World
Russia Plans New Trade, Investment Cooperation With Africa
By Kestér Kenn Klomegâh
Russian Foreign Minister, Mr Sergey Lavrov, said at his annual press conference on January 18 that Russia and Africa would hold a summit in July this year and a number of documents, including new instruments of trade and investment cooperation, were being prepared to readjust methods of interaction amid the environment of sanctions, and in the context of geopolitical changes.
“As you know, we are planning the second summit in St. Petersburg, and we are preparing a whole series of activities for it. Documents are being prepared on the readjustment of interaction mechanisms in conditions and sanctions and threats, new instruments of trade and investment cooperation, supply chain systems and payments. The transition to payments in national currencies is underway. This is not a quick process, but it is progressing and gaining momentum,” the Foreign Minister said.
Ahead of the forthcoming African leaders gathering, the South African Institute of International Affairs has put into circulation its latest policy report on Russia-African relations.
In the introductory chapter, Steven Gruzd, Samuel Ramani and Cayley Clifford – have summarized various aspects of the developments between Russia and Africa over the past few years and finally questioned the impact of Russia’s policy on Africa.
According to Steven Gruzd, Samuel Ramani and Cayley Clifford, this special far-reaching policy report includes academic research from leading Russian, African and international scholars. It addresses the dimensions of Russian power projection in Africa and new frontiers of Russian influence and provides a roadmap towards understanding how Russia is perceived in Africa.
The report highlights narratives about anti-colonialism and describes how these sources of solidarity are transmitted by Russian elites to their African public. For seeking long-term influence, Russian elites have oftentimes used elements of anti-colonialism as part of the current policy to control the perceptions of Africans and primarily as new tactics for power projection in Africa.
While it has made thousands of investment promises and signed several bilateral agreements, Russia is largely invisible in economic sectors and keeps a remote distance from participating in building critical infrastructures, investing in industrial spheres and in the newly created single market. Moscow simply builds relations on illusions and lacks the capacity and overwhelming power to realize its policy goals in Africa.
That report says Russia’s expanding influence in Africa is compelling, but a closer examination further reveals a murkier picture. Despite Putin’s lofty trade targets, Russia’s trade with Africa stands at just $20 billion, which is lower than that of India or Turkey.
Over the previous years, similar observations on the stagnation in Russia-Africa economic and trade relations were also noted by politicians and academic researchers. A publication headlined “Russian Business in Africa: Missed Opportunities and Prospects” appeared in the foreign policy journal Russia in Global Affairs, where Professor Alexei Vasilyev, former Special Representative of the Russian Federation to African Countries, wrote in that article that Russian companies are pursuing their diverse interests in Africa.
The main reason is that Africa remains an enormous and large market for technology and manufacturing of consumer goods due to the increasing population and the growing middle class. Until recently, Russians have been looking at the mining industry, and economic cooperation is steadily expanding. But, Africa still accounts for just 1.5% of Russia’s investment which is a drop in the ocean. It must be admitted that Russia’s economic policy grossly lacks dynamism in Africa.
“In fact, African countries have been waiting for us for far too long; we lost our positions in post-apartheid Africa and have largely missed new opportunities. Currently, Russia lags behind leading foreign countries in most economic parameters in this region,” he pointed out in the article.
In another Russian media headlined: “West seeks to dissuade African states from participating in Russia-Africa summit” that was published last December, Federation Council Deputy Speaker Konstantin Kosachev explicitly noted that the first Russia-Africa summit held three years ago was successful, “but, in many respects, its results remained within the dimension of politics” and were not translated into additional projects in trade, economic, scientific or humanitarian cooperation.
Russia’s increasing political dialogues have not been transformed into economic capabilities. Returning as a strategic player, Russia’s business initiatives have inconsistently been followed across Africa. Senator Kosachev,, quoting trade figures to illustrate his argument, said that “the trade turnover speaks for itself. Roughly, the European Union’s trade with Africa stands at around $300 billion, China’s – at around $150 billion, and the United States – at approximately $50-60 billion. Despite the tendency to grow, our current turnover is around $20 billion.”
