Category: The Citizen

Few national investments shape a country’s future more profoundly than education. Tanzania has recognised this reality for decades, expanding access to schooling, investing in classrooms and teachers, and ensuring that millions more children have the opportunity to learn.

Yet as education systems around the world are discovering, access alone is no longer enough. The next challenge is ensuring that children acquire the foundational skills they need early enough to succeed throughout their lives.

A child may spend the day in school, complete assignments and move from one grade to the next, yet still struggle to read with understanding. The lesson may have been taught, but learning does not always happen the first time a concept is introduced. Many children require repetition, reinforcement and opportunities to encounter ideas in different ways before they truly take hold.

This matters because early learning is not simply an education issue; it is an economic one. Every future doctor, engineer, entrepreneur, technician, farmer, teacher and public servant begins with the same foundational skills: reading, counting, communicating, solving problems and understanding the world around them. When these foundations are weak, the consequences appear later in productivity, employment, innovation and national competitiveness.

Global evidence increasingly reinforces this connection. The World Bank’s 2026 Human Capital review reported declines in health, education or workplace learning outcomes in 86 of 129 low- and middle-income countries between 2010 and 2025. The same analysis estimated that children born today in those countries could earn 51 percent more over their lifetimes if national human-capital performance matched that of the strongest-performing peers at similar income levels. At the same time, global education monitoring data continues to show that six in ten children do not achieve minimum proficiency in reading and mathematics by the end of primary school.

For Tanzania, these findings offer both a warning and an opportunity. The country’s ambitions for industrialisation, economic growth and job creation will depend on the quality of learning taking place today in homes, classrooms and communities across the nation.

Schools must remain at the centre of that effort. Strong teachers, quality materials, effective assessment systems and sustained public investment will always be essential. However, it is increasingly clear that classroom hours alone cannot carry every child to success.

Many families want to support learning but face practical constraints. Some cannot afford private tuition. Others may not have books readily available at home. In some communities, access to digital learning remains limited. Yet even where resources differ, most households have access to some form of media, whether through radio, television or a shared mobile phone.

This raises an important question: how can learning continue after the school day ends?

The answer does not require replacing schools or expecting parents to become teachers. Rather, it requires finding simple ways to reinforce learning through tools families already use.

Across Tanzania and other African countries, educational media is increasingly being used to fill this role. Programmes delivered through television, radio and digital platforms provide children with additional opportunities to practise literacy, numeracy, problem-solving and social-emotional skills beyond the classroom. Rather than introducing entirely new concepts, they often reinforce what children are already learning in school.

One example is Ubongo, the Tanzania-founded educational media organisation whose content reaches millions of children across Sub-Saharan Africa through free-to-air television, radio, digital platforms and community partnerships. Its model reflects a broader recognition that learning does not stop when children leave school grounds. Instead, songs, stories and familiar characters can help children revisit ideas in ways that feel engaging rather than intimidating.

The Tanzanian context offers a particularly powerful advantage in this regard. Unlike many countries that operate across numerous instructional languages, Tanzania benefits from the widespread use of Kiswahili. The language connects homes, schools, communities and public life in a way that creates continuity for learners.

When children encounter educational content in the language they use every day, they are able to focus their energy on understanding ideas rather than translating unfamiliar words. Concepts become more accessible, confidence grows and learning feels more relevant to their daily lives.

Programmes such as Akili and Me, Ubongo Kids and Akili Academy have demonstrated how songs, stories and relatable characters can support foundational learning in literacy, numeracy, science, school readiness and emotional development. Children may experience the content as entertainment, but repeated exposure helps reinforce important skills long after the classroom lesson has ended.

At the same time, educational media should not be viewed as a substitute for schools. No television programme can replace a skilled teacher. No radio lesson can compensate for inadequate learning materials. No mobile phone can solve systemic challenges facing education systems. Their value lies elsewhere: providing children with another opportunity to practise, remember and understand.

The most effective education systems are rarely built around a single intervention. They are built around ecosystems that connect schools, families, communities and learning resources around a shared goal. Each part reinforces the others.

As Tanzania continues investing in education, this broader understanding of learning will become increasingly important. What happens after the school bell rings may be just as significant as what happens before it.

