<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="565" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ.jpg" alt="" class="wp-image-516192" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ.jpg 1080w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ-768x402.jpg 768w" sizes="auto, (max-width: 1080px) 100vw, 1080px" /><figcaption class="wp-element-caption">People wearing face masks walk past the Johannesburg Stock Exchange in Sandton, South Africa, November 9, 2020. REUTERS/Siphiwe Sibeko/ file photo</figcaption></figure>



JOHANNESBURG, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Johannesburg Stock Exchange Ltd (JSE) posted a slight fall in half-year profit on Wednesday, impacted by lower equity trading activity in a challenging economic environment.



The operator of Africa&#8217;s biggest bourse by market capitalisation said headline earnings per share (HEPS) inched 0.2% lower to 606 cents in the six months ended June 30. HEPS is the main measure of corporate profit in South Africa.



Profit after tax was flat at 492.7 million rand ($27 million), it said.



Revenue grew 4.3% to 1.5 billion rand, supported by its diversified business segments and asset classes, whose growth offset the 12% decline in equity trading. Most businesses reported growth in revenue for the period.



&#8220;These results reflect our segment and asset class diversification as well as strategic progress in growing non-trading income, which now represents 39% of total operating income,&#8221; said group CEO Leila Fourie.



After a slow start to 2024, the value of equities traded on the JSE started to recover in the second quarter, with the trend extending into July following South Africa&#8217;s May elections which resulted in a new unity government including the pro-business Democratic Alliance party.



&#8220;Higher trading activity has been reflective of positive market sentiment stemming from the outcome of the national elections and the formation of the government of national unity (GNU),&#8221; she added.



The Johannesburg All-share index is up 5.4% year-to-date, hitting its highest level on Aug. 1 at 82,881 points, while the banks index, which was the most buoyed by the cautious optimism, is 12.6% up this year.



The bourse is also starting to attract more listings this year after a wave of delistings from 2020.



It has so far had two listings on its main board, second-hand vehicle trader WeBuyCars and poultry producer Rainbow Chicken. Pick n Pay&#8217;s discount grocery retailer Boxer is expected to list soon.



Medical cannabis company Cilo Cybin also listed on the exchange&#8217;s Alternative Echange for smaller companies as a Special Purpose Acquisition Vehicle (SPAC).



($1 = 18.3538 rand)



(Reporting by Sfundo Parakozov; Editing by Emelia Sithole-Matarise)

5D3DBSOEX5LDZFG3HNK6BULCXQ

Johannesburg Stock Exchange’s half-year profit slips on lower equity trading

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



KAMPALA, Aug 7 (Reuters) &#8211; Uganda&#8217;s central bank reduced its key lending rate by 25 basis points to 10.00% on Wednesday, saying a recovery in the shilling currency had led to an improvement in the inflation outlook.



The shilling hit a record low in late February, but has risen by more than 6% against the U.S. dollar since then, meaning there is less risk that a recent rise in inflation will prove to be persistent.



Inflation rose to 4.0% year-on-year in July, still below the central bank&#8217;s 5% medium-term target but up from 2.8% in January.



&#8220;The MPC (Monetary Policy Committee) noted that &#8230; the adverse impact of the past external shocks has abated and there has been some progress in moderating risks of inflation persistence,&#8221; Central Bank Deputy Governor Michael Atingi-Ego told a news conference.



&#8220;The inflation projection has been revised slightly downwards relative to the June 2024 forecast &#8230; largely due to a lesser depreciated shilling exchange rate.&#8221;



Atingi-Ego attributed the recent uptick in inflation to sectors such as passenger transport, accommodation, sports and recreation.



He said the Bank of Uganda expected inflation to continue rising moderately in the next four months due to seasonal factors, but to stabilise around the target of 5% by the first quarter of 2025.



At the bank&#8217;s last monetary policy meeting in June it expected inflation to only stabilise around 5% in the second half of next year.



Atingi-Ego noted there had been a pickup in Uganda&#8217;s economic growth, which averaged 6.7% in annual terms in the last two quarters of fiscal year 2023/24 compared with 5.3% growth in the previous two quarters.



The bank&#8217;s growth forecast for the 2024/25 fiscal year that started in July remains unchanged, at between 6.0% and 6.5%.



&#8220;It was appropriate to reduce slightly the degree of monetary policy restrictiveness,&#8221; Atingi-Ego said.



