Tanzania (CWBN)_ The year 2020 proved to be a favorable year for the Tanzanian economy despite the pandemic. In the year 2020, Tanzania’s revenue collection from internal market was boosted to 69 percent; the country’s inflation remained below four per cent; and the country was upgraded from low-income status to lower-middle income status by the World Bank in July. This upgrade from low to lower-middle income status was possible due to the country’s effective economic performance over the past decade which accounted for more than six per cent real GDP growth on average.
Data from the Tanzania Revenue Authority as of October 2020 reported the current account at $893.7 million, which is more than half of the $1.615 billion shortage registered at the end of October 2019. This advancement was due to a rise in exports and a decline in imports. The Tanzanian exports of products and services decreased to $8,856 billion as of October 2020 as compared to $9,393 billion in the corresponding period last year and attributed to a reduction in exports of agricultural goods such as coffee and tea and a low re-export rate.
Despite the close down of the international boundaries due to Covid-19 pandemic, the exports of traditional and non-traditional products remained steady. The revenue from traditional exports amounted to $788.5 million as of October end, with much of the contribution from cashew nuts, cotton, cloves, tobacco and sisal.
According to the recent data report from the Bank of Tanzania, exports of non-traditional products raised to $5,076 billion. The Monthly Economic Review report for the month of November reported an increase in the exports of gold, mineral concentrates, horticulture and manufactured products.
Tanzania earned a great deal in extractives compared to other industries. The profit from gold, diamonds, tanzanite, tin and other gemstones in the marketplace amounted to Tsh739 billion ($318.28 million). Gold climbed from $2,084 billion in 2019 to $2,833 billion in 2020, a rise of 35.9 per cent which is due to rise in gold prices.
