Tanzania secures nearly $600m from IMF for COVID relief | Business and Economy News

Tanzania secures nearly $600m from IMF for COVID relief | Business and Economy News

Tanzania’s late president denied the existence of the pandemic however his successor is stepping up a vaccination programme.

The International Monetary Fund’s government board has accepted $567m in emergency help for Tanzania to assist it finance a COVID-19 vaccination marketing campaign and meet the well being and social prices of the pandemic, the IMF mentioned in a press release.

The IMF board accepted on Tuesday a disbursement of $189m to Tanzania below its Rapid Credit Facility (RCF), in addition to $378m below the Rapid Financing Instrument (RFI), the worldwide lender mentioned.

The COVID-19 outbreak and related journey restrictions have led to the collapse of the tourism sector within the East African nation, which had denied the existence of the pandemic below the late president, John Magufuli.

After his loss of life in March and the takeover by President Samia Suluhu Hassan, Tanzania has began acknowledging the disaster, which brought about a serious deceleration to 4.8 p.c development in 2020, with development to stay subdued in 2021.

The new funding will enable Tanzanian officers to deal with “the urgent health, humanitarian, and economic costs” of the pandemic, the IMF mentioned. It may even assist Tanzanian officers mobilise further help from growth companions, it mentioned. Tanzania plans to borrow virtually 10.8 trillion shillings ($4.7bn), about half of which the authorities search to lift from exterior sources.

Fighting the pandemic

“Tanzania requires urgent financial assistance,” mentioned Bo Li, IMF deputy managing director, including that authorities’ plans for a vaccination marketing campaign and elevated well being and social spending would assist mitigate the results of the pandemic.

He mentioned it will be important to make sure that the brand new funds are spent on combating the pandemic, and to keep up fiscal and debt sustainability, whereas preserving monetary stability.

It would even be essential for authorities to observe the banking system’s well being in gentle of elevated banking sector vulnerabilities, he mentioned in a press release.

“Once the crisis abates, the authorities appropriately intend to resume implementing reforms to achieve sustainable and inclusive growth,” he mentioned.

The funding announcement follows talks between the IMF and Tanzania, with the federal government committing to renew publishing information on the unfold of COVID-19 as a way to decide the outbreak’s severity and an applicable response. The authorities had stopped releasing the info after former President Magufuli downplayed the illness earlier than his loss of life.

While his successor has launched a nationwide vaccination marketing campaign, the discharge of knowledge remains to be inconsistent – the federal government final printed COVID-19 statistics in July, when it reported 858 instances and 29 deaths.

The financial results from the virus final yr brought about about a million individuals in Tanzania to fall into poverty.

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