Tanzania: High Imports Bill Widens Zanzibar Current Account Deficit

Zanzibar’s current account deficit widened to 314.8 million US dollars in the period ending September this year from 195 million US dollars registered in the corresponding period last year.

According to the Bank of Tanzania (BoT) monthly economic review, the development was large, associated with an increase in imports bill that outweighed the impact of an increase in exports during the year ending August.

Imports of goods and services rose to 500.7 million US dollars under the reviewed period from 382 million US dollars recorded in the corresponding period last year largely due to increases in imports of intermediate and consumer goods.

Intermediate goods imports rose to 332.1 million US dollars from 188.4 million US dollars mainly due to an increase in imports of industrial supplies, fuel and lubricants particularly white petroleum products as well as food and beverages including particularly edible oil and wheat as compared to the corresponding period last year.

The rise in imports of consumer goods was recorded in food and beverage for household consumption, non-industrial transport equipment and other consumer goods categories.

On a month-to-month basis, imports amounted to 45.1 million US dollars in August this year compared to 31.4 million US dollars in July and 31.4 million US dollars in August last year.

During the period under review, exports of goods and services rose to 181.6 million US dollars up from 142.8 million US dollars recorded in the year ending August largely due to an increase in receipts from cloves and tourism, respectively.

The service receipts increased by 3.9 per cent to 104.2 million US dollars while cloves exports rose to 50.6 million US dollars from 17.3 million US dollars recorded in the corresponding period last year.

On a month-to-month basis, goods exports increased to 5.3 million US dollars in August compared to 2.1 million US dollars in July but decreased compared to 17.7 million US dollars in August last year.