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Maghreb is Russia’s Source of Economic, Political Opportunities—Chtatou

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Maghreb Chtatou Mohamed

By Kester Kenn Klomegah

The Maghreb region, with an estimated population of over 100 million people, has been an interesting geographical region for key global players due to its tremendous untapped natural resources.

Algeria, Libya, Mauritania, Morocco, and Tunisia established the Arab Maghreb Union in 1989 to promote cooperation and economic integration.

The union included Western Sahara implicitly under Morocco’s membership and ended Morocco’s long cold war with Algeria over this territory. However, this progress was short-lived, and the union is now dormant.

However, the region is an important gateway to Europe and to sub-Saharan Africa. Europe particularly has some investment, so also the United States.

Now Russia is steadily making its way through war-torn Libya and politically troubled Morocco and Tunisia. That compared Russia has significant trust-based relations with Egypt.

As Russia feverishly preparing for the second all-African leaders’ summit, Kester Kenn Klomegah held an emailed insightful interview focusing on some aspects of Russia-Maghreb relations with Dr Chtatou Mohamed, a senior professor of Middle Eastern politics at the International University of Rabat (IUR) as well as education science at Mohammed V University in Rabat, Morocco. The following are excerpts from the interview:

In terms of geopolitical diplomacy, how do we assess Russia’s interest and approach since the Soviet collapse in the Maghreb region? Do the current political changes pose challenges for Russia?

Given its geographical remoteness, the Maghreb did not constitute – unlike the Middle East – a pole of major strategic interest for the Soviet Union, and this until the period of decolonization in the 1950s.

From this point on, and especially with the Algerian war of independence, Moscow began to invest in this sub-region of the Arab world. In fact, as in the Mashreq, the Soviet position strategic criteria, which explained the choice of a partnership with Algeria as early as 1962, and then, to a lesser extent, with Colonel Qadhafi’s Libya after he took power in 1969.

However, it was more in the name of the “anti-imperialist” struggle than of real ideological proximity that these alliances were formed. Indeed, during the entire Cold War period, Soviet power could not count on local relays to strengthen its influence.

The Maghrebi parties of communist persuasion were indeed far from having the weight and influence of their Middle Eastern counterparts, such as in Iraq or Iran. They were promptly removed from power and even repressed after independence, even if some of their leaders were later co-opted by the regimes in place, particularly in Morocco and Algeria.

Nevertheless, the revolutionary Third Worldism claimed by Algiers as well as by Tripoli, even if it did not claim to be based on Marxist-Leninist ideology, was perceived by the USSR as conforming to its interests and its politico-strategic projections.

For all that, the leaders of the two “friendly” Maghreb countries, while taking into account the interest that extended cooperation with Moscow (which also passed by links with satellite countries of Eastern Europe, particularly in terms of security with the German Democratic Republic), they were careful to keep a certain distance from this partner, refusing any form of subjection according to the principles of non-alignment.

Today, the Maghreb is not a fundamental interest for Russia, but rather a source of economic and political opportunities. The Russian redeployment in the Maghreb, which began during Vladimir Putin’s second term in 2004 and has been over the last decade, relies on new vectors, distinct from the old anti-imperialist aura from which the Soviet Union had benefited in Algeria and Libya. Three, in particular, stand out: (1) Investment in the economic sphere; (2) Increased cooperation in the security field, and; (3) A shared vision of international and regional issues.

Today, the federal state of Russia is increasingly present in the countries of North Africa; strategic partnership with Algeria, Morocco and Egypt, and is among the key players in the Libyan crisis.

Russia and the Maghreb countries seek above all to cultivate their economic relations. These relations cover various fields such as energy, agricultural products, tourism, space or, in the case of Algeria, the sale of arms.

For Moscow, this also responds to the need to deal with the sanctions of the European Union imposed following the annexation of Crimea in 2014, seeking alternatives to European products, especially agro-food. Russia meets a similar desire on the Maghreb side, where there is a desire to diversify the partnerships dominated until now by the countries of the European Union.

In 2016, Russia thus became, bypassing France, the first supplier of wheat to Algeria and has remained so since. It should be noted that the Russian economic projection in the region does not necessarily respond to a state strategy driven by the Kremlin, but often satisfies commercial ambitions in search of new opportunities, although the political authorities can facilitate contacts with the various Maghrebi economic actors.

The North African countries have considerably developed their relations with Russia, as they did before with China, without however prohibiting themselves from cooperating with the other Western powers. Their objective is to take advantage of any opportunity that arises to develop their economies and avoid remaining aligned and dependent on a single pole as in the days of the Cold War, given that the world is increasingly multipolar.

