The latest Bank of Tanzania (BOT) Monthly Economic Review of February 2020 indicates that in the year ending January 2020, the value of exports of goods and services amounted to USD 9,915.6 million compared with USD 8,262.7 million recorded in the corresponding period of 2019.
The 20% growth was attributed to the increase in both the value of good exports and service receipts.
Traditional Goods Exports
The value of traditional goods exports rose to USD 935.4 million in the year ending January 2020 from USD 591.7 million in the corresponding period of 2019, following the increase in the export value of all traditional exports save for coffee, sisal, tea, and tobacco.
Cashew nuts export rose on account of an increase in volume that outweighs the impact of a decrease in unit prices.
An increase in export value for cotton was mainly due to improved export volumes, supported by good weather during the crop season.
Conversely, the weak performance of tobacco was due to low export volume and unit prices.
The price movements of traditional exports were broadly in line with developments in the world market.
Non-Traditional Goods Exports
Likewise, the value of non-traditional goods exports improved to USD 4,292.5 million in the year ending January 2020 compared to USD 3,270.1 million in the corresponding period in 2019.
All categories of non-traditional goods exports recorded an increase, except diamond, cotton yarn, and manufactured coffee.
During the period, gold, which accounted for 53.0% of non-traditional exports, increased by 45.6% to USD 2,276.9 million resulting from an increase in volume and price in the world market.
The increase in the volume of exported gold is partly associated with the establishment of mineral trading centers in Tanzania.
Similarly, manufactured goods grew by 19.3% to USD 974.9 million as a result of good performance in exports of iron and steel products, glass and glassware, manufactured tobacco, and fertilizers.
Service receipts accounted for 42.0% of total exports and amounted to USD 4,164.9 million in the year ending January 2020, higher than USD 4,014.7 million in the same period of 2019, owing to an increase in travel receipts.
Travel receipts rose by 4.4% to USD 2,557.4 million associated with the increased number of tourist arrivals.