Tanzania needs to strike a balance between imports and exports to raise gross official reserves to at least 4.5 months of imports of goods and services, Bank of Tanzania (BoT) Deputy Governor Juma Reli has said.

Bank of Tanzania (BoT)

Speaking at an African Export-Import (Afreximbank) roadshow in a Dar es Salaam hotel  on Monday evening, the deputy governor advised the country to increase exports, particularly tourism to achieve the target.

He said Tanzania was currently a net importer, with total imports for 2011 reaching 8.65 billion US dollars against exports of 5.66 billion dollars, commending the important role Afreximbank was playing to promote trade in Africa.

BoT’s support in trade financing, he said, was even more critical at the time when the global economy was experiencing many challenges which have the potential to significantly reduce trade volumes and the supply of offshore funding.

“We note that Afreximbank has remained strong in the midst of these challenges, as evidenced by its 40 per cent year-on-year growth in loan approvals to 3.75 billion dollars in 2011,” Mr Reli said.

Tanzania is one of the founding shareholders of Afreximbank, which staged the roadshow with the main objective being to increase awareness of the organisation and its products in the local market.

Afreximbank was established in October 1993 as a Pan African Exim Bank to stimulate a consistent expansion, diversification and development of African trade while operating as a first class, profit oriented financial institution.

Mr Reli said the central bank was encouraging increased private sector credit, currently projected to grow at 20 per cent in the 2012/2013 fiscal year. “It’s expected that Afreximbank’s financing facilities will greatly contribute to the achievement of this noble goal.”

Source Tanzania Daily News