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



JOHANNESBURG, Aug 22 (Reuters)&nbsp;&#8211;&nbsp;The South African rand weakened in early trade on Thursday, ahead of a slew of U.S. economic data which may give hints on the future interest rate path of the world&#8217;s biggest economy.



At 0615 GMT, the rand traded at 17.90 against the dollar, about 0.4% weaker than its previous close.



&#8220;EM (emerging market) currencies are trading off their recent stronger levels with the rand softening to R17.90 against the dollar&#8230; this morning,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



&#8220;Today, we have a range of U.S. data indicators that could provide some insight into the U.S. economy and labour market&#8230; while tomorrow, we have (Federal Reserve Chair Jerome) Powell&#8217;s opening address at Jackson Hole,&#8221; Cilliers said.



The Jackson Hole Economic Symposium of global central bankers starts on Thursday, with Powell set to speak on Friday. Markets hope Powell&#8217;s speech will offer further insights into the interest rate path of the U.S.



Federal Reserve minutes released on Thursday revealed the U.S. was on track for an interest rate cut in September after a &#8220;vast majority&#8221; of officials said such an action was likely.



Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. monetary policy in the absence of major local factors.



South Africa&#8217;s benchmark 2030 government bond was unchanged in early deals, with the yield at 9.12%.



(Reporting by Tannur Anders; Editing by Bernadette Baum)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand softens, focus on Fed rate path

<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, Aug 22 (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>



Kenya&#8217;s Finance Minister John Mbadi will host a meeting to discuss how to boost the mobilization of climate finance across Africa.



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



Oil fell for a fifth day in a row on demand jitters on Thursday, stocks were subdued in Asia, and the dollar hovered near one-year lows as Federal Reserve minutes signalled that U.S. interest rate cuts are set to begin in a few weeks&#8217; time.



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



Oil prices fell for a fifth session on Thursday as global demand concerns exerted pressure on the market despite a decline in U.S. fuel inventories.



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



The South African rand softened on Wednesday as local inflation fell to a three-year low in July, solidifying analysts&#8217; expectations of an interest rate cut by the South African Reserve Bank next month.



<h2 class="wp-block-heading" id="h-mali-security">MALI SECURITY</h2>



The military juntas of Burkina Faso, Mali and Niger have written to the U.N. Security Council to denounce what they said was Ukraine&#8217;s support for rebel groups in West Africa&#8217;s Sahel region, Mali&#8217;s foreign ministry said.



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



Uganda is exploring for oil in two new regions where potential discoveries of crude could increase the East African country&#8217;s proven reserves of 6.5 billion barrels, its energy minister said on Wednesday.



<h2 class="wp-block-heading" id="h-rwanda-rates">RWANDA RATES</h2>



Rwanda&#8217;s central bank lowered its key interest rate by 50 basis points to 6.5% on Wednesday, its second cut in a row, saying inflation was projected to remain within its target band at around 5% on average.



<h2 class="wp-block-heading" id="h-kcb-group-results">KCB GROUP RESULTS</h2>



Kenyan lender KCB Group&#8217;s pretax profit for the first half of this year rose 70% to 38.11 billion shillings ($297 million), up from 22.46 billion shillings in the same period in 2023, it said on Wednesday.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 22

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-501467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Aug 22 (Reuters)&nbsp;&#8211;&nbsp;The following equity and currency market moves may affect South African markets on Thursday.



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



The South African rand softened on Wednesday as local inflation fell to a three-year low in July, solidifying analysts&#8217; expectations of an interest rate cut by the South African Reserve Bank next month.



In the stock market, the Top-40 index closed 0.33% higher.



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



Asian shares inched higher while the dollar was pinned to one-year lows on sterling and the euro on Thursday as Federal Reserve minutes showed policymakers were ready to start cutting U.S. interest rates.



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



U.S. stocks advanced on Wednesday amid range-bound trading after investors parsed a steep downward revision in payrolls, and the release of the minutes from the most recent meeting of the Federal Reserve, which cemented expectations for a September rate cut.



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



Gold prices fell on Thursday, retreating from all-time highs hit earlier this week, as the U.S. dollar ticked up ahead of U.S. jobs data and the Federal Reserve chief&#8217;s speech that could offer further insights into the interest rate outlook.



