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In Era of COVID-19, Russia’s Strategic Politics of Coronavirus Aid Takes Stage in Africa

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Coronavirus Aid

By Kester Kenn Klomegah

With coronavirus rapidly spreading among the population of 148 million, Russia took the third position in the world.

According to the official data provided on May 11, Russia had an aggregate total of 221,344 COVID-19 cases. The United Kingdom and Italy earlier reported 219,183 and 219,070 cases, respectively.

Spain comes in second with 224,390 coronavirus cases, and the United States ranked first with nearly 1.4 million cases.

That are huge gaps compared to over 50,000 cases among 1.3 billion population of Africa, at a first glance, and readily offered an understandable story. South Africa and Maghreb region are the hardest hit and worse affected with the coronavirus in Africa. As expected, the pandemic places diverse impact on the global economies and the society, recommended measures have been taken in a bid to prevent the coronavirus spread.

According to the United Nations Economic Commission for Africa (UNECA) report, Africa still behind European countries when it comes to the COVID-19 outbreak and is far from seeing its peak. While Africa has only reported more than 50,000 confirmed cases of the novel coronavirus early May, the UNECA-released report “COVID-19 in Africa: Protecting Lives and Economies” said “anywhere between 300,000 and 3.3 million African people could lose their lives as a direct result of COVID-19, depending on the intervention measures taken to stop the spread.”

According to the Regional Office for Africa of the World Health Organization (WHO), the hardest hit are South Africa and mostly Maghreb countries of Algeria, Egypt, Morocco and Tunisia. These Maghreb countries have strengthened information controls, instead of upholding transparency during the health crisis, but generally reported to have more than 5,000 infections, while in Tunisia, there are 1,018 patients and 43 people have died. In sub-Saharan West Africa, Ghana and Nigeria are also among the top ten African countries affected the pandemic.

While Russia, for a time, appeared to escape a serious coronavirus outbreak, the situation there has changed drastically during these two months of April and May, – passing Germany and France to become the third most-infected country in the world, according to The Moscow Times. Russia now has the fastest rate of new cases in Europe, and second-fastest rate of new cases in the world behind the United States.

In an important part, Russian health workers are still reporting a shortage on protective equipment. With the picture getting highly scary, Russian President Vladimir Putin worries about any slightest missteps when, in one of his live television speeches, he warned: “We cannot jump ahead of ourselves. Any carelessness or haste may cause a setback.”

Despite its internal difficulties, Russia has been offering coronavirus assistance to a number of Africa countries. Russia is using it bilateral and multilateral mechanisms in addressing these requests filed by African countries since March after the coronavirus pandemic had spread to the continent that consists of 54 countries. However, Lesotho and Comoros are free from the coronavirus.

Russian Foreign Ministry said a number of African countries have requested Moscow’s assistance in combating the coronavirus. “A number of countries on the African continent have requested Russia’s assistance in combating COVID-19. African nations need a wide range of medical equipment, including ventilators, as well as testing systems, individual protective gear, disinfectants and consumables. These requests are carefully studied and the situation in a particular country is taken into account,” it reported, adding that coronavirus spread rates were relatively low in African countries, with the exception of Algeria, Egypt, Morocco and South Africa.

“However, this issue is causing serious concern to many countries on the continent. The social and economic situations in many of these countries are complicated, while high population density, poor healthcare systems, various crises and conflicts, transparent borders and uncontrolled migration can lead to a sharp rise in cases and unpredictable consequences,” the statement said.

According to the Russian Foreign Ministry, the pandemic may negatively affect African countries’ ability to carry out major tasks to overcome poverty, ensure sustainable development and implement integration projects. Russia had been assisting African countries in responding to natural disasters and the spread of infectious diseases, including the Ebola fever. “We will do what we can to help the continent combat the coronavirus pandemic, using bilateral mechanisms and those of international organizations,” the ministry said, noting that “when making decisions, we will take a whole set of factors into account, including Russia’s coronavirus spread rate.”

