Connect with us

World

Russia’s Promise of Building Nuclear Plants in Africa

Published

on

Nuclear Plants in Africa

By Kester Kenn Klomegah

For more than two decades, Russia has been struggling to help Africa overcome its energy deficit, with little success.

But now, with financial support from the European Union (EU), two international organizations have been chosen as modelling partners for the development of the African Continental Power Systems Master Plan (CMP).

The two organizations will lead the development of an electricity master plan that promotes access to affordable, reliable and sustainable electricity supplies across the continent.

As expected, African stakeholders will play roles in identifying surplus and deficit regions/countries, in terms of electricity generation and demand, as well as the most cost-effective ways of expanding clean electricity generation and transmission infrastructure across Africa.

African energy ministers tasked the African Union Development Agency (AUDA-NEPAD) to lead the development of the master plan. Following a two-year consultation process coordinated by the EU Technical Assistance Facility (TAF) for Sustainable Energy.

Eastern and Southern Africa are vast, geographically diverse regions with rapidly growing populations and rising demands for energy, according to the master plan, there are two regional power pools.

A new study entitled Planning and Prospects for Renewable Power: Eastern and Southern Africa assesses the long-term energy plans for the two regional power pools (known as the Eastern and Southern African Power Pools), and finds the region well-endowed with high quality, cost-effective, but under-utilized wind and solar resources.

In practical terms, Africans are looking for energy alternatives to embark on the next round of industrialization. Russia’s nuclear energy diplomacy in Africa has been at the crossroad over the past two decades since the collapse of Soviet-era.

In order to find long-shelf solutions to chronic power shortages, African leaders and Governments, that have shown interest in adopting Russian nuclear energy, signed necessary legal documents but lacked the needed funds for prompt implementation and final realization.

Russia and Africa’s aspirations in this sphere of nuclear cooperation come with many challenges. In Rwanda and many other African countries, the first question is finance. “Rwanda’s annual budget stands at US$3 billion while the construction of the nuclear power plant would cost not less than US$9 billion which is equivalent to Rwanda’s entire gross domestic product,” David Himbara, Rwandan-Canadian Professor of International Development at Canada’s Centennial College, wrote in an emailed interview.

He said that Rwandan President Paul Kagame always believed that he must validate his supposedly visionary and innovative leadership by pronouncing grand projects that rarely materialized.

Currently, all African countries have a serious energy crisis. Over 620 million in Sub-Saharan Africa out of 1.3 billion people do not have electricity. It is in this context that several African countries are exploring nuclear energy as part of the solution.

There is only one nuclear power plant on the entire African continent, namely, Koeberg nuclear power station in South Africa. Commissioned in 1984, Koeberg provides nearly 2,000 megawatts, which is about 5% of installed electricity generation in South Africa.

According to Himbara, “Of all African countries that have shown interest in nuclear energy, none have so far gone beyond the stage of conducting a preliminary feasibility study, project costing and financing models, except South Africa.”

But, the South Africa US$76 billion deal with the Russians to build a nuclear power plant collapsed along with the Government of Jacob Zuma that negotiated the deal in secrecy, in fact when such corporate projects have to be discussed and approved by the parliament and necessarily have to pass through an international tendering process.

Russia and South Africa concluded an intergovernmental agreement on strategic partnership in the nuclear sphere in 2014. The agreement provided, in particular, for the construction of up to eight NPP power units.

“Nuclear waste will pile up, and where are they going to put it? The Sahara? The US is always trying to force nuclear waste repository on some poor or indigenous community and when that fails, the waste keeps piling up at the reactor sites, creating greater and greater environmental risks,” according to Himbara.

He underscored the fact that “managing nuclear waste and its safety is universally complex and dangerous. The Chernobyl disaster in Ukraine and Fukushima in Japan, remind the world of the human and environmental costs of nuclear power accidents. Millions of people are still suffering from radiation and radiation-related diseases till today.”

Foreign Minister Sergey Lavrov, in an interview with the Hommes d’Afrique magazine in March 2018, described Africa as rich in raw material resources, including those that are required for high technology and for moving to a new technological pattern. Apart from mining, Russia and African countries are cooperating on high technology.

What was more important for Africa’s energy sector when he informed that Rosatom has been considering a number of projects that are of interest to Africans, for instance, the creation of a nuclear research and technology centre in Zambia. Nigeria has a similar project. There are good prospects for cooperation with Ghana, Tanzania and Ethiopia. Talks are still continuing on the construction of nuclear power plants in South Africa.

Shadreck Luwita, Zambian Ambassador to the Russian Federation, informed that the processes of design, feasibility study and approvals regarding the project have been concluded, in the case of Zambia. The site of the project designated and it is envisaged that construction should commence, in earnest, not later than the second half of 2018. That construction remains a monumental dream, though.

