Government Refutes Bankruptcy Claims

Finance Minister Dr. Mwigulu Nchemba has firmly denied recent online claims suggesting that the Tanzanian government is bankrupt and unable to pay its debts.

The rumors, which spread via social media, particularly from the Tanzania Leaks account on the platform X (formerly Twitter) on July 18, 2024, implied that financial difficulties were causing delays in the Julius Nyerere Hydropower Project and disputes with Yapi Merkezi, the company constructing the Standard Gauge Railway (SGR).

Addressing these allegations, Dr. Nchemba used various social media platforms to clarify the government’s financial status, urging Tanzanians to disregard the false reports. He emphasized that these claims are baseless and are propagated by individuals with malicious intent towards the government.

The online report also included an image of a smartphone message, allegedly from a Ministry of Finance official, claiming widespread project stagnation and contractor payment delays, leading to workforce reductions. Dr. Nchemba dismissed these assertions as fabrications, reassuring the public of the government’s financial stability and ongoing commitment to national development projects.

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In reality, the Tanzanian government has presented a robust budget for the 2024/25 fiscal year, allocating significant funds to public debt repayment, salaries, and government operations. The budget reflects a strategic response to both global economic conditions and internal revenue enhancements, projecting GDP growth from 5.2% in 2023 to 5.8% in 2024

This financial plan underscores the government’s dedication to maintaining economic stability and funding critical infrastructure projects like the SGR and the Julius Nyerere Hydropower Project.

Furthermore, the budget earmarks TZS 15.325 trillion for development programs, including education and higher education loans, which highlights the government’s priority on human capital development and long-term economic growth. Dr. Nchemba pointed out that the government’s financial strategies are in place to ensure the timely completion of key projects and the smooth operation of public services.

Dr. Nchemba also emphasized the importance of maintaining public trust in the government’s economic management. He noted that spreading false information not only undermines confidence but also hampers the progress of ongoing projects that are crucial for the country’s development. The government remains committed to transparency and accountability, ensuring that all financial transactions and project developments are conducted with the utmost integrity.

The Ministry of Finance has also taken steps to counter misinformation by providing regular updates on the status of major projects and financial health through official channels. This proactive approach aims to keep the public well-informed and prevent the spread of rumors that could cause unnecessary panic.