The United States pledged $407 million (Sh41.2 billion) aid to Tanzania on Monday, months after cancelling a similar payment.
The cancellation was due to an election that the United States said had violated the country's commitment to democracy.
The US Millennium Challenge Corporation (MCC) cancelled a $473 million (Sh48 billion) aid package in March after elections in the Zanzibar archipelago that it said were not free and fair. It said at the time that other aid commitments would not be affected.
Haji Semboja, an economics professor at the University of Dar es Salaam, told Reuters the new assistance implied that Washington was satisfied with ongoing government reforms.
"Although the MCC initiative and this new funding are two separate programmes, this new aid commitment is a sign that Tanzania is heading in the right direction," he said.
The US embassy said the $407 million would be disbursed this year to support the areas of health, agriculture, natural resource management, education, energy and democratic governance.
It is part of a five-year aid deal signed between the USAgency for International Development (USAid) and Tanzania on Monday and constitutes half of the US government's expenditure on development in Tanzania, the US embassy said.
