Denmark is cutting about $10 million in aid to the government of Tanzania over what it called "negative developments" in human rights in the East African country.
Ulla Tornaes, Denmark's minister for development co-operation, said on Twitter she was "deeply concerned" by developments such as a Tanzanian official's "completely unacceptable homophobic statements."
Tanzania is increasingly under the spotlight over its human rights record. Denmark is one of the largest donors to the country.
Most recently the commissioner for the country's commercial capital, Dar es Salaam, urged Tanzanians to "report" suspected homosexuals, comments widely criticised by rights groups and disavowed by Tanzania's federal government.
Human Rights Watch says Tanzania's government under President John Magufuli "has restricted basic rights through repressive laws and decrees" targeting journalists, activists and perceived opponents.