Therefore, questions arise, what are the mutual interests behind this revival in relations between Russia and the countries of North Africa, and what are the future prospects of these relations?

Russia has a war fleet and a merchant fleet in the Black Sea. This sea is located between Europe, the Caucasus and Anatolia, it is a semi-enclosed sea since it only communicates with the Mediterranean through the Bosphorus Strait, the Sea of Marmara and the Dardanelles Strait. Therefore, the Mediterranean is an unavoidable access corridor for Russian ships, connected to its Black Sea ports, to go to the Atlantic Ocean via the Strait of Gibraltar, or to the Indian Ocean via the Suez Canal.

For the Kremlin, the countries of North Africa are of paramount geostrategic importance on the maritime level, because its merchant ships and warships transiting in the Mediterranean Sea cross 3 obligatory passages which are bordered by: Egypt for the Suez Canal, Tunisia for the Strait of Sicily and Morocco for the Strait of Gibraltar. These compulsory passages are, from the point of view of freedom of navigation, locks that can be easily controlled by the countries that border them on both sides.

On the geo-economic level, the five Arab countries of North Africa present themselves for the Kremlin as an unavoidable interface to enter the African continent, rich in raw materials and presented as the great world consumer market in the future because of the demographic explosion of its population. It was during his visit to Algeria in 2006 that Putin laid the first milestone for Russia’s return to Africa. It is also Egypt, which played a leading role in the organization of the 1st Russia-Africa summit in October 2019 in Sochi.

Russia’s economic interests in Africa are increasingly growing in recent years, Moscow’s trade with African countries exceeded $20 billion in 2019. This figure is still lower than that of China ($204 billion), the US and even some European countries such as France and Germany.

Russia aims to diversify its trade with African countries by focusing on high technology, such as civil nuclear power (in Egypt) and satellite launches (in Angola and Tunisia). Russia is also very active in the medical sector in Africa, a vaccination campaign against the Ebola virus in Guinea, etc…

The United States and European Union have concrete strategic instruments, for instance, the U.S.-Maghreb FTA and Euro-Mediterranean Partnership. What could be described as Russia’s strategic economic tool in North Africa?

While China has been the focus of public attention on the African continent for some years, Moscow is no longer behind. After a prolonged absence since the demise of the Soviet Union, Russia is becoming more and more active, mixing armed forces presence, arms sales, economic investment, soft power and diplomatic support.

At the BRICS summit in Johannesburg on July 27, 2018, the Russian President raised the idea of a Russian-African summit bringing together all the continent’s leaders and himself. This ambitious initiative does not leave the traditional players established in this field worried that the Russian proposals will prove attractive enough for a number of local heads of state.

Indeed, Russia intends to return to the continent where its presence has often been fluctuating. Even in the 1970s, the height of the Soviet grip on Africa, its presence was episodic, with rare exceptions, such as in Algeria, Libya and Angola. Then the gradual removal of many heads of state who were allies of the Soviet Union led Mikhail Gorbachev, from 1988 onwards, to gradually weaken ties with the continent. These did not survive the disappearance of the USSR in 1991, and the Yeltsin period sounded the death knell for these friendships. It was not until the second term of Vladimir Putin, from 2008, that timid initiative were taken to remind certain countries of Russia’s past role.

One of the notable changes from the Cold War era is that the new Russian policy in the Maghreb no longer relies solely on the historical partner of Algeria, but also extends to previously neglected states, namely Morocco and Tunisia, because of their political and historical ties to the Western world. Libya is a special case.

Russia’s renewed interest in the Maghreb is based on a number of parameters that have already been essentially well identified. First and foremost, there is the development of economic partnerships, whether in the fields of armaments, energy, infrastructure or agriculture. Next, in order of priority, are security issues, with the fight against terrorism and jihadism, but more broadly the effects of the Libyan crisis, even if Russia’s investment in this issue appears less developed and partisan than it appears at first glance.

The emphasis placed on the political-diplomatic aspect, crystallized from the Arab uprisings and more particularly since the overthrow of the Libyan regime following NATO’s intervention in 2011, constitutes the most novel parameter of this Russian reinvestment. As in the rest of the Arab world, Moscow is defending the status quo, or rather a “principle of conservation” defined by its support for the regimes in place, non-interference in the internal affairs of a state, and its opposition to regime change through foreign military intervention.

