daniel chigunwe
According to a recent report by Tanzania’s Parliamentary Budget Committee, the country’s debt significantly increased in the space of a year. Tanzania’s government debt shot up 17,09 percent from 2022 to 2023.
However, the country remains one of the least indebted in Africa, with the 10th lowest debt-to-GDP ratio on the continent.
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Tanzania’s government debt in 2023 surged by a significant margin, jumping from a total of Sh74,75 trillion in 2022, to Sh87,47 trillion in 2023, as seen in the Tanzanian newspaper, The Citizen.
Sh56,7 trillion from the total figure represents external debts, while internal debts amount to Sh30,77 trillion. Despite the increase, the International Monetary Fund’s data shows that Tanzania has one of the lowest debts of any African country, with a 41,8 percent debt-to-GDP ratio, the 10th lowest in Africa, as seen in a report by BussinessDay.
The debt increment was disclosed by Daniel Silo, Chairperson of the Parliamentary Budget Committee while presenting the committee’s report in parliament.
The Sh12,09 trillion or 17,09 percent increase highlights the government’s commitment to development, as Daniel Silo, noted that the borrowed funds were used to finance developmental projects in areas such as education, transportation, energy, agriculture, health, and more.
Some of the projects that benefitted from the borrowed funds include the Julius Nyerere hydropower dam and the bus rapid transit infrastructure, amongst others. – Business Insider Africa
Bongani Ndlovu
Online Reporter