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China to pitch green tech exports to African leaders as Western curbs loom
By Joe Cash and Duncan Miriri
BEIJING/NAIROBI (Reuters) – China will urge a summit of 50 African nations in Beijing this week to take more of its goods, before Western curbs kick in on its exports such as electric vehicles and solar panels, in exchange for more pledges of loans and investment.
But the dozens of African leaders arriving in the Chinese capital for the three-yearly event may not be easy bait. They will want to hear how China plans to meet an unfulfilled pledge from the previous summit in 2021 to buy $300 billion of goods.
They will also seek assurances on the progress of incomplete Chinese-funded infrastructure projects, such as a railway designed to link the greater East African region.
“The prize is going to go to those countries who have carefully studied the changes in China and align their proposals with China’s new slimmed-down priorities,” said Eric Olander, co-founder of the China-Global South Project.
“That’s a big ask for a continent that generally has very poor China literacy.”
Africa’s biggest two-way lender, investor and trade partner is moving away from funding big-ticket projects in the resource-rich continent, preferring instead to sell it the advanced and green technologies Chinese firms have invested in heavily.
As Western curbs on Chinese exports loom, Beijing’s top priority will be finding buyers for its EVs and solar panels, areas where the U.S. and European Union say it has overcapacity, and building overseas production bases for emerging markets.
China has already started tweaking conditions for its loans to Africa, setting aside more for solar farms, EV plants and 5G Wi-Fi facilities, while cutting back on bridges, ports and railways.
Last year, China offered 13 loans of just $4.2 billion to eight African states and two regional banks, data from Boston University’s Global Development Policy Centre showed, with about $500 million for hydropower and solar projects.
GEOPOLITICAL JOSTLING
When President Xi Jinping opens the ninth Forum on China-Africa Co-operation Summit on Thursday, he is expected to pitch plugging into China’s burgeoning green energy industry to leaders from Gambia, Kenya, Nigeria, South Africa, and Zimbabwe.
In attendance will also be delegates from every African state except Eswatini, with which Beijing has no ties.
To avoid losing market share, China’s geopolitical rival, the United States, has started to host African leaders.
Britain, Italy, Russia and South Korea have also held Africa summits in recent years, recognising the potential of the region’s young people and its 54 U.N. seats.
China’s outsized role as a financial and trade partner makes its meetings a far bigger deal, however.
“There is no other development partner that does that much,” said Hannah Ryder, founder of Development Reimagined, an African-owned consultancy.
“But are African leaders able to push China to really dig in so that the balance of the ‘win’ is way more towards the African side?”
MATCHING WANTS AND NEEDS
China will want to talk up boosting trade and access to minerals like , cobalt and lithium in countries such as Botswana, Namibia, and Zimbabwe.
But it could be cautious about more funding commitments following debt restructuring bids in economies such as Chad, Ethiopia, Ghana and Zambia, since the 2021 summit.
“We are likely to see a continued prudence in terms of financing mega projects,” said Lina Benabdallah, of the Centre for African Studies at Harvard University, adding that Beijing would push for technology transfers instead.
“I am most certainly keen to understand how many new finance commitments may come out of this, and how they’re going to deal with existing debt to African countries,” said Yvette Babb, portfolio manager at asset management firm William Blair.
But China’s enthusiasm to lend might be dampened by security concerns, such as a spat between Niger and Benin that killed six Nigerien soldiers guarding a PetroChina-backed pipeline, or deadly protests in Kenya over tax hikes.
WASHINGTON (Reuters) -Billionaire Elon Musk, an adviser to U.S. President-elect Donald Trump, said on Saturday that Cantor Fitzgerald CEO Howard Lutnick would “actually enact change” if chosen as U.S. Treasury secretary.
Trump has not announced his nominee for the role, but Lutnick and investor Scott Bessent are serious contenders for the job and sources familiar with his thinking say Trump has been wrestling with picking one of the two or considering another option.
Musk said Bessent is “a business-as-usual choice.”
“Business-as-usual is driving America bankrupt, so we need change one way or another,” Musk said on X. “Would be interesting to hear more people weigh in on this for Trump to consider feedback.”
Musk has been increasingly influential in Trump’s inner circle and has been staying at the president-elect’s Mar-a-Lago club in Palm Beach, Florida, as Trump forms his incoming government.
At a gala event on Thursday night, Trump teased Musk about his ongoing post-election stay at Mar-a-Lago.
“I can’t get him out of here. He just loves this place. And I like having him here,” said Trump.
At the end of the event, Musk mounted the stage.
“The public has given us a mandate that could not be more clear. The people have spoken, the people want change,” he said.
Lutnick has been helping Trump with his transition efforts. He has praised the president-elect’s economic policies, including his use of tariffs.
By Vladimir Soldatkin and Guy Faulconbridge
MOSCOW (Reuters) -Russia halted gas supplies to Austria on Saturday in a dispute over payments but was still pumping steady volumes to Europe via Ukraine after remaining buyers asked for more gas.
Russia, which before the Ukraine war was the biggest single supplier of to Europe, has lost almost all of its European customers as the EU tries to reduce its dependence and after the Nord Stream pipeline to Germany was blown up in 2022.
