Tanzania's current account gap narrows in year to September

DAR ES SALAAM (Reuters) - Tanzania's current account deficit narrowed 12.6 percent in the year to September, helped by a rise in tourism earnings and exports of manufactured goods while oil imports fell, its central bank said on Friday. The gap narrowed to $4.162 billion in the 12 months to September from $4.764 billion in the same period last year, the Bank of Tanzania said in its latest monthly economic report. Earnings from tourism, the main foreign exchange source, rose by 12.1 percent to $1.981 billion due to more visitors. Imports rose 1.1 percent, led by consumer goods such as pharmaceuticals, paper and plastic products. Imports of goods and services were $13.445 billion. Machinery imports fell to $1.217 billion from $1.402 billion, while oil imports fell 7.1 percent to $3.855 billion, reflecting lower demand. Earnings from gold, the other main source of foreign income, fell for the third year running, down 5.7 percent to $1.725 billion, reflecting lower export volumes and global prices. Tanzania, which has a population of around 45 million, is Africa's fourth-largest gold producer after South Africa, Ghana and Mali. The value of traditional exports - such as tobacco, cloves and coffee - was little changed at $810.9 million. Gross official foreign exchange reserves held by the central bank reached $4.3 billion, about four months of import cover, up from $4.069 billion a year ago, the central bank said.

Advertisement