By Evelyn Manu
Some matters are not sector-based – they immediately grab the attention of everyone, including Tax Advisers and Business Consultants like myself. The recent U.S. election outcomes is one such issue.
Historically, U.S. elections seemed to primarily concern Americans, politicians, and those with direct ties to the U.S. However, the narrative has drastically shifted, particularly with the 47th U.S. President, Donald Trump. His administration introduced a range of unprecedented policies, including a controversial ban on foreign aid—most notably withdrawing from the WHO and ceasing healthcare funding to other nations.
Many developing countries, including Tanzania, have relied heavily on U.S. funding, particularly through programs such as USAID, which have long supported crucial healthcare initiatives. The withdrawal of these funds signals a looming challenge in continuing the fight against diseases like Tuberculosis and HIV, which many nations cannot afford to treat on their own. Moreover, it has led to the employment suspension for millions of Tanzanians in US-funded projects.
The impact of such foreign policy decisions goes beyond healthcare—it seeps into our national economy, affecting employment, education, and overall development. The question now becomes:- How prepared are we as a country to withstand such global shifts? With Tanzania in the process of engineering its Vision 2050 national strategy, this is a pivotal moment to reflect on our long-term resilience and self-sufficiency.
Tanzania’s Vision 2050 aims to position the country as a middle-income economy with sustainable development across various sectors. However, as we lay the groundwork for this vision, we must ask: Are we building an economy that is self-reliant, or are we still vulnerable to external shocks such as the withdrawal of foreign aid?
As I contemplate, a few questions come to mind:
- Should we be concerned as a nation? This is not just about job losses, but about our capacity to manage the effects of aid withdrawal. This concern is not limited just to healthcare, rather extends to other critical sectors including education, food agriculture and security that heavily rely on external funding.
- Does our national budget, under the new 2050 strategy, account for such significant contingencies? Are we allocating adequate resources toward the key sectors, or are we still banking on foreign donations to keep our citizens safe?
- Is it time to reconsider our reliance on external funding? How can Tanzania create sustainable funding solutions without foreign aid? Should we explore innovative financing methods such as public-private partnerships, expand industrialization and local manufacturing, and provide financial incentives for Tanzanians to invest in key economic sectors such as manufacturing and agriculture?
- How do we ensure continued collaboration with global organizations while strategically reducing our dependence on any one country or donor? Should we diversify our partnerships? Would the approach create a more resilient funding model? How can we strike a balance between international cooperation and national self-sufficiency?
The changing landscape requires us to think critically about our future. Tanzania is at a crossroads. Will we continue to be subject to the policies of foreign nations, or will we use this as a wake-up call to prioritize self-reliance?
For too long, many African nations, including Tanzania, have depended on international aid and concessional loans to sustain key sectors. However, true economic independence requires a shift from being recipients of soft financing to becoming architects of our own development. Countries that have successfully transitioned from aid dependency such as Rwanda and China, have done so through strategic investment in local industries, innovation, and governance reforms.
Tanzania has the potential to follow suit. We boast an abundance of natural resources (minerals, metals and agriculture), a strategic location and access to global markets, untapped energy resources, natural wonders, a growing youthful population and increasing technological adoption. But these advantages will only be meaningful if we take deliberate steps to harness them effectively. The success of Vision 2050 and a transformed economy for the Tanzanians, hinges on the policies and choices we make today.
The conversation must extend beyond government policymakers, obtaining input from the private sector, civil society, and academia. We must engage in national discourse that fosters actionable solutions.
It’s time to move from reactive to proactive. Let’s shape Tanzania’s future with a clear, sustainable vision. A vision that ensures our nation remains strong, even in the face of global uncertainties.