On July 25 -27, South Africa hosted the 10th BRICS summit (Brazil, Russia, India, China and South Africa), an important milestone as it represents a decade of its cooperation, in Johannesburg’s Sandton Convention Center. As Chairman of 2018 BRICS summit, South African President Cyril Ramaphosa hosted the (BRIC) namely Brazilian President Michel Temer, Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping.
It was under the theme “BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution.” All the five BRICS leaders participated in official, private and expanded meetings, and signed documents.
They have primarily expressed high commitment to further strengthening of the full-fledged strategic partnership, secondly recognized the overall emerging tasks, challenges and opportunities, and thirdly most importantly to determine the key priorities of the «Big Five» activities for years ahead.
On both days, July 26 to 27, there several scheduled sessions that involved BRICS leaders and non-BRICS countries invited to the summit. The summit was an expanded-format. In 2013, when South Africa first hosted a BRICS summit, it invited a number of African leaders.
Russia Leads the Way
Russian leader Vladimir Putin made the Group’s position known during his final media conference held at the 2018 BRICS summit in Johannesburg, South Africa.
He said that “BRICS is an organic association of countries that have many things in common: they have many shared interests and common approaches to addressing challenges that are relevant to all of humanity, including Russia. This is one of its key advantages, and today, many countries are showing an interest in BRICS.”
“Concerning the group’s expansion, BRICS Plus and Outreach format have already been created to this effect. For now, we agreed to rely on these formats for expanding our reach and drawing into our orbit countries that share the underlying principles and values of BRICS,” the President said.
While many viewed the existing formats of interaction effective, Putin explained that any questions regarding BRICS enlargement in future would definitely need additional thorough discussions and final consideration.
“But so far, we have no plans to expand BRICS membership, since the existing formats have proven effective. As for discussions of issues we intend to address, these are issues relevant for a vast majority of countries and economies around the world. The sky is the limit for us,” the Russian leader explained.
“They are willing to cooperate with other countries and do not rule out BRICS expansion in the future but they believe that it requires additional analysis. This does not mean that the organization is closed, that its doors are closed. No, it is just that this issue should be properly analysed. Otherwise, the organization is open to anyone,” Putin stressed at the media conference.
Historically, the first meeting of the Group began in St Petersburg in 2005. It was called RIC, which stood for Russia, India and China. Brazil and subsequently South Africa joined later, which is why now it is refered to as BRICS.
Initially, the goals and tasks were very modest, primarily focus on the economy, and the coordination of efforts toward attaining more ambitious goals. As more members joined the Group, it developed into a full-scale organisation with new spheres of activity and broader common interests.
BRICS Expansion Still the hottest question
Understandably, BRICS leaders’ common position on the question of expansion was previously shared this way: BRICS countries represent a major stabilizing factor promoting sound multilateral initiatives in global affairs.
The fact that Pretoria has paid a special attention to Africa-related issues in the work of BRICS, other friends of the five countries from around the world representing authoritative integration associations participated in the 10th summit. This was the practical implementation of the «BRICS plus» initiative approved by the Group leaders during the Xiamen Summit.
Thus, 2018 Johannesburg summit expanded the global reach of the Group and established the outer circle of like-minded countries. In this regard, BRICS has good potential to become a unique platform for linking various integration processes in a flexible way.
Furthermore, BRICS has many current challenges and tasks to manage in the face of global transformation. It is important for BRICS to seek new initiatives, strategies, and policies that can potentially challenge the global order. Experts have expressed different views:
Nandan Unnikrishnan, Research Fellow at the Observer Research Foundation, India: There is nothing wrong in trying to expand the BRICS if the new countries meet the criteria of what BRICS represents and their entry adds to the cohesion of the grouping. However, it appears that at this stage of the evolution of BRICS the need of the hour is not expansion, but consolidation. Given developments in the world as well as in each of the BRICS countries, it appears that BRICS needs to catch its breath and regain the momentum that originally infused the grouping.
