The European Union and Tanzania: Investing Together in a Shared Future

Tanzania is entering a new era. With Vision 2050, the country has set out an ambitious roadmap to become a competitive, industrialised and middle-income economy powered by innovation, sustainable growth and private sector development. Strong macroeconomic fundamentals, political stability, abundant natural resources and a strategic location at the heart of East Africa make Tanzania one of the continent's most promising investment destinations.

The European Union is proud to be a long-term partner in this transformation.

Through Global Gateway, the EU's investment strategy, Europe and Tanzania are building a modern partnership based on shared prosperity, mutual economic interests and sustainable investment. Rather than traditional development cooperation, the partnership focuses on unlocking opportunities for businesses, strengthening value chains, mobilising private investment and creating quality jobs on both continents.

The EU is Tanzania's second-largest trading partner, one of its largest sources of foreign investment and a trusted partner for sustainable economic growth. Together with Team Europe — bringing together the European Union, its Member States, the European Investment Bank and European development finance institutions — the partnership combines grants, loans, guarantees and technical expertise to accelerate transformational investments.

Between 2021 and 2027, the EU is mobilising over €585 million in bilateral cooperation, complemented by around €400 million in regional programmes, while leveraging significantly larger public and private investments through the Global Gateway strategy.

The European Union is Tanzania's second-largest trading partner, one of its largest foreign investors and a trusted long-term partner. Today's partnership goes beyond development cooperation. It aims to strengthen industrial cooperation, diversify value chains, facilitate trade and mobilise investment that benefits both Tanzania and Europe.

A key strength of the European approach lies in its ability to mobilise the entire Team Europe ecosystem. Alongside the European Union, Member States, the European Investment Bank (EIB) and numerous European development finance institutions—including AFD, KfW, Proparco, FMO, Finnfund, IFDA and others—work together with European businesses to support Tanzania's economic transformation.

Through grants, concessional finance, blending operations, EFSD+ guarantees, technical assistance and policy dialogue, the partnership helps reduce investment risks, attract private capital and deliver projects at a scale that public funding alone could never achieve.

European companies also bring cutting-edge technologies, industrial expertise and responsible business practices, making them valuable long-term partners for Tanzania's industrial ambitions.

Agriculture remains at the heart of Tanzania's economy—and of its industrial future.

The EU partnership helps farmers, cooperatives and agribusinesses move up the value chain through improved processing, logistics, storage, quality standards and market access. It supports transformation in strategic sectors such as coffee, rice and cashew while strengthening sanitary and phytosanitary systems to facilitate exports to regional and international markets.

Around €329 million in Team Europe supports agriculture and livestock, including €277 million in EU grants.

By combining investment, innovation, private sector partnerships and regulatory cooperation, the partnership helps Tanzanian agribusiness become more productive, competitive and integrated into regional and European markets.

Digital transformation is one of the strongest drivers of economic competitiveness.

Through initiatives such as Digital4Tanzania, TANTECH and wider support for connectivity, digital public services and innovation ecosystems, the EU is helping build the foundations of a modern digital economy.

Around €314 million in Team Europe supports digital connectivity, including €194 million in EU grants, while Digital4Tanzania alone represents €35 million, with an additional €20 million planned for future investments.

The partnership also creates opportunities for European technology companies, supports digital entrepreneurship and strengthens regulatory frameworks that encourage innovation and private investment.

Industrial transformation depends on reliable infrastructure.

The partnership therefore invests in clean energy, transport corridors, logistics, ports, electricity networks and access to finance, creating the enabling conditions for industrial development and regional integration.

A distinctive feature of the European approach is the mobilisation of large-scale investment through blended finance and EFSD+ guarantees, allowing development finance institutions and commercial investors to participate in projects that would otherwise remain too risky.

European development banks play a central role in financing strategic infrastructure while ensuring projects meet the highest international standards of quality, sustainability, transparency and financial viability.

These investments are helping farms, manufacturers, exporters and digital businesses operate in a more competitive environment while strengthening Tanzania's attractiveness for private investment.

The EU–Tanzania partnership is investing in greener, smarter and more resilient cities.

Through the Green and Smart Cities (SASA) initiative, support improves urban infrastructure, resilience, water and sanitation, solid waste management, sustainable mobility and local economic development in cities such as Mwanza, Tanga and Pemba.

Beyond improving quality of life, these investments enhance urban competitiveness and create new opportunities for businesses and investors.

Tanzania's coastline, marine ecosystems and inland waters represent significant economic assets.

The EU partnership supports a sustainable blue economy that promotes fisheries, aquaculture, maritime transport, coastal resilience and environmental protection while creating jobs and supporting inclusive growth.

With €819 million in Team Europe support—including €346 million in EU grants—the partnership combines public investment with private sector opportunities, helping transform natural resources into sustainable sources of economic growth.

Industrialisation requires skilled people as much as modern infrastructure.

The partnership therefore invests in skills, technical and vocational training, innovation, entrepreneurship, women's economic empowerment and youth participation.

From digital skills to vocational education linked to emerging value chains, these investments help Tanzanians seize the opportunities created by industrialisation while providing businesses with the skilled workforce they need.

Human capital is therefore an essential pillar of Tanzania's Vision 2050 and of the long-term EU–Tanzania economic partnership.

According to the Cotonou Agreement, political dialogue between the EU and each partner country is one of the main instruments to exchange views on internal and international developments. 

Dialogue on thematic policies is also important to exchange information and to orient future and ongoing cooperation. In fact, most of this dialogue takes place between the EU Delegation and the Tanzanian line Ministries in the framework of the development cooperation or of trade issues. 

Contractual relations between the United Republic of Tanzania and the European Union (EU, then European Economic Community, EEC) were first established in 1975 with the first Lomé Convention between the EEC, its Member States and the African, Caribbean and Pacific (ACP) countries. After the expiry of the fourth Lomé Convention, the Cotonou Agreement was concluded in 2000 for a period of 20 years. A new EU-ACP Agreement is expected to enter into force in 2021. 

The Cotonou Agreement rules political, trade, economic and cooperation relations. 

The Delegation of the EU (then Delegation of the European Commission) in Tanzania was established in 1991.