Connect with us

World

African Great Game: Russia Playing the Catchup

Published

on

By Kester Kenn Klomegah

After Soviet collapse, Russia has maintained strong and time-tested relations with African countries, and of course, the Soviet Union had played an important role during the decolonisation of Africa. The African continent comprises a diverse collection of countries, each with its own set of development setbacks and challenges. The political culture and investment climate are, in fact, diverse but are important forces in the economy.

According to several development reports, Africa is one of the fastest growing regions in the world: the average annual GDP growth rate reaches from 3.5% to 5% on the continent. The reports have strongly encouraged African leaders to prioritise sustainable development as a step towards raising the living standards of millions of impoverished population and further guide against the revival of neo-colonialism, the destructive attitude towards the resouces in Africa.

In this wide-ranging exclusive interview, George Nyongesa, Senior Associate at Africa Policy Institute (Nairobi, Kenya) discusses, with Kester Kenn Klomegah, attitudes and perceptions toward Russia, economic cooperation between the two regions as well as Russia’s role in sustainable development in Africa and expectations from the forthcoming summit in Sochi, Russia.

African leaders and business people will be in Sochi for the first Summit. What are the perceptions and attitudes toward this new dawn in the relations? How do the political and business elites interpret the benefits of the new relationship for both Africa and in Russia?

The impending Russia-Africa Summit is a timely and opportune congregation given current global events involving Africa’s traditional partners – the US’ recent years’ protectionist policy, China’s trade wars with the US, Brexit from the European Union – all of which directly impact Africa’s economic reality. For African leaders and business people, the utility and strategic importance of the Russia-Africa Summit is tied to how aptly it addresses this immediate reality and outlines future prospects.

To-date the US, European Union, China, India and Japan have partnered with African leaders to pursue development goals for mutual benefit. Accordingly, these partners have long articulated their engagement plans for Africa through comprehensive frameworks such as the US-Africa Leaders’ Summit and Power Africa Initiative, the European Union-Africa Summit, the Forum for China Africa Cooperation, the India-Africa Summit and Tokyo International Conference for African Development. The first Russia-Africa Summit therefore signals the dawn of deeper and stronger relations between Russia and Africa as Russia takes on a more active presence.

At Sochi, African leaders and business community will be looking to understand the proposed Russian framework for political and economic cooperation going forward, particularly long-term cooperation that takes into account Africa’s risk profile and the current competitive landscape for those seeking to invest. The business community will be keen to identify in-roads and opportunities for African businesses to grow and thrive in Russia vis-a-vis Africa’s development priorities on Agenda 2063, SADC’s industrialisation strategy and AfCFTA platform.

During the parliamentary conference held in July, the Chairman of the State Duma stressed that “it is necessary to prevent the revival of neo-colonialism, the destructive attitude towards the African resources.” How would you explain neo-colonialism by foreign players in Africa? What countries are the neo-colonizers in your view?

Neo-colonialism could be viewed as the renewed interest and methods employed from western and eastern countries in relation to exploitation and management of Africa’s rich resources – both from an economic and political paradigm. Traditionally, Western aid for African development has been laced with conditionalities tagged to defending human rights and promoting good governance via anti-corruption campaigns. This approach has seen compliant countries favored and non-compliant ones sanctioned by such Western nations. The interference with independent states has widely been castigated as neo-colonialism in many quarters. The alternative development model offered under the Belt and Road Initiative has facilitated the rise of China to displace the West as Africa’s largest development partner.

With the entire African continent (save for one country) signed up to BRI, Western countries’ worries about China expansionism has escalated. In this regard, BRI has been hit with accusations of debt trap diplomacy as far as its roll out in Africa. This is because the projects are run by Chinese businesses and where African nations struggle to repay the debt, then China is primed to step in and run the projects. The warning is that these seemingly friendlier loan terms could foster unsustainable debt and economic drain on African economies.

Outside of the economic dynamic, China has been accused of supporting authoritarian governments by its loan terms, and that in default situations, China’s remedies result in significant geopolitical expansion for China. To counter the growing Chinese influence, the United States has itself set up an African focused development agency that facilitates American businesses to flourish in developing Africa. These hegemonic tussles make for the neo-colonial danger that sees these development partners prosper to the exclusion of Africa itself.

In fact, Africa needs investment in infrastructure, agriculture and industry, to create employment for the young graduates. What role can Russia play here, we are referring to Sustainable Development Goals?

