<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/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-820x429.jpg" alt="" class="wp-image-527123" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A small toy figure and gold imitation are seen in front of the Harmony logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



Sept 5 (Reuters) &#8211; South Africa&#8217;s Harmony Gold increased its dividend on Thursday as its annual profit more than doubled from the prior year, boosted by higher gold production, better grades and record prices.



Harmony&#8217;s headline earnings per share &#8211; a profit measure &#8211; jumped to 18.52 rand ($1.04) in the year ended June 30, up from 8 rand in the previous year.



The top gold producer in South Africa by volume declared a final dividend of 0.94 rand per share, up from 0.75 rand.



Harmony&#8217;s gold production rose 6% to 1.56 million ounces, surpassing its target of 1.55 million ounces. Its average gold price increased 16% as bullion prices surged to record highs.



Higher gold prices and a 6% improvement in underground recovered grades drove Harmony&#8217;s operating free cash flows to a record 12.7 billion rand ($710.51 million).



($1 = 17.8740 rand)



(Reporting by Nelson Banya; Editing by Christian Schmollinger and Subhranshu Sahu)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU

S.Africa’s Harmony Gold boosts dividend after profit more than doubles

<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.jpg" alt="" class="wp-image-524583" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, 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>



Q2 current account data



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



South Africa&#8217;s Harmony Gold increased its dividend on Thursday as it reported a 132% jump in annual profit, boosted by higher gold production, better grades and record prices.



South African insurer Sanlam  will report its half-year results.



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



The South African rand strengthened against a weaker dollar on Wednesday, after U.S. jobs data showed a softening labour market.



On the stock market, the Top-40 index closed 0.37% lower.



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



Asian share markets tried to regain their footing on Thursday after a steep sell-off, while a rally in Treasuries dented the dollar and lifted the yen as U.S. economic worries raised the odds of the Federal Reserve going big on rate cuts.



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



U.S. stocks finished slightly lower in choppy trading on Wednesday following labor market data and comments from a Federal Reserve official that bolstered the case for an interest rate cut.



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



Gold was little changed on Thursday as investors kept to the sidelines ahead of U.S. payrolls data that could provide more clues on the size of an expected rate cut this month.



&#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; Rich South Africans flock to Portugal for stability



&#8211; IMF adopts a more upbeat tone on SA



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Sept 5

<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 5 (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-global-markets">GLOBAL MARKETS</h2>



Asian share markets tried to regain their footing on Thursday after a steep sell-off, while a rally in Treasuries dented the dollar and lifted the yen as U.S. economic worries raised the odds of the Federal Reserve going big on rate cuts.



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



Oil prices edged up after plunging to multi-month lows previously as major producers may delay an output increase planned for next month and U.S. inventories fell, though the gains were limited by persistent demand concerns.



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



The South African rand strengthened against a weaker dollar on Wednesday, after U.S. jobs data showed a softening labour market.



<h2 class="wp-block-heading" id="h-china-africa-debt">CHINA AFRICA DEBT</h2>



A China-Africa summit in Beijing this week takes place as a continent slowly emerging from a series of defaults seeks to define its future cooperation with the Asian nation that partly fuelled its debt binge and now faces its own economic headwinds.



<h2 class="wp-block-heading" id="h-china-africa-financing">CHINA AFRICA FINANCING</h2>



Chinese President Xi Jinping on Thursday pledged $51 billion in fresh financing to Africa, support for 30 infrastructure projects across the resource-rich continent, and promised to create at least 1 million jobs.



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



Kenya&#8217;s shilling firmed slightly against the dollar on Wednesday, LSEG data showed.



<h2 class="wp-block-heading" id="h-kenya-private-sector-activity">KENYA PRIVATE SECTOR ACTIVITY</h2>



Kenya&#8217;s private sector activity picked up in August as firms recovered from disruption caused by anti-government protests the previous month, a survey showed on Wednesday.



