World
The New Global Financing Pact: Expected Impact on Africa’s Growth and Development
By Kestér Kenn Klomegâh
The Paris Summit on new global financing pact offers some hope for Africa’s development within the context of the geopolitical changes and competition on the continent because extensive investments are needed across various sectors, especially in modernizing its agricultural sector to increase production and value chain.
Increasing agricultural production will help ensure food security and supply necessary raw materials for the industry. The regular collection of raw materials also adds the required value to commodities, thus making them ready for distribution across the continent. This will effectively support establishing a single continental market and promote intra-African trade.
With the rapid changes in the world today, global players are seriously turning their focus on Africa. The central issue is to gain economic influence and further control of the continent’s politics. As already known, the African Continental Free Trade Area (AfCFTA) spans all the states over the following years, and it has the potential to unite more than 1.3 billion people in a $2.5 trillion economic bloc.
It has the potential to generate a range of benefits through supporting trade creation, structural transformation, productive employment and poverty reduction. The AfCFTA opens up more opportunities for both local African and foreign investors from around the world. This is the latest core element or component in post-colonial Africa. It has become the most significant landmark in the history of Africa. We are indeed talking about the official start of this intra-African trading which, of course, signals the commencement of Africa’s journey to market integration.
Those of us in the academia monitoring, researching and analyzing Africa’s development, it beholds again to closely examine the two-day Paris summit, June 22 to 23, and determine the level of its significance and interconnection with this new global financing pact that will benefit Africa. There will be winners and losers; it is both sides of the same coin. African leaders with strategic eyes and brains will become the first and most brilliant beneficiaries; others with the old mindset will only sustain their status as observers and consequently gain nothing for their countries and citizens.
At this point, the summit primarily seeks to rally political leaders and representatives of global financial institutions. The new financing system will address inequality, debt crisis, climate change, international taxes, and special drawing rights. It will be more inclusive and fairer. Therefore, at least, there are solid grounds to rethink the contract between the countries in the Global North and the Global South.
Given geopolitical contradictions and complexities, one more critical point of focus is formulating new pacts and financial modalities to address the current global economic crisis and climate change.
I can only remind you of the global financial institutions. These include the IMF and the World Bank, civil society and the private sector. It will lay the foundation for creating a new global financing system. The new financing system will address inequality, debt crisis, climate change, international taxes, and special drawing rights. It will be more inclusive and fairer.
Most of their conditions are usually unfavourable to many creditors; however, much again depends on the crediting countries’ implementable policies, approaches and economic goals. At this point, we must ponder a few questions: How does the summit fit into a global context defined by the sweeping consequences of persistent economic, climate, health and energy crises, mainly in the most vulnerable countries? What do we expect from the summit, and what next after all these?
Objectives for the Paris Summit: Catherine Colonna, the French Minister of Europe and Foreign Affairs, in a statement on January 6, 2023, noted that the Paris Summit would focus on building a new pact with a Global North and a Global South. According to her, the new arrangement would facilitate vulnerable countries’ access to the necessary finance to address the effects of the current and future crises.
On the same day, the Secretary of State for Development, Francophonie and International Partnerships, Chrysoula Zacharopoulou, and the Permanent Representative of France to the OECD, Amélie de Montchalin, took part in a webinar arranged by the Finance for Development Lab on the issues at stake at the Paris Summit 2023.
In November 2022, on the sidelines G20 Summit and the conclusion of a COP27 Summit with mixed results, French President Emmanuel Macron called for a global conference in Paris in June 2023. Macron announced that the Paris Summit would take stock “of all means and ways of increasing financial solidarity with the Global South.”
Emmanuel Macron’s announcement happened in a particular global context. The climate change crisis particularly threatens the Global South countries, including island states. Thus, the Barbados Prime Minister, Mia Mottley, has led an initiative to finance climate action since COP26. The “Bridge Initiative” focuses on facilitating access to global financing for the countries most vulnerable to climate change. The funding allows them to respond better to climate challenges.
