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Oil prices have given up gains scored earlier today after Saudi Aramco said it had been directed by the energy ministry to raise its production capacity by a million barrels per day. Brent crude slid $1 and 20 cents to trade a $36 per barrel, while U.S. West Texas Intermediate crude dropped $1 and 12 cents to $33 and 24 cents. As global markets continue to respond to impact from the coronavirus, Lukman Otunuga, Senior Research Analyst at FXTM Market joins CNBC Africa for more.</p>


More pain for oil markets as the Russia-Saudi price war escalates

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<p>In his New Year speech, Nigeria’s President, Muhammadu Buhari stated that the revolution in the agricultural sector is already a reality in all corners of the country adding that new agreements with Russia and Morocco will fasten transformation in farming. So what areas should Nigeria prioritise to ensure food security this year? Kola Masha, Managing Director at Babban Gona joins CNBC Africa for more.</p>


This is what Nigeria must prioritise in order to grow its agricultural sector in 2020


<p>By Emma Rumney</p>



<p>JOHANNESBURG, Jan 7 (Reuters) &#8211; Russian bank VTB is suing a Mozambique state-owned company over $535 million it extended as part a series of loans now at the centre of a $2 billion debt scandal.</p>



<p>An online court filing dated Dec. 23 shows VTB has lodged a lawsuit in Britain&#8217;s High court against the Mozambique state and Mozambique Asset Management, which borrowed the money from VTB as part of a costly project that U.S. authorities say was an elaborate front for a bribery and kickback scheme.</p>



<p>VTB had been in talks with the southeast African country over restructuring the loan, which the deputy head of VTB Capital&#8217;s legal department said in October represented a &#8220;significant exposure&#8221; for the bank.</p>



<p>&#8220;An agreed restructuring remains our preferred outcome but after 3 years of discussions with no tangible progress VTB must now consider all options available to it for a resolution,&#8221; VTB said in an emailed statement.</p>



<p>Mozambique&#8217;s Attorney General&#8217;s Office said it was waiting for formal notification of the lawsuit.</p>



<p>The court filing said the case relates to &#8220;general commercial contracts and arrangements&#8221; but no further information was available, other than that VTB Capital, the investment banking arm of VTB, is being represented by law firm Freshfields Bruckhaus Deringer.</p>



<p>The debt scandal has already sparked a series of court cases spanning London, New York and South Africa, ensnaring global investment bank Credit Suisse, three of its former bankers, Mozambique&#8217;s former finance minister and a past president&#8217;s son.</p>



<p>However this is the first time any of the cases have involved VTB, which is more than 60% owned by the state. It comes despite an increasingly close relationship between Russia and Mozambique, with President Filipe Nyusi visiting Russia twice last year and a series of agreements between Maputo and Moscow.</p>



<p>Credit Suisse and VTB provided or arranged a total of around $2 billion for the project, encompassing tuna fishing, maritime security and shipyard development. Hundreds of millions of dollars went missing, while the benefits never materialised.</p>



<p>Mozambique did not disclose some of the loans, which were guaranteed by the state. The International Monetary Fund and other donors cut off support when they came to light in 2016, triggering a currency collapse and sovereign debt default.</p>



<p>It remains on the hook for the money, the largest chunk of which now sits in a restructured eurobond. The country is trying to challenge the guarantee related to a $622 million loan from Credit Suisse, also in a London court.</p>



<p>The Jubilee Debt Campaign, which calls for the cancellation of unjust or unpayable debts of the poorest countries, said Mozambique should not have to pay a cent towards the loans, which were guaranteed without the approval of Mozambique&#8217;s parliament.</p>



<p>&#8220;The loan guarantee was in clear breach of Mozambican law, and the lenders, companies and politicians involved should all be held to account for their role in the deal,&#8221; Sarah-Jane Clifton, the campaign&#8217;s director, said.</p>



<p>(Additional reporting by Tatiana Voronova in Moscow; Editing by Lisa Shumaker, Kirsten Donovan)</p>


