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Tanzania now beckons Russian investors for gas, tech growth
The Executive Secretary of the Tanzania National Business Council (TNBC), Dr Godwill Wanga, speaks during Russia Day celebrations at the 49th Dar es Salaam International Trade Fair (DITF). PHOTO | COURTESY
What you need to know:
- Despite enjoying over five decades of diplomatic relations, trade between Tanzania and Russia remains limited. Tanzania imports an average of $2.26 billion (about Sh5.93 trillion) worth of goods annually from Russia—including wheat, chemicals, machinery, and bottled water—while its exports to Russia total just $5.8 million.
Dar es Salaam. The government has extended an invitation to Russian investors to explore strategic investment opportunities in Tanzania, particularly in natural gas, smartphone assembly, and digital technology, as part of efforts to accelerate industrial development and strengthen bilateral trade relations.
Speaking during Russia Day celebrations at the 49th Dar es Salaam International Trade Fair (DITF), the Executive Secretary of the Tanzania National Business Council (TNBC), Dr Godwill Wanga, said the country is actively seeking international partnerships to bolster its economic capacity.
“Tanzania is endowed with vast natural gas reserves that remain largely untapped. We want to work with experienced Russian companies to develop this sector for power generation and industrial processing,” he said.
Despite having over 80,000 registered industries, only 57 currently use natural gas for energy and industrial operations. Furthermore, just 5,000 vehicles run on compressed natural gas (CNG), while only 1,500 households are connected to piped cooking gas.
“Russia has large and experienced energy companies with the capabilities we need. We are open to partnerships that will bring mutual success,” Dr Wanga added.
He also underscored the importance of establishing mobile phone assembly plants in Tanzania, particularly as the country implements its ten-year digital transformation agenda.
He noted that the government is offering both fiscal and non-fiscal incentives to support investors in digital hardware manufacturing.
“With the rising demand for digital devices, setting up a mobile phone assembly plant is a strategic move. We are ready to support investors in this area,” he said.
Dr Wanga further emphasised that Tanzania’s investment climate has improved significantly, thanks to stable economic indicators, regulatory reforms under the Blueprint for Regulatory Reforms, and clear financial policies.
“Inflation, tax rates, and interest rates have remained stable. The government is committed to maintaining a predictable and attractive investment environment,” he noted.
Despite enjoying over five decades of diplomatic relations, trade between Tanzania and Russia remains limited. Tanzania imports an average of $2.26 billion (about Sh5.93 trillion) worth of goods annually from Russia—including wheat, chemicals, machinery, and bottled water—while its exports to Russia total just $5.8 million.
Russia’s representative in Tanzania, Nikita Rassokhih, proposed that Russia Day be institutionalised as a permanent feature of the Sabasaba Trade Fair, underscoring its role in deepening bilateral economic dialogue.
“This celebration brings together businesspeople from both nations. Russia is also ready to support Tanzania’s Vision 2050 development agenda,” he said.
Meanwhile, TanTrade’s Lulu Mkude reaffirmed the agency’s commitment to fostering international cooperation and supporting investment mobilisation.
“This year’s DITF has attracted over 5,000 participants from 23 countries. We encourage the Russian delegation to engage with local businesses and explore the wide array of available opportunities,” she said.
The government’s renewed focus on attracting Russian investment aligns with Tanzania’s broader economic strategy to build an inclusive and diversified economy, driven by industrial growth and technological innovation.
