World
Russian Grain Politics And Africa’s Import-Dependency Syndrome
By Kestér Kenn Klomegâh
Despite its sudden exit from the United Nations-brokered agreement that allowed Ukraine to export grains, Moscow says it will continue to consolidate efforts and deliver its grains uninterruptedly to the world markets. With most African countries in need, Moscow offered its assurances and would further negotiate agreements at the forthcoming summit in St. Petersburg.
At the media briefing, the Russian Foreign Ministry also offered similar assurances on the African leaders’ gathering. African countries will receive Moscow’s assurances concerning food supplies at the Russia-Africa summit, which will be held in St. Petersburg, Deputy Foreign Minister Sergei Vershinin said.
“The countries in need will definitely receive the necessary assurances in their contacts with us and during the upcoming Russia-Africa summit regarding their need for agricultural products, primarily grain,” Vershinin. Russia understands concerns that its African partners might have, he said, “But I’d like to say that these concerns are not only understandable but will also be fully taken into account.”
A group of African countries led by South Africa have put forward a peace initiative to resolve the Ukrainian conflict. Meanwhile, Russia’s influence on the social and economic situation in African countries has increased in line with rising prices for food, fertilizer and energy.
Another source also indicated that the participants of the Russia-Africa Summit do not plan on making a separate statement on the situation in Ukraine, although the ongoing conflict will be discussed on the forum’s sidelines. However, a separate statement on this issue should not be expected, except there will be a general declaration dedicated to the positive bilateral agenda and a document relating to the global geopolitical situation.
At different occasions, Russian President Vladimir Putin has unreservedly stressed that “Russia is reliably fulfilling all its obligations pertaining to the supply of food, fertilisers, fuel and other products that are critically important to the countries of Africa, and ready to ensure their food security.”
On July 17, Russia rejected a further extension of the Black Sea Grain Initiative, or so-called grain deal, an agreement initially concluded in Istanbul in July 2022 to ensure the safe export of Ukrainian grain and foodstuffs through humanitarian corridors in the Black Sea. Moscow said, however, that it may consider returning to the Istanbul initiative if the provisions of the deal allowing for exports of Russian agricultural products to world markets can be duly implemented.
The international community denounced Moscow’s decision, while Turkey, which had brokered the Black Sea Grain Initiative jointly with the United Nations, expressed hope that the deal could be reanimated. Although upbeat statements by Turkish President Recep Tayyip Erdogan failed to prevent grain prices from soaring on major commodity exchanges, experts claimed that “the price increase was largely speculative.”
Some media reports have indicated that Putin’s latest economic assault on the West is fueling fears of a global food crisis. Business Insider’s George Glover wrote that Russia has started bombing Ukrainian ports and threatened to attack ships, and these actions have pushed prices soaring and sparked fears of a global food crisis.
When international grain prices rise, it becomes more expensive for poorer countries to import those commodities – so Russia’s withdrawal from the UN’s initiative has fueled policymakers’ fears that there could be a worldwide food crisis. Since Russia invaded Ukraine in February 2022, Putin has tried to squeeze commodity supplies in a bid to disrupt the global economy and hinder Kyiv’s Western allies.
UN Secretary-General António Guterres said the Kremlin’s decision to pull out of the grain deal would end “a lifeline for global food security” and extinguish “a beacon of hope”, while the European Union’s head of foreign policy Josep Borrell told journalists there could be a “big and huge food crisis in the world”.
The International Monetary Fund (IMF) says Russia’s exit from Ukraine’s grain deal risks adding to global food inflation. An IMF spokesperson said the global lender would continue to carefully monitor ongoing developments in the region and their impact on global food insecurity.
“The discontinuation of the initiative impacts the food supply to countries that rely heavily on shipments from Ukraine, in particular in North Africa, the Middle East, and South Asia,” the fund said. “It worsens the food security outlook and risks adding to global food inflation, especially for low-income countries.”
Several Group of 20 members this week condemned Russia’s move to quit the United Nations-brokered Black Sea grain deal over what it called a failure to meet its demands to implement a parallel agreement easing rules for its own food and fertilizer exports.
Local Russian financial daily newspaper Kommersant reported on July 24 that despite the termination of the grain deal, where there are indications that Kyiv, Ankara and the West remain committed to resuming shipments of Ukrainian agricultural products across the Black Sea.
Ukrainian President Vladimir Zelensky has called an emergency meeting of the newly formed NATO-Ukraine Council, which allies have touted as an alternative to admitting the country into the alliance. For now, however, the West seems to be placing more hope in Turkish President Recep Tayyip Erdogan’s ability to find convincing arguments in dialogue with Moscow.
The proposal to engage a third-party country to escort commercial ships across the Black Sea has been raised several times since Russia’s withdrawal from the Istanbul agreements, but no side has taken it up because all stakeholders see such a scenario as entailing a potentially serious risk of escalation.
