The International Monetary Fund (IMF) has applauded Tanzania for its outstanding commitment to implementing the country’s economic reform agenda.
In a recent visit to Tanzania, IMF Deputy Managing Director Bo Li commended the authorities for their efforts in preserving macroeconomic stability and ensuring the country’s resilience in a challenging global environment.
One of the key achievements highlighted by Mr. Bo was the Tanzanian authorities’ swift policy response to contain inflation and protect the economy from the spillover effects of the war in Ukraine. This proactive approach helped cushion the impact of external shocks and maintain stability within the country.
Furthermore, the IMF has expressed its support for Tanzania’s ongoing efforts to enhance domestic revenue mobilisation through tax reforms. By strengthening the tax system, Tanzania can create the fiscal space necessary to finance social spending and prioritise investments in critical areas such as education and healthcare.
In April, the IMF completed the first review of the Extended Credit Facility (ECF) program, which unlocked approximately $153 million for budget support. This additional funding brings Tanzania’s total access under the program to about $304.7 million. The three-year program, totaling $1.04 billion, was approved by the IMF board in July 2022, with an immediate disbursement of approximately $151.7 million.
Despite the challenges posed by the war in Ukraine and domestic factors, Tanzania’s economy is expected to recover and grow by an estimated 5.2 percent this year. The IMF predicts that as global commodity price shocks dissipate and the business environment improves, Tanzania’s economic trajectory will regain momentum.
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