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Russia-Africa Collaboration: Time to Act on Multidimensional Economic Initiatives

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St. Petersburg Summit 2023 Russia-Africa Collaboration

By Professor Maurice

Russian President Vladimir Putin invited African leaders and ‘non-Western friends’ to his hometown, St. Petersburg, which hosted the second Russia-Africa summit from July 27-28. In the past three years, Russias Foreign Minister Sergey Lavrov has visited several African countries. Lavrov has used shuttle diplomacy in African capitals to build support and strengthen further political contacts in preparation for the Russia-Africa summit.

According to the Kremlin report, the current geopolitical period is “extremely difficult”, and consequently, only 17 heads of state out of 55 African countries were at the summit. There were, of course, a total of 49 African delegations noted in the report on the official website. That compared to the first held in October 2019, representatives from all 54 African states, including 43 heads of state, attended the summit. Kremlin said the United States, France and other Western countries had exerted unprecedented pressure on African leaders ahead of the Russia-Africa summit to keep them from participating.

Putin delivered a keynote speech at the summit, talking about a “new world order” founded on “multipolarity and equality” among all nations. Ahead of that, Putin’s article on Russia-African relations was possibly an effort to mitigate the damage to both Russia’s standing and its reputation in Africa caused by Russia’s withdrawal from the Black Sea Grain Initiative, which allowed the export of Ukrainian grains to alleviate food security risks in a number of African countries.

Understandably speaking of the two-day Russia-Africa gathering, Kremlin Spokesman Dmitry Peskov also explained that the United States, France and other European countries, through their diplomatic missions in African countries, attempted to put pressure on the leadership of these countries. Peskov branded this meddling as “a completely outrageous fact” but stressed that it “in no way hinders the successful holding of the summit.”

In fact, experts have been discussing and interpreting this particular geopolitical, political situation and its implications. “Russia has turned sharply towards Africa to circumvent Western isolation following its invasion of Ukraine in February 2022. The St. Petersburg gathering presented another chance to show that Moscow has not been isolated and has alternative partners willing to deepen their cooperation with the Kremlin,” said Priyal Singh, a senior researcher at the Institute of Security Studies.

Nevertheless, it has already become a historical landmark in this new chapter of Russia-African relations, especially in this period of global political tensions and fierce economic competition, with Africa being the centre of focus. Today, Africa is the most promising and, at the same time, the fastest-growing region in the world. Investing in Africa is a popular trend and offers obvious advantages. Investing in Africa is a popular trend and offers obvious advantages as leading global powers seek diverse cooperation across the continent, considered the last frontier. In practical terms, African leaders are also setting comprehensive targets for improving performance and making strategic choices based on their development paradigms.

Of course, there are many distinctive problems – ranging from governance system through economic to socio-cultural – in the region. The major difficulties are seemingly connected with deficiencies in infrastructure, logistics, and energy. But economic growth continues, which indicates the possibility of pushing further economic development from its current levels. The attractiveness of Africa as a place for business is expected to grow, for instance, with the introduction of the African Union’s project: African Continental Free Trade Area (AfCFTA).

It is home to over 1.3 billion inhabitants, comprising 55 states, 37 cities with over a million residents, over 30 million square kilometres of territory, and 60% of its land is fertile. Africa is the highest concentration of natural and human resources. According to various estimates, 12% of the world’s oil and 18% of its gas reserves are concentrated there.

Scanning through official reports, we can underscore the significance of the late July summit as joining collective efforts for maintaining sustainable peace, development progress and working towards a successful and prosperous future. The ‘Africa We Want’ is to create and prepare better living conditions for the next generations. Based on the past, Russia had consistently supported African peoples in their struggle for liberation from colonial oppression. After half a century, Russia has to show its support for Africa’s development and for its 1.3 billion population.

It is increasingly becoming visible that most African countries are showing signs of pragmatism and forward-looking for economic collaboration and partnership from external players. Africa is working to find its worthy place and assert its influence in the new multipolar world. In supporting this argument, we can quote President Vladimir Putin, who wrote in his pre-summit article, “The strategic areas of interaction are set by the decisions of the first Russia-Africa summit held in Sochi in late October 2019.”

In stark reality, there were brilliant speeches and unique deliberations which underline multi-dimensional initiatives. As it is well-known, Russia aims to foster long-term and deeper multi-dimensional collaboration between African countries and to accelerate and support the continent’s development. Russia is building on its Soviet-era legacy, using the huge reservoir of goodwill with Africa. Its primary position is based on respect for sovereignty and raising Africa to the global stage, for instance, at G-20 and the United Nations.

Russian President Vladimir Putin has severally noted that the states of Africa are constantly increasing their weight and their role in world affairs, asserting themselves more and more confidently in politics and the economy. “We are convinced that Africa will become one of the leaders of the emerging new multipolar world order,” according to Putin.

In terms of strategic economic directions, during the pre-summit sessions at Valdal Discussion Club, many questions were hypothetically raised. Valdai was established in 2004, with a goal is to promote dialogue between Russian and international intellectual elite and to make an independent, unbiased scientific analysis of political, economic and social events in Russia and the rest of the world.

