Tanzania's coal exports rise to record high of $223.8mn

Tanzania's coal exports have reached unprecedented levels, hitting a record high of $223.8 million in the year ending March 2023, a stark jump from $31.9 million in the previous year. The surge in coal exports has been fueled by the increasing global demand for this energy source, particularly in light of the ongoing energy crisis affecting various parts of the world, including Europe. CNBC Africa recently spoke to Ashraf Yusuf Hassan Khan, the Transport Logistics, Port Operations, and Stockpile Officer at a mine located in the Njombe Region of Tanzania. Khan shed light on the remarkable growth in Tanzania's coal exports and the country's readiness to meet the rising demand. With estimated coal reserves of 15 billion tons, Tanzania is well-positioned to capitalize on this lucrative commodity. Recent developments in coal mining technology and infrastructure have enabled Tanzania to enhance its industrial-level production capacity. Moreover, the country has made significant investments in upgrading transportation networks to facilitate the efficient transfer of coal from mines to ports. Despite the promising outlook for Tanzania's coal industry, Khan emphasized the importance of sustainable practices and environmental considerations. As a developing nation, Tanzania is committed to balancing economic growth with environmental responsibility. Khan pointed out that global coal consumption remains robust, with countries like Germany, France, India, China, and Japan continuing to rely on coal for energy generation. While acknowledging the environmental impact of coal production, Khan stressed the need for stringent measures to mitigate carbon emissions and safeguard the environment. The Tanzanian government has unveiled plans to introduce a standard gauge railway connecting coal mines to ports, a move aimed at reducing transportation costs and enhancing the country's export capabilities. Looking ahead, Tanzania's coal industry is poised to expand its international trade footprint and capitalize on the quality of Tanzanian coal, which has garnered acceptance from consumers worldwide. Despite fluctuations in global coal prices, Tanzania remains optimistic about the long-term growth prospects for its coal sector. By focusing on sustainable practices and embracing technological advancements, Tanzania is well-positioned to navigate the evolving landscape of the global coal market and contribute to the country's economic development.