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G5 Sahel West African Countries Bartering Mines for Russia’s Military Equipment

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G5 Sahel West African countries

By Kestér Kenn Klomegâh

In his series of end-year review reports, Special Presidential Representative for the Middle East and Africa, Mikhail Bogdanov, told local Russian media that Russia would continue its interaction with G5 Sahel West African countries to fight terrorism as a terrorist threat in the region had not subsided and the West’s military presence was “not so effective” in Africa.

“Moscow will continue its interaction with the G5 Sahel (Mali, Burkina Faso, Niger, Chad and Mauritania) on arms supplies to fight terrorism. Naturally, there will be contacts with the G5 Sahel,” Bogdanov told the Russian media and noted that the group was undergoing “some internal structural changes” currently because problems had arisen over Mali’s participation.

“We have bilateral communication with all the countries of the five. We will see what format will be optimal for our partners. Interaction here is largely focused on the fight against terrorism and extremism because this Sahara-Sahel zone has become a hotbed of international terrorism and, of course, because of the collapse of Libya’s statehood and the spread of these processes to the south,” he said.

Over the past several years, the Russian Foreign Ministry has strengthened military-technical cooperation, a key part of the foreign policy of the Russian Federation with Africa. It has oftentimes explained in statements released on its website that Russia’s military-technical cooperation with African countries is primarily directed at settling regional conflicts and preventing the spread of terrorist threats, and fighting the growing terrorism in the continent.

It is broadening its geography of military diplomacy covering poor African countries and especially fragile States that need Russia’s military assistance. It has signed bilateral military-technical cooperation agreements with more than 20 African countries, according to several reports.

Some policy experts have said that African society is suffering through weak institutions and terrorism challenges due to alienation from political governance and lack of equal opportunity in community affairs. For instance, countries such as Nigeria, Niger, Burkina Faso, Mali, the Central African Republic and many others have loose holds of the government and have deliberately created the political environment for terrorist organizations to flourish in Africa.

The basic polity of many African countries is not up to the mark. There are state institutions, departments and agencies like law enforcement bodies, regulatory agencies and judiciary suffering from the chronic dysfunctional mechanism which needs immediate focus to address challenges of terrorism and terror funding. Therefore, fighting terrorism should be analyzed and raising the functioning levels of institutions as well as the development of society.

Chairperson of the African Union Commission, Moussa Faki Mahamat, has reiterated the necessity of creating regional forces for fighting terrorist groups but added that the African armies are still under-equipped. “It is important that external partners listen to the cries of Africa and operate within the framework of the organization when it comes to the extension support in dealing with this scourge,” he stressed.

Somalia’s President, Hassan Sheikh Mohamud, also spoke about how the terrorist group, al-Shabaab, controlled large portions of Somalia’s rural areas. “Shabaab, or terrorists anywhere they are, cannot be defeated militarily only,” he said.

Mozambican President Filipe Nyusi was very outspoken and shared valuable experiences about the use of well-constituted regional military forces for enforcing peace and security in Mozambique. Creating regional military forces to fight threats of terrorism will absolutely not require bartering entire gold or diamond mines for the purchase of military equipment from external countries.

Now, Mozambique has relative peace and stability after the 16-member Southern African Development Community (SADC) finally approved the deployment of a joint military force with the primary responsibility of ensuring peace and stability and for restoring normalcy in the Cabo Delgado province, northern Mozambique.

It involves troops from Rwanda and the Southern African Development Community Military Mission (SAMIM). Rwanda offered 1,000 in July 2021. South Africa has the largest contingent of around 1,500 troops. External countries are, of course, enormously helping to stabilize the situation in Mozambique.

The Joint Forces of the Southern African Development Community are keeping peace in northern Mozambique. The rules, standards and policies, provision of assistance, as well as the legal instruments and practices, are based on the protocols of building security stipulated by the African Union. It, therefore, falls within the framework of peace and security requirements of the African Union.

