Zanzibar’s President, Dr. Hussein Ali Mwinyi, recently addressed the nation’s debt situation, offering a detailed and optimistic perspective on its management and repayment strategy.
At the inauguration of the Kijangwani Bus Terminal, a project developed by the Zanzibar Social Security Fund (ZSSF), he reassured citizens that the government is effectively managing its obligations.
With an annual allocation of TZS 300 billion for debt repayment and a dedicated account holding TZS 600 billion, Dr. Mwinyi emphasized that the current debt level of TZS 1.2 trillion is not only manageable but also strategically sustainable.
The president explained that the debt, which stood at TZS 800 billion when his administration assumed office, has increased to TZS 1.2 trillion over the past four years.
He attributed this rise to necessary borrowing for developmental projects aimed at modernizing the country and boosting long-term economic growth.
Dr. Mwinyi was firm in his assertion that the government’s borrowing is undertaken with transparency and responsibility, ensuring that funds are directed toward impactful projects that enhance the nation’s prospects.
In response to opposition claims that Zanzibar’s debt has surged to TZS 2.8 trillion, the president categorically dismissed these allegations as unfounded political propaganda.
He stressed the importance of accurate information in fostering public trust and highlighted the government’s commitment to keeping citizens informed about fiscal matters.
By directly addressing these concerns, Dr. Mwinyi sought to strengthen confidence in the administration’s ability to manage the economy.
The Kijangwani Bus Terminal, where Dr. Mwinyi made his remarks, stands as a testament to the government’s focus on infrastructure development. Built by ZSSF, the terminal is part of broader efforts to modernize Zanzibar’s transport system.
The president called on ZSSF to establish dedicated maintenance and cleaning programs for the facility while creating employment opportunities for youth in service provision.
Additionally, he unveiled plans to construct similar modern terminals in other key areas such as Chuini, Jumbi, and Mwanakwerekwe.
A key highlight of Dr. Mwinyi’s address was the announcement of the impending introduction of electric buses, expected to begin operations before the end of the year.
This move underscores the administration’s commitment to sustainability and aligns with global efforts to transition to cleaner energy solutions. By prioritizing environmentally friendly initiatives, the government aims to position Zanzibar as a forward-looking and innovative economy.
Dr. Mwinyi’s assurance that the government can repay the current debt within two years reflects a bold yet realistic approach.
This plan is anchored in disciplined fiscal management, efficient revenue collection, and strategic economic reforms.
However, achieving this ambitious target will require resilience in the face of external economic challenges and a consistent focus on growth-oriented policies.
The president’s remarks painted a picture of a government balancing immediate fiscal responsibilities with long-term development goals.
By prioritizing infrastructure, addressing misinformation, and laying the groundwork for sustainable innovations, Zanzibar is poised to navigate its debt challenges effectively.
This approach not only secures the country’s financial stability but also sets the stage for a more prosperous and resilient future.