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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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SCRYPT Expands Stablecoin Settlement Infrastructure to East Africa

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SCRYPT stablecoin

By Aduragbemi Omiyale

Accessing the US Dollar in the East Africa region has now been made easier with the expansion of the stablecoin settlement infrastructure of SCRYPT.

This development enables banks, payment providers and corporate treasury teams to move value into and out of the continent in real time.

Businesses paying international suppliers frequently have to convert local currency into USD before purchasing stablecoins for settlement, incurring FX conversions and spreads before any payment is made.

But SCRYPT is eliminating this intermediate conversion by enabling direct settlement corridors for local African currencies into stablecoins.

This development allows businesses to move from local currency to stablecoin settlement in a single licensed transaction, without first sourcing rationed bank dollars, as stablecoins are increasingly becoming settlement infrastructure rather than an investment product.

The expansion adds settlement support across four African currencies: the Kenyan shilling (KES), Tanzanian shilling (TZS), Rwandan franc (RWF) and Ugandan shilling (UGX). Each corridor is delivered through the same full-stack infrastructure our clients already use for trading, custody and treasury operations.

Speaking on this, the chief executive of SCRYPT, Norman Wooding, said, “Across Africa, stablecoin adoption is driven by economic need, not speculation.

“Businesses here are not chasing yield; they are trying to pay suppliers and manage treasury without losing margin to a banking system that rations dollars. Licensed, fair-rate dollar access is the clearest proof of what this infrastructure is for.”

Also commenting, the Managing Director of Markets & Trading at SCRYPT, Mr Gabriel Titopoulos, said, “Until now, reaching stablecoins from local African currencies meant buying scarce dollars and incurring several layers of conversion costs.

“SCRYPT removes this friction. Firms and payment providers can now settle straight from local currencies through live corridors, with local partners.”

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African Graduates Association Promoting Multifaceted Initiatives With Russian Educational Institutions

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Francois Ngan Professor Vladimir Filippov African Graduates Association

By Kestér Kenn Klomegâh

In preparations for the third Russia-Africa Summit, scheduled for late October 2026, Dr Francois Ngan, deputy chairman of the Union of Associations of African Graduates of Soviet and Russian Universities, during an official working visit, has held a consultative meeting with Professor Vladimir Filippov, the President of the Russian University of Peoples’ Friendship (RUDN), and former Minister of Higher Education of Russia, Chairman of the National Commission for Accreditation of Higher Education.

RUDN is an educational institution established in 1960, primarily to provide higher education to Third World students. It has now become a popular multidisciplinary spot for many students, especially from developing countries. The university offers various academic programmes and has research infrastructure that comprises laboratories and interdisciplinary centres. The university is named after the former Congolese leader, Patrice Lumumba.

Dr Francois Ngan and Professor Filippov discussed the importance of the Graduates Association as a continental platform dedicated to strengthening unity, cooperation, and promoting shared progress among African graduates who studied in the former Soviet Union and in the Russian Federation. They also reviewed multifaceted initiatives that could bring together alumni associations from across Africa, whose members obtained education and professional training, and cultural experiences in Soviet and Russian institutions of higher learning.

Professor Filippov expressed optimism in addressing emerging challenges as a result of shifting geopolitical changes, emphasised strategic cooperation in the educational sphere with Africa, in general, and with the Republic of Cameroon, in particular, and further about the integration of African students during their studies in the Russian Federation.

The meeting also touched on academic and scientific work, the possibility of rewriting a scientific thesis, and the official organisation of transferring versions translated into six languages ​​for the library of RUDN. Significant questions relating to Russia’s educational opportunities, collaborations and partnerships involving African countries were thoroughly discussed.

The Union of Associations of African Graduates of Soviet and Russian Universities was created under one continental umbrella to promote friendship, for professional networking, to engage in cultural exchange, and with particular emphasis on forging strategic cooperation between Africa and Russia.

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Russia to Support Industrial Growth, Technological Advancement and Supply Chain Resilience across Africa

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Russia Supply Chain Africa

By Kestér Kenn Klomegâh

With the heightening of geopolitical rivalry and competition, a new Russia-Africa working group has emerged as a significant institutional mechanism and plans to focus on facilitating and monitoring strategic investments, industrialisation, and infrastructural development—the Strategic Action Plan 2023-2026—that was outlined during the second Russia-Africa summit, in St.Petersburg, the second largest city in the Russian Federation.

