Debt: Why Tanzania is better off than its regional peers

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Tanzania's debt remains sustainable largely due to the fact that the the bulk of it stems from multilateral lending sources. PHOTO | FILE

Dar es Salaam. Tanzania may be borrowing huge sums to finance a number of key infrastructure projects, including construction of the standard gauge railway, but the country’s debt remains sustainable compared to its regional peers, latest data shows.

This is largely due to the fact that the lion’s share of Tanzania’s debt stems from multilateral lending sources, making the loans relatively cheap.