World
Impact of African Policies on Development of Infrastructure Projects, Emergence of Debt-Trap and 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.
By Aduragbemi Omiyale
Accessing the US Dollar in the East Africa region has now been made easier with the expansion of the stablecoin settlement infrastructure of SCRYPT.
This development enables banks, payment providers and corporate treasury teams to move value into and out of the continent in real time.
Businesses paying international suppliers frequently have to convert local currency into USD before purchasing stablecoins for settlement, incurring FX conversions and spreads before any payment is made.
But SCRYPT is eliminating this intermediate conversion by enabling direct settlement corridors for local African currencies into stablecoins.
This development allows businesses to move from local currency to stablecoin settlement in a single licensed transaction, without first sourcing rationed bank dollars, as stablecoins are increasingly becoming settlement infrastructure rather than an investment product.
The expansion adds settlement support across four African currencies: the Kenyan shilling (KES), Tanzanian shilling (TZS), Rwandan franc (RWF) and Ugandan shilling (UGX). Each corridor is delivered through the same full-stack infrastructure our clients already use for trading, custody and treasury operations.
Speaking on this, the chief executive of SCRYPT, Norman Wooding, said, “Across Africa, stablecoin adoption is driven by economic need, not speculation.
“Businesses here are not chasing yield; they are trying to pay suppliers and manage treasury without losing margin to a banking system that rations dollars. Licensed, fair-rate dollar access is the clearest proof of what this infrastructure is for.”
Also commenting, the Managing Director of Markets & Trading at SCRYPT, Mr Gabriel Titopoulos, said, “Until now, reaching stablecoins from local African currencies meant buying scarce dollars and incurring several layers of conversion costs.
“SCRYPT removes this friction. Firms and payment providers can now settle straight from local currencies through live corridors, with local partners.”
World
African Graduates Association Promoting Multifaceted Initiatives With Russian Educational Institutions
By Kestér Kenn Klomegâh
In preparations for the third Russia-Africa Summit, scheduled for late October 2026, Dr Francois Ngan, deputy chairman of the Union of Associations of African Graduates of Soviet and Russian Universities, during an official working visit, has held a consultative meeting with Professor Vladimir Filippov, the President of the Russian University of Peoples’ Friendship (RUDN), and former Minister of Higher Education of Russia, Chairman of the National Commission for Accreditation of Higher Education.
RUDN is an educational institution established in 1960, primarily to provide higher education to Third World students. It has now become a popular multidisciplinary spot for many students, especially from developing countries. The university offers various academic programmes and has research infrastructure that comprises laboratories and interdisciplinary centres. The university is named after the former Congolese leader, Patrice Lumumba.
Dr Francois Ngan and Professor Filippov discussed the importance of the Graduates Association as a continental platform dedicated to strengthening unity, cooperation, and promoting shared progress among African graduates who studied in the former Soviet Union and in the Russian Federation. They also reviewed multifaceted initiatives that could bring together alumni associations from across Africa, whose members obtained education and professional training, and cultural experiences in Soviet and Russian institutions of higher learning.
Professor Filippov expressed optimism in addressing emerging challenges as a result of shifting geopolitical changes, emphasised strategic cooperation in the educational sphere with Africa, in general, and with the Republic of Cameroon, in particular, and further about the integration of African students during their studies in the Russian Federation.
The meeting also touched on academic and scientific work, the possibility of rewriting a scientific thesis, and the official organisation of transferring versions translated into six languages for the library of RUDN. Significant questions relating to Russia’s educational opportunities, collaborations and partnerships involving African countries were thoroughly discussed.
The Union of Associations of African Graduates of Soviet and Russian Universities was created under one continental umbrella to promote friendship, for professional networking, to engage in cultural exchange, and with particular emphasis on forging strategic cooperation between Africa and Russia.
World
Russia to Support Industrial Growth, Technological Advancement and Supply Chain Resilience across Africa
By Kestér Kenn Klomegâh
With the heightening of geopolitical rivalry and competition, a new Russia-Africa working group has emerged as a significant institutional mechanism and plans to focus on facilitating and monitoring strategic investments, industrialisation, and infrastructural development—the Strategic Action Plan 2023-2026—that was outlined during the second Russia-Africa summit, in St.Petersburg, the second largest city in the Russian Federation.
