DIPLOMATIC BENCH: How Tanzania, Mozambique can build Africa’s next growth corridor

DAR ES SALAAM: IN the third part of the Daily News Diplomatic Bench interview series, Tanzania’s High Commissioner to Mozambique, CP Hamad Khamis, says the next phase of cooperation between the two nations should focus on building industries, strengthening regional value chains and unlocking new opportunities for investment, trade and employment.

As African countries intensify efforts to advance regional trade and industrialisation, CP Khamis argues that neighbouring countries have an opportunity to achieve far more together than they can individually. For Tanzania and Mozambique, he says, that opportunity lies not only in their shared history and geographical proximity but also in the complementary nature of their economies.

With abundant natural resources, an extensive Indian Ocean coastline and strategic positions linking Eastern and Southern Africa, the High Commissioner says, the two countries are well placed to deepen economic cooperation in ways that support sustainable long-term development.

“The next five to ten years present a significant opportunity for Tanzania and Mozambique to deepen their strategic partnership and strengthen their position as important economic partners within Africa,” CP Khamis says.

ALSO READ: Tanzania, China bolster their cultural ties at Hongshan Conference

Future cooperation, he says, should move beyond expanding trade volumes alone and focus on building industries, strengthening regional value chains and creating employment. Natural gas, in his view, is among the sectors with the greatest transformative potential.

While Tanzania and Mozambique are already recognised for their significant gas reserves, the High Commissioner argues that the greatest economic value will come from using those resources to support industrial development rather than relying primarily on exports.

“Natural gas will remain one of the most important drivers of future cooperation,” he says.

“The opportunity extends beyond extraction and export to using gas as a catalyst for industrialisation through power generation, fertiliser production, energy infrastructure and downstream industries that support economic transformation.”

He notes that cooperation between regulatory institutions is already expanding, pointing to the Memorandum of Understanding signed in June 2026 between Tanzania’s Petroleum Upstream Regulatory Authority (PURA) and Mozambique’s Instituto Nacional de Petróleo (INP).

The agreement, he says, strengthens institutional collaboration while providing a framework for exchanging expertise in oil and gas regulation. Beyond energy, the High Commissioner believes the Indian Ocean presents another significant opportunity.

He says the blue economy has the potential to become an increasingly important pillar of economic cooperation through sustainable fisheries, aquaculture, maritime transport, port development, coastal tourism and marine conservation.

“The blue economy also offers considerable potential,” says CP Khamis, adding; “Our shared Indian Ocean coastline provides opportunities to expand sustainable fisheries, maritime transport, port development, marine tourism, ocean conservation and other maritime industries capable of creating employment and stimulating growth.” He believes cooperation in maritime industries could generate new investment while improving regional connectivity and supporting broader economic diversification. Transport infrastructure forms another important component of the High Commissioner’s vision.

He argues that integrated transport corridors linking ports, production centres and regional markets could improve supply chains, lower logistics costs and strengthen competitiveness across agriculture, mining, tourism and manufacturing.

“Our geographical location also positions us to develop integrated transport corridors linking ports, production centres and regional markets,” he says.

“Efficient logistics networks will support trade, agriculture, mining, tourism and industrial development while strengthening regional integration.” In the High Commissioner’s view, these sectors should not be seen in isolation. Rather, they represent the building blocks of a more integrated regional economy capable of supporting sustainable growth and creating wider opportunities for businesses and communities.

Unlocking cross-border trade and investment

While natural resources and strategic geography provide a strong foundation for deeper cooperation, the High Commissioner argues that unlocking the full potential of bilateral relations will depend on removing practical barriers that continue to constrain trade and investment.

Despite sharing more than 750 kilometres of common border, he says businesses still face administrative and logistical obstacles that increase transaction costs and discourage greater commercial engagement. Lengthy border procedures, infrastructure gaps and regulatory bottlenecks, he notes, remain among the key challenges limiting the pace of economic integration.

“Cross-border cooperation between Tanzania and Mozambique offers enormous opportunities, but like any partnership between neighbouring countries, it also presents challenges that require continuous dialogue and practical solutions,” he says.

Among the issues he identifies are lengthy customs procedures, limited awareness of regulatory requirements and inadequate transport and logistics infrastructure.

These challenges, he says, particularly affect small and mediumsized enterprises, many of which rely on cross-border commerce but often struggle with licensing requirements, standards compliance and access to market information.

ALSO READ: Over 50 institutions face parliamentary scrutiny

Rather than viewing these constraints as permanent obstacles, the High Commissioner believes they present opportunities for institutional reform and closer cooperation among relevant agencies.

Tanzania and Mozambique, he says, continue to address these issues through established bilateral mechanisms, particularly the Standing Joint Commission for Cooperation, alongside closer collaboration among customs, immigration and security institutions.

The objective is to improve coordination while simplifying legitimate trade and facilitating the efficient movement of people and goods.

“The long-term objective is to transform the common border from a point of control into a platform for trade, investment, industrial development and peopleto-people connectivity while maintaining security and orderly movement,” he says.

CP Khamis also believes stronger private-sector participation will be essential if bilateral economic relations are to realise their full potential. Although governments can establish policy frameworks and diplomatic channels, he argues that businesses must ultimately drive investment, production and innovation.

