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Russia, Côte d’Ivoire Agree to Elevate Bilateral Relations

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By Kester Kenn Klomegah

The ways and means of invigorating bilateral relations in political, trade, economic, educational and humanitarian areas were the centrepiece of the first diplomatic encounter between Foreign Minister Marcel Amon-Tanoh of Côte d’Ivoire, also known as Ivory Coast, and his counterpart Sergey Lavrov of Russia, in Moscow.

The two Foreign Ministers also exchanged views on major global and regional issues, such as crisis settlement and peacekeeping in Africa. Countering international terrorism and extremism in the context of collective efforts to neutralize these threats in Africa and beyond too topped their agenda.

Promoting business partnerships in the energy sector, the fuel and energy complex, infrastructure development and agriculture were yet another topic of discussion between Amon-Tanoh and Lavrov. These concluded with a bilateral memorandum on ministerial consultations.

“We have thoroughly discussed preparations for the first Russia-Africa Summit scheduled to take place in Sochi in October (2019). It will be the first such summit in history, an economic forum will precede it,” Lavrov noted at a joint press conference with Amon-Tanoh. “We expect that these events will give impetus to the development of ties, become a major milestone in Russian-African relations and will also help define our future partnership.”

Lavrov described the relations between the two countries as friendly. “We confirmed our mutual interest in boosting bilateral relations, agreed to take further steps to develop promising projects in the energy sector, infrastructure and agriculture, which is the backbone of Côte d’Ivoire’s economy.”

Acknowledging, without any reservation, that the participation of an Ivorian delegation in the recent St. Petersburg International Economic Forum (SPIEF-19) was very useful, Lavrov and Amon-Tanoh agreed to encourage business circles to build direct contacts and increasingly avail of the two countries’ chambers of commerce and industry.

On the sidelines of the SPIEF-19, held June 6-June 9, the Adviser to the President of the Russian Federation, Anton Kobyakov, held a bilateral meeting with Vice-President of the Republic of Côte d’Ivoire, Daniel Kablan Duncan.

During the discussions, both parties agreed to form a working group made up of representatives of the Government of Côte d’Ivoire and the Roscongress Foundation to participate in the forthcoming Russia-Africa Summit in Sochi.

The working group will be responsible for developing a roadmap for organizing investment and trading cooperation. The parties will create a list of priority industries and target projects and other goods and services for export-import operations.

Contributing to the discussions, the Côte d’Ivoire Vice-President Duncan underlined the importance of strengthening bilateral relations between Russia and Côte d’Ivoire. He said that 2017 marked half-a-century since the establishment of diplomatic relations between the two countries. “We enjoy friendly relations that encompass many areas of interaction, including political dialogue, security, trade, economic and technical military ties, energy, and scientific, cultural, and cultural exchanges,” Duncan noted.

Côte d’Ivoire is one of Russia’s largest trading partners in sub-Saharan Africa, and the beginning of 2019 has been marked by a significant increase in mutual trade.

The outlook for cooperation in energy seems promising, he explained, adding that the development of gas production is associated with capital-intensive deep-sea projects (more than 3,000 meters), and therefore “we are interested in involving a major Russian company in the development of projects of this nature”.

The processing of agricultural products could also be included in a list of key areas of trade and investment cooperation with Russia, he said.

“We are, particularly, pleased to learn that President of Côte d’Ivoire, Alassane Ouattara, will be participating in the Russia-Africa summit. Even more significant is the fact that the upcoming visit of Côte d’Ivoire’s head will be the first in the history of bilateral relations between our countries,” said Kobyakov.

In closing the meeting, he stressed: “The key for the development of bilateral trade and investment cooperation will be the search for and joint development of important areas for a mutually beneficial partnership between Russia and Côte d’Ivoire.”

Historically, Côte d’Ivoire has close ties to France since independence in 1960. The diversification of agricultural exports and encouragement of foreign investment have been the key factors in the economic growth of the country.

In recent years, that west African country has been subject to greater competition and falling prices in the global marketplace for its primary agricultural crops: coffee and cocoa. That, compounded with high internal corruption, makes life difficult for the grower and for those exporting to foreign markets.

Côte d’Ivoire exports cocoa, mainly to Europe. With a population of nearly 24 million, the country shares border with Liberia and Guinea to the west, Mali and Burkina Faso to the north and Ghana to the east.

