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Russia’s Politics of Writing Off Africa’s Debt

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Africa's debt

By Kestér Kenn Klomegâh

During the International Parliamentary conference Russia-Africa held March 19-20 in Moscow, Russian President Vladimir Putin, in a speech at the plenary session, reminded African parliamentarians that the partnership between Russia and African countries had gained additional momentum and is reaching a whole new level. He said the current geopolitical changes present an opportunity to build on the strong momentum in boosting economic cooperation.

“We are ready to shape the global agenda jointly, strengthen fair and equal interstate relations, and improve mechanisms for mutually beneficial economic cooperation. Thanks to our assistance, many industrial enterprises have been built on the continent, entire industries have been created, and vital infrastructure and social facilities have been built. At the same time, Russia wrote off the debt to African states of more than $20 billion,” Putin emphasized in a copy of his text posted on the Kremlin’s website.

Putin further offered spiteful goal-setting policy outlines and some aspects of lofty Russia’s economic policy directions for Africa. Most of these directions considered significant have, over these years, featured prominently in all his previous speeches on Russia’s relations with Africa. But what strikes many listeners and readers relates to historical references intended to draw on sympathy and enlist support from Africa. By simple description, Africa consists of 55 member states. Africa is not a country but a continent; thus, Africa’s debt could mean the entire of Africa.

Long seen as a strategic partner, Russia has opened a new chapter and started building better relations with Africa, and most significantly, made its move by writing off a number of African countries’ debts accumulated from the Soviet era. After the Soviet collapse, Russia first attempted to collect its debts. Indeed, these Soviet-leaning debt-trapped African countries were unable to pay them (these debts) back to Russia.

During the Soviet era, Moscow forged alliances with African countries, especially those that supported its communist idealogy, supplied them with military equipment and offered technical assistance on a bilateral basis. In particular, supplied arms went to Angola, Algeria, the Democratic Republic of Congo (DRC), Ethiopia, Namibia, Mozambique, Morocco and South Africa. That Soviet-era form of diplomatic engagement left those African countries indebted to an amount of $20 billion, according to official documents.

In an interview with TASS, Russian State News Agency, ahead of the first Russia-Africa Summit, Russian President Vladimir Putin explained the Soviet’s role in the liberation of the continent and support for the struggle of their people against colonialism, racism and apartheid. In addition, the enormous help offered to those African countries to protect their independence and sovereignty, gain statehood, support national economies, and create capable armed forces for Africa.

“Our African agenda is positive and future-oriented. We do not ally with someone against someone else, and we strongly oppose any geo-political ‘games’ involving Africa,” he said during that interview and categorically referred to the debts write-off to Africa. “Let me point out that in the post-Soviet period, at the end of the 20th century, Russia cancelled $20 billion of African countries’ debts to the Soviet Union. This was both an act of generosity and a pragmatic step because many of the African states were unable to service those debts. We, therefore, decided that it would be best for everyone to start our cooperation from scratch,” said President Putin during that interview in 2019.

On 23 October 2019, President Vladimir Putin and the President of the Arab Republic of Egypt, African Union Chairman and Co-Chairman of the Russia-Africa Summit Abdel Fattah el-Sisi took part in the Russia-Africa Economic Forum. During the plenary session held under the theme “Russia and Africa: Uncovering the Potential for Cooperation” and attended by top officials, politicians and business leaders, and almost 2,000 Russian and foreign companies, the question of debts write-off as the basis for economic growth and for developing long-term relations featured prominently.

“Economic issues are an integral part and a priority of Russia’s relations with African countries. Developing close business ties serves our common interest, contributes to sustainable growth, helps to improve quality of life and solves numerous social problems,” Putin said, and then added, “Russia provides systematic assistance to developing the African continent. Our country is participating in an initiative to ease the African countries’’ debt burden. To date, the total amount of write-offs stands at over $20 billion. Joint programmes have been launched with a number of countries involving the use of debts to finance national economic growth projects.”

On 5 September 2017, President Putin attended a meeting of BRICS leaders with delegation heads from invited states, including the Heads of State and Governments of Egypt, Tajikistan, Mexico, Guinea and Thailand. The meeting discussed the implementation of the 2030 Agenda for Sustainable Development and prospects for further developing their partner relations. Before the meeting, the BRICS leaders and delegation heads from invited states had a joint photo session. President Putin informed that “Russia has been working actively to implement the 2030 Agenda for Sustainable Development. We have written off over $20 billion of African countries’ debts through the Heavily Indebted Poor Countries Initiative.”

