World
Funding Africa’s Infrastructure Gap
Key to enabling African economies to make the most of their opportunities is developing infrastructure in the region. Across the continent, new laws are being implemented and alternative sources of infrastructure funding are being sought in order to kick-start direly needed infrastructure projects. At the centre of it all is China, which is providing alternative sources financing to countries in Africa that have not been able to access funding in more traditional ways. The benefits are numerous, but African countries are also concerned about their growing dependence on China.
Research released in 2018 from Baker McKenzie and IJGlobal (research) with data drawn exclusively from fully financed projects and excluding recent announcements of government funding commitments, shows that the value of loans from Chinese financing of energy and infrastructure projects in Africa almost trebled between 2016 and 2017, from $3 billion to $8.8 billion..
“As China’s Belt and Road Initiative (BRI), a multi-billion dollar plan to link Asia, Europe and Africa, is actively being implemented, we expect this amount will increase even further in the coming years,” says Wildu du Plessis, Head of Banking & Finance at Baker McKenzie in Johannesburg.
According to the research, Chinese banks have been active lenders to infrastructure projects in 19 different countries in Africa in the past four years. Infrastructure projects in Ethiopia have received $1,8 billion since 2014, Kenyan projects $4,8 billion, Mozambique infra deals $1,6 billion and Nigerian projects $5 billion from Chinese lenders. South African infrastructure projects have received $2.2 billion from Chinese lenders since 2014, Zambia has received $1.5 billion and Zimbabwe has seen $1.3 billion in loans from Chinese policy lenders since 2014.
As one of South Africa’s largest trading partners, China plays an important role in infrastructure investment in this country too. At the BRICS Summit Energy in 2018, China pledged to invest USD 14.7bn in South Africa and to grant loans to state owned enterprises Eskom and Transnet.
Du Plessis notes that even though the South African infrastructure funding gap is not as severe as other countries in Africa, there is a still difficulty in mobilising funds for infrastructure development and related projects because traditional funders take time to decide on whether to get involved.
Stanley Jia, Partner in the Beijing Office of Baker McKenzie, notes, “As part of the mobilisation of different sources of funding to fill the infrastructure gap, there is a big bucket of Chinese funding that can be used for infrastructure projects in Africa. The increasing appetite from China for funding infrastructure projects as part of its BRI means they are happy to partner with local development finance institutions and other international funders.”
According to Kieran Whyte, Head of Energy, Mining & Infrastructure at Baker McKenzie in Johannesburg, “A big attraction of the BRI for both African governments and project sponsors is that it assists the speed of project implementation. Project stakeholders advise that the whole process is a lot quicker than other options.”
Jia notes that, “Chinese policy lenders also assist in providing liquidity in that they are willing to negotiate with countries that have financial constraints that deny them access to traditional capital.”
Du Plessis notes, however, that there is rising concern amongst African sovereigns who are worried about the long term effects on their dependence on China.
“This is even though China has reiterated that it wants to be considered a responsible investor in Africa. It remains to be seen whether this concern has an impact on Chinse involvement in the funding infrastructure projects in future years. African countries have also begun building capacity to correct the imbalance between borrowers and lenders in the negotiation phase so that more balanced agreements can be reached,” he explains.
Senegal and Côte d’Ivoire
Khaled Abou El Houda, Managing Partner of Houda Law Firm in Senegal and Côte d’Ivoire, notes, “Senegal became a BRI partner with China after the two countries signed bilateral deals during Chinese President Xi Jinping’s West Africa trip in late July 2018.
“In addition to plans for improving infrastructure in Senegal, China promised to support the country with anti-terror, peacekeeping and maintaining social stability. However, while the BRI has provided many opportunities for development, the general consensus is the China-Africa relationship could be placed on more equal footing. The challenge for Africa is in establishing where its interests converge with China’s, where they diverge, and how areas of convergence can be shaped to advance African development priorities,” he says.
Houda explains that in order to help fund the infrastructure gap, the Senegalese government adopted the Plan Senegal Emergent (PSE) in 2014, with the overall aim of boosting the economy.
“We saw encouraging signs of 6.8% real GDP growth one year after the PSE’s implementation and it has maintained more than 6% growth in subsequent years. Building on this success, the government is continuing its PSE implementation and related reforms, targeting sectors such as energy, transport infrastructure and agriculture.”
