World

Russia Rebuilding a Bridge to Africa

Published

6 years ago

01/08/2019

By Kester Kenn Klomegah

About 35 leaders of African countries have officially confirmed their participation in the Russia-Africa Summit, Russian Presidential Envoy for the Middle East and Africa and Deputy Foreign Minister, Mikhail Bogdanov, said mid-July. “Almost all of them want to come. About 35 leaders have officially confirmed their participation. I believe at least 40 leaders will come. We do feel our partners’ commitment and their keen interest.”

According to Bogdanov, the Russia-Africa summits could be held every two or three years. “It is not a one-time event but the start of a long way. We would like to continue that, every two to three years on a regular basis. Of course, the venue will change,” the senior diplomat told reporters in Moscow.

The Russia-Africa summit will be the first in a series of activities under the aegis and direction of the Russian Ministry of Foreign Affairs, the Russian Ministry of Energy, the Russian Ministry of Economic Development, as well as legislative bodies and public organizations.

During the past decades, a number of foreign countries notably China, the United States, European Union, India, France, Turkey, Japan, and South Korea have held such gatherings in that format.

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. This first Russia-Africa summit will definitely enhance mutual multifaceted ties, reshape diplomatic relationships and significantly rollout ways to increase effectiveness of cooperation between Russia and Africa.

While Russia is working toward the start of a new dawn, policy experts have suggested that the Kremlin has to substantiate its future African policy agenda with consistency, activeness and support, and enhance its participation in the economic development of Africa. Major trends of Africa’s development have to be taken into consideration in shaping policies and incorporated in the final summit resolutions and declarations.

“Indeed, through the summit, Russia has to discover specific expectations, new directions and how to deal with Africa. The games there have completely changed, many global players have also adopted investment strategies more appealing and acceptable for Africans,” South African based senior analyst on BRICS and African policy, Kelvin Dewey Stubborn, told me by email from South Africa.

He suggested that, “the Russia-Africa summit has to focus discussions on new development-oriented thinking and how to transfer Russian technology to industry and agriculture more collaboratively, and a lot more cooperation on employment creation across sectors. That’s the best way to sustain peace and eradicate conflicts in Africa.”

South African business tycoon, Sello Rasethaba, questioned how Russia was going to establish a thriving trade relationship with Africa for the benefit of all. In reality and effective practical terms, how does Russia want to reposition itself in relation with Africa? With business relationships, Russia has to consider practical strategies in consultation with African countries. The fact that the middle class is growing in leaps and bounds in Africa makes this market even more attractive and opens more opportunities for Russian businesses.

“The current investment and business engagement by foreign players with Africa is on the increase. There are so many unknowns up there in Russia; it’s crucial that Russia has a clear vision of the relationship it wants with Africa. Russia together with African countries must setup sovereign wealth funds using the resources power of those countries,” he said.

There are similar views and sentiments. Rex Essenowo, Member of the Board of Trustees of Nigerians in Diaspora Europe and Senior Executive of Asian Africa Trade, a Moscow based business lobbying non-government organization, said it was unfortunate that some people consistently undermine Africa’s strategic interest, that is infrastructural development and lifting its vast population out of poverty. Playing the conflict card is strategically destructive because the warring parties want to present Africa as unsafe for investments.

“It is for African leaders to remain focused on the right direction, resolute in conflict management and rolling out new implementable policies oriented towards building infrastructure, modernizing agriculture, investment in manufacturing and industry – these will offer employment for the youth. Meanwhile, we are not even using one tenth of our capacities on investment promotion at international platforms,” he added.

Essenowo further argued that the future of Russia-Africa relations has to take into cognizance the true meaning of building a platform for civil, media and cultural as well as people-to-people interaction, helping to change the attitudes and mentality, remove old stereotypes–these are important steps for improving business cooperation. In addition, Russia could help to deepen understanding through regular dialogue with the civil society and governments, as a basis for economic growth, development, as well as motivation for confidence among Russian investors within the region.

Despite its global status, Russia lacks assertiveness in Africa. Zimbabwe’s Ambassador to Russia, Major General (rtd) Nicholas Mike Sango, told me in an interview discussion that, “For a long time, Russia’s foreign policy on Africa has failed to pronounce itself in practical terms as evidenced by the countable forays into Africa by Russian officials. The Russian Federation has the capacity and ability to assist Africa overcome these challenges leveraging on Africa’s vast resources.”

Ambassador Mike Sango further expressed his views as follows: “Africa’s expectation is that Russia, while largely in the extractive industry, will steadily transfer technologies for local processing of raw materials as a catalyst for Africa’s development.”

Many former African ambassadors, mostly from the Southern African region, have also tasked African leaders to prioritize concrete development projects and reminded them that it was necessary to make rational choices, push for “African solutions to African problems” within the Sustainable Development Goals when they finally gather at the forthcoming October summit in Sochi.

The summit sessions have to discuss thoroughly “the whole range of development issues that will ultimately form the future African agenda” and analyze them through the prism of rivalry and competition among other foreign players on the continent, according to summarized separate media interviews with former African envoys who served in the Russian Federation. Now, Africa finds itself in an excellent position of having many suitors – each offering something it needs for its development, they acknowledged.

Chairman of the State Duma, Vyacheslav Volodin, told an instant meeting held with the Ambassadors of African countries in the Russian Federation, that Russia would take adequate steps to deliver on pledges and promises with Africa countries. “We propose to move from intentions to concrete steps,” Volodin reassured.

On the summit, Foreign Affairs Minister Sergey Lavrov has explained that arranging an event on such a large-scale with the participation of over 50 heads of state and government as well as African business people who have been looking to work on the Russian market required most careful preparation, including in terms of its substantive content and format.

“The economic component of the summit has a special significance as it would be of practical interest for all the parties. As such, specific Russian participants in bilateral or multilateral cooperation should be identified, which are not only committed to long-term cooperation but are also ready for large-scale investments in the African markets with account of possible risks and high competition,” Minister Lavrov noted in an interview posted to his official website.

For decades, Russia has been looking for effective ways to promote multifaceted ties and new strategies for cooperation in energy, oil and gas, trade and industry, agriculture and other economic areas in Africa.

President Vladimir Putin noted at the VTB Capital’s Russia Calling Forum, that many countries had been “stepping up their activities on the African continent” but added that Russia could not cooperate with Africa “as it was in the Soviet period, for political reasons.” In his opinion, cooperation with African countries could be developed on a bilateral basis as well as on a multilateral basis, through the framework of BRICS for instance.

But so far, Russia has not pledged adequate funds toward implementing its business projects and other policy objectives in Africa. Russia’s investment efforts in the region have been limited thus far, which some experts attribute to lack of a policy of financing such projects. While the Russian government is very cautious about making financial commitments, Russia’s financial institutions are not closely involved in foreign policy initiatives in Africa.

As publicly known, China has offered US$60 billion, Japan US$32 billion, and India US$25 billion, while large investment funds have also come from the United States and European Union, all towards realizing the Sustainable Development Goals in Africa.

World

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

Published

4 days ago

01/12/2025

Business Post Contributor

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:

Structured financial support: Establishing state-backed credit lines, policy bank guarantees, and investment funds to reduce project risks.
Incentive realignment: Identifying sectors where Russian expertise aligns with African needs, including energy, industrial technology, and infrastructure.
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.

World

Afreximbank Warns African Governments On Deep Split in Global Commodities

Published

1 week ago

27/11/2025

Adedapo Adesanya

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.

World

Aduna, Comviva to Accelerate Network APIs Monetization

Published

1 week ago

25/11/2025

Modupe Gbadeyanka

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.”