Geo-Economics
Pawns and Kings: Deconstructing Japan-Russia relations in Africa
Sep 27, 2023
Sally Boyani
0:00/1:34
There is a growing demand for summits between Africa and select global powers. These summits often resemble a "summoning" rather than egalitarian partnerships aimed at bolstering sustainable economic development.
Collins dictionary defines ‘summon’ as a verb: if you “summon” someone, you order them to come to you. Particularly, Japan and Russia are the latest powers to blatantly express their interest in gaining geo-economic and geo-political influence in the continent. It is the strategies and approaches they employ that are marred with deficiencies. These frequent “summons’ have become daunting to the political dignity of African states and especially, its heads. Russia and Japan, one a stagnated economic power and the other the world’s third biggest economy, are involved in a charm offensive. They are joining the economic power struggle between the global north and China for Africa. Most analysts embody this relationship as the new scramble for Africa. Except, in this neo-dynamic, Africa is seemingly rebelling.
The global north and China underestimate Africa's economic potential, despite increased interest in political, diplomatic, and economic partnerships. Unfortunately, for Africa, bilateral agreements often end up in the trenches of aid. A historic maneuver used to intimidate Africa’s negotiating power. Just last year, Japan pledged $30 billion in African “aid” and an additional $500 million this year for ‘peace and stability’, while the trending headline after the Russia-Africa International Parliamentary Conference was the “Moscow forgives Africa’s $20 billion debt”—a debt mostly accrued during the Soviet Union—and that Russia will be offering scholarships and food assistance.
As of yet, there is a yawning trade imbalance between Russia and Africa. In 2020, Africa imported goods worth $8.5 billion from Russia while Russia only imported goods worth $1.4 billion from various African countries—representing 0.4% of the continent's total export trade. The deficit is a whopping $7.1 billion. There is an imbalance in how the world does business with Africa, such that Africa buys more and the trading partners buy less. The top 10 leading partners in Africa trade according to export and imports volume are: China, US, France, India, Germany, Spain, Italy, UAE, Netherlands, UK.
The power dynamic of these relations is conspicuous or thereof the reverse psychology of it, that Africa is needy. Without the reverse, the world needs Africa. The African Development Bank biannual report says “Africa is set to outperform the rest of the world in economic growth over the next two years, with real gross domestic product (GDP) averaging around 4 percent in 2023 and 2024.” Africa's pre-Covid-19 top five performing economies are forecasted to achieve an average growth of over 5.5 percent in 2023-2024, allowing them to regain their position among the world's top 10 fastest-growing economies. These countries include Rwanda (7.9%), Côte d'Ivoire (7.1%), Benin (6.4%), Ethiopia (6.0%), and Tanzania (5.6%).
Russia’s Geo-economic and Political Interests.
Russia's engagement with Africa undermines the global north's efforts to isolate Russia. Russia is also accusing the U.S. of sabotaging its relationship with Africa. Its Foreign Minister Sergei Lavrov told Reuters that the U.S. is trying to wreck Russia's planned summit with African countries as part of efforts to isolate Moscow. The U.S. replied that it "(doesn't) want to limit African partnerships with other countries. We want to give African countries choices." Such inference feeds into the idea that Africa needs permission, such that ‘it’s not up to Africa, the choice is given’. For instance, Formula 1 has shelved plans to restore the South African Grand Prix that was to be held this year at the Kyalami following accusations from the U.S. ambassador to South Africa that South Africa supplied arms to Russia. Can this not be be interpreted as a subtle or informal sanction? The U.S. is the leading global supplier of arms and its history of supplying arms to warring countries is hardly exculpable. It’s not about idealism or a utopia of morality. This is about power.
Moscow is still planning its second summit with African states at the end of July 2023, in Russia’s second largest city of Saint Petersburg, but the enthusiasm among African heads is lacking. Kenya’s president, Dr. William, expressed during a Mo Ibrahim Governance Conversation that the “summons’’ are not as strategic for Africa as they are for the west. He said, "We have made the decision that it is not intelligent for 54 of us [African Presidents] to go and sit before one gentleman [President] from another place[country], like Africa-Russia and Africa-Japan [summits].”
