The International Monetary Fund (IMF) and World Bank Group (WBG) have selected Tanzania as the second country, after Madagascar, to benefit from the Enhanced Cooperation Framework for Scaled-Up Climate Action. This initiative aims to address the severe effects of climate change in Tanzania.
A statement released on Thursday highlighted that the IMF’s Executive Board approved the Resilience and Sustainability Facility (RSF) arrangement in June 2024, alongside the WBG’s active involvement in Tanzania’s climate action efforts. Both institutions emphasized their commitment to supporting Tanzania due to its vulnerability to climate change, which poses risks to its economic stability, fiscal health, and social development.
Through this framework, the IMF and WBG plan to collaborate with other development partners to help Tanzania manage climate-related risks and challenges. They will coordinate efforts to support Tanzania’s policy reform agenda, aimed at improving climate resilience in its economy. The approach will focus on country-led policy reforms and investments, both public and private, with well-structured and complementary measures.
Tanzania, along with the IMF and WBG, has identified key areas for capacity development and policy support, including climate-resilient public financial management, energy, water, disaster risk management, and social protection. The framework will also emphasize supervising climate-related risks in the financial sector and incorporating climate change into medium-term public investment planning.
The IMF will assist in introducing regulations and standards for climate-resilient public investments, while the WBG will focus on sectors that enhance Tanzania’s resilience, such as energy, water, social protection, and agriculture. Additionally, they will support improvements in disaster risk management policies and the development of a disaster risk financing framework, as well as strengthening Tanzania’s social safety net to respond to climate shocks.
The IMF and WBG are also committed to mobilizing additional technical and financial support, as well as private sector financing, potentially implementable by 2025.