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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

Trump’s Tariff Tsunami: A Global Economic Earthquake with Far-Reaching Implications

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Baba Yunus Muhammad

Washington, D.C. – Long before his 2024 re-election campaign, Donald J. Trump had been an unrelenting advocate for protectionist trade policies. His views on tariffs, long cast as a pillar of his economic nationalism, have now crystallized into a sweeping policy agenda with the potential to reshape the global economic order. Last Wednesday, President Trump took to the White House lawn, brandishing an oversized chart, to announce the most aggressive tariff regime in modern U.S. history—a unilateral 10% blanket tariff on virtually all imported goods, complemented by so-called “reciprocal” tariffs targeting countries he accuses of exploiting the United States.

The move has not just rattled America’s trading partners, it has sent shockwaves through the entire global economy. Financial markets plunged, manufacturing sectors braced for retaliation, and policymakers around the world scrambled to assess the fallout. But what lies behind this bold—and, some argue, reckless—push for economic decoupling? And what does it mean for the Islamic world and emerging markets?

Economic Nationalism Reborn

Trump’s tariff blitz is the fullest expression yet of his “America First” economic philosophy—an ideological throwback to a 1950s-era America that dominated global manufacturing in the wake of World War II. According to economic historian Dr. Alan Scott, this nostalgia is at the heart of Trump’s thinking. “The U.S. was uniquely advantaged during that period—Europe and Japan were devastated, and America had a virtual monopoly on industrial output,” he says. “That era cannot be recreated.”

Nonetheless, Trump’s rhetoric is anchored in the belief that aggressive tariffs will resuscitate America’s industrial base, revitalize blue-collar employment, and address the inequalities wrought by decades of globalization. Whether those goals are achievable—or even realistic—is highly contested.

The Global Repercussions: Allies and Adversaries in the Crosshairs

The effects of the new tariffs are global in scope. China, the U.S.’s main strategic rival, faces an unprecedented 54% total levy on its exports to the United States. Beijing has already vowed retaliatory action. Traditional allies have not fared much better: the European Union is now subject to a 20% tariff; the United Kingdom, 10%; and Japan, despite pledging $1 trillion in U.S. investments, is hit with a 24% tariff.

Notably, Canada and Mexico have been spared—at least temporarily—though they too have been locked in past trade disputes with the Trump administration. For the Islamic world and Global South, the stakes are even higher. Several of the world’s poorest and most trade-dependent countries have been targeted with tariffs as high as 50%. These include Cambodia, Laos, Madagascar, Vietnam, Myanmar—and critically, Muslim-majority nations such as Pakistan and Indonesia are watching with deep concern, given their heavy reliance on U.S. markets for textiles, apparel, and electronics.

A Blow to the Global South

Among the most worrying elements of the policy is its potential impact on least-developed and low-income countries. Nations like Lesotho and Cambodia—already reeling from reduced U.S. development assistance—now face steep tariffs on their exports. For smaller Islamic economies trying to escape the middle-income trap or build industrial bases, this could be economically devastating.

“Tariffs of this magnitude will not just curb growth, they could collapse entire industries,” warns Dr. Aisha Rahman, an economist with the Islamic Development Bank. “Many of these countries have benefited from preferential trade terms. Now, they risk being crowded out of global markets just when they are beginning to integrate.”

There is also the risk that products originally intended for the U.S. market could be dumped in Europe, Africa, and Southeast Asia, creating new competitive pressures for local businesses.

Inflation, Uncertainty, and the U.S. Backlash

Domestically, the response has been fraught with anxiety. Wall Street has registered its displeasure with sharp declines: the Nasdaq dropped 6%, the S&P 500 fell 4.8%, and the Dow slid 3.9%. The U.S. dollar weakened, oil prices plummeted, and the bond market reflected growing fears of a recession.

Analysts warn of rising inflation and unemployment. A study by the Wall Street Journal projects that if the tariffs remain, inflation could spike to 4.4% by year-end, with unemployment hitting 5.5%. This economic strain would disproportionately impact low-income households—precisely those whom Trump claims to champion.

Even within Trump’s own party, unease is growing. While Vice President JD Vance dismissed the market reaction as overblown, some Republican lawmakers are beginning to break ranks, concerned that the long-term economic costs will outweigh any short-term political gains.

Can the Islamic World Respond Strategically?

