Tanzania’s External Sector: Current Account, Export Services & Import Services, Decoded
Tanzania’s current account deficit widened to USD 2.3 billion in the year ending June 2026 as imports outran exports. This analysis breaks the external sector into its moving parts — the current account balance, what Tanzania earns from services exports by category, and what it pays for services imports — with the full underlying data from the Bank of Tanzania’s July 2026 Monthly Economic Review.
Executive Summary
Tanzania’s external position stayed broadly resilient in the year ending June 2026 despite a difficult global backdrop — the prolonged Middle East conflict kept energy prices and freight costs elevated for much of the period. Strong gold prices, resilient tourism and firmer regional trade lifted export earnings, but import growth outpaced exports, widening the current account deficit to USD 2,303.9 million, up 7.0 percent from USD 2,153.4 million a year earlier.
On the export side, services receipts rose 14.4 percent to USD 8,140.9 million, powered by travel (tourism) receipts of USD 4,405.5 million — still Tanzania’s single largest services export category — on the back of an 18.9 percent jump in tourist arrivals to 949,278 (Zanzibar) and a 4.5 percent rise to 2,291,479 for the Mainland. Transport receipts also grew strongly, tracking rising transit cargo volumes through Tanzania’s corridors.
On the import side, services payments rose a more modest 6.7 percent to USD 3,375.3 million, driven chiefly by higher freight payments linked to elevated global shipping costs and greater merchandise import volumes. Gross official reserves closed the period at USD 5,673.5 million — 4.4 months of import cover, comfortably above the four-month national benchmark.
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Current Account: Full Breakdown
The current account is the sum of four sub-balances: the goods account, the services account, the primary income account (compensation of employees, investment income), and the secondary income account (transfers such as remittances and grants). In the year ending June 2026, only the services and secondary income balances were in surplus — the goods account deficit widened sharply enough to push the overall current account further into deficit.
Current Account Components, Year Ending June (USD Millions)
Monthly Current Account Balance (USD Millions)
| Item | Jun-25 | May-26 | Jun-26 | YE Jun-2025 | YE Jun-2026 (p) | % Change |
|---|---|---|---|---|---|---|
| Goods account | -349.7 | -771.8 | -595.7 | -4,580.0 | -5,657.7 | 23.5 |
| — Exports | 913.9 | 963.3 | 1,069.8 | 9,885.9 | 11,782.7 | 19.2 |
| — Imports | 1,263.6 | 1,735.1 | 1,665.5 | 14,465.9 | 17,440.4 | 20.6 |
| Services account | 404.6 | 368.7 | 488.7 | 3,951.4 | 4,765.6 | 20.6 |
| — Receipts | 654.4 | 647.5 | 743.8 | 7,115.4 | 8,140.9 | 14.4 |
| — Payments | 249.8 | 278.8 | 255.1 | 3,163.9 | 3,375.3 | 6.7 |
| Goods and services balance | 54.9 | -403.1 | -107.0 | -628.5 | -892.1 | 41.9 |
| Primary income account | -184.2 | -136.9 | -126.7 | -2,011.4 | -1,773.2 | -11.8 |
| Secondary income account | 36.8 | 55.3 | 47.9 | 486.6 | 361.4 | -25.7 |
| Current account balance | -92.5 | -484.7 | -185.8 | -2,153.4 | -2,303.9 | 7.0 |
Source: Tanzania Revenue Authority, banks, and Bank of Tanzania, Table 2.8.1, BOT Monthly Economic Review, July 2026.
Goods deficit is the main driver
The goods account deficit alone widened by USD 1,077.7 million year-on-year — more than explaining the entire increase in the current account deficit.
Services remain a reliable offset
The services surplus grew 20.6 percent to USD 4,765.6 million, cushioning close to half of the goods deficit.
Primary income deficit is narrowing
Lower interest and investment income payments to non-residents cut the primary income deficit by 11.8 percent — a rare bright spot.
