Over the past two decades, Russia’s efforts to regain its Soviet-era influence in Africa have achieved little success because “times have changed significantly, for example, a new economic and political environment, new emerging challenges, new competitive conditions and new bases for cooperation,” according to Nataliya Zaiser, a Public Policy Advisor at Squire Patton Boggs Moscow office covering Russia, the Eurasian Union and Africa, and also the Chair (Head) of the Africa Business Initiative.
Since March 2016, Zaiser has been the Chair (Head) of Africa Business Initiative (ABI), created with the support of Russian businesses as a platform for the humanitarian, economic and legal expertise, aimed at strengthening relations between Russia and Africa. The main goal of this organization – to unite the efforts in promoting and supporting the interests of Russian businesses within the framework of broader international cooperation on the territory of the African continent.
In this exclusive interview, Nataliya Zaiser explains some of the aspects of the current Russia-African relations, problems and challenges, and its future perspectives.
As one of the participants at the St. Petersburg International Economic Forum (SPIEF) held from June 16 to 18, what were some of the significant questions raised during the Roundtable discussions on Russia and Africa?
The round table was very interesting. Both sides (Russian and African) demonstrated a strong desire for cooperation. We talked about some specifics: about the main economic sectors that various African countries are interested in most; about business diversification away from a focus on mining and oil and gas towards infrastructure projects, telecommunications and biotechnologies.
We spoke on the need to encourage the participation of small and medium size businesses in Africa; on bilateral cooperation; on the importance of the legal aspects of all these and on improving the system of legal regulation of projects, from customs and tax matters to the export licenses. The panelists also touched on enhancing cooperation with Africa in the global fight against drugs and epidemiological diseases, and combating terrorism. We listened to the companies that are active and successful on the continent; they shared some of their experiences, particularly good practice in building business relationships.
Why Russia’s efforts to regain its economic influence have achieved little success, why soft power is softer than Soviet days?
We should not say whether the power is “softer” or “harder” than in the days of the Soviet Union. It’s just different. Times have changed significantly. New economic and political environment, new challenges, new competitive conditions, new bases for cooperation. People are different, minds are different, technologies are different. In all that, we have to find absolutely different approaches and strategies to building business relationships. What remains the same is a will, a very loyal mutual attitude between Russia and African countries and strong desire to push forward these mutual efforts.
In your expert view, looking at Russia’s economic power, its global status and as a staunch member of BRICS bloc, how would you assess its current investment and business engagement with Africa?
Many organizations are trying to solve local problems and find ways for business cooperation with the African continent. The issue of investment looms, perhaps, particularly large. I think that in cooperating with African states, organizations can be guided by an approach of shared responsibility, including the financial aspects. Russia is clearly showing that open partnership with and support of Africa remains a priority. In the current conditions, it will seek ways of co-financing, co-investment and co-partnership. There may also be opportunities too for international partnerships, whether BRICS or any other groupings, formal or otherwise, on African projects.
Some policy experts have attributed Russia’s economic policy setbacks to the lack of a system of projects and business financing. For instance, China has set up China Africa Development Fund as one major source of support and implementing its projects in Africa. What are your views about this?
Russia has developed a number of business councils for cooperation both with individual African countries as well as with its own regions and neighbours. For Africa in particular, the Africa Business Initiative (ABI) offers the chance of a consolidated approach, and an independent organization that can work with the business community in Russia and at the same time combine the interests of the diplomatic community, the state, academic views and so forth.
At this stage when Russia is feverishly struggling to raise its economic profile through dialogues and consultations at the state level, do you suggest that Russia’s financial institutions, especially the banks, get involved in financing corporate projects on the continent?
Investors and lenders today understand the potential benefits of investing in emerging markets like African countries. They also understand the critical importance of addressing the political and economic risks that may accompany an investment in such markets. This is the work, which needs to be carried out. MIGA (Multilateral Investment Guarantee Agency) is one of the biggest international organizations, for example, that helps investors and lenders to deal with such risks by insuring eligible projects against losses.
