Dar es Salaam — Imports of goods and services rose by 5.79 per cent in the year ending September, driven mainly by higher demand for industrial supplies, transport equipment and parts, as well as machinery and mechanical appliances.
The increase in imports underscores rising industrial activity that is critical for the country's economic expansion, as higher demand for supplies and machinery reflects growing production capacity and investment.
The latest Bank of Tanzania (BoT) monthly economic review shows that goods and services imports increased to 17.73 billion US dollars from the 16.76 billion US dollars recorded in the same period last year.
Oil import, which accounts for 16.8 of total imports, saw a notable decline to 2.47 billion US dollars largely on account of price effect.
Follow us on WhatsApp | LinkedIn for the latest headlines
On a monthly basis, goods imports amounted to 1.50 billion US dollars in September higher than 1.25 billion US dollars in September last year.
Furthermore, the BoT report shows that service payments rose to 3.09 billion US dollars in the year ending September up from 2.60 billion US dollars recorded in the corresponding period last year, reflecting increased freight payments, in line with the increase in import bill.
Month-on-month, service payments were 288.2 million US dollars in September up from 270.8 million US dollars in September last year.
ALSO READ: BoT's new monetary policy stabilizes the Tanzanian shilling
On the primary income account, the deficit widened to 2.07 billion US dollars in the year ending September, up from 1.76 billion US dollars in the corresponding period last year, indicating increased outflows related to investment income and other primary obligations.
According to the Bank report, the widening primary income deficit was mainly driven by higher payments of income on equity and interest to foreign investors.
On a monthly basis, the primary account deficit amounted to 221.2 million US dollars in September up from 159.5 million US dollars in September last year.
The secondary income account posted a surplus of 471.2 million US dollars down from 585.2 million US dollars in the corresponding period last year, with the performance largely sustained by personal transfers despite the overall decline.
On a monthly basis, the surplus was 18.4 million US dollars in September, a decrease from 40.7 million US dollars in September last year.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
