Tanzania pushes to move away from the U.S. dollar as ties with Russia deepen

Tanzania pushes to move away from the U.S. dollar as ties with Russia deepen

Tanzania is strengthening relations with Russia as it looks to reduce dependence on the U.S. dollar in international trade. Foreign Minister Mahmoud Thabit Kombo recently delivered a personal message from President Samia Suluhu Hassan to President Vladimir Putin in Moscow, highlighting plans for expanded cooperation.

The two countries are discussing the timing and location of a third Russia–Africa summit, while bilateral trade…currently estimated at around $400 million…is dominated by Russian exports such as grain and fertilizer.

From 2024, Tanzania and Russia plan to conduct parts of their trade using their national currencies instead of the dollar. Cooperation is also growing in energy, agriculture, and tourism.

Tanzania is not alone. Several African countries have been exploring alternatives to dollar-based trade, including: • Egypt, which has used local currency mechanisms within BRICS-related arrangements

• Ethiopia, which has discussed settlement in non-dollar currencies for imports
• Nigeria, which has expanded yuan-based trade agreements with China
• South Africa, which supports BRICS payment systems aimed at reducing dollar dependence

The shift reflects a broader global trend as some nations seek financial independence, protection from sanctions, and reduced exposure to currency fluctuations.