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Assessing Russia-African Relations, its Setbacks and the Existing Challenges

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By Kester Kenn Klomegah

Last November, an expert group headed by Sergei A. Karaganov, the Honorary Chairman of the Presidium, Council on Foreign and Defense Policy, presented its final 150 paged assessment policy report with some recommendations intended to improve and scale up the existing Russia’s influence in Africa. The report, put together by 25 academic researchers and experts, further indicated concrete pitfalls and setbacks in the policy implementation in Africa.

This latest policy report unreservedly criticized Russia’s policy towards Africa. It claimed that there have been inconsistencies in the policy implementation. It said that the policy strategy regarding Africa has to spell out and incorporate the development needs of African countries.

While the number of top-most and high-level meetings have increased, the share of substantive issues on the agenda often remains intangible and negligibly small. There are little definitive results from such meetings, which were to demonstrate, a large extent, the “demand for Russia” by Africa and its leaders. In addition, disorganized Russian-African lobbying combined with lack of “information hygiene” at all levels of public speaking were listed among the main flaws of Russia’s current Africa policy.

“In many cases and situations, ideas and intentions are often passed for results, and unapproved projects are announced as going ahead. Russia’s possibilities are overestimated both publicly and in closed negotiations. Worse is many projects announced at the top and high political levels have not been implemented,” according to the report presented in November.

Long before the historic Russia-Africa summit, at least during the past decade, several bilateral agreements between Russia and individual African countries were signed. Besides, memoranda of understanding, declaration of interests, pledges and promises dominated official speeches. On the other side, Russia is simply invisible in economic sectors in Africa, despite boasting of decades-old solid relations with the continent.

It has however attempting to transform the much boasted political relations into a more comprehensive and broad economic cooperation. Its economic footprints are not growing as expected. Interestingly, Russian authorities always acknowledge the enormous potentials and advantages Russia has, and at the same are puzzled by the comparatively high level of economic influence by other foreign players in Africa.

Russia has intensified efforts to strengthen political dialogue, including the exchange of visits at the top levels. Interaction between foreign ministries is expanding. During the year prior to the first Russia-African summit, 21 African foreign ministers visited Russia. According to the calculation with information made available officially at the website, Sergey Lavrov and his deputy Minister, Mikhail Bogdanov, have held talks with nearly 100 African politicians including ministers, deputies between January and September 2019. Bogdanov interacted with all African ambassadors in the Russian Federation. Russian ambassadors and staff are also at their posts inside Africa.

Russians like historical references. As always expected, they have nostalgic interest towards Africa, relying on the traditions of friendship and cooperation established back to the days of the political liberation struggle for freedom and independence and eager to use that as unifying factor. Soviet Union, in many respects, supported most of the countries during the decolonization of Africa.

The question being asked three decades after the collapse of the Soviet Union: What has noticeably changed between Russia and Africa? In answering this basic question, Lavrov acknowledged talking to students and staff at the Moscow State Institute of International Relations (MGIMO): “Africa is one of our priorities. Our political ties in particular are developing dynamically. But economic cooperation is not as far advanced as our political ties.”

According to Lavrov, the process of Russia returning to Africa is taking the form of intensifying political dialogue, which has always been at a strategic and friendly level, and now moving towards a vigorous economic cooperation. It is necessary to consolidate these trends and draw up plans for expanding consolidated partnerships with the African countries.

That however, just as the coronavirus pandemic subsided leading to the opening of air space and borders, a lined-up of African foreign ministers including Algeria, Chad, Djibouti, Egypt, Ethiopia, Guinea-Bissau, Libya, Mali, Nigeria, Sudan, Sierra Leone and Togo came, as always, for political consultations and dialogue.

The significance of diplomatic meetings and most possibly those to follow preceding the next Russia-Africa summit slated for 2022, Lavrov has always indicated in his introductory speeches –these visits are to review the status of the bilateral relations and prospects for their further development.

