- As Tanzania and Egypt double down on pan-African dreams, a stubborn $24.1 million deficit raises an uncomfortable question: Is this a genuine strategic partnership, or simply a one-way street disguised as unity?
Tanzania and Egypt have reaffirmed their commitment to strengthening their strategic partnership, with renewed focus on advancing the African Continental Free Trade Area (AfCFTA), the African Union’s Agenda 2063 and efforts to build a peaceful, united and prosperous Africa.
While Tanzania’s Deputy Minister for Foreign Affairs and East African Cooperation, Dr. Ngwaru Maghembe, maintains that trade between the two countries are mutually beneficial and that Tanzania remains committed to deepening trade relations with Egypt, Tanzania has a trade deficit of $24.1 million with Egypt.
“Exports reached $36.8 million while imports totaled $60.9 million, reflecting Egypt’s dominant position in bilateral trade,” reports the Observatory July report on ‘Tanzania/Egypt trade.
However in line with the Deputy Minister Maghembe’s view, the report highlights the most recent official data that shows; “Over the past 5 years, exports from Tanzania to Egypt increased at an annualized rate of 40.3%, growing from $6.77 million in 2019 to $36.8 million in 2024.”
Notably, during that time, the top exports from Tanzania to Egypt were raw tobacco ($29.8 million), ground nuts ($0.98 million), and Coffee ($0.906 million).
On the other hand, the top exports from Egypt to Tanzania were Raw Sugar ($7.41 million), Prefabricated Buildings ($5.28 million), and Iron Structures ($3.51 million).
Tanzania and Egypt investment corridor
It should aslo be noted that Egypt is Tanzania’s eighth largest source of foreign investment. Egypt has at least 61 ongoing registered projects worth approximately $1.5 billion that have created jobs for more than 4,000 Tanzanians.
The Egyptian projects are in key areas of investment covering a wide range of sectors including energy, manufacturing, construction, agriculture, tourism and services.
According to a Tanzanian government, the two countries have outlined priority areas of cooperation aimed at accelerating strategic projects in transport, ports, agriculture, energy, water and industry to expand bilateral trade, attract investment and create jobs.
According to the government document, Tanzania’s president Dr. Samia Suluhu Hassan, inked the cooperation agreement alongside her Egyptian counterpart, His Excellency Abdel Fattah El-Sisi during his State Visit to the country in July.
The document made it clear that; “two leaders underscored the need to translate their longstanding political ties into bankable projects and stronger private-sector partnerships.”
The new drive for increased trade cooperation comes on the backdrop of the two presidents acknowledging that current trade volumes remain below the potential of the two economies.
To get things moving, Tanzania invited Egyptian investment in the expansion of the Port of Dar es Salaam and the development of Bagamoyo Port, two priority development areas.
The proposed projects will include construction of a railway link to connect Bagamoyo Port to Kwala Industrial Park and the Standard Gauge Railway network, details the press document.
Other investment areas agreed upon by the two countries are maritime connectivity and direct shipping services backed by modern cargo handling, storage and distribution infrastructure.
Tanzania and Egypt development potential
Once realised, the development of the corridor will in effect connect East and Southern Africa with Egypt, the Middle East, Asia and Europe via the Indian Ocean, the Red Sea, the Suez Canal and the Mediterranean. Other development areas include agriculture, particularly in irrigation, seed production, rainwater harvesting, livestock development and agro-processing.
“Tanzania also invited Egyptian investors to undertake large-scale agricultural projects at Ruvu Ranch and through partnerships with the National Service, Tanzania Prisons and the National Food Reserve Agency,” reads the press communique in part.
In his remarks, Egypt’s President El-Sisi said his country is willing to participate in the suggested flagship agricultural project under a public-private partnership model, aimed at supporting food security and expanding agricultural trade between the two countries.
Overall, Egypt committed to support Tanzania across a wide range of areas that even cover education and healthcare, with a focus on specialised training, scholarships and advanced medical services.
Under the agreement, Egypt will provide scholarships under the Samia Scholarship Programme in science, medicine, artificial intelligence, ICT and cybersecurity.
In the health sector, Egypt will rehabilitate at least one referral hospital, “subject to identification by the Government of Tanzania,” the document said and provide specialist medical training in cardiac, kidney, liver and cancer care to Tanzanian doctors.
Summing it all up, President Samia said; “We have agreed to move quickly. What we need now is trust, decisive action and timely implementation of what we have agreed on.”
The GERD factor?
Egypt has treated the Nile as a core national security interest, embedding water security within its constitutional and strategic frameworks…” the comment was made by the analyst Ephrem B Hidug in his review of the recent visit to Egypt by a US Senior Advisor for Arab and African Affairs.
He notes that of late, Cairo has strengthened its position through bilateral cooperation with Sudan and Somalia, engagement with the Arab League, active diplomacy in international forums, and by leveraging its geopolitical importance in the Red Sea and the Middle East.
Simillarly, the Middle East Institute points out that; “Egypt uses strategic investments and diplomatic outreach in East Africa and the Nile Basin to counter Ethiopia’s Grand Ethiopian Renaissance Dam (GERD), focusing primarily on Tanzania, Djibouti, and Somalia.”
This begs the question, are the ongoing investments in Tanzania by Egypt based on ‘trust,’ as Tanzania president Dr. Samia said? Or is Egypt mounting up suppport against the 74 billion cubic meter reservoir, GERD with a whopping 150 MW power generating capacity?
In the wake of Egypt’s presidential visit to Tanzania, last week, the country held celebrations to mark the 74th anniversary of the Revolution of the Arab Republic of Egypt.
The celebrations were attended by high ranking government officials from both sides and served as a platform to reassert comitment expanding cooperation.
Reflecting on the Egyptian president’s visit, Tanzania’s Deputy Minister Maghembe underscored that; “The visit opened a new chapter in strengthening strategic cooperation and diplomatic relations between the two countries for the benefit of the people of Tanzania and Egypt.”
He congratulated Egypt on the 74th anniversary of its Revolution, and pointed out that since then, Egypt has made significant progress in developing infrastructure, promoting sustainable development and maintaining peace.
Egyptian High Commissioner to Tanzania Sherif Ahmed Ismail thanked Tanzania for promoting economic diplomacy and creating a favourable environment for trade and investment cooperation.
When all is said and done, Tanzania is now a recipient of incresed Egyptian investment, and this will serve to help the country achieve its own development priorities, GERD politics aside.
