World
Reassessing Russia’s Engagement with Zimbabwe
By Kestér Kenn Klomegâh
As often reiterated, Russia and Zimbabwe have had excellent bilateral relations, dating from the time of Zimbabwe’s struggle for political independence. The Soviet Union supported with military equipment, and training specialists and offered humanitarian supplies, and until today Zimbabwe is still looking for such bilateral relations. A comprehensive analysis indicates that not much is visible on the landscape of Zimbabwe, except frequent shuttling visits of government officials between Harare and Moscow.
The list of those official visits can be found on government websites. Of course, not all have been documented there such as those dealing with military-technical cooperation and intelligence services. But it can also be recalled here in 2022, Speaker of the National Assembly of the Republic of Zimbabwe Jacob Mudenda and his delegation paid a reciprocal working visit late September to Moscow, held separate meetings with Russian Upper House Speaker Valentina Matviyenko and Chairman of the State Duma Vyacheslav Volodin, and finally addressed the plenary session of the State Duma.
Upper Chamber Senator Matviyenko and Lower Chamber Legislator Volodin, both have similar unique declaratory statements emphasizing the fact that Russia considers cooperation with African countries to be a foreign policy priority. And that Zimbabwe is Russia’s priority in the southern African region.
Upper House Speaker Valentina Matviyenko visited and donated, as Zimbabweans expected from Moscow, huge gifts in June 2022. During her conversation with the head of the charitable foundation and First Lady of the Republic of Zimbabwe Auxilia Mnangagwa Matviyenko noted mutual understanding that has developed in Russian-Zimbabwean relations. She, in addition, drew attention to the fact that the Angels of Hope charity fund coordinates the selection of candidates from low-income families for higher education in Russia under the quota of the Government of the Russian Federation.
“We highly appreciate it that the Zimbabwean leadership remains committed to the development of bilateral relations and mutually beneficial cooperation with Russia. And that Zimbabwe is resolutely resisting the unprecedented pressure of the collective West led by the United States, their open attempts to dictate their will,” Matviyenko said.
Besides the above charity, the Russia-Zimbabwe Intergovernmental Commission on Economic, Scientific and Technical Cooperation has held a series of meetings in Harare and Moscow. Several agreements have been signed over the years to engage seriously in economic sectors, including, infrastructure development, transport, agriculture, industry nuclear technology et cetera. An increasing interest points to the Russian business community in building a beneficial partnership with Zimbabwe. For these to materialize, frequent interactions have been made possible, based on decades of strong ties of friendship and cooperation since the days of Zimbabwean Robert Mugabe.
One major landmark was Zimbabwe and Ethiopia, among African countries, have signed agreements with Russia to cooperate on the peaceful use of nuclear technology on the sidelines of the Russia-Africa Economic and Humanitarian Forum in St Petersburg, in July 2023. Rosatom has offices in Cairo and Pretoria with the responsibility of managing the nuclear projects in Africa.
For decades, Rosatom has signed (and resigned) agreements with African countries for the construction of nuclear plants for civilian purposes. Today, African countries face major challenges in ensuring energy security. Experts believe that nuclear technologies can become a driver for socio-economic development and a comprehensive solution to systemic continent-wide problems. In addition, nuclear, of course, offers long-term sustainability and diversity away from solar and hydro.
These unique steps seemingly suggest a pragmatic approach prioritizing Africa’s energy security, on one hand. It is interesting to note, on the other hand, that Russia’s nuclear agreements with 28 African countries have been fully undertaken and completed primarily due to a lack of finance. The key hindrance is the cost of producing nuclear energy how best to deal with nuclear waste to maintain a safe environment, and the risk that it poses from poor handling and management. After the first Russia-Africa summit held in 2019, Russia has, as an exceptional case, granted a $29 billion loan for the nuclear plant construction in Egypt based on its strategic bilateral relations. The nuclear agreement was signed as far back as 2015.
