Tanzania-Russia economic ties, and the way forward

On April 26, 2019, Tanzania celebrated 55 years as the United Republic of Tanganyika and Zanzibar, popular as ‘Union Day.’

The commemoration was also honoured in Moscow where the Tanzanian Ambassador to the Russian Federation, His Excellency Maj. Gen. (Rtd), Simon Marco Mumwi, organized celebrations to which he invited diplomats of African states in Moscow, as well as Russian Foreign ministry officials, partners in trade/investments, and Tanzanian students in Russia.

Mr Mumwi delivered welcoming remarks to the guests who were treated to various activities including promotional exhibitions of Tanzanian products and tourist attractions.

The ambassador also awarded certificates to various stakeholders in recognition of their contributions to the development of Tanzania’s economy, particularly in the tourism industry, investments, arts, language and culture.

The occasion provided opportunities for the exchange of experiences and ideas among the diplomatic envoys and Russian institutions engaging in investment, trade and tourism activities in Tanzania.

In that particular commemoration especially that took place in Russia, it is very significant to recall back, to observe, to comment and also to suggest methods of advancing the remarkable economic relations between Tanzania and Russia.

Bilateral relations between the Russian Federation (former USSR) and Tanzania (as Tanganyika then) were established on December 11, 1961 – and have remained stable and friendly ever since.

Both nations opened diplomatic missions in each other’s national capitals, namely Moscow in Russia, and Dar es Salaam in the-then Tanganyika.

Over many years, we have observed remarkable and distinguished progress in these bilateral relations, mainly in political and social-cultural aspects.

The political ties include the influence and contribution of former USSR to African Liberation Movements via the east African nation in the 1960s-1980s as Dar es Salaam hosted freedom fighters, mostly from southern Africa.

The cultural relations marked the establishment of Kiswahili as a foreign language in Russian Universities, including recent years having the Moscow Swahili Community (Chama Cha Kiswahili Cha Moscow-CHAKIMO), radio station broadcasts in Kiswahili in Moscow and the Kiswahili newspaper ‘Urusi LEO.’

In the educational field, Russia provided many scholarships for Tanzanians including Tanzanian graduates who are prominent figures.

That still goes on today, although there are fewer and fewer numbers of Tanzanian students in Russia.

Economic ties

In recent years, Russia’s relations with Africa and Tanzania in particular have picked up new momentum. The concentration for Tanzania has mainly shifted to economic cooperation on matters of trade and investment, based upon Tanzania’s Foreign Policy on Economic Diplomacy.

A number of bilateral agreements were reached, while negotiations for others are ongoing to widen trade and investment opportunities and to increase interactions between Russian and Tanzanian economically.

In 2005, an agreement was reached on cooperation between the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) and the Russian Chamber of Commerce.

In 2009, a bilateral trade and economic forum was held in Dar es Salaam and Zanzibar, which was attended by representatives of a large number of Russian investors and companies, as well as many representatives of Tanzanian enterprises.

In September 2010, Moscow accommodated an experts meeting between the two nations on the use of debt to Russia-Tanzania relations so that Russia would finance development schemes in Tanzania. This led to the agreement that both parties would draft an intergovernmental contract.

It was also in 2014 that Russian gas giant Gazprom met with representatives of the Tanzanian Energy & Minerals ministry and the Tanzania Petroleum Development Corporation (TPDC) to discuss opportunities for gas operations in Tanzania.

In the process of restoring Russia’s position as one of Tanzania’s investment partners, in April 2016 a bilateral meeting was held under the motto ‘Russia and Tanzania: Advancing towards each other.’

The event brought a number of representatives from big Russian companies to Tanzania in a delegation headed by the minister for Trade and Industry, Denis Manturov.

And, as recently as on March 13, 2019, Tanzanian President John Magufuli met and held talks with Russia’s deputy Foreign Affairs minister, Mikhail Bogdanov, at State House in Dar es Salaam. During the talks, Mr. Bogdanov pointed out that Tanzania and Russia was in the process of forming a joint commission to fast-track relations in the areas of investment, trade and economic development between the two nations.

The commission would be responsible for guaranteeing that the country’s natural resources benefit the peoples of both countries.

In fact, Russian investors are already active in Tanzania.

According to the Tanzania Investment Centre (TIC), Russia invested significantly in the country in 2015, with 48 projects worth $45.23 million since 1990, thereby creating 3,342 jobs for Tanzanians.

Uranium One Inc. – one of the world’s largest uranium producers, which is owned by ROSATOM State Atomic Energy Corporation – operates the Mkuju River Project, a uranium development project located in southern Tanzania, about 470 km southwest of Dar es Salaam.

Between 2004 and 2008, exports from Tanzania to Russia increased from Sh1.41 billion to Sh5.985 billion.

During the same period, Russian exports to Tanzania increased from Sh2.3 billion to Sh87.82 billion.

According to the Federal Customs Service of Russia, Russia exports ferrous metals, fertilizers, machinery and equipment to Tanzania, from where it imports cashew nuts, tea, coffee and spices. According to statistics, there is considerable potential for trade between the two countries to grow to higher levels.

The way forward

Tanzania is strategically a hub of African trade and tourism, as the country has nearly everything that Africa can offer: the African Great Lakes, Mount Kilimanjaro, pristine Indian Ocean beaches, beautiful Zanzibar and other islands, and great world heritage sites, including exotic wildlife.

Furthermore, Tanzania has considerable natural gas reserves, including the rare helium.

As a major natural gas producer itself, Russia can focus on supporting engineering to enable Tanzania to become a reliable natural gas producer and supplier.

The Tanzanian government should seriously consider inviting Russia to invest in the oil and gas sector on a win-win basis.

Unquestionably, Russia is in a good position to provide assistance in that field.

Moscow also can pursue measures to increase its role in the Tanzanian market, and to explore the huge potential for social and economic cooperation in areas such as agriculture, mining, tourism, economic infrastructure, manufacturing, fisheries, banking, insurance and healthcare.

President Magufuli’s industrialisation agenda will also increase chances of success if and when Tanzania cooperates more with Russia in socio-economic development. Industrial groups like Russian Helicopters, United Aircraft Corporation (UAC) and United Wagon Company (UWC) are looking forward to working on industrial schemes in Tanzania.

Generally, potential Russian investors should set sights on exploring new investment opportunities in Tanzania, as well as strengthen the existing economic and trade relations with our country.

In the light of better relations between Russia and African nations in general, and with Tanzania in particular, there are lots of hopes in 2019 and beyond.

Let’s see what comes out of the first-ever Russia-Africa summit scheduled to take place in Sochi, Russia, in October, 2019.

The author is a PhD Candidate in Economics, Department of Political Economy at the Peoples’ Friendship University of Russia (RUDN University) in Moscow, Russia; Email:

Email: [email protected]