01 — OverviewExecutive Summary
Tanzania's government domestic debt stock reached TZS 39.47 trillion at the end of July 2026, a modest TZS 0.15 trillion increase from June, but a much larger TZS 4.12 trillion increase from a year earlier. Behind that single number sits a specific, concentrated set of creditors, and a debt structure that shifted noticeably in just one month.
This briefing unpacks who holds Tanzania's domestic debt, how that composition has evolved, and what drove July 2026's specific movements, using the Bank of Tanzania's own creditor and instrument data, all converted here to Trillions of Tanzanian Shillings.
- Commercial banks and pension funds together hold 55.6% of all domestic debt — TZS 11.45 trillion and TZS 10.49 trillion respectively — making them, by a wide margin, the two most important creditors to Tanzania's own government.
- Domestic debt has grown 161% in six years, from TZS 15.11 trillion in July 2020 to TZS 39.47 trillion in July 2026, though the pace of annual growth has slowed considerably from its 2022 peak.
- Government securities now make up 90.0% of the debt stock, up sharply from 84.7% in June 2026, as fresh bond issuance replaced short-term overdraft financing.
- Non-securitized debt (mainly government overdraft) fell to TZS 3.94 trillion, from TZS 6.01 trillion in June — a TZS 2.07 trillion one-month swing.
- The Bank of Tanzania's own holdings declined to TZS 6.82 trillion (17.3% share) from TZS 7.20 trillion, even as the total debt stock grew — a sign private and institutional creditors absorbed more of July's new issuance.
Part of TICGL's July 2026 financial markets series
This debt briefing completes a three-part picture of Tanzania's shilling financial markets in July 2026: what government securities auctions and interbank liquidity looked like, what borrowers and savers actually paid and earned, and now, who is actually funding the government itself. Read all three together for the fullest view.
Read: Government Securities & Interbank Cash Market → Read: Lending & Deposit Interest Rates →02 — At a GlanceKey Numbers From July 2026
Government Domestic Debt Stock, 2020-2026
Source: Bank of Tanzania, Chart 2.6.1 — Government Domestic Debt Stock, Monthly Economic Review, August 2026.
03 — MethodologyReading the Bank of Tanzania's Domestic Debt Data
The Bank of Tanzania publishes government domestic debt stock both by creditor category (who holds it) and by borrowing instrument (what form it takes), alongside a six-year annual trend and monthly detail on new issuance for financing purposes. This briefing draws on Chart 2.6.1 (Government Domestic Debt Stock), Chart 2.6.2 (Issued Government Securities for Financing Purposes), Table 2.6.5 (Government Domestic Debt by Borrowing Instruments), and Table 2.6.6 (Government Domestic Debt by Creditor Category).
The Bank of Tanzania's underlying tables report these figures in Billions of TZS. At close to TZS 40,000 billion, the debt stock is easier to read and compare in Trillions of TZS (dividing every figure by 1,000), which is the unit used consistently throughout this briefing.
This briefing covers government domestic debt only — money the government owes to lenders inside Tanzania, excluding liquidity papers used purely for monetary policy operations. It does not cover Tanzania's external (foreign-currency) debt, which TICGL's companion Government Securities briefing touches on separately.
1. The Long Climb: Domestic Debt Since 2020
Growing, but deceleratingTanzania's government domestic debt has more than doubled since July 2020, rising from TZS 15.11 trillion to TZS 39.47 trillion by July 2026 — a 161% increase over six years. But the pace of that growth has slowed considerably from its post-pandemic peak.
| Period | Debt stock (TZS tn) | Annual growth |
|---|---|---|
| July 2020 | 15.11 | — |
| July 2021 | 17.82 | +17.9% |
| July 2022 | 23.68 | +32.9% |
| July 2023 | 28.51 | +20.4% |
| July 2024 | 32.47 | +13.9% |
| July 2025 | 35.35 | +8.9% |
| June 2026 | 39.33 | — |
| July 2026 | 39.47 | +11.7% |
Source: Bank of Tanzania, Chart 2.6.1. Annual growth for July 2026 measured against July 2025.
Growth peaked at nearly 33% in the year to July 2022 — likely reflecting post-pandemic fiscal financing needs — and has since eased toward a steadier high-single-digit to low-double-digit annual pace. A return to roughly 12% growth in the year to July 2026, after 8.9% the year before, is worth watching for whether it marks a new trend or a single-month blip.
