World
Europe and Africa Forging A New Relationship
By Kestér Kenn Klomegâh
Late January 2024, prominent African leaders and corporate business executives attended the summit intended to forge a new relationship between Europe and Africa. It was hosted by Italy’s hard-right Prime Minister Giorgia Meloni who who came to power in 2022. The significance of the summit was to reshape and place on track the European policy priorities and, at the same time, to highlight economic diplomacy and fix the long-trailed systematic development plans for Africa.
Within the context of the geopolitical changes, African political leaders have shown high enthusiasm and pragmatism, in developing relations with external countries. As trends in their approach with a new sense of diligent optimism show, African leaders fundamentally support the current global reconfiguration. Far beyond analytical talks of the scramble for resources by external powers, Africa is noticeably glued to the United States and Europe, while capitalizing on laudable offers from other players such as China, Russia, India, Turkey and those from the Arab world.
Given the current situation in the world, Africa has to step forward to harvest, with appropriate mechanisms and transparent procedures, concrete development-finance agreements, infrastructure engagements, trade and economic cooperation and above all humanitarian assistance for the most disadvantaged segments of the population that these external players offer at these summits. African leaders have to tone down all ideological manifestations and capitalize on existing challenges, contradictions and complexities of these geopolitical players including the United States, Europe Asia and Latin America to address instability, and socio-economic deficits and effectively coordinate strategic policies toward achieving sustainable development in this multipolar world.
At least during the past two decades, Africa’s invitations to international summits and conferences have been primarily due to, perhaps, a complex relationship with China. China started when Russia exited, and China has landmark achievements across the continent. Russia is struggling to regain or retrieve part of its Soviet-era influence. Now, the United States and Europe aim to counter the fast-rising influence of China and Russia.
Despite the lengthy process of persuasion and consensus building on previous partnerships, Europe still faces challenges. Late January 2024, Italy became the European country of convergence, with Italy as a key bridge between Africa and Europe. Approximately two dozen African leaders, the African Union, top European Union and United Nations officials and representatives from international lending institutions were in Rome for the summit, the first major event of Italy’s Group of Seven presidency.
Meloni’s so-called “Mattei Plan” is named after Enrico Mattei, the founder of Eni – Italy’s state-owned energy giant. In the 1950s, he advocated a cooperative stance towards African countries, helping them to develop their natural resources. “The basis of the Mattei Plan is a new approach – non-predatory, non-paternalistic but also not charitable,” Meloni told state-run RAI station. “It’s an approach of equals, to grow together.”
Political Diplomacy
Italy being part of the European Union has played on historical heart-settings with Africa. Over the past years, it has forged multi-dimensional cooperation as part of the foreign policy, and similarly the members of the European Union. Now these European Union members are pushing hard to showcase the future trajectory in their individual and collective relations with Africa. Europe promises to develop large-scale investment in various sectors, especially in the energy sectors in the continent, and straining efforts at curbing migration of Africans to Europe.
A former Prime Minister of the Republic of Chad and now the African Union Commission Chairperson, Moussa Faki Mahamat, jolted his Italian hosts with sharply worded comments at the opening of the summit dubbed “A Bridge for Common Growth” held in Rome. Rome holds the presidency of the G7 group of nations this year and has vowed to make African development a central theme, in part to increase influence in a continent where powers such as China, Russia, India, Japan and Turkey have been expanding their political clout.
“We are not beggars, our ambition is much higher, we want a paradigm shift for a new model of partnership that can pave the way towards a fairer and more coherent world. You can well understand that we can no longer be satisfied with mere promises that are often not kept,” he told the gathering.
With the rapidly changing times, Europe has to wake up to the immense potential of Africa. European Union and individual members have made financial pledges but seriously lack practical evidence of undertaking projects. And African leaders at the summit were frank, unreservedly endorsed criticisms of making distinction between rhetoric and reality as suggested in remarks by the AU Chairperson Moussa Faki.
Reports pointed to Mahamat who categorically emphasized the necessity for Africa to be consulted on priorities and stressed the urgency of moving from promises to concrete actions. He underscored the frustration with unfulfilled commitments, calling for a more results-oriented approach.
The plan, which includes more than €5.5 billion ($6 billion) in investments, credits, gift operations, and guarantees – including building a training centre on renewable energy in Morocco, education projects in Tunisia, and other projects in Algeria, Mozambique, Egypt, the Republic of Congo, Ethiopia and Kenya – was not well received by the African leaders in attendance, who said that they had not been consulted in the formation of the plan.