Secondly, BRICS is quite clear about the Africa’s developmental needs. The question is whether in their current circumstances they have the wherewithall to mobilise the necessary resources to actively propel Africa’s development over and above their bilateral commitments to African countries. All the BRICS countries are facing economic challenges that they need to address urgently. But in the long-run, BRICS is keenly aware of the importance of contributing towards Africa’s development agenda.
Charles Robertson, Chief Economist at Renaissance Capital: The BRICS was just a concept from Goldman’s with little intellectual coherence beyond the fact that 1) all four of the original BRIC countries had a-historically low GDP and were likely to rebound in size, 2) they were populous, 3) there were among them two commodity importers and two commodity exporters among them. South Africa was a late minor addition to the group, to add a “bridgehead to Africa” angle.
So, could it expand – yes. Why? Because the BRICS are under-represented in the global financial architecture. Europe and the US dominate institutions like the IMF and the World Bank, and to some extent the UN, the WTO, the ADB, the IADB, NATO etc.
Russia and others in the BRICS would like to see larger power centres emerge to offer an alternative to that Western dominated construct. That is reasonable enough – providing there are countries with the money to backstop the new institutions, such as China supporting the BRICS bank, and if the countries offer an alternative vision that provides benefits to new members. But, would a broader BRICS + body offer tariff free access to their markets as the EU and the US can? I doubt that. Can they offer financing via a BRICS bank. Perhaps.
Would there be a unified BRICS approach to Africa. I doubt it. I suspect the only unified stance would be one supporting non-interference in domestic affairs – but to be honest, there is little interest in the US or UK to get very involved in Africa either (Libya is one prominent exception), so there is relatively little to oppose.
Professor Georgy Toloraya, Russian National Committee for BRICS Research: “Now, is a very good time to show that BRICS members and relations between them are an alternative to the format existing in the West,” Executive Director of the Russian National Committee for BRICS Research, Georgy Toloraya, told the Kommersant – a Russian daily business newspaper, adding that “BRICS favors order, compliance with agreements and development.” Plans are in store to expand the group, so the leaders of Argentina, Turkey, Indonesia and some African countries invited to the summit.
According to Toloraya, India is currently opposed to expanding BRICS fearing that new members will support China. On the other hand, Moscow argues that “the entrance ticket” to the group is independence and sovereignty, and under no circumstance, potential candidates can be called China’s satellites.
Many Experts interviewed shared the same sentiments. BRICS creation based on the principle of equality so it is very difficult to reach a compromise among so different countries. The number of members cannot be to big anyway as BRICS comprise big emerging economies and regional powers with a certain unique civilizational features.
There are not so many countries like that – they would include Indonesia, Mexico, Turkey, Egypt and Iran… But there are certain political requirements for new members – including recognition of BRICS values and core foreign policy principles. Experts have suggested the creation of “observer status” and “partners for dialogue” platforms within the group.
The BRICS member countries (Brazil, Russia, India, China and South Africa) collectively represent about 26% of the world’s geographic area and are home to 2.88 billion people, about 42% of the world’s population.
Hydro-projects in Africa: Interview with Vladislav Vasilyev
As widely known, Russia plans to hold the second Russia-Africa summit in 2022, as a further step to make inroads into Africa – that comprises a diverse collection of countries, each with its own set of development setbacks and challenges. The political culture and investment climate are, in fact, diverse but are also important forces in determining the levels of the economy.
As it aims at raising its economic profile, Russia is strongly encouraging Russian business leaders to prioritize sustainable development-oriented projects as a practical step towards raising the living standard of millions of impoverished population in Africa.
For instance, JSC Institute Hydroproject promises to transfer its experience in advanced and innovative technologies, and efficient use of water resources, especially ways of managing and ensuring reliable hydro-energy supply. JSC Institute Hydroproject can further help in the accelerated social and economic development in Africa.
In this interview, Vladislav Vasilyev, Head of International Projects Department at JSC Institute Hydroproject, discusses his company’s efforts directed at establishing hydro-projects in Africa, further touched on the state support for Russian business in Africa. Here are the interview excerpts:
– How important is African market for your company, JSC Institute JSC Institute Hydroproject?
