The International Monetary Fund has praised Tanzania for maintaining strong economic stability and effective policy management, following agreement on the final review of key economic support programmes that will unlock more than 375.5 million US dollars in concessional financing.
The agreement covers the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF), programmes designed to support economic growth, improve public services, and strengthen Tanzania’s ability to cope with climate change impacts.
Once approved by the IMF Executive Board, the funds will be disbursed, increasing total support under the programmes to more than 1.052 billion US dollars for development projects and an additional 563.8 million US dollars for climate resilience initiatives since the start of implementation.
The announcement was made in Dar es Salaam by IMF mission chief Nicolas Blancher after discussions with government officials at the Bank of Tanzania headquarters. The Tanzanian delegation was led by the Minister of Finance, Khamis Mussa Omar.
The IMF said Tanzania’s economy has remained stable despite global challenges. Economic growth has continued steadily, inflation has remained within the Bank of Tanzania’s target range of 3 to 5 percent, and foreign exchange reserves are at a comfortable level.
The central bank, Bank of Tanzania, was also praised for maintaining financial stability and supporting a strong banking system.
The Fund noted that government spending has increased in important sectors such as education, health, and climate resilience.
These investments are helping improve services for citizens while also strengthening the country’s ability to respond to environmental and economic shocks.
IMF mission chief Nicolas Blancher said Tanzania has achieved strong macroeconomic stability.
He said: “Overall, the authorities have maintained macroeconomic stability, strengthened resilience to climate shocks, and improved policy implementation.”
The IMF also projected that Tanzania’s economy will grow by 5.9 percent in 2026, supported by continued government investment, private sector growth, and stable prices.
It further praised the government for improving revenue collection, maintaining disciplined public spending, and ensuring timely payment of domestic obligations such as tax refunds and supplier payments.
These efforts, according to the IMF, are helping to boost business confidence, support job creation, and protect essential public services such as education, health care, and social protection.
Looking ahead, the IMF said Tanzania has strong potential to achieve its long-term development goals under Vision 2050 if it continues implementing key reforms.
These include improving skills development for citizens, strengthening the business environment, expanding opportunities for the private sector, and improving management of public finances.
The Fund also emphasized the need to increase domestic revenue so that the government can fund more development projects while continuing to invest in infrastructure.
Other priorities include strengthening transparency in public spending, improving the independence of monetary policy institutions, and creating a more supportive environment for investment and business growth.
Climate change reforms were also highlighted as important for the country’s future. The IMF said continued action in this area will help protect livelihoods, improve social protection systems, and support investment in clean and renewable energy.
Minister Khamis Mussa Omar said the government will continue working closely with development partners to ensure the funds are used properly and deliver real benefits to citizens.
He said the goal is to build a strong and inclusive economy that improves living standards, creates opportunities, and ensures sustainable development for all Tanzanians.