In Russia, there is EXIAR (The Russian Agency for Export Credit and Investment Insurance) which was established in late 2011 as Russia’s first ever export credit agency. I am sure it has big potential and expect that they will look closely at African projects to support Russian business and guarantee the insurance and safety of their investments. In any case, for a start, it is important that Russia becomes a member or starts cooperation with key major African organizations, such as the African Development Bank, the African Union, the NEPAD, etc. That will significantly extend the boundaries for Russian-African business opportunities.
We have been talking about economic diplomacy between Russia and Africa. And it’s also important to look at the relations as a two-way road. Could you please explain the possible reasons why Africa business is extremely low or completely absent, compared to Asian countries, in the Russian Federation?
This is a good question that I want to address to you as the representative of the African diaspora (smiles). Of course, this is a bilateral cooperation. Russia is open. Africa has much to offer Russia, which is a large country and has excellent prospects in the regions, many of which are developing very rapidly and are ready to accept new partnerships, and discuss forms of cooperation. Moreover, Russian regions are facing similar problems with several African countries: the development of the agricultural sector, technological investment and progress which will support a rise in the standard of living of the population. There is a good case for creating a specific program (a roadmap if you will) for cooperation between African countries and the Russian regions.
As an expert with the reputable U.S. law firm, what would you say about the prospects of Eurasian Economic Community (Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan). Explain further what African countries can make out of this economic bloc.
There’s often a compelling case for neighbouring countries to get together and engage in some kind of union because it can facilitate and stimulate trade relations, reducing barriers without overloading them with tax and customs issues, bureaucratic procedures and other things that may mitigate mutual economic progress. I am sure Africa will take an active part in working with the Eurasian Union as with other international or supra-national organizations and alliances because this kind of cooperation opens the gates to wider initiatives.
Of course, as a global firm our trade practice in particular is a leading advisor on international economic and commercial initiatives – the Transatlantic Trade and Investment Partnership and Trans-Pacific Partnership are two obvious ones that spring to mind. Squire Patton Boggs works globally, with a powerful geographic reach of 46 offices in 21 countries. We advise clients on a wide range of legal and public policy matters.
As for Africa, by the way, we have a dedicated Africa Practice inside the firm which involves numerous specialist teams and industry groups and individual lawyers and public policy advisors who actively work with clients across the continent. With an understanding of key legal, economic and political issues that surround doing business in Africa we have established ourselves as a premier firm for Africa-based transactions offering in-depth market knowledge, extensive experience and unique transactional and public policy combination that helps companies to achieve their African business strategies.
Finally, tell us more about the newly created Africa Business Initiative (ABI), why it has become necessary at this time, its primary roles or tasks and its overall future plans?
The Africa Business Initiative (ABI) was launched and initiated primarily by businesses in Russia. The concept behind this is to develop a focal point for the promotion of business interests which would consolidate the efforts of existing structures: the diplomats, scientists, academics, consultants and so on. The key participation of Russia’s Institute for African Studies, as a serious platform for research, analysis and database, means that we can add significant insight to the actual experience of corporations that are successfully working on the ground.
The main goal is to create a pool of economic expertise aimed at revitalizing the “chemistry” in African-Russian business relationships. It has been widely acknowledged many times that Africa is on the path towards economic prosperity. The economies of many African states are becoming more balanced and there have been a lot of institutional transformations. We need to fundamentally accelerate the approach, backed by a program of long-term trade, geo-economic relations and strategy that would keep pace with the ambitions of individual states. What African continent needs now is the broad development of infrastructure, agriculture, consumer goods, health care and information technology.
The Africa Business Initiative (ABI) can help outline an approach for Russian companies to come to the African market as a whole, as reliable business partners. Through this framework, it will be able to consolidate the interests of companies in different sectors; to address and promote the development of a common position on a whole range of issues; to establish joint strategic initiatives and to expand its presence in the investment field. The task is not to duplicate or simulate the activity of state bodies.