Macron’s announcement aligns with the Bridgetown Initiative. However, the Paris Summit will deliberate on financing issues beyond the climate question, including the fight against poverty. The Covid-19 pandemic, the Ukrainian conflict, and the accompanying consequences have massively shrunk the budgetary and fiscal space for many countries, including Africa. This has affected their ability to finance citizens’ access to basic social needs and services. Consequently, the UNDP observed a human development decline in nine out of ten countries globally in 2022. The fall has mainly come from increased poverty levels and a drop in life expectancy.
AfDB president Dr Akinwumi Adesina will moderate a roundtable discussion about the Alliance for Green Infrastructure in Africa at the Summit for New Global Financing Pact. Seven heads of state will join Akinwumi Adesina. Islamic Development Bank Chairman Muhammad Al Jasser and the European Investment Bank President, Werner Hoyer, will also attend.
The Alliance represents a program by the African Union Commission, the AfDB, and Africa50 with other partners. The platform allows African nations to partner with the private sector to raise $500 million in early-stage combined finance capital. This will catalyze up to $10 billion in green and climate-resilient programs and projects. Its eventual goal is to hasten a transition to net-zero emissions by Africa and for Africa.
The event will promote AGIA as an influential platform. AGIA could accelerate and scale funding Africa’s transformational climate-resilient and greener infrastructure projects to attract new financiers and partners. It will also provide a progress update on the Alliance’s activities since its launch at COP27. The June 22-23 Summit for a New Global Financing Pact is one to anticipate. Many of the deliberations and expected outcomes will no doubt benefit the majority of African nations.
With six round tables, 30 branded events and 50 parallel events and deliberations, there will be a final declaration and communique. Leaders have registered their participation, including the President of Mozambique, Filipe Nyusi, Prime Minister of Barbados, Olaf Scholz, Luis Inacio, the President of Brazil, Lula Da Silva, Germany Chancellor Mia Mottley, Chinese Premier Li Qiang, and US Treasury Secretary Janet Yellen.
Several representatives of international organizations, activists, and philanthropists will also attend. They include AfDB President Akinwumi Adesina, Word Bank President Ajay Banga, UN Secretary-General Antonio Guterres, the European Commission President Ursula Von der Leyen, UN Goodwill Ambassador and activist Vanessa Nakate, co-founder of the Bill & Melinda Gates Foundation and philanthropist Melinda French Gates, among others.
A high-level international steering committee composed of states and international organizations oversees the Paris Summit preparations. It includes France, South Africa, Senegal, the United Arab Emirates, the United Kingdom, the United States, Germany, Barbados, Brazil, Japan, China, India, the United Nations Secretariat, the European Commission, the OECD, the World Bank and the International Monetary Fund.
Civil society campaigns: Ahead of the Summit for a New Global Financing Pact in Paris and the confines of multilateral development bank reforms, the Pandemic Action Network and 19 institutions from around the globe have issued a rallying call for the inclusion of pandemic debt relief clauses in new country lending agreements.
In summary, we expect the summit formulates proposals for innovative financing sources, particularly those from the multilateral development banks. This will ultimately benefit developing countries, including those in Africa. Further, the international institution’s interventions will effectively address and reduce or minimize the vulnerability of economic shocks due to global instability from the pandemic and Russia-Ukraine crisis. We equally expect some reforms in the global financial infrastructure to create a just, sustainable and equitable world.
By Aduragbemi Omiyale
Accessing the US Dollar in the East Africa region has now been made easier with the expansion of the stablecoin settlement infrastructure of SCRYPT.
This development enables banks, payment providers and corporate treasury teams to move value into and out of the continent in real time.
Businesses paying international suppliers frequently have to convert local currency into USD before purchasing stablecoins for settlement, incurring FX conversions and spreads before any payment is made.
But SCRYPT is eliminating this intermediate conversion by enabling direct settlement corridors for local African currencies into stablecoins.
This development allows businesses to move from local currency to stablecoin settlement in a single licensed transaction, without first sourcing rationed bank dollars, as stablecoins are increasingly becoming settlement infrastructure rather than an investment product.
