Tanzania has secured another boost to its reform agenda. The IMF cleared the disbursement after final reviews of its programme portfolio. The decision reflects progress on macroeconomic stabilisation and climate reforms. It also leaves a clear agenda on fiscal discipline and energy-sector changes.

Programme completion

The IMF Executive Board completed the final reviews of Tanzania’s Extended Credit Facility and Resilience and Sustainability Facility programmes. The approval unlocks an immediate disbursement of US$154.1 million under the ECF and US$289.7 million under the RSF.

That takes Tanzania’s total access under the ECF to about US$1.063 billion. It also lifts total support under the RSF to US$636.5 million. The ECF programme ran for 40 months after its approval in July 2022 and was later extended. The RSF was approved in June 2024.

The IMF said Tanzania’s reform programme remained broadly on track. All performance criteria for June 2025 were met. Most targets for September and December 2025 were also achieved. However, the authorities asked for a waiver after missing the net domestic assets target at end-December 2025.

The Fund also said four structural benchmarks were completed on schedule. Three others were completed later than planned. Five climate-related measures under the RSF were also completed. However, three energy-sector reforms still remain outstanding.

Investor message

The IMF said Tanzania kept strong economic momentum through the review period. It said GDP grew by 5.9 percent in 2025. It also said annual inflation stood at 4.0 percent in June 2026, despite higher fuel prices.

The current account deficit is expected to stay broadly stable in the 2025/26 financial year. Strong gold exports are helping to offset higher import costs linked to Middle East tensions. However, the Fund warned that a prolonged conflict could weaken growth and raise inflation.

Bo Li, the IMF’s Deputy Managing Director and Acting Chair, said Tanzania had maintained macroeconomic stability despite external and domestic shocks. He urged continued fiscal consolidation, stronger domestic revenue mobilisation and reforms to value-added tax refunds. He also called for better public financial management, a tighter grip on inflation and more exchange rate flexibility.

For investors, the latest IMF Tanzania funding decision strengthens confidence in the policy path. It also adds support for education and healthcare spending. The next focus will be delivery on fiscal reform, energy-sector changes and business-environment measures under Vision 2050.

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