The International Monetary Fund (IMF) has approved an immediate disbursement of approximately $443.9 million to Tanzania after completing the final reviews under the country’s Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF) arrangements.
According to a statement issued by the IMF, the approval follows the completion of the sixth and seventh reviews under the ECF arrangement and the third and fourth reviews under the RSF arrangement, bringing total IMF support under both programmes to about $ 1.7 billion.
The ECF programme, launched in July 2022, was designed to support economic recovery, preserve macroeconomic stability and promote inclusive growth. The RSF programme, approved in June 2024, supports reforms aimed at strengthening climate resilience and reducing risks to the country’s balance of payments.
The IMF said Tanzania’s reform programme remained largely on track. All quantitative performance targets set for June 2025 were achieved, while most subsequent objectives were also met. The Fund noted that four structural reform benchmarks were implemented on schedule, with several others completed after delays.
The assessment found that Tanzania continues to record strong economic growth and relatively low inflation despite growing global uncertainty.
The latest disbursement consists of SDR 113.37 million (about $ 154.1 million) under the ECF and SDR 213.12 million (about $ 289.7 million) under the RSF.
The ECF programme has now provided Tanzania with approximately $ 1.063 billion since its approval in July 2022, while total access under the RSF has reached approximately $ 636.5 million.
The country’s current account deficit is expected to remain broadly stable during the 2025/26 financial year, supported in part by strong gold export earnings that are helping offset higher import costs.
While the medium-term outlook remains positive, the IMF cautioned that risks have increased. A prolonged conflict in the Middle East could weaken growth prospects, increase inflationary pressures and place additional strain on the economy.
The Fund said continued fiscal consolidation remains important, particularly through stronger domestic revenue collection, improved value-added tax administration and enhanced public financial management.
The IMF also stressed the need for greater investment in education, healthcare and social protection to support poverty reduction and long-term development goals.
MG/as/APA