For Muslim-majority countries—particularly those striving to expand manufacturing and export-led growth—Trump’s new trade regime presents both a challenge and an opportunity. On one hand, increased U.S. protectionism may shut the door on critical export markets. On the other, it could accelerate South-South trade partnerships, regional economic blocs, and Islamic finance-led industrial investment.

Dr. Omar El-Zein, trade advisor to the OIC, argues that “the Islamic world must now pursue intra-OIC trade more seriously than ever before. If the West turns inward, we must turn to one another.”

Indeed, in an era where multilateralism is being tested and global supply chains are being restructured, there is a chance to forge new trade alignments rooted in mutual benefit, Islamic economic values, and strategic autonomy.

Conclusion: Between Ideology and Impact

President Trump’s tariffs are not merely a set of economic instruments—they are a declaration of ideological war on the globalized economic consensus. While they may serve a symbolic political purpose in the U.S., their real-world impact will be felt far beyond its borders—in factories in Bangladesh, in textile mills in Egypt, and in rice fields in Indonesia.

The Islamic world, already grappling with structural development challenges, must now brace for a more hostile and unpredictable global trading environment. Whether it chooses to respond with disunity or collective resolve may well define its economic future.

Baba Yunus Muhammad is President, Africa Islamic Economic Forum, Ghana


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How Africa’s Largest Economy Lost 50% of Its GDP

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In 2014, Nigeria stood atop Africa’s economic podium, its GDP recalibrated to $510 billion, a figure that cemented its status as the continent’s largest economy. Oil wealth, a burgeoning tech scene, and a population of 220 million fuelled ambitions of global ascendancy. Yet, a decade later, that triumph has unravelled: GDP has halved to $253 billion by 2024, a stark testament to structural frailties and external blows. Inflation has surged to 33.95%, poverty ensnares 46% of the populace, and youth unemployment festers at 40%. This is no mere statistical blip—it is a crisis demanding urgent reckoning. But Nigeria’s story need not end in decline. Beneath the rubble lies a nation poised for resurgence, armed with vast resources, a dynamic workforce, and nascent reforms. The path to recovery is arduous yet attainable. Here, we dissect the collapse and chart a credible blueprint for Nigeria to reclaim its mantle as Africa’s economic powerhouse.

The descent began with oil, the artery of Nigeria’s economy. From 2000 to 2014, annual GDP growth averaged 7%, peaking at $568 billion, propelled by crude prices that topped $115 per barrel. Oil constituted 90% of exports and 70% of government revenue, per the National Bureau of Statistics (NBS). But the 2014 price crash to $50 per barrel exposed a fatal dependency. By 2023, production slumped to 1.28 million barrels per day (mbpd)—below the OPEC quota of 1.5 mbpd—haemorrhaging $10 billion annually to theft, according to the Nigerian National Petroleum Corporation (NNPC). Foreign exchange reserves dwindled from $38 billion in 2019 to $33 billion in 2023, per the Central Bank of Nigeria (CBN), as oil receipts faltered. This overreliance has left Nigeria vulnerable, yet it also signals an overdue pivot to diversification.

Structural deficiencies run deep. Agriculture, employing 45% of Nigerians, contributes just 25% to GDP, its productivity stymied—maize yields average 1.8 tons per hectare against a global norm of 5 tons, per the Food and Agriculture Organization (FAO). Manufacturing, now 9% of GDP in 2023, down from 9.5% in 2015, is throttled by electricity shortages costing businesses $29 billion yearly, per the World Bank. Nigeria generates a paltry 4,000 megawatts for 220 million people, compared to South Africa’s 58,000 MW for 60 million. Import reliance—$2.13 billion spent on wheat, rice, and sugar in 2023, per the African Development Bank (AfDB)—drains reserves, a vulnerability magnified by a 40% wheat price surge following Russia’s invasion of Ukraine. These are not insurmountable flaws; they are clarion calls for reform.

Monetary policy missteps exacerbated the malaise. The CBN’s artificial naira peg at 305 to the dollar until 2023 depleted reserves and spawned a parallel market where rates hit 1,600 by 2024. Post-devaluation, the currency lost 70% of its value, per IMF estimates, driving inflation to 33.95% in May 2024—food inflation reached 40%, per the NBS. A 50kg bag of rice, a staple, soared from ₦25,000 in 2022 to ₦80,000 in 2024, punishing households where 46% live below $1.90 daily, per the World Bank. Public debt escalated to 46% of GDP in 2023, with 89% of budgeted deficits financed through borrowing, per PwC’s 2024 analysis. This fiscal strain is severe, but it is not irreparable—policy agility can stem the tide.

