This comes as part of ongoing support to help the East African nation strengthen its economic recovery, maintain macro-financial stability, and build resilience to climate change.
In a statement issued after the Executive Board concluded its 2025 Article IV Consultation, the IMF confirmed that it had completed the fifth review under the Extended Credit Facility (ECF) and the second review of the Resilience and Sustainability Facility (RSF) arrangements with Tanzania.
This paves the way for the immediate release of $155.7 million under the ECF and $292.7 million under the RSF, bringing total access under both programmes to just over $1.25 billion.
The 40-month ECF arrangement, originally approved in July 2022 and extended in mid-2024, supports Tanzania's reform programme aimed at promoting inclusive growth. The RSF, launched in June 2024, complements this by backing reforms that address balance of payment risks and climate vulnerabilities.
The IMF noted that Tanzania's economic reform efforts remain broadly on track. Key performance targets and structural benchmarks for end-2024 were largely met, though some measures were delayed, including the implementation of the Secured Transaction Act, now rescheduled to early 2026.
Real GDP growth reached 5.5% in 2024, driven by improved economic activity, while inflation was contained at 3.2%, below the central bank’s target. However, fiscal pressures were evident, with a sharp deterioration in the budget balance during the third quarter of FY2025, prompting a delay in non-essential spending.
Deputy Managing Director Kenji Okamura praised Tanzania’s reform commitment but cautioned that continued donor engagement and robust policy implementation would be essential, especially as the country faces the dual challenges of rapid population growth and poverty reduction.
The IMF urged Tanzania to accelerate structural reforms to strengthen the business climate, enhance revenue collection, and build human capital. It also welcomed recent steps to increase exchange rate flexibility and called for further strengthening of monetary operations and financial sector oversight.
With its population projected to double by 2050, Tanzania’s medium-term outlook remains positive but hinges on sustained reforms and inclusive, climate-resilient development.
--IMF/ChannelAfrica--
