EU to give Tanzania 900bn/- between `08 -`13

NAIROBI
The European Commission will give Tanzania 900 billion/- ($793.6 million) between 2008 and 2013, mostly to help it boost trade, the EU office in Tanzania said yesterday.

Tanzania, with a population of about 40 million people, is one of Africa's biggest recipients of aid. Some 42 per cent of its 2007-08 budget is funded by donors.

``The EC will...launch its largest ever programme of support to growth and trade-related issues in Tanzania as part of a total budget for Tanzania...of 900 billion shillings,`` the EU office said in a statement.

``Around 90 per cent of the programme is dedicated to macroeconomic aid, support to the transport sector and a trade and agriculture focal area aimed at pro-poor growth,`` it added.

Tanzania is among African, Caribbean and Pacific (ACP) nations in talks with the EU ahead of signing an Economic Partnership Agreement (EPAS) trade deal by a December 31 deadline.

The EU wants to sign EPAs with Tanzania and nearly 79 other ACP countries to replace preferential deals that the World Trade Organisation has deemed illegal.

Opponents of the EPAs argue they will weaken developing economies, expose them to cheap European imports and cut government revenues earned from tariff.