State owned firms’ debt stock decreases in April

The report shows Tanzania Electricity Supply Company Limited (Tanesco) made progress in repaying after its debt decreased to 4.83bn/-, accounting for 16.2 percent of total debt in April, compared with lower than 5.56bn/-or 18.2 percent recorded in March this year.

In a meantime, the has contracted two private firms that will soon start collecting 244bn/- that the state-owned power utility firm owes public and private customers in accumulated debts

Deputy Minister for Energy, Stephen Byabato told the National Assembly in April that the outstanding debts had been accumulated for a long time and that in Public Entities TANESCO was supposed to collect about 86bn/- and that already his ministry had written to the treasury to demand that the debts be cleared amicably.

Dar es Salaam Water and Sewerage Authority (Dawasa) also managed to reduce its domestic debt to 1.36bn/ or 4.6 percent of total SOEs debt I April, compared with 1.47bn/ or 4.8 percent of total debt in March.

Dawasa is the authority with a mandate of supplying water services and removal of sewerage services at Dar es Salaam region and part of coastal Region (Kibaha and Bagamoyo).

However, the share of two SOEs including Tanzania Railways Corporation (TRC) and Tanzania Fertilizer Company (TFC) debt slightly increased during the reported period.

The share of TRC domestic debt creased by a percentage point to 17.5 percent or 5.2bn/- in April, compared with 17 percent in March, although the amount reported was flat at 5.2bn/-.

TFC domestic debt increased to 18.35bn/- or 61.7 percent of total SOEs debt stock in April, higher than 18.34bn/- or 60 percent share recorded in March this year.

The report shows two SOEs including Tanzania Ports Authority (TPA) and Air Tanzania Corporation Limited (ATCL) recorded no domestic debt stock during the reported period.