On October 24, Russia’s Sochi will host the Russia-Africa Summit, the first full-scale top-level meeting, to which leaders of African states and heads of Africa’s major regional associations have been invited. In the run up to the event, Vladimir Putin gave an interview to TASS news agency, presidential web page reported.
Speaking of the potential level of investment in Africa in the next five years, the President said that “the figure is expected to be quite high, with a number of billion-dollar investment projects with Russia’s participation currently in the pipeline. Both Russia and Russian companies have substantial resources. We hope that our partners, in turn, will create the necessary stable and predictable business environment and investment protection mechanisms and ensure favorable investment climate.”
“As far as granting loans is concerned, today these loans are market-oriented. For example, a decision was made to grant a loan to Egypt in the amount of $25 bln for the construction of four power units for El Dabaa NPP. This is specifically market-oriented lending,” he noted. “At the end of the 20th century, Russia cancelled $20 bln of African countries’ debts to the Soviet Union. This was both an act of generosity and a pragmatic step, because many of the African states were unable to service those debts. There are other schemes that are currently applied to some of the remaining debts. For instance, intergovernmental agreements with Madagascar, Mozambique and Tanzania are being implemented in the framework of the debt-for-development swap program. We expect that Ethiopia’s remaining debt to Russia ($163.6 mio) will be settled under similar conditions. The relevant draft agreement is currently being elaborated.”
“Russia makes contributions to international programs of assistance to Africa in the framework of the UN Development Program, the World Food Program, and the International Civil Defense Organization. Sometimes in-kind support is provided. Since 2011, WFP offices in Africa have received 258 KAMAZ trucks. Another batch of 75 trucks has been shipped most recently,” the President pointed out. “The use of new financial mechanisms does not rule out the practice of granting loans, but rather provides for a wider and more diversified toolkit in support of development. It contributes to establishing mutually beneficial cooperation between Russia and African countries.”