Now one of the last main Russian gas routes to Europe – the Soviet-era Urengoy-Pomary-Uzhgorod pipeline via Ukraine – is due to shut at the end of this year, as Kyiv does not want to extend a five-year transit agreement which brings northern Siberian gas to Slovakia, the Czech Republic and Austria.
Austria said on Friday that Moscow had informed it that the gas would be shut off following an arbitration award to OMV, Austria’s biggest energy supplier, over unfulfilled supplies to its German unit by Russia’s state firm Gazprom (MCX:).
On Saturday, Austria’s energy regulator E-Control said Gazprom’s deliveries to OMV had stopped at 6 a.m. (0500 GMT), adding that prices and supplies to Austrian customers were steady.
OMV is seeking to recover the 230 million euro ($242 million) damages, awarded during arbitration, from Gazprom by offsetting the claim against invoices for deliveries to Austria – essentially stopping some payments for gas supplied via Ukraine.
Gazprom declined to comment on the suspension of flows to Austria, but the Russian company said it would send 42.4 million cubic metres of gas to Europe via Ukraine on Saturday, the same volume as on Friday and during every other day in recent months.
Slovak state-owned firm SPP said it was still receiving gas from Russia and added others were buying more.
“The situation when a large consumer stopped taking gas from the east, but the same volume flows through the territory of Ukraine, shows that there is still great interest in this gas in Europe,” SPP said in a statement, without naming the other buyers.
OMV usually accounts for around 40% of Russian gas flows via Ukraine, or some 17 mcm per day.
Austrian grid operator AGGM said it was not currently substituting imports from Germany or Italy. Austria said earlier it had plentiful stocks to cover the shortfall.
GAS POLITICS
Chancellor Olaf Scholz spoke to President Vladimir Putin on Friday for the first time in nearly two years, as European leaders wait to hear Donald Trump’s ideas on ending the biggest land war in Europe since World War Two.
According to the Kremlin, Putin told Scholz that Russia had always fulfilled its contractual obligations for energy supplies and was “ready for mutually beneficial cooperation if the German side shows interest in this”.
Soviet and post-Soviet leaders spent half a century from the discovery of major Siberian gas deposits in the post-WW2 years building up an energy business which linked the Soviet Union, then Russia, and Germany, by far Europe’s biggest economy.
War, and explosions, have destroyed that link, damaging the economies of both countries.
At its peak, Russia was supplying 35% of Europe’s gas but since the war started in 2022 Gazprom has lost market share to Norway, the United States and Qatar.
The Yamal-Europe pipeline via Belarus was closed after a dispute, while Russia blamed the United States and Britain for the explosions under the Baltic Sea that closed the Nord Stream route.
Washington and London have denied they blew up the pipelines. The Wall Street Journal has reported Ukrainian officials were behind the attack. Kyiv has denied that.
Without Austria, significant Russian supplies will only go to two European countries, Hungary and Slovakia, in Hungary’s case via a pipeline running mostly through Turkey.
Russia shipped some 15 billion cubic metres of gas via Ukraine in 2023, about 8% of peak Russian gas flows to Europe via various routes in 2018-2019, according to data compiled by Reuters.
In 2023, the Ukraine transit route met 65% of gas demand in Austria and its eastern neighbours Hungary and Slovakia, according to the International Energy Agency.
($1 = 0.9487 euros)
MOSCOW (Reuters) -Protesters in Georgia’s Russia-backed breakaway region of Abkhazia declined on Saturday to leave the parliament building which they stormed the previous day, a departure proposed by the region’s president as a condition for resigning.
Protesters had occupied the parliament in protest at an investment agreement between the Black Sea region and Moscow.
Russian news agency RIA reported that President Aslan Bzhania had said on Saturday he would resign and hold a snap election once protesters vacated the parliament in Abkhazia’s capital Sukhumi, and proposed a vice-president as interim head of state.
“When they leave the building, I will write my resignation letter and in the new election we’ll see how much support they get,” RIA cited Bzhania as saying.
He said he planned to run in that election.
Bzhania, quoted by Russian news agencies, later told a government meeting held in his native coastal village of Tamysh, that order would be restored. He said protesters only controlled the parliament and government buildings they had occupied.
“The situation will stabilise, everything will return to a legal framework,” RIA news agency quoted him as saying. “We have a president, we have laws. We have a homeland that we all must serve.”
Abkhazia’s interior ministry and security service issued statements saying they would obey orders from the president.
Protesters said in a statement that the occupation was not against Abkhazia’s close ties with Russia, but accused Bzhania of “trying to use these relations for his own selfish interests (and) manipulating them for the sake of strengthening his regime”.
TASS news agency quoted a representative of the protesters, Adgur Ardzinba, as saying they would remain in place until the president resigned.
Moscow said on Friday it was following the “crisis situation” with concern and urged Russian citizens to avoid travel to Abkhazia.
Russia recognised Abkhazia and another breakaway region, South Ossetia, as independent states in 2008 after defeating Georgia in a five-day war. It maintains military bases in both regions and props up their economies.
Most of the world recognises Abkhazia as part of Georgia, from which it broke away during wars in the early 1990s.
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