Russia Writes Off $20 Billion African Debt 1

Russia Writes Off $20 Billion African Debt

President Vladmir Putin has said that Russia has written off the $20 Billion debt owed by African nations during the Soviet era. He made these remarks during the ongoing Russia-Africa summit that is happening in Sochi.

He added that the funds from those debts were being used to set up special programmes to support Africa’s economic development.

“Russia had recently written off $20 billion of debt owed by African countries,” Putin said, adding, “funds from those debts were being used to set up special programmes to support Africa’s economic development.”

“It was not only an act of generosity but also a manifestation of pragmatism because many of the African states were not able to pay interest on these loans,” he said.

President Putin also said that the Russian Federation would work with Africa to support the implementation of the African Continental Free Trade Area agreement, in particular by supporting collaboration with the Eurasian Economic Union.

In his own contribution, Abdel Fattah Al-Sisi, President of Egypt and current Chairman of the African Union, said Africa was embarking on a new phase of economic development that had seen it implementing social and economic reforms and making strong efforts at regional and continental integration.

Russia Writes Off $20 Billion African Debt 2
A lot of issues were raised during the Russia-Africa summit but most important was the continental integration in business trade. (Image Credit: russkiymir)

The continent welcomed cooperation with partners and was inviting such partners to increase their investments and financial commitments in the continent, he said.

According to President Al-Sisi, such cooperation must be based on mutual interest and the protection of African property in order to ensure sustainable economic development.

Prof. Benedict Oramah, President of Afreximbank told the heads of state from about 50 African countries and Russia and other participants that annual trade between Africa and Russia now stood at about $20 billion as against $10 billion in the past.

“Afreximbank and the Russian Export Centre had committed to act to achieve another doubling of the trade volume in the next two years.

“Afreximbank would offer guarantees and other programmes to address certain risk perceptions and increase trade,” said Oramah.

Sourced from Sahara Reporters

Also read: Safaricom Appoint Peter Ndegwa as New CEO

 

Russia Writes Off $20 Billion African Debt 3

Author: Moses Echodu

Moses is a freelance writer for Newslibre and Programs Manager at the Craft Silicon Foundation. He loves writing about sports, politics and news around the globe and Inspiring new young people!!

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