<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)

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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)

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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)

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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)

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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)

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

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-820x547.jpg" alt="" class="wp-image-559648" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Bank of Uganda, Uganda&#8217;s central bank, in Kampala, Uganda, on Wednesday, May 17, 2023. Uganda estimates that it will need $28.1 billion to adapt to the effects of climate change and cut emissions until the end of the decade. Photographer: Katumba Badru Sultan/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, Jan 6 (Reuters)&nbsp;&#8211;&nbsp;The Bank of Uganda (BoU) said on Monday it would change&nbsp;the release of its&nbsp;benchmark policy rate from every two months to quarterly, starting this year.



Interest rate meetings by the central bank&#8217;s Monetary Policy Committee (MPC) will now be conducted in February, May, August, and November, the bank said in a statement.



&#8220;This change allows the MPC to conduct more comprehensive economic analysis, leveraging additional data to enhance forecasting accuracy and build upon its established track record of effective policy decisions,&#8221;&nbsp;the&nbsp;BoU said.



At its last meeting in December, the bank left the benchmark rate unchanged at 9.75%, saying risks to the inflation outlook were balanced.



(Reporting by Elias Biryabarema, Editing by Bhargav Acharya and Kevin Liffey)

Katumba Badru Sultan/Bloomberg

Uganda’s central bank changes policy rate meetings to quarterly

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3038" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/LGH7TDQ2DNN3FKFRGO2SVYRP34.avif" alt="" class="wp-image-572751"/><figcaption class="wp-element-caption">A view shows the Nairobi Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, in Nairobi, Kenya May 8, 2022. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Jan 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector activity expanded very slightly in December, with growth slowing a little from a month earlier but remaining supported by increased customer sales, a survey showed on Monday.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) dipped to 50.6 in December from 50.9 a month earlier. Readings above 50.0 signal an expansion in activity.



&#8220;Positively, this is the first quarter of expansion in output since (the fourth quarter of 2021), suggesting that the private sector is showing signs of turning around with new orders and employment also in expansionary territory,&#8221; said Christopher Legilisho, an economist at Stanbic Bank.



The economy is estimated to have grown 5.2% in 2024 and projected to expand 5.4% in 2025, the finance ministry says. The economy grew 5.6% in 2023.



(Reporting by George Obulutsa; Editing by Hugh Lawson)

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Kenya private sector activity expands at slower pace in December, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="2986" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/FFF7V4LQRJNTLLSYNGSJLO2CEU.avif" alt="" class="wp-image-572748"/><figcaption class="wp-element-caption">An employee sorts out clothing at a retail store in Sandton, near Johannesburg, South Africa, October 15, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Jan 6 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s private sector activity contracted in December for the first time since August, as muted demand and rising inflationary pressures weighed on growth, a survey showed on Monday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) fell to 49.9 in December from 50.9 in November, slipping below the 50.0 threshold that separates growth from contraction.



New orders stalled, ending a four-month growth streak, as subdued market conditions and a further decline in export business dampened sales.



&#8220;December&#8217;s PMI data suggest that the South African economy may have lost a little bit of steam at the end of 2024,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



He highlighted a &#8220;more muted demand environment&#8221; and &#8220;accelerated cost pressures&#8221; as key challenges.



Inflationary pressures intensified, with input costs rising at the fastest rate in four months, driven by higher wages and increased material and transport prices. However, the rate of inflation remained below long-term trends.



Despite the downturn, supply chain pressures eased, encouraging firms to increase input purchases for the third consecutive month.



Employment remained stable, following a slight increase in November, while output and sales contracted across most sectors, particularly in construction. The services sector, however, showed a slight uptick in new work.



Overall, the PMI&#8217;s fourth quarter average of 50.5 was the strongest since third quarter in 2022, providing some optimism for gross domestic product growth recovery after a contraction last quarter.



(Reporting by Johannesburg bureau; Editing by Hugh Lawson)

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South African business activity slips into contraction in December, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2588" height="1697" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GIP2AWDTGVOW3LFUFHTPXIMOFQ.avif" alt="" class="wp-image-572733"/><figcaption class="wp-element-caption">A reflection from the windows show Kenya Airways planes parked at terminal within the Jomo Kenyatta International Airport near Nairobi, Kenya March 7, 2023. REUTERS/Thomas Mukoya/File photo</figcaption></figure>



NAIROBI, Jan 6 (Reuters) &#8211; Nairobi Securities Exchange has lifted a suspension on trading shares of national carrier Kenya Airways, the bourse said on Monday.



