US has debt rate to total GDp of around 90%, UK 86%, Japan at a staggering 240%, the highest of any country in the world. But tell me if those countries arr poor? Why are they not rated into the junk status?
Tanzania debt rate to Gdp is 36%, that is excluding the bit that was written off by the lenders. And if it wants to fulfil its ambitions of constructing those new, mordern transport infrastructure it will have to borrow.
Kilam, it is simple rithmetics:
Remember u had to borrow more than 10bn$ to construct tge Lamu port from the Chinese, that was in 2015.
The Gdp of Tz in 2015 was $45bn. Now do the math. 10bn$ is was more than 22% of the total Tz Gdp! Add that to the 30% u had already accumulated.
But that was not the only project you were planning to undertake. There are still several other, ranging from transport, power generation and supply, info and comm etc. You will have to borrow for nearly all of these, and by the time you are done........read my lips: your debt levels will probably rise to 70% of your Gdp!
If u dont want the debt, u think it's a bad thing, just tell your govt that the roads are unnecesarry.