According to the Financial Times, Washington is attempting to persuade its African partners to condemn Russia’s withdrawal from the grain deal. For its part, Russia is not sitting idle and says that Moscow understands “the concerns that may arise among our African friends” and is proposing to provide free food supplies to the continent, but continues to insist that the initial Russia-related provisions of the Black Sea Grain Initiative must be implemented before there can be any return to the deal, Russian Deputy Foreign Minister Sergey Vershinin noted.
These past several days, the current questions discussed most by both the Russian and foreign media were related to Russia’s threats to block Black Sea shipping, no Putin at the BRICS summit in Johannesburg, and that the Western and European sanctions were insufficient.
The European Union, the United Kingdom, Australia, the United States, and Canada simultaneously expanded sanctions against Russian individuals and legal entities. But as Russia continues to attack Ukraine with missiles and drones, the existing sanctions are clearly not enough to hinder its weapons production, Ukrainian President Volodymyr Zelenskyy said in his evening address on July 18.
Russia has started blocking Ukraine’s seaports. The recent Russian missile strike targeting Chornomorsk, Odesa Oblast’s port infrastructure, has destroyed 60,000 tons of grains. Russia’s Defense Ministry has designated all ships bound for Ukrainian ports in the Black Sea as “potential carriers of military cargo,” Russian news agency RIA Novosti reported on July 19.
Russia’s air attack against Odesa highlights the country’s attitude towards food security, African nations, the UN and global hunger, Mykhailo Podolyak, an adviser to the head of the Office of the President of Ukraine, tweeted on July 19.
The termination of the deal would affect a number of countries in the Middle East, North Africa and Southeast Asia. Due to the limited transport capacity and infrastructure in Central and Eastern Europe, a significant part of the land export of grain from Ukraine may get stuck in transit countries, which have local producers of this agricultural product.
The Black Sea agreement has helped keep benchmark foodstuff prices under control by boosting supply to world markets. On July 17, Russia officially withdrew from the grain agreement after an attack at the Crimean Bridge. In addition, Moscow withdrew guarantees of navigation safety in the Black Sea. The UN-brokered Black Sea grain deal expired on July 18.
By Kestér Kenn Klomegâh
After the expiration of bilateral agreement on trade, the US Congress as well as African leaders, highly recognizing its significance, has been pursuing the extension of the African Growth and Opportunity Act (AGOA). The agreement, which allows duty-free access to American markets for African exporters, expired on September 30, 2025.
The US Congress is advancing a bill to revive and extend AGOA, but South Africa’s continued inclusion remains uncertain. The trade pact still has strong bipartisan support, with the House Ways and Means Committee approving it 37-3. However, US Trade Representative, Jamieson Greer, raised concerns about South Africa, citing tariffs and non-tariff barriers, and said the administration could consider excluding the country.
This threat puts at risk the duty-free access that has significantly benefited South African automotive, agricultural, and wine exports. The debate highlights how trade policy is becoming entangled with broader diplomatic tensions, casting uncertainty over a key pillar of US-Africa economic relations.
Nevertheless, South Africa continues to lobby for inclusion. South Africa trade summary records show that the US goods and services trade with South Africa estimated at $26.2 billion in 2024. The US and South Africa signed a Trade and Investment Framework Agreement (TIFA) as far back as in 2012.
The duty-free access for nearly 40 African countries has boosted development and fostered more equitable and sustainable growth in Africa. By design AGOA is a useful mechanism for improving accessibility to trade competitiveness, connectivity, and productivity. During these past 25 years, AGOA has been the cornerstone of US economic engagement with the countries of sub-Saharan Africa.
Key features and benefits of AGOA:
It’s worth reiterating here that during these past several years, AGOA has been the cornerstone of US economic engagement with the countries of sub-Saharan Africa. In this case, as AGOA is closely working with the African Continental Free Trade Area (AfCFTA) Secretariat and with the African Union (AU), trade professionals could primarily leverage various economic sectors and unwaveringly act as bridges between the United States and Africa.
* Duty-free Access: AGOA allows eligible products from sub-Saharan African countries to enter the US market without paying tariffs.
* Promotion of Economic Growth: The program encourages economic growth by providing incentives for African countries to open their economies and build free markets.
* Encouraging Economic Reforms: AGOA encourages economic and political reforms in eligible countries, including the rule of law and market-oriented policies.
* Increased Trade and Investment: The program aims to strengthen trade and investment ties between the United States and sub-Saharan Africa.
With the changing times, Africa is also building its muscles towards a new direction since the introduction of the African Continental Free Trade Area (AfCFTA), which was officially launched in July 2019.
In practical terms, trading under the AfCFTA commenced in January 2021. And the United States has prioritized the AfCFTA as one mechanism through which to strengthen its long-term relations with the continent. In the context of the crucial geopolitical changes, African leaders, corporate executives, and the entire business community are optimistic over the extension of AGOA, for mutually beneficial trade partnerships with the United States.
Worthy to say that AGOA, to a considerable degree, as a significant trade policy has played a crucial role in promoting economic growth and development in sub-Saharan Africa.
