<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108012507-1722016734915-gettyimages-2162908988-AA_26072024_1789841-820x461.jpeg" alt="" class="wp-image-550942" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108012507-1722016734915-gettyimages-2162908988-AA_26072024_1789841-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108012507-1722016734915-gettyimages-2162908988-AA_26072024_1789841-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108012507-1722016734915-gettyimages-2162908988-AA_26072024_1789841-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108012507-1722016734915-gettyimages-2162908988-AA_26072024_1789841-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108012507-1722016734915-gettyimages-2162908988-AA_26072024_1789841-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108012507-1722016734915-gettyimages-2162908988-AA_26072024_1789841.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Former US President Donald Trump (L) shakes hands with Israeli Prime Minister Benjamin Netanyahu (R) as they pose for a photo within their meeting at Mar-a-Lago estate, in Palm Beach, Florida, United States on July 26, 2024.  Amos Ben-Gershom | Anadolu | Getty Images</figcaption></figure>



A flurry of world leaders on Wednesday sent their congratulations to President-elect Donald Trump after the 78-year-old triumphantly declared a “magnificent” victory.



NBC News has projected Trump will win the presidential race.



Addressing his supporters in Florida, Trump said his return to the White House would usher in the “golden age” of America.



U.K. Prime Minister Keir Starmer congratulated Trump on his “historic” election victory, saying the U.K.-U.S. “special relationship will continue to prosper on both sides of the Atlantic for years to come.”



Likewise, European Commission President Ursula von der Leyen, French President Emmanuel Macron, Spanish Prime Minister Pedro Sanchez, Italian Prime Minister Giorgia Meloni and Hungarian Prime Minister Viktor Orban all offered their congratulations to Trump.



Ukrainian President Volodymyr Zelenskyy congratulated Trump on what he described as his “impressive election victory.”



“I appreciate President Trump’s commitment to the ‘peace through strength’ approach in global affairs. This is exactly the principle that can practically bring just peace in Ukraine closer. I am hopeful that we will put it into action together,” Zelenskyy via social media.



“We look forward to an era of a strong United States of America under President Trump’s decisive leadership. We rely on continued strong bipartisan support for Ukraine in the United States,” he added.



Zelenskyy’s comments come as tensions are likely to be running high in Kyiv, with the U.S. vote regarded as a potentially make-or-break moment in the country’s yearslong fight against Russia.



Ukrainian officials were said to be closely watching the result amid concerns that future military aid to the Eastern European country could be cut — a move that would significantly curtail Kyiv’s ability to fight back against Russia’s full-scale invasion.



Russia, meanwhile, appeared to be buoyed by news that Trump has secured a White House victory.



“Trump has one quality that is useful to us: as a businessman to the core, he mortally dislikes spending money on various hangers-on and freeloaders – on idiotic allies, on stupid charity projects and on gluttonous international organizations,” Dmitry Medvedev, Russia’s former president, said via Telegram, according to an NBC translation.



Russian Foreign Ministry spokesperson Maria Zakharova said via Telegram: “Kamala Harris was right when she quoted Psalm 31:5: ‘Weeping may stay for the night, but rejoicing comes in the morning.’”



“Hallelujah, I’d add from my part,” Zakharova said, according to an NBC translation 



Separately, NATO Secretary-General Mark Rutte said Trump’s leadership would be key to keeping the military alliance strong.



“I look forward to working with him again to advance peace through strength through #NATO,” Rutte said.



<h2 class="wp-block-heading" id="h-turkey-india-australia-israel-and-iran"><a></a>Turkey, India, Australia, Israel and Iran</h2>



Turkish President Recep Tayyip Erdoğan congratulated Trump on his election victory.



“In this new period that will begin with the elections of the American people, I hope that Turkey-US relations will strengthen, that regional and global crises and wars, especially the Palestinian issue and the Russia-Ukraine war, will come to an end; I believe that more efforts will be made for a more just world,” Erdoğan said.



“I hope that the elections will be beneficial for our friendly and allied people in the United States and for all of humanity,” he added.



Indian Prime Minister Narendra Modi congratulated Trump on his “historic election victory.”



“As you build on the successes of your previous term, I look forward to renewing our collaboration to further strengthen the India-US Comprehensive Global and Strategic Partnership. Together, let’s work for the betterment of our people and to promote global peace, stability and prosperity,” Modi said.



Australian Prime Minister Anthony Albanese also offered his congratulations to Trump.



“Australians and Americans are great friends and true allies. Working together, we can ensure the partnership between our nations and peoples remains strong into the future,” Albanese said.



Elsewhere, Israeli Prime Minister Benjamin Netanyahu offered his congratulations to both Donald and Melania Trump.



“Congratulations on history’s greatest comeback! Your historic return to the White House offers a new beginning for America and a powerful recommitment to the great alliance between Israel and America,” Netanyahu said. “This is a huge victory!” he added.



Not everyone sent their warm wishes to Trump, however.



“The U.S. presidential election holds no direct relevance to Iran, as the fundamental policies of both the United States and Iran remain unchanged,” Iranian government spokesperson Fatemeh Mohajerani said in a statement, according to the country’s semiofficial news agency, Tasnim.



“It makes little difference who becomes president, as there will be no impact on people’s livelihoods,” Mohajerani said.

