Tanzania has become a member of the IMF-World Bank climate initiative

Tanzania has been designated as the second recipient of a joint initiative initiated by the World Bank and International Monetary Fund (IMF) to assist in the mitigation of climate change, following Madagascar.

On October 10, the two Bretton Woods institutions announced that Tanzania’s inclusion in their Enhanced Cooperation Framework for Climate Action was contingent upon the World Bank’s ongoing engagement with Dodoma on climate action programs and an IMF Resilience and Sustainability Facility (RSF) arrangement that was approved in June.

According to them, the IMF and World Bank would collaborate with other development partners to assist Tanzania in enhancing its resilience against the risks and challenges associated with climate change in order to promote its social and economic development.

“This will be done through an integrated, country-led approach to policy reforms and public and private climate investments, including through complementary and well-sequenced reform measures.”

We will concentrate on the following areas: the supervision of financial sector climate-related risks, catastrophe risk management and social protection, energy, water, and other reforms, and climate-resilient public financial management.

“The IMF will back the introduction of climate resilient public investment regulations and reporting, while the World Bank Group will focus on supporting sectors that help strengthen Tanzania’s resilience to climate change, such as energy, water, social protection, and agriculture.”

The IMF-World Bank Enhanced Cooperation Framework for Climate Action was established on May 31 of this year in Washington, DC to assist countries in intensifying their efforts to address the threat of global climate change.

The first beneficiary was Madagascar, which was endorsed on June 21.”Within their respective mandates, the World Bank Group and IMF will leverage their analytics, technical assistance, financing, and policy expertise to enhance country-driven climate strategies and reform programs,” the two organizations announced in May.

By 2025, the World Bank intends to allocate 45 percent of its annual financing to climate change adaptation and mitigation.

In the meantime, the IMF is implementing its Resilience and Sustainability Trust (RST) program, which was operationalized in October 2022, with the objective of assisting countries in the development of resilience to climate change.