Tag Archives: Tanzania Economy

Treasury bonds oversubscribed‏

HIGH demand from investors greeted the second 10-year treasury bonds attracting bids almost two times the amount offered to the market for bidding, thus ending up the
show overly subscribed.

The first 10-year treasury bonds auctioned on February, this year, attracted few bids
from investors ending the show under subscribed.

Funds raised from the sale of the long-term debt government securities are targeted to finance development projects like road and railway infrastructures that are necessary cutting down cost of transport.

Some of the key investors in government securities include pension funds, insurance firms, some microfinance companies and few commercial banks.

The second 10-year treasury bonds was auctioned last week and is expected to mature in
April 2026. It attracted bids 105.14/- compared to 49.20/- offered for bidding.

The Bank of Tanzania (BoT) auction summary shows, however, that the government retained only 21.70bn/- which is far below even the amount sought to be raised.

The weighted average yield to maturity increased slightly to 18.84 per cent compared to
18.82 per cent of the session held in February, this year.

The weighted average coupon yield also made slight increase to 17.03 per cent
compared to 17.00 per cent of the previous session.

The weighted average price for successful bids declined to 67.14 compared to 67.26.

Only seven bids that were received out of 75 emerged successful. The highest bid offered at the auction was 69.36 while the lowest is 57.50; the minimum successful bid/100 was 67.01.


Tags: , , , , , , ,

Tanzania Inflation Reaches6.8% In December 2015 Due To Higher Growth And Demand

According to The National Bureau of Statistics of Tanzania (NBS) the Annual Headline Inflation Rate for the month of December 2015 rose to 6.8% from 6.6% in November, 2015.
The National Consumer Price Index (NCPI) which measures the change over time in the cost of a fixed basket of 224 goods and services purchased by a representative sample of households in Tanzania on monthly basis, increased from 150.92 in Dec, 2014 to 161.24 in Dec, 2015. According to the NBS, it follows higher rates of demand from households and international markets which drove the Tanzanian GDP to grow 6.3% in the Q3-2015 thanks to higher activity in construction, transport and mining sectors. Food and Non Alcoholic Beverages Inflation Rate for the Month of Dec 2015 has decreased to 11.1% from 11.2% recorded in Nov, 2015, however, food annual inflation has stabilized at 10.9% in the same period. The 12 months index change for non-food products for the month of Dec, 2015 has increased to 1.8% from 1.2% recorded in Dec, 2015. The Annual Inflation Rate which excludes food and energy for the month of Dec, 2015 has increased to 2.4% from 2.3% recorded in Nov, 2015.

Leave a comment

Posted by on January 20, 2016 in Business News, Tanzania News


Tags: , , , , , , , ,

Tanzania Shilling sinks to four months low‏

Tanzania Shilling sinks to four months low‏
THE shilling has sunk to four months low last week following heavy demand of US dollars from energy and manufacturing sectors.

The shilling crossed that level in this May.

The national microfinance bank said the market closed last Friday around 2,148/2,208 levels following mounting pressure from importers.

“Continued dollar demand from retailers and manufactures weighed on the local currency (Friday’s) volatile trading session” NMB said in e-Market report.

Another bank has it that the shilling was still under pressure from heavy demands from the energy and manufacturing sectors for the dollar.

“The local currency closed last week another 4 shillings weaker at the levels of 2179/2199 against the greenback,” CRDB bank said.

While Tanzania shilling nose dived deeper, its counterpart was unchanged last Friday, with traders expecting it to trade in tight range through the session.

At 0715 GMT, commercial banks posted the shilling at 103.00/10 to the dollar, unchanged from Thursday’s close.

“There has been no change overnight, it’s a dead market,” said a trader at one Nairobi-based commercial bank. “We expect trading between 103/- and 103/20 all day.”

He added the Kenya shilling, down about 14 per cent against the dollar this year, was unlikely to strengthen much as some companies had orders to buy dollars as soon as the local currency dipped below the 103/- level.

Both shillings may have been affected negatively after the dollar pulled away from seven-week lows on Friday, after better-than expected US inflation data kept alive bets the Federal Reserve would raise interest rates this year, and as expectations grew for more euro zone easing.

Leave a comment

Posted by on October 20, 2015 in Business News, Finance, Tanzania News


Tags: , , , , ,

The Tanzania Economic Growth will soften in 2015 Due to General Elections

Tanzania Rig Zone

According to BMI Research;  a market leader in providing business intelligence to East & Central Africa’s top companies and leading executives. The Tanzania GDP will drop by 0.5% in 2015 comparing to 2014 results.

The Tanzania Quaterly Country Risk Report published on 23rd June 2015, provide a robust forecasts and analysis that will help you make the right business decisions.

Core Views

  • Uncertainty will characterize Tanzania’s political climate over the coming months as the general election on October 25 approaches. We believe key investment decisions – particularly in the energy sector – are likely to be delayed until the dust from the election has settled and policy direction becomes clearer.

