Dodoma — THE government has allayed fears over the rise in the national debt-to-GDP ratio to 40.7 per cent, explaining that the current level is largely due to borrowing used to finance mega projects aimed at boosting economic growth and improving the living standards of citizens.
The Chief Government Spokesperson, who is also the Permanent Secretary in the Ministry of Information, Culture, Arts and Sports Mr Gerson Msigwa, said this in Dodoma yesterday, acknowledging that the issue of national debt has been widely discussed and has raised concern among some members of the public.
He said those discussing the matter often fail to explain how the loans have enabled the government to implement various development projects, including railway, water and road infrastructure.
"The critics will not tell you; instead, they have been saying that the government has excessively borrowed.
Follow us on WhatsApp | LinkedIn for the latest headlines
"They will not tell you that we have implemented the construction of the Julius Nyerere Hydropower Project (JNHPP) at a cost of 6.56tri/-. The project is funded by the Government of the United Republic of Tanzania," Mr Msigwa, who is also the Director of the Government Information Services Department (MAELEZO) said.
According to Mr Msigwa, by 2021 the JNHPP contractor had been paid only 20.63 per cent, but the remaining 80 per cent, equivalent to 5.23tri/-, was paid between 2021 and 2024, enabling the completion of the project. He added that criticism surrounding national debt often overlooks the increase in electricity generation capacity from 1,902.958 megawatts to 4,038.95 megawatts on the National Grid.
"They will not tell you that there is now a reliable electricity supply for citizens and industries, ending power rationing completely, attracting more international investors and supporting economic growth," he added.
He said funds have also been directed towards other projects that directly impact people's lives, including water, health and education. On the improvement of Dar es Salaam Port under the Dar es Salaam Maritime Gateway Project, the spokesperson said the initiative has so far cost 629.82bn/-.
ALSO READ: Samia spurs industrial growth
He said the port can now accommodate large vessels of up to 305 metres in length, following the upgrades carried out at the facility. He added that cargo handled at the port has increased from 16.27 million tonnes in 2020/21 to 27.76 million tonnes in 2024/25, representing a 70.62 per cent increase.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"The time taken to serve ships has also decreased from an average of 10 days to three days, while waiting time for vessels at anchorage has dropped from 46 days to an average of seven days," he said, insisting that Tanzania should not be distracted by misleading information circulating about national debt.
Mr Msigwa further noted that despite these achievements, Tanzanians remain key stakeholders in the country's development through tax contributions.
"I would also like to take this opportunity to congratulate the Tanzania Revenue Authority (TRA) for the good work they are doing," he said.
He said the tax authority has made significant progress, with average monthly revenue collection now reaching 3tri/- compared to only 25bn/- in 1995/96 before the establishment of TRA. Mr Msigwa added that in the 2026/27 government budget, the country expects TRA revenue collections to reach approximately 41tri/-.
He further said that after consulting TRA management, he was informed that in the new financial year starting July 1, 2026, collections will exceed 3tri/- monthly, with average revenue expected to reach 3.4tri/-.
