By Kester Kenn Klomegah
An expert group has completed its studies of Russia’s policy implementation processes, impact and setbacks, and the development prospects in Africa, and has presented its final report with some recommendations intended to improve and scale up existing Russia’s influence in Africa.
The report was prepared as part of a programme sponsored by the Russian Foreign Ministry. The Situation Analytical Report, compiled by 25 Russian policy experts, was headed by Sergei A. Karaganov, Dean and Academic Supervisor of the Faculty of World Economy and International Relations of the National Research University – Higher School of Economics (HSE University). Karaganov is also the Honorary Chairman of the Presidium, Council on Foreign and Defense Policy.
The 150-page report, released in November, offers new directions, some development prospects and recommendations for improving policy methods and approaches with Africa. The report identifies two key factors necessary for determining the long-term importance of the continent: (i) human capital and (ii) natural resources.
These make for the increased interest for investment in extractive industries and infrastructure, booming consumer markets rising at rates much higher than the rest of the world. With its 1.3 billion, it is a potential market for all kinds of consumable goods and for services. In the coming decades, there will be an accelerated competition between or among the external players over access to the resources and for economic influence in Africa.
Nevertheless, despite the growth of external players’ influence and presence in Africa, Russia has to intensify and redefine its parameters as it has now transcended unto the fifth stage. Russia’s Africa policy is roughly divided into four periods, previously after the Soviet’s collapse in 1991.
The first historic summit created a good basis for launching or ushering in a new fifth stage of Russian-African relations. The joint declaration adopted at the summit raised the African agenda of Russia’s foreign policy to a new level and so far remains the main document determining the conceptual framework of Russian-African cooperation.
Some of the situation analysis participants, who contributed to the latest policy report spoke very critically of Russia’s current policy towards Africa and even claimed that there was no consistent policy and/or consistency in the policy implementation at all. The intensification of political contacts is only with a focus on making them demonstrative. Russia’s foreign policy strategy regarding Africa has to spell out and incorporate the development needs of African countries.
While the number of top-most and high-level meetings has increased, the share of substantive issues on the agenda often remains small or scanty. There are few definitive results from such meetings. There are, indeed, to demonstrate “demand for Russia” in the non-Western world; the formation of ad hoc political alliances with African countries geared towards competition with the collective West. Apart from the absence of a public strategy for the continent, there is a shortage of qualified personnel, a lack of coordination among various state and para-state institutions working with Africa.
In addition, insufficient and disorganized Russian-African lobbying, and combined with the lack of “information hygiene” at all levels of public speaking were listed among the main flaws of Russia’s current Africa policy. Under the circumstance, Russia needs to compile its various ideas for cooperation with Africa into a single comprehensive and publicly available strategy to achieve more success with Africa.
In many cases and situations, ideas and intentions are often passed for results, unapproved projects are announced as going ahead. Russia’s possibilities are overestimated both publicly and in closed negotiations. The supply of Russian-made vaccines to Africa is an example. Having concluded contracts for the supply of Sputnik V to a number of African states, Russian suppliers often failed to meet its contractual obligations on time. Right now, there are many agreements signed, before and during the first Russia-Africa summit, and Russia simply fails to deliver, as promised with African countries.
“The situation analysis participants agreed that the lack of project due diligence and proper verification of contracting partners is one of the key challenges for Russian business in Africa. Many projects announced at the top and high political levels have not been implemented. The reason is usually that the projects were not properly prepared before official approval. As a result, budget funding is often spent on raw and unprepared initiatives,” according to the report.
The adoption by Russia of an open doctrinal document on cooperation with Africa will emphasize the seriousness of its intentions and create an atmosphere of trust, in which individual steps will attain greater weight and higher-level justification. In African conditions, this will mean accelerated coordination of essential decisions. It is important to note that such public strategies for the entire continent are a necessary instrument of the other countries that are active in Africa.
Unlike most competitors, Russia can afford to promote a more honest, open, direct and understandable agenda for Africa: sovereignty, continental integration, infrastructure development, human development (education and medicine), security (including the fight against hunger and epidemics), normal universal human values, the idea that people should live with dignity and feel protected. All situation analysis participants agreed with this view. The main advantage of such an agenda is that it may be more African than those of its competitors.
It is advisable to present such a strategy already at the second Russia-Africa summit and discuss and coordinate it with African partners before that. Along with the strategy, it is advisable to adopt an Action Plan — a practical document that would fill cooperation with substance between summits.
One of the most important tasks critical for the effectiveness of Russian actions in Africa is the centralization and strengthening of the role and capacity of Russian state institutions on the African track, especially in the information sphere.
