Sweden to End Bilateral Development Aid to Tanzania by 2026

Dar es Salaam – Sweden has announced it will phase out bilateral development cooperation with Tanzania by August 31, 2026, as part of a major reorientation of its foreign aid priorities.

The Nordic country will also terminate aid programs to Zimbabwe, Mozambique, Liberia, and Bolivia, redirecting resources to increase support for Ukraine.

The current cooperation strategy between Sweden and Tanzania has been extended until the phase-out date to ensure continuity in ongoing programs.

Despite ending bilateral aid, Sweden will maintain a permanent presence in Tanzania through its embassy in Dar es Salaam, focusing on political affairs, trade, investment, and support for Swedish citizens.

Officials emphasized that the decision is not linked to recent events in Tanzania. "Tanzania remains an important partner for Sweden. Our engagement will continue through multilateral channels, including the European Union," they stated.

The announcement is part of a broader adjustment in Sweden’s development and foreign policy. Swedish officials have indicated plans to increase aid to Ukraine to at least 10 billion kronor (approximately $1.06 billion) in 2026.

"Ukraine is Sweden’s most important foreign policy and aid priority. There isn’t a secret printing press for banknotes for aid purposes and the money has to come from somewhere," Swedish officials said.

The measures are expected to free up more than 2 billion kronor over the next two years, earmarked for initiatives such as rebuilding Ukraine’s energy infrastructure. Sweden has already reduced aid to more than ten countries since 2022, including Burkina Faso and Mali.

Sweden remains a major donor of development and humanitarian aid, with a budget of 56 billion kronor per year over the last three years.

For the 2026–2028 period, the budget will be reduced to 53 billion kronor annually, with spending reprioritized to cover projects including immigration and repatriation costs, alongside international aid commitments.

Sweden’s decades-long development relationship with Tanzania has encompassed a wide range of social, economic, and governance initiatives. While bilateral cooperation will gradually end, multilateral collaboration and diplomatic engagement are expected to continue.