Over the past decade, Africa has thrown an “economic party” for the world. It is no longer news that the continent currently yields the highest return on investment because of its increasing urbanization, ever increasing and youngest population and the rise of its middle class.
Global brands and multinationals, foreign governments and high‐profile investors are all looking to Africa to provide the next significant ‘bang for their buck’.
According to Mr Sim Tshabalala, CEO of the Standard Bank Group, US‐Africa trade stood at some $110 billion last year while trading between China and Africa surpassed $200 billion in the same year. Firms from India and Brazil continue to expedite their expansion on the continent and Africa’s trading with China, India and Brazil now accounts for 25 percent of African global trade whereas this figure stood at 3 percent some 22 years ago.
As the world looks to Africa, there are indications that Russia may be interested in having a share of the African pie. Several delegations from at least 10 African countries have visited Moscow this year at the request of the Russian Government; this has been interpreted by policy experts as a move to strengthen ties with Africa, and could be driven by increasing global competition and foreign players in Africa.
[eap_ad_1]
Professor Georgy Toloraya, Executive Director of the BRICS National Research Committee in Russia, posits; “In the wake of increasing conflict with the West and European Union, Russia has to turn its attention, especially in economy, elsewhere and Africa is the obvious choice. Furthermore, Russia is part of the BRICS effort in Africa, which might be one of the areas of investment activities by the newly created New Development Bank of BRICS.”
There is also a speculation that President Vladimir Putin may want to use the BRICS presidency, which Russia will assume in 2015, to further strengthen its stake in Africa.
Russia may not be too late to Africa’s party, according to experts and can still reap significant dividends if it moves beyond old stereotypes and deploys a unique strategy for the continent.
Andy Kwawukume, an independent policy expert has been quoted as saying; “There is enough room and gaps for Russians to fill too, in a meaningful way, which can benefit all parties involved. The poor and low level of infrastructural development in Africa constitutes a huge business for Russian construction companies to step in. Energy is another sector Russians can help in developing. Really, what Russia needs is a multilayered agenda for Africa.
As more global investments flow in the direction of Africa, it will be useful to see what other moves Russia makes to bolster its presence and stake on the continent. (VENTURES AFRICA)
[eap_ad_4]