&#8220;The suspension on the trading of Kenya Airways PLC shares was lifted following the company’s recent performance which saw the company record a profit after tax and the withdrawal of the



National Aviation Management Bill 2020,&#8221; the bourse said in a statement.



Kenya Airways&#8217; shares were suspended from trading in 2020, when at the time the government had announced plans to renationalise the airline. The plan did not take off.



One of Africa&#8217;s three biggest carriers, Kenya Airways slid into insolvency in 2018 after an expansion drive left it with hundreds of millions of dollars in debt.



On its last day of trade on March 2, 2020, the stock closed at 3.83 shillings a share.



It posted an operating profit of 10.53 billion shillings ($80.38 million) in 2023, the first since 2017.



(Reporting by George Obulutsa; Editing by Tom Hogue and Kim Coghill)

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Nairobi Securities Exchange allows Kenya Airways shares to trade again

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/HN5HXC2VO5KTJGF2LIADJSUSWE.avif" alt="" class="wp-image-572708"/><figcaption class="wp-element-caption">Foreign Minister of the People&#8217;s Republic of China Wang Yi addresses the &#8220;Summit of the Future&#8221; in the General Assembly hall at United Nations headquarters in New York City, U.S., September 23, 2024. REUTERS/David Dee Delgado/File Photo</figcaption></figure>



BEIJING, Jan 6 (Reuters)&nbsp;&#8211;&nbsp;China&#8217;s top diplomat began his annual New Year tour of Africa on Sunday, maintaining a 35-year-long tradition, to quietly advance Beijing&#8217;s already sizeable influence across the resource-rich continent as Europe&#8217;s presence wanes and America&#8217;s wavers.



While global capitals and investors brace for the return of U.S. President-elect Donald Trump to the White House, and wars in Ukraine and the Middle East and domestic politics keep German and French ministers occupied, Foreign Minister Wang Yi being in Namibia, the Republic of Congo, Chad and Nigeria highlights the consistency of China&#8217;s engagement with Africa, analysts say.



Wang&#8217;s visit through to Saturday also comes as the world&#8217;s No.2 economy ramps up its financial support for the debt-laden continent and looks to strike more critical minerals deals and find markets to absorb its exports.



&#8220;The decision on which countries to go to each year rarely follows any external logic,&#8221; said Eric Orlander, co-founder of the China-Global South Project. &#8220;(But) it resonates in Africa as a reminder of China&#8217;s consistent commitment to the continent, in contrast to the approaches of the U.S., United Kingdom and European Union.&#8221;



Mao Ning, Chinese foreign ministry spokesperson, announced the visit at a news conference on Friday, saying it aimed to deepen practical cooperation across the board for sustained and substantive growth of China-Africa relations.



As China&#8217;s economy slows, Africa offers a much-needed avenue for its state-owned infrastructure firms struggling for projects as indebted local governments hold off on spending, and a market for its electric vehicles and solar panels, areas where the U.S. and EU say it has over-capacity.



Africa&#8217;s 50-plus votes at the United Nations could also help advance Beijing&#8217;s efforts to reshape multilateral institutions and reinterpret global norms so that they are more in line with its interests, particularly on issues such as human rights.



While current U.S. President Joe Biden&#8217;s December trip to Angola was his only visit to sub-Saharan Africa in his presidency, China puts Africa at the front of its diplomatic calendar.



&#8220;China has become central to Africa&#8217;s policy, as an actor and an inspiration,&#8221; said Hannah Ryder, founder of Development Reimagined, an African-owned consultancy, referring to how candidates vying to chair the African Union Commission have talked up Beijing&#8217;s ability to improve Africa&#8217;s manufacturing capabilities and China&#8217;s track record in mass education ahead of February&#8217;s election. The commission is the secretariat of the 55-nation African Union.



