Moscow, Russia

Russia is set to significantly increase its fertiliser exports and agricultural technology cooperation with African nations, underscoring a new phase of strategic partnership that includes Ethiopia and is increasingly shaped by the countries’ growing engagement within the BRICS alliance.

At a recent Global Food Security Conference in Russia, officials from PhosAgro Group—one of the world’s largest phosphate-based fertiliser producers—announced that Russian fertiliser exports to Africa have soared more than six-fold since 2018, reaching 740,000 tonnes in 2024. In the first half of 2025 alone, exports rose by a third compared to the same period last year. PhosAgro’s deputy chief executive, Siroj Loikov, stated that Africa is now a priority for the company’s international development, with plans to double exports over the next five years.

Russia currently supplies fertilisers to 21 African nations, with Ethiopia among the top recipients. The Russian Fertiliser Producer Association (RFPA) highlighted that these products are among the world’s most environmentally friendly, free from harmful levels of cadmium and other toxic substances that have contributed to soil degradation in parts of Africa. This focus on sustainability is seen as vital for supporting Africa’s food security and agricultural productivity.

Beyond fertiliser, Russia is also stepping up efforts to share agricultural technology with African partners. The Kirov Plant in St Petersburg, one of Russia’s largest tractor manufacturers, has offered to train engineers from Ethiopia and other African countries in assembling advanced, new-generation tractors tailored for African conditions. This initiative is part of a broader Russian strategy to modernise agriculture through mechanisation, research, and domestic production, with the aim of making African nations more self-sufficient and resilient in food production.

Ethiopia stands out as a key partner in Russia’s African engagement. The two countries have steadily deepened their economic and diplomatic ties, with cooperation spanning trade, infrastructure, energy, and agriculture. Ethiopia’s inclusion in the BRICS group—a bloc of major emerging economies that includes Brazil, Russia, India, China, South Africa, and several new members—has further elevated the relationship.

Within BRICS, Ethiopia and Russia are pushing for a more multipolar world order and greater South-South cooperation. The partnership is also expected to facilitate increased investment, technology transfer, and policy coordination, particularly in sectors critical to food security and sustainable development.

Russian officials have repeatedly emphasised their commitment to mutually beneficial cooperation with Africa, positioning their country as a reliable supplier of agricultural inputs and expertise. This approach aligns with Africa’s urgent need to boost food production for its rapidly growing population and to address challenges such as land degradation and climate change.

For Ethiopia, the expanding partnership with Russia—now reinforced by BRICS membership—offers access to advanced agricultural technologies, sustainable fertilisers, and new opportunities for trade and investment. Both countries have signaled their intention to deepen collaboration through joint ventures, training programs, and exchange initiatives involving agronomists, engineers, and policy experts.

In a decisive move to tackle the persistent funding crisis facing small and medium-sized enterprises (MSMEs) across Africa, African leaders and financial institutions have launched the African Strategic Investment Alliance (ASEA). Accredited by the African Union, ASEA aims to close the continent’s staggering $330 billion annual financing gap, with a particular focus on youth- and women-led businesses and climate-friendly sectors.

The announcement came during the third African Entrepreneurship Forum, where stakeholders highlighted the severe mismatch between the demand for SME financing and the availability of funds. Despite the presence of over 102 development finance institutions, 600 commercial finance institutions, and 39,000 microfinance providers, only about 7% of the demand for small business financing is currently met. This financial exclusion is widely recognized as a major barrier to poverty reduction and sustainable economic growth.

ASEA’s origins trace back to a memorandum of understanding submitted to the African Union in 2021. Following extensive consultations and revisions by technical committees comprising ministries of finance and central bank governors, the Alliance received official recognition at the 2022 African Union Summit. Spearheaded by AeTrade Group and supported by various stakeholders, ASEA is designed as a special-purpose institution to mobilize “nuanced and risk-reducing investments” that foster domestic resource mobilization.

Eskinder Asfaw (PhD), Vice President of Strategy, Planning, and Transformation at the Commercial Bank of Ethiopia (CBE), underscored the urgent need for such an initiative. “CBE has digitally lent 30 billion Ethiopian birr to over one million farmers and supported 800,000 micro-businesses, but what we’re doing is still not enough,” he said. Eskinder expressed optimism that ASEA could play a “significant role” in channeling capital from charities and development finance institutions (DFIs) to MSMEs.

ASEA plans to structure investments by blending patient capital from charities and DFIs with commercial lending practices. This layered investment approach aims to reduce risks for banks, enabling them to finance high-impact but traditionally high-risk sectors such as youth-led startups and climate-smart agricultural businesses.

The Alliance’s launch marks a pivotal step toward transforming Africa’s entrepreneurial landscape by expanding access to finance, promoting inclusive growth, and supporting climate resilience. As ASEA gains momentum, it is expected to become a vital platform for unlocking capital and accelerating sustainable development across the continent.

Ethiopia is embarking on a significant transformation of its energy sector by liberalizing power generation and promoting competition through Independent Power Producers (IPPs). This strategic shift aims to attract private investment, boost electricity supply, and modernize the country’s power market, according to the Ethiopian Energy Outlook 2025 published jointly by the Ministry of Water and Energy, Ethiopian Electric Power (EEP), Ethiopian Electric Utility (EEU), and the Petroleum and Energy Authority (PEA).

Under the new framework, most new electricity generation projects will be developed and operated by IPPs rather than state-owned entities. Two solar photovoltaic projects—Gad and Weransso—are already slated for tender, with IPPs competing to offer the most cost-effective power purchase agreements (PPAs). Similarly, tenders for wind farms at Aysha and Debre Birhan are planned, signaling a broadening of opportunities for private sector participation.

Initially, IPPs will benefit from adjusted remuneration agreements that guarantee returns, helping to mitigate investment risks. However, as the market matures, Ethiopia plans to transition toward a more competitive system where IPPs sell electricity directly on the market, competing to deliver the lowest prices. This evolution is expected to align Ethiopia’s energy sector with international best practices and stimulate efficiency.

A key milestone in this transition is the anticipated operational launch of the East African Power Pool (EAPP) in 2025. The EAPP will facilitate regional electricity trade, enhancing market liquidity and integration. Until the market reaches sufficient maturity, the EAPP will likely operate alongside existing national systems. While market-based pricing introduces greater risk for investors, it also reduces the financial burden on Ethiopian Electric Power and the government.

Integral to this reform is the development of a dedicated Transmission System Operator (TSO), responsible for managing the power grid and ensuring transparent, impartial system operations. Currently, Ethiopian Electric Power serves as both producer and system operator, a structure that could create conflicts of interest as private generation capacity expands. Establishing an independent TSO will be critical to maintaining fair access and credible dispatch decisions, a model successfully implemented in regions like the European Union.

Ethiopia’s energy reform aligns with broader continental ambitions. The African Union is working toward a single energy market to promote cross-border cooperation and competition, although a timetable for full implementation remains uncertain. Meanwhile, Ethiopia’s reforms echo the EU’s internal market directive, which mandates non-discriminatory competition among producers to foster liquidity and efficiency.

Despite challenges such as inflation, supply chain disruptions, and currency fluctuations, Ethiopia is making strides toward universal electrification and sustainable energy development. The government’s National Electrification Plan 2.0 aims to connect millions of households, with a particular focus on underserved rural areas. Investments in hydropower, wind, solar, and geothermal projects are expected to drive economic growth and position Ethiopia as a regional power hub.