• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

World’s Worst Currency Faces Pain as Tanzanian Imports Boom

5 months ago
in Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
135
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

RelatedPosts

Multichoice Rebuffs Minister’s Claim On DSTV Price Cuts, Cites Market Conditions

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

World’s Worst Currency Faces Pain as Tanzanian Imports Boom
Tanzania is one of Africa’s fastest-growing economies, but it may be some time before the local currency benefits.
The shilling has weakened 8.9% this year as of Tuesday, making it the world’s worst-performing currency. That’s as imports and public debt are rising for infrastructure investments that are helping to stoke gross domestic product growth projected at 6% this year. The shilling may see more declines before it recovers.

A widening current-account deficit and potential liquidity constraints, which Tanzania often experiences at the start of the year, are putting pressure on the shilling in the short term, said Shani Smit-Lengton, a senior economist at Oxford Economics Africa. Still, the infrastructure spending will pay off in the long run, she said.

“As long as the government ensures efficient implementation of the projects and keeps debt at a sustainable level, these projects should yield positive results and strengthen the shilling,” Smit-Lengton said. “We expect these investments to deliver long-term returns.”

Tanzania is ramping up spending on projects including a deep-water container port at Bagamoyo, near Dar es Salaam. India’s Adani Ports and Special Economic Zone Ltd. won the concession to operate the harbor.

Other projects include the 1,443-kilometer (897-mile), $5 billion East African Crude Oil Pipeline that will transport crude from fields in landlocked Uganda to Tanzania’s port of Tanga. The Export-Import Bank of China, which lined up a number of lenders from the Asian nation, is backing the pipeline, set to start operating next year.

Tanzania already produces natural gas, which it uses to generate electricity, and plans a $42 billion liquefied natural gas facility to be built by a consortium comprising Shell Plc, Equinor ASA and Exxon Mobil Corp.

While those investments and others are expected to boost economic growth in the long term, they’re fueling the import and debt boom that’s weighing on the shilling.

Imports of goods and services rose 5% in the year through January to $16.9 billion, according to the Bank of Tanzania. That was driven by increases in purchases of industrial supplies and transport equipment, reflecting higher activity in the manufacturing, construction, and transportation sectors, the central bank said in its monthly economic review.

The country’s national debt stock, including government and private-sector debt was “broadly stable” at $47.6 billion, the bank said. External debt climbed 11.5% to $33.9 billion in the year through January, according to central bank data.

“We expect government debt to continue to rise in the coming years, although it is likely to remain below the International Monetary Fund’s 50% of GDP threshold until at least 2028,” said Smit-Lengton.

The Tanzanian currency was little changed on Wednesday at 2,641.23 per dollar, the weakest level on a closing basis since Nov. 28.

There is demand for dollars coming from oil and gas, manufacturing, mobile network operators, construction and trade sectors, said Nelson Kishanda, head of treasury at Exim Bank Tanzania Ltd.

“These sectors have grown year-on-year and hence increased demand for dollars,” Kishanda said. “The medium-term outlook is that we expect the shilling to trade in the 2,620 to 2,650 range.”

Source: bloomberg
Via: norvanreports
Tags: World’s worst currencyWorld’s Worst Currency Faces Pain as Tanzanian Imports Boom

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

OPEC+ Nears Decision Point on Next Oil Output Hike

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Trending

Business

Multichoice Rebuffs Minister’s Claim On DSTV Price Cuts, Cites Market Conditions

August 3, 2025

Multichoice Rebuffs Minister's Claim On DSTV Price Cuts, Cites Market Conditions MultiChoice Ghana has pushed back against...

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.