World
Russia-Ukraine Crisis: Its Impact and Implications for Southern Africa
By Kestér Kenn Klomegâh
This article attempts to contribute to the discussions on the evolutionary political confrontations and contradictions between Russia and Ukraine, its impact on and implications for Southern Africa.
Historically, both Russia and Ukraine attained their independence after the collapse of the Soviet era in 1991. It has embarked on territorial expansionism, annexing neighbouring former Soviet republics. Its annexation ambitions started with Georgia, then Crimea and now Ukraine. That, however, Russia considered itself a superpower and hopes to lead the emerging new world order.
After these several months, Russia’s “special military operation” approved by the Federation Council and the State Duma (legislative chambers) and which began on February 24 has had a tremendous impact on Africa.
As already known, it has pushed the United States, European Union (EU) and a few Asia-Pacific states to impose draconian sanctions on Russia.
This article helps to understand the impact, some of the implications and future directions by looking specifically at the Southern African region.
The Southern African Development Community (SADC) is a regional political-economic organization made up of 16 member states, with a population of approximately 395 million compared with Russia with approximately 145 million.
The SADC collectively aims at, among others, promoting sustainable social-economic development that will ensure poverty alleviation and enhancing ultimately the living standards of the people in Southern Africa. Despite differences in approach to politics in individual states, the group cooperates on issues of security in the region.
The Russian Federation maintains friendly bilateral relations practically with all these southern African states: Angola, Botswana, Comoros, Democratic Republic of Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, United Republic of Tanzania, Zambia and Zimbabwe.
The diplomatic rhetoric is that it has uniquely supported the struggle for political liberation particularly in Angola, Mozambique, Namibia, South Africa and Zimbabwe. And further to that, Russia claims to have a common understanding, solidarity and trusty position with African friends on important issues on international platforms including at the United Nations.
African representatives and their votes were considered very interesting. Some 17 African countries abstained from the vote at the UN General Assembly to deplore the Russian invasion of Ukraine while some other 28 countries in the continent voted in favour. Among those in the SADC bloc abstaining from vote include South Africa, Mozambique, Mauritius, Namibia, Angola, Zimbabwe, Madagascar, Tanzania and the Democratic Republic of Congo.
The Russia-SADC Economic Scenario
The Southern African countries are struggling to overcome multiple challenges that have originated due to the endless Russia-Ukraine crisis. But a careful study and analysis show that prior to the February 24 crisis which unfolded in Ukraine, Russia indicated strong preparedness and high interest to broaden cooperation in economic sectors in Africa.
In efforts to reposition itself to become a major partner, the following priorities as an economic strategy in the region were jointly put forward during the Russia-SADC meeting held back in September 2019:
– Prospecting, mining, oil, construction, mining, purchase of gas, oil, uranium, and bauxite assets (Angola, Namibia and South Africa);
– Construction of power facilities: hydroelectric power plants on the River Congo (Angola, Namibia, and Zambia,) and nuclear power plants (South Africa);
– Creation of a floating nuclear power plant, and South African participation in the international project to build a nuclear enrichment centre in Russia;
– Railway construction (Angola);
– Creation of Russian trade houses for the promotion and maintenance of Russian engineering products (South Africa); and
– Participation of Russian companies in the privatisation of industrial assets, including those created with technical assistance from the former Soviet Union (Angola).
Of course, there are disparities in the level of development and cooperation between Russia and individual states in Southern Africa. At least during the past few years, Russia has notably strengthened relations with most of them. For example, it has leveraged into exploring lucrative platinum projects at Darwendale (Zimbabwe).
Foreign Minister Sergey Lavrov launched this $3 billion project back in 2014, after years of negotiations, with the hope of raising its economic profile in Zimbabwe. Few other anticipated projects have sprung up in Angola, DRC, Mozambique, Zambia, Zimbabwe and South Africa.
While COVID-19 impacted development progress, there are currently signs of disarray caused by restrictive foreign exchange policies and continuing inability to determine funding sources for Africa. Russia has been engulfed with crisis and worse under serious sanctions, bilateral agreements might take years to realize fully in most Southern African countries.
