GRANTS, foreign direct investment and external borrowing contributed to a 402 million US dollars (about 643.2bn/-) surplus in the country's balance of payment for the year ended November 2012.
The corresponding period in 2011 recorded a deficit of 281.1 million US dollars (about 449.76bn/-). Consequently, according to the Bank of Tanzania (BoT) monthly economic report for November, last year, the gross official reserves amounted to 3,883.6 million US dollars (about 6.21tri/-), sufficient to cover about 4 months of import of goods and services.
In the same period, gross foreign assets of the banks stood at 895.6 million US dollars (about 1.43tri/-) compared to 1,117.5 million US dollars (about 1.78tri/- ) recorded a year earlier.
Also an increase in receipts from travel, manufactured goods and traditional exports made the value of export of goods and services to rise to 8,531.7 million US dollars (around 13.65tri/-) compared to 7,384.4 million US dollars (11.82tri/-) at the corresponding period.
An increase in export volumes and unit prices of traditional crops including tobacco, cotton and coffee made the value of traditional exports jump to 907.7 million US dollars (1.45tri/-) compared to 684.3 million US dollars (1.09tri/-) in 2011.
"The improvement in export volumes was a result of increased production following favourable weather conditions among others, while the rise in unit export prices was mainly associated with increase of prices in the world market," stated the report.
The value of non-traditional exports was 4,186.6 million US dollars (6.69tri/-), which is 11.8 per cent higher than the level recorded in 2011, mostly driven by an increase in manufactured goods and minerals.
The value of manufactured goods increased by 23.6 per cent to 1,073.7 million US dollars (1.72), partly associated with improved industrial production as power supply continues to stabilize. Similarly, the value of other exports increased to 538.7 million US dollars (861.92bn/-) from 332.5 million US dollars (532bn/- ) recorded in 2011.
Most of the increase was recorded in the exports of edible vegetables, oil seed and cereals. Gold and manufactured goods continued to account for the largest share of the total nontraditional exports.
However, the increased imports made the current account to record a deficit of 3,761.1 million US dollars (6.02tri/-) compared to 3,602.2 million US dollars (5.76tri/-) recorded in the corresponding period in 2011.
The value of import of goods and services was 13,005.3 million US dollars (20.8tri/-), which is 12.3 per cent higher than the level imported in the year before largely driven by oil imports, due to rise in prices in the world market. There was also a substantial increase in imports of machinery, which is associated with an increase in gas and oil exploration activities.