A day after the European Union (EU) adopted a resolution to suspend €156 million (about TSh 400 billion) in aid to Tanzania for the 2026 fiscal year, the government said it is closely monitoring the situation and assured citizens there is no cause for alarm.

Responding to the decision, Foreign Affairs Minister Ambassador Mahmoud Kombo said Tanzania would not face any financial crisis, emphasizing that the country’s budget is largely sustained by domestic revenue and other internal sources.

“Follow the discussions online to see how much funding we might lose. Tanzanians will not go hungry because of this. Compare the EU allocation with our annual budget and see what proportion it represents,” Kombo said.

For the 2025/26 national budget, Tanzania’s total spending stands at TSh 56.49 trillion, with key sources as follows:

• Domestic Revenue: TSh 40.47 trillion
• Domestic and External Loans: TSh 14.95 trillion
• Foreign Grants: TSh 1.07 trillion

The EU resolution, passed with 539 votes in favour, none against, and 27 abstentions, called for the suspension of planned aid disbursements amid what it termed governance and human rights concerns.

Tanzania, however, maintains that its fiscal stability and social programmes will continue uninterrupted despite the EU decision.