Italy’s first African-born parliamentarian Aboubakar Soumahoro, who is deputy and coordinator of the parliamentary intergroup for Sub-Saharan Africa, also criticized the plan.
Cristiano Maugeri of Action Aid Italia lamented that the government had excluded any consultation with civil society groups active in African development to formulate the plan, and said that it regardless represented something of a repackaging of existing projects. “We are talking about initiatives that have already been presented in other contexts, only with a new stamp on them,” he said.
The UN Deputy Secretary-General Amina Mohammed praised Italy for focusing on the key pillars of energy and food systems, saying they complement an approach already mapped out by the African Union. But she lamented that overall, the 2030 targets of the globally-approved U.N. Sustainable Development Goals are “falling woefully short” and further urged the government of Italy to make such deep, effective, and equal partnerships a reality, and to use its presidency of the G7 to work with other countries to do likewise.
Given the fact that Italy currently holds the rotating chair of the Group of Seven (G7) major Western powers, the narrative around Africa has to change, to promote African interests during the G7 presidency. Europe has to take advantage of the largest renewable energy resources the vast arable land for agriculture, and the possibility of industrial production for the latest – the African Continental Market (AfCFTA).
African-Italian Negotiations
Italian Prime Minister Giorgia Meloni unveiled a long-awaited initiative aimed at helping African countries prosper in return for curbing illegal immigration, pumping a preliminary 5.5 billion euros ($5.96 billion) into the scheme. The schemes include efforts to develop African agribusiness and mobilize Italian transport and major works companies.
During a post-summit news conference, Meloni acknowledged the importance of translating promises into tangible projects on the ground. With more than 25 countries in attendance, European Commission President Ursula von der Leyen and representatives of UN agencies and the World Bank, Meloni explained the plan would initially be funded to the tune of €5.5 billion, some of which would be loans, with investments focused on energy, agriculture, water, health and education.
The prime minister, however, emphasized the need for collaboration with the private sector and international bodies, such as the European Union, to ensure the initiative’s success.
Energy needs stand at the core of Italy’s initiative, with the country aiming to serve as a gateway for African natural gas into European markets. The ambitious plan gains significance in the context of the European Union’s efforts to diversify energy supplies following Russia’s invasion of Ukraine, the former Soviet republic. Meloni outlined a series of pilot projects in individual countries that would enable Africa to become a major exporter of energy to Europe, helping it reduce its dependence on Russian energy.
European Global Gateway
In the previous years, the European Union has sought to build strongly on its existing economic and trade relationship with Africa. It held the last summit in February 2022, with African leaders and the African Union. It has been attempting to bring Africa and Europe closer together for strategic, long-term footing to develop a shared vision for EU-Africa relations in a globalized world.
In an official document, it said it would (i) Support AfCFTA implementation and the green transition; (ii) Improve trade and investment climate between the EU and Africa; (iii) Reinforce high-level public private dialogue; (iv) Enhance long-term dialogue structures between EU and Africa Business Associations; (v) Unlock new business and investment opportunities, including in the areas of manufacturing and agro-processing as well as regional and continental value chains development.
Referred to as the Joint EU-Africa Strategy, the document takes into cognizance the most common interests such as climate change, global security and the achievement of the United Nations Sustainable Development Goals (SDGs).
The potential to increase trade, economic growth, job creation and integration across the continent remains enormous, because today, only around 17% of African trade flows take place between African countries. “Of course, there will be challenges along the way, and the EU stands ready to help. We want to share the lessons from our process of economic integration, and with our new Global Gateway Strategy, we have demonstrated that we are ready to support massive infrastructural investment in Africa,” Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade as well as chairing the Commissioners’ group on an Economy that Works for People, noted when the EU-African Union Summit was held in February 2022.
Dombrovskis said: “We continue to support the implementation of the African Continental Free Trade Area. Achieving this will represent a historic milestone. the EU has a diverse range of trade agreements with countries in Africa. These are dynamic partnerships, in which we advance step-by-step for our mutual benefit. We aim to widen and deepen these economic and partnership agreements with those African countries that are willing to do so.”
The EU-Africa summit focuses on the search for more effective ways to scale-up sustainable development in Africa, according to various reports. Due to the shifting of geopolitics, the continent now increasingly turning into an intersection of global power players and it faces a precarious complex future. But what is important here is that the European players have to incorporate most aspects of partnership directions (adopt more effective ways to scale up sustainable development in Africa) within the framework of the 2030 Agenda of the United Nations and Agenda 2063 of the African Union.