108012507-1722016734915-gettyimages-2162908988-AA_26072024_1789841

‘A huge victory’: World leaders react as Trump secures White House return

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2182880212-820x547.jpg" alt="" class="wp-image-550881" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2182880212-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2182880212-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2182880212-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2182880212-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2182880212-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2182880212-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">RALEIGH, NORTH CAROLINA &#8211; NOVEMBER 04: Republican presidential nominee, former U.S. President Donald Trump takes the stage during a campaign rally at the J.S. Dorton Arena on November 04, 2024 in Raleigh, North Carolina. With one day left before the general election, Trump is campaigning for re-election in the battleground states of North Carolina, Pennsylvania and Michigan. (Photo by Chip Somodevilla/Getty Images)</figcaption></figure>



Republican presidential nominee Donald Trump will defeat his Democratic rival, Kamala Harris, and return to the White House for another four years, NBC News projects.



After losing his reelection bid to President Joe Biden in 2020, Trump, the 45th president, will now become the 47th.



Trump’s victory marks a series of historic firsts. At 78, he is the oldest person ever to win a U.S. presidential election. He will be the first president in 132 years — since Grover Cleveland — to serve two nonconsecutive terms in office. And he emerged victorious from what is likely the most expensive presidential race in history.



He is also the first president, current or former, ever to be convicted of crimes. He is the first twice-impeached president ever to win back the White House. He is the first president ever to take office while fending off criminal charges in multiple active federal and state cases.



Trump’s win denies Harris, the vice president, what would have been her own historic milestone: becoming the first woman president of the United States.



It also represents a staggering political achievement for Trump’s running mate, Sen. JD Vance of Ohio, who won his first election just two years earlier.



Just 40 years old, Vance, a former Trump critic turned loyalist and top advocate for the president-elect’s right-wing populist movement, is now first in the presidential line of succession.



If Trump pursues his campaign promises, his second administration will soon set out to enact an ambitious, controversial agenda centered on deep tax cuts, mass deportations and reshaped relationships with foreign leaders.



Trump has also vowed to impose heavy tariffs, claiming that they will simultaneously boost U.S. revenues, strengthen domestic industries and deter unwanted foreign competition.



Mainstream economists have repeatedly warned that the tariffs, which are taxes paid by U.S. importers, will raise prices on American consumers.



It remains to be seen to what extent Trump’s presidential agenda will resemble the sum of his many claims as a candidate.



He has vowed to pardon his supporters who violently rioted at the U.S. Capitol on Jan. 6, 2021.



He has assured that he will quickly broker an end to Russia’s invasion of Ukraine, a vague stance that threatens to undo the Biden administration’s policy of strong support for Kyiv.



He has said he would put Robert F. Kennedy Jr., a vocal vaccine skeptic, in charge of health policy, and tap billionaire Tesla CEO Elon Musk to propose trillions of dollars in government spending cuts.



He has denied Democrats’ warnings that he will behave in office like a dictator, “except for Day One.”



The campaign that delivered Trump’s election was no less historic.



Trump survived an assassination attempt in mid-July, when Thomas Matthew Crooks, a 20-year-old registered Republican who had donated to a Democratic group, opened fire with an AR-15-style rifle during a campaign rally in Pennsylvania. Crooks fatally shot one rally attendee, and one of his bullets grazed Trump’s ear, streaking his face with blood.



Trump’s immediate reaction to the shooting — pumping his fist and defiantly telling his supporters to “fight!” as Secret Service agents rushed him off stage — instantly became a defining moment of the campaign.



Just a few days later, the race was shaken up again.



In late July, Harris, 60, was catapulted to the top of the Democratic presidential ticket after Biden announced he would no longer seek reelection.



Biden’s stunning decision, which made him the first incumbent president since Lyndon Johnson to voluntarily end his White House stay, was one he had initially resisted.



The 81-year-old and his allies, including Harris, had vociferously defended his physical and mental fitness for four more years as president.



But a simmering undercurrent of Democratic uneasiness dramatically boiled over after a shocking debate performance in late June, when a frail and distracted-looking Biden delivered raspy, halting and inarticulate answers versus Trump.



Less than a month later, amid a collapse in internal support and dwindling poll numbers, Biden ended his campaign and backed Harris as his replacement.



The switch effectively reset the race, forcing Trump to throw out many of his well-rehearsed attacks and adapt to an opponent unburdened by Biden’s most glaring weaknesses.



It wasn’t a seamless transition: Harris bested Trump in the candidates’ one and only debate in mid-September, and Trump declined her repeated challenges to face off again.



But polls gradually showed the race tightening, as Trump’s campaign worked to blame Harris for the inflation and immigration woes that had dragged down Biden’s approval ratings throughout his presidency.



This is breaking news. Please check back for updates.

Donald Trump Campaigns For President In Raleigh, North Carolina

Donald Trump defeats Kamala Harris to win 2024 presidential election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-820x547.jpg" alt="" class="wp-image-550863" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A line of trucks along the N4 national highway, wait to cross South Africa&#8217;s border into Mozambique, on the outskirts of Komatipoort, South Africa, on Friday, July 14, 2023. An often impenetrable logjam of trucks laden with coal at South Africa&#8217;s crossing with Mozambique has brought chaos to the sleepy border town Komatipoort. Photographer: Leon Sadiki/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Nov 6 (Reuters) &#8211; South Africa has temporarily closed its main border crossing with Mozambique over safety concerns, its government news agency said on Wednesday, as protests against last month&#8217;s disputed election in Mozambique continue to escalate.



