Tanzania has secured a new financial boost after the International Monetary Fund (IMF) approved the immediate release of about US$443.9 million following the successful completion of reviews under two major economic support programmes.
The funds, approved under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF), are expected to strengthen economic stability, support development priorities and enhance the country’s ability to respond to climate-related challenges.
The IMF said the decision followed the completion of the sixth and seventh reviews of the ECF programme and the third and fourth reviews of the RSF programme.
The approved amount includes US$158.75 million under the ECF and US$298.37 million under the RSF.
The latest financing comes as Tanzania continues efforts to expand economic activities, improve public services and create a more resilient economy.
In its assessment, the IMF said Tanzania’s economy remained strong, with economic growth reaching 5.9 per cent in 2025 and projected to rise to about 6.2 per cent over the medium term.
The Fund identified mining, agriculture and tourism as among the key sectors expected to drive future growth, supported by continued investment and policy measures aimed at improving productivity.
The IMF also noted that Tanzania has maintained macroeconomic stability, with inflation remaining under control at 4.0 per cent in June 2026.
However, it warned that increases in global fuel prices continue to put pressure on production costs and the cost of living.
The assessment showed that Tanzania had made progress in implementing economic reforms, with most performance targets achieved within the agreed timelines.
However, the IMF pointed out that some reforms require further attention, particularly in the energy sector, VAT administration, Bank of Tanzania governance and public investment management.
The approval of the new financing provides additional support for the government’s efforts to strengthen economic resilience, attract investment and promote sustainable growth.
Economists say continued focus on productive sectors, efficient public spending and reforms that improve the business environment will be important in ensuring that economic growth translates into improved opportunities and better livelihoods for citizens.
