According to a statement from the IMF, the IMF authorized the first review of Tanzania's three-year extended credit facility on Monday. This clearance permitted the immediate budgetary support distribution of around $153 million.
Despite a challenging global economic climate, the international financial institution noted that Tanzania's economic reform program is progressing well.
However, authorities must work to increase domestic revenues while accelerating structural reforms to streamline bureaucracy and combat corruption.
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The IMF's Deputy Managing Director, Antoinette Sayeh, stated that the program's performance has been outstanding. Two of the three structural benchmarks for December 2022 were finished on time, and all of the quantitative performance requirements and indicative targets for December 2022 were met, he continued.
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.
As per the IMF, this latest decision means that the total disbursements under Tanzania's $1.04 billion loan agreement, approved last year, now stand at approximately $305 million. The IMF representative further emphasized the significance of enhancing public financial management and state-owned enterprise oversight to contain fiscal risks.
Tanzania has ambitious plans for growth, with a planned liquefied natural gas project set to become the country's largest-ever industrial investment. This is expected to propel Tanzania to become one of the fastest-growing economies in Africa.
