Russia’s Ambitious Economic Engagement With Africa Remains Symbolic Undertaking – Interview

With renewed and full-fledged interest to engage in diverse economic sectors across Africa still largely remains full of symbolism and expression of policy interest. Russia considers the existing growth of neo-colonial tendencies as impediments for investment. Rather focusing on its own investment to showcase African leaders and elites within the context of current geopolitical developments, Russian officials are rather criticizing the United States and Europeans for the scramble for resources in Africa. Afrter the first (October 2019) and second (St. Petersburg, July 2023) summits, both Russian and African officials are still at the crossroads over concrete spheres of economic cooperation. 

The two summit declarations will now be reviewed and revised at the forthcoming first Russia-Africa ministerial conference this early November in Sochi, the southern city in the Russian Federation. Ahead of the conference, Dr. Gideon Shoo, media consultant and business lobbyist based in Kilimanjaro Region in Tanzania, explained in this interview what Russian investors and other participants can expect from the Kremlin, Russian political leaders and corporate business executives from the public and private sectors for subsequent collaboration with Africa. Following are excerpts from the interview:

Africa Beyond Aid! What should African leaders do in order to raise mutual cooperation with Russia? Let us look at this question on the reverse side, from the African side.

Gideon Shoo: African leaders must strive to understand their counterparts in Russia. They need to understand the political system in Russia, and at least, the economic policies and interests. At the same time, they need to demonstrate what they can do in terms of helping Russia overcome some of the economic hitches as a result of sanctions imposed on her by the United States and the European Union. They should engage in "a scratch my back I scratch yours" relationship given the fact that Russia is advanced in technology which is badly needed in Africa.

Russia has several bilateral agreements, at least, during the past decade, and including from the first and second summits that were largely not implemented in many African countries. In your view, what mechanisms be fixed to deliver on pledges and promises?

GS: This is quite an important aspect of Russia-African relationship. Bilateral agreements need to be revised and schedules of implementation be drawn wherever possible. Russia needs to go back to those years when it committed itself to support Africa get out of neo-colonial cobweb by assisting in crucial and important areas such as education, public health and engineering. That was partly done through offering higher and specialized education as one way of development assistance to the continent. But time has practically changed, that Africa needs multifaceted investment in its economic sectors and to undertake critical infrastructure projects as an integral part of securing its economic sovereignty.

Of course, priority spheres include energy, oil & gas, infrastructure etc., but what kinds of state support be offered Russian companies and enterprises to operate effectively in Africa?

GS: Russian companies need to prove their superiority in the sector mentioned above. The companies should show how African countries are going to benefit. African governments must 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 good investment and business incentives. In order to operate more effectively, Russians have to risk by investing, recognize the importance of cooperation on key investment issues and to work closely on the challenges and opportunities on the continent.

Of course, Russians have been trying to return there over the past few years, which is a very commendable step forward. There are prospects for greater or broader foreign players. Until potential Russian investors make a decision to pay more high-level attention to Africa, it is difficult to see greater engagement at the economic or business level. In practical sense, it requires to move beyond mere expression of interests, it needs strategic focus and pragmatic approach from both Russians and African governments.

According to official figures, Russia-African trade currently stands at $23.8 billion. Could trade preferences help potential African exporters (make it a two-way road) also to explore the Russian market?

GS: Russia is, so far, a closed market to many African countries. It is difficult to access the Russian market. There are no direct flights to most African capitals, and it makes Russia not a common destination even to the Vasco da Gamas of Africa. While tropical fruits and vegetables are rotting in Africa, the Russian market is yawning because of sanctions. Why not work out a two-way traffic between Africa and Russia? African countries have to look to new emerging markets for export products, make efforts to negotiate for access to these markets. This can be another aspect of the economic cooperation and great business opportunity for both regions.

Talking about Russia's presence in Africa and Africa's presence in Russia. Understandably, much also depends on the interest of African business-people; but what should be done to stimulate or boost potential African exporters' interest in Russia?

GS: Visits. Visits. Official Visits. These official visits proliferate, to and fro African capitals and Moscow. But, how can this be achieved if there are no direct affordable flights? Can Africa and Russia establish links through joint ventures including those in aviation? Yes, I think and believe it is possible. Can Africa, especially south of the Sahara be a tourist destination for Russians and vice versa? Yes, it is possible. For instance, tourism can primarily help to broaden cultural horizons, breaking stereotypes and attitudes.

Developing tourism is one way to promote business and raise knowledge of diverse culture in Africa. By looking at the rules and regulations, the situation about Russia's presence in Africa and Africa's presence in Russia can be changed. Russia and Africa have to make efforts for raising the level of trade and business in both regions.

St. Petersburg and Sochi summits seemingly hold the key to all these questions you have so far discussed above. Can these, among others and in reality, mark a definitive start of a new dawn in the Russia-African relations?

GS: In the first place, Russians and Africans have to look at this positively. It will offer participants the opportunity to engage in dialogue, receive up-to-date information on the current trends, challenges and prospects of investment activities as well as networking for business contacts. It is also important that African leaders determine and set their development priorities.

Russia's policy is full of skyline symbolism. Interestingly, I think both St. Petersburg and Sochi summits have already been considered as new chapters in Russia-Africa cooperation, but unfortunately not as there remains concrete steps to take in determining where to invest in and what projects worth undertaking in Africa. It all depends on how serious Russian and African leaders together with summit and conference participants see it happen in practical terms. The first step, of course, should be a complete departure away from policy rhetoric, its hard time to act on policy decisions. In any case, the gathering has to offer the expected fruits, leave a long-term and sustainable impact and memories, and indeed, should open the door to Africa.