World
Russia and Angola: Cooperating On Trade, Arms Delivery and Natural Resource Exploration
By Kester Kenn Klomegah
Russia is ready to raise its full-fledged bilateral ties and strengthen multifaceted cooperation by signing a series of agreements with Angola, one of Russia’s key partners in the African region, during the meeting scheduled early April between President Vladimir Putin and Angolan counterpart Joao Manuel Goncalves Lourenco in the Kremlin, Moscow.
Putin has expressed his confidence that Joao Lourenco official visit marks a new stage in the development of bilateral relations between the two countries. Putin has had bilateral connectivity with this southern African country, for example, during the leadership of Jose Eduardo Dos Santos who visited in October 2006.
Russia-Angolan relations have been developing actively “on the principles of mutual respect, trust and sincere friendship.” It is worth saying that Russia and Angola successfully cooperate in resolving actual international and regional problems and in ensuring security, law and order in the world.
In July 2018, Vladimir Putin held a meeting with President of Angola Joao Lourenco on the sidelines of the BRICS Summit. “Russia and Angola have longstanding and friendly relations that we greatly treasure. We are actively cooperating in political matters, security, and at international organizations. Our trade is quite modest so far, but in general, we have good projects that can be implemented. Our military and technical cooperation is also developing,” Putin told his Angolan Joao Lourenco.
During the Cold War, Russia always supported the Angolan people and helped achieve what is now treasure most of all: independence. Even after independence, Angola has enjoyed political freedom for 42 years, Russia never turned its back on Angola; it always supported and helped us fight the apartheid regime, which was a threat to Angola and the entire African continent.
“Rest assured that the people of Angola will never forget the friendship between our countries that was forged in battle. Now, we are focused on development. We want our country to develop in all areas. Speaking about economic cooperation, we are counting on interaction with Russia. First of all, Russian enterprises work in our mining complex. But, we would also like Russian businesses to be represented in other industries,” Joao Lourenco, in his turn, told Putin.
Russia plans large-scale economic engagement with Angola. Last year February, during a working meeting between Vladimir Putin and Alrosa CEO Sergei Ivanov in Kremlin, it came out that Russia’s Alrosa plans to develop one of the largest diamond deposits, Luaxe in Angola. “We are currently conducting a feasibility study. We have met with the President of Angola. Everything is on schedule. I am certain it will be a significant asset that will help us maintain our leadership,” according to Sergei Ivanov.
Soon, the truth in his words comes to fruition. In March 2019, Joao Lourenco gave an exclusive interview to a Russian media, Itar-TASS, he outlined some of his plans. The Angolan leader hinted that his country was ready to undertake the building factories to manufacture Russian weapons and military equipment for the African market.
“As for our military and technical cooperation with Russia – it will continue and be deepened. We would like to evolve from our current state of purchasers of Russian military equipment and technologies towards becoming the manufacturers and having an assembly point of Russian military equipment in our country,” he told the news agency.
Russia and Angola have military and technical cooperation. In 2018, Russia agreed to supply arms and military equipment to Angola worth US$2.5 billion, including spare parts for the Soviet-made weaponry, light weapons, ammunition, tanks, artillery and multi-purpose helicopters.
Besides, there are a number of Russia companies interested in Angola. For example, Mazepin’s companies considers an important step building nitrogen fertilizer plant in Angola. Zarubezhneft, an intermediary for the state interests in the field of fuel and energy complex on the international arena, plans to work in the oil and gas industry – from exploration and field construction to the pipeline systems construction and supply of equipment to the oil facilities.
Zarubezhneft has sealed a memorandum of understanding with Angola’s authorities to cooperate when exploring and producing from crude oil fields of that African country. For this purpose, the consortium eyes the Atlantic shelf of Angola, expecting to produce from it in partnership with Angola’s Sonangol and Dark Oil Company, which licenses for the area.
On the other hand, it was also reported in March 2017 that Angola had given two Russian companies the green light to build a major refinery complex and railroad. The US$12bn mega project put forward by companies Rail Standard Service and Fortland Consulting Company, which have set up a consortium with local partners.
Gustavo Plácido Dos Santos, Researcher at the Portuguese Institute of International Relations and Security (IPRIS), wrote recently that Angola has been on the frontline of Russia’s expansion in sub-Saharan Africa. Luanda enjoys strong historical ties with Moscow. Although political ties have failed to translate into deeper commercial interactions, it is worth highlighting Angola’s potential for Russian companies, especially in terms of mineral resources.
