Mwinyi responds to corruption, debt critics

Unguja. The President of Zanzibar and chairman of the Revolutionary Council, Dr Hussein Ali Mwinyi has responded to the accusations made by ACT Wazalendo chairman Othman Masoud Othman regarding corruption, rising national debt and unclear borrowing purposes.

On January 3, 2025, while inaugurating the modern Kijangwani bus station, President Mwinyi addressed Othman’s claims, asserting that despite critics attempting to undermine his administration with false statements, he remains steadfast in his commitment to the country’s development.

Declaring Zanzibar’s presidential bid in the forthcoming elections during a press conference held on January 1, 2025, in Unguja, Mr Othman who doubles as the Isle's First Vice President raised concerns about corruption and the country’s inability to repay its international debts.

He highlighted that, according to Bank of Tanzania (BoT) data, from 2020 to 2023, the national debt had increased by 208 percent, rising from Sh887 billion to Sh2.397 trillion.

Mr Othman noted that this debt burden equates to approximately Sh119,850 for every Zanzibari, blaming that the fund's expenditure remains unclear.

In response, President Mwinyi emphasised that the government borrows for legitimate development projects and dismissed the opposition’s claims as false and misleading.

“While we are doing all these things, words are coming from the opposition trying to discourage us. I want to tell you publicly that I am not shaken, I have never wavered, and I will not waver. What you are saying is false. I want to inform you of the truth because some of the propaganda you are spreading is causing trouble,” he said.

He explained that when his government took office, the national debt stood at Sh800 billion, and it had risen to Sh1.2 trillion over four years, a 50 percent increase, not the 208 percent claimed by Mr Othman.

Mr Mwinyi also addressed the allegation that every Zanzibari now owes Sh119,000, clarifying that there is a dedicated account for repaying the debt, which currently holds $250 million (nearly Sh600 billion).

He pointed out that this special account, into which $10 million is deposited each month, ensures that the country can manage its debts and continue to borrow for development projects without concern.

“So why are we afraid to borrow to carry out development projects?” he asked.

He further noted that large countries like the US, the UK and France have far greater national debts, yet they continue to borrow because they have the means to repay.

ZSSF performance, public transport plans

Dr Mwinyi also highlighted the success of the Zanzibar Social Security Fund (ZSSF), which has paid out Sh250 billion in benefits and invested Sh300 billion in development projects over the past four years.

He praised the fund’s performance, stating: “When you hear that a fund is performing well, you should have such statistics. In benefits and development, they are doing well.”

Additionally, he discussed the new public transport initiatives in Zanzibar, emphasising the need for modern bus stations to accommodate the city’s evolving transport system.

He shared his vision for electric buses, trains and water taxis, asserting that Zanzibar is committed to developing a modern and sustainable transportation system.

“We cannot continue using rural vehicles in the city. City vehicles must be suitable for the city,” said Mr Mwinyi, adding that the modern Kijangwani bus station is just one of several new stations being built to support the public transport plan.

Addressing bureaucracy

Regarding bureaucracy, President Mwinyi acknowledged it as an obstacle to development, urging anyone facing unnecessary delays in government projects to bring their concerns directly to him.

“We cannot spend one or two years discussing the same issue. Let’s discuss it for one week and make things happen,” he said.

The issue of bureaucracy was raised by ZSSF director general, Mr Nassoro Shaaban Ameir, who expressed concerns that delays in government institutions were hindering the implementation of large projects.

Government’s commitment to development

The Minister of Finance and Planning, Dr Saada Mkuya, also responded to the accusations, noting that the loans taken by the government are crucial for building the country’s infrastructure and increasing its value.

She highlighted that Zanzibar’s economy, largely driven by services such as tourism and transport, continues to grow and contribute significantly to other sectors, including agriculture.

The ministry of Finance and Planning Permanent Secretary, Dr Juma Malik Akil, emphasized that Zanzibar’s service sector alone accounted for 51 percent of the economy in 2019, with expectations for continued growth in tourism, transport, and agriculture.