This is especially underwhelming when monetary talks that position strategic growth for Africa are not prioritized. The first Africa-Russia summit was in 2019 and 43 African states attended, a year later, Russia surpassed China as Africa’s biggest arms supplier. This is according to the Stockholm International Peace Research Institute (SIPRI), a renowned global arms trade monitor. Russia supplied 26% of artillery imported by sub-Saharan African states, which is an increase from 21% in 2017 to 26% in the five-year period leading up to 2022.
Africa is yet to symmetrically benefit from a Russia-Africa partnership. Interestingly, Russia’s economic investments in Africa are barely adequate. Russia invested less than 1 percent of the foreign direct investment (FDI) going to the continent. This shows Russia’s limited economic commitment to Africa, as would be demonstrated by capital investments involving a long-term return. Moscow has boldly expressed plans to expand in Africa but the actions are simple gestures at best. For instance, Russia is set to start teaching Swahili and Amharic in 4 schools in Russia in September 2023. It will be hard to compete with economic powers in the continent as Russia’s market share in the continent is minutiae compared to China’s even Japan’s.
Africa’s Position.
African leaders should prioritize negotiating equitable deals during these “summons”, instead of relying on aid or debt forgiveness. Historically, there has been a significant financial inequality between developed and least developed markets. This disparity hampers the ability of the latter to invest in global issues like climate change and the digital economy. Least developed markets face higher interest rates (5-8%) compared to developed states (1%) due to the power dynamics at play. Leading markets can borrow in their own currencies, while least developed markets lack the flexibility to implement macroeconomic policies, leaving them vulnerable to foreign exchange rate fluctuations.
Africa needs a financial system that doesn’t crutch it. There has been speculation and the proposition of de-dollarization. Kenya’s president has proposed the adoption of a common currency for intra-African trade during the 22nd Summit of the Common Market for Eastern and Southern Africa Heads of State and Governments. Ruto said trade cannot take place without efficient and unified payment systems. The (BRICS) Brazil, Russia, India, China and South Africa have also proposed adopting a common currency for intra-trade. The hypothetical currencies are very appealing especially during intra-trade transactions among African states and between the BRICS. Least developed markets are drowning in debts and a bearable currency might be the corrective measure.
Africa’s Alliances.
When push comes to shove, African states still remain divided on who is the most strategic alliance from the hegemony, the U.S., to other states like China, Russia and Japan. They seem to be welcoming to anyone with a seemingly relevant agenda. For instance, only 26 African states voted in favour of the UN’s resolution to condemn Russia’s invasion of Ukraine. 17 states abstained from the UN General Assembly vote, declaring themselves neutral*. Most of those were countries have close ties with Russia and perhaps their neutrality is informed by the discourses around strategic partnerships during war.
Eritrea was the only African state that boldly voted for Russia—the country has a tiny GDP of $2.67 billion and barely has any geo-political mettle but clearly harbours a somewhat vendetta against the global north. That vote was the first time it was given a sling and Eritrea said No. It was strategically expected that Belarus, North Korea, Syria, Mali and Nicaragua would vote for Russia. For the other states that abstained, they chose not to say Yes, because when the chips are down, they would have voted No.
It can also be alluded that some of the African countries that abstained seem to be in a hostage allegiance or victim loyalty with Russia. For instance, some African countries, like the Central African Republic and Mali, have strong ties with Russia as they provide weapons, guards, military training, and have even granted Russian companies mining licenses. Human rights groups are concerned about Russian activities in these countries, pointing to a four-day massacre in the village of Moura which lead to the deaths of 300 civilians, linked to the private military company Wagner. Compared to Japan, Russia is more centred on arms dealing. Russia exports grains, arms, extractives and nuclear power to Africa. This engagement is mostly with four countries: Egypt, Algeria, Morocco and South Africa.
Japan’s Geo-economic Interests.
Due to Japan’s recent active economic relations in the continent, Japan's net Foreign Direct Investment (FDI) in Africa has the potential to bounce back to pre-Covid-19 levels. In 2019, Japan's FDI reached $10 billion, compared to the reduced amount of $6 billion in 2021.
