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.

By Modupe Gbadeyanka

To strengthen its position in decentralized derivatives, Synthetix is considering the acquisition of a decentralized onchain options AI-powered platform, Derive.

Derive, known for its innovative structured product offerings, has quickly gained recognition in the DeFi space for bringing intuitive and institutional-grade financial tools to the blockchain.

By integrating Derive’s front-end expertise and RWA strategies with Synthetix’ robust derivatives and liquidity infrastructure, Synthetix is positioned to accelerate the adoption of decentralized derivatives trading.

The strategic acquisition marks a significant step forward in Synthetix’s mission to launch the most renowned decentralized derivatives exchange on Ethereum Mainnet.

Under the terms of the agreement, Synthetix has proposed to acquire Derive in a token to token transaction.

The exchange ratio will be 27 $DRV <> 1 $SNX, reflecting an approximate $27 million valuation. This transaction is subject to approval from both the Synthetix and Derive community votes, taking place next week.

The acquisition is structured as a token-based merger, with Derive’s community and contributors joining Synthetix governance. The combined team will continue delivering on the Synthetix V4 roadmap and roll out options markets later this year.

“We’re combining the best onchain derivatives stack in DeFi – Derive, with one of the most iconic DeFi projects in its history – Synthetix.

“This deal will get maximum leverage out of Derive’s technical stack, and bring us closer to our shared goal of accelerating the adoption of decentralised derivatives.

“This is just the beginning, and we can’t wait to see the impact of this team up on the market,” the founder of Derive, Mr Nick Forster, stated.

“The acquisition of Derive marks a significant milestone in Synthetix’s pursuit of developing the most robust decentralized derivatives platform in the crypto ecosystem.

“We are delighted to welcome Derive into the Synthetix family, leveraging our combined expertise to drive innovation and accelerate the launch of a comprehensive decentralized derivatives platform on Ethereum,” Mr Benjamin Celermajer of Synthetix stated.

By Adedapo Adesanya

The global markets are experiencing relief as the United States and China, the world’s two largest economies, have agreed to slash tariffs on each other, to ease effects of a trade war.

Speaking after talks with Chinese officials in Geneva, US Treasury Secretary, Mr Scott Bessent told reporters that the two sides had reached a deal for a 90-day pause on measures.

US trade representative Jamieson Greer said so-called reciprocal tariffs were now at 10 per cent each.

Business Post reports that in real terms, the deal means the US is reducing its 145 per cent tariff announced by President Donald Trump to 30 per cent on Chinese goods.

A tariff of 20 per cent had been implemented on China when President Trump took office over what his administration said was a failure to stop illegal drugs entering the US.

China has agreed to reduce its 125 per cent retaliatory tariffs to 10 per cent on US goods.

Sector-specific tariffs, such as the 25 per cent tax on cars, aluminium and steel, remain in place.

Last month, President Trump announced a 90-day pause on the reciprocal tarrifs. However, China was the only country exempt from the pause on the retaliatory tariffs above the base 10 per cent levies.

The development had impacted many markets across the world from stocks to oil to bonds and minerals.

Mr Bessent said after a weekend of negotiations in Switzerland, the countries had a mechanism for continued talks.

It is the second major trade announcement made by the US in the last week, after a deal was secured with the United Kingdom on Thursday.

The move signals a willingness from the Americans to make deals on tariffs.

The news was received positively by major markets.

Brent crude is currently up 2.9 per cent to $65.78 per barrel while the US West Texas Intermediate (WTI) is up 3.1 per cent to $62.91 a barrel.

Asian stock markets on Monday as major indexes were up. In China, the Shanghai Composite stock index rose 0.8 per cent, the Shenzhen Component gained 1.7 per cent, and Hong Kong’s Hang Seng index was up nearly 3 per cent.

Korea’s Kospi grew 1.1 per cent, Japan’s Nikkei was up 0.8 per cent while India’s Nifty 50 index of most valuable companies gained more than 3 per cent, as per Sky News.

CNBC reports that US stocks look set to rise on the open, based on after-hours trading. Wall Street’s tech-heavy Nasdaq is expected to rise by 3.3 per cent, and the S&P 500 index of companies relied on to be stable and profitable by 2.5 per cent.

Mr Bessent also said, “As long as there is good faith effort, engagement and constructive dialogue, then we will keep moving forward,” in response to questions from journalists.

The market will await further developments and possible ease to recent headwinds.