Tanzania Import Bill Up

TANZANIA import bill for goods and services went up in the year ending October with capital and intermediate goods registering significant increase that are used in the implementation of the mega

infrastructure development projects across the country.

During the reference period, imports of goods and services grew by 7.3 percent to 10,895.8 million US dollars in the year ending October compared to 10,357.4 million US dollars in the corresponding period last year which was driven largely by increase of goods import.

The Bank of Tanzania (BoT) monthly economic review for November shows that all major categories of goods import registered growth with capital goods namely transport and machinery as well as building and construction.

The other category of goods import is intermediate goods including industrial materials, oil imports and fertilisers also recorded significant increases.

During the reference period, capital goods registered 42.8 per cent change compared to 17.2 per cent while the percentage change for intermediate goods was 32.6 compared to 11.6 in the preceding year.

The increase in the value of capital and intermediate goods import was much associated with the on-going mega infrastructure projects in the country.

Oil imports registered 22.5 per cent change in the period under review to 155.6 million US dollars compared to 168.9 million US dollars in the preceding month.

Conversely, foreign payments for services declined by 8.6 percent to 1,987.2 million US dollars in the year to October owing to lower travel payments.

Meanwhile, the payments for transport services increased by 18.9 percent in line with the increase in goods import.

Primary income account, which comprises income from capital, related transactions and compensation of employees, recorded a deficit of 813.1 million US dollars in the year to October compared with a deficit of 867.9 million US dollars a year earlier.

Meanwhile, the balance in secondary income account that captures unilateral current transfers narrowed to a surplus of 394.6 million US dollars from a surplus of 444.4 million US dollars, owing to a decline in official inflows.