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.
Critical Views On Russia’s Policy Towards Africa Within Context Of New World Order
In September WhatsApp conversation with Matthew Ehret, a Senior Fellow and International Relations Expert at the American University in Moscow, he offers an insight into some aspects of Russia-African relations within the context of the emerging new global order.
In particular, Matthew gives in-depth views on Russia’s valuable contribution in a number of economic sectors including infrastructure development during the past few years in Africa, some suggestions for African leaders and further on the possible implications of Russia-China collaboration with Africa. Here are important excerpts of the wide-ranging interview:
What are the implications here and from historical perspectives that Russia is looking for its allies from Soviet-era in Africa…and “non-Western friends” for creating the new world order?
Russia is certainly working very hard to consolidate its alliances with many nations of the global south and former non-aligned network. This process is hinged on the Russia-China alliance best exemplified by the integration of the Eurasian Economic Union with the Belt and Road Initiative and the spirit of cooperation outlined in the the Feb. 4 Joint Statement for a New Era of Cooperation.
Of course this is more than simply gaining spheres of influence as many analysts try to interpret the process now underway, but has much more to do with a common vision for instituting a new system of cooperation, creative growth and long term thinking uniting diverse cultural and religious groups of the globe around a common destiny which is a completely different type of paradigm than the unipolar ideology of closed-system thinking dominant among the technocrats trying to manage the rules based international order.
Soviet Union, of course, enormously supported Africa’s liberation struggle and resultantly attained political independence in the 60s. What could be the best practical way for Russia to fight what it now referred to as “neocolonialism” in Africa?
Simply operating on a foundation of honest business is an obvious but important thing to do. The African people have known mostly abuse and dishonest neo-colonial policies under the helm of the World Bank and IMF since WW2, and so having Russia continue to provide investment and business deals tied to the construction of special economic zones that drive industrial growth, infrastructure and especially modern electricity access which Africa desperately needs are key in this process.
African countries currently need to transform the untapped resources, build basic infrastructure and get industrialized -these are necessary to become somehow economic independent. How do you evaluate Russia’s role in these economic areas, at least, during the past decade in Africa?
It has been improving steadily. Of course, Russia does not have the same level of national controls over their banking system as we see enjoyed by China whose trade with Africa has attained $200 billion in recent years while Russia’s trade with Africa is about $20 billion. But despite that, Russia has done well to not only provide trains in Egypt, and has made the emphasis on core hard infrastructure, energy, water systems, and interconnectivity a high priority in the 2019 Russia-Africa Summit and the upcoming 2023 Summit.
Generally, how can we interpret African elite’s sentiments about Russia’s return to Africa? Do you think Russia is most often critical about United States and European Union’s hegemony in Africa?
I think the over arching feeling is one of trust and relief that Russia has returned with a spirit of cooperation. According to all the messaging from Lavrov who recently completed an important Africa tour late July, I can say that Russia is very critical of the USA and EU approach to hegemony in Africa. As Museveni and the South Africa Foreign Minister have recently emphasized, they are sick of being talked down to and threatened by western patronizing technocrats, whereas we see a sense of mutual respect among the discourse of Russian and Chinese players which is seen as a breath of fresh air.
While the west is obsessed with “appropriate green technologies” for Africa while chastizing the continent for its corruption problems (which is fairly hypocritical when one looks at the scope of corruption within the Wall Street- City of London domain), Russia supports all forms of energy development from coal, oil, natural gas and even nuclear which Africa so desperately needs to leapfrog into the 21st century.
Understandably, Russia’s policy has to stimulate or boost Africa’s economic aspirations especially among the youth and the middle class. What are views about this? And your objective evaluation of Russia’s public outreach diplomacy with Africa?
So far Russia has done well in stimulating their youth policy with expanded scholarships to African youth touching on agricultural science, engineering, medicine, IT, and other advanced sectors. Additionally the Special Economic Zones built up by Russia in Mozambique, Egypt have established opportunities for manufacturing and other technical training that has largely been prevented from growing under the IMF-World Bank model of conditionality laced loans driven primarily by the sole aim of resource extraction for western markets and overall control by a western elite. Russia has tended to follow China’s lead (and her own historic traditions of aiding African nations in their development aspirations) without pushing the sorts of regime change operations or debt slavery schemes which have been common practice by the west for too long.
Sochi summit has already provided the key to the questions you have, so far, discussed above. Can these, if strategically and consistently addressed, mark a definitive start of a new dawn in the Russia-African relations?
Geopolitical confrontation, rivalry and competition in Africa. Do you think there is an emerging geopolitical rivalry, and confrontation against the United States and Europe (especially France) in Africa? What if, in an alliance, China and Russia team up together?
China and Russia have already teamed up together on nearly every aspect of geopolitical, scientific, cultural and geo-economic interest imaginable which has created a robust basis for the continued successful growth of the multipolar alliance centered as it is upon such organizations as the BRICS+, SCO, ASEAN and BRI/Polar Silk Road orientation. This is clear across Africa as well and to the degree that this alliance continues to stand strong, which I see no reason why it would not for the foreseeable future, then an important stabilizing force can not only empower African nations to resist the threats, intimidation and destabilizing influences of western unipolarists.
Sahel security crisis ‘poses a global threat’
Rising insecurity, including the proliferation of terrorist and other non-State armed groups, coupled with political instability, is creating a crisis in the Sahel that poses a “global threat”, the UN chief warned Thursday’s high level meeting on the vast African region, which took place behind closed doors at UN Headquarters in New York.
