By A Special Correspondent
Zanzibar’s external sector continues to show strong signs of recovery, driven largely by a resurgent tourism industry.
According to the Bank of Tanzania’s Monthly Economic Review (MER) for September 2025, the archipelago posted a current account surplus of US$ 673.3 million in the year ending August 2025 – a 42.1 percent increase compared to the same period a year earlier.
The significant surplus was mainly fueled by robust growth in service receipts, particularly from tourism-related activities, which continue to rebound following years of Covid-19 pandemic-related disruptions.
“Current account surplus rose by 42.1 percent to US$ 673.3 million in the year ending August 2025. The improvement was mainly attributed to an increase in service receipts, particularly from tourism-related activities,” reads the September MER.
Tourism-led export growth
Total exports of goods and services surged by 25.7 percent to US$ 1,300.1 million, up from the previous year’s figure.
The increase was almost entirely driven by a 30.6 percent rise in service receipts, which reached US$ 1,267.5 million. Tourism remained the dominant contributor, with international arrivals climbing by 26.1 percent to 861,962 visitors over the same period.
On a monthly basis, Zanzibar exported goods and services worth US$ 151.7 million in August 2025, up sharply from US$ 104 million recorded in August 2024.
Imports rise but outpaced by exports
Despite the strong export performance in services, goods exports were weighed down by a decline in clove exports – one of Zanzibar’s traditional exports – due to the crop’s cyclical production pattern.
Imports of goods and services also grew, though at a slower pace. Total imports rose by 12.3 percent to US$ 648 million in the year ending August 2025. The increase was primarily driven by higher imports of capital, intermediate, and consumer goods.
Capital goods imports almost doubled, rising 94.9 percent to US$ 28.3 million, largely due to increased purchases of machinery and mechanical appliances.
Imports of intermediate goods – including motor vehicles and industrial supplies – also climbed, while consumer goods imports rose by 21.3 percent to US$71.7 million, reflecting higher demand for transport equipment, food, and beverages.
Month-on-month, however, imports of goods and services dipped slightly to US$ 54.7 million in August 2025, from US$ 55.7 million in August 2024.
Outlook Zanzibar’s strong external position highlights the island’s economic resilience and the vital role of tourism in its recovery. With visitor numbers continuing to rise and infrastructure investment ongoing, the Spice Islands are well-positioned to sustain the positive external balance – though fluctuations in agricultural exports and global economic headwinds could still pose risks.