President of the Republic of Zimbabwe, Emmerson Dambudzo Mnangagwa, since the beginning of the Russia-Ukraine crisis and the ‘special military operation’ aims at denazifying and demilitarizing Ukraine, has utterly rejected the United States’ appeal to support sanctions against Russia. It has, therefore, won Russia’s sympathy as a ‘friendly’ African ally. In return, Zimbabwe was given in late 2023 what was termed ‘delivery at no-cost’ grains and fertilizers, these were in addition to supplies of military equipment and training of Zimbabwean citizens on state budget at educational institutions in the Russian Federation. According to the official statistics, there are currently 400 Zimbabweans studying in the Russian Federation.
Mnangagwa, while visiting as a guest speaker at the 27th St. Petersburg International Economic Forum (SPIEF) and his special meeting with President Vladimir Putin in June 2024, was excited at winning favours by explaining, at length, how the United States has been supporting neighbouring southern African countries. Ultimately, Mnangagwa was to get better treatment for a broader supply of arms and weaponry, and food to feed the impoverished population. He did not negotiate for investment in agriculture, he did not suggest the construction of, at least, a kilometre road or a local school in any of the rural regions in Zimbabwe.
What was important for Zimbabwe, Mnangagwa asked for the chance to enhance bilateral cooperation, and that Zimbabwe is “one of the few countries in southern Africa that is regarded as anti-West” so there is a concrete basis for pursuing more consolidated relations to escape being further isolated in southern Africa. “And there is a lot more that we can open for the Russian Federation to participate in our economy, especially in the mining sector and agriculture,” he stressed in his discussion.
Russia’s perspectives on the struggle against growing neo-colonialism and Western-style tendencies, most probably, have to do with pushing for large-scale development programmes, and support for attaining economic sovereignty. If that is the case, then Russia needs to borrow a single page from China. Zimbabwe has the full-fledged confidence to opt for hosting the third Russia-Africa Summit in Harare simply because China has given that country a new parliamentary village with modern facilities for large conferences. Compared, Russia has not constructed a single one-kilometre road in the transport sector in Zimbabwe consistently claims to have under its umbrella excellent relations from the Soviet times.
The new parliament building is located in Mount Hampden, approximately 25 kilometres (16 mi) northwest of Harare. The parliamentary chambers can accommodate up to 650 legislators, their offices, conference rooms and meeting spaces. The engineering, procurement and construction (EPC) contract was awarded to Shanghai Construction Group, which erected the building between December 2018 and April 2022. A Chinese government delegation officially handed over the building complex to the government of Zimbabwe on 26 October 2023. The construction was fully funded at the cost of nearly $200 million by the Government of China, according to reports by Zimbabwean media.
Perhaps generally, Russia aspires to position itself as a leader in Africa, it thus far remains with its aspirations in the media headlines. Uprooting neo-colonialism requires investment in building economic sectors designed to improve the living standards of the impoverished population, creating employment for the youth. Russia’s footprints, such as providing infrastructure in agriculture, industry, transport and other sectors, are invisible in the continent. The fundamental conservative assessment indicates that Africa is largely at the bottom position in terms of overall development in the southern hemisphere, what is now called the Global South.
Russia is gathering the Global South as a force against the United States and Western Europe. Africa has been given all kinds of descriptions, one being having “unparalleled natural wealth and boundless potentials,” and by this definition, Russia has to determine its proposed commitment to driving economic diversification, transformation and development across the African continent. That, however, its rhetoric has reached the highest peak of the African mountains.
Zimbabwe has the world’s second-largest platinum reserves after South Africa. Russia declared interest in the development of a platinum deposit in Darwendale. Several reports later confirmed that Russians had abandoned their lucrative platinum project contract that was signed for $3 billion in September 2014, the platinum mine in the sun-scorched location about 50 km northwest of Harare, the Zimbabwean capital. With great pomp and pageantry, Foreign Minister Sergey Lavrov launched the $3 billion Russian project back in 2014, after years of negotiations, with the hope of raising its economic profile in Zimbabwe.
