Dar es Salaam. Tanzania’s external sector recorded a strong performance in the year ending October 2025, with the current account deficit narrowing significantly on the back of robust export growth, improved tourism earnings, and favourable global commodity prices.
According to the November Monthly Economic Review released by the Bank of Tanzania (BoT), the current account deficit declined to USD 2.22 billion from USD 2.89 billion recorded in the corresponding period in 2024.
This improvement reduced the deficit to 2.4 percent of GDP, down from levels exceeding 6 percent in 2022, reflecting a steady strengthening of the country’s external position.
The improvement was largely driven by a sharp rise in exports of goods and services, which increased to USD 17.05 billion from USD 15.13 billion in the year ending October 2024.
Exports of goods alone rose to USD 10.14 billion, which the Bank attributed to strong performances in gold, manufactured goods, tobacco, cashew nuts, and coffee.
Gold exports were the standout performer, surging by 38.9 percent to a historic USD 4.60 billion, mainly due to higher global gold prices. Traditional exports also expanded by 25.2 percent, driven by both price and volume gains in tobacco and cashew nuts.
In addition, cereal exports, largely maize and rice, rose to USD 312.5 million, reflecting increased demand from neighbouring countries, which are major importers of cereals produced in Tanzania.
READ MORE: Tanzania’s Gold Export Receipts Hit Record USD 4.43 Billion
Service receipts also improved, reaching USD 6.91 billion, supported by a strong rebound in tourism and transport services. Tourist arrivals increased by 11.4 percent to more than 2.3 million visitors, while transport earnings rose to USD 2.47 billion, largely from freight services.
Meanwhile, imports of goods and services increased to USD 17.68 billion from USD 16.77 billion in the previous year. The rise was driven mainly by higher imports of industrial supplies, machinery, and transport equipment. However, the import bill was cushioned by a 12.5 percent decline in oil imports, reflecting lower global oil prices.
The improved external performance also boosted the country’s foreign exchange reserves, which rose to USD 6.17 billion at the end of October 2025, according to the BoT report. This level is sufficient to cover 4.7 months of projected imports of goods and services, exceeding both national and East African Community benchmarks.
