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Impact of African Policies on Development of Infrastructure Projects, Emergence of Debt-Trap and Neo-Colonialism

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Frangton Chiyemura Neo-Colonialism

By Kester Kenn Klomegah

In this interview taken by Kester Kenn Klomegah for Eurasia Review, Dr. Frangton Chiyemura, a lecturer in International Development at the School of Social Sciences and Global Studies, The Open University in the United Kingdom, discusses the impact of African policies on development and realization of infrastructure projects, the possible of running into “debt-traps” and the emergence of “neo-colonialism” in Africa. Here are the interview excerpts:

Early December, you held discussions and shared your research on how African leaders influence the modality of engagement and negotiation process with China. What were the key points you discussed with the audience and participants who attended?

First of all, I was invited to share my research findings with Oxford University China-Africa Network (OUCAN). OUCAN engages with researchers, think tanks, policy makers involved in Africa-China relations. My talk was part of this initiative to share research and evidence-based findings and conclusions on Africa-China relations.

My talk was based on my completed PhD research project where I investigated how the Ethiopian government exercised agency – defined as the ability to shape, control and influence, when engaging with the Chinese in the context of wind energy infrastructure. The key point was that the Ethiopian government was able to broker, negotiate, structure, implement and manage Chinese involvement in Adama 1 and Adama 2 wind farms.

The audience was quite engaging and wondered how the Ethiopian government was able to exercise agency as compared to other African governments dealing with the Chinese. There are several factors which make Ethiopia to have such clout when dealing with the Chinese as compared to other African countries. Such factors are not only limited to the governance and leadership model of the government especially under Meles Zenawi and Hailermariam.

Secondly, it relates to the geographic location of Ethiopia, which makes it a stabilising force in volatile East African region. Ethiopia, has a unique advantage, as it is the diplomatic hub of Africa – hosting the African Union (AU) and other international organizations. This adds weight to Ethiopia when negotiating with external powers.

What are the general perceptions and attitudes toward this kind of relations? How do the political and business elites, interpret the benefits of determining concrete directions of investment in Africa?

Both Ethiopian and Chinese governments see the relations as win-win. This comes at the backdrop of strong relations at the political party to party level. In the case of my research I conducted, I can confirm that the Chinese Communist Party has very strong relations with the then Ethiopian People’s Revolutionary Democratic Front. In fact, during my research, I found out that the corporate deals are informally negotiated at the party to party level before they are transferred to the government level for formalization. There seems to be a seamless connection between the ruling party and the government, and any decisions reached at the party level are by extension seamlessly binding on the government.

How would you explain neo-colonialism by foreign players in Africa? What is it and what foreign (external) countries are referred to as neo-colonisers, in your view?

Neocolonialism argument is present in Africa-China relations especially proposed so by scholars who come from a neo-Marxian epistemological grounding. Neocolonialism can be seen as a new form of domination, plunder and exploitation using clandestine and economic statecraft. Of course, there could be some hints or pointers to suggest neocolonial tendencies, but I believe such claims should be levelled on case by case basis, and there has to be concrete evidence to suggest that way. That said, I think we have to be careful to scrutinize where such claims of neocolonialism are coming from, and potentially scrap beyond the surface to establish the motivations and interests for spreading or proposing such claims.

In my opinion, I believe there is no free lunch in the world, African countries should enter into partnerships based on their strategic interests and an understanding of what the partners can provide or deliver. Secondly, every African country should do a comprehensive evaluation of the structure and, the terms and conditions of their engagements with foreign powers. By so doing, this will eliminate the chances for the emergence of claims of neocolonialism. Instead of extending the blame to someone elsewhere, Africa needs to do its homework especially on the implementation and monitoring aspects of the deals. Africa has some of the best regulations and standards, but the problem lies in implementation and monitoring.

Without doubt, Africa needs investment in infrastructure, agriculture and industry, and in many other sectors. Despite negative criticisms, what admirable roles is China playing here, we are talking about working towards the Sustainable Development Goals (SDGs) in Africa?

