<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/O5OSHLQ2ENJABK4UIKWVT7ANBU-820x547.jpg" alt="" class="wp-image-530080" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/O5OSHLQ2ENJABK4UIKWVT7ANBU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/O5OSHLQ2ENJABK4UIKWVT7ANBU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/O5OSHLQ2ENJABK4UIKWVT7ANBU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/O5OSHLQ2ENJABK4UIKWVT7ANBU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/O5OSHLQ2ENJABK4UIKWVT7ANBU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/O5OSHLQ2ENJABK4UIKWVT7ANBU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo</figcaption></figure>



ABUJA, Sept 13 (Reuters) &#8211; Nigerian communities are claiming 505 billion naira ($310 million) in damages from Shell, which they accuse of breaching an existing court order by striking a deal to sell its onshore assets in the Niger Delta, court papers showed on Friday.



Shell is set to exit Nigeria&#8217;s onshore oil and gas sector after agreeing in January to sell its business to a consortium of five mostly local companies for $2.4 billion.



But more than 1,200 representatives of Ilaje communities in the Niger Delta asked the Federal High Court in Abuja to stop the deal, arguing that Shell was violating a December 2023 ruling that suspended any assets sale until a compensation lawsuit was concluded.



The community has a pending lawsuit against Shell, which it accuses of causing an oil spill that damaged waterways and farms.



Shell has long maintained that such spills were mostly due to theft of oil and interference with pipelines.



In the court papers, the community said Shell should be penalised for going ahead with asset sale &#8220;when the plaintiffs and the host of their community members have remained in perpetual suffering over the failure of the defendants to obey the preservative orders of a competent court.&#8221;



Shell did not immediately comment.



It was not immediately clear when the court would hear the case.



The oil major has faced a string of lawsuits locally and abroad from communities demanding environmental restoration or compensation for land damaged by historical oil spills.



Shell&#8217;s asset sale is yet to be approved by the energy regulator and the petroleum minister.



($1 = 1,630.0000 naira)



(Reporting by Camillus Eboh; Editing by Mark Potter)

FILE PHOTO: LNG 2023 energy trade show in Vancouver

Nigerian communities seek $310 mln from Shell, want asset sale stopped

<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, Sept 13 (Reuters)&nbsp;&#8211;&nbsp;The following political and economic events, company announcements, equity and currency market moves may affect South African markets on Friday.



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



South Africa&#8217;s President Cyril Ramaphosa will sign a contested education bill into law.



Ramaphosa will engage with the media on the Seventh Administration and the government of national unity.



<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-companies">COMPANIES</h2>



Retailer Mr Price will host a capital markets day.



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



South Africa&#8217;s rand inched higher against a weaker dollar on Thursday, with the next big local drivers &#8211; inflation data and an interest rate decision &#8211; due next week.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed up more than 1.1%. South Africa&#8217;s benchmark 2030 government bond was little moved, the yield at 9%.



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



The dollar slumped to its lowest this year on Friday versus the yen while gold hit a record high as investors ratcheted up bets for a super-sized Federal Reserve interest rate cut next week.



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



Wall Street&#8217;s main indexes closed higher on Thursday after the latest inflation data reinforced expectations for a 25-basis point rate cut by the Federal Reserve, while Moderna&#8217;s weak revenue forecast made it the S&amp;P 500&#8217;s biggest percentage loser.



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



Gold prices soared to an all-time high on Friday as the dollar weakened amid the prospect of a reduction in U.S. interest rates, while palladium has gained 15% so far this week.



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



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



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



&#8211; Pravin Gordhan, former minister and struggle veteran, has died



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



&#8211; FirstRand opts for caution as it pencils in only three rate cuts for SA



&#8211; Radioactive waste, small reactors and geopolitics will shape SA&#8217;s nuclear plans



(Compiled by Tannur Anders; Editing by Mark Potter)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Sept 13

<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>



Sept 13 (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-global-markets">GLOBAL MARKETS</h2>



The dollar on Friday slumped against the yen while gold hit an all-time peak as investors ratcheted up bets for a super-sized Federal Reserve interest rate cut next week after media reports suggested the decision was a tough one for officials.



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



Oil prices rose on Friday, extending a rally sparked by output disruptions in the U.S. Gulf of Mexico, where Hurricane Francine forced producers to evacuate platforms before it hit the coast of Louisiana.



