IMF Staff Holds Review Mission to Tanzania and gives its recommendation

Return Of Undertaker

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IMF Staff Holds Review Mission to Tanzania

October 31, 2016
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.

IMF team lead by Mauricio Villafuerte, visited Tanzania from Oct 18–28, to conduct 5th PSI review
Projected growth of 7% in 2016 is still within reach
Tanzania remains at low risk of external debt distress

A team from the International Monetary Fund (IMF), led by Mauricio Villafuerte, visited Tanzania from October 18–28, 2016 and held discussions with the authorities on the fifth review under the Policy Support Instrument (PSI) program that was approved on July 16, 2014. [1]

At the end of the mission Mr. Villafuerte issued the following statement:

“Preliminary data for the first half of 2016 indicate that economic growth was strong and that the projected growth rate of around 7 percent for the year as a whole remains within reach. However, there are downside risks to economic growth associated with the current tight stance of macroeconomic policies and the slow pace of implementation of public investment.

“Inflation declined to 4.5 percent in September, below the target of 5 percent. The current account balance has improved significantly due to lower capital goods imports as externally-financed investment has slowed down and exports of gold and manufactured goods increased. The Bank of Tanzania’s foreign exchange reserves have strengthened in recent months.

“Implementation of the PSI-supported program has been satisfactory. Preliminary data indicate that most quantitative assessment criteria for end-June 2016 were met. The pace of implementing structural reforms has been slow, but has picked up recently.

“Notable progress has been made in stepping up revenue collections and, based on data for the first quarter, the ambitious program target for the 2016/17 fiscal year is within reach. However, current spending has been lower than programmed. Together with the customarily slow pace of project implementation at the beginning of the fiscal year, this has led to a fiscal surplus in the first quarter. In addition, liquidity conditions have been tight contributing to upward pressure on borrowing costs in the economy.

“The mission held discussions on how to address these macroeconomic challenges. In particular, it noted the importance of mobilizing external financing to step up the pace of planned capital spending. Tanzania is at low risk of external debt distress and has room to borrow externally on concessional and non-concessional terms to meet its financing needs.

The mission commended the authorities’ efforts to improve the efficiency of spending and noted that it should not compromise the delivery of essential services. It also recommended continued steps to ease liquidity conditions in the economy. These could include liberalizing further the capital account in line with commitments under the East African Monetary Union Protocol; acquiring a sovereign credit rating to expand Tanzania’s opportunities to borrow abroad; and widening the range of monetary policy tools.

“The mission welcomed the adoption of the second Five-Year Development Plan. The mission noted that it was essential to improve the dialogue with the private sector and accelerate reforms to bolster the business environment. The mission also welcomed the steps taken to clear existing domestic arrears and prevent their further occurrence.

“Discussions will continue in the coming weeks to reach final understandings on an economic policy framework that can underpin the completion of the fifth review under the PSI. The IMF Executive Board is tentatively expected to discuss the review in early-2017.

“The mission met with Minister Philip I. Mpango, Governor Benno Ndulu, Permanent Secretary Doto M. James, and other senior officials of the government and the Bank of Tanzania.

“The IMF team is appreciative of the constructive and open policy dialogue and thanks the authorities for their hospitality during the visit.”

[1] The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF's Executive Board, signal to donors, multilateral development banks, and markets the Fund's endorsement of a member's policies (see The Policy Support Instrument (PSI)). Details on Tanzania’s PSI program are available at www.imf.org/tanzania.
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MR MAJANGA

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Hawa IMF wanafiki Jana Waziri jenister muhagama kamjibu Mbowe swali hili na kumtolea mifano ya jinsi serikali hii ilivyo tajiri mpaka wamenunua ndege mbili cash money, sasa hawa wazungu wanaongea nini?, tafadhali sana tunaomba IMF wasitu drive drive
 

