The International Monetary Fund (IMF) has approved funding for Tanzania totaling $786.2 million to tackle climate change and provided an additional $149.4 million for budget support. This financial assistance comes as Tanzanian authorities are committed to implementing reforms to maintain macro-financial stability, promote economic recovery, and ensure sustainable growth.
Under President Samia Suluhu Hassan’s administration, Tanzania has embarked on significant economic reforms with the aim of returning to pre-pandemic levels of economic growth between 6% to 7%. The IMF has acknowledged Tanzania’s strong economic reform program, noting that economic growth bounced back in 2023 after a slowdown in the previous year.
Despite facing challenges from an unfavorable global economic environment, Tanzania’s economy has shown resilience, particularly in key sectors such as tourism, mining, agriculture, and manufacturing. The World Bank reports that the economy is projected to grow by 5.4% this year, up from 5.1% in 2023, thanks to a boost in the services sector.
The IMF emphasized that while economic recovery is expected to gather momentum, Tanzania must navigate challenges posed by climate change and extreme weather events. The narrowing current account deficit, driven by fiscal consolidation and favorable commodity prices, reflects the country’s efforts to strengthen its economic fundamentals.
Tanzania’s economic outlook remains positive, with the IMF’s support playing a crucial role in sustaining growth and development. As the country continues to implement reforms and address global economic challenges, it is positioning itself for a more robust and resilient economy in the years ahead.