Some of the main Japanese companies operating in Africa and investing in different technologies are: Toshiba Energy Systems & Solutions Corporation invests in thermal and hydro power projects across 10 countries. Hitachi Energy focuses on renewable power generation, including hydrogen, and operates in over 20 countries. Kawasaki Heavy Industries manufactures motorcycles, aerospace and defense equipment, robots, and gas turbines. There is also, Tsubame BHB Co., Ltd., a startup producing green ammonia fertilizer for small-scale farmers in Africa. NEC Corporation has been operating in Africa since 1963, delivering technology solutions such as national ID systems and telecommunication infrastructure.
Other Japan’s MNCs operating in the continents are Mitsui & Co., Ltd., a major investor in Africa, with offices in Ghana, Kenya, Morocco, Mozambique, and South Africa, Toyota Tsusho Corporation operating in all 54 African countries, Mitsubishi Corporation is present in 11 African countries and Sumitomo Corporation. In 2022, Japan's exports to Africa were led by Liberia, with a total value of over $3.18 billion USD. South Africa ranked second as a significant trade partner, primarily exporting transport equipment and general machinery. As for Africa exporting, South Africa was the leading exporter of goods to Japan from Africa, with a value of approximately $11.9 billion USD. Japan mainly imported manufactured goods and metals from South Africa, while major imports from Nigeria and Algeria included mineral fuels and petroleum.
China is currently the largest investor in Africa, while Japan poses a formidable geopolitical rival with a focus on soft power, aid, and private sector investments. In 2021, Japan exported $2.6 billion worth of goods to South Africa, primarily cars, while South Africa exported $8.36 billion worth of goods to Japan, including platinum, iron ore, and cars. Over the past 26 years, South Africa's exports to Japan have grown at an annualized rate of 4.69%. In March 2023, Japan's exports to South Africa decreased from $203.9 million to $192.3 million, resulting in a negative trade balance of $452 million for Japan.
Comparatively, China and South Africa’s trade are almost at par and exceedingly more. China exported goods worth $20.5 billion to South Africa, top product being broadcast equipment at $1.05 billion. South Africa exported goods worth $20.6 billion with Gold as its top product cashing in $5.05 billion. Just in April 2023, In April 2023, China sold $2.43 billion worth of goods to South Africa and bought $2.26 billion worth of goods from South Africa. This resulted in a positive trade balance of $178 million for China.
In conclusion, Africa has the potential to emerge as a significant global economic player especially with the immense potential of the African Continental Free Trade Area. Unfortunately, Africa remains appealing to global powers because of its affinity to dependency. African leaders, like the rest of the world, should subscribe to the school of realism as it dictates that states are primary actors in an international system, and their behaviour is driven by self-interest and a pursuit of power. According to this theory, we [Africans] should prioritize our own survival, security, and economic well-being above all else. African leaders should assert sovereignty, say no to aid , and demand equitable terms during negotiations that prioritize agreements which foster financial parity and sustainable development.
There is a growing demand for summits between Africa and select global powers. These summits often resemble a "summoning" rather than egalitarian partnerships aimed at bolstering sustainable economic development.
Collins dictionary defines ‘summon’ as a verb: if you “summon” someone, you order them to come to you. Particularly, Japan and Russia are the latest powers to blatantly express their interest in gaining geo-economic and geo-political influence in the continent. It is the strategies and approaches they employ that are marred with deficiencies. These frequent “summons’ have become daunting to the political dignity of African states and especially, its heads. Russia and Japan, one a stagnated economic power and the other the world’s third biggest economy, are involved in a charm offensive. They are joining the economic power struggle between the global north and China for Africa. Most analysts embody this relationship as the new scramble for Africa. Except, in this neo-dynamic, Africa is seemingly rebelling.
The global north and China underestimate Africa's economic potential, despite increased interest in political, diplomatic, and economic partnerships. Unfortunately, for Africa, bilateral agreements often end up in the trenches of aid. A historic maneuver used to intimidate Africa’s negotiating power. Just last year, Japan pledged $30 billion in African “aid” and an additional $500 million this year for ‘peace and stability’, while the trending headline after the Russia-Africa International Parliamentary Conference was the “Moscow forgives Africa’s $20 billion debt”—a debt mostly accrued during the Soviet Union—and that Russia will be offering scholarships and food assistance.