China is playing a huge role in infrastructure financing and development. For example, available evidence suggests that between 2000 and 2017, China provided about US$143 billion worthy of loans to African governments. This has come quite handy especially given the shortage of finance to build the much-needed infrastructure targeting the SDGs.

In terms of trade, China became Africa’s trading partner in 2009, and two-way trade volume reached its peak in 2014 at the value of US$215 billion. Further, in 2017, it was estimated to have reached about US$148 billion. Of course, trade transactions still remain unbalanced in favour of China. In addition, between 2000 and 2017, transport (US$38.1 billion), power (US$30.1 billion) and mining (US$19.1 billion) ranked respectively as top three sectors that have received the lion’s share of Chinese loans in Africa.

What is your interpretation of debt-trap most often discussed in various platforms and leveled accusations on China? But tangible infrastructure have been built with these loans in many African countries

Interestingly, I don’t believe in this debt-trap diplomacy. First of all, it does not make any business sense that the Chinese will design a project targeting ‘failure’ so that they can control or pull the strings of a particular country. Second, most of the so-called assets that the Chinese are poised to be targeting to run are very complicated, messy and at times quite straining for the Chinese to dirty their hands. Therefore, it doesn’t make any sense for me.

That said, I would not refer to it as ‘trap’ but as merely debt and the consequences associated with that. What that implies is that, for example, in the power sector, African requires on average more than 5 billion worth of investment per year for the next 10 years to address this challenge. Inevitably, part of the money will come from debt financing. For me, I am not really worried about ‘productive debt’ – defined as any money borrowed to invest in a project that has the ability to boost economic growth and at the same time, generate a revenue stream that will pay back the loan. I would be worried about countries that borrow to build, say, a presidential palace, a stadium, or to pay salaries. That type of borrowing for me is bad – its destructive and unproductive borrowing, and that must necessarily stop.

I have to disagree with the assertion that China is debt-trapping Africa. Of course, there are some African countries that are in debt distress situation, others have high risk of being in distress, but the contributions of Chinese finances towards that leave much to be desired. For example, countries such as Chad, Sao Tome and Principle, South Sudan are in high debt distress but the contributions of the Chinese towards that is very insignificant.

We also have some countries like Ethiopia, Cameroon and Ghana where the Chinese hold a substantial share of the debt, but those countries are not in debt distress, although they are high risk of debt distress. You will be surprised that according to World Bank, Africa’s debt to China is less than 23%, compared to what Africa owes to private lenders (32%), and multilateral institutions such as World Bank, IMF etc. (35%). Sometimes, I see the hypocrisy of the West – with whom Africa has substantial debt, demonizing the Chinese on debt-trap diplomacy.

In your expert view, what are the key challenges and problems facing Chinese investors in Africa, what are your suggestions how some aspects of the relations be improved between Africa and China?

Of course, like any other relations, Africa-China engagements have their own challenges which need to be worked on to ensure there is mutual benefit and win-win situation. Some of the challenges relate implementation of regulations and standards by African governments when dealing with the Chinese. The issues lie not in regulations, but for me in the implementation and enforcement. This is the first aspect that needs to be addressed by African governments, especially in the infrastructure sector.

The second challenge relates to peace and security. Some of the African countries are in conflict situation or are, at least, under terrorist threat. This threatens some of the Chinese businesses and enterprises.

Third, the unbalanced nature of trade between China and Africa create room for emergence of neo-colonial arguments and such needs to be addressed immediately. Some of the challenges are minor, these include language barriers, differences in culture and work ethics. These can easily be resolved.

The fourth and final is about in some African countries lack policy certainty and stability which negatively impact on Chinese long-term business planning. Such countries include Zimbabwe where there has been of note currency uncertainty, policy uncertainty and even regulatory uncertainty. This impacts on long-term Chinese business interest.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Africa Squeezed between Import Substitution and Dependency Syndrome

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Dependency Syndrome

By Kestér Kenn  Klomegâh

Squeezed between import substitution and dependency syndrome, a condition characterized by a set of associated economic symptoms—that is rules and regulations—majority of African countries are shifting from United States and Europe to an incoherent alternative bilateral partnerships with Russia, China and the Global South.

