Jan 25, 2022

Mawazo Writing Africa

Writing about the main

Dar’s EAC trade surplus reaches $485m, but still less than half of SADC volumes

Tanzania’s trade surplus across the East African Community rose to $ 484.5 million in 2020 from $ 343.8 million in the previous year, according to the latest updated figures from the central bank.

The country also reported a much improved trade surplus of US $ 1.09 billion with the countries of the Southern Africa Development Community (SADC), which indicates a further expansion of its sub-Saharan trade network.

Kenya remained Tanzania’s most important trading partner within of the EAC block and accounted for 28.4 percent of intra-EAC exports and 76.4 percent of imports in 2020. Export figures to Rwanda, Uganda and Burundi also rose sharply, while imports from these countries fell.

According to the Bank of Tanzania 31 Annual Report 2020/2021 published in December, Tanzania exported $ 811.2 million in goods to the EAC region in 2020, up from $ 678.5 million in the previous year, while imports from the bloc fell slightly from $ 334.7 million to $ 326.7 million.

Exports to Kenya were valued at $ 230 total versus $ 249.6 million US dollars in imports. Exports to Rwanda peaked at $ 207.7 million in 2020, an increase of over $ 15 million from 2019, while exports to Uganda and Burundi also improved significantly to $ 190.9 million Dollars and $ 179.1 million in 2020 compared to $ 124.4 million and $ 88.4 million in 2019, respectively.

General decline

Mutual trade between Tanzania and Kenya recorded a general decline from 2019, when the export-import numbers recorded by BoT fluctuated at around $ 271 million, Tanzania’s exports to Kenya ($ 271.6 million.)) Slightly over imports ($ 271.4 million).

Tanzania also recorded a trade deficit of $ 19.6 million with Kenya as trade disputes between partner countries in the region escalated.

Previously the last At that time, Tanzania recorded in the year r 2016 officially more exports than imports with Kenya over a full calendar year (343.3 million US dollars to 292.9 million US dollars).

The country also recorded an annual increase in its exports to Rwanda $ 207.7 million in 2020 from $ 192.1 million in 2,019. The number is from a low of $ 7.1 million in 2016 to $ 61.9 million (2017) and US $ 80.6 million (2018) steadily increased.

Tanzania remained Rwanda’s largest import source of machinery, transportation equipment and manufactured goods, food and live animals at the top of the import list.

However, reciprocal import numbers from Rwanda remained low at $ 2.3 million in 2020 and were even worse for Burundi with $ 300,000 on the reciprocal trade index. Imports from Uganda were up with $ 74.6 million versus $ 190.9 million also flooded with exports. South Sudan remained largely undeveloped, BoT only recorded 3.4 million US dollars in export trade versus zero imports from this country.

East African payment system

Meanwhile, South Africa is 23.2 percent and in brief – its EAC member state Democratic Republic of the Congo with 2.41 percent, which accounted for the largest part of Tanzania’s 2020 trade in the SADC region.

The most important exports to the SADC were gold, cigarettes, Wheat flour and ceramic products, while major imports were from the region included automobiles, corn seeds, iron sheets and lubricants, according to BoT.

Transactions via the East African Payment System, the region’s bank-to-bank payment and remittance platform in local currencies, rose 51.1 percent to 4,455 volumes, but declined 37.5 percent to $ 45.63 million in 2020.

In contrast, the volume and value of the Kenyan shilling transactions with Tanzanian banks at 60, 5 percent and 46.1 percent to 4,525 and 87.6 million USD, like transactions in Uganda shillings also increased in volume and value by 25 percent and 54.9 percent to 510 and 5.6 million US dollars, respectively. Dollars.

The value of inbound and outbound transactions between Tanzania and Rwanda through EAPS increased from $ 2,766 to $ 17,174. Burundi and South Sudan have yet to join EAPS.

In contrast, Tanzania registered 3,890 outbound and inbound transactions through the SADC Integrated Regional Electronic Settlement System (SADC-RTGS) with a total value of South African Rand (ZAR) 188.3 Million US dollars in 2020, an increase in value of 203 percent compared to 2019.

“Exports of rice, corn and beans to neighboring countries increased significantly, which can be attributed to an increase in regional trade . According to the report of the Bank of Tanzania Monthly Economic Review from December 2021.

According to the report, Tanzania’s goods and services imports rose to 11.2 billion US dollars in November 2021, from 9 , 2 billion US dollars in the same period in 2020.

“The increase was observed in all import categories, with a significant increase in oil, industrial raw materials and means of transport.”

The Statistics confirm the trade expert’s view that Tanzania seems straight out of the dead end between Uga. to benefit nda and Rwanda and Uganda and Kenya on the other hand.

In her New Year’s Eve address, President Samia Suluhu attributed the growth in trade with neighbors to a review of the country’s laws and trade policies, which are changing the investment environment in the region.

To attract foreign investment, we purposely reviewed some of our policies, laws, and taxes, ”she said.

As a result, Tanzania attracted $ 4.144 billion in FDI in 2021 with 237 projects, compared with 1.01 billion US dollars with 186 projects in 2020.

“Our main goal in 2022 is to promote the growth of our economy and well-being. To be Tanzanian, as stipulated in the National Development Plan 2021/2026, “said President Samia.

Tanzania’s trade with Kenya exceeded the 200 million dollar mark for the first time in 2021, with exports of 182.6 million US dollars. Dollars Double export figures from pre-pandemic levels in the first half of the year.

Tanzania’s largest exports to Ke The nya include grains such as corn and rice, wood and vegetables.

On the other hand Kenya exports soap, coated flat iron and packaged medicines to Tanzania, which have increased over the past year.

Kenya and Tanzania have repaired fences in recent months to remove barriers that prevent the smooth flow of trade and people between hinder the two East African nations.

The commitment resulted from bilateral talks between the Kenyan President Uhuru Kenyatta and his Tanzanian counterpart President Samia, initially during the state visit to Nairo in May 2021 bi and later on December 9, 2021, when President Kenyatta signed bilateral agreements in Dar es Salaam.

“We still have some administrative issues that we will resolve in early 2022,” said Johnson Weru, Kenya’s Chief Executive Officer for trade and co-chair of the bilateral talks between the two countries.