South Africa has closed the Lebombo port of entry in its Mpumalanga province after receiving reports of vehicles being torched on the Mozambican side, the government news agency said.



&#8220;Due to these security incidents and in the interest of public safety, the port has been temporarily closed until further notice,&#8221; it quoted Michael Masiapato, the commissioner of the Border Management Authority as saying on Tuesday night.



Masiapato said the border authority would reopen the Lebombo crossing as soon as it was safe to do so.



The latest protests in Mozambique are part of a week of demonstrations called by presidential candidate Venancio Mondlane, who came second in official results for the Oct. 9 election but claims to have won.



The protests are set to culminate in a &#8220;national shutdown&#8221; and march on the capital Maputo on Thursday.



At least 10 people have been killed and scores injured in protests in which demonstrators have burned tires, blocked roads and marched to offices of the ruling party, Frelimo. Authorities have responded with tear gas and live ammunition, according to human rights groups, and restricted access to the internet.



The electoral commission has declined to comment on opposition allegations of fraud, while Frelimo has not replied to requests for comment.



(Reporting by Bhargav Acharya and Sisipho Skweyiya in Johannesburg and Manuel Mucari in Maputo; Editing by Alexander Winning and Ros Russell)

Global Demand for Coal Is Bringing Mayhem to South African Border Town

South Africa closes main border with Mozambique as post-election protests escalate

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/CSTYBJFNSZMW3KMGGHXBEM6LOY-820x547.jpg" alt="" class="wp-image-550807" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/CSTYBJFNSZMW3KMGGHXBEM6LOY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/CSTYBJFNSZMW3KMGGHXBEM6LOY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/CSTYBJFNSZMW3KMGGHXBEM6LOY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/CSTYBJFNSZMW3KMGGHXBEM6LOY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/CSTYBJFNSZMW3KMGGHXBEM6LOY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/CSTYBJFNSZMW3KMGGHXBEM6LOY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Electric wires are pictured in the Ojuelegba district of Nigeria&#8217;s commercial capital Lagos, June 18, 2018. REUTERS/Akintunde Akinleye/File Photo</figcaption></figure>



ABUJA, (Reuters) &#8211; Nigeria&#8217;s national grid suffered a partial collapse on Tuesday, the state power transmitter said, marking the ninth incident this year to have caused power outages across the country.



The Transmission Company of Nigeria (TCN) said the grid experienced a disturbance at around 1252 GMT, triggered by a series of line and generator trips destabilising the system.



While some regions, including the capital Abuja, regained power about an hour after the collapse, outages continued elsewhere.



&#8220;TCN engineers are already working to quickly restore bulk power supply to the states affected by the partial disturbance,&#8221; spokesperson Ndidi Mbah said.



Blackouts are frequent in Nigeria, Africa&#8217;s most populous country with over 200 million people, due to ageing power infrastructure, vandalism and inadequate gas supply for its thermal plants, which account for over 75% of output.



Although Nigeria has the infrastructure to generate about 13,000 megawatts of power, its creaking grid can only distribute a third of it, forcing businesses and households to run costly fuel generators.



(Reporting by Camillus Eboh in Abuja; writing by Elisha Bala-Gbogbo; editing by Mark Heinrich)

FILE PHOTO: Electric wires are pictured in Ojuelegba district in Nigeria’s commercial capital Lagos

Nigeria’s power grid partially collapses again, causing blackouts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-820x547.jpg" alt="" class="wp-image-550516" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Prince William, Prince of Wales, meets the President of South Africa, Cyril Ramaphosa, at his Official Residence in Cape Town, South Africa, November 5, 2024. Victoria Jones/Pool via REUTERS</figcaption></figure>



CAPE TOWN, Nov 5 (Reuters)&nbsp;&#8211;&nbsp;Britain&#8217;s Prince William paid a visit to South African President Cyril Ramaphosa on Tuesday in Cape Town after taking a nature walk with rangers and conservationists at Table Mountain National Park.



The Prince of Wales is on a four-day&nbsp;trip to South Africa&nbsp;for the annual awards ceremony of his Earthshot Prize, which will be held on Wednesday. He will also attend a global wildlife summit and hold other climate-focused engagements.



Video footage shared by Ramaphosa&#8217;s office showed William and Ramaphosa shaking hands and exchanging pleasantries at the start of their meeting.



&#8220;The visit is indicative of the strong ties the United Kingdom, including the Royal Family, share with South Africa, and also another step towards the deepening of these historic ties,&#8221; South Africa&#8217;s presidency said in a statement.



The presidency said South Africa was pleased to host this year&#8217;s Earthshot Prize awards because it highlights the impact climate change and environmental degradation have in Africa.



Launched in 2020, the prize aims to find innovations to combat climate and other green issues, and awards five winners 1 million pounds ($1.3 million) each to drive their projects.



