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The International Monetary Fund (IMF) has reached a preliminary agreement with the Tanzanian government that, once formally approved, will unlock approximately $441 million to support the country’s economy.
This announcement follows the completion of the fifth review under the Extended Credit Facility (ECF) and the second review under the Resilience and Sustainability Facility (RSF). The agreement was reached after discussions held from April 2 to 17, 2025, between an IMF team led by Nicolas Blancher and Tanzanian authorities.
Tanzania’s delegation was headed by Finance Minister Dr. Mwigulu Nchemba and Bank of Tanzania Governor Emmanuel Tutuba. Other key stakeholders included senior government officials, development partners, private sector representatives, and civil society organizations.
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According to the IMF, Tanzania’s economic performance remains strong, with gross domestic product (GDP) growth recorded at 5.5 percent in 2024 and projected to rise to 6 percent in 2025.
Inflation remains under control, standing at 3.3 percent in March—below the Bank of Tanzania’s target ceiling of 5 percent. However, the IMF warned that certain risks could pose challenges to economic stability. These include global uncertainties, ongoing conflict in the Democratic Republic of the Congo, and Tanzania’s upcoming general elections, which may increase spending or delay the implementation of economic reforms.
The IMF commended Tanzania’s efforts to boost domestic revenue collection and improve public spending efficiency, particularly in key sectors such as education, healthcare, and repayment of domestic debt.
The Bank of Tanzania also received praise for allowing exchange rate flexibility and strengthening the foreign exchange market. The agreement is expected to be submitted to the IMF Executive Board in the coming weeks. Upon approval, the funds will be disbursed to Tanzania.
