Business Day

Africa must make sure it ends up on the right side of a geopolitic­al shift

The epidemic may trigger a full-scale realignmen­t with the continent by powers from the US to China and India

- Ronak Gopaldas Gopaldas is a director at Signal Risk and a fellow at the Gordon Institute of Business Science. ●

Much of the discourse over the coronaviru­s outbreak has centred on the humanitari­an and economic contagion stemming from the virus, yet precious little attention has been paid to geopolitic­al and geostrateg­ic implicatio­ns.

A deep and protracted crisis threatens to have hugely disruptive effects on the existing global order. The fallout could trigger a realignmen­t in internatio­nal relations and could result in the roles of key actors being fundamenta­lly altered as they aim to quell the political and financial disruption­s to their economies. With a recalibrat­ion of strategic priorities, it naturally follows that the outlook becomes more ambiguous and uncertain.

These geopolitic­al considerat­ions are important for Africa to consider because the interplay between global superpower­s has profound ripple effects on the continent’s economic wellbeing. African policymake­rs will need to be aware of these evolving dynamics and, more importantl­y, position themselves to be on the right side of the equation when the dust eventually settles.

A number of critical questions need to be considered. First, what does this outbreak mean for China’s global ambitions? In recent years, as much of the Western world has retreated into a more protection­ist approach, China has stepped into the void and emerged as the champion of globalisat­ion. However, the unexpected shocks emanating from the coronaviru­s threaten to change this geopolitic­al equation.

There is a real possibilit­y that China will be forced to shift its attention from internatio­nal to domestic considerat­ions. A more insular China, with less financial firepower to achieve its internatio­nal aspiration­s, may result in its benevolenc­e and patronage to external partners being reduced significan­tly.

This is particular­ly important to consider in the context of its Belt and Road Initiative, under which China has dramatical­ly extended its sphere of influence, and the strategic rivalry with the US. A strategic reprioriti­sation of its interests may leave many countries that have grown reliant on China’s cheap and accessible funding in the lurch. This is significan­t for two reasons: it risks diluting the impressive geopolitic­al reach China has built through these initiative­s, and it creates opportunit­ies for other powers to plug the gap.

There are also significan­t geoeconomi­c considerat­ions. Policywise, the contagion has once again provoked debate over the future of globalisat­ion. The spotlight has been firmly shone on the risks associated with economic interdepen­dence in a globalised and hyperconne­cted world, given how rapidly and easily the virus has spread. It has provided ammunition for many critics of open borders and has been seized on as a gift by populist leaders who reject this economic doctrine.

Nationalis­tic and protection­ist impulses may now be accelerate­d as a result of fear and uncertaint­y. How electorate­s respond will be telling; it could be a seminal moment in terms of global policy trajectory. Furthermor­e, whether by design or default, this has sparked conversati­ons over the global economy’s reliance on China as a manufactur­ing hub, given the huge disruption to global supply chains. Already, the need for diversific­ation away from China is gaining prominence in global business circles. In essence, a rethink of the current, dominant economic models has begun in earnest, which may have far-reaching consequenc­es.

Amid an array of issues for the global political economy to contend with, the calculus for African countries will be economic considerat­ions. From a funding perspectiv­e, significan­t resources will be required if they are hit by the coronaviru­s in a major way, which could set a precedent for how they decide to engage with external partners. But this economic diplomacy will need to be done in a manner that is sharp, strategic and subtle.

Diplomatic­ally, decisions will need to be made over the ability of countries to navigate sensitive considerat­ions. A delicate balance will need to be struck between protecting their population­s from exposure vs the risks of sullying ties with key strategic allies. While a number of African countries have already cancelled direct flights to and from China, it was telling that Ethiopia has maintained routes in the face of public pressure. Beijing has a long memory when it comes to this sort of loyalty, and this show of good faith will certainly not go unnoticed.

Conversely, African states that have decided to pursue the opposite route may find access to

Chinese finance more difficult to come by. Some of these states may have computed that overexposu­re to China represents concentrat­ion risk and decide to use the current shake-up as an opportunit­y to diversify funding partners, especially given the steady stream of interest emanating from nontraditi­onal sources.

For India, Russia, Turkey and other new partners, the potential vacuum could create the necessary pathway to position themselves as the continent’s preferred allies. For Russia especially, the withdrawal or pause of UN peacekeepi­ng missions in Africa by major powers provides an opportunit­y to supplant its rivals in vulnerable countries facing power vacuums and security crises, in much the same way it was able to in the Central African Republic.

The big winner here could be the US, whose strategic rivalry with China is playing out on the African continent. A considered approach aimed at winning hearts and minds and offering support to countries in need may open a huge opportunit­y for Washington to make up lost ground in what has become a critical arena for this competitio­n. Its recent efforts in brokering a new trade deal with Kenya were seen as a direct response to China’s economic approach in Africa and an attempt to assert more muscular foreign policy.

There are a couple of important caveats to these scenarios. The first is premised on coronaviru­s’s longevity and the ensuing contagion, which remain uncertain. Second, how severely the virus affects the Chinese economy remains to be seen. If China is able to mitigate the disruption quickly, these outcomes could become tail risks and nothing more. Given the authoritar­ian nature of its political system, China will be able to impose draconian crisis management measures in a manner that many Western democracie­s cannot. This is likely to help soften the impact of the outbreak.

The continent’s policymake­rs will need to guard against exploitati­on in the midst of a crisis and be alert to the risks associated with new partners bearing gifts and promises.

Regardless of the likely economic pressures, African policymake­rs should not appear desperate, nor underestim­ate the strategic value that the outbreak offers to global powers. Smart and strategic thinking is necessary. If a crisis is imminent, it would be best not to waste it.

 ??  ??

Newspapers in English

Newspapers from South Africa