The report proposes dialogues should be enhanced between civil societies, including expert and academic organizations. In a situation where a rapid expansion of trade and economic relations is difficult (for example, due to economic stagnation or a crisis in the respective country), the humanitarian track can become one of the ways to deepen relations further.
On foreign players in Africa, the report points to China as the number one active player. India’s influence continues to grow, as does the involvement of Turkey, the UAE, and Qatar, which are relatively new players in Africa. The influence and involvement of the United States, Japan, South Korea, and Brazil in the coming years, are likely to remain at the level of the past decade and will decline compared to China’s influence.
China, the EU, Germany, Turkey, Spain, and others have developed, announced and are implementing progressively their African strategies.
In general, of all the G7 countries, only Germany still has some potential to increase its influence and presence in Africa. Canada, Italy, and the UK, according to the authors, can at best maintain their influence at the same level, but it, too, will decrease compared to that of the new centres of power.
At the same time, for its part, Africa will retain its importance for Europe in the long term and may even increase being an important source of a wide range of resources. Europe needs mineral resources (cobalt, gas, bauxite, rare earth metals) in order to carry out the energy transition, and human ones in order to make up for the natural decrease of population. The European banking system and financial institutions traditionally rely on Africa as a source of funding (while African capital often seeks refuge and instability only accelerates its flight).
The influence of other non-European emerging powers, who often compete with each other, is also growing in Africa. UAE and Turkey may be mentioned among others. Their rivalry is visible in North Africa, West Africa and, especially, the Red Sea, and includes competition for control over both port infrastructure and points of possible military presence. A vivid example of this rivalry is Somalia, where Turkey is interacting and strengthening its position in Mogadishu, while the UAE, which recently lost control of the port in Djibouti, is taking a foothold in Berbera (in the self-proclaimed Republic of Somaliland).
There are indications that Israel, whose activity in many African countries, particularly in East Africa, has remained traditionally high (especially in “sensitive” areas, such as internal security, the training of security and special forces, as well as in economic, especially agriculture projects), will continue to increase its involvement in the short and medium-term.
Making efforts to maintain and expand its presence in Africa, Israel is developing contacts with the UAE and through it with a number of Gulf countries. Africa will be one of the platforms for Israel’s interaction with these countries. It will continue attempts to reduce the influence of Iran that has been carrying out its own diverse activity in Africa, seeking to expand it further.
On July 22, 2021, already after the situation analysis had taken place, it was declared that Israel had obtained an observer status to the African Union.
In the next ten years, rivalry, the balance of power and interests in the Indian Ocean will become a key factor of military and strategic importance, for this is where the interests of China, India, Pakistan, Turkey, Arab countries, Iran, as well as the United States, France and other players are likely to collide. These countries will use significant resources to strengthen their positions along the entire coast of Eastern Africa, from Egypt to South Africa, which means both risks and new opportunities for the countries of the region. The military and strategic importance of the Indian Ocean islands (including four African island states) will continue to grow.
The report proposes discussions on possible mechanisms and formats of bilateral and multilateral alliances with interested parties, whose interests in Africa may coincide with the Russian ones. For example, the potential of bilateral cooperation in Africa with India (including outside of BRICS) has not been fully tapped yet. Joint initiatives in Africa in the areas of international development assistance, education, health care, and project financing may be of interest as well. It is also advisable to explore, including at the expert level, the possibility of engaging with countries such as South Korea (widely represented in Africa), Vietnam (showing growing interest), Cuba, Serbia, and several others as part of Russian initiatives in Africa.
Without Africa, Russia would not have so many friendly partners sharing its strategic goal of building a fair polycentric world order. For all purposes, Africa seems to be a favourable region in terms of positioning Russia as a global centre of power and a country that defends peace, sovereignty, the right of states to choose development models independently, and as a protector of nature and the environment. Therefore, Russia’s increased presence and influence in Africa does not and should not cause resistance among African countries.
It is also important to move away from the “zero-sum” approach in relations with the West, even though at first glance the interests and aspirations of the EU and the U. S. in Africa seem to be opposite to those of Russia. Russia should build its policy and rhetoric in relation to Africa regardless of its rivalry with the West and should not create the impression that its policy in Africa is driven by the wish to weaken the positions of the United States and the EU on the continent.
The situation analysis participants agreed that Russia’s policy in Africa should be a derivative of Russia’s overall foreign policy goals and objectives, the three key areas being:
- a) Ensuring national security. In the African context, this means primarily the danger of new viruses, extremism, anything that may impact Russia’s national security, including competition with other centres of power.
- b) Ensuring social and economic development of Russia. Africa is a promising market for Russian products and services, and a factor that facilitates the diversification and modernization of the Russian economy. The situation analysis participants agreed that this is the main aspect today. In future, Africa can become one of the important factors in the development of some of the Russian non-resource sectors, particularly railway and agricultural engineering, automotive and wheeled equipment, as well as services (primarily education and health care).
