Tanzania’s earnings from coal exports jumped sevenfold in dollar terms in the fiscal year that ended in March compared to the previous year, according to central bank estimates, as the turmoil in Ukraine pushed importers to seek fresh supply of the fuel.
Tanzania’s only consumers before to Russia’s invasion of Ukraine in February of last year were in other East African countries. Countries all over the globe are now vying to acquire the country’s thermal coal at ever-increasing rates.
In its April monthly economic assessment, the Bank of Tanzania said that coal exports grew to $223.8 million in the year to the end of March from $31.9 million the previous year, citing “rising demand for alternative energy, amid supply challenges caused by the war in Ukraine” as the reason.
Tanzania intended to triple its coal exports from last year’s aim of 700,000 metric tons by 2021.
Tanzania’s mining minister said last month during a budget presentation that the number of coal export licenses given had doubled from the previous year, reaching over 10,000.
According to Bruegel, a Brussels-based research institute, Russia provided about 70% of the thermal coal consumed by the European Union before the Ukraine crisis.
As a consequence of an EU prohibition on Russian coal shipments, European electricity providers were attempting to acquire supplies from other markets.
