YAKOBE CHIWAMBO: RUSSIANS are among the potential investors identified to boost the country\’s Kilimo Kwanza (Agriculture First) Initiative. Industries and Trade Minister Mary Nagu said Russia had advanced in science and technology and machinery and this is what is required to boost agriculture as well as agro-business.
“If we collaborate well with Russians the Kilimo Kwanza Initiative will succeed. The Russians have numerous machinery for the agriculture sector and other machines for processing agricultural products,” she noted. She spoke at Russian and Tanzania Economical Forum in Dar es Salaam last year.
The visiting delegation consisted of officials from the Russian Chamber of Commerce, and chief executive officers of prominent companies in Russia that deal with a range of products including agricultural equipment, oil and gas exploitation machineries.
Nagu said Tanzania had a history of exporting raw materials- especially agricultural products -instead of finished products due to lack of processing machines. According to experts, the exportation of raw material denies many Tanzanians jobs.
“Our priority is to increase our processing capacity so that we can stop exporting raw products and instead promote the Kilimo Kwanza program,” said the minister.
Therefore, she called on the business community present during the forum to share their experiences with the delegation and form joint ventures with them. Nagu said the government was trying what it takes to attract direct foreign investments that are beneficial to the country as well as the the investors.
However, Nagu said the country promoted joint ventures when compared to any other way of investing. Despite the fact that the two countries have both socialistic backgrounds, Tanzania has been importing more than what it has been exporting to Russia.
For instance, between 2004 and 2008 Tanzania\’s exports to Russia grew from Tsh1,412million to Tsh 5,985million while Russia\’s exports to Tanzania grew from Tsh2,278million to Tsh87,823million within the same period.
The minister emphasized that the trade imbalance could be reduced through realization of Kilimo Kwanza and agro-processing machinery that Russia can easily provide.
She, therefore, called upon Russians to invest more as they are assured of benefiting from countless hectares of arable land that the country has and a wide market in EAC and SADC and Comesa trading bloc where Tanzania is a member.
“We shall all benefit from this wide market, just invest more as you are assured of a wide market as well as cheap labour that Tanzania always offers,” noted Nagu.
In addition, the minister stressed the political stability, natural resources and places of tourist attractions places and 44 million hectares as other factors that should attract Russians to invest in the country.
Speaking on the same occasion, Tanzania\’s ambassador to Russia, Jaka Mwambi said he was impressed with the way Russians are investing in Tanzania as within a short period they have invested over $80million.
Despite Tanzania having invested less than $20million in that country, Mwambi said, it was important that both Tanzania and Russia benefited in trade partnerships..
“Few Tanzanians have shown interest in investing in Russia. However, I believe more and more Tanzanians will develop interest in investing in Russia so that we create a fifty-fifty game,”said Mwambi