Back in 2019, Foreign Affairs Minister Sergey Lavrov said that trade between Russia and Africa would grow as more and more African partners continued to show interest in having Russians in the economic sectors of Africa.
“Our African partners are interested in Russian business working more actively there. This provides greater competition between companies from Western countries, China, and Russia. With competition for developing mineral resources in Africa, it is easier and cheaper for our African colleagues to choose partners,” he said at the Moscow State Institute of International Affairs in early September.
“Overall, we are, of course, far from the absolute figures characterizing trade and investment cooperation between the African countries which stood at $20 billion,” he informed the fully-packed auditorium.
In May 2014, Lavrov said in a speech posted to the official website: “We attach special significance to deepening our trade and investment cooperation with the African States. Russia provides African countries with extensive preferences in trade. At the same time, it is evident that the significant potential of the economic cooperation is far from being exhausted, and much remains to be done so that Russian and African partners know more about each other’s capacities and needs.”
As far back in October 2007, the Russian Foreign Affairs Ministry posted an official report on its website that traditional products from least-developed countries (including Africa) would be exempted from import tariffs. The legislation stipulates that traditional goods are eligible for preferential customs and tariff treatment.
While Russia announced this preferential tariff regime for developing countries, which also granted duty-free access to African products, potential African exporters either failed to take advantage of it or were unaware of the advantageous terms for boosting trade.
Analyzing the present market landscape of Africa, Russia can export its technology and compete on equal terms with China, India and other prominent players. On the other hand, Russia lacks the competitive advantage in terms of finished industrial (manufactured) products that African consumers obtain from Asian countries such as China, India, Japan and South Korea.
Charles Robertson, Global Chief Economist at Renaissance Capital, thinks that the major problem is incentives. China has two major incentives to invest in Africa. First, China needs to buy resources, while Russia does not. Second, Chinese exports are suitable for Africa – whether it is textiles or iPads, goods made in China can be sold in Africa.
Keir Giles, an Associate Fellow of the Royal Institute of International Affairs (Chatham House) in London, told me that “there are some more fundamental problems which Russia would need to overcome to boost its trade turnover with the region. The majority of this vast amount of trade with China simply cannot be competed with by Russia. A large part of African exports to China by value is made up of oil, which Russia does not need to import. And a large part of China’s exports to Africa is consumer goods, which Russia doesn’t really produce.”
He explains further that trade in foodstuffs in both directions suffers similar challenges, which are unlikely to be affected by the current politically-motivated Russian ban on foods from the European Union, the United States and Australia. In effect, in sharp contrast to China, the make-up of Russian exports has not really developed since the end of the Soviet Union and still consists mostly of oil, gas, arms and raw materials. For as long as that continues, the scope for ongoing trading with most African nations is going to be severely limited.
Academic experts, who have researched Russia’s foreign policy in Africa at the Moscow-based Institute for African Studies, have reiterated that Russia’s exports to Africa can be possible only after the country’s industrial base experiences a more qualitative change and introduces tariff preferences for trade with African partners.
“The situation in Russian-African foreign trade will change for the better if Russian industry undergoes rapid technological modernization, the state provides Russian businessmen systematic and meaningful support, and small and medium businesses receive wider access to foreign economic cooperation with Africa,” according to Professor Alexei Vasilyev, former Special Representative of the Russian Federation to African Countries.
Quite recently, Dr Gideon Shoo, Media Business Consultant based in Kilimanjaro Region in Tanzania, explained in an interview discussion with me that Russian companies need to prove their superiority in the business spheres, and African governments have to make it easier for Russian companies to set up and operate in their countries.
“Russian financial institutions can offer credit support that will allow them to localize their production in Africa’s industrial zones, especially southern and eastern African regions that show some stability and have a good investment and business incentives. In order to operate more effectively, Russians have to take risks by investing, recognize the importance of cooperation on key investment issues and work closely on the challenges and opportunities on the continent,” he added.
