Tanzania current account deficit widens to $3.76 bln in Nov

DAR ES SALAAM (Reuters) - Tanzania's current account deficit widened 4.4 percent in the year to November due to a rise in imports of oil and machinery for gas and oil exploration activities, its central bank said on Wednesday.

The shortfall in east Africa's second-biggest economy increased to $3.76 billion from $3.6 billion a year earlier.

"The increase (of imports) was largely driven by oil imports, following a rise in oil prices in the world market," the Bank of Tanzania said in its latest monthly economic report.

"There was also a substantial increase in imports of machinery, which is associated with an increase in gas and oil exploration activities."

The country's total bill for imports of goods and services rose 12.3 percent in the 12 months through November to $13 billion, while the value of its exports of goods and services increased 15.5 percent to $8.531 billion.

Tanzania is fast becoming a regional energy hub following recent major discoveries of natural gas offshore.

The value of oil imports jumped 18.9 percent to $3.516 billion in November, largely due to a rise in world market prices.

Imports of machinery increased 14.4 percent to $1.88 billion, the central bank said.

Tanzania, with a population of around 45 million, is Africa's fourth-largest gold producer after South Africa, Ghana and Mali.

Gold exports, the country's top foreign exchange earner, rose 16.5 percent in the year to November largely due to an increase in gold prices on the world market and higher export volumes, fetching $2.1 billion, the bank said.

The price of gold on the world market went up by 7.7 percent to $1,667.15 per troy ounce in the year to November.

Revenues from tourism increased to $1.549 billion from $1.347 billion a year ago as the country attracted more visitors.

Gross official foreign exchange reserves held by the central bank rose to $3.883 billion in the year to November, or about four months of import cover, from $3.484 billion a year ago.

Source: http://news.yahoo.com/tanzania-current-account-deficit-widens-3-76-bln-055443715--business.html

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