More than 60 people from 12 countries were invited to participate in the preliminary discussions, to make the final synchronisation of watches at the expert level in the run-up to the summit. In the new geopolitical conditions, Africa is becoming one of the priorities of Russian foreign policy.

Significant to note that both Russian and African experts concluded that in the near future, Russian initiatives will always be a priority. One session focused on Economic Relations: Three Years’ Audit After the First Russia-Africa Summit. Possible questions raised were: So what should Russia’s strategy be in Africa today? What are the results of the implementation of the agreements achieved at the first Russia-Africa summit, including at the bilateral level? What are the reasons for the shortcomings? What needs to be done to improve the effectiveness of Russian-African economic cooperation? What makes economic cooperation with Russia attractive for African countries? What are Russia’s comparative advantages in the context of parallel tracks of cooperation, such as China-Africa, Turkey-Africa, USA-Africa, and others?

We should be passionate about the new stage of development. This is why I would like to draw your attention to the fact that the history of cooperation between Russia and Africa has deep historical roots. We are on the verge of a new economic miracle – the African miracle. Therefore, Africa is the best environment for building long-term partnerships.

We always make a long list, including renewable energy, infrastructure and logistics, industry and high technology production, innovative technologies and communications, security and cybersecurity, the digital economy, ecology and agriculture, education and training,  and tourism and recreational resources.

The struggle of foreign powers in Africa is not only for the control of raw materials but also for political influence over the continent. The arrival of new players in Africa provides an opportunity for the continent to choose the best partners while taking their own interests into account.

There should be some shifts in narratives. And so for Russia, popular opinions are that it establishes equal conditions for cooperation, mutually beneficial cooperation. That it makes the game on the African continent fair and open so as to balance the presence of other powers.

After deliberations in St. Petersburg, both Russia and Africa adopted a comprehensive Declaration, a number of Joint Statements and approved the Russia-Africa Partnership Forum Action Plan 2023 to 2026. Reports said an impressive package of intergovernmental and inter‑agency agreements and memoranda with individual states as well as regional associations of the continent were also signed.

In total, five documents are planned for signing: this is a general political declaration, a joint action plan for 2023-2026, and three sectoral documents that relate to the fight against terrorism, non-deployment of weapons in outer space and international information security. It is however hoped that these documents would become a serious platform for joint actions to create a new configuration of international relations based on equal cooperation, the idea of a multipolar world.

Acknowledging the fundamental fact that the multipolar world has practically evolved and gained momentum. Western countries are noticeably losing their ground across Africa. The point is to change the global balance of power on the world stage. The West is no longer a unique technological, political and military centre that has the ability to exert a decisive influence on other centres of influence, but these are Russia, China, India, the BRICS countries in general, which many states, including African ones, are striving to get into.

African countries are looking to strike a balance. In building up relations with Russia, they do not make a choice: Russia or the West. They develop relations with us in the same way as with China, India, Turkey, the European Union. Their main task is to meet their national interests and development needs. Regardless of whether unipolar, bipolar or multipolar, the most relevant factor needed is to have a common platform and strengthen each other in terms of economic development and in all other respects, thereby move forward towards solving the problems of an integrated continental development.

In conclusion, Russia is ready to help strengthen African countries’ sovereignty and contribute to Africa becoming a key partner in the new system of the multipolar world order. It signals practical decisions on building up cooperation. We are reminded that Africa has adopted a plan of action until 2063. Key points: integration, prosperity and peace. Despite security and economic challenges, there are good opportunities for future mutual cooperation, and a lot more substantial challenges and tasks were refixed and renewed at the second Russia-Africa Summit.

Professor Maurice Okoli is a fellow at the Institute for African Studies and the Institute of World Economy and International Relations, Russian Academy of Sciences. He is also a fellow at the North-Eastern Federal University of Russia

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

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Synthetix to Acquire Derive to Strengthen Position in Decentralized Derivatives

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Synthetix Acquire Derive

By Modupe Gbadeyanka

To strengthen its position in decentralized derivatives, Synthetix is considering the acquisition of a decentralized onchain options AI-powered platform, Derive.

Derive, known for its innovative structured product offerings, has quickly gained recognition in the DeFi space for bringing intuitive and institutional-grade financial tools to the blockchain.

By integrating Derive’s front-end expertise and RWA strategies with Synthetix’ robust derivatives and liquidity infrastructure, Synthetix is positioned to accelerate the adoption of decentralized derivatives trading.

The strategic acquisition marks a significant step forward in Synthetix’s mission to launch the most renowned decentralized derivatives exchange on Ethereum Mainnet.

Under the terms of the agreement, Synthetix has proposed to acquire Derive in a token to token transaction.

The exchange ratio will be 27 $DRV <> 1 $SNX, reflecting an approximate $27 million valuation. This transaction is subject to approval from both the Synthetix and Derive community votes, taking place next week.

