Tanzania’s exports skyrocket to $12.76bn/- in June 2023, propelled by non-traditional trade and tourist surge.

Tanzania’s exports skyrocket to $12.76bn/- in June 2023, propelled by non-traditional trade and tourist surge.

In a notable economic shift, Tanzania witnessed a surge in its exports of goods and services, with figures reaching $12.76 billion in June 2023—a substantial leap from the $11.004 billion reported during the same timeframe in the previous year. This remarkable expansion can be attributed to the nation’s non-traditional exports, as highlighted in the Bank of Tanzania’s (BoT) Monthly Economic Review for July 2023.

The review points to a 4.2 per cent annual growth in non-traditional goods exports, predominantly fueled by the export of minerals, particularly gold, coal, and diamonds. Of notable mention is coal, which experienced a remarkable surge, with export values soaring from $57.6 million in the previous year to a staggering $229 million in the year leading up to June 2023. This surge can be attributed to heightened demand following supply disruptions triggered by the conflict in Ukraine.

Diamond exports also underwent a significant transformation, nearly doubling in value from $29.6 million in June 2022 to $46.9 million, primarily due to favourable price dynamics. Gold, another vital export commodity, saw an upswing driven by volume-related factors.

The export of manufactured goods also contributed to this upward trajectory, with a growth rate of 6.1 per cent, amounting to $1.402.2 billion. Notably, this growth was propelled by fertilizers and cement. On the other hand, traditional goods exports experienced a modest uptick, rising from $737.8 million to $752.3 million. This increase was predominantly driven by key products such as tobacco, cotton, and coffee.

Zooming in on a monthly perspective, traditional goods worth $21.5 million were exported in June 2023, differing from the $30.9 million figure from the same month in 2022. Concurrently, non-traditional exports saw an uptick, reaching $584 million, up from $545.3 million in the previous year.

The services sector played a significant role in this economic narrative, with service receipts amounting to $5,398 million in June 2023, a substantial rise compared to the $3,906.7 million recorded in the year ending June 2022. Travel and transportation receipts stood out as major contributors to this growth, notably driven by an impressive 45.9 per cent increase in tourist arrivals—a historical high of 1,638,850 visitors.

Examining the monthly aspect, services receipts in June 2023 stood at $513.7 million, surpassing the $390.5 million figure from the corresponding month in 2022.

However, the story of growth also saw its counterpart in service payments, which escalated to $2,537.4 million in the year leading up to June 2023 from $2,002.4 million in the same period of 2022. This increase was primarily driven by rising freight payments, aligning with the nation’s growing import expenditure.