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Natural gas

Tanzania Seeks Russian Investment in Strategic Sectors

Strategic Insights

— 2 min read

Tanzania's government has invited Russian investors to explore opportunities in natural gas, smartphone assembly, and digital technology, in a bid to accelerate industrial development and strengthen bilateral trade relations. The country is seeking international partnerships to bolster its economic capacity and is offering fiscal and non-fiscal incentives to support investors in digital hardware manufacturing. Despite having a long history of diplomatic relations, trade between Tanzania and Russia remains limited, with Tanzania importing $2.26 billion worth of goods annually from Russia, while exports to Russia total just $5.8 million.

Key Takeaways:

  • Tanzania is seeking Russian investment in natural gas, smartphone assembly, and digital technology to accelerate industrial development and strengthen bilateral trade relations.
  • The country has over 80,000 registered industries, but only 57 currently use natural gas for energy and industrial operations.
  • Tanzania wants to work with Russian companies to develop its natural gas sector for power generation and industrial processing.
  • The government is offering fiscal and non-fiscal incentives to support investors in digital hardware manufacturing, including mobile phone assembly plants.
  • Tanzania's investment climate has improved significantly, thanks to stable economic indicators, regulatory reforms, and clear financial policies.
  • Trade between Tanzania and Russia remains limited, with Tanzania importing over $2.26 billion worth of goods annually from Russia, while exports to Russia total just $5.8 million.
  • Russia's representative, 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.
  • Tanzania's government is committed to maintaining a predictable and attractive investment environment, and is seeking to build an inclusive and diversified economy driven by industrial growth and technological innovation.

Statistics:

  • Tanzania has over 80,000 registered industries, but only 57 currently use natural gas for energy and industrial operations.
  • Tanzanian households: 5,000 vehicles run on compressed natural gas, while only 1,500 households are connected to piped cooking gas.
  • Tanzania imports an average of $2.26 billion (about Sh5.93 trillion) worth of goods annually from Russia.
  • Tanzanian exports to Russia total just $5.8 million.
  • The Tanzania National Business Council (TNBC) has identified Russian companies as key partners in developing the country's natural gas sector.

Sources:

  • "Tanzania seeks Russian investment in strategic sectors, CE Magazine, June 2022, .
  • "Tanzania's executive secretary of the Tanzania National Business Council (TNBC), Dr Godwill Wanga, during the 49th Dar es Salaam International Trade Fair (DITF), Tanzania Daily News, June 2022.
  • "Tanzania's investment climate has improved significantly, thanks to stable economic indicators, regulatory reforms under the Blueprint for Regulatory Reforms, and clear financial policies, Tanzania Daily News, June 2022.
  • "TanTrade's Lulu Mkude, Tanzania Daily News, June 2022.

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