Author: the_bridge_tank

Financing the African economy: Supporting the Modernization of African Economies

By Clarisse Hida & Joël Ruet

As the Summit on the financing of the African economy will be held on May 18, 2021 in Paris, at the invitation of Emmanuel Macron and with the African heads of state and government, solutions must go well beyond refinancing of sovereign debt, to integrate the dynamics of an African financial system undergoing a great transformation, and must include the banking sector, both at the level of the private sector and of commercial banks.

Africa has been resilient since the economic crisis of 2008 with controlled debt until the covid pandemic, and, for many countries, debt has been raised in connection with a transformation, an extension of the tax base, with margins remaining in this in terms of debt sustainability. But above all the continent, and in particular sub-Saharan Africa, has demonstrated a real boom in its economies, served by the growth of pan-African banks, which now desreve better support internationally.

But today Africa remains underbancarised, and a “classic” treatment of African economies by the tools of the banking system possibly supported by a multilateral public tool for the correct assessment of risks, including the issues of “rating”, looks promising.

Key Take-aways :

► The issue of financing the African growth should be approached through:

– Maintaining development assistance in the context of COVID-19 which, in itself, does not constitute a specific risk for Africa.

– The revival of public and private foreign investments in Africa, by improving the perception of African opportunities, including a fairer rating of private and sovereign financial assets.

– And finally, through support the access to capital markets for commercial banks since it is clear that many banking regimes are sound and should not be underestimated.

► In each of the avenues proposed, the international community must play an integrating or intermediary role that goes beyond the framework of development aid.

► This triple approach would make it possible to tap new types of financers, who would be able to better understand the specificities and strategies of African countries, particularly, but not only, with regard to debt and its refinancing.

The Bridge Tank at the BOAO Forum in the media

Since 2018, the Chairman of the Bridge Tank Joël RUET participates to the BOAO Forum, of which this think tank is a partner. This year, he spoke alongside international leaders in politics and business, such as Dmytro KULEBA, Ukrainian Minister of Foreign Affairs, Jens ESKELUND, vice-president at the European Chamber of Commerce in China, or LIU Hualong, president of China Poly Group.

He was one of the three French panelists, embodying the circle of think tanks, while Jean-Pierre RAFFARIN and Henry GISCARD D’ESTAING, respectively represented the political and economic world. This high-level meeting was marked by the resumption of exchanges in a world undergoing reconstruction after a pandemic which disrupted interactions between countries.

During the BOAO forum, the “Chinese Davos”, Joël Ruet participated in the session “Speed up Trade Connection in Times of Pandemic Isolation”, where he developed the idea that “the trade of tomorrow is prepared by the investments of today”.

 

In the context of the 2021 edition of the BOAO Forum, Joël Ruet offered avenues for thoughts on environmental cooperation between China, the European Union and the United States during an interview with CGTN TV. He also mentioned the need to strengthen coordination between the G20 and the BRI (Belt and Road Initiative), and addressed the issue of governance of these new Silk Roads to these journalists.

Joël Ruet was also quoted by CCTV13, a Chinese national news channel, about the role of BOAO in the economic integration of Asia, but also of the world on a global scale.

In an interview with Xinhua News on the occasion of the opening of the Forum, the president of the Bridge Tank presented his point of view on the trade of tomorrow, necessarily based on proactive and ambitious investments, the greening of the New Silk Roads and a reform of the WTO.

Mentioned in an article in Xinhua News about the place of China in sustainable development on a global scale, Joël Ruet argued that the BRI has a big role to play in the energy transition, in particular in the field of hydrogen.

 

 

The Bridge Tank at the BOAO Forum for Asia 2021: a partnership anchored in a shared vision for the future

The Bridge Tank at the annual “Chinese Davos” meeting

After a year of pandemic which led to its suspension in 2020, the BOAO Forum renewed its annual conference from April 18 to 21, 2021 in a context fluctuating between resumption of international trade and temptation to withdraw. As such, the “Chinese Davos” plays a decisive role in the international calendar by advocating an open multilateral dialogue, at a time when the Covid19 has lastingly disrupt the international balance and created a series of new challenges while exacerbating those which pre-existed to it.

Since 2018, the chairman of the Bridge Tank Joël RUET has participated to the BOAO Forum, of which the think tank is a partner. As every year, he spoke at a high-level conference alongside international leaders from the political and business worlds, such as Dmytro KULEBA, Ukrainian Minister of Foreign Affairs, Jens ESKELUND, vice-president at the Chamber of European trade in China, or LIU Hualong, president of China Poly Group, but also the director general of the WTO, Ngozi OKONJO-IWEALA, or the South Korean Minister of the Environment.

