ACT Wazalendo highlights discrepancies in Z’bar’s national debt data

Zanzibar. Opposition party, ACT Wazalendo, has raised concerns over the significant discrepancies in the national debt figures presented by the Zanzibar government and those reported by the Bank of Tanzania, underscoring a lack of transparency and accountability.

According to a report by the Bank of Tanzania released in December 2024, Zanzibar’s national debt has surged from Sh887 billion in June 2021 to Sh3.6 trillion by June 2024 — an increase of over 400 percent.

This rapid rise in debt, averaging an annual growth rate of 59 percent, the party says sharply contrasts with Zanzibar’s economic growth rate of only 6 percent per year over the same period, raising questions about the sustainability of such borrowing.

However, a recent public statement by President Mwinyi sharply contradicted these figures, with the president claiming that the national debt stood at only Sh1.2 trillion.

This substantial discrepancy between the President’s statements and the data provided by the central bank has raised alarms within the opposition party, which is demanding full transparency from the government regarding its financial management.

“These conflicting figures are troubling and raise serious concerns about the credibility of the government’s financial reports. The president’s claim of Sh1.2 trillion in national debt contradicts the Bank of Tanzania’s report, which states the debt is over Sh3.6 trillion. This discrepancy undermines trust in the government’s handling of public finances,” said Prof Omar Fakih Hamad, ACT Wazalendo’s spokesperson for finance and economy.

ACT Wazalendo pointed out that while the debt has increased exponentially, much of the borrowed funds have been directed toward large-scale infrastructure projects, many of which have failed to deliver tangible benefits for the people.

The opposition party argued that these projects have become an economic burden, with their costs far exceeding the benefits promised, leaving ordinary citizens to bear the brunt of the rising debt through increased taxes, inflation, and reduced access to basic services.

According to Prof Hamad, reports from the Zanzibar Controller and Auditor General’s Office (CAG) have revealed significant flaws in the implementation of these development projects, including cases of misused borrowed funds.

The party expressed concern that the government’s reliance on external loans, instead of investing in sectors like agriculture, manufacturing, and fisheries, has created an unsustainable economic cycle.

The opposition party has called on the Zanzibar government to clarify the full details of the national debt, including the interest rates on loans, the allocation of the borrowed funds, and the repayment strategy.

ACT Wazalendo insists that the public has a right to transparency and answers regarding how the national debt is being managed.

“We need a clear explanation of how these debts are being used. Why are the people of Zanzibar bearing the brunt of rising debt? We need a new economic vision that prioritizes sustainable growth and the welfare of ordinary citizens, rather than pushing them deeper into financial hardship,” Prof. Hamad said.

ACT Wazalendo further urged Zanzibaris to question the government’s economic policies and unite in opposing what they describe as the CCM government’s failure to improve the economy. The party called for urgent reforms that would ensure better management of public resources and create a more transparent and accountable government.

“Zanzibar deserves a leadership with vision, transparency, and a commitment to the well-being of its people. We will continue to stand with the citizens of Zanzibar in fighting for their rights and ensuring that their resources are not squandered,” Prof Hamad concluded.