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The Impact of COVID-19 on China’s Belt and Road Initiatives in Africa

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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.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Essent Slashes Contact Centre Technology Costs by 50%

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Essent Energy provider

By Modupe Gbadeyanka

The Netherlands’ largest energy provider, Essent, has cut the technology costs of its contact centre infrastructure by half.

The organisation, which serves 2.5 million customers, recorded zero critical incidents post-migration and improved agent workplace satisfaction by 36 per cent.

The migration was delivered in partnership with AI-first customer experience transformation specialists, Sabio Group, and was completed in under 12 weeks for an operation spanning over 1,000 agents across two locations.

Agents were forced to juggle multiple disconnected screens simultaneously — a workflow that was as inefficient as it was stressful.

“Our agents were constantly working with different screens — multiple chat instances open at once, multiple agent desktop instances. It was messy, and in some cases, quite stressful,” SAFe Product Manager for Customer Interaction, Omnichannel and Digital Transformation at Essent, Michiel Kouijzer, stated.

“A lot of colleagues were saying I was mad for even suggesting this approach. It kind of feels like a victory on a personal level that it did work out. You just have to be a little ambitious — and have the right expert partner who can make it work,” Kouijzer added.

With stable cloud infrastructure now firmly in place, Essent is turning its attention to the capabilities that were impossible in its legacy environment: AI-powered call summarisation, agentic customer self-service, and next-generation workforce optimisation.

Rather than a reckless ‘big bang’ cutover that could have affected service to millions of households, Sabio engineered a phased migration strategy — beginning with Essent’s SME segment to validate technical readiness before scaling to the full enterprise operation.

“This project showcases Sabio’s unique position in the contact centre technology landscape. We’re not just moving Essent to the cloud — we’re establishing a foundation for continuous improvement in their customer experience delivery,” the Country Manager for Sabio Group Benelux, Wouter Bakker, commented.

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Africa: A New Market for Russian Business

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New Market for Russian Business

By Kestér Kenn Klomegâh

On April 11, the presentation of the book “Africa: a new market for Russian business” took place, which aroused lively diverse interests among business representatives, entrepreneurs and employees of federal structures of Russia. The event was dedicated to discussing the prospects of Russian companies entering the African market and became a platform for the exchange of views and experiences.

Participating guests, packed in the small hall, included:

– representatives of business circles,

– entrepreneurs interested in new directions of development,

– employees of federal agencies curating foreign economic activity.

The presentation was held in a constructive and friendly atmosphere. The author of the book, Serge Fokas Odunlami, detailed the key ideas and conclusions presented in the publication. Particular attention was paid to the practical aspects of operating in the African market, as well as the analysis of opportunities and risks for Russian companies.

During the lively discussion, participants asked questions, shared their experiences and made suggestions for developing cooperation with African countries. This format allowed not only to get acquainted with the content of the book, but also to discuss topical issues of expanding business relations.

Meaning of the book: The publication, “Africa: a new market for Russian business” offers readers not only analytical, but also practical recommendations on investment and market trends, and how to enter the African market. The book will be a useful tool for those considering Africa as a promising destination for investment and business development.

The presentation of the book became a significant event for the Russian business community interested in expanding cooperation with Africa. Serge Fokas Odunlami introduced the participants to the new edition, which is a comprehensive business guide that gives an impetus for dialogue and implementation of joint entrepreneurial projects and corporate initiatives across Africa.

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Ryan Collyer Reveals Reasons Behind Africa’s Significant Energy Deficit

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Ryan Collyer Rosatom CEO

By Kestér Kenn Klomegâh

Perhaps Russia’s state nuclear corporation, Rosatom, is at the frontline, shaping Africa’s energy security. And African countries are also accelerating coordinated efforts to build nuclear power plants primarily to supply their energy, which will drive industrialisation and boost power capacity for domestic utilisation.

Energy experts say adopting nuclear can further support a diverse energy mix, reduce reliance on fossil fuels, and help across the continent. Over the past two decades, Russia has been collaborating with African countries, adopting energy initiatives to provide power to approximately half the continent’s population, and making it an important component of Africa’s future energy strategy and solutions. At this point, however, it is necessary to underline the irreversible fact that Russia’s ultimate goal is to ensure long-term African energy security.

