TBN Moscow: Tanzania and Russia are in the final stages of negotiations on a system for using local currencies in trade payments, a move aimed at strengthening economic cooperation and increasing trade between the two nations.
The statement was made by the Minister of State, President’s Office – Planning and Investment, Professor Kitila Mkumbo while speaking to journalists present at the national visit of the President of the United Republic of Tanzania, Dr. Samia Suluhu Hassan, to Russia.
Professor Mkumbo said Tanzania and Russia expect to sign the documents of the agreement before the completion of the historic visit.
He said that currently the trade volume between the two countries reaches US$ 200 million and the agreement will open a new page of productive cooperation in the sectors of trade, investment and economic development.
Professor Mkumbo explained that the agreement will involve the use of the Tanzanian Shilling and the Russian currency in commercial payment systems to facilitate transactions and increase the efficiency of trade between the countries.
He said Russia, which made a significant contribution to the political liberation movements in Africa, now continues to be an important partner in Tanzania’s economic liberation through investment, technology and development cooperation.
He added that Russia has made great strides in various sectors including agriculture, crop processing, seed production and the mining sector, which will help Tanzania in the implementation of the National Development Vision 2050 expected to come into effect in July this year.
Professor Mkumbo said one of the major achievements expected from the visit is the successful construction of the Southern Railway through the Public-Private Partnership (PPP) system.
He said Tanzania and Russia are in the final stages of an agreement that will enable Air Tanzania Corporation (ATCL) to launch direct flights between Dar es Salaam and Moscow, a move that will facilitate travel, promote tourism and increase trade opportunities between the two countries.
Also, the visit of the President of the United Republic of Tanzania, Dr. Samia Suluhu Hassan to the Russian Federation has opened a new page in economic cooperation between the two countries with trade, investment and strategic projects being given priority in strengthening the Tanzanian economy.
Over the past five years, trade between Tanzania and Russia has shown significant growth where the value of trade has increased from US$178.8 million in 2020 to approximately US$307.5 million in 2025, a move that is interpreted as a success of the economic diplomacy implemented by the Sixth Phase Government.
Similarly, Tanzanian exports to Russia have increased rapidly from $7.5 million in 2020 to $29.5 million in 2025, indicating a strengthening of the market for Tanzanian goods in the large Eastern European nation.
The most exported products from Tanzania to Russia include black tea, tobacco, cashew nuts, coconuts, roses, leather, minerals and decorative wooden products, with these products increasingly gaining competitiveness due to their quality in the international market.
In terms of products imported from Russia to Tanzania, the country has continued to be an important source of industrial inputs including fertilizers, wheat, steel products, petroleum, sulfur and various products used in industrial and agricultural production.
This trade growth goes hand in hand with the increase in investment in large projects implemented by Russian companies in Tanzania, where to date more than 70 projects worth US $434.22 million have been invested in various sectors of the economy.
The projects have contributed to creating more than 3,018 jobs for Tanzanians while opening up new opportunities for technological development, skills and domestic income through economic cooperation between the two countries.
The largest project attracting the attention of international investors is the Mkuju River Uranium Project located in Ruvuma Region worth 1.2 billion dollars being implemented by Mantra Tanzania Ltd, a subsidiary of the Russian company ROSATOM.
The project is expected to make Tanzania one of the largest uranium producers in Africa with the capacity to produce up to 3,000 tons of uranium per year, with the Government expecting to benefit through annual revenues, taxes and dividends.
The move by President Dr. Samia Suluhu Hassan to launch a pilot uranium processing plant in the Nyota area in 2025 has been described as a sign of Tanzania’s commitment to use its mineral resources for the benefit of national development and adding value to the country’s mining sector.
In addition to the uranium project, Tanzania and Russia have also continued to cooperate in the energy sector through natural gas projects and CNG is being implemented in partnership between Gazprom International and Anric Energy, a move aimed at enhancing access to clean and affordable energy in the country.
In the transport and ports sector, FESCO, through its partnership with the Tanzania Ports Authority (TPA), is continuing with plans to improve the infrastructure of the Dar es Salaam Port, including a feasibility study for the development of piers 14 and 15 to increase the port’s capacity to handle more than 30 million tons of cargo per year.
President Samia’s visit to Russia could be a catalyst for attracting new investments, increasing international trade and making Tanzania an important hub for trade, energy and transport in the East and Southern Africa region.