By forging new partnerships, for instance with Russia, these African countries rather create conspicuous economic dependency at the expense of strengthening their own local production, attainable by supporting local farmers under state budget. Import-centric partnership ties and lack of diversification make these African countries committed to import-dependent structures. It invariably compounds domestic production challenges. Needless to say that Africa has huge arable land and human resources to ensure food security.

A classical example that readily comes to mind is Ghana, and other West African countries. With rapidly accelerating economic policy, Ghana’s President John Dramani Mahama ordered the suspension of U.S. chicken and agricultural products, reaffirming swift measures for transforming local agriculture considered as grounds for ensuring sustainable food security and economic growth and, simultaneously, for driving job creation.

President John Dramani Mahama, in early December 2025, while observing Agricultural Day, urged Ghanaians to take up farming, highlighting the guarantee and state support needed for affordable credit and modern tools to boost food security. According to Mahama, Ghana spends $3bn yearly on basic food imports from abroad.

The government decision highlights the importance of leveraging unto local agriculture technology and innovation. Creating opportunities to unlock the full potential of depending on available resources within the new transformative policy strategy which aims at boosting local productivity. President John Dramani Mahama’s special initiatives are the 24-Hour Economy and the Big Push Agenda. One of the pillars focuses on Grow 24 – modernising agriculture.

Despite remarkable commendations for new set of economic recovery, Ghana’s demand for agricultural products is still high, and this time making a smooth shift to Russia whose poultry meat and wheat currently became the main driver of exports to African countries. And Ghana, noticeably, accepts large quantity (tonnes) of poultry from Russia’s Rostov region into the country, according to several media reports. The supplies include grains, but also vegetable oils, meat and dairy products, fish and finished food products have significant potential for Africa.

The Agriculture Ministry’s Agroexport Department acknowledges Russia exports chicken to Ghana, with Ghanaian importers sourcing Russian poultry products, especially frozen cuts, to meet significant local demand that far outstrips domestic production, even after Ghana lifted a temporary 2020 avian flu-related ban on Russian poultry.

Moreover, monitoring and basic research indicated Russian producers are actively increasing poultry exports to various African countries, thus boosting trade, although Ghana still struggles to balance imports with local industry needs.

A few details indicate the following:

Trade Resumed: Ghana has lifted its ban on Russian poultry imports since April 2021, allowing poultry trade to resume. Russian regions have, thus far, consistently exported these poultry meat and products into the country under regulatory but flexible import rules on a negotiated bilateral agreement.

Significant Market: In any case, Ghana is a key African market for Russian poultry, with exports seeing substantial growth in recent years, alongside Angola, Benin, Cote d’Voire, Nigeria and Sierra Leone.

Demand-Driven: Ghana’s large gap between domestic poultry production and national demand necessitates significant imports, creating opportunities for foreign suppliers like Russia.

Major Exporters: Russia poultry companies are focused on increasing generally their African exports, with Ghana being a major destination. The basic question: to remain as import dependency or strive at attaining food sufficiency?

Product Focus: Exports typically include frozen chicken cuts (legs and meat) very vital for supplementing local supply. But as the geopolitical dynamics shift, Ghana and other importing African countries have to review partnerships, particularly with Russia.

Despite the fact that challenges persist, Russia strongly remains as a notable supplier to Ghana, even under the supervision of John Mahama’s administration, dealing as a friendly ally, both have the vision for multipolar trade architecture, ultimately fulfilling a critical role in meeting majority of African countries’ large consumer demand for poultry products, and with Russia’s trade actively expanding and Ghana’s preparedness to spend on such imports from the state budget.

Following two high-profile Russia–Africa summits, cooperation in the area of food security emerged as a key theme. Moscow pledged to boost agricultural exports to the continent—especially grain, poultry, and fertilisers—while African leaders welcomed the prospect of improved food supplies.

