This archive report was first published on 6 January 2020.
As of November 30, 2019, Tanzania's national debt stood at a staggering Tsh54.84 trillion ($23.77 billion), a figure that has raised concerns about the country's economic stability.
The debt, which is expected to expand by 7.1 per cent by June, is attributed to a shortfall in revenue collection coupled with low external financing.
However, Minister for Finance and Planning Phillip Mpango remains optimistic, stating that the debt is sustainable.
"All ratios are below international thresholds. The ongoing debt assessment shows the country can continue to borrow locally and abroad to finance its development activities and pay off matured loans using its internal and external revenue," Mpango said in a state of the economy address on December 31.
The country's external debt stands at Tsh40.39 trillion ($17.50 billion) while domestic debt is at Tsh14.44 trillion ($6.25 billion) as of November 30, 2019.
Transport and telecommunication were the major beneficiaries, accounting for 26.8 per cent of the debt, followed by social welfare and education, energy and mining, and balance of payments and budgetary support.
Revenue collection was slightly below target in the first five months of the 2019/2020 financial year at Tsh8.50 trillion ($3.7 billion) against a target of Tsh9.01 trillion ($3.9 billion) during the period.
