This archive report was first published on 30 October 2019.
On October 30, 2019, Russia's President Vladimir Putin was making waves in the international community with his country's growing presence in Africa. However, despite the optimism surrounding Russia's entry into the continent, experts warn that it won't be a walk in the park.
Since the collapse of the Soviet Union in 1989, Russia has not been a significant player in Africa. The continent has instead been embracing economic liberalization and globalization, leaving Russia's allies to move on.
However, Russia has been busy rebuilding its economic systems and redefining its geopolitical strategies. The country is primarily a natural resource commodity export economy, with a focus on oil, gas, minerals, metals, and grains. Russia also exports military hardware, but its free enterprise is not sufficiently developed beyond state-supported companies.
As a result, Russia's global trade and investments may face headwinds in Africa, particularly with the increasing emphasis on transparency and competitive transactions. The country's sociocultural presence in Africa is also negligible, with no NGOs or development partnerships to provide economic-political bridges.
Despite these challenges, Russia is venturing into Africa at a time when the continent is heavily burdened with debt. However, there is an option for public-private partnerships, which come with less public debt. Russia is also strong in the energy sector, with ongoing projects in Egypt and plans in other countries.
However, Russia's past attempts at entering the African energy market have been met with failure. A nuclear power generation project in South Africa was unsuccessful during Jacob Zuma's presidency, and a Russian consortium led by RT Global Resources withdrew from a Uganda refinery project in 2014 due to US sanctions.
Despite these setbacks, Russia is making a comeback in Africa. Last week, the Russian state oil company Lukoil announced a partnership with Saudi Aramco to prospect and develop oil resources in the Congo Basin. Kenya is also exporting tea to Russia, and opportunities exist for the two countries to cooperate in the exploration and development of minerals and oil and gas resources.
However, what Kenya should avoid is being tempted by Russia to develop a nuclear power project prematurely. The country is not yet ready for the actualization of a nuclear project due to high project unit costs and the absence of critical demand.
Entering Africa will not be a walkover for the Russians, but President Vladimir Putin's diplomatic and political prowess should not be underestimated. He has created and maintained simultaneous diplomatic bridges among nations with differing political postures.
