TCDD conducted engagement with the Parliamentary Committee on Budget on April 6, 2022, in Dodoma. The key issues discussed during the engagement were: Tanzania Debt Sustainability.
The presentation from Mr. Abeid Mzee from the Ministry of Finance and Planning summarized that Tanzania’s debt remains sustainable in the medium to long-term. However, the analysis shows that the risk of debt distress increased from low to moderate due to extreme stress tests on exports in accordance with the 2021 DSA. To sustain debt, the government will continue to direct proceeds from commercial and concessional sources into projects that accelerate economic growth so as to boost exports and minimize the possibility of primary balance shocks.
Continuing to strengthen supervision of both financial institutions and state-owned enterprises with the view of minimizing risks associated with contingent liabilities. In addition to that, the government will take measures to address the factors that have led to the decline in debt carrying capacity as measured by the Composite Index (CL), including strengthening institutional and legal frameworks with a view to improving the Country Policy and Institutional Assessment (CPIA) rating.