“The private sector must remain the principal driver of bilateral economic relations,” he says, adding that stronger business forums, investment matchmaking, trade exhibitions and closer cooperation between chambers of commerce could help unlock opportunities that remain underutilised.

He also points to the importance of information in unlocking the full potential of bilateral trade. Many businesses, CP Khamis says, remain unaware of commercial opportunities available across the border. Diplomatic missions, government institutions and business organisations therefore have an important role in providing reliable market information and connecting investors with potential partners.

“Many businesses are still unaware of opportunities available across the border,” he says. “Government institutions, embassies and business organisations therefore have an important responsibility to provide reliable market information and connect investors with potential partners.” Beyond expanding trade, he says the composition of bilateral commerce should also evolve.

Future growth, he argues, should increasingly come from manufactured products, agro-processing, industrial inputs and technology-based industries rather than primarily from raw materials.

Greater emphasis on value addition, he notes, would strengthen industrialisation while increasing the economic benefits retained within the region. Improved transport infrastructure and digital connectivity, he adds, would further enhance competitiveness by lowering business costs and improving the efficiency of regional supply chains.

For CP Khamis, economic diplomacy is no longer measured simply by the number of agreements signed or official visits conducted. Its effectiveness, he says, should ultimately be reflected in thriving businesses, stronger institutional partnerships and improved livelihoods.

As Tanzania advances its economic diplomacy agenda, he sees closer engagement with Mozambique’s business community as an important component of broader efforts to strengthen regional integration and expand opportunities for Tanzanian enterprises operating beyond national borders.

CP Khamis says the future of Tanzania-Mozambique relations extends beyond expanding bilateral trade. In his view, the two countries are well positioned to contribute to Africa’s broader agenda of regional integration, industrial transformation and sustainable development.

ALSO READ: Unions told to strengthen democracy, social dialogue

The next phase of cooperation, he says, should align with national and regional development priorities while positioning both countries to benefit from emerging opportunities under the African Continental Free Trade Area (AfCFTA) and regional economic integration.

“Regional integration creates economies of scale,” he says. “African economies often face the challenge of relatively small domestic markets, but cooperation enables businesses to expand beyond national borders, attract investment and participate more effectively in regional and global value chains.” Closer collaboration between neighbouring countries, he says, can strengthen competitiveness by creating larger markets, encouraging industrial investment and supporting innovation. Integrated regional markets also make African economies more resilient to external shocks by diversifying production and strengthening supply chains.

The High Commissioner links this broader regional vision to Tanzania’s own long-term development aspirations. Implementation of Tanzania’s Development Vision 2050, he says, presents additional opportunities to strengthen cooperation with neighbouring countries in areas such as energy, transport, agriculture, education, science and technology. Regional partnerships can complement national development efforts by facilitating investment, improving productivity and expanding access to markets, according to CP Khamis.

The Tanzania’s High Commissioner to Mozambique also underscores the importance of developing human capital. Educational exchanges, vocational training, research partnerships and technology transfer, he says, can equip young people with the skills needed to support industrialisation and compete in an increasingly knowledge-based economy.

Strengthening collaboration between universities, research institutions and the private sector, he adds, would promote innovation while building the skilled workforce required for future economic growth. Climate resilience is another area where the envoy sees considerable scope for closer collaboration.

Neighbouring countries, he notes, face common environmental challenges, including the effects of climate change on agriculture, coastal ecosystems and water resources.

Sharing knowledge and coordinating responses in areas such as sustainable agriculture, marine conservation and environmental management, he says, would strengthen resilience while supporting long-term development objectives. High Commissioner CP Khamis argues that diplomacy must ultimately remain focused on delivering practical outcomes.

“My vision is to see Tanzania and Mozambique build an even stronger strategic partnership that moves beyond historical friendship towards shared prosperity, economic interdependence and regional leadership,” he says.

He hopes to see expanded investment flows, stronger institutional partnerships, integrated transport corridors, increased educational exchanges and closer business collaboration contributing to sustained economic growth in both countries. The envoy equally places particular emphasis on border communities, saying they should become among the principal beneficiaries of closer bilateral cooperation.

Improved infrastructure, expanded trade opportunities and greater connectivity, he says, can stimulate local economic activity while strengthening the peopleto-people ties that have characterised the partnership for generations. Ultimately, he says, the success of diplomacy should be judged not by official ceremonies or the number of agreements signed, but by its impact on ordinary citizens.

“Ultimately, diplomacy is about people,” he says. “Its greatest success is measured by its contribution to peace, prosperity, dignity and improved livelihoods.” More than six decades after the bonds of solidarity were forged during Southern Africa’s liberation struggles, Tanzania and Mozambique have an opportunity to redefine their relationship for a new generation, he says. While history remains an enduring source of trust, the partnership’s future will increasingly be shaped by trade, investment, industrial development and regional cooperation.

For CP Khamis, that transition reflects the changing role of diplomacy from preserving political friendship to creating the conditions for economic transformation. If realised, he says, the next chapter of Tanzania-Mozambique relations will be defined not only by a shared past, but also by a shared commitment to prosperity, resilience and sustainable development.