Why Russia sees Tanzania’s geography can help in logistics

Tanzania, according to Russia, seems to have a geographic advantage it can tap into. Russia mentioned Tanzania’s location on the East African coast, which is vital for accessing the neighbouring land locked markets.

Tanzania’s geographic advantage on the East African coast is seen as crucial for accessing neighbouring landlocked markets by Russia. Russia aims to utilise Tanzania as a single-entry point for their products in Africa, as Tanzania says it is willing to engage with Moscow at all times.

The Russian Minister for Economic Development, Maksim Reshetnikov, during the ongoing Tanzania – Russia Business and Investment Forum, in Dar es Salaam, noted that Russian logistics can be developed in Africa, if Russia keys into Tanzania’s advantageous location.

“The republic could become a single-entry point for our products on the African continent, continuing the development of the International North–South Transport Corridor,” the Russian minister stated. Reshetnikov also mentioned that Russia could aid Tanzania’s export to the Eurasian Economic Union market, as reported by Sputnik.

The minister emphasised Tanzania’s and Russia’s enormous energy potential, including mining, peaceful nuclear technology development and renewable energy.

According to him, the collaboration between the two countries additionally focuses on tourism, urban environments, digitisation of the economy, medicines and agriculture.

“We are ready to discuss all this. Together we will resolve issues with settlements and organise contacts between the banks of our countries,” Reshetnikov noted.

In September, during an interview with Sputnik, on the sidelines of the United Nations General Assembly, Tanzania’s envoy to the United Nations Hussein Kattanga, revealed that Tanzania is willing to engage with Moscow at all times.

Tanzania and Russia have had a burgeoning relationship in recent years, so much so that both nations have made public the prospect of doing business with one another in their respective currencies.

Andrey Avetisyan, Russia’s ambassador to Tanzania, stated in June that the two countries are actively working to increase bilateral commerce using their respective national currencies.

A few months prior, in February, Russia and Tanzania began conversing about establishing a direct flight path between their countries.

In another development, the Minister for Planning and Investment, Professor Kitila Mkumbo announced that the strong partnership between Tanzania and Russia is set to significantly enhance growth in agriculture and tourism, contributing to the economic development of both countries.

During a press conference following a business forum and joint commission meeting, Prof Mkumbo detailed that the two nations discussed and signed agreements on five key issues aimed at improving social and economic sectors.

The meeting brought together Prof Mkumbo and Russia’s Minister for Economic Development, Maxim Reshetnkov, who oversaw the signing of the agreements.

“Among the key areas we addressed were agriculture, specifically fertiliser production; healthcare, including access to medicines and vaccines; renewable energy production, particularly gas; education, focusing on teaching the Swahili language in Russia and tourism development,” stated Prof Mkumbo.

He noted that Russia has become an important global player in agriculture, quickly establishing itself as a major food supplier. “Tanzania recognises this achievement and sees a significant opportunity to benefit from this agricultural partnership,” he remarked.

“In just two decades, Russia has made great strides in agriculture and is now a key player in feeding the world.” Prof Mkumbo highlighted that Russia’s expertise in fertiliser production is expected to address Tanzania’s substantial demands in this area.

Regarding tourism, he mentioned that the agreements anticipate the launch of direct flights from Zanzibar and Dar es Salaam to Moscow, facilitating greater movement of Russian tourists and products to Tanzania.

“This meeting included over 120 business representatives from Russia and we plan to establish direct routes between Moscow and Zanzibar, as well as Dar es Salaam,” he noted.

The meeting was attended by Tanzanian Ambassador to Russia Fredrick Kibuta, Russian Ambassador to Tanzania Andrey Avetisyan, permanent secretaries from various ministries and other officials.

Additionally, the ministers agreed to introduce Swahili language courses in Russian universities, a move they believe will strengthen cultural ties and boost interest in tourism.

For his part, Minister Reshetnikov emphasised that the agreements aim to enhance trade between the two countries. “Through these agreements, we will strengthen trade between Tanzania and Russia,” he stated.

He added that Russia is eager to establish industries in Tanzania for the production of goods for local consumption. “Our goal is not only to supply fertilisers but to provide those tailored specifically to Tanzania’s needs and soil conditions,” he explained.

According to the latest annual report from the Bank of Tanzania, imports from Russia more than doubled from 303.2bn/- in 2021/22 to 778.4bn/- in 2022/23, while exports increased slightly by 0.6 per cent from 16.5bn/- to 16.6bn/-.

The two ministers agreed to hold another bilateral meeting in Russia next May Meanwhile, a representative from the Russian company Fesco expressed satisfaction with the business interactions, noting the opportunity to meet Tanzanian port infrastructure directors.

“Dar es Salaam is the most efficient port in Africa and trade between Russia and Tanzania is set to be mutually beneficial,” the representative stated.

Russian exports to Tanzania include metals, machinery and fertilisers, while Tanzania exports coffee, tea and cashew nuts to Russia.

Daily News, November 3, 2024