African countries are breathing a sigh of relief as Russia boosts their economies with a $23 billion debt write-off.
President Vladimir Putin made the announcement at the Russia-Africa forum in St. Petersburg, stating that the Russian government has written off over $20 billion of debt previously owed by African nations. In addition to this, Moscow will also be providing more funds to aid in the development of the continent.
This significant debt relief comes as a welcome gesture from Russia, as African countries continue to struggle under the burden of debt. The $23 billion write-off will help alleviate some of the financial strain faced by these nations, allowing them to focus on much-needed economic development and poverty reduction initiatives.
President Putin emphasised the historical trade and finance links between Russia and Africa, highlighting the long-standing partnership between the two regions. This debt relief is seen as a continuation of this partnership, further strengthening the ties between Russia and African countries.
In addition to the debt write-off, Russia will be providing free grain to hard-pressed countries on the continent. Burkina Faso, Zimbabwe, Mali, Somali, the Central African Republic, and Eritrea will each receive between 25,000 and 50,000 tons of grain, with Moscow covering the delivery costs of the shipments. This aid will provide much-needed relief to countries experiencing food shortages and help combat hunger and malnutrition.
The gesture from Russia showcases their commitment to supporting African countries in their development efforts. In March, President Putin highlighted the growth of trade between Russia and African nations, expressing hope that it could open up additional opportunities for the establishment of the African Continental Free Trade Area (AfCFTA). Launched in 2021, the AfCFTA aims to create a continental market with a total GDP of over $3 trillion, positioning Africa as a key player in the global economy.
President Putin expressed Russia’s support for establishing ties with the AfCFTA, both through the Eurasian Economic Union and on a bilateral level. This commitment to collaboration and partnership highlights Russia’s desire to contribute to the economic growth and prosperity of African nations.
