After suspending aid to Tanzania in March, the United States on Monday pledged $ 407 million dollar aid to the East African country.
In March, the US Millenium Challenge corporation had said that Tanzania had violated its commitment to democracy over the March polls in the semi-autonomous island of Zanzibar.
Then, the Tanzanian government said that it had anticipated the move and was armed with alternatives.
According to reports, the move to rescind the decision is due to what the US termed as satisfactory ongoing government reforms.
The funds will be disbursed this year and will go towards supporting health, agriculture, education ,energy, natural resource management as well as democratic governance, as the nation seeks to transform into middle income status by 2025.
This part of a 5- year deal signed by the U.S. Agency for International Development (USAID) and Tanzania and will represent half of the annual budget that the US government spends on development and bilateral programs in the country.