He was one of the three French speakers, embodying the circle of think tanks, while Jean-Pierre RAFFARIN and Henry GISCARD D’ESTAING, respectively represented the political and economic world. This high-level platform of dialogue, eagerly awaited in the context of a return to international discussions, aspires to build a global consensus and promote common and sustainable development. This meeting was an opportunity to discuss the measures takenby the BRI countries to keep the economic and trade volume roughly stable and normal during the COVID-19 pandemic when the global economy plunged, and cross-border trade and investment slowed down. The role of China-Europe Railway Express in stabilizing the global supply chain was also discussed, as well as the role played by e-commerce in renewing and developing international economic cooperation. In the context of an implementation of the New Silk Roads, but also of an Investment Agreement between the EU and China which is debating, the future of Sino-European relations also occupied the space of discussion.

For Joël Ruet, chairman of the Bridge Tank, “the investment of today makes the business of tomorrow”

In his speech, Joël Ruet stressed the need to optimize Eurasian trade, embodied by the rise of the China-EU Railway Express, by emphasizing the role of upstream investment. As such, it calls for a rebalancing of trade, in favor of exports of European technologies and equipment to China. On this point, the Bridge Tank discussed at length the subject of the EU’s competitive advantages to be brought to bear in its trade with China.

He also addressed the energy issue : the Belt and Road Initiative (BRI) could play an important role in connecting the two hydrogen champions Asia and Europe. The Bridge Tank has also developed several avenues of cooperation in terms of research that it would be strategic to develop between the two regions.

Joël RUET added that the EU did not intend to tackle the climate issue as one subject among others, but as an issue that conditions and prevails over everyone’s interests, and compared this approach to the Blinken line: dealing separately with technological rivalries and coordination for the climate. Joël Ruet said it remains to be seen whether this separation is audible by the Chinese side.

He also reflected on the place of Africa in the Belt and Road Initiative, suggesting that Africa wants and must find its place there. According to him, investments on the African continent, still too limited to infrastructure, would benefit from further enhancing contact between individuals by focusing on human capital and skills training.

Ukrainian Foreign Minister in favor of an ambitious European cooperation on hydrogen

The Ukrainian Foreign Ministry raised the many challenges brought to light by the pandemic. He argues that international trade will play a key role in the global economic recovery, provided cooperation is boosted. To achieve this, and like Ukraine, which is posed as a strategic logistics hub, the regions of the world must enhance their connectivity in order to foster multilateral interactions.

He advocates enhanced European cooperation in the sector of alternative energies such as hydrogen. He therefore calls for coordinated efforts to invest in hydrogen technologies, ensuring that Ukraine intends to play its role as a strategic partner. The Bridge Tank shares with interest the Minister’s enthusiasm for innovative cooperation around hydrogen, as evidenced by these numerous works on the subject.

For Jens Eskelund, Managing Director of Maersk and Vice-President at the European Chamber of Commerce in China, “the business world allows constructive international dialogue beyond politics”

Jens Eskelund spoke about the pre-Investment Agreement between the EU and China, whose ratification has been suspended due to political disputes. For him, this is the dangerous symptom of a phenomenon of politicization of world trade: the political circle meets the business world. However, this situation is untenable in the long term: both parties must be aware of the need to maintain an open dialogue. For him, trade remains the area where constructive and frank links can be maintained regardless of political differences. The business world therefore has a role to play in maintaining contact where diplomatic relations face an impasse.

According to him, and the Bridge Tank totally agrees with him, international cooperation is indeed crucial to meet future challenges such as the climate challenge: on this subject, the EU and China cannot afford to develop technologies in parallel without converging.

LIU Hualong and the importance of working towards a state of trust to rebuild international relations

In a context of tension in diplomatic exchanges, the CEO of Poly Group insisted on a return to a state of trust, a necessary prerequisite for any trade or international investment. According to him, sharing experience and building trust are essential to rebuilding a sustainable post-covid world and stabilizing the global supply chain.

Joël Ruet bounced back from this intervention, emphasizing that constructive relations must be rooted in a state of mutual understanding, fueled by international networks and cultural projects. In fact, for a rapprochement on investment to be made by companies, it is essential to get to know each other, through multicultural initiatives.

