The International Monetary Fund (IMF) granted a total transfer of approximately $448.4 million to Tanzania in acknowledgement of the nation’s ongoing reform and economic improvement, following the conclusion of evaluations under two significant credit agreements.
The $448.4 million payout shows the IMF’s faith in Tanzania’s macroeconomic policies and ongoing structural reforms, and it comes after assessments under two important credit programs were successfully completed.
The IMF Executive Board completed the second review under the Resilience and Sustainability Facility (RSF) and the sixth review under the Extended Credit Facility (ECF) arrangement on Friday, in addition to wrapping up the 2025 Article IV consultation.
Under both arrangements, the action permits an immediate release to Tanzania of around $448.4 million (SDR 326.47 million).
- Advertisement -
The release of $155.7 million (SDR 113.37 million), or 28.5% of the nation’s IMF quota, is made possible by the conclusion of the fifth review under the ECF. With this, Tanzania now has roughly $908.3 million in overall access under the ECF arrangement.
The finished second review unlocks $292.7 million (SDR 213.1 million) under the RSF, which is 53.5% of the quota. This brings the total amount of access under this facility to around $345.4 million.
Tanzania’s macroeconomic metrics have been getting better, according to the IMF. In 2024, real GDP growth was 5.5%, and in 2025, it is expected to reach 6.0%. 6.5% growth is anticipated in the medium future, assuming that reforms are implemented consistently. In April 2025, inflation was steady at 3.2% annually, below the central bank’s objective.
Due to strong export performance, the current account deficit decreased from 3.8% of GDP to 2.6% of GDP in 2024.
Along with more exchange rate flexibility, the IMF also observed that the authorities kept their monetary policy stance neutral or slightly stimulative. The Fund cautioned that certain weaknesses still exist, but Tanzania’s banking industry is nevertheless robust.
- Advertisement -
The government postponed lower-priority spending in the last quarter of the 2024–2025 fiscal year after the budget balance significantly deteriorated in the third quarter.
Under the ECF and RSF, all quantitative performance standards and indicative goals for the end of 2024 were fulfilled.
The Secured Transaction Act implementation is still pending and has been postponed for the end of February 2026, even though two of the three structural benchmarks for the end of March 2025 were achieved, although with delays.