<h2 class="wp-block-heading" id="h-security-issues">SECURITY ISSUES</h2>



Wang&#8217;s decision to visit the Republic of Congo, which this year takes over as co-chair of the Forum on China-Africa Cooperation(FOCAC) that sets the agenda for China-Africa relations, also points to China&#8217;s commitment to implementing the outcomes of last year&#8217;s summit, Ryder said, where China pledged $51 billion in fresh financial assistance.



Beijing is also beginning to make its presence felt on pressing regional security issues, analysts say, which partly explains why Wang will travel to Chad.



France last month began the withdrawal of its military from the Central African country, after its government unexpectedly ended a defence cooperation pact that had made it a key Western ally in the fight against Islamic militants in the region.



&#8220;China has been a reliable and stable partner for the new military juntas in the Sahel and West Africa,&#8221; Orland said.



&#8220;For the French and U.S., who see a dilution of Western power in the region, China&#8217;s presence is seen as &#8216;controversial,&#8217; but it&#8217;s a very different view from African perspectives.&#8221;



(Reporting by Joe Cash; Editing by Raju Gopalakrishnan)

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China’s top diplomat heads to Africa as West’s attention dwindles

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/I7GSHMVDBNLKVBLVYGRHKIEEVI.avif" alt="" class="wp-image-571674"/><figcaption class="wp-element-caption">Nigerian President Bola Tinubu looks on as he meets with South African President Cyril Ramaphosa on the day of the 11th Bi-National Commission between the two countries at Tuynhuys, in Cape Town, South Africa, December 3, 2024.REUTERS/Esa Alexander/File Photo</figcaption></figure>



LAGOS, (Reuters) &#8211; Nigeria will establish a national credit guarantee company in May to lend to businesses and individuals, President Bola Tinubu said in an speech on Wednesday.



Tinubu, who took office in May 2023, campaigned on economic reforms including expanding credit access to boost economic growth.



&#8220;To achieve this, the federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises.



Tinubu said the company would partner with government institutions such as the Bank of Industry, Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated, as well as the private sector and multilateral institutions.



&#8220;This initiative will strengthen the confidence of the financial system, expand credit access, and support under-served groups such as women and youth. It will drive growth, re-industrialisation, and better living standards for our people,&#8221; Tinubu said.



Eight months ago, Tinubu launched the Nigerian Consumer Credit Corporation, to enhance access to credit to employed Nigerians.



The implementation of the programme was planned in stages, beginning with Federal civil service employees and now the general public.



(Reporting by Isaac Anyaogu; Editing by Kirsten Donovan)

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Nigeria to expand credit access to citizens

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/JKSKPU3LJRIWNCOF4JQUE5QPHE.avif" alt="" class="wp-image-571113"/><figcaption class="wp-element-caption">Labourers harvest cocoa pods at a farm in Assin Foso, Ghana, November 21, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



SINGAPORE, Dec 31 (Reuters)&nbsp;&#8211;&nbsp;Cocoa and coffee are poised to close 2024 as the biggest gainers among commodities for a second year on a global supply deficit, while steel-making coal will end as the worst performer, hit by slow growth in China.



Looking ahead, global trade tensions are likely to dominate the commodities landscape in 2025 as Donald Trump returns to the White House threatening hefty tariffs, analysts said.



A strong dollar and gold&#8217;s appeal as a safe haven for investors are likely to support precious metals prices, while ample supply could depress oil for a third year, they added.



In bad news for chocolate lovers, cocoa nearly tripled in price over 2024, far outpacing gains in other commodities. It hit a record high of $12,931 a metric ton in New York earlier this month on forecasts of lower supply for a fourth successive season in West Africa following dry weather.



&#8220;The softs sector, led by cocoa and coffee, has been the main winner amid adverse weather in key growing regions, highlighting the risk to prices when products like these are produced and sourced from relatively small geographical areas,&#8221; said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.



Top cocoa producers Ivory Coast and Ghana have suffered crop losses due to adverse weather, bean disease, smuggling and reduced plantations in favour of illegal gold mining.



Dryness has strained coffee supplies as well. ICE Arabica coffee prices soared to their highest in more than 40 years amid fears that severe drought earlier this year damaged the upcoming crop in top producer Brazil.



<h2 class="wp-block-heading" id="h-china-growth-worries-hit-oil-iron-ore">CHINA GROWTH WORRIES HIT OIL, IRON ORE</h2>



Crude oil and bulk metals faced headwinds in 2024 as China, the world&#8217;s second-biggest economy and top commodities buyer, struggled mainly due to a property crisis.