As of yet, there is a yawning trade imbalance between Russia and Africa. In 2020, Africa imported goods worth $8.5 billion from Russia while Russia only imported goods worth $1.4 billion from various African countries—representing 0.4% of the continent's total export trade. The deficit is a whopping $7.1 billion. There is an imbalance in how the world does business with Africa, such that Africa buys more and the trading partners buy less. The top 10 leading partners in Africa trade according to export and imports volume are: China, US, France, India, Germany, Spain, Italy, UAE, Netherlands, UK.
The power dynamic of these relations is conspicuous or thereof the reverse psychology of it, that Africa is needy. Without the reverse, the world needs Africa. The African Development Bank biannual report says “Africa is set to outperform the rest of the world in economic growth over the next two years, with real gross domestic product (GDP) averaging around 4 percent in 2023 and 2024.” Africa's pre-Covid-19 top five performing economies are forecasted to achieve an average growth of over 5.5 percent in 2023-2024, allowing them to regain their position among the world's top 10 fastest-growing economies. These countries include Rwanda (7.9%), Côte d'Ivoire (7.1%), Benin (6.4%), Ethiopia (6.0%), and Tanzania (5.6%).
Russia’s Geo-economic and Political Interests.
Russia's engagement with Africa undermines the global north's efforts to isolate Russia. Russia is also accusing the U.S. of sabotaging its relationship with Africa. Its Foreign Minister Sergei Lavrov told Reuters that the U.S. is trying to wreck Russia's planned summit with African countries as part of efforts to isolate Moscow. The U.S. replied that it "(doesn't) want to limit African partnerships with other countries. We want to give African countries choices." Such inference feeds into the idea that Africa needs permission, such that ‘it’s not up to Africa, the choice is given’. For instance, Formula 1 has shelved plans to restore the South African Grand Prix that was to be held this year at the Kyalami following accusations from the U.S. ambassador to South Africa that South Africa supplied arms to Russia. Can this not be be interpreted as a subtle or informal sanction? The U.S. is the leading global supplier of arms and its history of supplying arms to warring countries is hardly exculpable. It’s not about idealism or a utopia of morality. This is about power.
Moscow is still planning its second summit with African states at the end of July 2023, in Russia’s second largest city of Saint Petersburg, but the enthusiasm among African heads is lacking. Kenya’s president, Dr. William, expressed during a Mo Ibrahim Governance Conversation that the “summons’’ are not as strategic for Africa as they are for the west. He said, "We have made the decision that it is not intelligent for 54 of us [African Presidents] to go and sit before one gentleman [President] from another place[country], like Africa-Russia and Africa-Japan [summits].”
This is especially underwhelming when monetary talks that position strategic growth for Africa are not prioritized. The first Africa-Russia summit was in 2019 and 43 African states attended, a year later, Russia surpassed China as Africa’s biggest arms supplier. This is according to the Stockholm International Peace Research Institute (SIPRI), a renowned global arms trade monitor. Russia supplied 26% of artillery imported by sub-Saharan African states, which is an increase from 21% in 2017 to 26% in the five-year period leading up to 2022.
Africa is yet to symmetrically benefit from a Russia-Africa partnership. Interestingly, Russia’s economic investments in Africa are barely adequate. Russia invested less than 1 percent of the foreign direct investment (FDI) going to the continent. This shows Russia’s limited economic commitment to Africa, as would be demonstrated by capital investments involving a long-term return. Moscow has boldly expressed plans to expand in Africa but the actions are simple gestures at best. For instance, Russia is set to start teaching Swahili and Amharic in 4 schools in Russia in September 2023. It will be hard to compete with economic powers in the continent as Russia’s market share in the continent is minutiae compared to China’s even Japan’s.
Africa’s Position.
African leaders should prioritize negotiating equitable deals during these “summons”, instead of relying on aid or debt forgiveness. Historically, there has been a significant financial inequality between developed and least developed markets. This disparity hampers the ability of the latter to invest in global issues like climate change and the digital economy. Least developed markets face higher interest rates (5-8%) compared to developed states (1%) due to the power dynamics at play. Leading markets can borrow in their own currencies, while least developed markets lack the flexibility to implement macroeconomic policies, leaving them vulnerable to foreign exchange rate fluctuations.