<h2 class="wp-block-heading" id="h-mtn-cameroon">MTN CAMEROON</h2>



The Cameroon subsidiary of South African mobile operator MTN Group said late on Tuesday it won&#8217;t exit the country despite the seizure of its bank accounts since 2022 under a Cameroon court order.



<h2 class="wp-block-heading" id="h-mauritius-china-currency-swap">MAURITIUS CHINA CURRENCY SWAP</h2>



Mauritius and China&#8217;s central banks have signed a three-year currency swap agreement worth 13 billion Mauritian rupees or 2 billion Chinese yuan (about $281 million), the Bank of Mauritius said on Wednesday.



(Compiled by Nairobi Newsroom)

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Sept 5

<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/CXVAOPAQTVLKREUIGTWRSKEOGU-820x547.jpg" alt="" class="wp-image-527088" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s President Xi Jinping and his wife Peng Liyuan pose with Secretary-General of the United Nations Antonio Guterres for a photography during a reception at the Forum on China-Africa Cooperation (FOCAC) in the Great Hall of the People in Beijing, China, 04 September 2024. ANDRES MARTINEZ CASARES/Pool via REUTERS</figcaption></figure>



BEIJING, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;African countries&#8217; inadequate access to debt relief and scarce resources is a recipe for social unrest, United Nations Secretary-General Antonio Guterres said on Thursday, proposing fresh reforms to the international financial architecture.



A growing debt crisis across the 1 billion-strong continent has seen a conflagration of civil unrest in recent months, after protests in Kenya, where police clashed with demonstrators rallying against proposed tax hikes, inspired people to take to the streets in Nigeria and Uganda over the cost of living.



African nations have been seeking to restructure their debts through a rework architecture designed by the G20 called the &#8216;Common Framework,&#8217; but the scheme did not as expected expedite talks between a myriad of leaders from Chinese state-owned banks to London-based asset managers and New York banks.



Zambia in June became the first country to successfully restructure its debt through the scheme, more than three years after it defaulted on its loans.



Guterres told a major China-Africa cooperation summit in Beijing that Africa&#8217;s debt &#8220;situation is unsustainable and a recipe for social unrest&#8221;.



&#8220;They have no access to effective debt relief, scarce resources, and clearly insufficient concessional funding to respond to the basic needs of their population,&#8221; he said.



Guterres proposed &#8220;deep reforms to the outdated, ineffective and unfair international financial architecture&#8221; and further stimulus &#8220;to provide developing countries with the liquidity they need while seeking medium- and long-term solutions.&#8221;



Beijing, the world&#8217;s biggest bilateral lender, is hosting 50 African nations for the ninth Forum on China-Africa Cooperation Summit this week, at which China&#8217;s President Xi Jinping pledged 360 billion yuan ($50.70 billion) in fresh financing to the continent over the next three years.



China approved loans worth $4.61 billion to Africa last year, the first annual increase since 2016.



Guterres praised China&#8217;s initiatives across Africa and said they could drive a &#8220;renewable energy revolution&#8221; and &#8220;be a catalyst for key transitions on food systems and digital connectivity.&#8221;



Angola&#8217;s finance minister on Tuesday told Reuters that Luanda was considering proposals from Beijing, Brussels and elsewhere, with a view to quickly securing funds to help bring down inflation and do more through public-private partnerships.



($1 = 7.1005 Chinese yuan renminbi)



(Reporting by Joe Cash; Editing by Jacqueline Wong and Michael Perry)

Forum on China-Africa Cooperation in Beijing

UN chief warns Africa’s inadequate access to debt relief is recipe for social unrest

<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/BZN7UA65UJPHFLAB6CZSRO237U-820x547.jpg" alt="" class="wp-image-527085" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s President Xi Jinping delivers a keynote speech at the opening ceremony of the ninth Forum on China-Africa Cooperation (FOCAC) Summit, at the Great Hall of the People in Beijing, China September 5, 2024. REUTERS/Florence Lo</figcaption></figure>



BEIJING, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;President Xi Jinping pledged on Thursday to step up China&#8217;s support to the world&#8217;s fastest-growing continent with funding of nearly $51 billion, backing for more infrastructure initiatives and a promise to create at least 1 million jobs.



