<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DFSLHXCTFBMB3IHZTWD4HAPD3E-820x546.jpg" alt="" class="wp-image-539528" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DFSLHXCTFBMB3IHZTWD4HAPD3E-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DFSLHXCTFBMB3IHZTWD4HAPD3E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DFSLHXCTFBMB3IHZTWD4HAPD3E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DFSLHXCTFBMB3IHZTWD4HAPD3E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DFSLHXCTFBMB3IHZTWD4HAPD3E-1536x1023.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DFSLHXCTFBMB3IHZTWD4HAPD3E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Administrator of United Nations Development Programme (UNDP) Achim Steiner delivers the keynote speech at the Hamburg Sustainability Conference in Hamburg, Germany, October 7, 2024. REUTERS/Fabian Bimmer</figcaption></figure>



HAMBURG, Germany, Oct 7 (Reuters)&nbsp;&#8211;&nbsp;The world&#8217;s poorest countries are having to prioritize debt service over investments, United Nations Development Programme administrator Achim Steiner said on Monday, scuppering progress towards their sustainable development goals.



Speaking at an event in Hamburg, Steiner said the financial crunch meant countries worldwide were struggling to meet the goals &#8211; a set of 17 wide-ranging targets such as tackling poverty and hunger, improving access to education and health care, providing clean energy and protecting biodiversity.



&#8220;For many, least developed countries, they have literally been priced out of the financial markets. They cannot borrow any more money,&#8221; Steiner told the Hamburg Sustainability Conference, adding that they must draw down other spending to avoid debt default. &#8220;It&#8217;s a very extreme situation.&#8221;



Countries like Ghana, Sri Lanka and Zambia have defaulted on their debt in recent years, while others are struggling to make payments after the global interest rate hiking cycle sent borrowing costs higher.



At the same time, the world needs trillions of dollars more per year to meet climate spending goals. Steiner said boosting financing was &#8220;absolutely central&#8221; to meeting sustainable development goals – something his organisation is monitoring closely.



&#8220;We have to tackle this issue of our international financial architecture and our international financial system,&#8221; Steiner said. &#8220;If not, we are going to fall apart in our endeavour to find answers that our citizens are expecting us to find.&#8221;



World Bank President Ajay Banga, speaking at the same event, said official and multilateral lenders would not be able to provide the $4 trillion needed to reach the goals without help.



&#8220;That gap is going to need the private sector,&#8221; Banga said during a panel discussion.



Using public money to de-risk private investment was one way of leveraging multilateral balance sheets, he added, saying the Washington-based lenders had boosted the insurance for investors looking to get involved in renewables in developing world.



&#8220;We&#8217;ve already doubled where we were a year ago. There is more to come.&#8221;



The World Bank announced in July it had started operating a one-stop-shop loan and investment guarantee platform with the aim of tripling the provision of guarantees and risk insurance provided around the world to $20 billion a year.



Reaching the sustainable development goals would require standardizing financing vehicles and making it easier for public private partnerships to get off the ground, German Chancellor Olaf Scholz said.



&#8220;Without the expertise and investment of the private sector, the sustainable development goals cannot be reached,” Scholz said during a keynote speech.



(Reporting by Libby George, writing by Karin Strohecker, Editing by Duncan Miriri, Gareth Jones, Ed Osmond and Christina Fincher)

Hamburg Sustainability Conference

Debt burden threatens poor countries’ development goals, UN official says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NUF6JEUE6JNDPJY5TZYOOXTLIY-820x547.jpg" alt="" class="wp-image-539465" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NUF6JEUE6JNDPJY5TZYOOXTLIY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NUF6JEUE6JNDPJY5TZYOOXTLIY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NUF6JEUE6JNDPJY5TZYOOXTLIY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NUF6JEUE6JNDPJY5TZYOOXTLIY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NUF6JEUE6JNDPJY5TZYOOXTLIY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NUF6JEUE6JNDPJY5TZYOOXTLIY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An illegal artisanal miner searches for gold in an excavated pit at the Prestea-Huni Valley Municipal District in the Western Region, Ghana August 17, 2024. REUTERS/Francis Kokoroko</figcaption></figure>



PRESTEA-HUNI VALLEY, Ghana, Oct 7 (Reuters)&nbsp;&#8211;&nbsp;At an unlicensed gold mine in Ghana, men in t-shirts, shorts and rubber boots wade through pools of muddy water laced with mercury, pull out rocks with bare hands and operate a rickety sluice as they search for the precious ore.



The ramshackle mine is part of a booming business that is generating livelihoods and informal revenue streams for Ghana&#8217;s economy, even as it harms miners&#8217; health, pollutes waterways, destroys forests and cocoa farms, and fuels crime.