Africa’s regional development priorities are largely articulated by the African Union’s Agenda 2063, the SADC’s Industrialisation Strategy and Roadmap, 2015-2063 and the implementation of the recently adopted African Continental Free Trade Area (AfCFTA). Briefly, these priorities include industrialisation for economic and technological transformation; competitiveness; and regional integration. Africa is keen to shift away from industrialisation powered by increased labour and capital investment, to one powered by efficient resource deployment in production processes. AfCFTA particularly presents a significant consolidated voice for African states to negotiate economic and trade opportunities in e-commerce, technology transfers, manufacturing growth, scholarship and training; and infrastructure financing. Additionally, each of Africa’s 54 states have nationally articulated development priorities. These development goals have been designed as steps in pursuit of the attainment of the Millenium Development Goals.

Towards achieving these goals China has offered as much as US$60 billion, Japan US$32 billion, and India US$25 billion, while large investment funds have also come from the United States and the European Union. Similarly, Russia could design a funding vehicle focused on supporting Africa’s development priorities, particularly industrialisation and trade facilitation, for mutual benefit. Russia could further share knowledge on its own steps towards the MDGs and train professionals with the relevant skills for development projects. Such training could either be by the rollout of inter-university student exchange programs or the collaboration amongst academia to teach relevant skills in local curriculum in vocational institutions.

With trade specifically, there are surging competition, rivalry and trade wars in Africa, and recently the adoption of African continental free trade. What is your interpretation of all these and how profitable could it be for corporate Russian exporters?

Russia has progressively engaged Africa on bilateral basis at country level, as well as through regional blocs such as AU and SADC, at continental level. The adoption of the largest trade agreement since the WTO, the AfCFTA, signals the exponential potential of Africa as a trading bloc, going forward. The intention of AfCFTA is to provide a significant consolidated voice for African states to negotiate economic and trade opportunities in e-commerce, technology transfers, manufacturing growth, scholarship and training; and infrastructure financing. It is anticipated that there will be an additional 1.3 billion people in Africa by 2050. This is a massive market for Russian corporates to explore if they can leverage mutually beneficial engagement at the AfCFTA level.

In your expert view, what are the key challenges and problems facing Russian companies and investors that wanted business operations in Africa?

Africa’s active business development partners have been the United States, European Union, China, India and Japan, but less so Russia. As such, there’s limited shared knowledge on the value proposition of development and business collaboration between the two. Additionally, the absence of an articulated collaboration framework has meant that African and Russian policy makers are yet to design appropriate collaboration channels and tools that would facilitate mutually beneficial investment and ease of doing business. Related gaps include the prevailing language and cultural barrier that is, as yet, to be actively addressed. These, coupled with other prevailing hurdles to doing business in Africa such as limited infrastructure, high local unemployment rates, semi-skilled workers and protection of local industries, have hindered the set up of local business operations by Russian companies and investors.

On the other hand, why the presence of African companies on the Russian market is extremely low? Why Russia is not attractive to African exporters? Under the circumstances, what should be done to improve the current situation, a two-way trade?

The African perception of Russia and vice versa has largely been painted by other Western powers that are active on the African continent. That public persona is not one that has been enticing for African exporters. As such, Africa’s knowledge of the opportunities in trading with Russia is significantly limited. Opportunities for driving up trade relations between Russia and Africa include the facilitation of trade expos that create a platform for investors and businesses from both parties to interact and understand the opportunities and challenges to their export and import businesses. In addition, continued interaction between Russia and Africa, such as through exchange programs for students, or business cultural trips, will facilitate the chipping away at the language and cultural barrier that in turn hinders easy trade. If both Russia and Africa are able to showcase the available market for each other’s products, then trade engagement is likely to increase.

Could we finally talk about media cooperation between Russia and Africa, social platforms and the use of soft power as important instruments for strengthening the relations? What are your suggestions to these aspects in the existing relations between the Russia and Africa?

As part of Russia’s desire to adopt a comprehensive strategic roadmap for a more integrated cooperation and to find effective ways of improving public diplomacy in Africa, the Russian government is supporting a pilot programme organised for African media groups for a two-year period from 2018 to 2020. The utility of this approach is to develop a cohort of champions that will facilitate a positive post-Soviet economic and cultural narrative, as well as demystify Russia for Africa’s political, business and general population. Through this, Russians and Africans will be able to leverage soft power to build trust from shared experience, shift towards normalisation of relations through increased familiarity, set the stage for increased reciprocity such as Russia granting accessibility for African correspondents to match Russia’s increased media presence in Africa. In a nutshell, there will be an avenue for demystification and contextualisation (getting to know the truth about each other through moderated content) and so help counter any negative public persona, share cultural experiences and begin to wear down language barriers.

Interview made by Kester Kenn Klomegah in Nairobi, Kenya.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

World

Russian-Nigerian Economic Diplomacy: Ajeokuta Symbolises Russia’s Remarkable Achievement in Nigeria

Published

on

Ajaokuta Steel Plant, Nigeria

By Kestér Kenn Klomegâh

Over the past two decades, Russia’s economic influence in Africa—and specifically in Nigeria—has been limited, largely due to a lack of structured financial support from Russian policy banks and state-backed investment mechanisms. While Russian companies have demonstrated readiness to invest and compete with global players, they consistently cite insufficient government financial guarantees as a key constraint.

