Oil continues to dominate import bill

Oil imports have continued to take the largest share in foreign procurement accounting for 39 per cent of the total value of goods bought outside the country.

The year ended October, this year, according to the Bank of Tanzania (BoT) monthly economic report witnessed the value of oil imports increasing by 20.1 per cent to 4,217 million US dollars. 

Statistics from the Petroleum Importation Coordinator, a total of 360,000 tonnes of oil products were to be imported to cover the month of October including 222,712 tonnes of diesel gasoil, 102,653 tonnes of gasoline, 16,650 tonnes of jet fuel and 3,520 tonnes of kerosene.

The bank’s report pointed further that much of the increase on the value of imports was also observed in the imports of fertilisers and service payments. 

For example, service payments increased by 6.2 per cent to 2,509.4 million US dollars in the period under review, mainly on account of a rise in payments with respect to transportation and travel.

Transportation and travel payments accounted for 84.6 per cent of total services payment in the year ending October, this year and recorded growths of 2.9 and 7.0 per cent, respectively.

Transportation payments rose to 1,101 million US dollars compared to 1,070 million US dollars of the previous year. Similarly, travel payments increased to 1,021 million US dollars compared to 953.8 million US dollars of the year before.

According to the BoT report, the value of all imports of goods and services increased to 13,326.9 million US dollars from 13,061.8 million US dollars recorded in the year ending October 2012. 

In the meantime, the value of traditional exports fell by 9.5 per cent to 838 million US dollars compared to the level recorded in the previous year largely due to the decline in export volumes for tobacco, cashew nuts, sisal and cloves coupled with decrease in export unit prices of all crops with the exception of tea and tobacco.

The fall in export unit prices was consistent with movements of commodity prices in the world market.
Source: Daily News, reported from Dar es Salaam, Tanzania
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