Tanzania's Zonal Trade Dynamics: 2022/23 Overview

The trade surplus decreased in most zones, except for the Southern Highlands zone, due to various factors such as changes in exports and imports of different products.

This research provided data and information pertain to the trade balance of a particular region or country for the fiscal year 2022/23, with a focus on trade with neighboring countries:

Trade Balance in 2022/23: The trade balance with neighboring countries for the fiscal year 2022/23 was a surplus of TZS (Tanzanian Shillings) 6,018.5 billion.

Change Compared to Previous Year: This surplus is lower by 10.1 percent when compared to the surplus registered in the preceding year (presumably 2021/22).

Trade Surplus by Zones: The data also provides information about how the trade surplus changed in different geographic zones. Here's a breakdown of that information:

• Lake Zone: The surplus in the Lake zone, which accounted for 66.3 percent of the total trade surplus, narrowed. This means that the trade surplus decreased in this zone. This narrowing was primarily due to an increase in imports that exceeded the rise in exports. Some of the imported items included furniture, electronics, iron sheets, timber, and cosmetics.
• Northern Zone: The trade surplus in the Northern zone also narrowed. This narrowing was mainly because exports, particularly of fruits, vegetables, and manufactured goods, decreased. Additionally, there was an increase in imports of electrical machinery and equipment, liquefied petroleum gas, sugarcane molasses, paper and paperboard, and plastic items.
• South Eastern Zone: In the South Eastern zone, the trade surplus also narrowed significantly. This narrowing was substantial, with a decrease in export rates of -73.8% and a decrease in import rates of -53.7%. The trade balance rate in this zone was -76.1, indicating a significant reduction in the surplus.
• Southern Highlands Zone: The Southern Highlands zone was an exception to the trend of narrowing surpluses. In this zone, the trade surplus increased by 12.3%. Export rates increased by 3.1%, while import rates decreased by -3.5%.

Policies and external factors (global economic conditions, trade agreements, etc.) can significantly influence trade balances, and a more in-depth analysis would be needed to fully understand the reasons behind the trends observed in each zone.

This research provided data and information about the trade balance in different zones for the fiscal year 2022/23 can offer some insights into the social and economic growth of these zones:

Economic Activity and Development:

• The zones with a trade surplus (Lake zone and Southern Highlands zone) indicate that they are exporting more goods than they are importing. This can be a sign of economic productivity and competitiveness in these zones.
• The Southern Highlands zone, in particular, experienced an increase in its trade surplus, which could suggest economic growth and improved competitiveness in that region.

Challenges in the Northern Zone:

• The Northern zone experienced a narrowing trade surplus, primarily due to a decrease in exports and an increase in imports of various items. This could indicate economic challenges in this zone, such as reduced demand for its products or increased reliance on imported goods.

South Eastern Zone's Economic Challenges:

• The South Eastern zone faced a significant reduction in its trade surplus, with a trade balance rate of -76.1. This suggests that this zone is heavily reliant on imports, which may have outpaced its exports. Such a situation can be indicative of economic challenges and potential imbalances.

Trade Composition:

• The types of goods traded can provide insights into the economic structure of each zone. For example, the import of items like furniture, electronics, and cosmetics in the Lake zone may indicate changing consumer preferences or increased urbanization.
• The decrease in exports of fruits, vegetables, and manufactured goods in the Northern zone could signal challenges in the agriculture or manufacturing sectors.

Social Implications:

• While the data primarily focuses on economic aspects, changes in trade balances can have social implications. For example, a narrowing trade surplus or trade deficit may affect employment opportunities and income levels in a region.