The recently published Bank of Tanzania (BOT) Monthly Economic Review–May 2016 shows that the value of export of goods and services in the year ending April 2016 increased by +8.5%.
Overall exports reached USD9,953.3m, compared to USD9,879.1m in the year ending April 2015.
The improvement was mainly driven by an increase in travel (tourism) receipts and manufactured goods.
Travel maintained the leading position among foreign currency earners, before manufactured goods, gold and traditional exports, with USD2,290.4m worth of exports in the year ending April 2016, showing a year-on-year increase of +6.8%.
Foreign exchange earnings from manufactured goods increased by +11.4% to USD1,493.5m in the year ending April 2016, with a notable improvement recorded in sisal products, manufactured tobacco, textile apparel and plastic items.
Gold export declined by 5.3% to USD1,202.6m due to a fall in price by 6.8% to USD1,154.2 per troy ounce during the year ending April 2016.
According to BOT, the price of gold declined due to the strengthening of the US dollar against other major currencies.
Among Tanzania’s traditional exports, strong increases were seen in tea (USD47.8m, +8.9%), cloves (USD45.6m, +49%) and sisal (USD30.4m, +73.7%).
There was also a notable rise in export value of oil seeds, cereals, cocoa, wood products, and hides and skins.
World Commodity Prices
In April 2016, prices of Robusta coffee, tea (Average), cotton and oil went up, reaching USD1.77 per kg of Robusta coffee, USD2.50 per kg of tea, USD1.53 kg of cotton, and USD40.75 per barrel of crude oil.
Robusta coffee and cotton prices rose mainly due to high global demand. The increase in price of tea (Average) was largely attributed to a rise in expectations of production fall in India and Kenya.
Oil prices rose due to growing market sentiment that output production freeze plan in consideration by major crude oil exporters might reduce the supply of oil.