Revealed: Top performers as Tanzania’s exports jump 14pc

According to the latest Monthly Economic Review of the Bank of Tanzania (BoT), exports of goods and services rose 14.2 percent in the year ended November 2024 to $15.87 billion from the $13.90 billion recorded during the corresponding period in 2023.

Diamonds led the way with an increase of 125 percent to $53.3 million from $23.7 million, with the growth being attributed to enhanced international market access and favourable pricing.

Cocoa exports saw an impressive 112.9 percent jump, reaching $89.4 million from $42.0 million the previous year. Investments in high-quality production and value addition played a pivotal role in this growth.

Cashew nuts saw a 107 percent increase in export value, which climbed from $216.7 million to $448.8 million. The increase reflects both rising global demand and improved processing infrastructure, according to the report.

The growth in exports was driven primarily by improved external demand, with manufactured goods, and service receipts also playing pivotal roles.

Goods exports surged to $8.89 billion, up from $7.77 billion in 2023, while services receipts rose by 14 percent to $6.99 billion attributed to higher tourism earnings and improved transportation infrastructure.

“Exports of goods and services continued to improve, driven primarily by recovering external demand,” the central bank said in its report.

Fastest growing exports

Mineral exports remained the cornerstone of Tanzania’s export portfolio. Gold alone accounted for $3.32 billion, representing 83.1 percent of mineral exports and 37.4 percent of total goods exports. Other minerals, including diamonds and tanzanite, also contributed positively.

The Cashewnut Board of Tanzania targets raising cashew production to 700,000 tonnes by 2025/2026 and one million tonnes by the 2029/2030 season.

“By December 31, 2024, production for the 2024/2025 season reached 406,117 tonnes, as recorded in auctions. Data collection is ongoing, with expectations to hit 425,000 tonnes,” said the board director general Francis Alfred recently.

Edible oil exports also surged, posting an 83.9 percent growth from $15.8 million in 2023 to $29.1 million in 2024. The performance underscores the country’s efforts to expand local production and reduce import dependency.

Agricultural products such as vegetables, oil seeds, and fish recorded notable increases in export value, reflecting the sector’s resilience and growing global demand for Tanzanian produce.

Traditional cash crops, including cashew nuts and tobacco, continued to bolster the export base.

Tourism boom

The tourism sector significantly contributed to service receipts, with earnings rising by 11.1 percent to $3.68 billion, according to the report.

The growth was driven by an 18.3 percent increase in tourist arrivals, which reached 2.1 million in the year ending November 2024, compared to 1.78 million in the previous year.

Despite the positive trends, the report highlighted some challenges, including depreciation of the Tanzanian shilling, which impacted import costs but also made exports more competitive.

Efforts to diversify export markets and enhance value addition in key sectors were identified as critical to sustaining the growth momentum.

With export growth outpacing import increases, the country’s current account deficit narrowed by 35 percent to $2.03 billion in the year ending November 2024.

Foreign exchange reserves also improved from $4.85 billion to $5.05 billion, covering 4.1 months of projected imports, exceeding the national benchmark.

Imports grow

Imports of goods and services grew by 2.7 percent to $16.58 billion in the year ending November 2024, according to the central bank.

Imports of goods accounted for 85 percent of the total import bill, with industrial supplies and refined white petroleum products being the major imports.

The value of imports of refined white petroleum products declined by seven percent to $2.58 billion, owing to price effects.