By Kester Kenn Klomegah
Zimbabwe, among a few African countries, featured prominently at this year’s edition of the Russian International Industrial and Trade Fair during the first week of July in Ekaterinburg, a city in the Urals region about 1,700 kilometres from Moscow.
About 76 per cent of exhibitors are top managers of Russian and foreign companies, heads of regions and representatives of federal authorities.
Widely referred to as INNOPROM, it is the main industrial, trade and export platform organized annually in Russia. Due to COVID-19, about 90 countries participated in the trade fair held under the theme Flexible Manufacturing in Ekaterinburg, according to INNOPROM official website.
Industry and Commerce Minister, Dr Sekai Nzenza, headed a sizeable business delegation, including officials from the Confederation of Zimbabwe Industries (CZI), Zimbabwe Investment Development Agency (ZIDA), Zimtrade, the CEO Roundtable, the Zimbabwe National Chamber of Commerce (ZNCC) and the Industrial Development Corporation of Zimbabwe (IDCZ).
Zimbabwe and Russia have an overwhelmingly close diplomatic relationship. Russia has been stepping up economic investment in Zimbabwe. Based on that friendship, Nzenza was invited by Russia’s Minister of Industry and Trade Denis Manturov who was also the fair’s main guest.
Nzenza’s office told Business Weekly that Zimbabwe had fruitful engagements with Russian companies that have expressed interest in the value addition of minerals such as tungsten, lithium and iron.
Russian firms are also keen to explore opportunities in agro-processing, phosphate, fertilizer and medical equipment as well as partnering local institutions in research and development.
There is scope for technology transfer from Russia to help retooling of local companies. Given the distance between the two countries, the perishability of fresh produce has been identified as a major impediment for growing exports to Russia, but the two countries have agreed to “work on that logistical challenge.”
Zimbabwe is currently exporting oranges to Russia and there is potential to increase exports of commodities such as garlic, ginger, macadamia, avocado, frozen fruits and vegetables as well as blueberries. Follow up meetings were held between business organizations in both countries.
She similarly told The Herald newspaper that the main focus participating at INNOPROM “is pushing Zimbabwe is open for business agenda and we are quite encouraged to participate at the fair.”
Russian companies are keen to invest in Zimbabwe’s various industries as the two countries further explore areas of economic cooperation. “The main focus is pushing Zimbabwe is open for business agenda we are quite encouraged to participate at the fair – an opportunity to meet potential Russian investors,” said Nzenza.
As Zimbabwean Ambassador to the Russian Federation, Brigadier General Mike Nicholas Sango, noted in an exclusive interview with me, Russia and Zimbabwe have put in place structures and mechanisms for sustainable economic cooperation. Although Russia’s economy is under pressure from illegal sanctions and the depressed global economic environment, it is committed to assist Zimbabwe’s economic recovery.
He highlighted his government’s key priorities and expectations from Russia as follows:
Agriculture Support: Agriculture is the economic mainstay and provides 15% of GDP. Water harnessing through dam construction, irrigation mechanization, and agricultural machinery are key areas.
Infrastructure Development: Although the country has a fairly well-developed infrastructure, the road and rail infrastructure needs refurbishment and expansion to take trade volumes for the country as well as its neighbours to the north.
Mining: Zimbabwe is endowed with abundant unexploited resources.
Manufacturing: Zimbabwe’s manufacturing sector has been hit hard by illegal economic sanctions. Most industries have outdated and expensive to run machinery. They are in dire need of retooling, refurbishment and funding.
Tourism: Zimbabwe hosts one of the wonders of the world, Victoria Falls. Investment in infrastructure development in the hotels would complement the opening by larger airports to accommodate larger body aircraft.
President Mnangagwa’s administration adopted Zimbabwe is open for business policy meant to woo investors to help revive the economy. In 2019, President Mnangagwa met his Russian counterpart Vladimir Putin where the two leaders agreed to deepen economic cooperation between the two countries. Russia is one of the major sources of the country’s foreign direct investment, particularly in the mining sector.
