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Tanzania secures $55.6 million health basket fund boost for 2025/26

What you need to know:

  • The minister also welcomed the United Kingdom back into the Basket Fund, joining long-standing partners including Denmark, Ireland, Norway, Switzerland, the World Bank, and others in reaffirming support for Tanzania’s health sector priorities.

Dar es Salaam. In a significant boost to the health sector, the government has signed a renewed Health Basket Fund (HBF) side agreement with development partners for the 2025/26 financial year.

The agreement includes an increased funding allocation of $55.56 million (about Sh161.1 billion), up from $44.3 million (Sh128.5 billion) in 2022.

It reflects a renewed commitment to a decades-long partnership that has been instrumental in advancing Universal Health Coverage (UHC) across Tanzania.

The signing ceremony was officiated on Friday, July 18, 2025, by Minister for Health Jenista Mhagama, alongside senior representatives from various development partner institutions.

Ms Mhagama described the HBF as a dependable and vital financing mechanism for primary healthcare delivery and a key driver of health system transformation.

“It supports major government reforms such as the Decentralisation by Devolution strategy and peer-funded innovations like the Bepesa Direct Health Financing Facility, which channels resources directly to more than 7,345 health facilities across the country,” she said.

The minister also welcomed the United Kingdom back into the Basket Fund, joining long-standing partners including Denmark, Ireland, Norway, Switzerland, the World Bank, and others in reaffirming support for Tanzania’s health sector priorities.

Speaking on behalf of the development partners, UNICEF Country Representative, Ms Elke Wisch commended Tanzania’s leadership in health sector planning and implementation.

“As we enter the 26th year of this important partnership, we reaffirm our commitment to delivering equitable, accessible, and quality healthcare,” she said, adding: “This is more than a funding mechanism; it is a model of government-led, coordinated development.”

Ms Wisch said the HBF continues to play a pivotal role in strengthening maternal, newborn, child, and adolescent health services.

Positive results include improved antenatal care attendance and increased institutional deliveries.

However, she cautioned that persistent challenges remain, particularly in the face of public health emergencies, financial pressures, and the growing impacts of climate change on health systems.

Permanent Secretary in the Ministry of Finance and Planning, Dr Natu Mwamba, revealed that over Sh1.2 billion ($461,963.88) had been approved as a carryover for the 2024/25 financial year.

She added that an additional Sh526.2 million ($205,949.32) was allocated to support independent performance verification—a key mechanism for ensuring transparency and accountability in fund utilisation.

Dr Mwamba highlighted several indicators being tracked, including maternal health outcomes such as early initiation of breastfeeding.

“As a mother of three, I found myself asking: Am I part of this statistic? These indicators matter, they reflect the lived experiences of women across the country,” she said.

The President’s Office, Regional Administration and Local Government (PO-RALG) was represented by Deputy Minister, Dr Festo Dugange, who underlined the HBF’s tangible impact on grassroots service delivery.

He said the Fund had helped drive down maternal mortality from over 600 deaths per 100,000 live births to just 104, an achievement that earned President Samia Suluhu Hassan the prestigious Global Goalkeepers Award.

Since 2021, the government has invested Sh1.343 trillion in health infrastructure, including the construction of 129 district hospitals, 87 new health centres, and the upgrading of over 1,300 dispensaries.

“This partnership between the government and development partners demonstrates that health outcomes improve when there is a shared vision and mutual accountability,” said Dr Dugange.

“The Health Basket Fund has become a cornerstone of our national strategy to ensure no Tanzanian is left behind in accessing essential health services,” he added.