The country’s future will undoubtedly require stronger schools, better resources and continued investment in teachers. It will also require making better use of the hours children spend outside the classroom.

A child singing a counting song in Kiswahili at home may appear to be playing. Yet in that simple moment, learning is continuing. In a country trying to turn schooling into learning, it may be the second lesson the child needed.

Dar es Salaam. Four Chinese nationals have been arraigned before the Ilala District Court, facing three counts including kidnapping with intent to cause harm and money laundering involving Sh313 million.

The accused are mining operator Deng Anqing (50), two agricultural researchers Fan Hua (53) and Zhang Jianjun (51), and mining operator Deng Qiang (40).

They were brought before the court on Thursday, June 18, 2026, and charged in Economic Case No. 13513 of 2026 by Senior State Attorney Dhamili Masinde, assisted by Judith Kyamba, before Resident Magistrate Herieth Mwailolo.

Before the charges were read, Magistrate Mwailolo informed the accused that they were not required to respond at that stage, as the court lacked jurisdiction to hear economic offences without special authorisation.

She further noted that the money laundering charge was not bailable under the law, meaning the accused would remain in custody pending completion of investigations.

After the directions, State Attorney Kyamba proceeded to read the charges.

The prosecution alleged that the accused face three counts: leading organised crime, kidnapping with intent to cause harm, and money laundering.

On the first count, leading organised crime, the prosecution alleged that between April and May 2026, within Dar es Salaam Region, the accused jointly operated a criminal network engaged in kidnapping activities aimed at inflicting harm and obtaining illegal financial gain.

They are alleged to have obtained Sh130 million and US$70,000 (equivalent to Sh183,540,000), belonging to Weiyi Chen.

“The accused are charged under paragraph 4(1) of the First Schedule, read together with Sections 57(1) and 19(2) of the Economic and Organised Crime Control Act, Cap. 200 (Revised Edition 2023),” the prosecutor told the court.

On the second count, kidnapping with intent to cause harm, the prosecution alleged that on May 14, 2026, at the PSSSF Twin Towers building in Ilala District, the accused abducted a victim with intent to cause harm, contrary to Section 250 of the Penal Code, Cap. 16 (Revised Edition 2023).

On the third count, money laundering, the prosecution alleged that on May 15, 2026, at Zhe Jiang restaurant in Kinondoni District, the accused jointly acquired Sh130 million and US$70,000 (equivalent to Sh183 million), knowing or having reason to believe that the funds were proceeds of crime.

The funds were allegedly proceeds of the predicate offence of kidnapping with intent to cause harm, contrary to Sections 12(1)(d) and 13(1)(a) of the Anti-Money Laundering Act, Cap. 423 (Revised Edition 2023), read together with Paragraph 22 of the First Schedule and Sections 57(1) and 19(2) of the Economic and Organised Crime Control Act, Cap. 200.

The accused, assisted by a Chinese interpreter identified as Olivia, were not allowed to enter pleas as the court does not have jurisdiction to hear economic offences.

The prosecution informed the court that investigations were incomplete and requested another date for mention.

Magistrate Mwailolo adjourned the case to July 2, 2026, for mention, and the accused were remanded in custody.

For centuries, communities along Africa’s eastern coast have understood what today’s global policymakers are only now beginning to grasp: the ocean is more than just a vast space; it is the veritable lifeblood of economies, livelihoods and cultures.

So many African nations are built around the movement of people, goods and ideas across the Indian Ocean. If that was true then, it is even truer today.

Indeed, today, Africa’s ocean economy is at a turning point. Fisheries and aquaculture already contribute an estimated $24 billion annually to the continent’s economy with demand for fish expected to rise sharply in the lead up to 2030. More broadly, Africa’s blue economy is estimated to be worth some $300 billion.

Yet, despite its central role in societal development and economic prosperity, much of what happens on the global ocean still takes place beyond public view. A 2024 study led by Global Fishing Watch and published in Nature found that roughly 75 percent of industrial fishing activity does not appear in public tracking systems.

That lack of visibility carries a cost.

Off the African coast, illegal, unreported and unregulated fishing continues to drain value from the continent’s waters, undermine legitimate fishers and weaken the ability of governments to manage marine resources effectively. In parts of the continent, the scale of the problem is staggering: nearly 40 percent of fish are estimated to be caught illegally.

