tax from 30% to 15%, a one-year income tax holiday for newly registered businesses, retained VAT deferment on imported capital goods, and VAT exemptions across compressed natural gas, electric vehicle charging equipment, and LPG infrastructure.
Samia Suluhu Hassan Tharman Shanmugaratnam
Read More

Tanzania and Singapore Sign Double Tax and Other Agreements, TISEZA Hosts Business Forum to Strengthen Trade and Investment

Tanzania and Singapore signed five agreements and memoranda of understanding during President Tharman Shanmugaratnam’s state visit to Tanzania, covering taxation, trade facilitation, public service capacity building and diplomatic cooperation. The two countries also reaffirmed plans to deepen collaboration in investment, digital transformation, logistics, financial services and industrial development as bilateral trade reached USD 74 million and Singaporean investments in Tanzania exceeded USD 535 million.
Kitila Mkumbo Parliament Bunge
Read More

Tanzania Planning and Investment Budget 2026/2027 Backs New Investment Policy and Diaspora Bonds, with Five Strategic SEZs to Draw TZS 797 Billion

Beyond a new National Investment Policy 2026 and five strategic Special Economic Zones expected to draw over TZS 797 billion, Tanzania's TZS 144.85 billion Planning and Investment Budget 2026/27 sets a target to make the country a leading African vehicle producer by 2030 and creates Youth Industrial Special Economic Zones across six regions. Flagship projects already underway include Hengya Cement (USD 530 million), Airtel's USD 480 million 5G rollout, and Songea Sukari's USD 352 million sugar complex.