Russian and African experts have expressed their concern about official visits proliferating both ways, with little impact on the sustainable development currently needed by the majority of African countries. While some see official visits simply as diplomatic tourism, a number of the African leaders keep in mind how bilateral policies would help tackle key questions such as rising unemployment, healthcare problems, poor infrastructure and industrial development – how to turn Russia’s focus towards realizing the Sustainable Development Goals (SDGs).

Russia has shown interests in niche sectors such as nuclear power development, launching African satellites, and energy and mining projects. It has been seeking to exploit conventional gas and oil fields in Africa; part of its long-term energy strategy is to use Russian companies to create new streams of energy supply.

In terms of a strategic outlook and action on economic engagement, it is seriously lagging behind. Russia has long ago cut the “red-ribbon” marking the completion of an infrastructure project in Africa. With regard to other economic areas, it may have to identify wide range of sectors as with members of the European Union, China, the United States, India, the Gulf States and others.

Nevertheless, within the framework of the African Continental Free Trade (AfCFTA) that promises creating a single borderless market, it offers opportunities for localization, production and marketing of consumables throughout Africa. This should perhaps, be the strongest dimension of Russia’s dealings in Africa.

Currently, Russian trade is heavily concentrated in North Africa, especially with Algeria, Egypt, Tunisia and Morocco. Noticeably, in 2019 bilateral trade information from Russian Export Centre shows (trade statistics) that Russia’s relationship with North Africa is the most significant, US$17 billion of the aggregate total US$20 billion for the whole of Africa. President Vladimir Putin has asked that this trade figure be doubled, up to US$40 billion before the next summit planned for 2022.

In an interview with Steven Gruzd, Head of the African Governance and Diplomacy Programme at the South African Institute of International Affairs (SAIIA), he similarly noted that Africa is a busy geopolitical arena, with many players, both old and new, operating. Apart from EU countries, China and the US. There are players such as Iran, Turkey, Israel, the UAE, Japan and others. Russia has to compete against them, and distinctively remain focused its efforts. On the other side, Russia uses the rhetoric of anti-colonialism in its engagement with Africa, and that it is fighting neo-colonialism from the West, especially in relations with their former colonies. It sees France as a threat to its interests especially in Francophone West Africa, the Maghreb and the Sahel.

“I would largely agree that there is a divide between what has been pledged and promised at high-level meetings and summits, compared to what has actually materialized on the ground. There is more talk than action, and mere  intentions and ideas have been officially presented as initiatives already in progress. There needs to be a lot of tangible progress on the ground for the second summit to show impact. It will be interesting to see what has been concretely achieved in reports at the second Russia-Africa summit scheduled for late 2022,” he distinctively argued.

Steven Gruzd also heads the Russia-Africa Research Programme initiated this year at SAIIA, South Africa’s premier research institute on international issues. It is an independent, non-government think tank, with a long and proud history of providing thought leadership in Africa.

In another discussion, George Nyongesa, a Senior Associate at the Africa Policy Institute in Nairobi (Kenya) reminded that Africa is heading for its defining moments. By 2050, a quarter of the world’s population especially its young people and thus the largest labor force will be in Africa.

Human capital is definitely an important feature of Africa’s global profile besides its natural resources. Thus, it is no wonder that global players like the United States, Europeans and Asians are competing for influence, simultaneously investing and focusing on the youth, on the African continent. The competition for the control of the continent by global players is a geopolitical reality and by nature multidimensional: economic, education and training, and social; and brings to memory the rivalry of the Cold War era when the United States often treated African states as pawns or prizes rather than partners, according to Nyongesa.

However, 21st century Africa is different in the sense that African leaders seem aware of their windfall potential in human capital and resources and are no longer interested in patrons or protector and this new attitude has opened wide a range of partners necessary for the achievement of security and prosperity they seek.

