World
The Impact of COVID-19 on China’s Belt and Road Initiatives in Africa
A new report by Economist Corporate Network, supported by Baker McKenzie and Silk Road Associates, BRI Beyond 2020 (report), shows that the ripple effects of COVID-19 are affecting the nature, pace and scope of China’s Belt and Road Initiative (BRI) activity in Africa, mostly for the short term.
The report also explains how the virus has led to an increased interest in digital programmes in BRI countries, as well as a heightened focus on sustainability, including workforce health. The BRI is China’s multi-billion dollar plan to link Asia, Europe and Africa.
“The COVID-19 epidemic definitely has a dampening effect on BRI activities as Chinese companies focus their resources and efforts on dealing with the various types of impact caused by such epidemic.
“However, this effect will likely be relatively short term and we are already seeing the resumption of BRI activities by our Chinese clients.
“It is also heartening to see foreign sellers and partners adjusting their deal timetables to make allowances for the impact caused by this epidemic,” says Bee Chun Boo M&A Partner at Baker McKenzie in Beijing.
Ben Simpfendorfer, CEO of Silk Road Associates, explains in the report that the BRI will remain a priority for China, but that it will affect the Chinese government’s short-term and long-term response to COVID-19, because shortfalls in China’s health sector, and the economic fallout for the country’s financially challenged SME sector, will divert official attention and resources away from BRI over the next 12 months and potentially longer.
“This may mean reduced investments into BRI’s smaller, less critical markets where the opportunities to connect such investments to the global supply are limited. Central Asia, Sub-Saharan Africa, and Eastern Europe will accordingly see a short-term dip in BRI related activity, relative to Southeast Asia. The exception to this view is where China seeks to share its valuable experience of battling COVID-19 with other BRI countries,” he says.
Healthcare
Mike van Rensburg, Partner and Head of the Healthcare and Pharmaceuticals Sector at Baker McKenzie in Johannesburg notes, “Any largescale outbreak of COVID-19 in Africa will put pressure on already strained public health systems in the continent and as such African nations are being vigilant in order to contain the spread of COVID-19. Detection of the virus in African has been challenging due to lack of laboratory capacity and medical supplies, but World Health Organisation (WHO) has said it is equipping countries with virus testing kits, and that it has helped to train and provide personal protective equipment to health workers. Further, most African countries are identifying quarantine centres and stocking up on medication.”
The outlook is far from bleak however. The report highlights that one key area of potential for the BRI is in projects focused on strengthening the health systems of low-income countries, even if focused on soft processes rather than hard infrastructure.
It points to Chinese tech companies such as Alibaba’s DingTalk, Tencent’s WeChat Work and Huawei’s WeLink potentially bidding for market share outside of China, especially in the BRI region. China’s MedTech sector may similarly find opportunities abroad. Online doctor consultation platforms have seen consultations soar in the past few months (Alibaba Health, Ping An Good Doctor) and similar technologies may work abroad if staffed by locals, given health sector shortfalls in many BRI countries.
Simpfendorfer notes that China’s success in using AI and other technologies to identify and monitor virus carriers may also have application across the BRI, including in Africa.
Infrastructure
The report further outlines how, in the years before COVID-19 struck, China had increasingly become an important stakeholder in Africa’s infrastructure development. In recent years, there has been a notable shift in the pattern of China’s overseas direct investment in the region, with a repositioning of its focus from the mining sector to Africa’s construction, manufacturing and financial services sectors. These investments have been supporting Africa’s efforts to diversify its economy and reduce its over-reliance on natural resources for growth.
Political and policy commitments between China and Africa have strengthened and expanded in their scope since the BRI was launched, the report shows. During the 2018 Forum on China Africa Cooperation (FOCAC), an official forum between China and all states in Africa, Mr Xi proposed eight major areas for nations to collaborate on: industrial promotion, facility connectivity, trade facilitation, green development, capacity building, health and hygiene, humanities exchanges, and peace and security. Since then, there have been further announcements signalling continued interest to deepen this bilateral relationship, including a desire from African nations to leverage on the BRI.
