Dr. Mwigulu advises developed countries to provide low-interest loans.

The Minister of Finance, Dr. Mwigulu Lameck Nchemba, has urged developed nations to lower loan costs and extend repayment periods for debts, enabling developing countries, particularly in Africa, to implement development projects that will stimulate economic growth and improve the overall quality of life for their citizens.

Speaking in New York during the United Nations Economic and Social Council (ECOSOC) Forum on Financing for Development Follow-Up for 2025, Dr. Nchemba emphasized the need for changes in lending practices to accurately reflect the repayment capabilities of developing nations. 

He advocated for increased use of blended finance, expanded risk guarantees from Multilateral Development Banks (MDBs), and the implementation of debt transparency initiatives to help reduce perceived risk costs. 

While acknowledging the efforts of countries and lending institutions to enhance access to affordable loans, he pointed out that many developing nations, including Tanzania, face challenges due to high borrowing costs and debt repayments that strain their budgets.

 Dr. Nchemba proposed three key areas for improvement: ensuring access to affordable financing, accelerating debt repayment restructuring, and supporting developing countries in addressing ” climate change” challenges. 

He also highlighted the critical role of the private sector in fostering economic growth, stating that private investment is essential for achieving sustainable development goals and building resilient, inclusive economies that leave no one behind.

He added that ,focused on strengthening investment platforms that connect opportunities with international capital, aiming to create positive impacts while ensuring that no one is left behind. Tanzania is ready to collaborate with all partners to unlock private investment for inclusive and sustainable development. 

He emphasized that affordable loans will significantly benefit poorer countries, particularly in Africa, as they will facilitate timely loan repayments without delays.