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Are China and Russia Giant Competitors in Africa?

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Russia China Africa

By Kestér Kenn Klomegâh

Russia has to acknowledge the difference between illusions and realities in the geopolitical games. It has to recognize and thoroughly analyse and manage the current economic rivalry and competition among foreign players across Africa. It has, over these several years, been taking steps to uplift or broaden economic cooperation inside Africa.

In late June, Interfax News Agency reported, sourcing Roscosmos Head Yury Borisov, that Russia would sign a full-scale space cooperation agreement with Africa during the July summit. “We are touring African states ahead of this forum (Russia-Africa) and have agreed with the colleague from the Egyptian agency to draft a full-scale agreement on a broad range of possible relations in the space industry,” the press service quoted Borisov as saying.

In another related development, Russian giant Gazprom has shown a preparedness to help African countries develop gas production. It indicated this interest several years ago; Gazprom officials have visited several African countries in connection with this energy sector. It has signed an agreement referred to as NiGaz with the Federal Republic of Nigeria. The title of the project offered absolutely nothing, no gas production until today in this West African country.

Research shows that Nigaz was established in 2009 as a joint venture between the Russian gas company Gazprom EP International B.V. (100% affiliate of OAO Gazprom) and the Nigerian National Petroleum Corporation. It planned to invest $2.5 billion to build oil and gas refineries, pipelines and gas power stations in Nigeria. Launching the company, Dmitry Medvedev, then president, announced his intention to form a major energy partnership with Nigeria at a meeting in Abuja with Nigerian president Umaru Yar’Adua.

Gazprom is prepared to help develop natural gas production and use in African countries, the Russian gas giant said at an international roundtable in Johannesburg on the benefits of gas for consumers and the economy. The roundtable was attended by representatives of business communities, experts and reporters from nine African countries, including Algeria, Angola, Ghana, Egypt, Kenya, Mozambique, Nigeria, Tanzania and South Africa.

“Taking into account the South African government’s policy to decarbonize the economy, gas could become an effective means of meeting demand for energy since renewable energy sources cannot ensure uninterrupted supplies. In this regard, I believe that Gazprom’s experience implementing liquefied natural gas and gas pipeline construction projects could be of interest to South African partners,” Russian Ambassador Ilya Rogachev was quoted as saying in the press release.

“Greater use of natural gas will help Africa solve a whole range of problems, from economic to social and environmental. We believe that Africa should fully discover the advantages of this fuel for itself,” the head of Gazprom’s foreign economic activities department, Dmitry Khandoga, said.

“We see potential in cooperation with African countries and can offer our unique experience and technological know-how. Gazprom is open to discussing constructive and mutually beneficial proposals that would facilitate economic development and improve the lives of people in African countries,” Khandoga said.

The chairman of the African Energy Chamber, NJ Ayuk, said more than 600 million people in Sub-Saharan Africa do not have electricity, and 900 million people, most of them women, do not have access to clean cooking technologies. Either they do not exist, or they are insufficient, and solving this problem alone is sufficient reason to use the continent’s rich gas reserves, he said.

In Africa, which needs industrialization, affordable and abundant natural gas will help create many new jobs and opportunities for capacity building, economic diversification and growth, Ayuk said.

The participants discussed the role of natural gas in Africa’s sustainable development. It was noted that the availability of energy remains a problem in most countries on the continent, and its consumption is several times lower than the global average.

Meanwhile, experts estimate that Africa will account for more than 60% of global population growth by 2050. Along with urbanization in the region, there is expected to be substantial economic growth, which will be accompanied by a twofold increase in energy consumption. Demand for natural gas is expected to grow by 150%.

Increasing natural gas production will help meet the growing energy demand, roundtable participants said. “However, at present most of the gas extracted here is exported. For example, one in three residents of Nigeria, Africa’s largest LNG exporter, does not have access to energy. Therefore, it is the accessibility of energy for industry and households that will be of foremost importance for Africa’s dynamic development,” Gazprom said.

With the help of China, a number of African countries, through bilateral agreements, now have the capacity to assemble, integrate and test satellites. This will enable them to position themselves as the continent’s space industry powerhouse. Quiet recently, Egypt took delivery of two China-funded prototypes for the MisrSat-2 satellite project on June 25.

The satellites will be assembled and tested at a centre, also financed by China, at the Egyptian Space Agency near the country’s new capital city. China provided a $74 million grant for the project, as well as $68 million for the satellite assembly, integration, and test centre to be built.

Over the past three months, engineers from Egypt and the China Aerospace Science and Technology Corporation have been conducting tests on three MisrSat-2 satellite models – two prototypes and a flight model.