Nevertheless, do these African governments think of prioritising agricultural self-sufficiency. At a May 2025 meeting in St. Petersburg, Russia’s Economic Development Minister, Maxim Reshetnikov, underlined the fact that more than 40 Russian companies were keen to export animal products and agricultural goods to the African region.

Russia, eager to expand its economic footprint, sees large-scale agricultural exports as a key revenue generator. Estimates suggest the Russian government could earn over $15 billion annually from these agricultural exports to African continent.

Head of the Agroexport Federal Center, Ilya Ilyushin, speaking at the round table “Russia-Africa: A Strategic Partnership in Agriculture to Ensure Food Security,” which was held as part of the international conference on ensuring the food sovereignty of African countries in Addis Ababa (Ethiopia) on Nov. 21, 2025, said: “We see significant potential in expanding supplies of Russian agricultural products to Africa.”

Ilya Ilyushin, however, mentioned that the Agriculture Ministry’s Agroexport Department, and the Union of Grain Exporters and Producers, exported over 32,000 tonnes of wheat and barley to Egypt totaling nearly $8 million during the first half of 2025, Kenya totaling over $119 million.

Interfax media reports referred to African countries whose markets are of interest for Russian producers and exporters. Despite existing difficulties, supplies of livestock products are also growing, this includes poultry meat, Ilyushin said. Exports of agricultural products from Russia to African countries have more than doubled, and third quarter of 2025 reached almost $7 billion.

The key buyers of Russian grain on the continent are Egypt, Algeria, Kenya, Libya, Tunisia, Nigeria, Morocco, South Africa, Tanzania and Sudan, he said. According to him, Russia needs to expand the geography of supplies, increasing exports to other regions of the continent, increase supplies in West Africa to Benin, Cameroon, Ghana, Liberia and the French-speaking Sahelian States.

Nevertheless, Russian exporters have nothing to complain. Africa’s dependency dilemma still persists. Therefore, Russia to continue expanding food exports to Africa explicitly reflects a calculated economic and geopolitical strategy. In the end of the analysis, the debate plays out prominently and the primary message: Africa cannot and must not afford to sacrifice food sovereignty for colourful symbolism and geopolitical solidarity.

With the above analysis, Russian exporters show readiness to explore and shape actionable strategies for harnessing Africa’s consumer market, including that of Ghana, and further to strengthen economic and trade cooperation and support its dynamic vision for sustainable development in the context of multipolar friendship and solidarity.

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Coup Leader Mamady Doumbouya Wins Guinea’s 2025 Presidential Election

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Mamady Doumbouya

By Adedapo Adesanya

Guinea’s military leader Mamady Doumbouya will fully transition to its democratic president after he was elected president of the West African nation.

The former special forces commander seized power in 2021, toppling then-President Alpha Conde, who had been in office since 2010.

Mr Doumbouya reportedly won 86.72 per cent of the election held on December 28, an absolute majority that allows him to avoid a runoff. He will hold the forte for the next seven years as law permits.

The Supreme Court has eight days to validate the results in the event of any challenge. However, this may not be so as ousted Conde and Mr Cellou Dalein Diallo, Guinea’s longtime opposition leader, are in exile.

The election saw Doumbouya face off a fragmented opposition of eight challengers.

One of the opposition candidates, Mr Faya Lansana Millimono claimed the election was marred by “systematic fraudulent practices” and that observers were prevented from monitoring the voting and counting processes.

Guinea is the world leader in bauxite and holds a very large gold reserve. The country is preparing to occupy a leading position in iron ore with the launch of the Simandou project in November, expected to become the world’s largest iron mine.

Mr Doumbouya has claimed credit for pushing the project forward and ensuring Guinea benefits from its output. He has also revoked the licence of Emirates Global Aluminium’s subsidiary Guinea Alumina Corporation following a refinery dispute, transferring the unit’s assets to a state-owned firm.

In September, rating agency, Standard & Poor’s (S&P), assigned an inaugural rating of “B+” with a “Stable” outlook to the Republic of Guinea.

This decision reflects the strength of the country’s economic fundamentals, strong growth prospects driven by the integrated mining and infrastructure Simandou project, and the rigor in public financial management.

