<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GFFKBSSER5LL7JUFKFZRKRAD64.avif" alt="" class="wp-image-573655"/><figcaption class="wp-element-caption">Ghana&#8217;s President-elect John Dramani Mahama speaks during the swearing-in ceremony for his second term at the Black Star Square in Accra, Ghana January 7, 2025. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Jan 9 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s new President John Dramani Mahama has named leader of Parliament Cassiel Ato Forson as finance minister, as he seeks to assemble a government able to rapidly address growing discontent by boosting the economy and creating jobs.



Mahama, who was sworn in on Tuesday after winning an election in December, named John Abdulai Jinapor as energy minister and Dominic Akuritinga Ayine as attorney general and justice minister, a presidency statement said on Thursday.



The new government has inherited an economy emerging from its worst crisis in a generation.



Mahama, who served a first term in office from 2012 to 2017, has pledged to prioritise economic recovery and stability, improve the business and investment climate and fight graft.



On the campaign trail, he pledged to nominate all cabinet ministers within his first 14 days in office, and to keep cabinet the lean.



Ministerial nominees have to be approved by Parliament, where Mahama&#8217;s National Democratic Congress (NDC) party holds a two-thirds majority.



Forson, a 46-year old chartered accountant and lawmaker representing the Ajumako-Enyan-Essiam constituency in Ghana&#8217;s Central Region, served as deputy finance minister during Mahama&#8217;s first term.



After Mahama and the NDC were voted out of power in late 2016, Forson led the party&#8217;s finance and economic team in Parliament, and in January 2023 was made the leader of the opposition in parliament.



He holds a PhD in finance from Ghana&#8217;s Kwame Nkrumah University of Science and Technology (KNUST) and a Master of Science in taxation from the University of Oxford.



(Additional rerting by Christian Akorlie; Writing by Portia Crowe; Editing by Alison Williams, Frances Kerry, William Maclean)

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Ghana’s president names Cassiel Ato Forson as finance minister

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="418" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/LYEEWJTJKRPK3GJPCKWFP3EK7E.avif" alt="" class="wp-image-573641"/><figcaption class="wp-element-caption">A teller counts Kenya shilling notes inside the cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File photo</figcaption></figure>



NAIROBI, Jan 9 (Reuters)&nbsp;&#8211;&nbsp;The Kenyan and Ugandan shillings, Ghanaian cedi and Zambia&#8217;s kwacha are all expected to ease against the dollar in the next week to Thursday, traders said.



KENYA



Kenya&#8217;s shilling&nbsp;KES=&nbsp;is forecast to weaken on increased demand for dollars from importers across all sectors of the economy.



Commercial banks quoted the shilling at 129.00/130.00 per dollar, compared with last Thursday&#8217;s close of 129.00/129.50.



&#8220;The shilling is on an upward (weakening) trend. Right now (dollar demand) is from a mix of all sectors in the economy,&#8221; a trader at one commercial bank said.



UGANDA



The Ugandan shilling&nbsp;UGX=&nbsp;is seen weakening on the back of strong demand by players in the interbank market looking to build healthy foreign exchange positions as the new year starts, traders said.



Commercial banks quoted the shilling at 3,694/3,704 on Thursday, compared to 3,673/3,683 a week ago.



&#8220;Normally as the year starts we tend to see elevated (dollar) demand,&#8221; said a trader at one commercial bank.



He said the shilling was likely to weaken to around 3,720 against the dollar.



GHANA



Ghana&#8217;s cedi&nbsp;GHS=&nbsp;is expected to remain softer against the dollar next week as demand remains subdued, traders said.



LSEG data showed the cedi trading at 14.70 to the dollar on Thursday, compared to 14.65 at last Thursday&#8217;s close.



&#8220;The cedi has been on the ropes recently, largely on the back of weaker FX flows. Demand from local corporates has also begun to ramp up, further contributing to the weaker cedi in the week,&#8221; said Sedem Dornoo, a senior trader at Absa Bank Ghana.



&#8220;It is likely that the local unit will remain under pressure in the coming week as demand continues to ramp up as several businesses kick start operations for the year,&#8221; he added.



ZAMBIA



Zambia&#8217;s kwacha&nbsp;ZMW=&nbsp;is likely to remain under pressure against the dollar as a severe drought continues to weigh on the local currency.



On Thursday, the currency of Africa’s second largest copper producer was trading at 27.9000 compared to 27.7750 last Thursday. It has hit a series of record lows since the start of the year.



