Tanzania, US patch up relations

The United States has pledged $407 million aid to Tanzania, months after cancelling a similar payment due to an election that it said had violated the country’s commitment to democracy.

The U.S. Millennium Challenge Corporation (MCC) cancelled a $473 million aid package in March after elections in the Zanzibar archipelago that it said were not free and fair. It said at the time that other aid commitments would not be affected.

The U.S. embassy said the $407m would be disbursed this year to support the areas of health, agriculture, natural resource management, education, energy and democratic governance.

It is part of a five-year aid deal signed between the U.S. Agency for International Development (USAID) and Tanzania and constitutes half of the U.S. government’s expenditure on development in Tanzania, the U.S. embassy said.