According to him, Sub-Saharan Africa is set to produce more gas than Russia by 2040. Thus, the region becomes a viable alternative for the European Union’s aim of diversifying energy sources away from Russia. In this sense, given the geographic proximity, countries such as Nigeria would be in the front line to satisfy Europe’s diversification goals. However, instability in Nigeria and its neighborhood positions Angola — one of Africa’s most stable energy producers — as a viable alternative.
Interesting to recall that back in June 2009, Dmitry Medvedev and Jose Eduardo dos Santos also held bilateral talks. A joint communique issued following the talks sets out the priority areas for developing the partnership between the two countries. The sectors in question include mining, energy, transport, telecommunications, military-technical cooperation, health and education.
Both leaders then witnessed the signing of a number of bilateral agreements, in particular, an intergovernmental agreement on air transport links, an agreement on encouragement and mutual protection of investment, and the medium-term program for economic and trade, science and technology as well as agreements on cooperation in geology and higher professional education.
In addition, there was a contract signed for the building and financing of Angola’s national satellite communications and broadcasting system, AngoSat. Energiya corporation reaffirmed its intention to fulfill the contract that envisions creation of a satellite network for telecommunication and broadcasting in Angola.
This April, some of the large-scale economic and investment projects crystallized in the documents signed covering projects in energy, minerals exploration, and high technology, in particular building a satellite communications system, and that of economic cooperation to a new level. There are the desires and the possibilities, but the need to reflect on setting up new financial mechanisms, according to South African based Senior Analyst on African policy, Kelvin Dewey Stubborn.
In his discussion for this article, Dewey Stubborn acknowledged that there are various forms of cooperation two largest state-owned companies, Zarubezhneft and Sonangol. There are a number of projects to develop and find new hydrocarbon deposits. This is certainly of interest because of very big players in the oil market, but this does not mean that Russians cannot cooperate in this field. Regarding the overall situation, Africa is a continent developing very dynamically, a continent on the rise, and second, Africa today has powerful countries that have chosen their own development paths.
Experts, such as Professors Vladimir Shubin and Alexandra Archangelskaya, Institute for African Studies in Moscow, have also argued that “both Angola and Russia still need to be more strategic in aligning their interests, and more proactive in carving out efficient bilateral instruments and mechanisms in order to promote economic exchanges and reap the benefits of a fully-fledged partnership.”
According to Wikipedia, compared to the Soviet era, trade between Russia and Angola is still minimal. In 2016, exports from Russia to Angola amounted to US$567.9 million and Angolan exports to Russia amounted to just US$14.94.
Angola has diamonds, oil, gold, copper and a rich wildlife, forest and fossil fuels. Since independence, oil and diamonds have been the most important economic resource. The Republic of Angola is a country in south-central Africa, the seventh largest by territorial size and bordered by Namibia to the south, Democratic Republic of Congo to the north and Zambia to the east, and on the west the Pacific Ocean.
Kester Kenn Klomegah writes frequently about Russia, Africa and the BRICS.
World
AXIAN Energy Secures $60m for Expansion Across Africa
By Aduragbemi Omiyale
A financing facility of up to $60 million has been secured by AXIAN Energy, the energy division of the AXIAN Group.
The funding package was provided by MCB, one of the leading financial institutions in the Indian Ocean region.
It comprises a $40 million revolving credit facility with a three-year tenor and extension option, and $20 million in unfunded instruments, providing AXIAN Energy with enhanced financial flexibility, enabling the company to rapidly mobilise resources and seize development opportunities across its target markets.
The energy firm is expected to use the capital to deliver large-scale energy infrastructure projects across Africa.
Over the past two years, AXIAN Energy has significantly accelerated its growth by expanding its renewable energy project pipeline, with solar projects currently under development in Senegal, Benin, Zambia, Côte d’Ivoire, Madagascar, and Burkina Faso.
Building on this momentum, AXIAN Energy now operates a portfolio comprising 350 MW of installed renewable energy capacity, supported by 77 MWh of energy storage capacity, positioning the AXIAN Group as a major contributor to Africa’s energy transition.
The chief executive of AXIAN Energy, Mr Benjamin Memmi, said, “This transaction marks a key milestone in AXIAN Energy’s growth trajectory. It provides us with the financial capacity to sustain the momentum we have built over the past two years, further strengthening our renewable energy portfolio and expanding our presence across new African markets.”