Kester Kenn Klomegah writes frequently about Russia-Africa and the BRICS.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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African Union Launches Credit Rating Agency to Rival Fitch, Others

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African Union

By Adedapo Adesanya

The African Union has announced the launch of its rating agency, the African Credit Rating Agency (AfCRA) to provide accurate ratings for countries on the continent.

According to Kenya’s President, Mr William Ruto, while unveiling the new agency at an AU event held in Addis Ababa, Ethiopia on Friday, AfCRA will address biases by global rating firms.

Global firms like Moody’s, Fitch and Standard & Poor (S&P) are some of the ratings agency which provide insights into African countries to aid investors and stakeholders.

There have been criticisms that these ratings lead to higher borrowing costs for African countries and make it harder for them to access international financial markets.

“Global credit rating agencies have not only dealt us a bad hand, they have also deliberately failed Africa,” Mr Ruto stated during the launch.

“They rely on flawed models, outdated assumptions, and systemic bias, painting an unfair picture of our economies and leading to distorted ratings, exaggerated risks, and unjustifiably high borrowing costs.”

According to President Ruto, improving Africa’s rating by one notch could unlock $15.5 billion in additional funding for the continent, which could help replace a significant portion of official development assistance or be invested in Africa’s infrastructure needs.

Despite Africa’s abundant natural wealth, only two African nations are currently ranked as investment grade.

“It is time for Africa to use the right scale, one that reflects its true weight,” Mr Ruto added.

The African Union has previously criticized global rating agencies’ characterization of African economies. In January, the AU pointed out that Moody’s Ratings’ fluctuating assessment of Kenya’s outlook was flawed.

“As the continent continues its march towards economic integration and resilience, the establishment of the African Credit Rating Agency (AfCRA) represents a pivotal step in asserting Africa’s position on global financial governance.”

The agency aims to provide fair, transparent, and development-focused credit ratings that reflect the realities and potential of African economies.

The idea comes more than a year since the AU officially announced its plans to move forward with the project since September 2023.

The push for an African credit rating agency became viable in 2022 when Senegal’s former president Macky Sall, then the chairman of the AU, called for a new system to “end the injustices” faced by African countries.

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Dubai BRICS Forum Will Help Develop Small and Medium Businesses

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Konstantin Klimenko-Bogdanov BRICS Investment Forum

By Kestér Kenn Klomegâh

In this insightful conversation, the Chairman of the Organizing Committee of the Dubai BRICS Investment Forum, academician Konstantin Klimenko-Bogdanov, highlights the primary importance of the forthcoming corporate business forum within the context of the geopolitical situation and offers a distinctive roadmap for economic collaboration of the BRICS countries. Here are the interview excerpts:

What does the upcoming BRICS Investment Forum in Dubai mean, especially in the context of geopolitical rivalry and competitive struggle?

In theory, competitive struggle should contribute to the development of the economy. After all, competition does not allow for the establishment of a monopoly, the dominance of only an exclusive minority of market participants. But on the condition that this is fair competition. But we are witnessing uncivilized methods of dividing spheres of influence in the market, cynical exploitation of natural resources in Africa and Asia by Western transnational corporations, and monopolization of entire industries in developing countries.

For example, the telecommunications sector, and the banking sector in Africa practically do not belong to Africans. Sometimes the name of a bank can have the word “Africa”. The real owners of banking capital are in Paris, London, and New York.

The income from the national wealth of African and Asian countries is distributed amazingly cynically. For example, coffee is purchased in Africa for a price of 1 dollar per kilogram, and sold in Europe for 4 dollars!

Unfair competition is supplemented by geopolitical rivalry in the form of escalating international tensions, declaring trade wars, and sanctions, and creating artificial military conflicts. Again, the goal of conflicts and military operations is only one – to seize resources. For example, in Iraq, and Syria, the Americans brazenly pump oil, without losing money on its purchase. And the US President does not hesitate to take away the Panama Canal or seize the island of Greenland.

Therefore, the goal of holding the Dubai BRICS Investment Forum is to find ways to facilitate civilized international economic cooperation in the conditions of trade wars, military conflicts, and sanctions. It is necessary to make an honest analysis and develop a roadmap for the joint economic development of the BRICS countries and friendly states.

Can you point to the prospects for its preservation (the forum) as an extraordinary annual platform for stimulating bilateral and multilateral transactions, and investments and, possibly, establishing a flow of corporate transactions between BRICS+ members and partner countries?

The Dubai BRICS Investment Forum is definitely not a one-off event. It is the basis for creating a global BRICS business community, which will operate on an ongoing basis. It will consist of the BRICS International Club, the BRICS House International Network, the Alliance of Small and Medium Enterprises, the Tourism Alliance, the Women’s Business Association and a number of other organizations. A digital platform, BRICS INFO, will be created.

