BoT report: Earnings from goods, services export decline

Dar es Salaam. Earnings from goods and services export has declined by $199.9 million (Sh455.8 billion) in the year ended November 2018, a Bank of Tanzania (BoT) report has revealed.

The BoT Monthly Economic Review for December has indicated that earnings from exports of goods and services dwindled to $8,531.5 million in the year ended November 2018 from $8,731.4 million in the corresponding period 2017.

According to this report the value of among other goods cloves export earnings fell to $18.3 million from $48.1 million recorded in 2017 following the decline in volume exported owing to cyclical nature of the crop.

According to the BoT, a decrease in value of goods exports was largely driven by non- traditional goods exports which accounted for 38.0 per cent of export of goods and services and 71.4 per cent of goods exports.

Earnings from export of goods and services amounted to only $205.5 million in November 2018 compared with $210.0 million in 2017.

The value of non- traditional goods exports has dropped by 9.7 per cent to $3,239.0 million, with all of its major categories recording declines, put aside horticultural products while earnings from gold export, the major non-traditional goods diminish on account of a decline in volume.

Manufactured goods export income has declined by 4.4 per cent to $816.1 million in the year to November 2018, “largely as a result of decline in earnings from export of textiles, cotton yarn, footwear, fertilizer, edible oil, cement, and sisal and tobacco products”.

The value of traditional goods exports has also declined by 1.0 per cent to $885.5 million in the year to November 2018 following fall in earnings from tea, cashew nuts and cloves exports.

Cashew nuts which is notably the most valuable export crop for Tanzania had its exports earnings dropped due to volume decline associated with the resolution reached by the government to terminate raw cashew exports and opt for in-country processing of the crop.

“Meanwhile, decrease in the value of tea exports was on account of a decline in both volume and price. Cotton registered significant increase in export value owing to a surge in volume following good harvest in 2017/18 crop season, as well as higher price in the world market” the report indicate