Also commenting, the Global Head of Structured Finance at MCB, Mr Mathieu Delteil, said, “We are proud to support AXIAN Energy in structuring this facility, reaffirming our commitment to enabling transformative projects across Africa.
“By leveraging our sector expertise and deep understanding of regional markets, we have delivered a tailored financing solution that aligns with AXIAN’s long-term renewable energy ambitions.
“This partnership highlights our role as a strategic financial partner, mobilising capital towards investments that drive sustainable growth and accelerate the energy transition across the continent.”
The financing agreement between the two organisations strengthens their long-standing relationship because it is driven by a shared commitment to supporting infrastructure development and economic growth across Africa.
World
S&P Restores Afreximbank to Investment-Grade Status After 12 Years
By Adedapo Adesanya
Credit ratings agency, S&P Global Ratings, has restored the African Export-Import Bank (Afreximbank) to investment grade, nearly 12 years after its last assessment, citing the entity’s countercyclical lending record and strong shareholder support.
The BBB+ rating with a stable outlook is one notch above Moody’s Baa2 and comes months after Afreximbank severed ties with Fitch Ratings.
The lender accused the agency of misjudging its mission, following a downgrade to junk status amid disagreements over the bank’s role in debt restructurings for Ghana and Zambia. Fitch subsequently withdrew its ratings entirely and flagged governance concerns.
S&P said in a statement on Thursday that Afreximbank’s record as a countercyclical lender and its substantial shareholder support served as rationale for its rating. Credit ratings often guide the costs of capital for a borrower.
The lender’s total assets, S&P noted, had expanded to $42.3 billion by the end of 2025, up from $7.1 billion in 2015.
S&P said it did not incorporate preferred creditor status into its assessment because Afreximbank provides almost 80 per cent of its loans to private-sector entities.
However, it acknowledged that Afreximbank, alongside other institutions, had experienced prolonged payment arrears in recent years, notably following the defaults and debt restructurings in Ghana and Zambia.
S&P noted that Afreximbank said in December that it had come to an agreement with Ghana on its $750 million loan, but that the lender had not announced a resolution with Zambia.
The agency warned that further sovereign restructurings could weigh on Afreximbank’s asset quality.
S&P’s assessment described Afreximbank’s governance and management as “adequate”, saying the inclusion of two independent directors and the African Development Bank (AfDB) as a permanent board member provided institutional oversight.
It noted that while increasing participation of private-sector investors through Class D shares could influence the bank’s risk appetite, Class A shareholders retained veto rights over big institutional changes, balancing potential risk.
World
Elon Musk Becomes World’s First Trillionaire as SpaceX Soars in Nasdaq Debut
By Adedapo Adesanya
Mr Elon Musk, the world’s richest man, is now a trillionaire as his SpaceX rose 11 per cent in its Nasdaq debut on Friday, lifting its valuation to about $1.96 trillion as investors piled into the world’s largest initial public offering (IPO).
The stock opened for trading at $150 compared with the IPO price of $135 per share.
The landmark listing cemented Mr Musk’s status as the first trillionaire ever and propelled SpaceX into the ranks of the world’s most valuable companies
The listing is being used as a benchmark of what is to come for the market ahead of forthcoming IPOs for AI heavyweights Anthropic and OpenAI.
The record IPO is a culmination of Mr Musk’s long-held ambitions in space and technology.
Most of Musk’s wealth now rests with SpaceX, where he holds a stake worth roughly $866 billion. Along with Tesla and the rest of his properties, his net worth will exceed $1.1 trillion when the stock begins trading on Friday.
At a quoted $75 billion, the deal’s proceeds were more than double those of Saudi Aramco’s record-setting 2019 IPO.
The valuation could rise further should underwriters exercise their right to sell additional shares, a decision typically made within 30 days after the offering.
Although SpaceX may have to wait for entry into the S&P 500, its expected fast-track inclusion in the Nasdaq 100 will soon make it a major holding for passive funds and ETFs that track the index, creating a fresh source of demand for its shares.
It will take about a month before it gets added to that index under Nasdaq’s new fast-entry rules, as opposed to a typical wait of as much as a year.
SpaceX said its market opportunity spans $28.5 trillion, a figure it called the largest in human history.
Mr Musk, 54, was born in Pretoria, South Africa, to a Canadian mother and South African father. He attended the University of Pennsylvania, graduating in 1997.
He took over as Tesla’s CEO in 2008. Beyond Tesla and SpaceX, Mr Musk has co-founded five other companies, including tunnelling startup The Boring Company and brain implant maker Neuralink.
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