The government of Tanzania will spend 4.5 billion U.S. dollars on debt servicing during the financial year 2018/19, a senior official said on Monday.

Philip Mpango, the East African nation’s finance minister, told parliament in the capital Dodoma that the debt, measured by several sustainability indicators, was still “very sustainable” and that Tanzania still has a wide room for further borrowing.

He told the House that a debt sustainability analysis, which was conducted in November 2017, showed that the debt was sustainable for both the medium and long term periods.

“The ratio of government debt to Tanzania’s gross domestic product (GDP) stood at 34.4 percent as of June 2017 against a threshold of 56 percent,” said Mpango.

As for the foreign debt, Mpango said its ratio stands at 19.7 percent of the GDP against a threshold of 40 percent. Enditem


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