Tanzania’s national debt has risen by $3.9 billion in a year, according to a Bank of Tanzania July report.

The national debt increased by $3.9 billion in a single year as the government invested in infrastructure and enhanced social services.

According to the Bank of Tanzania’s (BoT) monthly economic assessment, the debt was at $33.7 billion at the end of July this year, up to $3.9 billion from July 2020.

The debt stock comprises both public and private sector debt. External debt made up 83% of the total national debt.

External debt, which includes both public and private sector debt, was at $25.96 billion at the end of July 2021, accounting for 77% of the total national debt.

The debt stock rose by $436.8 million months over a month and by $2.76 billion years over the year in July 2020.

According to the BoT, “the composition of foreign debt by borrower category remained basically unchanged,” with central government debt accounting for 77.7 percent.

Tanzania’s central bank said that transportation and telecommunications activities accounted for more than a quarter of outstanding foreign debt related to ongoing large infrastructure projects, followed by social welfare and education, energy and mining, and so on.

The government’s domestic debt was at Sh17.8 trillion at the end of July 2021, a decline of Sh1.12 trillion from June 2021, and an increase of Sh2.7 trillion from the same period in 2020.

Long-term assets, such as Treasury bonds and equities, continued to dominate the composition of domestic debt, accounting for 84.7 percent of the stock.

External debt service payments were $25.2 million, of which $21 million was principal.