This African country is being sued by Russia’s VTB over loan in $2 billion debt scandal

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<p>Nigeria’s Minister of Works and Housing, Babatunde Fashola proposed to float a 10 trillion National bond to plug the infrastructure deficit in the country. Nigeria is also exploring external partnerships with Russia coming into the picture. Tilewa Adebajo, CEO of CFG Advisory joins CNBC Africa for more.</p>


Nigeria weighing its options in curbing infrastructure deficit

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<p>The ripple effects of Nigeria&#8217;s partially closed borders continues to reverberate across neighbouring countries in West Africa. From Sochi in Russia – to discuss this story and more, Yofi Grant, CEO of Ghana Investment Promotion Centre joins CNBC Africa.</p>


How Nigeria’s border closure is affecting trade with its neighbours

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<p>Egyptian President Abdel Fattah al-Sisi and Ethiopian Prime Minister Abiy Ahmed are set to meet in Russia to discuss a dispute over a hydropower dam that Ethiopia is building on the River Nile, which has caused a long-running diplomatic standoff. Ethiopia aims to provide electricity to homes of its 105 million citizens and Egypt wants a steady supply of water for its 98 million citizens. Global Chairman at Fairfax Africa Fund (US), Zemedeneh Negatu joins CNBC Africa for more.</p>


Egypt, Ethiopia to hold talks over Nile dam hydropower dispute

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<p>We are joined by Ekaterina Dyanchenko CEO and Founder of B2B-Export and expert in Russia-Africa trade, to discuss why e-commerce opportunity in Africa is great for large and small companies and why the Russian federation is interested in increase its footprint in Africa. She joins CNBC Africa for more.</p>


Russian Federation hopeful of re-establishing its footprint in Africa through e-commerce platforms

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<p>Mozambique is country rich in gas, has unsustainably high debt levels and on a slow growth trajectory that followed the 2016 hidden debt crisis, according to the World Bank (WB). It has an election on the horizon and its President Filipe Nyusi recently sealed an energy and security deal with Russian President Vladimir Putin. For more on the lay of the land, Nathan Hayes, Country Analyst at the Economist Intelligence Unit (EIU) joins CNBC Africa for more.</p>


Mozambique seals energy deal with Russia on the brink of elections: What does this development hold for its growing economy?

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<p>Vera Songwe, the Under Secretary-General and Executive Secretary of UNECA is confident that multilateralism will return to the global trade terrain in different forms, and that Africa will contribute a new framework.</p>


How the AfCFTA strengthens multilateralism in Africa

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<p>Managing Director, Intra Africa Trade Initiative of the Afreximbank, Awani Kanayo, says the bank will support existing and new Export Trading Companies as a strategy for boosting export trade across the continent. She was speaking to CNBC Africa on the side-lines of the just concluded annual meetings of the Afreximbank in Moscow.</p>


Afreximbank’s export strategy for Africa

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<p>CEO Vista Group, Simon Tiemtore, says Africa must strategically move from agriculture as a means of livelihood, to agriculture as a business. In an interview with CNBC Africa&#8217;s Christy Cole, Simon also talked Africa&#8217;s trade negotiations and leverage.</p>


Vista Group CEO: Why Africans should start looking at agriculture as a business

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<p>Nigeria&#8217;s Ambassador to Russia, Steve Ugbah says African Ambassadors have been lamenting about Russia&#8217;s absence in the continent, and events like Afreximbank&#8217;s 2019 Annual meetings in Moscow will present African countries the chance to explore opportunities in Russia.</p>


Nigeria, Russia seek to strengthen trade ties

By <span><a href="https://theconversation.com/profiles/janos-besenyo-737388">János Besenyő</a>, <em><a href="http://theconversation.com/institutions/obuda-university-4010">Óbuda University </a></em></span>