The world&#8217;s biggest two-way lender, Beijing showed a desire to move away from funding big-ticket infrastructure and focus instead on selling to developing economies the advanced and green technologies in which Chinese firms have invested heavily.



Still, Xi told delegates from more than 50 African nations that the world&#8217;s second-largest economy would carry out 30 infrastructure projects across the resource-rich continent, and offer 360 billion yuan ($50.70 billion) in financial assistance.



&#8220;China is ready to deepen cooperation with Africa in industry, agriculture, infrastructure, trade and investment,&#8221; Xi told delegates at a major China-Africa summit in Beijing.



He called for &#8220;a China-Africa network featuring land-sea links and co-ordinated development,&#8221; as he told Chinese contractors to return to the 1-billion-strong continent, after the lifting of COVID-19 curbs that disrupted its schemes.



Last year, China approved loans worth $4.61 billion to Africa, in the first annual increase since 2016.



Xi said 210 billion yuan of the financing pledge would be disbursed through credit lines and at least 70 billion in fresh investment by Chinese companies, with smaller amounts provided through military aid and other projects.



The Forum on China-Africa Cooperation Summit, held this year in the Chinese capital, chalks out a three-year programme for China and every African state bar Eswatini, which retains ties to Taiwan.



Besides 30 infrastructure connectivity projects, Xi added, &#8220;China is ready to launch 30 clean energy projects in Africa,&#8221; offering to co-operate on nuclear technology and tackle a power deficit that has delayed industrialisation efforts.



But the Chinese leader did not reiterate his pledge at the 2021 forum in Dakar for the Asian giant to buy $300 billion worth of African goods, pledging only to unilaterally expand market access.



Analysts say Beijing&#8217;s phytosanitary rules for market access are too strict, making China unable to meet that promise.



&#8220;We are ready to assist in the development of the African Continental Free Trade Area, and deepen logistics and financial co-operation for the benefit of trans-regional development in Africa,&#8221; Xi added.



($1=7.0976 Chinese yuan renminbi)



(Reporting by Laurie Chen; Writing by Joe Cash; Editing by Jacqueline Wong and Michael Perry)

China offers Africa $51 bln in fresh funding, promises a million jobs

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



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Wednesday that South Africa needed to pursue ambitious fiscal consolidation to restore the sustainability of its public finances.



&#8220;Durable expenditure-based consolidation of at least 3 percent of GDP over the next three years is required to place debt on a sustained downward path, while protecting vulnerable groups,&#8221; the IMF said in a statement.



The Fund said South Africa&#8217;s new government should build on a pre-existing reform agenda while increasing its ambition and accelerating implementation.



&#8220;The new government should use the opportunity of a new mandate to implement bold reforms to address long-standing challenges and achieve the economy&#8217;s full potential,&#8221; it said.



South Africa&#8217;s African National Congress has formed a broad coalition with several parties including the market-friendly Democratic Alliance after losing its parliamentary majority for the first time in 30 years in a May election.



(Reporting by Bhargav Acharya; Editing by Alexander Winning)

IMF logo is seen outside the headquarters building in Washington

IMF says South Africa needs ambitious fiscal consolidation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-820x574.jpg" alt="" class="wp-image-526836" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-1536x1075.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Shoppers walk towards a Woolworths store in Cape Town, South Africa, February 26, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;Headwinds including product availability and higher living costs have pushed back when Woolworths&#8217; fashion business will reach its profit margin target, the retailer&#8217;s CEO said on Wednesday.



