Feature/OPED
Africa Beyond Russia’s Grains Partnerships
By Kestér Kenn Klomegâh
Until sustainable food security is established through modernizing agriculture and ensuring adequate support for local farmers, Russia’s grain supply would be a soft geostrategic bait (i) to reinforce the existing time-tested relationships with Africa and (ii) to solicit an endorsement for the unprovoked war in Ukraine.
In a speech delivered on March 20, 2023, during the interparliamentary conference ‘Russia-Africa’ held in Moscow, President Vladimir Putin described six African countries as the least developed and poorest in the world that are urgently in need grains, alternatively referred to as humanitarian aid, to feed its population.
The beneficiary African countries – Burkina Faso, Central African Republic, Eritrea, Mali, Somalia and Zimbabwe – have warm-heartedly expressed their highest gratitude for the wonderful ‘food-gift’ that was promised, and was chorused in a speech in July 2023 at the second Russia-Africa summit held in St. Petersburg.
During that Russia-Africa summit, Russian President Vladimir Putin promised what was referred to as ‘grains at no-cost delivery’ (when it was first announced to an ear-deafening applause at the inter-parliamentary conference on March 20), and as expected, the Russian Agriculture Ministry has accomplished that mission by despatching a total of 200,000 metric tonnes as humanitarian aid to these African countries. (For further detailed information on this, read the transcript on the Kremlin’s website)
“After the Russia-Africa summit, we have been maintaining relations with African countries and building cooperation,” Patrushev told Putin during the Kremlin meeting. “As a result, we were able to deliver this volume of wheat to these countries quite quickly.” He also told Putin that Russia expected to export up to 70 million metric tonnes of grain in the 2023-2024 agricultural year. In the previous season, Russia shipped 66 million tonnes worth almost $16.5 billion.
This 200,000 metric tonnes of humanitarian aid to Africa has been given unprecedented worldwide publicity. Russian state TV in the past month showed white bags of wheat marked “gift from the Russian Federation to Burkina Faso” and printed with the flags of both countries. “It shows Russia’s solidarity for the Burkinabe people and the good, strong relations between our two countries,” Nandy Some-Diallo, Burkina Faso’s minister for solidarity and humanitarian action, said at a ceremony to mark the donation in January.
TASS state news agency put it most bluntly: “Russia has completed delivery of wheat to six poorest African countries. At the 2023 Russia-Africa Summit, Putin vowed to supply Russian grain free of charge to African countries most in need.“
Since the first announcement in March, followed by the second in July 2023, it several months to deliver to Africa which officials blamed logistics. “The first ship departed on November 7, 2023. The average travel time stood at 30-40 days. The last vessel arrived in Somalia in late January and the unloading of its cargo was completed on February 17,” Agriculture Minister Dmitry Patrushev said, adding that “this is the first time that our country carried out such a large-scale humanitarian operation,” according to Russian state news agency TASS.
Many observers, however, say the Kremlin’s grain gift is a ‘strategic’ move as Putin’s African alliance broadens. “It’s strategic in the sense that Russia realizes these countries are in need and takes advantage of that specific need,” said Zimbabwean development economist Godfrey Kanyenze.
“It is geopolitics at play … the major string is to control or get a head start ahead of other rivals or competitors,” Kanyenze, who is a founding director of the Labor and Economic Development Research Institute of Zimbabwe, told CNN in February 2024, adding that Africa has become a very critical playing ground, further suggested that Russia could be playing the long game to emerge as Africa’s preferred global partner.
Notwithstanding that, African countries generally have goodwill towards Russia, and this has noticeably reflected in their avoidance of criticizing the war in Ukraine which began on February 24, 2022.
While many took a neutral stance, Eritrea voted against a UN General Assembly resolution demanding that Russia withdraw its troops from Ukraine. Reports say the Kremlin is steadily making inroads, taking advantage of instability in countries that used to rely on former colonial ties with Europe. Leaders of those countries have vehemently criticized former colonial relations, moved to cut ties with the West — mainly France — and often narrative fact that Russia never colonized African countries.
The foreign and local media posts on Russia’s humanitarian grain to the six African countries have interestingly received millions of readers and viewers. Some news outlets ran headlines praising Russia for feeding Africa but terribly failed to analyze the implications including the incapacity of these African countries to modernize agriculture instead of settling for food packages. That business often goes beyond humanitarian aid. Almost half of the African continent imports, at least, their wheat from both Russia and Ukraine. Besides wheat and grains, Russia does excellent business with security assistance and arms supplies, mostly in exchange for mineral concessions and uninterrupted access to natural resource deposits in Africa.