While Russia’s preferred visions and modes of action in the Maghreb seem to be fairly well identified, the perceptions and expectations, but also the possible reservations on the Maghreb are more rarely expressed by the leaders of these countries and little-studied at the academic level. Perhaps we should look at this, as far as the powers that be are concerned, a concern for discretion regarding the sensitive aspects of this foreign policy component – this is particularly true for Algeria – an area on which they generally communicate little and for the academic research community in North Africa, a lack of knowledge related to the history, geography and culture of contemporary Russia.

If there is undoubtedly, on the Maghreb side and with important nuances from one country to another, a manifest interest in a development or a deepening of the partnership with Moscow, questions may remain about Russia’s objectives, especially in Rabat and Tunis. Despite this, the general and regional orientations of Russian policy are generally well perceived in the Maghreb capitals, because they correspond to local visions without, however, having the intrusive character that sometimes reproached to the historical European partners (France, Italy, Spain) and American partners.

Thus, the Russian approach responds to expectations of diversification in terms of partnership which correspond to an economic rather than a strategic necessity. This relationship appears to be facilitated by a convergence of views on major regional issues and the principles governing international relations, perhaps also because of the limits set for it. However, certain expectations on the Maghreb side could be disappointed, particularly concerning economic investments, but also a possible attempt at Russian mediation to facilitate a settlement process for the Libyan crisis, knowing that Moscow has some conditions.

One of the discreet tools used by Russia in the Maghreb and Africa is the Wagner Group that is present in Algeria providing tactical help to the Polisario Front fighting Morocco over Western Sahara and in Libya, on the side of Marshal Haftar forces.

The Wagner Group should be approached as a nebulous or informal entity since it is a structure without any legal existence. Unlike other Russian private military companies, of which there are many and of which RSB-Group is a well-known example, Wagner is not registered as a commercial company. Wagner’s lack of a defined legal status is advantageous for the Russian government, as it allows it to deny responsibility for its actions when the group is mobilized in different fields.

The links between the Russian executive and Wagner are important and take various forms. First, logistically, the training of the members of the Wagner group took place in Russia, in a military base belonging to the Russian armed forces. Some of the weapons available to Wagner members in Syria and Libya came from the Russian military surplus, and their deployment is usually carried out by Russian military aircraft. The Wagner Group is furthermore financed by a businessman considered close to Vladimir Putin, Yevgeny Prigozhin, who has secured some fairly large contracts in the Kremlin, particularly in the catering business.

Thus, there are obvious military logistical links and personal affinities between the Wagner Group and the Russian government. However, the link between the two entities is not organic and not all of Wagner’s interventions are linked to the Russian executive. Sometimes they proceed from a more lucrative logic, specific to the personal interests of Yevgeny Prigozhin.

First of all, the Wagner Group is able to participate in armed operations. In this, it is not just a private military company but a mercenary company. As an example, the group was employed by the Syrian government to liberate the Syrian Al Sha’er oil field in Homs from the Islamic State after the battle of Palmyra in 2016, but also as support to the Syrian Arab Army (SAA) in the fighting in Khusham in February 2018. Wagner has also provided support for Marshal Haftar’s offensives against Tripoli in 2019 and 2020. The group has participated in armed operations in northern Mozambique against Islamist insurgents seeking to establish an independent state in Cabo Delgado province and more recently engaged with the Central African Republic’s army against the Patriot Coalition.

With regard to Russian strategy in the region, there has been a renewed interest in sub-Saharan Africa over the past decade. Defence diplomacy, that is, strengthening the country’s presence via the military tool (training or physical presence), has been an important instrument for Russia since 2014-2015, particularly in this region. About twenty agreements have thus been signed between Moscow and sub-Saharan African countries in the field of defence since that date.

Economic issues also motivate the renewed Russian interest in the region. In the field of armaments, the countries of the zone are an interesting clientele for Russia. In 2010, they represented 10% of Russian arms sales. Today they account for 30%, making Russia the leading supplier of arms to the region.

Finally, the Russian strategy has a geopolitical dimension. While the context between Russia and Western countries is highly troubled and characterized in particular by a regime of sanctions and counter-sanctions, Moscow has more room for manoeuvre with the countries of sub-Saharan Africa. However, the tensions between Russia and Western countries are also present in sub-Saharan Africa: the issues surrounding the Wagner group are one of the facets of this crisis.

Do you detect any competition and rivalry among key foreign players for influence in the region? In your opinion, how effective and useful the emerging China-Russia alliance could be in Maghreb countries?

