A data-driven breakdown of Tanzania's total debt position as of April 2026, covering external and domestic debt in Tanzanian Shillings, creditor composition, currency exposure, debt service flows, and long-term fiscal sustainability trends.
Tanzania's national debt encompasses all public and private external obligations plus central government domestic borrowing. Total debt reached TZS 132.9 trillion at end-April 2026, up from TZS 121.6 trillion in April 2025 — a year-on-year increase of TZS 11.3 trillion (9.3%). External debt continues to dominate, representing 70.4% of the total stock. The exchange rate used for USD-to-TZS conversions throughout this page is TZS 2,602 per USD (Bank of Tanzania end-April 2026 rate).
| Debt Component | Apr-25 (TZS T) | Jun-25 (TZS T) | Sep-25 (TZS T) | Dec-25 (TZS T) | Feb-26 (TZS T) | Mar-26 (TZS T) | Apr-26 (TZS T) | YoY Change |
|---|---|---|---|---|---|---|---|---|
| External Debt (USD converted to TZS) | 90.5 | 88.7 | 87.1 | 86.9 | 90.7 | 93.4 | 93.5 | +3.3% |
| — USD Millions | 33,764.5 | 34,053.0 | 34,953.6 | 35,023.9 | 35,343.0 | 35,886.2 | 35,949.6 | +6.5% |
| — TZS/USD Rate Used | 2,679.2 | 2,604.6 | 2,442.8 | 2,447.5 | 2,542.5 | 2,577.4 | 2,602.0 | — |
| Domestic Debt (TZS Trillions) | 34.8 | 35.6 | 40.1 | 40.3 | 39.7 | 38.4 | 39.3 | +13.2% |
| Total National Debt (TZS Trillions) | 121.6* | 125.2* | 132.8* | 132.7* | 130.0* | 132.2* | 132.9* | +9.3% |
* Approximated using end-of-period exchange rates. Original BOT data in USD and TZS billions. Note: domestic debt stock in table excludes liquidity papers per BOT methodology.
External debt (public and private) stood at TZS 93.5 trillion (USD 35.9 billion) at end-April 2026. Public external debt accounted for 82.7% (TZS 77.3 trillion / USD 29.7 billion) of the total. Multilateral institutions remain the dominant creditor block, followed by commercial lenders. Transport & Telecommunication and Budget Support are the leading uses of disbursed external funds.
| Creditor Category | Apr-25 (USD Mn) | Apr-25 (TZS T) | Mar-26 (USD Mn) | Mar-26 (TZS T) | Apr-26 (USD Mn) | Apr-26 (TZS T) | Share Apr-26 (%) |
|---|---|---|---|---|---|---|---|
| Multilateral (DOD) | 18,931.8 | 50.7 | 20,803.3 | 53.6 | 20,926.1 | 54.4 | 58.2% |
| — Interest Arrears | 33.8 | 0.09 | 23.2 | 0.06 | 24.2 | 0.06 | — |
| Commercial Lenders (DOD) | 11,869.4 | 31.8 | 12,429.1 | 32.0 | 12,345.0 | 32.1 | 34.3% |
| — Interest Arrears | 383.8 | 1.03 | 349.4 | 0.90 | 365.1 | 0.95 | — |
| Bilateral (DOD) | 1,463.2 | 3.92 | 1,553.5 | 4.00 | 1,558.4 | 4.05 | 4.3% |
| Export Credits (DOD) | 906.4 | 2.43 | 672.4 | 1.73 | 673.8 | 1.75 | 1.9% |
| — Interest Arrears | 176.1 | 0.47 | 55.3 | 0.14 | 56.9 | 0.15 | — |
| TOTAL External Debt Stock (DOD) | 33,764.5 | 90.5 | 35,886.2 | 92.5 | 35,949.6 | 93.5 | 100% |
| Use of Funds | Apr-25 (%) | Apr-25 (TZS T est.) | Mar-26 (%) | Apr-26 (%) | Apr-26 (USD Mn) | Apr-26 (TZS T) |
|---|---|---|---|---|---|---|
| Transport & Telecommunication | 21.5 | 19.4 | 22.3 | 22.4 | 8,053.4 | 20.9 |
| BoP & Budget Support | 20.7 | 18.7 | 22.3 | 22.3 | 8,017.7 | 20.9 |
| Social Welfare & Education | 20.2 | 18.2 | 19.2 | 19.3 | 6,938.3 | 18.1 |
| Energy & Mining | 12.9 | 11.6 | 12.0 | 12.0 | 4,313.9 | 11.2 |
| Agriculture | 5.0 | 4.5 | 5.3 | 5.3 | 1,905.3 | 4.96 |
| Real Estate & Construction | 4.8 | 4.3 | 5.1 | 5.1 | 1,833.4 | 4.77 |
| Finance & Insurance | 4.2 | 3.8 | 3.6 | 3.6 | 1,294.2 | 3.37 |
| Industries | 3.5 | 3.2 | 3.7 | 3.7 | 1,330.1 | 3.46 |
| Tourism | 1.8 | 1.6 | 1.8 | 1.8 | 647.1 | 1.68 |
| Other | 5.5 | 5.0 | 4.8 | 4.5 | 1,617.7 | 4.21 |
| Total | 100.0 | 90.5 | 100.0 | 100.0 | 35,949.6 | 93.5 |
The combined share of Transport & Telecommunications (22.4%) and Budget/BoP Support (22.3%) constitutes nearly 45% of Tanzania's entire external disbursed debt — totalling TZS 41.8 trillion. This reflects the government's sustained investment in infrastructure (particularly TAZARA, port development, and road networks) alongside reliance on balance of payments support from multilateral partners. The declining share of Energy & Mining (from 12.9% to 12.0%) warrants monitoring given Tanzania's ongoing energy infrastructure needs under FYDP IV. Social sector allocations at 19.3% remain the third-largest use of external funds, consistent with Tanzania's development priorities.