This is not only an environmental challenge. It is an economic challenge, a food security challenge and a governance challenge as well. And as global leaders in government and civil society gather this week in Mombasa, Kenya, for the 11th Our Ocean Conference, the question they must answer is no longer whether the ocean matters but whether countries have the information they need to govern and preserve it.

At Global Fishing Watch, we believe the answer begins with transparency. Transparency means knowing who owns the vessels, where they fish, what they are authorized to do and whether they are following the rules. It means making basic information about vessel activity and ownership accessible to the institutions and communities affected by decisions at sea.

Vessel tracking is the operational foundation of this effort. Systems such as the automatic identification system (AIS) and vessel monitoring system (VMS) show where vessels are operating, how they move and whether their behavior raises any concerns. When combined with satellite imagery and advanced analytics, they create a more complete picture of activity at sea. Without that full picture, accountability stops short. With it, authorities can connect activity at sea to the people and companies behind it and protect coastal communities and fishers whose livelihoods depend on healthy fisheries.

Equally important, transparency and vessel tracking make enforcement more practical. Public access to vessel tracking and ownership information helps authorities focus limited resources on the vessels and activities that warrant closer scrutiny while protecting those responsible fishers who play by the rules but are too often undercut by those who do not.

Technology is advancing quickly. Satellite imagery can now help reveal activity that was once too small to see, particularly in coastal waters where small-scale fisheries are vital to food security and livelihoods. Machine learning and data fusion are helping governments build a more accurate picture of ocean use.

But technology alone will not transform ocean governance. It first require political will and leadership to guide the way.

And this is where Africa is taking the helm. In Kenya, eleven national governments from across Africa, Asia, the Caribbean, Europe and the Pacific today adopted the Mombasa Declaration, a comprehensive commitment to advancing concrete transparency reforms, including modernizing vessel registries, publishing fishing authorizations and strengthening information-sharing to support enforcement and accountability across fisheries sectors.

The Our Ocean Conference in Mombasa offers a chance to move from commitments to implementation. Countries must strengthen vessel tracking, require reliable vessel identification, disclose ownership information, share authorization data and support open, interoperable ocean data systems if we are to see a definitive push towards a healthy sustainable ocean for all.

Africa’s ocean future should not be decided in the dark. No one should be able to take from the sea while hiding from view. When the ocean becomes visible, better decisions become possible.

Dar es Salaam. The government has unveiled six key priorities aimed at unlocking the potential of Tanzania’s seaweed industry, positioning the sector as a driver of economic growth, job creation and the country’s Blue Economy agenda.

The priorities include tax relief on essential seaweed farming inputs, protection of long-term investors, increased support for farmers, promotion of value addition, investment in research and technology, and sustainable Blue Economy initiatives.

Speaking at the Sixth Seaweed4Health Conference held under the theme “Seaweed for Health”, Director of Aquaculture in the Ministry of Livestock and Fisheries, Mr Madalla Naziel, said Tanzania still has considerable untapped potential to expand seaweed production and strengthen its position in regional and international markets.

Mr Naziel, who represented the Minister for Livestock and Fisheries, Dr Bashiru Ally, said the government views seaweed as a strategic resource capable of improving livelihoods, boosting nutrition, generating foreign exchange earnings and strengthening climate resilience.

To reduce production costs and improve competitiveness, the government plans to engage relevant authorities on possible tax exemptions for key farming inputs, including boats, ropes, floats and drying equipment.

The government also pledged to strengthen extension services, technical training and climate-resilient farming techniques to improve productivity and farmers’ incomes.

“Value addition remains critical if we are to create more jobs, increase export revenues and maximise the benefits of this resource within our economy,” he said.

Meanwhile, C-Weed Mwani director Mr Murtaza Fazal said innovation and improved infrastructure would be critical to unlocking the industry’s growth potential.

He noted that about 90 per cent of Tanzania’s seaweed production is exported in raw form, limiting the value retained within the local economy.owth through tax relief and innovation

Uganda’s Daily Monitor, sister paper to Kenya’s Daily Nation, just published a disturbing investigation into secondary school elections. It revealed how schools mirror the corruption and bribery of adult politics.

Gone are the days of nervous speeches in assembly halls, the popularity contests of the playground, and humble posters taped to corridor walls.

