Z’bar current account surplus widens on tourism

ZANZIBAR’s current account surplus rose by 11.3 per cent to 742.1 million US dollars (about 1.9tri/-) in the period ending November last year, reflecting a stronger external position mainly driven by higher services exports, led by increased tourism receipts, compared with the same period a year earlier.

The expansion in the surplus suggests a continued rebalancing of the external account toward services-led inflows, underscoring the economy’s growing reliance on tourism as a key foreignexchange earner.

The latest Bank of Tanzania Monthly Economic Report shows that exports of goods and services rose by 30.4 per cent to 1.60 billion US dollars in the year ending November, signalling a marked improvement in external earnings compared with the corresponding period a year earlier.

The export expansion was driven predominantly by services receipts, reflecting a strong recovery in tourism activity. Tourist arrivals increased by 26.9 per cent to 908,049 visitors in the period ending November last year, reinforcing tourism’s role as the principal source of foreign exchange growth.

While the surge in arrivals underpinned export performance, the concentration of gains in services underscores the continued importance of diversifying export sources to enhance resilience against demand-side and global travel shocks.

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While higher services receipts helped offset pressures from merchandise trade and income outflows, the concentration of gains in tourism highlights both resilience in visitor demand and potential vulnerability to external shocks, including global growth slowdowns and travel-related disruptions.

The value of clove exports rose by 25.1 per cent to 23.7 million US dollars (about 60.3bn/-) from the amount recorded in 2024, reflecting the crop’s cyclical production pattern.

On a monthly basis, exports of goods and services increased to 125.9 million US dollars (about 320.4bn/-) in November last year from 115.5 million US dollars (about 294bn/-) recorded in a similar month in 2024. Imports of goods and services increased by 52.7 per cent to 886.1 million US dollars (about 2.3tri/-) compared with the amount recorded in the year ending November 2024.

This outturn was mainly driven by higher imports of capital, intermediate and consumer goods. Imports of capital goods rose sharply by 87.3 per cent to 103.9 million US dollars (about 264.4bn/-) largely driven by machinery and mechanical appliances. Intermediate goods import also expanded, supported by higher inflows of industrial supplies, parts and accessories.

Likewise, consumer goods imports increased, following stronger demand for nonindustrial transport equipment. On a month-on month basis, imports of goods and services increased to 70.2 million US dollars (about 179bn/-) from 55.1 million US dollars (about 140.2bn/-) recorded in November 2024.