As a result, Guinea is now above the continental average and makes it the third best-rated economy in West Africa.

According to S&P, between 2026 and 2028, Guinea could experience GDP growth of nearly 10 per cent per year, far exceeding the regional average.

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Lack of Financial Support Holding Back Russia’s Economic Influence in Africa: A Case Study of Missed Opportunities in Nigeria

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Ajaokuta Plant

By Kestér Kenn Klomegâh

For decades, Russia has spoken loudly about its intentions in Africa but acted softly when it comes to real financial commitments. Unlike China, the United States, and even India, Russia has consistently failed to back its diplomatic gestures with the credit lines, concessionary loans, and financing guarantees that drive actual development projects.

Nigeria, Africa’s largest economy and most populous country, provides perhaps the clearest example of Russia’s economic inertia. Despite more than 60 years of diplomatic relations and repeated declarations of “strategic partnership,” Moscow’s presence in Abuja’s economic landscape remains marginal. The absence of real financing has left most Russian-Nigerian agreements as empty communiqués, in sharp contrast to the railways, roads, and ports China has built across the country, or the oil trade and financial services integration offered by the United States.

The Obasanjo Era: A Case Study in Missed Opportunities

When President Olusegun Obasanjo returned to power in 1999, Nigeria was repositioning itself after years of military dictatorship. Abuja sought new economic partnerships beyond its traditional ties with the West. Russia—still recovering from the collapse of the Soviet Union—saw an opportunity to reassert itself in Africa.

During Obasanjo’s tenure (1999–2007), Moscow pledged sweeping cooperation with Nigeria in energy, steel, and defense. The crown jewel of this diplomatic push was the proposed revival of the Ajaokuta Steel Complex, Nigeria’s most ambitious industrial project, which had stalled for decades despite billions of dollars in investments. Russia, through its state-owned firms and technical experts, promised to provide financing, technology, and training to bring Ajaokuta back to life.

Yet two decades later, Ajaokuta remains in ruins. The Russian commitment never translated into cash, and Abuja was left to restart talks with new partners. Similarly, plans for joint oil exploration ventures and expanded defense cooperation fizzled out after initial memoranda of understanding.

Obasanjo’s government signed a number of documents with Moscow, but few projects ever moved beyond the paper stage. Nigerian officials who participated in those negotiations later admitted that Russia’s biggest weakness was its lack of financing. Unlike China, which came armed with Exim Bank loans and turnkey contractors, Russia offered expertise but no capital.

The lesson was clear: without structured financial support, Russian promises could not compete with the billions China was already pouring into Nigerian infrastructure.

Nigeria’s Trade Reality: Russia as a Minor Player

The absence of financing is not just anecdotal—it shows in the numbers.

Nigeria’s Trade with Russia vs. China and the US

Partner Nigeria’s Exports (USD) Nigeria’s Imports (USD) Balance / Impact

Russia ~$1.5 million (2024) ~$2.09 billion (2024) Negligible exports; deficit, no capital inflows

China ~$2.03 billion (2024) ~$17 billion+ annually Infrastructure-backed deficit (rail, power, ports)

United States ~$4.4 billion (2022) Balanced imports & services More stable, diversified cooperation

Russia accounts for less than 1% of Nigeria’s trade, and the structure of that trade is unbalanced. Nigeria imports wheat, fertilizers, and some machinery from Russia, but exports almost nothing back. By contrast, China has become Nigeria’s largest trading partner, financing and building railways, power plants, and free trade zones. The U.S., though less visible in physical infrastructure, remains Nigeria’s biggest crude oil buyer while providing access to financial services and technology.

Despite Russia’s frequent declarations of friendship, Abuja does not see Moscow among its top ten trading partners.

