Dar es Salaam — The rise in oil prices in the world market coupled with an increase in domestic demand particularly for thermal power generation has stimulated an increase of value of imports of goods and services.
According to Bank of Tanzania (BoT), during the year ending August this year, the value of import of goods and services was $12.78bn, compared with $10.82bn recorded in the year ending August 2011.
"The increase was largely driven by oil imports, following a rise in oil prices in the world market coupled with an increase in domestic demand particularly for thermal power generation," the BoT's Governor, Prof Benno Ndulu said in a monthly economic review report.
Prof Ndulu added, "There was also a substantial increase in imports of machinery, which is associated with an increase in gas and oil exploration activities."
Commenting about Zanzibar, the Central Bank report indicated the rise in value of capital and consumer goods imports during the months of August this year.
The Islands' value of imports goods and services increased from $200m recorded in August last year to $253.4m recorded in August this year.
In another development, increase of both volume and high price of Cotton, Tea, Cloves and Cashew Nuts in the world market has stimulated the country's traditional export.
The central bank report said the improvement in export volumes was a result of increased production following favorable weather conditions, while the increase in export unit prices was mainly associated with supply and demand factors in the world market.
Despite the good performance of traditional exports which amounted to $826.6m, a 23.7% higher than the level exported in the corresponding period in 2011, the value of coffee exports declined by 6.4% to $150.4m during August this year.