Participants
of the RussiaAfrica Economic Forum,
slated for 2324 October 2019 in Sochi,
will discuss the outlook and format for Russian-African industrial
collaboration. The focus will be on areas of growth, joint long-term projects,
and economic zones as an example of effective production localization.
One of the most promising types of
Russian-African collaboration may come in the form of economic zones. Modern
production chains are in the process of changing: production is moving towards
end consumers, logistical and technological costs are decreasing, and the
social component of projects is changing, which facilitates the development of
local economies. These
and other topics are up for expert consideration at the New Forms of Cooperation between Russia and Africa:
Opportunities for Special Economic Zones Based on the Project to Establish a
Russian Industrial Zone in Egypt discussion panel on 23
October.
Participants will evaluate the conditions
necessary for creating infrastructural «entry points» with preferential regimes
for special (free) economic zones producing competitive, high-quality,
high-tech products with advantages for local markets.
A Russian Industrial Zone is currently
being created in Egypt at the East Port Said site of the Suez Canal Economic
Zone and is a unique project involving governmental, state development institutions,
and members of the business community. As of today, framework agreements have
been concluded with 25 resident companies that include manufacturers of
biochemicals and fertilizers, building materials and steel works, composite
materials, agricultural machinery, electrical equipment, oil and gas equipment,
and port equipment among other things.
A 525-hectare production complex will be
rolled out in stages, making it possible for Russian exporters and suppliers to
localize capacities close to emerging markets in the Middle East and Africa.
Residents will be able to take advantage of modern engineering and utility
infrastructure and choose between designing their own buildings on the base
site and developing existing production facilities. Tax, export and import
custom duty, employee expenditure, and Suez Canal passage exemptions and
concessions will be put in place for companies. 100% revenue repatriation will
be provided without special requirements demanding the involvement of an
Egyptian partner.
Russia 24 TV Channel Head of the Economic
Programme Alexey Bobrovsky will moderate the session on new formats of
cooperation and the creation of a Russian Industrial Zone in Egypt. Discussion
participants include Chairman of the Suez Canal Economic Zone (SCZone) Yehia
Zaki, President and Chairman of the Board of Directors of the African
Export-Import Bank (Afreximbank) Benedict Oramah, General Director of Russian
Industries Overseas Egypt Ilya Pomigalov, CEO of the Russian Export Center
Andrey Slepnev, and Chairman of the Russian-Egyptian Business Council Mikhail
Orlov.
«Africa is currently of great interest to
manufacturers and suppliers of Russian agricultural and special purpose
machinery, companies involved in the maintenance and modernization of power plants,
in oil production and transportation, and in the equipping of chemical and
mining facilities», Slepnev said. «We
welcome the creation of the Russian Industrial Zone in Egypt as part of the
International Cooperation and Export national project the Russian Industrial
Zone will accelerate the growth of Russian exports. Today, when construction of
the industrial zone is set to begin, the Russian Export Center is finalizing
plans with Egyptian partners. And though the national project calls for production
in the Russian Industrial Zone to kick off in 2024, we know the zones first
residents plan to start in 2022. The REC is involved in expanding
cooperation between Russia and Africa in every possible way, creating
convenient export support tools, supporting joint initiatives, and creating
special export routes. We see ahead exceptional opportunities for Russia and
Africa».
The RussiaAfrica Summit and the Economic Forum will be held 2324 October in Sochi at the Sirius Park of Science and Art. The events are being organized by the Roscongress Foundation, with the Russian Export Center and Afreximbank co-organizing the RussiaAfrica Economic Forum.
For a more detailed version
of the RussiaAfrica Economic Forum programme, please visit: https://summitafrica.ru/en/programm/