By Ben Aris, Substack, 10/29/26
Putin is having fun as delegations from 48 of Africa’s 54 countries, 22 led by heads of state, are in Moscow for the third Russia-Africa summit, where Putin is selling Russia as Africa’s anti-colonial partner.
He is on a roll to an eager audience, giving rousing speeches on his favourite topic: the world has been ruled by a bunch of neo-colonist imperialists that are just interested in bleeding the developing world of its human capital wealth to enrich themselves and the workers of the Global South should unite!
This is the third time for the summit, following the first one in Sochi in 2019 and it has been a huge success. The message resonates as much of the message is true. A study we reported found that the West exports some 80% of its manufacturing needs to the developing world, to sweat shops in places like Myanmar, where the “multinationals” pay pennies to have our phones and jeans made. That really does export the human capital wealth from these countries and enrich us in the developed world as a iPhone costs $1,000 and not the $5,000 it would cost if an American made it. That’s $4,000 of cash you can spend on something else. This system was politely known as “globalization” until recently but, as Putin keeps pushing, it can also be called neo-colonialism. At least, the Africans see it that way.
Ironically, this system is exactly what US President Donald Trump is complaining about and the reason for his Liberation Day tariffs – to bring “good manufacturing jobs back home.”
But this is beyond stupid, as it takes no account of the income delta: we did a back of the envelope calculation of the unit cost of making a widget in the EU, US and China using one kilo of metal, 100kWh of power and an hour of average labour: it costs around $25 in the developed world and only $7 in China – and China already has some of the more expensive labour costs in the EMs.
You can’t compete with this, no matter how high you build your trade protectionist walls. As we have been arguing all year, we are now in a post-Pax Americana world as the “emerging markets” have emerged. They should be renamed something like the “dynamic markets” (that is not really catchy enough, eh?) as they still have a lot of problems and the wage delta remains, but the China story shows very clearly that they are catching up in a lot of sectors and even overtaking the DMs in things like Greentech.
But not Africa. That really is still an emerging market story. The per capita incomes in Africa are still a fraction of even Russia’s income. It’s the last really big EM catch up story that has yet to unwind. And Russia is promising to help.
Russia was in the first wave. I was in the room at Putin’s first ever state of the nation speech in 2000 when he put demographics at the top of the agenda – it’s still top of the list – but he his top economic agenda item was to “catch up with Portugal.”
26 years later Russia has overtaken not only Portugal, but everyone else, except the US on a ppp basis.
This process is going in waves. Central Europe caught up with the DMs really fast after the EU accession wave in 2003. China has seen its growth accelerate for about a decade and is now slowing and maturing. Central Asia is only coming to its critical mass now, where Uzbekistan has been putting in 6% growth for a decade but recently started to accelerate and growth is now around 8% with another decade of fast growth ahead. Latin America is doing the same and the Brazilian economy in particular has been transformed and now accounts for a third of GDP of the whole continent by itself.
Africa is right at the start of the process, with a few hot spots like Nigeria. Sub-Saharan African growth averaged 4.5% in both 2026 and 2027 with East Africa growing the fastest at 6.5% projected for this year.
It usually starts with FDI into light manufacturing, but most of Africa is still at the exporting-raw-materials stage. It’s an issue of low wages vs productivity. The Balkans is currently booming as productivity has risen to the point where the combination of the two makes it more profitable than investing in Central Europe. In Africa the wages are essentially zero, but so is the productivity.
In this context, listening to Putin’s speeches today and yesterday and he is pushing all of Africa’s buttons. He is not only promising to provide grain – a top necessity for many countries – but yesterday he also promised to invest into African pharmaceutical sector, and today promised to build factories and move some Russian production to Africa. He also mentioned that the number of African students studying in Russia has doubled in the last year and Rosatom was holding talks on building half a dozen floating nuclear power stations in Africa. These are all productivity multipliers and the assembled presidents are creaming themselves over the prospects as Russia usually finances these sorts of investments itself – for the Africans they are essentially free (in the short-term but come with strategic dependencies…).
The neo-colonial troupe is the Xmas wrapping paper this is all bundled into. Another story earlier this month that went by largely unnoticed was a Russia sponsored UN motion to condemn sanctions as neo-colonial, which was universally approved by the Global South and university condemned by the EU and US. The Kremlin completely outplayed the West with that one. France was booted out of Niger in 2023 because it was paying a fraction for a kilo for uranium, an estimated €68/kg, when the market price was closer to €200. Macron regularly gets booed when he tours in francophone Africa – he simply doesn’t get it.
All this is important as its part of Putin’s big bet on the Global South Century. He must have been fully aware of what would happen when he marched into Ukraine – a permeant break with the West and the end of his dream of a single market “from Lisbon to Vladivostok” which most of his foreign policy was built around. Swapping Germany for Sahel may not look like such a great idea, but when you add in Latam, SE Asia and particularly China, it starts to get more appealing: Putin pointed out that just the BRICS generated 40% of global GDP last year. And Africa will eventually be a big catch as it shares many features with Russia: a large land mass, a large population, and a cornucopia of raw materials. Putin’s plan is clearly to accelerate the catch up, and the Africans are lovin’ it.
Russia is so well received as it never tried to colonise Africa and indeed, during the Cold War the communist USSR supported the independence movements against their colonial overlords. And since then Russia remains the destination of choice for a quality higher education. You’d be surprised at how many of the African delegates in Moscow today speak fluent Russian from their university days. For example, presidents João Lourenço of Angola and John Dramani Mahama of Ghana both studied in Moscow.





