Exports: Services Receipts by Category
Service exports increased 14.4 percent to USD 8,140.9 million in the year ending June 2026, up from USD 7,115.4 million a year earlier. Travel (tourism) is by far the largest category, contributing USD 4,405.5 million — 54.1 percent of all services receipts — supported by a 4.5 percent rise in Mainland international tourist arrivals to 2,291,479. Transport receipts followed at USD 3,230.9 million (39.7 percent), firming on rising freight earnings from transit cargo through Tanzania’s regional transport corridors. Other services — construction, insurance, financial, telecommunication, computer and information, government, personal and other business services — contributed the remaining USD 504.5 million (6.2 percent).
Services Receipts by Category, Year Ending June 2026(p)
Services Receipts by Category: 3-Year Trend
| Category | 2024 | 2025 | 2026(p) | Share of 2026 total |
|---|---|---|---|---|
| Travel (Tourism) | 3,679.7 | 4,096.5 | 4,405.5 | 54.1% |
| Transport | 2,304.3 | 2,538.3 | 3,230.9 | 39.7% |
| Other services | 594.6 | 480.6 | 504.5 | 6.2% |
| Total services receipts | 4,578.6 | 7,115.4 | 8,140.9 | 100.0% |
Source: Banks and Bank of Tanzania computations, Chart 2.8.3, BOT Monthly Economic Review, July 2026. Note: “Other services” includes construction, insurance, financial, telecommunication, computer and information, charges for the use of intellectual property, government, personal, and other business services.
Exports of Goods: Context
Goods exports rose 19.2 percent to USD 11,782.7 million, continuing to be led by gold (USD 5,522.9 million), which benefited from elevated international gold prices. Manufactured goods, tobacco, cashew nuts and coffee all posted solid gains, aided by favourable commodity prices and strengthening regional demand.
Top Export Commodities of Goods, Year Ending June 2026(p)
Imports: Services Payments by Category
Service payments rose a more moderate 6.7 percent to USD 3,375.3 million in the year ending June 2026, from USD 3,163.9 million a year earlier — a much slower pace than the 14.4 percent growth in services receipts. The Bank of Tanzania attributes the rise chiefly to higher freight payments, consistent with elevated global shipping costs, continued disruptions to maritime transport, and the increase in merchandise imports. On a monthly basis, service payments rose to USD 255.1 million in June 2026 from USD 249.8 million in June 2025.
To show how services payments split by category, TICGL draws on the Bank of Tanzania’s calendar-year Balance of Payments series, which separately tracks Transport, Travel and Other services debits. On this basis, Transport is consistently the largest services payment category — reflecting Tanzania’s reliance on imported freight, shipping and international transport services — followed by Other services and Travel.
Services Payments (Debit) by Category, 2025(p)
Services Payments by Category: 5-Year Trend
| Category | 2021 | 2022 | 2023 | 2024(r) | 2025(p) |
|---|---|---|---|---|---|
| Transport | -806.4 | -1,378.4 | -1,326.4 | -1,411.9 | -1,467.3 |
| Travel | -196.2 | -357.5 | -477.2 | -522.3 | -715.5 |
| Other | -604.4 | -729.5 | -592.3 | -860.9 | -1,059.1 |
| Total services debit | -1,607.0 | -2,465.4 | -2,395.9 | -2,795.0 | -3,241.8 |
Source: Bank of Tanzania, Table A5 (Tanzania Balance of Payments), BOT Monthly Economic Review, July 2026. Figures are calendar-year balance of payments data, presented as debits (negative values); r denotes revised data, p denotes provisional data. This calendar-year series is shown here because it is the most reliable disaggregation of services payments by category currently published; it complements the fiscal year-ending-June totals in Table 1 and the text above.
Freight costs are the swing factor
Transport payments have grown faster than any other services payment category over the past five years, tracking global shipping cost cycles.
Travel payments are rising too
Outbound travel spending has more than tripled since 2021, reflecting both currency effects and growing outbound travel demand.
Receipts still comfortably exceed payments
At roughly 2.4 times the size of payments, Tanzania’s services trade surplus remains a structural strength of the external account.
