US report highlights Tanzania's progress on fiscal transparency

Dar es Salaam. Tanzania has made significant progress in improving fiscal transparency, according to a new United States assessment, as the two countries move to deepen cooperation in investment, energy, health, critical minerals and financial markets.

The recognition is contained in the US Department of State’s 2026 Fiscal Transparency Report, released last week, which assessed the availability and reliability of information on public finances across 139 governments and the Palestinian Authority.

The 2026 Fiscal Transparency Report covers the period from January 1 to December 31, 2025, providing an assessment of fiscal disclosure practices during the period under review.

Tanzania did not meet all the minimum requirements under the assessment but was among governments identified as having made “significant progress” towards meeting the fiscal transparency standards.

The assessment comes as Tanzania and the United States seek to strengthen economic relations, with officials from the two countries recently highlighting opportunities for cooperation in strategic sectors and technical exchanges.

On August 11, Finance Minister Khamis Mussa Omar met with Acting US Ambassador to Tanzania Andrew Lentz in Dar es Salaam, where they discussed strengthening bilateral cooperation in critical minerals, energy, health, investment and economic development.

The two sides also emphasized continued government-to-government engagement and technical dialogue in strategic areas, including Tanzania’s planned development of the Liquefied Natural Gas (LNG) sector.

The meeting provides a broader context to the latest US fiscal transparency assessment, with both countries emphasising the importance of stronger institutions, investment and technical cooperation as they seek to deepen economic ties.

The US Department of State said fiscal transparency is important because it enables citizens and other stakeholders to understand how governments raise and spend public resources.

“Fiscal transparency is a critical element of effective public financial management, helps build market confidence, and underpins economic sustainability. It fosters greater government accountability by providing a window into government budgets, helping citizens hold their leadership accountable and facilitating better public debate,” the report says.

For Tanzania, the report found that key fiscal information was being made publicly accessible, including the enacted budget and end-of-year report.

It also assessed the availability of information relating to natural-resource extraction awards, while identifying public procurement contracts as an area where greater public disclosure would strengthen transparency.

The finding gives Tanzania an opportunity to build on reforms already under way, particularly as the country seeks to attract investment into major projects and strengthen confidence in its public financial management systems.

At their August 11 meeting, Mr Lentz stressed that close communication and cooperation between experts from the two countries would be important in facilitating the implementation of major strategic projects.

“We recognize the importance of investing in health infrastructure, local production of health products, and strengthening institutions responsible for public health. This cooperation aims to enhance Tanzania’s capacity to respond to health challenges and ensure that citizens have access to quality and sustainable health services,” said Mr Lentz.

The two sides also discussed strengthening the investment environment, including major mining projects and efforts to add value to Tanzania’s natural resources.

They agreed on the importance of effective coordination between the Government and investors to ensure strategic projects are implemented efficiently and deliver benefits to the economy and citizens.

The discussions also extended to the financial sector, with Mr Omar highlighting opportunities for Tanzania and the US to exchange experience on strengthening economic, financial and technical cooperation.

He cited the development of Tanzania’s government securities market as an example of technical cooperation that could deliver long-term benefits to the economy.

“There is significant scope for exchanging experience on how the two governments can strengthen economic, financial and technical cooperation,” Mr Omar said.

The US report also examined transparency in government procurement, natural-resource extraction and public debt, areas that are increasingly important as Tanzania expands public investment and seeks to attract private capital.

On health, the renewed cooperation between the two countries is already taking shape through a recently signed agreement worth $3.1 billion over five years, according to the Finance Ministry.