Africa needs a financial system that doesn’t crutch it. There has been speculation and the proposition of de-dollarization. Kenya’s president has proposed the adoption of a common currency for intra-African trade during the 22nd Summit of the Common Market for Eastern and Southern Africa Heads of State and Governments. Ruto said trade cannot take place without efficient and unified payment systems. The (BRICS) Brazil, Russia, India, China and South Africa have also proposed adopting a common currency for intra-trade. The hypothetical currencies are very appealing especially during intra-trade transactions among African states and between the BRICS. Least developed markets are drowning in debts and a bearable currency might be the corrective measure.
Africa’s Alliances.
When push comes to shove, African states still remain divided on who is the most strategic alliance from the hegemony, the U.S., to other states like China, Russia and Japan. They seem to be welcoming to anyone with a seemingly relevant agenda. For instance, only 26 African states voted in favour of the UN’s resolution to condemn Russia’s invasion of Ukraine. 17 states abstained from the UN General Assembly vote, declaring themselves neutral*. Most of those were countries have close ties with Russia and perhaps their neutrality is informed by the discourses around strategic partnerships during war.
Eritrea was the only African state that boldly voted for Russia—the country has a tiny GDP of $2.67 billion and barely has any geo-political mettle but clearly harbours a somewhat vendetta against the global north. That vote was the first time it was given a sling and Eritrea said No. It was strategically expected that Belarus, North Korea, Syria, Mali and Nicaragua would vote for Russia. For the other states that abstained, they chose not to say Yes, because when the chips are down, they would have voted No.
It can also be alluded that some of the African countries that abstained seem to be in a hostage allegiance or victim loyalty with Russia. For instance, some African countries, like the Central African Republic and Mali, have strong ties with Russia as they provide weapons, guards, military training, and have even granted Russian companies mining licenses. Human rights groups are concerned about Russian activities in these countries, pointing to a four-day massacre in the village of Moura which lead to the deaths of 300 civilians, linked to the private military company Wagner. Compared to Japan, Russia is more centred on arms dealing. Russia exports grains, arms, extractives and nuclear power to Africa. This engagement is mostly with four countries: Egypt, Algeria, Morocco and South Africa.
Japan’s Geo-economic Interests.
Due to Japan’s recent active economic relations in the continent, Japan's net Foreign Direct Investment (FDI) in Africa has the potential to bounce back to pre-Covid-19 levels. In 2019, Japan's FDI reached $10 billion, compared to the reduced amount of $6 billion in 2021.
Some of the main Japanese companies operating in Africa and investing in different technologies are: Toshiba Energy Systems & Solutions Corporation invests in thermal and hydro power projects across 10 countries. Hitachi Energy focuses on renewable power generation, including hydrogen, and operates in over 20 countries. Kawasaki Heavy Industries manufactures motorcycles, aerospace and defense equipment, robots, and gas turbines. There is also, Tsubame BHB Co., Ltd., a startup producing green ammonia fertilizer for small-scale farmers in Africa. NEC Corporation has been operating in Africa since 1963, delivering technology solutions such as national ID systems and telecommunication infrastructure.
Other Japan’s MNCs operating in the continents are Mitsui & Co., Ltd., a major investor in Africa, with offices in Ghana, Kenya, Morocco, Mozambique, and South Africa, Toyota Tsusho Corporation operating in all 54 African countries, Mitsubishi Corporation is present in 11 African countries and Sumitomo Corporation. In 2022, Japan's exports to Africa were led by Liberia, with a total value of over $3.18 billion USD. South Africa ranked second as a significant trade partner, primarily exporting transport equipment and general machinery. As for Africa exporting, South Africa was the leading exporter of goods to Japan from Africa, with a value of approximately $11.9 billion USD. Japan mainly imported manufactured goods and metals from South Africa, while major imports from Nigeria and Algeria included mineral fuels and petroleum.
China is currently the largest investor in Africa, while Japan poses a formidable geopolitical rival with a focus on soft power, aid, and private sector investments. In 2021, Japan exported $2.6 billion worth of goods to South Africa, primarily cars, while South Africa exported $8.36 billion worth of goods to Japan, including platinum, iron ore, and cars. Over the past 26 years, South Africa's exports to Japan have grown at an annualized rate of 4.69%. In March 2023, Japan's exports to South Africa decreased from $203.9 million to $192.3 million, resulting in a negative trade balance of $452 million for Japan.
