TheCable

The Russian government says it is developing new tools that will offer preferential loans to enable Africans to buy industrial goods from European countries and enjoy after-sales services.

President Vladimir Putin spoke at the Russia-Africa summit and Russia-Africa economic and humanitarian forum in St. Petersburg.

The president said his government is interested in deepening the cooperation between Russia and Africa, thereby improving  trade and commerce. 

“Africa’s potential is obvious to everyone. For example, the average annual GDP growth on the continent in the past 20 years was 4 percent to 4.5 percent, which exceeds the world’s average,” Putin said.

“Russia’s government, business and the public are sincerely interested in further deepening multifaceted trade, investment and humanitarian ties with the continent, which meets the needs of all our countries and promotes stable growth and prosperity.

“We are aware of the importance of uninterrupted supply of food products to African countries. This is vital for their socioeconomic development and for maintaining political stability.

“This is why we have always given and will continue to give special attention to supplying wheat, barley, corn and other grain crops to our African friends. 

“Russia is ready to share its expertise in agricultural production with African countries and to provide assistance in introducing the most advanced technologies.

“We are also interested in further developing cooperation with African countries in the energy sector.”

Being one of the top manufacturers of industrial goods, Putin said his government is willing to promote deeper cooperation between Russia and Africa in manufacturing.

“We are developing new tools for offering preferential loans to enable Africans to buy our industrial goods, deliver them to the continent, and benefit from after-sales services,” he added.

“The Russian Agency for Export Credit and Investment Insurance is there to provide insurance for these loans. We are devising a leasing mechanism tailored for Africa and are about to establish a dedicated investment fund for co-financing infrastructure projects.”

PUTIN HIGHLIGHTS OTHER GOALS FOR AFRICA

Speaking on technology, Putin said the Kremlin has positive experience in developing and using information technology solutions for administering taxes, registering property rights, offering e-government services to individuals and entities, including the corporate sector.

 “We can help African countries that are interested in these solutions launch similar systems and reaffirm our unwavering commitment to sharing our know-how for promoting technological development,” the Russian leader said.

To expand the range of its trade and economic ties, he said, African countries should use national currencies, including the ruble in the settlement of commercial transactions.

Putin said Russia was ready to help African countries develop financial infrastructure and connect their banking establishments to the financial messaging system created in Russia. 

“Russia is actively reorienting its transport and logistics flows to the Global South, including Africa, of course. The North-South transport corridor that we are building is designed to provide Russian products with access to the Persian Gulf and the Indian Ocean, with further connections via the shortest sea route to the African continent, among other regions,” he said.

“Naturally, this corridor can be used in reverse to deliver African goods to Russia.

“Connecting the North-South transport corridor with Africa, launching regular freight lines, which is our goal, and opening a Russian transport and logistics hub in a port on the eastern shore of Africa could be a good start of our cooperation. 

“We consider it extremely important to expand the network of direct flights to Africa and to contribute to the development of the railway network in Africa. These are the most important goals of our time that we invite our African friends to tackle together.”