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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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United States Congress Pursuing AGOA Extension

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African Growth and Opportunity Act AGOA

By Kestér Kenn Klomegâh

After the expiration of bilateral agreement on trade, the US Congress as well as African leaders, highly recognizing its significance, has been pursuing the extension of the African Growth and Opportunity Act (AGOA). The agreement, which allows duty-free access to American markets for African exporters, expired on September 30, 2025.

The US Congress is advancing a bill to revive and extend AGOA, but South Africa’s continued inclusion remains uncertain. The trade pact still has strong bipartisan support, with the House Ways and Means Committee approving it 37-3. However, US Trade Representative, Jamieson Greer, raised concerns about South Africa, citing tariffs and non-tariff barriers, and said the administration could consider excluding the country.

This threat puts at risk the duty-free access that has significantly benefited South African automotive, agricultural, and wine exports. The debate highlights how trade policy is becoming entangled with broader diplomatic tensions, casting uncertainty over a key pillar of US-Africa economic relations.

Nevertheless, South Africa continues to lobby for inclusion. South Africa trade summary records show that the US goods and services trade with South Africa estimated at $26.2 billion in 2024. The US and South Africa signed a Trade and Investment Framework Agreement (TIFA) as far back as in 2012.

The duty-free access for nearly 40 African countries has boosted development and fostered more equitable and sustainable growth in Africa. By design AGOA is a useful mechanism for improving accessibility to trade competitiveness, connectivity, and productivity. During these past 25 years, AGOA has been the cornerstone of US economic engagement with the countries of sub-Saharan Africa.

Key features and benefits of AGOA:

It’s worth reiterating here that during these past several years, AGOA has been the cornerstone of US economic engagement with the countries of sub-Saharan Africa. In this case, as AGOA is closely working with the African Continental Free Trade Area (AfCFTA) Secretariat and with the African Union (AU), trade professionals could primarily leverage various economic sectors and unwaveringly act as bridges between the United States and Africa.

* Duty-free Access: AGOA allows eligible products from sub-Saharan African countries to enter the US market without paying tariffs.

* Promotion of Economic Growth: The program encourages economic growth by providing incentives for African countries to open their economies and build free markets.

* Encouraging Economic Reforms: AGOA encourages economic and political reforms in eligible countries, including the rule of law and market-oriented policies.

* Increased Trade and Investment: The program aims to strengthen trade and investment ties between the United States and sub-Saharan Africa.

With the changing times, Africa is also building its muscles towards a new direction since the introduction of the African Continental Free Trade Area (AfCFTA), which was officially launched in July 2019.

In practical terms, trading under the AfCFTA commenced in January 2021. And the United States has prioritized the AfCFTA as one mechanism through which to strengthen its long-term relations with the continent. In the context of the crucial geopolitical changes, African leaders, corporate executives, and the entire business community are optimistic over the extension of AGOA, for mutually beneficial trade partnerships with the United States.

Worthy to say that AGOA, to a considerable degree, as a significant trade policy has played a crucial role in promoting economic growth and development in sub-Saharan Africa.

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Accelerating Intra-Africa Trade and Sustainable Development

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Intra-Africa Trade

By Kestér Kenn Klomegâh

Africa stands at the cusp of a transformative digital revolution. With the expansion of mobile connectivity, internet penetration, digital platforms, and financial technology, the continent’s digital economy is poised to become a significant driver of sustainable development, intra-Africa trade, job creation, and economic inclusion.

The African Union’s Agenda 2063, particularly Aspiration 1 (a prosperous Africa based on inclusive growth and sustainable development), highlights the importance of leveraging technology and innovation. The implementation of the African Continental Free Trade Area (AfCFTA) has opened a new chapter in market integration, creating opportunities to unlock the full potential of the digital economy across all sectors.

Despite remarkable progress, challenges persist. These include limited digital infrastructure, disparities in digital literacy, fragmented regulatory frameworks, inadequate access to financing for tech-based enterprises, and gender gaps in digital participation. Moreover, Africa must assert its digital sovereignty, build local data ecosystems, and secure cyber-infrastructure to thrive in a rapidly changing global digital landscape.