(Writing by Bhargav Acharya; Editing by Aexander Winning and David Holmes)

GettyImages-924883576-1

Uganda cuts key rate as shilling recovery helps inflation outlook

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-scaled.jpg" alt="" class="wp-image-516139" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A truck exits the mine after collecting ore from 516 metres below the surface at the Chibuluma copper mine in the Zambian copperbelt region, January 17, 2015. REUTERS/Rogan Ward/File Photo</figcaption></figure>



LUSAKA, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s proposed minerals regulation law could deter investment and deliver a &#8220;fatal blow&#8221; to plans to raise annual copper output to 3 million tons, two mining bodies said on Wednesday.



Zambia&#8217;s government has proposed a new Minerals Regulation Commission Bill, which seeks to &#8220;regulate and monitor the development and management of mineral resources&#8221; in Africa&#8217;s second-biggest copper producer.



But Zambia&#8217;s Chamber of Mines (ZCM), the main mining industry body, and the Association of Zambian Mineral Exploration Companies (AZMEC) said in a joint statement some parts of the proposed law &#8220;will drive up the perception of investment risk in Zambia&#8221;.



&#8220;Unfortunately, due to&#8230;the prospect of forced &#8216;free carry&#8217; acquisitions by the state of stakes in new ventures, this Bill will seriously undermine property rights,&#8221; the mining industry bodies said.



&#8220;The Bill also grants unaccountable and arbitrary discretionary decision making powers to individual regulators, which present obvious future corruption risks,&#8221; they added.



Zambia&#8217;s mines ministry was not immediately available to comment.



President Hakainde Hichilema&#8217;s government, elected in 2021, has sought to repair the country&#8217;s investment reputation and ramp up copper production, which was impacted by the seizure of Konkola Copper Mines from Vedanta by the previous administration in 2019.



The new government has handed the company back to Vedanta as it pushes to raise copper output to 3 million tons per year within the next decade to take advantage of growing demand for the metal, which is key to the global shift to cleaner sources of energy.



Copper output slumped to 698,000 tons in 2023 from 763,000 tons the previous year, data from the Zambia Chamber of Mines showed.



Mining majors such as Barrick Gold and First Quantum Minerals are investing billions of dollars into their Zambian copper assets.



The United Arab Emirates&#8217; International Resources Holding (IRH) has pledged to invest $1.1 billion to expand output at Mopani Copper Mines after buying a 51% stake in the company previously owned by Glencore.



(Reporting by Chris Mfula; Writing by Nelson Banya; Editing by Angus MacSwan)

A truck exits the mine after collecting ore underground at the Chibuluma copper mine

Zambia’s proposed mining law bad for investment, miners say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank governor said on Wednesday that the country&#8217;s shilling currency had remained stable in the face of protests sparked by a plan to hike taxes and should shrug off recent credit rating downgrades.



Governor Kamau Thugge was speaking a day after the Central Bank of Kenya cut its benchmark lending rate by 25 basis points, the first cut in more than four years.



It was the first interest rate decision since President William Ruto bowed to pressure from protesters, scrapping the tax hikes and overhauling his cabinet amid calls for him to resign.



Rating agencies Moody&#8217;s and Fitch downgraded Kenya&#8217;s sovereign ratings following the withdrawal of the tax measures, saying the move could complicate the East African country&#8217;s fiscal consolidation efforts.



&#8220;We don&#8217;t expect that there&#8217;ll be much impact (on the shilling) &#8230; because of these downgrades,&#8221; Thugge said, adding that the central bank was seeing more foreign exchange coming into the economy than going out.



The shilling is up more than 20% against the dollar this year, after a rally that started in February when the government issued a new $1.5 billion Eurobond to buy back most of a $2 billion bond whose maturity in June had unnerved investors.



The country currently has no plans for another $1 billion bond buyback before the end of the year, the governor said, despite the World Bank saying in June this was possible.



&#8220;What we are trying as much as possible is trying to talk to our development partners, both bilaterals as well as multilaterals, to get additional external financing,&#8221; Thugge said.



Kenya has not made a decision on its future engagements with the International Monetary Fund after the current lending programme agreed in 2021 expires next year, the governor added.



The Central Bank Rate was reduced to 12.75% on Tuesday after inflation fell to 4.3% year on year in July, below the midpoint of the government&#8217;s preferred range of 2.5%-7.5%.



Kenya&#8217;s economy is projected to grow 5.5% in 2025, at a similar rate to this year&#8217;s 5.4% growth, Thugge said.



