Cairo. Recent data indicates that Africa’s external public debt has risen sharply.
It climbed from $208 billion in 2008 to $746 billion in 2023.
This rapid escalation is driven by infrastructure demands and commodity price shocks.
Pandemic-era borrowing also contributed to the rise. Bondholders now serve as the largest creditors.
They hold $186 billion in debt.
This shift reflects a heavy reliance on Eurobond markets.
These markets often carry higher interest rates and shorter maturities.
Multilateral lenders have also increased their footprint.
World Bank debt grew from $37 billion to $138 billion.
IMF credit expanded to $56 billion. Furthermore, Chinese bilateral loans rose from $7 billion to $62 billion.
This highlights China’s sustained role in the continental financing landscape.
Such figures raise concerns about economic stability across many African nations.
In contrast, Tanzania maintains a notably stable position.
The Controller and Auditor General (CAG) report for the 2024/25 financial year confirms that Tanzania’s debt remains sustainable.
As of 30 June 2025, the total national debt reached Sh110.05 trillion ($44.02 billion).
This represents a 13 per cent increase from the previous year.
External debt accounts for the bulk of this burden at Sh74.55 trillion ($29.82 billion).
Domestic debt stands at Sh35.5 trillion.
Tanzania’s debt metrics remain within safe international limits.
The present value of total public debt to GDP is 40.7 percent.
This is well below the 55 percent threshold for low-income countries.
Foreign debt represents 24.9 percent of GDP.
This is also below the 40 per cent threshold.
Currency depreciation added approximately Sh2 trillion to the debt stock.
However, domestic revenue collection hit 99.4 per cent of its target.
The government continues to focus borrowing on strategic infrastructure projects.
These include the Standard Gauge Railway and the Julius Nyerere Hydropower Project.
President Samia Suluhu Hassan has emphasised that maintaining this sustainability is vital.
While the continent at large faces a mounting crisis, Tanzania’s fiscal discipline provides a buffer.
This balanced approach ensures development continues without compromising future economic sovereignty.