<p>Russia has never had an African colony. It stayed out of the scramble for Africa, only engaging with African states in the <a href="http://risingpowersproject.com/quarterly/russias-renewed-interests-in-the-horn-of-africa-as-a-traditional-and-rising-power/">19th Century</a>. In 1869, for instance, the Russians gave Ethiopia military support to threaten the position of the British in their quest to control the Suez Canal. They did this because Britain was one of their main European rivals.</p>

<p>It wasn’t until the <a href="https://digital-commons.usnwc.edu/cgi/viewcontent.cgi?article=7881&amp;context=nwc-review">Cold War</a> started in 1947 that Russia began to <a href="http://www.acarindex.com/dosyalar/makale/acarindex-1423873158.pdf">develop diplomatic relations</a> with several African countries. This was a way to counter the influence of its rivals such as the US. </p>

<p>The Cold War dictated the former USSR’s relations with many African countries for decades. This was followed by a period of relative inactivity. But more recently, relations have become increasingly important for Russia as well as some African countries. </p>

<p>The result is that some African countries no longer need to choose between the American and the Chinese way of development.</p>

<p>Ostensibly, China has the most pragmatic engagement with Africa. Its policy is <a href="https://academicjournals.org/journal/AJPSIR/article-full-text-pdf/335D4CC65846">not to interfere</a> with the internal workings of nation states or play geopolitics by pitting countries against each other. But it has become increasingly difficult for the country to resist using its military power to <a href="https://www.policyforum.net/chinas-non-interference-dilemma/">protect its economic interests</a>. </p>

<p>For its part, the US’s ultimate aim is to <a href="https://www.lawfareblog.com/havent-we-done-lessons-and-recommendations-strategic-competition-sub-saharan-africa">tip the regional balance of power</a> in its favour while also gaining access to Africa’s resources.  </p>

<p>My <a href="https://www.tandfonline.com/doi/full/10.1080/09546553.2018.1555976">research</a> explores Russia’s current relationship with the continent. The research examines Russian President Vladimir Putin’s strategy to redress the global balance of power by countering America’s influence in Africa and trying to match China’s large economic footprint on the continent. </p>

<p>I conclude that Russia’s primary goal is political influence. This is achieved by gaining control of natural resources and providing military support and intelligence. Yet, despite making massive inroads, the Russian Federation is still less influential than the US and China on the continent. </p>

<p>From the African point of view, Russia offers a strategic alternative to America’s global hegemony, China’s economic diplomacy, and the lingering influence of Africa’s former colonial masters. </p>

<h2>The history</h2>

<p>During the Cold War the Russians provided diplomatic, economic, military, and educational support for <a href="https://espionagehistoryarchive.com/2015/08/28/the-kgb-in-africa/">numerous African liberation movements</a>. These included Algeria, Angola, Cape Verde, the Democratic Republic of Congo, Ethiopia, Guinea, Madagascar, Sao Tome &amp; Principe, and Tanzania. As a result many young Africans were <a href="https://www.theguardian.com/global-development/2018/sep/11/russias-scramble-for-influence-in-africa-catches-western-officials-off-guard">educated in Moscow</a>.</p>

<p>Russia began to trade and interact with these states routinely. It sent in <a href="https://csis-prod.s3.amazonaws.com/s3fs-public/legacy_files/files/publication/anotes_0992.pdf">military intelligence officers</a> to establish a strong presence and ensure that Africa was not purely influenced by the West. The Russians developed relations with Africa so intensely that for the 10 years between 1950 and 1960 it <a href="https://www.taylorfrancis.com/books/e/9780203387740/chapters/10.4324/9780203387740-26">surpassed the influence</a> of colonising powers.  </p>

<p>That influence would remain more or less intact until the <a href="https://www.history.com/topics/russia/boris-yeltsin">Boris Yeltsin era</a>. Between 1990 and 1999 Russia’s impact on the continent was spectacularly lowered. Nine embassies and three consulates were closed. The number of personnel subordinated to the Russian Ministry of Foreign Affairs was drastically reduced. Russian cultural institutions were closed, and economic relations were unilaterally terminated. Previously generous aid programmes were scrapped.</p>

