MWE Correspondent
Tanzania’s Minister for Finance, Dr. Mwigulu Nchemba, has addressed growing concerns over the size of the national debt, urging the public to shift focus from raw numbers to the development projects being financed through the loans.
Speaking during a press briefing in Dodoma on Tuesday, Dr. Nchemba stated that the government borrows funds specifically for development purposes, and that there is a high level of financial discipline ensuring the money is used as intended.
“People should not look at figures in isolation. They must look at what these funds have achieved on the ground — roads, hospitals, power plants, railways,” Dr. Nchemba said. “These are long-term investments aimed at transforming our economy.”
According to the minister, the loans have enabled the successful completion of major infrastructure projects, including the Standard Gauge Railway (SGR), rural electrification programs, and major expansions in health and education facilities.
Dr. Nchemba emphasized that Tanzania does not engage in uncontrolled borrowing, and that every loan taken is aligned with national development priorities. He added that the country remains within acceptable international thresholds for debt sustainability, as recognized by global institutions such as the International Monetary Fund (IMF) and the World Bank.
The minister also reassured the public that loan funds are subjected to strict auditing and oversight mechanisms to avoid misuse and ensure transparency.
Key strategic projects financed through loans include:
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The Standard Gauge Railway (SGR), connecting Dar es Salaam to inland regions and neighbouring countries.
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Expansion of power generation and distribution under the Rural Energy Agency programs.
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Construction of health centres, schools, and improved water infrastructure across various regions.
“These achievements show that borrowing has been purposeful, and not wasteful,” Dr. Nchemba added.
