Economy

Tanzania secures $443.9 million IMF disbursement

The financing follows the successful completion of the sixth and seventh reviews under the Extended Credit Facility (ECF) and the third and fourth reviews under the Resilience and Sustainability Facility

Dar es Salaam. The International Monetary Fund (IMF) has approved the immediate disbursement of approximately $443.9 million to Tanzania after completing reviews of two financial support programmes being implemented in the country.

The financing follows the successful completion of the sixth and seventh reviews under the Extended Credit Facility (ECF) and the third and fourth reviews under the Resilience and Sustainability Facility (RSF).

According to an IMF statement issued on July 10, the approved funding comprises about $158.75 million under the ECF and approximately $298.37 million under the RSF.

The ECF provides concessional financing to support economic reforms, strengthen productive sectors and improve the delivery of social services.

The RSF is designed to help countries address the effects of climate change and enhance economic resilience.

The IMF said Tanzania’s economy has remained resilient despite global economic uncertainties.

It noted that the country’s gross domestic product expanded by 5.9 percent in 2025 and is projected to grow by around 6.2 percent over the next three to five years.

The Fund attributed the positive outlook to continued growth in the mining, agriculture and tourism sectors.

The IMF also said Tanzania has maintained macroeconomic stability, with inflation remaining subdued.

Annual inflation stood at 4.0 per cent in June 2026, remaining within the national target range.

However, the Fund warned that higher global oil prices continue to pose risks to the country’s economy by increasing the cost of living and adding pressure to inflation.

The IMF assessed the implementation of Tanzania’s economic reform programme as broadly satisfactory.

Most performance targets were achieved on schedule.

However, some structural reforms experienced delays, particularly those relating to the energy sector, value-added tax administration, the governance framework of the Bank of Tanzania and public investment management.

The Fund encouraged the government to accelerate the implementation of the outstanding reforms to sustain macroeconomic stability, strengthen fiscal management and promote inclusive economic growth.

The latest approval brings Tanzania’s total IMF support under the current ECF and RSF programmes to a significantly higher level since the arrangements were approved to help the country strengthen economic recovery, safeguard fiscal sustainability and improve resilience to climate-related shocks.

The decision also signals the IMF’s continued confidence in Tanzania’s economic management and reform agenda.

The fresh financing is expected to bolster the country’s foreign exchange reserves, support ongoing development priorities and reinforce efforts to build a more resilient economy.

Shares:
Show Comments (0)
Leave a Reply

Your email address will not be published. Required fields are marked *