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Rojiutto is still trying to instil fear regarding availability of U.S. dollars. Today he/she said: "Claims have been made that the issue of the foreign exchange reserve deficiency in Tanzania doesn't apply to Aminex. Did Aminex receive Presidential immunity? If so, D.J. Trump would love to know how to acquire this Presidential immunity"
As a reminder, here's what you need to know for a more balanced view:
On 01st March 2024, Tanzania’s Minister for Finance, Mwigulu Nchemba was quoted as saying that he is confident that the supply of dollars in Tanzania will stabilise once mega projects are operational, easing the pressure of importing necessary equipment.
He said “Once these projects conclude, the scarcity of dollars will be history. We are also focused on enhancing crop production and expanding the value chain to facilitate the sale of more products abroad, thereby increasing the availability of dollars”
Then, on 15th April 2024, The Citizen news outlet reported that “The government is optimistic that the dollar crisis will start to ease from next month when the high tourism season begins. The situation will improve further, courtesy of a projected rise in exports of traditional crops and an increase in gold prices, according to the Bank of Tanzania (BoT)”
If you want a bit more detail, the article continued:
“Tanzania earned $1.3 billion from tourism in 2021, but receipts soared to $2.5 billion and $3.4 billion in 2022 and 2023, respectively. Gold brought in $2.7 billion, $2.8 billion and $3.06 billion in 2021, 2022 and 2023, respectively. With projections pointing to a further rise in tourist arrivals and gold prices, BoT is optimistic that foreign exchange challenges the country has faced in recent months will soon be history. "We anticipate a surge in revenue from tourism beginning this May, coupled with exports of traditional crops such as cotton, sesame and others"
and...
“The government has implemented multifaceted strategies to address the foreign exchange crisis, including reducing dependence on dollar imports for commodities that could be locally produced, such as palm oil and sunflower oil. This involved developing improved seed varieties to reduce cooking oil imports. Additionally, the government waived taxes on solar products to lower import costs, aiming to reduce dependence on the dollars and alleviate its shortage. Reports also listed proactive government measures taken in the previous year, including providing export credit guarantee schemes and supporting local businesses to boost exports”.
So, lots of action has been taken and the situation is fast improving – with data to back that up and assurances from the Bank of Tanzania themselves.
In summary then, the evidence suggests that this is an ever-diminishing risk, and soon to be a non-issue. Beware the scare-mongering troll(s) and, as ever, DYOR
Prosciutto likes to try to worry people about availability of US dollars in Tanzania.
Prosciutto's recent quote from Orca report, hoping to worry Aminex shareholders:
"There is a risk that the Company may not be able to convert Tanzanian shillings to hard currencies, such as US dollars, in the future as and when required. It is not known when the foreign exchange reserve deficiency in Tanzania will be remedied, if ever." 1. 2023 Orca Energy Group Annual Report
What you need to know:
On 01st March 2024, Tanzania’s Minister for Finance, Mwigulu Nchemba was quoted as saying that he is confident that the supply of dollars in Tanzania will stabilise once mega projects are operational, easing the pressure of importing necessary equipment.
He said “Once these projects conclude, the scarcity of dollars will be history. We are also focused on enhancing crop production and expanding the value chain to facilitate the sale of more products abroad, thereby increasing the availability of dollars”
Then, on 15th April 2024, The Citizen news outlet reported that “The government is optimistic that the dollar crisis will start to ease from next month when the high tourism season begins. The situation will improve further, courtesy of a projected rise in exports of traditional crops and an increase in gold prices, according to the Bank of Tanzania (BoT)”
If you want a bit more detail, the article continued:
“Tanzania earned $1.3 billion from tourism in 2021, but receipts soared to $2.5 billion and $3.4 billion in 2022 and 2023, respectively. Gold brought in $2.7 billion, $2.8 billion and $3.06 billion in 2021, 2022 and 2023, respectively. With projections pointing to a further rise in tourist arrivals and gold prices, BoT is optimistic that foreign exchange challenges the country has faced in recent months will soon be history. "We anticipate a surge in revenue from tourism beginning this May, coupled with exports of traditional crops such as cotton, sesame and others"
and...
“The government has implemented multifaceted strategies to address the foreign exchange crisis, including reducing dependence on dollar imports for commodities that could be locally produced, such as palm oil and sunflower oil. This involved developing improved seed varieties to reduce cooking oil imports. Additionally, the government waived taxes on solar products to lower import costs, aiming to reduce dependence on the dollars and alleviate its shortage. Reports also listed proactive government measures taken in the previous year, including providing export credit guarantee schemes and supporting local businesses to boost exports”.
So, lots of action has been taken and the situation is fast improving – with data to back that up and assurances from the Bank of Tanzania themselves.
In summary then, the evidence suggests that this is an ever-diminishing risk, and soon to be a non-issue. Beware the scare-mongering troll(s) and, as ever, DYO