During the discussion, he simply underlined the fact that “the continent is enjoying enviable attention as key global players from the United States, Europe and Asia continue to outfox each other. This can be seen from the fact that US retreat from its fight against violent extremism in Africa, allows Russia to fill in security gaps; hence the growing Russian military influence on the continent. At the same time, the United States expansion of trade and business in the continent is proving a constructive counter Chinese ever-increasing economic influence.”

There are still some challenges and persistent problems with perceptions. With economic engagement, Russia often interprets the influence of foreign players as neo-colonizers. In order to make successful economic inroads into Africa, Russia is signing agreements exchanging military weapons for mining concessions. It finds it expedient to militarize and deal with its competitor, as exemplified in Central African Republic, Guinea and Mali and in the Sahel-5 region.

Lipton Matthews, an American researcher and business analyst in recent discussions with this research writer about foreign players and the “scramble” for resources, he explained that the weak governance structures in Africa, the perception that China is colonizing Africa is a consequence of Africa’s history of defective governance. Though China through its infrastructural projects is presiding over the modernization of Africa, similar to what Europeans and Americans did in the developing world years ago.

On the other hand, he argued: “We must disabuse ourselves of the notion that colonialism is inherently exploitative. Most people would prefer sovereignty to colonial rule, but the truth is that colonial status does not impede economic growth and some colonies in Africa experienced faster growth during the colonial era. We should give greater priority to good governance than national sovereignty. It is better to be under the rule of benevolent colonizers than to be the subject of a dictator.”

In order to aid Africa, Russia should assist Africa in transitioning to a knowledge-based economy by promoting technology transfer agreements. Russians must also invest in more R&D collaborations with their African partners. This agreement will revolutionize Africa’s economy and a richer Africa is a positive for Russian investors. If Africa is properly managed, the continent should succeed with sustainable development and, to a considerable extent, attain an appreciable economic independence.

As far back in October 2018, before the start of the first Russia-SADC business forum, Stergomena Lawrence Tax, then Executive Secretary of SADC, explained an exclusive interview that Russia has a long history of bilateral engagements with the Southern African countries, which constitute the Southern African Development Community. 

On the other hand, for the past several years, it has not been that visible in the region as compared to China, India or Brazil. It is encouraging that, of late, Russia has positioned itself to be a major partner with Southern Africa and being part of the BRICS promotes engagement with the region. It has to move with concrete steps into such areas like agriculture, industrial production, high technology and transport.

In the interview, Stergomena shortlisted some of the southern Africa priorities that are also in line with SADC as indicated below:

  • Prospecting, mining, oil, construction and mining, purchasing gas, oil, uranium, and bauxite assets (Angola, Namibia and South Africa);
  • Construction of power facilities—hydroelectric power plants on the River Congo (Angola, Namibia and Zambia,) and nuclear power plants (South Africa);
  • Creating a floating nuclear power plant, and South African participation in the international project to build a nuclear enrichment centre in Russia;
  • Railway Construction (Angola);
  • Creation of Russian trade houses for the promotion and maintenance of Russian engineering products (South Africa).
  • Participation of Russian companies in the privatization of industrial assets, including those created with technical assistance from the former Soviet Union (Angola).

Stergomena further discussed questions relating to public diplomacy. Russia has all but overlooked or underestimated many aspects of it. These include cultural exchanges, scholarly visitors’ programmes, and of course, the use of media to cover and project issues on Africa from a Russian perspective.

These are instruments and aspects of public diplomacy, which would have the effect of reaching audiences on our continent and beyond and impacting positively on what Russia has to offer the world. In the same vein, this can be seen as a form of “soft power” as its aim is to appeal and attract partners rather than coerce them into a relationship of one form or the other, she in an emailed interview in October 2018.

There are the Intergovernmental Commissions on Economic, Scientific and Technical Cooperation and Trade fixed with African countries. There is the Russian Chamber of Commerce and Trade, the Moscow Chamber of Commerce and Trade. The Coordinating Committee for Economic Cooperation with African States established back in 2009.

