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Russia, Tanzania Navigating the Crossroads

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Putin delivers state of the nation address before Federal Assembly

By Kestér Kenn Klomegâh

Given the rapidly changing geopolitics, Africa is increasingly becoming one of the strategic pillars in Russia’s policy. The Intergovernmental Russia-Tanzania Commission on Trade and Economic Cooperation held its meetings in St. Petersburg, Russia’s second largest city, the venue for comprehensive discussions and for a critical review of the current Russian-Tanzanian relations. The focus was re-examining the main economic areas of cooperation, achievements, obstacles and future perspectives.

Russia and Tanzania have had good relations. The often-praised bilateral relations have deep historical roots dating back to the Soviet period. But much noticeably fell after Soviet’s collapse in 1991. Notwithstanding that, Russia and Tanzania have, in past decade, taken steps to raise the bilateral relations. In spite of multitude obstacles, both have maintained political dialogue as a basis for developing economic, trade, technological partnerships, educational and cultural cooperation.

Increasing Agricultural Products

On May 13, the Intergovernmental Commission for Trade and Economic Cooperation, meeting in St. Petersburg, reviewed emerging opportunities for large-scale investments, particularly in the employment generating economic sectors. Economic Development Minister Maxim Reshetnikov, who co-chaired the meeting with Planning and Investment Minister Kitila Mkumbo, noted Tanzania’s geographical location as a single window for Russian products entering the East African market. More than 40 Russian companies are currently interested in exporting animal products and a few others to Tanzania and to East Africa region.

According to 2024 demographic report, Tanzania has a population of around 62 million, making it the most populous country located entirely south of the equator. What is important here is the fact that Tanzanian economy is heavily based on agriculture. It has a vast arable land for farming. Reports further indicate that irrigation farming is the commonest across the country. Local agriculture employs half of the workforce. Therefore, the emphasis should rather be on investing in the local agriculture in order to ensure food security.

In a further assessment of the situation, there are very few resources for Tanzania in terms of credit services, infrastructure or availability to improved agricultural technologies, which further exacerbates hunger and poverty in the country, according to the United Nations Development Programme (UNDP). As a result, Tanzania ranks 159 out of 187 countries in poverty, according to the United Nation’s Human Development Index (2024).

Based on these weaknesses, as many as 40 Russian companies have expressed readiness and already doubling efforts with the hope to diversify exports of agricultural produce including meat, fat-and-oil products, dairy and fish products to Tanzania. The participants emphasized the country could be a conduit and entry-gate through which to reach East African region. In fact, previous agreements that were signed provided the legitimate framework and a driving force for developing this partnership. In assessing the trade dynamics, Russia targets an estimated US$15 billion from agricultural exports, while last year it earned over US$7 billion, according to Agroexport Center of the Ministry of Agriculture. In short, Russia is absolutely certain to earn huge income from increasing its various agricultural products to Tanzania, and using the country as a gateway to East Africa.

Pharmaceutical Business

More than ever, Tanzania, like other African countries, has been actively advancing its diplomacy incorporating the health sector. In pursuit of taking advantage of incentives provided by the government, India and a number of foreign investors have achieved marked successes in the health sphere. These foreign investors, while embracing the reconfiguration of world politics sometimes get to the crossroads on one hand. But on the other hand, the corporate investments consistently remain their economic priorities and strive to get full-scale admirable results. Most often, do practical negotiations and renegotiations, determine financial sources and outline business policies which usually form the core points in forging relations with Tanzania.

Today, China and India, for instance, have set up manufacturing hubs in Tanzania and other African countries, fostering employment and skills development for the youth. Generally Tanzania, like many other African countries, is seemingly taking the existential chance to analyze feasibility and forms of engagement in their bilateral cooperation with key external powers. The two Asian countries, China and India have considerably done a lot in this sector. With health infrastructure, China built the Africa CDC headquarters in Addis Ababa, and further engage in manufacturing and distributing medical products as well as offering a wide range of medical services.

In a similar vein, Indian engagement in East Africa’s health sector is multifaceted. After China, India is the third largest investor in this health sector in Africa. In a simple comparison, Russia has a staggering position, still forward-looking to play a model-role in health-care development in the continent. Russia is yet to assert its position despite its official declarations to support Africa in the health sectors during the first and second Russia-Africa Summits.

Recreation and Tourism

The Intergovernmental Commission for Trade and Economic Cooperation delegations, in St. Petersburg meeting. also discussed cooperation on tourism, including the prospects of resuming direct flights between Moscow and Dar es Salaam. The two parties signed an intergovernmental agreement on air services in 2024. The negotiating officials, however, underscored restoring air connection as an essential step toward boosting the expected economic potentials and promoting people-to-people interaction, as well as consolidating travel and tourism business. For example, Tanzania has its national carrier managed by the Air Tanzania Company Limited (ATCL). It operates passenger and cargo flights to destinations in the Middle East and Asia. Until today, Egypt Air and Ethiopian Airlines are flying between Africa and Russia. There is still a huge gap in the aviation sector, particularly Russia to establish the connectivity with Western, Central and Southern Africa. Absence of regular flights, keeps Africa so remote (segregated) from Russia, especially in this expected resonating ‘multipolar’ world.

