Tanzania's and Moscow's chambers of commerce and industry are planning to sign a Memorandum of Understanding (MoU) before the end of the year to facilitate business relations and work out a program of joint activities, Francis Lukwaro, the chairman of the Dar Es Salaam Regional Chamber at the Tanzania Chamber of Commerce, Industry and Agriculture, told Sputnik.
MOSCOW (Pakistan Point News / Sputnik - 30th October, 2018) Tanzania's and Moscow's chambers of commerce and industry are planning to sign a Memorandum of Understanding (MoU) before the end of the year to facilitate business relations and work out a program of joint activities, Francis Lukwaro, the chairman of the Dar Es Salaam Regional Chamber at the Tanzania Chamber of Commerce, Industry and Agriculture, told Sputnik.
"I am not sure [when we will sign a MoU] but it will be very soon because we have agreed that the MoU draft will be in preparation now. So it might be two weeks, it might be a month, but not beyond 2018," Lukwaro said.
He added that the two chambers still had to work out the priorities that would be outlined in the future agreement.
"Normally the Chamber of Commerce's responsibility is to help people meet, so our duties to engage may be to organize business forums in Tanzania for Russian companies to come in, and the Russian part to invite Tanzanian businessmen to come and meet Russian business people. This way they can all discuss internally and agree on the type of business they want to do in joint ventures," he added.
Speaking about the current business ties between the two nations, Lukwaro stressed the need to upgrade the existing model of cooperation and put more emphasis on partnerships.
"To be honest, there are already businesses between the two countries, but that is an old fashioned trend. What we are now putting on as an emphasis is to move forward more broadly in partnerships. This is what we are trying now to discuss," he clarified.
According to Lukwaro, Tanzania sees mining as one of the key areas of investment due to the country's "plenty of mines which are not developed" and the experience Russia has in the area.
"Russia should join the mining investment; so they would meet Tanzanian investors who [will form] a partnership, then Russian investors can bring the equipment. Then the Tanzanian partners will work on the land acquisition and all this," Lukwaro pointed out.
Another promising area for Russian investment is the healthcare sector, he noted.
"Number two would be on the health sector. We now move very fast to develop our health sector, so we need pharmaceutical industries. Tanzania has one tender to supply pharmaceuticals to the SADC [Southern African Development Community] countries, so any investor in Russia who wants to engage in that, then Tanzania is advantageous," Lukwaro said, reiterating that Russian investors would see a broad market for investment.
Finally, Lukwaro mentioned the "burgeoning" agricultural sector in Tanzania as another potential area for cooperation and, in particular, the demand for agricultural equipment.
On October 11, Russian President Vladimir Putin said Russia was open to deepening mutually beneficial ties with Tanzania, in particular, in the nuclear power and defense industry. The Russian leader also welcomed the efforts of the Tanzanian government aimed at maintaining peace and security on the African continent.
