Recently concluded Russia Africa Summit showed
tectonic shifts taking place as regards to the relations between Russia and
Africa. Quantitatively the summit appears to be wanting as fewer heads of
states were present this time but qualitatively it heralded Russia’s African business
strategy undergoing quantum changes.
This time around only 17 heads of state participated in the St. Petersburg Russia Africa Summit in July 2023, compared to the colossal figure of 43 who attended the summit held in Sochi in 2019. Initial disappointment as regards to this inadequacy orchestrated mainly by the arm-twisting of African leaders by America slowly passed over.
But the fact that 49 out of 54 countries were represented is still a worthy point to note. Something different also happened. Vladimir Putin took personal effort to parley with all attendees in the plenary session and in subsequent detailed sessions throughout the duration. In fact the summit was extended by one more day to three days instead of two days that was originally planned.
Russia did not waste time and went on to present & explain the frame work of business strategy that demonstrated tectonic shifts. Here are the vectors in play of this tweaked business strategy:
1. The “Africa Window “undergoes structural revision. During the Soviet era Russia followed a combination of military assistance, political/diplomatic support for anti-colonial struggle and infra-structure development in selected countries. After the collapse of Soviet Union, Russia did not follow up on these efforts due to internal issues precluding Russia’s overtures to Africa.
2. The latest business strategy is anchored upon the primary concept of continuity of African Window as Russia shifts from her focus on the West to the East, where the African continent is near her realm. Besides, once again Africa is seen fighting newest forms of neo-colonialism, globalism and capitalistic liberalism.
3. Predictably, the frameworks of unveiled business strategy has four inter-connected saliences:
Food security ranks first where Russia would lend assistance to Africa in terms of supply of grains below the market price. Accentuated by immediate free shipment of 25 to 50,000 tonnes of grain to six countries, namely Burkina Faso, Central African Republic (CAR), Eritrea, Mali, Sudan and Zimbabwe the grain corridor will be a necessary conduit to ensure food security to Africa.
Logistics to support shipments from Russia is being meticulously planned. Hubs would be built in chosen locations in Africa to coordinate sea and air freight and connected administrative functions and more than that verifiable documentation.
Geoeconomics is being brought to the fore with three nodes: one relates to capacity building by lending assistance in economic development, technology transfers and trade facilitation. The second node relates to the forgiving of debt. Russia is set to forgive almost 90% of the African debt amounting to US$ 23 Billion. The last one is to improve the present Russia- Africa trade volume of US$ 18 billion by many folds.
Finally it is envisaged that Africa needs continued military support in her struggle against the West. Accordingly participation of Wagner Group, who are presently in four countries viz. CAR, Libya, Mali and Sudan be extended to as many African countries as possible.
Plainly put, Russia offers Africa a deal that the latter cannot refuse. “Business strategy amid geoeconomics” to ensure Africa is safe, secure and able to stand on her own in the future.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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