(Reporting by Bhargav Acharya and George Obulutsa; Editing by Alexander Winning, William Maclean)

ANCK25OQIFMHTJYACOM5XU5T24

Kenya currency should shrug off rating downgrades, cenbank governor says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 7 (Reuters) &#8211; Kenya&#8217;s shilling was stable against the U.S. dollar on Wednesday, LSEG data showed.



At 0807 GMT, the shilling traded at 129.00/130.00 per dollar, the same as Tuesday&#8217;s closing rate.



On Tuesday the central bank lowered its benchmark lending rate to 12.75% from 13.00% previously, saying there was scope to ease policy gradually as inflation had fallen below the midpoint of its target range.



(Reporting by George Obulutsa; Editing by Alexander Winning)

Kenyan shilling stable versus dollar – LSEG data

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1242" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy is projected to grow 5.5% in 2025, at a similar rate to this year&#8217;s 5.4% growth, central bank Governor Kamau Thugge said on Wednesday.



The forecast for next year&#8217;s growth comes a day after the Central Bank of Kenya cut its benchmark lending rate by 25 basis points, the first rate cut in about four years.



The Central Bank Rate was reduced to 12.75% after inflation fell below the midpoint of the government&#8217;s preferred range of 2.5%-7.5%.



(Reporting by George Obulutsa and Bhargav Acharya; Editing by Alexander Winning)

A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;The South African rand firmed in early trade on Wednesday, as risk sentiment improved and markets awaited jobless claims data out of the United States on Thursday for hints on the future interest rate path of the world&#8217;s biggest economy.



At 0626 GMT, the rand traded at 18.41 against the dollar, about 0.45% stronger than its previous close.



The rand is trading firmer &#8220;as risk sentiment improves and EM (emerging market) currencies all show some gains,&#8221; Andre Cilliers, currency strategist at TreasuryONE, said.



&#8220;Tomorrow&#8217;s U.S. jobless claims number will now be sharply in focus for confirmation of the weakening U.S. labour market,&#8221; Cilliers added.



Friday&#8217;s weak U.S. July payrolls report stoked recession worries earlier this week and led to a plunge in global equities on Monday, with traders fleeing to safe havens.



But U.S. central bank policymakers pushed back on Monday against the notion that the economy is close to recession and indicated the Federal Reserve would need to cut rates to avoid such an outcome.



Like other risk-sensitive currencies, the rand often takes its cue from global drivers such as U.S. economic data and monetary policy in addition to local factors.



On the domestic front, South Africa&#8217;s net foreign reserves rose to $59.165 billion at the end of July from $58.437 billion in June, central bank data showed on Wednesday.



South Africa&#8217;s benchmark 2030 government bond was also firmer in early deals, with the yield down 2.5 basis points to 9.35%.



(Reporting by Tannur Anders; Editing by Andrew Heavens)

Illustration photo of South African rand

South African rand firms on improved sentiment, focus on US 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/2024/06/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 7 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcements, equity and currency market moves may affect South African markets on Wednesday.



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



South Africa&#8217;s net foreign reserves rose to $59.165 billion at the end of July from $58.437 billion in June, central bank data showed on Wednesday.



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



The Johannesburg Stock Exchange will publish its half-year results.



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



The South African rand held steady on Tuesday as global risk sentiment improved after tanking on Monday amid fears of a possible recession in the United States.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded about down 0.6%. South Africa&#8217;s benchmark 2030 government bond was slightly weaker, with the yield up 1.5 basis point to 9.375%.



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



Asian share markets extended their rally on Wednesday, led by another bounce in the Nikkei, as the Bank of Japan unexpectedly turned cautious on rate hikes amidst market volatility, which led to a sharp fall in the yen.



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



The S&amp;P 500 and Nasdaq ended 1% higher on Tuesday as investors jumped back into the market a day after a dramatic sell-off, with recent comments by Federal Reserve officials easing U.S. recession worries.



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



Gold prices edged lower on Wednesday as the U.S. dollar and Treasury yields strengthened, while traders awaited further cues to gauge the size of the Federal Reserve&#8217;s likely September interest rate cut.



&#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; SA less attractive to investors than Africa&#8217;s islands



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



&#8211; What this week&#8217;s turmoil may mean for SA interest rates



(Compiled by Tannur Anders; editing by David Evans)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 7

<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 7 (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>



*Uganda&#8217;s central bank is due to announce its latest benchmark lending rate decision.



*Kenya&#8217;s central bank governor is due to hold a news conference, a day after the bank announced its latest lending rate decision.



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



Asian share markets extended their rally on Wednesday, led by another bounce in the Nikkei, as the Bank of Japan unexpectedly turned cautious on rate hikes amidst market volatility, which led to a sharp fall in the yen.



