By Muluneh Gebre – A Russia-Africa pre-summit roundtable was held on Wednesday in the Ethiopian capital, Addis Ababa with Moscow looking to establish and strengthen a full strategic partnership with Africa.
The Roundtable dubbed “On the Road to the Second Russia-Africa Summit’ dwelt on key aspects on the preparation of the Second Summit Russia–Africa Economic and Humanitarian Forum that will be held in St. Petersburg late this month—as well as the need to forging economic and trade cooperation with African countries.
Opening the event, Russian Federation Ambassador to Ethiopia and Permanent Representative to the African Union (AU) Evgeny Terekhin said Russia will continue to give priority and strengthen cooperation with African countries.
The ambassador said the Second Summit Russia–Africa Economic and Humanitarian Forum will serve as a platform to strengthen political, economic and humanitarian cooperation and open up new chapters of cooperation with Africa.
Speaking to New Business Ethiopia, Terekhin said the United States and Europe have imposed several sanctions on Russia following the Russia- Ukraine conflict and that exacerbated problems in the supply of fuel, fertilizer and wheat to African countries.
“More than 300,000 tons of fertilizer which was destined to Africa has been confiscated in various ports of Europe” the Ambassador told New Business Ethiopia blaming the west for not willing to distribute the input to Africa even for free.
“The west executed a conspiracy policy, denying the Russian companies access to vessels, payment and insurance services and even though they are willing to transport the goods to Africa and other parts of the world,” he said.
Igor Morozov, Chairman of AFROCOM, a coordinating committee in charge of facilitating economic cooperation between the Russian Federation and African countries, told New Business Ethiopia that the summit is part of Russia’s push to create a multipolar world where all voices are heard.
“Russia has established one of the most developed digital economies in the world and it wants to bring those technologies to Africa,” said Morozov, noting that the Russian Federation also aims at introducing competitive technology to the continent.
“We will bring in huge businesses and companies to Africa that will see the continent as a strategic priority,” Morozov told New Business Ethiopia. He said the classification of the Soviet Union had created a power vacuum, creating a unipolar world and Russia wants to play a leading role in the creation of a multipolar world.
Africa – Russia Trade
Russia’s trade volume with Africa has been steadily increasing over the years. The economic relationship between Russia and Africa has gained momentum, with both sides recognizing the potential for mutually beneficial trade and investment opportunities. While Russia’s trade with Africa is not as significant as its trade with other regions, such as Europe or Asia, it has been growing steadily and shows promising signs for future expansion.
Russia’s trade volume with Africa reached $20 billion in 2019, marking a significant increase from previous years, according to availlable data. This growth can be attributed to various factors, including increased political engagement, trade agreements, and investment initiatives between Russia and African countries.
One of the key drivers of Russia’s trade with Africa is the energy sector. Russia is a major exporter of oil, gas, and nuclear technology, which are in high demand in many African countries. Russian energy companies have been actively involved in exploration, production, and infrastructure development projects across the continent. These partnerships have not only boosted trade but also contributed to Africa’s energy security and infrastructure development.
Another important sector in Russia-Africa trade is mining. Russia has a wealth of experience and expertise in mining operations, particularly in sectors such as diamonds, gold, and platinum. African countries with abundant mineral resources have sought Russian expertise to develop their mining industries. This collaboration has led to increased trade in minerals and mining equipment between Russia and Africa.
In addition to energy and mining, there are other sectors where Russia has been actively engaged in trade with Africa. These include agriculture, machinery, telecommunications, pharmaceuticals, and military equipment. Russian agricultural products such as wheat, barley, and sunflower oil have found a market in African countries. Russian machinery and equipment have also been exported to support various infrastructure projects across the continent.
To further enhance trade relations with Africa, Russia has been actively participating in various forums and initiatives. One notable initiative is the Russia-Africa Summit held in Sochi in 2019. The summit brought together leaders from Russia and African countries to discuss and explore opportunities for trade, investment, and cooperation. The event resulted in the signing of numerous agreements and memoranda of understanding, further strengthening economic ties between Russia and Africa.
Russia’s Major Investments in Africa
Russia has been increasing its presence and investment in Africa in recent years, aiming to strengthen economic ties and expand its influence on the continent. The country has identified several major investment projects in various sectors across Africa. These projects encompass areas such as energy, infrastructure, mining, agriculture, and telecommunications.
One of the significant investment projects is the construction of nuclear power plants. Russia’s state-owned nuclear company, Rosatom, has been actively involved in this sector. In 2014, Russia signed an agreement with Egypt to build Egypt’s first nuclear power plant in El Dabaa. The project is estimated to cost around $30 billion and will consist of four reactors with a total capacity of 4,800 megawatts. This project aims to help Egypt meet its growing energy demands and reduce its reliance on fossil fuels.
