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Gold, traditional exports, travel hike country`s export earnings

24th March 2012
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The average world market prices of agricultural and non agricultural commodities recorded notable increase during the year ending November last year the latest Bank of Tanzania monthly economic review has said.

According to the BoT’s December 2011 review, an increase in prices of coffee was largely attributed to a decline in coffee production following unfavourable weather condition in Brazil, Columbia and Vietnam.

The rise in demand for coffee in emerging markets such as China and India also contributed to rise in prices of coffee particularly Arabica, the review said.

Price of cotton rose largely due to strong demand for cotton in China, likewise, the average price of sisal increased due to the rise in global demand for sisal.

The average price of cloves also went up following a strong demand for cloves coupled with low cloves production in Indonesia following an outbreak of a clove disease.

According to the review the average prices of crude oil and white petroleum products notably went up following decline in oil inventories in the US, coupled with the political instability in Middle East countries. Likewise, the price of gold went up mainly due to increased demand for gold as a safe investment.

The review further noted that value of export of goods and services was USD6,776.2m compared to USD5,652.6m recorded in the year ending November 2010.

The improvement was largely on account of increases in: gold prices in the world market; traditional exports and travel receipts.

Improved performance in traditional exports was mainly due to the increase in: export volumes and export unit prices of coffee and cloves; volumes of tea and tobacco and export unit prices of cashew nuts, the review noted.

The value of non-traditional exports increased by 21.3 percent from that recorded in the year ending November 2010 to reach USD3,746.2m. Gold and manufactured goods accounted for slightly above 80 percent of the total.

According to BoT the increase in gold exports is largely attributed to a rise in gold price in the world market and export volume.

The price of gold went up by 28.6 percent to USD1,547.4 per troy-ounce and the export volume increased to 40.6 tons from 35.6 tons recorded during the year ending November 2010.

During the year ending November 2011, services receipt were USD2,382.5m compared to USD2,031.7m recorded in the year ending November 2010.

Much of the increase emanated from travel and transportation receipts that accounted for about 80 percent of total receipts.

According to the 2010 International Visitors’ Exit Survey Report, the increase in tourism earnings is due to a rise in the number of international visitors, the average length of stay and average expenditure per person per night.

The survey identified Italy, the UK and US as the major tourist source markets for Tanzania. The findings show that wildlife tourism is the main activity in Tanzania, followed by beach tourism and mountain climbing. The survey further pointed out that roads and airport facilities are unsatisfactory.

The good performance in transportation receipts is mainly attributed to the increase in volumes of transit goods to and from neighbouring countries by 9.4 percent to 892,043 tons. Imports of goods and services were USD11,580.2m compared to USD8,752.7m recorded during the year ending November 2010.

 

The value of oil imports increased by 49.7 percent to USD 2,957.3 m, the increase being driven by a rise in volume and prices for oil in the world market.

Imported oil volume increased by 15.5 percent to 3.6 million tons, partly associated with increased demand for thermal power generation.


SOURCE: THE GUARDIAN
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