Zanzibar current account surplus soars 40pc

ZANZIBAR: ZANZIBAR’S current account balance has seen a significant improvement, growing to a surplus of nearly 40 per cent over the year ending in November.

The surplus surged to 500.7 million US dollars, up from 360.3 million US dollars during the same period in 2023.

According to the Bank of Tanzania (BoT) in its latest Monthly Economic Review, this positive shift was primarily driven by an increase in exports of goods and services, particularly from the tourism sector, alongside a reduction in the imports of good.

“The improvement was largely associated with an increase in exports of goods and services receipts, in particular tourism, coupled with a decrease in imports of goods,” BoT report issued last month showed.

Zanzibar, celebrating 61st Revolution Anniversary yesterday, saw its exports of goods and services reached 1.077 billion US dollars from 958.3 million US dollars recorded in the year ending November 2023.

The services receipts, in particular, tourism rose by 12.1 per cent, to 1.019 billion US dollars, following an increase in tourist arrivals. The value of cloves export increased by 5.4 per cent to 18.9 million US dollars compared to the corresponding period in 2023, with the increase largely explained by the price effect.

On monthly basis, exports of goods and services increased to 103.6 million US dollars from 83.3 million US dollars in November 2023.

ALSO READ: Tanzania current account deficit narrows

On other hand imports of goods and services declined by 2.2 per cent to 596.7 million US dollars compared to the year ending in November 2023.

“The decrease in goods was recorded in capital and intermediate categories,” the central bank report said.

Importation of capital goods also decreased to 55.5 million US dollars from 78.7 million US dollars, as most infrastructure projects, in particular hospitals, schools and roads are nearing the completion stage.

Intermediate goods imports decreased by 4.3 per cent to 364.3 million US dollars largely due to exchange rate depreciation effect.

On monthly basis, goods free on board (fob) and services worth 63.9 million US dollars were imported last November compared with 43.7 million US dollars in November 2023.

Meanwhile Zanzibar expenditure was 155.4bn/- of which recurrent expenditure was 74.8bn/-, while development expenditure was 80.6bn/-.

Local financing to development expenditure was 62.7bn/- and the balance was from foreign resources. An overall deficit of 3.3bn/- was realised last November and was financed through domestic borrowing