Zanzibar Business News (Page 8)

ZANZIBAR — ZANZIBAR’S current account surplus has registered a significant increase in the last one year thanks to the tourism sector contribution.

According to the Bank of Tanzania (BoT), the current account balance witnessed a remarkable improvement, reaching a surplus of 506.9 million US dollars in the year ending May.

This marks a substantial rise from the 389.1 million US dollars’ surplus recorded during the corresponding period last year.

“The development was largely associated with an increase in service receipts, particularly from tourismrelated activities,” BoT’s latest monthly economic review said.

A current account surplus means that a country has more exports and incoming payments than imports and outgoing payments to other countries.

The tourism sector’s robust performance has been a key driver of Zanzibar’s economic growth, contributing significantly to the balance of payments.

The report said service receipt, particularly tourism rose by 12 per cent to 1.020 billion US dollars, following increased tourist arrivals.

Generally, exports of goods and services amounted to 1.084 billion US dollars a year to May, higher than 975.8 million US dollars in a similar period last year, owing to an increase in service receipts.

Conversely, cloves exports declined by 32 per cent to 28.9 million US dollars from the level recorded in the corresponding period last year, due to the cyclical nature of the crop.

ALSO READ: Mwinyi urges action on tourism, fisheries threats

On a monthly basis, exports of goods and services rose to 103.4 million US dollars in May from 67.1 million in May, driven by services, particularly tourism-related activities.

On the other hand, imports of goods and services decreased slightly by 0.6 per cent to 591.8 million in the year ending.

“The decrease is largely explained by the fall in goods imports, particularly intermediate and consumer goods,” BoT said.

The decline in intermediate goods imports was largely due to a decrease in imports of industrial supplies and fuel and lubricants.

The decrease in consumer goods imports was mostly on account of the decrease in food and beverages, particularly for household consumption and non-industrial transport equipment.

Meanwhile, capital goods imports recorded an increase, largely attributed by the ongoing infrastructure developments.

Month-to-month imports of goods (FoB) and services amounted to 43.7 million US dollars in May, slightly lower than 49.7 million US dollars registered last May.

Experts highlight that the surge in tourist arrivals and increased visitor spending have bolstered service revenues, thereby enhancing the current account surplus.

This trend underscores the importance of tourism as a vital component of the nation’s economy.

Zanzibar has a unique economic structure shaped by its history, geography, and political status

Source: allafrica.com

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A three-day retreat of East African Community (EAC) ministers of foreign affairs and in charge of the EAC, which discussed the security crisis in eastern DR Congo, among other topics, concluded on Monday, July 8.

Held in Zanzibar, Tanzania, the meeting brought together Rwanda’s Minister of Foreign Affairs and International Cooperation Olivier Nduhungirehe, Minister of State in charge of Regional Cooperation James Kabarebe, DR Congo’s Vice Minister of Foreign Affairs Gracia Yamba Kazadi, Tanzania’s Foreign Minister January Makamba and Burundi’s Minister of Foreign Affairs Albert Shingiro.

Also in attendance was South Sudan’s Minister for EAC Affairs and Chairperson of EAC Council of Ministers Deng Alor Kuol, Kenya’s Prime Cabinet Secretary and Minister for Foreign and Diaspora Affairs Musalia Mudavadi, Somalia’s State Minister of Foreign Affairs in charge of EAC Ali Mohamed Omar, Uganda’s First Deputy Prime Minister and Minister of EAC Affairs Rebecca Kadaga as well as EAC Secretary General Veronica Nduva.

ALSO READ: Rwandan ministers to meet DR Congo, Burundi counterparts over security

Below are the key takeaways from the meeting, in which the ministers deliberated on the current status of peace, security, inter-state relations; and the state of the East African Community integration process, according to the final statement released on Monday.

DR Congo crisis

The ministers noted with concern the deteriorating humanitarian and security situation in eastern Democratic Republic of Congo. They appreciated the humanitarian truce between M23 rebels and the Congolese army, that was negotiated by the Government of the United States of America, and recommended that the truce be extended indefinitely.

ALSO READ: M23 accuses DR Congo army of violating humanitarian truce

The ministers acknowledged that the viable path to sustainable peace and security in eastern DR Congo is through a political process and recommended the convening of a summit of the EAC Heads of State to revitalize the political track of the EAC-led Nairobi process in reciprocal coordination with the Luanda process.

EAC peace support operations

The ministers noted the need for institutionalization of peace support operations in the East African Community and agreed on the need for expeditious conclusion of the EAC mutual defence pact and operationalization of the council of ministers on peace and security to ensure timely guidance on peace and security matters.

DR Congo-Rwanda-Burundi ministerial meetings

The ministers took note of the state of interstate relations and the adverse impact on the integration agenda and encouraged the partner states to use existing frameworks provided for in the treaty for the establishment of the EAC to address interstate disputes.

ALSO READ: EAC meet in Zanzibar reiterates importance of political process to end DR Congo crisis

To this end, the ministers of Rwanda and DR Congo agreed to meet at the earliest in the framework of the Luanda process.

The ministers of Rwanda and Burundi will meet by October 31, 2024 to discuss outstanding issues affecting their bilateral relations.

Implementation of EAC pillars

The ministers reviewed the status of the implementation of the four integration pillars and emphasised the need for demonstration of political commitment and goodwill to ensure realization of goals for each pillar.

Member-states contribution, arrears

The ministers deliberated on the constraints of funding the community and the arrears, and recommended they be paid at the earliest by the partner states.

ALSO READ: Somalia pays its $7.8m full budget contribution to EAC budget

They deliberated on a sustainable funding mechanism for the community and recommended it be considered at a joint meeting of ministers of finance, EAC and foreign affairs to explore additional options of funding the community.

The ministers noted the financing model adopted by the 23rd ordinary summit of November 2023.

Amendment of EAC treaty

The ministers also took note of the urgency to complete the process of amending the treaty for the establishment of the EAC and report to the summit accordingly. The ministers also agreed to expedite amendments to decision making, and rules of procedure.

Source: allafrica.com

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