Zanzibar current account deficit narrows

Published 2020년 9월 30일

Tridge summary

The article reports on the decrease in Zanzibar's current account deficit to 34.3 million US dollars from 58.4 million US dollars, largely due to a 21.8% rise in exports, primarily of cloves and seaweed, and increased official transfers. Despite challenges like poor quality and limited availability of seaweed varieties, the activity has become a significant source of cash crop supplementing cloves in foreign currency earnings and supporting livelihoods. However, the growth in capital goods imports, such as machinery and construction materials, has led to a surge in the current account deficit.

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Original content

THE Zanzibar current account deficit narrowed to 34.3 million US dollars in the year ending July from 58.4 million US dollars in the corresponding period last year, mainly on account of increase in exports and official transfers. The Bank of Tanzania (BoT) monthly economic review for August shows that the value of exports of goods and services rose by 21.8 per cent to 230.9 million US dollars in the period under review from the level recorded in the year ending July last year. This performance was attributed to improved exports of cloves and seaweeds. The value of cloves exports increased to 18.6 million US dollars from 1.2 million US dollars, while that of seaweeds rose to 5.4 million US dollars from 4.0 million US dollars. Cloves have been the major foreign exchange earner in Zanzibar for the last 150 years, and they continue to be an agricultural mainstay of the island. It stands as the most important cash crop in Zanzibar which is grown in all five regions, with South Pemba ...

Source: Dailynews