By Kestér Kenn Klomegâh
With heightening of geopolitical interest in building a new Global South architecture, Ghana’s administration has to consider joining the ‘partner states category’ of BRICS+, an association of five major emerging economies (Brazil, Russia, India, China and South Africa). The National Democratic Party (NDC) and the elected President John Mahama, while crafting future pathways and renewing commitments over democracy and governance, designing a new economic recovery programme as top priority, could initiate discussions to put Ghana on higher stage by ascending unto BRICS+ platform.
Certainly, ascending unto BRICS+ platform would become a historical landmark for Ghana which has attained prestigious status in multilateral institutions and organizations such as the Economic Community of West Africa States (ECOWAS), the African Union (AU), the United Nations and also from Jan. 2025 has become the head of the Commonwealth Secretariat.
Unlike South Africa, which has acquired a full-fledged membership status in 2011, and Ethiopia, Nigeria and Uganda were taken into the ‘partner states’ category, Ghana has all the fundamental requirements to become part of BRICS+ alliance. It is necessary to understand the basic definition and meaning of BRICS+ in the context of the geopolitical changing world. The BRICS alliance operates on the basis of non-interference. As an anti-Western association, it stays open to mutual cooperation from countries with ‘like-minded’ political philosophy.
BRICS members have the freedom to engage their bilateral relations any external country of their choice. In addition to that, BRICS+ strategic partnership has explicitly showed that it is not a confrontation association, but rather that of cooperation designed to address global challenges, and is based on respect for the right of each country to determine its own future.
South Africa and other African countries associated with BRICS+
South Africa is strongly committed to its engagement in the BRICS+. It has, so far, hosted two of its summits. In future, Egypt and Ethiopia would have the chance to host BRICS+ summit. Egypt and Ethiopia have excellent relations with members, and simultaneously transact business and trade with other non-BRICS+, external countries.
The New Development Bank (BRICS) was established in 2015, has financed more than 100 projects, with total loans reaching approximately $35 billion, and it is great that the branch of this bank operates from Johannesburg in South Africa. Understandably, South Africa can be an investment gateway to the rest of Africa. In 2021, Bangladesh, Egypt, the United Arab Emirates and Uruguay joined the NDB.
The BRICS Bank works independently without any political strings, and has further pledged financial support for development initiatives in non-BRICS+ countries in the Global South. Its tasks include investing in the economy through concessional loans, alleviating poverty and working towards sustainable economic growth. According to President of the BRICS New Development Bank, Dilma Rousseff, “The bank should play a major role in the development of a multipolar, polycentric world.”
Ethiopia and Egypt are the latest addition to BRICS+ association from January 2024. South Africa and Egypt being the economic power houses, while Ethiopia ranks 8th position in the continent. In terms of demography, Nigeria is the populous, with an estimated 220 million people while Uganda has a population of 46 million. South Africa, Ethiopia and Egypt are full members, Algeria, Nigeria and Uganda were offered ‘partner states’ category, but have the chance to pursue multi-dimensional cooperation with external countries. BRICS+ has absolutely no restrictions with whom to strike bilateral relationship.
From the above premise, Ghana’s new administration, within the framework of BRICS+, could work out a strategic plan to establish full coordination with and request support from African members, including South Africa, Egypt and Ethiopia. Worth noting that membership benefits can not be underestimated in this era of shifting economic architecture and geopolitical situation.
Queuing for BRICS+ Membership
Burkina Faso, Mali and Niger which historically sharing the cross-border region of West Africa, are in the queue to ascend into the BRICS+ association. The trio has formed their own regional economic and defense pact, the Alliance of Sahel States (AES) in Sept. 2023, and aspiring for leveraging unto BRICS+, most likely to address their development and security questions. Brazil, as BRICS 2025 chairmanship, has set its priority on expansion of BRICS+, the enlargement wave began by Russia. More than 30 countries are the line join, hoping for equitable participation in bloc’s unique activities uniting the Global South.
Perhaps, the most crucial moment for Ghana which shares border with Burkina Faso. Its military leader, Capt. Ibrahim Traoré was heartily applauded for attending the inauguration of the new President John Dramani Mahama on January 7th. Burkina Faso, without International Monetary Fund (IMF) and World Bank, is transforming its agricultural sector to ensure food security, building educational and health facilities and sports complex which turns a new chapter in its political history.
In early January 2025, the National Democratic Congress (NDC) took over political power from the New Patriotic Party (NPP). Historically, the political transition has been quite smooth and admirable down the years. Ghana was ranked seventh in Africa out of 53 countries in the Ibrahim Index of African Governance. The Ibrahim Index is a comprehensive measure of African governments, and methods of power transfer based on constitutional principles, rules and regulations.