<p>This all changed when Putin came to power in 1999. Under his leadership Russia has started to <a href="https://qz.com/africa/1546037/russia-is-expanding-its-strategic-influence-in-africa/">regain its economic and political clout</a> in Africa. Putin <a href="https://www.up.ac.za/media/shared/85/Strategic%20Review/Vol%2037%20(2)/olivier-suchkov-pp146-167.zp74611.pdf">has jumpstarted</a> Russia’s diplomatic, economic, and military ties with its former African allies.</p>

<h2>Russian interests in Africa</h2>

<p>From my research I can conclude that Russia’s primary intent is to <a href="https://saiia.org.za/research/russias-africa-policy/">build political alliances</a> by supporting nation states economically and militarily while remaining non-judgemental about their internal governance structures. </p>

<p>Its long-term goal is to become a political, economic and military mediator that can stand behind Africa’s global interests and count on the continent’s support in return. Here are some of the areas where Russia are mainly active:</p>

<p><strong>Economic interests:</strong> Russia is now seeking to exploit conventional gas and oil fields in Africa and elsewhere. Part of its <a href="http://www.energystrategy.ru/projects/docs/ES-2030_(Eng).pdf">long term energy strategy</a> is to use Russian companies to create new streams of energy supply. For example, <a href="http://www.atlanticcouncil.org/publications/articles/russia-s-return-to-africa">Russian companies</a> have made significant investments in Algeria’s oil and gas industries.  They have <a href="http://www.lukoil.be/pdf/Lukoil_AR_2013_eng.pdf">also invested</a> in Libya, Nigeria, Ghana, Ivory Coast and Egypt.</p>

<p>Russia is also expanding its African interests in <a href="https://www.ispionline.it/sites/default/files/pubblicazioni/analysis_168_2013.pdf">minerals</a>. <a href="https://www.caseyresearch.com/articles/how-putin-conquered-south-africa-2/">Uranium</a> – which is key to the nuclear power industry – is at the top of its list. </p>

<p>In addition, Russian companies are producing <a href="https://www.up.ac.za/media/shared/85/Strategic%20Review/Vol%2037%20(2)/olivier-suchkov-pp146-167.zp74611.pdf">aluminium in Nigeria</a>, and have <a href="https://www.ispionline.it/sites/default/files/pubblicazioni/analysis_168_2013.pdf">constructed hydropower stations</a> in Angola, Namibia, Botswana.  </p>

<p>Russia is also on track to build nuclear plants in <a href="http://www.nti.org/media/pdfs/egypt_nuclear_1.pdf?_=1316474849">Egypt</a>, <a href="http://www.ibtimes.co.uk/nigeria-signs-pactrussias-rosatom-build-4-nuclear-power-plants-1496292">Nigeria</a> and <a href="https://nbn.media/russia-steps-in-algeria-nuclear-program/">Algeria</a>. These investments are a means to becoming an integral part of Africa’s energy sector.</p>

<p>Russia has also improved its <a href="https://www.atlanticcouncil.org/publications/articles/russia-s-return-to-africa">commercial relations</a> with its African partners. In 2009, it established the Coordinating Committee for Economic Cooperation with sub-Saharan Africa to assist in <a href="http://www.afrocom.ru/en">promoting Russian business interests</a>. </p>