&#8220;It&#8217;s risky but I just want to survive,&#8221; said one of the men at the wildcat site visited by Reuters in the Prestea-Huni Valley district in western Ghana.



The 24-year-old accounting student, who asked not to be named because he was involved in illegal activities, said he had been skipping classes to prospect for gold because he needed the money, having lost his father as a teenager.



There was no professional protective equipment at the mine. Men wore flimsy plastic shopping bags on their heads. One had swimming goggles and another a rice bag covering his torso.



The unlicensed gold mining industry, known in Ghana as &#8220;galamsey&#8221;, has grown at a breakneck pace this year as global gold prices have risen by almost 30%, enticing new entrants.



Small-scale mines produced 1.2 million ounces of gold in the first seven months of this year, more than in the whole of 2023, according to data from Ghana&#8217;s mining sector regulator.



About 40% of Ghana&#8217;s total gold output comes from small mines, as opposed to concessions operated by multi-national firms. Some 70-80% of the small mines are unlicensed.



<h2 class="wp-block-heading" id="h-poisoned-profits">POISONED PROFITS</h2>



Martin Ayisi, head of Ghana&#8217;s Minerals Commission, the mining industry regulator, said most galamsey gold was smuggled out of the country and was therefore not contributing to national gold export revenues.



For Ayisi, the rise in gold prices is good for Ghana, helping it recover from a severe economic crisis in 2022 that required a $3-billion IMF bailout.



&#8220;We should be able to get a lot of money and probably exit the IMF programme earlier,&#8221; he said, forecasting national gold export revenues would more than double to $10 billion this year.



But industry experts say the lines between legal mining and galamsey are blurred, and gold from informal mines represents a larger proportion of revenues than the authorities acknowledge.



The dangers of galamsey, however, are not in dispute.



Dozens of miners have been killed in collapsing pits in recent years, according to news reports and human rights groups, while hospitals and health centres report high numbers of early deaths from pulmonary diseases of miners and residents of towns and villages near mines.



These are caused by inhaling dust that contains heavy metals such as lead, as well as poisonous fumes from the mercury and nitric acid the miners use to leach gold out of sediment.



The chemicals are then dumped on the ground or in rivers. Ghana&#8217;s water authority says mercury and heavy metals from mining have contaminated about 65% of water sources.



Meanwhile, thousands of hectares (acres) of cocoa plantations and virgin forest have been destroyed by illegal miners, according to data from Global Forest Watch, an online monitoring platform.



Protesters have taken to the streets in Accra in recent weeks to criticise President Nana Akufo-Addo&#8217;s government over what they saw as its failure to tackle these problems. &#8220;Leaders, you&#8217;ve failed us!&#8221; read some of the placards.



&#8220;Galamsey has to stop. We want to live long. We don&#8217;t want to fall sick. We don&#8217;t want to go to the hospital,&#8221; said Aboubacar Sadekh, who was taking part in a march on Sept. 22, draped in a Ghanaian flag.



The government denies that it is failing to act on galamsey. When he came to power in 2017, Akufo-Addo pledged to take action on the issue, and during his time in office the government has launched crackdowns, deploying soldiers to arrest illegal miners. In some cases, mining equipment was seized and destroyed.



<h2 class="wp-block-heading" id="h-organised-crime">ORGANISED CRIME</h2>



Opinion polls suggest galamsey is one of the top five issues for voters ahead of a Dec. 7 general election.



The main candidates to replace outgoing Akufo-Addo as president, Vice President Mahamudu Bawumia and former President John Mahama, have pledged to formalise galamsey, for example by funding a state agency to explore for gold and map areas for locals to mine.



But successive governments have been promising for years to tackle the problem without making much headway, partly because powerful people are benefitting from the industry, experts say.



Chris Aston, head of a British-backed programme aimed at regulating small-scale gold mining in Ghana, said artisanal miners were vulnerable to organised crime gangs, who provide them with funding for equipment up-front, unlike other lenders.



&#8220;Miner pre-financing is one way that organised crime groups can penetrate the gold supply chain,&#8221; he said. Funders then &#8220;require miners to sell the gold they mine back to them at a subsidised rate&#8221;.



Emmanuel Kwesi Anning, a security consultant based in Accra, said galamsey was fuelling an increase in gun-trafficking because those overseeing illegal mines sought armed protection against rivals or thieves.



He also said politicians and traditional rulers in some areas were taking a cut of galamsey profits, further entrenching the problem.



&#8220;It has become an elite consensus that they&#8217;ll not touch this business.&#8221;



Ghana&#8217;s information minister did not respond to requests for comments on the allegations of organised crime involvement, gun running and corruption.



A top official in the National Security Ministry, who did not wish to be named because they were not authorised to speak about the issue in public, said authorities were working to address the links between illegal mining, money laundering and gun trafficking.



