Coal exports hit $195.5m

TANZANIA registered an export value of coal of 195.5 million US dollars in the year ending January due to rising demand contributed by the global energy crisis.

According to the Bank of Tanzania (BoT), monthly economic review for February this export value of coal is almost nine times compared to 22.2 million US dollars recorded in the corresponding period in 2022.

“The heightened demand for alternative energy following supply disruptions stemming from the war in Ukraine,” the central bank report stated.

Much of the coal was destined for the regional markets that are Kenya, DRC, Rwanda and Uganda with Poland, Hong Kong, India and Senegal as other destinations.

The international coal market remained tight in 2022, with coal demand for power generation set to hit a new record.

Coal prices rose to unprecedented levels in March and then again in June, pushed higher by the strains caused by the global energy crisis, especially the spikes in natural gas prices, as well as adverse weather conditions in Australia, a key international supplier.

According to the central bank report, other minerals which contributed to the increase in exports in the reference period are diamonds and gold.

During the period under review, diamond exports increased to 62.5 million US dollars from 8.7 million US dollars in the corresponding period in 2022, owing to the resumption of production at Williamson Mines.

Gold exports also increased to 2,904 million US dollars from 2,655.8 million US dollars on account of both volume and price effects.

The exports of goods and services increased to 12,258.7 million US dollars in the year ending January from 9,983.7 million US dollars in the previous year.

Much of the increase was registered in manufactured goods exports, mainly fertilisers, textiles and iron and steel explained by increasing demand from neighbouring countries particularly the Democratic Republic of Congo (DRC).

The exports of traditional goods also rose to 754.6 million US dollars from 657.8 million US dollars with all crops recording increases except clove and tea. The increase was mostly owing to price effects.

On monthly basis, traditional exports fell to 66 million US dollars in January from 77.8 million US dollars in January 2022, while non-traditional exports increased by 48.2 per cent to 484.6 million US dollars up from 326.9 US dollars million in January 2022.

Service receipts rose to 4,881.4 million US dollars in the year to January from 3,231.8 million US dollars in the corresponding period in 2022, largely driven by travel receipts (mostly tourism), and transport receipts.

Travel receipts almost doubled to 2,641.1 million US dollars as tourist arrivals rose to 1,500,648 from 938,017, closer to the pre-pandemic levels of 1,527,230 in 2019, signalling continued recovery of the sector.

On monthly basis, service receipts were 460.5 million US dollars higher than 343.3 US dollars million in January 2022.

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