Piqued by the rising national debt in Tanzania, critics have condemned what they described as government’s “excessive borrowing”.
However, the government has allayed fears over the rise in the national debt-to-GDP ratio to 40.7 per cent, explaining that the current level is largely due to borrowing used to finance mega projects aimed at boosting economic growth and improving the living standards of citizens.
The Chief Government Spokesperson and Permanent Secretary in the Ministry of Information, Culture, Arts and Sports Mr Gerson Msigwa, acknowledged that the issue of national debt has been widely discussed and has raised concern among some members of the public.
According to him, those discussing the matter often fail to explain how the loans have enabled the government to implement various development projects, including railway, water and road infrastructure.
“The critics will not tell you; instead, they have been saying that the government has excessively borrowed.
“They will not tell you that we have implemented the construction of the Julius Nyerere Hydropower Project (JNHPP) at a cost of 6.56tri/-. The project is funded by the Government of the United Republic of Tanzania,” Msigwa, who is also the Director of the Government Information Services Department (MAELEZO) said.
According to Msigwa, by 2021 the JNHPP contractor had been paid only 20.63 per cent, but the remaining 80 per cent, equivalent to 5.23tri/-, was paid between 2021 and 2024, enabling the completion of the project. He added that criticism surrounding national debt often overlooks the increase in electricity generation capacity from 1,902.958 megawatts to 4,038.95 megawatts on the National Grid.
“They will not tell you that there is now a reliable electricity supply for citizens and industries, ending power rationing completely, attracting more international investors and supporting economic growth,” he added.
He said funds have also been directed towards other projects that directly impact people’s lives, including water, health and education. On the improvement of Dar es Salaam Port under the Dar es Salaam Maritime Gateway Project, the spokesperson said the initiative has so far cost 629.82billion
He said the port can now accommodate large vessels of up to 305 metres in length, following the upgrades carried out at the facility. He added that cargo handled at the port has increased from 16.27 million tonnes in 2020/21 to 27.76 million tonnes in 2024/25, representing a 70.62 per cent increase.
“The time taken to serve ships has also decreased from an average of 10 days to three days, while waiting time for vessels at anchorage has dropped from 46 days to an average of seven days,” he said, insisting that Tanzania should not be distracted by misleading information circulating about national debt.
Mr Msigwa further noted that despite these achievements, Tanzanians remain key stakeholders in the country’s development through tax contributions.