Reports also indicated that the project was expected to involve a consortium consisting of the Rostekhnologii State Corporation, Vneshekonombank and Vi Holding in a joint venture with some private Zimbabwe investors as well as the Zimbabwean government.
Mnangagwa has been committed to opening up Zimbabwe’s economy to the rest of the world to attract the much-needed foreign direct investment to revive the ailing economy and make maximum use of the opportunities for bolstering and implementing some large projects in the country. That Zimbabwe would undergo a “painful” reform process to achieve transformation and modernization of the economy.
Zimbabwe has various potential investment sectors besides mining. There is a possibility of greater participation of Russian economic operators in the development processes in Zimbabwe, and southern Africa. But Russians need to move away from too much rhetoric and make concrete economic engagement over the forthcoming years.
Zimbabwe, a landlocked country in southern Africa, shares a 200-kilometre border on the south with South Africa, bounded on the southwest and west by Botswana, on the north by Zambia and the northeast and east by Mozambique. Zimbabwe is a member of the Southern African Development Community (SADC).
By Modupe Gbadeyanka
A funding support of up to €15 million has been provided by Swedfund for small and medium-sized enterprises (SMEs) across Africa.
The money would be managed and disbursed by a private equity initiative, AfricInvest Small Cap Fund.
AfricInvest integrates environmental, social and governance (ESG) principles with a focus on gender equality and sustainability.
The fund aims to invest at least 30 percent of its portfolio in companies that are women-led or have significant female ownership.
Moreover, climate-related objectives will be embedded in the investment process.
Swedfund’s support will help ensure that African SMEs have the resources and guidance they need to grow responsibly and effectively.
With decades of experience and a strong presence across the continent, the fund aims to invest in a range of sectors including agribusiness, healthcare, education, consumer goods, manufacturing and services, and is therefore well positioned to contribute to economic growth and social development.
The choice of SMEs is because they are a cornerstone of economic development, driving job creation and innovation.
However, many companies face significant barriers to accessing capital. This indirect investment can enable more growth-oriented investments to unlock the full potential of SMEs in Africa.
Commenting on the funding support, the Investment Director for Sustainable Enterprises at Swedfund, Sofia Gedeon, said, “This investment will allow Swedfund to expand its support for underserved businesses across Africa.
“AfricInvest aligns its investments with measurable sustainability outcomes, allowing us to drive economic growth, create jobs and promote greater inclusion. At the same time we set new benchmarks for responsible investing.”
By Kestér Kenn Klomegâh
South Africa, for the first time, heads the G20, a multilateral organization, and it is taking pecuniary measures to balance the heightening complexities around the world. With President Donald Trump in the helm of power in the United States, the most different pragmatic approach in being adopted towards a number of issues ranging from politics through the global economy to social and humanitarian parameters. Geographical regions, including Africa, are also affected to a distinctive extent.
Below is an insightful interview conducted by Kestér Kenn Klomegâh with Mr Tariq Khan, a Senior Research Associate at the Institute for Global Dialogue (IGD) associated with the University of South Africa. Tariq focuses on economic, security and diplomatic issues in areas such as Pakistan-Africa Relations, Africn Relations, and Major Powers’ relations with Africa, Asia-Africa Relations and South-South Cooperation, Maritime Affairs. In this interview, Tariq Khan discussed Global Powers, G20 and Africa relations in the emerging new world. Here are the significant excerpts.
What are the practical implications of the United States, a major contributor among G20 members, skipping South Africa’s February summit?
The absence of the United States at the South Africa G20 summit poses diplomatic and strategic connotations of some importance. As a key global economic player, the U.S. influences major policy decisions within the G20, and its non-attendance could signal a de-prioritization of Africa within its foreign policy agenda.