Why Russia Keeps Missing the Mark

Several factors explain why Russia’s Africa strategy remains symbolic rather than substantive:

  1. No financial institutions to support deals
  • China’s Exim Bank and policy lenders ensure African projects come with credit lines.
  • The U.S. offers development financing through agencies like OPIC (now DFC).
  • Russia, by contrast, has no institutional mechanism to provide African governments with the capital needed to implement deals.
  1. Global sanctions and liquidity crunch
  • Since 2014, and especially after the 2022 invasion of Ukraine, Russia has faced severe financial sanctions.
  • Its banks are largely cut off from the international system, making it difficult to provide long-term credit abroad.
  1. Legacy of distrust
  • The failure to deliver on projects like Ajaokuta has left Nigerian policymakers skeptical.
  • Moscow’s record of unfulfilled promises weakens its credibility compared to Beijing or Washington.
  1. Strong competition
  • China and India bring financing, technology, and workers.
  • The U.S. leverages its markets and financial systems.
  • Russia lacks the same competitive edge, leaving it with little more than symbolic gestures.

Nigeria’s Perspective: Choosing Real Partners Over Rhetoric

From Abuja’s standpoint, the comparison is stark. China may saddle Nigeria with debt, but it also delivers tangible assets: modern railways, airport terminals, and industrial parks. The U.S. offers not just oil trade but also investment in services, banking, and security.

Russia, by contrast, offers friendship, rhetoric, and occasional defense hardware sales. While these may have symbolic value, they do little to advance Nigeria’s long-term development goals.

A Nigerian economist summarized the dilemma bluntly: “Russia brings words; China builds rails; America buys oil. We can’t run an economy on words.”

For policymakers in Abuja, the choice is not ideological but practical. Nigeria needs financing, infrastructure, and technology transfer. Any partner unable to provide those tools risks being sidelined.

Lessons from the Past Two Decades

Looking back, Nigeria’s engagement with Russia since the Obasanjo era highlights three major lessons:

  • Agreements must be tied to financing. Without money, MoUs are meaningless.
  • Geopolitics without economics is hollow. Russia may seek allies against Western sanctions, but Nigeria’s priority is development.
  • Partnerships must deliver measurable outcomes. China’s rail projects may be debt-heavy, but at least they exist. Russia’s projects remain in the realm of rhetoric.

The Broader African Picture

Nigeria is not alone in this experience. Across Africa, Russia has announced major investments in mining, energy, and defense. Yet very few projects have been completed. The exceptions—such as nuclear power cooperation with Egypt or arms deals with Algeria—are driven more by geopolitics than development financing.

In 2023, Russia hosted its second Russia-Africa Summit in St. Petersburg, promising billions in investment. But African leaders quietly noted the absence of clear financing mechanisms. The pledges, like those made to Nigeria, remain aspirational.

By contrast, the U.S.-Africa Leaders Summit and China-Africa Cooperation Forum both provide detailed financing frameworks that African governments can rely on.

Can Russia Still Catch Up?

Despite its current weakness, Russia still has avenues to remain relevant:

  • Agriculture: Russia is a key wheat supplier to Nigeria and could expand into broader agribusiness cooperation.
  • Energy: With Nigeria seeking to monetize gas reserves, Russia’s expertise in LNG could be valuable—if backed by financing.
  • Technology: Russia’s defense and space industries could offer niche partnerships if they include funding.

But without addressing its financing gap, these opportunities will remain out of reach.

Final Thoughts: What Nigeria Must Do

For Nigeria, the key lesson is simple: measure diplomacy by delivery. Symbolic alliances may have value in global forums, but they cannot replace capital, infrastructure, and trade. Abuja must continue to diversify its partners, but prioritize those who provide tangible results.

Two decades after Obasanjo sought to revive Ajaokuta with Russian help, Nigeria must accept a sobering reality: Russia, for now, is more of a rhetorical ally than a financial partner. Unless Moscow restructures its economic diplomacy with real financing instruments, it will remain a marginal player in Africa’s transformation.

As Africa’s largest economy, Nigeria cannot afford another decade of promises without projects. The future of its development lies with partners who not only shake hands and group photographs but also ability to write the checks. Nigeria and many other African States are desirous to partner with potential foreign investors with adequate funds for investment in the continent. The second ‘re-awakening’ must feature noticeable improvement in the living standards of the estimated 1.4 billion people.

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