Tanzania requires urgent financial support of $1.1 billion (1.5 percent of GDP) in the next 12 months to avert a potential economic fallout arising from the Covid-19 pandemic and the rising import bill linked to rising crude oil prices.
The International Monetary Fund (IMF) says in its Country Report No 21/213, dated September 2021, that the country faces an urgent balance of payment (BOP) support as the government implements a comprehensive plan to tackle the Covid-19 shock in the wake of declining export receipts and rising import bill.
“Emergency imports of medicines, testing materials, and protective equipment are urgently needed to respond to the third wave of the pandemic. Acquiring and distributing vaccines are top priority which also require an expansion of vaccine deployment infrastructure,” says the report prepared by the IMF staff.
The additional funding need comes after the IMF Board on September 7, 2021, approved a disbursement of $567.25 million to Tanzania to help the country finance its urgent balance of payments needs arising from Covid-19.
The financing package comprised $189.08 million under the Rapid Credit Facility (RCF) and a purchase equivalent to $378.17 million under the Rapid Financing Instrument (RFI).