IMF, Tanzania to hold discussions

President, John Magufuli gives bid fare to the International Monetary Fund director for Africa Department, Abebe Aemro Selassie (left) after they held meeting at state house in Dar es Salaam yesterday. Looking on is the minister for finance and planning Dr Phillip Mpango PHOTO | STATE HOUSE

Dar es Salaam. Experts from the International Monetary Fund and the Tanzanian governments are set to meet in the coming weeks to review the country economic growth statistics following a recent controversy over the matter, the State House has said.

The decision to hold consultations was reached after President John Magufuli and IMF director for Africa Abebe Aemro Selassie held talks in Dar es Salaam yesterday.

During the talks, Mr Abebe said experts from Washington would review the IMF growth forecast data and compare them with those of the government, says the statement that was released and signed by the director of presidential communications Gerson Msigwa.

The government and the IMF have been at loggerheads over the latter’s decision to review Tanzania’s economic growth projection for 2019 to four per cent from the earlier projection of 6 to 7 per cent. Tanzania was flatly opposed to the downward review of the figure and the IMF claimed that the country blocked the release of the country report that had included the reviewed growth figure. But Dr Phillip Mpango, the Minister for Finance, denied that the government had blocked the report saying that Tanzania only wanted further consultations before the report was released.

“I was in Washington recently and I met the IMF’s director of Africa and we agreed to initiate consultations,” Dr Mpango told the Parliament last month.

Grand infrastructure projects

The government wants the big infrastructure projects, currently under implementation be used to gauge the forecast.

Dr Mpango, who apparently attended yesterday’s talks, was quoted in the statement as saying that his ministry will ensure that all the information regarding the implementation of grand projects, such as the construction of the Stiegler’s Gorge hydro-electronic dam as well as that of the Standard Gauge Railways are included in the final IMF report.

“Building the infrastructure is key for economic growth and this is what President Magufuli has been doing… Unfortunately the IMF did not put these issues into consideration in their first report,” Dr Mpango was quoted as saying.

Prof Palamagamba Kabudi, the Minister for Foreign Affairs, said the statement that he was happy that investors’ confidence remained strong despite the leakage of the IMF report.

“I am grateful that investors have continued coming, but I am also happy that the IMF team has seen the need for further consultations with us. Those who though the IMF and Tanzania were “at war” were quite mistaken and Tanzania’s position will be known after the talks.” Prof Kabudi noted.

Tanzania joined the IMF on September 10, 1962.