BoT says Covid-19 leads to decline of exports in goods and services

27Sep 2021
The Guardian Reporter
DAR ES SALAAM
The Guardian
BoT says Covid-19 leads to decline of exports in goods and services

THE value of exports of goods and services declined by U$ 405.3 million from U$ 9,382.1 million to U$ 8,976.8 million in July, 2021 as compared to the corresponding period last year.

Bank of Tanzania governor, Professor Florens Luoga

According to Bank of Tanzania (BoT) Monthly Economic Review for August 2021, the decline was observed in travel receipts, reflecting the impact of the coronavirus pandemic. “Exports of goods increased by five percent to U$ 6,473.1 million, with non-traditional exports rising by U$ 703.1 million to U$ 5,562.8 million,” the central bank report said.

The report however, said the country recorded a notable increase from the exports of gold, manufactured goods and horticultural products. “Gold exports increased by U$ 261.9 million to U$ 2,990.5 million and accounted for 53.8 percent of non-traditional exports. This was largely boosted by high prices in the world market,” the BoT stated.

The export of manufactured goods increased by 36 percent to U$ 1,116.2 million while horticultural products increased to U$ 332 million from U$ 194.6 million. “Exports categorized under other sub-group surged by 84.1 percent to U$ 739.3 million, mostly due to an increase in exports of rice and beans to neighbouring countries, and oilseeds to Asia,” the MER said.

On a month-to-month basis, export value of non-traditional goods slightly decreased to U$ 591.4 million from U$ 596.3 million in July 2020. Traditional exports decreased by U$ 593.7 million during the period from U$ 991.4 million largely due to low prices, owing to subdued demand in world market attributable to effects of the Covid-19 pandemic. “The decline was observed in all traditional export crops, except coffee and sisal,” the central bank’s MER stated.

Meanwhile, the value of imports of goods and services increased to U$10,044.9 million in the year ending July 2021 from U$ 9,853.3 million in the corresponding period in 2020, mainly because of a rise in imports of machinery and all consumer goods except food and foodstuffs.

The BoT report said the value of goods imported during the period increased to U$ 8,716.5 million from U$ 8,301.3 million. “Oil imports, which constituted 18.4 percent of all goods imports, rose moderately by 5.7 percent to U$ 1,601.5 million,” the report added.

Oil prices have been rising since June 2021, contributing to the increasing imports bill. Similarly, on a monthly basis, goods import bill increased by U$ 129.5 million to U$ 757.1 million in July 2021 as compared to the corresponding period last year.

 

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