Understandably, wholesale provision of coronavirus assistance is, absolutely and practically, impossible to Africa. Therefore, in the shadow of COVID-19, Russia is strategically choosing for its coronavirus aid destinations inside Africa, experts argued. Historically, Russia has had a high preference for the Maghreb region and southern African countries. Thus, in the months of April and May, aid was delivered to Algeria, Egypt, Morocco and Tunisia in North Africa. Ethiopia and Djibouti in eastern Africa. In southern Africa, the beneficiaries included Mozambique, South Africa and Zimbabwe, according to various media reports inside Africa.

On May 11, at the National Institute of Biomedical Research (NIBI) of the Democratic Republic of Congo (DRC), more than 28 thousand units of laboratory supplies and 8 thousand units of personal protective equipment including protective clothing, respirators, reusable full-face masks with a set of filters and gloves were delivered. According to the Ministry of Foreign Affairs media report, the cargo was sent by Russia’s Rospotrebnadzor.
The delivery event was attended by the DRC Minister of Health, Dr Eteni Longondo, Advisers to the President, P. Muanda Congo and S. Sial Sial, as well as the Director of the National Institute of Biomedical Research (NIBI), Professor J.M. Muyembe Tampam and Russian Ambassador Aleksey Leonidovich Sentebov.

According to WHO, Congo confirmed its first case of coronavirus mid-March, and as of May 5, there were only 264 confirmed cases and 11 deaths in a country of some 80 million people. Therefore, the Russia’s assistance provided is extremely timely, since epidemics of coronavirus, Ebola, Cholera and Measles broke out, at the same time, in the country. In difficult sanitary and epidemiological conditions, DR Congo is experiencing a sharp shortage of equipment, tests, medicines, vaccines, and there are not enough masks, gloves, and disinfectants.

In this regard, the Congolese are looking forward to the arrival of two mobile laboratories at the end of May this year, which, due to their versatility, can be used to combat the spread of a number of especially dangerous infections, including COVID-19. Russia plans to train Congolese personnel in these microbiological complexes.
In addition, as part of the provision of gratuitous anti-epidemic assistance, Rospotrebnadzor plans to send modern laboratory equipment, diagnostic preparations, vaccines against BVE, cholera, plague and measles, test systems for the detection of Ebola, dengue fever, malaria, cholera and coronavirus to Kinshasa.
Russian-Congolese health contacts are quite extensive and are backed by an agreement signed between the Federal Service for Supervision of Consumer Rights Protection and Humanitarian Affairs and the DRC on the sidelines of the Russia-Africa summit in October 2019 in Sochi. Over the course of several years, Russian virologists have repeatedly visited this country in order to identify its urgent needs, held meetings with local specialists and, in the most difficult period of the global spread of coronavirus in the Republic of Congo.

Russia’s Sputnik News, under the headline, “Tunisia Asks Russia for Respirators, Masks, Medical Equipment Amid Pandemic” quoted the Tunisian Ambassador to the Russian Federation, Tarak ben Salem who said: “This request for assistance is a part of friendly relations between Tunisia and Russia. Tunisia, like many other countries, is facing an unprecedented health and economic crisis. We need respirators, masks and medical equipment that will help provide services in public hospitals.”

“Tunisia, a country close to Italy, appreciated the assistance provided by Russia to this neighboring friendly country,” Salem explained and added “Tunisia hopes for a step forward from Russia, which has promised to consider our request. This can only confirm the quality of friendly and fraternal relations between our countries and our peoples.”

Nevertheless, Russia is also exploring the opportunities in Tunisia, and as part of its geopolitical expansion and influence in Maghreb region. According to the ambassador, Russia has pledged to look into Tunisia’s request.

The United States had granted $500,000 in health assistance to address the coronavirus outbreak in Djibouti. Shortly thereafter, the Russian Foreign Ministry also posted to its official website that Russia had delivered humanitarian assistance to Djibouti in East Africa. Late April, Russian humanitarian aid to the Ministry of Health of the Republic of Djibouti was delivered and was described as part of a joint project with the World Health Organization. It was financed by the Russian Government to enhance Djibouti’s potential in the field of medical emergency readiness and response.

