Tanzania: Imports Bill for Goods, Services Nosedives

The decrease in imports of capital and intermediate goods pulled down imports bill for goods and services to 8,966.4 million US dollars in the year ending November from 10,516.9 million US dollars

registered in the corresponding period in 2019.

According to Bank of Tanzania (BoT) monthly economic review for December, much of the decrease was recorded in transport equipment and oil.

The value of oil imports, which accounted for 17.1 per cent of goods imported declined by 28.8 per cent to 1,310.6 million US dollars owing to decrease in both price and volume.

Meanwhile, the value of transport equipment dropped by 34.7 per cent to 750.0 million US dollars.

On monthly basis, imports bill for goods decreased to 635.7 million US dollars from 734.1 million US dollars recorded in November 2019, with much of the decline recorded in imports of oil, transport equipment, industrial raw material, and building and construction material.

Meanwhile, service payments amounted to 1,318.1 million US dollars in the year ending November, lower than 1,776.4 million US dollars in the year ending November last year due to decrease in travel payments.

On month-to-month basis, service payments declined by 43.9 per cent to 93.0 million US dollars in November 2020, largely explained by low travel payments associated with containment measures to limit the spread of Covid- 19. Primary income account, which comprises income from compensation of employees and capital related transactions, narrowed to a deficit of 954.7 million US dollars from 994.6 million US dollars recorded in the year ending November 2019, largely due to decrease in income payment.

Likewise, on monthly basis, deficit in the primary income account widened by 24.6 per cent to 87.7 million US dollars in November this year compared with the corresponding month in 2019.

Secondary income account- that captures unilateral current transfers-recorded a surplus of 262.5 million US dollars compared to a surplus of 389.3 million US dollars recorded in the corresponding period in 2019, following a decline in inflows.

On monthly basis, the secondary income account recorded a surplus of 2.4 million US dollars in November this year lower than a surplus of 50.3 million US dollars during the corresponding month in 2019, mainly on account of decrease in official transfers.