(Reporting by Maxwell Akalaare Adombila; Editing by Estelle Shirbon and Frances Kerry)

Ghana’s wildcat gold mining booms, poisoning people and nature

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1037987712-820x547.jpg" alt="" class="wp-image-539399" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1037987712-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1037987712-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1037987712-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1037987712-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1037987712-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1037987712-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A virologust works in the new Biological Security Level 4 laboratory of the Bernhard Nocht Institute for Tropical Medicine (BNI) in Hamburg, Germany, 25 January 2013. The new labroratory will contribute to the institute&#8217;s reasearch on tropical diseases, including dangerous diseases such as Lassa fever, Marburg virus, Ebola fever and leishmaniasis. Photo: CHRISTIAN CHARISIUS | usage worldwide (Photo by Christian Charisius/picture alliance via Getty Images)</figcaption></figure>



KIGALI, Oct 6 (Reuters)&nbsp;&#8211;&nbsp;Rwanda said on Sunday it had begun administering vaccine doses against the Marburg virus to try to combat an outbreak of the Ebola-like disease in the east African country, where it has so far killed 12 people.



&#8220;The vaccination is starting today immediately,&#8221; Health Minister Sabin Nsanzimana said at a news conference in the capital Kigali.



He said the vaccinations would focus on those &#8220;most at risk, most exposed healthcare workers working in treatment centres, in the hospitals, in ICU, in emergency, but also the close contacts of the confirmed cases.&#8221;



The country has already received shipments of the vaccines including from the Sabin Vaccine Institute.



Rwanda&#8217;s first outbreak of the viral hemorrhagic fever was detected in late September, with 46 cases and 12 deaths reported since then. Marburg has a fatality rate as high as 88%.



Marburg symptoms include high fever, severe headaches and malaise within seven days of infection and later severe nausea, vomiting and diarrhoea.



It is transmitted to humans by fruit bats and then spreads through contact with the bodily fluids of those infected. Neighbouring Uganda has suffered several outbreaks in the past.



&#8220;We believe that with vaccines, we have a powerful tool to stop the spread of this virus,&#8221; the minister said.



(Reporting by Philbert Girinema; Editing by Elias Biryabarema and Hugh Lawson)

New High security laboratory  at BNI

Rwanda begins Marburg vaccinations to curb deadly outbreak

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-820x547.jpg" alt="" class="wp-image-474646" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Central Bank of Nigeria&#8217;s logo is seen on the headquarters building in Abuja, Nigeria January 22, 2018. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank is set to automate foreign currency trades from December, ditching a nearly decade-old over-the-counter trading system in a bid to enhance transparency and remove market distortions.



The Central Bank of Nigeria (CBN), seeking to boost liquidity in its currency markets, announced that the new system would &#8220;facilitate a market-driven exchange rate accessible to the public&#8221;. It also released new guidelines for players in the foreign exchange market.



&#8220;This development is expected to reduce speculative activities, eliminate market distortions and give the CBN improved oversight,&#8221; the bank said in a circular dated Oct. 2.



The CBN said a two-week test run would be carried out in November, without specifying the exact dates.



The transition comes against the backdrop of currency controls put in place by Nigeria in 2017 during the height of its economic crisis, when the CBN introduced multiple exchange rate regimes, including an over-the-counter trading system that masked weaknesses in the naira currency.



Lenders could only trade buy or sell orders from a customer under the old system, which restricted dollar supply and harmed the economy. With the new system, the CBN said it would publish real-time prices and buy/sell orders data.



LSEG data showed the naira at 1,634 to the dollar at 1240 GMT on Friday. The unit has hit record lows on both the official and parallel markets since the currency market was liberalised last year.



(Reporting by Chijioke Ohuocha; editing by Elisha Bala-Gbogbo and Mark Heinrich)

Central Bank of Nigeria’s logo is seen on the headquarters building in Abuja

Nigeria’s central bank to automate FX trades from December

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



Oct 4 (Reuters)&nbsp;&#8211;&nbsp;International Monetary Fund staff and officials in Ghana have reached an agreement on their third review of the West African country&#8217;s $3 billion IMF loan programme, the fund said on Friday.



The West African gold and cocoa producer is nearing completion of a debt-restructuring process under the G20&#8217;s Common Framework initiative, after it defaulted on most of its $30 billion international debt in 2022.



&#8220;Ghana has made remarkable progress on its public debt restructuring,&#8221; the fund said in a statement, adding that the performance of the programme was &#8220;generally satisfactory.&#8221;



More than 90% of Ghana&#8217;s bondholders have approved an overhaul of $13 billion worth of Eurobonds, the government said on Thursday, following a deal with bilateral creditors in June.



&#8220;The authorities are committed to pursuing good-faith efforts to reach an agreement with other commercial external creditors,&#8221; the IMF said.