Corruption and insecurity have exacted a punishing toll. Oil theft, at 400,000 barrels daily in 2022, costs $10 billion annually, while Nigeria languishes at 145 out of 180 on Transparency International’s Corruption Perceptions Index. Customs inefficiencies at Apapa Port siphon $4 billion yearly, per the Economic and Financial Crimes Commission (EFCC). In the northeast, Boko Haram’s insurgency has inflicted $100 billion in economic losses since 2009, per estimates, slashing agricultural output by 20%. Banditry and separatist unrest further erode stability. External shocks—COVID-19’s 6.1% GDP contraction in Q2 2020, per the IMF, and Ukraine-driven fuel price hikes (petrol to ₦671 per litre in 2023, per the AfDB)—have compounded the damage. Yet, these challenges, while daunting, are not destiny.

The GDP’s 50% plunge is partly a statistical artefact. The 2014 rebasing inflated it by 89%, but naira devaluation reversed dollar-based gains. In purchasing power parity (PPP), Nigeria’s economy stood at $1.2 trillion in 2023, per the IMF, among Africa’s top three. Still, the human cost is stark: 63% of Nigerians—133 million—face multidimensional poverty, per the NBS, with 10.5 million children out of school, the world’s highest. Youth unemployment, at 40% in 2023, drives the “Japa” exodus—5,000 doctors emigrated in 2022, per the Nigerian Medical Association. Small and medium enterprises (SMEs), comprising 96% of businesses and 84% of jobs, per The Business Year 2024, access just 5% of bank loans. These figures are sobering, but they underscore a latent capacity yearning for activation.

Nigeria’s fundamentals remain compelling. Its tech sector—epitomised by Flutterwave and Paystack—secured $1.8 billion in venture capital in 2023, per TechCabal, with annual growth of 30% since 2020. Agriculture spans 70 million arable hectares, a resource base that slashed rice imports by 40% since 2015, per the AfDB. The Dangote Refinery, operational since 2024 with 650,000 barrels daily, promises $5 billion in annual forex savings. A population projected to reach 428 million by 2050, per UN estimates, offers an unrivalled market. Nigeria’s economic reset hinges on harnessing these strengths through decisive, pragmatic measures. Below are the critical steps to restore and elevate this giant.

Diversification must be the cornerstone. Agriculture, with targeted investment, could generate $100 billion annually. Mechanisation—raising tractor density from 1 per 100 farmers to 10, as in Kenya, per the FAO—could double yields within five years. Nigeria’s 60% share of global cassava production, currently worth $1.5 billion, could reach $5 billion with processing plants, per UNCTAD projections. Leveraging the $2 trillion global halal market, where demand grows 6% annually, per the Halal Trade Expo, is a natural fit—northern Nigeria’s 100 million Muslims could supply certified meat to the Gulf, mirroring Malaysia’s $12 billion halal export success. A $500 million fund for irrigation and agro-industrial zones, coupled with 10-year tax holidays, could catalyse this shift, emulating Ghana’s Planting for Food initiative, which tripled rice output since 2017.

Energy reform is non-negotiable. Nigeria’s $29 billion annual power deficit demands a 10,000 MW boost by 2030—solar farms in the sun-drenched north, harnessing 300 days of sunlight, could deliver half, drawing on Kenya’s $1 billion renewable model that electrified 70% of rural areas. Private investment, as demonstrated by Dangote’s $19 billion refinery, could bridge the $190 billion energy gap, per UNCTAD estimates, if paired with grid upgrades slashing 40% transmission losses, per the World Bank. Reliable power would revive manufacturing, lifting its GDP share to 15% within a decade and unlocking export potential under the African Continental Free Trade Area (AfCFTA).

Corruption requires surgical intervention. Digitising oil flows, as Norway does with real-time tracking, could recover $10 billion yearly, per NNPC data. E-governance—online tax and procurement platforms—could save $2 billion in leakages, per EFCC projections, while a robust anti-graft framework with independent audits and whistleblower protections rebuilds credibility. Foreign direct investment, which fell 33% to $3.3 billion in 2023, per UNCTAD, would rebound as opacity fades.

