Tanzania Exports Down 6% in Year Ending May 2017, Gold and Tourism on the Rise

Tanzania Exports May 2017

The Bank of Tanzania (BOT) Monthly Economic Review for May 2017 indicates that the annual export value of Tanzanian goods and services amounted to USD 8,774.9 million in the year ending May 2017, -6.2% lower than in the year ending May 2016 with USD 9,357.0 million.  

The decline was on account of the lower export value of manufactured goods exports, which outweighed the improvement in earnings from exports of traditional goods, gold, and travel (mainly tourism).

Traditional Exports
The value of traditional exports increased by +11.7% to USD 851.4 million in the year ending May 2017 from the amount realized in the year ending May 2016.

Much of the increase came from cashew nuts export, which improved by +82.9% to USD 340.9 million from USD 186.3 million in May 2016. The improvement was due to increase in both volume and price.

Earnings from the export of cotton and coffee also increased while export values of sisal, tea, cloves and tobacco declined at a varying degree due to volume effect. Price decline also contributed to the decline in cloves export.

Non-Traditional Exports
Non-traditional exports decreased by USD 677.4 million to USD 5,132.4 million in the year ending May 2017 from May 2016.

With the exception of gold and horticultural products, all other non-traditional exports declined.

The export value of gold, which accounts for the largest share of non-traditional exports, increased by +24.7% to USD 1,526.8 million on account of increase in both volume and price at the world market.

The price of gold in the world market rose by +8.6% to an average of USD 1,259.4 per troy ounce.

Tourism Exports
Foreign exchange receipts from services, which were dominated by receipts from travel and transportation, amounted to USD 3,642.5 million, an increase of about USD 95.3 million from the amount earned in the corresponding period the preceding year.

The improvement in travel receipts was largely attributed to an increase in the number of tourist arrivals, while the good performance in transport receipts was mainly on account of increased transit goods to-and-from neighbouring countries.