The International Monetary Fund (IMF) has approved a total disbursement of about $448.4 million to Tanzania following the completion of reviews under two key lending arrangements, in recognition of the country’s continued economic improvement and reform progress.
- The IMF approved a $448.4 million disbursement to Tanzania under key lending arrangements due to economic improvements.
- Tanzania’s economic indicators show positive trends, including a GDP growth rate projected to reach 6.0% in 2025.
- Tanzania’s achievements under the ECF and RSF included meeting all quantitative criteria and most structural benchmarks.
The $448.4 million disbursement follows the successful completion of reviews under two key lending programmes and signals the IMF’s confidence in Tanzania’s macroeconomic policies and ongoing structural reforms.
The IMF Executive Board on Friday concluded the 2025 Article IV consultation and completed the fifth review under the Extended Credit Facility (ECF) arrangement, as well as the second review under the Resilience and Sustainability Facility (RSF).
The move allows for an immediate disbursement of about $448.4 million (SDR 326.47 million) to Tanzania under both arrangements.
The completion of the fifth review under the ECF enables the release of $155.7 million (SDR 113.37 million), representing 28.5% of the country’s IMF quota. This brings Tanzania’s total access under the ECF arrangement to approximately $908.3 million.
Under the RSF, the completed second review unlocks $292.7 million (SDR 213.1 million), equivalent to 53.5% of quota, raising total access under this facility to around $345.4 million.
The IMF said Tanzania’s macroeconomic indicators have continued to improve. Real GDP growth reached 5.5% in 2024 and is projected to rise to 6.0% in 2025. Medium-term growth is forecast at 6.5%, contingent on sustained reform implementation. Inflation remained steady at 3.2% year-on-year in April 2025, staying below the central bank’s target.
The current account deficit narrowed to 2.6% of GDP in 2024, down from 3.8% the previous year, supported by a robust export performance.
The IMF also noted that the authorities maintained a neutral or mildly stimulative monetary policy stance, alongside increased exchange rate flexibility. Tanzania’s banking sector remains resilient, although the Fund warned that some vulnerabilities persist.
The fiscal balance weakened markedly in the third quarter of the 2024/25 fiscal year, prompting the government to delay lower-priority spending in the final quarter.
Continued reform commitment and risk outlook
All quantitative performance criteria and indicative targets for end-December 2024 under the ECF and RSF were met.
While two of three structural benchmarks for end-March 2025 were implemented, albeit with delays, the implementation of the Secured Transaction Act remains pending and has now been rescheduled for end-February 2026.
Looking ahead, the IMF warned that while economic conditions are expected to remain favorable, risks are tilted to the downside.
The Tanzanian authorities reaffirmed their commitment to reforms aimed at maintaining macro-financial stability, promoting inclusive and sustainable growth, advancing structural changes, and addressing climate-related challenges.
The IMF also stressed the importance of continued support from development partners to sustain momentum and enhance capacity.
Fathia Olasupo
