ZANZIBAR: PRESIDENT Hussein Mwinyi has said that Zanzibar’s national debt is sustainable and that the isles is creditworthy, thanks to an arrangement that is in place to service the debt.
Dr Mwinyi assured the public in his remarks on Friday when opening a newly built bus terminal at Kijangwani-Kombawapya area in Zanzibar City.
He assured Zanzibaris that the government is allocating 10 million US dollars, equivalent to 300bn/-, per month to service the debt.
Dr Mwinyi said that Zanzibar’s current national debt stands at 1.2tri/- which is sustainable and manageable and it retains the capacity to borrow further because it has put in place a repayment system which can enable the debt to be cleared within two years.
He explained that while the government borrows for development projects, it has a special account that holds sufficient funds to repay the debt, which currently has a balance of 600bn/-.
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Mwinyi added that when he took over the office the national debt was standing at 800bn/-, but it has increased to 1.2trl/- after four years.
He dismissed as baseless claims by the opposition that Zanzibar’s national debt has been ballooning, saying the government’s debt remains sustainable.
“Claims by the opposition on the debt are fallacious and should be ignored. We are keenly borrowing to fund our development projects,” Dr Mwinyi said.
On New Year Day, Zanzibar’s First Vice-President Othman Masoud Othman, who is from ACT-Wazalendo, informed journalists that the Isles national debt is currently over 2.3trl/- and was skyrocketing (208 per cent increase) at an alarming rate, placing a burden to the people.
On government investments, President Mwinyi strongly condemned bureaucracy within government institutions that hinder investors seeking to invest in the country.
“This is my last warning to executives; bureaucracy has no room in my government. An issue that takes a week cannot delay up to two years. We have no time to waste. And to address this problem, I urged whoever faces unnecessary delays, to report directly to me,” Dr Mwinyi said.
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Commenting on the new bus terminal, he instructed Zanzibar Social Security Fund (ZSSF) to implement a special maintenance and cleanliness plan and create specific jobs for young people to provide those services.
The President revealed that the government is introducing a comprehensive transport plan that will modernise transportation and improve services across Zanzibar.
He informed the gathering that the plan includes the construction of modern bus terminals in different areas such as Chuini, Jumbi, Mwera, Mwanakwerekwe, as well as Kijangwani, Malindi and Mnazi Mmoja in urban areas, emphasising that by the end of this year, Zanzibar will begin using modern buses on the new road network.
On her part, Minister of State – President’s Office (Finance and Planning), Dr Saada Mkuya Salum, said that investment in various national projects boosts the country’s economic value, thanking Dr Mwinyi for being a visionary leader.
Ministry’s Permanent Secretary Dr Juma Malik Akil, said that Zanzibar’s economy relies on the services sector, particularly tourism and transportation, which account for 50 per cent and contribute to the growth of other economic sectors.
He highlighted that the planned modern transport system aims to connect all areas and villages in Zanzibar.
The ZSSF Executive Director, Mr Nassor Shaaban, explained that over 700bn/- has been injected into the market to fund different projects that help to strengthen the economy, while 250bn/- has been paid to retirees over the past four years during the eighth phase government, “Additionally, 15,000 retirees continue to receive monthly pensions.”