On 30 January 2015, President Putin sent his greetings to the 24th Ordinary Session of the Assembly of the African Union Heads of State and Government. The message stated in part: “The Russian Federation’s relations with our African partners are developing positively. We have established a substantial political dialogue and work actively together in international affairs. Russia’s decision to write off much of African countries’ debt and the preferential conditions we offer the majority of Africa’s traditional export goods open up new possibilities for trade, economic and investment cooperation.”

On 27 March 2013, in Durban, South Africa, in a speech at a meeting with Heads of African states, President Putin explicitly noted, “Over the course of many decades, Russia has provided direct assistance to the African continent. I would like to note that we have written off over 20 billion dollars in debt; we have written off far more than any other G8 nation. We plan to take additional measures to ease the debt burden.”

According to the Russian leader, the BRICS group’s companies are working actively in the African market; there is a growing influx of investments into various sectors in Africa’s economies, from traditional mineral extraction and farming to high technologies and banking. He added BRICS countries are championing the rights and interests of Africa and other nations with emerging economies, speaking out in favour of increasing their role and influence in the global governance system, particularly international financial and economic organizations.

On 28 June 2002, in Kananaskis, Canada, there was a media conference after the G8 Summit. There was one specific question regarding Africa. The G8 approached the plan submitted by African countries in a creative way. What can be Russia’s role and place in addressing the global problem of combating poverty?

President Vladimir Putin answered: “As regards Russia, it has traditionally had very good relations with the African continent. We are very perceptive of the problems on the African continent. I must say that Russia has been making a very tangible contribution to solving Africa’s problems. Suffice it to say Russia is making a big contribution to the initiative adopted here, a multi-lateral initiative, including the writing off part of African debts. Of all the African debts that are to be written off, 20% are debts to the Russian Federation. That is $26 billion.”

On 21 May 2007, The Kremlin made available Excerpts of the Transcript of the Cabinet Meeting. Finance Minister Aleksei Kudrin on the meeting of G8 finance ministers. The issue is about supporting and helping African countries. Minister Kudrin told the cabinet meeting, “We discussed the implementation of a number of initiatives that should improve the management and transparency of public finances in those countries, including by better employing revenues from the extraction of mineral resources in Africa to fight against poverty.”

“We discussed responsible lending and relations with countries that have benefited from debt relief. We are writing off debt, reducing these countries’ debt burden, and meanwhile, their opportunity to incur new debts is increasing simultaneously. And a number of countries are starting to make huge loans to these countries, taking advantage of the fact that they are no longer in debt and lending to them at such a rate that these countries will once again require help. These instances exist. In fact, this practice is liable to be perceived in a negative way. A number of leading countries in the world are engaged in this practice,” he said.

At Sochi’s summit, Putin’s announcement about the “debt write-off” was, therefore, nothing new. Africa’s debts write-off debt has been played for years. It has, several times since his appointment, re-occurred in Foreign Minister Sergey Lavrov’s speeches; these texts are available at the official website of the Foreign Affairs Ministry.

He said: “Russian development assistance is invariably aimed at solving the most pressing challenges faced by the countries in need. In these efforts, we are neither trying to lecture our partners on how they should build their lives nor impose political models and values. Poverty eradication is the key objective of Russia’s state policy in the area of international development assistance at the global level.” (Remarks by Foreign Minister Sergey Lavrov at the UN Summit for the Adoption of the Post-2015 Development Agenda, New York, September 27, 2015 (1814-27-09-2015).

“Debt relief is an effective tool in this regard. Under the Heavily Indebted Poor Countries Initiative (HIPC), our country has written off over $20 billion of the principal debt owed by African countries alone. Russia also contributes to reducing the debt burden of the poorest countries beyond the HIPC through debt-for-aid swaps. We also take other steps towards the settlement of a debt owed to Russia, both within multilateral and bilateral formats,” he added.

As it is known, Russia has written off over $20 billion in debt to African states. We are undertaking steps to further ease the debt burden of Africans, including through the conclusion of agreements based on the scheme “debt in exchange for development,” according to the Foreign Minister (Speech by the Russian Foreign Minister Sergey Lavrov at the reception on the occasion of Africa Day, Moscow, 22 May 2014 (1243-22-05-2014).

In April 2014, President Vladimir Putin approved the new State policy concept of the Russian Federation in the area of contribution to international development. Its practical implementation will contribute to the build-up of our participation in the area of assistance to the development of states of the African continent, according to the report posted on the website.

“Russia has done a great deal to alleviate the debt burden, particularly in the framework of the Enhanced Heavily Indebted Poor Countries Initiative and in writing off multilateral debts to the IMF and the International Development Association. The overall amount of the African countries’ indebtedness cancelled by us, including on a bilateral basis, exceeds 20 billion dollars, of which about one-half in the last two years,” Lavrov told the gathering on Africa Day in 2008 (Transcript of Remarks by Minister of Foreign Affairs of the Russian Federation Sergey Lavrov at Reception on Occasion of Africa Day, Moscow, May 26, 2008 (751-26-05-2008).