“This humanitarian action comes in response to an official request from the Djiboutian authorities in view of the serious deterioration in the sanitary and epidemiological situation in the country caused by heavy floods and the spread of the novel COVID-19 infection. A consignment of humanitarian aid weighing a total of 13.5 tons and consisting of more than 20 multi-purpose medical modules to fight dangerous infectious diseases was delivered to Djibouti’s seaport. The shipment included tents and components to build two medical units for rendering skilled assistance to over 200,000 people,” according to report of the Russian Ministry of Foreign Affairs.

The report indicated that “the ceremony was attended by Russian Ambassador to Djibouti Mikhail Golovanov, WHO Representative Dr Ahmed Zouiten and Djiboutian Minister of Health Mohamed Warsama Dirieh. The Djiboutian leadership expressed its sincere appreciation to the Russian side for the assistance amid such a complicated epidemiological situation.”

Djibouti has seen a rapid spike in coronavirus cases with the Horn of Africa nation, as the population largely ignores measures imposed by authorities. As a tiny country, it shares borders with Somalia in the south, Ethiopia in the south and west, Eritrea in the north and the Red Sea. Djibouti is a multi-ethnic, with a population about one million, but strategically important country that hosts the United States and French military bases, has recorded 1,116 positive coronavirus cases — small on a global scale. Only two (2) people have died to date, according to the report from the Ministry of Health.

With its burgeoning commercial hub, it serves strategically as the site for various foreign military bases. The hosting of foreign military bases is an important part of Djibouti’s economy. The United States pays $63 million a year to rent Camp Lemonnier, France and Japan each pay about $30 million a year and China pays $20 million a year. The lease payments added up to more than 5% of Djibouti’s GDP of $2.3 billion in 2018.

China has stepped up its military presence in Africa, with ongoing plans to secure an even greater military presence in Djibouti specifically. China’s presence in Djibouti is tied to strategic ports to ensure the security of Chinese assets. Djibouti’s strategic location makes the country prime for an increased military presence.

Undoubtedly, Russia has shown interest in strengthening its ties with the country. Russians believe it could take steps to overcome the impasses in the disputes between Ethiopia and Eritrea, between Ethiopia and Djibouti, as well as international support for Somalia’s efforts to restore its statehood in the Horn of Africa. It has proposed an elaborate plan from maintaining peace and security to promoting socioeconomic development in the Horn of Africa and that includes Djibouti.

Over the past few years, Foreign Minister Sergey Lavrov has had extensive discussions on investment in high technology and transport logistics in Djibouti and Eritrea, both neighboring countries in the region.

It is worth to note that Russia and Algeria have friendly sustainable relations. A Russian cargo aircraft has delivered personal protective equipment to help tackle the novel coronavirus pandemic in Algeria. Algeria’s Minister of Health, Population and Hospital Reform Abderrahmane Benbouzid and Russian Ambassador Igor Belyaev were at the air base of Boufarik, Blida (50-km south of Algiers), to take delivery of the cargo, Algeria Press Service reported April 30.

According to the information made available, the Russia’s humanitarian aid, consists of medical protective equipment was purchased by the Rosoboronexport, the State Arms Exporter, it was done upon the Russian government’s instructions in order to fight the coronavirus pandemic. “Among the medical items delivered to Algeria are infrared thermometers, suits, medical masks and other goods, needed by the friendly nation of Algeria and its healthcare sector,” the media said. Cooperation in fighting COVID-19 strengthens the humanitarian aspect of Russian-Algerian relations.

Given this global scenario of COVID-19, it becomes a conduit to play some game cards. For instance, Russia’s pursuit of playing a bigger role in global political realm is grounded on the consequences Russia faced in the aftermath of the collapse of USSR. That was followed by a huge political chaos and instability of its socio-economic space. However, Russia cling to it as the new game changer and now plays the catch-up. Russia seems to have neglected the potential opportunities in Africa, according to Punsara Amarasinghe, a former research fellow at the Faculty of Law, Higher School of Economics in Moscow, and now a PhD candidate in international law from the Sant’Anna School of Advanced Studies in Pisa, Italy.

