Tanzania’s exports of coal reached a record $223.8 million (almost Sh527 billion) in the year ending March 2023. Tanzania has 1.9 billion tons of coal reserves, of which 25% are proven.
According to the Bank of Tanzania (BoT), the sum was a significant increase from the $31.9 million (almost Sh75.12 billion) that was reported during the previous year.
“Exports of coal edged up to $223.8 million from $31.9 million, induced by rising demand for alternative energy, amid supply challenges caused by the war in Ukraine,” the BoT says.
The Songea Karoo belt has the majority of Tanzania’s coal reserves, while Rukwa, Mbeya, and Njombe are home to fields.
In one of its most recent studies, the apex bank in Tanzania stated that the majority of the country’s coal is exported to neighboring nations including Kenya, the Democratic Republic of the Congo, Rwanda, and Uganda as well as other nations outside of Africa, particularly Poland, Hong Kong, and India.
Demand for other energy sources has increased globally as a result of the war in Ukraine interrupting supply lines and causing a shortage of natural gas and crude oil.
Mtwara Port, which is situated nearer to important resources than Dar es Salaam and Tanga, is where the majority of Tanzania’s coal leaves the nation.
According to Norbert Kalembwe, manager of the Mtwara Port, the port transported approximately 1.5 million tonnes of cargo from July 2022 to March 2023, with coal making up nearly 80% of the total.
Tanzanian coal is also marketed in nations like Ghana, the Democratic Republic of the Congo, Egypt, the Democratic Republic of the Congo, the Netherlands, Poland, and several other West African nations.
“Up to March this year business has been good. We have seen an increase in revenue both for the port and government collections,” Kalembwe said.
Doto Biteko, the minister of minerals, noted around the end of the previous year that the Ruvuma region produced coal in the fiscal year totaling 1,477,351.24 tonnes valued at about Sh485.545 billion.
For a total value of Sh1.122 billion, the Songwe region produced coal weighing 16,328.35 tonnes, while the Njombe region produced coal weighing 2,762.76 tonnes.
According to him, by September 2022 of the current fiscal year 2022–2023, the Ruvuma region had produced 764.816.15 tonnes of coal valued at Sh287.557 billion, while Songwe had produced 4, 587.9 tonnes worth Sh331.371 million and Njombe had produced 444.41 tonnes worth Sh47.04 million.