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Russia Contributes 35% of Global Arms Export to Africa—Envoy

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35% of global arms export

By Kestér Kenn Klomegâh

Russia has been accused of not doing enough for the growth of Africa, especially since the collapse of the Soviet Union.

It was observed that Russia-African diplomacy had been marked by several bilateral agreements that are yet to be implemented.

According to official documents, 92 agreements worth a total of $12.5 billion were signed during the symbolic African leaders’ gathering in late October 2019, and Russia has done little to implement them since then.

The joint declaration is a comprehensive document that outlines the key objectives and tasks required to elevate the entire relationship to a new qualitative level.

Long before the summit, there were mountains of promises and pledges that were never fulfilled. Several meetings of various bilateral intergovernmental commissions have taken place in both Moscow and Africa.

According to the Russian Ministry of Foreign Affairs, over 170 Russian companies and organizations submitted 280 proposals relating to various projects and businesses in Africa.

 As Russia prepares for the next summit, which will be held in St. Petersburg in July 2023, African leaders have indicated their willingness to actively participate, at the very least, to listen to rousing speeches, sign more new agreements, and finally pose for group photos.

However, many experts and top African diplomats question the substance of discussing additional opportunities and effective efforts to build and strengthen Russia-African relations.

The revival of Russia-Africa relations must address existing challenges while also taking a results-oriented approach to pressing African issues. Taking into account the views and opinions expressed by African politicians, businesspeople, experts, and diplomats about the situation in Africa is one of them.

In practice, while Russia reaffirms its desire to return to Africa, it has yet to demonstrate a visible long-term commitment to collaborating with appropriate institutions to advance sustainable development across the continent.

Professor Abdullahi Shehu, Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Nigeria to the Russian Federation with concurrent accreditation to the Republic of Belarus, delivered a lecture on “Africa-Russia Relations: Past, Present, and Future” to young diplomats and students of the Diplomatic Academy of the Russian Federation in mid-October.

Ambassador Shehu talked a lot about African history. He focused on the effects of the times before, during, and after contact with European powers and the neo-colonization of African states that happened after that.

He also discussed Africa’s relations with the Soviet Union, which began in large part after the independence of several African states in the 1960s. He emphasized the contributions to Africa’s decolonization struggle, as well as the numerous areas of cooperation that have existed between Africa and Russia over the years.

Professor Shehu emphasized the existence of several bilateral agreements with African countries, saying between 2015 and 2019, Russia and African countries signed a total of 20 bilateral military cooperation agreements. Many Russian companies, including Lukoil, Gasprom, Rosatom, and Restec, are in Nigeria, Egypt, Angola, Algeria, and Ethiopia’s energy and power industries.

But on the other hand, Russia has performed dismally in Africa’s energy sector and many other important economic spheres over the years.

“Unfortunately, due to Rosneft’s lack of interest in doing business in Africa, these agreements have not materialized. Furthermore, Russia’s Rosatom has also signed nuclear energy agreements with 18 African countries, including Nigeria, Egypt, Ethiopia, and Rwanda, to meet those countries’ power needs but has not been successful in building nuclear plants in Africa.

“Despite the tidal wave of new Africa-Russian relations, there are still obstacles, as well as new economic conditions and geopolitical realities. Acceptance of these new realities is critical in order to properly manage Africa’s expectations from Russia, at least in the short term,” the envoy said.

On the indiscriminate export of arms and military equipment, Ambassador Shehu stated, “However, Russia’s increasing export of arms to the African continent may exacerbate insecurity and instability, as well as increase the level of crime and criminal proclivity. So, it is in Russia’s strategic interest to be very picky about which African countries it sells weapons to. The deployment of private Russian mercenary groups and other private military groups in African countries is of particular concern and strategic importance to Africa.”

Support for Africa’s democratic institutions and agencies will lead to a more stable Africa, which is in Russia’s overall long-term interest and positive image rather than immediate short-term economic and financial gain, he said in his lecture, adding that Russia contributes approximately 35% of global arms export to the African region.

