Unguja. President Dr. Hussein Ali Mwinyi of Zanzibar has firmly addressed allegations made by opposition leader Othman Masoud Othman concerning corruption and the nation’s burgeoning national debt, stating that his administration is committed to transparent borrowing for developmental initiatives.
During the inauguration of the modern Kijangwani bus station on January 3, 2025, President Mwinyi articulated his response to Othman’s claims, reiterating that he will not be deterred by unfounded criticisms aimed at undermining his government’s development agenda.
Othman, who announced his candidacy for the upcoming presidential elections at a press conference in Unguja on January 1, 2025, raised serious concerns about corruption and the significant rise in international debt repayment challenges.
According to Bank of Tanzania figures, national debt surged 208 percent from 2020 to 2023, climbing from Sh887 billion to Sh2.397 trillion. Othman pointed out that this increase translates to approximately Sh119,850 owed by each Zanzibari citizen, citing a lack of clarity regarding the use of borrowed funds.
In response, President Mwinyi emphasized that the government’s borrowing is strictly for legitimate development projects, dismissing the opposition’s claims as misleading. “I want to tell you publicly that I am not shaken; I have never wavered, and I will not waver. What you are saying is false,” he stated.
He clarified that upon taking office, the national debt was Sh800 billion, and within four years, it had increased to Sh1.2 trillion, reflecting a 50 percent rise rather than the exaggerated 208 percent reported.
Additionally, Mwinyi addressed the claim that each Zanzibari owes Sh119,000, explaining that there is a dedicated account, currently holding $250 million (nearly Sh600 billion), specifically for debt repayment. He noted that this account is bolstered with monthly deposits of $10 million, ensuring that the government can manage its debts while continuing to fund development projects.
“What is there to fear about borrowing for development projects?” he questioned, citing that larger nations like the US, UK, and France manage substantial debts while maintaining their economic stability.
Zanzibar’s Development Plans and Public Transport Initiatives
President Mwinyi highlighted the Zanzibar Social Security Fund (ZSSF), which has distributed Sh250 billion in benefits and invested Sh300 billion in development projects in the last four years. He commended the fund’s performance, stating, “When you hear that a fund is performing well, you should have such statistics. In benefits and development, they are doing well.”
The President also outlined his vision for enhancing public transport in Zanzibar, stressing the necessity for modern bus stations. He envisions a future with electric buses, trains, and water taxis to foster a sustainable transportation system. “City vehicles must be suitable for the city,” he remarked, emphasizing that the Kijangwani bus station is just the beginning of a series of improvements.
Addressing bureaucracy, President Mwinyi acknowledged its impact on development, urging that any issues causing delays be brought directly to his attention. “We cannot spend one or two years discussing the same issue,” he insisted.
The Minister of Finance and Planning, Dr. Saada Mkuya, also defended the government’s borrowing, asserting that it is essential for building infrastructure and enhancing economic value. She noted the ongoing growth of Zanzibar’s economy, primarily driven by the service sector, including tourism and transport, which has significantly boosted other sectors such as agriculture.
The Permanent Secretary of the Ministry of Finance and Planning, Dr. Juma Malik Akil, supported this claim, indicating that the service sector accounted for 51 percent of the economy in 2019 and is expected to see continued growth in tourism, transport, and agriculture.
