Tanzania appreciates IMF support

DAR ES SALAAM: TANZANIA has expressed gratitude to the International Monetary Fund (IMF) for its continued support through various programmes which contribute to economic growth, control inflation and boosting the private sector.

The programmes in clude among others, the Extended Credit Facility (ECF) aimed at stimulating economic recovery post Covid-19 and the challenges arising from global geopolit ical conflicts, as well as the Resilience and Sustainabil ity Facility (RSF) designed to enhance the country’s capacity to mitigate climate change impacts.

The remarks were made yesterday by Vice-President Dr Philip Mpango during a meeting with the IMF Depu ty Managing Director Bo Li in Dar es Salaam.

Their discussions took place during a sideline event at the Africa Energy Summit which was concluded yesterday at the Nyerere International Convention Centre (JNICC) in Dar es Salaam.

“The ECF and RSF pro grammes have contributed significantly to economic growth, control inflation and increased lending to the private sector,” said Dr Mpango.

In response, Mr Bo Li commended Tanzania for strengthening its economy and successfully implementing cooperative programmes, including those under the ECF and RSF.

He also lauded Tanzania for effectively executing the ECF programme and achieving high ratings in the fourth assessment.

Mr Li recognised Tan zania as a model country, selected alongside Madagascar, to implement a com prehensive plan for securing environmental funding from various stakeholders, including the private sector, development partners and Non-Governmental Organisations.

In October last year, IMF and the World Bank Group (WBG) designated Tanzania as the second country, after Madagascar, to benefit from the ECF for Scaled-Up Cli mate Action.

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The initiative aimed at addressing the country’s adverse impacts of climate change.

The IMF Executive Board approved an arrange ment under the RSF in June 2024, but also the active engagement of WBG in climate action efforts in Tanzania.

Both institutions emphasised their commitment to supporting Tanzania due to its high vulnerability to cli mate change, which presents significant risks to its macroeconomic stability, fiscal health and social development.

They said that through the framework, they aim to collaborate with other development partners to help Tanzania to overcome the risks and challenges associated with climate change.

“Through the Framework, the IMF and WBG, working closely with other development partners, will coordinate their efforts to support Tanzania’s ambitious policy reform agenda to address risks and challenges associated with cli mate change and enhance the resilience of the Tanzanian economy,” read part of the statement.

The initiative focused on adoption of an integrated, country-led approach to poli cy reforms and investments, both public and private, utilising complementary and well sequenced reform measures.

Tanzanian authorities, in collaboration with WBG and the IMF, pinpointed key areas for synergy in capacity development and policy support.

These focus on climate resilient public financial management, energy, water and other reforms to promote sustainable development.

The IMF Deputy Managing Director Bo Li is among delegates from distinguished world organisations and African Head of States from 25 counties who convened in Dar es Salaam in a two-day Africa Energy Summit in which the Dar es Salaam Declaration was signed.