Strong global demand boosts export earnings

DAR ES SALAAM: EXPORTS of goods and services rose 13.1 per cent to 17.56 billion US dollars (over 43.63tri/-) in the period ending November last year, up from 15.52 billion US dollars (38.57tri/-) a year earlier, driven by strong global demand for both traditional and non-traditional goods.

The latest Bank of Tanzania (BoT) Monthly Economic Review shows that export of goods reached 10.17 billion US dollars (25.27tri/-) in the period under review from 8.76 billion US dollars (21.76tri/-) in the previous year.

“An increase in the exports of gold, manufactured goods, tobacco, cashew nuts and coffee contributed to the overall growth,” stated the BoT report.

Notably, the value of gold exports reached a record high, surging by 42.1 per cent to 4.72 billion US dollars (11.72tri/-) compared with 3.32 billion US dollars (8.25tri/-) largely reflecting higher global gold prices coupled with increased production amid heightened economic uncertainties.

Traditional exports experienced a modest increase, reaching 1.39 billion US dollars (3.45tri/-), a 3.1 per cent rise mainly driven by tobacco exports, which benefited from both price and volume gains.

Cereal exports, primarily maize and rice, grew by 15.1 per cent to 286.1 million US dollars (710.95bn/-) from 247.8 million US dollars (615.78bn/-).

On a monthly basis, the value of goods exports rose to 1.098 billion US dollars (2.73tri/-) in November last year up from 1.032 billion US dollars (2.56tri/-) in November 2024 boosted by strong performance in gold, manufactured goods and tobacco.

Services receipts increased by 9.3 per cent to 7.39 billion US dollars (18.32tri-) in November last year, compared with 6.76 billion US dollars (16.76tri/-) in the period ending November 2024.

Higher earnings from tourism and transportation services supported the growth.

Travel receipts rose in line with increased tourist arrivals, which grew by 9.9 per cent to 2,315,478 last year from 2,106,870 in the period ending November 2024.

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Transport earnings, primarily freight from transit goods, rose by 37.3 per cent to 2.77 billion US dollars (6.86tri/-).

On a monthly basis, service receipts totalled 593.9 million US dollars (1.47tri/-) in November last year marginally above 589.7 million US dollars (1.46tri/-) a year earlier, driven by tourism and transport.

According to the BoT report, the external sector position further strengthened in the period ending November last year, with the current account deficit narrowing to 1.91 billion US dollars (4.73tri/-) from 2.69 billion US dollars (6.67tri/-) recorded in the same period 2024, driven by robust export performance in both goods and services, coupled with a moderate increase in imports, largely inputs for production and investment activities.

On the other, import of goods and services amounted to 17.75 billion US dollars (44.02tri/-) in the period ending November last year, rising slightly from 16.86 billion US dollars (41.81tri/-) in the corresponding period 2024.

The increase was largely attributable to higher imports of industrial supplies, machinery and mechanical appliances and industrial transport materials, as well as increased freight payments.

Oil imports fell 7.1 per cent to 2.39 billion US dollars (5.92tri/-) driven mainly by weaker global prices.

On a monthly basis, goods imports fell to 1.26 billion US dollars (3.12tri/-) in November last year from 1.32 billion US dollars (3.27tri/-) a year earlier, reflecting lower oil import values.

During the period, services payments increased by 14.4 per cent to 3.11 billion US dollars (7.71tri/-) from 2.72 billion US dollars (6.74tri/-) in the same period 2024.

The growth largely resulted from higher freight payments, consistent with the increase in the import bill.

On a monthly basis, service payments stood at 270.9 million US dollars (671.98bn/-) last November, compared with 267.7 million US dollars (664.05tri/-) in November 2024.

The primary income account recorded a deficit of 2.10 billion US dollars (5.21tri/-) in the period ending November last year from 1.86 billion US dollars (4.61tri/-) in the same period 2024.

The increase was primarily driven by higher payments of income on equity and interest to non-residents.

On a monthly basis, the primary income account deficit stood at 211.8 million US dollars (525.38bn/-) in November last year, compared with 148.1 million US dollars (367.37bn/-) in a similar month of the previous year.

The secondary income account recorded a surplus of 388.3 million US dollars (963.21bn/-) in the period ending November last year down from 519.1 million US dollars (1.28tri/-) in the previous year. The decline was largely attributable to lower personal transfers.

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On a monthly basis, the surplus stood at 6.3 million US dollars (15.62bn/-) in November last year a notable decrease from 50 million US dollars (124.02bn/-) in November 2024.