(Bloomberg) —
Tanzania’s national debt climbed by almost 20% last year as the East African nation ramped up borrowing to fund its infrastructure projects.
Public debt increased by $6.1 billion to $37.1 billion in 2021, the Bank of Tanzania said in a statement on its website.
Transport and telecommunication activities accounted for the biggest share of external debt, according to the report. Social welfare and education, and energy and mining followed.
Tanzania has increased public investment in rail links, roads, ports and power plants as it looks to develop a regional trade and manufacturing hub. The government plans to increase spending by 7.4% in 2022-23, while keeping the budget deficit below 3% of gross domestic product.
The nation’s earnings from gold exports, its biggest source of foreign currency, fell 7.2% to $2.7 billion last year. Other foreign earnings, however, climbed; exports of manufactured goods such as sisal and sisal products jumped 33.5% to $1.2 billion, while travel receipts almost doubled to $1.4 billion as international tourist arrivals rebounded.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
