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Africa’s Economic Development: Exploring Geopolitical Complexities and Contradictions

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economic development

By Kestér Kenn Klomegâh

Within the context of rapid geopolitical changes and the Russia-Ukraine crisis, African leaders have to absolutely rethink and take strategies to save their straddling economy. Both situations have created increasing problems across the world. The underlying causes are well-known and, therefore, allowing its possible effects to largely influence the already-stressed economic development processes will spell disaster and tragedy for Africa and its 1.4 billion population.

Several years have elapsed after the United Nations declared Africa’s political independence. Archival records show that Russia not only supported African countries in liberating themselves from the yoke of colonialism and attaining political independence but also facilitated the UN General Assembly adopting the 1960 Declaration on the Granting of Independence to Colonial Countries and Peoples. It was precisely on May 25, now more than 60 years ago, but still, Africa is far away from attaining its economic freedom despite the huge natural and human resources there. The resources are untapped, development remains shabby, while about 60% of the population is impoverished.

Some say leadership attitudes and approaches are holding back development in Africa, others blame external factors, including the opaque relations adopted by foreign players. Without an effort to negotiate and identify development priorities, without an effort to cut off self-centred attitudes, we will be prolonging our economic development and growth for another century if we attribute our under-development to imperialism and colonialism, why not then primarily blame African leaders, their executive cabinets and the legislative organs. Does Africa need these weak public institutions and civil society and leaders with obsolete and parochial ways of managing our economy?

At this stage of Africa’s development, it is necessary to examine thoroughly how the geopolitical changes are influencing Africa’s unity and development and how it is impacting African countries across the continent. In practical terms, the time has arrived to look at the development processes and review obstacles, control and monitor the participation of foreign players and now think of our role in the emerging new world order, as well as the implications for Africa.

On the other hand, a number of external players are swiftly dividing Africa and its desire for sustaining unity that has already been attained these several years by using anti-Western slogans and rhetoric, using political confrontation and consistently urging African countries to employ hatred for some foreign entities’ participation in Africa’s economy. There are glaring indications that Africa is sharply divided, and diverse conflicts are taking a heavy toll on developments there.

African Union simply lacks a unified approach to the continent’s development. Strengthening African unity has long been a sought-after goal that has never been fully achieved. As the need for regional integration and the reasons for past failures become better understood, new efforts are being made to hold economic and political ties between countries. In order to foster integrated development, regional organizations have been created in different parts of Africa. But on the whole, they have done little to improve developments in their respective regions. In many cases, African leaders continue to have extensive bilateral relationships with their former colonial powers. In the opposite direction, Russia and China are critical of Western and European connections to Africa. At least, China has given appreciably huge support, especially in upgrading infrastructure. Russia has now embarked on fighting “neo-colonialism”, which it considers a barrier on its way to regain a part of Soviet-era influence in Africa.

In terms of working with Africa, Foreign Ministry Spokeswoman Maria Zakharova, during her weekly media briefing on March 23, indicated that African countries need to consolidate their political independence and sovereignty while overcoming acute socioeconomic issues and development. She expressed appreciation and respect for the sovereign equality of states and non-interference in their internal affairs. But on the other side, it lashed at the aggressive policies of the United States and its approach towards Africa. She also blamed African leaders for their inability to employ “common sense” in their own interests and, most importantly, within the principles of the supremacy of international law, especially in the current geopolitical changes rapidly shifting from the unipolar system to multipolar world order.

She said: “Russia’s active work on the African track is a significant part of the entire scope of measures to develop a constructive cooperation with a great number of countries that pursue an open and balanced foreign policy guided by common sense and their own interests and, most importantly, within the principles of the supremacy of international law and indivisible security with the central and coordinating role of the United Nations.”

According to her explanation, Russia advocates for a more equitable and democratic international order that will promote reliable security, the preservation of unique cultural-civilizational identity and equal opportunities for the development of all states. This can only be guaranteed within the framework of a multipolar system of international relations and cooperation based on a balance of interests of the developing world. In a nutshell, Africa’s future has to be in line with this overall global development.

