THE value of goods and services exports rose by 5.2 percent to over 21tri/-(9,205.2 million US dollars) in the year ending September due to increase in services receipts and value of non-traditional goods exports.
The Bank of Tanzania (BoT) monthly economic review for October the export of nontraditional goods was 9.18tri/-(3,991.9 million US dollars), higher than 7.41tri/- (3,222.1 million US dollars) in the corresponding period in 2018.
Earnings from all major categories of non-traditional goods exports increased, except for fish and fish products, and re-exports.
Export of gold accounted for 48.6 percent of nontraditional goods exports and increased by 26.1 percent to 4.46tri/-(1,940.3 million US dollars) on account of volume and price effects.
Export value of manufactured goods grew by 32.6 percent to 2.37tri/-(1,032.4 million US dollars), driven by exports of sisal products, iron and steel, glass and glassware, manufactured tobacco, and fertilizers.
Traditional goods exports declined to 1.29tri/-(563.5 million US dollars) in the year ending September from 2.66tri/-(1,160.8 million US dollars) in the corresponding period in 2018, as all traditional goods declined, save for coffee and tea.
Cashew nuts exports, in particular, decreased owing to a fall in prices in the world market and volume due to delays in exporting after government intervention to safeguard farmers’ earnings.
It is estimated that about 90,000 tonnes of cashew nuts stock for the 2018/19 crop-season were exported in August and September this year.
Exports of coffee and tea improved, supported by favourable weather conditions.
Foreign exchange earnings from services amounted to 9.64tri/-(4,194.3 million US dollars) in year ending September compared with 9.04tri/-(3,930.8 million US dollars) in thecorresponding period in 2018, largely driven by tourism.
Receipts from tourism accounted for 61.8 percent of service receipts and grew by 9.9 percent to 5.96tri/-(2,593.3 million US dollars), owing to increase in the tourist arrivals.
Service receipts accounted for 45.6 percent of total export of goods and services.
The overall balance of payments was a deficit of 86.71bn/- (37.7 million US dollars) in the year ending September 2019 compared with a deficit of USD 276.4 million in year ending September 2018.
Meanwhile the current account deficit widened to 4.88tri/- (2,122.7 million US dollars) from 4.23tri/- (1,841.4 million US dollars), owing to higher goods imports, particularly capital and intermediate goods which are used for production, coupled with a decline in official current transfers.