The impression is striking of a flashback to the West-Russia tensions that characterized the second half of the 20th century, from the aftermath of World War II until the collapse of the USSR in 1991. The two rival camps are beginning to openly sketch out the comparison, although observers note significant differences.

Following the gradual advent of the multi-polarity of the world since the beginning of the 2000s, most Mediterranean Arab countries have opened up to practically all the major world powers, the USA, China, Russia, the European powers and the powers emerging. The objective is to better serve the interests of their people and find solutions to the problems that prevent their development by exploiting the opportunities presented by each of these powers.

Currently, the geopolitical relations of most Mediterranean Arab countries with Russia are good, even for those who were allies of the USA during the period of world bipolarity along the years of the Cold War (the case of Egypt and Morocco).

Algiers, on October 2, 2021, the Algerian government decides to recall its ambassador in Paris and close its airspace to French military aircraft. This decision was prompted by a speech by Emmanuel Macron on the Algerian memory issue, which was deemed disrespectful.  This incident represents the second act of a political-diplomatic standoff between Algeria and France, which decided in late September to drastically reduce the issuance of visas to nationals of Maghreb countries. Since this measure, relations between the two countries have continued to deteriorate, further weakening the popularity of France on an African continent that is already attracting the covetousness of many powers such as Russia, a historical ally of Algeria, whose eyes are now turned towards Mali.

Since the early 2000s, Russia has placed Africa and the Mediterranean at the centre of its foreign policy. This position became even more important in 2015 when Moscow saw Syria as a way to reaffirm its status as an international power while defending its security and economic interests, which are the fight against terrorism and the development of trade agreements around energy.

In such a paradigm, the regional power that is Algeria is a choice ally, especially since their relations have been at a good level since the end of the Cold War. Moscow and Algiers share a similar conception of domestic and foreign policy. The report of the Mediterranean Foundation for Strategic Studies highlights this:

“In the end, Russia and Algeria share many common representations and biases: a focus on the sacrosanct stability (particularly through the importance given to the fight against terrorism), a preference for flexibility in diplomatic relations and a willingness to contribute – through mediation – to the resolution of conflicts. The two countries share the same aspiration to assert themselves as an independent power and to establish themselves as a regional and international power, respectively. This convergence of vision pushes the two states to help each other. One example is the case of Vladimir Putin who does not hesitate to relay the anti-colonialist speeches of Algiers by encouraging African countries to mobilize for political and economic independence. The Russian president thus urged “African countries to stop their dependence on France and to work to develop the continent considered the richest in the world” (Algérie Patriotique. (21 Octobre 2020). « Alger et Moscou ne veulent plus laisser Rabat et Paris jouer seuls en Afrique »).

However, once we move away from political statements, it is easy to see that, behind its airs of mentor, Russia is an actor who enjoys a form of dependence from Algeria via unequal cooperation in several key areas. Thus, in 2017, Dmitri Medvedev, then head of the Russian state, signed with Algiers no less than six (6) documents on Russian-Algerian cooperation in a multitude of areas such as justice, energy, education or health. It is also not anecdotal that the choice of the vaccine in the fight against Covid-19 was the Sputnik-V vaccine. Such a choice clearly reflects Algeria’s distrust of other Western powers, but above all Russia’s unavoidable position as the sponsor of an Algerian state that is too weak to prosper alone. By offering its help to a fragile Algeria, Russia ensures, without exposing itself, a real anchorage on the African continent.

After the 2008 crisis, Beijing’s geopolitical positioning on the international stage remains highly ambiguous. On the one hand, China is described as a developing country because of the domestic economic and political problems it faces (the nature of its economic growth, environmental challenges, the fight against inequality, social tensions). These structural obstacles require reforms that slow down its international deployment. On the other hand, China is perceived as a major emerging country, given its strong economic growth and its status as the world’s second-largest economy, which mechanically pushes it to take a greater interest in international issues and to move away from its policy of “non-interference.

Today, Beijing’s positioning is characterized by approaches that are sometimes cautious when the issues concern it less, and sometimes more assertive when it comes to neighbourhood issues where its interests may be directly at stake. In the end, this ambivalent policy and its internal problems explain China’s positioning: a true emerging power on the economic level, it is not yet complete so on the geopolitical level.