- c) Strengthening the position of the Russian Federation as one of the influential centres in the modern world. Political partnership with African countries and the African Union as friendly players can make an important contribution to these efforts. As UN votes show, the positions of Russia and most African countries are conceptually identical or similar on many issues. None of the African countries-imposed sanctions or restrictions against Russia.
The ideological basis for cooperation at this level can be provided by the conceptual documents and ideas recognized and supported by all African countries: the approach of “African Solutions to African Problems” be strictly followed, working within the framework of the African Union Agenda 2063 and the UN Development Goals 2030.
World Bank Gives $300m Budget Support to Mozambique
By Kestér Kenn Klomegâh
By June, the World Bank plans to provide $300 million to support the national budget of the Republic of Mozambique, according to the World Bank country director for Mozambique, Idah Pswarayi-Riddihough.
After a meeting with the Mozambican Minister of Economy and Finance, Max Tonela, the global lender’s country director said that priority sectors would include health, education, energy and agriculture. The budget support proposal will be presented to the World Bank board by June.
“We are talking about the first instalment of 300 million dollars, which we hope to take to our administration for approval by 30 June this year. Then we can consider other windows of financing for 2023 and 2024”, said Pswarayi-Riddihough.
International organizations and financial institutions have returned after the Government of Mozambique started to undertake necessary reforms.
In April, the International Monetary Fund (IMF) also returned with a set of new funded programmes to Mozambique, six years after the lender halted its previous deals in the wake of a financial scandal involving three fraudulent security-linked companies, and two banks – Credit Suisse and VTB of Russia, on the basis of illicit loan guarantees issued by the government under former President Armando Guebuza.
Popularly referred to as the “Hidden Debts” scandal involving $2.7 billion (€2.3 million), the financial scandal happened in 2013, and the case has since left an image of a corrupt country and brought high-level government officials to testify as witnesses in the controversial judicial trial. It prompted 14 foreign donors, including IMF, to cut off aid and simultaneously sparked a currency collapse and debt crisis.
The IMF said in a report that its funds would be used to support sustainable, inclusive economic growth and long-term macroeconomic stability, in the world’s third poorest country measured by gross domestic product (GDP) per capita. The programmes will address transparency in debt management and the natural resource sector.
Unlike many of Mozambique’s other partners, the World Bank did not cut off financial assistance entirely after the scandal of Mozambique’s “Hidden Debts” became public knowledge in April 2016. World Bank aid continued, but in relatively small amounts, project by project.
Now the bank seems prepared to return to the modality of direct budget support. Pswarayi-Riddihough said that the improvement in good governance supposedly recorded in recent years contributed to the resumption of World Bank support. She claimed that this was an important step toward regaining the trust of the country’s partners.
Major work had been undertaken around questions of transparency and good governance, she alleged – but admitted that Mozambican civil society is continuing to demand greater advances in these areas. Mozambique’s new programme with the International Monetary Fund (IMF), she added, could give a strong signal to the market. Indeed, it will send a strong signal to all of Mozambique’s partners.
The agreement between Mozambique and the IMF, approved by the IMF Executive Board, will make $456 million available to the country. An amount of $91 million will become available immediately. At the time, Tonela said the agreement with the IMF marked the start of a new phase, leading to the resumption of sustainable growth of the Mozambican economy.
With an approximate population of 30 million, Mozambique is endowed with rich and extensive natural resources but remains one of the poorest and most underdeveloped countries in the world. It is a member of the Southern Africa Development Community (SADC).
Adesina Seeks US Support to Fund $1.5bn Africa Food Plan
By Adedapo Adesanya
The President of the African Development Bank (AfDB) Group, Mr Akinwumi Adesina, has appealed to the United States to back the institution’s $1.5 billion emergency food production plan which seeks to avert a looming food crisis in Africa caused by Russia’s war in Ukraine.
Mr Adesina was part of a team that testified about global food insecurity and persisting impacts of the COVID-19 pandemic before the US Senate subcommittee on State, Foreign Operations and Related Programs.
Senators Chris Coons (Delaware), Lyndsey Graham (South Carolina), Dick Durbin (Illinois), Chris Van Hollen (Maryland) and Roy Blunt (Missouri) also participated in the hearing.
Senator Coons, Chair of the Senate subcommittee, stressed that the US should move fast and provide sufficient funding, saying, “We should be concerned and even alarmed about the widening food security crisis that this war is causing for hundreds of millions far beyond Eastern Europe.”
On his part, Senator Graham expressed support for the establishment of a global fund for food security.
