Tanzania's current account deficit widens on oil imports

An aerial view of Dar es Salaam city
Tanzania's current account deficit widened in the year to November despite a 47.4 percent surge in gold exports, due to a rise in oil imports for power generation, central bank data showed.

Here are key points from the Bank of Tanzania's latest report:

* In the year to November the current account deficit widened 75.1 percent to US $4.3 billion.

* Gross official foreign exchange reserves held by the central bank fell to $3.484 billion, or 4 months of import cover, from $3.735 billion a year ago.

*During the period under review, gross foreign assets of private commercial banks were $1.117 billion.

* The average interbank interest rate rose to 15.81 percent in November, from 10.09 percent in October.

* The average deposit rate stood at 2.87 percent in November, up from 2.59 percent in October, while lending rates were at 14.13 percent, down from 14.91 percent a month earlier.

* Tanzania's national debt increased to $12.588 billion in the year to November from $12.529 billion at the end of October.

* Gold, the country's top foreign exchange earner, fetched $2.194 billion in the year to November largely due to higher prices and export volumes, up from $1.488 billion a year ago. Tanzania is Africa's fourth-largest gold producer. The price of gold at the world market went up by 28.6 percent to $1.547.4 per troy ounce, while the export volume of the precious metal rose to 40.6 tons from 35.6 tons previously.

* Tourism earnings increased to $1.245 billion from $1.15 billion a year ago, helped by a rise in arrivals, the average length of stay and average expenditure per tourist per night.

* Revenue collection in November was 531.6 billion Tanzanian shillings, or 103 percent of the target.

* Imports of goods and services jumped 32.3 percent to $11.58 billion from $8.75 billion, mostly due to a rise in oil imports.

* Oil imports soared by 49.7 percent to $2.957 billion due to a rise in both volume and prices. Volumes rose 15.5 percent to 3.6 million tonnes, partly due to increased demand for oil for thermal power generation amid chronic energy shortages.

* Earnings from traditional exports -- tobacco, cotton, coffee, cashew nuts and tea -- increased to $647.6 million from $532.1 million, due to an increase in prices and volumes.

* Credit to the private sector grew at an annual rate of 30.3 percent in November from 19.2 percent a year ago.
Source: Reuters, , reported by by Fumbuka Ng'wanakilala in Dar es Salaam

Share on Google Plus

About Abduel Elinaza

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.