Russia's Nuclear Business Outlook With Africa
By Kestér Kenn Klomegâh
Endowed with huge natural resources, Africa is comparatively the least developed region in this world. In the current context of global crisis, at least Russia struggling to maintain its image on the stage. Some African leaders are more concerned to be at the receiving end, while others are prioritizing development and improving welfare for their impoverished population.
Sometimes, it is difficult to understand the level of development
despite the colossal resources in Africa. That development can only be
raised with foreign participation. With that presumption, African
leaders seemingly have that sentimental edge attitude for symbolism and
the desire for group photos at international conferences and summits
even if such gatherings offer little or nothing tangible for their
national economic development.
Russian President
Vladimir Putin attended a meeting of BRICS leaders with delegation heads
from invited African states and chairs of international associations on
27 July, 2018, in Johannesburg, South Africa.
Those
invited included the leaders of African countries, namely, Angola,
Botswana, Ethiopia, Gabon, Lesotho, Madagascar, Mauritius, Malawi,
Mozambique, Namibia, Rwanda, Senegal, the Seychelles, Tanzania, Togo,
Uganda, Zambia and Zimbabwe.
The meeting was also
attended by the heads of Argentina (then chair of the G20), Turkey (then
chair of the Organisation of Islamic Cooperation) and Jamaica (then
chair of the Caribbean Community).
Before the
meeting, there was a joint photo session. Speaking at that grand
high-level meeting, Putin told the African leaders, with confidence,
that "Africa is one of the world's most rapidly developing regions."
"Russia
has always given priority to the development of relations with African
countries, based on long-standing traditions of friendship and mutual
assistance," he said, and along the line in the powerful and arousing
speech, added that Russia would help to overcome energy shortages and
deep-seated deficits across Africa.
Without much
doubts, Russia is noted for an excellent diplomacy. As always, African
leaders gave an ear-deafening applause. Russia is ready to do everything
in various sectors in Africa has been the policy chorus down these
years since the collapse of the Soviet era in 1991, and African leaders
respectfully show high excitement at such phrases.
Putin
underscored the fact in the nuclear power industry, where Russia is a
technological leader, offers several African partners the creation of an
entire industry on a turnkey basis. Agreements on cooperation in the
field of atoms for peace have been signed with a number of countries in
the region, while in some of them the work has acquired a practical
dimension. Joint efforts are being taken to implement the agreements
reached in a number of spheres.
"All these
projects will be of strategic importance for Africa, where, according to
different estimates, as many as 600 million people still live without
electricity," he told African leaders.
Quite
recently in March 2023, Putin spoke at the international parliamentary
conference Russia – Africa in a Multipolar World, held in Moscow under
the auspices of the State Duma of the Russian Federal Assembly. In fact,
one key question that featured in the speech that "Rosatom is already
building a nuclear power plant in Egypt and plans to expand its
involvement in the development of national energy systems in the African
continent. I would like to note that significant, in some countries
100-percent funding is provided by Russia."
The
partnership between Russia and African countries has gained additional
momentum and is reaching a whole new level. With South Africa, the
agreement for the large scale nuclear power plant (NPP) development was
initially signed during the International Atomic Energy Agency General
(IAEAG) Conference in Vienna between Russia's Rosatom State Atomic
Energy Corporation director general Sergey Kirienko and South Africa's
Energy Minister Tina Joemat-Pettersson.
Accroding
to Power Technology media report, Kirienko said: "I am convinced in
cooperation with Russia, South Africa will gain all necessary
competencies for the implementation of this large-scale national nuclear
energy development programme. Rosatom seeks to create in South Africa a
full-scale nuclear cluster of a world leader's level – from the
front-end of nuclear fuel cycle up to engineering and power equipment
manufacturing."
For the last twenty years, South
Africa has not been able to make investments in new power plants, which
has resulted in a severe power crunch. Kirienko observed: "In future
this will allow to implement joint nuclear power projects in Africa and
other third countries. But from the very start this cooperation will be
guided at providing the conditions for creation of thousands of new jobs
and placing of a considerable order to local industrial enterprises
worth, at least, $10 billion."