By Kestér Kenn Klomegâh
Africa stands at the cusp of a transformative digital revolution. With the expansion of mobile connectivity, internet penetration, digital platforms, and financial technology, the continent’s digital economy is poised to become a significant driver of sustainable development, intra-Africa trade, job creation, and economic inclusion.
The African Union’s Agenda 2063, particularly Aspiration 1 (a prosperous Africa based on inclusive growth and sustainable development), highlights the importance of leveraging technology and innovation. The implementation of the African Continental Free Trade Area (AfCFTA) has opened a new chapter in market integration, creating opportunities to unlock the full potential of the digital economy across all sectors.
Despite remarkable progress, challenges persist. These include limited digital infrastructure, disparities in digital literacy, fragmented regulatory frameworks, inadequate access to financing for tech-based enterprises, and gender gaps in digital participation. Moreover, Africa must assert its digital sovereignty, build local data ecosystems, and secure cyber-infrastructure to thrive in a rapidly changing global digital landscape.
Against this backdrop, the 16th African Union Private Sector Forum provides a timely platform to explore and shape actionable strategies for harnessing Africa’s digital economy to accelerate intra-Africa trade and sustainable development.
The 16th High-Level AU Private Sector forum is set to take place in Djibouti, from the 14 to 16 December 2025, under the theme “Harnessing Africa’s Digital Economy and Innovation for Accelerating Intra-Africa Trade and Sustainable Development”
The three-day Forum will feature high-level plenaries, expert panels, breakout sessions, and networking opportunities. Each day will spotlight a core pillar of Africa’s digital transformation journey.
Day 1: Digital Economy and Trade Integration in Africa
Focus: Leveraging digital platforms and technologies to enhance trade integration and competitiveness under AfCFTA.
Day 2: Innovation, Fintech, and the Future of African Economies
Focus: Driving economic inclusion through fintech, innovation ecosystems, and youth entrepreneurship.
Day 3: Building Policy, Regulatory Frameworks, and Partnerships for Digital Growth
Focus: Creating an enabling environment for digital innovation and infrastructure through effective policy, governance, and partnerships.
To foster strategic dialogue and action-oriented collaboration among key stakeholders in Africa’s digital ecosystem, with the goal of leveraging digital economy and innovation to boost intra-Africa trade, accelerate economic transformation, and support inclusive, sustainable development.
* Promote Digital Trade: Identify mechanisms and policy actions to enable seamless cross-border digital commerce and integration under AfCFTA.
* Foster Innovation and Fintech: Advance inclusive fintech ecosystems and support innovation-driven entrepreneurship, especially among youth and women.
* Policy and Regulatory Harmonization: Build consensus on regional and continental digital regulatory frameworks to foster trust, security, and interoperability.
* Encourage Investment and Public-Private Partnerships: Strengthen collaboration between governments, private sector, and development partners to invest in digital infrastructure, R&D, and skills development.
* Advance Digital Inclusion and Sustainability: Ensure that digital transformation contributes to environmental sustainability and the empowerment of marginalized communities.
The AU Private Sector Forum has held several forums, with key recommendations. These recommendations provide valuable insights into the challenges and opportunities facing the African private sector and offer guidance for policymakers on how to support its growth and development.
By Kestér Kenn Klomegâh
Lukoil, Russia’s energy giant, has seriously lost its grounds across Africa, due to United States sanctions. Sanctions have complicated the company’s potential continuity in operating its largest oil field projects, grappling its investment particularly in Republic of Ghana, Democratic Republic of Congo, and Federal Republic of Nigeria.
Reports indicated the sanctions are further dismantling most of Lukoil’s operations, causing significant staff layoffs in its offices worldwide. For instance, Lukoil’s significant upstream operations in the Middle East include a 75% stake in Iraq’s West Qurna 2 oilfield and a 60% stake in Iraq’s Block 10 development. In Egypt, the company holds stakes in various oilfields alongside local partners.
Lukoil has until December 13, 2025, to negotiate the sale of most of its international assets, including those in Asia, Africa and Latin America. It has already terminated several important agreements that were signed with international partners due to difficulties in circumventing the sanctions.
Reports said calculated efforts to diversify exploration business relations is turning extremely complex, and current at the cross-roads, Lukoil will have to ultimately give up existing contracts and agreements it had signed with external countries.
Lukoil’s website reports also pointed to reasons for abandoning oil and gas exploration and drilling project that it began in Sierra Leone. According to those reports, Lukoil could withdraw from almost all of the projects in West Africa.
In addition to geopolitical sanctions, technical and geographical hitches, Lukoil noted on its website, an additional obstacles that “the African leadership and government policies always pose serious problems to operations in the region.” Similarly, the Kremlin-controlled Rosneft abandoned its interest in the southern Africa oil pipeline construction, negatively impacted on Angola, Mozambique, South Africa and Zimbabwe.
United States sanctions has hit Lukoil, one of the Russia’s biggest oil companies, like many other Russian companies, that has had a long history shuttling forth and back with declaration of business intentions or mere interests in tapping into oil and gas resources in Africa.
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