Economic Development Minister Maxim Reshetnikov, who co-chaired the meeting, reiterated Russia was prepared to send a delegation with business representatives to Tanzania in June-July to determine formats for cooperation in this aviation business. “Our companies are prepared, as they say, to go in and work seriously and for the long term. In tourism, the top priority is to resume direct air connections,” Reshetnikov noted.

In June of last year, an agreement on air transport was signed between the Russian Government and the Government of Tanzania. “It is essential to finalize all procedures as quickly as possible to bring the agreement into effect,” the Minister of Economic Development added.

In fact, Tanzania is not alone requesting for establishing air routes to Moscow. Ugandan Vice President Jessica Alupo said, in Sept. 2024, that Uganda was interested in developing air service with Russia and in the launch of direct flights that will facilitate the movement of people, goods and investment. At a meeting with Russia’s Federation Council Speaker Valentina Matviyenko on the sidelines of the Eurasian Women’s Forum held September 18th-20th in St. Petersburg, Jessica Alupo noted the potentials of Uganda’s tourism sector and fixing hotels in Moscow.

Over the past decades, the absence of reliable airlines has constrained the ability to fully capitalize on growing regional and continental air hub. African destinations are inaccessible, while recreation and tourism business are seriously hampered due to Russia’s hyperbolic rhetoric and lack of the desire to open up to Africa. Many African cities are simply not gateways for tourism, and this hampers economic cooperation.

Can Tanzania Join BRICS?

Closer ties between Tanzania and BRICS are inevitable, Russian Ambassador to the African country Andrey Avetisyan said in an interview with TASS in June 2024. “Some of the BRICS members are Tanzania’s strategic partners, significantly contributing to its economic development based on President Samia Hassan’s policy of economic diplomacy. The topic of Tanzania’s BRICS accession has not come up yet but the country’s closer ties with the group are inevitable, especially now that membership has been granted to Ethiopia, a country Tanzania cooperates with within the African Union and the East African Community,” Avetisyan pointed out.

Learning From Policy Mistakes

By learning from past mistakes and analyzing geopolitical changes, Russia is only now gradually opening its borders to Africa. Most often decorative rhetoric dominates official circles, and implementing policy  initiatives reached at the meetings and conferences and summits are inconsistently dealt with at snail-pace in the partnership. This Russia’s business model impacts negatively on economic growth in the continent, leaves space (vacuum) for Western, European, Asian and Arab competitors. Tanzanian delegation made these points explicitly understandable, and further made a passionate appeal for actionable steps as they renewed investment possibility in various economic sectors. Notwithstanding the lapses and weaknesses, both parties noted there must be a practical turning point to stimulate the continent’s economy. That is partly what foreign relations aim at achieving with African countries.

In official statements, the Russian leadership endorses economic partnership with Tanzania, but there much lies on practical implementation. The early May (month) meetings in St. Petersburg indicated how frequent voices have been raised on opportunities, challenges and historical relations dating back from Soviet times. But the present trends are quite different, not just rhetoric but concretely using such platforms to stimulate investment and for showing appreciative achievements.

For Tanzania and the rest of Africa, the 21st century should be seen as a turning period to promote trade with the industrialised world in order to develop our region, improve living standards and bridge the development gap across Africa, a few policy analysts told this article author. Analysts also say Africa should consider trade as an important tool to transform and diversify its economy using its decades-old relationships with Russia.

Strategic Tasks for Future

State-to-State corporate deals feature prominently in the relations, but it is also necessary to encourage possibly an entrepreneurial culture and private-sectoral approach to the economy. It is enough for Russia’s meteoric criticisms and algorithmic propaganda against western hegemony in Tanzania and across Africa. The stark reality is that African countries, including Tanzania in East Africa, need genuine investment and not anti-western slogans and rhetoric.  The relationship and economic ties are full of declarations and unfulfilled expectations. There are noticeable gaps between bilateral agreements signed years ago and what have positively been achieved on the ground to measure the legitimacy of cooperation.

The Russian-Tanzanian relations, and others in Africa, have been littered with so many bilateral meetings and diplomatic talks these several years. In this context, Russia and Tanzania have to frankly acknowledge the simple fact that time for polarized rhetoric is long over. For this analytical review, enough is enough for now! It is rather a critical time to step up practical efforts and think of innovative ways to implement policy decisions, in spite of the existing challenges.