Comparatively, China and South Africa’s trade are almost at par and exceedingly more. China exported goods worth $20.5 billion to South Africa, top product being broadcast equipment at $1.05 billion. South Africa exported goods worth $20.6 billion with Gold as its top product cashing in $5.05 billion. Just in April 2023, In April 2023, China sold $2.43 billion worth of goods to South Africa and bought $2.26 billion worth of goods from South Africa. This resulted in a positive trade balance of $178 million for China.
In conclusion, Africa has the potential to emerge as a significant global economic player especially with the immense potential of the African Continental Free Trade Area. Unfortunately, Africa remains appealing to global powers because of its affinity to dependency. African leaders, like the rest of the world, should subscribe to the school of realism as it dictates that states are primary actors in an international system, and their behaviour is driven by self-interest and a pursuit of power. According to this theory, we [Africans] should prioritize our own survival, security, and economic well-being above all else. African leaders should assert sovereignty, say no to aid , and demand equitable terms during negotiations that prioritize agreements which foster financial parity and sustainable development.
There is a growing demand for summits between Africa and select global powers. These summits often resemble a "summoning" rather than egalitarian partnerships aimed at bolstering sustainable economic development.
Collins dictionary defines ‘summon’ as a verb: if you “summon” someone, you order them to come to you. Particularly, Japan and Russia are the latest powers to blatantly express their interest in gaining geo-economic and geo-political influence in the continent. It is the strategies and approaches they employ that are marred with deficiencies. These frequent “summons’ have become daunting to the political dignity of African states and especially, its heads. Russia and Japan, one a stagnated economic power and the other the world’s third biggest economy, are involved in a charm offensive. They are joining the economic power struggle between the global north and China for Africa. Most analysts embody this relationship as the new scramble for Africa. Except, in this neo-dynamic, Africa is seemingly rebelling.
The global north and China underestimate Africa's economic potential, despite increased interest in political, diplomatic, and economic partnerships. Unfortunately, for Africa, bilateral agreements often end up in the trenches of aid. A historic maneuver used to intimidate Africa’s negotiating power. Just last year, Japan pledged $30 billion in African “aid” and an additional $500 million this year for ‘peace and stability’, while the trending headline after the Russia-Africa International Parliamentary Conference was the “Moscow forgives Africa’s $20 billion debt”—a debt mostly accrued during the Soviet Union—and that Russia will be offering scholarships and food assistance.
As of yet, there is a yawning trade imbalance between Russia and Africa. In 2020, Africa imported goods worth $8.5 billion from Russia while Russia only imported goods worth $1.4 billion from various African countries—representing 0.4% of the continent's total export trade. The deficit is a whopping $7.1 billion. There is an imbalance in how the world does business with Africa, such that Africa buys more and the trading partners buy less. The top 10 leading partners in Africa trade according to export and imports volume are: China, US, France, India, Germany, Spain, Italy, UAE, Netherlands, UK.
The power dynamic of these relations is conspicuous or thereof the reverse psychology of it, that Africa is needy. Without the reverse, the world needs Africa. The African Development Bank biannual report says “Africa is set to outperform the rest of the world in economic growth over the next two years, with real gross domestic product (GDP) averaging around 4 percent in 2023 and 2024.” Africa's pre-Covid-19 top five performing economies are forecasted to achieve an average growth of over 5.5 percent in 2023-2024, allowing them to regain their position among the world's top 10 fastest-growing economies. These countries include Rwanda (7.9%), Côte d'Ivoire (7.1%), Benin (6.4%), Ethiopia (6.0%), and Tanzania (5.6%).
Russia’s Geo-economic and Political Interests.
