Thursday, 28 May 2020

These are uncertain times, for Africa as much as for Britain. Will they prove each others’ friend in need? Or will circumstances pull the UK and African countries apart? It will all depend on what priority each gives to the other.

For many years following the independence of its former African colonies after the second world war, Britain continued to play an outsize role in African affairs – as an economic partner, a place of education and as a donor. Still, the failure to resolve Rhodesia’s Unilateral Declaration of Independence in 1965 and Britain’s continuing close relations with apartheid South Africa soured the political relationship with the rest of Africa.

But links remained strong, and between 1992 and 2010, Britain had prime ministers who clearly cared about Africa and supported it politically, economically and internationally. Relations with Britain and the influential role of the Department for International Development (DFID), played a part in the “Africa Rising” narrative of the early 2000s.

Since 2010, the climate has changed. This seems strange, as on the face of it Britain’s policies have not. The UK’s commitment to spending 0.7% of GDP on aid has been enshrined in legislation. The Commonwealth remains a central part of foreign policy. Britain has been active on international issues affecting Africa, such as climate change, terrorism, Somalia and piracy in the Gulf of Aden. It has also remained one of Africa’s biggest trade and investment partners, with imports of fruit, vegetables and flowers growing fast and major outward investments in oil, mining and telecoms on the continent.

Read more: The Commonwealth and Britain: the trouble with 'Empire 2.0'

Neglect and retreat

But many Africans I speak to, in all walks of life from Senegal to Kenya and Egypt to South Africa, see it differently. What they feel is political neglect and commercial retreat. British prime ministers have visited rarely, at least compared with those from China, France, Germany and the US. British Airways has pulled out of a number of African routes, the British Council has shrunk from culture into just English language teaching and British brands have disappeared with Land Rovers being replaced by Toyotas. Meanwhile, visas to visit the UK are ever more expensive and harder to get.

For the young African generation, Britain is seen as part of the past not the future. Many students tell me that for business they prefer to go to China, for education to the US, Canada or India, for fun to Dubai. For older Africans there is still an affection, even respect, especially for the Royal Family, the BBC and for London – but also a growing feeling of distance.

And many are puzzled by Brexit: why would Britain do this and make itself weaker? Still, many also see it as a golden opportunity to create a more balanced relationship between Britain and Africa – one that includes aid with fewer strings, more advantageous terms of trade, bigger investments, easier visas, cheaper education and, above all, more and higher-level political attention. Respect, in short.

Can Britain respond? The government of the former prime minister, Theresa May, made a useful start by recognising the problem, identifying five strategic shifts that would help reposition Britain on the continent, and visiting Africa to signal this change. Her speech in Cape Town in August 2019 raised hopes of a new start.

Her successor, Boris Johnson carried through on the first part of that plan, holding a well-attended UK-Africa Investment Summit in London in January 2020, and expanding Britain’s diplomatic footprint in Africa. The perpetually rotating position of the UK’s Africa minister has at last fallen to someone, in James Duddridge, who knows Africa well from a pre-politics career in finance.

Coronavirus crisis

Then came the coronavirus pandemic. The health impact in Africa is so far limited – thanks, not least, the swift response of African governments in locking down and preparing their people, who know well enough the perils of infectious diseases. But the economic impact has been immediate and dramatic. Export prices have fallen off a cliff and some exports, including flowers, stopped completely. Tourists have disappeared.

Remittances – normally three times the volume of aid – have fallen by 20-50% world wide, according to the World Bank. In some African countries, lockdowns and transport restrictions are making it harder for the poor to access food.

Read more: Coronavirus pandemic could hit the billions migrant workers send home in cash

To reinforce its future partnership with the continent, Britain must step up as Africa’s friend in need. African governments need liquidity to replace lost revenue, debt relief to give them breathing space, as well as reinforcement for their health sectors and help with developing and disseminating a vaccine.

Britain has already provided £744 million to support debt relief and developing countries’ efforts to combat COVID-19, as well as to provide humanitarian aid and immediate budget support for cash-strapped governments. The government need not be shy of explaining why it is helping others even while Britons are struggling too.

That will help open the door, once Britain’s relations with the EU are defined, to mutually beneficial trade and investment agreements with African countries and relations with the continent. When the coronavirus passes, Africa is still likely to have the world’s fastest growing population and several of its fastest growing economies. Britain will need Africa as a partner, as much as vice versa. So now is the time to commit.The Conversation


Nicholas Westcott, Research Associate, Centre for International Studies and Diplomacy, SOAS, University of London

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Published in Opinion & Analysis

Sasol is not selling its downstream fuel retail business as part of its ongoing asset disposal process, the petrochemical group said on Wednesday following reports that it was looking to offload its petrol stations.

On Tuesday it was reported that the state-owned Central Energy Fund was considering taking over Sasol garages. The fund later described the report was "malicious".

“While Sasol is in the process of reviewing opportunities in this regard, it is important to note that we remain committed to our strategy, which includes growing our fuel retail presence in South Africa,” said Sasol Chief Financial Officer, Paul Victor.
Sasol’s energy business in South Africa has a strong brand of 410 retail convenience centres, which account for 11% of the regulated retail market.

“Although we are regularly approached by interested parties to acquire or partner with us in the retail network space, we are not in discussions with any such parties to divest or partner in our downstream fuel retail business. While recent events have created significant short-term challenges, we are confident our business is fundamentally robust and we have a clear pathway to resume value creation,” said Victor.

On 12 March 2020, Sasol announced that it was reviewing a variety of actions to address the challenges created by the impact of COVID-19 and the recent decline in the oil and chemical prices.

Published in Business
Nigeria-based scammers, who target millions of Australian email accounts, could be closer to home than you may think.
The west African nation is an established hub for cyber criminals who carry out 'advance free fraud' familiar to many victims of their fake emails.
But few Australians realise many of these cybercrime gangs have moved into the Asia Pacific - Australia's back yard.
A new report by expert Jonathan Lusthaus, 'Cybercrime in South East Asia', published by the Australian Strategic Policy Institute, shows many are based in Malaysia.
"It isn't yet clear why this is such a fertile location, but it's of growing concern, as perhaps many thousands of such offenders are running hugely profitable enterprises there," said Dr Lusthaus.
The report highlights how the online threat from scammers out of Nigeria has evolved in recent years to 'business email compromise'. This involves a scammer impersonating a CEO or other person to instruct an employee in the victim company to transfer funds into an account controlled by the criminals.
Dr Lusthaus says there are other countries in the Asia Pacific harbouring cybercriminals.
Vietnam, for example, hosts a local community of 'black hat' hackers involved in international credit card fraud.
Kuala Lumpur, the capital of Malaysia. The country is the base for Nigerian scammers targeting Australia, says a report. (AP)
They target e-commerce sites and steal their databases of credit card details. The cybercriminals then sell the card data in virtual marketplaces or buy products online themselves and ship them back to Vietnam.
Dr Lusthaus says the research shows cybercrime is far from an anonymous activity.
He believes Australian authorities such as the AFP should be concentrating on specific local hot spots in the Asia Pacific region.
"While it makes sense to continue supporting international cooperation in the fight against cybercrime, those efforts need to be targeted to specific hotspots where the problem is the most acute and Australia's contributions can provide the greatest value for money."
Published in World
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