Zanzibar's debt surges to Sh1.1 trillion
What you need to know:
- This represents a significant surge from the recorded debt of Sh155.8 billion in 2020, marking a 609.3 percent increase.
Unguja. Zanzibar’s national debt from loan acquired through the Government of the United Republic of Tanzania (SMT) or directly from foreign banks and development partners within the country has hit Sh1.105 trillion, the House of Representatives was told.
This was in response to inquiries raised by Dr. Mohammed Ali Suleiman from the Mtambwe Constituency, regarding the country's foreign debts.
According to the deputy minister of State, Office of the President, Finance, and Planning Juma Makungu Juma , the Revolutionary Government of Zanzibar has acquired a total of six loans amounting to Sh813.63 billion.
Additionally, the government has provided guarantees for 14 institutions totaling Sh185.73 billion. This borrowing has significantly contributed to the nation's development efforts, including the implementation of major projects.
However, the accumulation of these loans has led to a substantial increase in the national debt. As of March 2024, the total national debt guaranteed by the Revolutionary Government of Zanzibar stood at Sh1,105.09 billion.
This represents a significant surge from the recorded debt of Sh155.8 billion in 2020, marking a 609.3 percent increase.
“Despite the mounting debt, the government assures that repayment is being managed effectively. Strategies have been devised to ensure timely repayment, including borrowing for development projects aimed at boosting national income,” he said
He added: Efforts to enhance revenue collection are underway, with a portion allocated to servicing these loans. Additionally, a special debt payment plan, along with a dedicated account called the "debt service a/c," has been established to manage repayments as debts mature.