SMEs, the economy’s backbone, need oxygen. A $1 billion loan guarantee scheme, akin to South Africa’s SME Fund that created 30,000 jobs since 2019, could unlock $10 billion in credit, addressing the 5% lending gap. Vocational training for 1 million entrepreneurs annually—mirroring Rwanda’s 7% youth unemployment drop—enhances competitiveness. Linking SMEs to AfCFTA’s $3.4 trillion market via export hubs could elevate intra-African trade from 16% to 30%, per AfDB targets.

Human capital is the linchpin. Raising education spending to 15% of the budget—$10 billion—could build 10,000 schools, per UNESCO benchmarks, halving the 10.5 million out-of-school figure. Technical institutes, like Ghana’s, could train 500,000 youths yearly, cutting unemployment by 5%. Healthcare demands $1 billion for 1,000 mobile clinics, reaching 20 million rural residents and staunching medical brain drain—India’s model reduced infant mortality 30%. A skilled, healthy workforce is Nigeria’s competitive edge.

Infrastructure must match ambition. A $15 billion overhaul—bolstered by the AfDB’s $1.44 billion 2024 commitment—could halve logistics costs, currently $1 billion yearly. Rail links, like Ethiopia’s $4 billion Addis-Djibouti line, and port digitisation, as at Morocco’s Tanger Med, would expedite trade, positioning Nigeria as an AfCFTA hub. The naira’s flotation and $10 billion subsidy savings, per PwC, are steps forward; execution must be relentless.

Nigeria’s 50% GDP drop is a jolt, not a death knell. Its $1 trillion nominal GDP potential by 2050, per PwC, is within reach if these measures take root. Investors should note: a market of 220 million, with tech growing 30% annually, offers outsized returns despite risks. Policymakers must act—133 million in poverty brook no delay. Nigeria can lead Africa anew, its resilience forged in adversity. The question is not if, but how swiftly, it seizes this moment.


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What is the Role of Bosnia in Strengthening Halal Supply Chains in Europe?

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Imagine walking into a supermarket in Paris, Berlin, or London, scanning the shelves for halal-certified products. You pick up a pack of chicken, a bottle of olive oil, and a box of cookies, all bearing the halal logo. But have you ever wondered how these products made it to the shelf? Behind every halal-certified item lies a complex supply chain that ensures its authenticity, safety, and compliance with Islamic principles. In Europe, where the demand for halal products is growing rapidly, building a reliable and transparent halal supply chain is no small feat. Enter Bosnia and Herzegovina, a country that has emerged as a key player in strengthening halal supply chains across the continent.

With its deep-rooted Islamic heritage, cutting-edge certification processes, and collaborative approach, Bosnia is setting a new standard for halal integrity in Europe. This article explores Bosnia’s pivotal role in creating a robust halal supply chain, its collaborations with other halal-certified organizations, and why its efforts matter for businesses and consumers alike.

The Growing Demand for Halal Products in Europe

Europe is home to over 25 million Muslims, a number that is expected to grow in the coming years. This demographic shift has fueled a surge in demand for halal products, from food and beverages to cosmetics and pharmaceuticals. According to a report by Statista, the European halal food market alone is projected to reach $30 billion by 2025. However, meeting this demand is not without its challenges.

One of the biggest hurdles is ensuring the integrity of the halal supply chain. From farm to fork, every step of the process must adhere to strict halal standards. This includes sourcing halal-certified raw materials, using compliant processing methods, and maintaining transparency throughout the supply chain. For businesses, this requires a high level of coordination and expertise—something that Bosnia has mastered.

Bosnia’s Expertise in Halal Certification: A Foundation for Trust

Bosnia and Herzegovina has long been a leader in the global halal industry, thanks in large part to its Agency for Halal Quality Certification (AHQC). Established in 2007, the AHQC is renowned for its rigorous standards and transparent processes. But Bosnia’s contribution to the halal industry goes beyond certification; it plays a critical role in strengthening halal supply chains across Europe.

Here’s how Bosnia is making a difference:

  1. Setting Rigorous Standards: The AHQC’s certification process is one of the most stringent in the world. It covers every stage of production, from sourcing raw materials to packaging and distribution. This ensures that products bearing the Bosnia Halal Certification logo meet the highest standards of quality and compliance.
  2. Promoting Transparency: Transparency is at the heart of Bosnia’s approach to halal certification. The AHQC requires detailed documentation and conducts regular audits to ensure ongoing compliance. This level of transparency builds trust among consumers and businesses alike.
  3. Leveraging Technology: Bosnia is at the forefront of using technology to enhance halal supply chains. From blockchain to track and trace systems, the country is leveraging innovative solutions to ensure the integrity of halal products.