JSC Institute Hydroproject has vast working experience in African countries wherein we have done designs of HPPs in Algeria, Angola, Ethiopia, Guinea, San Tome and Principe, Tunisia, Morocco, Ethiopia. We would like to separately emphasize about the masterpiece high class engineering of the Aswan dam on the Nile river in Egypt. JSC Institute Hydroproject management has deep knowledge of the African market.
– What are your expectations from African governments, industrialists and agribusiness directors in cooperating on products and services of your company?
African countries are among the fastest growing in the world. About one and half billion people live there, and that constitute approximately 20% of the world’s population. At the same time, there is a big demand in infrastructure development. Even the United Nations, forming the “Sustainable Development Goals” emphasizes the high development needs of the African region.
The African market is a big challenge in all areas of water use, from land reclamation to large and complex knowledge-intensive industries, not to mention the usual but much-needed electricity generation. In this regard, we see many opportunities for cooperation with governments, industrialists and in the huge agroindustry.
– Do you envisage any key problems and impediments to developing business, especially in the sphere of agriculture in African countries?
Difficulties and obstacles are possible – this is life. However, we can look at things differently, and see the obstacles as opportunities and incentives. For example, the lack of land reclamation networks makes it possible to build and develop a water delivery system that can become a link to strengthen the local neighboring countries and peoples.
The construction of a hydroelectric power station requires a channel with a large water pressure, which means the presence of a water basin, a reservoir. This will not only provide the local region with electricity, but also provide water. Here are a number of issues that are being resolved with the participation of the design and survey and research school of such a company as JSC Institute Hydroproject.
– How competitive do you see African market for Russian companies, generally, and for your company, specifically? From the previous experience, what challenges Russian companies and investors face in Africa?
There are several challenges, which are still in place for Russian engineering companies on African market. Russia is still not a member country of African Development Bank. AfDB announces many tenders, which are closed to companies from non-member countries. Still it is only a few African countries, who signed an agreement on the avoidance of double taxation with Russia.
– Business needs vital information, knowledge about the investment climate and so forth. Do you think there has been an information vacuum or gap between the two countries?
In my opinion we can talk about the rapprochement of the positions of Africa and Russia, the formation of new and strengthening of long-standing ties. This is explicitly noted, for instance, by Russian Foreign Minister Sergei Lavrov, and Head of the National Chamber of Commerce and Industry of Uganda, Olive Kigongo.
Joshua Setipa, Managing Director of the United Nations Technology Bank for the Least Developed Countries, says of the importance of high-tech companies: “It is important for us to continuously develop our partner network and establish cooperation with organizations that can help and support less developed countries with their technological and innovative potential. I am sure that working in Russia and, in particular, at the events of the Roscongress Foundation will help us to use the country’s opportunities for the benefit of others.” He said so at the recent Russia-Africa summit in Sochi.
– In your opinion, does the forthcoming second Russia-Africa summit planned for 2022 hold an opportunity for raising the level of investment and business engagement with Africa?
Russia-Africa summit is unique platform that is expected to bring together corporate business directors and potential investors from both regions – Russia and Africa. We can simply agree that investments are always possible, and Russia is highly interested in them. This is also a state and business interest. Such people and companies are also among our partners.
According to the achievements of recent years – this is not only the First Joint Russia-Africa Summit, but also during many previous bilateral forums, it is important to say that cooperation in the business sphere is just gaining momentum.
Now there is a lot of work to be done, including a well-structured and well-coordinated policy for Russian business, restructuring foreign policy and supporting economic circles – with African politicians, business people and residents of African countries. It is necessary to cooperate between scientific, technical, humanitarian, information, and digital platforms, and ultimately to develop common approaches for the implementation of our upcoming joint projects.