According to historical documents, the Coordinating Committee for Economic Cooperation with African States was created at the initiative of the Chamber of Commerce and Industry of the Russian Federation and Vnesheconombank with the support of the Federation Council and the State Duma of the Federal Assembly of the Russian Federation. It has the support from the Ministry of Foreign Affairs, the Ministry of Economy and Trade, the Ministry of Natural Resources, as well as the Ministry of Higher Education and Science.

Within the framework of the joint declaration adopted at the first Russia-Africa Summit, the Ministry of Foreign Affairs of the Russian Federation established the Secretariat of the Russia-Africa Partnership Forum. The Secretariat of the Russia-Africa Partnership Forum also moved to create an Association of Economic Cooperation with African States (AECAS). Alexander Saltanov, former Deputy Minister of Foreign Affairs, is the Chairman of AECAS and feverishly stepping forward to advance significant issues of business cooperation between Russia and Africa.

The Secretariat of the Russia-Africa Partnership Forum has a useful structure, and its primary task is to find real opportunities for mutually beneficial cooperation and joint implementation of projects between Russian and African entrepreneurs. There are coordination, public and scientific councils operating under its roof. The Secretariat seems to coordinate and support some kind of public outreach initiatives from the civil society.

As most contemporary researchers do, they have offered additional strategic proposals and authorities have to bite on them to make the long-expected progress. It is a well-known and irreversible fact that Russia’s economic presence in Africa is significantly inferior in comparison to the top-ten key global players. It is time to overcome this yawning gap, use the existing structures to expeditiously operationalize the set goals and accelerate the economic return the continent.

Indeed, judging from the above discussions about the changing geopolitical relations, there are well-functioning structures and mechanisms to reap the benefits of a fully-fledged economic partnership and to achieve a more practical and comprehensive results expected from the new multifaceted relations between Russia and Africa.

By all purposes, the relationship requires a new approach, broad levels of interaction including the civil society to forge a new positive image and change public perceptions, and work consistently with the private sector for diversified corporate partnerships. Strategically speaking, Russia needs to adopt an agenda – rather than running on ad hoc basis – and it further needs an effective Action Plan, both the agenda and plan have to conform to African Union’s Agenda 2063 and the UN Development Goals 2030.


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BUSINESS & ECONOMY

IsDB President Advocates for Cultivating Entrepreneurial Leaders

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By Hafiz M. Ahmed

The 18th Global Islamic Finance Forum recently served as a prominent platform for discussions on advancing Islamic finance and fostering leadership in the entrepreneurial sector. During this notable event, the President of the Islamic Development Bank (IsDB) emphasized the critical need for nurturing entrepreneurial leaders to propel the growth of the Islamic finance industry. This blog post explores the insights shared by the IsDB President, the implications for the future of Islamic finance, and the strategies proposed to develop the next generation of leaders.

Key Highlights from the Forum

The Global Islamic Finance Forum, held annually, brings together experts, policymakers, and stakeholders from across the world to deliberate on the challenges and opportunities within Islamic finance. This year’s focus on entrepreneurial leadership underscores the sector’s evolution and its growing impact on global economies.

The IsDB President’s Vision

  1. Empowering Entrepreneurs. The IsDB President outlined a vision where empowerment and support for entrepreneurs are paramount. He highlighted the role of Islamic finance in providing ethical and sustainable funding options that align with the principles of Sharia law, offering a robust alternative to conventional financing methods.
  2. Education and Training. A significant part of the address was dedicated to the importance of education and specialized training in Islamic finance. The President called for enhanced educational programs that not only focus on the technical aspects of Islamic finance but also foster entrepreneurial thinking and leadership skills among students.
  3. Innovation in Financial Products. Recognizing the rapidly changing financial landscape, the call for innovation in designing financial products that meet the unique needs of modern businesses was emphasized. These innovations should aim to enhance accessibility, affordability, and suitability for diverse entrepreneurial ventures.
  4. Collaborative Efforts. The IsDB President advocated for increased collaboration between Islamic financial institutions and educational entities to create ecosystems that support and nurture future leaders. This collaboration is essential for developing a holistic environment where aspiring entrepreneurs can thrive.
  5. Supportive Policies: Lastly, the need for supportive governmental policies that facilitate the growth of Islamic finance was discussed. Such policies should encourage entrepreneurship, particularly in regions where access to financial services is limited.