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



Oil prices slipped in early Asian trading on Wednesday following a brief rebound in the previous session after industry data showed an unexpected build in U.S. crude oil and gasoline inventories, offsetting global oil supply concerns.



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



The South African rand held steady on Tuesday as global risk sentiment improved after tanking on Monday amid fears of a possible recession in the United States.



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



Nigeria&#8217;s oil output has risen to between 1.6 million and 1.7 million barrels per day after the government beefed up security to curb crude theft, Chief of Naval Staff Emmanuel Ikechukwu Ogalla said on Tuesday.



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



Kenya&#8217;s shilling eased slightly on Tuesday, and traders said it was expected to hold steady during the session, with dollar demand from various sectors being matched by supply.



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



Kenya&#8217;s central bank cut its benchmark lending rate by 25 basis points on Tuesday, saying there was scope to ease policy gradually as inflation had fallen below the midpoint of its target range.



<h2 class="wp-block-heading" id="h-ethiopia-forex">ETHIOPIA FOREX</h2>



Ethiopia&#8217;s central bank said on Tuesday that it would conduct a special foreign exchange auction on Aug. 7.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 7

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1374" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/H7HVUG7OLJM7TMXBKROUDBYZ3E-scaled.jpg" alt="" class="wp-image-516063" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/H7HVUG7OLJM7TMXBKROUDBYZ3E-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/H7HVUG7OLJM7TMXBKROUDBYZ3E-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/H7HVUG7OLJM7TMXBKROUDBYZ3E-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/H7HVUG7OLJM7TMXBKROUDBYZ3E-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/H7HVUG7OLJM7TMXBKROUDBYZ3E-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/H7HVUG7OLJM7TMXBKROUDBYZ3E-1536x1031.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa&#8217;s President Cyril Ramaphosa gestures after signing into law a national health bill that aims to provide universal coverage to South Africans, at the Union Building in Pretoria, South Africa, May 15, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;South Africa is moving ahead with implementation of the National Health Insurance (NHI) bill, President Cyril Ramaphosa said, despite strong opposition from within and outside government.



The NHI aims to provide universal coverage through a major overhaul of South Africa&#8217;s two-tier system. Ramaphosa signed the bill right before the May election in which his African National Congress lost its parliamentary majority.



&#8220;We have highlighted the social and economic value of affordable, accessible, quality health care that is available equally to all South Africans,&#8221; Ramaphosa said in a speech on Tuesday evening, at the closing of an ANC policy meeting.



&#8220;We will therefore proceed with the implementation of the National Health Insurance.&#8221;



Speaking earlier on Tuesday, Health Minister Aaron Motsoaledi said that the section of the bill which outlines transitional mechanisms would be implemented &#8220;immediately&#8221;.



This includes setting up advisory committees and amending other health-related laws to be in line with the NHI.



The legislation will gradually limit the role of private insurance in South Africa, create a new public fund to provide free access for citizens, and set the fees and prices that private healthcare suppliers can charge for NHI-funded benefits.



Supporters call it a generational change to reverse inequality dating to the apartheid era. But opponents, including big local health insurers, say the proposed funding model won&#8217;t work.



Motsoaledi said he would listen to concerns from stakeholders and help people understand the NHI.



&#8220;The real poor people who are (set to be) beneficiaries haven&#8217;t spoken,&#8221; he said. &#8220;Nobody&#8217;s carrying their voice.&#8221;



One opponent of the bill is the pro-business Democratic Alliance (DA) party, which formerly led the opposition and has now joined the ANC in government.



DA leader John Steenhuisen said last month that the NHI continued to be a sticking point for the coalition government and that discussions on it would continue.



Motsoaledi said the bill would be implemented in phases over years and acknowledged that legal challenges could delay its roll-out.



(Reporting by Nellie Peyton; Editing by Kim Coghill)

South Africa’s Ramaphosa to signs health insurance bill into law

South Africa moves to implement national health bill despite resistance

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107193967-1676336822877-gettyimages-1240268939-AFP_32927KV.jpeg" alt="" class="wp-image-516045" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107193967-1676336822877-gettyimages-1240268939-AFP_32927KV.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107193967-1676336822877-gettyimages-1240268939-AFP_32927KV-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107193967-1676336822877-gettyimages-1240268939-AFP_32927KV-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107193967-1676336822877-gettyimages-1240268939-AFP_32927KV-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107193967-1676336822877-gettyimages-1240268939-AFP_32927KV-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">The Japanese flag flutters over the Bank of Japan (BoJ) head office building (bottom) in Tokyo on April 27, 2022. Kazuhiro Nogi | Afp | Getty Images</figcaption></figure>



Bank of Japan Deputy&nbsp;Governor&nbsp;Shinichi Uchida said on Wednesday the central bank&nbsp;won’t&nbsp;raise&nbsp;interest&nbsp;rates&nbsp;when&nbsp;financial&nbsp;markets&nbsp;are&nbsp;unstable.



