Russia writes off $23bn debt for Africa-Putin

*As Afreximbank prioritises food security, trade & investment, advancing AfCFTA

The Russian government says it has written off a whopping $23 billion debt burden of African countries.

Russian President, Vladimir Putin, made this disclosure while speaking at the plenary session of the just concluded Second Russia–Africa Summit 2023, noting that Moscow would allocate an additional $90 million for these purposes.

Putin said Russia was advocating expansion of representation of African countries in the UN Security Council and other UN structures.

According to him, Russia and Africa strive to develop cooperation in all areas and strengthen ‘honest, open, constructive’ partnership.

“Russia will also assist in opening new African embassies and consulates in Russia. The reopening of embassies in Burkina Faso and Equatorial Guinea is going as planned”.

Putin also offered assistance to Africa in countering threats such as terrorism, piracy, and transnational crimes adding that it would continue to train personnel from African countries.

He assured that Russian businesses have a lot to offer partners from Africa.

Putin said transition to national currencies and the establishment of transport and logistics chains would contribute to the increase in mutual trade turnover.

“Russia is ready to provide trade preferences to Africa, support the creation of modern production sectors, agricultural sector, and provide assistance through relevant international structures and agencies,” he said.

Meanwhile, in his remarks while addressing the summit, President and Chairman of the Board of Directors of the Africa Export Bank (Afreximbank), Prof. Benedict Oramah, said due to dependency of African economies on external supply of fertilizers and grains, with up to 30 per cent of cereals imported from Russia, ensuring that critical trade flows continue uninhibited, remains the priority of the bank and its African member states.

In his word: “Afreximbank is working with the African Union Commission, the United Nations System and Russian partners to use the Africa Trade Exchange (ATEX) e-commerce platform to facilitate seamless flow of goods and payments in any currencies chosen by sellers and buyers in a transparent manner.

“The platform pools Africa’s demand for grains and fertilizers, and the Bank has placed an aggregate credit limit of $3 billion to support these transactions.

“Beyond the food security priorities and in line with the Bank’s mandate, Afreximbank and the Russian Export Centre are collaborating to promote trade and investments in other critical sectors, with focus placed on activities that will help integrate the African economy and advance the implementation of the African Continental Free Trade Agreement (AfCFTA),” the President explained.

He, therefore, pointed out that Afreximbank offers a portfolio of solutions to support investments in agriculture, industrial parks and critical infrastructure, in partnership with the Russian Export Centre, and supports African investors seeking to explore opportunities in Russia.