Long before that
African leaders' meeting at BRICS in Johannesburg, South African
parliament overturned and blocked nuclear power agreement signed by
Jacob Zuma in the Kremlin, after talks with Vladimir Putin. South
Africa, until today, has had huge problems with power supply for both
domestic and industrial utilization. Generally power outrages still a
huge and real constraint to industrial growth in South Africa and across
Africa.
Corruption that hollowed out Eskom's
coffers under Jacob Zuma's presidency, lack of plant maintenance and
sabotage were blamed for South Africa's electricity crisis. South
Africans have become hardened to crippling blackouts, this is inflicting
a massive hit on the economy. Credible reports said the government
spent $1.6 billion from the budget for diesel purchases this year alone.
Eskom's colossal debt, still equivalent to $23 billion.
According
to research sources, main reason why the 2015 nuclear power agreement
thrown out by the South Africa's parliament, it was an opaque unilateral
deal with Moscow. South African pact with Russia's Rosatom to build
nuclear reactors was deemed unlawful by a High Court in April 2017. The
Southern African Faith Communities Environment Institute (SAFCEI) and
Earthlife Africa-Johannesburg had jointly filed the court application to
stop the nuclear program.
Both the Russian
government and the administration of South African president Jacob Zuma
put pressure on the South African government to force through the deal
by attempting to circumvent South Africa's procurement laws. The Russian
government offered to build and operate up to eight nuclear power
plants at a cost of R1 trillion ($66 billion).
South
Africa and Russia signed an Intergovernmental Agreement (IGA) in 2014
that sealed a cooperation pact between state-owned nuclear group Rosatom
and state-owned utility Eskom. There were external tenders, for example
the United States, South Korea, China and France, but Jacob Zuma,
without consulting his cabinet and parliament, used his close-friendship
to sign the deal with Putin. As a result, Pravin Gordhan then Finance
Minister was fired partly because he resisted pressured by a faction
allied to Jacob Zuma to back nuclear expansion.
With
Arab Republic of Egypt in North Africa, it has been in the works for
several years and has a chequered history. Egypt has been considering
the use of nuclear energy for decades. The Nuclear Power Plants
Authority [NPPA] was established in 1976, and in 1983 the El Dabaa site
on the Mediterranean coast was selected.
With over
100 million inhabitants, Egypt is the most populous country in North
Africa, popular referred to as Maghreb region and part of the Arab
World. Egypt is the third most populous country after Nigeria and
Ethiopia in Africa. About half of Egypt's residents live in urban areas,
with most spread across the densely populated centers of greater Cairo,
Alexandria and other major cities along the Nile Delta. Therefore,
Egypt needs sufficient energy to drive its industries and for domestic
utilization.
Egypt's nuclear plans, however, were
shelved after the Chernobyl accident. But, in 2006, Egypt announced it
would revive its civilian nuclear power program, and build a 1,000 MW
nuclear power station at El Dabaa. Its estimated cost, at the time, was
$12.5 billion, and the plans were to do the construction with the help
of foreign investors. In March 2008, Egypt signed an agreement with
Russia on the peaceful uses of nuclear energy.
Rosatom
has shown interest not only Egypt but many other countries in Africa.
Over the past two decades, at least, it has signed agreements that
promised construction of nuclear energy plants and training of
specialists for these countries. Director General, Alexey Likhachev,
emphasized these points at the first Russia-Africa summit that Rosatom
has already been cooperating with more than 20 African countries, in
particular, building the largest "El-Dabaa” NPP in Egypt with an
installed capacity of 4.8 GW. The total cost of construction fixed at
$30 billion.
After these several negotiations and
re-negotiations since 2015, Russia re-signed the contract for the
nuclear construction during the first Russia-Africa summit. Then after
that...three years of waiting, Russia finally in 2022 granted a loan $25
billion for the construction of the nuclear power plant which covers
85% of the work. The remaining expenses will be covered by the Egyptian
side by attracting private investors. Under the agreement, Egypt is to
start payments on the loan, which is provided at 3% per annum, from
October 2029.