First, it seems that there is no real commitment to the critical issues which the African continent is facing including debt relief, fair trade and development funding. South Africa, as the only African G20 member, has been a strong advocate for the continent’s economic priorities. If the Washington give unimportance or sideline this engagement, it risks reinforcing the perception that Washington is more focused on geopolitical tensions in Europe and Asia while offering only rhetorical support to Africa.
In adding up, such a move will give BRICS a boost, of which South Africa is a component and plays a prominent role. With BRICS growing and positioning itself as an alternative to Western-led institutions, the U.S. absence might encourage African nations to deepen their economic and political cooperation within BRICS which will lead to reduce reliance on Western-dominated frameworks.
Finally, absence of US could deteriorate or weaken the trustworthiness or credibility of the G20 as an inclusive global forum. South Africa has effectively championed the inclusion of the African Union (AU) as a permanent G20 member. If the U.S. disengages from the summit, it could slow momentum for integrating African priorities into global decision-making, reinforcing existing frustrations about Western dominance in multilateral institutions.
Can South Africa’s presidency change perceptions of the G20’s role in global politics and its contributions to Africa’s development?
South Africa’s G20 presidency presents a significant opportunity to reshape Africa’s role in global governance. Traditionally, the G20 has been dominated by the economic priorities of Western and Asian powers, often sidelining the challenges of the Global South. As the only African G20 member, South Africa can drive a more inclusive agenda through three key areas:
- Reinforcing Africa’s Economic Potential: South Africa can emphasize Africa’s role as a strategic investment destination rather than just an aid recipient, advocating for reforms in global financial institutions to support Africa’s economic growth.
- Advocating for Structural Reform: Building on its success in securing AU membership in the G20, South Africa can push for concrete actions such as debt restructuring, fair trade terms, and increased voting rights for Africa in institutions like the IMF and World Bank.
- Shaping Global South Solidarity: By aligning G20 priorities with those of BRICS and the broader Global South, South Africa can challenge the perception that the G20 merely upholds Western economic dominance and instead position it as a balanced institution where emerging economies wield real influence. On the other hand, South Africa must navigate its complex diplomatic positioning. At the same time as maintaining strong Western ties, its BRICS membership and increasing alignment with China and Russia could generate tensions. Achievement will depend on its capability to bridge these divides and promote an Africa-first agenda.
In the context of a rapidly changing global landscape, do we see G20 competing or collaborating with BRICS?
The relationship between G20 and BRICS is distinguished and characterized by both competition and selective collaboration. BRICS as an organization has turned out to be more and more self-confident to challenge Western domination in global governance, mainly following its expansion to Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia and other states.
This reflects a broader shift toward a multipolar world where such organizations similar to the G20 face substitute governance frameworks. Though, collaboration between G20 and BRICS remains indispensable. Several BRICS members such as South Africa, China, India, and Brazil are also in the G20 which means they have an interest in shaping both platforms rather than abandoning one for the other.
Cooperation on issues such as debt relief, climate change and development financing is promising, but ideological and strategic differences may persist. If the G20 remains inflexible in its Western-centric approach, then BRICS could become a direct competitor, attracting more nations disappointed with Western-led economic policies.
The challenge of South Africa is to balance its engagement with both which ensures that interests of Africa are advanced across multiple platforms and could not be compromised its broader economic and diplomatic objectives.
What is the future of the G20, particularly in relation to Africa, given BRICS’ growing influence?
The G20’s significance to Africa will depend on whether it can transition from symbolic commitments to tangible actions. Traditionally, African engagement with the G20 has been marked by unfulfilled promises. To remain a meaningful partner for Africa, the G20 must focus on:
- Debt Relief and Fair Financing: Many African nations struggle with unsustainable debt burdens. The G20 must push for genuine restructuring mechanisms rather than perpetuating cycles of dependency.
- Infrastructure Investment: Africa’s development hinges on infrastructure, yet financing remains a challenge. The G20 should support merged financing models that combine public and private investment in sustainable projects.