The raw power of money and material inducements has replaced them. To win positions as prefects, students now deploy aggressive campaign strategies funded by their families. Tribalism, cash bribes and coordinated handouts dominate.

This problem extends beyond Uganda. Kenya has faced similar challenges, and echoes can be found across Africa and even in China.

In Kenya, like elsewhere, the commercialisation of school politics partly grew out of good intentions. In 2010, inspired by the new constitution, the Ministry of Education abolished the authoritarian system of teacher-appointed prefects.

In its place came the Kenya Secondary Schools Student Council (KSSSC), intended to give students a voice and teach accountability.

Yet what educators have dubbed “pocket-money politics” quickly took over.

Aspiring student leaders mimicked the campaigns of national politicians. Wealthy parents funded glossy posters, professional printing, and elaborate rallies.

Because cash is tightly regulated in boarding schools, bribery shifted to an alternative economy of sweets, chocolates, loaves of bread and maandazi.

The situation grew so serious that institutions such as the Aga Khan Academy in Mombasa were reported to have intervened earlier.

During junior school elections, administrators banned bribery, gifts, and grand promises. Campaign posters were restricted to plain A4 paper, in a bid to force a return to policy debates.

However, another reality has challenged the idea that corrupt students merely imitate their parents. The problem seems to be deeper.

In China, where there are no competitive multiparty elections, and the Communist Party maintains strict control, similar behaviour has emerged.

To understand why children so effortlessly drift into political corruption, one must look back to a seminal moment in documentary filmmaking. In 2007, Chinese director Chen Weijun released a remarkable, award-winning documentary titled Please Vote for Me (which is still available on YouTube and is one of those documentaries you cannot help but watch several times).

It tracked an experimental election for class monitor among a group of eight-year-old, third-grade students (Lower Primary in Kenya) at Evergreen Primary School in Wuhan.

Given their first taste of a democratic vote, the three chosen candidates, Cheng Cheng, Luo Lei, and Xu Xiaofei, quickly abandoned fair play.

Cheng Cheng, a natural populist, masterminded sophisticated smear campaigns, organising his peers to systematically heckle his introverted female opponent, Xu Xiaofei, until she wept during a talent show.

More remarkably, the film exposed how adult structures perpetuate corruption among youth. Luo Lei, the incumbent monitor, faced a wave of unpopularity due to his authoritarian style.

To rescue his campaign, his parents, established police officials, intervened behind the scenes.

They organised an all-expenses-paid school bus trip for the entire class, utilising state-adjacent influence to dazzle the electorate.

On the eve of the vote, Luo Lei’s father provided bulk packages of sweets and snacks for his son to hand out to his classmates.

The strategy worked perfectly; Luo Lei won the election, leaving his defeated, unresourced opponents crying bitterly at their desks.

The true significance of “Please Vote for Me” lies in its profound revelation of human nature. It shattered the romantic myth that political corruption is a learned vice of adulthood.

The lesson for us is that, first, we must recognise that holding an election does not equal achieving a democracy. If the rules of the game allow wealth to dictate outcomes, the process merely legitimises an oligarchy, whether in a parliament or a primary school.

Second (and this admittedly is one of those things that are easier said than done), the educational system has to move away from merely mimicking political processes toward teaching students more ethics.

When schools implement “democratic systems” as they are presently structured, they risk training the next generation of corrupt officials, yet a return to the old autocratic system is equally bad.

If African democracies are to break the cycle of transactional voting, the intervention must begin in the classroom.

We must strip the playground of its bribes, enforce strict spending caps on student campaigns as some schools are doing, and teach children that true leadership is a burden of service, not a commodity to be bought with a bag of sweets.

That might be one of the toughest acts of modern parenting.

Dar es Salaam. Prime Minister Mwigulu Nchemba has sought to defuse a growing debate over access to healthcare services within the Union, saying the issue is not a dispute between Mainland Tanzania and Zanzibar but a challenge arising from foreigners allegedly exploiting weaknesses in the system.

Speaking during the Question and Answer session in Parliament on Thursday, June 18, 2026, Dr Nchemba said relations between the two sides of the Union remain strong and are founded on shared identity and kinship rather than administrative arrangements alone.

