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How is Russia Straddling to Make Economic Impact in Africa

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in Africa

By Kestér Kenn Klomegâh

While Russia’s interest in sub-Saharan Africa is nothing new, Russian authorities have realized that it’s time to move back primarily to reclaim its economic footprints and to find old Soviet-era allies, but that step comes with new challenges, especially from other foreign players and the changing internal political and economic conditions in Africa.

Long before it held its first symbolic summit in October 2019, many experts indicated in several policy reports that “Russia has often failed to capitalize on the historical connection between Moscow and those African elites who had been educated in the Soviet Union and Russia.”

For the past few years, Russian authorities are only demonstrating steady and strategic steps at the possibility of pushing huge investments in lucrative sectors, often rattling in hyperbolic statements on ways to strengthen bilateral relations and expand economic cooperation in a number of African countries.

That theatrical show of corporate investment and business interests has been sealed into various agreements, resulting from high-powered state delegations who frequently visited both regions. Records concretely indicated that 92 bilateral agreements were signed during the first summit; little has been achieved, and yet Russians are looking forward to new agreements in the forthcoming July gathering in St. Petersburg.

Keir Giles, an associate fellow of the Royal Institute of International Affairs (Chatham House) in London, explained to me in an email interview, precisely in April 2015, that “Russia’s approach to Africa is all about making up for a lost time. The Soviet Union’s intense involvement in African nations came to an abrupt halt in the early 1990s, and for a long time, Moscow simply didn’t have the diplomatic and economic resources to pay attention to Africa while Russia was consumed with internal problems.”

According to Giles, “that changed in the last decade, thanks to two things: the arrival of President Vladimir Putin with a new foreign policy focus, and the massive influx of cash on the back of increased oil prices, which transformed Russian state finances. Russia is interested both in economic opportunities and in rebuilding political relationships that had in some ways been on hold for over a decade.”

In order to raise Russia’s economic influence and profile in Africa, the Coordinating Committee on Economic Cooperation with Sub-Saharan Africa, popularly referred to as AfroCom, was created in June 2009 on the initiative of the Russian Federation Chamber of Commerce and Industry and Vnesheconombank to help promote and facilitate Russian business in Africa. Since its creation, it has had full-fledged support from the Russian Government, the Federation Council and State Duma, the Ministry of Foreign Affairs and the African diplomatic community.

At the Chamber of Commerce and Industry of the Russian Federation, Georgi Petrov, noted at AfroCom’s annual executive meeting held in April 2015 that “in view of the current geopolitical situation in the world and the economic situation in Russia, Russian businesses have to look for new markets. In this regard, of particular interest is the African continent, which today is one of the fastest-growing regions in the world with annual GDP growth of 5%. In addition, opportunities for projects in Africa are opened with the accession of South Africa to the BRICS bloc.” Petrov was referring to Brazil, Russia, India, China and South Africa as members of BRICS.

Reports also showed that Russia has started strengthening its economic cooperation by opening trade missions with the responsibility of providing sustainable business services and plans to facilitate import-export trade in a number of African countries. A simple calculation shows that already been more than a decade since the establishment of the Coordinating Committee on Economic Cooperation with Sub-Saharan Africa. There are also several Joint Commissions on Trade and Economic Cooperation, and of course, there are Trade and Economic councillors at nearly all of Russia’s diplomatic missions in Africa.

But these Russian trade centres must necessarily embark on a “Doing Business in Africa” campaign to encourage Russian businesses to take advantage of growing trade and investment opportunities to promote trade fairs and business-to-business matchmaking in key spheres in Africa.

Maxim Matusevich, an associate professor and director of the Russian and East European Studies Program at Seton Hall University, told me in an interview that “in the past decades, there was some revival of economic ties between Africa and Russia – mostly limited to the arms trade and oil/gas exploration and extraction. Russia’s presence in Africa and within African markets continues to be marginal, and I think that Russia has often failed to capitalize on the historical connection between Moscow and those African elites who had been educated in the Soviet Union.”

“It is possible that the ongoing crisis in the relations between Russia and the West will stimulate Russia’s leadership to look for new markets for new sources of agricultural produce. Many African nations possess abundant natural resources and have little interest in Russia’s gas and oil. As it was during the Soviet times, Russia could only offer a few manufactured goods that would successfully compete with Western-made products. African nations will probably continue to acquire Russian-made arms, but otherwise, I see only a few prospects for diversification of cooperation in the near future,” added Maxim Matusevich.

