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Russia, African states set up $5 bln trading platform

The agreement is aimed at giving Russian exporters access to the African market

SOCHI, October 24. /TASS/. Russia and some African states signed a deal at the Russia-Africa forum on creating a mechanism for funding trade deals between the countries, a TASS correspondent reported from the signing ceremony on Wednesday.

The deal was inked in a four-way format bringing together the Russian Export Center, Sberbank, VEB.RF and Gemcorp Capital LLP. The platform’s volume will reach some $5 bln.

The agreement is aimed at giving Russian exporters access to the African market. "The deal is designed to develop cooperation with African states by arranging mechanisms of issuing loans for joint foreign trade projects and it opens up opportunities for increasing the volume of Russian export through financial support of Russian goods’ supplies to the African continent, including to Angola, Ethiopia, Mozambique, Zimbabwe and other African states," the Russian Export Center said.

The platform will enable absorbing risks related to trade with African countries. "We, in turn, will attract at least 10 countries and literally open a trade corridor to the African continent. This will create a unique opportunity for Russian businesses to systemically expand presence in the region and consolidate on one of the most promising and dynamically developing global markets opening it for high-tech domestic export," the REC Director Andrei Slepnyov said.

As of today, VEB’s portfolio on supporting Russia’s export to Africa exceeds $2 bln. According to Deputy Chairman of VEB.RF Daniil Algulyan, the Russian state development corporation is ready to help Russian companies promote their goods and services on this market.

"Currently, the VEB.RF corporation is considering a number of projects on developing transport, including railways, and is working on projects on delivering domestic equipment for creating industrial manufacturing. The priority areas could be energy, chemical and mining, pharmaceuticals, healthcare and education. One of our key partners on the continent is Afreximbank," he said.

On October 23-24, the resort city of Sochi is hosting the Russia-Africa Summit, co-chaired by Russian President Vladimir Putin and Egypt’s head of state Abdel Fattah al-Sisi. The leaders of all 54 African countries were invited to come, and at least 40 of them have already confirmed their participation. Eight major African integration associations and organizations are also involved in the event. On the summit’s sidelines, an economic forum is taking place, which is attended by the continent’s heads of state, and representatives of the business community and government agencies. The Roscongress Foundation is the organizer of the event, and TASS is the official photo host agency of the summit and economic forum.