Executive Summary

The United States is an important partner to Tanzania and the relationship between the two countries is built on three pillars: diplomacy, development and defense. However, the Tanzanian public has little information readily available to assess the value of this partnership in their daily lives, particularly as they measure progress toward achieving the development goals the country has set for itself in Tanzania’s Development Vision 2025. This report considers whether and how the U.S.-Tanzania partnership contributes to Tanzania’s growth and prosperity—both in the resources it mobilizes as well as in the outcomes it achieves.

The authors take a whole-of-society perspective in examining not only official development assistance (aid) but also private sector contributions via trade, tourism, investment, philanthropy, and remittances. This research analyzes historical financial flows from these U.S. sources to Tanzania over roughly a decade, from 2012 to 2022, and integrates insights on how Tanzanian public, private, and civil society leaders assess the partnership today from a survey and interviews. This analysis was produced by AidData lab, a U.S.-based research lab at the College of William & Mary’s Global Research Institute, in collaboration with REPOA, a Tanzanian policy research organization.

Following the money, U.S. government agencies, organizations, and individuals collectively contribute an estimated USD 2.8 billion annually (TZS 7,140 Bn) to Tanzania’s development. The U.S. government contributes approximately USD 1.0 billion annually (TZS 2,550 Bn), with a focus on the health, agriculture, and infrastructure sectors. In 2022, this included USD 824.2 million of direct bilateral and multilateral assistance and USD 205.3 million in indirect contributions from supportive U.S. policies. U.S.-based non-governmental sources contribute approximately USD 1.8 billion annually (TZS 4,590 Bn) including foreign direct investment (USD 1.3 billion), remittances from Tanzanians working in the U.S. (USD 103.7 million), tourism revenues (USD 317.7 million), private foundation giving (USD 96.3 million), as well as individual donations and microloans (USD 0.3 million).

Beyond these monetary gains, the United States-Tanzania partnership contributes to growth and prosperity in other significant ways.

• Economic competitiveness and productivity: Sixty-six percent of leaders surveyed said that their partnership with the U.S. was improving economic conditions in Tanzania, particularly highlighting local job creation, vocational training and education, trade and tourism flows, and upskilling technology expertise to enter new sectors. Companies such as Coca-Cola and Vodacom, among others, were seen as not only generating tax revenues and jobs, but also spurring local companies to grow and develop. Tanzania has developed its textile industry to capitalize on preferential trade policies to increase its duty-free textile exports 45-fold to the U.S. market in ways that also benefit exports to third countries. Tanzanian smallholder farmers are leading the way forward, supported by U.S. assistance, to increase agricultural yields and resilience. U.S. investments in expanding power generation capacity, extending grid connections, and supporting off-grid solar power also play a role in facilitating this economic activity.
• Quality of life and livelihoods: Tanzania has made dramatic inroads in improving life expectancy and reducing mortality for its population. Tanzanian leaders interviewed routinely cited U.S. government and private foundation investments in building their capacity to prevent and treat HIV/AIDS, malaria, tuberculosis, and other diseases as some of the most successful examples of partnership between the two countries. As a case in point: as the single largest provider of HIV/AIDS-related funding between 2003 and 2022, the U.S. played an important role in helping Tanzania save roughly ¾ of a million lives from deaths averted. U.S. foundational investments in basic education may have also contributed to Tanzania’s gains in literacy rates over the last two decades.
• Sustainable and democratic society: Tanzanian leaders surveyed also gave high marks to their partnership with the U.S. as improving governance (61 percent) and environmental conditions (59 percent) in the country. Respondents highlighted U.S. contributions to helping Tanzanian counterparts facilitate better access to quality services and ensure an open civic space through media freedom, access to justice, and participation in civic groups. Leaders also highlighted improvements related to the sustainable use of natural resources and reducing vulnerability to climate change