Opposition party ACT Wazalendo has raised alarms over significant discrepancies in the national debt figures reported by the Zanzibar government compared to those from the Bank of Tanzania, highlighting concerns over transparency and accountability.
A report from the Bank of Tanzania revealed that Zanzibar’s national debt soared from Sh887 billion in June 2021 to Sh3.6 trillion by June 2024, marking an over 400 percent increase. This alarming rise represents an average annual debt growth rate of 59 percent, starkly contrasting with the region’s economic growth rate of only 6 percent during the same period, prompting serious questions about the sustainability of such borrowing practices.
Recently, President Mwinyi publicly stated that the national debt stands at only Sh1.2 trillion, contradicting the central bank’s findings. This mismatch has raised significant concerns within the opposition, which is demanding full accountability from the government regarding its financial practices.
“These conflicting figures are alarming and undermine the credibility of the government’s financial reports. The president’s claim of Sh1.2 trillion in national debt is at odds with the Bank of Tanzania’s report of over Sh3.6 trillion. This situation fosters distrust in the government’s management of public finances,” noted a spokesperson for ACT Wazalendo.
The opposition emphasized that while debt levels have escalated rapidly, a considerable portion of the borrowed funds has been allocated to large-scale infrastructure projects that have failed to deliver expected benefits to the populace. The party argues that these projects have become a financial burden, as their costs have surpassed promised benefits, leading to increased taxes, inflation, and diminished access to basic services for everyday citizens.
Reports from the Zanzibar Controller and Auditor General’s Office have revealed serious flaws in the management of these development projects, including instances of misappropriated funds.
ACT Wazalendo expressed concern that the government’s dependence on external loans, rather than investment in crucial sectors like agriculture, manufacturing, and fisheries, has created an unsustainable economic situation. They called for a detailed clarification of the national debt, including interest rates, the allocation of funds, and repayment strategies.
The party insists that the public deserves transparency and comprehensive answers about the management of national debt. “We require a clear explanation of how these debts are being utilized and why the citizens of Zanzibar are suffering from increased debt burdens. A new economic vision is necessary—one that prioritizes sustainable growth and the well-being of ordinary citizens instead of driving them further into financial hardship,” reiterated the spokesperson.
ACT Wazalendo urged Zanzibaris to critically assess the government’s economic policies and unify in opposition against what they describe as the ruling party’s failures in enhancing the economy. The party called for immediate reforms aimed at ensuring improved management of public resources and establishing a more transparent, accountable governance structure.
“Zanzibar deserves a leadership that values vision, transparency, and the welfare of its people. We remain committed to standing with the citizens of Zanzibar in advocating for their rights and ensuring that their resources are wisely managed,” the spokesperson concluded.