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



South Africa&#8217;s rand inched higher against a weaker dollar on Thursday, with the next big local drivers &#8211; inflation data and an interest rate decision &#8211; due next week.



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



The Kenyan shilling was flat on Thursday despite a slight pickup in foreign-currency demand, and traders said it was expected to remain in a tight range.



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



The Kenyan, Ugandan, Ghanaian and Zambian currencies are expected to be broadly stable in the next week to Thursday, while Nigeria&#8217;s could fall, traders said.



<h2 class="wp-block-heading" id="h-un-africa">UN AFRICA</h2>



The United States supports creating two permanent United Nations Security Council seats for African states and one seat to be rotated among small island developing states, U.S. Ambassador to the U.N. Linda Thomas-Greenfield announced on Thursday.



<h2 class="wp-block-heading" id="h-senegal-politics">SENEGAL POLITICS</h2>



Senegal President Bassirou Diomaye Faye on Thursday dissolved the opposition-led national assembly, clearing the way for early legislative elections on Nov. 17.



<h2 class="wp-block-heading" id="h-africa-mpox">AFRICA MPOX</h2>



The Africa Centres for Disease Control and Prevention (Africa CDC) is able to raise $600 million to fight a surging mpox outbreak on the continent, the agency&#8217;s head said on Thursday.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Sept 13

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-820x547.jpg" alt="" class="wp-image-529796" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, U.S., February 14, 2019. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;U.S. e-commerce giant Amazon.com&nbsp;is in South Africa for the long run, its regional marketplace head said on Thursday, after its&nbsp;first foray&nbsp;into Sub-Saharan Africa four months ago.



Africa&#8217;s most advanced economy is usually seen as a good entry point for companies to expand into the continent and Amazon could be doing the same, analysts have said.



Its entry comes amid a sharp rise in online shopping in South Africa after the pandemic created an opportunity for e-commerce to finally take hold, with retailers including Naspers-owned&nbsp;e-commerce leader Takealot.com doubling down on investments in response.



Unlike the fanfare arrival that shoppers expected, Amazon launched in May with limited products on its website and little marketing while it worked to bring independent sellers onto its platform. The company has not given details of its plans.



Amazon&#8217;s Head of Marketplace for Sub-Saharan Africa, Suzelle Abe, hinted at a gradual approach, telling potential sellers at an e-commerce conference in Johannesburg that the retailer would keep building its online store with more categories and sellers.



&#8220;We want to get to know the customers. We want to get to know a lot of important learnings and through that, we keep on building,&#8221; Abe said.



&#8220;And yes, we&#8217;re definitely here for the long run.&#8221;



The retailer, which made South Africa its 23rd launch country, recently added jewellery and luggage to its growing list of categories, Abe added, with more to come.



Amazon has two fulfilment centres in South Africa, one in Johannesburg and one in Cape Town, and has partnered with click-and-collect companies such as Pargo and home courier companies for last-mile delivery.



Apart from Takealot.com and local retailers, Amazon is also competing with U.S. retail giant Walmart Inc, which owns food and general merchandise group Massmart, and low-price fast-fashion sites Shein and Temu, which have disrupted South Africa&#8217;s discount fashion market.



(Reporting by Nqobile Dludla; Editing by Mark Potter)

FILE PHOTO: FILE PHOTO: The logo of Amazon is seen on the door of an Amazon Books retail store in New York

Amazon is in South Africa for the long run, says marketplace head

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-820x429.jpg" alt="" class="wp-image-529778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man counts Nigerian naira notes in a market place in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



NAIROBI, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;The Kenyan, Ugandan, Ghanaian and Zambian currencies are expected to be broadly stable in the next week to Thursday, while Nigeria&#8217;s could fall, traders said.



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



Kenya&#8217;s shilling is expected to be little changed in the coming week, extending a recent period of stability that has lasted about a month.



LSEG data quoted the shilling at 128.50/129.50 per dollar, compared with 128.25/129.25 at last Thursday&#8217;s close.



&#8220;We&#8217;re stuck within this range,&#8221; one trader said. &#8220;The shilling has reached a stable zone.&#8221;



The local unit rallied strongly early this year as concerns eased that the East African country would default on a $2 billion Eurobond that matured in June, but it lost momentum from April onwards.



