Tanzania's Export-Led Economic Growth and Trade Dynamics
In the year ending March 2024, exports of goods and services showed robust growth, rising by 13.6 percent to reach USD 14,301.4 million. This significant increase was primarily driven by various factors, including strong performances in traditional goods, particularly in exports of tobacco, coffee, cotton, and cashew nuts. These traditional goods exports saw a substantial increase from USD 758.4 million to USD 1,031 million. This growth can be attributed to both price and volume effects.
Non-traditional goods exports also saw a notable increase, rising by 1.3 percent to USD 6,286.7 million. The main contributors to this growth were gold, horticultural products, and oil seeds. Gold exports, in particular, stood out, amounting to USD 3,106.6 million, which accounted for nearly half of all non-traditional exports. The increase in horticultural product exports, driven by a rise in vegetable exports, especially melons and chickpeas, also played a significant role in this growth.
Service receipts, totaling USD 6,562.2 million, also saw a substantial increase from the previous year, driven mainly by travel and transportation receipts. The recovery of the tourism sector played a significant role in this increase, with tourist arrivals recording a notable annual increase of 21.9 percent to 1,919,447. This recovery is consistent with the global tourism industry trends. On a monthly basis, service receipts reached USD 542.3 million in March 2024, compared to USD 481 million in March 2023.
In contrast, imports of goods and services declined to USD 16,033.5 million in the year to March 2024 from USD 17,124.2 million in the corresponding year. This decline was mainly due to decreases in imports of refined white petroleum products, fertilizers, and industrial supplies. On a monthly basis, goods imports were USD 1,148.3 million in March 2024 compared to USD 1,170.7 million in March 2023.
Service payments also declined to USD 2,265.5 million compared with USD 2,578.6 million in the year ending March 2023. This decrease was primarily due to a decline in freight payments following a fall in imports.
The primary income account deficit widened to USD 1,504.4 million from USD 1,362.4 million recorded in the year to March 2023, mainly due to higher interest payments abroad. On a monthly basis, the primary account recorded a deficit of USD 108.4 million, higher than the deficit of USD 99.5 million in March 2023.
On a positive note, the secondary income account balance improved to a surplus of USD 652.9 million from a surplus of USD 612.8 million in the year ending March 2023. This improvement was primarily due to an increase in personal transfers. On a monthly basis, the secondary income account recorded a surplus balance of USD 45.2 million in March 2024, slightly lower than USD 50.4 million in a similar period in 2023.