By Correspondent Benny Mwaipaja
Tanzania and the International Monetary Fund (IMF) are preparing to deepen their long-standing economic partnership, with a renewed focus on policy dialogue, economic monitoring and technical capacity-building as the country pursues its development ambitions under Dira 2050.
Finance Minister Khamis Mussa Omar thanked the IMF for its contribution to Tanzania’s economic development, saying the partnership, which dates back more than six decades, remains important to strengthening the economy and advancing national development priorities.
Mr Omar made the remarks during talks with the IMF’s newly appointed Resident Representative in Tanzania, Jana Bricco, who has formally taken up her post in the country.
The discussions covered a range of issues concerning Tanzania’s economic outlook and its future cooperation with the Fund, including the implementation of Vision 2050 and the strategic direction of the next Five-Year Development Plan.
“We have worked with the IMF for a long time, from the 1960s to today, and have continued to cooperate in various areas aimed at strengthening the national economy and advancing our development agenda,” Mr Omar said.
He said Tanzania particularly valued the IMF’s role in monitoring economic growth, monetary and fiscal policies, and assessing the impact of those policies on the wider economy.
The two sides are also expected to continue monitoring private-sector performance and price developments, including inflation, which have remained important areas of engagement between Tanzania and the Fund.
From lending to policy partnership
The latest discussions come after Tanzania successfully completed programmes under the IMF’s Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF).
The ECF provides concessional financing to countries facing balance-of-payments challenges, while the RSF supports reforms aimed at strengthening resilience to climate-related risks.
According to Ms Bricco, Tanzania’s successful completion of the programmes reflected improvements in macroeconomic stability, fiscal sustainability and the country’s debt position. The achievements were recognised by the IMF Executive Board.
She said completion of the programmes offered an opportunity to open a new chapter in relations between Tanzania and the IMF, with the partnership increasingly centred on policy consultations, economic surveillance and technical capacity-building rather than simply financial support.
“Completion of the ECF-RSF does not mean the end of cooperation between Tanzania and the IMF. Rather, it is an opportunity to transform and strengthen the relationship in line with Tanzania’s new stage of development,” Ms Bricco said.
She said the IMF would remain a partner in efforts to strengthen economic stability, maintain sound and sustainable policies and support Tanzania’s long-term development ambitions.
For Tanzania, the shift is significant. With the country moving into implementation of Diura 2050, the focus of economic management is increasingly on sustaining growth, strengthening competitiveness and mobilising investment while maintaining fiscal and macroeconomic stability.
IMF backs Dira 2050
Ms Bricco said the IMF was ready to continue supporting the Government with policy advice tailored to Tanzania’s needs, alongside technical assistance and capacity-building in priority areas identified under Dira 2050.
“The IMF sees significant scope to continue supporting the implementation of Dira 2050. The objectives and areas targeted under the completed programmes have strong links with Tanzania’s ambition to build a strong, competitive economy capable of creating greater opportunities for its people,” she said.
Minister Omar, meanwhile, invited the new IMF representative to travel beyond Dar es Salaam to gain a first-hand understanding of Tanzania’s economic transformation.
He specifically encouraged her to visit major strategic projects, including the Julius Nyerere Hydropower Project, as well as tourism destinations and productive sectors such as agriculture.
“Beyond the strategic projects, I invite you to visit tourism and production areas, particularly agriculture and other sectors that make a significant contribution to economic activity,” Mr. Omar said.
He said such visits would provide a broader understanding of the opportunities, progress and challenges facing Tanzania and help create a stronger basis for productive dialogue and cooperation between the country and the IMF.
The meeting was also attended by Acting Permanent Secretary and Deputy Permanent Secretary in the Ministry of Finance Nsubili Joshua; Assistant Commissioner in the External Finance Department, Robert Mtengule; Assistant Commissioner in the Policy Analysis Department, Juma Mkabakuli; and other senior officials from the Ministry of Finance and the IMF. As Tanzania embarks on the next phase of its development journey, the evolving IMF relationship is likely to place greater emphasis on the quality of economic policy, institutional capacity and reforms capable of translating macroeconomic stability into broader private-sector growth and improved living standards.