As far back as May 2007, the Foreign Ministry showed interest in Africa’s debts. “We are helping our African partners reduce the burden of foreign debt. We have written off African debt within the framework of the initiative to reduce the indebtedness of the poorest nations,” Foreign Minister Sergey Lavrov said at May 25 gathering of a group of ambassadors, diplomats and ministry officials marking Africa Day.

The move signalled Russia’s intention to fulfil its commitments made at that time in Group of Eight (G8) meetings, as well as paving the way to increased trade with the African continent. It was then signed into law on March 10, ratifying the agreement between Russia and African countries it aided during the Soviet era. Russia continued discussions on a full debt write-off on a bilateral basis, and African countries owed nearly $20 billion. The debt was primarily through weapon deliveries, according to the official transcript.

“The most important aspect of economic cooperation in our foreign policy is to encourage African countries to trade with us and to not only depend on development aid. Always looking for aid makes these countries less productive, and funds for projects end up in foreign banks at the expense of the suffering population,” Lavrov said.

In March 2019, President Vladimir Putin chaired a meeting of the Commission for Military-Technical Cooperation with Foreign States, and the Kremlin’s website transcript pointed to the geographic reach of military-technical cooperation as constantly expanding, with the number of partners already in more than 100 countries worldwide.

Since then, President Putin has repeatedly called for renewed efforts not only to preserve but also to strengthen Russia’s leading position in the global arms market, primarily in the high-tech sector, amid tough competition. He further called for reliance on the rich experience in this sphere and building up consistent military technology cooperation with foreign states.

“We strictly observe international norms and principles in this area. We supply weapons and military equipment solely in the interests of security, defence and anti-terrorism efforts. In each case, we thoroughly assess the situation and try to predict the developments in the specific region. There are no bilateral contracts ever targeted against third countries, against their security interests,” he explained.

According to the Kremlin website, Russia targeted global export contracts worth $50 billion in 2018. Russia’s export priority is to expand its scope and strengthen its position in the market.

Over the past years, strengthening military-technical cooperation has been a strong part of the foreign policy of the Russian Federation. Russia has signed bilateral military-technical cooperation agreements with many African countries. On the other hand, Moscow’s post-Cold War relations with Africa undoubtedly, lean toward military support and arms trade. Analysis by the Stockholm International Peace Research Institute (SIPRI) indicates that between 2014 and 2018, Russia accounted for 49% of arms imports to North Africa and 28% to Sub-Saharan Africa.

Africa has started accumulating debts. For example, Johan Burger’s article details crucial information in relation to Russia’s military interests in Africa. Russia has established or intends to establish military bases in Sudan along the Red Sea Coast, Somaliland, and Egypt. Another publication highlights Russia’s military bases in Madagascar, Mozambique, and Guinea. Lately, the Central African Republic intends to host a Russian military base.

October 2019, the President of the Arab Republic of Egypt, African Union Chairman and Co-Chairman of the Russia-Africa Summit, Abdel Fattah el-Sisi, noted in his speech at the plenary session of the Russia-Africa Economic Forum: Africa welcomes the efforts to encourage an open door policy and cooperation with its partners with a view to making a breakthrough in developing its economy. Russia and other foreign countries, as well as international financial organizations, have to develop cooperation and invest in Africa.

The Egyptian leader urged international and regional financial organizations to take part in funding Africa’s economic growth and to give it financial guarantees on consolidating its economic potential. This would help promote trade and investment. He further urged foreign countries to grant African states generous terms for their projects and development programmes, which would help Africa reach its dream – to embark on the road of progress, modernization and sustainable development.

Before concluding his speech, President Abdel Fattah el-Sisi emphasized that cooperation with Africa must be based on common interests in the protection of African property, which would allow Africa to promote comprehensive sustainable development by carrying out three major goals.

First, it is necessary to accelerate economic reforms and create a businesslike atmosphere by establishing close partnerships with the private sector. Second, it is essential to implement social justice principles with the broad participation of society. Third, it is necessary to consolidate peace and stability in accordance with the African Union’s Agenda 2063 and Sustainable Development Goals 2030.

The 15-member UN Security Council has unanimously adopted a resolution welcoming AU initiatives for infrastructure development and pledging support for “African solutions to African problems” in an attempt to achieve the Sustainable Development Goals (SDGs).