Chinese ambassador to Egypt, Liao Liqiang, said Egypt would be the first African nation that could assemble, integrate and test satellites. “Egypt is the first country to which China handed over the satellite cooperation project outside China, and the first country with which China cooperated to complete the large-scale trial operation of the satellite outside China,” Liao said at the ceremony to present the grant to the Egyptian government.

Media reports further said that Beijing was keen to work with Egypt to advance cooperation in space and to continue deepening the comprehensive strategic partnership between the two nations. The satellite is expected to be launched from China in October.

Nigerian space scientist Temidayo Oniosun said China had taken a prominent role in partnering with African institutions to develop their space programmes. He said that in addition to Egypt, China had bilateral agreements with 13 other African countries covering space technology, training and ground infrastructure.

“Like other countries such as Russia, the United States and Europe, China is always exploring new business opportunities on the continent,” Oniosun said, adding that the African space industry was growing – generating about $20 billion in annual revenue – and everyone wanted a slice of it. “It is also a critical tool for international diplomacy, and this defines China’s long-term plan on the continent,” he said.

“Competition among key African states ‘racing’ to become leaders in this sector, and competition among external players – especially China and France – to secure contracts in Africa,” noted President Abdel-Fattah el-Sisi. In fact, Egypt is strategically placed to be a centre for satellite assembly since it has access to Europe and Africa. It is also bordered by the Mediterranean Sea to the north and the Red Sea to the East.

China had 28 space agreements with African nations – the most of any country – spanning everything from earth observation and capacity development to satellite navigation, communication and astronomy. It boosts cooperation on space technology, promotes Africa’s space infrastructure development, and uses the space industry to drive social development and improve people’s living standards.

Last year the South African Institute of International Affairs, a reputable policy think tank, said in its report that “Russia looks more like a ‘virtual great power’ than a genuine challenger to European, American and Chinese influence.”

It also highlighted the fact that Russia is using Africa as a geopolitical playing field, soliciting support for invading neighbouring Ukraine, and warned African leaders that Russia might not, in practical terms, deliver on its pledges and implement promptly bilateral agreements.

Professors Irina O. Abramova and Leonid L. Fituni, both from the Institute for African Studies under the Russian Academy of Sciences, in a report last year, reminded the authorities, who are squeezed between illusions and realities, about their policy ambitions in Africa. And that high-ranking Russian officials need to change their approach towards Africa.

The fact that African countries consider Russia a reliable economic partner, and it is necessary to interact with African public and private businesses on a mutually beneficial basis. In this regard, Russian initiatives should be supported by real steps and not be limited to verbal declarations about the “return of Russia to Africa,” especially after the Sochi gathering, which was described as very symbolic, they wrote in the report.

The first symbolic first summit at the Black Sea city of Sochi, indeed, fêted heads of state from 43 African countries and showcased Moscow’s great power ambitions. At the tail-end of it, both Russia and Africa adopted a joint declaration, a comprehensive document that outlines the key objectives and necessary tasks to raise assertively the entire relations to a new qualitative level. Several agreements were also signed with African countries. And yet Russian officials are desirously looking to sign more new agreements during the next summit.

And, of course, this late July, African leaders and corporate businesses will be heading to St. Petersburg, the second largest city in Russia, primarily to discuss ways to end the Russia-Ukraine crisis and its related adverse impact on Africa’s economy and across the world. Secondly, they will be looking strategically to negotiate for “no-cost delivery” of grains and wheat and, most possibly, access to advanced technology and investment in the economic sectors. Third, close-ups of the two-day gathering with memorable group photographs.

What do potential external players need? What does Africa Want from foreign countries? Beyond signing bilateral agreements, what next? With the emerging challenges and geopolitical changes in this evolving multipolar world, it is certainly true that Russia has to take practical steps towards interconnecting, to build better multi-dimensional relationships with Africa.

In the 21st century, Africa does not need anti-Western rhetoric. It has to address sustainable development goals, especially rising youth unemployment, food security, energy deficits, and improved infrastructure. Simply anti-Western slogans will never facilitate its economic development. The best way to fight ‘neo-colonialism’ is to invest in competitive sectors where the United States and Europe are showing similar interests.

On a broader scale, the African Union (AU), an organization which unites sovereign states across Africa, also needs to adopt a new policy strategy with Russia. In reality, and taking cognizance of the huge untapped natural resources, and combined with the available human capital, Africa’s sectors are presently crying for drastic economic transformation to take care of the increasing demands of the estimated 1.4 billion population.

