- IMF staff and the Tanzanian authorities reached staff-level agreement on the final reviews of the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF). Subject to IMF Executive Board approval, Tanzania will gain access to US$375.5 million in financing.
- The programs’ broad objectives have been met. Growth remains strong, inflation is low and stable, international reserves coverage is adequate, public spending on education and health has ticked up, and climate resilience has strengthened.
- With heightened external risks, prudent policies should continue to ensure macro-financial stability. In the medium to long term, achieving the goals of Tanzania’s Vision 2050 will require accelerated reforms to develop human capital and promote private sector-led growth and job creation.
Washington, DC: An International Monetary Fund (IMF) team led by Mr. Nicolas Blancher visited Tanzania during April 28 – May 12, 2026, and held discussions for the sixth and seventh reviews under the Extended Credit Facility (ECF), and the third and fourth reviews under the Resilience and Sustainability Facility (RSF). Subject to approval by the IMF Executive Board, the completion of the reviews will make available SDR 283.85 million (about US$375.5 million), bringing total IMF support to SDR 795.58 million (about US$1,052 million) under the ECF arrangement, and SDR 426.2 million (about US$563.8 million) under the RSF arrangement.
At the conclusion of the mission, Mr. Blancher issued the following statement:
“I am pleased to announce that the IMF team and the Tanzanian authorities have reached a staff-level agreement on the policies needed to complete the final reviews under Tanzania’s ECF- and RSF-supported programs. The IMF’s Executive Board will discuss these reviews in the coming weeks.
“The programs’ broad objectives have been achieved. Growth remains strong, inflation has been stable and within the Bank of Tanzania’s target range, international reserves coverage remains adequate, and spending on priority social sectors such as education and health has ticked up. The authorities have strengthened macroeconomic stability, built buffers, and improved resilience to economic shocks and risks from climate change.
“The economy’s ability to withstand spillovers from the war in the Middle East to date is welcome. Securing fuel supplies, allowing international oil price increases to pass through gradually to domestic prices, and relying on exchange rate flexibility have helped safeguard macroeconomic stability. The IMF team underscored the need to protect the most vulnerable through targeted, temporary, and transparent interventions in order to preserve fiscal space and sustainability. Bank of Tanzania should stand ready to raise policy rates if inflation pressures intensify, while allowing the exchange rate to remain the primary shock absorber.
“In 2026, growth is projected to remain at 5.9 percent, with inflation rising to 4.7 percent, and the current account deficit widening to 2.9 percent of GDP due to spillovers from the war in the Middle East. Higher oil and fertilizer prices and disruptions to global aviation and value chains will weigh on activity in the agriculture, tourism, and transportation sectors, and contribute to inflation and external pressures. Steadfast budget implementation, including maintaining strong tax revenue performance, is critical to safeguard priority social spending on health, education, and social protection and meet the authorities’ objective of fiscal sustainability. Timely payment of tax refunds and continued clearance of domestic arrears should also support activity in the private sector. A mildly stimulatory monetary policy stance remains appropriate as long as price stability is preserved.
“The medium-term economic outlook remains favorable, but risks are tilted to the downside. Growth would reach its potential of 6.3 percent over the medium term, assuming a strong outlook for mining, agriculture, and tourism, while inflation would remain within the central bank’s 3-5 percent target range. Despite the recent surge in oil prices, the current account deficit is projected to remain below 3 percent, aided by high gold prices. In addition to the impact of the war in the Middle East, external risks include a slowdown in the global economy and trade, geoeconomic fragmentation, and a further decline in foreign development assistance. Domestic risks include potential social unrest, fiscal pressures, or a reform slowdown.
“Building on achievements under the ECF- and RSF-supported programs, Tanzania’s economic growth and development will depend on accelerated reforms to achieve the ambitious goals under Tanzania’s Development Vision 2050, especially in the areas of human capital and private sector development. Key priorities are to further enhance domestic revenues to create fiscal space for priority social spending while sustaining investment in infrastructure; strengthen public financial and investment management; reinforce central bank independence; and improve the business environment. Continued reforms to address climate-related challenges should also help enhance economic resilience and sustainability, including by expanding the social safety net and supporting investment in renewable energy.
“The mission met with the Minister of Finance, Ambassador Khamis Mussa Omar; the Bank of Tanzania Governor, Mr. Emmanuel Tutuba; other senior officials; development partners; private sector representatives; and civil society organizations. The IMF team would like to thank the Tanzanian authorities and other counterparts for candid and productive discussions.”
READ MORE: https://www.imf.org/en/news/articles/2026/05/12/pr26149-tanzania-imf-staff-reach-sla-final-reviews-ecf-rsf
