The Russian industry is in a terrible condition. Moscow reaches out to Africa for help

The situation is critical for weaker players, while for large chains it is “painful”, although not catastrophic – notes Maria Gerasimenko, founder of the consulting company Fashion Advisers: the market is “transitioning from a growth model” to a “survival model”, and the strongest will survive.

Last year, 28 fashion brands were closed in Russia, of which 23 were Russian, according to Yevgenia Chakerdieva, regional director of retail real estate at NF Group. By the end of the first quarter of 2026, For the first time in many years, not a single new clothing brand entered the country.

Sales are falling due to the savings of Russians, who refresh their wardrobes less often, choose more universal styles and are generally more cautious about unnecessary purchases. – noted Anna Lebsak-Kleimans, CEO of Fashion Consulting Group. According to OFD Platform, purchases of clothing, footwear and accessories dropped by 11% last year, and traffic in clothing stores in shopping centers dropped by 6%.

Of the approximately 1,000 shopping centers in Russia, 80 percent saw a decline in turnover, and every fifth reported a decline of more than 20%. — 2025 was a difficult year for the retail sector: a significant slowdown in demand, austerity measures, customers' shift to discount stores, high interest rates and rising costs had a significant impact on the industry, notes PSB analyst Laura Kuznetsova.

Moscow reaches out to Africa for help

The Wildberries trading platform now includes leather goods, clothing, accessories, home furnishings, as well as “natural cosmetics” from Ethiopia, said the company's founder, Tatiana Kim, quoted by the TASS agency. She is convinced that these goods “will be in great demand among Russian customers.”

Kim also called on Russian companies to enter the Ethiopian market, calling it the fastest-growing market in East Africa. She emphasized that the country has “great potential” for the development of e-commerce, and its population (over 138 million people) is comparable in number to Russia's, but at the same time much younger.

Cheap clothing from Africa may be the solution for many stores in Russia that need to reduce textile prices to survive.

Moscow smiles at Ethiopia. Long-term partnership plan

— In 2025, trade turnover between Russia and Ethiopia almost tripled compared to the previous year, exceeding $435 million. said Ambassador Yevgeny Terekhin. He noted that Moscow is increasing supplies of fertilizers, agricultural machinery and energy equipment, and Addis Ababa is increasing supplies of coffee, flowers, oilseeds and legumes.

Meanwhile, Ethiopia is one of the poorest countries in the world. The average salary there is approximately USD 60, and the GDP per capita is USD 994, which is 90 times less than in the USA and 17 times less than in Russia. Since 2024, Ethiopia has been a member of BRICS.

At the end of 2025, Ethiopia's sovereign fund, Ethiopian Investment Holdings, signed a memorandum of understanding with Rusal to build an aluminum smelter. The plant's annual production is expected to be 500,000. tons, and the operating period is 50 years.

This will enable Ethiopia to become a competitive supplier of aluminum in both the regional and global markets — noted in the fund. The construction of the steelworks is expected to last 3-4 years. The first stage is worth approximately USD 1 billion. will remain 70 percent financed by loans.

In turn, Rosatom plans to build a nuclear power plant in Ethiopia.

President Vladimir Putin described Ethiopia as Russia's “long-standing and trusted partner” in Africa, emphasizing that diplomatic relations between the countries were established as early as 1898. In 2001, Putin allowed Ethiopia to default on $4.8 billion. debt, and in 2005 it canceled another $1.1 billion. The remaining amount – USD 163.6 million. — Ethiopia has been given the right to repay by 2035.