Washington, DC. The Executive Board of the International Monetary Fund (IMF) has completed the final reviews of Tanzania's economic reform programmes under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF), paving the way for the immediate disbursement of about $443.8 million.
The approval allows Tanzania to access $154.1 million under the ECF and $289.7 million under the RSF.
With the latest disbursement, Tanzania has received a total of about $1.063 billion under the ECF programme and $636.5 million under the RSF arrangement.
The 40-month ECF programme, approved in July 2022 and later extended, supports Tanzania's efforts to sustain economic recovery, preserve macroeconomic stability and promote inclusive growth. The RSF programme, approved in June 2024, supports reforms aimed at strengthening resilience to climate change and reducing external vulnerabilities.
The IMF said Tanzania's reform programme remained broadly on track. All performance criteria for June 2025 were met, while most targets for September and December 2025 were achieved. The authorities requested a waiver for missing the target on net domestic assets at the end of December 2025.
The Fund also noted that four structural reform benchmarks were implemented on schedule, while three were completed with delays. Five climate-related reform measures under the RSF were completed, although three reforms in the energy sector remain outstanding.
The IMF said Tanzania continued to post strong economic performance, with GDP expanding by 5.9 percent in 2025 and annual inflation remaining contained at 4.0 percent in June 2026 despite rising fuel prices.
The current account deficit is expected to remain broadly stable in the 2025/26 financial year, supported by strong gold exports that are helping offset higher import costs linked to the conflict in the Middle East.
However, the Fund warned that a prolonged conflict in the Middle East could weaken growth prospects and increase inflationary pressures.
It stressed that accelerating structural reforms would be essential to sustain economic growth, improve fiscal sustainability and create employment opportunities for Tanzania's rapidly growing population.
Commenting after the Executive Board meeting, IMF Deputy Managing Director and Acting Chair Mr Bo Li said Tanzania had maintained macroeconomic stability despite external and domestic shocks.
He said continued fiscal consolidation, stronger domestic revenue mobilisation, reforms to value-added tax (VAT) refunds and improvements in public financial management would create additional fiscal space for priority spending on education and healthcare.
Mr Li also urged the Bank of Tanzania to remain vigilant against inflationary pressures while maintaining adequate foreign exchange reserves and exchange rate flexibility to cushion the economy from external shocks.
He further called for faster reforms to improve the business environment, strengthen private sector development and enhance climate resilience to support Tanzania's long-term development goals under Vision 2050.
