IMF Approves Over $900 Million to Support Tanzania’s Budget and Climate Change Efforts

The International Monetary Fund (IMF) has approved significant financial aid for Tanzania, totalling over $900 million, aimed at bolstering both its budget and efforts against climate change. 

The approval includes $786.2 million earmarked for climate change initiatives and $149.4 million for general budget support, highlighting the IMF’s commitment to Tanzania’s economic stability and environmental resilience.

In a statement, the IMF praised Tanzania’s ongoing economic reforms under President Samia Suluhu Hassan’s administration, aimed at restoring pre-pandemic growth levels. 

The reforms have reportedly strengthened macro-financial stability and spurred economic recovery, with growth rebounding notably in 2023 after a slowdown in the previous year.

Despite facing challenges from a challenging global economic landscape, Tanzania’s diverse economy, centred on sectors such as tourism, mining, agriculture, and manufacturing, has demonstrated resilience. 

The country’s economic outlook remains optimistic, with forecasts suggesting growth could reach 5.4 percent this year, up from 5.1 percent in 2023.

Source: The East African