Zimbabwe
In Zimbabwe, Thomas Chagudumba, of Atherstone & Cook notes that the infrastructure funding gap is being addressed in various ways. Funding comes through government floating infrastructure bonds, Public Private Partnerships (PPPs) and off-budget loan funding. Khumalo notes that policy consistency, particularly in respect of currency convertibility, exchange control regulations on repatriation of funds and improved transparency and accountability are all essential to encourage infrastructure funding in Zimbabwe. Further, he explains that it is important to ring fence resources, including foreign currency, for critical inputs in support of ongoing works. This can be done via undertakings from the Reserve Bank of Zimbabwe and government guarantees. Construction and performance bonds could also be used to curb poor project implementation, mismanagement and corruption in the infrastructure sector.
Chagudumba notes that Zimbabwe has also benefited from the BRI with major projects in Zimbabwe including the Kariba South Hydro Power Station and the Victoria Falls International Airport.
“For Zimbabwe, the benefits of the BRI include that it aids in infrastructure development, which in turn benefits economic expansion. The transfer of information and expertise and employment creation are further benefits.”
Mauritius
Mauritius does not have a large infrastructure funding gap as compared to other jurisdictions in Africa, explains Moorari Gujadhur, a barrister at Madun Gujadhur Chambers in Mauritius. “Infrastructure projects in Mauritius tend to focus on either improving current infrastructure (ie large grid separated flyovers) or to introduce new projects (ie light rail transport). These tend to be government to government,” he says.
He explains, “India has provided Mauritius with a grant and loan to fund the development of a light rail transport project, whilst China is making investments in the ports. The new Mauritian airport terminal was entirely funded by China.”
Ethiopia
In Ethiopia meanwhile, bridging the infrastructure gap is more complicated. Mehrteab Leul, Principal of Mehrteab Leul & Associates Law Office in Ethiopia, explains, “In February this year, Ethiopia enacted a new proclamation facilitating PPPs called the Public-Private Partnership Proclamation. According to the proclamation, it is within the powers of the PPP Board to approve PPP projects as well as instruct public bodies/enterprises to carry out a certain project as a PPP.
“According to the policy document, one of the main objectives for PPP projects is to increase the financial resources available for the development of infrastructure services in Ethiopia. All of the 17 recently approved under the PSE centre around the delivery of infrastructure services,” he notes.
Leul says that China and Italy are the prime role players infrastructure investment in Ethiopia. They have made a significant impact on the sector including via developing electricity generation capacity, supplying drinking water in urban and rural areas, developing road infrastructure and building hospitals and other infrastructure investments.
“Since 1957 the Italian contractor Salini Impregilo has completed 20 major projects in Ethiopia, worth a total of €9 billion. Chinese infrastructure investment in Ethiopia totalled $4.7 billion between 2009 and 2012.”
Leul says that in terms of the BRI, a strong win- in situation has developed for both China and Ethiopia.
“In particular, the country has benefited from infrastructure development funding, as well as technological transformation from China to Ethiopia and job creation. In general, it will enable both countries to optimize the benefits from the global market. The Addis Ababa-Djibouti Railway project is a working example of benefits of the BRI,” he says.
Leul cautioned however, that the BRI, “might leave the country open to the risk of troubled debt pressure and increasing dependence on China.”
Tunisia
Omar Besbes of United Advisers in Tunisia notes that all North African countries have signed the Belt and Road Initiative with China. However, the benefits received from this initiative are divergent. While in Tunisia it is only focused on studies of infrastructure projects so far, in Algeria and Morocco some infrastructure projects are already implemented such as seaports and desalination plants.
For North African in countries, the benefits of the BRI are that it allows recipient countries to not have to depend on traditional donors, and gives them the opportunity to benefit from China’s growth. Besbes says that countries other than China that have played a substantial role in infrastructure investment in North Africa include the European Union, Japan France and Germany. As a result on their funding, roads, bridges, ports, airports, electricity production stations and desalination plants have been built in the region.
World
Today’s Generation of Entrepreneurs Value Flexibility, Autonomy—McNeal-Weary
By Kestér Kenn Klomegâh
The Young African Leaders Initiative (YALI) is the United States’ signature step to invest in the next generation of African leaders. Since its establishment in 2010 by Obama administration, YALI has offered diverse opportunities, including academic training in leadership, governance skills, organizational development and entrepreneurship, and has connected with thousands of young leaders across Africa. This United States’ policy collaboration benefits both America and Africa by creating stronger partnerships, enhancing mutual prosperity, and ensuring a more stable environment.
In our conversation, Tonya McNeal-Weary, Managing Director at IBS Global Consulting, Inc., Global Headquarters in Detroit, Michigan, has endeavored to discuss, thoroughly, today’s generation of entrepreneurs and also building partnerships as a foundation for driving positive change and innovation in the global marketplace. Here are the excerpts of her conversation:
How would you describe today’s generation of entrepreneurs?