Woolworths, which reported a fall in annual profit before tax of 34.6% to 3.5 billion rand, said in the year to June 30, sales and profit of its South African fashion, beauty and home business was hit by a weak macro-economic environment, poor product availability and competition from online rivals.



The South African upmarket fashion and food retailer had set an adjusted earnings before interest, tax, depreciation and amortisation (EBIT) margin target of more than 14% for the fashion, beauty and home business over the medium-term.



This was due to be achieved by its financial year 2026.



While the margin goal has not changed, the timing has.



&#8220;The various headwinds we&#8217;ve experienced this past year have impacted the timing of when we expect to reach our target,&#8221; Woolworths&#8217; CEO Roy Bagattini told investors.



&#8220;Unless we see a rapid rebound in macros, it&#8217;s unlikely we reach it this year or even next,&#8221; he said, adding he was &#8220;pretty confident&#8221; of hitting its targets by financial year 2027.



The fashion business was also hit by the late onset of winter, with turnover and concession sales down by 0.4% on a comparable basis, while adjusted operating profit decreased by 9.9% to 1.8 billion rand ($101 million).



This resulted in an adjusted EBIT margin of 12%, a drop of 1.2 percentage points.



Nevertheless, Bagattini said he was seeing continued improvements in product resonance in &#8220;must win&#8221; product categories, as part of the fashion unit&#8217;s turnaround plan.



Woolworths&#8217; EBIT margin target for its Country Road Group, which operates in Australia and New Zealand, was revised downward to over 10% from greater than 12% as it now absorbs a lot more costs since the sale of department chain David Jones, which it shared services infrastructure with, Bagattini said.



The group is investing in new format stores to drive growth, with a standalone beauty store and beauty manufacturing facility to drive research, development and innovation.



($1 = 17.9074 rand)



(Reporting by Nqobile Dludla; Editing by Tom Hogue, Varun H K and Alexander Smith)

Woolworths in Cape Town

Woolworths warns it may not hit fashion profit margin target on time

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="490" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS.jpg" alt="" class="wp-image-526833" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS-300x184.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS-147x90.jpg 147w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS-768x470.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Customers walk beneath a company logo for the South African supermarket chain SPAR Group as they arrive at a supermarket in Johannesburg, South Africa, June 7, 2022. Picture taken June 7, 2022. REUTERS/Siphiwe Sibeko/File Photo </figcaption></figure>



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s second-biggest grocery group SPAR&nbsp;SPPJ.J&nbsp;has sold its loss-making business in Poland to local Polish retailer Specjal for 185 million rand ($10 million), it said on Wednesday.



SPAR will be required to recapitalise the business at an estimated cost of 2.7 billion rand, the majority of which will be achieved by it settling the business&#8217;s funding debt, it said.



Shares in the group were down 6.79% at 117 rand by 1220 GMT.



SPAR, which has been reviewing its European operations, said the deal provides certainty for investors and removes the loss-making business from its balance sheet.



&#8220;For SPAR Poland to become earnings generative and value accretive to the group, significant time and investment would be required,&#8221; it said.



SPAR&#8217;s Polish assets comprise approximately 200 retail stores, three distribution centres and one production facility.



&#8220;This also gives clarity to our dedicated employees in Poland, who now have the potential to expand the business under the ownership of Specjal, a company with the requisite resources, scale, and capacity to take these assets to the next level,&#8221; SPAR Group CEO Angelo Swartz said.



SPAR operates in 11 countries, but its core South African business accounts for about 60% of group sales.



($1 = 17.9059 rand)



(Reporting by Sfundo Parakozov; Editing by Jan Harvey)

2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS

South Africa’s SPAR sells Polish business to Specjal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-820x547.jpg" alt="" class="wp-image-526802" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Drone view of Durban harbour, one of South Africa&#8217;s busiest ports in Durban, South Africa January 31, 2024. REUTERS/Shiraaz Mohamed/File Photo</figcaption></figure>



Sept 4 (Reuters)&nbsp;&#8211;&nbsp;South African business confidence rose in the third quarter, helped by improving optimism about the business climate after the formation of a coalition government and stable electricity supply, a survey showed on Wednesday.