  • Economic growth in Tanzania will soften in 2015 as October’s general elections and continued policy uncertainty in the energy sector weigh on investment. We are forecasting real GDP to expand by 6.4% in 2015 compared to 6.9% in 2014.

  • Tanzania will undergo a modest improvement in its external position over the next two years as lower oil prices help to reduce the country’s hefty imported fuel bill. Despite this short term adjustment, high import demand and sluggish growth in exports will see the current account balance remain deep in red.

Major Forecast Changes: There is NO Major Forecast Changes

Key Risks To Outlook

  • A major risk to our economic outlook comes from the weather. Poor rains would not only exacerbate tight food supplies (food price inflation was the major driver of rapidly rising headline inflation in 2011) but would also once again hamper hydroelectricity production, raising costs for businesses and, by extension, consumers.

Macroeconomic Forecasts (Tanzania 2013-2016)
Indicator                                                   2013e       2014e      2015f     2016f   
BMI Real GDP growth, % y-o-y                     8.2           6.9          6.4         6.9
Nominal GDP, USDbn                                   44.2          48.9        49.7        52.2
Consumer price inflation, % y-o-y, eop            5.6            4.8         4.9          6.0
Exchange rate TZS/USD, eop                        1,590.00    1,733.00  1,930.00  2,007.20
Budget balance, % of GDP                            -3.6             -2.8         -4.1         -3.4
Current account balance, % of GDP                -10.6          -9.7         -8.7          -8.7
SOURCES: Tanzania National Sources / BMI
Leave a comment

Posted by on August 13, 2015 in Uncategorized


Tags: , , , , , ,

Tanzania gets $210m from World Bank For infrastructure projects, boosting regional trade.

Reported by : Reuters

Tanzania has signed a $210 million loan agreement with the World Bank for infrastructure projects aimed at boosting regional trade flows, the country’s finance ministry said on Wednesday.


The loan, provided by the World Bank’s concessionary arm International Development Association (IDA), will finance construction of roads and a border post linking Tanzania to eastern and southern African countries.

“This support has come at a time when the government is in critical need of implementing interventions to facilitate the movement of goods and people … to enable Tanzania to become the transport and logistic hub of its neighbouring countries,” Tanzania’s finance minister, William Mgimwa, said in a statement.

The nation of 45 million people is among Africa’s biggest per capita aid recipients. In its 2013/14 (July-June) budget of 18.24 trillion shillings, Tanzania says it plans to borrow 2.86 trillion shillings from domestic and external sources.

Leave a comment

Posted by on August 2, 2013 in Tanzania News


Tags: , ,

Inflation drops to 7.6 per cent, on slow food prices

INFLATION continued to fall in the year to June due to slower rises in the prices of food and energy, the National
Bureau of Statistics (NBS) said yesterday.

The year-on-year rate of inflation fell to 7.6 per cent from 8.3 per cent in May, the lowest level in two years.


NBS report released yesterday says: “The decrease of inflation rate explains that, the speed of price increase
for commodities in June has decreased compared to the speed recorded in May.”

The rate shows that the authorities in the country are ahead of International Monetary Fund (IMF) projection of
lowering inflation to 7.0 per cent by the end of December 2013.

Given the speed of declining, the IMF projection goal may be reached before the third quarter (September)
ends, even to reach the projected policy goal of 5.0 per cent before the year end.

Mzumbe University Dar es Salaam Business School Senior Lecturer (economics), Dr Honest Ngowi, said the
decline was the continuation of the downward trend experienced for several months now.

“The rate and trend are good. And we may soon reach our policy goal of 5.0 per cent in the very near future,”
Dr Ngowi said, “it reflects a good effort made by central bank for controlling money supply (in the economy).”

The senior economics lecturer said the worries are on taxes adopted for this fiscal year because some are inflationary
in nature and might derail the achievements. “We cannot reach the 5.0 per cent goal unconditionally.

The way forward is to safeguard the achievements by addressing structural issues that erode the desires to
achieve the policy rate,” Dr Ngowi said.

The initiatives, to address structural issues, like President Barack Obama’s Power Africa are commendable as
would lower the cost of electricity and ultimately production.

1 Comment

Posted by on July 9, 2013 in Tanzania News


Tags: , , , ,

Exchange Rate: Tanzania Shilling Vs. US Dollar – as of JULY 2012

USDTZS – Tanzania Shilling Exchange rate

The USDTZS spot exchange rate appreciated 5.0000 or 0.32 percent during the last 30 days. Historically, from 2009 until 2012, the USDTZS averaged 1476.3800  reaching an all time high of 1813.5000  in October of 2011  and a record low of 1277.9000  in June of 2009. The USDTZS spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the TZS. While the USDTZS spot exchange rate is quoted and exchanged in the same day, the USDTZS forward rate is quoted today but for delivery and payment on a specific future date. This page includes a chart with historical data for USDTZS – Tanzania Shilling Exchange rate.



Tags: , , , , , ,

%d bloggers like this: