Ghorab explained that Russia aims to deepen industrial cooperation with African countries.
This industrial zone will export its products to the African continent, enabling Russian companies to access the African market - Press Photo
Dr. Ashraf Ghorab, the economic expert and Deputy Head of the Arab Union for Social Development at the Arab Labor Organization in the League of Arab States for Economic Development Affairs, stated that the Russia-Africa Summit held in St. Petersburg, with the participation of President Abdel Fattah El-Sisi, will yield significant economic gains for Russia and African countries, particularly Egypt.
He emphasized that one of the key topics being discussed at the summit is the issue of food security, especially after the global food crisis triggered by the Russo-Ukrainian conflict and Russia's withdrawal from the grain export agreement, which affected African countries' grain imports.
Ghorab explained that Russia aims to deepen industrial cooperation with African countries, with Egypt at the forefront. One of the most notable gains for Egypt in this summit is the launch of the Russian industrial zone in the Suez Canal Economic Zone, where infrastructure construction is expected to begin this year.
This industrial zone will export its products to the African continent, enabling Russian companies to access the African market. Additionally, Russia is building the Dabaa Nuclear Power Plant in Egypt and seeks to link Egyptian and Russian ports through cooperation in telecommunications, information technology, media security, artificial intelligence, and the digital economy.
The Russia-Africa Summit represents a breakthrough in resolving the grain and fertilizer crisis for African countries, providing affordable prices after global price hikes.
Russia remains committed to supplying African nations with grains and has significant production capacities in grains, oil, and gas to compensate for any future food shortages in the continent.
Ghorab highlighted that Russia's approach to engaging with Africa aims to expand trade relations, as the current trade volume between Russia and Africa did not exceed $18 billion in 2022. President Putin seeks to increase this trade volume to $40 billion.
Enhancing Russian-African relations will contribute to conducting trade settlements between African countries and Russia using national currencies, which will further increase trade volume between the African continent and Russia.
This effort is backed by serious intentions from Russian officials, including the Minister of Foreign Affairs. Official statistics indicate an increase in trade volume between Egypt and Russia, reaching $4.7 billion in 2022 compared to $4.1 billion in 2021. Moreover, Russian investments in Egypt exceed $8 billion.
The economic expert noted that the Russia-Africa Summit will lead to economic gains for African countries through increased Russian investments. Russia seeks to expand its economic presence in African markets and boost trade and investment between the two sides. This move also serves Russia's interests amid the European and American sanctions imposed on the country, especially considering Africa's economic strength and untapped natural resources.
In a positive development, several African countries have reported robust economic growth rates and increased foreign direct investments.
The continent's economic outlook is optimistic, with African nations implementing reforms to improve business environments and attract more investment. The Africa Continental Free Trade Area (AfCFTA) is further facilitating intra-regional trade and bolstering Africa's position as an attractive investment destination.
