African States Look to Revive Russian Trade

For many of Russia's African trading partners, the Cold War was the good old days. As the two superpowers maneuvered for influence on the continent, many countries benefited from bilateral trade with Moscow, even though much dealing was limited to the military sphere.


In the last five years, however, commerce with Africa has slowed to a trickle. Through the first nine months of 1995, only 2 percent of Russia's trade went to the region, according to the Foreign Ministry.


Seeking to reverse the trend, Russian and African businessmen, academics and government officials last month convened in Moscow for a weeklong conference on trade and investment issues. With more than 100 participants at the sessions, held at the Institute for African Studies at the Russian Academy of Sciences, Nigerian Ambassador Jibrin Chinade said the forum was a sign that commercial relations would soon improve.


"But this depends on the ability of the private sectors in Russia and Africa to pool their resources together to break new ground in trade and economic cooperation to complement government efforts," Chinade said.


The conference, largely devoted to such topics as enterprise restructuring during privatization and small- and medium-scale business development, concluded with agreements to establish a trade center at the institute and publish a quarterly pamphlet on Russian-African business opportunities.


I. A. Nikolayevsky, Russia's deputy minister for external economic relations, said more solid measures would be forthcoming, in keeping with Moscow's growing "emphasis on trade and economic cooperation."


"Russia will continue to take concrete steps to put in place appropriate bilateral agreements that would remove all impediments to direct private sector investments for the benefits of both governments and private sector operators," Nikolayevsky told the conference.


It will be easier said than done. Vladimir Lopatov, an economist and specialist on Africa, attributed the drastic reduction in Russian trade with Africa starting from the late 1980s to a combination of factors: economic crisis in both regions, increased Russian interest in Western markets, and a sharp dropoff in military sales.


"The ex-Soviet Union before 1991 engaged in arms supplies and military equipment which accounted for almost 44 percent of her exports to Africa on long-term credits," Lopatov said. "Furthermore, 89 percent of military credits owed by Angola, Ethiopia, Mozambique and Egypt arose from the tendency in Russia's trade with these countries."


But Chinade, the Nigerian ambassador, was optimistic, saying an "imaginative and pragmatic approach" could "increase significantly trade flows" between Russia and Africa.


Leonid Andreyev, a specialist at the Institute for African Studies, said both Russia and Africa were suffering from neglected opportunities.


"Against the background of the difficulties Russia is encountering in Western markets, it would be the greatest error to ignore the diverse benefits that increased economic cooperation with Africa could bring," he said. Andreyev suggested that Russia be more active in African markets with manufactured products such as tractors, KamAZ trucks, Lada cars, refrigerators and air-conditioners.


"These have always been in high demand there, just as Russia has high taste for tropical fruits and raw materials," he said.


Pavel Korlev, a representative of the Samara regional government, invited African businesses to participate in joint ventures to take advantage of market reforms in the central Russian district.


"Both African and Western businessmen are assured of fast business undertakings in the region," Korlev said, noting the area's strong communications infrastructure.


Sergei Borisov, deputy director of the Institute for African Studies and the executive director of the Association for Business and Cultural Cooperation with African Countries, said Russia's market reforms provided many opportunities.