Tanzania's External Sector: The Year Ending May 2026 at a Glance
Tanzania's current account deficit widened to USD 2,209.5 million in the year ending May 2026, from USD 2,090.9 million a year earlier — a 5.7 percent increase — as elevated global freight and commodity prices, linked to the Middle East conflict, pushed import costs up faster than export earnings. The goods account deficit widened 18.8 percent to USD 5,410.6 million, even as goods exports grew a healthy 20.4 percent on the back of record gold receipts.
The bright spot was services trade: Tanzania is a consistent net exporter of services, and that surplus grew further in the year to May 2026. Services receipts rose 14.2 percent to USD 8,051.5 million, led by travel/tourism (USD 4,419.1 million, +9.5%) and transport services (USD 3,146.3 million, +16.0%), the latter reflecting Tanzania's growing role as a regional freight and logistics corridor. Services payments rose a more modest 8.3 percent to USD 3,370.1 million, driven mainly by higher freight payments (+17.9%) tied to the same global shipping cost pressures. The result: a net services surplus of USD 4,681.4 million, which continues to be one of the most important offsets to Tanzania's persistent goods trade deficit.
On the financing side, gross official foreign exchange reserves rose to USD 5,538.8 million, up from USD 5,136.7 million a year earlier, covering 4.3 months of projected imports — supported by strong export receipts (especially gold) and the Bank of Tanzania's continued gold purchase programme.
What's Next for Tanzania's Economy? The Policy Gaps Keeping TZS 1 Trillion Out of Reach by 2050
A resilient services sector — tourism and transport in particular — is one of Tanzania's clearest external competitive advantages. TICGL's flagship analysis examines the structural policy gaps that could determine whether this advantage translates into the country's Vision 2050 (Dira 2050) ambitions.
Read the full analysis →1. The Current Account
Tanzania's current account records all transactions in goods, services, primary income (investment income, compensation of employees) and secondary income (transfers) between residents and the rest of the world. In the year ending May 2026, the current account balance was a deficit of USD 2,209.5 million, 5.7 percent wider than the USD 2,090.9 million deficit recorded a year earlier.
Chart 1 — Current Account Components, Year Ending May (Millions of USD)
Chart 2 — Current Account Balance: Monthly Snapshot (Millions of USD)
| Item | 2024 | 2025 | 2026p | % Change |
|---|---|---|---|---|
| Goods account (net) | -6,058.3 | -4,555.6 | -5,410.6 | 18.8 |
| Exports (goods) | 7,758.7 | 9,654.7 | 11,627.9 | 20.4 |
| Imports (goods) | 13,817.0 | 14,210.2 | 17,038.5 | 19.9 |
| Services account (net) | 4,174.6 | 3,939.6 | 4,681.4 | 18.8 |
| Services receipts | 6,499.4 | 7,051.5 | 8,051.5 | 14.2 |
| Services payments | 2,324.9 | 3,111.9 | 3,370.1 | 8.3 |
| Balance on goods and services | -1,883.7 | -615.9 | -729.2 | 18.4 |
| Primary income account (net) | -1,674.0 | -2,001.5 | -1,830.7 | -8.5 |
| Secondary income account (net) | 649.7 | 526.5 | 350.4 | -33.4 |
| Current account balance | -2,907.9 | -2,090.9 | -2,209.5 | 5.7 |
The widening in the goods deficit was driven by import growth (19.9%) modestly outpacing export growth (20.4%) in absolute dollar terms — imports added USD 2,828.3 million over the year while exports added USD 1,973.2 million. Encouragingly, the primary income deficit narrowed 8.5 percent to USD 1,830.7 million, mainly reflecting lower interest payments to non-residents, partially offsetting the wider goods deficit. The secondary income surplus (largely remittances/personal transfers) fell 33.4 percent to USD 350.4 million.
↑ Back to top2. Exports: Services Receipts by Category
Services receipts — Tanzania's earnings from selling services to non-residents — rose 14.2 percent to USD 8,051.5 million in the year ending May 2026, from USD 7,051.5 million a year earlier. Growth was led by travel and transport, Tanzania's two largest services export categories.
Chart 3 — Services Receipts by Category, Year Ending May (Millions of USD)
Chart 4 — Composition of Services Receipts, Year Ending May 2026p
| Category | 2024 | 2025 | 2026p | % Change (2025→2026p) | Share of Receipts, 2026p |
|---|---|---|---|---|---|
| Travel (Tourism) | 3,627.1 | 4,034.4 | 4,419.1 | +9.5% | 54.9% |
| Transport | 2,284.5 | 2,519.5 | 3,146.3 | +16.0% | 39.1% |
| Other services | 587.8 | 497.7 | 486.1 | -2.3% | 6.0% |
| Total services receipts | 6,499.4 | 7,051.5 | 8,051.5 | +14.2% | 100.0% |
Travel receipts grew broadly in line with visitor numbers: international tourist arrivals rose 5.9 percent to 2,298,900 in the year ending May 2026, with average spending per visitor also edging higher. Transport receipts — largely freight earnings from goods in transit through Tanzanian ports and corridors to neighbouring landlocked countries — grew faster still at 16.0 percent, underscoring Tanzania's expanding role as a regional trade and logistics hub even as global shipping costs rose. On a monthly basis, total services receipts were broadly flat at USD 647.5 million in May 2026 compared with the same month a year earlier.