The participation of and partnership with the Institute for African Studies is very important. Historically, the Institute has been and remains the alma mater for many Africans. It has the most powerful research base in Russia, a deep knowledge about developments on the continent. Education and increasing awareness among Russian businesses is key. To understand the features of successful business in Africa, people should be well-versed in the social and political organization of all African countries, especially in their internal relationships, geographical peculiarities, and culture, in legislation, public administration, and so on.
The role of the Institute, as a partner to Africa Business Initiative (ABI), is to provide maximum assistance. Good knowledge of the legal field, regulation, competent interaction with decision-makers and government structures of African states – all these constitute the key to a mutually beneficial and balanced cooperation. The international experience and global presence of the Squire Patton Boggs, which is also one of the members of the Africa Business Initiative (ABI), allows us to assist businesses in the broader international cooperation, involving foreign colleagues and contacts that are interested in doing business in Africa.
Africa becomes area of global competition
The widespread view of Africa as one huge problem point on the planet’s body characterized by pandemics, hunger, poverty and wars – the so-called “Afropessimism” – has now been replaced with an approach which was launched by global powers as they compete for economic and political presence on the continent. After a lull, Russia has joined the race as well.
According to Russian President Vladimir Putin, “African states are steadily gaining political and economic weight, asserting themselves as major pillars of the global multi-polar system and enjoying ever more say in making decisions on the most critical issues of the regional and global agenda.” Significantly, Africa accounts for about one third of the votes in the UN.
After Russia made an impressive “comeback” in the Middle East, Moscow became attractive for states seeking alternatives to the old political and economic ties. The first African country to do that was the war-torn Central African Republic, and the next to follow was Sudan, a country facing a similar challenge. Then more countries did the same. At present, more than 30 African countries have reached agreements with Russia which envisage the development of geo-resources, the supply of produce of the military-industrial complex, and the training of army personnel and law enforcement forces. Among the most significant contractors are Algeria, Egypt, Angola, Uganda and Nigeria.
The consistent and rarely publicized efforts of the Russian diplomacy resulted in the first Russia-Africa summit, which was held in Sochi on October 23-24. The day earlier, the Russian-African Economic Forum opened in Sochi too. Of the 62 African legal entities officially recognized by the UN, the Russian forum was attended by heads of state of 43 countries while another 11 participated at minister and ambassador level. Abdel Fattah al-Sisi represented both Egypt and the African Union.
During the Sochi forum, Russia and African countries signed more than 500 agreements worth about 800 billion rubles. Considering the low solvency of African partners, the participants came to agreement to set up a $ 5 billion trade support fund. The success of the forum prompted the decision to hold it regularly, every two years.
China seems to be Russia’s top economic competitor on the Black Continent. Beijing offers African countries big but easy loans and builds social infrastructure facilities on a gratuitous basis. China attaches great importance to “soft power” by promoting cultural and scientific contacts in an attempt to form loyal national elites. Every year thousands of Africans are granted scholarships to study at Chinese universities. As a result, ten years ago, China snatched from the United States its leadership as Africa’s trade and economic partner thereby becoming one of the major investors and donors to African countries.
Since the beginning of the century, the China-Africa Cooperation Forum has been held regularly, with nearly four dozen African countries joining the One Belt One Road mega-project.
And finally, (as investments have to be protected) in 2017, a Chinese military base appeared in Djibouti, the first beyond the bounds of the PRC.
Simultaneously, Africa’s growing dependence on Chinese financing may become one of Russia’s competitive advantages as the continent starts to look for alternative partners.
The United States has unintentionally been contributing to this, by criticizing the policies of Moscow and Beijing in Africa. Washington has become seriously concerned with measures to repulse the “expansion” of China and Russia. In December 2018, the Trump administration presented a new strategy for Africa, or in fact, a plan to counteract the activity of Russia and China on the continent. There have been numerous official statements to this effect. “These countries are expanding their financial and political influence to Africa by applying “aggressive” practices and acting for their own benefit, which poses a threat to US national security,” – the then adviser to the American president, John Bolton, said, as he unveiled the program. It turns out that the United States is acting in Africa to the detriment of its own interests?
