Why BRICS’ de-dollarisation won’t affect Tanzania

DODOMA: THE government has assured that the BRICS bloc’s move towards de-dollarisation will not directly impact Tanzania, as the country is not currently a member of the group.

Deputy Minister for Finance, Mr Hamad Chande, gave the clarification in the National Assembly in Dodoma yesterday while responding to questions from Mwera legislator Mr Zahor Mohamed Haji.

“Tanzania is not a member of BRICS but participates in its meetings as an observer,” Mr Chande said.

BRICS is an intergovernmental organisation comprising ten member countries- Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.

It was established to unite major emerging economies and serve as a counterbalance to the political and economic dominance of North America and Western Europe.

During the session, Mr Haji asked the government to outline potential benefits and risks for Tanzania in light of BRICS’ de-dollarisation efforts.

In response, Mr Chande said that Tanzania has maintained long-standing and productive relations with BRICS founding members which are Brazil, Russia, India, China and South Africa, in key sectors such as trade, economic cooperation and diplomacy.

“These ties are further reinforced by the continued presence of embassies of BRICS member states in Tanzania and Tanzania’s embassies in those countries,” he noted.

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He added that Tanzania continues to benefit from its bilateral relationships with BRICS countries, leveraging economic opportunities and enhancing diplomatic engagement.

“Honourable Speaker, while Tanzania is not a BRICS member, any economic or financial impacts related to the bloc’s withdrawal from the dollarisation system will not directly affect our country,” Mr Chande reaffirmed.

In a follow-up question, MP Haji argued that since BRICS is a strategic economic alliance emerging in an era of global economic intelligence, Tanzanian financial experts should explore how the country might benefit from closer engagement with the bloc, rather than remaining a passive observer.

Acknowledging the suggestion, the deputy minister welcomed the MP’s input and promised to take it under consideration.

“Thank you for your advice. I assure you the ministry will look into how Tanzania might benefit more effectively from engagement with the BRICS alliance,” Mr Chande said.