&#8220;The drought has resulted in significant payments for imported electricity and reduced copper production – a key foreign currency earner – weighing on the kwacha,&#8221; Access Bank said in a note on Thursday.



(Reporting by George Obulutsa, Elias Biryabarema, Christian Akorlie and Chris Mfula; Editing by Kirsten Donovan)

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AFRICA-FX – African currencies seen weakening

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="694" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_2RDQ23M7XBMRNLWULMA2ULYTGU.avif" alt="" class="wp-image-573616"/><figcaption class="wp-element-caption">The Royal Dutch Shell logo is seen at a Shell petrol station in London, January 31, 2008. REUTERS/Toby Melville/File Photo</figcaption></figure>



LONDON, Jan 8 (Reuters) &#8211; Shell SHEL.L will write down around $400 million over an oil discovery offshore Namibia that it deemed commercially unviable in a blow to the southern African country&#8217;s efforts to become a crude producer.



Shell&nbsp;told Reuters that discovered oil and gas resources in offshore block PEL39 in Namibia &#8220;cannot currently be confirmed for commercial development.&#8221;



Shell and its partners QatarEnergy and Namibia&#8217;s national oil company first discovered hydrocarbon in block PEL39 in 2022, which together with another discovery TotalEnergies&nbsp;TTEF.PAmade in a nearby block sparked huge global interest in the southern African country which has no oil and gas production.



Shell drilled nine wells in the licence over the past three years, making several other discoveries.



More recently, Portuguese oil company Galp also made a major discovery in a different offshore licence.



But the British company encountered technical and geological difficulties for the development of the resources.



CEO Wael Sawan told analysts on Oct. 31 that Namibia&#8217;s acreage was &#8220;very challenging,&#8221; and that the lower permeability of the rock made extracting oil and gas harder.



Sources told Reuters that the offshore discoveries also had a high natural gas content, further complicating their development.



The company said in a trading update ahead of fourth quarter results on Jan. 30 that it expects to take an exploration write off of around $400 million, without providing details.



It will take another $300 million write off related mainly to exploration licences in Colombia, the company said.



(Reporting by Ron Bousso; Editing by Chris Reese and Nick Zieminski)

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Shell writes down Namibia oil discovery in blow to country

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="428" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_XITIO74YJBM5XNTYYV6EQSSGSY.avif" alt="" class="wp-image-573601"/><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Jan 9 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Thursday.



ECONOMIC EVENTS



November manufacturing output&nbsp;ZAMAN=ECI



SOUTH AFRICAN MARKETS



South Africa&#8217;s rand weakened as a buoyant dollar and disappointing domestic economic data releases weighed on the local currency on Wednesday.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index closed about 1.12% lower.&nbsp;.JZAR/



GLOBAL MARKETS



The global bond rout that has pressured equities and boosted the safe-haven U.S. dollar showed signs of slowing on Thursday, even as Japanese yields edged to new multi-year highs.MKTS/GLOB



WALL STREET



U.S. stocks ended little changed on Wednesday in a session they struggled for a clear direction, as investors digested the impact of two conflicting sets of jobs data and a report that said President-elect Donald Trump was mulling a national economic emergency declaration on inflation.&nbsp;.N



GOLD



Gold prices retreated on Thursday on profit-booking after hitting a near four-week peak in the last session, while focus shifted to jobs report due on Friday for clarity on the Federal Reserve&#8217;s 2025 interest rate path.&nbsp;GOL/



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



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



BUSINESS DAY



&#8211; JSE weaker as investors assess US jobs reports



&#8211; Coca-Cola keeps JSE and investors thirsty over mega listing



FIN 24



&#8211; Prosus says it still has appetite for risk, even as it looks to close its biggest deal in years



(Compiled by Sfundo Parakozov)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_XITIO74YJBM5XNTYYV6EQSSGSY

South African Markets – Factors to watch on Jan 9

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_EJOTF6BC3JMHFC7FJKGZLL5WDE-1-820x547.jpg" alt="" class="wp-image-573387" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_EJOTF6BC3JMHFC7FJKGZLL5WDE-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_EJOTF6BC3JMHFC7FJKGZLL5WDE-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_EJOTF6BC3JMHFC7FJKGZLL5WDE-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_EJOTF6BC3JMHFC7FJKGZLL5WDE-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_EJOTF6BC3JMHFC7FJKGZLL5WDE-1.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Abuja-Kaduna train services resumes after an attack on its passengers by bandits in March, in Abuja, Nigeria December 5, 2022. REUTERS/Afolabi Sotunde</figcaption></figure>



LAGOS, Jan 8 (Reuters) &#8211; China Development Bank has released a $254.76 million loan to Nigeria for a railway project linking the two northern states of Kano and Kaduna, the bank said, ahead of a visit to the West African country by China&#8217;s top diplomat this week.



