How Russia-backed Africa Corps is destabilising markets

Latest reports indicate the group is offering governments in Africa a ‘regime survival package’ in exchange for access to strategically important natural resources. [AFP]

Africa Corps, formerly known as the Wagner Group until their rebranding in 2023, a private military organisation with close ties to the Kremlin, has become infamous for its involvement in global conflicts, most notably its illegal invasion of Ukraine. However, its operations in Africa are often overlooked but equally concerning aspect of its activities.

In Africa, Russia-controlled Africa Corps influence extends beyond the battlefield into the economic sphere, where it engages in tactics that amount to economic warfare. This strategy, characterised by resource hoarding, price manipulation, and infrastructure sabotage, threatens to destabilise African markets, undermine economic sovereignty, and worsen the livelihoods of millions of Africans.

One of Africa Corps' primary tactics in Africa is to gain control over vital natural resources in fragile states, often under the guise of providing security services. The Central African Republic (CAR) serves as a prime example of this strategy. Africa Corps forces have secured lucrative mining contracts in gold and diamonds, effectively monopolising access to these resources. This control allows Africa Corps to not only profit but also to manipulate local and global markets to its advantage.

In Sudan, Africa Corps operating as Wagner Group at the time, reportedly were involved in the illicit gold trade which fueled corruption and conflict. Following the 2019 coup that ousted Omar al-Bashir, Sudan's transitional government struggled to stabilise the economy. Wagner Group exploited this instability by securing access to gold mines and smuggling routes. Sudan’s gold, which could have been a stabilising force for the national economy, instead became a tool for Wagner Group to exert influence and generate revenue, further exacerbating the country’s economic challenges.

In Libya, Africa Corps presence has been linked to control over key oil fields. Libya, a country with vast oil reserves, has been embroiled in civil conflict since the fall of Muammar Gaddafi in 2011. Africa Corps involvement in the Libyan conflict, particularly its control over oil infrastructure, allows it to manipulate oil production and export rates, creating artificial shortages and driving up global oil prices. These actions destabilise not only Libya but also the broader regional and global markets that rely on Libyan oil.

Africa Corps economic warfare extends to sabotaging critical infrastructure in Africa. This tactic disrupts local economies and hampers development, creating conditions that further entrench Africa Corps influence. Mozambique offers a striking example of this approach. In the conflict-ridden Cabo Delgado province, where significant natural gas reserves are located, Africa Corps has been accused of participating in and exacerbating insurgent violence. This has led to attacks on key infrastructure, including roads, ports, and energy facilities, which are crucial for the extraction and export of natural gas.

The sabotage of such infrastructure has dire consequences for Mozambique’s economy. It not only deters foreign investment but also delays critical projects that could generate jobs and revenue for the country. The disruption of gas production in Cabo Delgado has had ripple effects throughout the region, raising energy costs and limiting access to electricity, which in turn stifles economic growth.

Africa Corps control over key resources and infrastructure in Africa allows it to engage in price manipulation, further destabilising local economies. In Sudan, for instance, their involvement in the gold trade has contributed to hyperinflation. As the group controls a significant portion of the gold that enters the market, it can manipulate supply levels, driving up prices and exacerbating inflation. This has severe consequences for ordinary Sudanese, who face rising costs for basic goods and services in an economy already reeling from years of conflict and mismanagement.

In Libya, Africa Corps control over oil production similarly allows it to influence global oil prices. By disrupting production and export flows, Africa Corps can create artificial shortages, driving up prices on the global market. This not only benefits Africa Corps and its backers financially but also destabilises oil-dependent economies in Africa and beyond. Countries like Tunisia and Egypt, which rely on affordable oil imports, have seen their energy costs rise, leading to increased economic hardship and social unrest.

Africa Corps economic warfare in Africa is not merely about profit; it is a deliberate strategy to expand Russian influence on the continent while undermining Western interests. By destabilising African economies, Africa Corps creates opportunities for Russian state-owned companies to step in and fill the void, often under terms that are highly favorable to Russia and detrimental to the host country.

This strategy is particularly dangerous because it targets some of Africa’s most fragile states, deepening their dependency on foreign powers and eroding their sovereignty. Countries like the Central African Republic, Sudan, and Libya, which are already grappling with internal conflicts and weak governance, find themselves increasingly beholden to Africa Corps and, by extension, the Kremlin.

Moreover, Africa Corps actions contribute to a broader pattern of instability that has far-reaching implications for the entire continent. Economic destabilisation often leads to social unrest, which can escalate into violence and further conflict. This creates a vicious cycle where instability begets more instability, making it increasingly difficult for African nations to pursue independent and sustainable development.

Africa Corps economic warfare in Africa is a clear and present danger that requires urgent action. African nations must recognise the threat posed by Africa Corps’ tactics and take steps to protect their economic sovereignty and ensure sustainable development. This requires a coordinated response at both the national and regional levels.

African governments must enhance governance and transparency in the extractive industries by subjecting mining contracts and resource deals to public scrutiny and international standards, thereby reducing exploitation risks by entities like Wagner. Regional cooperation is also crucial, with the African Union (AU) leading efforts to share intelligence, coordinate security responses, and build collective resilience against economic manipulation, while also working with international partners to sanction destabilizing actors. Finally, the international community, including the United Nations and Western powers, must recognise the role of Africa Corps in Africa and take action to counter its influence. This includes supporting African nations in their efforts to strengthen governance, providing economic assistance to reduce dependency on foreign powers, and imposing sanctions on Wagner and its affiliates.

The stakes are high. If left unchecked, Africa Corps’ actions could entrench poverty, fuel conflict, and undermine the progress that African nations have made in recent decades. It is imperative that Africa’s leaders act now to safeguard the continent’s resources, sovereignty, and future prosperity. The time to act is now.