&#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; Consumer purchasing power falls 44% in eight years



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



&#8211; Stats SA admits to serious flaws in Census 2022 data



&#8211; Eskom, Transnet move to new departments as govt preps for private sector involvement, reform



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 22

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="565" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-820x565.jpg" alt="" class="wp-image-521910" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-820x565.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-768x529.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-1536x1058.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Samburu pastoralist slaughter livestock in the de-stocking of emaciated animals in a program by the government and the Kenya Red Cross to buy livestock, slaughter and distribute the meat as relief food to the most affected families following a prolonged drought near Lengusaka in Wamba, Samburu county, Kenya July 27, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



KILIFI COUNTY, Kenya, Aug 22 (Thomson Reuters Foundation)&nbsp;&#8211;&nbsp;When farmer Teresa Kahindi harvested nearly two tonnes of maize two years ago amid a severe drought, her neighbours in the Kenyan coastal county of Kilifi accused her of witchcraft.



Many of her fellow farmers had not produced even a single sack, weighing about 90 kg, of the staple, during the fifth consecutive season of almost no rain in eastern Kenya, where arid conditions can devastate harvests.



&#8220;They said I was a witch,&#8221; said Kahindi, 53, while strolling through her fields of black-eyed peas, mung beans, cassava, finger millet and sunflowers.&#8221;But it&#8217;s not true. We can&#8217;t farm like we used to do. Now we must rely on climate forecasts.&#8221;



Kahindi&#8217;s drought-defying harvest was thanks to a sophisticated early-warning system that includes cutting-edge meteorological data, radio and text alerts and on-the-ground teams that ensure communities can take pre-emptive action to avoid crop losses.



In March 2022, a month before the rainy season was due to begin, Kahindi was advised to adapt her plans at a seminar for farmers run by county officials.



She prepared her plots with manure to enhance water retention, covered the soil with dry grass mulching to reduce evaporation and planted drought-tolerant maize seeds, which require less water and mature faster than other varieties.



&#8220;Knowledge can transform farming,&#8221; says Kahindi.



Kenya&#8217;s early warning system, funded by the government and a patchwork of international agencies, may offer a template for countries to meet the United Nation&#8217;s 2022 goal to protect &#8220;all people on Earth&#8221; by 2027 through early warning systems.



The U.N. launched the Early Warnings for All Action Plan for Africa in Kenya&#8217;s capital of Nairobi last year in an effort to accelerate a slow rollout in other parts of the continent.



&#8220;In terms of early warning, Kenya stands out as a big brother for East Africa,&#8221; said Zablon Shilenje, the World Meteorological Organization&#8217;s coordinator for Africa.



<h2 class="wp-block-heading" id="h-reducing-famine-risk">REDUCING FAMINE RISK</h2>



As extreme weather events increase due to manmade climate change, the Kenyan model allows farmers to switch agricultural techniques or the crops they cultivate to adapt to predicted conditions, such as intense droughts or heavy floods.



Between 2020 and 2022, the Horn of Africa suffered its worst drought in at least 70 years, exacerbated by the climate phenomenon La Niña. Some 23 million people required humanitarian aid at a cost of more than $1.8 billion.



More people will be exposed to drought as the region&#8217;s population is set to double to 400 million by 2055.



Food security experts say Kenya&#8217;s early warning system has mitigated the impact of disasters – in turn minimising the likelihood of famine in one of the world&#8217;s most food insecure regions.



Between 2010 and 2011, when repeated droughts struck the East African nation, 2.8 million Kenyans were left &#8220;severely hungry.&#8221;



Thanks to early warnings, a million fewer people suffered during similar droughts in 2016 and 2017, even as the U.S. government halved its spending on food aid, according to a report by the U.S. Agency for International Development, or USAID.



The effort to predict droughts dates back to 1985 with the founding of the Famine Early Warning Systems Network (FEWS NET), a USAID-funded programme that began in the aftermath of a catastrophic Ethiopia famine but now covers more than 50 countries.



Supported by Kenya&#8217;s National Drought Management Authority (NDMA) and Agriculture Ministry, as well as international NGOs, the system uses high-resolution satellite, crop and other climate data to predict the risk of drought, sometimes up to eight months in advance.



Local authorities interpret, verify and communicate forecasts to millions of farmers through radio, television, SMS and WhatsApp messages and sometimes provide them with subsidised fertilisers and seeds.



&#8220;We are able to foresee severe events in a timely manner,&#8221; said David Gikungu, director of the Kenya Meteorological Department.



<h2 class="wp-block-heading" id="h-come-a-long-way">&#8216;COME A LONG WAY&#8217;</h2>



Advances in data collection, modelling and satellite monitoring have helped make early warning more reliable over the years, said Chris Funk, director of the Climate Hazards Center at UC Santa Barbara, which processes most of FEWS NET&#8217;s data.



Other improvements include an understanding of the complex climatic conditions that drive drought in the Horn of Africa and the region&#8217;s communications infrastructure.