Brent and West Texas Intermediate crude could post a third consecutive annual decline in 2025 as supply outstrips a rebound in demand growth, analysts said, although Trump&#8217;s policies on major producers Russia and Iran could curb supply.



Spare capacity in the Organization of the Petroleum Exporting Countries (OPEC) reached an unprecedented 5 million barrels per day (bpd), analysts estimated, with the group having extended production cuts to March.



&#8220;The bleak inventory path next year suggests that OPEC+ will be challenged to bring back barrels into the market,&#8221; Harry Tchilinguirian, head of research at Onyx Capital Group, said in a note.



Iron ore prices in China recouped some losses in recent months but are still headed for a 15% decline in 2024. Prices could fall again next year as iron ore supply grows and Chinese steel demand falls, analysts said, despite Beijing&#8217;s stimulus measures.



&#8220;We expect the increase in iron ore supply from major miners will be higher than that in 2024, but steel output in China will likely slide,&#8221; Pei Hao, senior analyst at brokerage Freight Investor Services, said, forecasting an average price of $100 a ton in 2025, down from an average of $110 in 2024.



Gold and silver rose more than 25% in 2024 and could climb further in the year ahead depending on the U.S. Federal Reserve&#8217;s interest rate cuts and Trump&#8217;s tariff, tax and foreign policies, analysts said.



&#8220;Gold is the standout for us in 2025,&#8221; ING&#8217;s head of commodity research Warren Patterson said, adding that strong gold purchases by central banks will support demand.



Copper and aluminium prices are set to end 2024 higher, driven by tight supplies, the energy transition and hopes that China&#8217;s stimulus measures will boost demand.



<h2 class="wp-block-heading" id="h-palm-oil-rubber-and-grains">PALM OIL, RUBBER AND GRAINS</h2>



For agricultural products, Malaysian palm oil futures&nbsp;FCPOc3&nbsp;jumped around 20% in 2024, snapping two consecutive years of losses, lifted by Indonesia&#8217;s biodiesel mandate and adverse weather in Indonesia and Malaysia.



Crop-threatening weather also drove a 42% gain in Tokyo rubber futures&nbsp;JRUc6.



In contrast, soybeans Sv1, corn Cv1 and wheat Wv1 were in plentiful supply, all on track for losses in 2024. However, wheat prices could find some support in 2025 as warmer weather in Russia, the biggest exporter, threatens to reduce output.



Top soybean exporter Brazil is poised to deliver record supplies in 2025, positioning it to meet a rise in Chinese demand if a Washington-Beijing trade war erupts.



(Reporting by Naveen Thukral, Florence Tan and Gabrielle Ng in Singapore; Additional reporting by Amy Lv in Beijing, Violet Li in Shanghai, Ashitha Shivaprasad and Sherin Elizabeth Varghese in Bengaluru and Ashley Tang in Kuala Lumpur; Editing by Sonali Paul)

JKSKPU3LJRIWNCOF4JQUE5QPHE

Cocoa tops global commodities rally for 2nd year, steel ingredients struggle on China demand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2186808593-820x547.jpg" alt="" class="wp-image-569805" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2186808593-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2186808593-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2186808593-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2186808593-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2186808593-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2186808593-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Military police patrol the streets following protests in Maputo, Mozambique, on Thursday, Nov. 28, 2024. The continued disruption following election results disputes is hitting the already strained state finances with annual inflation in Mozambique edged up to 2.7% in October. Photographer: Kang-Chun Cheng/Bloomberg via Getty Images</figcaption></figure>



CAPE TOWN, Dec 26 (Reuters) &#8211; South African petrochemical company Sasol has reduced natural gas production at its central processing facility in Temane, Mozambique, to ensure the safety of its staff and assets amid widespread post-election unrest, its spokesperson said.



South Africa receives the bulk of its gas imports via the Rompco pipeline that links onshore gas fields in Mozambique to Sasol&#8217;s Secunda industrial complex in Mpumalanga province, before being piped onwards to clients in Gauteng and KwaZulu-Natal regions.