- Technology and Industrialization Support: Africa’s long-term prosperity depends on industrialization and technological advancement. The G20 must facilitate technology transfer and capacity-building initiatives that give power to African economies. If the G20 fails to deliver meaningful reforms, African nations may increasingly turn to BRICS, which is enthusiastically positioning itself as a more responsive and approachable alternative.
Should African leaders first reform the African Union (AU) and regional blocs like ECOWAS before expecting changes in global institutions?
Of course yes, African leaders must first strengthen internal institutions before expecting global institutions to treat the continent as a unified force. Weak regional organizations undermine Africa’s bargaining power in global negotiations.
Key areas for reform include:
- Financial Independence: Reducing reliance on external donors would allow the AU and regional blocs to act with greater autonomy in decision-making.
- Stronger Enforcement Mechanisms: Regional organizations need better mechanisms to uphold democratic norms and economic agreements to prevent instability from weakening Africa’s global influence.
- Policy Coordination: A fragmented Africa cannot effectively engage with global institutions. Greater intra-African coordination is needed to present a unified front in international forums. If Africa wants to negotiate from a position of strength, its institutions must be stable, credible, and self-sufficient. Strengthening the AU and regional organizations will enhance Africa’s ability to engage effectively with both G20 and BRICS.
Final Thoughts: The Vision of ‘Africa We Want’
The realization of the “Africa We Want,” as outlined in the AU’s Agenda 2063, requires strategic engagement with external partners. However, Africa must ensure that these partnerships are mutually beneficial rather than reinforcing external dependencies. South Africa’s role is fundamental in this vision. As a bridge between the West, BRICS, and the African continent, it must advocate and promote policies that advance Africa’s long-term interests and objectives. Africa’s engagement with the G20, BRICS, and other international platforms must be strategic to ensure that these institutions contribute to Africa’s broader development agenda rather than perpetuating historical imbalances. In the end, Africa’s success in the global arena will depend on its ability to take advantage from both external partnerships and internal reforms.
By Adedapo Adesanya
The Pan-African Payments and Settlement System (PAPSS), a pan-African payments infrastructure provider designed to facilitate trade on the continent is piloting an African currency market platform to boost commerce across borders in the region.
According to its chief executive, Mr Mike Ogbalu, the service backed by 15 central banks on the continent, expects to add the platform later this year.
He said this will complement its payments infrastructure that it says is currently integrated with 150 commercial banks.
“The rates will be market driven, and our system is able to do a matching based on the rates offered by the different participants in our ecosystem,” the CEO of PAPSS, told Reuters in an interview from Cairo.
The Africa Currency Marketplace, as the platform will be known, will allow parties to exchange local currencies directly, Mr Ogbalu said.
Africa has faced challenges in its foreign exchange markets with challenges ranging around liquidity.
Already, South Africa and Nigeria dominate geographically and much of the wider trading centre around local and hard currency pairs. Those seeking other African currencies must typically secure Dollars first.
However, the region has also seen some major currency reforms with countries such as Nigeria, Egypt and Ethiopia pushing ahead with efforts to move to more market-based regimes.
There have been frequent case of companies not being able to repatriate their revenue from other countries in the region, whenever violence or economic problems cause Dollar shortages in markets like South Sudan or the Central African Republic.
Mr Ogbalu cited the example of an Ethiopian airline selling Naira-denominated tickets in Nigeria, which could then exchange its naira revenue with a Nigerian company trading in Ethiopia using the Birr.
“Our system will intelligently match them and then party A will get Naira in Nigeria and party B will get birr in Ethiopia. The transaction just completes without any third-party currency being involved at all,” Mr Ogbalu said.
He also noted that companies operating in the region have been forced to take a write down every financial year to account for currency revaluations in markets with volatile currencies.
He added that others have invested in assets like real estate to try to preserve the value of their assets in such markets.
There have been attempts to use cryptocurrencies like Bitcoin to get around that problem but their usage is still low, partly due to lack of legal frameworks to support their use in markets like Kenya.
“Those are some of the things we think that this African currency marketplace will unlock,” he said.
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