The task of these structures is to establish a flow of trade, concentrate investment resources, and create a flow of corporate transactions.

Special attention will be paid to small and medium businesses. We intend to connect about 10,000 small and medium businesses into one ecosystem. The total turnover of this ecosystem in 2025 alone will amount to about US$700 billion.

We will also have social investment projects. The BRICS Student Card project is being created for students. With this card, students will receive various forms of social support in the form of discounts on air tickets, train tickets, purchases of goods in supermarkets, and so on. The most talented students will receive incentive scholarships.

It is planned to create a network of BRICS campuses through joint investments of BRICS businessmen. The campuses will house a university, college, and lyceum. The network will operate in 10 countries.

What priority investment projects will the forum promote?

Our priority is the Small Energy project. Half of the African continent and part of Asia have no electricity at all! This is unacceptable for the 21st century! We plan to create hundreds of small power plants on solar panels, wind turbines, and diesel generators through joint investments.

We have very interesting joint investment projects planned in the real estate sector. New housing complexes under the BRICS House brand will be built in many countries. In essence, these will be “cities of the future.” The main priority in the concept of these cities is “human ecology.” For example, these cities will not have any gasoline-powered vehicles at all. Only electric vehicles. But there will also be restrictions on cellular repeaters that emit harmful electromagnetic radiation. The goal of the project is to create areas that are as favourable as possible for human life. Many investors are already ready to invest in these projects.

By the way, why are you holding this important BRICS event in Dubai, United Arab Emirates? Are there any distinctive advantages that it offers to potential business participants, including women and young entrepreneurs?

The choice of Dubai as a permanent venue for our forum is based on expert opinion. We are confident that the most comfortable infrastructure and conditions for holding large-scale summits and creating business development centres have been created here. The UAE has a balanced tax system, thoughtful economic policy, and a tolerant atmosphere. And Dubai is a city of dreams, a bright future. Therefore, our forum will be held here annually and the residences of the BRICS House, BRICS Club, and the Alliance of Small and Medium Business will operate here permanently.

Based on the above reasoning, can we perhaps see the difference between the World Economic Forum in Davos and the BRICS Investment Forum in Dubai in the current situation of ongoing global transformations and development?

The difference in key approaches. At the Davos Forum, the agenda is set by Western transnational corporations. They initiate discussions of globalization plans. Our forum is intended for small and medium-sized businesses in Eurasia and Africa. We intend to discuss not globalization, but how to develop national economies and establish active cooperation between them.

At the Davos Forum, trends are created by politicians. Many participants go to this forum to listen to heads of state and high-ranking government officials. There will also be officials and parliamentarians at the Dubai Investment Forum. But they are not the main participants here. They will listen more than they speak. It will be entrepreneurs and taxpayers who support officials with their taxes who will speak more often. Because this is a platform for business, not a tribune for politicians.

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Swedfund Offers $15m Loan for Food Processing in Africa

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food processing

By Modupe Gbadeyanka

A working capital loan of up to $15 million has been given to Robust International by Swedfund to support food processing and smallholder farmers in Africa.

The credit facility is to ensure food security and an increased local processing capacity on the continent.

It was stated that the loan would enable Robust to source local commodities to new processing facilities and thereby spur job creation, economic growth and trade.

The company will buy sesame seeds and cashew nuts directly from cooperatives, aggregators and farmers locally to support operations at its new processing facilities in Côte d’Ivoire, Mozambique and Burkina Faso.

The $15 million funding is part of a joint initiative together with the Dutch, British and French development finance institutions and the Dutch fund manager, ILX.

Robust is a multi-national trader of agricultural commodities, specialising in sesame seeds and cashew nuts, sourcing primarily from East and West Africa.

Swedfund now joins FMO (the Dutch entrepreneurial development bank), British International Investment (BII), Proparco and ILX, the Dutch fund manager, to further support the development of enhanced local processing. The total working capital facility amounts to up to $105 million.

Africa exports many agricultural products for processing and refining. Robust now takes the step to do this locally instead, leading to job creation, development of the local supply chains, increased capacity and lower emissions.

The organisation has a strong focus on human rights and decent conditions for workers and farmers in their supply chain.

“Through the working capital facility, we offer funding where local banks are not able to,” the Head of Sustainable Enterprises and Food Systems at Swedfund, Sofia Gedeon, said.

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