By Kestér Kenn Klomegâh
Africa Business Initiative (ABI), business NGO, created with the support of Russian businesses as a platform for economic and legal expertise aimed at strengthening relations between Russia and Africa. The main goal of this organization is to unite 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 insightful interview, Chair (Head) of Africa Business Initiative (ABI), Dr. Nataliya Zaiser, explains some of the aspects of the current Russia-African relations, problems and challenges, and its future perspectives with Kestér Kenn Klomegâh in Moscow. Here are the interview excerpts:
Q: As one of the participants, what were some of the significant questions raised during the roundtable discussions on Russia and Africa?
Zaiser: The roundtable 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 about the need to encourage the participation of small and medium-size businesses in Africa; about bilateral cooperation; about the importance of the legal aspects of all these and about improving the system of legal regulation of projects, from customs and tax matters to 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.
Q: Why have Russia’s efforts to regain its economic influence achieved little success, why is soft power softer than in Soviet days?
Zaiser: We shouldn’t say whether 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 a strong desire to push forward these mutual efforts.
Q: In your expert view, looking at Russia’s economic power, its global status and its staunch membership of the BRICS bloc, how would you assess its current investment and business engagement with Africa?
Zaiser: 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 largely. 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.
Q: 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 the China Africa Development Fund as one major source of support and is implementing its projects in Africa. What are your views about this?
Zaiser: Russia has developed a number of business councils for cooperation both with individual African countries as well as with its own regions and neighbors. For Africa in particular, the Africa Business Initiative 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.
Q: 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?
Zaiser: 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’s 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’m 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’s 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 [New Partnership for Africa’s Development], etc. That will significantly extend the boundaries for Russian-African business opportunities.
Kestér Kenn Klomegâh is an Int’l Affairs Analyst
