United Republic of Tanzania: Forth Review Under the Extended Credit Facility Arrangement and First Review Under the Resilience and Sustainability Facility Arrangement -Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania

FOURTH REVIEW UNDER THE EXTENDED CREDITFACILITY ARRANGEMENT AND FIRST REVIEW UNDERTHE RESILIENCE AND SUSTAINABILITY FACILITYARRANGEMENT—PRESS RELEASE;STAFF REPORT;ANDSTATEMENT BY THE EXECUTIVE DIRECTOR FORTHEUNITED REPUBLIC OF TANZANIA In the context of theForthReview Under the Extended Credit Facility Arrangement, andFirst ReviewUnder the Resilience and Sustainability Facility,the following documents havebeen released and are included in this package: •APress Releaseincluding a statement by the Chair of the Executive Board. •TheStaff Reportprepared by a staff team of the IMF for the Executive Board’sconsideration onDecember 13, 2024,following discussions that ended onOctober 17,2024,with the officials ofthe United Republic of Tanzaniaon economicdevelopments and policies underpinning the IMF arrangement under theExtendedCredit Facility and the Resilience and Sustainability Facility. Based on informationavailable at the time of these discussions, the staff report was completed onDecember 2, 2024. •AStatement by the Executive Directorforthe United Republic of Tanzania. TheIMF’s transparency policy allows for the deletion of market-sensitive information andpremature disclosure of the authorities’ policy intentions in published staff reports andother documents. Copies of this report are available to the public from International Monetary Fund•Publication ServicesPO Box 92780•Washington, D.C. 20090Telephone: (202) 623-7430•Fax: (202) 623-7201E-mail:publications@imf.org Web:http://www.imf.org International Monetary FundWashington, D.C. IMF Executive Board Concludes Fourth Review Under theExtended Credit Facility Arrangement and First Review Underthe Resilience and Sustainability Facility Arrangement withTanzania FOR IMMEDIATE RELEASE •The IMF Executive Board today completed the fourth review under the Extended CreditFacility arrangement with Tanzania, allowing for an immediate disbursement of about US$148.6 million (SDR 113.37 million), and the first review of the 23-month arrangementunder the Resilience and Sustainability Facility (RSF) arrangement, allowing for animmediate disbursement of about US$ 55.9 million (SDR 42.62 million).•Economic growth momentum is picking up in 2024 with improved external and fiscalbalances, low inflation within the central bank’s target, and easing pressures in the foreignexchange market.•Tanzania’s economic reform program supported by the ECF arrangement remained ontrack. The authorities are committed to continue implementing reforms to preserve macro-financial stability, promote sustainable and inclusive growth, advance structural reforms,and address the risks and challenges associated with climate change, supported by theECF and RSF arrangements. Washington, DC–December 13, 2024:The Executive Board of the International MonetaryFund (IMF) completed the fourth review of the Extended Credit Facility (ECF) Arrangement forTanzania, which was approved in July 2022 (see press release 22/265) for a total access ofSDR 795.58 million (200 percent of quota—about US$ 1,046.4 million at the time of programapproval). The completion of the review allows the immediate access to US$ 148.6 million(SDR 113.37 million), bringing total disbursement to Tanzania under the arrangement to aboutUS$ 754.3 million. The ECF aims to preserve macroeconomic stability, strengthen theeconomic recovery, and promote sustainable and inclusive growth. The Executive Board also completed the first review under the Resilience and SustainabilityFacility (RSF) arrangement that was approved in June 2024 with total access of US$791.6million (SDR 596.7 million,150 percent of quota). The completion of the review allows theimmediate disbursement of about US$55.9 million (SDR 42.62 million). The RSF supportsTanzania’s ambitious reform efforts to implement climate policy reforms that address risks andchallenges associated with climate change and enhance the resilience of the Tanzanianeconomy. Tanzania’s economic reform program under the ECF arrangement remained on track. All end-June 2024 quantitative performance criteria and indicative targets were met. Performance onstructural benchmarks was mixed, with three structural benchmarks completed on time, andtwo completed with delays. Three structural benchmarks (two of which were due end-June 2024, and one end-September 2024) were not completed, and the authorities have requestedto reset of these SBs to end-March 2025 to allow sufficient time for completion. Economic growth has gained momentum, with real GDP growth picking up to 5.4 percent(year-on-year) in the first half of 2024, from 5.1 percent in 2023. Inflation remains within thecentral bank’s target and a growth-friendly fiscal consolidation is underway. The currentaccount deficit narrowed in FY2023/24, driven by strong exports of services and a slowdownin imports. Pressures in the foreign exchange market have eased, reflecting seasonal currentaccount flows, a tight monetary policy stance, and exchange rate f