Speaking live via videoconference from Accra, Ghana, Mr Adesina said the proposed Africa Emergency Food Production Plan would result in the rapid production of 38 million tons of food across Africa over the next two years.
“The African Development Bank, with your support, is prepared to meet this new challenge and others head-on,” he said.
He explained that the plan is anchored on the provision of certified seeds of climate-adapted varieties to 20 million African farmers and with the disruption of food supplies arising from the Russia-Ukraine war, Africa faces a shortage of at least 30 million metric tons of food, especially wheat, maize, and soybeans imported from the two countries.
Speaking further, the AfDB chief said the lender would invest $1.3 billion in the plan’s implementation and called on the US to make up the funding balance.
“With US support to reduce the $200 million financing gap – we can ensure the Africa Emergency Food Production Plan’s success,” he said.
The Africa Emergency Food Production Plan is currently before the bank’s Board of Directors for approval.
Also providing testimony were Mr David Beasley, Executive Director of the World Food Programme and Ms Tjada D’Oyen McKenna, Chief Executive Officer of non-governmental organization Mercy Corps.
Ms McKenna said, “A perfect storm is leading to heightened global food insecurity, worse, much worse than the previous food crises over the past decade.” She cited the Covid-19 pandemic and climate change as factors sharpening the current food insecurity.
Mr Beasley said food insecurity had already begun to rise sharply before the war. He said 135 million people were acutely food-insecure before the onset of the pandemic. “COVID comes along and that number went from 135 million to 276 million people marching toward starvation.”
Mr Adesina, then, emphasized that the African Development Bank’s food production plan would foster the production of nutritious food rather than simply calories.
“One of the things we will be supporting through this emergency food production plan is bio-fortified foods. Sorghum fortified with iron. Nutritional supplementation is important,” he said
The bank’s president also said the AfDB was setting up meetings with international fertilizer companies to discuss ways to ensure that African farmers continued to have access to such inputs.
“If we don’t solve the fertilizer problem, we cannot solve the food problem.
According to him, the Africa Emergency Food Production Plan would have a long-term impact on Africa’s food productivity.
The initiative will “drive the structural changes in agriculture, to unleash the full potential of Africa to become a breadbasket to the world.”
Elon Musk Puts Twitter Acquisition on Hold
By Adedapo Adesanya
In a new turn of events, Elon Musk on Friday put his $44 billion deal to acquire Twitter Inc temporarily on hold.
The world’s richest man is carrying out the decision to put the Twitter acquisition on hold citing pending details in support of the calculation that spam and fake accounts indeed represent less than 5 per cent of users.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Mr Musk tweeted on Friday.
This latest move sent the shares of the social media company falling 18 per cent to $37.10 in premarket trading, their lowest level since he disclosed his stake in the company in early April and subsequently made a best and final offer to take it private for $54.20 per share.
Twitter had earlier this month estimated that false or spam accounts represented fewer than 5% of its monetizable daily active users during the first quarter when it recorded 229 million users who were served to advertise.
Mr Musk, a self-proclaimed free speech absolutist, had said that one of his priorities would be to remove “spam bots” from the platform.
This is the latest drama ensuing from the deal after its General Manager of Consumer, Mr Keyvon Beykpour, was relieved of his job on Thursday as part of a major shake-up in the company heralding Elon Musk’s takeover.
The disappointed Beykpour took to the social medial platform to announce the termination of his appointment and said he got the shocking message while still on paternity leave.
According to him, the CEO of Twitter, Mr Parag Agrawal asked him to leave “after letting me know that he wants to take the team in a different direction.” Mr Beykpour, says he never imagined leaving Twitter in such a manner and time.
Mr Musk has other specific plans for Twitter products like verifying users who pay for Twitter Blue subscriptions, charging for embedded tweets, and other changes designed to grow Twitter revenue and users.
Latest News on Business Post
- YouTube Music, Sarz Academy to Train Producers, Songwriters May 17, 2022
- Who Wears Nigerian Idol Season 7 Crown, Progress or Zadok? May 17, 2022
- Cyber Attacks: Africa Must Encourage Digital Skills Development—Experts May 17, 2022
- B2B e-Commerce: Fostering Sales, Distribution with Data Analytics May 17, 2022
- Akinwumi Adesina Turns Down Requests to Become Next Nigerian President May 17, 2022
- Oyo Catholic Diocese Gets Licence to Operate Microfinance Bank May 17, 2022
- Introduction of Capital Gains Tax Could Discourage Investors—Popoola May 17, 2022
- Afreximbank, APPO to Establish African Energy Bank May 17, 2022
- NowNow Unveils New Features to Boost Contactless Payments May 17, 2022
- Inflation in Nigeria Jumps to 16.82% in April 2022 May 17, 2022