MWALLA

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Hawa IMF wanafiki Jana Waziri jenister muhagama kamjibu Mbowe swali hili na kumtolea mifano ya jinsi serikali hii ilivyo tajiri mpaka wamenunua ndege mbili cash money, sasa hawa wazungu wanaongea nini?, tafadhali sana tunaomba IMF wasitu drive drive
Haujaribiwi etieeo_O
 

Nguto

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Hawa IMF wanafiki Jana Waziri jenister muhagama kamjibu Mbowe swali hili na kumtolea mifano ya jinsi serikali hii ilivyo tajiri mpaka wamenunua ndege mbili cash money, sasa hawa wazungu wanaongea nini?, tafadhali sana tunaomba IMF wasitu drive drive
Nilivyoielewa hiyo statement hapo juu, IMF wamecaution kuhusu hii "Tight monetary policy" inayotumika sasa hivi. In the long run inaweza kuleta shida. Kuna mahitaji ambayo ni necessary yanaweza kukosekana. Wamecaution tu. Infact naona kama wamesifu vitu vingi vingi tu.
 

bnhai

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Jul 12, 2009
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Hii report sio mbaya. Ila inaonekana hatutumii pesa. IMF wanashindwa kugundua kuwa pesa hakuna. Ila na wao wamekiri austerity inatumaliza. Ni vyema tukope maana project nyingi zitalala.
 

Ame

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Mar 14, 2011
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Nilivyoielewa hiyo statement hapo juu, IMF wammecaution kuhusu hii "Tight monetary policy" inayotumika sasa hivi. In the long run inaweza kuleta shida. Kuna mahitaji ambayo ni necessar yanaweza kukosekana. Wamecaution tu. Infact naona kama wamesifu vitu vingi vingi tu.
Wanajua negotiation...waelewa wanafahamu kuwa tukijikwamua kutoka external dependence tunaelekea kwenye uhuru kamili sasa hiyo siyo habari nzuri kwa mabwana...In general indicator zote walizotupatia zinaeleza uchumi kuimarika...
 

Nguto

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Apr 11, 2011
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Wanajua negotiation...waelewa wanafahamu kuwa tukijikwamua kutoka external dependence tunaelekea kwenye uhuru kamili sasa hiyo siyo habari nzuri kwa mabwana...In general indicator zote walizotupatia zinaeleza uchumi kuimarika...
yah!
 

Copenhagen DN

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Oct 5, 2014
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IMF na weld benk siyo wakuwaamini kamwe hawapendi thed weld countries kuendelea kiuchumi ndio hao hao wanatunyonya mali asili zetu na kwa maksud wame under develop africa.

pia kwa upande mwengine Magu anabidi abadilishe strategies hata kupokea ushauri kutoka upinzan. Hali ya kiuchumi bado ni tete
 

Tony antony

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Nov 17, 2013
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Bora waseme wao,sisi tunaonekana wachochezi
Inflation declined to 4.5 percent in September, below the target of 5 percent. The current account balance has improved significantly due to lower capital goods imports as externally-financed investment has slowed down and exports of gold and manufactured goods increased. The Bank of Tanzania’s foreign exchange reserves have strengthened in recent months.

umeisoma hiyo ukaielewa......ukiangalia hiyo report ndani kuna high positive things kwenye uchumi wa tz kuliko few weakeness tulizonazo.
 
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Reactions: Ame

Ame

JF-Expert Member
Mar 14, 2011
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Hii report sio mbaya. Ila inaonekana hatutumii pesa. IMF wanashindwa kugundua kuwa pesa hakuna. Ila na wao wamekiri austerity inatumaliza. Ni vyema tukope maana project nyingi zitalala.
Yaani ukope ili wakuwekee masharti au? And then if we do not spend yet wanakiri tumekusanya pesa nyingi hiyo luga wewe umeielewa au? Its their negotiation style...tutakopa tutakapo hitaji so far tunataka kutengeneza independency kwenye uchumi wetu na kujinasua kwenye strings zao...wamechungulia wakaona mfungwa mmoja anakaribia kufungua milango ya magereza...
 
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