2. Who Holds Tanzania's Domestic Debt?
Concentrated among two creditor typesSix creditor categories share Tanzania's domestic debt, but the distribution is far from even. Commercial banks and pension funds alone account for 55.6% of the total — more than double the combined share of the Bank of Tanzania, insurance companies, and BOT's special funds.
Domestic Debt by Creditor, July 2026
Creditor Holdings, Three Snapshots
| Creditor category | Jul-25 (TZS tn) | Jun-26 (TZS tn) | Jul-26 (TZS tn) | Jul-26 share |
|---|---|---|---|---|
| Commercial banks | 10.18 | 11.32 | 11.45 | 29.0% |
| Pension funds | 9.33 | 10.40 | 10.49 | 26.6% |
| Bank of Tanzania | 6.80 | 7.20 | 6.82 | 17.3% |
| Others (private companies, individuals, non-residents) | 6.46 | 7.55 | 7.79 | 19.7% |
| Insurance | 1.81 | 2.02 | 2.06 | 5.2% |
| BOT's special funds | 0.78 | 0.84 | 0.85 | 2.2% |
| Total (excl. liquidity papers) | 35.35 | 39.33 | 39.47 | 100% |
Source: Bank of Tanzania, Table 2.6.6 — Government Domestic Debt by Creditor Category. Figures converted to Trillions of TZS from the Bank's billions-of-TZS source table.
Every creditor category grew its holdings in absolute terms between July 2025 and July 2026, but the Bank of Tanzania's own share fell in July specifically — from TZS 7.20 trillion to TZS 6.82 trillion — while "Others" (private companies, individuals and non-residents) kept climbing. That shift suggests fresh July issuance was placed more with the broader market than with the central bank itself.
3. The Two Anchors: Commercial Banks & Pension Funds
Steadily growing, steadily dominantCommercial banks and pension funds are not just Tanzania's largest domestic creditors today — they have held that position consistently across every snapshot the Bank of Tanzania has published. Combined, their share of total domestic debt has stayed remarkably stable, at 55.2% in July 2025 and 55.6% in July 2026.
Commercial Banks vs. Pension Funds Holdings
For pension funds, this is a natural fit: long-dated government bonds match the long-dated liabilities pension schemes carry. For commercial banks, sustained appetite for government debt at this scale is also a signal worth watching for private-sector credit: a bank's balance sheet capacity used for government securities is capacity not extended as loans to businesses.
4. Domestic Debt by Instrument: A Sharp Shift to Securities
Securities crowding out overdraftBeyond who holds Tanzania's domestic debt, its form matters too. Government securities — Treasury bills, Treasury bonds, government stocks and tax certificates — made up 90.0% of the debt stock in July 2026, up sharply from 84.7% in June, as non-securitized debt (mainly government overdraft) fell from TZS 6.01 trillion to TZS 3.94 trillion in a single month.
Debt by Instrument, Three Snapshots
Instrument Detail: Jul-25 vs. Jul-26
| Instrument | Jul-25 (TZS tn) | Jun-26 (TZS tn) | Jul-26 (TZS tn) | Jul-26 share |
|---|---|---|---|---|
| Government securities (total) | 30.34 | 33.31 | 35.53 | 90.0% |
| of which: Government bonds | 28.19 | 31.42 | 33.62 | 85.2% |
| of which: Treasury bills | 2.02 | 1.76 | 1.78 | 4.5% |
| of which: Government stocks | 0.14 | 0.14 | 0.14 | 0.3% |
| Non-securitized debt (overdraft) | 5.01 | 6.01 | 3.94 | 10.0% |
| Total (excl. liquidity papers) | 35.35 | 39.33 | 39.47 | 100% |
Source: Bank of Tanzania, Table 2.6.5 — Government Domestic Debt by Borrowing Instruments.
A shift from overdraft toward tradable securities is generally a healthier financing pattern: securities are transparently priced at auction and held by a diversified investor base, while overdraft financing is a more opaque, shorter-term source of funding. July's sharp move in that direction is worth confirming over the next few months rather than treating as an established trend.