Implications for the Future

The advocacy for entrepreneurial leaders in Islamic finance is timely, as the industry sees exponential growth and wider acceptance as a viable financial system globally. Cultivating leaders who not only understand the intricacies of Islamic finance but who are also capable of innovative thinking and ethical leadership is crucial for the sustainability and expansion of this sector.

Steps Forward

  • Integrating Leadership into Curriculum: Educational institutions offering courses in Islamic finance should integrate leadership training into their curricula.
  • Mentorship Programs: Establishing mentorship programs that connect experienced professionals in Islamic finance with emerging leaders.
  • Fostering Start-up Ecosystems: Creating supportive environments for start-ups within the Islamic financial framework can encourage practical learning and innovation.

Conclusion

The call by the IsDB President to nurture entrepreneurial leaders in Islamic finance is a step toward ensuring the sector’s robust growth and its contribution to global economic stability. By focusing on education, innovation, and supportive policies, the Islamic finance industry can look forward to a generation of leaders who are well-equipped to navigate the complexities of the modern financial world and who are committed to ethical and sustainable business practices. This vision not only enhances the profile of Islamic finance but also contributes to a more inclusive and balanced global financial ecosystem.


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Davos Really Comes to the Desert as the WEF Arrives in Riyadh

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By Frank Kane

The World Economic Forum’s “Special Meeting” got off to a comparatively low-key start in Riyadh on Sunday – the first time Saudi Arabia has staged a full-blown WEF event after a few years of dancing around issues on both sides. Would the security-conscious Saudis allow the “men from Switzerland” the freedom to organise potentially controversial discussions with the abandon they sometimes display in Davos?

Would the Swiss be sufficiently aware of the red lines in the kingdom, all the more vivid in times of heightened regional geopolitical tensions?On the evidence of Day 1, there was sufficient give-and-take on both sides to produce a valuable and thought-provoking addition to the global forums circuit – even if it lacked some of the pizzazz of the Future Investment Initiative gathering known as “Davos in the desert” and the anarchic round-the-clock buzz of the WEF’s annual meeting in the Swiss Alps.

It was certainly smaller and less crowded than the other two events. The Saudi Royal Guard, who assumed responsibility for security at the Ritz-Carlton conference complex, ensured an orderly event, although some members of the international media had difficulty getting the necessary security clearance.

The theme of the two-day forum is “global collaboration, growth and energy for development”, which is a neat way of encapsulating the biggest issue of the day in global economic and politics: will geopolitics derail progress on climate change and economic development?

Saudi Arabia – at the cockpit of those tensions in the Middle East and a leading energy exporter – is the perfect place to consider the question. Mohammed Al Jadaan, the Saudi finance minister, set the tone in an early panel session with the grave warning that ”geopolitical risks are possibly the No 1 risk as you look at the global economy” and urged “agility” by policymakers to head off the threat.

Kristalina Georgieva, managing director of the International Monetary Fund, which is due to open a regional office in Riyadh, hammered home that message in a neat bit of alliteration: “We may end up with this decade being remembered as the Turbulent Twenties, or the Tepid Twenties, when what we actually want is the Transformational Twenties.”

The first of many “elephants in the room” – the risk of confrontation between Israel and Iran arising from the conflict in Gaza – was recognised when Mahmoud Abbas, the Palestinian president, arrived at the opening plenary session. No stranger to the Davos circuit, Abbas repeated his call for the US to push for a two-state solution, saying it was the only way to end the conflict. “Only they can do it,” he declared.