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



Nigeria&#8217;s naira could lose ground due to rising foreign-currency demand, despite the country raising $900 million from a domestic dollar bond sale.



The naira was quoted at 1,650 to the dollar on the official market on Thursday, LSEG data showed, the same rate at which the currency was changing hands in street trading.



That compares with a closing rate of around 1,592 naira a week earlier.



&#8220;The dollar raise in itself does not translate to an appreciation, until the central bank puts out those dollars to the market,&#8221; one trader said, adding: &#8220;Demand is overpowering supply&#8221;.



The trader said if the central bank increases the size of its interventions on the currency market that could support the naira, but its interventions had been too small.



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



Ghana&#8217;s cedi is seen trading relatively stable on the back of weak foreign-currency demand and continued central bank support.



LSEG data showed the cedi trading at 15.65 to the dollar versus 15.62 a week ago.



&#8220;The cedi traded relatively stable against the dollar in the past week, with very little interbank activity. Corporate demand has also decreased in the last few sessions,&#8221; said Sedem Dornoo, a senior trader at Absa Bank Ghana.



&#8220;We expect the pair to remain relatively stable in the coming week,&#8221; he added.



Another trader said the central bank&#8217;s interventions could anchor the pair in the short term.



<h2 class="wp-block-heading" id="h-uganda">UGANDA</h2>



Uganda&#8217;s shilling is seen trading in a tight range in the coming days, underpinned by subdued demand for dollars as most firms reserve their local currency for mid-month tax payments.



Commercial banks quoted the shilling at 3,715/3,725 to the dollar, compared to last Thursday&#8217;s close of 3,716/3,726.



&#8220;Mid-month tax payments are around the corner, I anticipate some support for the local unit from that,&#8221; one trader said.



He said the local unit was likely to oscillate in the 3,700-3,730 range against the dollar in the next week.



<h2 class="wp-block-heading" id="h-zambia">ZAMBIA</h2>



Zambia&#8217;s kwacha is likely to hold steady, supported by companies selling dollars as they prepare to pay taxes.



On Thursday the kwacha was quoted at 26.25 per dollar from 26.30 a week ago.



&#8220;We have VAT (Value Added Tax) payments due mid-next week and this should support the local unit,&#8221; one financial analyst said.



(Reporting by Hereward Holland, Chris Mfula, Chijioke Ohuocha, Elias Biryabarema and Christian AkorlieEditing by Alexander Winning)

AU3TIBJDBBNTFCB7MP32IQ4O5A (1)

Kenyan and Zambian currencies seen stable, Nigeria’s could weaken

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg" alt="" class="wp-image-529745" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-1536x1005.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shoppers look for items as they shop at an outlet of retailer Checkers in Sandton City mall, in Sandton, South Africa, August 28, 2024. REUTERS/Lelethu Madikane</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;South African analysts, business people and trade unions further lowered their inflation expectations in the third quarter of this year, bringing them closer to the level targeted by the central bank, a quarterly survey showed on Thursday.



The results of the survey &#8211; a key data point for the central bank at its monetary policy meetings &#8211; are likely to reinforce expectations that the bank will cut its key rate for the first time in more than four years on Sept. 19.



The average inflation forecast for 2024 fell to 5.1% in the third quarter from 5.3% in the second quarter, the Bureau for Economic Research&#8217;s survey showed.



For 2025 the average dropped to 4.8% from 5.0% in the second quarter, and for 2026 it fell to 4.8% from 4.9%.



The South African Reserve Bank (SARB) tries to keep inflation close to 4.5%, the midpoint of its target band of 3%-6%. In explaining previous decisions to keep rates unchanged, it said inflation expectations were still uncomfortably high.



Forecasts for a September rate cut were buttressed by July&#8217;s year-on-year inflation falling to within a whisker of the midpoint at 4.6%. August&#8217;s inflation print is scheduled for release on Sept. 18, the day before the SARB&#8217;s rate announcement.



At the last monetary policy meeting in July two of the six members of the SARB&#8217;s Monetary Policy Committee voted for a 25 basis point cut, while four preferred no change, the eventual decision.



