Connect with us

Economy

Russia’s Summit on Africa: Challenges, Implications and Beyond

Published

on

Kremlin Red Square Russia's Summit

By Kester Kenn Klomegah

With highly expected symbolism, Russia’s primary focus at the forthcoming November summit in St. Petersburg with African leaders, corporate business directors, representatives from the academic community, civil society organizations and media will largely be renewing most of its unfulfilled bilateral agreements and making new pledges that will, as usual, be incorporated into a second joint declaration.

Brilliant speeches reminded of long-standing traditions of friendship and solidarity, how Soviets assisted African countries in their struggle to attain independence and established statehood, and further highlighted neo-colonialism tendencies wide spreading on the continent.

That Russia stands with Africa on matters of strengthening peace and stability on the continent and ensuring regional security. Next is absolute readiness to engage in broadening cooperation in all economic sectors.

While the first summit was described as highly successful due to its spectacular blistering symbolism and has offered the necessary solid impetus for raising to qualitative level the multifaceted relations, especially in the economic spheres with Africa, much has still not been pursued as expected. Behind the shadows of the bilateral agreements, some of the projects were simultaneously assigned to either Western or European investors.

Long before the historic summit, the African foreign minister and delegations had lined up visiting Moscow. Those frequent official visits were intended to show off that Russia is in high demand as indicated in a 150-paged new policy released last November by a group of 25 leading experts headed by Sergei A. Karaganov, the Honorary Chairman of the Presidium of the Council on Foreign and Defence Policy.

The report vividly highlighted some pitfalls and shortcomings in Russia’s approach towards Africa. It further pointed to Russia’s consistent failure in honouring its several agreements and pledges over the years. It decried the increased number of bilateral and high-level meetings that yield little or bring to the fore no definitive results. In addition, insufficient and disorganized Russian African lobbying combined with a lack of “information hygiene” at all levels of public speaking, says the policy report.

There are, indeed, to demonstrate “demand for Russia” in the non-Western world; the formation of ad hoc political alliances with African countries geared towards competition with the collective West. Apart from the absence of a public strategy for the continent, there is a lack of coordination among various state and para-state institutions working with Africa.

Despite the growth of external players’ influence and presence in Africa, Russia has to intensify and redefine its parameters. Russia’s foreign policy strategy regarding Africa has to spell out and incorporate the development needs of African countries.

Unlike most competitors, Russia has to promote an understandable agenda for Africa: working more on sovereignty, continental integration, infrastructure development, human development (education and medicine), security (including the fight against hunger and epidemics), normal universal human values, the idea that people should live with dignity and feel protected.

Nearly all the Russian experts who participated in putting the report together unreservedly agreed with this view. The main advantage of such an agenda is that it may be more oriented to the needs of Africans than those of its Western and European competitors. It is advisable to present such a strategy already at the second Russia-Africa summit and discuss and coordinate it with African partners before that. Along with the strategy, it is advisable to adopt an Action Plan – a practical document that would fill cooperation with substance between summits.

Vsevolod Tkachenko, the Director of the Africa Department of the Russian Foreign Ministry, stated during one of the preparatory meetings, “the African partners expect concrete deeds, maximum substantive ideas and useful proposals.” The current task is to demonstrate results and highlight achievements to the African side. Over the past years, African countries have witnessed many bilateral agreements, memoranda of understanding and pledges.

Russia has to set different narratives about its aspirations and intentions of returning to Africa. The approach has to move from rhetoric and mere declarations of interest. Since the basis of the summit remains the economic interaction between Russia and Africa, “the ideas currently being worked out on new possible instruments to encourage Russian exports to Africa, Russian investments to the continent, such as a fund to support direct investment in Africa, all these deserve special attention,” Tkachenko says.

According to an official report posted on the website, Russia’s Foreign Affairs Minister Sergei Lavrov, during the “Government Hour” in the State Duma on January 26, stated that the “cooperation with African countries has expanded to reach new frontiers. Together with African friends, we are working on preparations for the second Russia-Africa summit scheduled to be held this year.” Previously, for instance, Lavrov explicitly indicated: “Russia’s political ties, in particular, are developing dynamically. But economic cooperation is not as far advanced as political ties.”