Zimbabwe is a landlocked country located in Southeast Africa, between the Zambezi and Limpopo Rivers, bordered by South Africa to the south, Botswana to the south-west, Zambia to the north, and Mozambique to the east. The capital and largest city is Harare.
With an approximate population of 14.5 million, Zimbabwe is endowed with rich and extensive natural resources. It is one of the 16 countries, with a collective responsibility to promote socio-economic cooperation, within the Southern African Development Community (SADC) created in 1980.
IITA Laments Poor Budgetary Allocation to Agriculture in Africa
By Adedapo Adesanya
The International Institute of Tropical Agriculture (IITA) has blamed the insufficient budgetary allocation to agriculture as a major impediment in most African countries.
This formed part of the points raised by the Director-General of the agency, Mr Nteranya Sanginga, who added that this had been militating against the development of the sector in the continent.
Mr Sanginga, from the Democratic Republic of Congo (DRC), assumed office in 2011 and is the first African director-general of the 54-year-old international institute.
Speaking in Ibadan, Oyo State at an interactive session, said that except adequate attention was paid to agriculture by African leaders, it might be difficult to attain foof sufficiency in the continent.
He noted that African countries had more than enough resources to attain food sufficiency to rely less on importation, adding that the endemic leadership problems confronting them had been a clog in their wheel of progress.
Mr Sanginga said this had been further compounded by lack of commitment of most African leaders to agricultural development, as reflected in the quantum of resources being allocated to the sector on yearly basis.
Citing the example of his home country, he said that on the average, DRC usually had 1.7 per cent budgetary allocation to agriculture, while in Nigeria, it was not more than two per cent.
“With all the resources available to DRC, the country still imports more than 70 per cent of food items, such as rice, beans and fish as its annual budgetary allocation to agriculture is about 1.7 per cent, while in Nigeria, it is not more than two per cent.
“The situation is also the same in most other African countries. With these, how can we say that African leaders are serious about attaining food security in the continent?” he queried.
The director-general reeled out his achievements in the last 10 years, saying he had been in the saddle, especially in the areas of creation of business incubation platforms, setting up the youth agripreneur programmers, the implementation of ‘Start Them Early Project’ (STEP) and building of food processing units under the IITA leadership.
“One of my most important legacies has been the creation of IITA Youth Agripreneurs (IYA) programme which was aimed at addressing the high rate of unemployment among African youths, with agriculture sitting as a goldmine, waiting for explorers.
“More than 60 per cent of Africa’s estimated 1.2 billion people are under the age of 25 and yet with little job creation.
“Whereas agriculture remains an essential driver of economic development and an area of great opportunities for young people in the continent,” he said.
The IITA chief said that the IYA initiative had now been adopted by many organisations, especially African Development Bank (AfDB) which had been set up in to 24 countries.
He said that this had rekindled the hope of a new generation of African agricultural entrepreneurs who would feed the continent and create wealth and employment.
The director-general pointed out that these achievements, among others, had motivated the Ooni of Ife, Oba Adeyeye Ogunwusi, to honour him with chieftaincy title of Aare Afurugbin Ola of the Source.
The conferment of the chieftaincy title, meaning “Lead Sower of Wealth and Prosperity of the House Oduduwa” will take place at Ile Oodua, Ooni’s palace, Ile-Ife, on December 11.
While expressing appreciation to the royal father for the honour, Sanginga said that this would further fire his passion for the development of agriculture and agribusiness in the African continent.
Malawi, Mozambican Agree to Strengthen Economic Relations
By Kester Kenn Klomegah
Mozambique and Malawi, largely sharing borders, have agreed to forge cooperation in diverse economic sectors and take the advantages offered by the single continental market.
A number of African leaders have started looking at the African Continental Free Trade Area (AfCFTA), as it aspires to connect all regions of Africa, to deepen economic integration and boost intra-African trade and investment. It aspires to create a single market for goods and services across 55 countries and our continent, creating a market of as much as 1.3 billion people with a combined GDP of $3.4 trillion.
On November 22 to 24, President Filipe Jacinto Nyusi of Mozambique went on an official working visit to Blantyre, Malawi. It was to participate in the 5th SADC Industrialization Week in Lilongwe, according to a statement from Malawi’s Ministry of Foreign Affairs.
