Zanzibar’s current account deficit widens to $353.8 million in April on increase on import bill

Zanzibar’s current account registered a deficit of $353.8 million during April,2023 as compared with a deficit of $258.8 million recorded during the corresponding period in last year according to the Bank of Tanzania (BoT) Economic Review for May, 2023.

According to the Central Bank, this outturn was largely explained by an increase in import bill.

The import bill increased to $584 million in to April, 2023 from $438.3 million recorded in the corresponding period last year with both goods imports and service payments recording growth.

All major goods import categories recorded increases.

The observed growth in capital goods imports was on account of an increase in machinery and mechanical applied, and electrical machinery and equipment imports; chiefly linked with the on-going construction activities.

“As for intermediate goods imports, the rise was due to an increase in imports of industrial supplies, refined white petroleum and motor cars for households,” the report shows.

Meanwhile, food and beverages mainly for household consumption imports was the main drivers of the growth in consumer goods imports.

“On a monthly basis, imports of goods and services amounted to $49.4 million in April 2023, higher than $44.1 million in April 2022,” the report shows.