Given the difficulties that most African countries face in providing adequate power and energy, the number of Memorandums of Understanding (MOU) signed by Rosatom, Russia’s nuclear power company, with at least 14 African countries, is encouraging. What will be more significant, however, is the extent to which the MOUs are implemented because, by definition, the construction and operation of nuclear plants are ventures with the potential for deepening long-term relationships, according to Nigeria’s top diplomat.

Brigadier General Nicholas Mike Sango, Zimbabwe’s ambassador to the Russian Federation, told me in an interview just before his final departure from Moscow that several issues could strengthen the relationship. Economic cooperation is an important direction. African diplomats have consistently persuaded Russian companies to use the Africa Continental Free Trade Agreement (AfCFTA) as an opportunity for Russian companies to establish footprints on the continent. This viewpoint has not found favour with them, and it is hoped that it will work in the future.

Despite the government’s lack of pronounced incentives for businesses to set their sights on Africa, Russian businesses generally regard Africa as too risky for investment. He stated that Russia must establish a presence on the continent by exporting its competitive advantages in engineering and technological advancement in order to bridge the gap that is impeding Africa’s industrialization and development.

“Worse, there are too many initiatives by too many quasi-state institutions promoting economic cooperation with Africa, saying the same things in different ways but doing nothing tangible,” he explained during the lengthy pre-departure interview. From July 2015 to August 2022, he represented the Republic of Zimbabwe in the Russian Federation. He previously served as a military adviser in Zimbabwe’s Permanent Mission to the UN and as an international instructor in the Southern African Development Community (SADC).

Many former ambassadors have made several similar criticisms. According to former South African Ambassador Mandisi Mpahlwa, Sub-Saharan Africa has understandably been low on post-Soviet Russia’s priority list, given that Russia is not as reliant on Africa’s natural resources as other major economies. The reason for this was that Soviet-African relations, based on the fight to push back the borders of colonialism, did not always translate into trade, investment, and economic ties that would have continued seamlessly with post-Soviet Russia.

“Russia’s goal of elevating its bilateral relationship with Africa cannot be realized without close collaboration with the private sector. Africa and Russia are politically close but geographically separated, and people-to-people ties remain underdeveloped. This translates into a lack of understanding on both sides of what the other has to offer. In both countries, there may be a fear of the unknown, “Mpahlawa stated in an interview after completing his ambassadorial duties in Russia.

Professor Gerrit Olivier from the Department of Political Science, the University of Pretoria in South Africa, noted that there had been unprecedented frequent official working visits to and from, but with little visible impact. Russian by its global status, ought to be active in Africa as Western Europe, the European Union, the United States and China are, it is all but playing a negligible role, and at present, its diplomacy is dominated by a plethora of agreements signed – many of which the outcomes remain hardly discernible in African countries.

Several agreements signed are impressive, but it remains how these will be implemented in practice. That, however, obstacles to the broadening of Russian-Africa relations should be addressed. Be that as it may, the Kremlin has revived its interest in the African continent, and it will be realistic to expect that the spade work it is putting in now will at some stage show more tangible results, he said with optimism.

“Russian influence in Africa, despite efforts towards resuscitation, remains marginal. While prioritizing Africa, Russia has to do more with a result-oriented investment like other players in the continent. The official working visits are mainly moves and symbolic, and have little long-term concrete results,” Professor Olivier, who served as South African Ambassador to the Russian Federation from 1991 to 1996, wrote in an email comment from Pretoria, South Africa.

Russia’s African policy is riddled with flaws. According to reports, more than 90 agreements were signed at the conclusion of the first Russia-Africa summit. Thousands of bilateral agreements are still in the works, and century-old promises and pledges to support sustainable development with African countries are authoritatively renewed. Russia is flashing its geopolitical headlights in all directions on Africa, like a polar deer waking up from its deep slumber.

