Tanzania inks agreement to pay its debts to Iran

Based on an agreement signed between Tanzania and Iran, the African country will pay its debts to Iran, an official with Organization for Investment, Economic and Technical Assistance of Iran announced on Monday.
Ali Fekri, the director-general of the foreign investment-making office of the mentioned organization, said by signing this agreement on the payment of the country’s debts, Tanzania pays seven million dollars of its debts to Iran per month, IRIB reported.

After signing the mentioned agreement, Fekri told IRIB that this agreement is about the payment of debts that the government of Tanzania had to the government of the Islamic Republic of Iran in the past, which is related to several decades, but because the 13th government follows the policy of developing cooperation and investment with different governments, it was decided that the existing obstacles to facilitate relations should be removed, and Tanzania, considering its long-standing relations with Iran, was among the countries that were interested in this policy.

It was decided that the Tanzanian government would pay seven million dollars of its debts in the form of the first installment to start the cooperation, so that the rest of the debts would be paid to Iran every month based on the agreed schedule, the official further announced.

Tanzania is considered one of the most important countries in East Africa and Iran is taking new measures to expand economic ties with this country.
In late November 2022, Iran’s Trade Promotion Organization (TPO) held the first exclusive exhibition of Iranian products and services in Tanzania in collaboration with the Iranian Trade Center in the African country to showcase the Islamic Republic’s trade and export capacities.

According to Ra’ed Mousavi, the head of the Iranian Trade Center in Tanzania, this exhibition was the most appropriate platform to increase the knowledge of East African countries, especially Tanzania, about the products, services, and technological advancements of Iranian companies.

According to Mousavi, companies active in various fields including the agricultural sector, mines and industrial machinery, construction, as well as medicine and medical equipment participate in the first exclusive exhibition of the export capabilities of the Islamic Republic of Iran in Tanzania.

In mid-July 2023, President Ebrahim Raisi also took a visit to three African countries of Kenya, Uganda, and Zimbabwe.
Economic experts believe that the president’s visit to Africa provided the basis for increasing Iran’s presence in the 60-billion-dollar economy of the African continent and will increase the level of activity of Iranian traders and businessmen in this continent.

Over the past 40 years, the Islamic Republic of Iran has never given up on its principled policy towards Africa due to political and cultural commonalities, despite the sanctions, pressure and disruptions of the West, and has always maintained itself alongside the people and countries of Africa.

As reported, during the Iranian calendar years 1384 and 1385 (March 2005-March 2007), the relations between Iran and the African continent increased in terms of trade, but since 1386, the economic relations between Iran and Africa have decreased due to the economic crisis and cruel sanctions against Iran.

Surveys show that in the past years, due to the lack of restoration of economic relations with Africa, the amount of trade with the countries of this continent has remained at the level of $1.2 billion, but according to Mohammed-Sadeq Qanadzadeh, the director general of the Africa Department of Iran’s Trade Promotion Organization (TPO), facilitating the trade route with Africa is happening now and it is expected that the trade figure with this continent will reach $10 billion in the next three years.

In fact, good steps have been taken to use Africa’s capacity, and Africa can be a suitable market for Iranian goods, Qanadzadeh stated.