The International Monetary Fund (IMF) has praised Tanzania’s strong economic performance and approved continued financial support worth about 375.5 million US dollars, aimed at boosting economic growth, improving public services, and strengthening the country’s ability to respond to climate change challenges.
The approval follows successful technical discussions between the Government of Tanzania and an IMF delegation led by Nicolas Blancher.
The review covered two major programmes—the Extended Credit Facility (ECF), which supports economic reforms and growth, and the Resilience and Sustainability Facility (RSF), which focuses on climate change adaptation and long-term sustainability.
Once formally approved by the IMF Executive Board, the new funding will raise Tanzania’s total support under the programmes to about 1.052 billion US dollars for economic development and an additional 563.8 million US dollars for climate-related interventions.
The funds are expected to accelerate key government priorities, including infrastructure development, expansion of social services, and strengthening resilience against economic and environmental shocks.
The announcement was made after a meeting held at the Bank of Tanzania headquarters in Dar es Salaam, where IMF officials and Tanzanian government representatives reviewed progress in implementing agreed reforms.
The Tanzanian delegation was led by the Minister of Finance, Ambassador Khamis Mussa Omar.
IMF mission chief Nicolas Blancher said Tanzania has performed well under the programmes, noting that most economic targets have been achieved.
He commended the government for maintaining stability in a challenging global environment.
According to the IMF assessment, Tanzania’s economy has remained stable, with inflation staying within the Bank of Tanzania’s target range.
Foreign exchange reserves are at a comfortable level, and economic growth continues to show resilience.
The government has also increased investment in key social sectors such as health and education, while stepping up efforts to address climate-related risks.
The IMF further noted improvements in public financial management, including better budget execution, stronger domestic revenue collection, and timely payment of government obligations such as tax refunds and domestic arrears.
These reforms, the Fund said, have helped support private sector growth while ensuring continued investment in essential public services.
Mr. Blancher highlighted that sound fiscal and monetary policies have played a key role in helping Tanzania withstand global challenges such as geopolitical tensions and rising commodity prices.
He said continued discipline in economic management will be important for sustaining stability and growth.
The IMF projects that Tanzania’s economy will grow by about 5.9 percent in 2026, supported by ongoing investments in infrastructure, services, and productive sectors. Inflation is expected to remain stable within the 3 to 5 percent range set by the Bank of Tanzania.
The Fund also noted that Tanzania is well positioned to achieve its long-term development goals as outlined in Vision 2050.
However, it emphasized that continued reforms will be essential to strengthen skills development, improve the business environment, and increase private sector participation in the economy.
Key priorities going forward include increasing domestic revenue collection to create more room for government investment in priority areas, strengthening management of public finances, improving the efficiency of public investments, and enhancing the independence and effectiveness of financial institutions.
The IMF also emphasized the importance of climate action, noting that Tanzania’s efforts to integrate climate resilience into national planning will help protect the economy from future shocks.
Investments in renewable energy and expanded social protection systems were highlighted as important steps toward sustainable development.
Speaking after the talks, Minister of Finance Khamis Mussa Omar assured the IMF that Tanzania will continue implementing the agreed reforms responsibly and effectively.
He said the government remains committed to ensuring that all funds are used transparently and directed toward improving the lives of citizens.
He added that Tanzania’s priority is to build a stable, inclusive, and self-reliant economy that delivers real benefits to people through better services, job creation, and sustainable development.
The IMF concluded that Tanzania’s strong performance reflects good policy management and commitment to reform.
With continued discipline and reforms, the country is expected to maintain stability while accelerating inclusive growth that benefits all citizens.