↑ Back to top3. Imports: Services Payments by Category
Services payments — what Tanzania pays non-residents for services — rose 8.3 percent to USD 3,370.1 million in the year ending May 2026, from USD 3,111.9 million a year earlier. Unlike receipts, payments are dominated by transport (freight) costs rather than travel.
Chart 5 — Services Payments by Category, Year Ending May (Millions of USD)
Chart 6 — Composition of Services Payments, Year Ending May 2026p
| Category | 2024 | 2025 | 2026p | % Change (2025→2026p) | Share of Payments, 2026p |
|---|---|---|---|---|---|
| Transport | 1,265.3 | 1,449.1 | 1,691.8 | +16.8% | 50.2% |
| Other services | 679.8 | 1,003.9 | 976.9 | -2.7% | 29.0% |
| Travel | 379.7 | 658.9 | 701.3 | +6.4% | 20.8% |
| Total services payments | 2,324.9 | 3,111.9 | 3,370.1 | +8.3% | 100.0% |
The rise in transport payments (freight costs) of 16.8 percent was consistent with — and largely explained by — the elevated goods import bill and higher global shipping costs arising from disruption to Gulf shipping routes and the Strait of Hormuz. On a monthly basis, services payments amounted to USD 278.8 million in May 2026, up from USD 267.0 million in May 2025, again largely reflecting higher freight payments.
↑ Back to top4. Net Services Balance by Category
Comparing receipts and payments category by category shows exactly where Tanzania's services trade surplus comes from — and where it is most exposed to rising global costs.
Chart 7 — Net Services Balance by Category, Year Ending May 2026p (Millions of USD)
| Category | Receipts | Payments | Net Balance |
|---|---|---|---|
| Travel (Tourism) | 4,419.1 | 701.3 | +3,717.8 |
| Transport | 3,146.3 | 1,691.8 | +1,454.5 |
| Other services | 486.1 | 976.9 | -490.8 |
| Total services account | 8,051.5 | 3,370.1 | +4,681.4 |
5. Foreign Exchange Reserves: The Financing Context
Despite the wider current account deficit, Tanzania's external buffers strengthened. Gross official foreign exchange reserves rose to USD 5,538.8 million at end-May 2026, from USD 5,136.7 million a year earlier, sufficient to cover 4.3 months of projected imports of goods and services — above the national adequacy threshold. This buildup was underpinned by strong export receipts, particularly gold, and the Bank of Tanzania's continued gold purchase programme, which helped cushion the impact of the wider current account deficit on reserve accumulation.
↑ Back to topMuhtasari kwa Kiswahili
Katika mwaka unaoishia Mei 2026, nakisi ya urari wa malipo ya kawaida (current account) ya Tanzania iliongezeka hadi Dola za Marekani milioni 2,209.5, kutoka Dola milioni 2,090.9 mwaka uliopita, kutokana na gharama kubwa za uagizaji bidhaa nje ikilinganishwa na kasi ya ukuaji wa mauzo nje.
Hata hivyo, sekta ya huduma iliendelea kuwa nguvu kubwa ya uchumi wa nje: mapato ya huduma (services receipts) yaliongezeka kwa asilimia 14.2 hadi Dola milioni 8,051.5, yakiongozwa na utalii (Dola milioni 4,419.1, ongezeko la asilimia 9.5) na usafirishaji (Dola milioni 3,146.3, ongezeko la asilimia 16.0). Idadi ya watalii wa kimataifa iliongezeka kwa asilimia 5.9 hadi watalii 2,298,900.
Kwa upande wa malipo ya huduma (services payments), Tanzania ilitumia Dola milioni 3,370.1, ongezeko la asilimia 8.3, likichangiwa zaidi na ongezeko la gharama za usafirishaji wa mizigo (freight) kwa asilimia 16.8, kutokana na changamoto za usafirishaji duniani. Kwa ujumla, Tanzania inaendelea kuwa na ziada kubwa katika biashara ya huduma — ziada ya wavu (net surplus) ya Dola milioni 4,681.4 — huku utalii ukiwa chanzo kikuu cha faida hii, na huduma nyingine (kama ujenzi, bima, fedha na TEHAMA) pekee ndizo zenye nakisi.
Akiba ya fedha za kigeni iliongezeka hadi Dola milioni 5,538.8, ikitosha kugharamia uagizaji wa bidhaa na huduma kwa miezi 4.3, ikisaidiwa na mauzo makubwa ya dhahabu nje ya nchi.
Kwa uchambuzi zaidi wa kina kuhusu fursa na changamoto za kisera zinazoathiri ushindani wa nje wa Tanzania, soma makala kamili ya TICGL: What's Next for Tanzania's Economy?
Primary source: Bank of Tanzania, Monthly Economic Review, June 2026 (Section 2.7 — External Sector Performance; Table 2.7.1 Current Account; Table 2.7.3 Services Receipts by Category; Chart 2.7.5 Service Payments), ISSN 0856-6844, www.bot.go.tz, compiled with data from the Tanzania Revenue Authority and commercial banks. Analysis and commentary by TICGL Economic Research. All 2026 figures are provisional (p) and subject to revision. This page covers the current account, services export receipts and services import payments only; goods trade detail, external debt and reserves management are addressed in separate TICGL analyses.