I would describe today’s generation of entrepreneurs as having a digital-first mindset and a fundamental belief that business success and social impact can coexist. Unlike the entrepreneurs before them, they’ve grown up with the internet as a given, enabling them to build global businesses from their laptops and think beyond geographic constraints from day one. They value flexibility and autonomy, often rejecting traditional corporate ladders in favor of building something meaningful on their own terms, even if it means embracing uncertainty and financial risk that previous generations might have avoided.
And those representing the Young African Leaders Initiative, who attended your webinar presentation late January 2026?
The entrepreneurs representing the Young African Leaders Initiative are redefining entrepreneurship on the continent by leveraging their unique perspectives, cultural heritage, and experiences. Their ability to innovate within local contexts while connecting to global opportunities exemplifies how the new wave of entrepreneurs is not confined by geography or conventional expectations.
What were the main issues that formed your ‘lecture’ with them, Young African Leaders Initiative?
The main issues that formed my lecture for the Young African Leaders Initiative were driven by understanding the importance of building successful partnerships when expanding into the United States or any foreign market. During my lecture, I emphasized that forming strategic alliances can help entrepreneurs navigate unfamiliar business environments, access new resources, and foster long-term growth. By understanding how to establish strong and effective partnerships, emerging leaders can position their businesses for sustainable success in global markets. I also discussed the critical factors that contribute to successful partnerships, such as establishing clear communication channels, aligning on shared goals, and cultivating trust between all parties involved. Entrepreneurs must be proactive in seeking out partners who complement their strengths and fill gaps in expertise or resources. It is equally important to conduct thorough due diligence to ensure that potential collaborators share similar values and ethical standards. Ultimately, the seminar aimed to empower YALI entrepreneurs with practical insights and actionable strategies for forging meaningful connections across borders. Building successful partnerships is not only a pathway to business growth but also a foundation for driving positive change and innovation in the global marketplace.
What makes a ‘leader’ today, particularly, in the context of the emerging global business architecture?
In my opinion, a leader in today’s emerging global business architecture must navigate complexity and ambiguity with a fundamentally different skill set than what was previously required. Where traditional leadership emphasized command-and-control and singular vision, contemporary leaders succeed through adaptive thinking and collaborative influence across decentralized networks. Furthermore, emotional intelligence has evolved from a soft skill to a strategic imperative. Today, the effective modern leader must possess deep cross-cultural intelligence, understanding that global business is no longer about exporting one model worldwide but about genuinely integrating diverse perspectives and adapting to local contexts while maintaining coherent values.
Does multinational culture play in its (leadership) formation?
I believe multinational culture plays a profound and arguably essential role in forming the kind of leadership required in today’s global business environment. Leaders who have lived, worked, or deeply engaged across multiple cultural contexts develop a cognitive flexibility that’s difficult to replicate through reading or training alone. More importantly, multinational exposure tends to dismantle the unconscious certainty that one’s own way of doing things is inherently “normal” or “best.” Leaders shaped in multicultural environments often develop a productive discomfort with absolutes; they become more adept at asking questions, seeking input, and recognizing blind spots. This humility and curiosity become strategic assets when building global teams, entering new markets, or navigating geopolitical complexity. However, it’s worth noting that multinational experience alone doesn’t automatically create great leaders. What matters is the depth and quality of cross-cultural engagement, not just the passport stamps. The formation of global leadership is less about where someone has been and more about whether they’ve developed the capacity to see beyond their own cultural lens and genuinely value differences as a source of insight rather than merely tolerating them as an obstacle to overcome.
In the context of heightening geopolitical situation, and with Africa, what would you say, in terms of, people-to-people interaction?
People-to-people interaction is critically important in the African business context, particularly as geopolitical competition intensifies on the continent. In this crowded and often transactional landscape, the depth and authenticity of human relationships can determine whether a business venture succeeds or fails. I spoke on this during my presentation. When business leaders take the time for face-to-face meetings, invest in understanding local priorities rather than imposing external agendas, and build relationships beyond the immediate transaction, they signal a different kind of partnership. The heightened geopolitical situation actually makes this human dimension more vital, not less. As competition increases and narratives clash about whose model of development is best, the businesses and nations that succeed in Africa will likely be those that invest in relationships characterized by reciprocity, respect, and long-term commitment rather than those pursuing quick wins.
How important is it for creating public perception and approach to today’s business?
Interaction between individuals is crucial for shaping public perception, as it influences views in ways that formal communications cannot. We live in a society where word-of-mouth, community networks, and social trust areincredibly important. As a result, a business leader’s behavior in personal interactions, their respect for local customs, their willingness to listen, and their follow-through on commitments have a far-reaching impact that extends well beyond the immediate meeting. The geopolitical dimension amplifies this importance because African nations now have choices. They’re no longer dependent on any single partner and can compare approaches to business.
