DAR ES SALAAM — Tanzania’s current account deficit has dropped significantly to $2.16 billion in the year ending February 2025, down from $2.91 billion in the same period last year, thanks to stronger export performance across key sectors.
This is according to the Bank of Tanzania’s latest Monthly Economic Review, which attributes the improvement to growing foreign earnings from goods and services as the country intensifies trade and diversification efforts.
“The increase in earnings from goods and services exports not only helped narrow the current account deficit but also signals stronger foreign exchange inflows, which are crucial for stabilising the shilling, supporting foreign reserves and creating more room for economic growth,” the central bank stated.
Exports Drive Gains
During the period under review, Tanzania’s exports of goods and services rose by 18.8%, reaching $16.74 billion, compared to $14.09 billion in the previous year. The growth was led by stronger gold exports, a rebound in tourism, increased agricultural exports, and higher transportation revenues.
On a monthly basis, goods exports in February 2025 alone surged to $851.9 million, compared to $516.7 million in February 2024. The increase was mainly fuelled by higher gold and cashew nut shipments.
Service receipts for the month also rose 10.6% to $7 billion, up from $6.33 billion in the same period last year, with travel-related income accounting for more than half (56.3%) of the service sector’s earnings.
Despite the positive trends, the central bank noted a decline in manufactured goods exports, particularly fertilisers, cement, and wheat flour. Analysts say this signals a need for policy support to stabilise industrial output and enhance competitiveness in regional markets.
With the current account position improving and foreign exchange inflows strengthening, Tanzania appears on a firmer economic footing. Continued growth in traditional exports, increased tourism, and prudent trade policies are expected to sustain the positive trajectory in the months ahead.
