Statement by IMF Deputy Managing Director Bo Li at the Conclusion of His Visit to Tanzania
IMF News, August 1, 2023
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Bibliographic details
- Published: August 1, 2023
Visit overview
- Location and date: Dar es Salaam, Tanzania; August 1, 2023.
- Issuer: Mr. Bo Li, Deputy Managing Director of the International Monetary Fund (IMF).
- Press Release No.: 23/285.
- Media contact: PRESS OFFICER: Ting Yan; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson.
Key assessments and acknowledgments
- Appreciation expressed to Vice President Dr. Philip Isdor Mpango, Minister of Finance Dr. Mwigulu Nchemba, Bank of Tanzania Governor Emmanuel Tutuba, other senior officials, private sector, civil society, and development partners for engagement and hospitality.
- Visit purpose: deepen IMF understanding of Tanzania and reiterate IMF commitment to supporting the authorities’ effort to unlock Tanzania’s development potential.
- Commendation for authorities’ commitment to preserving macroeconomic stability in a challenging global environment.
- Observation that the authorities’ swift policy response helped contain inflation and safeguard the economy against spillovers from the war in Ukraine.
Reform program supported by the IMF
- Program: Extended Credit Facility (ECF) approved in July 2022.
- Objectives of the reform program:
- Create fiscal space to allow for much needed social spending and high-impact public investment.
- Enhance the monetary policy and financial supervision frameworks.
- Strengthen governance.
- Advance structural reforms.
- Overarching goal: safeguard macroeconomic stability and promote strong, sustainable and inclusive growth.
Policy recommendations and priorities
- Enhance domestic revenue mobilization through tax reforms to create fiscal space to finance social spending and priority investment.
- Scale-up investment in human capital through increased spending on education and health to help close gaps in human capital.
- Support entrepreneurs by improving the enabling business environment and access to finance to foster growth and job creation.
Engagements with stakeholders and observations
- Meetings included representatives of the private sector, civil society, and development partners.
- Noted examples of local initiatives:
- A local environmental NGO promoting sustainable living.
- Traditional wood carvers demonstrating entrepreneurship and dynamism; with appropriate support these entrepreneurs could drive growth and job creation.
Climate change dialogue
- Discussed the impact of climate change on the Tanzanian economy with authorities and stakeholders.
- IMF staff will continue dialogue on strengthening policies and implementation capacity, and on how the Fund can support building a climate-resilient economy.
Closing remarks
- Mr. Bo Li expressed his best wishes to the people and government of Tanzania.
Statement by IMF Deputy Managing Director Bo Li at the Conclusion of His Visit to Tanzania; Press Release No. 23/285; August 1, 2023.