In this interview, Rosatom’s Chief Executive Director for Central and Southern Africa, Ryan Collyer, reiterates the strategic importance of Russia-Africa’s energy cooperation through strengthening bilateral agreements on collaboration on the peaceful use of nuclear energy. Collyer explains that the Russian approach is its ability to offer an integrated solution, from technology and financing to training and localisation. According to him, partnerships must be built on mutual benefit and on the principle of transparency. Here follows the interview excerpts:

What are the expectations, specifically in the nuclear energy sphere, for Africa during the forthcoming Russia–Africa Summit scheduled for 2026?

The expectation is a clear shift from dialogue to delivery. Over the past few years, we have built a strong foundation through agreements, feasibility discussions and partnerships. The 2026 Russia–Africa Summit is an opportunity to demonstrate tangible progress.

In practical terms, I would expect greater focus on implementation readiness. That includes regulatory development, human capital, financing models and localisation strategies. We also expect to see more structured cooperation in areas like small modular reactors, which are particularly relevant for many African grids, as well as stronger emphasis on education and training partnerships. Ultimately, the success of the Summit will be measured by how many initiatives move from concept to execution.

Why, despite many bilateral agreements, is Africa still experiencing a significant energy deficit?

Africa’s energy deficit is not a result of a lack of ambition or agreements. It is primarily a question of scale, financing and infrastructure readiness. Energy projects, especially large-scale ones, require long-term investment, stable policy frameworks and strong institutional capacity. Many countries are working under fiscal constraints, and at the same time, demand is growing rapidly due to population growth and urbanisation. So, even when progress is made, it can be outpaced by rising demand.

It is also important to understand that many agreements are not meant to deliver immediate infrastructure. They are part of a longer preparation cycle, including feasibility studies, regulatory development and workforce training. Nuclear projects in particular are long-term by nature, and while this can be perceived as slow progress, it is actually a reflection of the level of diligence required.

How do you assess the contribution of nuclear energy to climate change mitigation and technological development in Africa?

Nuclear energy plays a dual role in Africa’s development, both as a clean energy source and as a driver of technological advancement. From a climate perspective, nuclear provides reliable, low-carbon electricity at scale. Africa needs a significant expansion of its energy capacity to support economic growth, and this growth must be both stable and sustainable.

Nuclear allows countries to increase power generation without increasing emissions, while ensuring a consistent baseload supply. At the same time, its impact goes beyond electricity. Nuclear technologies support medicine, agriculture, water management and industrial processes. Across Africa, they are already used in areas such as cancer treatment, food preservation and environmental monitoring, making nuclear a broader platform for sustainable development.

In this context, Rosatom offers integrated solutions across the full nuclear value chain. This includes large-scale and small modular reactors, as well as advanced non-power applications such as nuclear medicine and irradiation technologies. Our focus is on delivering practical, tailored solutions that support long-term development and local capacity building.

Is Africa unprepared to deal with nuclear waste, as some critics suggest?

I would say that preparedness varies across countries, but it would be inaccurate to suggest that the issue is being ignored. Responsible nuclear programmes require a comprehensive approach to waste management from the very beginning. This includes legal frameworks, regulatory oversight, storage solutions and long-term planning. These elements are part of international best practice and are supported by organisations such as the IAEA. What is true is that this topic is often undercommunicated in the public space. It should be discussed more openly, because transparency builds trust.

Countries that are serious about nuclear energy understand that waste management is not optional. It is a core component of the programme, and it is addressed in parallel with all other aspects of development. Rosatom offers comprehensive solutions for spent fuel and radioactive waste management. These include technologies for safe storage, transportation, reprocessing and recycling of nuclear materials. In fact, advanced reprocessing solutions allow for the reuse of valuable components of spent fuel, significantly reducing the volume of waste and improving the overall sustainability of the nuclear cycle.

Nuclear power remains controversial. Why do you believe it is important for Africa, and what role does it play in the energy mix?