Imports of Goods: Context
Goods imports rose 20.6 percent to USD 17,440.4 million, driven mainly by higher imports of industrial supplies, refined petroleum products and capital goods. Refined white petroleum products — 16.2 percent of total goods imports — rose 19.5 percent to USD 2,826.9 million, reflecting elevated global oil prices amid continued Middle East tensions.
Top Import Categories of Goods, Year Ending June 2026(p)
Foreign Exchange Reserves & Import Cover
Despite the widening current account deficit, gross official foreign exchange reserves remained at a healthy level, closing June 2026 at USD 5,673.5 million — supported by sustained gold export earnings and the Bank of Tanzania’s domestic gold purchase programme. This is equivalent to 4.4 months of projected imports of goods and services, above both the national four-month benchmark and comfortably within regional convergence norms.
Gross Official Foreign Exchange Reserves & Import Cover
| Period | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 (Jun, p) |
|---|---|---|---|---|---|---|---|---|---|
| Gross reserves (USD Millions) | 5,044.6 | 5,567.6 | 4,767.7 | 6,386.0 | 5,177.2 | 5,450.1 | 5,546.9 | 6,329.0 | 5,673.5 |
| Import cover (months) | 4.9 | 6.4 | 5.6 | 6.6 | 4.7 | 4.5 | 4.5 | 4.9 | 4.4 |
Source: Bank of Tanzania, Table A1 and Table 2.8.1, BOT Monthly Economic Review, July 2026.
What This Means for Investors & Policy
Tourism is doing the heavy lifting
At 54.1 percent of services receipts and rising, tourism is now Tanzania’s single most important services export — infrastructure and marketing investment here has outsized returns.
Freight costs are an external risk to watch
Transport payments track global shipping cycles outside Tanzania’s control; a renewed spike in freight rates would widen the services and current account deficits further.
Reserves buffer remains adequate
4.4 months of import cover gives policymakers room to manage shocks, though the buffer has thinned slightly from 4.9 months in the prior fiscal year.
Goods trade deficit is the structural issue
With the goods account deficit driving the entire current account widening, diversifying and adding value to merchandise exports remains the highest-leverage policy lever.
Export diversification beyond gold
While gold dominates goods exports, manufactured goods, tobacco, cashew nuts and coffee are all growing — a base worth building on for resilience against gold price cycles.
Services surplus is a genuine cushion
A services trade surplus of roughly USD 4.8 billion offsets nearly half the goods deficit — underscoring why tourism and transport/logistics policy matter for macro stability, not just sector growth.
Muhtasari wa Sekta ya Nje ya Tanzania — Juni 2026
Nakisi ya akaunti ya sasa ya Tanzania iliongezeka hadi Dola za Kimarekani milioni 2,303.9 katika mwaka uliomalizika Juni 2026, kutoka Dola milioni 2,153.4 mwaka uliopita, sawa na ongezeko la asilimia 7.0, kutokana na uagizaji bidhaa kukua kwa kasi zaidi ya usafirishaji nje.
- Mapato ya huduma (services receipts): yaliongezeka kwa asilimia 14.4 hadi Dola milioni 8,140.9, likiongozwa na utalii (Travel) — asilimia 54.1 ya mapato yote ya huduma — na usafirishaji (Transport) — asilimia 39.7.
- Malipo ya huduma (services payments): yaliongezeka kwa asilimia 6.7 hadi Dola milioni 3,375.3, hasa kutokana na gharama kubwa za usafirishaji wa mizigo (freight) kufuatia bei za juu za usafirishaji duniani.
- Bidhaa (goods): Usafirishaji nje uliongezeka asilimia 19.2 hadi Dola milioni 11,782.7 (dhahabu ikiongoza), huku uagizaji ukiongezeka asilimia 20.6 hadi Dola milioni 17,440.4.
- Akiba ya fedha za kigeni: Dola milioni 5,673.5 mwishoni mwa Juni 2026, sawa na miezi 4.4 ya uagizaji bidhaa nje — juu ya kiwango cha chini cha miezi minne kinachohitajika.
Kwa uchambuzi wa deni la nje na la ndani la Tanzania, soma makala zetu za ziada: Deni la Nje na Deni la Ndani kwa Kundi la Mkopeshaji.