Tanzania has allocated 100 million Tanzanian shillings (62,500 U.S. dollars) as cash reward for all whistle blowers who provide helpful information that will facilitate arrest of the perpetrators of Saturday's Arusha bombing.

William Lukuvi, Tanzania's Minister of State in Prime Minister' s Office for Policy, Coordination and Parliamentary Affairs, announced the reward in Dodoma on Monday when reading government's statement on the deadly bomb blast.

On Saturday evening a bomb was thrown to a thronged political election rally held by the opposition Chama Cha Demokrasia na Maendeleo (Chadema) at Soweto playground in Arusha, claiming two lives, injuring more than 70 people.

Lukuvi described the incident as the new enemy of Tanzania's calmness, hence need not be tolerated in a civilized society.

The minister stated that the acts have been perpetrated by a cruel person or group who are enemies of the country's peace and tranquility.

"Police officers in collaboration with those from the Tanzania People's Defence Force are already in the city of Arusha investigating the incident," he said, vowing to fight against the perpetrators.

Earlier investigation shows that the Saturday's bomb has been identified as a hand grenade, according to the minister.

Lukuvi also described the acts as a very dangerous war than that of Kagera war against Ugandan dictator, late Idd Amin in 1978.

"So, the public need to remain united and work close with security agency to ensure that we completely eliminate such incidents, which has a negative impact to the country's social and economic development," he said.

Lukuvi said that it is the intention of the government to fight against the entire network of terrorism acts which is trying to sabotage the country's peace.

The blast occurred near the main stage where the Chadema national leader, Freeman Mbowe was addressing supporters.

The latest attack is the second in just a month, as last month a Roman Catholic Church in Olasiti suburb of Arusha was bombed, killing three people and injuring dozens.

The explosions raised security concern over the safety of Arusha -- the fast-growing tourist hub in Tanzania and East African region.