Our research shows that ten SADC member-states have diplomatic offices in the Russian Federation: Angola, Democratic Republic of Congo, Madagascar, Mauritius, Mozambique, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe.
Impact of the Russia-Ukraine Crisis
According to the United Nations Food and Agriculture Organization, many African countries rely on Russia and Ukraine for wheat imports. Russia is a major supplier of fertilizers to 15 African countries. Reuters news agency reported that Africa is suffering from disruptions in food supply and soaring prices of basic goods and risks “disastrous consequences” if the situation endures.
This position was supported by African Union Chairman Macky Sall during a conversation with philanthropist Mo Ibrahim at the Ibrahim Governance Forum, far ahead before he travelled to Sochi, Russia. That Sochi trip discussed measures which could alleviate the escalating problems related to the food and agricultural inputs and further reviewed strategic solutions within the context of Russia-African relations.
Despite the assurance of reversing the situation offered at the Putin-Sall-Faki meeting, the Russia-Ukraine never-ending crisis still flushing up commodity prices worldwide. Africa’s economy is currently worsening, a direct primary result of rising energy costs. This economic instability further generated social discontent and tension among vulnerable impoverished groups across the population. Some have asked for wage indexations as well as increments in pensions and unemployment payments.
Local South African media have reported, during the previous months, about workers protesting against inflationary prices in Angola, the Democratic Republic of Congo, Mozambique, South Africa and Zimbabwe. There have been sharp currency fluctuations throughout the southern African region.
Southern Africa depends on some imported goods, such as agricultural produce and fertilizers, from Russia and Ukraine. In terms of negotiations, much has to be done in order to reach comprehensive agreements to free movement of these to Africa’s market.
Experts suggested in separate interviews that it was necessary to implement the memorandum between Russia and the UN on exports of Russian agricultural products and fertilizers.
Arguably, there are indications that Washington and Brussels’ anti-Russian sanctions do not apply to foodstuffs and fertilizers. While some explain further that there are still obstacles to banking settlements, insurance and carriage of cargoes at shipping terminals due to Western sanctions.
From our analytical position, first, as African countries face continued uncertainty, the International Monetary Fund (IMF) and the World Bank (WB) interventions are necessarily seen only as short-term solutions. And second, in an article published by the French Press Agency (AFP), says negotiations between the AU leadership and the Russian president illustrate the importance of enhancing bilateral relations.
While African leaders are attempting to build international solidarity and alliances aimed at achieving genuine peace and global security, and for an emerging new order, it is also important to initiate a new reform drive to transform agriculture and industry throughout Africa. African financial institutions, such as the African Development Bank (AfDB), urgently have to prioritize investing more in food production in the continent.
Highly commendably, the initiative, the Feed Africa strategy for Agricultural Transformation in Africa (2016 to 2025), is to move the continent to the top of export-orientated global value chains where it has a comparative advantage. This aims at making Africa a net exporter rather than an importer of basic agricultural products and contributing to eliminating extreme poverty in Africa and ending hunger and malnutrition in Africa by 2025.
Our research shows the bank’s efforts have brought home $1.5 billion for the African Emergency Food Production Facility. It has been advocating for expanding social protection programmes, strengthening economic resilience and responsiveness to shocks of the Russia-Ukraine crisis. The African Development Bank Group is Africa’s premier development finance institution.
Emerging Economic Prospects
Despite the negative impacts and consequences, the Russia-Ukraine crisis has simultaneously opened doors (opportunities) for Africa. Europe has seen potential supplies of energy especially gas from the region. As Mozambique is gradually emerging as an exploration hub, it is attracting investors from Europe. Meanwhile, leading energy companies such as TotalEnergies, ExxonMobil, British Petroleum (BP), Shell and Eni are already working in the region, seeking alternative supplies in light of the Russia-Ukraine conflict.
Mozambique’s President Filipe Nyusi and stanch member of the Southern African Development Community (SADC), has spearheaded multiple initiatives and partnerships with international partners to boost security and ensure project resumption. As a result, the European Union recently announced a plan to increase financial support for Mozambique while energy majors TotalEnergies, ExxonMobil and Eni are focused on getting projects back on track.
