Russian–African prospects: creating a free economic zone to strengthen international economic ties

A free trade zone (or special economic zone) is typically a geographically defined territory where the government offers more favorable rules — lower tariffs, simplified customs procedures, tax incentives, looser regulation — to attract investment, increase exports and create jobs.

In Russia such zones have already been used to attract foreign companies to certain regions by giving them preferential access to infrastructure and financial support. The idea of creating a Russian–African SEZ usually implies not a single lone "zone" but rather the construction of a coordinated network of preferences, special regimes and investment corridors functioning as a single zone covering many countries, not just one.

African economies still largely depend on raw material exports, while Russia is a major exporter of energy carriers, grain and industrial goods. A well-designed SEZ structure could help Russia supply affordable energy and food to African markets, and help African countries increase the value added of their products by processing minerals, agricultural produce and other raw materials locally. Such diversification could reduce volatility: if world prices for oil or wheat fall sharply, a more balanced and integrated regional economy could mitigate the effects.

From a macroeconomic point of view, the most realistic option is not a single, monolithic "free economic zone between Russia and Africa," but a flexible, multi-level structure combining several elements: unilateral or bilateral trade preferences, special investment regimes in particular countries or regions, and a common set of rules for cross-border payments and dispute resolution. Such a structure would allow Russia to deepen economic ties with Africa without obliging the entire continent to a rigid, universal model that may not suit every country.

For Russia, the experience of creating national special economic zones and industrial parks has shown that laws must clearly define the scope of the zone, the rights and obligations of investors, the responsibilities of local and federal authorities, and dispute-resolution mechanisms.

Russia and African countries already have a number of bilateral agreements on trade, investment, double taxation and the prevention of double citizenship, although many African states still lack a full set of such instruments.

Russia has experience with technical regulations and standardization bodies, and African countries are already working within the African Continental Free Trade Area to harmonize standards across the continent.

The idea of creating an SEZ in Russia–Africa relations cannot be viewed solely as an economic project; it also carries deep geopolitical significance. In international politics, investment corridors, trade agreements and infrastructure projects often bear symbolic weight: they signal alliances, influence and strategic priorities. For many African countries Russia represents an alternative partner to traditional Western powers, offering different political constraints, financing options and security relations.

Author: postgraduate student and assistant of the Department of World Economy and Global Finance of the Financial University under the Government of the Russian Federation Rafael Mulenga.