China bore the brunt of criticism. Bolton, as usual, lashed at Beijing for many things, but above all, for using loans to enslave the Black Continent. Last summer, during the US-Africa business summit in Maputo, the United States launched the Prosperous Africa Economic Program. The Program’s ultimate goal is the same – to contain the growing influence of Russia and China by expanding trade with countries of the continent, by promoting American technology and by boosting assistance in the anti-terrorism campaign. According to Bolton, the new approaches will allow African countries “to remain independent in reality, not in theory”. But for the rhetoric, there is little new in the American approach.
Europe boasts traditionally strong positions on the African continent. After they gained independence, the authorities in many former French colonies’ capitals installed monuments to Charles de Gaulle. African countries are interested in cooperating with the European Union in three interrelated areas: peacekeeping, which is so critical for the Black Continent, receiving economic and humanitarian aid, and assistance in the anti-epidemic effort.
In turn, the EU is more set on measures to thwart illegal migration from the African continent, which is its top priority for now. Simultaneously, the EU is trying to be realistic about the economic and political potential of African partners. As far back as in April 2000, Cairo hosted the first EU-Africa summit, attended by heads of state and government. Seven years later, the Strategic Partnership Agreement for Trade and Democracy was signed in Lisbon, designed to boost economic and political ties and calling for “genuine cooperation” and partner equality.
Nevertheless, the number of Europeans present on the continent has been dwindling. Even the French who until recently affected the political situation in Francophone Africa have become fewer in number. According to the authoritative French weekly Le Point, Paris “is losing ground here,” and should thus “come to its senses”, as its influence and economic weight on the continent are steadily declining.
Incidentally, Ankara embarked on cooperation with the continent years ago. The first summit on Turkey’s cooperation with African countries (mainly Muslim) was held in 2008. This year the third summit took place. Since 2010, the government has been following the so-called “African Strategy.” The Turkish Foreign Ministry has proudly reported on its website that the two parties have been demonstrating mutual interest in bilateral ties, which becomes clear from the following figures: while in 2009 there were only 12 Turkish representative missions on the Black Continent, today their number totals 39. And African countries have increased the number of their diplomatic missions in Ankara threefold – from 10 to 33 – over the same period.
Speaking of the prospects for cooperation between Russia and Africa, we can say first of all that Russia is one of the top ten exporters of food products to African markets. Secondly, Moscow is one of the major suppliers of military produce to the continent – the value of military contracts in 2019 is expected to exceed $ 4 billion. Thirdly, local consumers are quite satisfied with the price-quality ratio of many Russian-made products. And the contractors can pay for these goods: Africa accounts for up to one third of the developed mineral reserves, and given that surveys were not always carried out at the appropriate level and did not cover all resources-rich areas, there are more. So, the fourth area of Russia-Africa cooperation is geological prospecting work.
Addressing the Sochi forum, President Putin made it clear to African guests that Russia had no intention to repeat the mistakes of the USSR, which was determined to multiply the number of political pseudo-allies at the expense of economic feasibility. The United States and the EU have also reiterated the mutually beneficial nature of trade and economic relations. Moreover, all actors regularly write off Africa’s debts, and Moscow is no exception.
And finally, it is necessary to point out that Western countries invariably make this cooperation conditional on the “right”, from their point of view, foreign and domestic policies of their contractors. Russia has a clear edge here as it does not seek to force its opinion on anyone, be it Europe or the African continent.
From our partner International Affairs
Moscow’s Institute for African Studies Marks its 60th Year
The Institute for African Studies under the Russian Academy of Sciences was founded 60 years ago, precisely in 1959. Since then it has undergone various changes and carried out huge scientific research on Africa.