&#8220;We&#8217;ve really come a long way,&#8221; Funk said. &#8220;We have an impressive suite of tools now. It&#8217;s been successful in stopping people from starving.&#8221;



A study of FEWS NET data by U.S. researchers found 92 percent of early warnings in Kenya were accurate, aided by better monitoring of socioeconomic factors, such as food prices and violent conflict.



While Kenya&#8217;s early warning system is now highly accurate at predicting natural disasters, critics say decisionmakers don&#8217;t always act on time or with enough financial support.



&#8220;Unless the government and other stakeholders put up the resources, then it can&#8217;t work,&#8221; said James Odour, NDMA&#8217;s director from 2012 to 2022.



&#8220;Unless action is taken on the early warning, then it&#8217;s pointless.&#8221;



Nelson Mutanda, responsible for early warning systems at the NDMA, said the government instructed counties to allocate 2% of their annual budgets to early warning and gave local authorities the responsibility of managing funds.



&#8220;Counties have enough budget (to fund early warnings),&#8221; he said. &#8220;But some don&#8217;t prioritise it. They can&#8217;t come crying to us for support just because they haven&#8217;t properly prepared.&#8221;



He added: &#8220;And we expect farmers who are capable should take initiative without waiting for funding.&#8221;



<h2 class="wp-block-heading" id="h-last-mile">&#8216;LAST MILE&#8217;</h2>



Research suggests pre-emptive intervention can save billions of dollars. A 2022 report by the World Bank found that spending $1 billion on early warnings can avert $35 billion of disaster-related losses annually.



Another major challenge is disseminating warnings to rural populations.



In Kenya&#8217;s southern county of Kajiado, home to the pastoralist Indigenous Maasai, drought warnings may not be understood, due to illiteracy rates, or sometimes are not even delivered when there are gaps in government or humanitarian resources.



&#8220;I need help, I would accept training,&#8221; said Ole Mwato, a 46-year-old Maasai who lost 20 cows and 80 goats in the 2020-2022 droughts.



&#8220;It&#8217;s a lot of pain to lose the animals. There was no grass, no water. That&#8217;s why they died.&#8221;



Others are resistant to undertaking laborious tasks, such as digging pits to retain water, seeing it as a potential waste of time because past forecasts were unreliable or traditional cultural beliefs that say the rains are controlled by the gods.



To improve forecast accuracy, 50 low-cost, 3D-printed automatic weather stations, capable of sending highly accurate meteorological data every 15 minutes, are being installed by FEWS NET across Kenya, including three in Kilifi.



For now, Kahindi is leading by example, encouraging local farmers to adapt their methods to future weather in order to maximise yields.



&#8220;We must work together to beat famine,&#8221; she said.



(Reporting by Peter Yeung; Editing by Ayla Jean Yackley. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.)

In northern Kenya, drought may keep some herders from voting in Samburu

In Kenya, drought-weary farmers reap rewards of early warnings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-820x547.jpg" alt="" class="wp-image-521660" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers wait to be served in the banking hall at the Kenya Commercial Bank (KCB), Kencom branch in Nairobi, Kenya July 10, 2018. Picture taken July 10, 2018. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Kenyan&nbsp;lender&nbsp;KCB Group&#8217;sKCB.NR&nbsp;pretax profit for the first half of this year rose 70% to 38.11 billion shillings ($297 million), up from 22.46 billion shillings in the same period in 2023, it said on Wednesday.



The company said its board of directors had recommended an interim dividend payout amounting to 4.8 billion shillings, the biggest interim dividend in its history.



The group also operates in Democratic Republic of Congo, Tanzania, Rwanda, South Sudan, Uganda and Burundi.



The group&#8217;s net interest income grew 35% year on year, supported by improved yields and increased lending, KCB said in a statement.



&#8220;We delivered a commendable first half of the year, despite strong headwinds in the operating environment, especially in Kenya,&#8221; KCB Group Chief Executive Paul Russo said.



($1 = 128.5000 Kenyan shillings)



(Reporting by Hereward Holland and Duncan Miriri; Editing by Alexander Winning)

FILE PHOTO: Customers wait to be served in the banking hall at the Kenya Commercial Bank, Kencom branch in Nairobi

Kenyan lender KCB Group reports 70% higher profit in H1

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-820x547.jpg" alt="" class="wp-image-521585" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The headquarters of the National Bank of Rwanda, Rwanda&#8217;s central bank, in the Nyarugenge district of Kigali, Rwanda on Thursday, July 20, 2023. The World Bank cut Rwanda&#8217;s GDP growth estimate to 5.8% from 6.2%, as it expected flooding during April and May to result in slowed economic expansion. Photographer: Bing Guan/Bloomberg via Getty Images</figcaption></figure>



KIGALI, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s central bank lowered its key interest rate by 50 basis points to 6.5% on Wednesday, its second cut in a row, saying inflation was projected to remain within its target band at around 5% on average.