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Tether Relocates Entity, Subsidiaries to El Salvador

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Tether

By Adedapo Adesanya

Stablecoin issuer, Tether Holdings Limited, will move its corporate entity and subsidiaries to El Salvador after securing a digital asset service provider (DASP) license in the Central American nation.

According to a statement on Monday, this marks a step in Tether’s journey to foster global Bitcoin adoption banking on El Salvador’s history with cryptocurrency.

“This strengthens Tether’s position in one of the world’s most forward-thinking markets and fosters the development and implementation of cutting-edge solutions more efficiently in a dynamic environment where innovation thrives. It underscores the company’s dedication to leveraging Bitcoin’s transformative potential as it drives growth in emerging markets,” the statement said.

The company said El Salvador is rapidly establishing itself as a global hub for digital assets and technology innovation.

“By embracing blockchain technology and digital currencies, El Salvador is fostering an ecosystem that encourages innovation and attracts investment in the broader financial and technology sectors.

“This strategic positioning is helping to shape the future of financial systems, making the country a key player in the global fintech landscape,” Tether added.

Speaking on this, Mr Paolo Ardoino, CEO of Tether said, “This decision is a natural progression for Tether as it allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets.

“El Salvador represents a beacon of innovation in the digital assets space. By rooting ourselves here, we are not only aligning with a country that shares our vision in terms of financial freedom, innovation, and resilience but is also reinforcing our commitment to empowering people worldwide through decentralized technologies.”

As it takes these next bold steps, the company looks forward to working closely with El Salvador’s government, businesses, and communities to shape the future of financial technology.

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African Union’s Summit Leaves Little Hope to Advance Agricultural Transformation in Africa

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African Union's Summit

By Kestér Kenn Klomegâh

Perhaps it was the most crucial summit held on January 9th to 11th in 2025 with a focus to raise agricultural productivity, increase public investment in agriculture, and stimulate economic growth through agriculture-led development, and ultimately seeks pathways to support African countries eliminate continent-wide hunger and reduce growing poverty.

During these past several years, African governments have taken delight in increasing imports of basic agricultural produce which could be cultivated locally.

Import substitution policy is seemingly not part of any discussions during their ministerial meetings, instead devoted time on how to approve huge budgets for agricultural products from foreign sources.

It has also taken the African Union (AU) years to initiate an agricultural programme directed at ensuring food security and cutting poverty in the continent. This cutting-edge initiative forms an integral part of the broad AU Agenda 2063.

Considered as the most ambitious and comprehensive agricultural reform effort ever undertaken in Africa, it was first launched in 2003 following the Maputo Declaration and reaffirmed in 2014 in Equatorial Guinea with the Malabo Declaration.

It has emerged as the cornerstone framework for driving agricultural transformation across Africa and represents a fundamental shift toward development that is supposed to be fully owned and directed by various African governments.

That, however, the early January Kampala summit, attended by Ministers of Agriculture from the AU’s 55-member states, thoroughly deliberated on implementing aspects of the 10-year programme, primarily to be pursued, in different stages, by stimulating investment, fostering partnerships, and empowering vulnerable smallholder farmers. Notably, the programme is set to run from 2026- 2035.

Without a single doubt, the drafting the programme which underwent a rigorous review process, took a full decade to complete; from 2014, in Equatorial Guinea with the Malabo Declaration to Kampala, Uganda, in 2025. And that what is appropriately referred to as an effective continental organization – the African Union.

The drafting of the strategy was undertaken by a broad spectrum of stakeholders including the Regional Economic Communities, African experts and researchers, farmers’ cooperatives and organizations, development partners, parliamentarians, private sector groups, women in agriculture and youth groups.

According to the official release indicated that Africa’s food security remains a pressing challenge, exacerbated by climate change, conflicts, rapid population growth, and economic disruptions.

Currently, over 280 million Africans suffer from chronic hunger while food systems struggle to meet rising demands.

Therefore, the 10-year programme is planned to address these issues by promoting climate-resilient agriculture, improving infrastructure, reducing food waste, and enhancing regional trade in agricultural goods. This is in a bid to equip Africa to feed itself sustainably.

At the Kampala ministerial meeting, Prime Minister of the Republic of Uganda, Robinah Nabbanja, while recalling important statistics that point to the richness of African soils, abundance of arable land and fresh water, and a 60% population engaged in agriculture, expressed the highest shame that the continent’s food imports cost up to $100 billion.

“This summit should come up with concrete proposals on how Africa can come out of such an undesirable situation. For us to guarantee our future as Africans, we must feed ourselves,” she told the gathering in a tectonic language.

The Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment at the African Union Commission, Ambassador Josefa Sacko, commented on the importance of the strategy, saying it “aims to boost food production, expand value addition, boost intra-Africa trade, create millions of jobs for the youth and women, build inclusive agrifood value chains, and build resilient and sustainable agrifood systems that will withstand shocks and stressors now and in the future.

Furthermore, we are dedicated to strengthening governance through evidence-based decision-making and enhancing accountability among all stakeholders. Inclusivity is a fundamental aspect of our approach; we will ensure that women, youth, and marginalized groups have access to resources, thereby facilitating their equitable participation in the agrifood sector.”

Dr Girma Amente, Minister of Agriculture of the Federal Democratic Republic of Ethiopia, whose Prime Minister Dr Abiy Ahmed, is the Champion of the Comprehensive Africa Agriculture Development Programme (CAADP) Strategy and Action Plan 2026- 2035, highlighted how Ethiopia has cascaded CAADP into the national agricultural investment plan (NAIP).

“The plan emphasizes the importance of increasing public investment in agriculture, which is crucial for achieving the CAADP target. Ethiopia has significantly increased its agricultural budget allocation and has demonstrated its commitment by meeting the 6 per cent annual growth target of CAADP.

The implementation of the National Agricultural Investment Plan (NAIP) has contributed to consistent improvements in annual agricultural production, elevating both crop yields and overall food and livestock production, and also performed better in addressing the resilience targets of the CAADP,” explained Girma Amente.

In his turn, Uganda’s Minister of Agriculture, Animal Industry and Fisheries, Frank Tumwebaze, who led the drafting of the CAADP Strategy and Action Plan in his capacity as the Chair of the Specialised Technical Committee of the AU on Agriculture, Rural Development, Water and Environment, stressed the need to move into implementation of the strategy, as soon as the summit ends.

“The planning phase of the Kampala CAADP Agenda ends during this Summit. We must, therefore, move into implementation and execution mode. It is by focusing on execution that we can make a meaningful impact to the continent and its people. We must move, not with the times, but ahead of times.

“This calls for advances in technological research and practices, building agricultural systems that are resilient to climate change and other shocks, agro-industrialization, and the like,” according to Frank Tumwebaze.

The three-day Extraordinary Summit in Kampala was organized to adopt the 10-Year CAADP Strategy and Action Plan to advance agricultural transformation and food systems in Africa. But that was dominated by high-level speeches, with little hope of concretely addressing key questions relating to ensuring food security in the continent.

The majority of African countries hold steadfastly to maintain the status quo, ready to allocate large part of their annual budgets to increase imports. There was little hope for any significant results and remarkable change in driving agricultural transformation across Africa after second day of the summit, dedicated to deliberations by Ministers of Foreign Affairs, and the 11th January meeting by Heads of State and Government.

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Justin Trudeau Resigns as Canadian Prime Minister

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Justin Trudeau

By Adedapo Adesanya

The Prime Minister of Canada, Mr Justin Trudeau, has resigned as the country’s ruling Liberal Party leader amid growing discontent in the North American country.

Mr Trudeau’s exit comes amid intensified political headwinds after his finance minister and closest political ally abruptly quit last month.

Mr Trudeau, who said he would remain in office until a new party leader is chosen, has faced growing calls from within his party to step down.

Polls show the Liberals are set to lose this year’s election to the Conservative opposition.

“As you all know, I’m a fighter,” Mr Trudeau said on Monday, but “it has become obvious to me with the internal battles that I cannot be the one to carry the Liberal standard into the next election,” he stated.

His exit comes as Canada faces tariff threats from US President-elect, Mr Donald Trump.

The Republican and his allies have repeatedly taunted Mr Trudeau in recent weeks, with Mr Trump mocking Canada as the “51st state” of the US.

Mr Trudeau also lamented that the Conservative leader, Mr Pierre Poilievre, is not the right vision for Canadians.

“Stopping the fight against climate change doesn’t make sense,” he tells reporters, adding that “attacking journalists” is “not what Canadians need in this moment”.

“We need an ambitious, optimistic view of the future, and Pierre Poilievre is not offering that.”

Mr Trudeau also said he was looking forward to the fight as progressives “stand up” for a vision for a better country “despite the tremendous pressures around the world to think smaller”.

He also clarified that he won’t be calling an election, saying the Canadian parliament has been “seized by obstruction, filibustering and a total lack of productivity” for the past several months.

“It’s time for a reset,” he said, adding that, “It’s time for the temperature to come down, for the people to have a fresh start in parliament, to be able to navigate through these complex times.”

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