While substantial progress has, largely, lagged on the multidimensional economic front with Africa primarily due to its internal difficulties and the complexity of relations with its former Soviet neighbours, Russian officials believe there still remains huge untapped potential in strengthening bilateral cooperation. As planned, President Vladimir Putin has already signed an executive order that directs Moscow to host the forthcoming third Russia-Africa summit in October 2026.
On June 30, a regular meeting of the Business Council on Africa was held under the chairmanship of the head of the Russian Foreign Ministry. It was dedicated to issues of trade, economic and investment cooperation with Africa. The group discussed the current state and prospects for the implementation of policy initiatives with an emphasis on assisting the countries of the continent, strengthening their economic, energy, technological and food sovereignty, as well as training specialists for Africa.
Foreign Minister Sergey Lavrov has reiterated that Russia-Africa relations primarily depend on an understanding of the importance of collective action based on the principles of equality, mutual respect and resolving common tasks. In the past few years, Russia-Africa cooperation has been noticeably strengthening. “We are deepening political dialogues, developing bilateral contacts with African countries, promoting cordial cooperation between ministries and departments, and expanding humanitarian exchanges. We are also continuing the structural diversification of trade partnerships and economic dimensions.”
“Next on the agenda is the launch of diplomatic missions in The Gambia, Liberia, Togo, and the Union of the Comoros,” Lavrov said at a meeting of the Business Council under the Russian foreign minister. Lavrov noted that Russian embassies began operating in three other African countries in 2025: Niger, Sierra Leone, and South Sudan. A new Department for Partnership with Africa was also established. According to the top diplomat, “expanding Russia’s diplomatic presence on the continent contributes to developing relations.”
There are already 45 Russian embassies operating in Africa. The Russian foreign minister noted that Moscow is quickly rebuilding its presence in African countries, which sharply declined during the collapse of the Soviet Union. “There will be literally four or five countries left where we still need to establish full-fledged embassies, and then, we will have 100 per cent coverage of the entire African continent with our diplomatic presence,” Lavrov emphasised.
After the first summit in October 2019, the Foreign Ministry also created the Secretariat of the Russia-Africa Partnership Forum. Its main tasks include controlling the roadmap to Africa’s multidimensional cooperation and guiding potential Russian investors to the continent. This also underscored the priority and post-Soviet solidarity Russia currently attaches to its policy towards Africa, within the growing framework of the emerging new architecture of multipolarity in the Global South.
In an interview in June 2026, the director of the Department of Partnership with Africa at the Foreign Ministry, Tatyana Dovgalenko, shared a few insights in the lead-up to the third summit. Furthermore, Dovgalenko explained that Russia would move away from security to concentrate more on economic issues, especially to team up with African colleagues to streamline mechanisms for implementing projects that will ensure food security and agriculture, and help Africa in installing processing facilities to support its self-sufficiency. She also emphasised energy and vital infrastructures, and the third direction was to simultaneously work more coherently with sub-regional organisations.
Over the past few years, bilateral relations have been increasing. There are positive dynamics in trade turnover, estimated at $30 billion. Steps are being taken to build payment systems, preferably in national currencies, while Russia looks to open four more diplomatic offices, bringing the total to 48 across Africa. Russia is currently training 37,000 African students, but only approximately 1/3 on state scholarships in Russia’s educational institutions. “We are ready to share valuable experiences of building a sovereign development model with African partners to achieve self-reliant economic growth based on their own resources and capabilities. Russia aims at creating processing capabilities and localising production, and provides access to advanced technological solutions,” underlined Dovgalenko in her interview with New Eastern Outlook.
For African countries that have endured difficult decades on the path to political independence, it is now important to take full control over the untapped resources, direct income and revenue toward stimulating the national economic sector, rather than paying for the well-being of the Western “golden billion” during this changing geopolitical era, according to Dovgalenko.
According to reports, the forthcoming Russia-Africa summit will have an economic agenda, including the digital economy, technology, artificial intelligence, healthcare, investment, and settlements in global trade. Of course, the agenda will also cover Africa’s political aspects. But if African friends bring along any specific ideas, Russia will give them serious attention. In addition, with continuity and consistency, pay increased attention to expanding ties with Africa’s regional integration associations.
Going forward, the focus will be on translating strong trade relations into deeper investment partnerships, fostering technology collaboration, strengthening industrial linkages and contributing towards the shared objectives set by the leadership of both African countries and Russia. At the third summit, the above-mentioned specific initiatives will be further designed. In this regard, the key document, the new action plan for the next three-year period (2027-2029), is intended to reflect dynamic realities in the future relations of Russia and Africa