On the other hand, Dr Shoo noted that Russia is, so far, a closed market to many African countries. It is difficult to access the Russian market. However, African countries have to look to new emerging markets for export products and make efforts to negotiate for access to these markets. This can be another aspect of economic cooperation and a great business opportunity for both regions.
Nearly all the experts have acknowledged here that import and export trade has been slow due to multiple reasons, including inadequate knowledge of trade procedures, complicated certification procedures, expensive logistics, security and guarantee issues, rules and regulations, as well as the existing market conditions.
By looking at and revising the rules and regulations, the situation regarding Russia’s presence in Africa and Africa’s presence in Russia could change. All that is necessary here is for Russia and Africa to make consistent efforts to look for new ways, practical efforts at removing existing obstacles that have impeded trade over the years.
According to the African Development Bank, Africa’s economy is growing faster than those of any other region. Nearly half of Africa’s countries are now classified as middle-income countries, and around 380 million of Africa’s 1.3 billion people are now earning good incomes – rising consumerism – that makes trade profitable in Africa.
For decades, Russia has been looking for effective ways to promote multifaceted ties and new strategies for cooperation in economic areas in Africa. Now, Kremlin will hold the second Russia-Africa Summit on July 26-29 in St. Petersburg with high hopes of enhancing multifaceted ties, trying to reshape the existing relationships and significantly rolling out ways to increase the effectiveness of cooperation between Russia and Africa. The first Russia-Africa summit and economic forum were held in October 2019 in Sochi.
By Adedapo Adesanya
Pan-African multilateral financial institution, the African Export-Import Bank (Afreximbank), has approved a $10 billion Gulf Crisis Response Programme (GCRP) to insulate African and Caribbean economies, financial institutions and corporates from the impact of the ongoing Iran war.
The GCRP builds on a series of timely emergency interventions introduced by the lender in recent years, which have helped cushion most economies from the impact of recent shocks such as the commodity shock of 2015/16, the COVID-19 Pandemic of 2020/2021 and the Ukraine crisis of 2023/24.
The latest conflict, which escalated on February 28, 2026, has sent shockwaves through the global economy, with African and Caribbean economies bearing the largest share of the brunt. These impacts specifically affect nations that heavily rely on fuel, fertiliser, and food imports, alongside those exposed to Gulf shipping corridors, investment flows, tourism and remittance inflows.
According to Afreximbank in a statement on Tuesday, GCRP is designed to, among others, sustain essential imports – including fuel, LNG, food, fertiliser, pharmaceuticals – by providing vital short-term Foreign Exchange (FX) and liquidity to support vulnerable member states. It further aims to empower African energy and minerals exporters to capitalise on elevated prices and rerouted trade flows by scaling productive capacity in strategic commodities through pre-export finance, working capital, and inventory financing. Additionally, it provides short-term relief to African and Caribbean member states whose tourism and aviation industries have been adversely impacted by the crisis.
The programme is also designed to build the medium to long-term resilience of African and Caribbean economies against future shocks by scaling productive capacities for producers and exporters of energy, minerals while accelerating the completion of critical energy, port, and logistics infrastructure projects in African and Caribbean member states, delayed by the conflict.
Commenting on the facility, launched on March 31, 2026, Mr George Elombi, President and Chairman of the Board of Directors at Afreximbank, said: “This crisis response programme is in tune with our DNA. We understand how our economies work and the pain points associated with these transitory crises. The programme will support African countries in adjusting smoothly to the crisis while strengthening their resilience to future shocks through interventions that transform the structure of their economies.”
Through GCRP, Afreximbank has already begun taking proactive steps through partnerships with banks and corporates to secure fuel, other energy supplies, fertilisers, and essential food imports, whose supplies have been interrupted by the elongation of the crisis.
Beyond the financing, Afreximbank will spearhead a coordinated regional response in partnership with the UN Economic Commission for Africa (UNECA), the African Union Commission (AUC), the African Continental Free Trade Area (AfCFTA) Secretariat, and the Caribbean Community (CARICOM) Secretariat to strengthen regional coordination on energy security, trade resilience, and supply chain diversification.
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.
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.
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