By Khabo Nene
The first Russia-Africa Summit, which took place in October 2019 in Sochi, Russia, hosted over 40 African presidents with the attendance of the South African President, Cyril Ramaphosa and his team in attendance.
The summit was aimed at strengthening economic ties between Russia and African countries. Although bilateral relations between the Republic of South Africa and the Russian Federation are at very high levels, all indications show that they continue to soar from point to point and from strength to strength.
It is recorded that, Diplomatic relations were officially established between South Africa and Russia since February 28, 1992. Russia has since been a major partner for South Africa in terms of the Comprehensive Strategic Partnership Agreement, that was signed in eThekwini in 2013.
The Intergovernmental Committee on Trade and Economic Cooperation (ITEC) is the basis for the beneficial trade and economic cooperation between the two nations. Further substance was added to the growing relationship through the South Africa–Russia Friendship and Cooperation Agreement which was ratified in 2008. This Agreement provides a framework for deepening the strategic partnership.
The effect of the last summit was immediately felt in the South African environment, as it quickly acted on some of the areas it focused on strengthening, such as; Trade and Investment, Energy Cooperation, Infrastructure Development, Technological Cooperation and Military Cooperation.
It is interesting to note that from the time of the last summit up until now, the South African Government has hosted several delegates from the Russian Business community, has taken part in several exhibitions, have attend joint seminars and is continuously experiencing a robust and healthy relationship with the Russian Federation and mostly in the areas of trade and investment.
During the last 26 years the exports of Russia to South Africa have increased at an annualized rate of 11.6%, from $35.2M in 1995 to $616M in 2021. In 2021, South Africa exported $686M to Russia. The main products exported from South Africa to Russia were Manganese Ore ($150M), Citrus ($130M), and Cars ($91.9M).
Taking into consideration, that South Africa is officially still the only African Nation who is a member of the BRICS alliance, fellow BRICS nations have become increasingly important partners for South Africa. Last year, imports from the other four countries accounted for 29 percent of South Africa's imports, while exports to them made up 17 percent of the country's total, he said. Ramaphosa said South Africa's trade within the grouping jumped from about $30 billion in 2017 to about $50 billion in the current year.
Key players in the African economy including the Republic of South Africa have also stepped up their games in the energy sector in partnership with the Russian Federation, seeing several nuclear plants and energy projects being constructed, even as ROSATOM (Russia’s state owned energy company) has chosen to educate several African students on energy programmes for free. Other African countries have also recently benefited from Russia’s military assistance and cooperation, while not leaving different areas of the economy unturned.
The second Russia-Africa Summit has been slated for July 27 to 28, which will be taking place in the former Capital City of the Russian Federation - St. Petersburg, and its main essence is to strengthen the first.
The summit would serve as a platform for Russian and African leaders to engage in dialogue, discuss bilateral and multilateral issues, and explore opportunities for cooperation. It could cover a wide range of topics, including trade, investment, infrastructure development, energy, security, healthcare, and education.
The global impact of this summit would depend on the outcomes and agreements reached during the event. Here are a few potential global impacts that could arise from a second Russia Africa Summit:
1. Strengthened diplomatic ties: The summit would provide an opportunity for Russia to deepen its diplomatic relationships with African countries. It could result in the signing of more joint agreements and memoranda of understanding, enhancing a stronger political cooperation between Russia and African Nations. Diplomatic ties between African countries and Russia have existed for many years, with historical connections dating back to the era of the Soviet Union. Since the end of the Cold War, Russia has continued to strengthen its relationships with African nations through various diplomatic initiatives. The BRICS alliance has till date proven to be one of the most beneficial diplomatic platform that all other African nation aspire to cooperate with.
2. Increased trade and investment: Discussions during the summit could focus on expanding trade and investment between Russia and African nations. This could lead to the establishment of new business partnerships, trade agreements, and investment projects. Enhanced economic ties could have a positive impact on global trade flows.
3. Infrastructure development: Infrastructure is a key area where African countries seek foreign investment. If Russia pledges support for infrastructure development projects in Africa, it could help boost economic growth and improve connectivity within the continent. This, in turn, could have spill over effects on global trade and regional integration.
4. Energy cooperation: Russia is a major player in the global energy market, particularly in oil and gas. Enhanced energy cooperation between Russia and African nations could result in increased energy exports from Africa, contributing to global energy security and diversification, which will definitely contribute to the growth of the continent’s economy, having Russia as a reliable partner.
5. Geopolitical implications: The increased engagement of Russia in Africa could have geopolitical implications. It may be perceived as a counterbalance to the influence of other global powers in the region, such as China, the United States, and the European Union. This could potentially lead to a more multi-polar world order and impact global power dynamics.
6. Education: Till today the Russian Federation is one of the biggest provider of educational services to the African continent at large, by keeping up with its culture of giving free education through the Russian government scholarship programmes, that had been in existence since the days of the soviet union. This year alone, the Russian ministry of Education has announced it will be given 15,000 free scholarship spaces to students from all continents of the world. It is worth specifying that since the last summit, several programmes have been implemented towards improving on the bilateral agreements with nations and it is certain that the second summit will address the strategies to strengthen them.
It is important to note that the actual impact of a second Russia-Africa Summit would depend on the commitments made and actions taken by participating countries following the event.
The outcomes could contribute to shaping Russia's relationship with Africa and have broader implications on global political and economic dynamics.
* Khabo Nene is the Head of Department for Community Services in the Zululand Municipality, KwaZulu-Natal.
** The views expressed do not necessarily reflect the views of IOL or Independent Media.