Zanzibar’s National Debt Skyrockets: Opposition Demands Financial Transparency
Zanzibar’s national debt has dramatically surged from Sh887 billion in June 2021 to Sh3.6 trillion by June 2024, representing an alarming 400 percent increase. This exponential growth, averaging 59 percent annually, stands in stark contrast to the region’s modest economic growth of just 6 percent per year.
A significant discrepancy has emerged between official financial reports, with conflicting figures raising serious concerns about fiscal transparency. While the central bank reports a debt of Sh3.6 trillion, government leadership claims the figure is substantially lower at Sh1.2 trillion.
The opposition has highlighted critical issues surrounding these massive borrowings, emphasizing that substantial infrastructure investments have failed to deliver proportionate economic benefits. They argue that the escalating debt burden is disproportionately affecting ordinary citizens through increased taxation, rising inflation, and reduced access to essential services.
Key concerns include:
– Exponential debt growth outpacing economic development
– Potential misallocation of borrowed funds
– Lack of transparent financial reporting
– Questionable infrastructure project implementation
The opposition is calling for comprehensive financial disclosure, demanding detailed explanations about loan interest rates, fund allocations, and repayment strategies. They advocate for a more sustainable economic approach that prioritizes critical sectors like agriculture, manufacturing, and fisheries.
“Zanzibar deserves leadership committed to transparent financial management and citizen welfare,” the opposition statement emphasized, urging immediate economic reforms and greater accountability in public resource management.
As the debate intensifies, the government faces mounting pressure to provide clear, comprehensive explanations about the national debt and its economic strategy.