The decision follows a 50 basis point cut to the National Bank of Rwanda&#8217;s Central Bank Rate in May.



Annual inflation peaked at 21.7% in November 2022 and has remained under 6% since the start of this year. It dipped to 4.9% in July, well within policymakers&#8217; 2%-8% target range.



&#8220;Inflation is expected to remain within our band and around our medium objective of 5% for this year 2024 and for next year 2025,&#8221; Governor John Rwangombwa told a news conference.



He added the bank&#8217;s monetary policy committee had the same inflation projections as at its May meeting.



On the economy, Rwangombwa said growth had been strong in the second quarter and was projected to remain so in the third quarter, building on the first quarter&#8217;s 9.7% growth.



Among inflation risks, Rwangombwa cited heightened geopolitical tensions affecting commodity prices and adverse weather conditions impacting food prices.



(Reporting by Philbert Girinema; Writing by Hereward Holland; Editing by Alexander Winning and Christina Fincher)

Rwandan Economy as World Bank Cuts Growth Estimate on Floods

Rwanda central bank lowers key rate for second meeting in a row

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1396" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-scaled.jpg" alt="" class="wp-image-521563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-820x559.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-1536x1047.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">File photo: A shopper looks at items at a grocery store in Johannesburg, South Africa, June 8, 2017. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s inflation dropped more than&nbsp;forecastto a three-year low in July, nearing the level the central bank aims for and cementing analysts&#8217; expectations for an interest rate cut&nbsp;next month.



Consumer inflation fell to 4.6% year on year in July from 5.1% in June, statistics agency data showed on Wednesday, whereas analysts polled by Reuters had forecast annual inflation of 4.9% last month.



The South African Reserve Bank likes to see inflation around 4.5%, the midpoint of its 3% to 6% target range, but it has been above that level since mid-2021.



Before the latest inflation print, most economists in a Reuters poll had predicted the SARB would reduce its main interest rate by 25 basis points at its next policy announcement on Sept. 19, and a cut now looks more likely.



&#8220;The SARB has definitely run out of excuses to not cut interest rates&#8230; and might have to consider a bigger cut,&#8221; independent economist Elize Kruger said.



July&#8217;s data &#8220;seals the deal&#8221; on a September rate cut, said David Omojomolo, Africa economist at Capital Economics, adding he thought inflation could fall below 4% by the end of the year.



The central bank had said at its July meeting that it expected inflation to dip below 4.5% over the next few quarters, mainly due to falling food and fuel costs.



July&#8217;s data showed inflation for food and non-alcoholic beverages fell to 4.5% from 4.6% in June, while fuel decreased to 4.5% from 7.6% in June.



Core inflation, which excludes food and fuel, came in at 4.3% in July versus 4.5% in June, Statistics South Africa added.



(Reporting by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning, Alison Williams and Toby Chopra)

A shopper looks at items at a grocery store in Johannesburg, South Africa

South Africa inflation drop makes September rate cut more likely

<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, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was weaker in early trade on Wednesday, ahead of a local inflation print which could give hints on the future interest rate path of Africa&#8217;s most industrialised economy.



At 0642 GMT, the rand traded at 17.83 against the dollar, about 0.2% softer than Tuesday&#8217;s close.



&#8220;Today is all about local CPI (inflation) later this morning and the Fed (U.S. Federal Reserve) minutes this evening,&#8221; said Rand Merchant Bank analysts in a research note.



Investor focus will be on South Africa&#8217;s July inflation print  set to be released at 0800 GMT for clues on the country&#8217;s future interest-rate path.



Inflation in June was at 5.1% year on year and within the central bank&#8217;s target range of 3% to 6%. The central bank likes to see inflation close to 4.5%, the midpoint of its target range.



Economists polled by Reuters expect South Africa&#8217;s central bank to cut interest rates for the first time in more than two years on Sept. 19.



&#8220;Ahead of CPI later this morning, we look for some consolidation after the big moves of late,&#8221; Rand Merchant Bank analysts added, referring to the rand.



Global markets will look to minutes of the Fed&#8217;s latest meeting for clarity on the rate-cut path of the world&#8217;s biggest economy.



South Africa&#8217;s benchmark 2030 government bond was slightly weaker in early deals, as the yield gained 1 basis point to 9.295%.