One worry for the central bank in the latest inflation expectations survey is that the inflation forecast of households rose steeply, reaching its highest level this year at 6.9% from 6.4% in the second quarter.



The rise was driven by the respondents in the low-income category, suggesting the poorest South Africans may be more exposed to price pressures.



(Reporting by Kopano Gumbi; Editing by Alexander Winning, William Maclean)

Shoppers look for items as they shop at an outlet of retailer Checkers

South African inflation expectations fall again in Q3

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429.jpg" alt="" class="wp-image-519304" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller counts Kenya shilling notes inside the cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Sept 12 (Reuters) &#8211; The Kenyan shilling was flat on Thursday despite a slight pickup in foreign-currency demand, and traders said it was expected to remain in a tight range.



As of 0857 GMT, LSEG data showed the shilling at 128.50/129.50 to the dollar, the same as Wednesday&#8217;s closing level.



&#8220;We&#8217;re seeing some increased (dollar) demand from oils and corporates, but generally we&#8217;re stuck within a range. &#8230; It&#8217;s likely to stay that way for the next few days,&#8221; one trader said.



(Reporting by Hereward Holland; Editing by Alexander Winning)

LYEEWJTJKRPK3GJPCKWFP3EK7E

Kenyan shilling stable and seen staying that way, traders say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, Sept 12 (Reuters) &#8211; The Ugandan shilling was little-changed on Thursday, but was under a little pressure from an uptick in appetite for hard currency by firms in the manufacturing and energy sectors, traders said.



At 0840 GMT commercial banks quoted the shilling at 3,715/3,725, compared to Wednesday&#8217;s close of 3,713/3,723.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

GettyImages-924883576-1

Ugandan shilling little-changed, under pressure

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-820x547.jpg" alt="" class="wp-image-529724" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Mary Vilakazi, incoming chief executive officer of FirstRand Ltd., at the bank&#8217;s headquarters in Johannesburg, South Africa, on Thursday, Jan. 11, 2023. FirstRand is looking to purchase other African banks in countries where it operates as the continent&#8217;s biggest lender by market value seeks to expand. Photographer Leon Sadiki/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters) &#8211; South African lender FirstRand posted a 4% rise in annual profit on Thursday despite absorbing a 3 billion rand ($167 million) pre-tax accounting provision related to an investigation by Britain into the vehicle finance market.



Its normalised earnings rose to 38 billion rand in the year ended June 30 from 36.6 billion the previous year, the bank said.



Excluding the provision, normalised earnings grew by 10%, group CEO Mary Vilakazi said in a statement.



British lenders have been told by the Financial Conduct Authority to ensure they are adequately prepared to meet the potential costs of customer complaints arising from its review into the motor finance industry.



The regulator began looking into potential overcharging in the industry in January, amid rising tensions between thousands of consumers and lenders over commission arrangements.



In addition to the provision, 300 million rand of legal and professional fees were incurred in relation to the UK probe, the bank said.



($1 = 17.9160 rand)



(Reporting by Nqobile Dludla; editing by Jason Neely and Emelia Sithole-Matarise)

Africa’s Biggest Bank Seeks Acquisitions to Power Expansion Says Incoming CEO Mary Vilakazi

South African lender FirstRand’s profit rises despite UK motor loans charge

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="569" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-820x569.jpg" alt="" class="wp-image-529690" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-820x569.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-768x533.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-1536x1065.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman arrives to harvest blueberries at Talana farm in rural Chegutu district, Zimbabwe, September 2, 2024. REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwean farmers aim to capitalize on increasing global demand for blueberries, but self-funded growers like Willard Zireva cite a lack of finance and minimal government support as barriers.



Despite being one of the fastest growing blueberry producers globally, with production doubling to 7,000 metric tons last year due to a favourable climate, Zimbabwean farmers are struggling to secure financing for their operations.



Zimbabwe&#8217;s horticultural exports, driven in part by blueberries, exceed $100 million annually. The sector&#8217;s exports, which peaked at $140 million in 1999, were disrupted when former President Robert Mugabe began the seizure of white-owned farms to resettle landless Black citizens.



Despite the sector&#8217;s recent growth, banks remain wary of financing agriculture due to uncertain land tenure, making it challenging for Black farmers like Zireva to expand.



