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Tanzania to spend Tshs. 13.13 trillion to service its debts in FY 2024/25

Tanzania has Sh. 13.13 trillion for debt servicing in the coming fiscal year 2024/2025, up from Sh. 10.48 trillion that the government planned to spend in the current fiscal year 2023/2024.

This was revealed in Parliament on June 4, 2024, by the Minister of Finance, Dr.Mwigulu Nchemba, when he tabled his N18.17 trillion budget for his ministry. In the current financial year, the government has completed maturities for public debt totaling Sh.8.48 trillion, representing achievement of 81% of the annual target.

The planned debt service amount represents approximately 27% of the entire government budget for 2024/25, which is expected to be read on June 13, 2024. The latest report from the Central Bank puts the national debt at Tshs. 91.4 trillion of which $23.7 billion is foreign debt and $30.7 trillion is domestic debt

Since 2019, Tanzania has increased the number of non-concessional loans, most of which went to financing the SGR rail. This has been one of the sources of the increase in national debt. Debt levels are expected to continue to rise due to the continued depreciation of the shilling.