A turning point in Africa's development

Peaceful handover of power in Nigeria a harbinger of peace and prosperity for continent

It might not be politics as usual in Africa anymore - at least that's what many believe after Nigeria's presidential election.

The peaceful handover of power from incumbent Goodluck Jonathan, who lost the election, to Muhammadu Buhari is a historic signal that African democracy has come of age. Buhari assumes office on May 29.

Many international observers were surprised, but pleased, when Jonathan accepted defeat gracefully rather than challenge the election results. A scenario that's been all too common in Africa is an election loser refusing to accept defeat, throwing the country into turmoil and violence.

A few nations on the continent, including Ghana, Senegal and most of the countries in southern Africa, have become democracies worthy of imitation. But Nigeria is the most populous nation on the continent and its biggest economy, so what it does makes a huge impression on its neighbors. Hopefully they will follow its example of the peaceful handover of power.

The calm Nigerian transition has already led to the international business community reassessing its reluctance to do deals in the country.

Foreign investors had been holding back for two reasons. One was a fear that the Boko Haram insurgents in northeastern Nigeria would seize or destroy any investments they made. Another was concern about what post-presidential election political turmoil might do to an investment.

Africa has suffered far too many violent political transitions since emerging from colonialism in the 1960s and 1970s. Two recent examples were the overthrow of the government in Burkina Faso and a failed coup against the leader of the Eastern African nation of Burundi.

More often than not, political instability is an investment killer. In those instances, both countries and individual citizens suffer - countries from having smaller economies than they should, and citizens from having less income.

Western countries have not only criticized some African countries' governments but have also canceled business deals with them. In addition, many Western companies have refused to invest in the first place in countries where political tumult could lead to losing their investments.

China, which has become one of the continent's biggest investors, never criticizes an African country, nor refuses to do business with it, because of its political situation. This approach is rooted in the conviction that every country is entitled to choose the system of governance that fits its situation.

For a long time, most of the investors in Africa were Western. Many countries on the continent were delighted when China gave them an alternative. Now other partners are showing up, including several countries of the former Soviet Union, starting with the biggest, Russia.

Russia began courting Africa again a decade ago after spending 15 years getting its political and economic house in order following the collapse of the Soviet Union in 1991.

Proof that Russia is succeeding on the continent includes two recent multibillion investment agreements - for a platinum mine in Zimbabwe and an oil refinery in Uganda.

Africa has welcomed Russia not only as an alternative investor to the West and China, but also because the Soviet Union never tried to colonize the continent.

Russia believes Africa is crucial to its goal of creating one of the world's strongest economies. It sees the continent as strategically important to the global economy because of vast oil and mineral deposits and its young population.

Another country in the former Soviet Union that has the potential to become an important economic partner of Africa, as well as a model for the continent's development, is Kazakhstan.

As with many African nations, the bulwark of Kazakhstan's economy is natural resources - oil, gas and minerals. But it is also a major grain exporter that could help Africa with food and agricultural technology.

And it is taking steps to diversify its economy beyond natural resources into sectors such as chemicals, manufacturing and information technology, a path many African nations have announced they will be taking, too.

Clear signs of Kazakhstan's intention to bolster ties with the continent are that it included business-with-Africa sessions in its Astana Economic Forum last year. This year, it agreed to its first joint venture with an African nation (a deal with South Africa's Paramount Group to assemble armored personnel carriers), donated $350,000 to a global fund to combat Ebola, and opened new embassies in South Africa in 2013 and Ethiopia this year.

A lot of African countries have learned from Nigeria's success in developing its economy, not just in petroleum and minerals but in other sectors as well. They would be wise to follow Nigeria's lead in achieving peaceful political transition because stability is always good for an economy and a people's standard of living.

If other nations on the continent can attain the kind of peaceful trading of power that Nigeria enjoyed in the aftermath of April's presidential election, they will have a better chance of attracting investment. And that, in turn, will mean more prosperity for their country and their citizens.

Marshall Comins and Dmitry Yermolaev are the media and investor relations directors of the Kirishi-2 Oil Refinery, Russia's first "waste oil" refinery, set to launch in 2017. Experts in Russia-Africa relations, they are also managing partners of the Africa Investment Agency. The views do not necessarily reflect those of China Daily.

(China Daily Africa Weekly 05/29/2015 page11)