From the above discussions, how would you describe global business in relation to Africa? Is it directed at creating diverse import dependency?
While it would be too simplistic to say global business is uniformly directed at creating import dependency, the structural patterns that have emerged often produce exactly that outcome, whether by design or as a consequence of how global capital seeks returns. Global financial institutions and trade agreements have historically encouraged African nations to focus on their “comparative advantages” in primary commodities rather than industrial development. The critical question is whether global business can engage with Africa in ways that build productive capacity, transfer technology, develop local talent, and enable countries to manufacture for themselves and for export—or whether the economic incentives and power irregularities make this structurally unlikely without deliberate policy intervention.
World
Russia Expands Military-Technical Cooperation With African Partners
By Kestér Kenn Klomegâh
Despite geopolitical complexities, tensions and pressure, Russia’s military arms and weaponry sales earned approximately $15 billion at the closure of 2025, according to Kremlin report. At the regular session, chaired by Russian President Vladimir Putin on Jan. 30, the Commission on Military and Technical Cooperation with Foreign Countries analyzed the results of its work for 2025, and defined plans for the future.
It was noted that the system of military-technical cooperation continued to operate in difficult conditions, and with increased pressure from the Western countries to block business relations with Russia. The meeting, however, admitted that export contracts have generally performed sustainably. Russian military products were exported to more than 30 countries last year, and the amount of foreign exchange exceeded $15 billion.
Such results provide an additional opportunity to direct funds to the modernization of OPC enterprises, to the expansion of their production capacities, and to advanced research. It is also important that at these enterprises a significant volume of products is civilian products.
The Russian system of military-technical cooperation has not only demonstrated effectiveness and high resilience, but has created fundamental structures, which allow to significantly expand the “geography” of supplies of products of military purpose and, thus strengthen the position of Russia’s leader and employer advanced weapons systems – proven, tested in real combat conditions.
Thanks to the employees of the Federal Service for Military Technical Cooperation and Rosoboronexport, the staff of OPC enterprises for their good faith. Within the framework of the new federal project “Development of military-technical cooperation of Russia with foreign countries” for the period 2026-2028, additional measures of support are introduced. Further effective use of existing financial and other support mechanisms and instruments is extremely important because the volumes of military exports in accordance with the 2026 plan.
Special attention would be paid to the expansion of military-technological cooperation and partnerships, with 14 states already implementing or in development more than 340 such projects.
Future plans will allow to improve the characteristics of existing weapons and equipment and to develop new promising models, including those in demand on global markets, among other issues – the development of strategic areas of military-technical cooperation, and above all, with partners on the CIS and the CSTO. This is one of the priority tasks to strengthen both bilateral and multilateral relations, ensuring stability and security in Eurasia.
From January 2026, Russia chairs the CSTO, and this requires working systematically with partners, including comprehensive approaches to expanding military-technical relations. New prospects open up for deepening military-technical cooperation and with countries in other regions, including with states on the African continent. Russia has been historically strong and trusting relationships with African countries. In different years even the USSR, and then Russia supplied African countries with a significant amount of weapons and military equipment, trained specialists on their production, operation, repair, as well as military personnel.
Today, despite pressure from the West, African partners express readiness to expand relations with Russia in the military and military-technical fields. It is not only about increasing supplies of Russian military exports, but also about the purchase of other weapons, other materials and products. Russia has undertaken comprehensive maintenance of previously delivered equipment, organization of licensed production of Russian military products and some other important issues. In general, African countries are sufficient for consideration today.
World
Trump Picks Kevin Warsh to Succeed Jerome Powell as Federal Reserve Chair
By Adedapo Adesanya
President Donald Trump has named Mr Kevin Warsh as the successor to Mr Jerome Powell as the Federal Reserve chair, ending a prolonged odyssey that has seen unprecedented turmoil around the central bank.
The decision culminates a process that officially began last summer but started much earlier than that, with President Trump launching a criticism against the Powell-led US central bank almost since he took the job in 2018.
“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Mr Trump said in a Truth Social post announcing the selection.
US analysts noted that the 55-year old appear not to ripple market because of his previous experience at the apex bank as Governor, with others saying he wouldn’t always do the bidding of the American president.
If approved by the US Senate, Mr Warsh will take over the position in May, when Mr Powell’s term expires.
Despite having argued for reductions recently, “Warsh has a long hawkish history that markets have not forgotten,” one analyst told Bloomberg.
President Trump has castigated Mr Powell for not lowering interest rates more quickly. His administration also launched a criminal investigation of Powell and the Federal Reserve earlier this month, which led Mr Powell to issue an extraordinary rebuke of President Trump’s efforts to politicize the independent central bank.
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