Russia's engagement with Africa undermines the global north's efforts to isolate Russia. Russia is also accusing the U.S. of sabotaging its relationship with Africa. Its Foreign Minister Sergei Lavrov told Reuters that the U.S. is trying to wreck Russia's planned summit with African countries as part of efforts to isolate Moscow. The U.S. replied that it "(doesn't) want to limit African partnerships with other countries. We want to give African countries choices." Such inference feeds into the idea that Africa needs permission, such that ‘it’s not up to Africa, the choice is given’. For instance, Formula 1 has shelved plans to restore the South African Grand Prix that was to be held this year at the Kyalami following accusations from the U.S. ambassador to South Africa that South Africa supplied arms to Russia. Can this not be be interpreted as a subtle or informal sanction? The U.S. is the leading global supplier of arms and its history of supplying arms to warring countries is hardly exculpable. It’s not about idealism or a utopia of morality. This is about power.
Moscow is still planning its second summit with African states at the end of July 2023, in Russia’s second largest city of Saint Petersburg, but the enthusiasm among African heads is lacking. Kenya’s president, Dr. William, expressed during a Mo Ibrahim Governance Conversation that the “summons’’ are not as strategic for Africa as they are for the west. He said, "We have made the decision that it is not intelligent for 54 of us [African Presidents] to go and sit before one gentleman [President] from another place[country], like Africa-Russia and Africa-Japan [summits].”
This is especially underwhelming when monetary talks that position strategic growth for Africa are not prioritized. The first Africa-Russia summit was in 2019 and 43 African states attended, a year later, Russia surpassed China as Africa’s biggest arms supplier. This is according to the Stockholm International Peace Research Institute (SIPRI), a renowned global arms trade monitor. Russia supplied 26% of artillery imported by sub-Saharan African states, which is an increase from 21% in 2017 to 26% in the five-year period leading up to 2022.
Africa is yet to symmetrically benefit from a Russia-Africa partnership. Interestingly, Russia’s economic investments in Africa are barely adequate. Russia invested less than 1 percent of the foreign direct investment (FDI) going to the continent. This shows Russia’s limited economic commitment to Africa, as would be demonstrated by capital investments involving a long-term return. Moscow has boldly expressed plans to expand in Africa but the actions are simple gestures at best. For instance, Russia is set to start teaching Swahili and Amharic in 4 schools in Russia in September 2023. It will be hard to compete with economic powers in the continent as Russia’s market share in the continent is minutiae compared to China’s even Japan’s.
Africa’s Position.
African leaders should prioritize negotiating equitable deals during these “summons”, instead of relying on aid or debt forgiveness. Historically, there has been a significant financial inequality between developed and least developed markets. This disparity hampers the ability of the latter to invest in global issues like climate change and the digital economy. Least developed markets face higher interest rates (5-8%) compared to developed states (1%) due to the power dynamics at play. Leading markets can borrow in their own currencies, while least developed markets lack the flexibility to implement macroeconomic policies, leaving them vulnerable to foreign exchange rate fluctuations.
Africa needs a financial system that doesn’t crutch it. There has been speculation and the proposition of de-dollarization. Kenya’s president has proposed the adoption of a common currency for intra-African trade during the 22nd Summit of the Common Market for Eastern and Southern Africa Heads of State and Governments. Ruto said trade cannot take place without efficient and unified payment systems. The (BRICS) Brazil, Russia, India, China and South Africa have also proposed adopting a common currency for intra-trade. The hypothetical currencies are very appealing especially during intra-trade transactions among African states and between the BRICS. Least developed markets are drowning in debts and a bearable currency might be the corrective measure.
Africa’s Alliances.
When push comes to shove, African states still remain divided on who is the most strategic alliance from the hegemony, the U.S., to other states like China, Russia and Japan. They seem to be welcoming to anyone with a seemingly relevant agenda. For instance, only 26 African states voted in favour of the UN’s resolution to condemn Russia’s invasion of Ukraine. 17 states abstained from the UN General Assembly vote, declaring themselves neutral*. Most of those were countries have close ties with Russia and perhaps their neutrality is informed by the discourses around strategic partnerships during war.
Eritrea was the only African state that boldly voted for Russia—the country has a tiny GDP of $2.67 billion and barely has any geo-political mettle but clearly harbours a somewhat vendetta against the global north. That vote was the first time it was given a sling and Eritrea said No. It was strategically expected that Belarus, North Korea, Syria, Mali and Nicaragua would vote for Russia. For the other states that abstained, they chose not to say Yes, because when the chips are down, they would have voted No.