Kristalina Georgieva, IMF managing director, told the forum the decade should be remembered as ‘the Transformational Twenties’ Most of the WEF’s overarching themes came together in the first big set-piece devoted to energy. The session was called “People, policy, finance: realising an equitable energy transition” – and there were elephants aplenty in the chandeliered cavern of the plenary hall.

The hydrocarbon giants were well represented by Prince Abdulaziz bin Salman, Saudi Arabia’s energy minister, and his Qatari counterpart Saad Al Kaabi, as well as Darren Woods and Vicki Hollub, CEOs of ExxonMobil and Occidental, respectively. You had to feel sorry for Kadri Simson, the Estonian politician and EU energy commissioner, as she pitched a decidedly different view from her co-panellists. But Børge Brende, the WEF president and the session’s moderator, did his best to even up the odds. It was a clash between those destined for either “hydrocarbon hell or green heaven” – in the unattributable sarcasm of one senior energy policymaker – and though the debate stayed within civilised bounds, it had its moments.

Al Kaabi accused the environmental lobby of “demonising oil and gas for decades”; Woods called for an end to the “propaganda and politics”. The panel became heated when it came to the issue of what was the real “elephant in the room”. Was it coal? Or the cost of energy transition? Or subsidies for fossil fuels? Prince Abdulaziz cut through the rhetoric with the announcement that he had detected the “camel in the room”: the fact that the campaign against climate change cannot be waged within national boundaries, but has to be global.

Towards the end of the day a frisson went through the forum as it was whispered that Crown Prince Mohammed bin Salman, Saudi Arabia’s prime minister and the patron of the event, was on his way. He duly arrived, oversaw a private meeting of forum dignitaries and departed, with much security fanfare.

At the end of Day 1, I was just a little underwhelmed. The clinical Swiss lines of the WEF signage did not quite gel with the Arabic splendour of the King Abdulaziz International Conference Centre. I’m sure it just needs time.

Frank Kane is Editor-at-Large of AGBI and an award-winning business journalist. He acts as a consultant to the Ministry of Energy of Saudi Arabia and is a media adviser to First Abu Dhabi Bank of the UAE


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Dangote, Air Peace and the Patriotism of Capital

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By Chidi Amuta

Money is perhaps a homeless vagrant. It has no nationality or permanent homestead in real terms. It goes and stays only where its masters are wise, prudent and far sighted. But in a world dominated by nations and their interests, real money is first a national asset and tool of governance and sovereign assertion. When money thus becomes a source of power, the nation whose flag the conquering company flies shows up to claim its own. Apple, Microsoft, Tesla, Coca Cola are synonymous with America. It is not because every American can walk off with a can of Coke from the supermarket without paying for it but because somewhere along the way, brand and nation have become fused and interchangeable. Every successful Business may aspire to an international identity but when the chips are down, every successful business needs to be anchored first on a specific sense of sovereign belonging. Ultimately, then, the companies to which sovereign wealth is usually ascribed have a final responsibility to that nation or sovereignty in times of trouble or goodness.

Make no mistake about it. Businesses are in business to succeed as businesses. To succeed as a business is to make tons of profit and invest in even more business and wealth creation. Sensible companies do not always overtly toe the government’s line. They instead buy into the hearts and minds of the citizens through the products they  offer and how friendly their prices are.

Two Nigerian brands have recently stepped forward to identify with the citizens of our country in this moment of grave challenge and desperate self -inflicted hardship. Dangote and Air Peace are now on record as having risen to use their products, brand presence and pricing strategies to identify with and ameliorate some of the harrowing difficulties that Nigerians are currently going through.

The worst moments of our present economic travail may not be over just yet. The epidemic of hunger still looms over the land. Innocent people are still being trampled to needless death at palliative food centers. Some are getting squeezed to death while scrambling for tiny free cash. Inflation figures just got even worse at over 33.4%. Those who fled the country in awe of rampaging hardship have not yet started returning or regretting their decisions to flee. Most Nigerians, rich and poor alike, are still needing to be convinced that the curse of recent hopelessness can be reversed any time soon.