As part of his annual New Year tour of Africa, China&#8217;s Foreign Minister Wang Yi will arrive in Nigeria on Wednesday and meet President Bola Tinubu and senior government officials on Thursday, Nigeria&#8217;s foreign affairs ministry said.



Construction of the Kaduna-to-Kano rail project, which is expected to cost $973 million, has been slowed by funding delays.



China Development Bank said in a statement on its website that the loan would provide financial support for the smooth progress of the 203-kilometre (126-mile) standard-gauge railway.



&#8220;Once completed, it will provide direct rail connectivity between Kano, an important northern city in Nigeria, and the country&#8217;s capital Abuja, offering local residents a safe, efficient, and convenient mode of transportation,&#8221; the bank said.



Nigeria&#8217;s parliament first approved China&#8217;s Exim Bank as financier for the rail project in 2020 but the bank later withdrew.



The Kano-Kaduna railway project is part of China&#8217;s Belt and Road Initiative and is being constructed by China Civil Engineering Construction Corporation.



It is also expected to ease movement of people and goods in a region, where road travellers face attacks from armed gangs who kidnap for ransom.



China is among Nigeria&#8217;s largest bilateral lenders, providing loans for roads, rail and power stations.



(Reporting by MacDonald Dzirutwe; Editing by Alex Richardson)

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China Development Bank releases $255 mln for Nigeria rail project

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/FHI2NVCH5ZJB7MSERIE6PSCJPE.avif" alt="" class="wp-image-573381"/><figcaption class="wp-element-caption">A woman displays a selection of Kwacha notes, the national currency and money used in Zambia in Lusaka, Zambia February 27, 2024. REUTERS/Namukolo Siyumbwa/File Photo</figcaption></figure>



LUSAKA, Jan 8 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s kwacha&nbsp;ZMW=&nbsp;has hit a series of record lows since the start of the year as a severe drought keeps the pressure firmly on the copper-producing Southern African country&#8217;s economy.



Analysts had hoped Zambia&#8217;s emergence from default early last year would have helped sentiment, but the currency is now roughly 3% below where it was before its debt restructuring deal and has fallen nearly 15% over the last six months.



It was trading at 27.95 per dollar on Wednesday, just above the latest record low of 28.05 on Tuesday.



&#8220;Zambia is in a state of severe drought, and this appears to manifest in currency weakness as the hydroelectrically dependent country faces an industrial slowdown,&#8221; Access Bank Zambia said in a research note.



&#8220;Mining companies are being forced to reduce copper production, a key foreign revenue earner,&#8221; it added.



The severe effects of El Niño caused the worst dry spell in southern Africa in a century last year, devastating crop production and forcing Zambia&#8217;s authorities to cut electricity generation on the Kariba dam, the biggest source of electricity.



The kwacha plunged when Zambia defaulted on $11 billion worth of external debt in November 2020, but saw a brief 20% jump last February when it became clear its restructuring efforts were going to be successful.



One financial analyst in Lusaka said some companies had sold dollars during Wednesday&#8217;s session in preparation for local tax payments next week, offering some support to the kwacha.



(Reporting by Chris Mfula; Writing by Duncan Miriri; Editing by Marc Jones and Christina Fincher)

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Zambia’s currency stuck at record low as drought persists

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="407" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA.jpg" alt="" class="wp-image-573372" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA-142x90.jpg 142w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">A general picture shows the skyline of Tanzania&#8217;s port city of Dar es Salaam, File. REUTERS/Andrew Emmanuel</figcaption></figure>



DAR ES SALAAM, Jan 8 (Reuters)&nbsp;&#8211;&nbsp;Tanzania&#8217;s central bank left its key interest rate&nbsp;TZINTR=ECI&nbsp;unchanged at 6% on Wednesday, holding it steady for a&nbsp;third consecutive&nbsp;policy meeting, with an aim of keeping inflation below its target.



When it launched the rate in January 2024, the bank set it at 5.50%. The bank targets inflation of 5%, and consumer inflation has stayed comfortably below that figure.



Inflation is forecast to stay around the range of 3.1% and 4% in the first quarter, Bank of Tanzania Governor Emmanuel Tutuba said in a statement.