“Perhaps, Russia needs a lot more of efforts to revive old ties in African countries, to engage in a large scale investments and energy. Humanitarian assistance could be a strategic mechanism, the lack of Russian soft power in African states is another main trouble that continues to hinder Russia’s realization of its policy projects,” Amarasinghe wrote in his emailed discussion.

He further compares how Britain, France and even India are performing with the use of their soft power in African space, added finally that “Russia still has the opportunities, Moscow only needs to address more on African states beyond arms trade and offering assistance, but covering much important issues such as education, energy politics and investment. These have to be taken in practical terms, not just mere rhetoric.”

On April 29, Russian International Affairs Council (RIAC), a powerful autonomous Russian NGO that focuses on foreign policy, held an online conference under theme “The Future of Africa in the Context of Energy Crisis and COVID-19 Pandemic” – with participation of foreign policy experts on Africa.  Chairing the online discussions, Igor Ivanov, former Russian Foreign Affairs Minister and now RIAC President, made an opening speech. He pointed out that Russia’s task in Africa following the pandemic is to present a strategy and define priorities with the countries of the continent, build on the decisions of the first Russia-Africa Summit, held in Sochi in October 2019.

On the development of cooperation between Russia and African countries, Igor Ivanov strongly reminded that “Russia’s task is to prevent a rollback in relations with African countries. It is necessary to use the momentum set by the first Russia-Africa Summit. First of all, it is necessary for Russia to define explicitly its priorities: why are we returning to Africa? Just to make money, strengthen our international presence, help African countries or to participate in the formation of the new world order together with the African countries? Some general statements of a fundamental nature were made at the first Summit, now it is necessary to move from general statements to specificity.”

The speakers presented scenarios of the development of the COVID-19 coronavirus pandemic on the continent, the impact of the coronavirus on various industries, the economic and social development of African countries. Experts discussed the role of integration associations on the continent, the existing and the expected problems in the work of humanitarian missions and programs supervised by international organizations.

For many African countries, it is the time to reflect on African countries’ responses to COVID-19. It is time to take the opportunity it offers to catalyze action on structural deficits. The current predicament triggers long-term shifts toward universal access to health and education. It is time to think of improving communities with the necessary infrastructure. Although it has abundant natural resources, Africa remains the world’s poorest and least developed continent, the result of a variety of causes that include corrupt governments, and worse with poor development policies. It is time to prioritize and focus on sustainable development.

With its 1.3 billion people, Africa accounts for about 16% of the world’s human population. Africa, comprising 54 countries, is the world’s second largest and second-most populous continent after Asia. As the coronavirus spreads around the world, many foreign eyes, such as the United States and Canada, Europe, China, Russia and the Gulf States, are still on Africa.

Significantly, the global pandemic has exposed the weaknesses in Africa’s health system, adversely affected its economic sectors, it is therefore necessary for African leaders, the African Union (AU), Regional organization and African partners be reminded of issues relating to sustainable economic development and subsequent integration. It sets further as a reminder to highlight and prioritize the significance of these in the context of tasks set out by the UN 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063.

By Kester Kenn Klomegah writes frequently about Russia, Africa and the BRICS. 

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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The Future of Payments: Key Trends to Watch in 2025

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Luke Kyohere

By Luke Kyohere

The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:

1. The rise of real-time payments

Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this. 

2. Cashless payments will increase

In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions. 

3. Digital currency will hit mainstream

In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain. 

The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability. 

4. Increased government oversight

As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.

5. Business leaders buy into AI technology

In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk. 

6. Continued AI Adoption in Payments

In payments, the proliferation of AI will continue to improve user experience and increase security.  To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent. 

When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.

7. Rise of Super Apps

To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills. 

8. Business strategy shift

Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble. 

As the payments space evolves,  businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.

Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq

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Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections

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ghana election 2024

In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.

In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.

“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”

The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.

Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.

The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”

The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.

As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.

In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.

“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.

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The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms

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tax reform recommendations

By Kenechukwu Aguolu

The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.

One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.

A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.

In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.

The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.

The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.

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