The International Monetary Fund announced that its staff and the Tanzanian authorities have reached a staff-level agreement on the policies needed to complete the sixth and seventh reviews under the Extended Credit Facility and the third and fourth reviews under the Resilience and Sustainability Facility, which are the final reviews under both programs. Subject to approval by the IMF Executive Board in the coming weeks, completion of the reviews would make SDR 283.85 million available, equivalent to about USD 375.5 million, bringing total IMF support to SDR 795.58 million under the ECF arrangement and SDR 426.2 million under the RSF arrangement. The IMF said the programs’ broad objectives have been achieved, with strong growth, inflation within the Bank of Tanzania’s target range, adequate reserves coverage and higher spending on priority social sectors. For 2026, it projects growth of 5.9 percent, inflation of 4.7 percent and a current account deficit of 2.9 percent of GDP, reflecting spillovers from the war in the Middle East through higher oil and fertilizer prices and disruptions affecting agriculture, tourism and transport. The mission stressed the need for targeted, temporary and transparent support for vulnerable groups, warned that the Bank of Tanzania should be ready to raise policy rates if inflation pressures intensify while keeping the exchange rate as the main shock absorber, and highlighted fiscal priorities including strong tax revenue performance, timely tax refunds and continued clearance of domestic arrears. Over the medium term, the IMF projects growth rising to 6.3 percent with inflation remaining within the central bank’s 3 to 5 percent target range, while noting downside risks from the regional conflict, weaker global trade and development assistance, and possible domestic reform or fiscal slippage. It identified reform priorities as higher domestic revenue mobilisation, stronger public financial and investment management, greater central bank independence, improvements in the business environment, and continued climate-related reforms including broader social safety nets and investment in renewable energy.
International Monetary Fund 2026-05-12
International Monetary Fund reaches staff-level agreement with Tanzania on final ECF and RSF reviews unlocking SDR 283.85 million subject to Board approval
The IMF staff and Tanzanian authorities have reached a staff-level agreement on the final reviews under the Extended Credit Facility and the Resilience and Sustainability Facility, which, subject to Executive Board approval, would make SDR 283.85 million (about USD 375.5 million) available and bring total support to SDR 795.58 million and SDR 426.2 million respectively. The IMF says program objectives have broadly been achieved but stresses targeted support to vulnerable groups, readiness to tighten policy if inflation pressures rise, and continued fiscal discipline. Over the medium term, it projects growth at 6.3 percent with inflation within the 3 to 5 percent target range, contingent on reforms in revenue mobilisation, public financial management, central bank independence, the business environment and climate-related policies.