Tourism was Tanzania’s biggest foreign exchange earner in the year ended October 2024 followed by gold, according to latest Bank of Tanzania statistics. PHOTO | FILE
By Junior Mambali and Rosemary Mirondo
Dar es Salaam. Soaring gold prices and a flourishing tourism industry have continued to drive Tanzania’s foreign earnings and improve the performance of the country’s external sector.
According to the Bank of Tanzania’s Monthly Economic Review for November 2024, the current account deficit narrowed to $2.21 billion in the year ended October 2024 from $3.28 billion recorded during the previous corresponding period.
The performance was attributed to increased export earnings, particularly from gold and tourism, despite a slight increase in imports.
In the year to October 2024, the value of gold exports increased to $3.3 billion from $2.99 billion.
During the 12-month period, gold was the second largest foreign exchange earner after tourism, which brought in $3.23 billion, up from $3.68 billion.
Gold accounted for 21.4 percent of the country’s total export earnings, reinforcing its position as a key pillar of the external sector.
Exports of goods and services surged by 12.9 percent to $15.5 billion during the period under review, driven by higher gold prices and record performance in tourism.
Tourism also significantly contributed to the economy, with receipts rising by 19.7 percent to $3.68 billion and tourist arrivals reaching a record 2,095,919.
The sector contributed 52.8 percent of total service receipts, reflecting the success of sustained promotional efforts by the government and private sector players.
Imports of goods and services increased by 2.3 percent to $16.5 billion.
The modest increase in imports and the strong performance of exports played a pivotal role in reducing the current account deficit.
BoT governor Emmanuel Tutuba attributed the increase in gold prices and production to several factors, saying it reflects global economic trends such as inflationary pressures, increased demand for safe-haven assets and geopolitical uncertainties.
“Additionally, increased gold production enhances supply and stabilises the market. These combined factors have pushed up gold production and prices,” he said.
The price of gold has surged from $2,020 per ounce in June 2023 to $2,200 in November of the same year.
By November 2024, it had reached $2,650 per ounce and recently climbed even further to $2,663.
For his part, Tanzania Travel Company Limited director Samuel Diah said there was a notable increase in the number of international and domestic tourists alike.
”It’s now common to see residents of, say, Dar es Salaam travel to other regions for leisure and vice versa, unlike in the past,” he said.
Mr Diah, who is also the chairman of the Tanzania Local Tour Operators, pointed out that the sector’s growth is clearly visible, with most accommodation facilities such as Airbnb’s being fully booked.
