THE European Union (EU) has announced a grant of nearly 100bn/- (euro 33.12m) to enhance the resilience of specific groups in the economy.

A statement issued yesterday by the EU mission in the country said that the disbursement is aimed at fostering socio-economic development, in support of ongoing sectoral reforms.

The funding is allocated across five sectors significant for the country's growth and stability including blue economy, green and smart cities, gender, digital transition and financial sector growth. 

For the blue economy, the grant will be used in developing a climate-resilient environment along the coastal regions, including Zanzibar and Pemba islands, with a focus on seashore resilience, it said.

The funds will similarly support governance reforms, civil service capacity building, enhancing inter-ministerial coordination led by the Treasury and the Environment department in the Vice President’s Office (VPO), it said.

Funding for green and smart cities is focused on promoting sustainable urban development in Mwanza, Tanga and Pemba urban centres, to improve living standards by enhancing environmental sustainability.

It will also create economic opportunities and improve public services, especially those targeting women and youth, it said, pointing at gender funding as dedicated advancing gender equality and empowering women and girls.

It is also designed to address gender-based violence, promote economic empowerment and support women's participation in leadership and decision-making processes, the delegation noted.

In enhancing digital development, the funds will be used to leverage the digital shift in medical record keeping and other areas for faster growth and improved public services, it said.

A portion of the grant will be used to expand the government communications network and enhance cybersecurity measures in line with the Personal Data Protection Act, the statement indicated.

The digital shift support component will contribute to the transformative impact digitalisation in public service delivery and economic empowerment, it said, noting that this allocation of budget support will contribute to supporting over 300 ministerial units in terms of government departments, public agencies and local government authorities.

The purpose is to improve connections and use shared resources through the e-Government mechanism, it stated, explaining that the financial growth segment will focus on improving fiscal governance and access to credit in lending institutions.

This involves enhancing domestic resource mobilisation, uplifting credit market layouts and promoting public-private dialogue to enable micro, small and medium enterprises to operate in a better environment, notably, firms operated by women and youth.

Finance for growth is intended to promote better fiscal governance and access to finance to catalyse green, inclusive and sustainable development, improving on effective, efficient and accountable mobilisation and management of gender- and climate-sensitive public finances, it further noted.

The action will focus on enhancing domestic resource mobilisation, public financial management and skills development especially for data-driven and digital transitioning financial institutions, it explained.

There will be a specific focus on MSMEs, women and youth and the market segments of microfinance, capital markets, green finance and fintechs, it elaborated.

The financial assistance being extended is part of the EU's ongoing partnership with the government, aligning with the EU's Global Gateway strategy, bolstering infrastructure and development through public and private sector investments, it affirmed.

“The EU's support highlights a shared commitment to Tanzania's development vision and the EU's broader strategic goals,” it specified, reaffirming support for Tanzania's growth and development. 

Christine Grau, the EU ambassador, said that these funds are not just an investment in the present but a commitment to the country's future.

 “By focusing on areas such as the blue economy, urban development, gender equality, digitalisation and financial growth, we are helping to build a more resilient and prosperous Tanzania,” she added.