In August 2019, the Southern African Development Community (SADC) affirmed its plan to link the BRI with its industrialisation strategy, especially on the construction of infrastructure. These developments build on the foundations that were established over the past decade.
Further, the report shows how Chinese companies have supported the construction of three major economic zones in sub-Saharan Africa, including Zambia-China Economic and Trade Cooperation Zone, Eastern Industrial Zone in Ethiopia and China-Nigeria free trade zone. Such investments have been helping to create jobs and develop local industry.
Trade
Trade between China and Africa has also been thriving. In 2018, China’s trade with Africa increased by 19.7%, a pace of growth that is considerably higher than China’s average trade growth with the world (12.6%), the report indicates.
The report shows how these strengthening trade links are in part a result of favourable financial incentives offered to Africa by China. Thirty-three of the poorest countries in Africa export 97% of their exports to China with no tariffs and no customs duties. Bilateral trade is still heavily centred on China’s import of Africa’s natural resources. Nevertheless, in recent years China has modestly increased its import of manufacturing products from more diversified economies such as South Africa.
Virusha Subban, Partner specialising in Customs and Trade at Baker McKenzie in Johannesburg, points out, however, that “as one of Africa’s biggest trading partners, the effects of COVID-19 in China have already been felt in the continent. With China having shut down its manufacturing centre and closed its ports, there has been resultant decrease in demand for African commodities. Importers in China cancelled orders due to port closures and as a result of reduction in consumption in China. Sellers of commodities in Africa were forced to offload products elsewhere at a discounted rate.
“Over three quarters of African exports to the rest of the world are still heavily focused on natural resources and any reduction in demand impacts the economies of most of the continent. Countries such as the DRC, Zambia, Nigeria and Ghana are significantly exposed to risk in terms of industrial commodity exports, such as such as oil, iron ore and copper, to China,” she notes.
Subban explains that the impact of COVID-19 will also be felt in the manufacturing sectors. Because China is part of the global supply chain, factory closures raised the risk of supply chain disruptions for multinational companies with delays, raw material shortages, increased costs and reduced orders affecting manufacturing plants around the world, including in Africa. As production lines and factories begin to reopen in affected regions, imports and exports will be further delayed by the resultant congestion and backlog.
“External imports from outside of Africa account for more than half the total volume of imports to African countries, with the most important suppliers being Europe (35%) China (16%) and the rest of Asia including India (14%). The manufacturing and industrial sectors in Africa have been impacted by a decreased supply of key components from China (and other relevant countries affected by COVID-19).
Although Africa’s untapped manufacturing and consumer markets represent significant potential opportunity, the short term impact on China’s investments in Africa after COVID-19 will be further constrained by the challenges inherent in the region’s business environment. The report lists poor governance, currency risks, complex regulatory systems and high levels of corruption as issues that will continue to pose hurdles to investment. To navigate the market opportunities, companies—from China and elsewhere—will need to be fully prepared and equipped to deal with potential legal and regulatory disputes in Africa.
African nations are also hoping that once the African Continental Free Trade Area (AfCFTA) is implemented (due to take place in July this year but now postponed due to COVID-19) intraregional trade in Africa will decrease the continent’s reliance on foreign investment.
Wildu du Plessis, Partner and Head of Africa at Baker McKenzie in Johannesburg, says that according to research from Baker McKenzie and Oxford Economics – AfCFTA’s US$ 3 trillion Opportunity – there is a vast infrastructure gap in Africa, including transport and utilities infrastructure, which must be urgently addressed so as not to restrict increased trade integration.