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Russian-Nigerian Economic Diplomacy: Ajeokuta Symbolises Russia’s Remarkable Achievement in Nigeria

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Ajaokuta Steel Plant, Nigeria

By Kestér Kenn Klomegâh

Over the past two decades, Russia’s economic influence in Africa—and specifically in Nigeria—has been limited, largely due to a lack of structured financial support from Russian policy banks and state-backed investment mechanisms. While Russian companies have demonstrated readiness to invest and compete with global players, they consistently cite insufficient government financial guarantees as a key constraint.

Unlike China, India, Japan, and the United States—which have provided billions in concessionary loans and credit lines to support African infrastructure, agriculture, manufacturing, and SMEs—Russia has struggled to translate diplomatic goodwill into substantial economic projects. For example, Nigeria’s trade with Russia accounts for barely 1% of total trade volume, while China and the U.S. dominate at over 15% and 10% respectively in the last decade. This disparity highlights the challenges Russia faces in converting agreements into actionable investment.

Lessons from Nigeria’s Past

The limited impact of Russian economic diplomacy echoes Nigeria’s own history of unfulfilled agreements during former President Olusegun Obasanjo’s administration. Over the past 20 years, ambitious energy, transport, and industrial initiatives signed with foreign partners—including Russia—often stalled or produced minimal results. In many cases, projects were approved in principle, but funding shortfalls, bureaucratic hurdles, and weak follow-through left them unimplemented. Nothing monumental emerged from these agreements, underscoring the importance of financial backing and sustained commitment.

China as a Model

Policy experts point to China’s systematic approach to African investments as a blueprint for Russia. Chinese state policy banks underwrite projects, de-risk investments, and provide finance often secured by African sovereign guarantees. This approach has enabled Chinese companies to execute large-scale infrastructure efficiently, expanding their presence across sectors while simultaneously investing in human capital.

Egyptian Professor Mohamed Chtatou at the International University of Rabat and Mohammed V University in Rabat, Morocco, argues: “Russia could replicate such mechanisms to ensure companies operate with financial backing and risk mitigation, rather than relying solely on bilateral agreements or political connections.”

Russia’s Current Footprint in Africa

Russia’s economic engagement in Africa is heavily tied to natural resources and military equipment. In Zimbabwe, platinum rights and diamond projects were exchanged for fuel or fighter jets. Nearly half of Russian arms exports to Africa are concentrated in countries like Nigeria, Zimbabwe, and Mozambique. Large-scale initiatives, such as the planned $10 billion nuclear plant in Zambia, have stalled due to a lack of Russian financial commitment, despite completed feasibility studies. Similar delays have affected nuclear projects in South Africa, Rwanda, and Egypt.

Federation Council Chairperson Valentina Matviyenko and Senator Igor Morozov have emphasized parliamentary diplomacy and the creation of new financial instruments, such as investment funds under the Russian Export Center, to provide structured support for businesses and enhance trade cooperation. These measures are designed to address historical gaps in financing and ensure that agreements lead to tangible outcomes.

Opportunities and Challenges

Analysts highlight a fundamental challenge: Russia’s limited incentives in Africa. While China invests to secure resources and export markets, Russia lacks comparable commercial drivers. Russian companies possess technological and industrial capabilities, but without sufficient financial support, large-scale projects remain aspirational rather than executable.

The historic Russia-Africa Summits in Sochi and in St. Petersburg explicitly indicate a renewed push to deepen engagement, particularly in the economic sectors. President Vladimir Putin has set a goal to raise Russia-Africa trade from $20 billion to $40 billion over the next few years. However, compared to Asian, European, and American investors, Russia still lags significantly. UNCTAD data shows that the top investors in Africa are the Netherlands, France, the UK, the United States, and China—countries that combine capital support with strategic deployment.

In Nigeria, agreements with Russian firms over energy and industrial projects have yielded little measurable progress. Over 20 years, major deals signed during Obasanjo’s administration and renewed under subsequent governments often stalled at the financing stage. The lesson is clear: political agreements alone are insufficient without structured investment and follow-through.

Strategic Recommendations

For Russia to expand its economic influence in Africa, analysts recommend:

  1. Structured financial support: Establishing state-backed credit lines, policy bank guarantees, and investment funds to reduce project risks.
  2. Incentive realignment: Identifying sectors where Russian expertise aligns with African needs, including energy, industrial technology, and infrastructure.
  3. Sustained implementation: Turning signed agreements into tangible projects with clear timelines and milestones, avoiding the pitfalls of unfulfilled past agreements.

With proper financial backing, Russia can leverage its technological capabilities to diversify beyond arms sales and resource-linked deals, enhancing trade, industrial, and technological cooperation across Africa.

Conclusion

Russia’s Africa strategy remains a work in progress. Nigeria’s experience with decades of agreements that failed to materialize underscores the importance of structured financial commitments and persistent follow-through. Without these, Russia risks remaining a peripheral player (virtual investor) while Arab States such as UAE, China, the United States, and other global powers consolidate their presence.