Nigeria- Ghana Trade War: Where to from here
Several months after a series of bilateral talks between the Nigerian government and authorities in Ghana aimed toward addressing the nearly a decade-long controversy that led to the closure of Nigerian traders’ shops in Ghana, the problems have not been resolved. Hundreds of shops belonging to Nigerian traders are still under lock and key; while most of the owners are stranded. A number of them said they beg to feed, as many of them remain reluctant to return to Nigeria despite a window created by the Nigerian government to facilitate their safe return.
What has happened so far?
President Muhammadu Buhari stunned Nigeria’s neighbors when he unexpectedly closed the country’s land borders to goods trade, saying the time had come to crush contraband trade. The land borders with neighboring Benin, Cameroon, Chad, and Niger were closed to goods in August 2019, with partial openings and closings for people prompted by the coronavirus pandemic throughout 2020.
The center of the lingering controversy was a $1 million levy imposed on Nigerian traders and other foreign investors to pay Ghana Investment Promotion Centre (GIPC) before the shops would be opened. The conditions set by the Ghanaian authorities had triggered a debate in Nigeria and within the African sub-region, which many considered as a breach of ECOWAS’ trade protocols.
However, on 19 June 2020, armed men entered the compound of the Nigeria High Commission in Ghana, and destroyed buildings under construction. Nigeria’s foreign minister Geoffrey Onyeama described the vandalism as “outrageous and criminal” and urged the Ghanaian authorities to make sure that they protect Nigerian diplomatic buildings. Nigerian residents in Ghana held a demonstration calling for Nigerian government to take action. Although a piece posted on the Nigerian High Commission website in Ghana places responsibility on a businessperson who had previously claimed he owned the land where the building was being built, Nigerians living in Ghana still took to the streets to protest for their protection. The Ghanaian foreign ministry also promised that security had been “beefed up”.
Flashback on bilateral talks
The Nigerian Minister of Foreign Affairs, Geoffrey Onyeama, had last year summoned Ghana’s Chargé d’Affaires to Nigeria, Ms. Iva Denoo, with whom he discussed the closure of the Nigerian-owned shops in Accra with a view to addressing the problem. Onyeama described the action taken by the Ghanaian authorities as politically motivated. However, his Ghanaian counterpart, Shirley Ayorkor Botchwey, countered his allegation, insisting that the crackdown was on illegal foreign retail businesses in Ghana.
Botchwey, described in a tweet by Onyeama, tagging Ghana’s policy on retail business as a politically motivated move as ‘most unfortunate. She said the Ghanaian government did not target any particular nationality in the exercise. “Countries sometimes take tough decisions in order to enforce their laws, just as Nigeria took a decision to shut its borders to stop smuggling, despite its impact on ECOWAS member countries,” she had said.
Is Ghana innocent?
While it’s easier to quickly point a finger at Nigeria as the aggressor, given it’s the bigger country who opted to shut its borders, therefore creating a ripple effect in the smaller economies, Ghana also has laws that clash with ECOWAS protocol, which ensures the free movement of the community’s citizens, as well as free and fair trade. The 2013 Ghana Investment Promotion Centre Act (GIPC) is one such Act. It prioritizes the interests of Ghanaian traders and business owners by designating certain only its citizens, whereby foreigners wanting to set up shop in Ghana must have a minimum equity capital of $10,000, run enterprises. That alone limits the number of foreigners – particularly from the poorer surrounding West African countries – who can successfully work in Ghana.
Where to from here
While tariffs can result in individual ‘winners’, a full trade war, protectionism, and a reversal of decades of globalization would damage economies across the board, hitting emerging markets particularly hard. COVID-19 has arguably pushed many countries towards concentrating on themselves, as many economies have been negatively affected in an exceedingly shocking manner. Although few expect to see the kinds of tensions witnessed in the 1980s when Nigeria expelled two million undocumented West African migrants, half of whom were from Ghana.
- Nigeria border closure weakened trade across West Africa
- A full trade war and globalization reversal will benefit nobody
- Nigerian traders have suffered the most; Ghanaians also faces pain
- Traders have seen big losses.
- Demolition of Nigerian High Commission building in Accra.
