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SADC Counts on EU and US for Security Funding in Mozambique

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The 16-nation Southern African Development Community (SADC) is counting funding from the United States and European Union (EU) to support its proposed military deployment (3,000 troops) in Cabo Delgado, northern Mozambique, according to Andre Thomashausen, professor emeritus of international law at the University of South Africa (UNISA).

Thomashausen said that Pretoria “is desperately seeking” ways to strengthen and rehabilitate its military operational capabilities through the intervention in northern Mozambique and “SADC wants this entire operation to be funded by support from the European Union and, to some extent, the United States. SADC is envisaging a role for the European Union of financial rather than logistical or human resources support.”

SADC technical assessment mission has proposed sending a military intervention force of 3,000 troops as part of its response to help fight the militant insurgency in Mozambique. In terms of military assets, the SADC assessment team proposes that 16 be sent to Mozambique, namely two patrol ships, a submarine, a maritime surveillance plane, six helicopters, two drones and four transport planes.

On April 28, Southern African ministers have agreed to deploy a regional force in Mozambique. But the Southern African leaders meeting that was scheduled for April 29 to assess the security situation and offer the final approval for deployment of SADC military force was postponed due to unavailability of South African President Cyril Ramaphosa and Botswana President Mokgweetsi Masisi.

Botswana is the current chair of the SADC division, which is tasked with promoting peace and security in the region. Botswana President Mokgweetsi Masisi is quarantined due to Covid-19. Ramaphosa was busy giving testimony to an inquiry into corruption under his predecessor Jacob Zuma.

Botswana and South Africa along with Zimbabwean President Emmerson Mnangagwa, are the current members of the SADC security organ troika. The three would have met Mozambique President Filipe Nyusi at the summit to decide whether to accept the proposed intervention plan.

The insurgency broke out in Mozambique’s northeast in 2017 and the rebels have stepped up attacks in the past years, with the latest March 24 heinous attack left more than 2,800 deaths, according to several reports, and about 714,000 people displaced, according to government sources.

The worsening security situation is a major setback for Mozambique. While it hopes to reap nearly US$100 billion in revenue over 25 years from LNG projects, the state failed its pledge to maintain and enforce security after several warnings. Now French energy group Total declared force majeure on its €20 billion liquefied natural gas (LNG) project following the insurgent attacks. The gas project located about six kilometers from the city that suffered the armed attack in March.

In an official release, the Paris based Total officials said considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation leads Total, as operator of Mozambique LNG project, to declare force majeure. The suspension of work arising from the “Declaration of Force Majeure” will remain in force until the government restores security in a verifiable and sustainable manner.

Besides that, Mozambique is rocked with frequent kidnappings. In a recent interview with Lusa, the president of Confederation of Economic Associations of Mozambique (CTA), the largest employers’ association in the country, Agostinho Vuma, said that kidnappings targeting entrepreneurs and their relatives are a negative feature of the country’s business environment.

In addition, a report by ratings agency Standard & Poor Global also said militant attacks in Mozambique’s Cabo Delgado province still pose a “significant threat” to production facilities associated with one the biggest natural gas discoveries in the world.

S&P, which ranks Mozambique’s foreign debt at CCC+, seven rungs below investment grade, said it expected economic growth in the country to recover in 2021 on higher mining output, especially linked to liquefied natural gas (LNG) production.

But that rebound was subject to completion of the gas projects in the face of mounting security risks, as well as risks of droughts and flooding. Mozambique was battered by two massive cyclones in 2019, and another hit its shores in this year.

“If this project comes on stream as expected by 2024-2025, it will benefit Mozambique’s economic outlook, and support wealth levels that are currently very low by global comparison,” said S&P. But most benefits will materialize beyond our current forecast horizon as gas production will likely come on stream in 2025 given the delays experienced in 2021.”

The ratings firm project gross domestic product (GDP) to expand 2.5% in 2021 after last year’s 1.25% contraction. It however sees economic growth to average 5.5% from 2022 onwards.

With an approximate population of 30 million, Mozambique is endowed with rich and extensive natural resources, but remains as one of the poorest and most underdeveloped countries in the world. It is one of the 16 countries, with collective responsibility to promote socio-economic and political and security cooperation, within the Southern African Development Community (SADC).

MD Africa Editor Kester Kenn Klomegah is an independent researcher and writer on African affairs in the EurAsian region and former Soviet republics. He wrote previously for African Press Agency, African Executive and Inter Press Service. Earlier, he had worked for The Moscow Times, a reputable English newspaper. Klomegah taught part-time at the Moscow Institute of Modern Journalism. He studied international journalism and mass communication, and later spent a year at the Moscow State Institute of International Relations. He co-authored a book “AIDS/HIV and Men: Taking Risk or Taking Responsibility” published by the London-based Panos Institute. In 2004 and again in 2009, he won the Golden Word Prize for a series of analytical articles on Russia's economic cooperation with African countries.

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Hydro-projects in Africa: Interview with Vladislav Vasilyev

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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.

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Nigeria- Ghana Trade War: Where to from here

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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.

Key takeaways

  • 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.

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Africa

H.E. President John Mahama Appointed As AU High Representative for Somalia

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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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