(Moscow Bureau) – Despite an unprecedented sanctions, combined with persistent geopolitical challenges, Russia is strikingly increasing its economic influence on the continent of Africa. Following the collapse of the Soviet’s era, Russia’s economic presence in Africa drastically declined, but that began to pick up, and the practical turning points were the Russia-Africa summits held in Sochi and St. Petersburg. Noticeably, Russia commits itself to deepening multifaceted relations. There are still multiple problems, though.
In this brief interview, Sello Rasethaba, CEO of Xpanse Investments (http://www.xpanse.co.za), in Pretoria, South Africa, shares his views and observations, and further shows insights into the future of the current growing bilateral relations. Interview excerpts follow:
In your view, looking at Russia’s economic power, its global status and as a staunch member of the BRICS bloc, how would you assess its current investment and business engagement with Africa?
Rasethaba: The current investment and business engagement with Africa is on the increase. But at the same time, Russia needs to open up more to Africa, reduce impediments and remove obstacles.
Explain what African countries can make out of the Eurasian economic bloc, underline the prospects for entrepreneurship with the region?
Rasethaba: In short, Russia must emulate the Africa Outreach programme aimed at involving the whole of Africa in BRICS and equally involve Eurasian Economic Community (Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan) and that will be a very powerful economic community.
At this stage, when Russia is feverishly struggling to raise its economic profile through dialogue 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?
Rasethaba: Russia must aggressively support initiatives such as the establishment of the BRICS Ratings Agency and the New International Payment System advocated by the BRICS Business Council to ease the finance of corporate projects in Africa.
Could you please explain the possible reasons why Africa business is extremely low, compared to Asian countries, in the Russian Federation?
Rasethaba: There are so many unknowns, it’s crucial that Russia has a clear vision of the relationship it wants with Africa. Determining relations should not, largely, be rhetoric, but in a practical sense, flexible to promote bilateral trade.
Some policy experts have attributed Russia’s economic policy setbacks to the lack of a system of financing. For instance, China has set up China Africa Development Fund as one major source of support for implementing its infrastructure projects in Africa. What are your views about this?
Rasethaba: Russia together with African countries must set up sovereign wealth funds using the resources power of those countries
As one of the participants at the St. Petersburg International Economic Forum, held late May, what were some of the significant questions raised during the Roundtable discussions on Russia and Africa?
The key question relates to how Russia can establish a thriving trade relationship that benefits Africa. It also needs, some kind of amending the trade rules and regulations, absolutely not those from the Soviet era.
Kester Kenn Klomegah
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