Yet out of the darkness and gloom that now pervades our national mood, a tinge of sweetness has begun to seep into the air. The exchange rate of the Naira to major currencies has begun heading south. The dollar, which at the worst moments in recent times exchanged for as low as N2, 300 to a US dollar, has climbed up in value. As at the time of this writing, a little over N1,000 can fetch you the same miserable US dollar. That may not sound like paradise yet since it is still worse than the worst of the Daura emperor. Most Nigerians are praying that Tinubu should minimally take us back to the Buhari days in terms of the exchange rate and relative food security. We are still far from there.

What has Dangote got to do with it all? The removal of fuel subsidy had unleashed an astronomical hike in energy and fuel prices. While motorists and transporters wept and wailed at the gas stations, the price of nearly everything else went through the roof. Since public power supply remains as epileptic or absent as in the 1970s or worse, we have been living in a virtual generator republic that is dependent on diesel and petrol generators. The price of diesel in particular jumped through the roof. Industrial production suffered just as transportation and haulage costs became unbearable. Every high cost was passed down to the suffocating hapless citizens.

Fortuitously, the gigantic Dangote refinery complex was coming on stream in a time of great difficulty.  Somehow, the hope was alive that the Dangote refinery would come on stream with a bit of good news on the pricing of gasoline and diesel. But no one knew for sure what Mr. Dangote’s cost accountants had in stock especially with the devilish exchange rate that reigned in the first nine months of the Tinubu tenure.

Energy and fuel prices were off the roof. A liter of diesel went for as high as N1,650 in some places. Gasoline was not any better. Those who wanted to keep their homes powered from generators needed troves of cash to procure diesel whose prices kept going up as the dollar exchange rate escalated. Factories fared worse.

Refreshingly, Mr. Aliko Dangote whose mega billion dollar refinery in Lagos has just started producing petroleum products has a bit of good news for all Nigerians. He has reduced the price of diesel from the mountain pe58% to a more considerate N1,000 per liter, nearly a 58% reduction in price in less than a week. The prospect is good that when his gasoline products begin to flow through the pumps. Mr. Dangote may have even better news at the gas stations. Along with his fellow cement oligarchs had promised to deliver cement to Nigerians at a more friendly price. The full benefit of that promise is still a long way away.

It needs to be said in fairness to Dangote as a brand that more than any other single company in Nigeria, it has invested in the things that touch the lives of the people most immediately. Sugar, salt, fertilizer, tomato puree, fruit juices, cement and now petroleum products. No other single Nigerian brand can boast of a wider and more expansive range of socially relevant products than Dangote.

In direct response to the prevailing hunger and hardship in the land, Mr. Dangote has himself stepped forward to provide millions of bags of rice and other food items to Nigerians across the length and breadth of the country as humanitarian palliatives. In terms of the human face of capitalism, Dangote would seem to have perfected an enlightened self interest above his peers.

Just when life was about to gradually grind to a halt, a bit of good news has come from unusual quarters. In a nation that has grown dependent on a feeding bottle tied to the beast of external suppliers of everything from tooth picks to civilized coffee, the belief persisted that all good news can only come from abroad. Nigerians could only hope to enjoy more friendly prices for the things that make them happy if our foreign partners changed their mind. Not any more. It requires pointing out that the Nigerian spirit is too expansive to be bottled up within our borders just because air tickets are unaffordable. The urban- based Nigerian wants to go abroad for business, on holidays or just to flex!

At the worst of the recent moments, a return Economy Class ticket to nearby London sold for as much as N3.8m-N4million. Major international airlines insisted that the Central Bank had seized and was sitting on their dollar ticket sales proceeds. They needed to keep the high fares to hedge against the uncertainties that were everywhere in the Nigerian air. Nigerian travellers were being punished for the bad fortunes of their national currency and the untidy book keeping habits of the Central Bank.