Significantly noting that African Union officials have repeatedly urged African leaders to prioritize Africa’s Agenda 2063 – a strategic framework for delivering on Africa’s goal for inclusive and sustainable development – and the United Nations Sustainable Development Goals (SDGs).

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Economy

Dangote Refinery Imports $3.74bn Crude in 2025 to Bridge Supply Gap

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Dangote refinery import petrol

By Adedapo Adesanya

Dangote Petroleum Refinery imported a total of $3.74 billion) worth of crude oil in 2025, to make up for shortfalls that threatened the plant’s 650,000-barrel-a-day operational capacity.

The data disclosed in the Central Bank of Nigeria’s Balance of Payments report noted that “Crude oil imports of $3.74 billion by Dangote Refinery” contributed to movements in the country’s current account position, as Nigeria imported crude oil worth N5.734 trillion between January and December 2025.

Last year, as the Nigerian National Petroleum Company (NNPC), which is the refinery’s main trade partner and minority stakeholder, faced its challenges, the company had to forge alternative supply links. This led to the importation of crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.

For instance, in March 2025, the company said it now counts Brazil and Equatorial Guinea among its global oil suppliers, receiving up to 1 million barrels of the medium-sweet grade Tupi crude at the refinery on March 26 from Brazil’s Petrobras.

Meanwhile, crude oil exports dropped from $36.85 billion in 2024 to $31.54 billion in 2025, representing a 14.41 per cent decline, further shaping the external balance.

The report added that the refinery’s operations also reduced Nigeria’s reliance on imported fuel, noting that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”

Specifically, refined petroleum product imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.9 per cent decline, while total oil-related imports also eased.

However, this was offset by a rise in non-oil imports, which increased from $25.74 billion to $29.24 billion, up 13.6 per cent year-on-year, reflecting sustained demand for foreign goods.

At the same time, the goods account remained in surplus at $14.51 billion in 2025, rising from $13.17 billion in 2024, supported largely by activities linked to the Dangote refinery and improved export performance in other segments.

The CBN stated that the stronger goods balance was driven by “significant export of refined petroleum products worth $5.85bn by Dangote Refinery,” alongside increased gas exports to other economies.

Nigeria posted a current account surplus of $14.04 billion in 2025, lower than the $19.03 billion recorded in 2024 but significantly higher than $6.42 billion in 2023. The decline from 2024 was driven partly by structural changes in oil trade flows, including crude imports for domestic refining, according to the report.

Pressure on the current account came from higher external payments. Net outflows for services rose from $13.36 billion in 2024 to $14.58 billion in 2025, driven by increased spending on transport, travel, insurance, and other services.

Similarly, net outflows in the primary income account surged by 60.88 per cent to $9.09 billion, largely due to higher dividend and interest payments to foreign investors.

In contrast, secondary income inflows declined slightly from $24.88 billion in 2024 to $23.20 billion in 2025, as official development assistance and personal transfers weakened, although remittances remained a key source of inflow, as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector.

This comes despite the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.

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Economy

Sovereign Trust Insurance Submits Application for N5.0bn Rights Issue

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Sovereign Trust Insurance

By Aduragbemi Omiyale

An application has been submitted by Sovereign Trust Insurance Plc for its proposed N5.0 billion rights issue.

The application was sent to the Nigerian Exchange (NGX) Limited, and it is for approval to list shares from the exercise when issued to qualifying shareholders.

A notice signed by the Head of Issuer Regulation Department of the exchange, Mr Godstime Iwenekhai, disclosed that the request was filed on behalf of the underwriting firm by its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities.

The company intends to raise about N5.022 billion from the rights issue to boost its capital base, as demanded by the National Insurance Commission (NAICOM) for insurers in the country.

Sovereign Trust Insurance plans to issue 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026.

“Trading license holders are hereby notified that Sovereign Trust Insurance has through its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026,” the notification read.

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Economy

Food Concepts Plans 10 Kobo Interim Dividend Payout

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food concepts

By Adedapo Adesanya

Food Concepts Plc, the parent company of fast food brands like Chicken Republic and PieXpress, has disclosed plans to pay 10 Kobo in interim dividend to new and existing shareholders for the 2026 financial year.

This was disclosed by the company in a notice to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities.

The notice indicated that the proposed interim dividend, which comes with no bonus, will be paid to those who hold the stocks of the company as of the qualification date for the dividend, which was Tuesday, March 24.

This means only those who hold the company’s shares as of the closing session will be eligible to receive the stipulated dividend payment.

The shareholders of the company will be credited with the 10 Kobo dividend on Tuesday, March 31.

The notice noted that the closure of the company’s register will be on Wednesday, March 25, through Friday, March 27, 2026, both days inclusive.

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