The acquisition is structured as a token-based merger, with Derive’s community and contributors joining Synthetix governance. The combined team will continue delivering on the Synthetix V4 roadmap and roll out options markets later this year.

“We’re combining the best onchain derivatives stack in DeFi – Derive, with one of the most iconic DeFi projects in its history – Synthetix.

“This deal will get maximum leverage out of Derive’s technical stack, and bring us closer to our shared goal of accelerating the adoption of decentralised derivatives.

“This is just the beginning, and we can’t wait to see the impact of this team up on the market,” the founder of Derive, Mr Nick Forster, stated.

“The acquisition of Derive marks a significant milestone in Synthetix’s pursuit of developing the most robust decentralized derivatives platform in the crypto ecosystem.

“We are delighted to welcome Derive into the Synthetix family, leveraging our combined expertise to drive innovation and accelerate the launch of a comprehensive decentralized derivatives platform on Ethereum,” Mr Benjamin Celermajer of Synthetix stated.

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Relief Across Markets as US-China Agree to Trade Deal

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us china trade deal

By Adedapo Adesanya

The global markets are experiencing relief as the United States and China, the world’s two largest economies, have agreed to slash tariffs on each other, to ease effects of a trade war.

Speaking after talks with Chinese officials in Geneva, US Treasury Secretary, Mr Scott Bessent told reporters that the two sides had reached a deal for a 90-day pause on measures.

US trade representative Jamieson Greer said so-called reciprocal tariffs were now at 10 per cent each.

Business Post reports that in real terms, the deal means the US is reducing its 145 per cent tariff announced by President Donald Trump to 30 per cent on Chinese goods.

A tariff of 20 per cent had been implemented on China when President Trump took office over what his administration said was a failure to stop illegal drugs entering the US.

China has agreed to reduce its 125 per cent retaliatory tariffs to 10 per cent on US goods.

Sector-specific tariffs, such as the 25 per cent tax on cars, aluminium and steel, remain in place.

Last month, President Trump announced a 90-day pause on the reciprocal tarrifs. However, China was the only country exempt from the pause on the retaliatory tariffs above the base 10 per cent levies.

The development had impacted many markets across the world from stocks to oil to bonds and minerals.

Mr Bessent said after a weekend of negotiations in Switzerland, the countries had a mechanism for continued talks.

It is the second major trade announcement made by the US in the last week, after a deal was secured with the United Kingdom on Thursday.

The move signals a willingness from the Americans to make deals on tariffs.

The news was received positively by major markets.

Brent crude is currently up 2.9 per cent to $65.78 per barrel while the US West Texas Intermediate (WTI) is up 3.1 per cent to $62.91 a barrel.

Asian stock markets on Monday as major indexes were up. In China, the Shanghai Composite stock index rose 0.8 per cent, the Shenzhen Component gained 1.7 per cent, and Hong Kong’s Hang Seng index was up nearly 3 per cent.

Korea’s Kospi grew 1.1 per cent, Japan’s Nikkei was up 0.8 per cent while India’s Nifty 50 index of most valuable companies gained more than 3 per cent, as per Sky News.

CNBC reports that US stocks look set to rise on the open, based on after-hours trading. Wall Street’s tech-heavy Nasdaq is expected to rise by 3.3 per cent, and the S&P 500 index of companies relied on to be stable and profitable by 2.5 per cent.

Mr Bessent also said, “As long as there is good faith effort, engagement and constructive dialogue, then we will keep moving forward,” in response to questions from journalists.

The market will await further developments and possible ease to recent headwinds.

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American Robert Prevost Emerges as New Pope 

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Robert Prevost

By Adedapo Adesanya

The new pope of the Catholic Church has been revealed as Robert Prevost of the United States, the first American pontiff in history.

Following his emergence, he will be known as Pope Leo XIV.

Voting commenced on Wednesday, and after three rounds of black smoke, white smoke billowed above the Sistine Chapel on Thursday evening.

This is the signal that cardinals had selected a new pontiff on the second day of the conclave.

Prevost, age 69, from Chicago, Illinois, is a leader with global experience. He spent much of his career as a missionary in South America and served as a Bishop in Peru. He most recently led a powerful Vatican office for bishop appointments. He is expected to build on Pope Francis’ reforms.

There were 133 voting cardinals, who had all been sequestered inside the Vatican during the conclave. Any one of them needed two-thirds of the vote to become the next pope.

“Peace be with you all,” said Leo XIV in his first remarks as pope.

“This is the first greetings of the resurrected Christ, the good shepherd who has given up his life for God,” he said, explaining the choice of his greeting. “And I should also like this greeting of peace to enter our hearts and our families.”

Leo XIV looked visibly emotional as he waved to the adoring crowd in the square below the balcony.

A leader with global experience, he spent much of his career as a missionary in South America and most recently led a powerful Vatican office for bishop appointments. He is expected to build on Pope Francis’ reforms.

He worked for a decade in Trujillo, Peru, and was later appointed bishop of Chiclayo, another Peruvian city, where he served from 2014 to 2023.

Prevost also holds a Peruvian passport and has been a Peruvian citizen since 2015.

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