TANZANIA ADVOCATES TARGETED SOCIAL PROTECTION AND SUSTAINABLE PUBLIC FINANCES
Tanzania has urged stronger coordination between monetary and fiscal policies to protect economies from global shocks, as Finance Minister Ambassador Khamis Mussa Omar outlined priorities covering macroeconomic stability, vulnerable households and growth-supporting investment.
BANGKOK, Thailand — Tanzania has called for closer coordination between monetary and fiscal policies among International Monetary Fund (IMF) and World Bank member countries to safeguard macroeconomic stability and strengthen resilience against global economic shocks.
The call was made by Tanzania’s Minister for Finance, H.E. Ambassador Khamis Mussa Omar (MP), during a meeting of the IMF’s First Constituency, held on the sidelines of the IMF and World Bank Annual Meetings in Bangkok, Thailand.
Ambassador Omar said effective coordination between central banks and government fiscal authorities was increasingly important in managing economic uncertainty, maintaining financial stability and protecting vulnerable populations from external shocks.
He highlighted Tanzania’s efforts to strengthen its institutional framework, including legislative amendments allowing the government to recapitalise the Bank of Tanzania (BoT), a measure intended to reinforce the central bank’s financial position and institutional resilience.
Tanzania outlines three priorities for economic resilience
The Minister identified three key priorities guiding Tanzania’s approach to managing economic shocks while safeguarding long-term development objectives.
First, strengthening policy coordination and preparedness.
Ambassador Omar said Tanzania was aligning government cash-flow management and borrowing plans with the central bank’s liquidity assessments to ensure effective implementation of fiscal and monetary policies.
The approach is intended to improve coordination between public expenditure, financing requirements and monetary conditions, helping maintain macroeconomic stability.
Second, protecting vulnerable households during economic shocks.
The Minister emphasised the importance of ensuring that emergency support measures are targeted, temporary and backed by reliable financing arrangements, particularly when households face rising living costs resulting from fluctuations in global oil prices.
"Any support provided during economic shocks should be targeted, temporary and supported by reliable financing, particularly given the impact of global oil prices," Ambassador Omar said.
He stressed that carefully designed interventions were essential to protecting vulnerable households without undermining fiscal sustainability.
Third, safeguarding investment that supports growth and resilience.
Ambassador Omar underscored the importance of maintaining investment in human capital and essential social services, even during periods of economic uncertainty.
He said Tanzania was pursuing a medium-term revenue strategy aimed at expanding fiscal space, strengthening domestic resource mobilisation and reducing dependence on external borrowing.
Tanzania urges IMF to strengthen technical assistance
Tanzania also called on the IMF and other international financial institutions to expand technical assistance and opportunities for peer learning among member countries.
Ambassador Omar identified cash-flow forecasting, public debt management and policy analysis as priority areas where continued institutional support could help countries strengthen economic planning and respond more effectively to external shocks.
The Minister's remarks highlighted Tanzania's emphasis on coordinated economic management, targeted social protection and sustained development investment as key elements of its strategy to maintain stability and build resilience amid global economic uncertainty.