According to Russia’s Ministry of Foreign Affairs website, several top-level bilateral meetings, memorandums of understanding, and bilateral agreements have occurred in recent years. In November 2021, a policy document titled the ‘Situation Analytical Report’ presented at the TASS News Agency’s headquarters was harshly critical of Russia’s current African policy.

That policy document was prepared by 25 Russian experts headed by Professor Sergey Karaganov, Honorary Chairman of the Council on Defense and Foreign Policy. While the number of high-level meetings has increased, the proportion of substantive issues and concrete outcomes on the agenda has remained small. It explicitly highlights the inconsistency of approaches in dealing with many critical development issues in Africa. Russia, on the other hand, lacks public outreach policies for Africa. Aside from the lack of a public strategy for the continent, there is a lack of coordination among the various state and non-state institutions that work with Africa.

Associate Professor Ksenia Tabarintseva-Romanova of Ural Federal University’s Department of International Relations recognizes significant existing challenges and possibly difficult conditions in Africa-Russia economic cooperation. The establishment of an African Continental Free Trade Area (AfCFTA) is the most important modern tool for the economic development of Africa. This is unique in terms of exploring and becoming acquainted with the opportunities for business collaboration it provides.

She maintains, however, that successful implementation necessitates a sufficiently high level of economic development in the participating countries, logistical accessibility, and developed industry with the potential to introduce new technologies. This means that in order for the African Continental Free Trade Area to be effective, it must enlist the provision of long-term investment flows from outside. These funds should be used to build industrial plants and transportation corridors.

Tabarintseva-Romanova previously stated in an interview discussion that Russia already has extensive experience with the African continent, making it possible to make investments as efficiently as possible for both the Russian Federation and African countries. Potential African investors and exporters may also look into business collaboration and partnerships in Russia.

However, Russia must find effective exit strategies, abandon loud diplomatic rhetoric, and take the first steps toward strengthening economic engagement with Africa. It must go beyond the traditional rhetoric of Soviet assistance to Africa. Professor Abdullahi Shehu’s mid-October lecture at the Russian Diplomacy Academy suggested that Russia consider the following.

Professor Shehu proposed that Russia invest directly in Africa’s extractive and manufacturing sectors as a viable alternative and long-term option. As evidenced by the sanctions imposed on Russia by the United States and Europe, Africa holds a promising future for the viability and profitability of Russian manufacturing companies interested in relocating to Africa to take advantage of cheap African labour.

The establishment of the African Continental Free Trade Area (AfCFTA), the world’s largest of its kind, provides Africa with a once-in-a-lifetime opportunity for intra-African trade, thereby empowering Africa’s own capacities and investments. Russia must broaden its view of the investment opportunities presented by this single continental market of 55 African countries with a combined population of over 1.3 billion people.

Professor Abdullahi Shehu also cited Joseph Siegle, the Director of Research for the African Centre for Strategic Studies, to back up his point that “Developing more mutually beneficial Africa relations necessitates changes in both substance and process. Such a shift would necessitate Russia establishing more traditional bilateral engagements with African institutions rather than individuals. These initiatives would prioritize trade, investment, technology transfer, and educational exchanges. Many Africans would welcome such Russian initiatives if they were transparently negotiated and implemented equitably.”

Despite setbacks in recent years, the search for effective project and business financing is still ongoing, according to official reports. “There is a lot of demanding work ahead,” Foreign Minister Sergey Lavrov said during a meeting of the Ministry’s Collegium. “Perhaps there is a need to pay attention to China’s experience, which provides its enterprises with state guarantees and subsidies, thus ensuring the ability of companies to work on a systematic and long-term basis.”

Previous meetings were a marketplace for fantastic ideas. Business leaders frequently discussed the lack of credit lines and guarantees as barriers, as well as a lack of knowledge of the business environment as a challenge. Lavrov stated in a message sent in mid-June that “In these difficult and critical times, Russia’s foreign policy has prioritized strategic partnership with Africa. Russia is encouraged by Africans’ willingness to expand economic cooperation.”