Blueberry farming in Zimbabwe is currently dominated by the few remaining local white farmers, many of whom are looking for foreign investment to expand operations.



Zimbabwe&#8217;s banks do not accept the 99-year leases handed by the government to resettled farmers as collateral for borrowing.



The banks also tend to be reluctant to lend to farmers because the state has in the past arbitrarily acquired farmland, including from some Black commercial farmers.



Zireva cultivates 12 hectares of blueberry crops at his Talana farm 100 km (62 miles) west of capital city Harare, which he bought freehold in the 1990s before the land seizures.



He said that he had to rely on personal savings to plant his first crop after a local bank denied him funding.



<h2 class="wp-block-heading" id="h-massive-growth-opportunity">&#8216;MASSIVE GROWTH OPPORTUNITY&#8217;</h2>



&#8220;If funding is available, there is a massive growth opportunity,&#8221; he told Reuters.



Growing a hectare of blueberries in Zimbabwe requires at least $100,000 to import plants, peat pots from Europe, and special shades for the crops.



Other costs include refrigerated packaging warehouses and water resources.



&#8220;We need interventions and interventions have to come from government. Nobody else,&#8221; said Zireva, referring to concessional funding for farmers.



The finance and agriculture ministries, as well as the Bankers Association of Zimbabwe (BAZ), did not immediately respond to requests for comment.



Zireva&#8217;s farm aims to export 120 metric tons of blueberries to the United Kingdom and East Asia this year, but he says the demand far exceeds their ability to supply.



His farm requires $1.2 million to double output, he added.



&#8220;We are hoping that we can get funding next year to put in eight hectares so that we get to 20 (hectares),&#8221; Zireva said.



Zimbabwe&#8217;s Horticultural Development Council (HDC) said the lack of long-term finance was a significant barrier to the sector&#8217;s plans to double blueberry hectarage to 1,500 hectares by 2030.



HDC CEO Linda Nielsen told Reuters that without funding &#8220;we will see growth in the blueberries sector coming off on the tonnage side. We really need to grow the hectarage and maintain our market share.&#8221;



(Reporting by Nyasha Chingono; Editing by Olivia Kumwenda-Mtambo, William Maclean)

A woman arrives to harvest blueberries at Talana farm in rural Chegutu district

Zimbabwe blueberry farmers chase booming demand but face funding woes

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



JOHANNESBURG, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was little changed in early trade on Thursday ahead of the release of local mining output figures and an inflation expectations survey.



At 0600 GMT the rand traded at 17.8925 against the dollar, not far from its previous close of 17.9050.



The rand has mainly tracked global markets this week, including closely watched U.S. inflation data and its implications for next week&#8217;s Federal Reserve meeting, but that could change on Thursday.



South Africa&#8217;s Bureau for Economic Research will release its third-quarter inflation expectations survey around 0800 GMT, showing how analysts, business people and trade union officials expect inflation to develop over the next three years.



Inflation expectations are an important data point for the central bank when it takes interest rate decisions. Its next decision is due to be announced on Sept. 19, with economists widely predicting the first rate cut in more than four years.



Statistics South Africa will publish July mining production numbers at about 0930 GMT.



Analysts polled by Reuters predict output will return to year-on-year growth after a decline in June, reflecting volatile conditions in Africa&#8217;s most industrialised economy.



South Africa&#8217;s benchmark 2030 government bond was relatively flat, with the yield at 8.995%.



(Reporting by Alexander Winning; Editing by David Goodman)

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

South African rand stable before mining data and inflation survey

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg" alt="" class="wp-image-529685" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



KAMPALA, Sept 12 (Reuters) &#8211; The start of commercial crude oil production in Uganda is expected to propel economic growth into double digits in the next financial year, the International Monetary Fund (IMF) said.



Uganda&#8217;s economy would race to 10.8% growth in the 2025/2026 fiscal year which starts in July, up from a projection of 6.2% in the previous period, the IMF said in a report published late on Wednesday.



&#8220;Growth is expected to strengthen, boosted by the start of oil production, which will make (a) lasting improvement (to) the fiscal and current account balances,&#8221; the IMF said in the report.



After nearly 20 years of delay, the east African country is finally expected to commence production and export of crude oil next year from fields in its west.



Commercial reserves were discovered in 2006 but a range of factors including disputes with oil firms over development strategy and lack of requisite infrastructure had delayed production.