The expansion adds settlement support across four African currencies: the Kenyan shilling (KES), Tanzanian shilling (TZS), Rwandan franc (RWF) and Ugandan shilling (UGX). Each corridor is delivered through the same full-stack infrastructure our clients already use for trading, custody and treasury operations.
Speaking on this, the chief executive of SCRYPT, Norman Wooding, said, “Across Africa, stablecoin adoption is driven by economic need, not speculation.
“Businesses here are not chasing yield; they are trying to pay suppliers and manage treasury without losing margin to a banking system that rations dollars. Licensed, fair-rate dollar access is the clearest proof of what this infrastructure is for.”
Also commenting, the Managing Director of Markets & Trading at SCRYPT, Mr Gabriel Titopoulos, said, “Until now, reaching stablecoins from local African currencies meant buying scarce dollars and incurring several layers of conversion costs.
“SCRYPT removes this friction. Firms and payment providers can now settle straight from local currencies through live corridors, with local partners.”
World
African Graduates Association Promoting Multifaceted Initiatives With Russian Educational Institutions
By Kestér Kenn Klomegâh
In preparations for the third Russia-Africa Summit, scheduled for late October 2026, Dr Francois Ngan, deputy chairman of the Union of Associations of African Graduates of Soviet and Russian Universities, during an official working visit, has held a consultative meeting with Professor Vladimir Filippov, the President of the Russian University of Peoples’ Friendship (RUDN), and former Minister of Higher Education of Russia, Chairman of the National Commission for Accreditation of Higher Education.
RUDN is an educational institution established in 1960, primarily to provide higher education to Third World students. It has now become a popular multidisciplinary spot for many students, especially from developing countries. The university offers various academic programmes and has research infrastructure that comprises laboratories and interdisciplinary centres. The university is named after the former Congolese leader, Patrice Lumumba.
Dr Francois Ngan and Professor Filippov discussed the importance of the Graduates Association as a continental platform dedicated to strengthening unity, cooperation, and promoting shared progress among African graduates who studied in the former Soviet Union and in the Russian Federation. They also reviewed multifaceted initiatives that could bring together alumni associations from across Africa, whose members obtained education and professional training, and cultural experiences in Soviet and Russian institutions of higher learning.
Professor Filippov expressed optimism in addressing emerging challenges as a result of shifting geopolitical changes, emphasised strategic cooperation in the educational sphere with Africa, in general, and with the Republic of Cameroon, in particular, and further about the integration of African students during their studies in the Russian Federation.
The meeting also touched on academic and scientific work, the possibility of rewriting a scientific thesis, and the official organisation of transferring versions translated into six languages for the library of RUDN. Significant questions relating to Russia’s educational opportunities, collaborations and partnerships involving African countries were thoroughly discussed.
The Union of Associations of African Graduates of Soviet and Russian Universities was created under one continental umbrella to promote friendship, for professional networking, to engage in cultural exchange, and with particular emphasis on forging strategic cooperation between Africa and Russia.
World
Russia to Support Industrial Growth, Technological Advancement and Supply Chain Resilience across Africa
By Kestér Kenn Klomegâh
With the heightening of geopolitical rivalry and competition, a new Russia-Africa working group has emerged as a significant institutional mechanism and plans to focus on facilitating and monitoring strategic investments, industrialisation, and infrastructural development—the Strategic Action Plan 2023-2026—that was outlined during the second Russia-Africa summit, in St.Petersburg, the second largest city in the Russian Federation.
While substantial progress has, largely, lagged on the multidimensional economic front with Africa primarily due to its internal difficulties and the complexity of relations with its former Soviet neighbours, Russian officials believe there still remains huge untapped potential in strengthening bilateral cooperation. As planned, President Vladimir Putin has already signed an executive order that directs Moscow to host the forthcoming third Russia-Africa summit in October 2026.
On June 30, a regular meeting of the Business Council on Africa was held under the chairmanship of the head of the Russian Foreign Ministry. It was dedicated to issues of trade, economic and investment cooperation with Africa. The group discussed the current state and prospects for the implementation of policy initiatives with an emphasis on assisting the countries of the continent, strengthening their economic, energy, technological and food sovereignty, as well as training specialists for Africa.