He said the debate emerged following concerns over free healthcare programmes for vulnerable groups, including beneficiaries of the Tanzania Social Action Fund (Tasaf) on the Mainland and similar welfare schemes in Zanzibar.

According to the Prime Minister, some foreigners have been obtaining Zanzibar Resident Identity Cards through illegal means and using them to access services intended for Zanzibaris.

“This is not an issue between the two sides of the Union. It is a national issue. We do not have a relationship problem regarding the sharing of resources or provision of services,” Dr Nchemba told Parliament.

He called on immigration and other state institutions to strengthen verification mechanisms to prevent non-citizens from unlawfully accessing public services.

“We should not ignore the fact that there are people from outside Tanzania who infiltrate the country, acquire citizenship or residency documents through improper means, and seek to benefit from national resources,” he said, describing the Union as one built on deep social and family ties.

“The founders symbolically mixed soil to demonstrate the Union, but today it is even stronger because it has united families and blood relations through marriage and social integration,” he said.

Health insurance cooperation

The Prime Minister noted that although healthcare is a non-Union matter, the two sides cooperate closely in service delivery through reciprocal health insurance arrangements.

He said members of the National Health Insurance Fund (NHIF) on the Mainland and the Zanzibar Health Services Fund (ZHSF) are allowed to access treatment on either side of the Union using their respective insurance cards.

“A Zanzibari with a ZHSF card can receive treatment in Mainland Tanzania, while an NHIF member from the Mainland can also obtain services in Zanzibar,” he explained, noting that those without insurance coverage are required to pay for services directly.

Background to the debate

Dr Nchemba was responding to a question from Segerea Member of Parliament, Ms Agnesta Kaiza, who sought to know the policy and legal procedures used to provide health services to citizens from Tanzania Mainland and Zanzibar.

The MP’s question follows public reactions to comments made by some officials in the Revolutionary Government of Zanzibar, which were interpreted by some as discriminatory towards non-Zanzibaris.

On June 6, 2026, acting Zanzibar Minister for Health Dr Saada Mkuya Salum questioned the increasing number of non-Zanzibaris accessing treatment through the Matibabu Card programme, which is designed specifically for Zanzibar residents.

She argued that Zanzibar’s budget could not support healthcare costs for a much larger population beyond the Isles, remarks that generated criticism, particularly among some mainland Tanzanians.

However, Dr Mkuya later clarified that her concern centred on financial sustainability rather than exclusion.

She said Zanzibar had established mechanisms through which non-residents could contribute to healthcare financing and noted that mainland residents could access services through insurance schemes.

She also explained that the Zanzibar Health Services Fund provides services to all registered members, including those from Mainland Tanzania.

Gold reserves and war veterans

Responding to a question from Tarime Urban MP Esther Matiko, Dr Nchemba dismissed claims that Tanzania had secretly sold part of its gold reserves.

He said the country currently holds about 27 tonnes of gold worth between $3.9 billion and $4 billion.

“Gold has become an important monetary policy instrument for maintaining economic stability and strengthening the Tanzanian shilling. No gold has been sold,” he told Parliament.

He added that Tanzania’s total foreign reserves exceed $6 billion, sufficient to cover more than four months of imports.

The Prime Minister also addressed compensation for volunteers who participated in the 1979 war that helped topple former Ugandan leader Idi Amin.

Responding to a question from Njombe MP Deodatus Mwanyika, Dr Nchemba said legal and verification processes had been completed and 72 veterans had been identified.

“I expect payments to begin during this financial year,” he said.

What began as a public disagreement between comedian Mzee Shayo and Cheka Tu founder Coy Mzungu has evolved into one of Tanzania’s most widely discussed entertainment stories, dominating social media timelines, online discussions and entertainment headlines.

At first glance, the debate appeared to centre on influence, recognition and opportunities within the comedy industry. Yet as audiences continue to engage with the back-and-forth, the conversation has expanded far beyond two personalities. It has become a reflection of a much larger shift taking place across Tanzania’s entertainment and media landscape: the growing power of digital creators.

A decade ago, national conversations were largely shaped by politicians, musicians, football stars and traditional media organisations. Today, a single video posted by a content creator can spark nationwide debate within hours, generating millions of views, thousands of comments and extensive media coverage.