&#8220;We have informed various gas users and our customers that we are not able to supply gas at full production rates to maintain stability of the gas value chain infrastructure and pipeline network,&#8221; Alex Anderson, a Sasol spokesperson said late on Wednesday.



Mozambique has been wracked by unrest following a disputed election in October that saw ruling party candidate Daniel Chapo elected as president.



The unrest has already affected the operations of foreign companies including the Australian mining firm South32 and led to the temporary closure of the main border crossing with neighbouring South Africa.



Civil unrest escalated when the Constitutional Council on Monday confirmed long-ruling party Frelimo&#8217;s victory.



On Tuesday, at least 21 people were killed in the unrest which on Wednesday spread to some prisons and saw 33 people killed.



Western observers said the election was not free and fair, saying there were irregularities in the tabulation process and a lack of transparency in the election period.



&#8220;The situation around the central processing facility is calm and there has been no security or perimeter breach,&#8221; Anderson said, adding that the safety of staff, service providers and communities was their main priority.



(Reporting by Wendell Roelf; Editing by Olivia Kumwenda-Mtambo, Alexandra Hudson)

Mozambique Sees Renewed Election Unrest Raising Inflationary Risks

Sasol reduces gas output at Mozambique plant due to unrest

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1005" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/DANGOTE-REFINERY.avif" alt="" class="wp-image-568268"/><figcaption class="wp-element-caption">A view of the newly-commissioned Dangote petroleum refinery is pictured in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja/File Photo </figcaption></figure>



LAGOS, Dec 20 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s Dangote Refinery is now operating at 85% capacity and is on course to deliver European-standard products by January, an executive said on Friday.



The 650,000-barrel-per-day Dangote oil refinery built by Nigerian billionaire Aliko Dangote in Lagos aims to compete with European refiners when operating at full capacity but had been struggling to secure sufficient crude locally.



&#8220;We have gone up to 550,000 bpd, that is 85% capacity in crude distillation,&#8221; Edwin Devakumar, head of the refinery, told Reuters.



The refinery was forced to source crude from international markets following a dispute with the Nigerian state-oil firm the NNPC over a crude supply deal under which Dangote had agreed to sell a 20% stake in the refinery to NNPC for $2.76 billion.



&#8220;Of this, we agreed that they will only pay $1 billion while the balance will be recovered over a period of five years through deductions on crude oil that they supply to us and from dividends due to them,&#8221; a Dangote spokesperson said.



&#8220;Unfortunately, NNPCL was later unable to supply the agreed 300,000 barrels a day of crude given that they had committed a greater part of their crude cargoes to financiers with the expectation of higher production which they were unable to achieve,&#8221; the spokesperson said in a statement on Wednesday.



Dangote Refinery began processing crude in January into products including diesel, naphtha and jet fuel, and started processing petrol in September.



It still faces challenges distributing the products at home with local fuel traders and even the NNPC&nbsp;importing&nbsp;refined products. The NNPC recently said it had restarted its 60,000 bpd Port Harcourt refinery.



Dangote Refinery cut the price of its petrol to 899.50 naira ($0.58) per litre on Thursday from 970 naira &#8220;to alleviate transport cost during the holiday season&#8221;.



($1 = 1,541.4300 naira)



(Reporting by Isaac Anyaogu; Editing by Emelia Sithole-Matarise)

DANGOTE REFINERY

Nigeria’s Dangote Refinery hits 85% refining capacity, executive says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/ORANO.avif" alt="" class="wp-image-568252"/><figcaption class="wp-element-caption">The Orano logo is seen on a jacket of an employee on the construction site of the third-generation European Pressurised Water nuclear reactor (EPR) in Flamanville, France, June 14, 2022. REUTERS/Sarah Meyssonnier/File Photo</figcaption></figure>



PARIS, Dec 20 (Reuters)&nbsp;&#8211;&nbsp;French nuclear fuels company Orano said on Friday it had started arbitration proceedings against Niger, after Niger&nbsp;withdrew the mining licence of Orano&#8217;s subsidiary Imouraren.



Niger&#8217;s military-led government has stepped up pressure in recent months on foreign investors. A representative for the government did not immediately respond to a request for comment.



Orano said in June that Niger had removed the mining permit for Imouraren, and the following month Canada&#8217;s GoviEx Uranium GXU.V said it too had been stripped of its right to develop a uranium project in Niger.