Tanzania's external debt is heavily concentrated in US Dollars, which constituted 66.0% of disbursed outstanding debt in April 2026. This creates significant exchange rate exposure — every 1% depreciation of the TZS against the USD increases the TZS value of external debt by approximately TZS 617 billion.
| Currency | Apr-25 Share (%) | Apr-25 (USD Mn equiv.) | Apr-25 (TZS T) | Feb-26 Share (%) | Apr-26 Share (%) | Apr-26 (USD Mn equiv.) | Apr-26 (TZS T) | FX Risk Level |
|---|---|---|---|---|---|---|---|---|
| US Dollar (USD) | 66.6 | 22,487.2 | 60.2 | 66.3 | 66.0 | 23,727.0 | 61.7 | HIGH |
| Euro (EUR) | 17.4 | 5,874.9 | 15.7 | 17.6 | 17.7 | 6,363.1 | 16.6 | MEDIUM |
| Chinese Yuan (CNY) | 6.4 | 2,160.9 | 5.79 | 6.5 | 6.6 | 2,372.6 | 6.17 | MEDIUM |
| Other Currencies | 9.7 | 3,275.2 | 8.77 | 9.7 | 9.7 | 3,487.1 | 9.07 | LOW-MED |
| Total External Debt | 100.0 | 33,764.5 | 90.5 | 100.0 | 100.0 | 35,949.6 | 93.5 | — |
With 66.0% of external debt denominated in USD (TZS 61.7 trillion), Tanzania faces concentrated currency risk. However, the Tanzanian Shilling has actually appreciated 2.7% against the USD year-on-year as of April 2026 (TZS 2,612 vs TZS 2,684), which reduces the TZS burden of debt service in the near term. The 6.6% Chinese Yuan share (TZS 6.2 trillion) largely reflects infrastructure financing from Chinese institutions. Euro-denominated debt at 17.7% (TZS 16.6 trillion) primarily corresponds to multilateral and bilateral European creditors. Sustained foreign exchange reserve adequacy (4.4 months import cover) provides an important buffer against currency shock transmission.
Government domestic debt reached TZS 39.3 trillion at end-April 2026, a 2.3% increase from March 2026 and a 13.2% rise from April 2025. The increase was driven primarily by expansion of the overdraft facility (+15.0% in April alone). Government bonds constitute the largest instrument at TZS 31.8 trillion (80.8%), reflecting Tanzania's shift toward longer-term domestic financing.
