Tanzania, Mozambique forge new strategic ties

Dar es Salaam. Tanzania and Mozambique have embarked on a strategic partnership aimed at reviving trade, investing in the blue economy, improving health and agriculture, and ensuring border security.

This collaboration, underscored by the historical relationship that spans over four decades, marks a renewed effort to harness the untapped potential between the two nations.

Despite the long-standing diplomatic ties, trade between Tanzania and Mozambique has seen a significant decline.

In 2022, trade between the two countries was valued at $57.8 million, but this figure plummeted to $20.1 million in 2023.

As it stands, 16 Tanzanian companies have invested in Mozambique, while the latter has two investors in Tanzania that have employed 650 Tanzanians.

The reasons for this decline are multifaceted, including deteriorating security and a lack of comprehensive trade data.

However, the four-day visit of Mozambican President Filipe Nyusi to Tanzania, upon the invitation of President Samia Suluhu Hassan, aims to address these challenges head-on.

During his state visit, President Nyusi, whose term ends later this year, highlighted the need for enhanced efforts to bolster economic cooperation.

“We have reviewed our cooperation and have seen that we need to make more efforts,” said President Nyusi, during a press briefing in State House Dare es Salaam on July 2, 2024.

This sentiment was echoed by President Hassan, who emphasised the urgency of the situation, stating, “This situation has alarmed us all. We have agreed to look into it closely to increase more investors.”

One of the cornerstone initiatives of this renewed cooperation is the establishment of a one-stop customs centre at Mtambaswala, on the border between Tanzania and Mozambique.

This facility aims to streamline trade operations, reduce bureaucratic hurdles, and facilitate smoother cross-border transactions. As President Nyusi noted, “Through the presence of the one-stop centre, trade between our countries will be further strengthened.”

The agreement also covers several critical areas that are poised to drive economic growth and development in both countries.

With Mozambique boasting 100 trillion cubic feet of gas and Tanzania holding 57 trillion, the collaboration in the blue economy sector holds immense promise. “We have agreed to work together and see how we can develop this sector for the benefit of our countries,” said President Hassan.

Both countries are major producers of cashew nuts. To leverage this strength, they plan to form an African cashew producers’ union. This initiative aims to give them a stronger voice in market pricing and enhance their competitive edge globally.

Improved health cooperation is another critical area, according to the two Heads of State.

By sharing resources and expertise, the two nations aim to bolster their healthcare systems and ensure better health outcomes for their populations.

“Health is another area where we are going to increase cooperation between us,” President Hassan affirmed.

The extensive border between Tanzania and Mozambique requires robust security measures to combat challenges such as piracy. The two countries have committed to enhancing border security and supporting the efforts of SADC forces to maintain regional stability.

The successful implementation of these strategic agreements is expected to yield significant economic benefits for both Tanzania and Mozambique.

Enhanced trade operations through the one-stop customs centre will likely attract more investors, boost job creation, and foster economic diversification.

Moreover, the focus on the blue economy and agriculture will enable both nations to capitalise on their natural resources, driving sustainable development.

The formation of the cashew producers’ union, for instance, could lead to higher export revenues and improved livelihoods for farmers.

In the health sector, increased cooperation will facilitate the sharing of medical resources and expertise, improving the overall health standards in both countries. This, in turn, will contribute to a more productive workforce, further stimulating economic growth.

As President Nyusi aptly put it, “Having all these resources without ways to use them for profit is pointless.” The agreements reached represent a crucial step towards not only reviving but also strengthening the economic ties between the two countries.

With a clear strategy in place and a commitment from both leaderships, the future looks promising for Tanzania and Mozambique, countries with huge historical backgrounds.

The focus on strategic sectors such as the blue economy, agriculture, health, and security is expected to drive mutual growth and development, benefiting the populations of both nations.

By addressing the challenges that have hindered trade and investment, and by leveraging their natural resources and strategic sectors, the two countries are poised to achieve substantial economic progress in the coming years.