TZ’s handling of economy wins global backing, clinches twin awards

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DAR ES SALAAM: TANZANIA’S prudent management of public debt has earned international recognition after the country won two prestigious awards for its performance in debt servicing and management.

Presenting the Ministry of Finance’s 2026/27 budget estimates in the National Assembly on Tuesday, Finance Minister Ambassador Khamis Mussa Omar said Tanzania emerged as the overall winner of the Commonwealth Public Debt Management Award and also received the award for Best Government Debt Management Office in Africa.

The recognition follows the government’s success in meeting its debt obligations, with 68.5 per cent of maturing debt for the 2025/26 financial year settled by April 2026.

“As of April 2026, a total of 9.74tri/- equivalent to 68.5 per cent of the annual target had been received and disbursed to service maturing debt,” Amb Omar told the House.

Of the amount paid, 4.45tri/- was used to service external debt, while 5.29tri/- went towards domestic debt obligations. For the entire 2025/26 financial year, the government had planned to settle maturing debt amounting to 14.22tri/-.

According to the minister, Tanzania’s consistent fulfilment of its financial obligations has strengthened investor confidence and enhanced the country’s standing in regional and international financial markets.

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The performance also contributed to the decision by global credit rating agency Moody’s Ratings to affirm Tanzania’s B1 rating with a stable outlook.

The latest Debt Sustainability Analysis (DSA) shows that the country’s public debt stood at 41.8 billion US dollars at the end of June 2025, compared with 36.7 billion US dollars recorded a year earlier, representing an increase of 13.9 per cent.

The debt-to-GDP ratio rose from 45.4 per cent in June 2024 to 49.0 per cent in June 2025 and was estimated at 49.6 per cent by February 2026. Amb Omar said that despite the increase, Tanzania’s debt remains within internationally accepted sustainability.