5. Monthly Financing Activity: How the Debt Actually Grows
Bond-heavy financing in JulyIn July 2026, the government mobilised TZS 0.68 trillion from the domestic market through new securities — TZS 0.18 trillion in Treasury bills and TZS 0.50 trillion in Treasury bonds — while making TZS 0.57 trillion in debt service payments, comprising TZS 0.21 trillion in principal repayments and TZS 0.36 trillion in interest.
Treasury Bills vs. Treasury Bonds Issued for Financing
July 2026 Debt Service: Principal vs. Interest
Interest payments (TZS 0.36 trillion) outweighed principal repayments (TZS 0.21 trillion) within July's debt service — a reminder that as the debt stock has grown, so has the recurring cost of simply servicing it, a cost that competes directly with development spending in the government's budget.
06 — SynthesisCross-Cutting Synthesis: The Month in One Picture
A 161% increase in domestic debt since 2020, and 11.7% growth in the year to July 2026, is a meaningful pace after several years of deceleration — worth confirming isn't a renewed acceleration.
Commercial banks and pension funds together hold 55.6% of domestic debt. Their continued appetite is central to how easily the government can keep financing itself domestically.
The sharp shift from overdraft to securities in July is a positive structural signal, but a single month is not yet a trend — the next few Monthly Economic Reviews will show whether it holds.
TZS 0.57 trillion in a single month's domestic debt service, with interest exceeding principal, underscores why sustainable debt management matters as much as financing volume.
07 — ApplicationWho This Matters To
Pension Funds & Institutional Investors
- Monitor the government securities share of debt (now 90.0%) as a proxy for continued supply of the long-dated bonds pension liabilities are typically matched against.
- Track whether commercial banks' appetite for government debt shifts meaningfully, as it can signal changes in relative pricing between government securities and private credit.
Commercial Banks & Treasury Desks
- Weigh continued government securities holdings against private-sector lending opportunities, given how large a share of bank balance sheets government debt already represents.
- Watch the overdraft-to-securities shift for signals about near-term Treasury bill and bond supply.
Fiscal & Development Policy Analysts
- Track the growing debt service burden (principal plus interest) as a share of monthly government expenditure alongside debt stock growth.
- Use the six-year growth trend to assess whether Tanzania's domestic debt trajectory remains consistent with medium-term debt sustainability targets.
PPP Structurers & Development Partners
- Factor the government's demonstrated domestic financing capacity and creditor concentration into assessments of counterparty fiscal capacity for co-financed projects.
- Consider how a growing debt service bill may affect the government's capacity for new development expenditure commitments.
"Tanzania's domestic debt is not owed to some abstract market — it is owed overwhelmingly to the country's own banks and pension funds. That concentration is a strength when appetite holds, and a vulnerability the moment it doesn't. July's sharp pivot toward securities and away from overdraft is the kind of structural shift worth watching closely over the months ahead, not filing away as a one-off."
— TICGL Directorate of Economic Research and Policy
08 — Sources & Data NotesReferences, Data Sources and Limitations
TICGL Directorate of Economic Research and Policy analysis of the Bank of Tanzania's Monthly Economic Review, August 2026 edition (data through July 2026) — specifically Chart 2.6.1 (Government Domestic Debt Stock), Chart 2.6.2 (Issued Government Securities for Financing Purposes), Table 2.6.5 (Government Domestic Debt by Borrowing Instruments), and Table 2.6.6 (Government Domestic Debt by Creditor Category).
- Primary data: Bank of Tanzania, Monthly Economic Review, August 2026, covering data through July 2026.
- Unit conversion: All figures were converted from the Bank of Tanzania's original Billions-of-TZS presentation to Trillions of TZS (divided by 1,000) for readability, at the user's request. No other adjustment was made to the underlying figures.
- Method: Annual domestic debt stock (Chart 2.6.1), creditor category and instrument breakdowns (Tables 2.6.6 and 2.6.5) for July 2025, June 2026 and July 2026, and monthly Treasury bill/bond issuance (Chart 2.6.2) for the thirteen months July 2025 to July 2026.
- Known limitations: Creditor-category and instrument breakdowns are only published for the three most recent periods in each Monthly Economic Review, so a full monthly time series by creditor is not available from this source. Figures for July 2026 are provisional and subject to revision in subsequent monthly reviews.