H.E. President John Mahama Appointed As AU High Representative for Somalia
The Chairperson of the Commission, H.E. Moussa Faki Mahamat, has announced the appointment of H.E John Dramani Mahama, former President of the Republic of Ghana, as his High Representative to Somalia.
As the High Representative for Somalia’s political track, President Mahama will work with the Somali stakeholders, to reach a mutually acceptable compromise towards an all-encompassing resolution for the holding of Somali elections in the shortest possible time.
In fulfilling his mandate, the High Representative will be supported by the African Union Mission in Somalia (AMISOM), to ensure that the mediation efforts and the peace support operation work together seamlessly.
The Chairperson of the Commission calls on the Somali stakeholders to negotiate in good faith, and to put the interests of Somalia and the well-being of the Somali people above all else in the search for an inclusive settlement to the electoral crisis.
This should usher in a democratically elected government with the legitimacy and mandate to resolve the remaining outstanding political and constitutional issues that are posing a threat to the stability of the country and the region as a whole.
The Chairperson of the Commission also encourages all the Somali stakeholders and the international community to extend every support to the High Representative, who will arrive the country in the coming days.
Ambassador Abukar Arman, a former Somalia special envoy to the United States and a foreign policy analyst says there have previously been interventions from neighbors have not brought Somalia the promised peace.
It is clear that no Somali can pursue a political career in his own country without first getting Ethiopia’s blessings. Already, Ethiopia has installed a number of its staunch cohorts in the current government and (along with Kenya) has been handpicking virtually all of the new regional governors, mayors and so forth.
In October 2010, the African Union appointed Jerry John Rawlings as the AU High Representative for Somalia to “mobilize the continent and the rest of the international community to fully assume its responsibilities and contribute more actively to the quest for peace, security and reconciliation in Somalia.”
That however, Ambassador Arman says the former Ghana president and AU Special Representative for Somalia is now assuming his new post with significant diplomatic capital, mainly resulting from the credible work of his fellow countryman, former president, and Special Envoy to Somalia, Jerry John Rawlings.
“On the other hand, he would be carrying the hefty political burden that comes with the so-called African Solutions for African Problems and its cash-gulping record. The concept is taken hostage by African sloganeers and foreign elements eager to advance zero-sum interests,” he wrote me in an emailed message.
Make no mistake, Somalia is held in a nasty headlock by a neighbourhood tag-team unmistakably motivated by zero-sum objective. It is their so-called African solution (not so much of the extremist group al-Shabaab) that is setting the Horn on fire.
According to AFP news report, Mogadishu had been on edge since February, when President Mohamed Abdullahi Mohamed’s term ended before elections were held, and protesters took to the streets against his rule. But a resolution in April to extend his mandate by two years split the country’s fragile security forces along all-important clan lines.
Soldiers loyal to influential opposition leaders began pouring into the capital. The fighting drove tens of thousands of civilians from their homes and divided the city, with government forces losing some key neighborhoods to opposition units.
Under pressure to ease the tension, Mohamed abandoned his mandate extension and instructed his prime minister to arrange fresh elections and bring together rivals for talks. Indirect elections were supposed to have been held by February under a deal reached between the government and Somalia’s five regional states the previous September.
But that agreement collapsed as the president and the leaders of two states, Puntland and Jubaland, squabbled over the terms. Months of UN-backed talks failed to broker consensus between the feuding sides.
In early May, Mohamed re-launched talks with his opponents over the holding of fresh elections, and agreed to return to the terms of the September accord.
Prime Minister Mohamed Hussein Roble has invited the regional leaders to a round of negotiations on May 20 in the hope of resolving the protracted feud and charting a path to a vote. In the meanwhile, the international community has threatened sanctions if elections are not held soon.
Somalia remains the epicenter of global geopolitical and geo-economic competition. Some of the major ones are in a cut-throat competition that further complicates the Somalia conundrum. With its longest coastline, bordering Ethiopia to the west, Kenya to the southwest and the Gulf of Eden, Somalia has attracted many foreign countries to the region in East Africa.
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