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Russia Scrambles for Higher Performance Marks in Africa

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Russia-Africa relations

By Kestér Kenn Klomegâh

Squeezed between Western and European sanctions due to its “special military operation” in Ukraine since late February and its dilapidating effects on Africa’s economy on one side and its decades-old desire to regain a part of the Soviet-era influence despite the weak economic presence and negative perceptions at the core among the public especially the youth and middle class, Russia is gearing up for the next traditional African leaders summit.

With preparations underway, Russia would have to begin preparing for and play different attractive rhythms at the second African leader’s summit in 2023 in St. Petersburg, Russia. Reports monitored by the author indicate that the modest economic gains are gradually eroding due to Covid-19 these past two years and the situation is turning complicated currently due to the Russia-Ukraine crisis.

The Russia-Ukraine crisis has had a strong immeasurable negative impact, generating social discontent across a large spectrum of the population in Africa. Therefore, African leaders would indiscriminately have to cooperate with any foreign investors willing to invest and support their development process. Across Africa, more than 282 million people are food insecure – and that number is rising, according to estimates by the World Bank.

Throughout Africa, the vulnerable groups of the population are displaying discontent and dissatisfaction due to unbearable rising prices for commodities and consumables. This latest food crisis, which did not originate in the continent, is reaching alarming dimensions, especially in Africa. In fact, African leaders are confronted with these hurdles and emerging challenges. They are feverishly looking for both short-term solutions to calm down existing tensions among the people, and also long-term strategies to push sustainable development and make pace for growth.

The United States perceives most of the challenges and opportunities with a difference in Africa. It is constantly investing and its private investors are active exploring the continent. The United States is well-connected with its public outreach diplomacy. American institutions and organizations are linking up with the youth, women and civil society.

After a peak in 2014, foreign direct investment (FDI) in Africa from the United States dropped to $47.5 billion in 2020. During the pandemic, it provided more than 50 million doses to 43 African countries. It has further given more than $1.9 billion in Covid-related assistance, for urgent needs like emergency food and other humanitarian support.

President Joe Biden has launched the Emergency Plan for Adaptation and Resilience. The year, the Congress allocated $3 billion every year by 2024 to finance climate adaptation projects, the largest commitment ever made by the United States to reduce the impact of climate change on those most endangered by it.

Through the Power Africa programme, the U.S. has connected more than 25 million homes and businesses across the continent to electricity, 80 per cent of which is based on renewables. Development Finance Corporation supports renewable energy across Africa, including a solar project in Nigeria, and wind farms in Senegal and Kenya. Nigeria marked a new chapter with the signing of a $2.1 billion development assistance agreement that supports collaboration in the fundamentals: health, education, agriculture, and good governance.

And then four U.S. companies are collaborating with the Senegalese Government on infrastructure projects; that’s the Institut Pasteur de Dakar, which is working toward COVID vaccine production with American support and investment; and pushing innovation, technology and entrepreneurship with women and youth groups in Africa.  The popular partnership between the United States and Africa is YALI – the Young African Leaders Initiative.

The Prosper Africa initiative aims to increase two-way trade and investment. The Africa Growth and Opportunity Act – known as AGOA – provides duty-free access to American markets, and most African countries have taken full advantage of it. U.S. investors are seriously leveraging the African Continental Free Trade Area (AfCFTA). Similarly, China, Japan and South Korea have started localizing the production of automobiles and tech gadgets.

Despite some criticism, international development institutions and organizations are ready and offering support. In addition, external countries are stepping up efforts in that direction. The World Bank stands ready. Its latest three-year, $93 billion global programme – about 2/3 of which will support Africa’s development agenda – is delivered through the International Development Association (IDA). The IDA is the world’s largest source of concessional funds, including grants for low-income countries, helping them seize opportunities to reduce poverty and stimulate inclusive growth.

This latest IDA replenishment will support Africa to increase even more in the years ahead. Africa has become the prime region benefiting from IDA resources – growing more than tenfold from its annual program of about $3 billion in 2000 to well over $30 billion currently. This support, plus our growing on-the-ground presence across Africa, is enabling to work hand-in-hand with governments, the private sector, and civil society to implement the continent’s ambitious development agenda.

While in Dakar, capital of Senegal, meeting more than a dozen Heads of State from across Africa, Axel van Trotsenburg, World Bank Vice President for Latin America and the Caribbean, said: “African leaders have, through the African Union process, articulated clear goals – from digitalization to electricity to education – and we are committed to helping Africa translate these ambitions into strong programmes that can, within a short period of time, improve people’s lives and transform the continent.”

Foreign countries including the United States, European Union, and Asian states such as China, and the Gulf and Arab states are, indeed, at the forefront in Africa. They offer all kinds of support for investments and credit lines for infrastructure projects and development programmes, while Russia seems ultra-hesitant to do. In March during the heat of the Russia-Ukraine crisis, the United States and European Union supported Africa through the African Development Bank (AfDB), when the bank sought funds of more than $50 billion for curated bankable projects in key priority sectors identified in the Africa Investment Forum’s 2020 Unified Response to Covid-19 initiative.

According to the China-Africa Economic and Trade Relationship Annual Report (2021), while Covid-19 has shaken the global economy, Chinese investment in Africa has been climbing. The report says China invested US$2.96 billion in Africa in 2020, up 9.5% from 2019.  The turnover of Chinese enterprises’ contracted projects in Africa amounted to $383.3 billion in 2020, which is a 16.7% drop from 2019.

