Russia and Tanzania are engaging in trade talks aimed at revitalizing their commercial relationship. Russia has expressed plans to double its trade with Tanzania, positioning the East African nation as a key entry point into the African market.
Russia-Tanzania intergovernmental commission
Russia is committed to doubling its current trade with Tanzania as expressed during a meeting between authorities from both nations in Dar es Salaam, Tanzania. This commitment was made at the first session of the Russia-Tanzania Intergovernmental Commission on Trade and Economic Cooperation.
Earlier this week, Russian Minister of Economic Development Maxim Reshetnikov visited Tanzania with a delegation of over 50 Russian business leaders. « According to our estimates, trade between our countries could double », said Reshetnikov. « We are ready to help the Tanzanian economy sustain its high growth rate in energy, agriculture, infrastructure, and tourism », he added.
The Russian minister emphasized the countries’ longstanding mutual understanding politically and diplomatically, stating they already have « good prerequisites for boosting trade and economic interactions. There is significant untapped potential », he noted.
Joint projects across multiple sectors
After the meeting, Russia and Tanzania agreed to pursue joint projects in energy, agriculture, infrastructure, and tourism. The two countries also signed a commercial air services agreement in June, an essential step in promoting business investments in the travel sector. Additional agreements are anticipated following this meeting.
Hosted by Tanzanian Prime Minister Kassim Majaliwa, the gathering led to a strengthened economic, trade, and investment partnership. Prime Minister Majaliwa assured Minister Reshetnikov of Tanzania’s willingness to collaborate, describing the country as an ideal destination for Russian investors due to its stable political environment and strategic location in the region.
Tanzania offers a vast domestic market
Tanzania itself presents a substantial domestic market with a population exceeding 61 million. The country also connects to the broader East African market of over 300 million people, and even further to the Southern African Development Community (SADC) region.
« Tanzania serves as a gateway to eight neighboring countries, with two others—Comoros and South Sudan—soon expected to join the East African Community (EAC) trade bloc », said Prime Minister Majaliwa. He also highlighted that the number of Russian tourists visiting Tanzania has risen over the past five years, despite global disruptions. He invited Russian business representatives to visit Tanzania and explore investment opportunities, emphasizing that the country is open for business in all sectors.
Value of Russia-Tanzania trade
Russia ranks among the world’s largest economies, currently holding the fifth-largest GDP worldwide in 2023. Given its significant economy, Russia offers substantial trade opportunities for Tanzania. The Russia-Tanzania Intergovernmental Commission on Trade and Economic Cooperation plays a crucial role in fostering trade growth. Tanzania stands to benefit greatly from these exchanges, particularly as it relies on Russia for its grain supply and could gain from technological transfers and direct investment.
According to Russia’s Federal Customs Service, the country’s exports reached 494 billion USD in 2021, though energy sector contributions have decreased from 71 % to 54 % since 2011. Nonetheless, Russia’s vast natural resources and highly developed, diverse economy fuel strong international demand for its products. «The full potential of Russia-Tanzania trade relations has yet to be realized », notes the Russian Federal Customs Service.
Tanzania provides minerals to Russia
As classified by the World Bank, Russia is an upper-middle-income economy and represents a promising market for imports. Tanzania offers several in-demand resources for Russia, including minerals (uranium, chromium, bauxite) and tropical crops, which are all highly sought after.
In 2022, Russia exported 112 million USD worth of goods to Tanzania. The main exports included rye (28.1 million USD), nitrogen fertilizers (26.3 million USD), and wheat (23.1 million USD).
In 2021, trade turnover between Russia and Tanzania reached approximately 200 million USD, with Russian exports accounting for over 80 %. Russia’s main exports to Tanzania are grains and fertilizers, while Tanzanian exports to Russia consist entirely of raw agricultural commodities (unprocessed coffee, tobacco, tea, and edible oil).