That is why Lavrov’s earlier suggestion, as early as 2019, of writing a chapter on China’s approach and methods in Africa is arguably important, particularly when discussing the issue of relationship-building in the context of the current global changes of the twenty-first century. Russia could follow China’s lead in financing various infrastructure and construction projects in Africa. Within the context of the emerging multipolar world and growing opposition to Western hegemony and neocolonialism, Russia must consider a broad-based approach to strengthening and sustaining impactful multifaceted relations with Africa.

In stark contrast to key global players such as the United States, China, the European Union, and many others, basic research findings show that Russia’s policies have little impact on African development paradigms. Russia’s policies have frequently ignored Africa’s long-term development concerns. Russia must adopt an action plan, a practical document that outlines concrete, substantive cooperation between summits. Finally, Russians must keep in mind that the African Union Agenda 2063 is Africa’s road map.

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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Justin Trudeau Resigns as Canadian Prime Minister

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Justin Trudeau

By Adedapo Adesanya

The Prime Minister of Canada, Mr Justin Trudeau, has resigned as the country’s ruling Liberal Party leader amid growing discontent in the North American country.

Mr Trudeau’s exit comes amid intensified political headwinds after his finance minister and closest political ally abruptly quit last month.

Mr Trudeau, who said he would remain in office until a new party leader is chosen, has faced growing calls from within his party to step down.

Polls show the Liberals are set to lose this year’s election to the Conservative opposition.

“As you all know, I’m a fighter,” Mr Trudeau said on Monday, but “it has become obvious to me with the internal battles that I cannot be the one to carry the Liberal standard into the next election,” he stated.

His exit comes as Canada faces tariff threats from US President-elect, Mr Donald Trump.

The Republican and his allies have repeatedly taunted Mr Trudeau in recent weeks, with Mr Trump mocking Canada as the “51st state” of the US.

Mr Trudeau also lamented that the Conservative leader, Mr Pierre Poilievre, is not the right vision for Canadians.

“Stopping the fight against climate change doesn’t make sense,” he tells reporters, adding that “attacking journalists” is “not what Canadians need in this moment”.

“We need an ambitious, optimistic view of the future, and Pierre Poilievre is not offering that.”

Mr Trudeau also said he was looking forward to the fight as progressives “stand up” for a vision for a better country “despite the tremendous pressures around the world to think smaller”.

He also clarified that he won’t be calling an election, saying the Canadian parliament has been “seized by obstruction, filibustering and a total lack of productivity” for the past several months.

“It’s time for a reset,” he said, adding that, “It’s time for the temperature to come down, for the people to have a fresh start in parliament, to be able to navigate through these complex times.”

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African Startups Raise $2.2bn in 2024

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African Startups by Venture Capitalists

By Adedapo Adesanya

Start-ups in Africa raised $2.2 billion in 2024 in funding across equity, debt and grants, lower than the $2.9 billion raised in 2023 by 25 per cent amid a continued slowdown after a peak of $4.6 billion recorded in 2022.

The Big Deal noted that this excludes exits – which is when investors realise a return on their investments, most likely when the startup has become profitable or when there is a change of ownership.

The funding slowdown has occurred for consecutive years due to a wider global funding freeze impacted by macroeconomic developments and geopolitical events as well as a change in market offering trend leading to funding going elsewhere.

There have also been concerns about inflated valuations, business sustainability, and increased due diligence and scrutiny from investors.

For the review year, there wasn’t much funding activity as $800 million (36 per cent) of the total funding was computed in the first six months, while the remaining $1.4 billion came in the second half of 2024.

The $1.4 billion raised in H2 alone (+25 per cent YoY and +80 per cent compared to H1),  made it the second-best semester since the beginning of the ‘funding winter’ in mid-2022.

This development was considerably driven by two deals in the fourth quarter of last year, which minted two fresh unicorns in the African startup space, in the form of Nigeria’s Moniepoint and South Africa’s Tyme Group.

