March 30, 2016:
Fumbuka Ng’wanakilala of Reuters in Dar es Salaam has reported that the Millenium Challenge Corporation (MCC), a US aid agency has suspended approximately $472.8 million of funding for Tanzania because of the disputed March 20, 2016 elections in Zanzibar, in which the ruling party candidate was declared winner. The Civic United Front, the main opposition party in the archipelago, boycotted the election re-run on the grounds that they had won the October 25, 2015 election.
“Tanzania has engaged in a pattern of actions inconsistent with MCC’s eligibility criteria”, the agency said. The money had been intended for supporting development of the energy sector.
In 2008, Tanzania received a five-year grant of $698 million from MCC. The money was used to fund water, roads and power projects. A Tanzania government official told Reuters that the canceled funding was marginal and would not have a direct impact on the 2016/17 national budget.