- Related TICGL analysis: "Tanzania's Government Securities & Interbank Cash Market: What July 2026 Reveals" — read here; "Tanzania's Lending & Deposit Interest Rates: What July 2026 Reveals" — read here.
09 — Quick AnswersFrequently Asked Questions
How big is Tanzania's government domestic debt in 2026?
Tanzania's government domestic debt stock stood at TZS 39.47 trillion at the end of July 2026, up from TZS 39.33 trillion in June 2026 and TZS 35.35 trillion a year earlier in July 2025, according to the Bank of Tanzania.
Who are the largest holders of Tanzania's government domestic debt?
As of July 2026, commercial banks held the largest share at 29.0% (TZS 11.45 trillion), followed by pension funds at 26.6% (TZS 10.49 trillion), the Bank of Tanzania at 17.3% (TZS 6.82 trillion), and other holders including private companies, individuals and non-residents at 19.7% (TZS 7.79 trillion).
How fast has Tanzania's domestic debt grown?
Tanzania's government domestic debt stock has grown from TZS 15.11 trillion in July 2020 to TZS 39.47 trillion in July 2026 — an increase of about 161% over six years, though the pace of annual growth has slowed from over 30% in 2022 to roughly 12% in the year to July 2026.
What share of Tanzania's domestic debt is government securities versus overdraft?
Government securities (Treasury bills, Treasury bonds, government stocks and tax certificates) made up 90.0% of domestic debt stock in July 2026, up sharply from 84.7% in June, while non-securitized debt (mainly government overdraft) fell to 10.0% from 15.3%.
Why did the overdraft share of Tanzania's domestic debt fall sharply in July 2026?
The government issued TZS 0.68 trillion in new Treasury bills and bonds during July 2026, which — alongside routine debt service payments — reduced the government's non-securitized overdraft balance from TZS 6.01 trillion in June to TZS 3.94 trillion in July, shifting the debt mix further toward tradable securities.
Muhtasari kwa Kiswahili
Deni la Ndani la Serikali ya Tanzania kwa Kigezo cha Wadai, Julai 2026 — Deni la ndani la Serikali lilifikia TZS trilioni 39.47 mwishoni mwa Julai 2026, likiongezeka kidogo kutoka TZS trilioni 39.33 Juni 2026, na kutoka TZS trilioni 35.35 mwaka mmoja uliopita. Kwa jumla, deni hili limeongezeka kwa asilimia 161 tangu Julai 2020, likitoka TZS trilioni 15.11.
Matokeo makuu: Benki za biashara na mifuko ya pensheni kwa pamoja zinamiliki asilimia 55.6 ya deni lote la ndani — TZS trilioni 11.45 na TZS trilioni 10.49 mtawalia. Hatifungani za Serikali (Treasury bonds na bills) sasa zinachangia asilimia 90.0 ya deni lote, ongezeko kubwa kutoka asilimia 84.7 mwezi Juni, huku deni lisilo na hati (overdraft) likishuka kwa kasi kutoka TZS trilioni 6.01 hadi TZS trilioni 3.94 ndani ya mwezi mmoja. Benki Kuu ya Tanzania yenyewe ilipunguza umiliki wake wa deni hilo hadi TZS trilioni 6.82 kutoka TZS trilioni 7.20.
Hitimisho kuu ni kwamba deni la ndani la Serikali linaendelea kukua, lakini muundo wake umeboreka kuelekea hatifungani zenye uwazi zaidi wa bei badala ya mikopo ya muda mfupi (overdraft) — mabadiliko yanayohitaji kufuatiliwa kwa miezi ijayo ili kuthibitisha kama ni mwelekeo wa kudumu.
- Deni la ndani la Serikali: TZS trilioni 39.47 (Julai 2026)
- Wadai wakubwa: Benki za biashara (29.0%) na mifuko ya pensheni (26.6%)
- Hatifungani za Serikali: asilimia 90.0 ya deni lote
- Ukuaji tangu 2020: asilimia 161 (TZS trilioni 15.11 hadi 39.47)
Chanzo: Benki Kuu ya Tanzania, Monthly Economic Review, Agosti 2026. Uchambuzi: TICGL Directorate of Economic Research and Policy.