Tanzania’s current account gap narrows 16 pct in year to July: central bank

Tanzania’s current account gap narrows 16 pct in year to July: central bank

Tanzania’s current account gap narrows 16 pct in year to July: central bank

Tanzania’s current account deficit narrowed 16 percent in the year to July, helped by more tourism income and a decline in oil imports, its central bank said on Thursday.

The gap narrowed to $4.44 billion in the 12 months to July from $5.29 billion in the same period last year, the central bank said.

“This development came from both an increase in the export of goods and services and a decrease in goods import,” the Bank of Tanzania said in its latest monthly economic report.

Earnings from tourism, the east African country’s main foreign exchange source, rose to $2.21 billion from $1.94 billion previously due to more visitors.

Gold exports, the other main generator of foreign income, fell to $1.27 billion from $1.45 billion a year ago, reflecting lower export volumes and global prices.

Tanzania, with a population of over 45 million, is Africa’s fourth-largest gold producer after South Africa, Ghana and Mali.

Export earnings from manufactured goods rose to $1.28 billion in the year to July from $1.13 billion previously.

Imports of goods and services fell 2.6 percent to $13.56 billion, while exports rose by 9.6 percent to $9.34 billion.

The bank noted a fall in both the volume and value of oil imports, helped by lower global crude prices. Oil imports fell to $3.11 billion in the year to July from $4.16 billion previously.

The value of traditional exports led by tobacco, cashew nuts and coffee rose to $899.6 million from $841 million a year ago.

Gross official foreign exchange reserves held by the central bank in the year to July amounted to $4.22 billion, or about four months of import cover, the central bank said.