Nevertheless, China already carries so much weight on the international scene that it is changing the world order. The question is to know how willing and able it will be to transform the functioning of the international system. In many ways, the emergence of the Russia-China alliance will strengthen the hand of these two countries politically, economically and socially in the Maghreb. Many see the emergence of such an important block as a viable alternative to the West that has oppressed and exploited the region for centuries. Today many Maghrebi students go east to study and many businessmen go there to do commerce.

How is Russia’s “soft power” working in this region? What could be the expectations from the Maghreb bloc during the forthcoming second Russia-Africa summit planned this November 2022?

The North Africa region has undergone extremely rapid modernization. Growing literacy (in less than fifty years, societies in the region have achieved a literacy rate of over 70% among adults and close to 100% in all countries among 15-24-year-olds, including women) or the affirmation of the place of women are signs of modernization in progress. The demographic and socio-cultural structures of these countries are changing and the political order of their societies, which explains some of the instability in the region and the “Arab Spring”. Other countries, where frustrations are great and where the states are struggling to respond to the political and economic aspirations of their populations could experience similar episodes.

In recent years, the alleged return of Russia to the African continent has attracted attention. It is not only the media that are interested in it, but also diplomats and governments of countries that, since the fall of the USSR, are in economic competition on the continent.

The increase in this interest began with the holding of the first Russia-Africa summit in Sochi in October 2019. The second summit, scheduled for 2022, is helping to reinforce the hypothesis of Russia’s repositioning on the continent. Is this a real geostrategic turning point? Or can we rather suspect tactical re-compositions in search of arms export markets or the exploitation of rare minerals?

The private security company Wagner, run by a man close to Vladimir Putin, has become the main instrument of Moscow’s re-engagement on the continent, against a backdrop of rivalry and tension with the West.

Is this the beginning of a strategic shift that would see a new “Russafrique” supporting “Chinafrique” in an anti-Western conspiracy? Or a media fantasy dramatizing punctual and opportunistic, often fragile, breakthroughs? The arrival of Russian instructors and paramilitaries from the private security company Wagner, which is close to the Kremlin, in Mali at the end of 2021, is raising questions in Europe and the United States about Moscow’s plans in Africa. Through the multiplication of defence agreements and the activities of the Wagner Group, Russia has succeeded in meddling in several African countries: Mali, Libya, Sudan, Central African Republic, Mozambique… An advance that is sometimes erratic, contested or deceptive, and which extends over about five years.

In Egypt, in 2014, Russia got closer to the newly elected President Al-Sissi. It took advantage of the American disengagement following the Arab Spring and signed a $3.5 billion arms contract. Other agreements will link the two countries: military cooperation treaties (supply of arms and training), an agreement for the construction of the first Egyptian nuclear power plant, an economic outlet for its grain, et cetera. More recently, the two countries signed a contract to supply Russian Su-35 fighter planes to Egypt.

Russia is thus rapidly becoming the main arms seller in Africa. Over the period 2014-2019, it provided 49% of the arms sold to the continent, far ahead of the other main contributors: the United States (14%), China (13%) and France (6.1%).

However, these contracts mainly concern North Africa, the picture being much more mixed for West Africa, for example. Russia has not been involved in any major arms agreement with Mali, with the exception of the 2016 agreement where Mali signed a contract with Russia for four Mi-35M combat helicopters.

Russia’s return to Africa is not limited to debt cancellation and arms sales. In 2018, Russia’s trade with the African continent reached $20 billion (17.2% more than the previous year) and its investments reached $5 billion (a far cry from the $130 billion invested per year by China). Its ability to offer technologies sought after by African countries gives it a place of choice. For example, it cooperates with Algeria, Nigeria, Zambia and Egypt in the nuclear field. Moreover, its companies are particularly present in the exploitation of minerals, oil or gas. Gazprom, Rosneft and Lukoil are very active in the Sahara, North Africa, Nigeria and Ghana.

These links have also been strengthened from a diplomatic point of view, with the organization of the first Russia-Africa summit in Sochi in October 2019, which will have enabled Russia to bring together some thirty African heads of state and to sign several bilateral treaties (the joint statement mentions “92 agreements, contracts and memoranda of understanding […] with a total value of 1,400 billion rubles”. This is in line with Russia’s goal of doubling its trade with African states by 2024 (which would make it a direct competitor of France).

Russian realpolitik may explain Russia’s growing influence in Africa. Unlike other actors such as the United States or France, which may make the granting of aid or the signing of partnerships conditional on the respect of certain principles, Russia does not demand any conditions related to democracy or human rights. This is the case in Nigeria, where the United States cancelled a contract that had already been signed for human rights violations by Nigerian forces in the fight against Boko Haram. This withdrawal allowed Russia to sign a new arms contract with the country.

