TRAVEL receipts rose by over 450bn/- to reach 5.14tri/- last year up from 4.68tri/- in 2016 due to an increase in the number of tourist arrivals as an outcome of promotion by the government and private sector.

The Bank of Tanzania (BoT) monthly economic review for January this year shows that the balance in services account was a surplus of 1,909.7 million US dollars in 2017, representing an increase of 38.8 per cent over the preceding year.

Services receipts grew by 8.9 per cent to 3,927.6 million US dollars on account of increase in travel and transport receipts. The positive performance resulted from a decline in services payments coupled with an increase in services receipts. Receipts from transport services shoot to 1,147.9 million US dollars in 2017 from 1,061.8 million US dollars recorded in the preceding year due to an increase in transit goods to and from neighbouring countries amid improved efficiency at Dar es Salaam port.

Services payment fell by 9.6 per cent to 2,017.9 million US dollars mostly due to decline in foreign payments related with travel and transportation, particularly freight. In line with a decline in goods import, payments for transportation services which accounted for the largest share in services payment decreased by 18.0 per cent to 778.3 million US dollars. During the period under review, the overall balance of payments significantly improved to a surplus of 1,649.5 million US dollars from a surplus of 305.5 million US dollars in 2016.

The outturn was a result of increase in project grants and external loans received. Gross official foreign reserves rose to 5,906.2 million US dollars at the end of December 2017, from 4,325.6 million US dollars at the end of December 2016.

The reserves were sufficient to cover about 5.4 months of projected import of goods and services. Meanwhile, gross foreign assets of banks amounted to 726.7 million US dollars.

Source: All Africa

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