(Reporting by Tannur Anders; Editing by Rashmi Aich)

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

South African rand softer ahead of local inflation print

<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>



Aug 21 (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-events">EVENTS:</h2>



Zimbabwe&#8217;s finance minister, Mthuli Ncube, will speak about fiscal policy at a conference in Harare hosted by the Zimbabwe Economic Society.



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



Asian shares slipped on Wednesday as a stellar rebound in world stocks paused for breath, while bond yields and the dollar fell ahead of U.S. economic data and speeches from policymakers that are expected to make the case for interest rate cuts.



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



Oil prices slipped on Wednesday on estimates showing swelling U.S. crude inventories and expectations that tensions in the Middle East were easing following a tour of the region by mediators.



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



The South African rand weakened on Tuesday ahead of local inflation data, as markets awaited clues on both domestic and U.S. interest-rate paths this week.



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



Kenya&#8217;s shilling was little changed against the U.S. dollar on Tuesday in a quiet session, traders said.



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



Justine Munguiko could not recall the name of the disease she had been warned about. She knew only that her baby Fidele had painful sores similar to those suffered by other children at the displacement camp near the eastern Congolese city of Goma.



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



Kenya&#8217;s top court on Tuesday suspended a lower court&#8217;s ruling that the 2023 finance law was unconstitutional, saying it was important to preserve stability in the budget until the merits of the government&#8217;s appeal are heard next month.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on Aug 21

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-501467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, equity and currency market moves may affect South African markets on Wednesday.



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



Statistics South Africa will publish July consumer price inflation data.



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



The South African rand weakened on Tuesday ahead of local inflation data, as markets awaited clues on both domestic and U.S. interest-rate paths this week.



On the stock market, the Top-40 index was little-changed.



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



Asian shares slipped on Wednesday as a stellar rebound in world stocks paused for breath, while bond yields and the dollar fell ahead of U.S. economic data and speeches from policymakers that are expected to make the case for interest rate cuts. 



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



U.S. stocks closed slightly lower on Tuesday, breaking their recent winning streak amid few market-moving catalysts ahead of the Jackson Hole Economic Symposium, set to get under way on Thursday.



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



Gold prices were trading below record high levels on Wednesday after a rally fuelled by Western fund inflows and U.S. rate-cut optimism, as investors braced for minutes of the Federal Reserve&#8217;s latest meeting for clarity on the depth of cuts. 



&#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; Agricultural land at risk from property and mining, Steenhuisen says



&#8211; Court dismisses Nersa and Salga&#8217;s appeal for electricity hikes



(Compiled by Tannur Anders)

South African Markets – Factors to watch on Aug 21

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="554" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-820x554.jpg" alt="" class="wp-image-521524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-820x554.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-768x519.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-1536x1037.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A logo of Sibanye Stillwater is seen at a mine in Marikana, outside Rustenburg, northwest of Johannesburg, South Africa, March 14, 2024. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



Aug 21 (Reuters) &#8211; South Africa&#8217;s Sibanye Stillwater has finalised a 1.8 billion rand ($101 million) gold prepayment deal to raise cash to help repay loans after a slump in platinum group metal (PGM) prices hurt its income, the diversified miner said on Wednesday.



The group had previously said it was seeking to raise more than $500 million through metals prepayment deals to shore up its balance sheet after earnings plunged due to the PGM price collapse.



Metals prepayment arrangements allow miners to sell their future production in return for an upfront cash payment.



The metals producer&#8217;s profits tumbled $2 billion last year due to lower prices and after it wrote down $2.6 billion in the carrying value of its U.S. palladium mines, a nickel operation in France and a gold mine in South Africa.



Sibanye Stillwater CEO Neal Froneman said in a statement on Wednesday the prepayment deal was a &#8220;proactive, strategic financing alternative that improves the group&#8217;s liquidity and balance sheet&#8221;.



Sibanye said it would deliver 1,497 kg of gold in equal monthly tranches from October 2024 to November 2026 in return for the prepaid cash. The cash will help to repay the group&#8217;s loans, it said.



The miner said it had also reached an agreement to refinance and increase its 5.5 billion rand revolving credit facility with South African lenders, which was due to mature in November 2024.



Refinancing allows a borrower to replace an existing debt obligation with a new one on more favourable terms.



The refinanced 6 billion rand facility will now mature in August 2027, with an option to extend it by a further two years, Sibanye said.



($1 = 17.8542 rand)



(Reporting by Nelson Banya; Editing by Emelia Sithole-Matarise)

A logo of Sibanye Stillwater is seen at a mine in Marikana

Sibanye finalises $101 mln gold prepayment deal, refinances credit facility

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-820x576.jpg" alt="" class="wp-image-425778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-1536x1079.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu waves to a crowd as he takes the traditional ride on top of a ceremonial vehicle, after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, Aug 20 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is on track to meet a tax revenue target set by the Federal Inland Revenue Service and is pushing for a legislative overhaul to modernise tax collection, including regulating cryptocurrencies, the chief of the service said on Tuesday.



