Association For Strategic Culture and Research Foundation

Interview by Kester Kenn Klomegah

Financing projects in Africa is one of the important keys and, at the same time, the most difficult issue for major Russian companies attempting to expand to Africa, and the financial instruments at their disposal are insufficient according to Anna Belyaeva, Executive Director of the Association of Economic Cooperation with African States.

A recent report by Economist Corporate Network, supported by Baker McKenzie and Silk Road Associates, BRI Beyond 2020 (Economist report), showed how these strengthening trade links are, in part, a result of favourable financial incentives offered to African jurisdictions by China. According to the Economist report, 33 of the poorest jurisdictions in Africa export 97 per cent of their exports to China with no tariffs and no customs duties.

After Soviet's collapse, Russia has been struggling to find ways of regaining part of its Soviet-era economic influence throughout Africa. Nigeria is high on Russia's agenda for reviving multifaceted business ties, at least to share the market and take up opportunities similar to external players such as the United States, Europe and China.

When the African Continental Free Trade Area (AfCFTA) was initially proposed at the African Union summit in 2012, it had two goals: First, build a pan-African agenda in trade and cooperation. Second, lift a large percentage of people out of poverty by instituting structural economic changes and cooperative legislation.

In order to raise the economic influence, Russians have been making efforts to identify a structured finance mechanism for mega infrastructure projects such as nuclear power and energy, natural resources exploration and to significantly increase trade with Africa

United States investors are looking forward to exploring several opportunities in the African Continental Free Trade Area (AfCFTA), a policy signed by African countries to make the continent a single market.

The economic principles have to be pursued and demanded with the same energy as the political ones. Fundamentally, it is the responsibility of the state, controlled by democratic institutions and an active civil society, to ensure that economic growth actually translates into employment creation.

This year marks the 65th anniversary of the start of diplomatic relations between China and African countries. Over the past 65 years, China and Africa have forged unbreakable fraternity in our struggle against imperialism and colonialism, and embarked on a distinct path of cooperation in our journey toward development and revitalization. Together, we have written a splendid chapter of mutual assistance amidst complex changes, and set a shining example for building a new type of international relations.

Russia has to upgrade or scale up its collaborative engagement with Africa. It has to consider seriously launching more public outreach programmes, especially working with civil society to change public perceptions and the private sector to strengthen its partnership with Africa. In order to achieve this, it has to surmount the challenges, take up the courage and work consistently with both private and public sectors and with an effective Action Plan.

The question is, are African countries harnessing this potential offered by the AfCFTA?

Of course, Dr. Nkrumah during the years between 1945-1972, wrote extensively on the necessity of African unification. The union of African governments and people would encompass the national economies, the trade unions, youth, women, military institutions and the establishment of a continental market based in socialist planning.

Perhaps the most controversial aspect of the AU Summit was the challenge by South Africa and Algeria to the unilateral decision made during 2021 by Commission Chair Mahamat to grant Israel observer status within the continental organization. Historically the progressive and anti-imperialist forces in Africa have demonstrated unconditional solidarity with Palestine along with other national liberation movements fighting colonialism.

Long before this summit, European Union members and business investors have been making consistent efforts at capitalizing on and exploring several emerging opportunities offered by the newly introduced African Continental Free Trade Area (AfCFTA), which provides a unique and valuable access to an integrated African market of 1.3 billion people. In practical reality, it aims at creating a continental market for goods and services, with free movement of business people and investments in Africa.