Due to its Western and European dreams, which it has pursued for the past three decades following the collapse of the Soviet era, Russia is shifting while charting a multipolar configuration and now moving to Africa. It is consistently expressing the desire to fight growing neo-colonial tendencies, obviously the most difficult task reminiscent of the Cold War times, in the continent to win support and sympathy from African leaders and among the 1.4 billion people, while Russia has invested little in the development of infrastructures, in the industrial sector and other employment-generating sectors across Africa.

In the context of development processes, African leaders are aware of the necessity to prevent the revival of neo-colonialism, the destructive attitude towards resources. The fight against neo-colonial tendencies should remain exclusively a challenging task for African leaders, regional organizations and the African Union. Russia should focus on what it could concretely do in the various economic sectors rather than continue accusing the United States and Europe of the under-development, economic obstacles and political problems across Africa. Experts say, African leaders, with the political mandates from their electorates, should take the sole responsibility for African problems and find African solutions within their professional skills and competencies.

It implies that Russia is under-rating and downgrading African leaders and their development policies for allowing the growth of neo-colonialism. By advising African leaders on what political direction is necessary to adopt, Russia is directly interfering in the internal politics of Africa. In practical terms, African leaders are answerable to their electorate, and the electorates have the duty of making objective assessments of their governments’ performance. It is widely acknowledged that state institutions are weak, and most high-level decisions relating to mega-projects first have to be discussed by parliament, or get the necessary approval from the cabinet. The system of checks and balances is still questionable in many African countries.

Some experts say the world needs cooperation rather than fragmentation. Cooperation rather than confrontation is the basis for the emerging multipolar world. For instance, Ivan Timofeev, Russian International Affairs Council’s Director of Programs and also Head of the “Contemporary State” program at Valdai Discussion Club, writing under the headline “Can Russia Really Break Away from the West?” argued that long before relations between Russia and the West spiralled into a comprehensive political crisis, Russian leadership and officials were enthusiastically voicing ideas about developing ties with the rest of the world.

After the Soviet collapse, especially in the 1990s, former Foreign Minister Evgeny Primakov pursued most activities within the framework of a multi-vector foreign policy. The gradual growth of contradictions with the West accelerated the formation of ‘pivot to the East’ ideas, although their implementation was slow. However, the current crisis in relations between Russia and the West, for all its appearances, is irreversible, and has driven an increase in the number and quality of ties with countries which are outside the control of the United States. Nevertheless, Russia itself is unlikely to be able to cement and consolidate them alone. However, it exemplifies the very possibility of challenging the political West on fundamental issues. Not everyone is ready to follow the same path, but the very fact of its presence is an event which has a global dimension.

The task is to create reliable opportunities for modernisation through interaction with the non-Western world. Here, success is far from guaranteed. The ‘world majority’ is closely embedded in Western-centric globalization, although the existing system has its own problems. Russia’s links with its Western neighbours have been accumulating for centuries. Even such a powerful crisis as today’s cannot cut them overnight. Within the West itself, there is both an ideological and a purely material stratification. Behind the facade of general political slogans lies an extremely heterogeneous political and mental space.

According to Ivan Timofeev, it is necessary to take into account the fact that the countries of the world majority, which are friendly to Russia, still have their own national interests. They are unlikely to sacrifice them simply for the sake of friendship with Russia. Many non-Western countries maintain close relations with the West. A considerable number of them still benefit from Western-centric globalization. Moreover, many use a modernising process according to the Western model, preserving their cultural identity and, if possible, political sovereignty, but do not hesitate to use Western standards in the fields of economics, production, management, education, science, technology, et cetera. Rather, Russia will have to engage with a variety of cultures and ways of life.

Last year, I attempted to have an insightful understanding of the geopolitical changes, the emerging multipolar configuration and its implications for Africa. Whether it means Africa has to break away from the United States and Europe? During the discussions with Dr Mohamed Chtatou, an experienced professor of Middle Eastern politics at the International University of Rabat (IUR) and Mohammed V University in Rabat, Morocco, told me how Africa can develop itself away from the greed of some developed nations and still maintain contacts with them. He clearly underscored the system of approach, noting further that there is no easy answer to this question, as it is a complex issue that involves many different factors. However, there are some steps that Africa can take to promote sustainable development and reduce the influence of developed nations. Here are a few of the steps Dr Mohamed Chtatou suggested:

Promote good governance: African nations should work to establish transparent and accountable systems of governance that promote the rule of law, protect human rights, and combat corruption.