Zacch Adedeji said in a statement that a 19.4 trillion naira ($12.5 billion) revenue target set for 2024 is within reach.



&#8220;We are in the third quarter of the year and with the figures we are seeing so far, I can say we are on the path of achieving our target,&#8221; Adedeji said following talks with a joint committee of Nigeria&#8217;s National Assembly on Finance.



In office since May last year, Nigeria&#8217;s President Bola Tinubu has embarked on the country&#8217;s boldest reforms in decades, including the partial removal of costly petrol and electricity subsidies, and has proposed changes to the country&#8217;s tax system as part of a push to widen the tax base.



The West African country is also preparing an executive bill to overhaul revenue collection and introduce regulations for cryptocurrencies as it aims to simplify tax laws and harmonise collection, Adededi said.



The proposed legislation, if passed, could reshape Nigeria&#8217;s economic landscape, bringing its tax system in line with global standards and potentially boosting much-needed revenue from the rapidly growing cryptocurrency sector.



Adedeji said the proposal seeks to simplify tax laws, harmonise revenue collection and replace outdated tax laws with measures more closely fitting current economic conditions.



&#8220;We will bring a bill for a law to overhaul the whole process of revenue administration in Nigeria,&#8221; Adedeji said. &#8220;Part of what we intend to achieve with this is to harmonise revenue collection, making tax laws very simple to understand and to be in tune with our current realities.



&#8220;We cannot run away from the cryptocurrency ecosystem. As it stands in Nigeria today, there is no law that regulates cryptocurrency operations. We need a law that regulates that area of our economy.&#8221;



($1 = 1,550.0000 naira)



(Writing by Elisha Bala-Gbogbo; Editing by David Holmes)

FILE PHOTO: Nigeria’s President Bola Tinubu waves to a crowd as he takes the traditional ride on top of a ceremonial vehicle after his swearing-in ceremony in Abuja

Nigeria expects to meet $12.5 billion revenue target

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-820x547.jpg" alt="" class="wp-image-421165" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The locomotive of a Transnet SOC Ltd. freight train transports wagons of coal from the Mafube open-cast coal mine, operated by Exxaro Resources Ltd. and Thungela Resources Ltd., towards Richard&#8217;s Bay coal terminal, in Mpumalanga, South Africa on Thursday, Sept. 29, 2022. South Africa relies on coal to generate more than 80% of its electricity, and has been subjected to intermittent outages since 2008 because state utility Eskom Holdings SOC Ltd. can&#8217;t meet demand from its old and poorly maintained plants. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



Aug 20 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Transnet is seeking debt relief from the government as it seeks to repair its balance sheet and restore freight rail and port capacity, the state-owned logistics firm&#8217;s chairman said on Tuesday.



Transnet is saddled with 130 billion rand ($7.30 billion) in debt and has struggled to provide adequate freight rail and port services due to equipment shortages and maintenance backlogs after years of under-investment.



Last December, South Africa&#8217;s government said it had handed Transnet a 47 billion rand guarantee facility to help the company meet &#8220;immediate liquidity matters such as settling maturity debt&#8221;.



Transnet board Chairman Andile Sangqu told journalists that the company&#8217;s debt repayments were averaging just over 1 billion rand monthly.



Part of the debt had arisen from &#8220;state capture&#8221;, Sangqu said, referencing a graft scandal which rocked South Africa&#8217;s government between 2010 and 2018 under former President Jacob Zuma and cost Transnet and other state enterprises billions of rand in corrupt procurement deals.



&#8220;We will require the assistance of the shareholder to give us some form of debt relief,&#8221; Sangqu said.



He said efforts to restore Transnet&#8217;s freight volumes under a recovery plan announced in October 2023 were being undermined by debt servicing.



&#8220;As we begin to make this increase in volumes, as we begin to generate new operational cash flows, they all get wiped out by the debt service costs,&#8221; he said.



Transnet&#8217;s freight volumes have declined to 152 million metric tons in financial year 2023/24 from 226 million tons in 2017/18.



$1 = 17.8122 rand)



(Reporting by Felix Njini; Writing by Nelson Banya; Editing by Jonathan Oatis)

Coal Freight Transportation at Mafube Collier

South Africa’s Transnet seeks debt relief from government

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-820x547.jpg" alt="" class="wp-image-521202" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Qatar Airways B777 aircraft arrives at the Cape Town International Airport, in Cape Town, South Africa, June 28, 2022. REUTERS/Shelley Christians/File Photo</figcaption></figure>



DOHA, Aug 20 (Reuters)&nbsp;&#8211;&nbsp;Qatar Airways will take a 25% stake in South Africa-based regional carrier Airlink as both airlines seek to boost services and passenger numbers across Africa, they said on Tuesday.