With the decision to return and raise its influence on the continent, and especially the Maghreb region, Russia has to make consistent efforts, at least, in addressing significant aspects of the Sustainable Development Goals (SDGs) in Africa. However, the worsening of the Libyan crisis and the deterioration of relations with European states are the only two obstacles that could limit or more seriously slow down this nascent economic cooperation. The next few years will undoubtedly be decisive for the realization of structuring projects between the Russian Federation and the Maghreb.

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AFC Backs Future Africa, Lightrock in $100m Tech VC Funding Bet

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Lightrock Africa

By Adedapo Adesanya

Infrastructure solutions provider, Africa Finance Corporation (AFC), has committed parts of a $100 million investment to fund managers—Future Africa and Lightrock Africa—to boost African tech venture backing.

The commitment to Lightrock Africa Fund II and Future Africa Fund III is the first tranche of a broader deployment, AFC noted.

The corporation added that it is actively evaluating a pipeline of additional Africa-focused funds spanning a range of strategies and stages, with further commitments expected in the near term.

This is part of its efforts to plug a persistent gap in long-term institutional capital on the continent, which constrains the development and scaling of high-potential technology businesses across the continent, especially with a drop in foreign investments.

“Through this commitment, AFC will deploy catalytic capital in leading Africa-focused technology Funds and, in particular, African-owned fund managers,” it said in a statement on Monday.

AFC aims to address the underrepresentation of local capital in venture funding by catalysing greater participation from African institutional investors and deepening local ownership within the ecosystem.

Despite some success stories on the continent, local institutional capital remains significantly underrepresented across many fund cap tables, with the majority of venture funding continuing to flow from international sources.

AFC’s commitment is designed to shift that dynamic, according to Mr Samaila Zubairu, its chief executive.

“Across the continent, young Africans are not waiting for the digital economy to arrive; they are seizing the moment — adopting technology, creating markets and solving real economic problems faster than infrastructure has kept pace. That is the investment signal.

“AFC’s $100 million Africa-focused Technology Fund will accelerate the convergence of growing demand, rapid technology adoption, youthful demographics and the enabling infrastructure we are building.

“Digital infrastructure is now as fundamental to Africa’s transformation as roads, rail, ports and power — enabling productivity, payments, logistics, services, data and cross-border trade, while creating jobs and industrial scale.”

Mr Pal Erik Sjatil, Managing Partner & CEO, Lightrock, said: “We are delighted to welcome Africa Finance Corporation as an anchor investor in Lightrock Africa II, deepening a strong partnership shaped by our collaboration on high-impact investments across Africa, including Moniepoint, Lula, and M-KOPA.

“With aligned capital, a long-term perspective, and a shared focus on value creation, we are well positioned to support exceptional management teams and scale category-leading businesses that deliver attractive financial returns alongside measurable environmental and social outcomes,” he added.

Adding his input, Mr Iyin Aboyeji, Founding Partner, Future Africa, said: “By investing in AI-native skills, financing productive tools such as phones and laptops, and expanding energy, connectivity and compute infrastructure, we can convert Africa’s greatest asset — its people — into critical participants in the new global economy. AFC’s US$100 million commitment is the anchor this moment demands.

“As our first multilateral development bank partner, AFC is sending a clear signal that digital is as fundamental to Africa’s transformation as agriculture, manufacturing and physical infrastructure. We trust that other development finance institutions, insurers, reinsurers and pension funds will follow AFC’s lead.”

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Africa ‘Reawakening’ In Emerging Multipolar World

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Gustavo de Carvalho

By Kestér Kenn Klomegâh

In this interview, Gustavo de Carvalho, Programme Head (Acting): African Governance and Diplomacy, South African Institute of International Affairs (SAIIA), discusses at length aspects of Africa’s developments in the context of shifting geopolitics, its relationships with external countries, and expected roles in the emerging multipolar world. Gustavo de Carvalho further underscores key issues related to transparency in agreements, financing initiatives, and current development priorities that are shaping Africa’s future. Here are the interview excerpts:

Is Africa undergoing the “second political re-awakening” and how would you explain Africans’ perceptions and attitudes toward the emerging multipolar world?

