(Dar es Salaam) – The availability of US dollars in Tanzania has significantly improved, thanks to increased revenue from tourism, gold exports, and agricultural products.
In recent weeks, the improved supply of dollars has eased concerns of scarcity. Paul Makanza, Chairman of the Confederation of Tanzania Industries (CTI), highlighted this during the President’s Manufacturer of the Year Awards (PMAYA), affirming that the country no longer faces a dollar shortage.
Governor of the Bank of Tanzania (BoT), Emmanuel Tutuba, echoed Makanza’s remarks, attributing the improvement to higher export earnings, especially from agriculture. Recent auctions for cash crops such as cashews, sesame, and pulses have bolstered dollar inflows. The global rise in gold prices has also contributed, further strengthening Tanzania’s economic standing.
The tourism season has brought a surge in foreign visitors to Zanzibar and mainland attractions, with infrastructure developments like the Standard Gauge Railway (SGR) making tourist sites like Mikumi and Kilosa more accessible. This has spurred economic growth and increased dollar reserves.
According to the BoT’s October 2024 Monthly Economic Review, Tanzania’s foreign reserves reached USD 5.414 billion in September 2024, up 11% from USD 4.88 billion in September 2023. The reserves now cover 4.4 months of imports, exceeding the national benchmark of four months.
| Key Economic Indicators | 2024 | 2023 |
|---|---|---|
| Foreign Reserves (USD billion) | 5.414 | 4.88 |
| Import Coverage (Months) | 4.4 | 4.0 |
| Traditional Export Revenue (USD) | 1.073 billion | 853.8 million |
| Gold Export Revenue (USD billion) | 3.26 | 2.98 |
| Tourism Earnings (USD billion) | 3.82 | 3.15 |
Export growth has been driven by a rise in both traditional and non-traditional exports. Traditional exports, including tobacco and cashews, grew from USD 853.8 million in 2023 to USD 1.073 billion in 2024. Meanwhile, non-traditional exports reached USD 6.8 billion, up from USD 6.3 billion, with gold contributing USD 3.26 billion.
Tourism also saw impressive growth, with earnings rising to USD 3.82 billion in the year ending September 2024, compared to USD 3.15 billion the previous year. Visitor numbers grew by 21.2%, reaching 2,068,856, reflecting government and private sector efforts to promote Tanzania as a tourist destination.
Transport services further boosted the economy, with earnings increasing to USD 2.57 billion from USD 2.27 billion in 2023. Improvements in port and transport infrastructure are cited as key factors in this growth.
Edward Urio, President of the Tanzania Freight Forwarders Association (TAFFA), noted that the improved dollar availability has eased cargo clearance processes at ports, eliminating delays caused by foreign currency shortages.
The dollar scarcity earlier experienced was attributed to external factors, including the COVID-19 pandemic, the Russia-Ukraine conflict, and heavy investments in national projects like the SGR and the Mwalimu Nyerere Hydropower Project. However, the recent economic gains have alleviated these challenges, signaling a brighter economic outlook for Tanzania.