Media Wire Express Correspondent
The Prime Minister of the United Republic of Tanzania, Kassim Majaliwa, has outlined the steps Tanzania is taking to address the debt burden, which has been a challenge for developing countries.
In an interview with Flora Nducha of the United Nations Kiswahili Service, on the sidelines of the United Nations General Assembly in New York, USA, Majaliwa discussed Tanzania’s efforts to ensure that this debt does not hinder the nation’s development.
Majaliwa acknowledged that developing countries, including Tanzania, face a significant debt burden due to loans from developed nations. He pointed out that, “Several countries have been unable to carry out their activities because a large portion of their funds is directed toward debt repayment,” while also adding that Tanzania is grappling with the same challenge.
To tackle this issue, the Prime Minister stated that Tanzania has begun reviewing its financial policies to ensure that development projects and essential needs such as infrastructure, healthcare, education, agriculture, and water are not compromised.
Read More: Majaliwa Urges UN Support for Developing Economies
“We generate domestic revenue, but it is still insufficient to provide all the services for our people, so we need to borrow,” Majaliwa said.
He further explained that the government’s approach is to manage domestic revenue and increase sources of income so that the country can pay off its debts and still have funds to support other development activities. He also added that the government is strengthening the management of domestic revenues to ensure that the collected funds are used for specified purposes, including debt repayment.
The Prime Minister continued to call on developed countries to consider offering loans with lower interest rates to developing nations, as the development needs are immense and these countries cannot avoid borrowing.
“We are urging major lending nations to reconsider the interest rates they charge, so developing countries can borrow, implement their development projects, and repay the loans with ease,” he said.
Majaliwa concluded by emphasizing that high-interest loans are oppressing developing countries, making it difficult for them to run their activities efficiently.