“If nothing is done, the effects of terrorism, violent extremism and organized crime will be felt far beyond the region and the African continent”, said Secretary-General António Guterres, in his remarks issued by his Spokesperson’s Office.
“A coordinated international breakthrough is urgently needed. We must rethink our collective approach and show creativity, going beyond existing efforts.”
The insecurity is making a “catastrophic humanitarian situation even worse”, he said, leaving some beleaguered national governments, without any access to their own citizens.
‘Deadly grip’ tightening
Meanwhile, “non-State armed groups are tightening their deadly grip over the region and are even seeking to extend their presence into the countries of the Gulf of Guinea.”
The indiscriminate use of violence by terrorist and other groups means that thousands of innocent civilians are left to suffer, while millions of others are forced from their homes, Mr. Guterres told the meeting of national leaders, during the High Level Week summit.
“Women and children in particular are bearing the brunt of insecurity, violence and growing inequality”, he said, with human rights violations, sometimes committed by security forces mandated to protect civilians, “of great concern”.
And the crises are being compounded by climate change, said the UN chief, with soil erosion and the drying-up of water sources, “thereby contributing to acute food insecurity and exacerbating tensions between farmers and herders.”
“Against a global backdrop of turmoil on energy, food and financial markets, the region is threatened by a systemic debt crisis that is likely to have repercussions throughout the continent.”
The conventional international finance remedies are not helping, the UN chief said bluntly, with more and more countries forced to channel precious reserves into servicing debt payments, leaving them unable to pursue an inclusive recovery, or boost resilience.
“It is absolutely necessary to change the rules of the game of the financial reports of the world. These rules of the game are today completely against the interests of developing countries, and in particular the interests of African countries”, said Mr. Guterres, “with debt problems, with liquidity problems, with inflation problems, with instability, necessarily posed by this profound injustice in international financial and economic relations.”
Democracy, constitutional order
The UN chief called for a “renewal of our collective efforts to promote democratic governance and restore constitutional order” across the whole Sahel, which stretches from Senegal in the west to northern Eritrea and Ethiopia in the east, a belt beneath the Sahara of up to 1,000 kilometres.
The rule of law and full respect for human rights are indispensable for ensuring security and sustainable development, Mr. Guterres said.
Addressing national leaders and senior politicians from the region, he said the UN “stands ready to work alongside you, with urgency and solidarity, for a peaceful, stable and prosperous Sahel.”
South Sudan: Extended roadmap for lasting peace deal, a ‘way point, not an end point’
Since 2018, the Revitalized Agreement between the key players in South Sudan’s long-running civil war has provided a framework for peace, the Head of the UN mission there, UNMISS, told the Security Council on Friday – “despite continued outbreaks of intercommunal violence”.
UN Special Representative Nicholas Haysom said that although key provisions of the Agreement are set to end by February, the parties agreed in August on a Roadmap that extends the current transitional period by 24 months.
While a welcome development, he reminded that “there is no alternative to the implementation of the peace agreement”.
“Let me underscore that the roadmap is a way point, not an end point”, he said.
Inclusive political process
The UNMISS chief flagged the importance of an inclusive political process and the opening of civic spaces as “essential conditions” for a robust and competitive electoral process.
He then outlined some steps underway – from President Salva Kiir and first Vice-President Riek Machar’s agreement to resolve the parliamentary impasse, to the graduation of the first class of joint armed forces recruits – for which budgetary resources, integration and deployment, are vital to allow a broader security sector transformation.
“Failure to address these critical issues…have the potential to reverse the gains made,” Mr. Haysom warned.
He went on to describe violence on the regional level, marked by cycles of cattle raiding, abduction, and revenge killings along with fighting in Upper Nile state that has displaced thousands of people.
The Special Representative reported that while conflict-related violence is also increasing, UNMISS continues to support prevention through policy frameworks and other areas.
“The Mission is strengthening its support to the justice chain in each state…to address crimes that risk destabilizing the peace, including those involving gender-based violence,” he told the ambassadors.
Mr. Haysom said that UNMISS has managed to accomplish a “double pivot” in its focus and operations, by channeling resources towards the political process; proactive deployment to violent hotspots; and expanding its protection presence for civilians.
He assured that South Sudan’s natural resources have “tremendous potential” for either conflict, or cooperation.
“It is always political that can make the difference”.
Turning to the humanitarian situation, he acknowledged that food security continues to deteriorate, leaving some 8.3 million people in need and outstripping available funding.
Noting that the Humanitarian Response Plan is only 44.6 per cent funded, he urged donors to fulfil their pledges.
He asserted that the next few months would be “a litmus test” for the parties to demonstrate their commitment to the Roadmap, warning against “delays and setbacks”.
In closing, the Special Representative reaffirmed the importance of the international community’s support.
“Our collective task now is to support the parties in fulfilling their obligations to the people of South Sudan as per the timing of the Roadmap,” he concluded.
Meanwhile, Lilian Riziq, President, South Sudan Women’s Empowerment Network discussed a broad-based and inclusive process for all key participants, underscoring the need for a new transitional governance process.
She underscored that election timelines are indispensable, noting that four years on, levels of revitalized agreement implementation have not brought security or ended humanitarian misery.
She also highlighted ways that precious oil revenues in South Sudan, have been heavily misused.
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