By Mussa Juma
The decision by former U.S. President Donald Trump to suspend a significant portion of aid from the United States Agency for International Development (USAID) has disrupted projects worth more than TZS 1 trillion across Tanzania, forcing the closure of several civil society organizations (CSOs) and leaving hundreds of workers unemployed.
In February this year, Mr. Trump announced the suspension of up to 80 percent of USAID-funded projects in various countries as part of a broader effort to cut government spending.
According to a new study by the Tanzania Human Rights Defenders Coalition (THRDC), at least 50 percent of CSOs in Tanzania that previously received USAID funding have been severely affected by the decision.
Presenting the preliminary findings during Civil Society Week 2025 held in Arusha, THRDC National Coordinator, Advocate Onesmo ole Ngurumwa, said some of the hardest-hit organizations were those involved in health, human rights, democracy, environmental protection, water, and religious outreach.
“We have seen organizations closing offices, downsizing staff, and others facing serious financial constraints. This year is an election year, and traditionally, USAID supported voter education and election observation through CSOs. With funding gone, their participation will be significantly limited,” said Mr. Ngurumwa.
He noted that the overall contribution of the civil society sector to the national economy is expected to drop by more than 50 percent.
In 2023, the sector’s contribution was estimated to exceed Sh2 trillion, with USAID being one of the largest donors.
“Tanzania received about $630 million (roughly Sh1.61 trillion) from USAID in 2023, placing the country among the top 20 recipients globally, ranked 10th in both the world and Africa. We plan to meet with the U.S. Embassy in Tanzania for further clarification,” he added.
Mr. Ngurumwa stressed that the USAID exit is a wake-up call for Tanzanian CSOs to start developing sustainable financing models and reduce over-reliance on foreign aid.
“We’re engaging in discussions during this Civil Society Week to explore alternative strategies and build the resilience of local organizations amid reduced support from international partners,” he said.
He also noted that the withdrawal has broader economic implications, reducing the flow of U.S. dollars into the country.
“Roughly $500 million earmarked for civil society, private companies, and development projects in 2024 has now been frozen pending new instructions from the Trump administration,” he said.
During the forum, civil society actors also raised concerns over a growing trend by major international NGOs to implement projects directly, without involving local CSOs.
While Mr. ole Ngurumwa said they do not oppose international organizations working independently, he urged them to collaborate with local partners to enhance capacity and ensure sustainability.
Justice Rutenge, Executive Director of the Foundation for Civil Society (FCS), echoed the concerns, saying most local organizations are facing financial hardship and must adopt new fundraising strategies and long-term sustainability plans.
He also said that the Civil Society Week discussions align with the country’s long-term vision—Tanzania Development Vision 2050, under the theme “Pathways to Progress”, which emphasizes inclusive growth and sustainable development.
Nesia Mahenge, Country Director for CBM International and chair of the Civil Society Week organizing committee, said the event brought together over 500 participants from Mainland Tanzania and Zanzibar, including stakeholders from the public and private sectors and development partners.
She said the aim was to strengthen collaboration for sustainable development and build synergies between civil society and government institutions.
Meanwhile, the Tanzanian government has recently downplayed fears that the USAID aid cut will directly impact its development budget.
Responding to a supplementary question in Parliament from Moshi Rural MP, Prof. Patrick Ndakidemi, Finance Minister Dr. Mwigulu Nchemba said the Tanzanian government does not have a government-to-government funding agreement with the U.S. for development projects.
“Funding from USAID was channelled through its institutions working with local organisations, not directly to the government. We’ve already assessed the broader implications of donor policy shifts and have taken steps accordingly,” Dr. Nchemba said.
He added that in recent years, Tanzania has shifted towards funding its development projects through domestic resources.
Over Sh220 billion has been allocated to plug funding gaps in key sectors, especially health, which has received over Sh88 billion to sustain ongoing projects.
“The government will continue implementing projects previously funded by development partners to ensure Tanzanians do not suffer from policy shifts by any donor,” he said.
Dr. Nchemba also emphasized that the government is enhancing domestic revenue collection and promoting public-private partnerships to reduce reliance on external funding.
“This approach helps to lessen the burden on government borrowing and minimize the impact of abrupt donor policy changes,” he said.