Invest in education and human capital: Developing the skills and knowledge of the African people is crucial to building a sustainable and prosperous future for the continent. Investing in education, health care, and other social services can help to build a strong and healthy workforce.

Support local industries: African nations can promote economic development by investing in local industries rather than relying solely on exports of raw materials. This can create jobs, generate income, and promote sustainable growth.

Foster regional integration: African nations can work together to promote regional integration and reduce dependency on external actors. This can involve developing common trade policies, investing in regional infrastructure, and promoting cooperation on issues of mutual interest.

Encourage foreign investment on African terms: African nations should strive to attract foreign investment on their own terms by negotiating fair and equitable deals that benefit both the investor and the host country. This can help to promote economic development and reduce dependency on aid.

In view of its abundant resources, its ambitious youth, its vibrant society, and its geo-strategic potential, Africa needs to achieve unity and full integration at once to face the immense greed of the developed world and to defend its interest in the best possible ways.

Dr Mohamed Chtatou further discussed the question of increasingly growing neo-colonialism and related tendencies in Africa. The use of the term neo-colonialism first became widespread, particularly in reference to Africa, shortly after the decolonization process following the end of World War II, which came after the struggle of several national independence movements in the colonies. Colonialism is a policy of occupation and economic, political or social exploitation of a territory by a foreign state. Neo-colonialism refers to a situation of dependence of one state on another. This dependence is not official, as is the case between a colony and a metropolis.

The brutal exploitation of the populations as well as the appropriation of the resources of the continent by the countries of the North, are at issue. This is what justifies that today, France and other Western countries are implementing actions, notably by helping the development that colonization had slowed down. Neo-colonialism in Africa refers to the indirect and continued domination of African countries by former colonial powers, or by other external powers, through economic, political, and cultural means. Some aspects of neo-colonialism in Africa include:

Economic exploitation: African countries are often forced to rely on exports of raw materials while importing manufactured goods at higher prices, leading to a one-sided economic relationship.

Political interference: External powers often interfere in the political affairs of African countries, supporting leaders who are favourable to their interests and opposing those who are not.

Cultural domination: The cultural influence of former colonial powers can still be felt in Africa, as Western cultural values and norms are often seen as superior to traditional African values.

Debt dependency: Many African countries are burdened by debt, which often originated from loans given by external powers. These debts can lead to dependency and compromise their sovereignty.

Land and resource grabbing: External powers or corporations often acquire large amounts of land or resources in African countries, often displacing local populations and leading to environmental degradation.

There may be some contradictions and complexities when discussing and analysing Africa within the context of geopolitical changes. In terms of business, the United States and Europe stand as the traditional markets for Africa’s exports, earn significant revenues from these markets, and therefore difficult to abandon overnight. Most of the European capitals and the cities in the United States are popular holiday destinations for the African elites and the middle-class and business people. The diaspora is closely knitted by family culture. These are the essential features that unite them. The relationships were distinctively different during the political independence struggle, and now much relates to the economy.

In most cases, it is further argued that Africans speak most European languages and more or less understand Western and European cultures, with all the diversity of the West. This is one greatest ultimate advantages of preserving their cultural identity and, if possible, political sovereignty. It simply facilitates establishing and maintaining ties with friendly ties with Western and European countries.

The design for an alternative has to significantly address development concerns and the population’s living standards; these are the primary task of African leaders. Obviously, Africans are making fundamental decisions in the areas of economic development, thus, external players with investment capital and entrepreneurial partnership are seen as likely able to cement and consolidate their desires for a strong society in the global dimension. These have to be located within the frame of the African Union concept.

In other words, the African Union is far from its objectives and, contrary to its reference model, is not prospering. This sad fact raises several questions, both about African integration and about the legitimacy and usefulness of the African Union. The topic seems all the more relevant as African nations see regional integration as an important opportunity to introduce political stability and increase trade. In this regard, Kwame Nkrumah, the first president of Ghana and one of the founding fathers of African unity, said:

“There can be no real independence and economic independence and true economic, social, political and cultural development of Africa without the unification of the continent”. But how should this unification take place? Is the African Union, based on the European Union model, the only solution for Africa? Is it capable of curing Africa of all its ills? What if regional integration under the European model is not adapted to Africa?

