Zanzibar exports increase in 2012

 

 Bank of Tanzania

Zanzibar’s exports of goods and services during the year ending October 2012 increased to USD 159.9m from USD 155.1m recorded in corresponding period last year, the Bank of Tanzania has said in its monthly economic review for November.

Clove exports rose from 1,500 tonnes in the year ending October 2011 to 3,500 tonnes during the year under review.

However total value of imports of goods and services during the year ending October, this year also rose to USD 313.4m, from USD 219.1m recorded during the corresponding period in 2011, mainly due to a rise in the value of capital goods for infrastructure development, specifically importation of the new marine cable to replace the current one connecting Zanzibar to the national grid from Dar es Salaam.

Services account registered a surplus of USD 32.3m in the year ending October 2012, compared to a surplus of USD 30.8m recorded in the corresponding period in 2011.

The review said service receipts increased by 10.4 percent from USD 125.0m to USD 138.0m, while service payments increased to USD 105.7m from USD 94.3m.

Government expenditure during the month under review, amounted to 48.0bn/- , out of which recurrent expenditure accounted for 49.1 percent and the balance was development expenditure.

Wages and salaries and other charges amounted to 10.9bn/- and 12.7bn/- respectively while development expenditure amounted to 24.5bn/- above the estimate by 93.1 percent, mainly on account of increased inflows of foreign grants for development projects.

Out of the total development expenditure, the review said foreign funded component accounted for 67.8 percent and the balance was local contribution.

During the year ending October 2012, current account recorded a deficit of USD 46.9m, compared to a deficit of USD 30.0m registered in the year ending October 2011.

The deficit in goods account widened to USD 149.9m in the year ending October 2012, compared to a deficit of USD 94.8m recorded during the corresponding period in 2011.

This was on account of an increase in the import bill, associated with the importation of new marine cable for improvement of electricity supply to Zanzibar, the review stated.

Annual food inflation dropped to negative 0.4 percent in October 2012 from 1.0 percent registered in September 2012, mainly on account of decline in prices of rice and sugar.

However, month-to-month food inflation accelerated to 0.2 percent from negative 3.5percent, registered in September 2012, driven by increase in prices of fish, bread and vegetables.

The review said annual non-food inflation eased slightly to 11.0 percent from 11.6 percent registered in September 2012. Month-to-month non-food inflation also declined to 0.8 percent from 0.9 percent recorded in September 2012, mainly due to decrease in price of items under housing, water, electricity, gas and other fuels sub-group.

Government budgetary operations on cheques issued basis, registered a deficit after grants of 13.8bn/- in October 2012, which narrowed to 5.9bn/- after adjustment to cash.