Tanzania&#8217;s economy is forecast to grow by about 6% this year from an estimated 5.4% in 2024, its finance minister and central bank governor said in November in a letter to the International Monetary Fund.



The economy is forecast to grow 5.7% year-on-year in the first quarter, Tutuba said.



(Reporting by Nuzulack Dausen; Writing by George Obulutsa; Editing by Bernadette Baum)

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Tanzania central bank holds key interest rate unchanged for a third time

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/AXGKYDH4PFJ6TDMBPUR33LNVXM.avif" alt="" class="wp-image-573364"/><figcaption class="wp-element-caption">A general view of the Makola market, one of the country&#8217;s largest trading centres in Accra, Ghana March 26, 2022. Picture taken March 26, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Jan 8 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s consumer inflation&nbsp;GHCPIY=ECI&nbsp;rose for a fourth month in a row in December, to 23.8% year on year from 23.0% in November, the statistics service said on Wednesday.



Government statistician Samuel Kobina Annim told a news conference that the latest increase was driven by higher food prices.



&#8220;The rate of inflation&#8230; is the third highest in the last 13 months and highest in the last eight months,&#8221; Annim said.



The West African gold and cocoa producer has been struggling to emerge from its worst economic crisis in a generation.



President John Dramani Mahama, who was sworn in for a second term on Tuesday, has pledged to tackle inflation and currency depreciation to mitigate Ghana&#8217;s cost-of-living crisis.



(Reporting by Maxwell Akalaare Adombila and Christian Akorlie; Writing by Anait Miridzhanian;Editing by Bernadette Baum and Christina Fincher)

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Ghana inflation rises for fourth straight month in December

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/FN6SHZMGJVMXJICANZS4G326BA.avif" alt="" class="wp-image-573328"/><figcaption class="wp-element-caption">A general view shows the Tetra Pak factory floor in Durban, South Africa, April 4, 2024. REUTERS/Rogan Ward/File photo</figcaption></figure>



JOHANNESBURG, Jan 8 (Reuters)&nbsp;&#8211;&nbsp;South African manufacturing activity fell for the second month in a row in December, a local purchasing managers&#8217; index (PMI) survey showed, as demand declined.



The seasonally-adjusted PMI sponsored by South African bank Absa slipped to 46.2 points in December 2024 from 48.1 points in November, remaining below the 50-point mark that separates expansion from contraction of manufacturing output in Africa&#8217;s most industrialised economy.



&#8220;The manufacturing sector experienced a volatile 2024, with this second consecutive monthly decline in December reversing the upward momentum seen in September and October,&#8221; Absa said in a statement.



The business activity index fell 8.7 points to 40.3, and the new sales orders sub-index also fell.



&#8220;Worryingly, some respondents noted that conditions in December 2024 were worse than usually seen in December,&#8221; Absa added.



But the bank said the sub-index which measures expected business conditions in six months&#8217; time rose in December, showing that manufacturers remain positive about future business conditions.



Export sales figures fell to levels seen in the first half of 2024, while the supplier deliveries index moved above 50 points for the first time in three months.



(Reporting by Tannur Anders; Editing by Tim Cocks)

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South African factory sector contracts for second consecutive month in December, Absa PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="455" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/V3RZUHSNTJNKLBFQBJIVO57VX4.avif" alt="" class="wp-image-573325"/><figcaption class="wp-element-caption">A Faberge emerald gemstone Emotion ring is seen at the Gemfields office in central London, November 17, 2014/File Photo</figcaption></figure>



Jan 8 (Reuters)&nbsp;&#8211;&nbsp;Coloured gemstone producer Gemfields&nbsp;GEMGE.L,&nbsp;GMLJ.J&nbsp;has asked the Zambian government to remove a recently re-introduced 15% export tax on emeralds to avoid hurting the sector.



The southern African country, the world&#8217;s second largest emerald producer after Colombia, re-introduced the tax on Jan.1, after it was suspended in 2019.



&#8220;The company will engage with the Zambian government to seek the re-introduction of the suspension of this export duty or to remove it from the legislation given the impact on sector



sustainability and investment attractiveness,&#8221; Gemfields said in a statement.



The Guernsey-based miner and marketer of coloured gemstones operates the Kagem emerald mine in Zambia, one of the biggest in the world. Gemfields also owns the Faberge jewellery brand and a ruby mine in Mozambique.



Kagem paid an effective 31% of its revenues to the Zambian government in the form of mineral royalty, corporation tax and dividends, the company said in 2023. Gemfields owns 75% of Kagem, with the government of Zambia holding the balance.