At peak Uganda is seen pumping 240,000 barrels of oil per day from its reserves, which are estimated at 6.5 billion barrels.



The IMF said Uganda&#8217;s foreign exchange (FX) reserves had continued to decline, and urged intervention by the central bank including a &#8220;reduction in government imports, along with stepped up FX purchases and greater exchange rate flexibility.&#8221;



The country&#8217;s FX reserves fell to $3.2 billion in June, down from $3.7 billion in December 2023, because of the high cost of servicing debt, the government&#8217;s inability to secure cheap credit, and limited hard currency purchases, the IMF said.



(Reporting by Elias Biryabarema; Editing by Hereward Holland and Lincoln Feast.)

FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington

Crude oil production to thrust Uganda’s economic growth into double digits – IMF

<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, Sept 12 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



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



Africa&#8217;s top public health body the Africa Centres for Disease Control and Prevention (Africa CDC) briefs reporters on mpox outbreaks on the continent.



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



Asian shares bounced on Thursday, tracking a tech-driven rally on Wall Street, while the dollar held onto gains after U.S. core inflation surprised slightly on the upside and dashed hopes of a large rate cut by the Federal Reserve next week.



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



Oil prices rose during Asian trade on Thursday, spurred by concerns of Hurricane Francine impacting output in the U.S., the world&#8217;s biggest crude producer, though worries of lower demand capped gains.



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



The South African rand held on to gains against the dollar on Wednesday after U.S. inflation data reinforced expectations that the Federal Reserve will opt for a smaller 25 basis point rate cut at its policy meeting next week.



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



The Kenyan shilling was unchanged against the U.S. dollar on Wednesday, LSEG data showed, extending a recent period of stability that has lasted about a month.



<h2 class="wp-block-heading" id="h-united-nations-africa">UNITED NATIONS AFRICA</h2>



The United States supports creating two permanent United Nations Security Council seats for African states and one seat to be rotated among small island developing states, U.S. Ambassador to the U.N. Linda Thomas-Greenfield will announce on Thursday.



<h2 class="wp-block-heading" id="h-kenya-airport">KENYA AIRPORT</h2>



Workers at Kenya&#8217;s main international airport ended a day-long strike on Wednesday, a union official said, after they were assured by the government that a plan to lease the airport to an Indian company would only proceed with the union&#8217;s approval.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on Sept 12

<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, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;The following political and economic events, company announcements, equity and currency market moves may affect South African markets on Thursday.



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



July mining output figures



Q3 inflation expectations survey



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



President Ramaphosa answers questions in parliament



Democratic Alliance leader briefs reporters



<h2 class="wp-block-heading" id="h-companies">COMPANIES</h2>



FirstRand full-year results



Truworths full-year earnings



Sibanye Stillwater half-year results



Mr Price hosts capital markets day



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



The South African rand held onto gains against the dollar on Wednesday after U.S. inflation data reinforced expectations that the Federal Reserve will opt for a smaller 25 basis point rate cut at its policy meeting next week.



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



Asian shares bounced on Thursday, tracking a tech-driven rally on Wall Street, while the dollar was firm after U.S. core inflation surprised slightly on the upside and dashed hopes of a large rate cut by the Federal Reserve next week.



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



All three major U.S. stock indexes closed higher on Wednesday with a boost from the technology sector offsetting investor disappointment at an inflation report.



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



Gold prices edged higher on Thursday, with traders focusing on upcoming U.S. economic data that may offer further insights into an expected reduction in the Federal Reserve&#8217;s interest rate next week.&nbsp;GOL/



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



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



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



&#8211; Job cuts send SA platinum supply back to pre-COVID levels



&#8211; Tax hit deters some two-pot withdrawals



(Compiled by Alexander Winning)

South African Markets – Factors to watch on Sept 12

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-820x548.jpg" alt="" class="wp-image-529650" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. Ambassador to the United Nations Linda Thomas-Greenfield attends a United Nations Security Council meeting about the Israel-Hamas conflict in Gaza, at the U.N. headquarters in New York City, U.S., September 4, 2024. REUTERS/David &#8216;Dee&#8217; Delgado/File Photo</figcaption></figure>



UNITED NATIONS, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;The United States supports creating two permanent United Nations Security Council seats for African states and one seat to be rotated among small island developing states, U.S. Ambassador to the U.N. Linda Thomas-Greenfield will announce on Thursday.



