𝗧𝗮𝗻𝘇𝗮𝗻𝗶𝗮’𝘀 𝗽𝘂𝗯𝗹𝗶𝗰 companies accumulate debts amounting to USD 1.3 Billion

State-owned enterprises in Tanzania have built up a cumulative national debt which stands at a staggering 3.7 trillion/- in local currency.

Translating to USD 1.3 billion, the parastatals debt has been accumulated over a 12-month period during the 2023/24 financial year.

The debt is reported to be posing a fiscal risk to the government, at least according to the report by the nation’s Chief Auditor.

The Controller and Auditor General (CAG), Charles Kichere, said in his latest audit report that 66 public corporations are struggling with longstanding debts.

The four state entities, including the Tanzania Ports Authority (TPA), Tanzania Electric Supply Company (TANESCO), Tanzania Railways Corporation (TRC) and Air Tanzania Company Limited (ATCL), top the bill in accounting for a lion’s share of the debt.

In his audit report of state-owned enterprises (SOEs) released recently, the Controller and Auditor General (CAG), warned that the situation could lead to penalties, default interest payments, and erode the reputation of the heavily-indebted parastatals.

The government’s chief auditor said the piling debt is owed to both public and private creditors for provision of various goods and services.

CAG Kichere advised SOEs to address their cash-flow issues and come up with prudent debt management plans.

​Entities owing Shylock his pound of flesh

Here’s a list of Top 9 State-owned enterprises in Tanzania with the highest debts:

Tanzania Ports Authority (TPA) – TZS 1.02 trillion. It should also be noted that about 70 percent of Tanzania Port Authority’s debt is owed to the government, which has so far not responded to TPA’s request to write off the liability in order to improve its balance sheet.

Tanzania Electricity Supply Company (TANESCO) – TZS 1 trillion. On the other hand, 66 percent of TANESCO’s debt is owed to the government and public entities.

Tanzania Railways Corporation (TRC) – TZS 661.3 billion

Air Tanzania Company Limited (ATCL) – TZS 434.3 billion

Tanzania Telecommunications Company Limited (TTCL) – TZS 132.8 billion

Medical Supply Department (MSD) – TZS 93.7 billion

Tanzania Petroleum Company (TPC) – 68.8 billion

Dar-es-Salaam Water Supply Authority (DAWASA) – TZS 64 billion

STAMIGOLD which is a subsidiary of the State Mining Corporation – TZS 52 billion