Tanzania’s new top export destination

Dar es Salaam. Dar es Salaam. Switzerland has overtaken India as Tanzania’s top export destination, a new Bank of Tanzania (BoT) report shows.

The emergence of Switzerland as the world’s largest gold buyer is the main reason for this, an analysis by The Citizen shows.

Switzerland imported 88 per cent of the 3,100 tonnes of gold produced globally in 2016, according to the US Geological Survey.

BoT’s Economic and Operations Annual Report for 2016/17 released last week shows that gold accounted for 98 per cent of Tanzania’s exports to Switzerland in 2016 valued at $753 million.

“In 2016 the value of Tanzania’s exports to Switzerland was $753 million while India’s imports from Tanzania amounted to $703 million during the same period,” the report says.

Exports to Switzerland accounted for 16.2 per cent of goods from Tanzania sold abroad in 2016, while India bought 14.8 per cent of the exports during the period under review.

India had been Tanzania’s export top destination for a while. Despite gold being the largest export item to that country, the export basket was much more diverse.

In 2015, Tanzania exported goods worth $1.2 billion to India of which 48 per cent ($540 million) were gold exports. Other major products were coconuts and cashew nuts with a combined total of 18 per cent and non-fillet fresh fish (5.8 per cent).

India was also Tanzania’s top export destination in 2014 after recording trade transactions valued at $1.09 billion, followed by South Africa with $755 million and China at $535 million.

On the other hand, in 2015 Switzerland imported goods valued at $162 million from Tanzania. Gold accounted for 82 per cent of the value of exports to Switzerland in 2015.

An official from BoT’s Department of International Economics and Trade told The Citizen that the shift in Tanzania’s top export destination has also been caused by the tendency of gold importers to change destinations.

“Gold import destinations have been changing over time. There was a time when France, China and India were leading. I think importers themselves know why they change destinations,” said the official, who asked not to be named.

Others exports to Switzerland from Tanzania in 2016 included precious metal ores (0.79 per cent), raw cotton (0.35 per cent) and cut flower (0.18 per cent). The list also included cotton yarn, coffee, vegetable oil, gas turbines, spark ignition engines, plastic houseware, legume, sowing weeds and onions.

Gold accounted for 40 per cent ($282 million) of Tanzania’s entire exports to India in 2016, followed by coconuts and cashew nuts with (30 per cent) and dried legumes (19 per cent).

The report shows that other major export destinations with percentages of Tanzania’s exports in 2016 in brackets were South Africa (13.3 per cent), China (7.5 per cent), Kenya (6.6 per cent), the Democratic Republic of Congo (6.6 per cent) and Belgium with (6 per cent).