The move comes as the U.S. seeks to repair ties with Africa, where many are unhappy about Washington&#8217;s support for Israel&#8217;s war in Gaza, and deepen relations with Pacific Islands nations important to countering Chinese influence in the region.



Thomas-Greenfield told Reuters she hopes the announcement will &#8220;move this agenda forward in a way that we can achieve Security Council reform at some point in the future,&#8221; describing it as part of U.S. President Joe Biden&#8217;s legacy.



The push for two permanent African seats and a rotating seat for small island developing states is in addition to Washington&#8217;s long-held support for India, Japan and Germany to also get permanent seats on the council.



Developing nations have long demanded permanent seats on the Security Council, the most powerful body in the United Nations. But years of talks on reform have proved fruitless and it is unclear whether U.S. support could fuel action.



Ahead of making the announcement at the Council on Foreign Relations in New York on Thursday, Thomas-Greenfield clarified to Reuters that Washington does not support expanding veto power beyond the five countries that hold it.



The Security Council is charged with maintaining international peace and security and has the power to impose sanctions and arms embargos and authorize the use of force.



When the U.N. was founded in 1945, the Security Council had 11 members. This increased in 1965 to 15 members, made up of 10 elected states serving two-year terms and five permanent veto-wielding nations: Russia, China, France, the U.S. and Britain.



<h2 class="wp-block-heading" id="h-legitimacy-problem">LEGITIMACY PROBLEM</h2>



U.N. Secretary-General Antonio Guterres backs Security Council reform.



&#8220;You have a Security Council that corresponds exactly to the situation after the Second World War &#8230; that has a problem of legitimacy, and that has a problem of effectiveness, and it needs to be reformed,&#8221; Guterres told Reuters on Wednesday.



Any changes to the Security Council membership is done by amending the founding U.N. Charter. This needs the approval and ratification by two-thirds of the General Assembly, including the Security Council&#8217;s current five veto powers.



The 193-member U.N. General Assembly has annually discussed reform of the Security Council for more than a decade. But momentum has grown in recent years as geopolitical rivalries have deadlocked the council on several issues, particularly after permanent veto-wielding member Russia invaded Ukraine.



&#8220;Much of the conversation around Security Council reform has been just that: a conversation,&#8221; Thomas-Greenfield will say on Thursday, according to prepared remarks reviewed by Reuters of her announcement that Washington supports moving to negotiations on a draft text to amend the U.N. Charter to expand the council.



Thomas-Greenfield told Reuters she could not say how long it might take to get the General Assembly to vote on such a resolution.



Each year the General Assembly elects five new members from different geographical groups for two-year terms on the Security Council. Africa currently has three seats rotated among states.



&#8220;The problem is, these non-permanent seats don&#8217;t enable African countries to deliver the full benefit of their knowledge and voices to the work of the council &#8230; to consistently lead on the challenges that affect all of us &#8211; and disproportionately affect Africans,&#8221; Thomas-Greenfield will say.



She will also say that small island developing states deserve a rotating elected seat because they offer &#8220;critical insights on a range of international peace and security issues: including, notably, the impact of climate change.&#8221;



(Reporting by Michelle Nichols; Editing by Don Durfee and Tom Hogue)

FILE PHOTO: UN Security Council meeting in New York

US supports two permanent UN Security Council seats for Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NFMNXYOFQBOCDPJ4CHX7OU26YQ-820x547.jpg" alt="" class="wp-image-529427" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NFMNXYOFQBOCDPJ4CHX7OU26YQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NFMNXYOFQBOCDPJ4CHX7OU26YQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NFMNXYOFQBOCDPJ4CHX7OU26YQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NFMNXYOFQBOCDPJ4CHX7OU26YQ-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NFMNXYOFQBOCDPJ4CHX7OU26YQ.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda&#8217;s Minister of Finance Matia Kasaija displays a briefcase carrying National Budget 2024/25 before presenting it to the nation during a budget speech at Kololo airstrip in Kampala, Uganda, June 13, 2024. REUTERS/Michael Muhati/File Photo</figcaption></figure>



KAMPALA, Sept 11 (Reuters)&nbsp;&#8211;&nbsp;Uganda plans to issue new oil and gas exploration licences in the 2025/2026 (July-June) fiscal year to help boost investments in the sector and overall economic growth, the finance minister said on Wednesday.



