Mwanza – David Kafulila, executive director of the Public-Private Partnership Centre (PPPC), said Tanzania has a significantly lower debt-to-GDP ratio of 47% compared to over 90%, more than 67% worldwide and in Africa.
According to Dr. Kafurla, most governments around the world now face challenges in meeting citizen expectations with tax revenue alone.
He noted that the situation is reflected in global economic statistics showing a significant increase in government debt.
Speaking at Mwanza on April 16, 2025 during a dialogue with the National Public-Private Partnership (PPP) Forum, Kahlula revealed that as of November 2024, the global economy was valued at around USD 115 trillion, with the total debt of all governments worldwide at USD 102 trillion. Additionally, the total global debt obligations, including government, private sector and households, earned 315 TRI/-US dollars. He explained that this indicates that the global economy is essentially operating on credit.
Kafulila further explained that despite the continued debate on rising national debt, Tanzania is working well compared to the averages in both Africa and globally. He said that the average debt-GDP ratio is above 90% worldwide, with Africa exceeding 67%, while Tanzania is significantly lower at just 47%.
He emphasized that this demonstrates the success of the sixth stage government in managing the economy and ensuring that borrowed funds are in line with the National Development Goals. Kafulila has called on stakeholders to continue working together through the PPP model to accelerate development without putting an undue burden on the government.