Most African experts believe that for Africa, global stability is a necessary factor for growth, but it must first take control over its own growth agenda. Of course, Africa has to forge an intra-African trade and investment, modern agriculture and focus on industrialising as the basis for the newly created single market. As Jakkie Cilliers, Head, African Futures and Innovation, ISS Pretoria, in April 2023 argued “the continent will suffer if current efforts to instrumentalize Africans in this divided world continue.”

In his view, especially at this new stage, “Africa needs debt relief, Chinese trade and investment, expanded relations with the EU, capital from the US and more trade with the rest of the global south. It needs an agricultural revolution to ensure food security and accelerate trade integration to provide a larger, more attractive domestic and foreign capital market. Fully implementing the African Continental Free Trade Area agreement can unlock more rapid growth than any other scenario.” Meanwhile, as the elephants fight, the grass suffers, according to Jakkie Cilliers, Head of African Futures and Innovation at the Institute of Security Studies, Pretoria in South Africa.

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Tether Forays into Sustainable Infrastructure With 70% Stake in Adecoagro

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Adecoagro Tether

By Modupe Gbadeyanka

To cement its strategic expansion into sustainable infrastructure, a global technology company, Tether Investments, has acquired a 70 per cent equity stake in a leading sustainable production company in South America, Adecoagro.

The majority acquisition builds on an initial investment into the company, marking a decisive step in Tether’s long-term strategy to become a key player in global, real-world infrastructure.

With majority ownership secured, Tether is now in a position to accelerate Adecoagro’s growth and align its board and operations with a forward-looking vision focused on renewable energy, efficient resource use, and regional development.

Recall that in September 2024, Tether bought a 9.8 per cent stake in Adecoagro for about $100 million in a bid to expand beyond digital finance and into real-world infrastructure, including energy, agriculture, data, and communications.

The move was part of Tether’s growing focus on leveraging its capital and technological expertise to invest in businesses that support economic freedom and long-term resilience in emerging markets.

“Our acquisition of Adecoagro reflects Tether’s commitment to advancing sustainable, real-world infrastructure in regions where investment has historically been limited.

“By aligning with in Adecoagro’s proven expertise in agriculture and renewable energy, we are taking another concrete step toward bridging traditional industries with the future of decentralized finance and economic empowerment,” the chief executive of Tether, Mr Paolo Ardoino, said.

Also, the chief executive of Adecoagro, Mariano Bosch, said, “Tether’s investment marks a turning point for Adecoagro.

“Their commitment to building sustainable infrastructure complements our mission and opens exciting new possibilities. I thank our departing Board members for their steadfast contributions and warmly welcome the incoming directors, whose experience will help propel us forward.”

With this latest deal, Tether has changed the board of Adecoagro, with Mr Juan Sartor appointed as the new chairman.

He said, “This partnership with Tether brings a new era of opportunity for Adecoagro. We look forward to scaling the company’s impact in sustainable agriculture and energy, reinforcing capital discipline, and unlocking long-term value across South America.”

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Results of the IV Forum Russia-Africa: What’s Next?

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Russia-Africa,Youth Forum

By Kestér Kenn Klomegâh

“The Fourth Forum “Russia-Africa: What’s Next?”, which took place from April 22 at MGIMO University of the Russian Foreign Ministry, concluded on April 25, 2025. The event confirmed its status as an authoritative platform for discussing key areas of cooperation between Russia and the countries of the African continent. This year, the Forum brought together 1,500 participants, including representatives of 41 African countries.

The business program included more than 30 events, including expert and panel discussions, round tables, creative brainstorms and other interactive sessions devoted to education, sports and space diplomacy, energy partnership, scientific cooperation, humanitarian interaction and information security. The Forum also included sessions organized jointly with the Center for Global and Strategic Studies and the Council of Young Scientists of the Institute of Africa of the Russian Academy of Sciences, the OIE Laboratory of the Institute of Europe of the Russian Academy of Sciences, the I.S. Turgenev, as well as the MGIMO Law Club.

Participants had the opportunity to exchange opinions and develop new approaches to developing relations between Russia and Africa. Particular attention was paid to the sports and cultural program, which allowed participants to immerse themselves in the atmosphere of the African continent and experience its diversity and color.