Despite frequent complaints against the United States and Europe over global (dis)order and hegemony, further blaming them for over-exploiting Africa, Russia is now at the frontline, unquestionably fighting neo-colonialism on behalf of Africa. Without much doubt, Russian flags have become an acceptable symbol of anti-Western sentiment across Africa. But in practical terms, it rather exposes the collective weaknesses, inability to sharpen development priorities, gross mismanagement and incompetencies of African leaders. In a nutshell, African leaders pay lip service in pursuit of working towards attaining their economic sovereignty.
The system of governance, lack of strategies and poor development policies are largely hindering sustainable development. African leaders have opened faultlines: globe throttling for humanitarian aid at international conferences and summits, switching investment partners, taking their mines and natural resources from one foreign player and passing them on to another foreign player – in the name of fighting neo-colonialism.
The Global Development Index shows that African governments continue to pursue trivial development questions, poor governance and deep-seated corruption. In fact, 80% of Africa’s population still lives in abject poverty, the state development is shabby. And yet blamed the United States and Europe for their under-development and exploitation. The neo-colonialism topic is a source of much discussion at all levels around the world. After pivoting away from the much-disparaged United States and Europe, several African leaders have found new ‘friends’ in the so-called East, enthusiastically bartering their gold and diamond mines.
Often said that Africans have to use their wisdom, and prioritize continental unity and development, especially in the context of the current rapidly changing global architecture. Strict compliance and respecting the policy guidelines of regional and continental organizations, and this step will in turn make them stronger on the international stage.
Better target critical institutional reforms inside Africa, and take strict measures to prevent foreign ‘friends’ from exploiting loopholes in these state institutions. Regardless of the facts, African issues are still very lamentable, and leaders are excited at Africa being described as the poorest in the world, on the one hand. Then, on the other hand, Africa is described as uniquely endowed with enormous untapped resources. The dichotomy of the present day Africa.
What really makes these countries – Burkina Faso, Central African Republic, Eritrea, Mali, Somalia and Zimbabwe – poor? As it is well-known, Zimbabwe, with roughly 15 million people as per the 2022 census, claims to have recorded its highest wheat harvest during the agricultural production year. Thus, Zimbabwe emerges as one of the few African countries which has adopted import substitution agricultural policy and strategically working towards self-sufficiency. Consequently, this could be a great lesson for Burkina Faso, Central African Republic, Eritrea, Mali and Somalia.
Besides the humanitarian grains, Russia plans to earn an estimated revenue amounting to $33 billion by exporting food to African countries. In sharp contrast to food-importing African countries, Zimbabwe has increased wheat production, especially during this crucial time of the current Russia-Ukraine crisis. This achievement was attributed to efforts in mobilizing local scientists to improve the crops’ production. Zimbabwe is an African country that has been under Western sanctions for 25 years, hindering imports of much-needed machinery and other inputs to drive agriculture.
Some experts and international organizations have also expressed the fact that African leaders have to adopt import substitution mechanisms and use their financial resources to strengthen agricultural production systems. Establishing food security is important for millions of people facing hunger in Africa and is crucial for sustainable economic development and the long-term prosperity of the continent.
In this discussion, it is worth to underline that Africa is the world’s second-largest with a huge landscape for agriculture. Despite this low concentration of wealth, recent economic expansion and its young population make Africa an important economic market in the broader global context. But why Africa remains the world’s poorest and least-developed continent? And be running around for food packages? Interesting loans and investment capital have been diverted and siphoned off back to Europe. Africa is now at risk of being in debt, particularly in sub-Saharan African countries.
Addressing food security, therefore, is key for a rising Africa in the 21st century. With the geopolitics intensifying, Africa can only gain contentious economic strength by confronting challenges, handling emerging opportunities, fine-tuning strategies and importantly – utilizing much of its own abundant human and natural resources. It is about time to halt Africa’s dreamy Western and European circus. In a nutshell, take cognizance of the necessity to acknowledge the popular saying ‘African problems, African solutions’ and/or the ‘Africa We Want’ within the parameters of Agenda 2063 as widely propagated by the African Union.
Feature/OPED
The Future of Payments: Key Trends to Watch in 2025
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
Feature/OPED
Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections
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.
Feature/OPED
The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms
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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