The International Monetary Fund (IMF) has approved a significant financial support package of approximately 448.4 million U.S. dollars for Tanzania. The decision, made by the IMF Executive Board on Friday, June 27, marks a crucial boost for the East African nation’s efforts to enhance economic stability and build resilience against climate change.

This disbursement follows the successful completion of the fifth review under Tanzania’s Extended Credit Facility (ECF) arrangement and the second review under the Resilience and Sustainability Facility (RSF) arrangement. The funding is particularly timely as Tanzania gears up for national elections scheduled for later this year.

The IMF highlighted Tanzania’s continued economic improvement, with real GDP growth reaching 5.5% in 2024 and projected to rise to 6.0% in 2025. Inflation has remained stable, staying below the central bank’s target.

The financial support is intended to bolster the country’s ongoing economic reform process, which includes efforts to strengthen the business environment, improve public financial management, and accelerate structural reforms. The Resilience and Sustainability Facility component, specifically, focuses on supporting policies that address balance of payment risks and enhance the nation’s capacity to adapt to climate vulnerabilities.

IMF officials noted that while Tanzania’s reform program remains broadly on track, continued commitment to implementation, especially in areas like domestic revenue mobilization and prudent fiscal management, will be critical. The emphasis on economic stability and climate resilience comes as Tanzania prepares for a significant political event with general elections slated for October 28, 2025.

By: TPA News Desk | editor@thepointafricanews.com