The Coy Mzungu-Mzee Shayo exchange is a clear demonstration of how creators have become influential public figures in their own right. Their ability to command attention, mobilise audiences and drive public conversation increasingly rivals that of mainstream media platforms.

What makes the discussion particularly significant is that it has exposed deeper issues within Tanzania’s creative economy. Beneath the headlines are important questions about mentorship, ownership of platforms, creative recognition, revenue distribution and the future structure of the comedy industry itself.

At its core, the debate reflects a broader conversation taking place across the creator economy: who creates opportunities, who deserves recognition for building platforms, and how success should be measured in the digital age. As audiences, influence and commercial opportunities grow, these questions are becoming increasingly important for creators and the industries that support them.

For many observers, the disagreement has highlighted the tensions that often emerge as industries mature. Digital entertainment is no longer viewed as a hobby or side pursuit. It has evolved into a viable economic sector capable of creating jobs, building brands and generating substantial revenue.

The controversy has also demonstrated one of the defining realities of the modern creator economy: attention is currency.

Every response video, reaction clip, repost and commentary segment has generated further engagement, extending the lifespan of the conversation and increasing visibility for all parties involved. In the digital era, audience attention has become a valuable commodity capable of translating into brand partnerships, sponsorships, advertising revenue and long-term career opportunities.

Across Tanzania, a new generation of creators is rapidly emerging through comedy, lifestyle content, sports commentary, podcasts and short-form video platforms. Many are building loyal communities and sustainable businesses without relying on traditional media gatekeepers.

As internet access expands and social media platforms continue to evolve, content creation is increasingly being recognised as a legitimate profession. Brands are investing more heavily in influencer marketing, creators are launching independent ventures and audiences are consuming content directly from personalities they trust and relate to.

The impact is reshaping the country’s entertainment ecosystem. Success is no longer determined solely by television appearances, radio airplay or mainstream media exposure. Increasingly, influence is measured through engagement, community building and digital reach.

Against this backdrop, the ongoing Coy Mzungu-Mzee Shayo saga serves as more than entertainment gossip. It offers a glimpse into the opportunities, challenges and growing pains of Tanzania’s creator economy at a time when digital voices are becoming some of the country’s most influential cultural forces.

The growing commercial value of creators is also attracting increased interest from brands. One recent example is the Coy Mzungu and HOT 70 Creator Challenge, sponsored by Infinix Tanzania. Launched in June 2026, the initiative is an ongoing content creation competition designed to discover, mentor and empower emerging digital talent across Tanzania.

Participants receive financial support, internet connectivity and access to the newly launched AI-powered Infinix HOT 70 smartphone, equipping them with tools to create and grow their platforms.

Programmes such as these signal a wider recognition of the creator economy’s potential. As technology companies, brands and industry stakeholders continue to invest in digital talent, Tanzanian creators are increasingly finding themselves at the centre of a rapidly expanding ecosystem.

Whether audiences side with Coy Mzungu or Mzee Shayo is ultimately secondary. The more significant story lies in what their public dispute has revealed: content creators are no longer simply entertainers operating online. They are entrepreneurs, community builders and influential voices helping to shape conversations, culture and commerce in modern Tanzania.

The creator economy is still young, and debates like the one between Coy Mzungu and Mzee Shayo are likely to become more common as influence, money and audiences continue to grow. What once looked like entertainment industry drama may ultimately be remembered as evidence of a sector negotiating its future in real time.

The Minister for Finance, Khamis Mussa Omar, read the Government Budget for the year 2026 2027 on June 11 to Parliament; in which he presented a Budget of Sh62.33 trillion, a 10.3 percent increase from last year’s, sourced to 74.2 percent from domestic revenues to emphasise the need for self-reliance.

The Budget targets a GDP growth rate of 6.3 percent, and is themed:

“Building a resilient economy through digital transformation, strategic investment, and sustainable fiscal policies for inclusive economic growth”, the 2026/2027 Budget being the first to be implemented under Tanzania’s National Development Vision, 2050.

Newspapers have a tradition of adorning each Budget with fancy names like: “Recovery Budget”, “Industrialisation Budget”, “Relief Budget”; and this year’s one was called “Unique Budget” by a Government Broadsheet; and “Self-Reliance Budget” by one Swahili Daily.

However, as an old timer, you cannot fail to see the difference between Budget Day of many years bygone, and today.

