The Executive Board of the International Monetary Fund (IMF) approved a 40-month extended arrangement under the Extended Credit Facility (ECF) for Tanzania, with access equivalent to SDR 795.58 (200 percent of quota, equivalent to US$1,046.4 million).

The Board’s approval allows for an immediate disbursement equivalent to US$151.7 million. The ECF arrangement follows Fund emergency support to Tanzania in 2021 (100 percent of quota, equivalent to US$561.5 million). The arrangement is expected to catalyze additional bilateral and multilateral financial support.

The ECF arrangement is centered on supporting the economic recovery from the scarring effects of COVID-19 and coping with spillovers from the war in Ukraine; preserving macroeconomic stability; and advancing the structural reform agenda toward sustainable and inclusive growth.

The program draws from the key priorities of the government’s Five-Year Development Plan. IMF financial support is also expected to help stimulate private sector investment and catalyze financial support from development partners.