The business confidence index rose to 38 points in the third quarter from 35 points in the prior quarter, according to the survey by the Rand Merchant Bank (RMB) and compiled by the Bureau for Economic Research.



&#8220;Fortunately, the widely anticipated interest rate cut in South Africa later this month, on the back of lower consumer inflation and a boost from the introduction of the two-pot retirement system should spur domestic demand through the remainder of the year,&#8221; Isaah Mhlanga, chief economist at RMB said in a statement.



The South African Reserve Bank is expected to start cutting interest rates from this month for the first time in four years.



The African National Congress lost its parliamentary majority for the first time in 30 years in May, and later formed a broad coalition with several parties including the market-friendly Democratic Alliance.



Additionally, state-owned power utility Eskom managed to keep the lights on for over five months without scheduled blackouts in the country where power cuts have hampered economic growth for over a decade.



However, businesses activity was still constrained especially from weak demand, but the survey indicated conditions are expected to improve in the next quarter.



Retail confidence improved to 45 points from 39 in the previous quarter helped by improvement in durable and semi-durable traders&#8217; sales volumes.



Manufacturing sector confidence remained stable 28 points as a drop in production due to declining exports and domestic demand was offset by optimism at new vehicle dealers surging to a one-year high.



Wholesale trade was the most optimistic sector surveyed, with over half of respondents satisfied with prevailing business conditions.



(Reporting by Radhika Anilkumar in Bengaluru; Editing by Varun H K)

FILE PHOTO: Durban harbour, one of South Africa’s busiest ports

South African business confidence gets boost from coalition government, survey shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-820x551.jpg" alt="" class="wp-image-526756" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-1536x1032.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows a toll station on the Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, in Nairobi, Kenya May 8, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector activity picked up in August as firms recovered from disruption caused by anti-government protests the previous month, a survey showed on Wednesday.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index rose to 50.6 in August from 43.1 a month earlier. Readings below 50.0 signal a contraction in activity, while those above 50.0 indicate expansion.



&#8220;The Stanbic Bank Kenya PMI indicated a mild recovery in business conditions during August as the impact of protests faded, allowing firms to broadly resume normal operations,&#8221; Stanbic Bank Kenya said in comments accompanying the survey.



The July figure was a drop from 47.2 in June and reflected the effects of protests against the government during both months which disrupted some business activity.



In June, President William Ruto discarded the government&#8217;s finance bill for the year, which contained tax hikes worth 346 billion shillings ($2.69 billion), following deadly street protests.



&#8220;Output increased across three of the five broad sectors covered by the survey, with renewed growth in services, wholesale &amp; retail and construction,&#8221; Stanbic Bank Kenya said.



&#8220;By contrast, there were declines in activity across manufacturing and agriculture.&#8221;



The survey painted a gloomy outlook, with most of those polled expressing pessimism over economic prospects for the next 12 months, and only 5% of companies saying they expected growth.



&#8220;Business expectations worsened in August, implying firms as less hopeful about output over the next 12 months,&#8221; Christopher Legilisho, an economist at Stanbic Bank, said.



(Reporting by George Obulutsa; Editing by Christina Fincher)

FILE PHOTO: Shadow of Kenya’s borrowing binge to hang over next president

Kenya private sector activity picks up in August, PMI shows

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



NAIROBI, Sept 4 (Reuters) &#8211; Kenya&#8217;s shilling firmed slightly against the dollar on Wednesday, LSEG data showed.



At 0720 GMT, the shilling traded at 128.25/129.25 to the U.S. currency, compared with Tuesday&#8217;s closing rate of 128.50/129.50.



Traders had said earlier this week that the shilling was expected to gain ground, helped by dollar inflows from the agriculture and tourism sectors.