The first strategy for regional industrialization, he noted at the conference of the Industrialization Week, includes developing synergies linked to value chains, transport corridors, energy, and human potential. It will also involve bringing down barriers at the border to strengthen the economic identity of SADC. According to Nyusi, the impact of this strategy will be amplified through changes to the trade balance as exports are increased and imports substituted.
The second strategy is based on developing technology, employing thousands of people, creating a market to absorb agricultural surpluses from the rural population with a particular focus on women, agro-processing and associated logistics, which, he said, ends up becoming a “powerful weapon” for the well-being of the population and combating poverty.
While still in Malawi during the visit, Malawi President Lazarus Chakwera took his guest counterpart Filipe Nyusi to launch the construction works for the Mozambique-Malawi power transmission interconnection project at Phombeya in Balaka District. The power generation project planned to translate into improved access to electricity supply and ultimately strengthen the industrialization programmes in both countries.
Construction of the interconnection project includes laying transmission lines about 142km from Matambo substation and 76km into Malawi to Phombeya passing through Mwanza and Neno Districts – expected to be completed in 2023.
According to the Integrated Resource Plan of 2017, peak electricity demand will be 1,860MW by 2030 yet currently, Malawi’s installed electricity generation capacity is hovering at 50MW. The objectives of the interconnection project include supporting the economic growth of the region through sustainable power access by integrating the Malawi electricity market to the Southern African Power Pool (SAPP) in order to balance the power deficit through regional power trading.
Phase 1 of the project included a technical and economic feasibility study that was completed in 2017, project definition and scope and environmental and social impact assessment that was completed in 2019.
In his remarks, President Chakwera said like the railway rehabilitation project that the two countries have embarked on to connect Malawi to the Sena Line across the border from Vila Nova de Fronteira to Marka, “this interconnection project is yet another milestone in the linkages between our two nations.” He reminded Nyusi, that during his visit to Songo Province in Mozambique last year, Chakwera was privileged to tour the Cabora Bassa Dam which is the hub of the Southern African Power Pool (SAPP).
“It was at that time that we agreed to hold this joint ceremony launching the construction of the electricity transmission line for Malawi-Mozambique Interconnection. I am, therefore, glad to see this coming to pass as a step in the direction of integrating infrastructure across SADC for sustainable economic development. The project aims at creating avenues for trade in the SAPP, with the prospect of more exchanges of trade and power in the future,” he asserted in remarks.
President Chakwera says Malawi and Mozambique are strategic development partners and there is a need for the two nations to continue exploring economic relations in the areas of trade, transport and mining for the mutual benefit of their people. Both presidents also identified areas of rail transport, energy and mining for developing bilateral partnerships.
With the construction of The Malawi-Mozambique Interconnector, it marches towards the goal of adding 1,000 megawatts to the national grid over the next four years is making steady progress. The project is co-funded by the World Bank- IDA Credit at $15 million; European Union through KFW Grant at $20 million and the Malawi Government at $3.5 million.
Russia Assures Mozambique More Economic Cooperation
By Kester Kenn Klomegah
Russia is ready to support Mozambique in the fight against terrorism through cooperation in the field of intelligence, and further promises strengthening cooperation in various economic sectors, Russian Deputy Minister for Foreign Affairs Mikhail Bogdanov said at the end of a meeting with Prime Minister Carlos Agostinho do Rosário in Maputo.
Bogdanov, who is also Russia’s Special Presidential Representative for the Middle East and Africa, defended the importance of African countries, including Mozambique, launching initiatives on their own real needs for combating the phenomenon in international forums, especially at the level of the United Nations.
In the context of anti-terrorist cooperation between Moscow and the African continent, the Russian diplomat said it was important for Africans to help the world understand their efforts in this fight. Russia and Mozambique have consistently maintained that all problems, conflicts and crises, unfortunately, still remain on this continent, and should be resolved based on the approaches of Africans themselves, and of course with moral, political and material support from the UN and the UN Security Council.