The potential is evident: Africa is a fast-growing market with vast natural resources, infrastructure needs, and a young, ambitious population. Russia’s challenge—and opportunity—is to match diplomatic efforts with financial strategy, turning political ties into lasting economic influence.

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Afreximbank Warns African Governments On Deep Split in Global Commodities

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Commodities Market

By Adedapo Adesanya

Africa Export-Import Bank (Afreximbank) has urged African governments to lean into structural tailwinds, warning that the global commodity landscape has entered a new phase of deepening split.

In its November 2025 commodity bulletin, the bank noted that markets are no longer moving in unison; instead, some are powered by structural demand while others are weakening under oversupply, shifting consumption patterns and weather-related dynamics.

As a result of this bifurcation, the Cairo-based lender tasked policymakers on the continent to manage supply-chain vulnerabilities and diversify beyond the commodity-export model.

The report highlights that commodities linked to energy transition, infrastructure development and geopolitical realignments are gaining momentum.

For instance, natural gas has risen sharply from 2024 levels, supported by colder-season heating needs, export disruptions around the Red Sea and tightening global supply. Lithium continues to surge on strong demand from electric-vehicle and battery-storage sectors, with growth projections of up to 45 per cent in 2026. Aluminium is approaching multi-year highs amid strong construction and automotive activity and smelter-level power constraints, while soybeans are benefiting from sustained Chinese purchases and adverse weather concerns in South America.

Even crude oil, which accounts for Nigeria’s highest foreign exchange earnings, though still lower year-on-year, is stabilising around $60 per barrel as geopolitical supply risks, including drone attacks on Russian facilities, offset muted global demand.

In contrast, several commodities that recently experienced strong rallies are now softening.

The bank noted that cocoa prices are retreating from record highs as West African crop prospects improve and inventories recover. Palm oil markets face oversupply in Southeast Asia and subdued demand from India and China, pushing stocks to multi-year highs. Sugar is weakening under expectations of a nearly two-million-tonne global surplus for the 2025/26 season, while platinum and silver are seeing headwinds from weaker industrial demand, investor profit-taking and hawkish monetary signals.

For Africa, the bank stresses that the implications are clear. Countries aligned with energy-transition metals and infrastructure-linked commodities stand to benefit from more resilient long-term demand.

It urged those heavily exposed to softening agricultural markets to accelerate a shift into processing, value addition and product diversification.

The bulletin also called for stronger market-intelligence systems, improved intra-African trade connectivity, and investment in logistics and regulatory capacity, noting that Africa’s competitiveness will depend on how quickly governments adapt to the new two-speed global environment.

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Aduna, Comviva to Accelerate Network APIs Monetization

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Aduna Comviva Network APIs Monetization

By Modupe Gbadeyanka

A strategic partnership designed to accelerate worldwide enterprise adoption and monetisation of Network APIs has been entered into between Comviva and the global aggregator of standardised network APIs, Aduna.

The adoption would be done through Comviva’s flagship SaaS-based platform for programmable communications and network intelligence, NGAGE.ai.

The partnership combines Comviva’s NGAGE.ai platform and enterprise onboarding expertise with Aduna’s global operator consortium.

This unified approach provides enterprises with secure, scalable access to network intelligence while enabling telcos to monetise network capabilities efficiently.

The collaboration is further strengthened by Comviva’s proven leadership in the global digital payments and digital lending ecosystem— sectors that will be among the biggest adopters of Network APIs.

The NGAGE.ai platform is already active across 40+ countries, integrated with 100+ operators, and processing over 250 billion transactions annually for more than 7,000 enterprise customers. With its extensive global deployment, NGAGE.ai is positioned as one of the most scalable and trusted platforms for API-led network intelligence adoption.

“As enterprises accelerate their shift toward real-time, intelligence-driven operations, Network APIs will become foundational to digital transformation. With NGAGE.ai and Aduna’s global ecosystem, we are creating a unified and scalable pathway for enterprises to adopt programmable communications at speed and at scale.

“This partnership strengthens our commitment to helping telcos monetise network intelligence while enabling enterprises to build differentiated, secure, and future-ready digital experiences,” the chief executive of Comviva, Mr Rajesh Chandiramani, stated.

Also, the chief executive of Aduna, Mr Anthony Bartolo, noted that, “The next wave of enterprise innovation will be powered by seamless access to network intelligence.

“By integrating Comviva’s NGAGE.ai platform with Aduna’s global federation of operators, we are enabling enterprises to innovate consistently across markets with standardised, high-performance Network APIs.

“This collaboration enhances the value chain for operators and gives enterprises the confidence and agility needed to launch new services, reduce fraud, and deliver more trustworthy customer experiences worldwide.”

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