While substantial progress has, largely, lagged on the multidimensional economic front with Africa primarily due to its internal difficulties and the complexity of relations with its former Soviet neighbours, Russian officials believe there still remains huge untapped potential in strengthening bilateral cooperation. As planned, President Vladimir Putin has already signed an executive order that directs Moscow to host the forthcoming third Russia-Africa summit in October 2026.

On June 30, a regular meeting of the Business Council on Africa was held under the chairmanship of the head of the Russian Foreign Ministry. It was dedicated to issues of trade, economic and investment cooperation with Africa. The group discussed the current state and prospects for the implementation of policy initiatives with an emphasis on assisting the countries of the continent, strengthening their economic, energy, technological and food sovereignty, as well as training specialists for Africa.

Foreign Minister Sergey Lavrov has reiterated that Russia-Africa relations primarily depend on an understanding of the importance of collective action based on the principles of equality, mutual respect and resolving common tasks. In the past few years, Russia-Africa cooperation has been noticeably strengthening. “We are deepening political dialogues, developing bilateral contacts with African countries, promoting cordial cooperation between ministries and departments, and expanding humanitarian exchanges. We are also continuing the structural diversification of trade partnerships and economic dimensions.”

“Next on the agenda is the launch of diplomatic missions in The Gambia, Liberia, Togo, and the Union of the Comoros,” Lavrov said at a meeting of the Business Council under the Russian foreign minister. Lavrov noted that Russian embassies began operating in three other African countries in 2025: Niger, Sierra Leone, and South Sudan. A new Department for Partnership with Africa was also established. According to the top diplomat, “expanding Russia’s diplomatic presence on the continent contributes to developing relations.”

There are already 45 Russian embassies operating in Africa. The Russian foreign minister noted that Moscow is quickly rebuilding its presence in African countries, which sharply declined during the collapse of the Soviet Union. “There will be literally four or five countries left where we still need to establish full-fledged embassies, and then, we will have 100 per cent coverage of the entire African continent with our diplomatic presence,” Lavrov emphasised.

After the first summit in October 2019, the Foreign Ministry also created the Secretariat of the Russia-Africa Partnership Forum. Its main tasks include controlling the roadmap to Africa’s multidimensional cooperation and guiding potential Russian investors to the continent. This also underscored the priority and post-Soviet solidarity Russia currently attaches to its policy towards Africa, within the growing framework of the emerging new architecture of multipolarity in the Global South.

In an interview in June 2026, the director of the Department of Partnership with Africa at the Foreign Ministry, Tatyana Dovgalenko, shared a few insights in the lead-up to the third summit. Furthermore, Dovgalenko explained that Russia would move away from security to concentrate more on economic issues, especially to team up with African colleagues to streamline mechanisms for implementing projects that will ensure food security and agriculture, and help Africa in installing processing facilities to support its self-sufficiency. She also emphasised energy and vital infrastructures, and the third direction was to simultaneously work more coherently with sub-regional organisations.

Over the past few years, bilateral relations have been increasing. There are positive dynamics in trade turnover, estimated at $30 billion. Steps are being taken to build payment systems, preferably in national currencies, while Russia looks to open four more diplomatic offices, bringing the total to 48 across Africa. Russia is currently training 37,000 African students, but only approximately 1/3 on state scholarships in Russia’s educational institutions. “We are ready to share valuable experiences of building a sovereign development model with African partners to achieve self-reliant economic growth based on their own resources and capabilities. Russia aims at creating processing capabilities and localising production, and provides access to advanced technological solutions,” underlined Dovgalenko in her interview with New Eastern Outlook.

For African countries that have endured difficult decades on the path to political independence, it is now important to take full control over the untapped resources, direct income and revenue toward stimulating the national economic sector, rather than paying for the well-being of the Western “golden billion” during this changing geopolitical era, according to Dovgalenko.

According to reports, the forthcoming Russia-Africa summit will have an economic agenda, including the digital economy, technology, artificial intelligence, healthcare, investment, and settlements in global trade. Of course, the agenda will also cover Africa’s political aspects. But if African friends bring along any specific ideas, Russia will give them serious attention. In addition, with continuity and consistency, pay increased attention to expanding ties with Africa’s regional integration associations.

Going forward, the focus will be on translating strong trade relations into deeper investment partnerships, fostering technology collaboration, strengthening industrial linkages and contributing towards the shared objectives set by the leadership of both African countries and Russia. At the third summit, the above-mentioned specific initiatives will be further designed. In this regard, the key document, the new action plan for the next three-year period (2027-2029), is intended to reflect dynamic realities in the future relations of Russia and Africa

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