Once the staff-level agreement is approved by the IMF&#8217;s executive board, Ghana will have access to $360 million in financing, the fund said.



The IMF board approved Ghana&#8217;s current lending programme, which expires in 2026, in May of last year.



Ghana&#8217;s debt restructuring is expected to reduce its debt stock by $4.7 billion and provide cash flow relief worth a total of $4.4 billion during the period of the IMF programme, the government said in June.



&#8220;Economic growth in the first half of 2024 was much higher than initially envisaged,&#8221; said the IMF.



Ghana&#8217;s economy grew at the fastest pace in five years in the second quarter, government data showed, and policymakers have started to lower interest rates on signs that inflation is easing.



(Reporting by Alessandra Prentice and Duncan Miriri; Editing by Mark Potter and Hugh Lawson)

IMF logo is seen outside the headquarters building in Washington

IMF and Ghana reach staff-level deal on $3 bln loan programme review

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg" alt="" class="wp-image-533970" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-300x186.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-145x90.jpg 145w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-768x475.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-1536x950.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;The South African rand recuperated some losses in early trade on Friday, ahead of a key U.S. payrolls data and after slumping on Thursday as tensions escalated in the Middle East.



By 0730 GMT, the rand traded about 0.5% firmer at 17.4275 against the dollar. Since the start of the week, however, the local unit was down nearly 2%.



&#8220;The ZAR had a tough week, largely driven by a USD resurgence fuelled by better-than-expected U.S. labour data and rising geopolitical risks,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



The dollar hovered near a six-week high ahead of a payrolls report that could give hints on the path of interest rate cuts in the world&#8217;s biggest economy.



The greenback was also supported by demand for safe-haven assets after an Iranian missile attack on Israel on Tuesday left investors assessing widening Middle East tensions and their impact on the global economy.



Like other risk-sensitive currencies, the rand often takes direction from global drivers in the absence of major local factors.



The local unit has gained more than&nbsp;4.5%&nbsp;against the greenback over the last three months.



&#8220;The ZAR&#8217;s correction was overdue after a period of significant appreciation, and the nonfarm payroll data today will play a key role in determining its next move,&#8221; Cilliers added.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index was about 0.6% up in early trade.



South Africa&#8217;s benchmark 2030 government bond was slightly softer in early deals, with the yield up 3.5 basis points to 9.19%.



(Reporting by Tannur Anders; Editing by Varun H K)

Photo illustration of South African bank notes displayed next to the American dollar notes in Johannesburg

South African rand gains, focus on Middle East tension and US payrolls data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg" alt="" class="wp-image-428505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-1536x1009.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows Nigeria&#8217;s Central Bank headquarters in Abuja, Nigeria November 22, 2020. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;Nigerian private sector activity expanded for the second straight month in September as new orders rose, especially for chemical and pharmaceutical products, results of a central bank business survey showed on Friday.



The central bank&#8217;s purchasing managers index (PMI) of private-sector activity rose to 50.5 points from 50.2 points in August, above the 50 point line that denotes increases in activity.



The PMIs are one set of indicators the central bank&#8217;s monetary policy committee considers when it sets interest rates.



President Bola Tinubu&#8217;s reforms to the currency market and cutting of petrol and electricity subsidies have stoked inflation, eroding Nigerians&#8217; purchasing power.



The PMI report said 23 out of 36 sub-sectors reported growth in September, with cement posting the highest rise, while transportation and warehousing reported the biggest decline.



Non-metallic mineral products, petroleum and coal products were among the sectors that remained unchanged.



The central bank has hiked interest rates five times this year to tackle inflation, but analysts say this has raised the cost of borrowing for businesses with a negative impact on economic activity.



(Reporting by Chijioke Ohuocha, Editing by MacDonald Dzirutwe and Barbara Lewis)

FILE PHOTO: A view shows Nigeria’s Central Bank headquarters in Abuja

Nigeria’s private sector gets boost from new orders in September

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-820x547.jpg" alt="" class="wp-image-381494" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-1920x1280.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenyan shilling banknotes and coins sit arranged at a market stall in Mombasa, Kenya, on Thursday, Nov. 23, 2017. The country&#8217;s Treasury has already cut this year&#8217;s growth target to 5 percent from 5.9 percent as the protracted election furor damped investment and a drought curbed farm output. Photographer: Luis Tato/Bloomberg</figcaption></figure>



NAIROBI, Oct 4 (Reuters) &#8211; The Kenyan shilling was steady against the dollar on Friday, London Stock Exchange Group data showed.



At 0655 GMT, the shilling traded at 128.50/129.50 per dollar, the same as Thursday&#8217;s closing rate.



