IMF Approves $153 Million To Support Tanzania

The executive board of the International Monetary Fund, IMF has approved the immediate disbursement of about $153 million in budgetary support to Tanzania.

Report says the disbursement was approved following the first review of Tanzania’s three-year extended credit facility.

The IMF said Tanzania’s economic reform program is progressing well in a challenging global economic environment, but authorities should work to boost domestic revenues while stepping up structural reforms to streamline bureaucracy and combat corruption.

The decision brings total disbursements under the $1.04 billion loan arrangement approved for Tanzania last year to about $305 million, the IMF said.

“Program performance has been strong. All quantitative performance criteria and indicative targets for December 2022 were met, and two of the three structural benchmarks for December 2022 were completed on time,” IMF Deputy Managing Director, Antoinette Sayeh said.

She said efforts to enhance domestic revenue mobilization and improve spending efficiency would help Tanzania finance priority investment and social spending while safeguarding debt sustainability.

“Strengthening public finance management and oversight of state-owned enterprises is critical to contain fiscal risks,” and authorities should clear domestic arrears and prevent accumulation of new ones by strengthening cash management and commitment controls, Ms. Sayeh said.

She added that Tanzania’s risk of debt distress remains moderate, but it was vital to continue prioritizing low-interest financing and ensure that risks from potential liabilities were well-contained.

REUTERS/Christopher Ojilere