The east African country&#8217;s last licensing round, launched in 2019 concluded early last year. It handed out the last two of five blocks on offer.



&#8220;Accelerating investments in oil and gas will be instrumental in contributing to faster growth of Uganda next financial year,&#8221; Matia Kasaija said in a speech laying out priorities for the country in the 2025/2026 financial year.



To achieve higher investments in the petroleum sector and overall growth, the government would issue additional exploration licences to increase production volumes, he said.



Uganda plans to start commercial production of oil next year from existing fields in the Albertine Graben basin in the country&#8217;s west.



The government says only about 40% of the Graben has been explored so far, where an estimated 6.5 billion barrels of oil have been found.



France&#8217;s TotalEnergies, with 56.7% equity is majority owner of the fields and its other partners include China&#8217;s CNOOC 0883.HK and state-run Uganda National Oil Company UNOC.



Kasaija also said Uganda&#8217;s debt load remained &#8220;sustainable,&#8221; despite credit downgrades by ratings agencies. He said the country was committed maintaining its debt to GDP ratio below 50%.



In late August, Fitch cut Uganda&#8217;s rating to B from B+, citing its &#8220;reduced access to concessional financing, high domestic borrowing costs and a decline in foreign-exchange reserves.&#8221;



Fitch&#8217;s move followed Moody&#8217;s that also downgraded Uganda&#8217;s rating to B3 from B2 in May, citing Uganda&#8217;s &#8220;diminished debt affordability.&#8221;



(Reporting by Elias Biryabarema; Editing by George Obulutsa; Editing by Ros Russell)

NFMNXYOFQBOCDPJ4CHX7OU26YQ

Uganda say it will offer new oil exploration licences next fiscal year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg" alt="" class="wp-image-506011" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller serves a client with Kenya shilling notes at the cashier&#8217;s booth of a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Sept 11 (Reuters) &#8211; The Kenyan shilling was unchanged against the U.S. dollar on Wednesday, LSEG data showed, extending a recent period of stability that has lasted about a month.



At 1040 GMT the shilling was quoted at 128.50/129.50 to the dollar, the same as Tuesday&#8217;s closing level.



The currency rallied strongly in the first half of 2024 as concerns eased that the East African country would default on a $2 billion Eurobond that matured in June, but it lost momentum from April onwards.



(Reporting by Hereward Holland; Editing by Alexander Winning)

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Kenyan shilling stable and seen staying that way, traders say

Ugandan shilling little-changed, under pressure

South African lender FirstRand’s profit rises despite UK motor loans charge

Zimbabwe blueberry farmers chase booming demand but face funding woes

South African rand stable before mining data and inflation survey

Crude oil production to thrust Uganda’s economic growth into double digits – IMF

African Markets – Factors to watch on Sept 12

South African Markets – Factors to watch on Sept 12

US supports two permanent UN Security Council seats for Africa

Uganda say it will offer new oil exploration licences next fiscal year

Kenyan shilling unchanged against dollar, LSEG data shows

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Reuters

Nigerian communities seek $310 mln from Shell, want asset sale stopped

South African Markets – Factors to watch on Sept 13

African Markets – Factors to watch on Sept 13

Amazon is in South Africa for the long run, says marketplace head

Kenyan and Zambian currencies seen stable, Nigeria’s could weaken

South African inflation expectations fall again in Q3

Kenyan shilling stable and seen staying that way, traders say

Ugandan shilling little-changed, under pressure

South African lender FirstRand’s profit rises despite UK motor loans charge

Zimbabwe blueberry farmers chase booming demand but face funding woes

South African rand stable before mining data and inflation survey

Crude oil production to thrust Uganda’s economic growth into double digits – IMF

African Markets – Factors to watch on Sept 12

South African Markets – Factors to watch on Sept 12

US supports two permanent UN Security Council seats for Africa

Uganda say it will offer new oil exploration licences next fiscal year

Kenyan shilling unchanged against dollar, LSEG data shows

News Tips

Advertise With Us

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