- The Executive Board of the International Monetary Fund (IMF) has approved $1.04 billion for Tanzania.
- According To Business Insider Africa $151.7 million, out of the total sum, would be disbursed immediately.
A statement by the IMF explained that the 40-month financing package will assist Tanzania’s economic recovery efforts, as well as help to address some of the economic issues the country has faced since Russia’s war on Ukraine began.
“Spillovers from the war in Ukraine are stalling the Tanzanian economy’s gradual recovery from the COVID-19 pandemic, exacerbating the country’s development and reform challenges to unleash its economic potential. The ECF arrangement is centered on supporting the economic recovery from the scarring effects of COVID-19 and coping with spillovers from the war in Ukraine; preserving macroeconomic stability; and advancing the structural reform agenda toward sustainable and inclusive growth. The program draws from the key priorities of the government’s Five-Year Development Plan. IMF financial support is also expected to help stimulate private sector investment and catalyze financial support from development partners,” the IMF said.
Meanwhile, IMF directors have also commended the Tanzania’s commitment to reform implementation, as well as the government’s economic response to the pandemic as well as for the policies that have already been put in place to checkmate the economic spillover economic effect of the ongoing war in Ukraine.
According to IMF’s Deputy Managing Director and Acting Chair Mr. Bo Li, it was in consideration of these accomplishments that the directors agreed to Tanzania’s loan request.
Mr Li concluded his remarks by noting that IMF directors have welcomed Tanzania’s plan to rebalance expenditure towards social spending, as well as plans to tighten monetary policy.
Recall that the IMF’s Executive Board had also approved a $235.6 million loan for Kenya and commended the East African country for the progress made so far in managing the country’s economy.