The Bridge Tank at the BOAO Forum : to go further

If the Bridge Tank has been a faithful partner of the BOAO Forum since 2018, it is because it works to offer a vision of the world converging with the vision shared at BOAO, in favor of openness and cooperation. The interviews suggested below, given by Joël Ruet to Chinese media, allow us to deepen the meaning of this shared vision.

During an interview with CGTN TV, Joël Ruet proposed avenues for reflection on environmental cooperation between China, the European Union and the United States. He also mentioned the need to strengthen coordination between the G20 and the BRI and addressed the issue of governance of these new Silk Roads to these journalists.

Joël Ruet was quoted by CCTV13, a Chinese national news channel, about the role of BOAO in the economic integration of Asia, but also of the world on a global scale.
 
In an interview with Xinhua news on the occasion of the opening of the Forum, the president of the Bridge Tank presented his point of view on the trade of tomorrow, necessarily based on proactive and ambitious investments, a reform of the WTO, and the greening of the New Silk Roads. Quoted in an article of Xinhua news on the place of China in sustainable development on a global scale, Joël Ruet argued that the BRI has a big role to play in the energy transition, in particular in the field of hydrogen.
 
To find all the media resources of the Bridge Tank about this 2021 Edition of the BOAO Forum : (insert link of the short post).
 

EU-China Comprehensive Agreement on Investment: Stakes for a constructive balance of power

By Philippe Coste, Pierre-Noël Giraud, Stéphane Gompertz, Henri de Grossouvre, Fatima Hadj, Brice Lalonde, François Loos, François Quentin, Joël Ruet, Raphaël Schoentgen, Alex Wang, avec Clarisse Comte et Claire Thomas.

After seven years of negotiations, the European Union and China reached an investment agreement on December 30, 2020. While Beijing sees in it the promotion of a “high degree of openness”, the EU aspires through this treaty to establish the long sought after “equality of market conditions”.

To carry out this project, a balance between the strategic interests of each side and common objectives on which to agree remains to be found… just as it remains to find avenues for concrete action.

Find the analysis note in French :2021-03-Issue-Brief-UE-CHINETélécharger

• This treaty provides for the intensification of economic and trade relations between the EU and China. It guarantees EU investors greater access to China and also helps to create more balanced conditions of competition.

• Areas of collaboration are proposed here, in various fileds : political (place of China in international organizations, global governance), legal (international standards, ESG), industrial (mobility, decarbonisation, role of SMEs), economic, environmental, scientific , technological (energy transition, carbon capture, hydrogen, nuclear, new energies), financial (coordinated introduction of carbon prices) and cultural.

• For the EU, it is above all a matter of asserting its strategic interests in a coordinated manner with the member countries during the ratification process.

The long-term issues of technological sovereignty, of competition between blocs, all possible causes of “stop and go” in bilateral relations must be seriously dealt with.

Despite the identified obstacles, maintaining an open but precise dialogue between the EU and China is essential. The European Union must continue its transformation and ensure respect for its increase in diplomatic power both within the EU and in its relationship with China: beyond state-to-state relations, it is up to the EU in as a community to negotiate the terms of a new bilateral relationship with China. It is in this way that it will confirm its status as a “balancing power”.

The Organization for the Development of the Senegal River Basin (OMVS) will be a candidate for the Nobel Peace Prize

On 12th March 2021, in Kayes, Mali, our Board Member Hamed Semega, announced the Senegal River basin organization (OMVS) will run for the Peace Nobel Prize. OMVS, an international organization under Guinea, Mali, Mauritania, Senegal, today celebrates its 49th anniversary. Heading towards 50, and ahead of the upcoming Word Water Forum, the 4 states realize the OMVS has been a factor of peace, stability and development in the region. Just as IPCC got the Prize on climate change mitigation, we wish the OMVS will get the prize for huge climate adaptation efforts it does on top of peace.

Senegal: The political crisis shaking the country

3 of our Founding Board Members from Senegal were mobilized in the international and national media during the restlessness the country experienced; Aissata Tall-Sall (on Francde 24) Minister of Foreign Affairs, Elhaj Kasse (on TFM) Special Adviser to the President and Mamadou Lamine Diallo ( on TFM), member of the National Assembly and one of the leaders of the democratic opposition.

Elhaj Kasse, Special Advisor to the President on TFM (Télé Futurs Medias) for a special program: how to get out of the crisis?
Mamadou Lamine Diallo, member of the National Assembly interviewed on TFM (Télé Futurs Médias)
Theme: Overlay by Kaira
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