We should be careful not to overstate novelty. African states exercised real agency during the Cold War, too, from Bandung to the Non-Aligned Movement. What has actually shifted is the structure of the international system around the continent. The unipolar moment has faded, the menu of partners has widened, and a generation of policymakers under fifty operates without the inhibitions of either the Cold War or the immediate post-Cold War period. African publics, however, are more pragmatic than multipolar rhetoric assumes. Afrobarometer’s surveys across more than thirty countries consistently show citizens evaluating external partners on tangible outcomes such as infrastructure, jobs and security, rather than on civilisational narratives. China is generally associated with positive economic influence, the United States retains the strongest pull as a development model, and Russia, despite a louder political profile, registers a smaller and more geographically concentrated footprint. Multipolarity is not a destination Africans are arriving at. It is a working environment that creates more options and more risks at once.

Do you think it is appropriate to use the term “neo-colonialism” referring to activities of foreign players in Africa? By the way, who are the neo-colonisers in your view?

The term has analytical value when used carefully, and loses it when deployed selectively against whichever power one wishes to embarrass. Nkrumah’s 1965 formulation was precise: political independence accompanied by continued external control over economic and political life. The honest test is whether contemporary patterns reproduce that asymmetry, irrespective of the capital from which they originate. The structural picture is well documented. Africa still exports primary commodities and imports manufactured goods. Intra-African trade hovers around fifteen per cent of total trade, well below Asian or European levels. African sovereigns pay a measurable risk premium on debt that exceeds what fundamentals alone justify. Applied consistently, the lens directs attention to opaque resource-for-infrastructure contracts, security-for-mineral bargains, debt agreements with confidentiality clauses, and aid architectures that bypass African institutions. That description fits legacy French commercial arrangements in francophone Africa, Chinese mining concessions in the DRC, Russian-linked gold extraction in the Central African Republic and Sudan, Gulf-backed port and farmland deals along the Red Sea, and Western corporate practices that have not always met the standards their governments preach. Naming a single neo-coloniser tells us more about the speaker’s politics than about the structure.

How would you interpret the current engagement of foreign players in Africa? Do you also think there is geopolitical competition and rivalry among them?

Competition is real and intensifying, and the proliferation of Africa-plus-one summits is the clearest indicator. Russia has held two summits, in Sochi in 2019 and St Petersburg in 2023. The EU, Turkey, Japan, India, the United States, South Korea, Saudi Arabia and the UAE all host their own variants. Trade figures give a more honest sense of weight than diplomatic theatre. China-Africa trade reached around 280 billion dollars in 2023, United States-Africa trade sits in the 60 to 70 billion range, and Russia-Africa trade is roughly 24 billion, heavily concentrated in grain, fertiliser and arms. Describing the continent as a chessboard, however, understates how African states themselves are shaping these dynamics, sometimes through skilful diversification and sometimes through security bargains that entail longer-term costs. The Sahel illustrates the latter starkly. Between 2020 and 2023, Mali, Burkina Faso and Niger expelled French forces, downgraded their relationships with ECOWAS and the UN stabilisation mission, and welcomed Russian security contractors. ACLED data shows civilian fatalities from political violence rising rather than falling across the same period. Substituting providers without strengthening domestic institutions does not produce sovereignty. It changes the terms of dependence.

Do you think much depends on African leaders and their people (African solutions to African problems) to work toward long-term, sustainable development?

The principle is correct, and it is regularly weaponised in two unhelpful directions. External actors invoke it to justify withdrawing from responsibilities they continue to hold, particularly over financial flows and arms transfers that pass through their own jurisdictions. Some African leaders invoke it to deflect legitimate scrutiny of governance failings, repression or corruption. Genuine African agency requires more than rhetoric. The AU’s operating budget remains modest in absolute terms, and external partners still cover a significant share of programmatic activities, which shapes what gets funded. The African Standby Force, conceived in 2003, remains only partially operational more than two decades on. The African Continental Free Trade Area, in force since 2021, has rolled out more slowly than drafters hoped because the political will to lower national barriers lags the speeches. Long-term development depends on African leaders financing more of their own security and development priorities, on publics holding them accountable, and on a clearer-eyed view of what foreign forces can deliver. Whether the actors are Russian-linked contractors in the Sahel and Central African Republic, Western counter-terrorism deployments, or others, external security providers tend to address symptoms while leaving the political and economic drivers of insecurity intact.

Often described as a continent with huge, untapped natural resources and large human capital (1.5 billion), what then specifically do African leaders expect from Europe, China, Russia and the United States?

