TANZANIA EXPECTS ECONOMY TO REBOUND IN 2023 - FINANCE MINISTER

NAIROBI - Tanzania’s economy is expected to grow faster this year compared with a year earlier, but performance could be dampened by effects of the war in Ukraine, Finance Minister Mwigulu Nchemba said in a letter to the International Monetary Fund.

In the letter dated April 4 and made public at the weekend, Nchemba said the economy was expected to expand by about 5.2 percent in 2023 from 4.7 percent a year earlier.

“We expect the economy to continue facing headwinds from spillovers of the war in Ukraine in the near term,” he said. Tanzania’s economy relies on among others, tourism, mining and agriculture.

Meanwhile, the IMF has approved a 38-month extended credit facility of approximately $191 million for the Central African Republic (CAR) to address its protracted balance of payments difficulties. In a statement issued by the organisation’s executive board in Washington, the decision allows for an immediate disbursement of roughly $15 million to the CAR.

The IMF’s extended credit facility is aimed at providing immediate support to the CAR to address its long-standing balance of payments problems.

With the initial disbursement of $15 million, the country will be able to provide basic health and education services to its citizens. The extended credit facility will assist the CAR in implementing key economic reforms to improve its financial balance.

The funds will be used to strengthen macroeconomic stability, reduce fiscal deficits, and increase domestic revenue mobilisation.

The extended facility will also help to promote structural reforms, including measures to improve governance, increase transparency, and reduce corruption. .– REUTERS.