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Projects in Egypt will become an example for other African countries to cooperate with the Russian Federation

In Cairo, organized together with Russia ended “Big Industrial Week”, which identified great prospects for cooperation. Moscow is laying “road to Africa” through Egypt.

Projects in Egypt will become an example for other African countries to cooperate with the Russian Federation

Egyptian force

International Exhibition and Forum “Big Industrial Week” took place in Cairo for four days, Russia was invited to it as a partner country, all over 100 foreign companies. This event became the first analogue of the International Industrial Exhibition INNOPROM abroad. The project has become the largest business event in the history of relations between the Russian Federation and Egypt, it became the entry point for Russian companies to the markets of North and Central Africa and the Middle East.

The venue was not chosen by chance. Geographically Egypt, located on the Mediterranean coast, has long become a regional trade hub with great industrial potential. Russia without exaggeration sees Egypt as a gateway to Africa - Cairo has signed free trade agreements with a large number of countries, providing a total 40% of world GDP. Russia intends to use this trump card for economic “subjugation” region.

Projects in Egypt will become an example for other African countries to cooperate with the Russian Federation

For this, several levers are involved at once.. The investment includes the creation of a launch pad in Egypt to create a huge base for the production capacity of Russian business. Legal step will ensure trade integration of Egypt into the EAEU space, which will facilitate the delivery of goods from an African country. But at the same time, it will give Russian goods an opportunity to enjoy preferential trade regimes, which Cairo has.

The last step - large infrastructure projects. One of them is atomic – in Egypt has already been launched and is estimated at 25 billion. It will provide the basis for the industrial development of the country and for decades to come will remove the problem of electricity shortages from the agenda of Cairo.. Russia will make good money on this and will increase its influence in Africa..

Base to start

Moscow launches pan-African economic project in Egypt, aimed at supplying products of Russian companies to different countries of the region. For this, the Russian industrial zone in Port Said is being actively built - its opening is planned in 2021-2022 years. The initiative was initially in high demand among Russian business - the prospect of conquering the African market is extremely tempting. Moreover, within the framework of the concept created by Moscow.

RF plans to build up industrial facilities over 500 provided by Cairo hectares in a logistically convenient area in the format “garden city”. Potential Russian residents of the industrial zone began to line up at the concept stage. Among them are companies, specializing in power and oil and gas engineering, automotive industry, machine tool industry, medical equipment and technologies for agriculture. Applications do not stop, because the project will be implemented in several stages.

Projects in Egypt will become an example for other African countries to cooperate with the Russian Federation

company, who will enter this zone, will receive all preferences, provided by the Russian Expert Center and the Suez Canal Special Economic Zone. Besides, Egypt is part of the Agadir Agreement, free trade with the GAFTA alliance – Trade and Economic Union of Arab States. It includes, besides Egypt, 17 Africa, Gulf States and the Middle East. Including the wealthy United Arab Emirates and Saudi Arabia.

All this is a huge duty free market, which attracts Russian business. By the middle 2020 the EAEU plans to sign a free trade agreement with Egypt, which will only add attractiveness to Russian goods on the African market.

Energy expansion

Russia's mega-project for the construction of a nuclear power plant in Egypt will make the African state the only country in the region, having the latest generation reactors 3+. Four NPP power units 1,2 megawatt is guaranteed to remove the problem of the country's energy supply for decades to come. Up to the export of surplus energy to neighboring African countries. They will also become a serious groundwork for the industrial development of Egypt., including Russian companies on its territory.

“Rosatom” took over the construction of a nuclear facility “turnkey” - from preliminary research to training Egyptian specialists, fuel supply for the entire life cycle of the plant and construction of a special storage facility for spent fuel elements. This is a massive long-term investment of tens of billions of dollars., guaranteeing long-term cooperation between Moscow and Cairo. As well as a base of energy capacities for Russian enterprises, who will deploy work in the industrial zone.

Projects in Egypt will become an example for other African countries to cooperate with the Russian Federation

Russia will make good money on these investments – 85% she finances the cost of the work at the expense of her state loan in the amount of 25 billions of dollars. The loan is issued for 13 years for payments 3% per annum. Rest 15% invests Egypt. This is a record deal in the history of the global nuclear industry. And the total value of all NPP contracts – it is also the largest non-resource export agreement in the history of Russia.

But this Egyptian project is no less important for the economy of the Russian Federation - dozens of Rosatom enterprises will receive a huge order and the opportunity to confirm the advantages of Russian nuclear technologies to the world community.. The emergence of Russian energy in Egypt may develop into a host of other projects – for example, Hydroelectric units of the Aswan hydropower plant, the largest hydraulic complex on the Nile, have long been in need of modernization. Russia acquired the competencies for its modernization even during the construction of the unique Kuibyshevskaya HPP.

Gateway to Africa

Several years ago Russia set a course for returning to Africa - with the collapse of the USSR, all projects in this region were curtailed. FROM 2014 years of the Russian Federation managed to restore many economic and cultural ties. For example, she took a leading position in the Egyptian arms market, displacing the USA. And this picture is observed in many African countries, where Moscow is steadily strengthening its influence with the help of “soft power” and trade contacts.

Return to Egypt is a strategic step for the Russian Federation, it makes it possible to move to a new stage in working with “black continent”, what was Africa historically called. Cairo allows not only to deploy production on its territory, but also logistically convenient to deliver goods to many parts of the region. From here, profitable routes for the supply of goods by sea have been established, by rail, by road and air.

Projects in Egypt will become an example for other African countries to cooperate with the Russian Federation

And the removal of duties on Russian goods allows them to become quite competitive with their Chinese counterparts - China, while Russia passed through the notorious “dashing” 1990-it is, engaged in active expansion in Africa and in many ways succeeded. However, According to experts, Since 2014, Moscow has taken a serious pace to promote its interests in Africa, and since then they only increase. The dynamics of trade turnover clearly confirms this.

Such work gives every chance of success., and Egypt is the most important stage on the way to it. The example of cooperation with Egypt will push many African countries towards rapprochement with Russia on many levels - trade and economic, political, cultural and educational.

Max Boot

A source

                          
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