Many experts have expressed concern about the relationship between Russia and Africa, most often comparing it with other foreign players on the continent within the framework of sustainable development there in Africa. It is about time to make meaningful efforts to implement tons of bilateral agreements already signed with African countries.

“Russia, of course, is not satisfied with this state of affairs. At present diplomacy dominates its approach: a plethora of agreements were signed with many African countries, official visits proliferate apace, but the outcomes remain hardly discernible,” Professor Gerrit Olivier from the Department of Political Sciences, the University of Pretoria in South Africa and a former South African Ambassador to the Russian Federation wrote in an emailed comment.

“While, given its global status, Russia ought to be active in Africa as Western Europe, the European Union, America and China are, it is all but absent, playing a negligible role. Be that as it may, the Kremlin has revived its interest in the African continent and it will be realistic to expect that the spadework it is putting in now will at some stage show more tangible results,” Olivier added.

Zimbabwe’s Ambassador to Russia, Brigadier General (rtd) Nicholas Mike Sango, who has been in his post since July 2015, expresses his views on the relations between Africa and the Russian Federation. While Russia has traditional ties with Africa, its economic footprints are not growing as expected. It has however attempting to transform the much boasted political relations into a more comprehensive and broad economic cooperation, he noted in his conversation with me.

He pointed to the disparity in the level of development, the diversity of cultures and aspirations of the peoples of the two regions, there is a growing realization that Africa is an important partner in the “emerging and sustainable polycentric architecture of the world order” as Foreign Minister Sergey Lavrov has aptly asserted. But in fact, Africa’s critical mass can only be ignored at great risk, therefore.

For a long time, Russia’s foreign policy on Africa has failed to pronounce itself in practical terms as evidenced by the countable forays into Africa by Russian officials. The Russian Federation has shied away from economic cooperation with Africa, making forays into the few countries that it has engaged in the last few years. African leaders hold Russia in high esteem as evidenced by a large number of African embassies in Moscow. Furthermore, Russia has no colonial legacy in Africa, according to the Zimbabwean diplomat.

Ambassador Sango, who previously held various high-level posts such as military adviser in Zimbabwe’s Permanent Mission to the United Nations, and as an international instructor in the Southern African Development Community (SADC), also said that “Russia has not responded in the manner expected by Africa, as has China, India and South Korea, to name a few. Africa’s expectation is that Russia, while largely in the extractive industry, will steadily transfer technologies for local processing of raw materials as a catalyst for Africa’s development.”

While Russia and Africa have common positions on the global platform, the need to recognize and appreciate the aspirations of the common man cannot be overstated. Africa desires economic upliftment, human security in the form of education, health, shelter as well as security from transnational terrorism among many challenges afflicting Africa. The Russian Federation has the capacity and ability to assist Africa to overcome these challenges leveraging on Africa’s vast resources, Ambassador Sango concluded.

For more than three decades after the Soviet collapse in 1991, Russia has had different degrees of political relations and currently looking forward to building stronger economic cooperation. During these years, the relations have also transited through distinctive phases taking cognizance of challenges and fast-changing global politics.

In an interview discussion for this story, Shirley Ayorkor Botchwey, the Minister of Foreign Affairs and Regional Integration of Ghana explains to this research writer that “Although, for a relationship lasting this long with Africa, one would have expected it to move past where it is now. In short, there is still room for improvement, in fostering particularly stronger economic ties.”

It is hoped that Russia continues consistently to catch up with other active foreign competitors, makes attempts to transform the well-developed political relations with broader economic cooperation in the coming years. Ultimately, emphasis should also be placed on developing ‘people-to-people’ relations, whereby the peoples of both countries would have a better understanding of each other.