(Reporting by Sonia Rao; Editing by George Obulutsa)

General Economy As Kenya Faces Bleak 2018 Outlook In Vote Aftermath

Kenyan shilling unchanged versus dollar, LSEG data 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-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;The following economic event, equity and currency market moves may affect South African markets on Friday.



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



South Africa&#8217;s government will hold its weekly auction of inflation-linked bonds.



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



The South African rand slumped against a buoyant dollar on Thursday as tensions simmered in the Middle East following Iran&#8217;s ballistic missile attack on Israel.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed 0.75% weaker.



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



Asian stocks retreated on Friday while oil prices headed for their sharpest weekly gain in more than a year, as escalating tensions in the Middle East kept markets on edge ahead of a U.S. jobs report later in the day.



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



U.S. stocks finished lower on Thursday ahead of Friday&#8217;s monthly U.S. payrolls report and as investors kept a watchful eye on the growing conflict in the Middle East.



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



Gold prices climbed on Friday, supported by safe-haven demand arising from the Middle East conflict, while spotlight shifted towards U.S. payrolls report to gauge the trajectory of the Federal Reserve&#8217;s policy path.



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



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



<h2 class="wp-block-heading" id="h-fin-24">FIN 24</h2>



&#8211; Growth could triple if government reform accelerates, says think-tank



&#8211; Eskom price hike to kill smelters and create ghost towns, says Rio Tinto exec



&#8211; Ramokgopa will oppose Eskom hike above 20%, wants delay of carbon tax



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Oct 4

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, Oct 4 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.



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



*Ghana&#8217;s finance ministry and the International Monetary Fund (IMF) to hold a joint news conference following the third review of a $3 billion loan programme.



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



Asian stocks retreated on Friday while oil prices headed for their sharpest weekly gain in more than a year, as escalating tensions in the Middle East kept markets on edge ahead of a U.S. jobs report later in the day.



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



Oil prices inched up in early Asian trading hours on Friday, holding on to their strong weekly gains, as investors weighed the Middle East conflict and the potential disruption in crude flows against an amply-supplied global market.



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



The South African rand slumped against a buoyant dollar on Thursday as tensions simmered in the Middle East following Iran&#8217;s ballistic missile attack on Israel.



<h2 class="wp-block-heading" id="h-africa-currencies">AFRICA CURRENCIES</h2>



The Kenyan, Nigerian and Zambian currencies are expected to be broadly steady against the dollar in the next week to Thursday, while Ghana&#8217;s is forecast to weaken and Ugandan&#8217;s could strengthen, traders said.



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



Kenya&#8217;s shilling was unchanged on Thursday, with dollar inflows from tea exporters matching importer demand, traders said.



<h2 class="wp-block-heading" id="h-kenya-pmi">KENYA PMI</h2>



Kenya&#8217;s private sector saw a slight deterioration in business conditions in September as output and new orders contracted again, reversing the brief recovery seen in August, Stanbic Bank reported on Thursday.



<h2 class="wp-block-heading" id="h-kenya-imf">KENYA IMF</h2>



Kenya&#8217;s government has asked the International Monetary Fund to conduct an official assessment of corruption and governance issues, two sources familiar with the situation told Reuters, after a push by Western nations.



<h2 class="wp-block-heading" id="h-ghana-debt">GHANA DEBT</h2>



Ghana&#8217;s investors have signed off on its proposal to restructure $13 billion worth of international bonds, the government said on Thursday, paving the way for the country to emerge from a painful 2022 debt default.



<h2 class="wp-block-heading" id="h-ethiopia-debt">ETHIOPIA DEBT</h2>



A group of Ethiopia&#8217;s international bondholders rejected on Thursday the outlines of a government restructuring proposal for its $1 billion bond that was presented in an investors call earlier this week.



<h2 class="wp-block-heading" id="h-ethiopia-central-bank">ETHIOPIA CENTRAL BANK</h2>



Ethiopia&#8217;s central bank said on Thursday it plans to sell $175 million into the foreign exchange market to address fuel-related import payments due over the coming months.



<h2 class="wp-block-heading" id="h-tanzania-central-bank-rate">TANZANIA CENTRAL BANK RATE</h2>



Tanzania&#8217;s central bank held its key interest rate unchanged at 6%, it said on Thursday.



<h2 class="wp-block-heading" id="h-tanzania-politics">TANZANIA POLITICS</h2>



Tanzania&#8217;s communications regulator has suspended the digital platforms of a local media company over the publication of what it called restricted content, a move one opposition group said was aimed at muzzling media that is critical of the government.