This was the first such event since early 2023, as the companies joined the exclusive club that has MNT-Halan, Interswitch, Flutterwave, Chipper, OPay, Andela, and Wave as members.

Some of the raises reported include Yellow Card raising $33 million in October to fund its growth and expansion, JuicyWay raising $3 million pre-seed to facilitate affordable cross-border payments, as well as Seedstars Africa Ventures raising $42 million in its first-ever round to help pioneering African startups in climate, food systems, energy, and payments infrastructure sectors.

The data showed that a total of 188 ventures raised $1 million or more in 2024 (excluding exits), which is just 10 per cent less than in 2023  (169 ventures).

On the exit front, there were 22 exits made public last year (up 10 per cent) versus 20 in 2023.

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African Union Developing 10-Year Comprehensive Agriculture Programme

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10-Year Comprehensive Agriculture Programme

By Kestér Kenn Klomegâh

For three working days, 9th –11th January 2025, in the Speke Resort Conference Centre in Uganda’s capital, Kampala, the African Union Commission (AUC) will host the Extraordinary Summit on the Post-Malabo Comprehensive Africa Agriculture Development Programme (CAADP). This Summit is supported by the Government of Uganda.

The event is organized jointly by the African Union Commission, Department of Agriculture Rural Development Blue Economy and Sustainable Environment (DARBE) and African Union Development Agency- New Partnership African Development (AUDA-NEPAD).

Dignitaries will deliver statements on the consideration of the Kampala Declaration, the Comprehensive African Agriculture Development Programme (CAADP) Ten-Year Strategy and Action Plan (2026-2035); the draft Statute of Africa Food Safety Agency; and the report on selection of African Union Centres of Excellence for Research and Training in Fisheries, Aquaculture, Aquatic Biodiversity Conservation and Ecosystems Management.

The Objectives of the Summit:

The convening of the extraordinary session of the Assembly is specifically to:

Endorse the draft Kampala CAADP Declaration. The draft declaration provides a vision for transforming Africa’s Agrifood Systems for the period: 2026-2035.

Endorse Ten-Year CAADP Strategy and Action Plan: 2026-2035. This plan provides details on how to achieve the goals and targets in the draft Kampala CAADP Declaration.

Risk Management and Mitigation

The post-Malabo CAADP strategy will span ten years, from 2626 to 2035. Given the longtime horizon, many risks and uncertainties could affect the strategic positioning of the agri-food systems transformation agenda to deliver on its goals. There are external socioeconomic, environmental, and other shocks that might come up, which will demand that the strategy be agile enough to respond to such unforeseen developments. The strategy will therefore call for institutional adaptation to changes in a complex and rapidly changing context. Major risks and uncertainties will need to be identified and outlined together with their respective mitigation actions.

Key interventions to ensure better risk management include:

  • Identify potential risks (e.g., political instability, climate change) and put in place mechanisms for dealing with or mitigating such risks
  • Identify health crises, including pandemics or epidemics, early and develop mechanisms for minimizing negative impacts
  • Identify and address gender inequalities or biases and restrictive social norms that may limit the access of women and youth to education, resources, and decision making processes thereby preventing them from fully participating in and benefiting from agricultural activities or initiatives
  • Invest in durable peace because it is essential for building resilient agri-food systems (from the local to global levels) and affects agricultural production, food security, market access, investment, resilience, and social cohesion. Establishing and maintaining peace is critical for enabling long-lasting investment to unlock the full potential of Africa’s agri-food systems. The Kampala CAADP Declaration will need to emphasize establishing conflict-resolution mechanisms at the community level while strengthening local markets and value chains.
  • Promote household insurance and other coping mechanisms that can help mitigate the impact of health shocks on livelihoods. These mechanisms will be key to enhancing the resilience of communities.
  • Enhance public health surveillance systems to detect and respond to health threats, including of zoonotic origin. It will also be important to strengthen food safety measures to prevent health shocks related to foodborne diseases.
  • Financial resources will be required to achieve the Kampala CAADP declaration’s resilience objectives. Specifically, households need access to credit, savings, and other financial instruments that help them weather economic shocks.
  • Food price monitoring: It will be necessary to implement policies that stabilize food markets and prevent price volatility to ensure a steady supply of food and agricultural inputs.
  • Capacities development of African governments to formulate resilience-focused policy measures is a critical step and a priority for the CAADP Strategy and Action Plan. Mainstreaming resilience-focused policies will trickle down to operational actions led by various stakeholders towards sustainable agri-food systems.