Earlier this month, Orano said authorities in Niger had seized control of its Somair uranium mine.



Niger accounts for about 4% of global output of uranium, the most widely used fuel for nuclear energy.



Barrick Gold said on Wednesday it would initiate arbitration in its dispute with neighbouring Mali.



(Reporting by Benjamin Mallet and Sudip Kar-Gupta; Writing by Makini Brice; Editing by Susan Fenton)

ORANO

France’s Orano launches arbitration against Niger over mining licence

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="439" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand-Dec.avif" alt="" class="wp-image-568249"/><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, Dec 20 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand recovered some losses on Friday after a slight improvement in risk sentiment.



At 1406 GMT, the rand traded at 18.355 against the dollar&nbsp;ZAR=D3, about 0.3% stronger than its previous close.



Trade in the rand, like most emerging market currencies, has been volatile this week after the U.S. Federal Reserve on Wednesday struck a hawkish tone in its interest rate outlook for the year ahead.



Andre Cilliers, currency strategist at TreasuryONE, said liquidity constraints during the holiday season could amplify swings in the local currency.



&#8220;Near-term volatility (is) likely to persist,&#8221; Cilliers said.



There are no major local economic data releases scheduled for next week.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index was little changed.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was weaker, with the yield up 2 basis points to 9.135%.



(Reporting by Bhargav Acharya; Editing by Angus MacSwan and Shailesh Kuber)

rand Dec

South African rand recovers some ground against dollar

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="473" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QPQQ77FJE5JRTNVTB23SO7K7RM.avif" alt="" class="wp-image-568246"/><figcaption class="wp-element-caption">A view shows Nigeria&#8217;s Central Bank headquarters in Abuja, Nigeria November 22, 2020. Picture taken November 22, 2020. REUTERS/Afolabi Sotunde//File Photo</figcaption></figure>



ABUJA, Dec 20 (Reuters)&nbsp;&#8211;&nbsp;The Central Bank of Nigeria (CBN) has granted the country&#8217;s Bureau de Change (BDC)&nbsp;operators temporary access to the official foreign exchange market from December 19 to January 30, 2025, it said in a statement on Thursday.



Operators will be allowed to purchase a maximum of $25,000 weekly from authorised dealers. All transactions require upfront funding at prevailing rates and must adhere to a maximum spread of 1%, the CBN said.



Nigeria&#8217;s central bank typically sells foreign exchange directly to BDCs at a subsidised rate. The bank&#8217;s statement did not explain the reasoning behind the move, which would give the BDCs access to a new automated FX trading system launched this month to replace a decade-old over-the-counter system.



(Reporting by Elisha Bala-Gbogbo; Editing by Peter Graff)

Reuters

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

Uganda’s central bank changes policy rate meetings to quarterly

Kenya private sector activity expands at slower pace in December, PMI shows

South African business activity slips into contraction in December, PMI shows

Nairobi Securities Exchange allows Kenya Airways shares to trade again

China’s top diplomat heads to Africa as West’s attention dwindles

Nigeria to expand credit access to citizens

Cocoa tops global commodities rally for 2nd year, steel ingredients struggle on China demand

Sasol reduces gas output at Mozambique plant due to unrest

Nigeria’s Dangote Refinery hits 85% refining capacity, executive says

France’s Orano launches arbitration against Niger over mining licence

South African rand recovers some ground against dollar

Nigeria central bank grants exchange bureaus temporary access to FX spot market

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Reuters

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

Uganda’s central bank changes policy rate meetings to quarterly

Kenya private sector activity expands at slower pace in December, PMI shows

South African business activity slips into contraction in December, PMI shows

Nairobi Securities Exchange allows Kenya Airways shares to trade again

China’s top diplomat heads to Africa as West’s attention dwindles

Nigeria to expand credit access to citizens

Cocoa tops global commodities rally for 2nd year, steel ingredients struggle on China demand

Sasol reduces gas output at Mozambique plant due to unrest

Nigeria’s Dangote Refinery hits 85% refining capacity, executive says

France’s Orano launches arbitration against Niger over mining licence

South African rand recovers some ground against dollar

Nigeria central bank grants exchange bureaus temporary access to FX spot market

News Tips

Advertise With Us

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