Professor Dmitri Bondarenko, the deputy director, discusses some aspects of its most current achievements, challenges and the future. Here are excerpts from the interview conducted by Kester Kenn Klomegah:
Institute for African Studies marks its 60th year. Can we look at its performance, at least, during the past five years? What are the landmarked activities during the past half a decade?
The 60th anniversary is a good reason for looking both back at the results to date and ahead. If I could speak further about the achievements of the most recent years, I would mention first and formost, we try our best to organize fieldwork in Africa, although we are limited in our possibilities rather rigidly.
The landmark activities during the last five years in the academic sphere are as follows: the 13th and 14th conferences of Africanists (2014, 2017) – this is the Institute’s “brand conference”. Every time, it brings together about 500 participants from all over the world, including many African countries. The next, 15th, conference will take place in May 2020; 48 panels with about 10 presentations in each are included into its preliminary program.
In the last five years, several important conferences were organized together with foreign partners – from Slovenia, Portugal and, what is especially important, from Tanzania. The conference took place in Dar es Salaam in March 2019 and brought together scholars from 13 states. The next conference in Tanzania is scheduled for November 2020.
Several dozen books have been published in the last five years, among probably the most important of which are: Federalism in Africa: Problems and Prospects (in Russian and English), edited by Igho O. Natufe and Khristina M. Turyinskaya (2015), Tropical Africa: Evolution of Political Leadership (in Russian) by Tatiana S. Denisova (2016), Islam, Global Governance and the New World Order (in Russian) by Leonid L. Fituni and Irina O. Abramova (2018).
Assess the importance of its research, in form of consultancy, for government institutions and private both in Russia and Africa?
This importance is definitely growing, especially in the most recent years. State institutions and business companies seek the Institute’s consultancy services more and more often nowadays. In particular, the Institute played an important role in the preparation of the Russia-Africa summit in October 2019.
As we are a research institution, my firm belief is that just academic research should be our primary task. The situation has been changing during the last few years. Today the importance of Africa for Russia in different respects, including political and economic, is recognized by the state, and the Russian Foreign Ministry and other state institutions dealing with the Russian-African relations in various spheres, not just purely political, ask us for our expert advice on different points quite often.
What are the current challenges and hindrances to research Africa these years? Do you have any suggestions here on how to improvement the situation?
The situation now is much better for African studies than for a long time before. In particular, today there are much more opportunities for doing fieldwork in Africa. Russian Africanists and their work are becoming better known in the global Africanist community. Quite a lot of junior researchers join the academy nowadays. In my assessment, African studies in Russia are on the right road.
The challenges our African Studies are facing now are the same as the whole Russian Academy are facing, and they are mainly related to the bureaucratic pressure on research institutions.
How about academic cooperation with similar institutions inside Africa? Do you exchange researchers and share reports with African colleagues?
At the moment, the Institute has Agreements on Cooperation or Memorandums of Understanding with 18 universities and research institutes from 12 African states and currently there are negotiations with two more institutions from one more country.
As noted above, many African scholars come to our conferences, and we had and will have jointly organized conferences with particularly Tanzanian partners. Our partners help organize the Institute researchers’ fieldwork in their countries the outcome of which, besides other points, are joint publications (for example, with our colleagues from Tanzania and Zambia).
It is important to say that African colleagues regularly publish their articles in “The Journal of the Institute for African Studies”. We also have book exchange programs with some of our African partners. However, we do not have well-established exchange of researchers with our African partners, especially because of financial difficulties from both sides.
Besides, I must say that not all African partners, even those with whom we have official Memorandums of Understanding or Agreements on Cooperation, are really active in supporting ties with us, some of them do not initiate any joint projects and remain passive when we propose something. Nevertheless, we do have good and diversified ties with many African partners.
And the future vision for the IAS? How would you like the IAS transform, or say, diversify its activities especially now the Kremlin prioritizes Africa?
As I see it, the Institute’s forseeable future will be based on two main developments. On the one hand, it will more and more become a “think tank” for the state and business, and most probably, this development will dominate.