According to reports, Russia has
also signed for such construction of nuclear plants with a number of
African countries but yet to begin implementing its side of the
agreements. These include agreements with Algeria (2014), Ghana (2015),
Ethiopia (2019), Republic of Congo (2019), Nigeria (2012, 2016), Rwanda
(2018), South Africa (2004), Sudan (2017), Tunisia (2016), Uganda (2019)
and Zambia (2016). Memoranda of Understanding (MoUs) were signed with
Kenya in 2016 and Morocco in 2017.
At the last
international parliamentary conference ‘Russia – Africa in a Multipolar
World’ held in March 2023, under the auspices of the State Duma of the
Russian Federal Assembly, Putin indicated in his speech that "Russia is
offering new environmentally friendly technologies, primarily in nuclear
energy. Rosatom is already building a nuclear power plant in Egypt and
plans to expand its involvement in the development of the national
energy systems of the African continent. And that Russia, in some
countries, would provide 100-percent funding of these nuclear projects."
Ryan
Collyer,the Regional Vice-President of Rosatom for Sub-Saharan Africa,
told this author that energy (construction and repair of power
generation facilities as well as in peaceful nuclear energy and the use
of renewable energy sources) is an important area of the economic
cooperation between Russia and Africa.
Quite apart
from the explicit points raised above, Collyer further explained that a
nuclear power program is a complex undertaking that requires meticulous
planning, preparation, and investment in time, institutions, and human
resources. The development of such a program does not happen overnight
and can take several years to implement.
According
to his explanation, another critical question is the cost. Most of the
funds are needed during the construction period. Building a large-scale
nuclear reactor takes thousands of workers, massive amounts of steel and
concrete, thousands of components, and several systems to provide
electricity, cooling, ventilation, information, control and
communication.
Way Out - Other Energy Alternatives
Knox
Msebenzi, Managing Director of the Nuclear Industry Association of
South Africa (NIASA), a body committed to promoting the highest
standards in the development and application of nuclear technology, in
discussing the impact of challenges on the country's economy and a way
out of the power generation difficulties, recommended that South Africa
pursue an energy mix that includes coal, wind, hydro-power, nuclear and
renewables going forward.
There are no silver
bullets when it comes to energy sources generally across Africa.
Criticisms of nuclear relating to costs and project managements (long
delays with huge projects) are being addressed with Small Modular
Reactors. Nuclear power will not come online today as it takes time to
implement, but countries do not plan for now but for the future.
Msebenzi
also told me during our discussion that foreign players would
invariably be attracted by commercial interests. Manufacturers of
renewable energy equipment overseas are already pushing to sell their
goods and services. Nuclear vendors are also very keen to participate in
the South African nuclear bid and this can be a gateway to the rest of
the continent. Not only is it my view that an all-inclusive energy mix
is imperative, but African governments must recognise these as well if
they wanted durable and sustainable solution to energy crisis.
Most
of these post-Soviet years, Russia's growing opacity, agreement clouded
in secrecy which features in its policy is seriously affecting its
image inside Africa. That however, it has been pushing nuclear
technology to African nations both to turn a profit and to expand its
political might on the continent. It has until now several bilateral
agreements signed.
Article's author looks at the future prospects.
Today,
African countries face major challenges. Rapid population growth and
the worsening energy crisis are constraining economic growth in the
continent. Nuclear technologies can become a driver for socio-economic
development and a comprehensive solution to the systemic continent-wide
problems. But building nuclear power still faces huge financial
difficulties across Africa.
Throughout my
researches show that using the continent's mineral wealth in the most
effective way possible to finance energy. These two are interconnected.
With constant energy supply, Africa can now embark on an effective
industrialization, add value to rwa materials and commodities for onward
distribution in the single borderless market AfCFTA.