(Writing by Nellie Peyton; Editing by Alexander Winning and Alison Williams)

Britain’s Prince William’s four-day visit to South Africa

Prince William meets President Ramaphosa on South Africa trip

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1005" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/3GQDJSI4GBKYFLS5LW25CALRGU.avif" alt="" class="wp-image-550496"/><figcaption class="wp-element-caption">Shoppers walk within Merkato, one of Africa&#8217;s biggest open air market, in Addis Ababa, Ethiopia, April 25, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



NAIROBI, Nov 5 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund has raised Ethiopia&#8217;s net international reserves target to facilitate payments of upcoming hard currency bills, the Fund said.



The East African nation secured a $3.4 billion, four-year financing program from the IMF in July after carrying out a series of reforms including floating its birr currency. It is also in the midst of a fresh push to put its debt restructuring back on track.



&#8220;An increase in near-term target is warranted by Ethiopia&#8217;s vulnerabilities and heightened uncertainty around outlook,&#8221; the IMF said in a report published late on Monday.



Lower-than-expected volumes of hard currency sales by the central bank through auctions and higher gold exports contributed to an over-performance of the net international reserves target for August, the IMF said.



The net international reserves stood at $1.3 billion in mid-August, more than double the target of $630 million, the Fund said.



It raised the end-June 2025 target by $300 million to $400 million, to help create a buffer for the country to settle maturing letters of credit for fuel imports issued before reforms started.



The flotation of the birr currency resulted in the convergence of the official and the black market rates, the IMF said, but market activities had picked up at a slower pace than expected, leading to persistent unmet demand for dollars.



Ethiopia plans to reach a deal with bilateral creditors by year-end, the Fund said, followed by a deal with its Eurobond investors &#8220;as soon as is feasible&#8221; after that.



Bondholders have rejected the size of the proposed reduction in the principal amount, known as a haircut, indicated at 18% in a recent investor presentation, saying the government was ignoring the fact that Ethiopia faces a liquidity issue, not an insolvency one.



&#8220;The authorities are making good faith efforts to agree terms with Eurobond holders,&#8221; the IMF said.



(Reporting by Duncan Miriri; Editing by Bernadette Baum)

3GQDJSI4GBKYFLS5LW25CALRGU

IMF raises Ethiopia’s international reserves target after first review

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1005" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WH675YVHBZPIZNYJUJB4CMI73E.avif" alt="" class="wp-image-550493"/><figcaption class="wp-element-caption">A view shows a toll station on the Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, in Nairobi, Kenya May 8, 2022. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Nov 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector saw a modest improvement in business conditions in October, as activity levels and employment returned to growth, an S&amp;P Global survey showed on Tuesday.



The headline Purchasing Managers&#8217; Index (PMI) rose to 50.4 in October from 49.7 in September, indicating a marginal upturn in the health of the private sector. A PMI reading above 50.0 signals growth, while below that level indicates contraction.



Business activity increased for the second time in three months, driven by rising sales and greater client interest, despite ongoing cash flow challenges and political uncertainty. Employment levels also rose for the first time since July, although the pace of job creation was mild.



&#8220;Despite the slight rise in output, many firms continued to struggle with cash flow constraints, tough economic conditions, rising costs and political uncertainty,&#8221; the survey reported.



Purchasing efforts accelerated, leading to the most significant increase in inventories since August 2023, as firms stocked up in anticipation of new customers. Input cost pressures remained mild, resulting in only a slight rise in average prices charged.



Confidence regarding future activity rose to a four-month high, with firms planning new outlets and investments in products and marketing. However, sentiment remained subdued compared to historical trends.



While input prices rose modestly, driven by higher tax payments and material costs, reduced fuel prices helped keep cost burdens lower than last year. As a result, the increase in selling prices was among the slowest in nearly four years.



(Reporting by Reuters; Editing by Toby Chopra)

WH675YVHBZPIZNYJUJB4CMI73E

Kenya’s private sector activity returns to growth in October, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Nov 5 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Tuesday.



<h2 class="wp-block-heading" id="h-economic-events">ECONOMIC EVENTS</h2>



S&amp;P Global Whole Economy PMI for October



South Africa&#8217;s weekly auction of long-term bonds



<h2 class="wp-block-heading" id="h-south-african-markets">SOUTH AFRICAN MARKETS</h2>



South Africa&#8217;s rand gained on Monday against a weaker dollar, as investors geared up for the U.S. to elect its next president and the Federal Reserve&#8217;s interest rate announcement this week.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed little changed.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Stock markets moved sideways and an uneasy calm settled over currencies and bonds as investors waited for the United States to choose a new leader with polls showing the contest on a knife edge.



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



U.S. stocks closed slightly lower after a choppy session on Monday, as investors prepared for a crucial week in which Americans will elect a new president and the Federal Reserve will announce its policy statement.



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



Gold traded in a narrow range on Tuesday as investors stayed away from taking big positions ahead of the U.S. presidential election and the Federal Reserve policy meeting later this week.



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



&#8211; SA efforts to tackle child poverty miss the mark



&#8211; Treasury may tap PIC for health funding



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Nov 5

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Nov 5 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



Release of the Stanbic Bank Kenya Purchasing Managers&#8217; Index survey for October.



