Tanzania’s earning from export of goods and services declined 6.3 per cent in May this year compared to the same period a year before owing to lower export value of manufactured goods export, fresh figures reveal.
The Bank of Tanzania in its Monthly Economic Review (MER) reveals that the country earned as low as $8.77 billion in May 2017.
This, according to the report, is a result of a shrink in value of export of manufactured goods which declined significantly to $811.4 million from $1.52 billion in May a year ago. This is the lowest level to have been attained in a period of six years since manufactured exports crossed the $1 billion mark in the 2010 calendar year.
The decline of the value of manufactured goods outweighed the improvement in earnings from exports of traditional goods, gold, and travel (which is mainly tourism).
While earnings from tourism increased from $2.1 billion in May 2016 to $2.2 billion in May 2017 that of Gold also went up significantly to $1.52 billion from $1.22 billion recorded in May 2016.
The value of traditional export also increased to $851.4 million in May 2017 compared to $762.2 million recorded the same period a year ago.
The decline on the export of manufactured goods sends bad signal to the country which envisions industrial economy.
Manufacturers told The Citizen newspaper recently that the drop in value of manufactured goods emanated largely from a drop in credit to the private sector during the past months.
The tight liquidity among commercial banks deprived manufacturers and other businesses of their much needed funds to increase production. The tight liquidity level in the economy has also affected sales of various companies, a situation that is made complex by a delay in government’s payment of arrears to some businesses.