The global movement to achieve the 17 Sustainable Development Goals (SDGs) of the United Nations' 2030 Agenda rests on strengthening international connections and cooperation. However, in recent years nationalism and protectionism have been on the rise in donor countries such as the United States and the United Kingdom. In this situation, Julius Nyerere's "education for self-reliance" (ESR) philosophy, which aimed at achieving sustainable development using Tanzania's own resources, has again gained traction among scholars and policymakers. Placing Tanzanian education policy development in the context of the international political economy, this article critically analyses key education policy documents produced by Tanzania and its development partners, with a particular focus on literacy. The authors not only examine the extent to which ESR has been included in current literacy policies, but also consider its relevance for literacy education. Their analyses show that, even though ESR is mentioned in literacy policies, the term "self-reliance" now has different connotations; "literacy" is understood as comprising students' abilities in basic reading, writing and arithmetic; and current literacy initiatives are designed to prepare Tanzanians to find jobs in the global capital market rather than empower rural communities for sustainable development.