Dissertation (MA International Relations)The purpose of this study was to examine the challenges and prospects of USA foreign Aid and Assistance in Tanzania taking Tanzania Electric Supply Company (TANESCO) as a case study. The study employed qualitative and quantitative approaches in the process of data analysis; data were collected to those respondents in Dar-es-salaam. Also convenience and purposive sampling procedures were adopted as means of obtaining needed respondents. 110 respondents including MCA-T TANESCO officials and TANESCO customers from Temeke, Ilala and Kinondoni district in Dar-es-salaam were chosen. Data was collected through interviews, documentary review and questionnaires. Study findings reveal that, USA foreign aid and assistance in Tanzania is not delivered on time. Also, the Tanzania Energy Policy has not been properly enforced in dealing with electricity problems. Moreover, the study found that there is monopolistic nature of TANESCO which discourage competition. Recommendations from the study findings include, TANESCO should establish other energy resources in generating electricity, promotion of Public Private Partnership (PPP), government should speed up those projects financed by the US government, and also, TANESCO should invest heavily in improving its institutional capacity to deliver services to the customers. This may help the company (TANESCO) to have a well utilization of the USA foreign aid and assistance in energy sector in Tanzania.