Ghana produces high-quality cocoa. It has huge mineral deposits including gold, diamonds and bauxites. it has approx. 10 billion barrels of petroleum in reserves, the fifth-largest in Africa. President John Dramani Mahama, has reiterated to unlock the potentials, creating a resilient and inclusive economic model that would empower citizens and ultimately attracts foreign investments. Ghana reduced size of government, a required condition to secure funds from the IMF for development and resuscitating the economy. Ghana’s involvement in BRICS+ will steadily enhance the dynamics of its traditional governance in multipolar world.
Outlining Ghana’s potential benefits
Currently, Ghana has myriad of economic tasks to implement, aims at recovering from the previous gross mismanagement. It could take advantage of BRICS+ diverse partnership opportunities. Closing related to this, Ghana’s headquarter of the African Continental Free Trade Area (AfCFTA) further offers an appropriate collaboration in boosting further both intra-BRICS trade and intra-Africa trade. With Egypt, Ethiopia, Uganda, South Africa, Nigeria and Ghana, these put together paints an African geographical representation in BRICS+, and presents their collective African voice on the international stage.
After studying the article report titled “Ghana Should Consider Joining the BRICS Organization” (Source: http://infobrics.org), the author Natogmah Issahaku, explained, in the first place, that Ghana’s relations with other external nations, particularly, those in the West, will not, and should not be affected by its BRICS membership. According to the expert, Ghana needs infrastructural development and sustainable economic growth in order to raise the living standard of Ghanaians to middle-income status, which could be achieved through participation in BRICS+. In return, Ghana can offer BRICS+ members export of finished and semi-finished industrial and agricultural products as well as minerals in a win-win partnership framework.
As an Applied Economist at the University of Lincoln, United Kingdom, Natogmah Issahaku emphasized the importance of the BRICS New Development Bank (NDB), that could play roles by financing Ghana’s development agenda. BRICS development cooperation model is based on equality and fairness, Ghana can leverage its relations to optimize potential benefits. Given the colossal scale of economic problems confronting the country, President Mahama should take strategic steps to lead Ghana into the BRICS+ without hesitation.
Notwithstanding world-wide criticisms, BRICS+ countries have advanced manufacturing and vast markets as well as technological advantages. As often argued, BRICS+ is another avenue to explore for long-term investment possibilities and work closely with its stakeholders.
These above-mentioned arguable factors are attractive for advancing Ghana in the Global South. Based on this, it is time to grab the emerging opportunity to drive increasingly high-quality cooperation, focus on hope rather than despair and step up broadly for more constructive parameters in building beneficial relations into the future! Over to the new government of President John Mahama, the estimated 35 million people and the Republic of Ghana.
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) has noted that the increased production of petroleum products by the Dangote Petroleum Refinery has reduced the importation of refined products from Europe.
In its latest Monthly Oil Market Report, the cartel said the refining efforts of the Lagos-based 650,000-barrel-per-day refinery have changed the narrative.
Business Post reports that Dangote Refinery commenced European distribution this month, as it aims for 100 per cent production.
“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market.
“Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets which will call for new destinations and flow adjustments for the extra volumes going forward,” the report partly read.
OPEC added that European light distillates continue to lose ground on the back of increasingly lighter and sweeter refinery crude diets in Europe and sanctioned Russian crude imports, leading to stronger naphtha production.
“The resulting naphtha surplus coupled with the declining petrochemical cracking capacity in Europe has weighed on the regional naphtha market.”
The 650,000 barrels per day Dangote oil refinery built by Nigerian billionaire, Mr Aliko Dangote, in Lagos, had affirmed to compete with European refiners when operating at full capacity.
Although, when it started operations last year, it struggled to secure sufficient crude locally — as production remains below target and tied to contracts with other players by the Nigerian National Petroleum Company (NNPC) Limited.
“We have gone up to 550,000 barrels per day, that is 85 per cent capacity in crude distillation,” Mr Devakumar said in December.
The refinery was forced to source crude from international markets following a dispute with the Nigerian state oil firm, the NNPC, over a crude supply deal under which Dangote Group had agreed to sell a 20 per cent stake in the refinery to NNPC for $2.76 billion.
In December 2024, on the back of the crude-for-Naira scheme, the volume of black gold supplied to the Lagos-based facility went 40 per cent higher to 395,000 barrels per day than the 280,000 barrels per day delivered in November.
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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