Tanzania's risk of debt distress has worsened, says World Bank Report

The World Bank has on Tuesday March 1 said that the risk of debt distress in the country has worsened from low to moderate exacerbated by poor performance of the tourism sector due to Covid-19 concerns.

This is according to the 17th Tanzania Economic Update, as released by the World Bank on March 1, 2022.

This, as a result has led to borrowing of non-concessional loans from financial partners in order to keep the economy afloat. 
As a result, the risk that Tanzania might fall into debt distress has been reaffirmed by the World Bank.

However, the international financial body advised on key areas that might help the country avert debt burdens.

The bank says it includes enhancement of public-sector debt statistics, focusing on projects that promise clear socioeconomic payoffs, balancing emergency spending with broader development agenda.