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Tanzania Exports Up by 14.8% in The Year Ending January 2024

TANZANIA ECONOMIC UPDATE JANUARY 2024

The Bank of Tanzania (BOT) released its Monthly Economic Review-February 2024 which covers key macroeconomic indicators for the year ending January 2024.

External Sector Performance

External shocks continued to exert pressure on the current account position, foreign exchange reserves, and exchange rate. Notwithstanding, the deficit in the current account has been narrowing in recent months.

In the year ending January 2024, the current account deficit was USD 2,760.7 million, compared with USD 5,160.1 million in the corresponding year.

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The outturn was largely because of a decline in the import bill following moderation in commodity prices, particularly oil, coupled with earnings from tourism activities and non-traditional exports.

Foreign Exchange Reserves

The stock of foreign exchange reserves increased to USD 5,107.1 million from USD 4,807.8 million at the end of January 2023.

The reserves were adequate to cover 4.2 months of projected imports of goods and services, and above the country’s benchmark of four (4) months.

Exports

Export of goods and services increased by 14.8% to USD 14,119 million in the year ending January 2024 from the level recorded in the preceding year. The main drivers were tourism receipts, gold, and traditional exports.

Non-traditional Goods and Mineral Exports

Export of non-traditional goods rose by 2.1% to USD 6,332 million, with much of the increase registered in exports of gold.

Exports of gold were USD 3,075.9 million, higher than USD 2,904 million in the year ending January 2023, on account of both volume and price effects.

The increase was also registered in exports of oil seeds and horticulture products, particularly vegetables, which reached USD 414.8 million from USD 293.3 million in the year ending January 2023.

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Traditional Exports

Export of traditional goods edged up to USD 989.5 million from USD 754.6 million, largely driven by exports of coffee and tobacco.

Service and Tourism Receipts

Service receipts amounted to USD 6,372.9 million from USD 4,937.1 million in the year ending January 2023, driven by travel (tourism) and transport receipts.

The rise in travel receipts reflects the rebound of the tourism sector, with tourist arrivals increasing by 22.2% to a record-breaking 1,841,750.

Month-on-month, service receipts were USD 608.4 million in January 2024 compared with USD 516.3 million in January 2023.

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