In addition, he affirmed that the Russians envisaged technology transfer in the development of this massive project by way of manpower development capacity. For now, there are a few Zambian nationals, who are studying nuclear science in Russia.

The Zambian Government ultimately profitable hopes are that upon commissioning of this project, excess power generated from this plant could be made available for export to neighbouring countries under the Southern African Development Community Power Pool framework arrangement.

Zambians are still worried about Russia’s promise of nuclear plants estimated at US$10 billion. In February 2020, Chairperson of the Federation Council (the Upper House or the Senate), Valentina Matviyenko, headed a Russian delegation on a three-day reciprocal visit aimed at strengthening parliamentary diplomacy with Namibia and Zambia.

While in Zambia meeting with the president and other high-ranking legislators, she expressed regret at the suspension of the construction of a centre for nuclear science and technology due to financial issues. The request submitted to the Russian president needed careful consideration by the relevant ministries and departments. She hoped Russia and Zambia would jointly find options to promote funding to roll out the construction of a centre for nuclear science and technology.

This is not an isolated case. From all indications, Russia wants to turn nuclear energy into a major export industry. It has signed agreements with African countries, many with no nuclear tradition, including Rwanda and Zambia. In addition, Russia is set to build large nuclear plants in Egypt that could serve the Maghreb region.

Interestingly, Egypt’s dreams of building nuclear plants have spanned with the agreement that was signed (as far back in March 2008) during an official visit to the Kremlin by the ousted President Hosni Mubarak, and then again with former Egyptian leader Mohammed Morsi who discussed the same nuclear project with Vladimir Putin in April 2013 in Sochi, southern Russia.

During the dawn of a new era at the Sochi summit, Vladimir Putin and Abdel Fattah Al Sisi signed an agreement to set up four nuclear plants in El Dabaa, on the Mediterranean coast west of the port city of Alexandria, where a research reactor has stood for years.

The deal was signed on the heels of talks held between Putin and Al Sisi, where both expressed high hopes that Russia would help construct the country’s first nuclear facility. Egypt began its nuclear program in 1954 and in 1961, acquired a 2-megawatt research reactor, built by the Soviet Union.

However, plans to expand the site have been decades in the making that Rosatom will provide its fuel, personnel training, and build the necessary infrastructure. The four blocks of the nuclear power plant will cost about US$20 billion. Director Anton Khlopkov and Research Associate Dmitry Konukhov at the Center for Energy and Security Studies, co-authored a report to Valdai Discussion Club, that the success of Egypt’s nuclear project depends on three key factors.

These are the political stability and security situation in Egypt, a viable financing mechanism that reflects the country’s economic situation, and the government’s ability to secure support for the project among the local residents of El Dabaa, the site chosen for Egypt’s first nuclear plant back in the 1980s.

In reality, Ghana has similar never-ending dreams and fairy tales of owning nuclear plants. The agreement was re-signed on June 2, 2015. The Russian reactor, a 1000 MW plant, will cost a minimum of $4.2 billion. The financing scheme has not been finalized by the parliament. And it will take about eight to ten years from site feasibility studies to commissioning of the first unit, according to the Ghana Atomic Energy Commission.

As local media reported, Ghana’s quest to industrialize for economic growth and development has fast-tracked plans to establish nuclear power in the country within the next decade, which means by 2029 and export excess power to other countries in the West African sub-region.

With “One District, One Factory” – Ghana’s industrialization agenda might not be realized under Nana Addo Dankwa Akufo-Addo’s administration based on the roadmap of the nuclear power programme to commence construction by 2023 and inject nuclear energy into the grip by 2030.

The African countries’ MoUs and Agreements with Rosatom including South Africa, Nigeria, Ghana, Kenya, Rwanda, Tanzania, Zambia and the rest are, most probably, stacked. Nearly three decades after the Soviet collapse, not a single plant has been completed in Africa.

Some still advocate for alternative energy supply. Gabby Asare Otchere-Darko, Founder and Executive Director of Danquah Institute, a non-profit organization that promotes policy initiatives and advocates for Africa’s development, wrote in an email that “Africa needs expertise, knowledge transfer and the kind of capital imports that can assist Africa to develop its physical infrastructure, add value to two of its key resources: natural resources and human capital.”

Russia has respectable expertise in one key area for Africa: energy development. “But, has Russia the courage, for instance, to take on the stalled $8-$10 billion Inga 3 hydropower project on the Congo river? This is the kind of development project that can vividly send out a clear signal to African leaders and governments that Russia is, indeed, ready for business,” he said.

