Joseph Isangura
Member of Parliament for Mwera (CCM), Zahor Mohamed Haji voiced his concern over the government’s frequent reliance on loans, arguing that this approach could lead to significant economic challenges in the future.
During the debate on Tanzania’s national debt, Haji highlighted the importance of careful financial planning and expressed his apprehension that continuous borrowing might undermine the nation’s economic independence.
Haji explained that while borrowing can sometimes be necessary to fund essential infrastructure and development projects, it is not a long-term solution and should not be viewed as a measure of success or national progress. “Continuous borrowing is not something to take pride in; rather, it should be a last resort,” he remarked, emphasizing that a heavy dependence on loans could place a strain on the country’s economic future and burden future generations.
He further elaborated on the risks associated with high levels of debt, cautioning that excessive borrowing without a sustainable strategy for repayment could lead to a cycle of financial dependency. This, he argued, could erode Tanzania’s fiscal sovereignty and hinder the government’s ability to provide essential services in key sectors such as health, education, and infrastructure. Haji pointed out that frequent borrowing, if not carefully managed, could result in reduced government expenditure on critical programs that directly impact Tanzanians’ quality of life.
Haji’s concerns come at a time when Tanzania is working on a range of ambitious infrastructure and social projects designed to spur economic growth. However, he argued that the government must prioritize the efficient and transparent use of any borrowed funds. He highlighted that it’s essential for these funds to be directed toward projects that will generate long-term economic returns, rather than projects that may lead to further financial strain.
The MP suggested that the government explore alternative funding mechanisms, such as public-private partnerships, foreign direct investment, and revenue-generating projects that do not depend solely on borrowing. He emphasized the need for a sustainable financial model that allows for growth while maintaining economic stability.
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Haji’s remarks also underscore the need for an inclusive economic strategy where future growth is supported by robust, self-sustaining revenue sources rather than an over-reliance on external loans. He urged fellow lawmakers to consider the long-term implications of each loan before approval, advocating for a debt-management policy that could limit borrowing to only the most essential cases.
The MPs are expected to further explore sustainable funding alternatives in future sessions, with a focus on safeguarding Tanzania’s economic future while balancing the needs of immediate development.
