Manufactured goods boost up Tanzania's forex earning

Ropes made from sisal

The Bank of Tanzania (BoT) has said last week the value of export of goods and services increased by 8.6% to $9,470.7 million (Tsh.20.8 trillion) in the year ending December 2015 compared with the corresponding period in 2014. 

“The value of manufactured goods export was $1,364.5 million (Tsh3.0 trillion) compared with $1,239.6 million (Tsh.2.7 trillion) in the year ending December 2014, with significant increase being recorded in export of sisal products, cotton yarn, plastic items and textile apparel,” Prof. Benno Ndulu, the BoT Governor said.

He said in the latest monthly economic review, the good performance was mainly on account of improved export performance of manufactured goods and travel receipts, denoting tourism.

However, according to him, traditional exports, mainly cash crops, declined by 5 percent to $787.1 million (Tsh.1.7 trillion) in the year ending December 2015 from the level recorded in the corresponding period in 2014. 

“The decline was largely explained by a fall in both export prices and volumes for most of the traditional crops. With the exception of coffee, sisal and tea, prices of all other traditional exports fell, in line with changes in the world market commodity prices,” he said.

He said by contrast, non-traditional exports increased by 10.3% to $4,191.5 million (Tsh.9.2 trillion) in the year ending December 2015 from the corresponding period in 2014. The improvement was mainly on account of a good performance in export values of manufactured goods, gold, re-exports and other exports. 

He said the value of gold exports one of the dominant non-traditional exports fell to $1,279.2 million (Tsh.2.81 trillion) from $1,324.1 million (Tsh.2.92 trillion) in the corresponding period in 2014, driven by a decline in price.

Source: Business Week