(Reporting by George Obulutsa; Editing by Alexander Winning)

RLVCCF47LVIWPJR4O2PPITYMVI

Kenyan shilling gains ground against the dollar – LSEG data

<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 4 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was weaker in early trade on Wednesday, as markets awaited U.S. jobs data for clues on the interest rate path in the world&#8217;s biggest economy.



At 0626 GMT, the rand traded at 18.0025 against the dollar, about 0.17% weaker than its previous close.



&#8220;The USD-ZAR now looks to be targeting the 18.0000 handle once more. Whether it sustains a break above that level will depend on the market reaction to the U.S. data scheduled for release in the upcoming session,&#8221; ETM Analytics said in a research note.



U.S. job openings data is expected on Wednesday and could hint at the Federal Reserve&#8217;s interest rate path for this year.



Like other risk-sensitive currencies, the rand often takes cues from global drivers in addition to local factors.



Local investors will look to the S&amp;P Global South Africa Purchasing Managers&#8217; Index for August on Wednesday for hints on the health of Africa&#8217;s most industrialised economy.



Data on Tuesday showed South Africa&#8217;s second-quarter economic growth was slightly weaker than expected.



South Africa&#8217;s benchmark 2030 government bond was slightly stronger in early deals, as the yield slipped 1.5 basis points to 9.2%.



(Reporting by Tannur Anders; Editing by Andrew Heavens)

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

South African rand softens ahead of US jobs data

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



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, company announcement, and equity and currency market moves may affect South African markets on Wednesday.



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



S&amp;P Global Whole Economy PMI for August



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



South African upmarket fashion and food retailer Woolworths reported a 16.8% decline in full-year headline earnings on weak sales, as higher living costs continue to weigh on discretionary spend.



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



The South African rand weakened on Tuesday after data showed the country&#8217;s second-quarter economic growth was slightly weaker than expected.



On the stock market, the Top-40 index closed 1.6% lower.



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



Asian shares and global stock futures tumbled on Wednesday, led by a heavy decline in technology names and as worries about the global growth outlook drove investors out of risky assets, while oil prices hit multi-month lows. 



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



U.S. stocks slumped on Tuesday, at the start of one of the market&#8217;s historically worst months, ahead of data likely to influence how much the Federal Reserve will lower interest rates. 



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



Gold prices held steady on Wednesday as investors braced for a monthly U.S. payrolls report that could influence how swiftly and deeply the Federal Reserve cuts interest rates this year.



&#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; ‘Worst is probably behind us’ after modest lift in GDP



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



&#8211; MPs stunned as Post Office warns of liquidation within a month without R4bn bailout



(Compiled by Tannur Anders)

South African Markets – Factors to watch on Sept 4

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



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



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



Asian shares and global stock futures tumbled on Wednesday, led by a heavy decline in technology names and as worries about the global growth outlook drove investors out of risky assets, while oil prices hit multi-month lows.



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



Oil prices fell on Wednesday, extending a plunge of more than 4% the previous day, on expectations that a political dispute halting Libyan exports could be resolved and concerns over lower global demand growth.



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



The South African rand weakened on Tuesday after data showed the country&#8217;s second-quarter economic growth was slightly weaker than expected.



<h2 class="wp-block-heading" id="h-nigeria-china-investments">NIGERIA CHINA INVESTMENTS</h2>



China vowed to encourage its more &#8220;powerful&#8221; companies to invest in Nigeria, which in turn said it was open to Chinese companies building factories and developing its energy and mineral resources, after the two nations&#8217; leaders met in Beijing.



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



Kenya&#8217;s shilling was unchanged on Tuesday, and traders said it was expected to strengthen, helped by tea export dollar inflows.



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



Uganda&#8217;s main opposition leader Bobi Wine, who has emerged as the most formidable opponent of veteran President Yoweri Museveni, was shot in the leg by security agents in a northern suburb of the capital Kampala on Tuesday, his party said.



