Russia Opens a New Trade Frontier in Africa

• Moscow commits to increased trade with Africa.
• Russian companies looking to enter Ethiopia.
• Russia-Africa summit 2026, a new trade age for Moscow and Africa.

Russia, despite long-running sanctions related to the conflict with Ukraine has recorded over 60 percent growth in trade in the last five years and the Eastern European country is projecting to secure in excess of $50 billion in trade with Africa by 2030.

According to Russian media, Moscow plans to achieve this ambitious plan through, among other things, deepening relations with Africa. Russia is looking to and has already started investment in energy (oil, gas, and nuclear), mining, and agriculture, with companies like Lukoil and Rosneft investing in oil and gas projects.

When it comes to investment in energy, Russia is, against all odds, strengthening its footprint in oil, gas, and nuclear power. Mosco is reported to have partnerships in countries like Congo-Brazzaville, Ghana, Cameroon, Nigeria, and Mozambique. In fact, preliminary plans for the set up of nuclear power plants have already been inked with Egypt and Nigeria.

In  mining, Russian companies are involved in several projects across the continent in countries like Tanzania, Zimbabwe and Angola.

As for 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, that is a part of Yandex, expanding into several African markets which is bringing about much needed exchange of technology. This goes hand in hand with investments in infrastructure.

“The goal is to increase the volume of mutual trade to around USD40 billion by the end of the decade…Russia also plans to implement measures like investment guarantees and subsidies to support its companies in Africa,” explains

As a lead member of the BRICS, Russia is also lobbying to expand the use of national currencies in trade settlements in its ongoing bid to reduce reliance 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 implementing official policies and African leaders’ difficulties in creating a favorable climate for foreign businesses,” writes

“As global competition for mineral resources intensifies, Russia has accelerated its partnerships in mining, energy and industrial processing,” the author underscores.

Russia’s investment in Africa ranges from bauxite and gold in Guinea to nuclear power cooperation agreements with Egypt and potential rare-earth exploration in South and East Africa.

As massive as it sounds, it should be noted that despite the said strategic partnerships, Russia’s share of total foreign direct investment in Africa remains considerable less than its competitors, coming in at less than 1%.

Also Read: EU ministers to convene in Paris to chart Africa’s gas export potential

Russia, setting up aluminium plant in Ethiopia

Most recently, the Russian aluminum producer RUSAL has moved to expand its industrial footprint in Africa furthering the motherland’s overall plans.

RUSAL recently signed a Memorandum of Understanding (MoU) with Ethiopian Investment Holdings (EIH) that will see it develop a large-scale aluminum smelter that is expected to have an annual capacity of 500,000 tones.

“The first phase of the project carries an estimated cost of about USD1 billion, with 70% of the financing expected to come from debt partners who have already signaled strong interest,” notes Solom Ekanem of The Insider.

Already, feasibility studies are underway and a site is expected to be named in the near future. The project is anticipated to operate for up to half a century which gives Ethiopia the guarantee of a long-term industrial and export growth capacity.

“The project aligns with Ethiopia’s broader agenda to reduce heavy foreign-exchange outflows tied to aluminum imports while positioning the country as a competitive supplier to regional and global markets,” comments the writer.

Generally speaking, Africa’s aluminium production is considerably limited this despite the fact that the continent is endowed with vast bauxite reserves, with countries like Guinea exporting most of its ore overseas for processing.

This is where Moscow comes in, to support countries to raise to smelting capacity. At the moment, smelting capability is concentrated in but a handful of countries notably South Africa’s Hillside smelter which produces an estimated 720,000 tons annually, then you have Mozambique’s Mozal with an annual capacity of 580,000 tons, Egypt’s Egyptalum and Ghana’s VALCO are also worth noting even though their production figures are of smaller volumes,” notes Vusala Abbasova for Russian Caspian news.

“Ethiopia’s new project with Rusal could change this dynamic. Planned over three to four years with a potential 50-year lifespan, the smelter would create East Africa’s first major aluminium refining hub, boosting the continent’s production capacity and diversifying its industrial footprint,” the report details.

Overall speaking, the Russian investment into Ethiopia for aluminium smelting strengthens Africa’s position in the global aluminium market. This is a worthy investment considering the International Aluminium Institute projects that the sector will grow by 40 percent by 2030.

With such a high growth rate projection, more African countries are expected to look for international investment in the sector since it offers opportunities for downstream industries to grow and with it, 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 increase its footprint in Africa and the Ethiopian smelter shows just how much Moscow is committed to grow its strategic economic influence across Africa and this at a time when Western financing has considerably decreased.

“This latest investment reveals how Russia, alongside China, is capitalising on weakened Western investment flows and shifting geopolitical alignments to secure long-horizon industrial projects,” notes Abbasova.

Moscow is making the move at the right time as many African governments are looking for alternatives to Western deteriorating financing. It goes without saying that Russia has now positioned itself as “a pragmatic partner offering capital, technology and political alignment without governance demands,” Abbasova concludes.

Russia held two Russia-Africa summits and a Ministerial Conference in November 2024 with African countries, clearing the way for the investments that are now starting to take shape.

Ahead of the summits and the conferences, it will be recalled that Russian President Vladimir Putin, delivered what media described as ‘a resonating speech’ in which he pledged to increase bilateral trade with Africa, to a whooping USD40 billion.

Putin he is not just looking to give aid, rather expanding trade and cooperation, following his speech, a memorandum of understanding was signed, commiting to the amount Putin mentioned USD40 billion from the prevailing average of USD20 billion since 2019.

Analysts say Putin was looking ahead as Moscow has already planned for a major Russia-Africa summit to beheld in 2026. Not surprising, the venue for the Russia-Africa summit is Addis Ababa, capital of Ethiopia, which is also the location of the African Union (AU) conference hall built with finances from China, another major BRICS player beside Russia.

“In all the joint declarations, the main tasks are centered around developing Russia-Africa cooperation in all areas, most significantly sustaining Africa’s economic sovereignty. Africa has attained political independence, and the leaders have to protect and think of escaping threats of tricks of falling into neo-colonialism,” says an EEAS Europa report titled Russia-Africa delimmas and opportunities.

Worth pointing out is Egyptian President Abdel Fattah el-Sisi, alongside Putin as chairmen of the historic October summit, jointly expressed the view that “a new page in the history of Russia’s relations with Africa” has been opened.