Zanzibar’s President Defends National Debt and Development Strategy Amid Opposition Criticism
In a robust response to recent accusations of financial mismanagement, Zanzibar’s President Dr. Hussein Ali Mwinyi has firmly defended the government’s borrowing and development approach during the inauguration of the modern Kijangwani bus station.
Addressing claims made by opposition leadership about rising national debt, President Mwinyi clarified that the government’s borrowing is strategic and purposeful. He contested allegations of a 208 percent debt increase, stating the actual increase over four years was closer to 50 percent, rising from Sh800 billion to Sh1.2 trillion.
The President highlighted a dedicated debt repayment account containing $250 million, with an additional $10 million deposited monthly, ensuring sustainable financial management. He challenged critics by pointing out that developed nations regularly borrow for infrastructure development.
Key development initiatives outlined include:
– Zanzibar Social Security Fund’s significant investments
– Sh250 billion in benefits paid
– Sh300 billion invested in development projects
– Plans for modernizing public transportation with electric buses, trains, and water taxis
Finance Minister Dr. Saada Mkuya emphasized that government loans are crucial for infrastructure building and economic growth. The service sector, particularly tourism and transport, continues to be a significant economic driver, accounting for 51 percent of the economy in 2019.
President Mwinyi also addressed bureaucratic challenges, urging swift decision-making and promising direct intervention in project delays. “We cannot spend one or two years discussing the same issue,” he stated, demonstrating a commitment to accelerated development.
The government remains confident in its financial strategies, positioning Zanzibar for continued economic expansion and infrastructure improvement.