The renewable energy potential is enormous in Africa, citing the Grand Inga Dam in the Democratic Republic of Congo. Grand Inga is the world’s largest proposed hydropower scheme. It is a grand vision to develop a continent-wide power system. Grand Inga 3, expected to have an electricity-generating capacity of about 40,000 megawatts – which is nearly twice as much as the 20 largest nuclear power stations.

Ryan Collyer, the Regional Representative of Rosatom for Sub-Saharan Africa, told me in an interview in April 2021, that apart from energy poverty, nuclear can solve other continent problems, from low industrialization to advances in science, healthcare, and agriculture, thus propelling the continent towards the master plan of African Union’s Agenda 2063.

“It envisions Africa’s transformation into the global powerhouse of the future, so we are advocating a diverse energy mix that utilizes all available resources, including renewables and nuclear, to ensure climate resilience and environmental safety, social equity, and supply security,” Collyer said.

Some researchers and experts strongly believe and further estimate that the cost of building nuclear power, especially its associated high risks, does not make any sense when compared to the cost of building renewables or other sources of energy to solve energy shortages in Africa.

According to the company profile, Rosatom offers a complete range of nuclear power products and services from nuclear fuel supply, technical services and modernization to personnel training and establishing nuclear infrastructure. With 70 years of experience, the company is the world leader in high-performance solutions for all kinds of nuclear power plants. Rosatom has built more than 120 research reactors in Russia and abroad.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

World

Swedfund Pumps €26m into AfricInvest’s FIVE

Published

on

AfricInvest's FIVE

By Modupe Gbadeyanka

The Financial Inclusion Vehicle (FIVE) of AfricInvest has received the injection of €26 million from Swedfund to boost access to financial services in Africa.

About a fifth of the African population has access to formal banking services. Limited access to finance restricts entrepreneurship, job creation, and the ability to absorb economic shocks.

Swedfund’s investment addresses this gap by supporting financial institutions that are expanding outreach and developing inclusive financial products, especially through new technology and digital solutions, particularly with AfricInvest’s FIVE, a platform designed to support financial institutions across Africa.

The investment aims to increase access to financial services for underserved individuals and small businesses, with a focus on digital innovation, economic empowerment and inclusion.

Through FIVE, Swedfund will strengthen the capital base of select financial institutions across Africa, enabling them to grow and reach more clients.

The investment also supports FIVE’s commitment to gender equality and women’s empowerment, creating positive change within its portfolio companies and communities.

By investing in a mix of traditional and digital-first financial service providers, including banks, insurers, and fintechs, Swedfund aims to catalyse more inclusive financial ecosystems, driving job creation and economic growth across the continent.

A Senior Investment Manager at Swedfund, Mr Jakob Larsson, while commenting on the fresh injection, said, “Our investment in FIVE further strengthens our engagement to improve access to banking and other financial services in underserved communities.

“This in turn spurs job creation and growth. We are also able to strengthen financial institutions and the development of innovative financial services.”

Continue Reading

World

Moscow: World-Renowned Fashionable City

Published

on

South African entrepreneur Stephen Manzini

By Kestér Kenn Klomegâh

Moscow is increasingly becoming popular among foreigners due to multiple reasons among them is its fashionable architecture and friendly people. Moscow’s architecture is world-renowned. In addition, Moscow’s status as the spiritual center of Russian orthodoxy and metropolitan buildings attract tourists from around the world. For much of its architectural history, Moscow is dominated by Orthodox churches.

Situated on the banks of the popular Moskva river, cultural parks and recreational centers offer an additional attraction especially during spring, summer and autumn seasons. The city has a population estimated at over 13 million. And public transport system is excellent for easy and fast connection to any part of the city. Today, the Moscow Metro comprises twelve lines, mostly underground with a total of 203 stations.

Moscow mayor Sergei Sobyanin shares in an interview with local Russian media that Moscow is becoming the world’s best megacity. But for South African Fashion entrepreneur, Stephen Manzini, Moscow’s contrasting features make it more fashionable to explore for fun and entertainment. Read Stephen Manzini’s impressions here:

Would you describe Moscow as a ‘fashionable’ city, if fashion is not limited to clothes and bags?

Moscow can be described as a fashionable city if it wasn’t for the weather. We would see beautiful display of runway pieces on the streets, however we do see this in indoor spaces it’s just overshadowed outdoors by the winter coats and jackets. Walking about Moscow does give you a European fashion appeal.

But Moscow as a fashionable city, do you think it is inaccessible from consumers, from tourists?

Moscow the fashionable city can be accessible to consumers. However when it comes to tourists, it’s a bit inaccessible as it takes on-site education to understand the dynamics. It cannot be understood from a distance due to the neo-propaganda that overshadows it.

Do you mean to conclude that cities such Venice, Miami, New York and London are more fashionable and attract more customers, tourists than Moscow?

