World
Russia and Africa Yet to Break Multitude of Business Barriers
By Kestér Kenn Klomegâh
The scramble for the entrepreneurial influence and control of the African continental landscape by global players is a geopolitical reality. To be part of this geopolitical arena, foreign corporate business players have been devising different approaches and pathways for revitalizing investment partnerships and strengthening cooperation with potential African partners, says Louis Gouend, founder of Hello Africa and founding Executive Director of the African Business Club.
In this interview taken by Kestér Kenn Klomegâh late May 2024, Louis Gouend gives useful insights into the dynamics of why Russia and Africa ultimately have to forge an engagement in business and economic sectors, to expand cooperation in both regions and further highlights the existing challenges facing the evolving entrepreneurial initiatives in Russia and Africa.
Here are the interview excerpts.
How would you characterize the level of business cooperation between Russia and Africa?
In recent years, business relations between Russia and Africa have acquired new dynamics. Russia is actively seeking opportunities to strengthen economic ties outside traditional Western markets, and Africa is attractive as a region experiencing rapid economic growth and rich natural resources. In this case, special attention is paid to sectors such as energy, mining, agriculture and educational projects. Russian companies are actively investing in mineral resource development projects, and are also entering the agricultural sector of some African countries.
ln your expert point of view, what are the basic challenges that currently confront businesses on both sides?
There are several key difficulties that complicate business interaction between Russia and Africa. These are, first of all, differences in business culture and legal regulation, which complicate the process of doing business. Logistics challenges, including the difficulty of transporting goods over long distances and across multiple borders, also pose additional obstacles. The bureaucracy can be sluggish, and corruption in some African countries makes the situation worse.
Another barrier is a lack of knowledge. On one hand, Russian companies lack knowledge of the environment and available high-quality analytical materials about the African market, its specifics and risks. On the other hand, African entrepreneurs and consumers have virtually no knowledge about Russian products and corporate business services. The main problem now is not funding, but the lack of sufficient knowledge and contacts. One of the options for resolving this issue is to increase Russian business missions to Africa, which will help promote Russian goods and technologies on the African market. And vice versa, in terms of bilateral cooperation.
Another factor limiting exports to Africa is the lack of special investment agreements and lack of regulation in this direction. When we talk about investment activity, the question arises about the lack of investment protection agreements. Their absence prevents Russian companies from insuring investments, which prevents them from exporting to Africa.
Our club members are mainly representatives of various African diaspora who live or studied in Russia and have been operating businesses in Russia or Africa. They know the mentality and culture of both sides, and they have strong ties with both sides, allowing them to be reliable bridges between Africa and Russia.
We work with African chambers of commerce, embassies, diaspora representatives, as well as other regional associations and export companies. Stakeholders include large and small businesses from Russia and Africa, various industry associations, government agencies and diplomatic missions. To improve business cooperation, the club plans to develop knowledge exchange programs, conduct business forums and master classes, and create special working groups to discuss specific issues and problems.
Why did the creation of an African Business Club (ABC) become necessary only now and what are its main goals?
The growth of economic activity and the increase in the number of bilateral projects between Russia and Africa required the creation of a platform to facilitate these interactions. The African Business Club aims to be a platform where entrepreneurs can share knowledge, network, explore new opportunities and solve emerging problems together. The club’s main goals include strengthening trade relations, and stimulating investment and technological exchange.
Our clients value us because, first of all, we help adapt the work of a foreign company to Russian realities, organize and debug many business processes within various aspects and support the foreign company as a reliable partner. Companies planning to invest in African economies will need strong ties to the African government and partnerships with local businesses. How to contact the right people? We are ready to help with this issue.
We offer advisory services to small, medium and global companies that want to invest in the African continent. Thus, we promote entrepreneurship and help create new trade ties between Russia and Africa. We attract potential investors interested in financing projects in the African private sector. We create online access to market research resources and relevant business contacts in Africa. We publish position papers covering issues related to trade with Africa, investment, regulation, policy and industry content.
The number of Russian companies wishing to enter the African market is growing regularly, and this confirms our intentions to promote the development of bilateral economic relations. On the other hand, we can note an increase in the number of African companies wishing to develop close cooperation with their Russian partners.
We offer a wide range of services for Russian companies entering the African market. This includes market research, selection of partner companies, assistance in organizing a business, and personnel search, including offers for Russian citizens to work in African companies.
Who are your current stakeholders and members? And how do you plan to develop a common approach to increasing the level of business cooperation between the two regions?
