As of February 2025, Tanzania’s total public debt reached TZS 109.92 trillion (approximately USD 42.68 billion), with external debt accounting for 73.4% (TZS 80.73 trillion) and domestic debt 26.6% (TZS 29.19 trillion). Given a population of around 69–70 million, this translates to an average debt burden of TZS 1.57–1.59 million per citizen. The high proportion of external debt—largely denominated in USD—underscores the importance of prudent fiscal management to ensure long-term sustainability amid exchange rate and global interest rate fluctuations.
Tanzania's total debt (external + domestic) as of February 2025, including figures in Tanzania shillings (TZS), along with an estimate of debt per citizen based on a population of 69–70 million:
Tanzania’s Total Public Debt Profile – February 2025
🔸 1. Total Public Debt
Total Public Debt Stock:
USD: $42.68 billion
TZS: Approx. TZS 109.98 trillion (Using an exchange rate of TZS 2,577.35/USD, as reported in Feb 2025)
🔹 2. Breakdown of Public Debt
Debt Type
Amount (USD)
Amount (TZS)
% Share
External Debt
$31.31 billion
TZS 80.73 trillion
73.4%
Domestic Debt
$11.37 billion
TZS 29.19 trillion
26.6%
Total
$42.68 billion
TZS 109.92 trillion
100%
Debt per Citizen Estimate
Assuming a population between 69 million and 70 million, here’s how much debt is effectively held per Tanzanian:
Population
Total Debt (TZS)
Debt per Citizen (TZS)
69 million
TZS 109.92 trillion
~TZS 1.59 million
70 million
TZS 109.92 trillion
~TZS 1.57 million
What This Tells Us
Tanzania’s public debt is growing, driven mainly by external borrowing (over 73% of total).
The average debt burden per Tanzanian citizen is around TZS 1.57–1.59 million, showing the scale of fiscal responsibility required over time.
While this debt has supported key infrastructure and development projects, it also raises questions about long-term repayment capacity and debt sustainability, especially with most external debt denominated in USD (over 65%).
The total public debt figures and debt per citizen tell us about Tanzania’s current financial situation:
What It Tells Us
High Debt Burden With total public debt reaching TZS 109.92 trillion (≈USD 42.68 billion), Tanzania has a substantial financial obligation—mostly owed to external creditors (73.4% of the total). This shows that the country relies heavily on foreign borrowing, which exposes it to currency risks, especially if the shilling weakens further.
Heavy Debt per Capita At an average of TZS 1.57–1.59 million per citizen, the debt burden per person is significant, especially considering that Tanzania’s GDP per capita is under TZS 4 million. This implies that each citizen would owe nearly 40% of their annual income if the national debt were to be evenly distributed—a high ratio for a developing economy.
Growing Domestic Financing While still smaller than external debt, domestic debt (26.6%) is increasing steadily. This shows that the government is also tapping into local capital markets and institutional investors, such as commercial banks and pension funds, which can strengthen domestic financial systems but also crowd out private sector lending.
Debt Sustainability Is Crucial The current debt size is manageable if the borrowed funds are used for productive investments—like infrastructure, health, and education—that generate future returns. However, the growing reliance on debt financing calls for tight fiscal discipline and improved revenue collection to maintain debt sustainability and avoid excessive repayment pressures.