Moscow’s tourism industry is barely in existence. To no fault of it’s own. Unfortunately, global online search engines are very unkind in referring to it as an undesirable tourist destination.

How then would you suggest rebranding Moscow?

The rebranding of Moscow would have to be intentional and would not happen overnight. It will have to start at a political level and then cascade it’s way to media and tourism.

Continue Reading

World

Shockwaves Over Trump’s Tariffs Reverberate Across Africa

Published

on

Vsevolod Sviridov High School of Economics

By Kestér Kenn Klomegâh

After taking office early 2025, U.S. President Donald Trump has embarked on rewriting American foreign policy and plans to create a new geopolitical history under the “America First” doctrine.

The first three months have seen efforts to implement tariffs, which finally was splashed early April world-wide, including on a grand scale across Africa.

Seemingly, a blanket of tariffs is one of the standout actions of the new administration. Trump’s changing approach to the world, using geoeconomic tools, including tariffs has now sparked extensive debates and discussions.

Our media chief, Kestér Kenn Klomegâh, took a quick chance and asked Vsevolod Sviridov, deputy director at the High School of Economics (HSE) University Center for African Studies, a few questions pertaining to the aspects and implications of the U.S. tariffs for Africa. Here are the interview excerpts:

How would you interpret trade war between China and the United States?

There has been a global trend towards overspending over the last two decades. We have seen commodity boom, rise of  China with  its global  investments drive  and infrastructure development projects like BRI, excessive budget   spending by the OECD countries during COVID-19, etc. Now   countries are trying to optimize their spending. Considering that there is a certain trend towards deglobalization, external trade and deficits are the first to fall victims to this policy. While China almost halved its lending, US are trying to cut their ODA (see South Africa’s case) and adjust their trade deficit, which is fuelling their vast debt.

What could be the reasons for Donald Trump to extend that kind of economic policy, trade tariffs, to Africa?

His latest actions indicated that was possible. Trump has imposed increased tariffs on 14 African countries, including South   Africa (30%), Madagascar (47%), Tunisia (28%), Côte d’Ivoire (21%), and others. The primary selection criterion was the trade deficit with the U.S., though there are exceptions, such as Libya, which was left off the list despite a US$1 billion deficit. Additionally, seven more countries, including Egypt, Morocco, and Kenya, will face a base tariff of 10%, meaning that for Washington stable relations with them are more important.

The hardest-hit country will be Lesotho (50%), where the textile industry, heavily reliant on the U.S. market, will suffer. However, South Africa will bear the greatest overall impact, as it accounts for 70% of the U.S.-Africa trade deficit. In addition to the 30% base tariff, there will be an extra 25% duty on imported cars. This will affect factories operated by VW, Toyota, BMW, and other automakers, whose exports to the U.S. total US$2-3 billion annually. Angola, which had backed the Democratic Party, is also facing penalties (32%).

If these tariffs take effect as announced, they could lead to the collapse of African Growth and Opportunity Act (AGOA). However, the U.S. has not needed AGOA as much since the 2010s when it reduced dependence on African oil and gas. AGOA is set to expire in September 2025, and Trump’s actions make its renewal highly unlikely.

Trump has suggested that affected countries relocate production to the U.S., but this is difficult for African nations that mainly export raw materials. The new tariff preference system is expected to consider political and economic factors, making it less  predictable and less favourable for African suppliers. On the other  hand, this shift could encourage African countries to focus on regional markets and develop industries tailored to their domestic economies.

It could be excellent, from academic perspectives, to evaluate and assess the impact of AGOA in relation to Africa?

For Africa, the African Growth and Opportunity Act (AGOA) meant establishment of several mainly export-oriented industries, like textile or car manufacturing. For instance, almost 2/3 of cars manufactured in RSA are being exported to US and Europe, with only 1/3 being sold on the local market and tiny part exported to other African countries (20k out of 600k prod).

They created employment opportunities for locals but never contributed to local markets and industries development, technology and knowledge sharing. Collapse of AGOA would mean additional opportunities for African industries and producers to target local and regional markets and develop industrialization strategies considering their national interests first (like Trump does).

Assessing the reactions over the tariffs world-wide, and talking about the future U.S.-Africa trade, and the African Continental Free Trade Area (AfCFTA), what next for Africa?

The African Continental Free Trade Area (AfCFTA) gives Africa a chance to embark on the hard and long journey of developing intraregional trade. Still this emerging market could be easily used by non-African suppliers as a tool to expand their presence, given that without protection nascent African industries are hardly able to compete in price and from time to time in quality. Especially now, when we are clearly seeing that the US are more interested in selling then buying. So any external aid and knowledge sharing assistance in this sphere should be received with caution.

Continue Reading

Trending