As of March 2025, Tanzania’s total external debt stood at USD 34.06 billion, with the central government accounting for 78.3% (USD 26.67 billion), reflecting the public sector’s dominant role in external borrowing. The private sector held USD 7.38 billion (21.7%), of which USD 1.28 billion represented interest arrears. Disbursed funds were largely directed toward transport and telecommunication (21.3%), budget and balance of payments support (20.6%), and social welfare and education (20.1%), highlighting the government’s investment in infrastructure and social sectors. In terms of currency composition, the debt stock was heavily denominated in US dollars (67.7%), followed by the Euro (16.7%) and Chinese Yuan (6.3%), exposing the country to significant exchange rate risk. These figures underscore Tanzania’s strategy of development-oriented borrowing, while also signaling the need for prudent foreign currency risk management.
1. External Debt Stock by Borrowers (March 2025)
| Borrower | USD Million | Share (%) |
| Central Government | 26,670.3 | 78.3% |
| └ Disbursed Debt | 26,592.9 | 78.1% |
| └ Interest Arrears | 77.4 | 0.2% |
| Private Sector | 7,382.4 | 21.7% |
| └ Disbursed Debt | 6,098.8 | 17.9% |
| └ Interest Arrears | 1,283.6 | 3.8% |
| Public Corporations | 3.8 | 0.0% |
| Total External Debt | 34,056.5 | 100% |
Insight: Public sector dominates Tanzania’s external debt, with over three-quarters owed by the central government.
2. Disbursed Outstanding Debt by Use of Funds (March 2025)
| Sector | Share (%) |
| Balance of Payments & Budget Support | 20.6% |
| Transport & Telecommunication | 21.3% |
| Agriculture | 4.9% |
| Energy & Mining | 13.5% |
| Industries | 3.9% |
| Social Welfare & Education | 20.1% |
| Finance & Insurance | 3.9% |
| Tourism | 1.6% |
| Real Estate & Construction | 4.8% |
| Other | 5.5% |
| Total | 100% |
Insight: The top three sectors—Transport & Telecom (21.3%), Social Welfare & Education (20.1%), and BoP/Budget Support (20.6%)—account for over 62% of debt usage, showing focus on infrastructure and public services.
3. Debt by Currency Composition (March 2025)
| Currency | Share (%) |
| US Dollar (USD) | 67.7% |
| Euro (EUR) | 16.7% |
| Chinese Yuan (CNY) | 6.3% |
| Other Currencies | 9.3% |
| Total | 100% |
Insight: The US dollar continues to dominate, making up over two-thirds of external debt. This exposes the debt profile to USD exchange rate risk.
As of March 2025, Tanzania’s external debt totaled USD 34.06 billion, with the central government accounting for 78.3%. Debt usage was primarily focused on infrastructure, public services, and budget support. The portfolio is heavily denominated in USD (67.7%), signaling potential currency exposure risk that needs active management.
1. Debt Is Primarily Public and Government-Controlled
This shows: Tanzania’s external debt is mainly public, which gives the government control over how funds are allocated and managed, but also increases fiscal responsibility and repayment risk for the state.
2. Debt Is Focused on Development Priorities
This shows: Borrowed funds are being directed towards infrastructure, public services, and economic growth sectors, which are critical for long-term development.
3. High Exposure to the US Dollar
This shows: Tanzania is highly exposed to USD fluctuations, meaning if the US dollar strengthens, the cost of servicing the debt increases in local currency (TZS). This is a key exchange rate risk.
The data indicates that Tanzania’s external debt is heavily concentrated in the central government, used for productive sectors like infrastructure and social services. However, the large share in USD poses a currency risk, making it important for Tanzania to maintain foreign reserves and export earnings to cushion against global shocks.