Expectations differ across the three relationships, and that differentiation is itself a marker of agency. From China, leaders expect infrastructure financing, sustained commodity demand, and a partnership that does not condition itself on domestic governance reforms. FOCAC commitments have delivered visible results in ports, railways and power generation, though Beijing itself has shifted toward smaller, more selective lending since around 2018. From Russia, expectations are narrower because the economic footprint is. Moscow’s offer is political backing in multilateral forums, arms transfers, grain and fertiliser supply, civilian nuclear cooperation in a handful of cases, and security partnerships, including those involving private military formations. The record of those security arrangements in the Central African Republic, Mali, Sudan and Mozambique deserves a sober assessment on its own terms, because the human and political costs are documented and uneven. From the United States, leaders look for market access through instruments such as AGOA, whose post-2025 future has generated significant uncertainty, alongside private capital, technology partnerships and a posture that treats the continent as more than a counter-terrorism theatre. The priorities across all three relationships are essentially the same: transparency in the terms of agreements, arrangements that preserve future policy space, and partnerships that build domestic productive capacity rather than substitute for it. The continent’s leverage in this multipolar moment is real, but it is not permanent. It will be squandered if used to rotate among external dependencies rather than reduce them.

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Africa Startup Deals Activity Rebound, Funding Lags at $110m in April 2026

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By Adedapo Adesanya

Africa’s startup ecosystem showed tentative signs of recovery in April 2026, with deal activity picking up after a subdued March, though funding volumes remained weak by recent standards, Business Post gathered from the latest data by Africa: The Big Deal.

In the review month, a total of 32 startups across the continent announced funding rounds of at least $100,000, raising a combined $110 million through a mix of equity, debt and grant deals, excluding exits. The figure represents a notable rebound from the 22 deals recorded in March, suggesting renewed investor engagement after a slow start to the second quarter.

However, the recovery in deal count did not translate into stronger capital inflows. April’s $110 million total marks the lowest monthly funding volume since March 2025, when startups raised $52 million, and falls significantly short of the previous 12-month average of $275 million per month.

The data highlights a growing divergence between investor activity and cheque sizes, with more deals being completed but at smaller ticket values.

The data showed that, despite this, looking at the numbers on a month-to-month basis does not tell the whole story of venture funding cycles as a broader 12-month rolling view presents a more stable picture of Africa’s startup ecosystem.

Based on this, over the 12 months to April 2026 (May 2025–April 2026), startups across the continent raised a total of $3.1 billion, excluding exits – largely in line with the range observed since August 2025. The figure has hovered around $3.1 billion, with only marginal deviations of about $90 million, indicating relative stability despite recent monthly dips.

A closer breakdown shows that equity financing accounted for $1.7 billion of the total, while debt funding contributed $1.4 billion, alongside approximately $30 million in grants. This composition underscores the growing role of debt in sustaining overall funding levels.

The data suggests that while headline monthly figures may point to short-term weakness, the broader funding environment remains resilient, supported in large part by continued activity in debt financing, even as equity investments show signs of moderation.

The report said if April’s total amount was lower than March’s overall, it was higher on equity: $74 million came as equity and $36 million as debt, while March had been overwhelmingly debt-led ($55 million equity, $96 million debt).

In the review month, the deals announced include Egyptian fintech Lucky raising a $23 million Series B, while Gozem ($15.2 million debt) and Victory Farms ($15 milliomn debt) did most of the heavy lifting on the debt side. Ethiopia-based electric mobility start-up Dodai announced $13m ($8m Series A + $5m debt).

April also saw two exits as Nigeria’s Bread Africa was acquired by SMC DAO as consolidation continues in the country’s digital asset sector, and Egypt’s waste recycling start-up Cyclex was acquired by Saudi-Egyptian investment firm Edafa Venture.

Year-to-Date (January to April), startups on the continent have raised a total of $708 million across 124 deals of at least $100,000, excluding exits. The funding mix was almost evenly split, with $364 million in equity (51.4 per cent) and $340 million in debt (48.0 per cent), alongside a small contribution from grants (0.6 per cent). This is an early sign that funding startups is taking a different shape compared to what the ecosystem witnessed in 2025.

For instance, in the first four months of last year, startups raised a higher $813 million across a significantly larger 180 deals. More notably, last year’s funding was heavily skewed toward equity, which accounted for $652 million (80.1 per cent) compared to just $138 million in debt (16.9 per cent).

The year-on-year comparison points to two clear trends: a contraction in deal activity as evidenced by a 31 per cent drop, and a 13 per cent decline in total funding. At the same time, the composition of capital has shifted meaningfully, with debt now playing a much larger role in sustaining funding volumes.

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