Tanzanian government debt approaches Sh100 trillion but remains sustainable
What you need to know:
- According to the CAG, the debt is still considered sustainable, supported by key indicators such as the real value of the debt and the country’s national income.
Dar es Salaam. Tanzania’s national debt has risen to Sh97.35 trillion as of June 30, 2024, marking an increase of Sh15.1 trillion from the Sh82.25 trillion recorded in the 2022/23 financial year, according to the Controller and Auditor General (CAG), Charles Kichere.
In a report presented to President Samia Suluhu Hassan at the State House on Thursday, March 27, 2025, Kichere said that, despite the significant rise, the government debt remains sustainable based on key economic indicators.
“The government’s debt reached Sh97.35 trillion as of June 30, 2024, which is an increase of 18.36 percent from the previous year. This consists of Sh31.95 trillion in domestic debt and Sh65.40 trillion in external debt,” Kichere stated.
The CAG said an assessment of debt sustainability showed that the country is in a manageable position, with critical metrics indicating a balanced approach to borrowing. External debt, as a percentage of Gross Domestic Product (GDP), stands at 23.6 percent, well below the 40 percent threshold. Total national debt is 41.1 percent of GDP, also under the 55 percent limit.
According to Mr Kichere, debt servicing, as a percentage of export earnings, was well within the manageable range. Similarly, debt servicing as a percentage of government revenue stands at 14.5 percent, significantly lower than the 18 percent threshold.
“Key indicators point to the sustainability of our debt. We are under control, and there is no immediate cause for concern,” Kichere said, reassuring the public that the government’s debt management strategies remain effective.
President Samia Suluhu Hassan welcomed the report, acknowledging the efforts made by the government in maintaining the sustainability of national debt while pursuing ongoing development projects.
