"(It) will ensure predictable funding over six years, a response to the clarion call from the Tanzanian government ... to keep resources flowing, so that development efforts can be planned and programmed over a decent period of time," he said in a speech at the ministry of finance.
The money will be spent on improving roads, support for the sugar sector -- whose growers find it hard to compete following the abolition of guaranteed price and quotas -- and help garner better statistics to monitor poverty reduction.
Tanzania has received multiple warnings from donors, who provide a third of the country's budget, in recent months after it slipped down indices rating perceptions of corruption and the ease of doing business.
Nevertheless, the EU chose to give the money which Clarke said showed trust between donors and the country but that the body would not turn a blind eye to corruption.
"Many people may question the rationale of providing such resources at a time when the local media is full of (reports of) corruption scandals, alleged abuses of power, of grotesque wastage of public resources," said Clarke.
"Vested interests, cumbersome administrative procedures, a lack of imagination and sheer inertia (are) preventing the sort of take-off that we would all like," he said.
News courtesy, and copyright of Reuters