The Kagem mine has reported cumulative emerald sales revenue of $1.1 billion between 2009 and 2023, according to Gemfields.



(Reporting by Nelson Banya; Editing by Christina Fincher)

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Gemfields asks Zambia to reverse emerald export tax

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2.jpg" alt="" class="wp-image-573311" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Jan 8 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Wednesday.



ECONOMIC EVENTS



South Africa&#8217;s December reserves data



Absa manufacturing sector PMI survey



SOUTH AFRICAN MARKETS



South Africa&#8217;s rand slipped against a resurgent dollar on Tuesday, after positive U.S. data suggested the Federal Reserve would likely be cautious in cutting interest rates.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index closed about 1% lower.&nbsp;.JZAR/



GLOBAL MARKETS



Asian stocks drifted lower on Wednesday, with a robust dollar keeping the yen pinned near six-month lows as traders wagered the Federal Reserve will likely be slow in cutting rates after data showed the U.S. economy and labour market remained stable.MKTS/GLOB



WALL STREET



U.S. stocks tumbled on Tuesday after a batch of upbeat economic data raised concerns that an inflation rebound could slow down the Federal Reserve&#8217;s pace of monetary policy easing.&nbsp;.N



GOLD



Gold prices edged lower on Wednesday, pressured by higher U.S. Treasury yields and a stronger dollar after data suggested the Federal Reserve might slow the pace of rate cuts this year.GOL/



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



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



BUSINESS DAY



&#8211; IMF says Reserve Bank is a model of transparency but must do more



&#8211; A fun year ahead for deal making



FIN 24



&#8211; Naspers group loses R225bn as US labels Tencent a &#8216;Chinese military company&#8217;



(Compiled by Sfundo Parakozov; Editing by Tannur Anders)

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South African Markets – Factors to watch on Jan 8

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="433" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/KAXVEG334FMHJCVIWZPNP6IK54.avif" alt="" class="wp-image-573106"/><figcaption class="wp-element-caption">Ghanaian President John Dramani Mahama (L) takes the oath during his inauguration ceremony at the Independence Square in Accra January 7, 2013. REUTERS/Stringer/File Photo</figcaption></figure>



ACCRA, Jan 7 (Reuters)&nbsp;&#8211;&nbsp;John Dramani Mahama&nbsp;was sworn&nbsp;in for a second term as Ghana&#8217;s president on Tuesday&nbsp;at a ceremony in the capital Accra, pledging to overcome public discontent by boosting the economy and creating much-needed jobs.



The opposition leader, 66, won the Dec. 7 presidential election by a wide margin to stage a political comeback in the West African nation, the world&#8217;s number-two cocoa producer.



He replaces Nana Akufo-Addo, who steps down after serving two terms, continuing Ghana&#8217;s democratic tradition in a region gripped elsewhere by military coups and jihadist insurgencies.



Over 20 presidents and heads of state from around the world attended the rite in Accra&#8217;s independence square, the scene of Ghanaian presidential inaugurations since Kwame Nkrumah was sworn in over six decades ago.



&#8220;We are a people battered by economic crises and hardships. But there&#8217;s hope on the horizon,&#8221; Mahama said in a speech to cheers from thousands of boisterous supporters.



Following the COVID-19 pandemic, a cost-of-living crisis, an ongoing bailout from the International Monetary Fund and a sovereign debt default, Ghana&#8217;s economy is again growing.



But Mahama&nbsp;is under&nbsp;pressure to deliver quickly on campaign promises to curb high youth unemployment and root out entrenched corruption &#8211; issues that have&nbsp;fuelled&nbsp;distrust in Ghana&#8217;s political system.



&#8220;The average Ghanaian is growing impatient with our democracy,&#8221; Godfred Bokpin, a finance professor at the University of Ghana, told Reuters.



&#8220;People have done their part by voting but they&#8217;re asking: what have they gotten from this democracy?&#8221;



POWER CRISIS AND HUNGER



In his speech, Mahama said his new economic model would be anchored in agriculture and agribusiness, and would provide jobs for young people, stimulate local industry and attract foreign investment.



Analysts and supporters of Mahama’s National Democratic Congress (NDC) party see his two-thirds majority in parliament as a strong mandate to take tough decisions and implement credible policies to improve livelihoods and regain investor confidence.



But a looming power crisis will pose an early challenge with preliminary estimates showing arrears to service providers in excess of $2.5 billion. The worsening outlook threatens to curtail output and hamper the nascent economic recovery.