German Chancellor Olaf Scholz and Somali President Hassan Sheikh Mohamud hold a press conference in Berlin.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Stock markets moved sideways and an uneasy calm settled over currencies and bonds as investors waited for the United States to choose a new leader with polls showing the contest on a knife edge.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices traded in a narrow range on Tuesday ahead of what is expected to be an exceptionally close U.S. presidential election, after rising more than 2% in the previous session as OPEC+ delayed plans to hike production in December.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



South Africa&#8217;s rand gained on Monday against a weaker dollar, as investors geared up for the U.S. to elect its next president and the Federal Reserve&#8217;s interest rate announcement this week.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



The Kenyan shilling was steady against the dollar on Monday, as foreign exchange supply from tourism and tea exports matched demand from the manufacturing and oil sectors, one trader said.



<h2 class="wp-block-heading" id="h-sudan-politics">SUDAN POLITICS</h2>



Salwa Abdallah was recuperating from a caesarean section and tending to her one-month old baby when soldiers from the Rapid Support Forces barged into her home in Sudan&#8217;s eastern El Gezira state late last month.



<h2 class="wp-block-heading" id="h-nigeria-protests">NIGERIA PROTESTS</h2>



Nigerian President Bola Tinubu directed that all minors detained during anti-government protests in August be freed and treason charges against them dropped, Information Minister Mohammed Idris said on Monday.



<h2 class="wp-block-heading" id="h-comoros-disaster">COMOROS DISASTER</h2>



At least 25 people died off Comoros islands after traffickers capsized their boat on Friday night, the United Nations&#8217; migration agency IOM said on Monday, the third such incident in three months.



((Compiled by Nairobi Newsroom))

Stock market report. 3d illustration

African Markets – Factors to watch on Nov 5

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="522" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-820x522.jpg" alt="" class="wp-image-550420" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-820x522.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-768x489.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-1536x977.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A teller is seen at a Pick n Pay store at Maponya mall in Soweto, South Africa, October 20, 2022. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, Nov 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s private sector maintained its growth trajectory in October, bolstered by a decline in business costs and selling prices, a Purchasing Managers&#8217; Index (PMI) survey showed on Tuesday.



The S&amp;P Global South Africa PMI recorded a reading of 50.6, slightly down from September&#8217;s 51.0, but still above the 50.0 mark that indicates growth.



The PMI has now signalled expansion for three consecutive months.



New orders continued to grow, marking the longest period of expansion since mid-2022, although the pace slowed to a marginal rate. The growth was primarily driven by the industry and wholesale &amp; retail sectors, while construction and services lagged.



A notable development was the first drop in input costs in over four years, driven by a strong rand, lower fuel prices and reduced interest rates. This allowed firms to cut selling prices, boosting customer spending.



&#8220;October was another strong month for the South African economy,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



&#8220;The survey data also provided further evidence that inflationary pressures are falling.&#8221;



Despite rising sales, employment decreased for the fifth consecutive month as firms remained cautious about costs. However, input purchases rose for the first time since May, with firms increasing inventories amid improving demand and lower borrowing costs.



Business confidence improved, with 52% of respondents expecting output to rise over the next year, citing political stability and improved power availability as key factors. Nonetheless, challenges remain, with delivery delays persisting due to domestic port congestion.



(Reporting by South Africa bureau; Editing by Toby Chopra)

A teller is seen at a Pick n Pay store

South Africa’s private sector growth sustained in October as costs fall, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/4IJSVHM2FFM5LEEQMNYEX3P3XQ-scaled.jpg" alt="" class="wp-image-550389" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/4IJSVHM2FFM5LEEQMNYEX3P3XQ-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/4IJSVHM2FFM5LEEQMNYEX3P3XQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/4IJSVHM2FFM5LEEQMNYEX3P3XQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/4IJSVHM2FFM5LEEQMNYEX3P3XQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/4IJSVHM2FFM5LEEQMNYEX3P3XQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/4IJSVHM2FFM5LEEQMNYEX3P3XQ-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">David Lammy arrives at 10 Downing Street, following the results of the election, in London, Britain, July 5, 2024. REUTERS/Hannah McKay</figcaption></figure>



ABUJA, (Reuters) &#8211; Nigeria and Britain said on Monday they had established a strategic partnership to boost economic growth, strengthen security cooperation and enhance personal ties.



Nigerian Foreign Minister Yusuf Tuggar and his British counterpart David Lammy outlined a partnership that also seeks to reinforce ongoing security and counter-terrorism efforts.



&#8220;By advancing our economic ties through investments and trade, we can unlock substantial growth for both nations, drive job creation and enhance local value addition,&#8221; Tuggar said during a joint press conference in Abuja, Nigeria&#8217;s capital.



Lammy, who is on his first official visit to Africa as Foreign Secretary, emphasized Britain&#8217;s commitment to a long-term partnership with Nigeria.



&#8220;It is an overarching framework for our relationship covering the breadth of things that we do together,&#8221; said Lammy, who also highlighted the importance of addressing economic growth, climate change, and security threats.



Lammy also stressed personal connections, adding that the sizeable Nigerian diaspora in Britain offers the potential for increased cultural exchange and economic cooperation.



(Reporting by Felix Onuah; Writing by Elisha Bala-Gbogbo; Editing by Alexander Smith)

Parliamentary election in Britain

Nigeria and Britain hail partnership to boost economic ties, security

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-820x574.jpg" alt="" class="wp-image-550158" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Britain&#8217;s Prince William arrives at Cape Town International Airport for a 4 day visit where he will present the 4th annual Earthshot Prize in Cape Town, South Africa, November 4, 2024.REUTERS/Esa Alexander</figcaption></figure>



CAPE TOWN, Nov 4 (Reuters) &#8211; Britain&#8217;s Prince William landed in Cape Town on Monday for a four-day trip to South Africa centred on his annual Earthshot Prize for environmental innovators.



