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· The Bank of Tanzania (BoT) monthly economic review for April
said that world market prices of selected commodities have come down,
particularly gold prices declined slightly due to decrease in global
demand.
· The assessment of the BoT was related to the period of March 2020.
· However, since then, there has been a rise in gold prices in
the international market due to people’s preferences for investments
in safe havens, since the extent of damage in the real estate and
other avenues of investments have taken a hit after the Covid-19.
The Bank of Tanzania (BoT) monthly economic review for April said that
world market prices of selected commodities have come down,
particularly gold prices declined slightly due to decrease in global
demand. The assessment of the BoT was related to the period of March
2020. However, since then, there has been a rise in gold prices in the
international market due to people’s preferences for investments in
safe havens, since the extent of damage in the real estate and other
avenues of investments have taken a hit after the Covid-19. Due to
this, Tanzania’s gold exports are expected to remain strong.
Global consultancy organization Deloitte in its recent study explains
that the Tanzanian economy, despite the fault lines cast by the
pandemic is expected to show resilience on account of the buoyancy in
the gold prices. That way, there is an economic optimism on the
economic outlook of thee East African country
While the oil producing countries across the world, particularly in
Africa had to take a beating on account of the glut in the market and
consequent drop in the prices, Tanzanian economy is insulated not
being an oil producing country. It imports around 35,000 barrels per
day for domestic consumption. Drop in the prices of oil has
considerably brought down the oil import bill. Added to that,
commodities that Tanzania exports, such as gold and Coffee Arabica
have had buoyancy in the world market., fetching the country more
foreign exchange.
