The objective of Norway’s development policy is to fight poverty and bring about social justice. In 2009, a total of NOK 25.7 billion (equivalent to Tshs. 6 trillion or USD 4,3 billion) was spent on official development assistance. This represents an increase of 12 percent from 2008. Development assistance provided in 2009 amounts to 1.06 percent of GDP (Gross Domestic Product), which means that Norway for the first time since 1994 reached the official target of providing more than 1 percent of GDP as development assistance. The largest increase was directed towards activities for refugees within Norway (NOK 2.5 billion), in addition to climate change and forest projects (NOK 1.9 billion). Other main sectors include governance and civil society, peace and conflict resolution, in addition to health and education.
2009 was also a record year for Norwegian development assistance to Tanzania. A total of NOK 731 million (equivalent to Tshs. 169 billion or USD 122 million) was used to support a wide range of development activities on the mainland and in Zanzibar. In terms of financial support, Tanzania is now Norway’s main partner country, not only in Africa but also globally. Health and energy are important sectors in the development cooperation programme and environmental protection including climate change/forestry is an emerging area. Norway is also providing substantial funds as General Budget Support to the Government of Tanzania (NOK 265 million).
Most of the Norwegian development assistance funds are channelled through Government institutions, mainly through bilateral agreements with the Ministry of Finance and Economic Affairs. However, a substantial part of the development programme is managed through agreements with civil society and private sector institutions. UN organizations in Tanzania are also important partners.
One of the largest Norwegian funded projects in Tanzania is the Submarine Cable from Tanga to Pemba, which will provide electricity to the Northern island of Zanzibar. Total Norwegian support to this project amounts to NOK 300 million, where NOK 141 was disbursed in 2009. The cable is now in place and is expected to be officially opened in May 2010.