According to an IMF statement, the International Monetary Fund approved the first review of Tanzania’s three-year extended credit facility on Monday.
This allowed the immediate disbursement of approximately $153 million in budgetary support.
According to the international financial lender, Tanzania’s economic reform program is progressing well in a challenging global economic environment.
However, authorities must work to increase domestic revenues while accelerating structural reforms to streamline bureaucracy and combat corruption.
“Program performance has been excellent. 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,” said Antoinette Sayeh, Deputy Managing Director of the IMF.
She said efforts to increase domestic revenue mobilization and improve spending efficiency would assist Tanzania in financing priority investments and social spending while ensuring debt sustainability.
According to the IMF, the decision brings total disbursements under the $1.04 billion loan agreement approved for Tanzania last year to around $305 million.
“Strengthening public financial management and oversight of state-owned enterprises is critical to contain fiscal risks,” she said.
Tanzania is expected to become one of the fastest-growing economies in Africa, with a planned liquefied natural gas (LNG) project becoming the country’s largest-ever industrial investment.
