Africa-Press – Tanzania. THE Executive Board of the International Monetary Fund (IMF) yesterday concluded the 2025 Article IV Consultation with Tanzania and completed the fifth review of the Extended Credit Facility (ECF) arrangement and the second review of the Resilience and Sustainability Framework (RSF) arrangement.
According to the statement released by IMF yesterday, the completion of the fifth ECF review allows for the immediate disbursement of about 155.7 million US dollar (about 410.6bn/-), bringing Tanzania’s total access under the ECF arrangement to about 908.3 million US dollar (about 2.4tri/-).
Moreover, the completion of the second RSF review allows for the immediate disbursement of about 292.7 million US dollar (about 771.9bn/-), bringing Tanzania’s total access under the RSF arrangement to about 345.4 million US dollar (about 910.8bn/-).
The 40-month ECF arrangement with Tanzania for a total access of about 1,046.4 million US dollar (about 2.8tri/-) at the time of programme approval was initially approved in July 2022, and was extended by six months in June 2024.
The arrangement aims to support economic recovery, preserve macrofinancial stability and promote sustainable and inclusive growth.
The 23-month RSF arrangement with Tanzania, approved in June 2024, supports the authorities’ reforms to reduce prospective balance of payments risks and enhance economic resilience to climate change.
Tanzania’s economic reform programme under the ECF arrangement remained on track. All end-December 2024 quantitative performance criteria and indicative targets were met and two end-December 2024 structural benchmarks were completed on time.
Two of the three endMarch SBs were implemented with delay, but the Secured Transaction Act has not been implemented and is reset to end-February 2026. All five reform measures (RMs) for this review were implemented despite challenges in meeting indicative timelines.
IMF Deputy Managing Director and Acting Chair, Mr Kenji Okamura said Tanzania’s reform programme supported by the ECF has remained broadly on track.
He added that amid downside risks to the economic outlook and daunting challenges to reduce poverty, the authorities’ strong commitment to reform implementation, as well as continued engagement and capacity support by development partners, are critical.
“The authorities’ plan to resume growth-friendly fiscal consolidation in FY25/26 is welcome and will require steadfast implementation of revenue measures and strict cash management and commitment controls to ensure that spending is consistent with revenue outturns,” he said.
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