Bogdanov considered the situation in Cabo Delgado a serious issue, which is why his country was offering to help address it. It is worth noting that during an earlier high-level visit to Maputo by Russian Foreign Minister Sergey Lavrov, it was announced that Russia would increase counter-terrorism cooperation with Mozambique. Since then, no reports have been made available publicly about concrete contributions in fighting terrorism in Mozambique.
Mozambique has been grappling with an insurgency in its northernmost province of Cabo Delgado since 2017, but currently improving after the deployment of a joint military force with the primary responsibility of ensuring peace and stability, and restoring normalcy in Mozambique.
Bogdanov also met Minister of Foreign Affairs and Cooperation, Verónica Macamo Dhlovo, with terrorism again dominating the conversation between the two. Themes related to bilateral cooperation in the areas of economy and trade, the humanitarian sphere and others of mutual interest were discussed. During tropical cyclone Idai in April 2019, Russia helped by sending humanitarian supplies to Zimbabwe, Malawi and Mozambique.
Mikhail Bogdanov said that Russia places special emphasis on relations with countries on the African continent, highlighted the holding, in October 2019, of the first Russia-Africa Summit, at which Mozambique was represented by President Filipe Nyusi.
“Preparations are now underway for the second [Russia-Africa] summit, which will take place in 2022, and we would be grateful if Mozambique were represented at the highest possible level,” Bogdanov said.
Russia has had economic cooperation with Mozambique. There is an increasing interest of the Russian business community in building partnerships with Mozambique, which matches Maputo’s intention to attract Russian investment and technical assistance. Until recently, reports on the “hidden debts” scandal amounted to a $2 billion loan scam involving two banks, Credit Suisse and Russia’s VTB bank. The secrecy and corruption surrounding the loans dealt devastating blows to Mozambique’s credibility and reputation.
It was the Wall Street Journal that first revealed the hidden debt in April 2016. By U.S. court ruling, the Russian bank VTB agreed to pay more than US$6 million to settle the US Securities and Exchange Commission (SEC).
In 2015, Rosneft was awarded three licenses to extract natural gas near the Rovuma basin, in partnership with Exxon Mobil. The plan is to create a consortium with the participation of a Mozambican company, Rosneft and ExxonMobil to develop offshore hydrocarbon fields near Mozambique. Besides that, Inter RAO-Export and EdM (Mozambique) also signed a memorandum of understanding in power generation.
Back in August 2019, when President of Mozambique Filipe Nyusi held talks with Russian President Vladimir Putin, both agreed on deepening economic cooperation especially in energy, oil and gas exploration, and the development of Russian-Mozambican cooperation in various other mutually viable sectors. A series of bilateral agreements to boost that expected cooperation were signed between the two countries.
With an approximate population of 30 million, Mozambique is endowed with rich and extensive natural resources but remains one of the poorest and most underdeveloped countries in the world.
Like Our Facebook Page
Latest News on Business Post
- African Alliance Plots Strategy to Gain Substantial Market Share November 28, 2021
- Money, Society, Development and Economics November 28, 2021
- FIRS Advocates Partnerships for Better Tax Administration November 28, 2021
- Zamfara to Restore Telecoms Services November 29 November 28, 2021
- #EndSARS: SERAP Seeks Court’s Help to Arrest Security Operatives November 28, 2021
- FG Lifts Suspension on Emirates Airlines November 28, 2021
- Airtel Africa, 17 Others Lift Stock Exchange by 0.46% November 27, 2021
- Naira Closes Week Flat as Cryptocurrencies Suffer Heavy Loss November 27, 2021
- Unlisted Stocks Trade Flat Friday Amid Low Investor Appetite November 27, 2021
- Oil Prices Crash as New COVID Variant Sparks Fears November 27, 2021
Feature/OPED2 years ago
Davos was Different this year
Economy5 years ago
Kwara Disburses N1.7b For Projects
Travel/Tourism5 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
Technology12 months ago
How To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Economy5 years ago
How To Identify Fake Naira Notes
Banking3 years ago
Sort Codes of GTBank Branches in Nigeria
Economy4 years ago
FAAC: FG, States, LGs Share N655.18b in January
Economy4 years ago
NSE Market Capitalisation Sheds N76b as Sell‐offs Persist