Critically not much has been achieved, looking at the Russia-Africa relations from the perspective of regional organizations – especially the Southern African Development Community (SADC), when it was headed by Lawrence Stergomena. Regrettably, she explained during discussions with me that like most of the developing countries, Southern African countries have largely relied on multilateral and regional development financial institutions to fund their development projects.

In this regard, SADC welcomes investors from all over the world. In reality, Russia has not been that visible in the region as compared to China, India or Brazil. On the other hand, it is encouraging that Russia is currently attempting to position itself to be a major partner with Southern Africa, underlined Stergomena, and further explained that the SADC is an inter-governmental organization with its primary goal of deepening socio-economic cooperation and integration in the southern region.

Dr Babafemi A. Badejo, Professor of Political Science and International Relations at Chrisland University, Abeokuta, Nigeria, argues that many foreign players and investors are now looking forward to exploring several opportunities in the African Continental Free Trade Area (AfCFTA), which provides unique and valuable access to an integrated African market of over 1.2 billion people. In practical reality, it aims at creating a continental market for goods and services, with free movement of businesspeople and investments in Africa.

Badejo argues further that Russia’s gradual engagement can be boosted by African media popularizing and boosting knowledge on such engagements by Russia. Hosting the next summit would feed very well into popularizing Russia’s efforts at engagement with African leaders. However, promoting relations with the continent of Africa would require more than a one-off event with African leaders who have varying levels of legitimacy from performance or lack of it in their respective countries.

Interestingly, and at the current moment, not much of Russia’s image is promoted by the media in Africa. African media should have the opportunity to report more about Russian corporate presence in Africa and their added value to the realization of the sustainable development goals in Africa. This corporate presence can support the building of the media image of Russia in Africa through involvement with people-at-large oriented activities.

In this final analysis, Russia has to make consistent efforts in building its media network that could further play a key role in strengthening relations with Africa, the academic professor noted in his lengthy discussions on Russia-Africa and concluded that it is Western perception and narrative of Russia that pervades the African media. Russia needs to do more in using media to tell its own story and interest in Africa.

President Vladimir Putin noted at the VTB Capital’s Russia Calling Forum, that many countries had been “stepping up their activities on the African continent” but added that Russia could not cooperate with Africa “as it was in the Soviet period, for political reasons.” In his opinion, cooperation with African countries could be developed on a bilateral basis as well as on a multilateral basis, through the framework of BRICS (Brazil, Russia, India, China and South Africa).

With its impressive relations, Russia has not pledged publicly concrete funds toward implementing its policy objectives in Africa. Its investment efforts have been limited thus far which some experts attributed to the lack of a system of financing. While Russians are very cautious about making financial commitments, the financial institutions are not closely involved in foreign policy initiatives in Africa.

In addition, experts have identified lack of effective coordination and follow-ups combined with inconsistency are basic factors affecting the entire relations with Africa. While the first summit is still considered as the largest symbolic event in history, many significant issues in the joint declaration have not been pursued and that could lay down a comprehensive strategic roadmap for building the future Russia-African relations.

As publicly known, China, Japan and India have committed funds publicly during their summits, while large investment funds have also come from the United States and European Union, all towards realizing various economic and infrastructure projects and further collaborating in new interesting areas as a greater significant part of the Sustainable Development Goals (SDGs) in Africa.

Advertisement
1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Food Concepts Return NASD OTC Exchange to Danger Zone

Published

on

NASD OTC exchange

By Adedapo Adesanya

Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.

Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.

This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.

Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.

Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.

At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.

InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.

Continue Reading

Economy

Investors Gain N97bn from Local Equity Market

Published

on

Nigerian equity market

By Dipo Olowookere

The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.

This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.

UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.

On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.

Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.

Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.

A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.

This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.

For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.

Continue Reading

Economy

Naira Loses 18 Kobo Against Dollar at Official Market, N5 at Black Market

Published

on

forex Black Market

By Adedapo Adesanya

The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.

At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.

It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.

Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.

Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.

Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.

“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.

Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.

Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.

If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.

Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.

Continue Reading

Trending