“AfCFTA is expected to act as an impetus for African governments to address their infrastructure needs as well as to overhaul regulation relating to tariffs, bilateral trade, cross-border initiatives and capital flows. Both domestic and foreign trade, including with China, will benefit from reforms to regulation, political climate and trade policies that enhance competitiveness and improve the ease of doing business, but effective solutions will take time.”
Sustainability
If the BRI is to remain a major force in global infrastructure development after COVID-19, sustainability will have at the heart of its projects. According to the report, the definition of BRI sustainability is also by necessity growing to encompass a focus on protecting the health of those involved in BRI projects, including both workers and the wider local populations where projects are underway.
And as Africa reduces its over-dependence on natural resources for boosting economic growth, it also needs to ensure it develops other industries in a sustainable way. To this end, the report outlines how China and Africa have agreed to work together on improving Africa’s capacity for green, low-carbon and sustainable development, and to roll-out more than 50 projects during 2019-2021 on clean energy, wildlife protection, environment-friendly agriculture and low-carbon development.
Du Plessis adds, “While the impact of COVID-19 on African economies will be detrimental, there is light at the end of the tunnel in that the project delays are expected to be mostly short term; and future initiatives will now have a heightened focus on sustainability – improving not only their long-term outlook, but also the sustained health of the environment and, most importantly, Africa’s people.
World
Today’s Generation of Entrepreneurs Value Flexibility, Autonomy—McNeal-Weary
By Kestér Kenn Klomegâh
The Young African Leaders Initiative (YALI) is the United States’ signature step to invest in the next generation of African leaders. Since its establishment in 2010 by Obama administration, YALI has offered diverse opportunities, including academic training in leadership, governance skills, organizational development and entrepreneurship, and has connected with thousands of young leaders across Africa. This United States’ policy collaboration benefits both America and Africa by creating stronger partnerships, enhancing mutual prosperity, and ensuring a more stable environment.
In our conversation, Tonya McNeal-Weary, Managing Director at IBS Global Consulting, Inc., Global Headquarters in Detroit, Michigan, has endeavored to discuss, thoroughly, today’s generation of entrepreneurs and also building partnerships as a foundation for driving positive change and innovation in the global marketplace. Here are the excerpts of her conversation:
How would you describe today’s generation of entrepreneurs?
I would describe today’s generation of entrepreneurs as having a digital-first mindset and a fundamental belief that business success and social impact can coexist. Unlike the entrepreneurs before them, they’ve grown up with the internet as a given, enabling them to build global businesses from their laptops and think beyond geographic constraints from day one. They value flexibility and autonomy, often rejecting traditional corporate ladders in favor of building something meaningful on their own terms, even if it means embracing uncertainty and financial risk that previous generations might have avoided.
And those representing the Young African Leaders Initiative, who attended your webinar presentation late January 2026?
The entrepreneurs representing the Young African Leaders Initiative are redefining entrepreneurship on the continent by leveraging their unique perspectives, cultural heritage, and experiences. Their ability to innovate within local contexts while connecting to global opportunities exemplifies how the new wave of entrepreneurs is not confined by geography or conventional expectations.
What were the main issues that formed your ‘lecture’ with them, Young African Leaders Initiative?
The main issues that formed my lecture for the Young African Leaders Initiative were driven by understanding the importance of building successful partnerships when expanding into the United States or any foreign market. During my lecture, I emphasized that forming strategic alliances can help entrepreneurs navigate unfamiliar business environments, access new resources, and foster long-term growth. By understanding how to establish strong and effective partnerships, emerging leaders can position their businesses for sustainable success in global markets. I also discussed the critical factors that contribute to successful partnerships, such as establishing clear communication channels, aligning on shared goals, and cultivating trust between all parties involved. Entrepreneurs must be proactive in seeking out partners who complement their strengths and fill gaps in expertise or resources. It is equally important to conduct thorough due diligence to ensure that potential collaborators share similar values and ethical standards. Ultimately, the seminar aimed to empower YALI entrepreneurs with practical insights and actionable strategies for forging meaningful connections across borders. Building successful partnerships is not only a pathway to business growth but also a foundation for driving positive change and innovation in the global marketplace.