Our club members are mainly representatives of various African diaspora who live or studied in Russia and have operating businesses in Russia or Africa. They know the mentality and culture of both sides, and they have strong ties with both sides, allowing them to be a reliable bridge between Africa and Russia.
We work with African chambers of commerce, embassies, diaspora representatives, as well as other regional associations and export companies.
Stakeholders include large and small businesses from Russia and Africa, various industry associations, government agencies and diplomatic missions. To improve business cooperation, the club plans to develop knowledge exchange programs, conduct business forums and master classes, and create special working groups to discuss specific issues and problems.
Why is the presence of African business in the Russian Federation extremely low?
A combination of bureaucratic barriers, lack of awareness of the economic environment and opportunities, complex legal and regulatory frameworks, and relatively high market entry costs deter African companies from actively doing business in Russia.
What complimentary roles can African diplomatic missions and business associations play here?
The club has already been negotiating to simplify procedures for African investors and exporters, and assisting in the creation of reliable and effective communication channels between African companies and Russian regulators. As a two-way street, African diplomatic missions can also act as a bridge, helping to overcome cultural and administrative barriers, and actively participate in the club’s activities, supporting its multifaceted initiatives at various levels.
World
Russia Investing in Developing Africa’s Transport Networks
By Kestér Kenn Klomegâh
At the plenary session under the theme “Development Through Access to Global Markets” organised during the first International Transport and Logistics Forum held in St. Petersburg, both Russian and African speakers have acknowledged, in their high-quality presentations, the importance of fostering understanding of transport innovations, shifting investment and the possibility of addressing current infrastructure challenges for economic growth.
In promoting comprehensive cooperation in the transport and logistics sphere, Deputy Minister of Transport of the Russian Federation, Dmitry Zverev, stressed that the African continent is one of the fastest-growing regions of the world, demonstrating an average GDP growth rate of 4.5% per year.
According to expert projections, by 2050, Africa’s population will reach 2.5 billion people. To ensure logistical links, it is necessary to build a clear and understandable dialogue with partners, working simultaneously at two levels: at the level of governments, through intergovernmental agreements, and at the level of co-business partnerships. Russian transport corridors guarantee the stability of supplies. Today, there are issues of food security, fertiliser supply and formation of new chains, and other emerging geopolitical challenges facing Africa.
As the guest/main speaker, Zverev explained that Russian companies such as FESCO, RZD, GLONASS and Avtodor are actively involved in this process. This is a unique experience sharing technology and infrastructure solutions in significant volumes. “And frankly, that’s an important image distinction of Russia: we’re not just exporting or selling something – we’re offering technologies and cooperation. Together with technologies, we provide training and prepare national personnel who will work on their transport infrastructure in the future,” asserted Zverev.
Minister of Energy and Infrastructure of the United Arab Emirates, Suhail Mohammed Al Mazrouei, spoke of his country’s decision to invest significant money in the development of its railway infrastructure, with work already underway to connect to Oman by rail and open up new opportunities for freight transportation to Africa and Asia.
“We continue to invest in the development of our country’s logistics network and alternative routes. Russia is an important exporter of raw materials, and development in its regions will contribute to economic growth across the globe. Central Asia is also emerging as a key player, and we are investing in the region’s infrastructure and connecting China to the global economy through Russia and the Middle East,” he said.
Minister Delegate for Maritime Economy of the Ministry of Maritime Economy, Fisheries, and Coastal Protection of the Togolese Republic, Kokou Edem Tengue, spoke of the importance of understanding the African perspective on changing maritime routes as the situation around the Suez Canal and the Strait of Hormuz creates new opportunities for West Africa.
The Port of Lomé, the largest container port in Sub-Saharan Africa, handles approximately 30 million tonnes of goods annually, and its importance for the region is difficult to overstate. “We are actively working with Mali, Burkina Faso, and Niger; the Port of Lomé is a key logistics hub for the landlocked nations of the Sahel,” he said. “It should be noted that Africa relies on chemical fertilisers and grain produced in Russia. We believe that the Port of Lomé could be a part of new sea routes between Africa and Russia.”
In his speech, Minister of Transport of the United Republic of Tanzania, Makame Mnyaa Mbarawa, reported on the active modernisation of the Dar es Salaam port. Previously, the depth of the water was 9–12 meters; now it has increased to 12–15 meters. An increase in the number of operators operating in the port is planned. Thanks to these measures, cargo turnover increased significantly, and ship handling times decreased from 10 days to 2–3. This is an important achievement, after all, speed is a key factor for investors.
