DAR SET FOR 1.3 TRILLION/- GBS SUPPORT FROM EUROPEAN UNION

Dr Diodorus Kamala

Tanzania is to receive 626 million Euros (over 1.3tri/-) over the next six years, thanks to an agreement that Industry and Trade Minister, Dr Abdallah Kigoda, has signed with the European Union (EU).

The funds, allocated under 11 European Development Fund (11EDF), would be used by Tanzania in three sectors — general budget support, energy and agriculture.

Dr Kigoda signed the agreement during a week-long conference in Nairobi, Kenya, that had brought together 79 developing nations to discuss trade and economic concerns with the EU.

Tanzania’s Ambassador to BELUX (Belgium and Luxemburg) and Mission to the European Union Diodorus Kamala told the ‘Daily News’ from the Kenyan capital that the new aid-disbursement programme, under which Tanzania would get the 1.3tri/-, was passed.

During the meeting, he said, African, Caribbean and Pacific (ACP) countries discussed market access of agricultural commodities to Europe.

In particular, ACP countries were looking to protect preferential treatment for their cotton, sugar and banana exports. Under the cooperation framework, he said such development support is provided to ACP countries.

The last European Development Fund programme expired last year and delegates hashed out fresh details of the next programme that starts this year until 2020, he reported.

He noted that the cooperation between the EU and ACP countries is taking place under the framework of the Cotonou Agreement, which seeks to eradicate poverty and gradually integrate developing nations into the world economy.

ACP countries are currently negotiating new Economic Partnership Agreements (EPAs) with the EU with the deadline for conclusion of EPA talks set for October 2014. The agreements are meant to guarantee preferential treatment to the EU market.

Ambassador Kamala said EU Commissioner Andris Piebalgs signed the Euro 626 million European Union aid package for Tanzania for the 2014-2020 period. Under the previous 10 EDFs, Tanzania received Euro 600 million, which supported different programmes and projects in the country.

This follows the implementation of Cotonou agreement which is due to expire in 2020. According to the envoy, the agreement has three pillars, including trade, development cooperation and political dialogue.

Ambassador Kamala said the funds are budgeted under European Union 2014-2020 Multiannual Financial Framework and channelled to Tanzania under 11 European development fund (11 EDF).

The grants are for projects, which aim at promoting economical, cultural and social development of the African, Caribbean and Pacific and oversees countries, to strengthen peace and security and promote a stable and democratic political environment.

This programme is the second revision of the Cotonou Agreement and it is the followup of the EDF 10th (2008-2013). Most changes compared to the 10th EDF are financial ones.