Despite
given Russia's increasing cooperation, Africa has to find new solutions
to energy crisis. A number of African leaders show the same expert
views on developing the Inga-3 on the Congo river. Ethiopia is nearing
completion of the Grand Ethiopian Renaissance Dam (GERD).
The
GERD is estimated to cost close to $5 billion, about 7% of the 2016
Ethiopian gross national product. The lack of international financing
for projects on the Blue Nile River has persistently been attributed to
Egypt's campaign to keep control on the Nile water share. It is the
source of an almost decade-long diplomatic standoff between Ethiopia and
downstream nations Egypt and Sudan.
Interestingly
Ethiopia, Egypt and Sudan have expressed interest in build nuclear
plants, ready to spend more than what is required for GERD. But, in
fact, the dam rather help to shift longstanding power relationships and
could pave the way for more cooperation among all the countries that
depend on the Nile. Having this hydro-project and sharing it could be a
game changer in this region. The long-term benefits of this investment
rather be less that the cost of all the three opting for nuclear
plants.
Then besides GERD, Inga-2 on the Congo
river - now both can provide enough hydro-energy for the continent.
Despite the incredibly energy difficulties that confronts, in fact, all
African countries, the Nile river and Inga-3 on the Congo, the greatest
huge water resources can be be used as part of the much talked about
energy mix. Over these several years, Russia's enormous and consistent
talks about providing nuclear power energy have not yielded remarkable
visible results.
South African President Cyril
Ramaphosa, Democratic Republic of the Congo's President Félix
Tshisekedi, the Congolese President Sassou Nguesso and Rwanda Paul
Kagame, have all emphasized this energy project in June 2023 during the
New Global Financing Pact summit in Paris, France. Ramaphosa reiterated
that the Inga-3 needs external financing. He stressed importance of
building Inga-3 hydropower energy in addressing energy questions in the
region.
Inga-3 is a complex hydropower project on
Congo river, the world's second-largest river by volume, and found to be
the world's deepest river. The river is unique, it has large rapids and
waterfalls very close to the mouth while most rivers have these
features upstream. The river's powerful rapids at the Inga site are said
to possess the largest hydropower potential in the world, which has for
decades attracted dam planners who have dreamed of harnessing the
mighty Congo's power.
"The Inga 3 is undoubtedly
the most transformative project for Africa in the 21st Century," DRC
Prime Minister Matata Ponyo Mapon noted almost 10 years ago, in March
2014. African leaders, politicians, policy-makers and development
experts have to re-echo these words, especially its significance to
Africa's development today.
In April 2023, Power
Technology reported that the project construction, which consists of 16
turbines, is likely to commence in 2026 and is expected to enter into
commercial operation in 2030. The description is given as follows: The
project is being developed by AEE Power, China Three Gorges, Fortescue
Metals Group and Sinohydro. The project is currently owned by AEE Power
with a stake of 25%, China Three Gorges and Sinohydro.
Inga
3 is a run-of-river project. The hydro power project consists of 16
turbines. The project has 16 electric generators that will be installed
at the project site. According Power Technology, the AEE Power SA (AEE),
a subsidiary of Eurofinsa SA, is an EPC contractor and power developer.
It offers transmission, power generation and distribution services.
With
energy challenges still remaining and holding back industrial
development, few African leaders have started thinking out of the
traditional box to offer unflinching support for developing this
continental hydropower plant. The urgent development of the Inga-3 could
be cost effective and could supply the required energy output for the
entire southern African region.
Perhaps, the most
important way forward is for African countries to work in cooperation
with one another and as a collective. Thus, overcoming passivity could
involve the following steps: that Africa urgently needs new strategies
toward addressing sustainable development goals, if not to wait for
another century. To that end, the African Union (AU) can – and should –
engage its members in a more structured manner and help them put
together joint positions on critical issues relating to Sustainable
Development Goals (SDGs) and within the Agenda 2063.
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Russia's Nuclear Business Outlook With Africa
By Kestér Kenn Klomegâh Endowed with huge natural resources, Africa is comparatively the least developed region in this world. In the current context of global crisis, at least Russia struggling to maintain its image on the stage. S