Balance of Payments and International FDI Position in Tanzania: FY2019/20

Tanzanian merchandise trade exports have decreased consistently since 2016. The slower export earnings have deteriorated Tanzania’s current account balance. The balance of payments has deteriorated but gross official reserves have increased due to the improved capital and financial account surplus due to the persistent inward foreign direct investment (FDI) inflows. These capital flows have improved Tanzania’s balance of payments and deteriorated the country’s net international FDI position. Nonetheless, Tanzania’s balance of payments is projected to moderate to a narrower surplus, which is projected to support growth of gross official reserves in the medium-term.