Foreign Minister Sergey Lavrov has reiterated that Russia-Africa relations primarily depend on an understanding of the importance of collective action based on the principles of equality, mutual respect and resolving common tasks. In the past few years, Russia-Africa cooperation has been noticeably strengthening. “We are deepening political dialogues, developing bilateral contacts with African countries, promoting cordial cooperation between ministries and departments, and expanding humanitarian exchanges. We are also continuing the structural diversification of trade partnerships and economic dimensions.”
“Next on the agenda is the launch of diplomatic missions in The Gambia, Liberia, Togo, and the Union of the Comoros,” Lavrov said at a meeting of the Business Council under the Russian foreign minister. Lavrov noted that Russian embassies began operating in three other African countries in 2025: Niger, Sierra Leone, and South Sudan. A new Department for Partnership with Africa was also established. According to the top diplomat, “expanding Russia’s diplomatic presence on the continent contributes to developing relations.”
There are already 45 Russian embassies operating in Africa. The Russian foreign minister noted that Moscow is quickly rebuilding its presence in African countries, which sharply declined during the collapse of the Soviet Union. “There will be literally four or five countries left where we still need to establish full-fledged embassies, and then, we will have 100 per cent coverage of the entire African continent with our diplomatic presence,” Lavrov emphasised.
After the first summit in October 2019, the Foreign Ministry also created the Secretariat of the Russia-Africa Partnership Forum. Its main tasks include controlling the roadmap to Africa’s multidimensional cooperation and guiding potential Russian investors to the continent. This also underscored the priority and post-Soviet solidarity Russia currently attaches to its policy towards Africa, within the growing framework of the emerging new architecture of multipolarity in the Global South.
In an interview in June 2026, the director of the Department of Partnership with Africa at the Foreign Ministry, Tatyana Dovgalenko, shared a few insights in the lead-up to the third summit. Furthermore, Dovgalenko explained that Russia would move away from security to concentrate more on economic issues, especially to team up with African colleagues to streamline mechanisms for implementing projects that will ensure food security and agriculture, and help Africa in installing processing facilities to support its self-sufficiency. She also emphasised energy and vital infrastructures, and the third direction was to simultaneously work more coherently with sub-regional organisations.
Over the past few years, bilateral relations have been increasing. There are positive dynamics in trade turnover, estimated at $30 billion. Steps are being taken to build payment systems, preferably in national currencies, while Russia looks to open four more diplomatic offices, bringing the total to 48 across Africa. Russia is currently training 37,000 African students, but only approximately 1/3 on state scholarships in Russia’s educational institutions. “We are ready to share valuable experiences of building a sovereign development model with African partners to achieve self-reliant economic growth based on their own resources and capabilities. Russia aims at creating processing capabilities and localising production, and provides access to advanced technological solutions,” underlined Dovgalenko in her interview with New Eastern Outlook.
For African countries that have endured difficult decades on the path to political independence, it is now important to take full control over the untapped resources, direct income and revenue toward stimulating the national economic sector, rather than paying for the well-being of the Western “golden billion” during this changing geopolitical era, according to Dovgalenko.
According to reports, the forthcoming Russia-Africa summit will have an economic agenda, including the digital economy, technology, artificial intelligence, healthcare, investment, and settlements in global trade. Of course, the agenda will also cover Africa’s political aspects. But if African friends bring along any specific ideas, Russia will give them serious attention. In addition, with continuity and consistency, pay increased attention to expanding ties with Africa’s regional integration associations.
Going forward, the focus will be on translating strong trade relations into deeper investment partnerships, fostering technology collaboration, strengthening industrial linkages and contributing towards the shared objectives set by the leadership of both African countries and Russia. At the third summit, the above-mentioned specific initiatives will be further designed. In this regard, the key document, the new action plan for the next three-year period (2027-2029), is intended to reflect dynamic realities in the future relations of Russia and Africa
