The Bank of Tanzania (BOT) Monthly Economic Review of July 2020 shows that in the year ending June 2020 exports continued to improve as many economies were re-opened from the COVID-19 pandemic lockdown.
Exports of goods and services amounted to USD 9,773.6 million in the year ending June 2020 compared with USD 8,716.1 million in the year ending June 2019.
Exports of goods rose to USD 6,160.4 million from USD 4,598.8 million and accounted for 63.0% of total exports from 52.7%.
In June 2020, the value of exports of goods and services amounted to USD 548.2 million, lower compared with USD 757.6 million in June 2019.
The decline occurred in service receipts, which mainly comprises receipts from tourism. Foreign exchange earnings from tourism decreased due to travel restrictions and lockdown in source countries.
Traditional exports nearly doubled to USD 1,020.9 million in the year ending June 2020 from USD 518.0 million in the corresponding period in 2019, and accounted for 16.6% of exports of goods and 10.4% of exports of goods and services.
The increase was manifested in exports of cashew nuts, cotton, cloves and sisal exports. Cashew nuts and sisal exports rose on account ofnincrease in both volume and prices.
Exports of cotton and cloves rose due to the increase in volume as a result of high production. On month to month, the value of traditional good exports declined to USD 15.6 million in June 2020 from USD 18.3 million in the corresponding month in 2019.
Non-traditional exports improved to USD 4,579.4 million in the year ending June 2020 compared with USD 3,662.7 million in the corresponding period in 2019.
The export value was 46.8% of export of goods and services and 74.3% of exports of goods. Much of the increase was driven by the export of gold and horticultural products.
Export of gold increased by 48.5% to USD 2,591.3 million in the year ending June 2020, and accounted for 56.6% of value of nontraditional exports and 42.1% of total exports of goods.
The increase was largely on account of price effect. The price of gold in the world market rose from USD 1,263.8 per troy ounce in June 2019 to USD 1,562.5 per troy ounce in June 2020, driven by rising preference of investors over gold as alternative financial assets in the wake of COVID-19.
On month-to-month, the export of gold amounted to USD 247.8 million in June 2020 compared with USD 178.5 million in the corresponding month in 2019. The increase was mostly due to price effects.
Service receipts amounted to USD 3,613.2 million in the year ending June 2020, lower than USD 4,117.3 million in June 2019.
Travel receipts, which mainly comprise receipts from tourism, declined by 15.2% to USD 2,126.1 million following a decrease in number of tourist arrivals due to COVID-19 pandemic.
In June 2020, travel receipts dropped to USD 16.4 million compared with USD 209.0 million in June 2019. This was due to measures adopted by many countries to limit the spread of COVID-19, which included suspension of international flights and lockdowns.
Despite the low performance, the share of travel receipts in earnings from services remain dominant, accounting for 58.9%.