On the other hand, I hope the Institute will remain as a research institution where fundamental studies into different aspects of African and African diaspora’s past and present are done. The Institute for African Studies has the potential and capacity for combining both trends at a high level and far into the future.
As it becomes clearer from the discussion, I see the prospects for the Institute’s further development, in attracting more young researchers with their energy and new visions and approaches, in extending fieldwork in Africa, and in broadening international cooperation with Africanists worldwide.
We Should Exempt Africa from the Russia–UK Geopolitical Confrontation
Today neither Russia nor the United Kingdom can claim a leadership role in Africa. London reached the peak of its influence here between World War I and World War II, when the British Empire had a larger part of the continent under its direct control. Moscow’s heyday in Africa goes back to the 1960s – 1970s, with the Soviet Union having played the role of the main overseas supporter of various national liberation movements. The odds are that in the XXI Century African countries’ destinies will depend more on the logic of the emerging US – China global competition than on any decisions taken in the Kremlin or at Downing Street, 10.
Moreover, today both Russia and the UK have limited economic, political and strategic interests in Africa, compared to some other parts of the world — e.g. Europe or the Middle East. Arguably, this is the main reason why Africa does not look as toxic for Russia–UK relations as some other regions do. However, we cannot rule out potential clashes between the two powers in various present or future crises and conflicts in Africa. We should avoid underestimating the likely benefits of Russia–UK cooperation, even if it remains quite limited.
Many current trends suggest the role of Africa in the international system will continue to grow over time — both in terms of global challenges that the continent is likely to generate and in terms of global opportunities that it is going to offer. If everybody’s attention seems to be focused on the Middle East today, tomorrow it might well shift to Africa. Russian and UK stakes on the continent are likely to grow, while the price of an uncontrolled confrontation is expected to increase.
Moscow and London have to start working on how to contain risks and cut costs of this confrontation. Ideally — on how to exempt Africa from their geopolitical confrontation altogether. The first important step might be to try to agree on an appropriate ‘code of conduct’ on the continent, which could be applied not only to Russia and the United Kingdom, but also to external players in general. Africa may well be an ideal place to test new ideas about such controversial notions as responsibility to protect, failed state, hybrid war or regime change. London and Moscow are more likely to reach an agreement on many African crises than on more sensitive matters like Ukraine or Syria. At the same time, with an understanding on ‘rules of engagement’ in Africa in hand, it would be easier to approach highly divisive cases in Europe or in the Middle East.
Another area for potential Russia–UK collaboration or, at least, for coordination in Africa could be the area of ‘African commons’. The continent is in desperate need of essential public goods, the demand for them is huge and our two nations could do better avoiding old-fashioned competition and increasing the efficiency of their respective assistance projects in Africa. Take, for instance, the domain of general and higher education and human capital development in Africa, where both the UK and Russia have considerable experience and overlapping comparative advantages. Another area for potential cooperation is public health, which will require substantial investment, as well as personnel training and emergency management. Joint projects in infrastructure development, including private-public partnerships, constitute yet another opportunity.
In the security domain, Russia and the United Kingdom could explore options for more intense interaction in fighting international terrorism coming from Africa or targeting African countries. At the same time, Moscow and London could consider enhancing their respective roles in the UN led peacekeeping operations in Africa and demonstrating more appetite for consorted votes within the UN Security Council. They can work together in fighting piracy in the dangerous waters of the Gulf of Guinea, and so on.
It is evident that any Russia–UK interaction in Africa or about Africa cannot and will not be completely separated from the rest of their bilateral relations. If we fail to settle the core problems dividing Moscow and London today, this divisive agenda will continue to limit opportunities for cooperation in Africa as well. However, the Africa of today and especially the Africa of tomorrow will be too important for the world at large to approach it only as an extension of the ongoing Russia–UK confrontation. It is one of the most apparent cases, in which an exemption would not be a manifestation of weakness or cynicism, but rather a demonstration of political wisdom and a strategic foresight.
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