Another notable investment project is the development of transport infrastructure. Russia has shown interest in investing in Africa’s railway systems to improve connectivity and facilitate trade. For instance, Russian Railways (RZD) has signed agreements with several African countries, including Egypt, Nigeria, Angola, and Mozambique, to modernize and expand their railway networks. These projects aim to enhance transportation links within countries and across borders, promoting regional integration and economic growth.
In the mining sector, Russia has been involved in various projects across Africa. One example is the Alrosa diamond mining company’s operations in Angola. Alrosa is one of the world’s leading diamond producers and has established partnerships with Angolan companies to explore and develop diamond deposits in the country. This collaboration aims to boost Angola’s diamond industry and contribute to its economic diversification.
Furthermore, Russia has also invested in agriculture projects in Africa. The Russian Direct Investment Fund (RDIF) has partnered with African countries to develop large-scale agricultural projects aimed at increasing food production and ensuring food security. For instance, RDIF has invested in a joint venture with Egypt to develop a 13,000-hectare agricultural complex in the country. This project aims to cultivate various crops, including wheat, corn, and soybeans, to meet domestic demand and potentially export to other African countries.
Additionally, Russia has been involved in the telecommunications sector in Africa. The Russian telecommunications company, Rostelecom, has signed agreements with several African countries to provide telecommunication services and develop digital infrastructure. These projects aim to improve internet connectivity, expand access to mobile services, and promote digitalization in Africa.
It is important to note that while Russia’s investment projects in Africa present opportunities for economic development and cooperation, they have also raised concerns about debt sustainability and geopolitical implications. Some critics argue that these investments may lead to increased dependency on Russia or exacerbate existing debt burdens in African countries. However, proponents argue that these projects can contribute to Africa’s development by providing much-needed infrastructure and fostering economic growth.
In general, Russia has identified several major investment projects in Africa across various sectors such as energy, infrastructure, mining, agriculture, and telecommunications. These projects aim to strengthen economic ties between Russia and African countries while promoting development and cooperation. However, it is crucial for both Russia and African nations to ensure that these investments are sustainable and mutually beneficial.
Africa and Russia Historical Relations
The historical relations between Africa and Russia have evolved over several centuries, encompassing various aspects such as trade, diplomacy, cultural exchange, and political cooperation. These relations have been shaped by a complex interplay of factors including colonialism, the Cold War, decolonization movements, and contemporary geopolitical dynamics. This comprehensive analysis will delve into the key historical milestones and developments in Africa-Russia relations.
1. Pre-Colonial Era
The earliest interactions between Africa and Russia can be traced back to the pre-colonial era when Russian explorers ventured into Africa. One notable example is the expedition led by Yermak Timofeyevich in the late 16th century, which reached the shores of North Africa. However, these early contacts were limited in scope and did not establish significant long-term connections.
2. Colonial Era
During the colonial period, Russia did not possess any significant colonial territories in Africa. However, it expressed support for anti-colonial movements and provided assistance to African nationalists fighting against European colonial powers. The Soviet Union, which emerged after the Russian Revolution in 1917, actively supported African independence movements through ideological and material aid.
3. Cold War Era
The Cold War era marked a significant turning point in Africa-Russia relations. The Soviet Union sought to expand its influence on the African continent by supporting newly independent states that emerged from decolonization struggles. Moscow provided military aid, economic assistance, and technical expertise to various African countries aligned with socialist or non-aligned ideologies.
One of the most prominent examples of Soviet involvement was during the Angolan Civil War (1975-2002). The Soviet Union supported the leftist People’s Movement for the Liberation of Angola (MPLA) against other factions backed by Western powers. This conflict became a proxy battleground between the United States and the Soviet Union.
4. Post-Cold War Era
With the collapse of the Soviet Union in 1991, Africa-Russia relations underwent a period of reevaluation and adjustment. Russia’s focus shifted away from Africa as it faced internal challenges and underwent political and economic transformations. During this period, African countries sought to diversify their international partnerships and engage with a broader range of global actors.
5. Contemporary Relations
In recent years, there has been a renewed interest from both Africa and Russia in strengthening their bilateral ties. Russia has sought to reestablish its presence in Africa through increased diplomatic engagement, economic cooperation, and military partnerships. This has been exemplified by high-level visits between Russian and African leaders, the establishment of joint economic commissions, and the signing of various agreements in sectors such as energy, infrastructure, and defense.
Russia’s engagement with Africa is driven by several factors, including its desire to access Africa’s market, its vast natural resources, expand its merchandizes exports market for manfactured goods including arms, counterbalance Western influence on the continent, and enhance its geopolitical standing globally.
African countries also view Russia as a potential partner that can provide investment opportunities, technological expertise, and an alternative to traditional Western partners.