The International Monetary Fund (IMF) Executive Board has concluded the 2025 Article IV Consultation with Tanzania, completing both the fifth review under the Extended Credit Facility (ECF) and the second review under the Resilience and Sustainability Framework (RSF). This completion allows for immediate disbursements of approximately US$ 155.7 million under the ECF and US$ 292.7 million under the RSF, bringing Tanzania's total access to about US$ 908.3 million and US$ 345.4 million respectively.
The ECF arrangement, initially approved in July 2022 and extended in June 2024, aims to support economic recovery, preserve macro-financial stability, and promote sustainable growth. The RSF arrangement supports reforms to reduce balance of payments risks and enhance resilience to climate change.
Tanzania's economic reform program remains on track with all end-December 2024 performance criteria met. Economic activity has gained momentum with real GDP growth reaching 5.5% in CY24 and inflation stable at 3.2% as of April 2025. However, challenges persist including a weakened fiscal balance in FY25 due to delayed lower priority spending.
The medium-term outlook for Tanzania is favorable but contingent on sustained reform implementation. Risks include an uncertain external environment and potential delays in reforms amid demographic pressures that challenge poverty reduction efforts.
Following discussions, Mr. Okamura, Deputy Managing Director and Acting Chair stated: “Tanzania’s reform program supported by the Extended Credit Facility (ECF) remains broadly on track... Continued engagement and capacity support by development partners are critical.”
The IMF Directors emphasized fiscal consolidation plans for FY25/26 requiring revenue measures, strict cash management, public financial management reforms, increased human capital investment through education and health spending, as well as structural reforms to foster private sector growth.
The next Article IV consultation with Tanzania will follow according to IMF cycles for members with Fund arrangements.