By Prosper Makene
Tanzania has recorded USD 11,671.8 million on exports of goods and services during the year to September 2022, up from USD 9,445.3 million in the similar period of 2021.
The Bank of Tanzania’s latest monthly economic review (MER) for October 2022 said that the increase was largely driven by non-traditional goods and services receipts.
The MER also said that the exports of goods increased by 7.4 percent to USD 7,195.3 million, with non-traditional exports rising by 6.6 percent. Much of the rise in non-traditional exports was recorded in diamond, textiles, iron and steel, fish and fish products and maize grain.
“Noticeable improvements have been registered in the exports of diamond, with the value surging to USD 45.8 million from USD 3.1 million recorded in the corresponding period in 2021,” the Review said.
It adds: “The development is largely explained by resumption of production at Williamson Mines after a closure and maintenance period. Meanwhile, gold, which accounted for 38.7 percent of goods exports fell to USD 2,781 million, from USD 2,886 million.”
The Review has further said that the value of exports of traditional goods amounted to USD 749.5 million, up from USD 681.8 million, supported by the increase in the exports of tobacco, cotton and sisal. On a monthly basis, traditional exports fell to USD 78.2 million from USD 83.5 million in September 2021, while nontraditional exports were USD 613.9 million in September 2022, slightly higher than USD 537.6 million in September 2021.
“Services receipts increased to USD 4,476.5 million in the year ending September 2022 from USD 2,746.6 million in year to September 2021, boosted by higher travel and transport receipts,” it said.
The MER noted that the travel receipts rose more than twofold to USD 2,243.8 million from USD 1,106 million, consistent with the rise in the number of tourist arrivals by 63.5 percent to 1,332,476. On a monthly basis, services receipts were USD 429.8 million, higher than USD 279.9 million in September 2021.
On another development, the MER went on to say that the external debt stock (public and private sector) as at end of September 2022 was USD 27,322.7 million, USD 274.6 million lower than from the level recorded at end of August 2022. During the month, disbursements amounted to USD 94 million, all in favour of the Central Government.
It pointed out that the debt service amounted to USD 48.8 million, of which USD 37.9 million was principal repayment and the balance was interest payments.
“Multilateral institutions remained dominant creditors accounting for 45.5 percent of the external debt stock, followed by commercial creditors,” the Review said.
“Transport and telecommunication activities continued to account for the largest share of the disbursed outstanding debt (DOD), followed by social welfare and education, and energy and mining activities,” it observed.
The MER underscored that composition of external debt by currency remained almost the same compared with the previous month, with the largest share denominated in USD (69.1 percent), followed by the Euro.
“The stock of domestic debt amounted to Tsh25.5 billion at the end of September 2022, Tsh310.1 billion higher than at the end of the preceding month,” the report said.
It further said that the monthly increase was mainly on account of net domestic financing and increased utilization of overdraft facility.
Composition of domestic debt remained the same, with treasury bonds and stocks accounting for 80.8 percent of domestic debt stock, reflecting continued investors’ preference to longer maturity securities.