Tanzania: Zanzibar Current Accounts Record U.S. $6.2 Million Deficit

The People's Bank of Zanzibar - The People's Choice!

East African Business Week (Kampala)
BY JOSHUA MIZENGO, 17 SEPTEMBER 2012

Unguja — Zanzibar's current account recorded a deficit of $6.2m during the year ending July 2012, down from a deficit of $38.5m recorded during same period in 2011.

According to BoT's Monthly Economic Review of August, the development was mainly attributed to an increase in export of goods and services. Export of goods and services in the year ending July 2012 rose from $122.6m recorded in 2011 to $193.1m.


"This development mainly influenced by the increase in both volume and price of cloves, the central bank said. It added that the volume of clove exports rose from 2,100 tons to 4,600 tons while average export price increased from $3,638.8 per ton to $12,873.2 per ton."

The report said that the deficit in the trade account narrowed to $84.4m, from a deficit of $99.8m, on account of an increase in clove exports.

The BoT's report indicated that the value of imports of goods and services during the year ending June 2012 increased by 25.3% to $272.5m, mainly due to a rise in the value of capital and consumer goods imports.

The services account a recorded surplus of $30.6m during the year ending July 2012, compared to a surplus of $21.1 million recorded in the corresponding period in 2011. Services receipt increased to $116.4m from $107.5m, reflecting increased tourism related activities, while services payment slightly decreased to $85.5m from $86.4m, it further said.

Tanzania Mainland current account deficit of the year ending July 2012 widened to $4,130.6m from a deficit of $2,460.0m recorded in the corresponding period in 2011.

"The widening was largely associated to an increase in imports of oil and machinery," the report said.

During the year ending July 2012, the value of import of goods and services was $12,965.6m, compared with $10,270.8m recorded in the year ending July 2011.

The increase was largely driven by oil imports following a rise in oil prices in the world market coupled with an increase in domestic demand for oil for thermal power generation. There was also a substantial increase in imports of machinery for gas and oil exploration, BoT said.