The heir to the British throne will attend a global wildlife summit and meet with South African President Cyril Ramaphosa during the trip, which is his first to South Africa since 2010.



On Wednesday he will participate in the awards ceremony for the Earthshot Prize, which gives five winners 1 million pounds ($1.3 million) each to pursue projects addressing climate change and other environmental issues.



William launched the prize in 2020, inspired by a visit to Namibia. Its name is a nod to former U.S. President John F. Kennedy&#8217;s ambitious &#8220;moonshot&#8221; project which led to the 1969 lunar landing.



&#8220;By the end of the week, I want The Earthshot Prize to have provided a platform to all those innovators bringing about change for their communities, encouraged potential investors to speed African solutions to scale and inspired young people across Africa who are engaged in climate issues,&#8221; he said in a statement ahead of the visit.



The Prince Of Wales is making the trip alone as his wife Kate is still managing a return to work after finishing a course of preventative chemotherapy for cancer.



South Africa is a former British colony and some people there have called for the return of diamonds originally discovered in the country and then set in the British crown jewels.



($1 = 0.7717 pounds)



(Reporting by Esa Alexander; Writing by Nellie Peyton; Editing by Olivia Kumwenda-Mtambo and Gareth Jones)

Britain’s Prince William arrives in South Africa

UK’s Prince William arrives in South Africa for climate-focused trip

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg" alt="" class="wp-image-516586" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-1536x976.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller handles U.S. dollar banknotes and Kenya shilling banknotes inside the cashier&#8217;s booth at a forex exchange bureau in downtown Nairobi, Kenya, February 16, 2024. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Nov 4 (Reuters) &#8211; The Kenyan shilling was steady against the dollar on Monday, as foreign exchange supply from tourism and tea exports matched demand from the manufacturing and oil sectors, one trader said.



The shilling traded at 128.50/129.50 to the dollar at 0656 GMT, the same as last Thursday&#8217;s closing rate. The markets were closed Friday for a public holiday.



(Reporting by Sonia Rao; Editing by Hereward Holland)

RLVCCF47LVIWPJR4O2PPITYMVI

Kenya shilling steady on tourism, tea exports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Nov 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand gained in early trade on Monday against a weaker dollar, as investors geared up for the U.S. to elect its next president and the Federal Reserve&#8217;s interest rate announcement this week.



At 0613 GMT, the rand traded at 17.5250 against the U.S. dollar, about 0.8% stronger than its previous close.



The dollar last traded about 0.2% weaker against a basket of currencies.



&#8220;The US presidential election on Nov. 5 is the main event this week, eclipsing even the Federal Reserve&#8217;s interest-rate decision two days later,&#8221; said Jee-A van der Linde, senior economist at Oxford Economics in a research note.



As the world&#8217;s biggest economy heads to the polls on Tuesday, Republican candidate Donald Trump and Democratic candidate Kamala Harris are virtually tied in opinion polls.



On Thursday, markets will look to the Fed&#8217;s latest rate decision, where investors expect a 25-basis-point rate cut.



&#8220;These developments will be the main driving forces for financial market,&#8221; van der Linde added.



South Africa&#8217;s benchmark 2030 government bond was unchanged in early deals, with the yield 9.32%.



(Reporting by Tannur Anders; Editing by Rashmi Aich)

South African Economy As Inflation Rate Rises For First Time In 2017

South African rand gains as markets brace for US election, rate decision

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UGANDA-SHILLING.jpg" alt="" class="wp-image-524644" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UGANDA-SHILLING.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UGANDA-SHILLING-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UGANDA-SHILLING-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UGANDA-SHILLING-768x512.jpg 768w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, Nov 4 (Reuters) &#8211; The Ugandan shilling was stable on Monday, drawing some support from muted hard currency appetite by merchandise importers, traders said.



At 0826 GMT commercial banks quoted the shilling at 3,655/3,665, same level as Friday&#8217;s close.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

UGANDA SHILLING

Ugandan shilling stable on muted FX appetite

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ceb0ac7e-4319-b4d5-fc10-f6e2fa5b8b75-820x550.jpg" alt="" class="wp-image-550093" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ceb0ac7e-4319-b4d5-fc10-f6e2fa5b8b75-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ceb0ac7e-4319-b4d5-fc10-f6e2fa5b8b75-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ceb0ac7e-4319-b4d5-fc10-f6e2fa5b8b75-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ceb0ac7e-4319-b4d5-fc10-f6e2fa5b8b75-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ceb0ac7e-4319-b4d5-fc10-f6e2fa5b8b75.jpg 1500w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



South Africa’s competition landscape is under intense scrutiny following the Competition Tribunal’s recent decision to block Vodacom’s R14 billion acquisition of a co-controlling stake in Vumatel parent Maziv — even after the merging parties agreed to a range of additional conditions sought by the competition authorities. The decision has shocked the telecommunications sector, threatens a R10 billion investment into fibre networks in underserviced parts of South Africa, and risks halting broader industry consolidation.