Collaborations: The Key to a Stronger Halal Supply Chain

Bosnia’s success in strengthening halal supply chains is not a solo effort. It is the result of strategic collaborations with other halal-certified organizations, businesses, and government bodies across Europe. These partnerships have been instrumental in creating a more reliable and transparent halal ecosystem.

  1. Partnerships with Halal-Certified Businesses: Bosnia works closely with businesses that are committed to halal integrity. By providing them with certification and guidance, the AHQC helps these companies navigate the complexities of the halal supply chain.
  2. Collaborations with International Halal Organizations: Bosnia is an active member of global halal organizations such as the AHAC – Association of halal Crttifiers. These collaborations ensure that Bosnia’s standards align with international best practices.
  3. Government Support: The Bosnian government has been a strong advocate for the halal industry, providing funding and support for initiatives that promote halal integrity. This has enabled the AHQC to expand its reach and impact.
  4. Educational Initiatives: Bosnia is also investing in education and training to raise awareness about halal standards. Through workshops, seminars, and publications, the AHQC is helping to build a more informed and skilled workforce.

Bosnia’s Impact on the European Halal Market

To understand the real-world impact of Bosnia’s efforts, let’s look at a case study. In 2020, a major European supermarket chain partnered with the AHQC to source halal-certified poultry products. The collaboration involved:

  • Sourcing: The AHQC worked with farmers and suppliers to ensure that the poultry was raised and processed in accordance with halal standards.
  • Certification: The AHQC certified the entire supply chain, from the farm to the supermarket shelf.
  • Transparency: The supermarket chain used blockchain technology to provide consumers with real-time information about the product’s journey.

The result? A 20% increase in sales of halal-certified poultry products within six months. This success story highlights the tangible benefits of Bosnia’s approach to halal supply chain management.

Why Bosnia’s Role Matters for Europe

Bosnia’s contributions to the halal industry have far-reaching implications for Europe. Here’s why:

  1. Consumer Confidence: By ensuring the integrity of halal supply chains, Bosnia is helping to build consumer confidence in halal-certified products. This is crucial in a market where trust is paramount.
  2. Economic Growth: The halal industry is a significant driver of economic growth. By strengthening halal supply chains, Bosnia is creating new opportunities for businesses and boosting the European economy.
  3. Cultural Integration: The halal industry plays a vital role in promoting cultural integration. By providing high-quality halal products, Bosnia is helping to meet the needs of Europe’s diverse population.
  4. Global Leadership: Bosnia’s expertise in halal certification and supply chain management positions it as a global leader in the industry. This not only enhances its reputation but also sets a benchmark for other countries to follow.

Challenges and the Way Forward

While Bosnia has made significant strides in strengthening halal supply chains, challenges remain. These include:

  • Standardization: Despite Bosnia’s efforts, there is still a lack of uniformity in halal standards across Europe. This can create confusion for businesses and consumers.
  • Fraud and Mislabeling: The rise of counterfeit halal products is a growing concern. Bosnia is addressing this issue through stricter regulations and advanced tracking technologies.
  • Awareness: Many consumers and businesses are still unaware of the importance of halal certification. Bosnia is tackling this through educational initiatives and outreach programs.

Looking ahead, Bosnia’s focus will be on fostering greater collaboration, leveraging technology, and raising awareness about halal standards. By doing so, it aims to create a more robust and transparent halal supply chain that benefits everyone.

Bosnia and Herzegovina has emerged as a beacon of reliability and transparency in the European halal industry. Through its rigorous standards, innovative solutions, and collaborative approach, the country is playing a pivotal role in strengthening halal supply chains across the continent. For businesses, this means access to a growing market and a trusted partner in halal certification. For consumers, it means peace of mind knowing that the products they purchase meet the highest standards of quality and authenticity.

As the demand for halal products continues to rise, Bosnia’s contributions will become even more significant. By setting a benchmark for integrity and excellence, Bosnia is not only shaping the future of the halal industry in Europe but also inspiring the world to follow suit.


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