Ahead of the next Russia-Africa Summit in St Petersburg in July 2023, the South African Institute of International Affairs (SAIIA) has published a special report on Russia-Africa. The report titled – Russia’s Private Military Diplomacy in Africa: High Risk, Low Reward, Limited Impact – says that Russia’s renewed interest in Africa is driven by its quest for global power status. Few expect Russia’s security engagement to bring peace and development to countries with which it has security partnerships.

While Moscow’s opportunistic use of private military diplomacy has allowed it to gain a strategic foothold in partner countries successfully, the lack of transparency in interactions, the limited scope of impact and the high financial and diplomatic costs expose the limitations of the partnership in addressing the peace and development challenges of African host countries, the report says.

The report authored by Ovigwe Eguegu, a Beijing-based Nigerian Researcher on Politics and International Affairs, focused on the use of private military companies to carry out ‘military diplomacy’ in African states, and the main research questions were: What impact is Russia’s private military diplomacy in Africa having on host countries’ peace and development? Why has Russia chosen military diplomacy as the preferred means to gain a foothold on the continent?

His report was based on more than 80 media publications dealing with Russia’s military-technical cooperation in Africa. He interrogates whether fragile African states advance their security, diplomatic and economic interests through a relationship with Russia.

Overcoming the multidimensional problems facing Libya, Sudan, Somali, Mali, and the Central African Republic will require comprehensive peace and development strategies that include conflict resolution and peacebuilding, state-building, security sector reform, and profound political reforms to improve governance and the rule of law – not to mention sound economic planning critical for attracting foreign direct investment needed to spur economic growth.

The United Nations (UN), the African Union (AU), the Economic Community of West African States (ECOWAS) and the entire international community have expressed collective concerns about any use of private mercenary forces, instead strongly suggested the use of well-constituted regional forces approved by regional blocs, as a means of addressing conflicts in Africa. The G5 Sahel are Burkina Faso, Chad, Mali, Mauritania and Niger.

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AXIAN Energy Secures $60m for Expansion Across Africa

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By Aduragbemi Omiyale

A financing facility of up to $60 million has been secured by AXIAN Energy, the energy division of the AXIAN Group.

The funding package was provided by MCB, one of the leading financial institutions in the Indian Ocean region.

It comprises a $40 million revolving credit facility with a three-year tenor and extension option, and $20 million in unfunded instruments, providing AXIAN Energy with enhanced financial flexibility, enabling the company to rapidly mobilise resources and seize development opportunities across its target markets.

The energy firm is expected to use the capital to deliver large-scale energy infrastructure projects across Africa.

Over the past two years, AXIAN Energy has significantly accelerated its growth by expanding its renewable energy project pipeline, with solar projects currently under development in Senegal, Benin, Zambia, Côte d’Ivoire, Madagascar, and Burkina Faso.

Building on this momentum, AXIAN Energy now operates a portfolio comprising 350 MW of installed renewable energy capacity, supported by 77 MWh of energy storage capacity, positioning the AXIAN Group as a major contributor to Africa’s energy transition.

The chief executive of AXIAN Energy, Mr Benjamin Memmi, said, “This transaction marks a key milestone in AXIAN Energy’s growth trajectory. It provides us with the financial capacity to sustain the momentum we have built over the past two years, further strengthening our renewable energy portfolio and expanding our presence across new African markets.”

Also commenting, the Global Head of Structured Finance at MCB, Mr Mathieu Delteil, said, “We are proud to support AXIAN Energy in structuring this facility, reaffirming our commitment to enabling transformative projects across Africa.

“By leveraging our sector expertise and deep understanding of regional markets, we have delivered a tailored financing solution that aligns with AXIAN’s long-term renewable energy ambitions.

“This partnership highlights our role as a strategic financial partner, mobilising capital towards investments that drive sustainable growth and accelerate the energy transition across the continent.”

The financing agreement between the two organisations strengthens their long-standing relationship because it is driven by a shared commitment to supporting infrastructure development and economic growth across Africa.