South Africa&#8217;s competition policy is a necessary focal point of economic and political discourse, particularly in the context of its ability to foster fair competition while also promoting social equity. It is worth examining a few of this policy’s good, bad and the ugly elements, and considering areas where it could be more effective.



First the good: Our competition policy’s commitment to inclusive growth is commendable. The integration of public interest considerations into merger assessments marked a shift from traditional competition law focused solely on economic efficiency. For instance, high-profile mergers such as Walmart&#8217;s acquisition of Massmart and AB InBev&#8217;s takeover of SABMiller included conditions that mandated support for local businesses and job protection. While imperfect, these demonstrated the policy&#8217;s potential to drive economic transformation by ensuring large corporations positively contribute to the communities in which they operate.



South Africa also benefits from an established and still-strong regulatory framework through independent bodies, notably the Competition Tribunal’s oversight of the Competition Commission. There has also been prosecutorial success against anti-competitive practices in sectors such as construction and food. The penalties imposed for price-fixing practices during the Covid-19 pandemic indicated a willingness to maintain market integrity.



Moving to the bad: The effectiveness of our competition policy is, however, undermined by several factors. By integrating public interest considerations into competition assessments of mergers and acquisitions, the policy creates an unduly complex regulatory environment.



This deters foreign investment. Merger and acquisition evaluations, based on their social impact, can result in investors viewing the regulatory risks as too high, while adding public interest elements increases costs, which erodes South Africa’s ability to attract investment. In the Walmart-Massmart case, for example, among the conditions the Competition Commission attached to Walmart’s acquisition of Massmart, was a commitment not to retrench for a several years — this added a layer of uncertainty, risk and cost for the merging parties that was difficult to predict in a dynamic retail market.



There is also growing criticism about the efficacy of the competition policy’s enforcement mechanisms in the face of anti-competitive practices. While there have been some prosecutorial successes, the current framework may not be sufficient to address emerging challenges.



Finally, the ugly: The historic instances where public interest criteria were misapplied is undoubtedly one of the least attractive aspects of our country’s competition policy. The public interest grounds outlined in Section 12A(3) require consideration of, in summary: the effect the merger will have on an industrial sector or region; employment; the ability of SMEs or businesses owned by historically disadvantaged individuals (HDIs) to enter, participate in or expand within the market; the ability of national industries to compete in international markets; and the promotion of a greater spread of ownership.



However, our research shows that “the ability of national industries to compete in international markets” has hardly featured in merger decisions. This element is vital to ensuring South Africa’s export competitiveness.



Further, the reliance on “the promotion of a greater spread of ownership, in particular to increase the levels of ownership by historically disadvantaged persons and workers within that market” — can be seen as misguided. While it is understandable that the interests of HDIs be considered, direct legislation such as the Broad-based Black Economic Empowerment Act should drive transformation. Using competition regulation in this way even risks flying against the objectives of other direct legislation.



One of the most egregious examples of the Competition Commission failing to balance public interest considerations was in its initial blocking of the Burger King transaction. Burger King was to be sold by Grand Parade Investments (GPI) — a majority black-owned company — to a foreign private equity firm. In its public statements on the matter, the Commission made no reference to public interest considerations related to employment, or the ability of SMEs or HDI-owned firms to effectively enter, participate in or expand within the market. However, if HDI-owned firms are prevented from exiting their investments, they cannot free up capital for other investment opportunities — effectively preventing them from competing or creating value for their investors.



Black investors in GPI, almost 100% of whom supported the transaction, were directly and negatively affected by the decision. GPI had its competitiveness damaged as a black-owned company and the precedent damaged the competitiveness of HDI-owned investment firms in general. The Commission lost sight the fact that HDIs must be allowed to realise value by exiting investments when they see fit, as well as invest in alternative assets, thereby increasing black ownership elsewhere. Ultimately, the then Minster of the Department of Trade and Industry, Ebrahim Patel, and the parties came to an out-of-court arrangement, which included imposing an employee share ownership trust. But the damage was done – the arbitrariness of how public interest considerations were applied was clear for all to see.



In the Vodacom-Maziv case, the Competition Tribunal has yet to release its reasons for blocking the deal. However, they are largely expected to relate to concerns about market concentration. But not all market concentration is created equally. In certain sectors, notably renewable energy and telecommunications, concentrated players are better positioned to invest in the infrastructure necessary for growth and inclusion. They can achieve the economies of scale needed for lower prices and more efficient operations. In this case, having larger players is not anti-competitive — it stimulates a more competitive economy overall.



The arbitrariness of how public interest considerations are applied appears to be particularly glaring in the Vodacom-Maziv case. The merging parties had committed to investing at least R10 billion and passing at least one million homes in lower-income areas over five years, providing high-speed internet to over 600 adjacent schools and police stations at no cost, creating up to 10 000 new jobs, and establishing a R300 million enterprise and supplier development fund to prioritise SME development. These proposals die with the deal the Tribunal blocked. The cost of this regulatory overreach will be paid disproportionally by South Africa’s poor.



It is worth noting how South Africa’s competition policy differs from other developing markets. The focus on integrating public interest factors and black economic empowerment (BEE) into competition regulation contrasts with many developing countries’ priority to attract foreign direct investment — with less stringent regulatory oversight on foreign acquisitions — and stimulate efficient, competitive markets.