Against this backdrop, the 16th African Union Private Sector Forum provides a timely platform to explore and shape actionable strategies for harnessing Africa’s digital economy to accelerate intra-Africa trade and sustainable development.

The 16th High-Level AU Private Sector forum is set to take place in Djibouti, from the 14 to 16 December 2025, under the theme “Harnessing Africa’s Digital Economy and Innovation for Accelerating Intra-Africa Trade and Sustainable Development”

The three-day Forum will feature high-level plenaries, expert panels, breakout sessions, and networking opportunities. Each day will spotlight a core pillar of Africa’s digital transformation journey.

Day 1: Digital Economy and Trade Integration in Africa

Focus: Leveraging digital platforms and technologies to enhance trade integration and competitiveness under AfCFTA.

Day 2: Innovation, Fintech, and the Future of African Economies

Focus: Driving economic inclusion through fintech, innovation ecosystems, and youth entrepreneurship.

Day 3: Building Policy, Regulatory Frameworks, and Partnerships for Digital Growth

Focus: Creating an enabling environment for digital innovation and infrastructure through effective policy, governance, and partnerships.

To foster strategic dialogue and action-oriented collaboration among key stakeholders in Africa’s digital ecosystem, with the goal of leveraging digital economy and innovation to boost intra-Africa trade, accelerate economic transformation, and support inclusive, sustainable development.

* Promote Digital Trade: Identify mechanisms and policy actions to enable seamless cross-border digital commerce and integration under AfCFTA.

* Foster Innovation and Fintech: Advance inclusive fintech ecosystems and support innovation-driven entrepreneurship, especially among youth and women.

* Policy and Regulatory Harmonization: Build consensus on regional and continental digital regulatory frameworks to foster trust, security, and interoperability.

* Encourage Investment and Public-Private Partnerships: Strengthen collaboration between governments, private sector, and development partners to invest in digital infrastructure, R&D, and skills development.

* Advance Digital Inclusion and Sustainability: Ensure that digital transformation contributes to environmental sustainability and the empowerment of marginalized communities.

The AU Private Sector Forum has held several forums, with key recommendations. These recommendations provide valuable insights into the challenges and opportunities facing the African private sector and offer guidance for policymakers on how to support its growth and development.

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Russia’s Lukoil Losses Strategic Influence Across Africa

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Russias Lukoil

By Kestér Kenn Klomegâh

Lukoil, Russia’s energy giant, has seriously lost its grounds across Africa, due to United States sanctions. Sanctions have complicated the company’s potential continuity in operating its largest oil field projects, grappling its investment particularly in Republic of Ghana, Democratic Republic of Congo, and Federal Republic of Nigeria.

Reports indicated the sanctions are further dismantling most of Lukoil’s operations, causing significant staff layoffs in its offices worldwide. For instance, Lukoil’s significant upstream operations in the Middle East include a 75% stake in Iraq’s West Qurna 2 oilfield and a 60% stake in Iraq’s Block 10 development. In Egypt, the company holds stakes in various oilfields alongside local partners.

Lukoil has until December 13, 2025, to negotiate the sale of most of its international assets, including those in Asia, Africa and Latin America. It has already terminated several important agreements that were signed with international partners due to difficulties in circumventing the sanctions.

Reports said calculated efforts to diversify exploration business relations is turning extremely complex, and current at the cross-roads, Lukoil will have to ultimately give up existing contracts and agreements it had signed with external countries.

Lukoil’s website reports also pointed to reasons for abandoning oil and gas exploration and drilling project that it began in Sierra Leone.  According to those reports, Lukoil could withdraw from almost all of the projects in West Africa.

In addition to geopolitical sanctions, technical and geographical hitches, Lukoil noted on its website, an additional obstacles that “the African leadership and government policies always pose serious problems to operations in the region.” Similarly, the Kremlin-controlled Rosneft abandoned its interest in the southern Africa oil pipeline construction, negatively impacted on Angola, Mozambique, South Africa and Zimbabwe.

United States sanctions has hit Lukoil, one of the Russia’s biggest oil companies, like many other Russian companies, that has had a long history shuttling forth and back with declaration of business intentions or mere interests in tapping into oil and gas resources in Africa.

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