Africa needs a balanced and pragmatic energy strategy. The conversation should not be about choosing one technology over another, but about building an energy mix that is reliable, affordable and sustainable. Renewables will play a critical role and are already expanding rapidly. However, they are variable by nature. For industrialisation, countries also need stable, continuous power that is baseload. This is where nuclear can make a meaningful contribution. A diversified energy mix that includes renewables, nuclear, hydropower and other sources allows countries to reduce risk, improve energy security and support long-term economic growth.

Nuclear is not the only solution, but it is an important part of a resilient system, especially for countries with growing industrial ambitions. In this context, Rosatom is able to support countries with integrated energy solutions that combine reliability, sustainability and long-term partnership models, tailored to national development priorities.

How can we shift public perception, given the legacy of Chornobyl and Fukushima?

We cannot rewrite history, and we should not try to. Events like Chornobyl and Fukushima shaped public perception for a reason. The starting point is respect for those concerns, not dismissal. At the same time, what is often missing in the conversation is what happened after those events. Chornobyl, in particular, fundamentally reshaped the entire philosophy of nuclear safety. It led to a complete rethinking of reactor design, emergency response, and regulatory oversight. Independent regulators were strengthened, safety responsibilities were clearly separated from operators, and safety culture became not just a principle but a legal requirement supported by continuous drills and probabilistic risk assessments.

Technologically, the industry also changed dramatically. Modern reactors are designed to withstand even worst-case scenarios, with multi-layered “defence-in-depth” systems, core melt traps, and passive safety mechanisms that rely on natural physical processes rather than human intervention. These are not incremental improvements. They are the direct result of lessons learned at a very high cost. But facts alone do not change perception. People do not build trust through reports. They build it through experience and transparency. That is why our approach in Africa is deliberately open.

We create opportunities for students, young professionals and journalists to visit nuclear facilities, research centres and training programmes. When people can see how systems operate, how safety is managed, and how seriously it is taken, the conversation becomes more grounded and less abstract. There is also an important human dimension that is often overlooked.

The history of Chornobyl is not only a story of tragedy. It is also a story of professionalism, responsibility and the people who managed the crisis and generated the knowledge that made today’s safety standards possible. Acknowledging that the full picture helps move the discussion away from fear alone toward understanding. At the same time, we need to broaden the narrative. Nuclear is not only about power generation. It is about cancer treatment, food security, water management and high-skilled employment. When communities begin to connect nuclear technology with real benefits in their own lives, it stops being an abstract risk and starts becoming a practical solution. Ultimately, perception does not change through persuasion. It changes through consistency. Through transparency, long-term engagement, and real-world impact.

What are your final thoughts on Russia’s preparedness to support Africa’s nuclear ambitions?

Russia has demonstrated that it is committed to long-term partnerships in Africa, particularly in the nuclear sector. We are already seeing concrete examples of cooperation in areas such as project development, education and skills transfer. The key strength of the Russian approach is its ability to offer an integrated solution, from technology and financing to training and localisation. Partnerships must be built on mutual benefit and transparency. Africa’s priorities are clear: energy security, economic development and local capacity building. Any partner that is ready to contribute to these goals consistently and practically will have a meaningful role to play. If we look country by country, the picture becomes even more interesting.

Take Ethiopia. This is a country thinking long-term about energy security and industrialisation. It has strong hydropower, but also understands the need to diversify. Ethiopia is prepared to take a big step towards nuclear energy. In Rwanda, the approach is different. It is focused on innovation and speed. There is a strong interest in small and flexible nuclear technologies, alongside active use of nuclear science in healthcare and agriculture. What stands out is the clarity of vision and pace of implementation.

Then, there is Namibia. As a major uranium producer, the question is how to move up the value chain. Partnerships can help connect resources to technology, skills and future energy applications. So, Russia’s role is not one-size-fits-all.

The real strength lies in adapting to each country’s strategy. If that continues, nuclear cooperation becomes not just about energy, but about shaping long-term technological development. Rosatom is one of the few global players capable of delivering the entire nuclear value chain. This includes reactor technologies, fuel supply, waste management solutions, including reprocessing, as well as long-term operational support and human capital development. This comprehensive capability is what allows us to move projects from concept to reality in a structured and sustainable way.

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