Competition regulation needs to go back to its core objective: fostering competition. Ensuring that consumers have access to choice and are free to exercise their choice leads to clear public benefits. The economy becomes more competitive, every point of supply chains becomes cheaper, consumers are better off and South African final products are more competitive in international markets.



There needs to be a rational and transparent approach to applying competition policy to create a predictable environment and reduce risk for those businesses operating in South Africa in those considering transactions. This would maximise public interest.



Competition policy and our competition authorities play a vital role in South Africa’s economy. These should not be repurposed for other objectives, no matter the merit of those objectives themselves. There should be coherence across government, with different ministries directly regulating the issues within their competencies, rather than using competition law to regulate indirectly.



It is essential that our regulators maintain their focus on fostering genuine competition and stimulating meaningful economic growth. This will provide a bedrock for a more equitable South Africa.

ceb0ac7e-4319-b4d5-fc10-f6e2fa5b8b75

The good, the bad and the ugly: South Africa’s competition policy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="590" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-820x590.jpg" alt="" class="wp-image-550088" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-820x590.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-300x216.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-768x553.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-1536x1105.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A branch of South African mobile communications provider Vodacom in Cape Town is shown in this picture taken November 10, 2015. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



JOHANNESBURG, Nov 4 (Reuters)&nbsp;&#8211;&nbsp;The Competition Tribunal&#8217;s decision to block a merger between Vodacom and a major fibre operator will likely derail a push by South African telecoms firms to use big M&amp;A deals as a shortcut to digital infrastructure expansion, analysts said.



The ruling,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3M50FV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">which blocked</a>&nbsp;South Africa&#8217;s top telco from taking a 30% stake in major fibre operator Maziv, could force companies to build their own networks or pursue smaller, less controversial tie-ups, delaying much-needed investment by years.



For Andrew Bahlmann of M&amp;A advisory firm Deal Leaders International, it is a setback for the entire industry.



&#8220;For telcos and fibre network operators contemplating future mergers, this prohibition of a merger for which the business case was clearly positive indicates that the path to consolidation is fraught with challenges,&#8221; he said.



The communications sector in Africa&#8217;s most advanced economy needs significant capital injections to ramp up infrastructure development, particularly if connectivity is to be improved in low income and rural areas.



Dominant companies like Vodacom&nbsp;VODJ.J&nbsp;and MTN&nbsp;MTNJ.J&nbsp;say mergers would allow them to leverage existing networks as a springboard to extending and improving coverage. And some smaller firms, including fibre operators, say tie-ups would provide the funding they need to grow.



But regulators fear that consolidation could lead to higher prices, less choice and lower quality for consumers.



The tribunal has yet to detail the grounds for Tuesday&#8217;s ruling, and Vodacom, which is majority-owned by Britain&#8217;s Vodafone&nbsp;VOD.L, said it was considering an appeal.



The South African Competition Commission, which testified before the tribunal that the deal would open the door to further consolidation and harm consumers, welcomed the decision.



But Old Mutual Wealth Private Client research analyst Tasneem Samodien said it would likely lead to stagnation.



&#8220;What it does is delay investment by current market participants until they determine a commercially viable path to scale,&#8221; Samodien said.



&#8220;For consumers, particularly those in outlying areas where network connection is relatively poor, the roll out of infrastructure could be delayed.&#8221;



<h2 class="wp-block-heading" id="h-inevitable-consolidation">INEVITABLE CONSOLIDATION?</h2>



Both Vodacom and MTN have been aggressively rolling out fixed-wireless networks that use 4G and 5G, while also investing in their small fibre businesses. But as they do this, they require more access to fibre links that carry mobile traffic from base stations back to the core network.



South Africa&#8217;s existing installed fibre capacity is owned by a number of operators of varying sizes. Tying up with them could give the mobile operators access to fibre networks while providing fibre companies capital to expand to new areas.



MTN has called consolidation in the sector &#8220;inevitable and even desirable&#8221;. But even before last week&#8217;s ruling, mergers were facing challenges, mainly over regulatory concerns.



In 2022, MTN&#8217;s talks to buy out smaller rival Telkom fell through. And last year, Rain&#8217;s push to be bought by Telkom ended without a deal.



Vodacom had pledged that much of the 6-9 billion rand ($342-512 million) in cash it was offering as part of the Maziv bid would go to infrastructure investment. It said a further 10 billion rand over five years would target investment in mainly low income areas.



But that was not enough to win over the tribunal.



That now leaves the company, and the sector more broadly, with slow and costly expansion options.



&#8220;Vodacom can continue with its own fibre network rollout and consider merging with several other small regional fibre operators,&#8221; Peter Takaendesa, head of equities at Mergence Investment Managers, said.



Vodacom&nbsp;declined to&nbsp;comment.



But analysts say that the Competition Tribunal&#8217;s decision will make M&amp;A deals in South Africa&#8217;s telecoms sector much less attractive to capital.



And even with financing, factors including environmental approval timelines and fibre equipment supply chains mean the big mobile operators have a long road ahead if they are to make up ground on existing fibre networks.



&#8220;My guess is five to 10 years,&#8221; Takaendesa said.



($1 = 17.5575 rand)



(Reporting by Nqobile Dludla; Editing by Joe Bavier and Mark Potter)

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