What makes a ‘leader’ today, particularly, in the context of the emerging global business architecture?
In my opinion, a leader in today’s emerging global business architecture must navigate complexity and ambiguity with a fundamentally different skill set than what was previously required. Where traditional leadership emphasized command-and-control and singular vision, contemporary leaders succeed through adaptive thinking and collaborative influence across decentralized networks. Furthermore, emotional intelligence has evolved from a soft skill to a strategic imperative. Today, the effective modern leader must possess deep cross-cultural intelligence, understanding that global business is no longer about exporting one model worldwide but about genuinely integrating diverse perspectives and adapting to local contexts while maintaining coherent values.
Does multinational culture play in its (leadership) formation?
I believe multinational culture plays a profound and arguably essential role in forming the kind of leadership required in today’s global business environment. Leaders who have lived, worked, or deeply engaged across multiple cultural contexts develop a cognitive flexibility that’s difficult to replicate through reading or training alone. More importantly, multinational exposure tends to dismantle the unconscious certainty that one’s own way of doing things is inherently “normal” or “best.” Leaders shaped in multicultural environments often develop a productive discomfort with absolutes; they become more adept at asking questions, seeking input, and recognizing blind spots. This humility and curiosity become strategic assets when building global teams, entering new markets, or navigating geopolitical complexity. However, it’s worth noting that multinational experience alone doesn’t automatically create great leaders. What matters is the depth and quality of cross-cultural engagement, not just the passport stamps. The formation of global leadership is less about where someone has been and more about whether they’ve developed the capacity to see beyond their own cultural lens and genuinely value differences as a source of insight rather than merely tolerating them as an obstacle to overcome.
In the context of heightening geopolitical situation, and with Africa, what would you say, in terms of, people-to-people interaction?
People-to-people interaction is critically important in the African business context, particularly as geopolitical competition intensifies on the continent. In this crowded and often transactional landscape, the depth and authenticity of human relationships can determine whether a business venture succeeds or fails. I spoke on this during my presentation. When business leaders take the time for face-to-face meetings, invest in understanding local priorities rather than imposing external agendas, and build relationships beyond the immediate transaction, they signal a different kind of partnership. The heightened geopolitical situation actually makes this human dimension more vital, not less. As competition increases and narratives clash about whose model of development is best, the businesses and nations that succeed in Africa will likely be those that invest in relationships characterized by reciprocity, respect, and long-term commitment rather than those pursuing quick wins.
How important is it for creating public perception and approach to today’s business?
Interaction between individuals is crucial for shaping public perception, as it influences views in ways that formal communications cannot. We live in a society where word-of-mouth, community networks, and social trust areincredibly important. As a result, a business leader’s behavior in personal interactions, their respect for local customs, their willingness to listen, and their follow-through on commitments have a far-reaching impact that extends well beyond the immediate meeting. The geopolitical dimension amplifies this importance because African nations now have choices. They’re no longer dependent on any single partner and can compare approaches to business.
From the above discussions, how would you describe global business in relation to Africa? Is it directed at creating diverse import dependency?
While it would be too simplistic to say global business is uniformly directed at creating import dependency, the structural patterns that have emerged often produce exactly that outcome, whether by design or as a consequence of how global capital seeks returns. Global financial institutions and trade agreements have historically encouraged African nations to focus on their “comparative advantages” in primary commodities rather than industrial development. The critical question is whether global business can engage with Africa in ways that build productive capacity, transfer technology, develop local talent, and enable countries to manufacture for themselves and for export—or whether the economic incentives and power irregularities make this structurally unlikely without deliberate policy intervention.
