Dar es Salaam - Tanzania will receive a total of $1.046 billion (Sh2.4 trillion) from the International Monetary Fund (IMF) over 40 months in an effort to help the country’s economy to cope with consequences of war in Ukraine as it recovers from the effects of the global Covid-19 pandemic.
“Spillovers from the war in Ukraine are stalling the Tanzanian economy’s gradual recovery from the Covid-19 pandemic, exacerbating the country’s development and reform challenges to unleash its economic potential,” the IMF said in a statement that was availed to The Citizen yesterday.
During the past few months, Tanzania, just like many other countries in the world, has seen a rise in prices of a number of products, including fuel, wheat, fertilizer and cooking oil among others, primarily due to a rise in demand as the global economy recovers from the Covid-19 pandemic and a disruption of commodity delivery channels due to the war in Ukraine.
This has forced President Samia Suluhu Hassan’s administration to come up with a raft of measures in an effort to strike a balance between bringing down the spiralling cost of living and maintaining its tempo of investing in mega infrastructure projects while simultaneously creating an enabling environment for the private sector to thrive.
Though there was no immediate reaction from the government, it is common knowledge that the President Samia’s administration was subsidizing fuel prices to make it affordable to motorists and manufacturers.
In light of the developments, the IMF exuded its support to Tanzania’s economic stimulation plan, with its [IMF’s] experts saying the country will need help to carry out reforms and unleash its economic potential.
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