Dar es Salaam, June 28, 2025 — Tanzania has secured a significant financial boost as the International Monetary Fund (IMF) approved an immediate disbursement of approximately $448.4 million. This release follows the successful completion of the 2025 Article IV Consultation, the fifth review under the Extended Credit Facility (ECF), and the second review under the Resilience and Sustainability Facility (RSF) arrangements with the East African nation.
The disbursement comprises $155.7 million under the ECF and $292.7 million under the RSF, bringing Tanzania’s total access under these programs to over $1.25 billion. The funds are intended to support Tanzania’s ongoing economic reform agenda, which aims to foster inclusive growth, macroeconomic stability, and resilience against climate change impacts.
According to the IMF, Tanzania’s economy demonstrated robust recovery in 2024, with real GDP growth reaching 5.5%, and projections indicating an acceleration to 6.0% in 2025 and 6.5% over the medium term. These positive trends are underpinned by strong export performance, stable inflation maintained at 3.2% as of April 2025, and a narrowing current account deficit.
IMF Deputy Managing Director Kenji Okamura praised Tanzania’s commitment to reform implementation, emphasizing the importance of continued fiscal consolidation, improved revenue collection, and prudent budget management—particularly critical in the upcoming election year. He noted that while the reform program remains broadly on track, some delays persist, such as the postponed implementation of the Secured Transaction Act, now rescheduled for early 2026.
The IMF also highlighted the necessity of accelerating structural reforms to enhance the business climate, stimulate private sector development, and invest in human capital, especially in education and health sectors, to promote sustainable and inclusive growth. Additionally, the Fund commended Tanzania’s progress on climate-related reforms under the RSF, aimed at strengthening resilience to environmental risks.
Despite the optimistic outlook, the IMF cautioned against risks posed by an uncertain global environment, declining aid flows, and the pressures of a rapidly growing population projected to double by 2050. These challenges underscore the need for sustained policy efforts and development partner engagement to maintain Tanzania’s economic momentum.
This latest disbursement marks a pivotal moment in Tanzania’s journey toward fiscal sustainability and economic transformation, signaling strong international confidence in the country’s reform trajectory and growth potential.
