Zanzibar debt stands at 1.187 tri/-

ZANZIBAR: ZANZIBAR’S total debt currently stands at 1.187 trillion shillings; the House of Representatives was informed yesterday.

Deputy Minister of State in the President’s Office for Finance and Planning, Juma Makungu Juma, addressed concerns regarding the impact of the shilling’s depreciation on Zanzibar’s debt portfolio, noting that the islands primarily take loans in local currency.

Responding to a question from Wawi legislator Bakar Hamad Bakar about the effects of the shilling’s depreciation against the dollar, the deputy minister stated that Zanzibar is not significantly impacted.

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He explained, “We don’t borrow much in foreign currency; loans from the union government are repaid by the union government.”

Furthermore, Juma assured the House that the government allocates six million US dollars monthly for loan repayments, emphasising that debt management is not a critical issue for Zanzibar due to well-established repayment strategies.