Tanzania: Goods, Services Imports Up

IMPORTS of goods and services increased to 25.07tri/- (10,901.4 million US dollars) in the year ending September from 23.36tri/- (10,158.4 million US dollars) in the corresponding period 2018, largely driven by capital and intermediate goods, particularly oil.

The Bank of Tanzania (BoT) monthly economic review for October shows that capital goods imports mostly for infrastructure projects grew by 21.6 per cent to 8.83tri/- (3,840.5 million US dollars) which is 43.1 per cent of goods import.

Some of the infrastructure projects that the government is implementing are namely the construction of the Standard Gauge Railway (SGR), the 2115 megawatts Nyerere Hydropower project, bridges, flyovers and roads. Oil imports rose by 15.8 per cent to 4.96tri/- (2,158.3 million US dollars) and accounted for 22.5 per cent of goods import. The increase was associated with usage of oil for the ongoing infrastructure projects.

Services payments fell by 10.1 per cent to 4.57tri/- (1,987.9 million US dollars) in the year to September, mainly on account of a decline in travel payments.

Foreign payments for transport services, particularly freight, increased by 18.8 per cent to 2.26tri/- (986.2 million US dollars) in line with the increase in goods import.

Furthermore, the primary income account, which comprises income from capital related transactions and compensation of employees, recorded a deficit of 808.3 million US dollars in the year ending September from 871.2 million US dollars.

This was on account of increase in interest receipts from overseas investments and compensation to employees working abroad, coupled with a decline in interest payment.

The balance in secondary income account that captures unilateral current transfers was a surplus of 381.9 million US dollars, lower than 436.1 million US dollars in the year ending September last year, on account of a decline in official current transfers.

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