Background: The Comprehensive Africa Agriculture Development Programme (CAADP) has been crucial in driving agricultural transformation across Africa since its inception in 2003. The program is aimed at increasing food security and nutrition, reducing rural poverty, creating employment, and contributing to economic development while safeguarding the environment. CAADP aims for a 6% annual growth rate in the agricultural sector, with African Union member states allocating at least 10% of their budgets to agriculture.

Building on the Maputo Declaration (2003-2013), the 2014 Malabo CAADP Declaration renewed commitment to CAADP and established ambitious goals for 2025, including eradicating hunger, reducing malnutrition, tripling intra-African trade, and building resilience of livelihoods and production systems. The Malabo Declaration underscored the importance of mutual accountability through agricultural biennial reviews and recognized the essential role of related sectors like infrastructure and rural development. During the Thirty-Seventh Ordinary Session of the African Union Assembly in February 2024, the Heads of State and Government expressed concern that the continent is not on track to meet the Malabo CAADP goals and targets by 2025. This has spurred a call for the development of a post-Malabo CAADP agenda to build resilient agri-food systems.

It is in this context that the An Extraordinary Summit of The African Union Assembly of Heads of States and Governments is scheduled for January 9th to 11th 2025 in Kampala, Uganda, to deliberate on the post-Malabo CAADP agenda to consider the draft Ten-Year CAADP Strategy and Action Plan with its associated draft Kampala Declaration on Advancing Africa’s Inclusive Agrifood Systems Transformation for Sustainable Economic Growth and Shared Prosperity.

Format and Structure of the Summit: The Extraordinary Summit will start with a one-day meeting of the Ministers responsible for Agriculture, Rural Development Water and Environment on the 9th of January 2025, to be followed by Joint Session of the Ministers of Agriculture, Rural Development, Water and Environment together with the Ministers of Foreign Affairs on the 10th of January 2025.

The sessions will feature two presentations the: i) draft CAADP Ten-Year Strategy and Action Plan (2026-2035); ii) draft Kampala CAADP Declaration and both will be done in closed sessions. The Ministerial sessions will be structured to encourage inclusive and interactive conversations and dialogue among the Ministers, as well as between the Ministers and key strategic stakeholders. At the same time, it will enable the Ministers to review the strategic documents presented to them for their consideration and recommendations to the Assembly.

The Assembly of Heads of State and Government will convene on the 11th of January 2025 to endorse the: i) draft Ten-Year CAADP Strategy and Action Plan (2026-2035); ii) draft Kampala CAADP Declaration.

Participants: The Extraordinary Summit on the CAADP Agenda will be attended by Heads of States and Government of the African Union Member State, Ministers of Foreign Affairs, PRCs, Ministers and Experts in-Charge of Agriculture (forestry, fisheries, crops and livestock), Rural Development, Water and Environment, RECs, Youth, Women, Non-State Actors, Media, Academia and Development Partners

African Union: The AU is guided by its vision of “An Integrated, Prosperous and Peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.” The African Union (AU) is a continental body consisting of the 55 member states that make up the countries of the African Continent. To ensure the realisation of its objectives and the attainment of the Pan African Vision of an integrated, prosperous and peaceful Africa, Agenda 2063 was developed as a strategic framework for Africa’s long term socio-economic and integrative transformation. Agenda 2063 calls for greater collaboration and support for African led initiatives to ensure the achievement of the aspirations of African people.

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