<h2 class="wp-block-heading" id="h-ethiopia-airline">ETHIOPIA AIRLINE</h2>



Ethiopian Airlines said on Tuesday it had suspended flights to neighbouring Eritrea because its bank account there was frozen.



<h2 class="wp-block-heading" id="h-angola-china-financing">ANGOLA CHINA FINANCING</h2>



China needs to step up its financing for Angola if the African nation is to absorb more Chinese-made goods from solar panels to electric cars, Angola&#8217;s finance minister said on Tuesday, as the former OPEC member considers vying bids from Beijing and Europe.



(Compiled by Nairobi Newsroom)

African Markets – Factors to watch on Sept 4

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-820x550.jpg" alt="" class="wp-image-526731" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-1536x1030.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s President Xi Jinping attends Shanghai Cooperation Organization (SCO) summit in Astana, Kazakhstan July 4, 2024. REUTERS/Turar Kazangapov/File Photo</figcaption></figure>



BEIJING, Sept 4 (Reuters) &#8211; China&#8217;s President Xi Jinping will open the ninth Forum on China-Africa Cooperation Summit on Thursday, where he is expected to urge African leaders gathered in Beijing to absorb more Chinese goods in exchange for pledges of loans and investment.



The three-yearly forum officially kicks off today with a welcome dinner for the 50 African nations in attendance and will close on Friday, after negotiations over cooperation documents setting the course of China-Africa relations up until 2027.



China approved loans worth $4.61 billion to Africa last year, the first annual increase since 2016.



<h2 class="wp-block-heading" id="h-what-is-china-s-pitch">WHAT IS CHINA&#8217;S PITCH?</h2>



The world&#8217;s biggest bilateral lender wants to slim down its investment portfolio and re-align its relations with developing economies around Xi&#8217;s new mantra of &#8220;small and beautiful projects,&#8221; instead of big-ticket infrastructure.



Infrastructure appeared only once in Xi&#8217;s address to the last summit in Dakar in 2021, where he pledged to support 10 projects to improve the interconnectivity of African states.



On Thursday, analysts anticipate the Chinese leader to talk up the competitiveness of its green technologies, which the U.S. and Europe maintain it has overcapacity in, and Beijing needs to find buyers for, as well as technology transfer schemes and more people-to-people exchanges.



China could also pledge to increase the amount availabe to African central banks and businesses through credit lines, after committing $10 billion dollars at the last summit, in addition to support in developing digital finance and e-payment systems.



<h2 class="wp-block-heading" id="h-what-do-the-african-delegates-want">WHAT DO THE AFRICAN DELEGATES WANT?</h2>



African leaders will be looking for quicker financing solutions to a growing debt crisis across the continent in the Beijing Action Plan of the Forum on China-Africa Cooperation for 2025-2027, as well as fresh job-creating investment pledges and assurances projects proposed in Dakar will be completed.



South Africa&#8217;s president on Monday told Xi he wanted to narrow his country&#8217;s trade deficit with China, an aspiration almost all African states share, which leaders will be hoping Beijing responds to with better terms for their agricultural and natural resources exports.



Delegates will also be looking for assurance that a pledge from the 2021 summit that China would buy $300 billion worth of African goods will be met.



Analysts say Beijing&#8217;s phytosanitary market access barriers are too strict, preventing African food exporters from selling into the 1.4 billion strong consumer market.



Over the course of the week, African leaders have also been meeting Chinese firms to encourage them to set up manufacturing hubs in their countries, to help move their industrial sectors up the value chain.



<h2 class="wp-block-heading" id="h-what-happens-in-beijing">WHAT HAPPENS IN BEIJING?</h2>



On Tuesday, China&#8217;s foreign and commerce ministers met with delegates at Beijing&#8217;s Diaoyutai State Guesthouse to begin discussions over two documents: the action plan for 2024-2027 and a report on the implementations of the last summit in Dakar.