<h2 class="wp-block-heading" id="h-mauritius-chagos-island">MAURITIUS CHAGOS ISLAND</h2>



Britain said on Thursday it would cede sovereignty of the Chagos Islands to Mauritius in a deal it said secured the future of the UK-U.S. Diego Garcia military base, and which could also pave the way for people displaced decades ago to return home.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Oct 4

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-820x539.jpg" alt="" class="wp-image-538297" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-1536x1009.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Nation Centre and Lonrho Africa building in central business district in downtown Nairobi, Kenya February 18, 2022. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Oct 3 (Reuters) &#8211; Kenya&#8217;s government has asked the International Monetary Fund to conduct an official assessment of corruption and governance issues, the IMF told Reuters, after a push by Western nations.



Kenya has struggled with debt that has reached precarious levels in recent years, and its withdrawal of proposed tax hikes earlier this year &#8211; following deadly protests &#8211; complicated its efforts to unlock a $600 million disbursement from the IMF.



Countries themselves must request the so-called &#8220;governance diagnostic&#8221;, which investigates whether corruption and governance vulnerabilities are draining revenue or creating other problems in state finances.



“We have received a governance diagnostics request from the authorities,&#8221; an IMF spokesperson said in response to written questions.



&#8220;The government of Kenya aims to strengthen its governance and anti-corruption policies. They intend to utilize these diagnostics to enhance public spending efficiency, boost competitiveness, foster growth, and reduce poverty in an inclusive manner.”



One source familiar with the situation said the assessment, while not directly linked to the disbursement, would be a show of goodwill in the country&#8217;s efforts to get its finances back on track.



Perceived government waste and corruption were a core driver of mass demonstrations in June that forced President William Ruto to withdraw $2.7 billion in planned tax increases.



Kenya&#8217;s finance ministry did not respond to requests for comment.



Reuters on Tuesday first reported that Western nations were pushing for the IMF assessment.



(Reporting by Aaron Ross; additional reporting by Rodrigo Campos; Writing by Duncan Miriri; Editing by Libby George, Andrea Ricci and Lincoln Feast.)

General view of the central business district in Nairobi

Kenya asks IMF to review corruption issues after Western push

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-820x547.jpg" alt="" class="wp-image-537989" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People walk in front of closed shops as traders lock up their stores in protest of Ghana&#8217;s worsening economic conditions in Accra, Ghana October 19, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



NAIROBI/LONDON, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s investors have signed off on its proposal to restructure $13 billion worth of international bonds, the government said on Thursday, paving the way for the country to emerge from a painful 2022 debt default.



More than 90% of bondholders voted in favour of the plan, the government said in a regulatory news statement, calling it a &#8220;pivotal milestone&#8221;, adding that the new bonds would be issued as part of the debt restructuring on or around Oct. 9.



&#8220;Our economy has turned a corner,&#8221; Ghana&#8217;s President Nana Akufo-Addo said in a separate statement. &#8220;This will allow Ghana to stabilise our finances and focus all our efforts on continuing the implementation of the ambitious reform program to improve the well-being of the Ghanaian people.&#8221;



Ghana&#8217;s near completion of the debt restructuring process leaves Ethiopia as the only other country on the continent that is still working to overhaul its debt.



Ghana has secured investor approval of its bonds restructuring after data showed its economy expanded at the fastest pace in five years in the second quarter of this year. Inflation has also been falling, allowing policymakers to cut its benchmark interest rate last month, the first easing since January.



The West African gold and cocoa producer defaulted on most of its $30 billion of international debt in 2022, as the strain of the COVID-19 pandemic, war in Ukraine and higher global interest rates tipped it into crisis.



It secured an agreement in principle with two bondholder groups in June, paving the way for the exchange offer and consent solicitation.



The existing defaulted bonds will be swapped for a number of new instruments &#8211; including so-called &#8220;disco&#8221; bonds and a par bond option capped at $1.6 billion.



Ghana is restructuring its debt under the G20 Common Framework, which has seen Zambia and Chad also reach agreements.



Investors welcomed the results of the consent solicitation and bonds exchange.



&#8220;The overwhelming support from regional and international bondholders shows strong support of the Ghana&#8217;s economic reform programme,&#8221; said Samuel Sule, financial adviser to the regional bondholders group.



&#8220;The government can now, accordingly, focus on implementation and execution of programme including promoting economic growth and fiscal consolidation.&#8221;



(Reporting by Anait Miridzhanian, Duncan Miriri and Karin Strohecker; Editing by Toby Chopra and David Evans)

Ghana traders close shops to protest worsening economy

Ghana says bondholders have signed off on $13 bln debt overhaul

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-820x562.jpg" alt="" class="wp-image-537954" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-768x527.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">File photo of fuel tanks at the edge of a miltary airstrip on Diego Garcia, largest island in the Chagos archipelago and site of a major United States military base in the middle of the Indian Ocean leased from Britain in 1966. clh/HO/U.S. CLH/File Photo</figcaption></figure>



LONDON, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;Britain said on Thursday it would give up sovereignty of the Chagos Islands to Mauritius in a deal that would allow people displaced decades ago to return home while London retains use of the UK-U.S. military base on Diego Garcia.



