Tanzania Secures USD 55.9M for 2025–2026 Health Basket Fund to Boost Health Systems and Primary Healthcare
Posted on : Wednesday, 6th August 2025
In order to promote primary healthcare delivery and fortify health systems, Tanzania has obtained USD 55.9M (around TZS 161.3B) from development partners for the Health Basket Fund (HBF) for the fiscal year 2025–2026.
Comparing the amount to the USD 44.3M distributed in the 2022–2023 fiscal year, there is a 20% increase.
On July 18, 2025, the HBF's annual side agreement was signed. Senior representatives from development partners attended the ceremony, which was presided over by Health Minister Jenista Mhagama.
The Health Basket Fund would use direct facility financing methods to fund national, regional and facility-level health plans, including the purchase of medications and medical supplies and the provision of primary healthcare services at Tanzania's more than 7,300 healthcare facilities.
According to Minister Mhagama, the fund is still supporting important health reforms including Direct Health Facility Financing (DHFF), which distributes funds according to performance goals confirmed by the Internal Auditor General and Decentralisation by Devolution.
She reaffirmed the government's dedication to using the money in an open manner and promoting Universal Health Coverage (UHC) by enhancing access to care and service delivery.
In addition, the minister praised all contributing partners for their ongoing involvement in the HBF since its inception in 1999 and welcomed the UK's return to the fund.
The HBF's importance in enhancing essential care, especially maternity and child health and grassroots health services was highlighted by Dr Festo Dugange, Deputy Minister in the President's Office – Regional Administration and Local Government (PO-RALG).
He pointed out that President Samia Suluhu Hassan received the Global Goalkeepers Award for health leadership because of the fund's contribution to lowering maternal mortality from almost 600 to 104 deaths per 100,000 live births.
Elke Wisch, the chair of the Health Basket Fund and a UNICEF country representative, emphasised the HBF as an example of coordinated cooperative finance that is in line with governmental health priorities.
She promised to keep supporting efforts to promote mother and child health, implement financial reforms like the Universal Health Insurance Law and increase fair access to healthcare.
Dr. Natu Mwamba, Permanent Secretary at the Ministry of Finance and Planning, revealed that TZS 526.2M had been set aside for independent performance verification and that TZS 1.2B had been authorised as a carryover from the 2024–2025 fiscal year.
In order to maintain accountability and guide policy actions, she emphasised the significance of tracking health indicators like the commencement of breastfeeding at an early age.
Nine development partners—Canada, Denmark, Ireland, Korea, Switzerland, the United Kingdom, the World Bank, UNFPA and UNICEF are partners in Tanzania's cooperative finance project, the Health Basket Fund.
Over USD 1.3B (about TZS 3.2T) has been distributed by the fund since its establishment in 1999 to support national health sector strategic objectives, with a focus on primary healthcare.