The two documents will be finalised and signed off by all delegates by the end of the summit.



African and Chinese negotiating teams have been meeting at least twice a year since the last forum, but the in-person meeting presents presidents with a chance to personally involve themselves in the negotiations.



A procession of presidents has passed through Beijing&#8217;s Great Hall of the People in the days leading up to the summit, with Xi having already met more than 20 heads of state, according to Chinese state media.



This year&#8217;s forum is the first in-person summit since COVID, with the Dakar meeting taking place largely online, and Chinese and African leaders alike are using the gathering to hold various bilateral meetings.



(Reporting by Joe Cash; Editing by Michael Perry)

Shanghai Cooperation Organization summit held in Kazakh capital Astana

What to expect from the Forum on China-Africa Cooperation Summit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="505" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-820x505.jpg" alt="" class="wp-image-526728" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-1536x945.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The Hillbrow Tower, an iconic tower used to identify Johannesburg&#8217;s skyline, is seen as the sun sets, in Johannesburg, South Africa, October 18, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity rose in August as firms received higher volumes of new orders for the first time since April 2023, a survey showed on Wednesday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index rose to 50.5 in August from 49.3 in July, the first time it has been above the 50 point mark &#8211; which separates growth from contraction &#8211; in three months.



&#8220;South African businesses saw demand growth emerge in August, as customers increased their spending on the back of falling CPI inflation figures and a general optimism that economic conditions are stabilising,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



South Africa&#8217;s inflation fell to a more than three-year low of 4.6% year on year in July from 5.1% in June, offering some relief to consumers and cementing analysts&#8217; expectations for an interest rate cut this month.



&#8220;The rise in new orders was the first recorded in over a year, offering hope that the recent malaise in the private sector is starting to fade,&#8221; Owen added.



(Reporting by Tannur Anders; Editing by Christina Fincher)

View of Johannesburg’s skyline

South Africa business activity rises in August, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1381" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-scaled.jpg" alt="" class="wp-image-526710" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-1536x1036.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: China&#8217;s President Xi Jinping attends Shanghai Cooperation Organization (SCO) summit in Astana, Kazakhstan July 4, 2024. REUTERS/Turar Kazangapov/File Photo</figcaption></figure>



BEIJING, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;China, Tanzania and Zambia signed an initial agreement to rehabilitate a decades-old railway aimed at improving the rail-sea transportation in resource-rich East Africa, Chinese state media said on Wednesday.



President Xi Jinping witnessed the signing of the memorandum of understanding on refurbishing the 1,860 kms (1,156 mile) Tanzania-Zambia Railway Authority (TAZARA) railway with the Tanzanian and Zambian presidents, who were in Beijing attending the Forum on China-Africa Cooperation, according to&nbsp;the state-run Xinhua news agency.



The single-track TAZARA railway was built between 1970 and 1975 through an interest-free loan from China, offering a cargo transport route from Zambia&#8217;s copper and cobalt mines to the sea on Tanzania&#8217;s coast that bypasses South Africa and the former state of Rhodesia.



Commercial operations of the line, derided by some Western governments at the time as the &#8220;bamboo railway&#8221;, began in 1976. The multi-year project had involved the construction of two dozen tunnels and hundreds of bridges by tens of thousands of Chinese and African workers.



&#8220;China is willing to take this summit as an opportunity to make new progress in the revitalisation of the Tanzania-Zambia railway, cooperate to improve the rail-sea intermodal transport network in East Africa, and build Tanzania into a demonstration zone for deepening high-quality China-Africa Belt and Road cooperation,&#8221; said Xi, according to state media.



Earlier this year, the World Bank approved $270 million in financing to help improve connectivity between neighbours Tanzania and Zambia and boost regional trade.



In February, China proposed to spend $1 billion to rehabilitate the rail line through a public-private partnership model.



(Reporting by Bernard Orr and Ryan Woo; Editing by Kim Coghill and Michael Perry)

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