Qatar Airways CEO Badr Mohammed Al Meer, speaking alongside Airlink&#8217;s CEO Rodger Foster in Doha, told reporters the investment would boost Qatar Airways&#8217; access to passengers in regional cities in Africa.



Foster said it would allow privately owned Airlink to expand in Africa and eventually to operate larger aircraft on one or two routes. It would not expand beyond Africa, he said.



The executives did not disclose the value of the investment that was officially agreed on Tuesday, and Qatar Airways&#8217; Al Meer said it would require regulatory approval.



With a 25% equity stake in Airlink, Qatar Airways will take the maximum foreign ownership share that South African regulators allow for airlines, Foster said.



Airlink is currently owned by Foster&#8217;s family, South Africa&#8217;s Webb family and institutional investors Coronation Global and Sishen Iron Ore Company Community Development Trust, according to Foster.



Qatar Airways will gain two seats on Airlink&#8217;s 14 member board and will have 25% shareholder voting rights, Foster told Reuters.



State-owned Qatar Airways holds stakes in British Airways-owner International Airlines Group, Latam Airlines, Cathay Pacific Airways, and China Southern Airlines.



It has also been in talks to acquire a minority stake in Rwanda&#8217;s RwandAir and in 2019 agreed with the country&#8217;s government to take a majority stake in a new international airport in Rwanda.



Airlink, which flies to more than 45 destinations in 15 African countries, and RwandAir both operate on several of the same routes.



&#8220;It makes sense that as Qatar Airways gets more involved in RwandAir, we start rationalizing the duplicated activity,&#8221; Foster said, adding that though discussions have not started yet, it could mean an interline or code share agreement with the airline.



Airlink already has a code share agreement with Qatar Airways, which allows the airlines to sell tickets on flights operated by each other.



The African carrier has a similar agreement with Dubai&#8217;s state-owned Emirates, a competitor of Qatar Airways, which Foster said would continue.



(Reporting by Andrew Mills; Writing by Alexander Cornwell; Editing by Mark Heinrich, Sharon Singleton, Susan Fenton and Shounak Dasgupta)

Qatar Airways B777 aircraft arrives at the Cape Town International Airport

Qatar Airways says it will take 25% stake in South Africa’s Airlink

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NGZ3KIXADZONPII7S6ZTTRQTUQ-820x547.jpg" alt="" class="wp-image-521199" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NGZ3KIXADZONPII7S6ZTTRQTUQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NGZ3KIXADZONPII7S6ZTTRQTUQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NGZ3KIXADZONPII7S6ZTTRQTUQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NGZ3KIXADZONPII7S6ZTTRQTUQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NGZ3KIXADZONPII7S6ZTTRQTUQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NGZ3KIXADZONPII7S6ZTTRQTUQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: President Nana Addo Dankwa Akufo-Addo of Ghana speaks during a press conference during the Summit on Peace in Ukraine, in Stansstad, Switzerland, June 16, 2024. ALESSANDRO DELLA VALLE/Pool via REUTERS/File Photo</figcaption></figure>



ACCRA, Aug 20 (Reuters)&nbsp;&#8211;&nbsp;Ghanaian President Nana Akufo-Addo has broken ground on the construction of a 300,000 barrel-per-day oil refinery that the government hopes will turn the West African country into the region&#8217;s petroleum hub, but critics say the project is flawed.



Ghana, the world&#8217;s second biggest cocoa producer, became an oil producer in 2010. Output is currently around 132,000 bpd of crude oil and about 325 million standard cubic feet per day of natural gas.



&#8220;The project promises to be a cornerstone of our nation&#8217;s development,&#8221; Akufo-Addo said late on Monday at the site of the project in the southwestern city of Jomoro, which will also include petrochemical plants.



Phase one of the project, estimated to cost $12 billion, will be funded and constructed by a consortium of Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co, he said on state-owned Ghana Television (GTV).



West Africa consumes about 800,000 bpd, according to the African Refiners and Distributors Association, of which almost 90% is imported.



The petroleum hub aims to supply enough refined and by-products to supply the region by 2036, according to an agreement signed in June 2018.



Not everyone is convinced by the plan, however.



Bright Simons, a vice president at Accra-based think tank, IMANI Africa, said the consortium behind the project &#8220;is not primed for investment (and) the project has no bankable business plan.&#8221;



&#8220;Our position is that this is a speculative attempt to grab a landbank for cheap,&#8221; he said.