On the first day of the Forum, the II Russian-African Spartakiad was held, which included sports competitions in football, volleyball, and basketball. Dozens of heads of African diplomatic missions accredited in Moscow, as well as representatives of various Russian ministries and departments, attended the grand opening of the IV Forum “Russia-Africa: What’s Next?”.

The ceremony was hosted by I.V. Tkachenko, Attaché of the Department of African States (sub-Saharan Africa) of the Russian Ministry of Foreign Affairs, Executive Secretary of the Forum’s Program Committee. Russian Foreign Minister S.V. Lavrov addressed the participants with a video message. Advisor to the President of the Russian Federation A.A. Kobyakov also delivered a welcoming speech. Among the honored guests were MGIMO Rector, Academician of the Russian Academy of Sciences A.V. Torkunov, Deputy Minister of Foreign Affairs of the Russian Federation M.L. Bogdanov, Russian Senator, member of the Federation Council Group for Cooperation with African Parliaments A.V. Voloshin, Chairman of the State Duma Committee on International Affairs L.E. Slutsky, Honorary President of the Institute of African Studies of the Russian Academy of Sciences A.M. Vasiliev, Deputy Director General of ITAR-TASS M.V. Petrov, Head of the Department for Work with Government Agencies and Diplomatic Missions of African Countries, Consultant on Interaction with Africa Jose Fernando Sambo, as well as Chairman of the Council of Young Diplomats of the Russian Foreign Ministry E.M. Akopyan.

During his speech, Igor Tkachenko, together with MGIMO Rector A.V. Torkunov and Deputy Minister of Foreign Affairs of the Russian Federation M.L. Bogdanov, put forward the initiative to organize a Youth Day as part of the upcoming Russia-Africa summit in 2026. This proposal, aimed at strengthening intercultural dialogue and developing youth cooperation between the countries, received the support of the event participants.

Vice-Rector for Youth Policy, Social Work and International Relations Stanislav Igorevich. In his speech, Surovtsev emphasized that one of MGIMO’s main priorities is training new generation leaders who are ready to participate in implementing large-scale cooperation projects with African countries in all areas.

Stanislav Igorevich also noted that MGIMO traditionally acts in the forefront of educational partnership with Africa, relying on the rich traditions that were laid down in Soviet times and have survived to this day. Leading Russian and foreign experts took part in the Forum, including Director of the Department of Partnership with Africa of the Russian Foreign Ministry T.E. Dovgalenko, Deputy Director of the Department of International Organizations of the Russian Foreign Ministry V.E. Sergeev, Ambassador-at-Large of the Russian Foreign Ministry S.S. Belousko, State Duma deputies N.V. Novichkov, D.V. Kuznetsov, I.A. Filatova, representatives of major news agencies, as well as business and scientific circles.

The headliners of the Forum were the consultant on interaction with Africa Jose Fernando Sambu, the executive chairman of the African Youth Commission Marubini Muswede and the CEO of StudEx Group Tumelo Ramaphosa. The following exhibitions were presented on the sidelines of the IV Forum “Russia-Africa: What’s Next?”: “Africa: Past and Present…”, “Chroniclers of History”, and “Explore Uganda”, organized jointly with the Moscow Financial and Law Academy, the magazine “New Regions” and the Embassy of the Republic of Uganda, respectively.

The grand opening of the exhibitions took place on April 23 with the participation of the Rector of the Moscow Financial and Law Academy A.G. Zabelin, the Vice-Rector of MGIMO S.I. Surovtsev, the Deputy Executive Secretary of the Forum’s Program Committee, MGIMO analyst V.V. Zhuchkov and the Chairman of the Student Secretariat of the Forum V.G. Avetisyan.

The final event of the Forum was the Russian-African concert, which brought together talented performers from Russia and African countries on one stage. The cultural program included a variety of musical and dance numbers reflecting the rich heritage, culture and traditions of both regions.

Following the IV Forum, a number of fundamental documents were signed, including agreements on cooperation in the field of education and science with the Africa House organization and the Madagascar-Russia Brotherhood Association.