However, the port cannot function in isolation; it needs modern rail infrastructure. Tanzania’s government is leading the construction of a new railway to Kigoma, and then into Burundi and south, creating a reliable transportation artery. Dar es Salaam will become a gateway to Burundi, Rwanda, Malawi and Zambia, which depend on cargo flow through this port. Therefore, the development of the port and associated railway is of strategic importance in the region.
“In parallel, the modernisation of the TAZARA railway is going on – a historic artery that requires an upgrade. The private sector is actively involved in this work. After revitalisation, this line will become a key link between Dar es Salaam port and Zambia, he stated. The Government of Tanzania will make every effort to implement these projects and will work closely with the private sector. We invite Russian companies – both state and private – to participate in logistics projects and port infrastructure modernisation.”
As far as road safety in Niger is concerned, the country is facing various challenges that require finding ways to improve the situation, according to the Speaker from Niger, Abdurakhaman Amadou. Within the framework of the discussion, he also noted that an important step was to upgrade the car park and road network. As Niger has no access to the sea, the emphasis is on road traffic to ensure the country’s supply.
“We have access to the port of Lome in the Togolese Republic, which remains neutral towards us. However, the Caton port is closed for us, which created serious difficulties as 80% of our exports and imports passed through it. Recently, the situation has started to improve due to the construction of a railway by Nigeria, which will provide us with access to its ports,” Abdurakhaman informed.
In addition, diplomatic relations with Algeria have been restored after a long hiatus, which opens an exit to the Mediterranean. The conference of Islamic states confirmed the intention to build a grand railway linking Dakar and Djibouti across the entire continent from west to east. This railway will partially pass through Niger, which will be an important step in the development of the region’s transportation infrastructure.
President Vladimir Putin, in a message to participants, organisers, and attendees of the International Transport and Logistics Forum, says that Russia is ready to share its experience through joint science and technology programmes and, of course, by training specialists able to ensure the development of transport and logistics in the 21st century, using a new technological foundation. The Transport and Logistics forum was held for the first time on April 1-3 in St. Petersburg, the second-largest city in the Russian Federation.
World
How Russia’s Multifaceted Relations Changing Egypt
By Kestér Kenn Klomegâh
The Arab Republic of Egypt, a country spanning the northeast corner of Africa and the southwest corner of Asia, has a highly strategic location and attracts multifaceted interests of foreign players. For decades, Russia has established diplomatic relations with Egypt and has consistently sustained diverse ties with this country. It is no secret that Russia’s lust for the region is primarily due to the strategic importance of the Mediterranean Sea for investment and economic cooperation with the Maghreb region.
Determined to strengthen, particularly, economic cooperation, Russian President Vladimir Putin has maintained regular contacts with his colleague, President of Egypt, Abdel Fattah el-Sisi, mostly discussing both bilateral cooperation and broader regional developments. The current world’s geopolitical development, for instance, the United States-Israeli war on Iran in the Middle East, constitutes one theme both leaders frequently review, attempting to find long-term solutions.
On April 2, Putin met with the Minister of Foreign Affairs, Emigration, and Egyptian Expatriates of the Arab Republic of Egypt, Badr Abdelatty, in the Kremlin – the seat of Russia’s presidency. In attendance during the official talks on the Russian side were Foreign Minister Sergei Lavrov and Presidential Aide Yury Ushakov, while Egypt was represented by Ambassador Extraordinary and Plenipotentiary to the Russian Federation Hamdy Shaaban. Ultimately, there is no need to overstate the importance of this meeting.
Russia’s footprints are expanding in Egypt, highlighting the growing industrial investment and the strengthening of bilateral manufacturing ties by undertaking projects to ensure energy security. At the same time, maintaining regular dialogue remains very important for both leaders.
Putin, speaking with the three-member delegation in the Kremlin, underlined the fact that there are many promising initiatives underway, many of which are already being implemented. He has previously spoken in detail about the construction of a nuclear power plant and the construction of an industrial zone, and over ten major Russian companies have expressed interest in participating in this project.
Nuclear Plants in El-Dabaa, Egypt
The construction of nuclear plants in the city of El-Dabaa, about 320 kilometres northwest of Cairo, the capital of Egypt. It is the first nuclear power plant in Egypt, and will have four VVER-1200 reactors, making Egypt the only country in the region to have a Generation III+ reactor. On November 19, 2015, Egypt and Russia signed an initial agreement, under which Russia agreed to build and finance Egypt’s first nuclear power plant. These are now being carried out, not as a charity project, but with a loan of $28 billion. According to reports, Russia will finance 85% as a state loan of $25 billion, and Egypt will provide the remaining 15% in the form of instalments. The Russian loan has a repayment period of 22 years, with an annual interest rate of 3%.
