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AFRICA: Russia Behind China and Brazil in Building Relations

Kester Kenn Klomegah

MOSCOW, Jul 12 2008 (IPS) - The Soviet-era connections between Russia and some African states have collapsed into low levels of economic engagement between the former partners, with the arms trade remaining the exception.

This has led to appeals by African governments for a review of Russian foreign policies against the backdrop of growing ties between African states and China, India and Brazil.

One of the primary reasons for the change in Russian-African relations ‘‘is the lack of knowledge and expertise on the side of African economies to be able to enter challenging markets. Russia certainly presents a challenge in terms of size of the country and language, as well as bureaucratic and other hurdles,’’ Raksha Maharaj, a director at the South Africa-based Emerging Market Focus (EMF), told IPS.

‘‘Not many African countries have the resources to be able to assist their companies in addressing these issues. As a result, they prefer to stick to regional or traditional markets,’’ she concluded.

EMF, a company operating in the emerging markets of Africa, Asia, Europe and Latin America, assists governments and firms with business research and consultation services.

She explained that Africans tend to concentrate on markets where they receive trade benefits. For instance, trade promotion measures by the European Union (EU), Canada and Japan have led to an increase in trade and business ties in Africa with these countries.

Furthermore, the Africa Growth and Opportunity Act (AGOA) has increased trade between the United States and African states by approximately 240 percent between 2000 and 2006.

In October last year, Russia announced that products from least developed countries would be exempted from import tariffs.

‘‘This is an important step by Russia to establish more of a foothold in African economies. Such initiatives are also being undertaken by developed countries and the emerging economies of China and India. But it still remains to be seen whether these measures will help to improve trade with African states,’’ Maharaj said.

However, an academic researcher at the African Studies Institute in Moscow believes that the goods that African states presently have on offer will not promote large-scale trade. Unfortunately Russia's trade with African states remains mostly weaponry and military hardware.

‘‘I think there is only a small market for African traditional products. There is some interest in African culture in Russia. But trade in art and crafts cannot promote reciprocal trade radically. As for tea and coffee trade, it would face heavy competition from other global brands. Cocoa is one product that is needed by our chocolate plants.

‘‘But overall, I do not think that the new trade preferences will cause a significant promotion of trade,’’ Oleg Kavykin, a research fellow at the Centre for Civilisation and Regional Studies of the African Studies Institute, told IPS.

Neville Gabriel, executive director of the Southern Africa Trust (SAT), believes that negative perceptions of Russia are contributing to low commercial activity. There seems to be more in common between African and Asian countries than between African states and Russia. SAT is an independent, grant-making organisation that supports policy dialogue to fight poverty.

‘‘Russia has not adequately marketed itself to Africa in terms of trade and investment opportunities. The Russian private sector’s outward focus is generally on western Europe, the United States, Asia and the Middle East rather than Africa,’’ Gabriel told IPS from South Africa.

‘‘It’s probably both a mix of negative perceptions and inadequate knowledge about the emerging business potentials that have an impact on trade development. Beside language obstacles, there are perceptions about quality of products and services and local demand for African products,’’ Gabriel continued.

Molefi Kete Asante, an African history professor at Temple University in the United States, argues that many of the African countries are closely tied to western economies by language. English, French and Portuguese are spoken widely on the continent.

Some nations, like the French and the British, have encouraged Africans to study their languages with awards, trips to their countries and establishing schools that use their models of education.

The professor also believes that perceptions are a problem.

‘‘Remember, however, that during the Soviet era there were many exchanges with Russia. I have not seen evidence of this in the last few years. I believe that Russia may be perceived to be much more nationalistic and perhaps xenophobic in some African circles,’’ Asante told IPS.

Russia, he said, probably comes in last in the trading quartet of BRIC (Brazil, Russia, India and China). Brazil has now started using its cultural connections to boost its trade relationships. It recently announced direct flights from Fortaleza in Brazil to Dakar in Senegal. Brazil has a language connection to Mozambique and Angola.

India has colonial and Commonwealth connections, as well as the language connection through English, with Africa. China does not have a language connection and seems more in line with the Russian example. But China's leaders have been more aggressive in establishing bilateral agreements with African nations, Asante added.

He believes that the low trade between Russia and the African continent has two primary sources: In the first place, there has not been as long a historical relationship between Russia and the African continent as there has been with western European nations.

The second point is that Russia has not been aggressive in courting the African nations in a reciprocal way. It has to be a two-way street.

In May this year, Russian foreign minister Sergey Lavrov pointed out to a gathering of African diplomats that Russia's relations are built on a de-ideologised and pragmatic basis. Large Russian companies are expanding their activities on the continent and investments in Africa are increasing.

He further mentioned that trade has substantially risen over the past year, to about six billion dollars.

It is clear that this is not the limit, given the high average annual growth in gross domestic product (GDP) in African states, exceeding five percent, Lavrov said further.

Under these circumstances, experts suggest that both African and Russian authorities hold more international trade forums for corporate business leaders and entrepreneurs. ‘‘These are surely necessary steps towards a more vigorous trade,’’ Asante told IPS.

Maharaj added that, ‘‘Russia should, as China and India are currently doing, embark on trade facilitation measures which would have to include simplification of import-export procedures to encourage trade with African countries’’. These procedures include customs, warehousing and transportation.

In March this year, Sierra Leone’s ambassador and head of the Group of African Ambassadors, Melrose Kai-Banya, appealed to the Russian government to seriously review and change some of its policies on Africa.

The group suggested that Moscow holds an international conference to discuss ways of enhancing its economic partnerships and cooperation with Africa, similar to those organised by China, India and Japan.