The IMF board approved a new program worth roughly $786 million
The IMF board approved a new program worth roughly $786 million AFP

The IMF executive board approved a new loan program with Tanzania worth around $786 million on Thursday to help it "build resilience to climate change," and also unlocked the latest tranche of money under an existing agreement.

The new 23-month loan program "will support Tanzania's ambitious reform efforts to implement climate policy reforms that address risks and challenges associated with climate change and enhance the resilience of the Tanzanian economy," the IMF said in a statement announcing the board's decision.

The new Resilience and Sustainability Facility (RSF) which will be worth roughly $786 million, will "support Tanzania's efforts to build resilience to climate change," it added.

The IMF board also approved an immediate disbursement of just under $150 million after concluding that Tanzania had met all the necessary targets under an existing program worth just over a billion dollars, and extended its duration by an additional six months until May 2026.

Tanzania's performance under the existing program "has been strong," IMF deputy managing director Bo Li said, adding: "The authorities' strong commitment to their reform agenda will remain important amid downside risks."

Tanzania's economic growth rebounded last year from a slowdown in 2022, while inflation has remained within the target of the country's central bank, while a "growth-friendly fiscal consolidation" is currently underway, according to the IMF.