Jana Bricco, the new Resident Representative of the International Monetary Fund (IMF) in Tanzania, has discussed the country's economic outlook and business environment reforms in an exclusive interview with TanzaniaInvest. Bricco was appointed in March 2026 and took up the position in August 2026, succeeding Sebastian Acevedo. Her appointment coincided with Tanzania entering a new phase of engagement with the IMF following the completion of the Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF) arrangements.
According to the IMF Executive Board, Tanzania's GDP growth reached 5.9% in 2025, with inflation contained at 4.0% year-on-year in June 2026. The growth is being supported by sectors such as agriculture, transport, finance, industry, and services. Looking ahead, mining, agriculture, and tourism are expected to remain crucial for jobs and growth. However, the main risk to sustaining growth is the possibility of several shocks occurring simultaneously, including renewed social tensions, higher import costs, and lower aid inflows.
Tanzania recorded significant fiscal overspending in the first quarter of FY2025/26, which was attributed to front-loaded, unbudgeted election-related expenditure. The authorities subsequently tightened expenditure control, while tax revenue performed strongly. The IMF emphasized the importance of maintaining budget discipline and stronger commitment controls throughout the year. This is an area where the IMF has longstanding expertise, and Tanzania could benefit from making fuller use of IMF capacity development in public financial management.
The IMF considers accelerated reforms to strengthen the business environment critical to creating jobs for Tanzania's growing population. The most urgent reforms are practical ones that make life easier for businesses, especially small and medium-sized firms. This includes simpler and fewer regulatory obstacles and costs, a tax system that is more predictable and transparent, and faster VAT refunds. Access to finance is also crucial, and reforms that improve credit information, land rights, insolvency procedures, and capital markets can help.
The RSF arrangement was designed to support reforms that reduce prospective balance of payments risks and enhance economic resilience to climate change. The immediate risks to Tanzania's balance of payments come from higher import costs and weaker foreign-currency inflows. A prolonged rise in oil prices, higher fertilizer prices, and disruptions to shipping and air travel could increase the import bill and production costs. The IMF recommends maintaining a flexible exchange rate, adequate reserve buffers, and prudent fiscal and monetary policies to mitigate these risks.
The IMF is also monitoring Tanzania's foreign-exchange reserves and the Bank of Tanzania's gold purchase programme. Gold exports have provided an important buffer, but this also creates exposure if gold prices were to fall sharply. Further reductions in external aid or tighter global financing conditions could add pressure on the shilling and reserves. The IMF is ready to support Tanzania with policy advice and capacity development to help the country navigate these challenges.
The interview concluded that clear responsibilities, timelines, and regular reporting on results will help build confidence in Tanzania's economic progress. The IMF is committed to supporting Tanzania with policy advice and capacity development to implement the necessary reforms. The country's economic growth and development will depend on the successful implementation of these reforms, which will help create jobs, improve living standards, and increase economic resilience to climate change.
Key points
- The IMF recommends maintaining budget discipline and stronger commitment controls to prevent fiscal overspending.
- Accelerated reforms to strengthen the business environment are critical to creating jobs for Tanzania's growing population.
- The IMF is monitoring Tanzania's foreign-exchange reserves and the Bank of Tanzania's gold purchase programme to mitigate balance of payments risks.
