IMF approves over $900m for Tanzania budget, climate change fight

AFRICAN BUSINESS AND ECONOMYJune 23, 2024 at 5:24 PM UTC

TLDR

IMF approves $786.2 million in funding for Tanzania to address climate change and $149.4 million for budget support, emphasizing economic stability and growth reforms.
Tanzanian authorities commit to sustaining macro-financial stability, driving economic recovery, and fostering sustainable & inclusive growth.
President Samia Suluhu Hassan’s administration implements economic reforms to restore GDP growth rate to 6%-7% pre-pandemic levels.

The IMF's executive board has approved $786.2 million in funding for Tanzania to address climate change, along with a separate review that allows for the disbursement of $149.4 million for budget support in the East African nation.

The International Monetary Fund (IMF) stated that Tanzanian authorities are committed to continuing reforms to maintain macro-financial stability, enhance economic recovery, and promote sustainable and inclusive growth.

Over the past three years, President Samia Suluhu Hassan's administration has implemented various economic reforms aimed at restoring the country's economic growth to the pre-pandemic real GDP growth rate of 6% to 7%.

Key Takeaways

While economic recovery in Tanzania is expected to gain momentum, the IMF noted challenges from an “unfavorable global economic environment." Despite these challenges, Tanzania’s economy—reliant on tourism, mining, agriculture, and manufacturing—has shown resilience, particularly with a surge in the services sector, according to the World Bank. Minister of State in the President’s Office for Planning and Investment, Kitila Mkumbo, stated last week that the economy is forecast to accelerate to 5.4% this year, up from 5.1% in 2023. This resilience is notable despite facing back-to-back extreme weather events and climate change impacts.

Tanzania

IMF

Economic Reform

Economic Growth

GDP

World Bank

President Samia Suluhu Hassan