Gold, Coffee and Tea boost Tanzania’s exports value

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Coffee beans

An increase in the value of gold, coffee and tea as well as the number of tourist arrivals has enhanced the value of Tanzania’s exports by 10.3 per cent to $9.472 billion in the year ending October 2019. That was according to Bank of Tanzania Monthly Economic Review for November.

The value of non-traditional goods exports rose to $4.189 billion during the period under review, from $3.048 billion in the corresponding period in 2018.

The Central Bank said that compared with the year ending September, all major categories of non-traditional goods exports recorded growth except re-exports and fish products.

During the same period, the value of gold, which accounted for 50.4 per cent of non-traditional goods exports and 39.3 per cent of all goods exports grew by 48.3 per cent to $2.087 billion, on account of a rise in volume, partly related to government measures to strengthen supervision of mining activities in the country.

The value of manufactured goods exports rose by 41 per cent to $1.068 billion, driven by iron and steel products, glass and glassware, manufactured tobacco plus fertilisers. Conversely, the value of traditional goods exports declined by 40.5 per cent to $688.7 million in the year ending October 2019, with all traditional goods exports recording a decline save for coffee and tea, the review notes.

The increase in export values for coffee and tea was largely on account of higher volumes following favourable weather during the crop season.

In the past three years, the price movements of traditional exports were largely in line with developments in world commodity market prices, with gold leading at $2.087 billion in the year ending October 2019, from $1.590 billion in 2017, BoT said.

However, foreign exchange earnings from services, which accounted for 43.7 per cent of the total value of exports rose to $4.163 billion in the year ending October this year, from $3.962 billion in the year ending October 2018. The increase was mainly driven by a rise in travel receipts, which grew by 6.1 per cent to $2.552 billion, following an increase in tourist arrivals.