For the first time, Russia is hosting a large-scale forum on economic cooperation with African countries. The organizers emphasize that since 2001, trade between the Russian Federation and the states of the region has grown from $ 5 billion to $ 20.4 billion. According to the Federal Customs Service, in 2018, exports increased by 18.2% to $ 17.5 billion, imports - by 11.5 %, up to $ 2.9 billion. The main trading partners of Russia in Africa last year were Egypt, Algeria, Morocco, South Africa and Tunisia.
The most popular Russian export goods in Africa are food and agricultural raw materials, as well as machinery, equipment, vehicles, TASS reported with reference to data from the Ministry of Economic Development. The main imports from the continent to Russia came from citrus fruits, ores and manganese concentrates, cocoa, vegetables, fruits, and tobacco raw materials.
Experts say that Africa is now of great interest to Russia, especially from a business point of view.
“Russia lacks some important minerals. It is a shortage of almost 20 minerals, the domestic consumption of which is largely ensured by imports. For example, we have a deficiency of manganese - 100%, and chromium - 80%. The situation is similar with cobalt, coltan and other minerals, which are primarily used in the production of high-tech products, ”explained Yevgeny Korendyasov, head of the Center for Research on Russian-African Relations and Foreign Policy of Africa at the African Institute of the Russian Academy of Sciences.
The expert added that now about 80% of the global production of coltan, elements of which are present in any mobile phone, falls on the Democratic Republic of the Congo. In addition, Russia purchases almost 60% of bauxite (aluminum ore) from African countries.
“We also have a huge interest in agricultural cooperation. Agricultural products account for about 26% of our exports to the countries of the continent. At the same time, more than 70% of Russian imports from African countries are agricultural raw materials and food, including vegetables, fruits, and wines. It is worth noting that the continent’s states provide us with cocoa and 33% tea, mainly due to Kenya and Tanzania, ”Korendyasov emphasized.
In addition, Evgeny Korendyasov added about the growing popularity of tourism. According to the expert, every year 2 million Russians visit the countries of the continent. Africa is also interested in developing relations with Russia in the energy and telecommunications sectors, especially satellite communications. “There is a backlog in the extraction and processing of natural raw materials. For example, the Russian Severstal produces about 40% of its gold through work in Burkina Faso and Guinea. In addition, annually in Angola we mine diamonds for $ 400-500 million, ”the specialist concluded.
- Gold mining
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However, Russia is actively cooperating with Africa on the development of non-resource exports in foreign trade. According to RT at the Russian Export Center (REC, part of the VEB.RF group), the key countries for promoting non-oil exports are Egypt (which accounts for more than a third of Russian-African trade), South Africa, Zambia, Angola, Algeria, Nigeria and Kenya . For the first half of 2019, non-energy non-resource exports grew by 15% compared to the same period in 2018.
According to the forecast of the REC, in 2020 the growth of Russian-African trade will be about 20%. At the same time, the organization noted that the introduction of the Russian industrial zone in Egypt will play a significant role in ensuring the growth of the indicator.
“In recent years, Russia has been very poorly represented on the continent. In the Soviet years, our presence was more significant, at least politically. After that, our political and economic role on the continent decreased. The region’s interest in active work with our country is due to the fact that African countries expect to receive loans from Russia on more favorable terms than from other states. It is possible that loans or other financial assistance may follow the upcoming forum, ”says Irina Filatova, professor at the HSE Faculty of Humanities, in a conversation with RT.
Russia is ready to provide loans to African countries only on market conditions. This statement was made by Russian President Vladimir Putin in an interview with TASS.
“Of course, the Soviet model - with its pluses and minuses - turned out to be quite effective at the stage of formation of statehood in African countries. Today we continue to provide financial support to African states. But if earlier such decisions were made mainly for political reasons, now it is within the framework of humanitarian assistance. As for the provision of loans, now they are of a market nature, ”the head of state emphasized.
Vladimir Putin cited an example of a $ 25 billion loan to Egypt for the construction of four Dabaa nuclear power units. A nuclear power plant will be built on the north coast of the country 3.5 km from the Mediterranean Sea. The contract value is estimated at $ 30 billion, most of which will be financed by a Russian loan. The launch of the first power unit is scheduled for 2026. The construction of all four NPP units is planned to be completed by 2029.
- Coffee Plantation in Tanzania
- globallookpress.com
- © Ulrich Doering / imageBROKER.com
“African countries, like Russia, are actively exporting their natural resources - mineral and iron ore, oil, gas. In many of these areas, we coincide in terms of supply. This means that we can either compete in these areas or establish relations, following the example of our cooperation with OPEC countries, ”said Irina Filatova.
However, experts also speak of serious competition for access to African resources. Now the continent is a zone of special economic interest for China, the volume of trade with African countries is exactly ten times higher than in Russia.
As the Deputy Minister of Commerce of the People's Republic of China, Qian Kemin, previously stated, in 2018, the Asian republic's trade with the countries of the region grew by 20% and amounted to $ 204 billion
“The African continent for China is both a source of direct access to resources (aluminum bauxite, ferrous ores, forests, graphite deposits for the production of industrial diamonds), and a large market for consumer goods (clothing, fabrics, electronics, household appliances and much more) ), which looks very advantageous in the context of value for money in the eyes of the mass buyer and retail chains, ”said Peter Pushkaryov, chief analyst at TeleTrade, in an interview with RT.
According to the analyst, by 2020 the volume of trade between China and African states may increase by another third.
The Russia-Africa Summit will be held on October 23 and 24 in Sochi, co-chaired by Russian leader Vladimir Putin and Egyptian President Abdel Fattah al-Sisi. The leaders of all 54 states of the continent are invited to it, more than 40 of them have already confirmed their participation. Together with the summit, an economic forum will be held in which the heads of state, representatives of government agencies and business will take part.