IMF grants Tanzania $ 567 million in economic aid for COVID-19

The logo of the International Monetary Fund (IMF) can be seen outside the headquarters building in Washington. Youri Gripas / Reuters

The International Monetary Fund (IMF) has loaned Tanzania more than half a billion dollars in emergency funding as the coronavirus pandemic weighs on its economy and critical tourism sector.

The IMF has approved $ 567 million (€ 479 million) in COVID support to Tanzania, which until recently was an outlier in the global fight against the coronavirus and dismissed the severity of the disease.

The Tanzanian economy slowed to 4.8% in 2020, as travel restrictions hit the tourism sector, one of the main incomes of this East African country where growth is expected to remain moderate in 2021.

The IMF said Tanzania faced “urgent” health, economic and humanitarian costs as a third reported pandemic wave swept through the country.

“The COVID-19 pandemic has negatively impacted Tanzania’s macroeconomic outlook, as well as the health and well-being of its people,” IMF deputy managing director Bo Li said on Tuesday in a statement. announcing emergency funding.

The IMF said the economic slowdown induced by the pandemic had increased poverty and unemployment and increased the risk of indebtedness, mainly due to the “collapse” of the tourism sector.

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