It can also be alluded that some of the African countries that abstained seem to be in a hostage allegiance or victim loyalty with Russia. For instance, some African countries, like the Central African Republic and Mali, have strong ties with Russia as they provide weapons, guards, military training, and have even granted Russian companies mining licenses. Human rights groups are concerned about Russian activities in these countries, pointing to a four-day massacre in the village of Moura which lead to the deaths of 300 civilians, linked to the private military company Wagner. Compared to Japan, Russia is more centred on arms dealing. Russia exports grains, arms, extractives and nuclear power to Africa. This engagement is mostly with four countries: Egypt, Algeria, Morocco and South Africa.
Japan’s Geo-economic Interests.
Due to Japan’s recent active economic relations in the continent, Japan's net Foreign Direct Investment (FDI) in Africa has the potential to bounce back to pre-Covid-19 levels. In 2019, Japan's FDI reached $10 billion, compared to the reduced amount of $6 billion in 2021.
Some of the main Japanese companies operating in Africa and investing in different technologies are: Toshiba Energy Systems & Solutions Corporation invests in thermal and hydro power projects across 10 countries. Hitachi Energy focuses on renewable power generation, including hydrogen, and operates in over 20 countries. Kawasaki Heavy Industries manufactures motorcycles, aerospace and defense equipment, robots, and gas turbines. There is also, Tsubame BHB Co., Ltd., a startup producing green ammonia fertilizer for small-scale farmers in Africa. NEC Corporation has been operating in Africa since 1963, delivering technology solutions such as national ID systems and telecommunication infrastructure.
Other Japan’s MNCs operating in the continents are Mitsui & Co., Ltd., a major investor in Africa, with offices in Ghana, Kenya, Morocco, Mozambique, and South Africa, Toyota Tsusho Corporation operating in all 54 African countries, Mitsubishi Corporation is present in 11 African countries and Sumitomo Corporation. In 2022, Japan's exports to Africa were led by Liberia, with a total value of over $3.18 billion USD. South Africa ranked second as a significant trade partner, primarily exporting transport equipment and general machinery. As for Africa exporting, South Africa was the leading exporter of goods to Japan from Africa, with a value of approximately $11.9 billion USD. Japan mainly imported manufactured goods and metals from South Africa, while major imports from Nigeria and Algeria included mineral fuels and petroleum.
China is currently the largest investor in Africa, while Japan poses a formidable geopolitical rival with a focus on soft power, aid, and private sector investments. In 2021, Japan exported $2.6 billion worth of goods to South Africa, primarily cars, while South Africa exported $8.36 billion worth of goods to Japan, including platinum, iron ore, and cars. Over the past 26 years, South Africa's exports to Japan have grown at an annualized rate of 4.69%. In March 2023, Japan's exports to South Africa decreased from $203.9 million to $192.3 million, resulting in a negative trade balance of $452 million for Japan.
Comparatively, China and South Africa’s trade are almost at par and exceedingly more. China exported goods worth $20.5 billion to South Africa, top product being broadcast equipment at $1.05 billion. South Africa exported goods worth $20.6 billion with Gold as its top product cashing in $5.05 billion. Just in April 2023, In April 2023, China sold $2.43 billion worth of goods to South Africa and bought $2.26 billion worth of goods from South Africa. This resulted in a positive trade balance of $178 million for China.
In conclusion, Africa has the potential to emerge as a significant global economic player especially with the immense potential of the African Continental Free Trade Area. Unfortunately, Africa remains appealing to global powers because of its affinity to dependency. African leaders, like the rest of the world, should subscribe to the school of realism as it dictates that states are primary actors in an international system, and their behaviour is driven by self-interest and a pursuit of power. According to this theory, we [Africans] should prioritize our own survival, security, and economic well-being above all else. African leaders should assert sovereignty, say no to aid , and demand equitable terms during negotiations that prioritize agreements which foster financial parity and sustainable development.
© 2024, The Nuruba Media & Publishing Company Ltd. & Aberdeen Experience Labs
© 2024, The Nuruba Media & Publishing Company Ltd. & Aberdeen Experience Labs
© 2024, The Nuruba Media & Publishing Company Ltd. & Aberdeen Experience Labs
© 2024, The Nuruba Media & Publishing Company Ltd. & Aberdeen Experience Labs