Samia warns of possible aid shortfall following poll chaos

She tasked members of the new Cabinet with working diligently to mobilise domestic resources, including leveraging natural resources such as minerals to attract financing.

She said the election-related violence could undermine the trust of development partners, prompting a shift from heavy donor dependence to increased domestic resource mobilisation.

“In my first term, financing was readily available because there was trust. What happened in our country has tarnished our image, and this could reduce donor confidence,” President Hassan said during a live broadcast.

“We must therefore use the resources we have to attract more funding and ensure that the projects we promised are delivered with speed.”

Her remarks referred to the unrest on October 29, 2025, when Tanzanians went to the polls to elect the President, Members of Parliament, and Ward Councillors.

The unrest erupted in Dar es Salaam, Arusha, Mbeya, Mwanza and other regions, with demonstrators protesting against the continuation of the polls.

Rioters vandalised public and private property, setting fire to polling stations, police posts, Bus Rapid Transit (BRT) terminals, political party offices, fuel stations, shops, and bars, resulting in fatalities.

Call for prudent financial management

In response to these developments, economists are urging the government to prioritise careful financial management, including reducing unnecessary expenditures such as luxury vehicles (Shangingi) for senior officials, which carry high procurement and fuel costs.

Greater scrutiny is also needed over Other Costs (OCs), a catch-all category for expenses not classified under personnel, materials, systems, or outsourced services.

President Hassan instructed the new ministers to work with urgency and professionalism, emphasising that poor performance would not be tolerated.

She reminded them that their appointments followed rigorous vetting, not privilege.

“You were selected from more than 300 Members of Parliament.

It is not because you are exceptionally better, but because there was rigorous vetting. So, you must serve the citizens. I have also taken an oath, and I will be right behind you,” she said.

She noted that funds from development partners often come with numerous conditions and delays in disbursement.

“Given this, our projects must continue using the resources we have. If donor funds eventually arrive, they should find work already underway,” she stressed.

“We have limited resources, so we must use them wisely. Ministers must act quickly to ensure citizens experience development. Time is short, and there is much to be done,” she added.

Economists suggest strategies for growth

Independent economist Oscar Mkude told The Citizen that reducing unnecessary expenditures would free domestic resources for development.

He also urged stronger support for producers, particularly in agriculture and livestock, to boost productivity and exports, increasing foreign currency inflows.

“There are already people producing for export; they should be further supported, including promoting short-cycle livestock production that can be sold abroad,” he said.

Mkude also called for value addition in sectors such as gold, horticulture, and other agricultural commodities to attract investment and expand exports.

He emphasised that long-term planning is crucial for rebuilding confidence with development partners, noting that compromised trust can reduce foreign direct investment.

Another economist, Renatus Mbamilo, outlined three strategies for mobilising domestic resources: issuing long-term government bonds for citizens to purchase, securing loans from well-capitalised foreign banks under strict oversight, and, as a last resort, increasing taxes in selected sectors.

He cautioned that higher taxes could deter investment and slow economic growth.

As Tanzania enters a new phase of government leadership, ministries face mounting pressure to stabilise investor sentiment, strengthen domestic revenue sources, and ensure that key development projects remain on track.

Dr Lutengano Mwinuka, an economics lecturer at the University of Dodoma, said there was an urgent need to revisit the national budget and reassess revenue and expenditure so that adjustments could be made.

He added that budget priorities would guide which areas require immediate attention, particularly those directly affecting citizens.

“It is sensible to prepare now, exploring alternative domestic financing options as a measure to safeguard the economy from collapsee,” he said.