&#8220;The outgoing government kept the system running by bandaging open sores,&#8221; said Bright Simons of Accra-based IMANI think tank. &#8220;They left the festering wounds for him.&#8221;



Other issues requiring immediate attention are high inflation and exchange rate challenges that are squeezing the incomes of ordinary Ghanaians.



Inflation rose for the third month in a row in November to 23.0%, boosted by surges in food prices.



&#8220;We can talk about the skyscrapers and complex things but the reality is that the average Ghanaian is hungry. You must prioritise food production,&#8221; Bokpin said.



(Reporting by Maxwell Akalaare Adombila; Writing by Anait Miridzhanian; Editing by Angus MacSwan)

KAXVEG334FMHJCVIWZPNP6IK54

Ghana’s Mahama returns as president, vowing to boost economy

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="399" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/ORFYTKEYH5LPDNKGB5ILWDBQIU.avif" alt="" class="wp-image-573081"/><figcaption class="wp-element-caption">A view shows a banner with the logo of the annual BRICS summit next to the Kazan Kremlin in Kazan, Russia October 22, 2024. REUTERS/Maxim Shemetov/File Photo</figcaption></figure>



SAO PAULO, Jan 6 (Reuters)&nbsp;&#8211;&nbsp;Indonesia will&nbsp;formally join BRICS as a full member,&nbsp;Brazil&#8217;s government said on Monday,&nbsp;further expanding the group of major emerging economies that also includes Russia, India, China and South Africa.



Indonesia&#8217;s foreign ministry said in a statement on Tuesday that it welcomed the announcement and that &#8220;BRICS membership is a strategic way to increase collaboration and partnership with other developing nations.&#8221;



Indonesia, the world&#8217;s fourth most populous nation, had previously expressed its desire to join the group as a means of strengthening emerging countries and furthering the interests of the so-called Global South.



Brazil, which holds the bloc&#8217;s presidency in 2025, said in a statement that member states approved Indonesia&#8217;s entry by consensus as part of an expansion push initially endorsed at the 2023 BRICS summit in Johannesburg.



The South American nation noted that Jakarta&#8217;s bid got the green light from the bloc in 2023 but the Southeast Asian country asked to join following the presidential election held last year. President Prabowo Subianto took office in October.



&#8220;Indonesia shares with the other members of the group support for the reform of global governance institutions, and contributes positively to the deepening of cooperation in the Global South,&#8221; the Brazilian government said.



The BRICS group also includes Egypt, Ethiopia, Iran and the United Arab Emirates.



(Reporting by Gabriel Araujo and Stanley Widianto in Jakarta; Editing by Kylie Madry and Saad Sayeed)

ORFYTKEYH5LPDNKGB5ILWDBQIU

Indonesia joins BRICS bloc as full member, Brazil says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="440" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/N6JMI7GRCBPGVF6Q5MVQNIPZDY.avif" alt="" class="wp-image-573067"/><figcaption class="wp-element-caption">A worker walks by an oil well at the Toma South oil field to Heglig, in Ruweng State, South Sudan August 25, 2018. REUTERS/Jok Solomun/File photo</figcaption></figure>



JUBA, Jan 7 (Reuters)&nbsp;&#8211;&nbsp;South Sudan aims to resume oil production at its Blocks 3 and 7 on Jan. 8 with&nbsp;an initial&nbsp;output&nbsp;target of&nbsp;90,000 barrels per day, Petroleum Minister Puot Kang Chol said on Tuesday.



South Sudan&#8217;s economy has been under pressure in recent years amid communal violence while vital crude oil export revenue has been hurt by export disruptions due to war in Sudan.



Over the weekend, Sudan lifted a nearly year-long force majeure on the transport of crude oil from its neighbour South Sudan to a port on the Red Sea after security conditions improved.



&#8220;You all know it is going to be a gradual process, you will not get the required figure in one day, but our target is 90,000 barrels a day,&#8221; Chol told a news conference.



&#8220;This is what the pipeline will accommodate in the first phase and then there after if we have the capacity to increase more than that we shall do so.&#8221;



Chol also said the government has reached an agreement with Petronas to pay off its shares until it finds a new partner to replace the Malaysian producer, who announced in August it would exit the country after nearly three decades of operations.



Petronas said at the time its unit had initiated proceedings against South Sudan on accusations of blocking a $1.25 billion sale of its local assets and of taking over the business.



Chol said the arrangement would not affect Petronas&#8217; partners; China National Petroleum Corporation, SINOPEC and Tri-Ocean Energy.