Britain said that the operation of Diego Garcia, a strategic military base jointly operated with the United States, was protected by the agreement, which also allows Mauritius to resettle the rest of the islands after its population was displaced.



&#8220;This government inherited a situation where the long-term, secure operation of the Diego Garcia military base was under threat, with contested sovereignty and ongoing legal challenges,&#8221; British Foreign Minister David Lammy said in a statement.



&#8220;Today’s agreement secures this vital military base for the future. It will strengthen our role in safeguarding global security, shut down any possibility of the Indian Ocean being used as a dangerous illegal migration route to the UK, as well as guaranteeing our long-term relationship with Mauritius.&#8221;



Britain, which has controlled the region since 1814, detached the Chagos Islands in 1965 from Mauritius &#8211; a former colony that became independent three years later &#8211; to create the British Indian Ocean Territory.



In the early 1970s, it evicted almost 2,000 residents to Mauritius and the Seychelles to make way for an airbase on the largest island, Diego Garcia, which it had leased to the United States in 1966.



The World Court said in 2019 that Britain should give up control of the islands and said it had wrongfully forced the population to leave in the 1970s to make way for a U.S. air base.



In a joint statement, Britain and Mauritius said that the political agreement had the support and assistance of the United States and India.



(Reporting by Alistair Smout, William James, Muvija M and Michael Holden; Editing by Kate Holton)

FILE PHOTO OF FUEL TANKS ON INDIAN OCEAN ISLAND OF DIEGO GARCIA

Britain agrees Chagos Island sovereignty deal with Mauritius

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-820x573.jpg" alt="" class="wp-image-537951" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-1536x1073.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Workers load lithium concentrate at Prospect Lithium Zimbabwe mine in Goromonzi, Zimbabwe, January 9, 2024. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Oct 3 (Reuters) &#8211; Zimbabwe has softened its requirements for lithium miners to process the mineral locally, a government official said on Thursday, as the industry battles to survive a price slump over the past year.



Africa&#8217;s top lithium producer, Zimbabwe had last year given producers up to March 2024 to submit plans of how they would produce battery-grade lithium in the impoverished southern African country.



Prices of lithium, which is mainly used in battery technologies, have fallen more than 80% in the past year largely due to overproduction from China and a drop in demand for electric vehicles.



The price collapse has forced companies like Chinese battery giant CATL to suspend production at certain mines. Albemarle, the world&#8217;s top lithium miner, implemented a second round of cost cuts earlier this year and laid off workers.



In Zimbabwe, lithium miners including Sinomine Resource Group&#8217;s Bikita Minerals, have been forced to cut production and lay off workers as the impact of weak prices has been compounded by the country&#8217;s poor infrastructure, currency volatility and policy inconsistencies.



The Zimbabwe government would now take a measured approach in its quest to localise lithium processing, deputy mines minister Polite Kambamura told Reuters.



&#8220;We are now considering them on a case by case basis and also considering the level of investments already put in the country,&#8221; Kambamura said.



Chinese firms including Sinomine, Zhejiang Huayou Cobalt, Chengxin Lithium Group, Yahua Group and Canmax Technologies have spent more than $1 billion over the past three years to acquire and develop lithium projects in Zimbabwe.



&#8220;Some commenced mining operations five months before the deadline, so we are considering where the project is,&#8221; he added.



Sinomine has said it plans to spend up to $500 million building a lithium sulphate plant at Bikita within the next five years.



Huayou has said it is conducting feasibility studies for a lithium sulphate plant at its Arcadia mine.



Kambamura said the government was open to dialogue with lithium miners over their struggles.



&#8220;We understand the prices are low but they are beginning to firm up. The fact that there are upcoming projects means the environment is favourable,&#8221; he added.



(Reporting by Nyasha Chingono; Editing by Nelson Banya and Angus MacSwan)

Workers load lithium concentrate at Prospect Lithium Zimbabwe mine in Goromonzi

Zimbabwe softens stance on local lithium processing after price collapse

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="572" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-820x572.jpg" alt="" class="wp-image-537933" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-1536x1072.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ethiopian Prime Minister Abiy Ahmed attends the 60th anniversary of the Organization of African Unity (OAU)/African Union (AU) at the African Union Commission (AUC) Headquarters in Addis Ababa, Ethiopia May 25, 2023. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



NAIROBI, Oct 3 (Reuters) &#8211; A group of Ethiopia&#8217;s international bondholders rejected on Thursday the outlines of a government restructuring proposal for its $1 billion bond that was presented in an investors call earlier this week.