Unlike China, India, Japan, and the United States—which have provided billions in concessionary loans and credit lines to support African infrastructure, agriculture, manufacturing, and SMEs—Russia has struggled to translate diplomatic goodwill into substantial economic projects. For example, Nigeria’s trade with Russia accounts for barely 1% of total trade volume, while China and the U.S. dominate at over 15% and 10% respectively in the last decade. This disparity highlights the challenges Russia faces in converting agreements into actionable investment.

Lessons from Nigeria’s Past

The limited impact of Russian economic diplomacy echoes Nigeria’s own history of unfulfilled agreements during former President Olusegun Obasanjo’s administration. Over the past 20 years, ambitious energy, transport, and industrial initiatives signed with foreign partners—including Russia—often stalled or produced minimal results. In many cases, projects were approved in principle, but funding shortfalls, bureaucratic hurdles, and weak follow-through left them unimplemented. Nothing monumental emerged from these agreements, underscoring the importance of financial backing and sustained commitment.

China as a Model

Policy experts point to China’s systematic approach to African investments as a blueprint for Russia. Chinese state policy banks underwrite projects, de-risk investments, and provide finance often secured by African sovereign guarantees. This approach has enabled Chinese companies to execute large-scale infrastructure efficiently, expanding their presence across sectors while simultaneously investing in human capital.

Egyptian Professor Mohamed Chtatou at the International University of Rabat and Mohammed V University in Rabat, Morocco, argues: “Russia could replicate such mechanisms to ensure companies operate with financial backing and risk mitigation, rather than relying solely on bilateral agreements or political connections.”

Russia’s Current Footprint in Africa

Russia’s economic engagement in Africa is heavily tied to natural resources and military equipment. In Zimbabwe, platinum rights and diamond projects were exchanged for fuel or fighter jets. Nearly half of Russian arms exports to Africa are concentrated in countries like Nigeria, Zimbabwe, and Mozambique. Large-scale initiatives, such as the planned $10 billion nuclear plant in Zambia, have stalled due to a lack of Russian financial commitment, despite completed feasibility studies. Similar delays have affected nuclear projects in South Africa, Rwanda, and Egypt.

Federation Council Chairperson Valentina Matviyenko and Senator Igor Morozov have emphasized parliamentary diplomacy and the creation of new financial instruments, such as investment funds under the Russian Export Center, to provide structured support for businesses and enhance trade cooperation. These measures are designed to address historical gaps in financing and ensure that agreements lead to tangible outcomes.

Opportunities and Challenges

Analysts highlight a fundamental challenge: Russia’s limited incentives in Africa. While China invests to secure resources and export markets, Russia lacks comparable commercial drivers. Russian companies possess technological and industrial capabilities, but without sufficient financial support, large-scale projects remain aspirational rather than executable.

The historic Russia-Africa Summits in Sochi and in St. Petersburg explicitly indicate a renewed push to deepen engagement, particularly in the economic sectors. President Vladimir Putin has set a goal to raise Russia-Africa trade from $20 billion to $40 billion over the next few years. However, compared to Asian, European, and American investors, Russia still lags significantly. UNCTAD data shows that the top investors in Africa are the Netherlands, France, the UK, the United States, and China—countries that combine capital support with strategic deployment.

In Nigeria, agreements with Russian firms over energy and industrial projects have yielded little measurable progress. Over 20 years, major deals signed during Obasanjo’s administration and renewed under subsequent governments often stalled at the financing stage. The lesson is clear: political agreements alone are insufficient without structured investment and follow-through.

Strategic Recommendations

For Russia to expand its economic influence in Africa, analysts recommend:

  1. Structured financial support: Establishing state-backed credit lines, policy bank guarantees, and investment funds to reduce project risks.
  2. Incentive realignment: Identifying sectors where Russian expertise aligns with African needs, including energy, industrial technology, and infrastructure.
  3. Sustained implementation: Turning signed agreements into tangible projects with clear timelines and milestones, avoiding the pitfalls of unfulfilled past agreements.

With proper financial backing, Russia can leverage its technological capabilities to diversify beyond arms sales and resource-linked deals, enhancing trade, industrial, and technological cooperation across Africa.

Conclusion

Russia’s Africa strategy remains a work in progress. Nigeria’s experience with decades of agreements that failed to materialize underscores the importance of structured financial commitments and persistent follow-through. Without these, Russia risks remaining a peripheral player (virtual investor) while Arab States such as UAE, China, the United States, and other global powers consolidate their presence.