During the closing ceremony, consultant on interaction with Africa José Fernando Sambou, executive chairman of the African Youth Commission Marubini Muswede, as well as attaché of the Department of African States (Sub-Saharan Africa) I.V. Tkachenko and deputy executive secretary of the Forum’s Program Committee, MGIMO analyst V.V. Zhuchkov signed the final resolution of the Forum.

The partners of the event were the Russian Ministry of Foreign Affairs, Rossotrudnichestvo, the Roscongress Foundation, the Directorate of the World Youth Festival, as well as CMR Bank, Priority 2030 and the MGIMO Endowment. The general information partner was TASS, media coverage was also provided by Russia Today and the African Initiative. IV Forum “Russia-Africa: What’s Next?” became a confirmation of the mutual interest of the parties in developing cooperation and identified promising areas for further joint work.

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A7 African Cargo Lines Connecting West Africa With Russia

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A7 African Cargo Lines

By Kestér Kenn Klomegâh

Today, boosted by the Kremlin’s diplomatic push and support from the Ministry of Foreign Affairs’ Department of Partnership, Russian companies are moving with multitude of development projects and corporate entrepreneurial investments into Africa. St. Petersburg summit has also charted the roadmap cum well-designed strategies for boosting the entire bilateral economic cooperation with the continent whose endowed resources include the huge human capital.

The geography of Russia-African economic cooperation is steadily expanding. As previously reported, the Russian Industry and Trade Ministry, since the beginning of 2025, approximately 150 Russian companies have moved into Africa. And with Africa, ready to engage in priority partnerships, the Russian registered company called A7 African Cargo Lines LLC (A7 ACL, Moscow) has started its logistics and shipping services to West Africa. According to the Unified State Register of Legal Entities, A7 African Cargo Lines LLC (A7 ACL, Moscow), was registered on April 17, and has its primary activity listed as railway freight transportation.

“We intend to operate in West Africa,” the Board Chairman Andrei Severilov, told Interfax regarding the company’s establishment. “At the first stage, with the assistance of the Russian trade mission in Nigeria, we are implementing a project to establish a direct shipping line,” Severilov said. According to the news report, the launch of a maritime route between Novorossiysk and Nigeria’s port of Lagos is planned for mid-June, with two container ships chartered for the line’s inauguration, each with a capacity of 700 twenty-foot equivalent units (TEU). Future plans also include establishing maritime connections with Senegal (Dakar port).

Severilov previously owned a 23.8% stake in PJSC Far Eastern Shipping Company (FESCO, the parent company of FESCO Transportation Group). In September 2024, Severilov announced his intention to re-enter the transportation business and established the asset management company A7 African Cargo Lines LLC (A7 ACL, Moscow), with a focus on Africa and primarily targeting to get substantive returns, in terms of, profits. It’s unique decision to take up logistics connecting Africa’s transport market is poised for significant trade growth, by transporting goods across the region and for exports to Europe.

By building a new shipping line that would connect the West Africa, first through Nigeria promises raising trade. Nigeria is Africa’s most populous nation and its largest economy. Nigeria is a key member of the African Continental Free Trade Area (AfCFTA), which is fostering intra-African trade and economic integration. In addition to above factors, Russian companies are showing increased interest in Nigeria, for example in reviving the countries largest steel plant. There is also interest in investing in Nigeria’s energy sector.

Undoubtedly, establishing A7 African Cargo Lines LLC (A7 ACL, Moscow) could be an explicit opportunity for promoting trade by its logistics infrastructure. Reports indicate that Russia’s exports to Nigeria currently amount to about $1.51 billion, mainly consisting of refined petroleum, wheat, and malt, while Nigeria exports a small amount to Russia, primarily cut flowers, other oily seeds, and nuts.

Further to that, the overall Africa’s trade statistics at the end 2024, soared to a record of $24.5 billion from the previous figure, approximate $20 billion that came up during the special panel discussions in 2023 when the second Russia-Africa summit was held in St. Petersburg, the second largest city in the Russian Federation.

By the next Russia-Africa summit slated for 2026, with high anticipation of more Russian enterprises dominating the African landscape, in spite of the existing complexities and challenges would extend or broaden the sphere of economic influence in the context of geopolitical power shifts being capitulated by the Western powers and President Donald Trump of the United States.

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