Tanzania Exports Increase by 8.4% in Year Ending June 2016

The Bank of Tanzania (BOT) Monthly Economic Review for July 2016 shows that the value of export of goods and services in the year ending June 2016, increased by +8.4%.

Overall exports reached USD10,096.9m, compared to USD9,310.6m in the year ending June 2015. The improvement was mainly driven by an increase in travel (tourism) receipts, manufactured goods, and gold.

Travel maintained the leading position among foreign currency earners, before manufactured goods, gold, and traditional exports, with USD2,274.7m worth of exports in the year ending June 2016, showing a year-on-year increase of +3.5%.

Foreign exchange earnings from manufactured goods increased by 11% to USD1,462.6m in the year ending June 2016, with a notable improvement recorded in textile apparel and plastic items.

Gold exports increased by +7.9% to USD1,334.6m as a result of increase in export volume.

Among Tanzania’s traditional exports, increases were seen in coffee (USD151.5m, +1.8%), tea (USD49.9m, +11.1%), cloves (USD46.2m, +51%) and sisal (USD24.6m, +37.4%).

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.

World Commodities Prices

In June 2016, prices of coffee and cotton went up, thanks to higher global demand, reaching USD1.89 per kg of Robusta Coffee, and USD3.64 of Arabica, and USD1.63 per kg of cotton.

Prices of crude oil and white petroleum products also increased in June 2016, reaching USD47.70 per barrel, and USD566.50 per ton respectively, due to a decline in USA crude oil production.

The price of gold rose to 1,276.40 in June 2016 due to the weakness of the US Dollar against some major currencies.