By Costantine Muganyizi
The International Monetary Fund (IMF) has approved the final reviews of its economic support programmes for Tanzania, unlocking an immediate disbursement of US$443.9 million (about TSh1.2 trillion).
The decision marks the successful completion of four years of reforms aimed at strengthening economic stability, sustaining growth and building resilience against future shocks.
Announcing the development late last week, IMF Deputy Managing Director and Acting Chair Bo Li said Tanzania’s reform programme had helped the country weather both domestic and global shocks while maintaining macroeconomic stability.
“Amid external and domestic shocks, Tanzania’s reform programme supported by the Extended Credit Facility has enabled the authorities to maintain macroeconomic stability and advance reforms. Macroeconomic stability has been preserved, with strong economic activity and low and stable inflation,” Bo Li said on July 10, 2026.
The approval, following the IMF Executive Board’s completion of the final reviews under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF), unlocks immediate financing of US$443.9 million and brings Tanzania’s total access under the two programmes to nearly US$1.7 billion.
Beyond the funding itself, the decision represents a significant vote of confidence in Tanzania’s economic management at a time when many developing economies continue to grapple with slowing growth, persistent inflation and geopolitical uncertainty.
According to the IMF, Tanzania has maintained robust economic growth and macro-financial stability despite global economic headwinds. The economy expanded by 5.9 percent in 2025 and is projected to grow by about 6.2 percent over the medium term, supported mainly by continued expansion in mining, agriculture and tourism.
Inflation has also remained relatively low, standing at 4.0 percent in June 2026, allowing the country to preserve price stability while supporting economic activity.
The Fund noted that Tanzania broadly met the commitments agreed under the IMF-supported reform programmes. Most quantitative performance targets were achieved, while several structural reforms aimed at strengthening public finance management, economic institutions and climate resilience were successfully implemented.
The ECF programme, first approved in July 2022, was designed to help Tanzania preserve macroeconomic stability, support post-pandemic recovery and promote inclusive economic growth. The RSF programme, approved in 2024, focused on helping the country strengthen resilience to climate change and reduce long-term external financing risks.
Although the programmes have formally concluded, the IMF emphasised that sustaining reform momentum will be critical as Tanzania pursues the ambitions outlined in Vision (Dira) 2050.
In its assessment, the IMF acknowledged that progress was not uniform across all reform areas. Some measures, including reforms related to VAT administration, public investment management, central bank governance and parts of the energy sector, experienced delays or remain incomplete.
The Fund nevertheless welcomed the authorities’ commitment to continue implementing these reforms, noting that stronger institutions and improved governance will be essential for sustaining high economic growth over the long term.
The IMF also cautioned that Tanzania’s economic outlook, while positive, faces growing external risks. Rising global fuel prices, partly linked to the ongoing conflict in the Middle East, could place upward pressure on inflation and increase import costs if the situation persists.
However, stronger gold exports are expected to continue cushioning the country’s external position by offsetting part of the higher import bill.
The Bretton Woods institution further advised Tanzania to continue strengthening domestic revenue mobilisation, improve public financial management and pursue prudent fiscal policies to create greater room for investment in education, healthcare and social protection.
It also encouraged continued reforms to improve the business environment, deepen private sector participation and attract more investment capable of generating employment for the country’s rapidly growing population.
Climate resilience was identified as another strategic priority, with the IMF calling for faster implementation of reforms that can unlock climate finance while reducing future economic vulnerabilities. Mr. Bo Li said continued fiscal discipline, structural reforms and private sector-led growth would be essential if Tanzania is to achieve the ambitions of Dira 2050.