The potential is evident: Africa is a fast-growing market with vast natural resources, infrastructure needs, and a young, ambitious population. Russia’s challenge—and opportunity—is to match diplomatic efforts with financial strategy, turning political ties into lasting economic influence.

Continue Reading

World

Afreximbank Warns African Governments On Deep Split in Global Commodities

Published

on

Commodities Market

By Adedapo Adesanya

Africa Export-Import Bank (Afreximbank) has urged African governments to lean into structural tailwinds, warning that the global commodity landscape has entered a new phase of deepening split.

In its November 2025 commodity bulletin, the bank noted that markets are no longer moving in unison; instead, some are powered by structural demand while others are weakening under oversupply, shifting consumption patterns and weather-related dynamics.

As a result of this bifurcation, the Cairo-based lender tasked policymakers on the continent to manage supply-chain vulnerabilities and diversify beyond the commodity-export model.

The report highlights that commodities linked to energy transition, infrastructure development and geopolitical realignments are gaining momentum.

For instance, natural gas has risen sharply from 2024 levels, supported by colder-season heating needs, export disruptions around the Red Sea and tightening global supply. Lithium continues to surge on strong demand from electric-vehicle and battery-storage sectors, with growth projections of up to 45 per cent in 2026. Aluminium is approaching multi-year highs amid strong construction and automotive activity and smelter-level power constraints, while soybeans are benefiting from sustained Chinese purchases and adverse weather concerns in South America.

Even crude oil, which accounts for Nigeria’s highest foreign exchange earnings, though still lower year-on-year, is stabilising around $60 per barrel as geopolitical supply risks, including drone attacks on Russian facilities, offset muted global demand.

In contrast, several commodities that recently experienced strong rallies are now softening.

The bank noted that cocoa prices are retreating from record highs as West African crop prospects improve and inventories recover. Palm oil markets face oversupply in Southeast Asia and subdued demand from India and China, pushing stocks to multi-year highs. Sugar is weakening under expectations of a nearly two-million-tonne global surplus for the 2025/26 season, while platinum and silver are seeing headwinds from weaker industrial demand, investor profit-taking and hawkish monetary signals.

For Africa, the bank stresses that the implications are clear. Countries aligned with energy-transition metals and infrastructure-linked commodities stand to benefit from more resilient long-term demand.

It urged those heavily exposed to softening agricultural markets to accelerate a shift into processing, value addition and product diversification.

The bulletin also called for stronger market-intelligence systems, improved intra-African trade connectivity, and investment in logistics and regulatory capacity, noting that Africa’s competitiveness will depend on how quickly governments adapt to the new two-speed global environment.

Continue Reading

World

Aduna, Comviva to Accelerate Network APIs Monetization

Published

on

Aduna Comviva Network APIs Monetization

By Modupe Gbadeyanka

A strategic partnership designed to accelerate worldwide enterprise adoption and monetisation of Network APIs has been entered into between Comviva and the global aggregator of standardised network APIs, Aduna.

The adoption would be done through Comviva’s flagship SaaS-based platform for programmable communications and network intelligence, NGAGE.ai.

The partnership combines Comviva’s NGAGE.ai platform and enterprise onboarding expertise with Aduna’s global operator consortium.

This unified approach provides enterprises with secure, scalable access to network intelligence while enabling telcos to monetise network capabilities efficiently.

The collaboration is further strengthened by Comviva’s proven leadership in the global digital payments and digital lending ecosystem— sectors that will be among the biggest adopters of Network APIs.

The NGAGE.ai platform is already active across 40+ countries, integrated with 100+ operators, and processing over 250 billion transactions annually for more than 7,000 enterprise customers. With its extensive global deployment, NGAGE.ai is positioned as one of the most scalable and trusted platforms for API-led network intelligence adoption.

“As enterprises accelerate their shift toward real-time, intelligence-driven operations, Network APIs will become foundational to digital transformation. With NGAGE.ai and Aduna’s global ecosystem, we are creating a unified and scalable pathway for enterprises to adopt programmable communications at speed and at scale.

“This partnership strengthens our commitment to helping telcos monetise network intelligence while enabling enterprises to build differentiated, secure, and future-ready digital experiences,” the chief executive of Comviva, Mr Rajesh Chandiramani, stated.

Also, the chief executive of Aduna, Mr Anthony Bartolo, noted that, “The next wave of enterprise innovation will be powered by seamless access to network intelligence.

“By integrating Comviva’s NGAGE.ai platform with Aduna’s global federation of operators, we are enabling enterprises to innovate consistently across markets with standardised, high-performance Network APIs.

“This collaboration enhances the value chain for operators and gives enterprises the confidence and agility needed to launch new services, reduce fraud, and deliver more trustworthy customer experiences worldwide.”

Continue Reading

Trending