In a media release, the U.S. Government’s lead development agency, the United States Agency for International Development (USAID), has renewed its partnership with many African countries. Quite recently, it offered to fund various projects, including investment in health and education, women and youth, and infrastructures in a number of African countries. For instance, in April this year, it gave assistance funding of $1.5 billion to promote a more peaceful, prosperous and healthy Mozambique.

The economic significance of the Eurasian Union for Africa’s development here need not be over-discussed. Members of the European Union such as Britain, France, Germany and The Netherlands are playing visible roles in Africa. The European Union, as a substantial economic power bloc, has long-term working relations with African Union.

With its new Global Gateway Strategy, the EU is demonstrating the readiness to support massive infrastructural investment in Africa.  It also seeks to unlock new business and investment opportunities, including in the areas of manufacturing and agro-processing as well as regional and continental value chain development. A document entitled “Toward a Comprehensive Strategy with Africa” sets forth the template of what the EU plans to do with Africa.

Valdis Dombrovskis, Executive Vice-President and Commissioner at the EU Secretariat pointed out that “In this new approach towards Africa, we can build a modern, sustainable and mutually rewarding partnership of equals. Of course, there will be challenges along the way but the EU stands ready to help. We want to share the lessons from our own process of economic integration, and with our new Global Gateway Strategy. We have demonstrated that we are ready to support massive infrastructural investment in Africa.”

That said, African leaders are exploring available possibilities and windows that have been opened after the last EU-Africa summit. The European Union has unveiled a €300 billion ($340 billion) alternative to China’s Belt and Road initiative – and investment programme the bloc claims will create links, no dependencies.

There is a great rivalry and keen competition among key global players now. And Africa is now seen from different perspectives, but more importantly, it has been described as the last investment frontier due to the current transformations taking place there. During the 35th Assembly of the Heads of State and Government of the AU in Addis Ababa in February, António Guterres argued that Africa was “a source of hope” for the world.

In November 2021, a report prepared by 25 Russian policy experts, titled ‘Situation Analytical Report’ explicitly noted that many external countries are using diplomacy in all ways to support their efforts in Africa. It criticized the inconsistency of Russia’s current policy towards Africa. The intensification of political contacts is only with a focus on making them demonstrative. Russia’s foreign policy strategy regarding Africa needs to spell out and incorporate the development needs of African countries.

While the number of high-level meetings has increased, the share of substantive issues on the agenda remains small. There are few definitive results from such high-level meetings. Many bilateral agreements largely remain not implemented, and many pledges are undelivered. It pointed to a lack of coordination among various state and para-state institutions working with Africa. According to the report, Russia has to intensify and redefine its parameters as it has now transcended to the fifth stage in its relationship with Africa.

That report was also critical of public speaking. The report lists insufficient and disorganized Russian-African lobbying, combined with the lack of “information hygiene” at all levels of public speaking among the main flaws of Russia’s current Africa policy. In several ways, ideas and intentions are often passed for results, and worse Russia’s possibilities are overestimated both publicly and in closed negotiations.

Several reports monitored by this author shows clearly that there has been little approach, in terms of government and institutional public relations, to Russia’s foreign policy in Africa. Understandably, after thirty years most of its institutions connecting Africa are still in transitional mode from the Soviet era. This author has written a lot about this, emphasizing the seriousness of using media networks – a calculated attempt to build an atmosphere of trust and confidence. Quite obviously, Russians have to devote a great deal of thought to creating a strategic communication group that could highlight its diverse performance and practical genuine interests in Africa.

Opening a new stage of relations becomes important, especially when analyzing the contradictions and confrontations posed by the Russia-Ukraine crisis and its multiple effects on future relations. Without doubts, African leaders complained bitterly that they have become direct victims of the Russia-Ukraine crisis. Overall Russia’s investment in economic sectors is still staggering there in the continent and comparatively, the fact still remains that the United States, the European Union and a number of Asian and the Gulf States are investing heavily in Africa.

Russia’s Foreign Minister Sergey Lavrov and his Deputy Mikhail Bogdanov, most often show their crosshair of consistent criticism for Western and European dominance and investment in Africa. It lacks strategies for implementing those oftentimes forward-looking policies for Africa. The passion for repeating the same things in different ways in speeches. In a general sense, their repetitive theme of Soviet-era support for political liberation and now efforts to help Africa fight neocolonialism are highly appreciated but Russia has to, in practical terms, show its latest policy achievements in various sectors for the past two decades.

On another side note, Russia most probably needs to design the template of its communication strategy ahead of the 2023 summit, which has to largely win the hearts of African leaders to the emerging New World Order. As already promised, the Minister of Foreign Affairs of the Russian Federation, Sergey Lavrov, indicated in a mid-June message that “in these difficult and crucial times the strategic partnership with Africa has become a priority of Russia’s foreign policy. The signed agreements and the results will be consolidated at the forthcoming second Russia-Africa summit.”

Economy

UK Backs Nigeria With Two Flagship Economic Reform Programmes

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UK Nigeria

By Adedapo Adesanya

The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.

Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.

Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”

The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.

Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.

“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”

On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.

“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”

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Economy

MTN Nigeria, SMEDAN to Boost SME Digital Growth

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MTN Nigeria SMEDAN

By Aduragbemi Omiyale

A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.

With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.

At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.

The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.

“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.

Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.

“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.

Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.

“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.

“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.

Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.

He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.

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Economy

NGX Seeks Suspension of New Capital Gains Tax

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capital gains tax

By Adedapo Adesanya

The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.

Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.

Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.

The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”

According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”

“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”

Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.

He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.

Mr Oyedele  also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.

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