<p><strong>Defence interests:</strong> Russia has traditionally been one of Africa’s main arms suppliers. During the Cold War many armed liberation organisations and African countries – among them Angola, Mozambique, Zimbabwe, Zambia and Guinea –<a href="https://www.tandfonline.com/doi/abs/10.1080/14682740600795469?journalCode=fcwh20">bought military equipment</a> from Russia. More recently Russia has made significant arms deals with <a href="https://csis-prod.s3.amazonaws.com/s3fs-public/legacy_files/files/publication/anotes_0992.pdf">Angola</a> and <a href="https://www.middleeastmonitor.com/20180720-algeria-has-bought-half-of-the-russian-weapons-sold-in-africa/">Algeria</a>. <a href="https://www.themoscowtimes.com/2019/03/18/russia-secures-2bln-fighter-jet-contract-with-egypt-reports-a64842">Egypt</a>, <a href="https://www.jewishpolicycenter.org/2013/12/31/russia-africa/">Tanzania</a>, <a href="https://www.pri.org/stories/2018-10-17/russia-expands-its-military-and-business-ties-africa">Somalia, Mali, Sudan and Libya</a> have also bought arms from Russia. The Russians also provide military training and support.</p>

<p><strong>Aid:</strong> Under Putin Russia has made <a href="http://arts.studenttheses.ub.rug.nl/17380/1/MA_1661485_PA_Bannink.pdf">sizeable aid donations</a> to a variety of African countries averaging about $400 million per year. Around 60% of Russian aid is delivered through international organisations; <a href="https://www-cdn.oxfam.org/s3fs-public/file_attachments/dp-russia-humanitarian-donor-150713-en_0.pdf">global humanitarian organisations</a> like the World Food Programme and the UN refugee agency. The remaining 40% gets to Africa in a framework of bilateral cooperation. It also makes donations <a href="https://www.hsfk.de/fileadmin/HSFK/hsfk_downloads/prif123.pdf">to support</a>  education, health care, agriculture, environment and energy.</p>

<p>The danger for Moscow is that, the more progress it makes with African governments, the more likely it is that its interests will collide with those of either China or the US – or both.<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/117764/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" /></p>

<p><span><a href="https://theconversation.com/profiles/janos-besenyo-737388">János Besenyő</a>, Associate Professor, <em><a href="http://theconversation.com/institutions/obuda-university-4010">Óbuda University </a></em></span></p>

<p>This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/russia-in-africa-can-it-offer-an-alternative-to-the-us-and-china-117764">original article</a>.</p>

With Russia expanding its interests in Africa, can it serve as an alternative to the US and China?

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<p>The flow of investments across Africa and Russia is expected to receive a boost with the Russia- Africa investment forum, set to hold in November as investors look to a re-engagement platform that will spur gains, Muda Yusuf, Director-General, LCCI joins CNBC Africa to analyse Africa&#8217;s benefits from the engagement.</p>


Russia’s re-engagement with Africa: What are the benefits?

<p>MOSCOW (Reuters) &#8211; Russia and the Central African Republic will sign an agreement on military cooperation on Tuesday, Russian Defence Minister Sergei Shoigu was quoted by Interfax news agency as saying.</p>
<p>Russia this year delivered light arms to the Central African Republic’s security forces and said it deployed 175 military and civilian instructors to train them.</p>
<p>Three Russian reporters were killed last month in the Central African Republic while investigating Russian mercenaries reportedly active in the country.</p>
<p>Reporting by Maria Kiselyova; Writing by Tom Balmforth; editing by John Stonestreet</p>


What you need to know about Russia’s military agreement with Central African Republic

