By Business Insider Reporter
Tanzania has secured a US$448.4 million (nearly TSh1.2 trillion) disbursement from the International Monetary Fund (IMF), providing a significant boost to the country’s ongoing economic reform agenda and efforts to build resilience against climate change.
The financing, approved by the IMF Executive Board on Friday, comes through two key credit arrangements: the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF).
Of the total amount, about US$155.7 million will support fiscal and structural reforms under the ECF, while about $292.7 million will be directed toward climate-related initiatives through the RSF.
The IMF said in a presser that Tanzania’s reform programme is “broadly on track,” with the government meeting most performance targets and maintaining macroeconomic stability.
The economy grew by 5.5% in 2024, with projections of 6.0% growth in 2025, driven by public investment, stronger exports, and improved policy frameworks.
Inflation remained low at 3.2% as of April 2025, and the current account deficit narrowed to 2.6% of GDP, reflecting solid external performance.
“Tanzania’s strong commitment to reform implementation, particularly in public finance, business regulation, and climate policy, is commendable,” said Kenji Okamura, IMF Deputy Managing Director. “This financing will support continued progress toward inclusive and sustainable development.”
The 40-month ECF arrangement with Tanzania for a total access of about US$ 1,046.4 million at the time of program approval was initially approved in July 2022, and was extended by six months in June 2024. The arrangement aims to support economic recovery, preserve macro-financial stability, and promote sustainable and inclusive growth.
The 23-month RSF arrangement, approved in June 2024, supports the authorities’ reforms to reduce prospective balance of payments risks and boost the government’s green agenda efforts.
This component is specifically aimed at helping Tanzania adapt to climate change risks and reduce long-term economic vulnerabilities. This includes improving climate-related infrastructure, strengthening water and energy systems, and building institutional capacity to manage environmental challenges.
The IMF emphasized that Tanzania’s population growth – expected to double by 2050 – adds urgency to addressing climate resilience, sustainable job creation, and human capital development.
While the outlook is favorable, the IMF cautioned that risks remain – particularly from global economic headwinds, potential delays in reform implementation, and financing constraints.
The Fund encouraged the government to continue enhancing domestic revenue collection, strengthening public financial management, and accelerating structural reforms to support private sector development.
This disbursement brings Tanzania’s total access under both the ECF and RSF arrangements to nearly US$1.25 billion. Tanzania has secured over TSh5.8 trillion (US$2.2 billion) in financial support from the IMF since joining the Bretton Woods institution in 1962.By Business Insider Reporter
Tanzania has secured a US$448.4 million (nearly TSh1.2 trillion) disbursement from the International Monetary Fund (IMF), providing a significant boost to the country’s ongoing economic reform agenda and efforts to build resilience against climate change.
The financing, approved by the IMF Executive Board on Friday, comes through two key credit arrangements: the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF).
Of the total amount, about US$155.7 million will support fiscal and structural reforms under the ECF, while about $292.7 million will be directed toward climate-related initiatives through the RSF.
The IMF said in a presser that Tanzania’s reform programme is “broadly on track,” with the government meeting most performance targets and maintaining macroeconomic stability.
The economy grew by 5.5% in 2024, with projections of 6.0% growth in 2025, driven by public investment, stronger exports, and improved policy frameworks.
Inflation remained low at 3.2% as of April 2025, and the current account deficit narrowed to 2.6% of GDP, reflecting solid external performance.
“Tanzania’s strong commitment to reform implementation, particularly in public finance, business regulation, and climate policy, is commendable,” said Kenji Okamura, IMF Deputy Managing Director. “This financing will support continued progress toward inclusive and sustainable development.”
The 40-month ECF arrangement with Tanzania for a total access of about US$ 1,046.4 million at the time of program approval was initially approved in July 2022, and was extended by six months in June 2024. The arrangement aims to support economic recovery, preserve macro-financial stability, and promote sustainable and inclusive growth.
The 23-month RSF arrangement, approved in June 2024, supports the authorities’ reforms to reduce prospective balance of payments risks and boost the government’s green agenda efforts.
This component is specifically aimed at helping Tanzania adapt to climate change risks and reduce long-term economic vulnerabilities. This includes improving climate-related infrastructure, strengthening water and energy systems, and building institutional capacity to manage environmental challenges.
The IMF emphasized that Tanzania’s population growth – expected to double by 2050 – adds urgency to addressing climate resilience, sustainable job creation, and human capital development.
While the outlook is favorable, the IMF cautioned that risks remain – particularly from global economic headwinds, potential delays in reform implementation, and financing constraints.
The Fund encouraged the government to continue enhancing domestic revenue collection, strengthening public financial management, and accelerating structural reforms to support private sector development.
This disbursement brings Tanzania’s total access under both the ECF and RSF arrangements to nearly US$1.25 billion. Tanzania has secured over TSh5.8 trillion (US$2.2 billion) in financial support from the IMF since joining the Bretton Woods institution in 1962.
