Industrial supplies, machinery drive up imports
DAR ES SALAAM: TANZANIA’S imports rose to 17.68 billion US dollars year-on-year from 16.77 billion US dollars last year, driven largely by industrial supplies, transport equipment and machinery, signalling continued demand for capital and production-related goods.
The rise in imports, particularly of industrial supplies, machinery and transport equipment, indicates ongoing investment in production capacity and infrastructure, which can support economic growth, industrialisation and long-term competitiveness.
The Bank of Tanzania’s latest Monthly Economic Review indicates a 12.5 per cent decline in oil imports to 2.39 billion US dollars primarily due to falling global prices.
This reduction eases pressure on the country’s import bill, potentially improving the trade balance and freeing resources for investment in other sectors, while also signaling vulnerability to external commodity price fluctuations.
Tanzania’s monthly goods imports fell slightly to 1.23 billion US dollars from 1.26 billion US dollars in October last year, reflecting relative stability in demand for imported goods.
While the marginal decline suggests controlled import growth, it may also indicate subdued domestic consumption or shifts toward local production, with implications for trade balance and industrial planning.
Tanzania’s service payments rose to 3.07 billion US dollars in the year ending October up from 2.66 billion US dollars last year primarily due to higher freight costs linked to the growing import bill.
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This trend underscores the economy’s increasing dependence on imported goods and international logistics, highlighting potential pressures on the current account and the need for efficiency improvements in trade-related services.
Tanzania’s month-on-month service payments fell to 254.9 million US dollars from 281.9 million US dollars in October last year, suggesting a temporary moderation in expenditures on services such as freight, travel and royalties.
While the decline may ease short-term pressure on the current account, it may also reflect slower import activity or seasonal fluctuations in service-related costs, highlighting the sensitivity of the economy to external trade dynamics.
Tanzania’s primary income account deficit widened to 2.04 billion US dollars in the year ending October up from 1.80 billion US dollars last year, driven largely by outbound payments on equity and interest.
The growing deficit highlights the economy’s increasing financial obligations to foreign investors and creditors, underscoring potential pressures on the current account and the importance of boosting domestic savings and investment to offset external outflows.
Tanzania’s monthly primary income account deficit stood at 221.7 million US dollars nearly unchanged from October last year indicating a persistent outflow of income payments on equity and interest.
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This stability suggests that while the deficit remains a recurring structural feature, shortterm fluctuations are limited, emphasising the need for long-term strategies to manage external financial obligations.
Tanzania’s secondary income account posted a 450 million US dollars surplus for the year ending October down from 550.8 million US dollars last year largely driven by personal transfers.
The monthly surplus of 15.5 million US dollars compared with 31.1 million US dollars in October last year signals a moderation in remittance inflows, which could reduce household consumption and foreign exchange availability, highlighting the economy’s reliance on external transfers for sustaining private spending.