Foreign Minister Sergey Lavrov and the Special Presidential Representative for the Middle East and Africa, Mikhail Bogdanov, have several times paid working visits to Africa. On the other side, they have held several meetings these several years, with several high delegations from Africa. The parties have, these several years, discussed bilateral and regional issues and the improvement of diverse cooperation between Russia and Africa, including cooperation with sub-regional organizations of the continent, according to the several transcripts posted to the official website of the Foreign Ministry.

Without a doubt, Russia’s strategic return to Africa has sparked academic discussions at various levels where academic researchers openly admitted that political consultations are on track, arms export has significantly increased, but other export products are extremely low. In addition, Russia’s involvement in infrastructure development and industry has been invisible for the past decades on the continent.

In another interview, Themba Mhlongo, Head of Programmes at the Southern Africa Trust, thinks that Africa should not expect higher trade flows with Russia simply because Africa has not engaged Russia.

Mhlongo told me that “Russia has not been as aggressive as China in pursuing opportunities in Africa because Russia has natural resources and markets in Eastern Europe, South West Asia. Russian exports to Africa might be dominated by machinery and military equipment which serves their interest well.”

Notwithstanding the above weaknesses, he suggested that Africa must engage all BRICS members equally, including Brazil and Russia, in order to build alliances and open trade opportunities, including finance and investment opportunities. Also, African countries must not seem to show preferences in their foreign policy in favour of Western Europe if they want to benefit from trade relations with Russia. They must learn to be neutral; neutrality is a pragmatic strategy!

Mhlongo suspects that Africa still holds an old view about Russia being a communist state and less technologically developed or unsophisticated than Western Europe. But Russia never colonized Africa, so there are no colonial ties between the two – Africa and Russia.

“If you look at African trade flows to Europe, they reflect colonial ties most of the time. However, modern Russia is now an important emerging market country and a member of BRICS. But Russian society is closed, and its orientation is towards Western Europe, particularly the United States (probably due to the period of bipolar global power system that existed before). Russia exports to Africa but rarely sets up businesses. The language (or culture in general) could be one of the barriers to developing trade relations with Russia,” he underlined in his discussion.

He proposed that both Africa and Russia could initiate a dialogue to explore economic opportunities between them. However, there are other avenues to engage each other through the BRICS bloc or through bilateral diplomatic channels. Russia has embassies in Africa, and African countries have diplomatic representations in Russia. Africa may have to pay special attention to cultural issues, try to understand Russia in this ever-changing environment and find an entry point to engage Russia.

On her part, Alexandra Arkhangelskaya, a senior researcher at the Institute of African Studies under the Russian Academy of Sciences and a staff lecturer at the Moscow High School of Economics, told me in an interview that Russia and Africa needed each other – “Russia is a vast market not only for African minerals but for various other goods and products produced by African countries.”

The signs for Russian-African relations are impressive – declarations of intentions have been made, important bilateral agreements signed – now it remains to be seen how these intentions and agreements will be implemented in practice, she pointed out in her discussions.

The revival of Russia-Africa relations should be enhanced in all fields: political, economic, trade, scientific, technological, and cultural. Obstacles to the broadening of Russian-Africa relations should be addressed. These include, in particular, the lack of knowledge in Russia about the situation in Africa and vice versa, suggested Arkhangelskaya.

“As we witness rapid deterioration of relations between Russia and the West unfold, Russia’s decision to ban the import of some agricultural products from countries that have imposed sanctions against Moscow offers great opportunities for the expansion of trade of such products from Africa,” the professor observed in her discussion.

Experts who have researched Russia’s foreign policy in Africa at the Russian Academy of Sciences’ Institute for African Studies have reiterated that Russia’s exports to Africa can be possible only after the country’s industrial-based experiences a more qualitative change and introduces tariff preferences for trade with African partners. As a reputable institute during the Soviet era, it has played a considerable part in developing African studies in the Russian Federation.

“The situation in Russian-African foreign trade will change for the better if Russian industry undergoes technological modernization, the state provides Russian businessmen systematic and meaningful support, and small and medium businesses receive wider access to foreign economic cooperation with Africa,” according to Professor Aleksei Vasiliev, of the RAS Institute for African Studies and a full member of the Russian Academy of Sciences, and Evgeny Korendyasov, an expert at the RAS Institute for African Studies.

In one of his speeches posted to the official website, Russian Foreign Minister Sergey Lavrov noted frankly in remarks: “it is evident that the significant potential of our economic cooperation is far from being exhausted, and much remains to be done so that Russian and African partners know more about each other’s capacities and needs. Creating a mechanism for providing public support to business interaction between Russian companies and the African continent is still on the agenda.”

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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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