<p><em>By Kyle Hulett, Sygnia’s Head of Asset Allocation</em></p>
<p>Over the past few days, the rand has weakened by 10%, the Russian rouble by 9% and the Turkish lira by a massive 26% relative to the US dollar. On a year to date basis the rand is down almost 11%. This broad emerging market contagion has affected equities as well, with the MSCI Emerging Market Index down 17% from its January peak. China’s Shanghai Composite Index entered a bear market in July, having fallen more than 20% from the January peak, a technical definition of a bear market, while Turkey has been in a bear market territory since May.</p>
<p>In US dollar terms equity markets in Brazil, Russia, South Africa and Nigeria markets followed the others on Friday. The rand has also broken through the psychologically important R14/US$ level.</p>
<p>The three main catalysts for the sudden acceleration of the sell-off in emerging markets have been US President Donald Trump’s tweet attacks on both Turkey and Russia, higher than expected US inflation numbers, as well as additional trade tariffs on China.</p>
<blockquote class="twitter-tweet" data-lang="en">
<p dir="ltr" lang="en">I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!</p>
<p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1027899286586109955?ref_src=twsrc%5Etfw">August 10, 2018</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br />
The lira fell as Trump doubled tariffs on Turkish imports of aluminium to 20% and steel to 50%.</p>
<p>The breakdown occurred after Turkey refused to release a detained US pastor, Andrew Brunson, who is on trial in Turkey on terrorism charges. Another explanation has to do with the fact that a prior fall in the lira has offset some of the effects of initial sanction levels. Turkish President Recep Erdogan further unnerved investors by claiming that a shadowy “interest rate lobby” and Western credit ratings agencies are attempting to bring down Turkey’s economy.</p>
<p>European banks’ exposure to Turkey’s foreign debt and local operations are raising concerns of contagion risk.</p>
<p>The rouble tumbled to two-year lows after the US State Department indicated that it would impose new sanctions on Russia after determining that Moscow had used a nerve agent against a former Russian double agent, Sergei Skripal, and his daughter, Yulia, in Britain. The sanctions come into effect in three months if Moscow fails to allow on-site inspections and will include downgrading of diplomatic relations, suspending the state airline’s approval to fly to the US and cutting off nearly all exports and imports. Separate draft US legislation introduced last week proposes curbs on the operations of several state-owned Russian banks in the US and restrictions on their use of the US dollar. Russian Prime Minister Dmitry Medvedev said that these steps would be considered a declaration of economic war.</p>
<p>At the same time US core inflation rose at the fastest pace in 10 years in July, which means that the US Federal Reserve is likely to increase interest rates at a more rapid pace.</p>
<p>However, the negative economic impact of a sell-off of South African assets cannot be underestimated. A weaker rand makes imports more expensive, which means higher prices, including petrol prices, and higher inflation, always a negative for consumer spending. If inflation rises too high it is likely that we will see the return of higher interest rates as well.</p>


This is what you need to know about the sell-off of emerging market currencies

<p>JOHANNESBURG (Reuters) &#8211; South Africa’s rand slipped to six-week lows early on Friday and government bonds weakened sharply, as slides in the Russian rouble and Turkish lira combined with escalating global trade tensions to knock sentiment towards emerging market assets.</p>
<p>At 0637 GMT, the rand traded at 13.8125 per dollar, 0.86 percent weaker than its close on Thursday.</p>
<p>The currency had earlier in the session lost nearly 2 percent to 13.9500, it weakest since June 28, according to Thomson Reuters data.</p>
<p>At 16h31 CAT it was trading at 14.0951, weakening 2.92 per cent.</p>
<p>“The rand and other EM currencies on the back foot as sentiment sours,” Rand Merchant Bank analysts said in a note, adding that this was due to “geopolitical concerns and the negative impact of the U.S.-China trade spat on global growth.”</p>
<p>Analysts said Turkey’s lira and the Russian rouble were hit hardest in the sell-off.</p>
<p>Turkey’s lira hit a new record low against the U.S. dollar in early trade on Friday, as concerns over a widening rift with the United States persisted after a Turkish delegation returned from talks in Washington with no apparent solutions to the crisis. [EMRG/FRX]</p>
<p>U.S. President Donald Trump later on Friday said he had authorized higher tariffs on imports from Turkey, imposing a 20 percent duty on aluminium and 50 percent one on steel, as tensions mount between the two NATO allies over Ankara’s detention of an evangelical pastor and other diplomatic issues.</p>
<p>The rouble slid to two-year lows after Washington said it would impose fresh sanctions on Moscow.</p>
<p>In fixed income, the yield for South Africa’s benchmark 2026 bond was up 12 basis points to 8.805 percent.</p>
<p>Reporting by Olivia Kumwenda-Mtambo; Editing by Catherine Evans</p>


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