Sunday, September 29, 2019

All Eyes on Africa? -- After China here comes Russia !!







Sino-Africa relations have grown substantially over the last two decades, with China providing billions of dollars in loans, grants, and development financing to a number of the continent’s 55 nations. The country has financed large-scale infrastructural projects such as railways in countries like Kenya, factories in Lesotho and Namibia, and free trade zones. It also helped Ethiopia launch its first satellite. China is also exercising major moves as a global military power on the continent, opening up a key military base in Djibouti and deploying peacekeepers in South Sudan, Mali, and the Democratic Republic of Congo. Plus, there’s the training and education opportunities it’s providing thousands of African leaders, bureaucrats, students, and business people. Russia has also followed this approach in recent years, signing agreements to establish economic zones in Eritrea, exploring opportunities in accessing minerals across southern Africa, and enhancing military and technical cooperation with nations like the Central African Republic. US officials have grown increasingly worried about what these expansions could mean for their long-term interests in the continent. With its America First mantra, the Trump administration was also initially skeptical of Africa’s place in US foreign policy. Yet to gain leverage over China in Africa, Trump bolstered development via a new agency to $60 billion this year. Trump also named veteran diplomat Tibor Nagy, who has extensive experience working in Africa, to lead the State Department’s strategy there. Fears that Washington is increasingly losing influence across the globe are starting to come to fruition in Africa, where a top military official says Russia is playing on perceived U.S. weaknesses to gain leverage and resources. The most alarming inroads have come in African countries where leaders are seeking to consolidate power. Russia seems to have its sights set on areas that could give them an edge over U.S. allies. Russian interests gain access to natural resources on favorable terms,The Chinese bring the money and the Russians bring the muscle . The West is not very much loved by many african countries. And many (see) Russia as the country that will oppose the West . Amid deteriorating relations with western countries, a diplomatic campaign to win new friends and partners in Africa is at the forefront of a sweeping foreign policy pivot by Moscow, as it seeks fresh alliances to bolster its global geopolitical clout. From Algeria to Uganda, Russia is building influence in Africa, lending support to embattled strongmen, taking on natural resource projects in conflict-racked states and positioning itself as a new powerbroker without the baggage of former colonial powers. In recent years, many African countries not embroiled in ongoing internal conflicts have picked up the pace of economic development, witnessing growth levels impressive even for developing states. Their success has already attracted some foreign investors, but so far Russia has not been at the top of this list. African countries have been showing astonishing economic results, with some countries reaching GDP growth levels of 7% per year. According to predictions by the International Monetary Fund (IMF), Ghana could become a 2019 leader in this regard, with expected growth of 8.8%, while the Ivory Coast and Ethiopia could see 7.5% and 7.7% growth respectively. Their growth comes from different sources. Some countries have simply discovered rich natural resource deposits, as has apparently been the case with Ghana's oil fields. Others are receiving dividends from the development of their telecom and financial sectors, as is the case with Senegal. Their rapidly growing economies have already allowed these countries to attract foreign investors and boost economic cooperation with states like China, India, South Korea, and others. Russia is among these countries, but is far from being at the top of the list. At the moment, Russia has its greatest trade ties with Egypt (around $7.6 billion in 2018, which is a 14% increase compared to the previous year) and Algeria (around $5.4 billion in 2018, almost a 17% increase since 2017). Russia’s overall trade with African states amounts to around $19.6 billion. Apart from these two countries, Russia has been developing trade ties with other players on the continent. Bilateral trade with South Africa and Mozambique has risen over the past three years by 28% and 32% respectively, while trade with Togo skyrocketed by 713% in the first half of 2019 in comparison to the same period in 2018. Trade with Sudan, Tunisia, Morocco, Nigeria, and Tanzania has also been generally growing lately, although not as steadily as with others. Senegal, a rapidly developing African economy, has a modest level of trade with Russia, but is currently seeking to change this situation. Senegalese President Macky Sall expressed interest in boosting bilateral trade during a meeting with Vladimir Putin in 2018. Although a significant portion of Russian exports to these countries consists of resources, fertilisers, and agricultural products, the country also sells equipment and provides services in the medical and educational spheres. Russian companies also participate in various infrastructural projects in several states. Namely, Rosatom is building a nuclear power plant in Algeria, while Senegal has invited Russian gas giant Gazprom to participate in the development of a recently discovered offshore gas field. As African countries continue to develop, their needs for foreign services, expertise, and equipment are expected to grow, thus giving Moscow an opportunity to expand its economic cooperation with the continent, which currently constitutes only to a minor part of Russia's foreign trade.





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“Control oil and you control nations; control food and you control the people.” Henry Kissinger


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