World
Russia Expands Military-Technical Cooperation With African Partners
By Kestér Kenn Klomegâh
Despite geopolitical complexities, tensions and pressure, Russia’s military arms and weaponry sales earned approximately $15 billion at the closure of 2025, according to Kremlin report. At the regular session, chaired by Russian President Vladimir Putin on Jan. 30, the Commission on Military and Technical Cooperation with Foreign Countries analyzed the results of its work for 2025, and defined plans for the future.
It was noted that the system of military-technical cooperation continued to operate in difficult conditions, and with increased pressure from the Western countries to block business relations with Russia. The meeting, however, admitted that export contracts have generally performed sustainably. Russian military products were exported to more than 30 countries last year, and the amount of foreign exchange exceeded $15 billion.
Such results provide an additional opportunity to direct funds to the modernization of OPC enterprises, to the expansion of their production capacities, and to advanced research. It is also important that at these enterprises a significant volume of products is civilian products.
The Russian system of military-technical cooperation has not only demonstrated effectiveness and high resilience, but has created fundamental structures, which allow to significantly expand the “geography” of supplies of products of military purpose and, thus strengthen the position of Russia’s leader and employer advanced weapons systems – proven, tested in real combat conditions.
Thanks to the employees of the Federal Service for Military Technical Cooperation and Rosoboronexport, the staff of OPC enterprises for their good faith. Within the framework of the new federal project “Development of military-technical cooperation of Russia with foreign countries” for the period 2026-2028, additional measures of support are introduced. Further effective use of existing financial and other support mechanisms and instruments is extremely important because the volumes of military exports in accordance with the 2026 plan.
Special attention would be paid to the expansion of military-technological cooperation and partnerships, with 14 states already implementing or in development more than 340 such projects.
Future plans will allow to improve the characteristics of existing weapons and equipment and to develop new promising models, including those in demand on global markets, among other issues – the development of strategic areas of military-technical cooperation, and above all, with partners on the CIS and the CSTO. This is one of the priority tasks to strengthen both bilateral and multilateral relations, ensuring stability and security in Eurasia.
From January 2026, Russia chairs the CSTO, and this requires working systematically with partners, including comprehensive approaches to expanding military-technical relations. New prospects open up for deepening military-technical cooperation and with countries in other regions, including with states on the African continent. Russia has been historically strong and trusting relationships with African countries. In different years even the USSR, and then Russia supplied African countries with a significant amount of weapons and military equipment, trained specialists on their production, operation, repair, as well as military personnel.
Today, despite pressure from the West, African partners express readiness to expand relations with Russia in the military and military-technical fields. It is not only about increasing supplies of Russian military exports, but also about the purchase of other weapons, other materials and products. Russia has undertaken comprehensive maintenance of previously delivered equipment, organization of licensed production of Russian military products and some other important issues. In general, African countries are sufficient for consideration today.
World
Trump Picks Kevin Warsh to Succeed Jerome Powell as Federal Reserve Chair
By Adedapo Adesanya
President Donald Trump has named Mr Kevin Warsh as the successor to Mr Jerome Powell as the Federal Reserve chair, ending a prolonged odyssey that has seen unprecedented turmoil around the central bank.
The decision culminates a process that officially began last summer but started much earlier than that, with President Trump launching a criticism against the Powell-led US central bank almost since he took the job in 2018.
“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Mr Trump said in a Truth Social post announcing the selection.
US analysts noted that the 55-year old appear not to ripple market because of his previous experience at the apex bank as Governor, with others saying he wouldn’t always do the bidding of the American president.
If approved by the US Senate, Mr Warsh will take over the position in May, when Mr Powell’s term expires.
Despite having argued for reductions recently, “Warsh has a long hawkish history that markets have not forgotten,” one analyst told Bloomberg.
President Trump has castigated Mr Powell for not lowering interest rates more quickly. His administration also launched a criminal investigation of Powell and the Federal Reserve earlier this month, which led Mr Powell to issue an extraordinary rebuke of President Trump’s efforts to politicize the independent central bank.
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