 |
| Minister for Finance, Ambassador Khamis Mussa Omar (right), speaks with the International Monetary Fund (IMF) Mission Chief, Mr. Nicolas Blancher, following successful completion of final reviews under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF) programmes. The IMF has approved the immediate disbursement of approximately 443.9 million US dollars (about 1.17tri/-) to Tanzania, to support economic growth and climate resilience initiatives. |
The International Monetary Fund (IMF) has approved the immediate disbursement of approximately US$443.9 million to Tanzania following the successful completion of the final reviews under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF) programmes.
According to an IMF statement issued on July 10, the approval follows the completion of the sixth and seventh reviews of the ECF programme and the third and fourth reviews of the RSF programme. The disbursement includes approximately US$154.1 million under the ECF and US$289.7 million under the RSF.
The ECF programme provides concessional financing to support Tanzania's economic reforms, strengthen productive sectors and improve social service delivery, while the RSF helps countries build resilience against climate change and enhance long-term sustainability.
TANZANIA'S ECONOMY REMAINS RESILIENT
The IMF noted that Tanzania's economy continues to demonstrate resilience despite global economic challenges. Real Gross Domestic Product (GDP) growth reached 5.9 percent in 2025 and is projected to increase to around 6.2 percent over the medium term, supported by continued expansion in the mining, agriculture and tourism sectors.
Macroeconomic stability has also remained strong, with inflation staying well below the national target. Inflation stood at 4.0 percent in June 2026, although the IMF cautioned that rising global oil prices continue to pose risks to the cost of living and the broader economy.
REFORMS SHOW POSITIVE PROGRESS
The IMF said implementation of Tanzania's economic reform agenda has been broadly satisfactory, with most programme performance targets achieved on schedule.
However, the Fund noted that several structural reforms experienced delays, particularly in the areas of energy sector reforms, VAT administration, Bank of Tanzania governance, and public investment management.
IMF CALLS FOR CONTINUED REFORMS
IMF Deputy Managing Director and Acting Chair, Bo Li, commended Tanzania for maintaining macroeconomic stability despite domestic and external economic pressures.
He emphasized the need for continued efforts to strengthen domestic revenue mobilisation, improve public financial management, and increase investment in critical sectors such as education and healthcare.
The IMF also encouraged Tanzania to continue reforms aimed at improving the business environment, strengthening private sector development, and enhancing the country's resilience to climate change.
GLOBAL RISKS REMAIN
While maintaining a positive outlook for Tanzania's economy, the IMF warned that the ongoing conflict in the Middle East could weaken global economic growth and contribute to higher inflationary pressures.
The Fund also noted that Tanzania continues to face significant long-term development challenges, including reducing poverty, achieving the Sustainable Development Goals (SDGs), and creating sufficient employment opportunities for a population projected to double by 2050.
Overall, the IMF's decision reflects continued confidence in Tanzania's economic management while providing additional financial resources to support ongoing reforms, strengthen economic resilience and sustain inclusive growth.
FINANCE MINISTER WELCOMES IMF DECISION
Minister of Finance, Ambassador Khamis Mussa Omar (MP), welcomed the IMF's decision, expressing appreciation for the institution's continued confidence in Tanzania's economic and social reform agenda.
He said the approval demonstrates international recognition of the country's progress in implementing major reforms that continue to receive IMF support.
LONG-STANDING IMF PARTNERSHIP
Tanzania has maintained a long-standing partnership with the International Monetary Fund since joining the institution on 10 September 1962.
Since then, the IMF's total financing commitments to Tanzania have reached approximately US$4.578 billion, of which the country's current active portfolio stands at US$2.52 billion.
Source: Ministry of Finance, Tanzania / International Monetary Fund (IMF).
No comments:
Post a Comment