External Sector Strengthens: 34.3% Year-on-Year Improvement in Current Account Deficit
Tanzania's external sector demonstrated remarkable resilience and improvement in November 2025, with the 12-month cumulative current account deficit narrowing substantially to USD 3.43 billion, representing a significant 34.3% year-on-year improvement from USD 5.22 billion recorded in November 2024. This positive trajectory was primarily driven by robust tourism receipts, enhanced transport services, and a strategic balance between export growth and import moderation.
The current account performance in November 2025 reflects a fundamental strengthening of Tanzania's external position. The substantial narrowing of the deficit from USD 5.22 billion to USD 3.43 billion demonstrates improved export competitiveness, particularly in service sectors, and effective economic policies that have enhanced external sustainability.
| Period | Current Account Balance (USD Million) | Year-on-Year Change |
|---|---|---|
| November 2024 | -5,217.3 | — |
| October 2025 | -3,622.4 | +30.6% |
| November 2025 | -3,425.7 | +34.3% |
Services exports reached USD 6.80 billion for the 12-month period ending November 2025. Tourism dominated with USD 3.79 billion (55.8%), while transportation services contributed USD 2.08 billion (30.6%), reinforcing Tanzania's role as a regional logistics hub.
| Service Category | Amount (USD Million) | Share |
|---|---|---|
| Travel (Tourism) | 3,791.4 | 55.8% |
| Transportation | 2,079.3 | 30.6% |
| Other Business Services | 451.5 | 6.6% |
| Government Services | 257.3 | 3.8% |
| Telecommunications & ICT | 222.6 | 3.2% |
| Total | 6,802.1 | 100% |
Services payments totaled USD 5.47 billion, with transportation accounting for USD 2.46 billion (44.9%), reflecting freight and logistics costs typical for a trade-dependent economy.
| Service Category | Amount (USD Million) | Share |
|---|---|---|
| Transportation | 2,458.9 | 44.9% |
| Other Business Services | 1,333.7 | 24.4% |
| Travel | 777.2 | 14.2% |
| Government Services | 464.5 | 8.5% |
| Telecommunications & ICT | 438.6 | 8.0% |
| Total | 5,472.9 | 100% |
Tanzania achieved a net services surplus of USD 1.33 billion, with receipts significantly exceeding payments. This surplus was crucial in offsetting the merchandise trade deficit.
| Item | Amount (USD Million) |
|---|---|
| Total Services Receipts | 6,802.1 |
| Total Services Payments | 5,472.9 |
| Net Balance | +1,329.2 |
Tanzania's external sector performance in November 2025 represents a significant milestone. The 34.3% improvement in the current account deficit to USD 3.43 billion, driven by tourism-led services exports of USD 6.80 billion and a net surplus of USD 1.33 billion, demonstrates structural economic strengths and effective policy implementation.
Moving forward, sustaining this momentum requires continued investment in tourism infrastructure, competitive exchange rates, and policies supporting export competitiveness. The external sector's resilience provides a solid foundation for Tanzania's broader economic development objectives.