Economic diplomacy delivers tangible gains
DODOMA: TANZANIA’S commitment to economic diplomacy is yielding significant gains, marked by remarkable growth in trade, investment and tourism, an expanded global presence, successful acquisition of funds for major national and regional projects and substantial debt relief. Presenting the Ministry of Foreign Affairs and East African Cooperation budget for the 2025/2026 fiscal year in Dodoma, …
DODOMA: TANZANIA’S commitment to economic diplomacy is yielding significant gains, marked by remarkable growth in trade, investment and tourism, an expanded global presence, successful acquisition of funds for major national and regional projects and substantial debt relief.
Presenting the Ministry of Foreign Affairs and East African Cooperation budget for the 2025/2026 fiscal year in Dodoma, the Minister of the docket, Ambassador Mahmoud Thabit Kombo highlighted significant strides made in the robust pursuit of economic diplomacy to boost trade, investment and tourism across the globe.
The minister said Tanzania has notably expanded its global footprint through the strategic opening of two new Embassies: one serving as the Permanent Representation to the United Nations in Vienna, Austria, and another in Jakarta, Indonesia.
Additionally, two new Consulates General were established in key economic hubs, namely Lubumbashi in the Democratic Republic of Congo and Guangzhou in the People’s Republic of China, he said.
These additions bring Tanzania’s total diplomatic presence to 45 Embassies and five Consulates General worldwide, designed to enhance consular services and foster stronger bilateral ties.
The minister said the country’s diplomatic efforts have also been instrumental in securing crucial funding and facilitating major infrastructure projects across the nation and region, alongside achieving significant debt relief.
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Noteworthy successes include the acquisition of funds for the Gerezani Bridge project in Dar es Salaam, the development of the Malindi Fish Market in Zanzibar and the expansion of Terminal 3 at Abeid Amani Karume International Airport in Zanzibar, he said.
Ambassador Kombo said a major financial victory was the successful coordination of the forgiveness of an oil debt from the government of Iran, amounting to approximately 138,007,675.44 US dollars. Through diplomatic negotiations, Tanzania will now pay an interest-free debt of 77,728,907.03 US dollars over five years.
On the regional front, the Ministry facilitated the commencement of the Lusahunga – Rusumo/Kayonza – Kigali Road construction project (162 km), financed by the World Bank with 72 million US dollars, which is set to boost trade linking Tanzania with Burundi, Rwanda and the Democratic Republic of Congo.
Furthermore, the Ministry coordinated the successful implementation of the Regional Rusumo Falls Hydroelectric Project (RRFHP), a joint initiative with Burundi and Rwanda utilising the Kagera River, which now generates 80 Megawatts of electricity, with each nation receiving 27 Megawatts.
Financial backing was also secured from the African Development Bank (AfDB) for the construction of a section of the Tanga – Bagamoyo/Malindi – Lunga Lunga Road (400 km), with Tanzania’s portion covering 256 kilometres of the Bagamoyo – Pangani – Tanga road.
The Ministry facilitated the acquisition of 47.4 million US dollars from AfDB for the construction of the Manyovu/Mugina One Stop Border Post (OSBP) at the Tanzania-Burundi border, expected to be completed by May 2026, he said.
Amb Kombo said through diplomatic negotiations, direct flight permits were successfully secured for Air Tanzania Company Limited (ATCL) from Dar es Salaam and Zanzibar to strategic destinations, including Bujumbura, Dubai, Guangzhou, Harare, Kinshasa, Lagos, Lubumbashi, Lusaka, Ndola and Windhoek.
That also included the reinstatement of ATCL flights between Dar es Salaam and Johannesburg, South Africa, he said, adding that this expanded air network is expected to significantly stimulate business opportunities, tourism, the blue economy and investment.
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Amb Kombo said further demonstrating its diplomatic influence, the Ministry successfully lobbied the United Arab Emirates to open a Consulate General office in Zanzibar. In a reciprocal gesture of growing international interest, seven other countries – France, the United Kingdom, Italy, Germany, Spain, Sweden, and Brazil have established Honorary Consular offices in Tanzania.
These developments are crucial in streamlining consular services, including visa processing, and are expected to significantly stimulate trade, tourism and investment flows between Tanzania and these nations.
Beyond establishing new missions, the Ministry played a crucial role in facilitating Tanzania’s active participation in 90 visits by high-level national leaders to various countries globally, he said.
These engagements were instrumental in strengthening bilateral cooperation, culminating in the signing of 161 agreements and Memoranda of Understanding across diverse sectors.
In return, Tanzania welcomed 31 visits from foreign Heads of State, Government and leaders of regional and international organisations, each leading to concrete cooperation agreements that benefit the nation.
The direct impact of the Ministry’s economic diplomacy is evident in the remarkable growth of Tanzania’s tourism sector. Diplomatic efforts, significantly bolstered by the personal involvement of President Samia Suluhu Hassan, particularly through initiatives like the “Tanzania: The Royal Tour” film, contributed to a surge in foreign tourist arrivals.
The numbers soared from 1,711,625 tourists in 2021 to a substantial 5,360,247 in 2024, showcasing a tangible return on diplomatic investment.
The Minister said the coordinated implementation of economic diplomacy has directly contributed to a notable increase in market access for Tanzanian goods abroad. The value of these exports grew from 6,371.7 million US dollars in 2020 to 7,696.6 million US dollars in 2023, representing a robust 21 per cent increase.
He said within the East African Community (EAC), while overall Tanzanian exports saw a slight decrease to1,163.77 million US dollars in 2024 (attributed to US Dollar exchange rate fluctuations), the country maintained a positive trade balance of 636.50 US million dollars.