The Bank of Tanzania (BoT) is participating in the discussions between the Government and International Monetary Fund (IMF) Mission that were opened by the Minister of Finance, Hon. Dr. Mwigulu Lameck Nchemba (MP) today in Dodoma.

The Mission is in the country to assess the implementation of the Extended Credit Facility-(ECF) program that involves access to low-interest loans to stimulate economic growth through manufacturing sector.

During the opening of the sessions, Dr. Nchemba expressed gratitude to the IMF for providing funds used to implement projects that promote the development of citizens, encourage inclusive economic growth, and enable the country to withstand global economic challenges.

Dr. Nchemba stated that approximately TZS 1.3 trillion was allocated by the IMF to address the challenges posed by COVID-19. Additionally, another sum of TZS 2.8 trillion is expected to be disbursed in seven phases over three years, starting from the fiscal year 2022/2023 to 2024/2025. This funding continues to stimulate economic growth and enhance social services in areas such as health, water, agriculture, infrastructure development, and improvement of the business environment.

“We thank the IMF Board of Directors  for approving the second phase of the ECF assessment in December 2023,providing USD 150.5 million, bringing the total received by the country to USD 455.3 million under the ECF program in two phases so far," said Dr. Nchemba.

He also took the opportunity to request IMF's assistance in securing funds through its Resilient and Sustainable Trust (RST) window to support various projects aimed at addressing the impacts of climate change.

"My team and I are ready for discussions and setting goals that should be achieved within the agreed-upon time frame to implement the climate change mitigation program," added Dr. Nchemba.

On his part, the Leader of the IMF Team, Mr. Harris Charambos Tsangarides, congratulated the Government for continuing to implement the ECF program with excellence and meeting the criteria set in the program on time and helping the country get US $ 150.5 million in December 2023.

Regarding the request for climate change funds, Mr. Tsangarides, said that Tanzania has a great opportunity to get those funds and advised to complete the initial preparations on time, including the assessment of the country’s policies in dealing with climate change to enter into discussions with the IMF in April 2024.

The BoT delegation in these sessions is led by Deputy Governor (Economic and Financial Policies), Dr. Yamungu Kayandabila.