The Bank of Tanzania (BOT) released its Monthly Economic Review-May 2024 which covers key macroeconomic indicators for the year ending April 2024.
External Sector Performance
The external sector exhibited notable improvement with the easing of global supply chain constraints and stabilization in the prices of essential commodities.
During the year ending April 2024, there was a marked reduction in the importation of goods and services, coupled with a significant increase in exports. Consequently, the current account deficit narrowed substantially to USD 2,456.6 million from USD 5,306.6 million recorded in the year ending April 2023.
Foreign Exchange Reserves
Foreign exchange reserves remained adequate, reaching USD 5,264 million by the end of April 2024, sufficient to cover 4.4 months of projected imports of goods and services.
Exports
Exports of goods and services increased by 15.6% to USD 14,461.0 million compared to the year ending April 2023 (USD 12,513.3 million).
Main improvements were recorded in exports of gold, and services, particularly travel (tourism), traditional goods, horticulture products, and oil seeds.
Traditional Goods Exports
Traditional goods exports increased to USD 1,051.7 million in the year ending April 2024 up from USD 765.8 million in the corresponding period in 2023.
The increase was primarily driven by higher volumes of coffee, cashew nuts, and cotton.
Improved tobacco exports were supported by both high volumes and prices.
Non-traditional Goods and Mineral Exports
Exports of non-traditional goods increased by 4.6% to USD 6,363.3 million compared with USD 6,081.1 million in the corresponding period in 2023, driven by gold, oil seeds and horticultural products.
Gold exports reached USD 3,133.5 million from USD 2,852.4 million in the year ending April 2023, with the improvement attributed mostly to price effect.
Exports of oil seeds increased by 67.4% to USD 304.3 million.
Horticultural product exports increased by 39.5% to USD 411.3 million, with much of it emanating from vegetables and fruits.
Service and Tourism Receipts
Service receipts increased to USD 6,617.8 million from USD 5,267 million recorded in the year ending April 2023. The surge was driven by travel (tourism) and transport receipts.
The increase in travel receipts is supported by the recovery observed in the tourism industry, with tourist arrivals increasing by 21.8% to 1,938,875.
Imports
The import of goods and services declined by -5.3% to USD 13,819.2 million compared to USD 14,405.5 million recorded in the year ending April 2023.
The outturn was largely attributed to a decrease in the importation of refined white petroleum products, fertilizers, chemical products, and food/beverages mainly for
household consumption.
Meanwhile, the decline in the price of refined white petroleum products in the world market, explains the decrease in oil imports.
Services payments decreased to USD 2,260.1 million from USD 2,582.0 million in the year ending 2023, primarily due to lower freight payments consistent with a decline in import bill.
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