| Instrument | Apr-25 (TZS T) | Apr-25 Share (%) | Mar-26 (TZS T) | Apr-26 (TZS T) | Apr-26 Share (%) | MoM Change | YoY Change |
|---|---|---|---|---|---|---|---|
| Government Securities (total) | 29.6 | 85.1% | 33.3 | 33.4 | 85.0% | +0.3% | +13.2% |
| Treasury Bills | 1.94 | 5.6% | 1.58 | 1.52 | 3.9% | −3.6% | −21.6% |
| Government Bonds | 27.5 | 79.0% | 31.6 | 31.8 | 80.8% | +0.5% | +15.7% |
| Government Stocks | 0.19 | 0.5% | 0.14 | 0.14 | 0.4% | 0.0% | −27.1% |
| Tax Certificates | 0.0 | 0.0% | 0.0 | 0.0 | 0.0% | — | — |
| Non-Securitized Debt (Overdraft) | 5.16 | 14.9% | 5.13 | 5.90 | 15.0% | +15.0% | +14.3% |
| TOTAL DOMESTIC DEBT | 34.8 | 100% | 38.4 | 39.3 | 100% | +2.3% | +13.2% |
| Creditor Category | Apr-25 (TZS T) | Apr-25 Share (%) | Mar-26 (TZS T) | Apr-26 (TZS T) | Apr-26 Share (%) | YoY Change |
|---|---|---|---|---|---|---|
| Commercial Banks | 10.0 | 28.9% | 10.9 | 11.1 | 28.1% | +10.0% |
| Pension Funds | 9.2 | 26.4% | 10.5 | 10.4 | 26.5% | +13.3% |
| Bank of Tanzania | 7.1 | 20.5% | 6.9 | 7.7 | 19.6% | +8.4% |
| Others (incl. individuals, public inst.) | 6.0 | 17.3% | 7.3 | 7.3 | 18.7% | +22.1% |
| Insurance Companies | 1.86 | 5.3% | 2.0 | 2.0 | 5.1% | +8.3% |
| BOT Special Funds | 0.56 | 1.6% | 0.79 | 0.80 | 2.0% | +41.5% |
| TOTAL | 34.8 | 100% | 38.4 | 39.3 | 100% | +13.2% |
The 15.0% single-month jump in the overdraft (non-securitized) debt in April 2026 — rising from TZS 5.1 trillion to TZS 5.9 trillion — deserves attention. Overdraft utilization signals short-term government cash flow pressures, even when overall revenue performance is strong. Commercial banks remain the largest single domestic creditor at TZS 11.1 trillion (28.1%), closely followed by pension funds at TZS 10.4 trillion (26.5%). The growth of government bond stock to TZS 31.8 trillion over the year reflects active domestic capital market development. Treasury yields have declined significantly — 10-year bond WAY fell from 14.26% (April 2025) to 9.40% (April 2026) — indicating strong investor demand and improving sovereign risk perception.
External debt service payments in April 2026 totalled TZS 630 billion (USD 242 million), comprising TZS 495 billion (USD 190.4 million) in principal repayments and TZS 135 billion (USD 51.7 million) in interest payments. For the full FY2025/26 budget, total domestic interest payments are budgeted at TZS 6.5 trillion, of which TZS 4.1 trillion had been paid by end-March 2026.
| Period | Total Service (USD Mn) | Total Service (TZS B) | Principal (USD Mn) | Principal (TZS B) | Interest (USD Mn) | Interest (TZS B) |
|---|---|---|---|---|---|---|
| Apr-25 | 155.5 | 416.7 | 142.3 | 381.3 | 13.2 | 35.4 |
| May-25 | 404.7 | 1,087.0 | 286.2 | 768.9 | 118.4 | 318.1 |
| Jun-25 | 259.1 | 674.9 | 185.4 | 482.6 | 73.7 | 191.9 |
| Jul-25 | 122.3 | 311.2 | 92.7 | 235.9 | 29.6 | 75.3 |
| Aug-25 | 85.6 | 210.8 | 32.9 | 81.1 | 52.6 | 129.6 |
| Sep-25 | 130.9 | 319.9 | 75.3 | 184.0 | 55.6 | 135.9 |
| Oct-25 | 344.3 | 843.9 | 262.0 | 642.2 | 82.3 | 201.8 |
| Nov-25 | 110.1 | 268.2 | 76.4 | 186.0 | 33.7 | 82.1 |
| Dec-25 | 183.5 | 449.1 | 136.8 | 334.8 | 46.7 | 114.3 |
| Jan-26 | 99.0 | 249.3 | 81.5 | 205.2 | 17.5 | 44.1 |
| Feb-26 | 100.8 | 256.3 | 35.4 | 90.0 | 65.4 | 166.2 |
| Mar-26 | 129.5 | 333.8 | 60.0 | 154.6 | 69.5 | 179.1 |
| Apr-26 | 242.0 | 630.0 | 190.4 | 495.0 | 51.7 | 135.0 |
Total external debt arrears stood at USD 2,191.9 million (TZS 5.70 trillion) at end-April 2026, comprising TZS 4.33 trillion in principal arrears and TZS 1.37 trillion in interest arrears. Commercial lenders account for the largest share of arrears at 60.1% of principal arrears. Multilateral arrears (largely private sector obligations) remain relatively contained.
