Tanzania’s non-traditional exports have played a crucial role in pushing up the exports of goods and services, according to the Bank of Tanzania’s monthly economic review for March. The country’s exports of goods and services increased to 12,383.1 million US dollars in the year ending February, up from 10,202.1 million US dollars in the same period last year.
Non-traditional Exports Lead the Way
The rise in exports was primarily driven by non-traditional exports, including minerals, manufactured goods, and services receipts. Minerals, particularly gold, coal, and diamonds, recorded a significant increase in exports. Coal exports, in particular, grew to 228.6 million US dollars from 23.2 million US dollars, thanks to heightened demand for an alternative source of energy due to supply disruptions caused by the war in Ukraine. Similarly, the export of diamonds increased by 66.9 million US dollars due to improved production and higher prices in the global market. Gold exports rose by 7 percent to 2,859.6 million US dollars, driven by both volume and price effects.
Manufactured goods, including fertilisers, iron, steel, and cement, also saw a significant increase of 19.9 percent to 1,490.2 million US dollars. Meanwhile, traditional exports also increased to 748.7 million US dollars from 687 million US dollars, with all traditional crop exports performing well, except for cloves.
Services Exports Also Increase
Service receipts also increased, rising to 4,995.8 million US dollars in the year to February from 3,323.5 million US dollars in the corresponding period last year. This was largely due to travel (tourism) and transport receipts. Travel receipts almost doubled to 2,700.1 million US dollars, thanks to an increase in tourist arrivals to 1,550,333 from 959,329. This figure is above the pre-pandemic level of 1,527,230 in 2019, reflecting the continued recovery of the tourism sector.
Transport receipts also increased, but to a lesser extent, rising to 856.6 million US dollars from 740.3 million US dollars. Meanwhile, other services receipts increased to 1,438.5 million US dollars from 822.8 million US dollars.
Overall, the increase in exports is good news for Tanzania’s economy and reflects the country’s continued efforts to diversify its exports beyond traditional goods. With non-traditional exports playing a key role, the country is well-positioned to take advantage of emerging market opportunities and build a more resilient economy.