Ethiopia became Africa&#8217;s third default in as many years in December 2023. Progress on debt restructuring has been sluggish amid slow movement on reforms and drawn-out negotiations of a $3.4 billion programme with the International Monetary Fund.



During a call with global investors on Tuesday, the government sketched out &#8220;illustrative&#8221; terms of a bond restructuring, saying an 18% haircut &#8211; or writedown &#8211; on the nominal value of its sole outstanding dollar bond, excluding past due interest, would be compatible with debt sustainability targets.



&#8220;A haircut of the 2024 Notes principal claim is wholly inconsistent with the Committee’s evaluation of Ethiopia’s economic fundamentals,&#8221;&nbsp;the group of bondholders&nbsp;said in an emailed statement.



&#8220;As such, the Committee does not consider the illustrative terms to be a reasonable starting point for negotiation, a view that is shared by others in the wider bondholder community,&#8221; the&nbsp;group&#8217;s statement said.



A new bond issued to holders as part of the restructuring would have a 5% coupon and mature in June 2031, the government said in its presentation.



(Reporting by Duncan Miriri and George Obulutsa, editing by Karin Strohecker and Gareth Jones)

FILE PHOTO: 60th anniversary of the Organization African Unity (OAU)/African Union (AU) in Addis Ababa

Ethiopia bondholders reject government’s $1 bln bond restructuring outline

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg" alt="" class="wp-image-505639" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A South African one rand coin sits on South African rand banknotes in this arranged photograph in Pretoria, South Africa, on Wednesday, Aug. 14, 2019. The rand ended a tumultuous week on a positive note, gaining against the dollar for a second day and heading for its first weekly advance in four as technical indicators suggested recent declines are overdone. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;The South African rand wavered on Thursday against a buoyant dollar, as tensions simmered in the Middle East following Iran&#8217;s ballistic missile attack on Israel.



At 0830 GMT, the rand was trading at 17.34 against the dollar, about 0.1% firmer than its previous close, after trading slightly weaker in earlier trade.



&#8220;The USD saw strength due to Middle East tensions and strong U.S. labour data, placing pressure on the ZAR,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



The dollar strengthened after robust U.S. jobs data on Wednesday reinforced bets that the Federal Reserve will not rush to cut interest rates in the world&#8217;s biggest economy.



The greenback saw additional demand after an Iranian missile attack on Israel on Tuesday boosted safe-haven assets.



Like other risk-sensitive currencies, the rand often takes direction from global drivers in the absence of major local factors.



&#8220;While the ZAR has been the best-performing emerging market currency, a correction was overdue after significant appreciation,&#8221; Cilliers said.



The rand has gained about 6% over the last three months.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded about 1.2% weaker.



South Africa&#8217;s benchmark 2030 government bond was slightly firmer, with the yield down 2.5 basis points at 9.035%.



(Reporting by Tannur Anders; Editing by Sherry Jacob-Phillips and Mark Potter)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand seesaws against buoyant dollar

<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="720" height="458" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA.jpg" alt="" class="wp-image-537913" style="width:720px;height:auto" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA-141x90.jpg 141w" sizes="auto, (max-width: 720px) 100vw, 720px" /><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, Oct 3 (Reuters) &#8211; Tanzania&#8217;s central bank held its key interest rate unchanged at 6%, it said on Thursday.



In the two quarters to September, the central bank held the benchmark rate at 6%, from 5.5% that was announced in January when the bank introduced the rate.



The bank targets inflation of 5%, but consumer inflation has stayed comfortably below that figure, despite growing pressure on the shilling.



Inflation increased to 3.1% year-on-year in August from 3.0% the previous month, data from the statistics office showed.



(Reporting by Nuzulack Dausen; Writing by George Obulutsa; Editing by Christina Fincher)

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Reuters

Debt burden threatens poor countries’ development goals, UN official says

Ghana’s wildcat gold mining booms, poisoning people and nature

Rwanda begins Marburg vaccinations to curb deadly outbreak

Nigeria’s central bank to automate FX trades from December

IMF and Ghana reach staff-level deal on $3 bln loan programme review

South African rand gains, focus on Middle East tension and US payrolls data

Nigeria’s private sector gets boost from new orders in September

Kenyan shilling unchanged versus dollar, LSEG data shows

South African Markets – Factors to watch on Oct 4

African Markets – Factors to watch on Oct 4

Kenya asks IMF to review corruption issues after Western push

Ghana says bondholders have signed off on $13 bln debt overhaul

Britain agrees Chagos Island sovereignty deal with Mauritius

Zimbabwe softens stance on local lithium processing after price collapse

Ethiopia bondholders reject government’s $1 bln bond restructuring outline

South African rand seesaws against buoyant dollar

Tanzania central bank holds lending rate at 6%

News Tips

Advertise With Us

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