Mozambique is increasingly stepping up efforts in the production of liquefied natural gas and consequently becoming one of the suitable reliable suppliers to Europe. While it might not replace Russia which cuts its export of gas as a reciprocal action against European Union members, Mozambique seeks ultimately to earn some revenue from its natural resources.
In late July, the outgoing EU Ambassador to Mozambique, Sánchez-Benedito Gaspar, argued that natural gas from Cabo Delgado was among the alternatives in Europe’s plan to diversify energy sources in the face of constraints caused by Russia’s military operation in Ukraine.
“Mozambique’s gas, with the presence of large European multinational companies, now has an even more important and strategic value,” Sánchez-Benedito Gaspar said in an interview with Lusa, Mozambican News Agency, in Maputo. According to the diplomat, Europe came to the conclusion that “it cannot trust its old partner (Russia, among the world’s biggest gas exporters), which is authoritarian and uses gas as an instrument of war,” and is making efforts to secure alternative sources.
With an approximate population of 30 million, Mozambique is endowed with natural resources. With the untapped huge resources, if it is strategically well-managed and exploited in the southern states – Angola, Mozambique, Namibia, Tanzania and South Africa, it will possibly be making energy poverty history in the southern region and possibly entire Africa.
The Puzzling Politics
From the political perspective, a majority of African leaders have in principle endorsed multilateralism, and also reminded respect for territorial sovereignty, independence and human rights. Reference has been made to non-interference in nations’ internal affairs that brought to the fore the general principles on which the Non-Alignment Movement organization was created.
South African President Ramaphosa called for promoting international peace and security by advocating inclusive dialogue and the peaceful settlement of disputes.
“We must safeguard the principle of multilateralism. We need a United Nations that is fit-for-purpose and clear in its benefits to all humanity, especially in times of insecurity and crises,” the President said late June.
Nearly all the experts contacted for this article have the same arguable points, especially regarding safeguarding and walling (fencing) to be used by key powers as “political playing grounds” in the Southern African region. Despite the contradictions, the experts acknowledged the fact that western hegemony and “rule-based order” be halted, and make way for the new emerging world order.
Russia’s Foreign Minister Sergey Lavrov, however, informed about broadening African issues in the “new version of Russia’s Foreign Policy Concept against the background of the waning of the Western direction” and this will objectively increase the share of the African direction in the work of the Foreign Ministry. It was last updated in 2013.
The development of a comprehensive partnership with African countries remains among the top priorities of Russia’s foreign policy, Moscow is open to its further build-up, Lavrov said in an Op-Ed article for the African media, and originally published on the ministry’s website in late July.
The Future Roadmap
We have seen the extent African leaders express political sympathy for Russia. For Russia to regain a part of its Soviet-era influence, it has to address its own policy approach, this time shifting towards new paradigms – implementing some of those bilateral agreements; secondly to promote development-oriented policies and its strategic efforts have to be more practical, more consistent, more effective and result-oriented with African countries.
In the context of building post-Soviet relations, Russia has to attempt to create a new model of template for itself, and for what it often refers to as “non-Western friends” in the crucial geopolitical changes occurring now in order to bring them into its armpit from Asia, Africa and Latin America.
African leaders, under the auspices of the African Union, have to design a broad roadmap. Significantly it is necessary to adopt “a collective voice and approach” for the continent.
On other hand, a major rethink is urgently required in the current evolutionary processes of the new world order. The first drastic step is for Africans to identify their weaknesses, understand the fact that it is endowed with huge natural resources and, therefore, work together in complete harmony by pulling their own large-scale resources to fund the development agenda.
From our analytical perspectives, it is now time for Africa and its youth to stand up and defend its history and riches. And the significant challenge is the need for the adoption of a unified strategy to avoid being used as a pawn in global power games. This should be the continental task for the SADC and the African Union.
Specifically, South African Development Community leaders have to follow the same line of procedures for the region. In the process of seeking additional support and whatever contributions from foreign partners and foreign investors, either government or private, these have to fall within the roadmap as re-emphasized during the 42nd summit of the South African Development Community.
World
Justin Trudeau Resigns as Canadian Prime Minister
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.”
World
African Startups Raise $2.2bn in 2024
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.
World
African Union Developing 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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