Africa-Press – Tanzania. PRESIDENT of the United Republic of Tanzania, Samia Suluhu Hassan, dedicated seven minutes of her speech in Parliament today to provide a detailed explanation of the country’s national debt situation, outlining the causes of its increase and the measures the government is taking to ensure it remains sustainable and does not hinder economic growth.
Addressing the 12th Parliament in Dodoma, President Samia stated that the rise in national debt has been influenced by loans signed during previous administrations but disbursed during her tenure in the Sixth Phase Government, as well as the depreciation of the Tanzanian shilling against the US dollar.
“It is important for citizens to understand that some of the loans we are receiving now were signed years ago. Also, changes in currency value have contributed to an apparent increase in the debt by approximately 3.9 tri/-,” said President Samia.
She revealed that as of May 2025, the national debt had reached 107.7tri/-. Despite this, the government continues to service the debt on time without imposing a significant burden on the national economy.
According to President Samia, debt servicing costs have increased from 8.2 tri/- in the 2020/21 financial year to an estimated 14.2tri/- for the 2025/26 fiscal year. The increase is attributed to the maturity of long-term loans, rising global interest rates, and payments on domestic guarantees provided to investors.
Additionally, the President noted that the government has started including certain liabilities previously not accounted for as part of the national debt, such as more than 2.7tri/- owed to social security funds, including PSSSF, NSSF, and NHIF.
President Samia emphasized that the government will continue to increase domestic revenue collection, reduce dependency on external borrowing, and ensure that all borrowed funds are directed toward productive development projects.
She also urged accountable officers to strictly adhere to legal and regulatory frameworks in contract management to ensure that public funds are utilized effectively and as intended.
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