| Arrear Type | Apr-25 (USD Mn) | Apr-25 (TZS B) | Mar-26 (USD Mn) | Apr-26 (USD Mn) | Apr-26 (TZS B) | Change Apr-25 to Apr-26 |
|---|---|---|---|---|---|---|
| Principal Arrears (Total) | 1,452.1 | 3,890 | 1,609.4 | 1,665.5 | 4,333 | +14.7% |
| — Bilateral | 157.0 | 421 | 188.0 | 189.2 | 492 | +20.5% |
| — Multilateral | 53.0 | 142 | 2.0 | 7.9 | 21 | −85.1% |
| — Commercial | 1,021.1 | 2,736 | 1,226.3 | 1,273.0 | 3,312 | +24.7% |
| — Export Credits | 221.1 | 593 | 193.1 | 195.4 | 508 | −11.6% |
| Interest Arrears (Total) | 671.6 | 1,799 | 507.9 | 526.3 | 1,369 | −21.6% |
| — Bilateral | 78.0 | 209 | 80.0 | 80.1 | 208 | +2.7% |
| — Multilateral | 33.8 | 91 | 23.2 | 24.2 | 63 | −28.4% |
| — Commercial | 383.8 | 1,028 | 349.4 | 365.1 | 950 | −4.9% |
| — Export Credits | 176.1 | 472 | 55.3 | 56.9 | 148 | −67.7% |
| TOTAL Arrears | 2,123.7 | 5,689 | 2,117.3 | 2,191.9 | 5,703 | +3.2% |
Principal arrears to commercial lenders increased by 24.7% year-on-year to TZS 3,312 billion (USD 1,273 million). Commercial lenders now account for 76.5% of total principal arrears (up from 70.3% in April 2025). While interest arrears to export credit agencies have declined significantly (−67.7% y/y), the persistent growth in commercial principal arrears signals potential refinancing risks and could affect Tanzania's access to international capital markets. TICGL recommends that policymakers prioritise commercial creditor arrears resolution as part of the broader debt management strategy under FYDP IV.
Tanzania's budget deficit remained relatively contained at approximately 3.0% of GDP in FY2024/25, reflecting the government's fiscal consolidation effort. External debt as a share of GDP has increased over recent years, requiring sustained attention to debt composition and maturity profiles.
| Indicator | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024r | 2025p |
|---|---|---|---|---|---|---|---|---|
| GDP Growth (Constant 2015 Prices, %) | 7.0 | 6.9 | 4.5 | 4.8 | 4.7 | 5.1 | 5.5 | 6.0 |
| Annual Inflation (%) | 3.5 | 3.4 | 3.3 | 3.7 | 4.3 | 3.8 | 3.1 | 3.3 |
| Current Revenue to GDP (%) | 14.8 | 14.3 | 15.0 | 13.7 | 14.9 | 15.0 | 14.7 | 15.6 |
| Development Expenditure to GDP (%) | 6.6 | 6.5 | 7.1 | 7.8 | 9.2 | 7.4 | 7.2 | 6.9 |
| Overall Budget Balance to GDP (%) | −1.9 | −3.3 | −1.9 | −4.0 | −3.6 | −3.1 | −3.1 | −3.0 |
| External Debt Stock (USD Billion) | 20.5 | 21.9 | 23.0 | 25.5 | 27.8 | 30.3 | 32.0 | 34.8 |
| External Debt (TZS Trillion, approx.) | 46.4 | 50.1 | 52.8 | 58.6 | 64.1 | 72.2 | 83.1 | 88.3 |
| Gross Foreign Reserves (USD Bn) | 5.0 | 5.6 | 4.8 | 6.4 | 5.2 | 5.5 | 5.5 | 6.3 |
| Import Cover (Months) | 4.9 | 6.4 | 5.6 | 6.6 | 4.7 | 4.5 | 4.5 | 4.9 |
| Private Sector Credit to GDP (%) | 14.3 | 14.6 | 14.0 | 14.3 | 16.0 | 17.0 | 17.4 | 21.6 |
Several positive signals support Tanzania's debt sustainability outlook: GDP growth is accelerating (6.0% in 2025), the current revenue-to-GDP ratio improved to 15.6% in FY2024/25, foreign reserves reached USD 6.3 billion (4.9 months of import cover), and the budget deficit remained at 3.0% of GDP — within EAC and SADC convergence benchmarks. However, the rapid growth of domestic debt (+13.2% year-on-year) and the increase in commercial arrears call for continued vigilance. The decline in Treasury yields (10-year bond WAY from 14.26% to 9.40% over 12 months) reflects improved market confidence but also indicates rising financing volumes through the domestic market that need careful management to avoid crowding out private sector credit.
Explore related economic analyses and tools from Tanzania's leading investment research advisory firm.