Some residents of the hub&#8217;s proposed 20,000-acre site have protested the plans, demanding the project&#8217;s footprint be reduced to 5,000 acres.



Oliver Barker-Vormawor, a senior partner of the law firm representing some affected farmer cooperatives, said his clients would not stand down.



&#8220;The abrasive manner that the government is proceeding discounts valid concerns around the social and environmental impact of the project, the livelihoods at risk by the displacement of farmers and the unsettled questions of ownership and community land rights.&#8221;



The government has so far rejected these concerns, citing petitions from other residents in support of the project.



(Editing by Alessandra Prentice and Conor Humphries)

FILE PHOTO: Summit on Peace in Ukraine, in Switzerland

Ghana begins construction of $12 bln petroleum hub

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-820x524.jpg" alt="" class="wp-image-521181" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-1536x982.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A fountain with a statue is seen outside the Supreme Court in Nairobi, Kenya, August 20, 2021. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Aug 20 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s top court on Tuesday suspended a lower court&#8217;s ruling that the 2023 finance law was unconstitutional, saying it was important to preserve stability in the budget until the merits of the government&#8217;s appeal are heard next month.



The finance bills, presented to parliament at the start of every financial year, are the main vehicle for the government to set out its revenue-raising measures including tax hikes.



The Court of Appeal&#8217;s judgment late last month that last year&#8217;s Finance Act was unconstitutional was a blow to the government of President William Ruto, who withdrew this year&#8217;s finance bill in June in the face of youth-led protests, the biggest challenge of his two-year presidency.



Ruto has been caught between the competing demands of Kenya&#8217;s hard-pressed citizens and of lenders such as the International Monetary Fund.



He has argued that tax increases are necessary to help fund development programmes and pay off a heavy public debt load.



&#8220;We find that public interest tilts in favour of granting conservatory and stay orders to &#8230; maintain stability in the budget and appropriation process pending the determination of this appeal,&#8221; Kenya&#8217;s Supreme Court said in its ruling.



The Supreme Court will hold hearings on Sept. 10 and 11 on whether the 2023 law is constitutional.



The government, which has been relying on the 2023 finance law to continue collecting taxes after Ruto withdrew this year&#8217;s bill, did not immediately comment.



The 2023 version was challenged in court following a round of violent street protests last year led by opposition parties.



Ruto&#8217;s government used the 2023 law to double the value-added tax on fuel, introduce a housing tax and raise the top personal income tax rate.



(Reporting by Hereward Holland; Editing by Alexander Winning and Conor Humphries)

Kenyan court to rule on appeal against halting of constitutional changes in Nairobi

Kenya’s top court suspends judgment nullifying 2023 finance law

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1248" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-scaled.jpg" alt="" class="wp-image-495627" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-820x500.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-768x468.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-1536x936.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Aug 20 (Reuters)&nbsp;&#8211;&nbsp;The South African rand gave back some gains in early trade on Tuesday, ahead of the country&#8217;s leading indicator data release, and as markets await clues on both local and U.S. interest rate paths this week.



At 0615 GMT, the rand traded at 17.73 against the dollar, about 0.2% softer than its previous close.



&#8220;The rand&#8217;s strong run continued yesterday as it closed at the day&#8217;s best level&#8230; on the back of the weaker dollar and positive risk sentiment,&#8221; Andre Cilliers, currency strategist at TreasuryONE, said.



&#8220;The local currency has given back some of the gains this morning in line with slightly softer EM (emerging market) currencies,&#8221; Cilliers added.



Local investors will on Tuesday focus on South Africa&#8217;s leading indicator for June, which collects data on vehicle sales, business confidence, money supply and other factors.



On Wednesday, focus will be on South Africa&#8217;s July inflation print for hints on the future interest rate path of Africa&#8217;s most industrialised economy.



Economists polled by Reuters expect the central bank to cut interest rates for the first time in more than two years on Sept. 19.



Globally, markets will look toward U.S. Federal Reserve minutes and Chair Jerome Powell&#8217;s speech at the Jackson Hole symposium this week for indications on how much the Fed will cut interest rates this year.



Like other risk-sensitive currencies, the rand often takes cues from global drivers including U.S. monetary policy alongside local data points.



South Africa&#8217;s benchmark 2030 government bond was little changed in early deals, as the yield gained 0.5 basis point to 9.28%.



(Reporting by Tannur Anders; Editing by Andrew Heavens)

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Reuters

South African rand softens, focus on Fed rate path

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Ghana begins construction of $12 bln petroleum hub

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