When the African Continental Free Trade Area (AfCFTA) was initially proposed at the African Union summit in 2012, it had two goals: First, build a pan-African agenda in trade and cooperation. Second, lift a large percentage of people out of poverty by instituting structural economic changes and cooperative legislation.
Africa today is one of the most attractive markets and promising regions for long-term investment. The continent shows the world's highest consumption growth rates. Russia has recently joined business activities in the region. The first-ever Russia-Africa summit, held in Sochi in 2019, was a powerful impetus for this. The second one is due in 2022. Both sides expect a considerable increase in the number of contracts that will be concluded.
After Soviet's collapse, Russia has been struggling to find ways of regaining part of its Soviet-era economic influence throughout Africa. Nigeria is high on Russia's agenda for reviving multifaceted business ties, at least to share the market and take up opportunities similar to external players such as the United States, Europe and China.
A recent report by Economist Corporate Network, supported by Baker McKenzie and Silk Road Associates, BRI Beyond 2020 (Economist report), showed how these strengthening trade links are, in part, a result of favourable financial incentives offered to African jurisdictions by China. According to the Economist report, 33 of the poorest jurisdictions in Africa export 97 per cent of their exports to China with no tariffs and no customs duties.
Financing projects in Africa is one of the important keys and, at the same time, the most difficult issue for major Russian companies attempting to expand to Africa, and the financial instruments at their disposal are insufficient according to Anna Belyaeva, Executive Director of the Association of Economic Cooperation with African States.
Interview by Kester Kenn Klomegah
Exclusive Interview by Kester Kenn Klomegah
Mozambique Might Require Foreign Military Assistance To Clean Up Its Hybrid War Mess
Russia-Africa Summit: The Roadmap to Africa, Shift in Geopolitical Relations
China and Russia Launch a ‘Global Resistance Economy’
Why South Africa Should Embrace Pakistan’s “Look Africa” Policy
Please, contact our team at info@ascarf.org.za to send submissions, suggestions, or discuss possible partnerships.
Views expressed are of individual contributors, rather than the ASCARF's, unless explicitly stated otherwise. Some publications may contain information not suitable for users under 16 years of age.