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Friday 18 August 2023

Russian business strategy for West Africa, from rehashing to reshaping

During late fifties to early sixties the Soviet Union adopted in West Africa, an economic development model similar to the one that prevailed within her state. Features of this business strategy includes command economy, collective farming, public ownership of production and programmed consumption for the people. This failed miserably!

During seventies and eighties Soviets, smitten by their colossal failure in West Africa rehashed the business strategy by incorporating leadership training, loyalty building and affording military assistance to West Africa. This is the time non-alignment was at its summit; anti-colonial struggle took the centre stage. Communism was on the rise and the globe was divided in half as Western and Soviet zones of influence.  Unfortunately unfortunate events within Soviet Union and in several other countries espousing socialism caused them falling like dominoes.

As Soviet Union collapsed in 1990, West Africa was orphaned and France the main colonial power of West Africa wasted not time sealing her total control of trade and investment therein. Once again both Russia and West Africa are wooing each other to bring forth the glory days of Russia West Africa partnership.

But time is a great leveller. Circumstances have changed over time and now the position of Russia in West Arica leaves much to be desired. Going by the optics of Russia Africa summits, first one held in Sochi in 2016 and recent one in St. Petersburg July 2023 one cannot ignore a key revelation.  Russia is in third position after EU & China in terms of trade & investment.  Accordingly, Russia has changed her methodology from rehashing to refocussing business strategy vis-à-vis West Africa. In addition geoeconomics is also a focal point. Here are the salient pointers:

1. Capacity building must be the prime focus. More than infra-structure, developing people, their skills, their knowledge and most importantly the ability to operate machinery and equipment on their own are key parameters

2. Social development ranks second where building schools, community centres, training & development institutions are to be prioritised

3. From total public ownership of production facilities a mixture of public corporations and private enterprises must be chosen so that people also enjoy a stake in these ventures

4. Predictably, economic development model must have three dimensions trade, investment and military. Russia must facilitate West Africa to join North South Trade Corridor (NSTC) ASAP. Russian oligarchs are to be encouraged investing in West Africa both in industry & services sectors.

5. Military dimension is the big chunk in Russian contribution. To be sure military skills must not only be imparted to soldiers alone but include civilian defence area. Burkina Faso took this initiative early on by negotiating with North Korea for the supply of light arms and large weapons. National Service of two years must be made compulsory so the people’s security consciousness is improved. Contextually, this is relevant due to the presence of ISIS and associated terror elements.

6. To cap it all comes Wagner Group who fresh after Ukraine war can contribute immensely in strengthening fighting ability in West Africa. They are already in Mali and could be co-opted to the entire Sahel Region first and thence to the length and breadth of West Africa.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

 


 

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