DODOMA: TANZANIA has received another vote of confidence from the International Monetary Fund (IMF), which has approved the immediate disbursement of 443.9 million US dollars (about 1.17tri/-) after concluding that the country’s economic reform programme remains broadly on track.
The latest financing follows the successful completion of the final reviews under the IMF’s Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF), reinforcing international confidence in Tanzania’s macroeconomic management and reform agenda at a time of heightened global uncertainty.
The package consists of 154.1 million US dollars (about 405.3bn/-) under the ECF and 289.7 million US dollars (about 762bn/-) under the RSF, bringing total IMF support under the two programmes to more than 1.69 billion US dollars (about 4.46tri/-) since their approval.
The approval comes as Tanzania continues to record one of the stronger economic performances in Sub-Saharan Africa, underpinned by prudent fiscal management, expanding productive sectors and sustained reforms aimed at strengthening economic resilience.
According to the IMF, the economy grew by 5.9 per cent in 2025, while growth is projected to average around 6.2 per cent over the medium term, supported by continued expansion in mining, agriculture and tourism—three sectors that have increasingly become key drivers of foreign exchange earnings, employment and investment.
Inflation has also remained within the country’s target range, standing at 4.0 per cent in June, reflecting continued macroeconomic stability despite external pressures, including rising global fuel prices and geopolitical tensions.
The IMF noted that Tanzania’s current account deficit is expected to remain broadly stable during the 2025/26 financial year, with higher gold exports helping offset increased import costs arising from the conflict in the Middle East.
The Fund, however, cautioned that prolonged geopolitical tensions could pose risks to growth by exerting pressure on global commodity prices, inflation and external demand.
The latest IMF endorsement carries significance beyond the immediate financing, as it signals continued international confidence in Tanzania’s policy direction and institutional reforms.
The resources are expected to support the country’s foreign exchange position, enhance fiscal flexibility and provide additional room for strategic investments in priority sectors, while complementing ongoing efforts to implement the country’s long-term development agenda under Vision 2050.
In its assessment, the IMF observed that Tanzania has maintained macroeconomic stability while advancing reforms in public financial management, domestic revenue mobilisation and governance despite facing both domestic and global economic shocks.
The Fund said sustained implementation of reforms—including improvements in tax administration, timely Value Added Tax (VAT) refunds and strengthened public financial management—would create additional fiscal space for increased investment in education, health and social protection.
Speaking after the Executive Board’s decision, IMF Deputy Managing Director and Acting Chair Bo Li commended Tanzania for maintaining policy discipline and advancing key institutional reforms.
He said continued fiscal consolidation and stronger domestic revenue mobilisation would help preserve macroeconomic stability while supporting inclusive growth and poverty reduction.
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Mr Li also encouraged the authorities to maintain prudent monetary policy, strengthen foreign exchange reserve buffers and preserve exchange rate flexibility to cushion the economy against external shocks.
He further underscored the importance of accelerating reforms that improve the business environment, enhance private sector competitiveness and create employment opportunities for the country’s rapidly growing population.
The IMF also highlighted climate resilience as an increasingly important pillar of Tanzania’s long-term development strategy, urging continued implementation of reforms that attract climate finance and strengthen the economy’s capacity to withstand climate-related shocks.
According to the Fund, implementation of the ECF programme remained broadly satisfactory. All end-June 2025 quantitative performance criteria were met, while all end-September 2025 indicative targets were achieved except the domestic primary balance.
At the end of December 2025, all quantitative performance criteria were achieved except the target on net domestic assets, for which the authorities requested a waiver. The IMF noted that all continuous performance criteria were observed.
Progress was also recorded under the RSF programme, with five reform measures completed during the third and fourth reviews, although several energy sector reforms remain under implementation.
The ECF programme, initially approved in July 2022, was designed to support Tanzania’s post-pandemic recovery, safeguard macro-financial stability and promote sustainable, inclusive growth. The RSF, approved in June 2024, complements these efforts by strengthening climate resilience and reducing balance-of-payments risks associated with climate change.
With the latest disbursement, Tanzania’s cumulative access under the ECF has reached approximately 1.06 billion US dollars (2.79tri/-), while financing under the RSF now totals about 636.5 million US dollars (1.67tri/-).
The latest approval comes as Tanzania continues to pursue broad-based economic reforms aimed at sustaining high growth, strengthening resilience against global shocks and creating the foundations for achieving its long-term ambition of becoming a high-income, competitive and inclusive economy by 2050.
