Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Tanzania's National Debt Trends: External Debt Down 2% in a Month, Domestic Debt Surges 15% in a Year
November 7, 2023  
External Debt: Domestic Debt: Total Debts: The decrease in the total debt in the 1-month period is driven by the reduction in external debt, while domestic debt continues to grow. It's important for Tanzania's government to manage its debt levels carefully to ensure sustainable economic growth and stability: External Debt: Tanzania's external debt decreased by […]

External Debt:

  • On 21st September, it was 63,705,462.00 million of the currency.
  • In August 2023, it increased to 66,783,625.00 million of the currency.
  • By September 2023, it decreased to 65,120,471.00 million of the currency.
  • In the 1-month period from August to September, it decreased by 2%.
  • In the 1-year period from September (of the previous year) to September, it increased by 2%.

Domestic Debt:

  • On 21st September, it was 25,542,800.00 million of the currency.
  • In August 2023, it increased to 29,226,300.00 million of the currency.
  • By September 2023, it further increased to 29,449,500.00 million of the currency.
  • In the 1-month period from August to September, it increased by 1%.
  • In the 1-year period from September (of the previous year) to September, it increased by 15%.

Total Debts:

  • On 21st September, the total debt was 89,248,262.00 million of the currency.
  • In August 2023, it increased to 96,009,925.00 million of the currency.
  • By September 2023, it decreased to 94,569,971.00 million of the currency.
  • In the 1-month period from August to September, the total debt decreased by 1%.
  • In the 1-year period from September (of the previous year) to September, the total debt increased by 6%.

The decrease in the total debt in the 1-month period is driven by the reduction in external debt, while domestic debt continues to grow. It's important for Tanzania's government to manage its debt levels carefully to ensure sustainable economic growth and stability:

External Debt:

Tanzania's external debt decreased by 2% in one month but increased by 2% over the past year.

Domestic Debt:

Domestic debt increased by 1% in one month and by a significant 15% over the past year.

Total Debts:

The total national debt decreased by 1% in one month but increased by 6% over the past year.

Tanzania's national debt provides some insights into the country's economic situation:

  • External Debt: The 2% decrease in external debt over one month shows that Tanzania has been able to reduce its reliance on external borrowing during that period. However, the 2% increase in external debt over the past year indicates that, despite the recent decrease, Tanzania's external debt has been growing over a longer time frame.
  • Domestic Debt: The 1% increase in domestic debt in just one month may reflect increased government borrowing from domestic sources. The significant 15% increase in domestic debt over the past year shows that the government has been actively borrowing from domestic markets to fund its activities.
  • Total Debts: The 1% decrease in total national debt in one month is primarily due to the reduction in external debt. However, the total debt has still increased by 6% over the past year, reflecting the country's overall borrowing and debt accumulation.

The management of national debt is a critical aspect of economic policy, and Tanzania's government may have specific reasons for its borrowing and debt management strategies. The sustainability of this debt and its impact on the economy will depend on a variety of factors, including the terms of borrowing, economic growth, and the ability to service the debt without causing fiscal stress.:

  • The government's decision to reduce external debt over a one-month period could be a strategy to manage its debt burden and reduce reliance on foreign borrowing.
  • The increase in domestic debt may indicate that the government is using domestic sources to finance its budget and development projects.
  • The overall increase in the total national debt over the past year shows that the government has been actively borrowing to fund its programs and infrastructure projects.

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