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S&P Restores Afreximbank to Investment-Grade Status After 12 Years

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Afreximbank

By Adedapo Adesanya

Credit ratings agency, S&P Global Ratings, has restored the African Export-Import Bank (Afreximbank) ​to investment grade, nearly 12 years after its last assessment, citing the entity’s countercyclical lending record and ‌strong shareholder support.

The BBB+ rating with a stable outlook is one notch above Moody’s Baa2 and comes months after Afreximbank severed ties with Fitch Ratings.

The lender accused the agency of misjudging its mission, following a downgrade to junk status amid disagreements over the bank’s role in debt ​restructurings for Ghana and Zambia. Fitch subsequently withdrew its ratings entirely and flagged governance concerns.

S&P said in ​a statement on Thursday that Afreximbank’s record as a countercyclical lender and its substantial shareholder ⁠support served as rationale for its rating. Credit ratings often guide the costs of capital for a borrower.

The lender’s total assets, S&P noted, had expanded to $42.3 billion by the end of 2025, up ​from $7.1 billion in 2015.

S&P said it did not incorporate preferred creditor status into its assessment because Afreximbank ​provides almost 80 per cent of its loans to private-sector entities.

However, it acknowledged that Afreximbank, alongside other institutions, had experienced prolonged payment arrears in ‌recent ⁠years, notably following the defaults and debt restructurings in Ghana and Zambia.

S&P noted that Afreximbank said in December that it had come to an agreement with Ghana on its $750 million loan, but that the lender had not announced a resolution with Zambia.

The agency warned that further sovereign restructurings could weigh on Afreximbank’s asset quality.

S&P’s assessment described Afreximbank’s governance and management as “adequate”, saying the ⁠inclusion of ​two independent directors and the African Development Bank (AfDB) as a permanent board ​member provided institutional oversight.

It noted that while increasing participation of private-sector investors through Class D shares could influence the bank’s risk appetite, Class A ​shareholders retained veto rights over big institutional changes, balancing potential risk.

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Elon Musk Becomes World’s First Trillionaire as SpaceX Soars in Nasdaq Debut

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By Adedapo Adesanya

Mr Elon Musk, the world’s richest man, is now a trillionaire as his SpaceX rose 11 per cent in its Nasdaq debut on Friday, lifting its valuation to about $1.96 trillion as investors piled into the world’s largest initial public offering (IPO).

The stock opened for trading at $150 compared with the IPO price of $135 per share.

The landmark listing cemented Mr Musk’s status as the first trillionaire ever and propelled SpaceX into the ranks of the ⁠world’s most valuable companies

The listing is being used as a benchmark of what is to come for the market ahead of forthcoming IPOs for AI heavyweights Anthropic and OpenAI.

The record IPO is a culmination of Mr Musk’s long-held ambitions in space and technology.

Most of Musk’s wealth now rests with SpaceX, where ⁠he holds a stake worth roughly $866 billion. Along with Tesla and the rest of his properties, his net worth will exceed $1.1 trillion when the stock begins trading on Friday.

At a quoted $75 billion, the deal’s proceeds were more than double those of Saudi Aramco’s record-setting 2019 IPO.

The valuation could rise further should underwriters exercise their right to sell additional shares, a decision typically made within 30 days after the offering.

Although SpaceX may have to wait for entry into the S&P 500, its expected fast-track inclusion in the Nasdaq 100 will soon make it a major holding for passive funds and ETFs that track the index, creating a fresh source of demand for its shares.

It will take about a month before it gets added to that index under Nasdaq’s new fast-entry rules, as opposed to a typical wait of as much as a year.

SpaceX said its market opportunity spans $28.5 trillion, a figure it called the largest in human history.

Mr Musk, 54, was born in Pretoria, South Africa, to a Canadian mother and South African father. He attended the University of Pennsylvania, graduating in 1997.

He took over as Tesla’s CEO in 2008. Beyond Tesla and SpaceX, Mr Musk ‌has co-founded ⁠five other companies, including tunnelling startup The Boring Company and brain implant maker Neuralink.

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