Dar markets key sectors to Moscow

ARUSHA: TANZANIA has unveiled a range of strategic investment sectors for Russian investors, identifying them as key areas capable of driving stronger economic cooperation between the two countries.

The sectors include mining, agriculture, energy, tourism and manufacturing, which the government says offer enormous potential for investment, industrial partnerships and long-term business growth.

Speaking during the Tanzania–Russia Business and Investment Forum in Arusha, Minister in the President’s Office, Planning and Investment, Prof Kitila Mkumbo, said the forum offers an opportunity to transform long-standing diplomatic ties into productive business partnerships.

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“There is no doubt about the excellent political and diplomatic ties between our two countries. What we need now is to transform these strong relations into tangible economic outcomes for our people,” Prof Mkumbo said.

He said that Tanzania is positioning itself as a strategic investment destination by opening up opportunities in sectors with high growth potential and strong demand in regional and global markets.

Prof Mkumbo said Tanzania offers a unique gateway to regional and continental markets through its membership in the East African Community (EAC), the Southern African Development Community (SADC) and the African Continental Free Trade Area (AfCFTA). “Investing in Tanzania means investing in Africa,” he stressed.

He added that Tanzania’s economy is projected to grow by around 6.1 per cent this year and between 6.3 and 6.5 per cent next year, making it one of the fastest-growing economies on the continent.

According to him, the country’s continued economic expansion is supported by political stability, strategic reforms and an improving investment climate under the leadership of President Samia Suluhu Hassan.

“We have had seven elections with peaceful transfers of power and this stability gives confidence to investors and business communities from around the world,” Prof Mkumbo said.

He explained that the government is implementing reforms aimed at strengthening industrial development, logistics infrastructure and value addition in productive sectors to position Tanzania as a regional industrial and logistics hub. Prof Mkumbo said the mining sector remains one of the most attractive areas for Russian investors due to Tanzania’s abundant reserves of gold and critical minerals needed for global industrial development and energy transition technologies.

According to him, partnerships with Russian companies could help unlock the full value of Tanzania’s mineral wealth through investment, technology transfer and value addition. The Minister also highlighted agriculture as another strategic sector, noting that Tanzania possesses about 44 million hectares of arable land, while only around 33 per cent is currently under cultivation.

Prof Mkumbo said cooperation with Russia in agricultural technology, mechanisation and industrial farming could significantly boost productivity and strengthen food security.

“The world now needs more food than ever before, and Tanzania has the potential to feed Africa and even the world,” he said.

Prof Mkumbo further identified manufacturing and industrial development as priority investment areas, particularly through Special Economic Zones coordinated by the Tanzania Investment and Special Economic Zones Authority (TISEZA).

He explained that the government is continuing to improve infrastructure, logistics and industrial support systems to attract investors interested in establishing factories and processing industries in Tanzania.

The Minister also mentioned energy and tourism as among sectors offering strong investment prospects due to rising domestic demand, expanding regional markets and Tanzania’s growing international profile.

On his part, the Minister of Economic Development of the Russian Federation, Mr Maxim Reshetnikov, praised the growing partnership between Tanzania and Russia, saying the relationship has continued to strengthen over the years through mutual trust, shared interests and expanding business cooperation.

He said the two countries established an intergovernmental commission two years ago to coordinate and address growing areas of cooperation in sectors such as trade, investment, education and technology. According to him, Russian companies are increasingly showing interest in Tanzania’s expanding economy, particularly in energy, logistics, agriculture, finance and industrial production.

“Tanzania presents a highly promising and dynamic market with a young population and growing demand for goods and services,” he said, adding that the country serves as an important gateway for Russian products and investments into Africa.

The forum brought together government leaders, investors and private sector representatives from Tanzania and Russia to explore opportunities for expanding trade, investment and industrial cooperation between the two countries.