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Creation of Trade Hub in Tanzania to Boost Russian Presence in Africa, Says Russian Ambassador

12:21, 3 August 2024

MOSCOW (Sputnik) - Strategically located on the East African coast, Tanzania’s ports are pivotal for connecting landlocked countries in East and Southern Africa to global markets. This strategic position, along major trade routes, enhances Tanzania’s potential as a regional trade hub.

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Tanzania is attractive for Russia in the context of creating a major trade hub in the country because of its favorable geographical location and political stability, and cooperation with the country will further develop Russia's presence on the continent, Russian Ambassador to Tanzania Andrey Avetisyan told Sputnik.

"Tanzania has access to the Indian Ocean and is located on the routes to the south of the continent or to Southeast Asia. In addition to this favorable geographic location, there is also political stability and the Tanzanian establishment's focus on attracting foreign investors. Of course, with such initial data, Tanzania is very attractive for us to create a major trade hub to further develop the Russian presence on the continent," the ambassador said.

There are two possible forms of cooperation in this area, Avetisyan said, adding that the first involves the construction of a large port in the town of Bagamoyo, located near the country's largest city and financial hub of Dar es Salaam.

The second option is to use the existing ports in Tanga, Mtwara, and Dar es Salaam, which are the largest and busiest, handling the majority of the country’s cargo traffic, the diplomat noted.

"All three [ports] have been recently modernized and are capable of handling vessels of all sizes and drafts. The port facilities include modern quay walls and necessary unloading equipment, and storage facilities are available," Avetisyan said.

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Anything related to Tanzania's ports attracts foreign investors, the ambassador added.

"Against the general background, the UAE, which has almost monopolized the operational management of the port of Dar es Salaam, is still ahead. However, the UAE, and India and China, which are also active in this area, maintain partnership and constructive relations with Russia, so in principle, there is nothing preventing us from cooperating and sharing all the risks and benefits," Avetisyan noted.

Another promising aspect of cooperation between Russia and Tanzania is geological exploration, the ambassador said.

"Tanzania has significant energy potential ... Local energy resources include hydropower, uranium, natural gas, coal and renewable energy sources," Avetisyan added.

Tanzania is also actively developing the gas industry, with about 1.6 trillion cubic meters of potential reserves, he said.

Currently, there are no projects implemented by Russian oil and gas companies in Tanzania, but the African country's shift to a more open policy has already attracted the attention of major Russian companies, the ambassador noted.