In those yonder days, people would cling to their radios, listening and looking fascinated at what they heard from the Minister of Finance.

A tradition had grown that in each Budget Speech there would be measures to put up prices. That was usually a foregone conclusion, the question being price rises by how much.

An increase in prices was usually expected on what, in some countries, are called “sin taxes”.

Higher taxes on: beer, spirits, and wines; cigarettes and tobacco; and gambling and casinos.

With “sin taxes” governments aimed not only to raise revenue, but also to discourage the consumption of such goods. Unique was the Minister of Finance who did not put up prices for these goods.

Nevertheless, there was general agreement in those days that increase in taxes would not reduce the demand for beer.

In a way, therefore, the government was assured of revenue from such sources, whose demand was inelastic

These days, the reaction from the public over the Budget is a bit more sophisticated, possibly as a result of increasing financial literacy.

This year for example, as soon as the minister finished reading his Budget Speech, the Parliament’s Budget Committee immediately raised alarm over the growing Public Debt.

Procedurally, the Committee must have seen the Budget proposals and must have had opportunities to guide how the Budget would be before the proposals were finalised.

Nevertheless, it is important to realise that public borrowing is regulated by law, is realised through the Ministry of Finance, and is undertaken within the limits of the Budget approved by Parliament. There is a Debt Management Division in the Ministry of Finance.

Further guidance is obtained from the Government Loans, Guarantees, and Grants Act, Cap 134 and its Regulations.

In accordance to section 25.1(a) of, Cap 134, the Government, through the Ministry of Finance, is required to prepare a Medium-Term Debt Management Strategy (MTDS) and an Annual Borrowing Plan (ABP) in line with the overall fiscal framework.

The ABP is a structural plan that guides the debt management, in operationalising the provisions described in the borrowing strategy selected in the MTDS.

The Government overarching debt management objective, articulated in Regulation 4 of the Cap 134, aims at “meeting Government financing needs while minimising borrowing costs”.

That primary goal is complemented by secondary objectives that is: Fostering the development of domestic financial markets; Ensuring the sustainability of the debt burden; Mitigating debt-related risks; and, Balancing the sharing of the benefits and costs of public debt between the current and future generations. Public Debt, therefore is well-regulated.

The fact that Public Debt also aims at fostering the development of domestic financial markets is usually not discussed. Yet, without public borrowing, many of the important investment opportunities which are touted by the current crop of financial literacy advisors, such as Government Bonds, would not exist.

Governments borrow principally by selling Government bonds and Treasury bills to domestic and foreign investors (lenders), who may be individuals, banks and other financial institutions, pension funds, or other investors.

Individuals and Corporate bodies buy government bonds directly or through mutual funds/ETF. Financial Institutions such as banks, pension funds, and insurance companies are also major buyers, seeking safe, fixed-income assets.

In brief, public borrowing fosters domestic financial markets primarily by establishing a risk-free benchmark yield curve.

This provides a reliable pricing reference that allows private corporations and financial institutions to issue their own debt, price complex financial products, and accurately manage liquidity.

Thus, while trends like migrating to commercial loans from concessional loans is worrisome, there is need to bear in mind the importance of public borrowing in fostering domestic financial markets.

A key point to emphasise, is that investing opportunities offered by public borrowing should be accessible to the ordinary citizen countrywide.

Lusugga Kironde is Professor of Land and Urban Economics and lead consultant at TKA Company Ltd.

The government has announced new plans to eliminate child labour in informal and unregistered mining operations where children remain most exposed to hazardous work.

At the same time authorities have also said they now seek to push for universal school enrolment and retention.

In the previous article, I argued that Tanzania’s debt debate cannot be understood simply by looking at debt-to-GDP ratios alone.

While the country’s public debt remains technically within international sustainability thresholds, the more troubling issue is the growing share of government revenue now devoted to debt servicing.

Yet behind the debate over external borrowing lies another quieter but equally important development: the rapid rise of domestic debt and its growing influence on the structure of Tanzania’s economy.

Public discussion on debt often focuses on foreign lenders, international financial institutions and external obligations denominated in dollars or other foreign currencies.

However, government borrowing within the domestic economy has expanded rapidly in recent years through Treasury bills and Treasury bonds purchased mainly by commercial banks, pension funds, insurance companies and other financial institutions.