Prior to the war in Sudan, South Sudan had been pumping about 150,000 barrels per day of crude through Sudan for export, under a formula established when South Sudan gained independence from Khartoum in 2011.



(Reporting by Denis Elamu, writing by George Obulutsa; Editing by Elisha Bala-Gbogbo and Jason Neely)

N6JMI7GRCBPGVF6Q5MVQNIPZDY

South Sudan to restart pumping crude oil on Jan 8, minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/WE2S7SNCPBNJDOXCFH4LZLIIVY.avif" alt="" class="wp-image-573042"/><figcaption class="wp-element-caption">Sun-dried cocoa beans inside a warehouse in Assin Foso, Ghana, November 20, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Jan 7 (Reuters)&nbsp;&#8211;&nbsp;Cocoa purchases in Ghana slumped in December due to election-related payment delays from the state marketing board and squeezed exporter financing, farmers and buyers told Reuters, voicing concern that the delays could fuel smuggling.



Cocoa prices have hit record highs over the past year because of poor crops in the world&#8217;s two biggest producers, Ivory Coast and Ghana. While West Africa has seen some rebound this 2024/25 crop season, markets still expect potential supply disruptions.



Ghana&#8217;s marketing board Cocobod switched from a three-decade-old marketing model to a new system this season where global traders and buyers are largely responsible for financing and bringing in much of the cocoa crop. They are then reimbursed when Cocobod pays for the beans.



However, sources at licensed cocoa buyers (LBCs) said the Dec. 7 election, which was won by opposition candidate and former president John Dramani Mahama, had disrupted the new system due to uncertainty surrounding the outcome and the potential for poll-related unrest.



Mahama has pledged to reform the country&#8217;s cocoa sector.



One LBC management executive told Reuters that his company had throttled back financing for purchases and said payments from Cocobod had been delayed during the election period and banks had also been hesitant to release funding.



Sources interviewed for this story asked not to be named as they were not authorised to speak publicly on the matter.



Cocobod denied that the election or transition period impacted its payments.



&#8220;We agree that in some instances there are operational challenges, and sometimes the buyers pay farmers a maximum of a week later. But there&#8217;s no general issue of nonpayment or pay delays,&#8221; said Fiifi Boafo, Cocobod&#8217;s head of public affairs.



BEANS PILING UP ON SOME PLANTATIONS



Ghana does not publish cocoa purchase data. However, another source from a major buyer said his firm&#8217;s purchases were down about 20% in December compared to the previous month, adding that the election was a factor but the company had also exhausted the financing it had raised.



The payment delays and funding crunch are being felt hardest in remote rural areas, said a district officer for a leading LBC, who said he had been sourcing cocoa from farmers with promises of future payment.



&#8220;It&#8217;s been two weeks since my purchasing clerks credited about 2,000 bags of cocoa beans to me, but I still don&#8217;t have the money to pay,&#8221; he said, explaining he was awaiting financing from his head office.



Ghanaian cocoa production has rebounded from last season&#8217;s disastrous harvest, but some farmers are now struggling to sell their produce.



One farmer, who asked not to be named due to concerns over potential retribution from buyers and Cocobod, said he couldn&#8217;t find a buyer for his 12 bags of beans, adding: &#8220;It made the Christmas sour.&#8221;



With beans piling up on plantations and a growing discrepancy between Ghana&#8217;s official farmgate price and much higher global spot prices, buyers told Reuters that a spike in illegal smuggling of beans out of Ghana was likely inevitable.



The country lost more than a third of last season&#8217;s output to smuggling, most of it via neighbouring Togo, where sales are unregulated.



(Reporting by Maxwell Akalaare Adombila; Editing by Joe Bavier and Emelia Sithole-Matarise)

WE2S7SNCPBNJDOXCFH4LZLIIVY

Ghana cocoa purchases slump as election delays payments, financing 

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="390" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Z7OUSBHECZMJVEHQT7G2AZVSQU.avif" alt="" class="wp-image-573028"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration/File photo</figcaption></figure>



JOHANNESBURG, Jan 7 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand firmed early on Tuesday against a softer dollar on hopes for less aggressive tariffs by U.S. President-elect Donald Trump when he takes office later this month.



At 0636 GMT, the rand traded at 18.5650 against the U.S. dollar&nbsp;ZAR=D3, about 0.1% firmer than its previous close. The greenback last traded about 0.1% weaker against a basket of currencies.



