Tanzania, Russia move to establish efficient payment system for trade and investment
MOSCOW: TANZANIA and Russia are moving closer to a new phase of economic cooperation, with talks now in their final stages to establish a more efficient payment system aimed at boosting trade and investment between the two countries.
This was revealed by the Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo, while speaking to journalists accompanying President Samia Suluhu Hassan during her official visit to Russia.
Prof Mkumbo said both countries are expected to sign key cooperation agreements before the end of the visit, describing the development as a major milestone in strengthening bilateral economic relations.
He said the current trade volume between Tanzania and Russia stands at about 200m US dollars, adding that the new arrangements will help improve the flow of business and increase efficiency in commercial transactions.
ALSO READ: Govt orders action against negligent supervisors, warns on AI misuse
According to him, one of the key areas under discussion is the use of the Tanzanian shilling in selected transactions between the two countries.
He said this will reduce dependence on third-party currencies and make trade easier, faster, and more cost-effective for businesses on both sides.
Prof Mkumbo further explained that Russia is emerging not only as a historical partner in political support but also as a strategic partner in economic development.
He noted that Russia has strong capabilities in agriculture, including agro-processing, seed development, and mineral technologies, which align with Tanzania’s development priorities.
He said these areas of cooperation are expected to support the implementation of Tanzania’s development agenda, including key national strategies set to guide economic transformation in the coming years starting July this year.
On infrastructure development, Prof Mkumbo said discussions are also ongoing regarding the construction of the Southern Railway line.
The project is expected to be implemented through a Public-Private Partnership (PPP) model and is aimed at improving transport connectivity and opening up economic opportunities in southern Tanzania.
He also said Tanzania and Russia are in advanced talks on aviation cooperation that would allow Air Tanzania to operate direct flights between Dar es Salaam and Moscow.
According to him, the move will strengthen tourism, improve business travel, and deepen people-to-people exchanges between the two nations.
The ongoing engagements between Tanzania and Russia reflect growing efforts to expand cooperation beyond traditional diplomacy into practical economic partnerships expected to deliver direct benefits to citizens through trade, infrastructure development, and job creation.
