US cancels $472m Tanzania aid deal over Zanzibar election

Tanzanian president John Magufuli (second left) and Zanzibar's newly-elected President Ali Mohamed Shein (second right) during Mr Shein's swearing-in ceremony in Stone Town, Zanzibar, on March 24, 2016. AFP PHOTO | DANIEL HAYDUK

Tanzania has lost $472 million in development support after a United States agency suspended an aid deal over  governance concerns including Zanzibar elections re-run and anti-cybercrime law.

The decision, which comes days before Parliament in Dodoma discusses budget proposals, will likely affect rural electrification, water and infrastructure projects which are funded by the Millennium Challenge Corporation (MCC).