The Washington Post reported on Monday that Trump aides were exploring tariff plans that would represent a marked softening from promises he had made during his 2024 presidential campaign.



While the news initially weakened the dollar, Trump&#8217;s subsequent denial reversed some of the U.S. currency&#8217;s declines.



&#8220;It helped bolster the ZAR&#8217;s performance as it staged a recovery at the start of the first full trading week of the year,&#8221; said ETM Analytics in a research note.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was slightly firmer in early deals, with the yield down 2.5 basis points to 9.005%.



(Reporting by Tannur Anders; Editing by Bernadette Baum)

Z7OUSBHECZMJVEHQT7G2AZVSQU

South African rand claws back as Trump tariff debate weakens dollar

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="397" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/KE6WLMXLLRKUPODPWLRXZ6RVSI.avif" alt="" class="wp-image-573024"/><figcaption class="wp-element-caption">A motorist drives on the controlled section during the construction of the Nairobi Expressway, undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, along Uhuru highway in Nairobi, Kenya August 5, 2021. REUTERS/Thomas Mukoya/File photo</figcaption></figure>



NAIROBI, Jan 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economic growth slowed in the third quarter of 2024 from the same period a year earlier due to underperformance in most sectors of the economy, the statistics office said on Tuesday.



The economy&nbsp;KEGDPQ=ECI&nbsp;grew 4.0% year-on-year from 6.0% in the same quarter the previous year, the Kenya National Bureau of Statistics said in a statement.



&#8220;The decelerated growth was largely due to a general decline in growth in most sectors of the economy. The growth was constrained by contractions in construction and mining and quarrying activities,&#8221; the statistics office said.



Construction activities contracted 2.0% while mining and



quarrying shrank 11.1%, the office said.



Growth in agriculture, forestry and fishing, transportation and storage activities, financial and insurance activities, real estate activities, wholesale and retail activities and accommodation and food service activities helped cushion the economy from slowing further, the statistics office said.



Nationwide protests against proposed tax increases at the end of the second quarter resulted in disruptions and incidents of violence in major towns.



President William Ruto subsequently scrapped the tax measures, but demonstrations persisted into the third quarter, with protesters calling for better governance, an end to corruption and better service delivery.



The World Bank has downgraded Kenya&#8217;s economic growth estimate for 2024 to 4.7%, from an initial 5.0%, citing the impact of floods, anti-government protests and faltering fiscal consolidation efforts.



The finance ministry has estimated that the economy expanded 5.2% in 2024 and projects growth of 5.4% in 2025. The economy grew 5.6% in 2023.



(Reporting by George Obulutsa and Hereward Holland; Editing by Ed Osmond and Jacqueline Wong)

Reuters

Ghana’s president names Cassiel Ato Forson as finance minister

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South African Markets – Factors to watch on Jan 9

China Development Bank releases $255 mln for Nigeria rail project

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Tanzania central bank holds key interest rate unchanged for a third time

Ghana inflation rises for fourth straight month in December

South African factory sector contracts for second consecutive month in December, Absa PMI shows

Gemfields asks Zambia to reverse emerald export tax

South African Markets – Factors to watch on Jan 8

Ghana’s Mahama returns as president, vowing to boost economy

Indonesia joins BRICS bloc as full member, Brazil says

South Sudan to restart pumping crude oil on Jan 8, minister says

Ghana cocoa purchases slump as election delays payments, financing

South African rand claws back as Trump tariff debate weakens dollar

Kenya’s Q3 GDP growth slows on weak construction, mining sectors

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Reuters

Ghana’s president names Cassiel Ato Forson as finance minister

AFRICA-FX – African currencies seen weakening

Shell writes down Namibia oil discovery in blow to country

South African Markets – Factors to watch on Jan 9

China Development Bank releases $255 mln for Nigeria rail project

Zambia’s currency stuck at record low as drought persists

Tanzania central bank holds key interest rate unchanged for a third time

Ghana inflation rises for fourth straight month in December

South African factory sector contracts for second consecutive month in December, Absa PMI shows

Gemfields asks Zambia to reverse emerald export tax

South African Markets – Factors to watch on Jan 8

Ghana’s Mahama returns as president, vowing to boost economy

Indonesia joins BRICS bloc as full member, Brazil says

South Sudan to restart pumping crude oil on Jan 8, minister says

Ghana cocoa purchases slump as election delays payments, financing

South African rand claws back as Trump tariff debate weakens dollar

Kenya’s Q3 GDP growth slows on weak construction, mining sectors

News Tips

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