Russia hopes old alliances will help it forge new ties in Africa


  • English
  • Arabic

JOHANNESBURG // When Dmitry Medvedev, the Russian president, addressed reporters in Namibia part way through his African tour last week he made a candid admission. "I can tell you honestly that we are almost too late" to seek business deals on the resource-rich continent, he said. "We should have begun working with our African partners earlier."
His words demonstrate a remarkable geopolitical transformation since the days of the Cold War. Then Africa's loyalties - or at least allegiances - were divided between Washington and Moscow as the two superpowers played out their rivalry in a strategic competition for global influence, backing assorted dictatorships and with Beijing getting barely a look-in. Two decades after the fall of the Berlin Wall the picture is radically different. Now the contest is centred on access to Africa's vast mineral and petroleum assets, with China and the US by far the two biggest players.
One analyst estimated that since 1990 Russian investment in Africa has totalled US$300 million (Dh1.1 billion), with American inputs more than 100 times higher at $40bn and China even further ahead at more than $100bn. Even Brazil and India, the two other members of the BRIC grouping, have got in on the act. The most astonishing aspect of the shift is how Moscow has failed to capitalise, so to speak, on its decades of supporting nominally communist movements and governments, many of them still in power.
"The Russian Federation, like its predecessor the Soviet Union, has always held a very friendly position toward African nations," Mr Medvedev said. "We have always helped them in gaining their independence and fighting to create their own states. "Our ties remained continuous with many of them, representing decades of developing friendly relations," he added - a somewhat euphemistic description of, for instance, the brutal civil war in Angola, where for 30 years the Soviet- and Cuban-backed Popular Movement for the Liberation of Angola (MPLA) fought for dominance over Unita - the National Union for the Total Independence of Angola - which was supported by the US and apartheid South Africa.
Finally the MPLA won and in recent years Angola's oil boom has made it one of the fastest-growing economies in the world. It is now among China's biggest oil suppliers while trade between the country and Russia stood at a mere $76m in 2008. Mr Medvedev and the Russian firms that accompanied him on his trip to Egypt, Nigeria, Namibia and Angola - the longest to the continent by a Russian head of state for several years - are doing what they can to address the deficit, but they have an enormous distance to catch up.
In Nigeria, the Russian gas monopoly Gazprom and the national petroleum company agreed to a joint venture to invest $2.5bn in gasfield development. Deals were reached for telecommunications and dams in Angola, and to build a power plant in Namibia. Again, while Swapo (the South West Africa People's Organisation), now Namibia's ruling party, was backed by the Soviet Union during its long fight for independence from South Africa, trade between Russia and Namibia was a minuscule $6.4m last year.
"I don't think Russia's intent towards Africa has been as broad or as deep as China's," said Martyn Davies, the chief executive of Frontier Advisory, a South African consultancy that works on deals between Beijing and Africa. "There's no broad strategic plan as you could say the Chinese have. This is more a political statement. It's Russia following the lead of the Chinese and being opportunistic.
"When Hu Jintao comes he's got the cash to back up the rhetoric. With Medvedev I'm not so sure." Moscow had been preoccupied with its own region, eastern Europe and the former Soviet Union, in the past few years, he said. "With the BRICs [Brazil, Russia, India, China] into Africa, Russia is a small 'r' and China is a capital 'C'." The change in the strategic balance is the result of recent history, said David Zounmenou of the Institute for Strategic Studies in Pretoria.
"The end of the cold war simply saw a shift in many African countries in terms of leadership and ideological orientation, more pro-democracy, more market orientated." Governments that were once avowedly communist, such as Angola and Benin, were now anything but, he pointed out, and the disintegration of the Soviet Union itself was also a factor: "The relationship has completely disappeared or disintegrated. Now Russia is stepping in for what remains."
In the Cold War era African leaders had "played the game" between West and East very well, he said, with some, such as Siad Barre of Somalia, even switching their allegiance at times. But Moscow will struggle to return to the prominence it once had on the continent. "There little in common between the new face of Africa and what Russia can offer," Mr Zounmenou said. sberger@thenational.ae

If you go

The flights

Fly direct to London from the UAE with Etihad, Emirates, British Airways or Virgin Atlantic from about Dh2,500 return including taxes. 

The hotel

Rooms at the convenient and art-conscious Andaz London Liverpool Street cost from £167 (Dh800) per night including taxes.

The tour

The Shoreditch Street Art Tour costs from £15 (Dh73) per person for approximately three hours. 

Need to know

The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours. 

The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.

When to go: You can climb Kili at any time of year, but the best months to ascend  are  January-February and September-October.  Also good are July and August, if you’re tolerant of the colder weather that winter brings.

Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.

The biog

Favourite Quote: “Real victories are those that protect human life, not those that result from its destruction emerge from its ashes,” by The late king Hussain of Jordan.

Favourite Hobby: Writing and cooking

Favourite Book: The Prophet by Gibran Khalil Gibran

Our family matters legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

How Islam's view of posthumous transplant surgery changed

Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.

Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.

The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.

One school of thought viewed the removal of organs after death as equally impermissible.

That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.

OIL PLEDGE

At the start of Russia's invasion, IEA member countries held 1.5 billion barrels in public reserves and about 575 million barrels under obligations with industry, according to the agency's website. The two collective actions of the IEA this year of 62.7 million barrels, which was agreed on March 1, and this week's 120 million barrels amount to 9 per cent of total emergency reserves, it added.

If you go

The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at. 
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.   

History's medical milestones

1799 - First small pox vaccine administered

1846 - First public demonstration of anaesthesia in surgery

1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases

1895 - Discovery of x-rays

1923 - Heart valve surgery performed successfully for first time

1928 - Alexander Fleming discovers penicillin

1953 - Structure of DNA discovered

1952 - First organ transplant - a kidney - takes place 

1954 - Clinical trials of birth control pill

1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.

1998 - The first adult live-donor liver transplant is carried out

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Terror attacks in Paris, November 13, 2015

- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059