Tanzania Outshines the Globe in Its Debt-to-GDP Ratio

Mwanza — The Executive Director of the Public-Private Partnership Center (PPPC), David Kafulila, said Tanzania has maintained a significantly lower debt-to-GDP ratio of 47 percent compared to over 90 percent globally and in Africa, which stands at over 67 percent.

According to Dr Kafulila, most governments around the world are currently facing challenges in meeting the expectations of their citizens through tax revenues alone.

He noted that this situation is reflected in global economic statistics that show a significant rise in government debts.

Speaking on April 16, 2025, in Mwanza during the National Public-Private Partnership (PPP) Forum and Dialogue, Kafulila revealed that as of November 2024, the global economy was valued at approximately USD 115 trillion, while the total debt of all governments around the world stood at 102 trillion US Dollars. Furthermore, total global debt–including that of governments, the private sector, and households–exceeded 315 tri/-US dollars. He explained that this indicates the world economy is essentially running on credit.

Kafulila further explained that despite ongoing discussions about the rising national debt, Tanzania is performing well when compared to both the African and global averages. He said the average debt-to-GDP ratio globally exceeds 90 percent, Africa stands at over 67 percent, while Tanzania maintains a significantly lower ratio of just 47 percent.

He emphasized that this demonstrates the success of the Sixth Phase Government under President Dr. Samia Suluhu Hassan in managing the economy and ensuring that borrowed funds are aligned with national development goals. Kafulila called on stakeholders to continue collaborating through the PPP model to accelerate development without placing an excessive burden on the government.