Today, Tanzania’s domestic debt is estimated at well over Sh38 trillion and continues to grow steadily. Treasury bonds now account for the overwhelming majority of domestic government borrowing.

This trend may appear less alarming than external debt because the government is borrowing largely from Tanzanian institutions using local currency rather than relying entirely on foreign creditors.

At first sight, domestic borrowing appears safer and even more patriotic. Governments mobilise local savings for national development, reduce exposure to exchange-rate risks and avoid excessive dependence on foreign lenders.

In moderation, domestic borrowing is indeed an important and legitimate financing tool.

The danger arises when domestic borrowing grows so rapidly that it begins reshaping the entire economy.

The most important issue is what economists call ‘crowding out’. Every economy has limited financial resources available for lending and investment. When government increasingly borrows from banks and financial institutions, those institutions often prefer purchasing government securities rather than lending to private businesses, manufacturers, farmers or entrepreneurs.

From the perspective of banks, this behaviour is understandable. Government securities are generally considered safe, profitable and predictable. Lending to small businesses, agricultural producers or industrial start-ups carries higher risks and administrative costs.

As government borrowing expands, financial institutions therefore allocate more capital toward Treasury bonds and less toward productive private-sector activity.

The consequences for economic transformation can become serious over time.

Industrialisation depends on credit. Farmers require financing for irrigation, mechanisation and storage facilities. Manufacturers require capital for machinery, expansion and technological upgrading.

Young entrepreneurs require affordable loans to establish businesses and create employment. When increasing amounts of domestic capital are absorbed by government borrowing, productive sectors may struggle to access affordable financing.

In effect, government begins competing directly with the private sector for scarce domestic savings.

This issue is particularly important for Tanzania because long-term industrial transformation cannot occur without a dynamic private sector.

Economic growth driven mainly by public expenditure and debt-financed infrastructure eventually requires productive private investment capable of generating exports, employment, tax revenues and innovation.

Another important dimension concerns pension funds. Large pension institutions now hold substantial amounts of government securities because Treasury bonds provide relatively stable returns.

On the surface, this appears reasonable and is common internationally. Pension funds everywhere invest part of their portfolios in sovereign debt.

However, excessive dependence on pension financing creates its own risks.

Pension funds manage the lifetime savings of workers and retirees. If governments become increasingly dependent on pension institutions as continuous sources of financing, concerns may eventually arise about concentration of risk and long-term sustainability. Future pension obligations ultimately depend on the strength of the broader economy itself.

Domestic borrowing also affects interest rates across the economy. As government demand for financing rises, Treasury yields may increase in order to attract investors.

Higher government borrowing costs can then push up commercial lending rates for businesses and households. Private investment slows, production costs rise and economic dynamism weakens.

This is why domestic debt deserves much greater public attention than it currently receives.

Unlike external debt, domestic borrowing often appears politically less controversial because repayment occurs internally. Yet excessive domestic borrowing can quietly weaken the productive foundations of the economy itself.

An economy where banks increasingly finance government consumption rather than productive enterprise may remain fiscally stable in the short term while gradually undermining future growth potential.

The question is not whether domestic borrowing should exist. All modern economies use domestic debt markets. The real issue is whether borrowing supports productive transformation or merely sustains expanding fiscal obligations.

This distinction becomes especially important when debt servicing itself continues to rise. If growing portions of government revenue are increasingly devoted to repayment obligations while private-sector expansion slows, governments may eventually face the difficult choice between higher taxation, reduced social spending or even more borrowing.

Tanzania still possesses enormous economic potential. The country has strategic geographic advantages, abundant natural resources, a growing population and significant opportunities for industrial and agricultural expansion. Domestic borrowing can contribute positively to this transformation if carefully managed and directed toward productive investment.

But borrowing alone does not create prosperity. Sustainable development ultimately depends on whether debt strengthens the productive capacity of the economy or gradually weakens it through excessive fiscal dependence and reduced private-sector dynamism.

Domestic borrowing can therefore either support national transformation or quietly constrain it.

The outcome depends on discipline, transparency, investment quality and long-term economic planning.

Next week I will analyse a more sustainable borrowing strategy grounded in productivity, accountability, industrial growth and intergenerational responsibility.