Gold retains dominance in forex generations

Gold exports have continued to play a significant role in the country’s foreign earnings because of price appreciation of the precious metal in the world market.
  
The value of gold exports, according to the Bank of Tanzania’s (BoT) monthly economic review for June this year, increased by 30.4 per cent to 2,330.7 million US dollars (3.72tri/-) largely because of about 22 per cent rise in the world market to 1,671 US dollars (over 2,670/-) per troy ounce. 

“The volume of gold exports also went up to 38.4 tonnes from 37.4 tonnes recorded during the year ending June 2011,” noted the report. 

Commenting on the Bank report Dr Dothath Olomi, the chairman of the Institute of Management and Entrepreneurship Development, said, however, there was great need to enhance export based agriculture products to enable the nation gets sustainable foreign earnings.

“Although gold contributions to country’s exports are enormous, the benefits accrued were still minimal due to the nature of the investments and contracts signed,” he observed, cautioning over the signing other contracts, especially on the gas sector, to ensure win-win situation.

He urged stakeholders led by the government to increase investments in agro-based products to fill the supply constraints gap and harness potential benefits emerging from the neighbouring countries like Burundi, Rwanda, Democratic Republic of Congo (DRC), Kenya and Uganda.

Some of the commodities to the neighbouring countries are cement, textile apparels, edible oil, plastic items, iron and steel products, wheat flour and paper goods. 

In the BoT report, the value of export of goods and services in the period under review was 7,990.2 million US dollars (12.78tri/-) compared to 7,050.7 million US dollars (11.28tri/-) recorded during the year ending June 2011. 

The improvement was largely on account of increase in gold exports and travel receipts. Traditional exports amounted to 761.1 million US dollars (1.22tri/-), which is 9.2 per cent higher than the level exported in the corresponding period in 2011.

The development was mainly attributable to an increase in both export volumes and prices of cotton, tea, cloves and cashew nuts. Exports value of tobacco declined by 5.9 per cent to 271.9 million US dollars (435.04bn/-) mainly due to decrease in the world market prices.

The value of non-traditional exports was 4,108 million US dollars (6.57tri/-), compared to 3,560.5 million US dollars (5.69tri/-) recorded during the year ending June 2011 dominated by gold and manufactured goods.
Source: The Daily News,http://dailynews.co.tz, reported by Sebastian Mrindoko
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