Russian President Vladimir Putin (R) shakes hands with Angola's
President Joao Lourenco, after their talks at the Kremlin in Moscow on
April 4, 2019. Ahead of the Russia Africa Summit on October 23, 2019,
President Putin has promised African countries investments and support
for the continent's causes in global political forums. PHOTO | FILE |
NATION MEDIA GROUP
Russia President Vladmir Putin says Moscow will encourage
African countries to table their own development proposals for
discussion during the inaugural Russia-Africa Summit that opens on
Wednesday October 23.
Mr Putin offered what he called a
vision for cooperation with Africa as some 3,000 delegates continued
arriving at Sochi resort city. At least 35 African heads of state and
government have confirmed attending.
Against claims
that Moscow is playing catch-up with its BRICS peers India and China and
other rivals like the EU, Japan, Turkey, UK and United States, Mr Putin
said Russia would bring resources and technology to Africa leaving
business and political leaders to determine how they are utilised.
"We
expect that our African colleagues, representatives of the business
community will come to Sochi with a solid package of proposals aimed at
enhancing bilateral relations, while heads of Africa's regional
organisations will share their ideas as to how we could jointly develop
our multilateral cooperation," Mr Putin said in an interview with local
TASS news agency on Tuesday.
He also said projects
agreed upon could be launched right away, suggesting they would not be
tied to undue bureaucracy and conditions that have made African
governments frown at project financing from the west.
The
two-day conference begins with a business summit involving private
investors and policy makers as Russia seeks to lift its business
dealings in Africa where it has traditionally supported liberation
movements with one eye on military sales.
In the first half of this year, Russia state-arms dealer Rosoboronexport reported sales of $5.7 billion across the world.
In
its search for new horizons, chief executive officer said in June
Rosoboronexport would target Africa, Asia and Latin America.
Trade with Africa
Apart
from arms Russia’s trade and investments on the continent have been
increasing driven by energy and related infrastructure.
It
is a key buyer of tea, coffee, flowers, spices, fish, seafood and
cashew from several African countries including Kenya, Uganda and
Seychelles.
According to the Russia Customs Service,
Russia exports food items and agricultural raw materials, as well as
machinery, equipment and vehicles to Africa.
In
exchange, it gets citrus fruits, manganese ores and concentrates, cocoa
and its products, vegetables, clothes and shoes, fruits, tobacco raw
materials and tobacco waste, hydrazine and hydroxylamine, artificial
corundum and flavored tea.
Trade between Africa and
Russia rose to $20.4 billion in 2018 and is heavily in favour of Moscow
which shipped out goods worth $17.5 billion against $2.9 billion.
Between January and August this year, Russia sold $7.1 billion in exports to Africa and imported $1.8 billion of goods.
Mr
Putin said a number of billion-dollar investment projects with Russia's
participation were currently in the pipeline and would be rolled out in
five years.
Although he did not name them, Russia’s
key investment partners in Africa last year were Angola, Ghana, Guinea,
Egypt, Zimbabwe, Congo, Nigeria and South Africa.
Russian companies made investments valued at $47 billion in the countries.
However,
a $30 billion investment by nuclear Company Rosatom, which signed
agreements with several African governments to explore atomic energy, in
Egypt claimed the bulk of the commitments.
Russia oil
company Lukoil last year acquired a 25 per cent stake in the Marine XII
gas project in the Republic of the Congo from New Age M12 Holdings
Limited for $800 million.
A different approach?
Egyptian Presiden Fattah al-Sisi who is the Africa Union Chairman will co-chair the summit with Mr Putin.
Russia
is hoping to further trade ties by starting negotiations for its
Eurasian Economic Union bloc to exchange preferences with the African
Continental Free Trade Area which comes into force in July next year.
Egypt is in advanced talks to join the $4 trillion bloc that includes Armenia, Belarus, Kazakhstan and Kyrgyzstan.
"Both
Russia and Russian companies have substantial resources. We hope that
our partners, in turn, will create the necessary stable and predictable
business environment and investment protection mechanisms and ensure
favourable investment climate," Mr Putin said.
He said competition for investment and profit in Africa had seen some rivals go beyond the bounds of decency.
"We
see a number of western states resorting to pressure, intimidation and
blackmail against governments of sovereign African countries. They hope
it will help them win back their lost influence and dominant positions
in former colonies,” he said.
The Russia approach, he said, would have foremost regard of Africa's population, environmental or other risks.
"We
intend to discuss relevant ideas with our partners, systematise and
reflect them as concretely as possible in the final declaration,” Mr
Putin said.
Moscow officials have recently being
talking down financial aid and loans to Africa saying a more diversified
toolkit was needed to establish a mutually beneficial cooperation
between Russia and African countries."
This would
include debt swapping, humanitarian actions against diseases and
disasters, settlement of conflicts such as that on the Nile and
diffusion of further crisis.
Politics will also be at
play as Russia, a permanent member of the UN Security Council, says it
defends sovereignty of African states from foreign, read western,
interference.
What is on the table in Russia
- Energy and infrastructure with Africa leaders having leeway to decide which projects are appropriate
- Increasing trade volumes and investments by supporting Russian firms to venture in Africa
- Technology transfer through scholarships to pursue science and technology courses in Russia as well as cultural exchanges.
- Debt forgiveness and swaps with Mozambique already a beneficiary
- Russia support for 'African solutions to African problems' and bids to reform the UN to be more accomodative.
- Cooperation in counter-terrorism measures in tackling al-Shabaab, al-Qaeda, ISIS and other terror merchants
- Intelligence co-operation to fight drug trafficking, money laundering and human trafficking.
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