By the end of 2024, Tanzania’s external debt landscape had reached a critical juncture, reflecting a decade of accelerated borrowing to finance infrastructure, energy, and social development priorities. According to the World Bank’s International Debt Report 2025, Tanzania’s total external debt stock stood at US$36.3 billion, more than four times higher than the US$8.9 billion recorded in 2010. Within this total, Public and Publicly Guaranteed (PPG) debt accounted for approximately US$25.6 billion, underscoring the central role of government-backed borrowing in shaping the country’s fiscal position.
The structure of Tanzania’s public debt financing in 2024 is heavily tilted toward multilateral institutions, a feature that distinguishes Tanzania from several of its East African peers and has important implications for sustainability. Multilateral creditors—including the World Bank, the African Development Bank (AfDB), and the International Monetary Fund (IMF)—collectively financed about 69% of Tanzania’s PPG external debt, equivalent to roughly US$17.8 billion. The World Bank alone accounted for US$12.1 billion, representing nearly half (47%) of total PPG debt, making it Tanzania’s single largest creditor. This reliance on concessional multilateral finance has helped Tanzania maintain relatively low debt-servicing pressures, with debt service consuming only 3% of Gross National Income (GNI) and 12% of export earnings in 2024—well below Kenya’s 5% of GNI and 27% of exports.
Bilateral creditors played a secondary but strategically significant role, financing approximately 14% of PPG debt, or US$3.6 billion. Within this category, China emerged as the dominant bilateral lender, holding an estimated US$2.6 billion, equivalent to around 10% of total PPG debt. These loans are largely associated with large-scale infrastructure projects, including transport and energy investments, which have long-term growth potential but also carry execution and revenue risks. Other bilateral partners—such as India, Korea, and France—collectively accounted for smaller shares (each around 1–2%), often targeting sector-specific development initiatives.
Private creditors represented a growing but more risk-sensitive component of Tanzania’s public debt portfolio. In 2024, private creditors—primarily commercial banks and other private lenders—held approximately US$4.3 billion, or 17% of PPG debt. Notably, Tanzania had no exposure to international bondholders, unlike regional peers such as Kenya. This absence of eurobond debt has shielded Tanzania from rollover and refinancing risks during a period of elevated global interest rates, reinforcing short-term debt sustainability. However, private loans typically carry higher interest rates and shorter maturities, meaning their rising share could increase fiscal pressure if not carefully managed.
From a sustainability perspective, Tanzania’s creditor composition offers both reassurance and caution. On the one hand, the dominance of concessional multilateral financing has kept debt servicing costs manageable and supported macroeconomic stability, even as net external debt inflows reached US$3.1 billion in 2024—the highest in East Africa. On the other hand, continued reliance on external borrowing, particularly in a context where external debt equals 47% of GNI and 222% of export earnings, exposes Tanzania to exchange rate shocks and export volatility.
Ultimately, who finances Tanzania’s public debt matters as much as how much is borrowed. In 2024, Tanzania’s public debt sustainability was underpinned by favorable creditor terms rather than low debt levels. Maintaining this position will require disciplined borrowing, stronger export growth, and ensuring that debt-financed investments generate sufficient economic returns to support repayment over the medium to long term. Read More of This Topic: External Debt Stock by Borrower
PPG debt includes loans to the public sector that are guaranteed by the government, encompassing borrowings from official creditors (multilateral and bilateral) and private sources. By the end of 2024, Tanzania's PPG debt (including IMF credit) stood at approximately US$25.6 billion, accounting for a significant portion of the country's long-term external debt. This figure reflects Tanzania's strategy of leveraging concessional financing to fund development priorities, but it also underscores vulnerabilities to global interest rate shifts and currency fluctuations.
The creditor composition reveals a heavy dependence on multilateral lenders, which provide favorable terms such as longer maturities and lower interest rates. This has helped keep debt servicing burdens manageable—at 3% of GNI and 12% of exports in 2024—compared to regional peers like Kenya (5% of GNI and 27% of exports). However, with net debt inflows reaching US$3.1 billion in 2024, the highest in East Africa, ongoing borrowing could strain future fiscal space if export growth falters.
The following table presents Tanzania's PPG debt in 2024, categorized by creditor type and key sub-creditors. Data is sourced from the International Debt Report 2025, with specific breakdowns estimated from the report's visual representations (e.g., pie charts in Figure 1). Amounts are in US$ million, and percentages are approximate, reflecting rounded values from the report. IMF credit is integrated under multilateral creditors, as per the report's methodology, contributing to the total PPG figure of US$25,593 million (derived from long-term PPG of US$24,277 million plus IMF credit of US$1,316 million).
| Creditor Type | Sub-Creditor/Creditor | Amount (US$ million) | % of Total PPG (incl. IMF) |
| Multilateral (excl. IMF) | Total Multilateral (excl. IMF) | 16,435 | ~64% |
| World Bank | 12,097 | ~47% | |
| AfDB (African Development Bank) | ~3,583 (est.) | ~14% | |
| Other Multilateral | ~4,351 (est.) | ~17% | |
| IMF Credit | IMF | 1,316 | ~5% (reported as 6% in figure) |
| Bilateral | Total Bilateral | 3,571 | ~14% |
| China | ~2,559 (est.) | ~10% | |
| India | ~512 (est.) | ~2% | |
| Korea, Rep. | ~512 (est.) | ~2% | |
| France | ~256 (est.) | ~1% | |
| Other Bilateral | ~1,538 (est.) | ~6% | |
| Private Creditors | Total Private | 4,272 | ~17% |
| Bondholders | .. | 0% | |
| Commercial Banks and Others | 4,272 | ~17% (incl. other commercial ~4%) | |
| Total PPG (incl. IMF) | 25,593 | 100% |
The dominance of multilateral creditors (around 69% including IMF) in Tanzania's PPG debt portfolio is a double-edged sword. On one hand, it ensures concessional terms that support debt sustainability; the World Bank and AfDB together account for over 60% of this category, financing projects aligned with Tanzania's National Development Vision 2025. IMF credit, at US$1,316 million, has provided balance-of-payments support, particularly post-COVID recovery.
Bilateral creditors, making up 14%, highlight strategic partnerships. China's ~10% share is notable, linked to major investments like the Standard Gauge Railway and power plants. Smaller contributions from India, Korea, and France often focus on sector-specific aid, such as agriculture and technology.
Private creditors' 17% share signals maturing financial markets but introduces risks, as these loans typically carry higher interest rates and shorter terms. With no bondholder debt reported, Tanzania has avoided eurobond exposures seen in peers like Kenya, reducing immediate refinancing pressures.
In the East African context, Tanzania's PPG composition favors stability compared to Rwanda (94% debt-to-GNI) or Ethiopia (311% debt-to-exports). However, as global conditions tighten, diversifying creditors and boosting exports (e.g., through mining and agriculture) will be crucial. The report emphasizes debt transparency and management reforms to mitigate risks.