Almost from nowhere, Nigeria’s largest international airline, Air Peace, announced a low fare flight into London’s Gatwick Airport. The airport itself is also owned by a Nigerian businessman. The fares were unbelievably low, as low as N1.2 million in some cases against the exploitative fares of all the major foreign airlines plying that route. Unbelievably, Air Peace pulled off the London Gatwick  deal with quite a bit of fanfare and patriotic noise making that set the foreign competitors scampering back to the drawing board. Air Peace floated the Gatwick fare reduction as a patriotic act, more like social responsibility to fellow Nigerians than the plain business sense which is what it really is. It was a drive for volume in a market of low volume driven by high fares.

To drive home the patriotic edge of its revival of international flights, Air Peace rebranded its crew and adorned its senior cabin crew with uniforms that featured the traditional Igbo “Isi Agu” motif. For those who are hard at hearing, the Isi Agu motif on Nigerian traditional outfits is of Igbo ancestry just as the Aso Oke, Adire and Babanriga are South Western Yoruba and Northern Hausa-Fulani respectively. A Nigerian airline intent on striking a recognizable indigenous resonance and identity could adapt any combination of these traditional dress motifs to drive home its original and national identity. The isi Agu features a series of lion heads, obviously severed at a moment of unusual valor. To go on a hunt and successfully kill and decapitate a lion is an undisputed symbol or infact a metaphor for unusual valour and heroism among the Igbo. Therefore the choice of that motif by Air Peace in its new cabin outfit is in fact a modern statement on the unusual heights to which Nigerian enterprise can rise if inspired by a patriotic commitment to national greatness. The Isi Agu is therefore Nigerian national heroism captured in an outfit.

In their recent pricing strategies, neither Dangote nor Air Peace has acted out of pure charity or patriotic feeling. Both are reacting to the pressure of latent demand in a market where the purchasing power has been depressed by economic difficulty brought about by government policy and political exigencies. Yet each of them is intent on being seen as acting out of altruistic patriotic motives. That may be true in the short term.

For every liter of diesel sold, Dangote is saving the Nigerian consumer 60% of the current market price. A savings of 60% is a lot for households and businesses. Similarly, for every Economy Class ticket sold by Air Peace on the London route, the average Nigerian traveller gets to save between N1.3million-N1.6 million. That is an awful lot of relief which travellers can apply to other competing needs in these hard times. No one can deny that these are direct savings and benefits that accrue directly to Nigerian citizens. To that extent, both Dangote and Air Peace can be said to be applying their capital to serve a patriotic end.

It is common capitalist gimmick for companies to apply a percentage of their profit to pursue communally beneficial ends in their territory of operation. Oil companies build schools, hospitals, libraries and other socially beneficial infrastructure in their catchment localities. In normal corporate parlance, that only qualifies as Corporate Social Responsibility (CSR) or targeted social beneficence.

But Dangote and Air Peace are doing something a bit more far reaching. They are shedding handsome percentages of their revenue and therefore profit to fellow Nigerians at a time when such savings are desperately needed and deeply appreciated. That is an instance of capitalism serving a patriotic end over and above its statutory tax obligations to the government. This should be commended.

It does not, however, make these companies any less rapacious as capitalist ventures than any others. They may in fact be investing in better times and bigger profits when the bad days are over. They are investing in the goodwill of the market and therefore deepening their brand penetration and mass sympathy. These are strategies which are far sighted marketing ploys that dig deep into the hearts and minds of generations of consumers.

Ultimately, every capitalist is like a cat; selfish with nine lives and prone to inherent cunning. But, as former Chinese leader Deng Zao Ping said when embracing the free market for his long standing communist nation: “A cat is a cat. It does not matter whether it is a black cat or a white cat. For as long as it catches mice, it is a good cat.”

Dr. Amuta, a Nigerian journalist, intellectual and literary critic, was previously a senior lecturer in literature and communications at the universities of Ife and Port Harcourt.


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