The Executive Board of the International Monetary Fund (IMF) has approved the disbursement of US$443.9 million to Tanzania following the completion of the sixth and seventh reviews under the Extended Credit Facility (ECF) Arrangement and the third and fourth reviews under the Resilience and Sustainability Facility (RSF) Arrangement.
In its announcement on July 10, 2026, the IMF highlighted that Tanzania’s macroeconomic indicators remain on track under the program.
“Completion of the sixth and seventh reviews under the ECF arrangement allows the immediate disbursement of SDR 113.37 million (28.5 percent of quota – about US$154.1 million), bringing Tanzania’s total access under the ECF arrangement to about US$1,063 million,” the IMF statement explained.
The IMF added: “Completion of the third and fourth reviews under the RSF arrangement allows the immediate disbursement of SDR 213.12 million (53.5 percent of quota – about US$289.7 million), bringing Tanzania’s total access under the RSF arrangement to about US$636.5 million.”
Under the program, Tanzania was required to implement several economic reforms, including transitioning to an interest-rate-based monetary policy framework, increasing exchange rate flexibility, enhancing the transparency of foreign exchange policies.
Also amending the Bank of Tanzania Act. Other issues include repealing income tax exemptions provided to export processing zones and special economic zones, and drafting a secured transactions law to facilitate collateral recovery and broaden the pool of acceptable collateral to include movable assets.
The reforms also require the Tanzania Revenue Authority to complete the automation of the VAT refund process and submit to Parliament amendments to the VAT Act requiring legitimate VAT refunds to be paid by the end of the month following the month in which the refund was claimed.
The IMF statement noted that most of the reform requirements had been met on schedule, with a few exceptions, including measures related to the energy sector.
The energy-related requirements include introducing an environmental tax on domestic consumption of carbon-emitting sources, including coal and natural gas. They also include a proposal to increase electricity tariffs to “fully reflect operational and investment costs of the energy transition.”
In its statement, the IMF cautioned about risks associated with the conflict in the Middle East.
“While the medium-term outlook is positive, downside risks have increased. In particular, a prolonged conflict in the Middle East would weaken the growth outlook and intensify inflation pressures,” the IMF noted.
The statement emphasized the need to accelerate the pace of reforms under the program, warning that delays could weaken economic growth.