At the meeting, Putin also raised the construction of an industrial zone in Egypt. There are many appealing and related opportunities in this, regarding having an industrial zone to be located on the banks of the Suez Canal. The industrial zone is also entering a new phase, as Russian auto-manufacturing enterprises are advancing distinctive plans to expand local vehicle production, reinforcing the country’s role as a regional manufacturing hub. The move reflects broader economic linkages between Russia and Africa, particularly in industrial development and supply chain integration.
Conveying Greetings and Reviewing the Middle East Situation
Naturally, the situation in the region remains a shared concern, according to Putin, and further hope that the ongoing conflict will be promptly resolved. “As you know, President Trump also addressed this issue yesterday. Let me reiterate that we are prepared to make every effort to help stabilise the situation and, as they say in such cases, return it to normal,” he stressed during the meeting. In this context, it is particularly important to know Egypt’s assessment as a key country in the Middle East.
Putin reminded the delegation of another Russia-Africa summit, which is planned for October 2026. With high hopes that Egypt will be represented by a strong, high-level delegation. Should the Egyptian President’s schedule allow, he would, of course, ahead of the summit, be very pleased to welcome him to Moscow. Jointly chaired by Vladimir Putin and Abdel Fattah el-Sisi, the first Russia-Africa summit, an important acute phase of the developments with Africa, under the motto of ‘For Peace, Security and Development’, was held for the first time in October 2019, in Sochi, a city located on the Black Sea coast. The idea to hold a Russia-Africa forum was initiated by President Putin at the BRICS (Brazil, Russia, India, China and South Africa) summit in Johannesburg in July 2018.
The head of the Egyptian Foreign Ministry, as traditionally expected, conveyed greetings from President El-Sisi to the Russian president and handed over a written message. President el-Sisi places great value on all aspects of the bilateral cooperation, and is extremely grateful for constructive collaboration on the El Dabaa Nuclear Power Plant, which represents a key milestone in the partnership. Despite the challenges, it is evident that the project is moving forward and will be completed by 2028.
In summary, as Egypt and Russia are reliable and time-tested partners, Putin plans to promote strategic projects, particularly in trade, economics, energy, and food security. With over 107 million inhabitants, Egypt is the most populous country in the Arab world, the third-most populous country in Africa, and the 15th-most populous in the world.
World
US-Israeli War on Iran: Africa’s Reactions Through the Prism of the Global South
By Kestér Kenn Klomegâh
In an interview, Senator Mushahid Hussain, President of Pakistan-Africa Institute for Development and Research (PAIDR), explicitly offers a few important insights into the US-Israeli war on Iran and its implications for BRICS+ and Africa. Here are the interview excerpts:
What’s your interpretation of the US-Israel war on Iran, in the context of developments in the Middle East region?
The US-Israel illegal and unwarranted war on Iran was spearheaded by [Benjamin] Netanyahu (Prime Minister of Israel) and actively supported by [Donald] Trump (President of USA) as a Joint Operation with three fundamental goals: a) decimate the Islamic Revolutionary Regime; b) reshape the Middle East as part of Zionism’s ‘Greater Israel’ Project; c) preclude any possibility of establishing a Palestinian State with Jerusalem as its capital.
What is your assessment of Iran’s joining BRICS+ in 2025, China’s and Russia’s roles as members of this association, in this US-Israel war with Iran?
China and Russia have played, by and large, a low-key diplomatic role in supporting Iran but without any active political initiatives. BRICS is divided from within, as India is keen to curry favour with the USA and avoids close association with BRICS since the time that Trump attacked BRICS last year. But China & Russia are clear political beneficiaries of the war as American prestige is at an all-time low, having got entangled in an unwinnable war, resulting in weakening of the US ‘sole superpower’ image.
As an Asian expert, how would you characterise Africa’s reactions? And do you think that reactions were objectively authentic, basing perspectives broadly on Arab and Middle East contributions to Africa’s development?
Africa’s reactions to the war are primarily through the prism of the Global South, viewing Iran as resisting American-Israeli hegemonic designs, as, for example, manifested in two examples: South Africa’s rejection of American pressures to wean South Africa away from its support for Iran. Plus, Somalia joined Pakistan and China in supporting the Russian resolution in the UN Security Council seeking an immediate ceasefire and negotiations to halt the War, despite strident Western/US opposition to the Russian resolution.
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