- Moscow commits to increasing trade with Africa.
- Russian companies wanting to enter Ethiopia.
- Russia-Africa Summit 2026, a new trade era for Moscow and Africa.
Despite long-term sanctions over the conflict with Ukraine, Russia has recorded more than 60 percent growth in trade over the past five years and the Eastern European country expects to secure more than $50 billion in trade with Africa by 2030.
According to Russian media, Moscow wants to realize this ambitious plan, among other things, by deepening relations with Africa. Russia is looking forward and has already started investing in energy (oil, gas and nuclear), mining and agriculture, with companies such as Lukoil and Rosneft investing in oil and gas projects.
When it comes to energy investments, Russia is, against all odds, strengthening its footprint in oil, gas and nuclear energy. Mosco is said to have partnerships in countries such as Congo-Brazzaville, Ghana, Cameroon, Nigeria and Mozambique. In fact, preliminary plans for the establishment of nuclear power plants have already been drawn up with Egypt and Nigeria.
In mining, Russian companies are involved in various projects across the continent in countries such as Tanzania, Zimbabwe and Angola.
In agriculture, Russia has long been a major supplier of wheat to Africa, with annual exports increasing significantly to meet growing demand across the continent. You also have Russian companies like Yango, which is part of Yandex, expanding into several African markets, creating much-needed technology exchange. This goes hand in hand with investments in infrastructure.
“The aim is to increase the volume of mutual trade to about $40 billion by the end of this decade. Russia also plans to introduce measures such as investment guarantees and subsidies to support its businesses in Africa,” he explained.
As a leading member of the BRICS, Russia is also lobbying to expand the use of national currencies in trade deals in its ongoing effort to reduce dependence on the US dollar.
However, these grand plans are not without obstacles: “Russia’s economic influence in Africa has faced challenges due to institutional and bureaucratic obstacles, including a lack of prioritization in the implementation of official policies and the difficulties of African leaders in creating an enabling environment for foreign companies,” writes
“As global competition for mineral resources increases, Russia has accelerated its partnerships in mining, energy and industrial processing,” the author underlines.
Russian investments in Africa range from bauxite and gold in Guinea to nuclear energy cooperation agreements with Egypt and potential rare earth exploration in southern and eastern Africa.
As big as it sounds, it should be noted that despite the mentioned strategic partnerships, Russia’s share of total foreign direct investment in Africa remains significantly smaller than that of its competitors, at less than 1%.
Also read: EU ministers meet in Paris to map Africa’s gas export potential
Russia sets up an aluminum factory in Ethiopia
Recently, Russian aluminum producer RUSAL has taken steps to expand its industrial footprint in Africa, furthering the mother country’s overall plans.
RUSAL recently signed a Memorandum of Understanding (MoU) with Ethiopian Investment Holdings (EIH), under which the company will develop a large-scale aluminum smelter expected to have an annual capacity of 500,000 tons.
“The first phase of the project is estimated to involve around $1 billion, with 70% of the financing expected to come from debt partners who have already expressed strong interest,” notes The Insider’s Solom Ekanem.
Feasibility studies are already underway and a location is expected to be named in the near future. The project is expected to be operational for half a century, guaranteeing Ethiopia a long-term industrial and export growth capacity.
“The project is in line with Ethiopia’s broader agenda to reduce major foreign exchange outflows linked to aluminum imports while positioning the country as a competitive supplier to regional and global markets,” the writer said.
Overall, African aluminum production is significantly limited, despite the continent having vast bauxite reserves, with countries such as Guinea exporting most of its ore abroad for processing.
This is where Moscow comes into the picture, to support countries in increasing their smelting capacity. At the moment, smelting capacity is concentrated in just a handful of countries, most notably the South African Hillside smelter which produces an estimated 720,000 tonnes per year, then you have Mozal in Mozambique with an annual capacity of 580,000 tonnes, Egypt’s Egyptalum and Ghana’s VALCO are also worth mentioning, even if their production figures are of smaller volumes,” notes Vusala Abbasova. Russian Caspian news.
“Ethiopia’s new project with Rusal could change this dynamic. Planned over three to four years with a potential life of 50 years, the smelter would create East Africa’s first major aluminum refining center, expanding the continent’s production capacity and diversifying its industrial footprint,” the report said.
Overall, Russian investments in Ethiopia for aluminum smelting strengthen Africa’s position in the global aluminum market. This is a worthwhile investment considering the International Aluminum Institute expects the sector to grow by 40 percent by 2030.
With such a high growth forecast, it is expected that more African countries will look for international investments in the sector as it offers opportunities for downstream industries to grow and thus regional economic development.
“If the project reaches full operational capacity, it could reshape the aluminum value chain in East Africa while deepening Russia’s long-term economic presence in one of Africa’s most strategically positioned markets,” the report concludes.
As mentioned, Moscow is looking to expand its footprint in Africa and the Ethiopian smelter shows Moscow’s commitment to increasing its strategic economic influence across Africa, at a time when Western financing has declined significantly.
“This latest investment shows how Russia, together with China, is capitalizing on weakened Western investment flows and shifting geopolitical relations to secure long-term industrial projects,” Abbasova noted.
Moscow is making this move at the right time, as many African governments are looking for alternatives to deteriorating Western financing. It goes without saying that Russia has now positioned itself as “a pragmatic partner that provides capital, technology and political coordination without demands from governance,” Abbasova concludes.
Russia held two Russia-Africa summits and a ministerial conference with African countries in November 2024, paving the way for the investments that are now starting to take shape.
Ahead of the summits and conferences, it will be recalled that Russian President Vladimir Putin gave what the media described as “a resonant speech” in which he pledged to increase bilateral trade with Africa to as much as $40 billion.
Putin does not just want to provide aid, but rather expand trade and cooperation. Following his speech, a memorandum of understanding was signed committing to Putin’s stated figure of $40 billion, compared to the prevailing average of $20 billion since 2019.
Analysts say Putin is looking ahead as Moscow already has plans for a major Russia-Africa summit in 2026. Unsurprisingly, the venue for the Russia-Africa summit is Addis Ababa, the capital of Ethiopia, which is also home to the African Union (AU) conference hall, built with financial support from China, another major BRICS player besides Russia.
“In all joint statements, the main tasks are centered on developing Russia-Africa cooperation in all areas, the most important being the preservation of Africa’s economic sovereignty. Africa has achieved political independence, and its leaders must protect themselves and remember to escape the threat of tricks to fall into neo-colonialism,” says an EEAS Europe report titled Russia-Africa delimmas and opportunities.
It is worth mentioning that Egyptian President Abdel Fattah el-Sisi, together with Putin as chairmen of the historic October summit, jointly expressed the opinion that “a new page in the history of Russian relations with Africa” has been opened.
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