Tanzania’s Exports Increase by 7.9% in Year Ending February 2016 Thanks to Tourism

The Bank of Tanzania (BOT) Monthly Economic Review–March 2016 recently published shows that the value of export of goods and services in the year ending February 2016 increased by +7.9%.

Overall exports reached USD9,636.2m, compared with USD8,983.2m in the year ending February 2015.

The improvement was mainly driven by an increase in travel (tourism) receipts, thanks to rising tourist arrivals, the BOT’s Review indicates.

Travel maintained the leading position among foreign currency earners, before manufactured goods, gold and traditional exports, with USD2,275.1m worth of exports in the year ending February 2016, showing a year-on-year increase of +9.5%.

Gold exports also increased, by +1.9% to USD1,290.3m following a minor increase in volume as price in the world market remained low.

Among Tanzania’s traditional exports, increases were seen in coffee (USD154.2m, +14%), tea (USD47.2m, +8.3%), cloves (USD41m,  +25.8%) and sisal (USD20.5m, +17.1%).

There was also a notable rise in export value of oil seeds, raw hides and skins, cocoa, cereals, and re-exports of machinery, vehicles, wheat and tyres.

Among Tanzania’s non-traditional exports, improvements were seen in manufacturing (USD1,290.3m, +1.9%), horticultural products (USD960m, +40%), and fish and fish products (USD402.1,  +75%).

In February 2016, prices of coffee (Arabica), cotton, gold and crude oil went up, thanks to higher global demand.

The price of coffee (Robusta) were lower mainly due to expected increase in coffee production in Brazil.

The price of gold rose together with the investors’ increasing demand for this metal seen as safe haven under volatile global equity markets.

The price of tea decreased. However, on annual basis tea price went up mostly due to low production in Kenya which resulted from dry weather.