THE increased usage of natural gas instead of oil for power generation has contributed to the decline of the value of imported fuel.
According to the Bank of Tanzania (BoT)
monthly economic review for June, the value of oil imports, which
constitutes the largest share in goods import, fell by 309.3 million US
dollars to 1,852 million US dollars.
Tanzania is executing power projects at
Kinyerezi that make use of natural gas for power generation. Currently,
the Kinyerezi II gas power project is progressing where by mid next year
240 megawatts will be entered into the national grid.
The value of imports of goods and
services amounted to 9,738.8 million US dollars in the year ending May
2017, about 6.6 percent lower compared with the import bill for the year
ending May 2016.
Much of the decrease was noted in oil
and capital goods. Capital goods import declined partly due to the
completion of major projects and exploration activities.
However, the value of imports of food
and food stuffs went up by 13.9 per cent to USD 480.2 million, owing to
an increase in import of sugar and cereals.
Services payment in the year ending May
2017 was 1,974.8 million US dollars compared with 2,577 million US
dollars in the year ending May 2016, largely due to decline in travel
and transportation payments.
Travel payments fell by 36.6 per cent,
while payments under transportation declined by 11.8 per cent. The
decline in transportation was consistent with the fall in goods imports.
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