The International Monetary Fund (IMF) has reached a staff-level agreement with Tanzanian authorities on the final reviews of the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF), paving the way for a potential disbursement of US$375.5 million, subject to Executive Board approval.
The agreement follows discussions held between April 28 and May 12, 2026, led by an IMF mission headed by Nicolas Blancher.
The IMF said the programmes’ core objectives have largely been achieved, noting that Tanzania continues to record strong growth, low and stable inflation, adequate foreign reserves, and increased public spending on education and health. The Fund also highlighted progress in strengthening climate resilience. However, it cautioned that heightened external risks require continued prudent macroeconomic policies to preserve stability.
In its outlook, the IMF projected Tanzania’s growth to remain robust at 5.9% in 2026, with inflation rising modestly to 4.7% and the current account deficit widening to 2.9% of GDP due to global spillovers, including higher oil and fertilizer prices linked to geopolitical tensions.
The Fund urged authorities to maintain fiscal discipline, improve tax revenue performance, clear domestic arrears, and safeguard priority social spending, while also strengthening monetary policy to respond to potential inflationary pressures.
Looking ahead, the IMF said Tanzania’s long-term development goals under Vision 2050 will depend on deeper structural reforms, particularly in human capital development, private sector growth, infrastructure investment, and climate resilience.
The mission held discussions with senior Tanzanian officials, including Finance Minister Khamis Mussa Omar and Bank of Tanzania Governor Emmanuel Tutuba, as well as development partners and civil society stakeholders.