The recent strengthening of the yen would affect the&nbsp;BOJ’s policy decision because it reduces upward pressure on import prices, and therefore overall inflation, Uchida said.



Stock market volatility would also influence the central bank’s decision by affecting corporate activity and consumption, he said.



“As we’re seeing sharp volatility in domestic and overseas financial&nbsp;markets, it’s necessary to maintain current levels of monetary easing for the time being,” Uchida said in a speech to business leaders in the northern Japan city of Hakodate.



The&nbsp;BOJ’s interest rate path will “obviously” change if market volatility affects its economic and price outlook, its view on risks, and the likelihood of durably achieving its 2% inflation target, he said.



“We&nbsp;won’t&nbsp;raise&nbsp;interest&nbsp;rates&nbsp;when&nbsp;financial&nbsp;markets&nbsp;are&nbsp;unstable,” Uchida said.

107193967-1676336822877-gettyimages-1240268939-AFP_32927KV

Bank of Japan won’t raise rates when markets unstable, deputy governor says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U7UJE54KWRKWNHMXF7IAKVVUWM-820x548.jpg" alt="" class="wp-image-515813" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U7UJE54KWRKWNHMXF7IAKVVUWM-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U7UJE54KWRKWNHMXF7IAKVVUWM-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U7UJE54KWRKWNHMXF7IAKVVUWM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U7UJE54KWRKWNHMXF7IAKVVUWM-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U7UJE54KWRKWNHMXF7IAKVVUWM-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/U7UJE54KWRKWNHMXF7IAKVVUWM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Township residents carry bottles collected from a municipal water tanker in drought-stricken Graaff-Reinet, South Africa, November 17, 2019. Picture taken November 17, 2019. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



HARARE, Aug 6 (Reuters) &#8211; The U.N. World Food Programme has faced challenges in raising $400 million for its southern Africa drought response, collecting just one-fifth of what it needs to help seven countries in the region, a WFP spokesperson said on Tuesday.



The funding environment had become increasingly difficult as&nbsp;drought has dramatically raised the region&#8217;s food needs, Thomson Phiri told Reuters.



Southern Africa is experiencing its worst drought in decades, forcing Zambia, Malawi and Zimbabwe to declare states of disaster. The drought was a result of the El Niño climate phenomenon,&nbsp;which can change world weather patterns, bring extreme seasonal temperatures, rainfall or dry spells and hurt crop yields.



About 70% of the Southern African population that relies on rain-fed agriculture had their harvests &#8220;wiped out&#8221; by lack of rains, Phiri told Reuters in May.



The WFP aims to&nbsp;use the proceeds raised so far to&nbsp;feed&nbsp;5.9 million out of 27&nbsp;million&nbsp;in the region who are food-insecure&nbsp;until the next harvest season in 2025, and had started sourcing white grain from Tanzania, South Africa and Latin America to feed regional communities.



Despite notable donor support, current food needs were &#8220;exceptionally high and outpacing available resources,&#8221; during a historical drought, Phiri said.



Some donors have had to trim their aid budgets and &#8220;people in places such as southern Africa are now facing&nbsp;a double whammy where they are reeling both from the historic drought and severe funding cuts,&#8221; he said.



The UN&#8217;s climate crisis coordinator for the El Niño response, Reena Ghelani, called for urgent action.



&#8220;We are very worried,&#8221; Ghelani told Reuters last week. &#8220;In fact we are seeing a sharp increase in the number of people going hungry.&#8221;



Ghelani warned of a prolonged dry spell and frequent droughts across the region in coming years as a result of climate change.



(Reporting by Nyasha Chingono; Editing by Tannur Anders and Bernadette Baum)

U7UJE54KWRKWNHMXF7IAKVVUWM

UN agency raises just 20% of needed southern Africa drought aid in tough funding environment

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/CXMYWJHKXNNW7EHIFVBPT2LDKE-820x550.jpg" alt="" class="wp-image-515795" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/CXMYWJHKXNNW7EHIFVBPT2LDKE-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/CXMYWJHKXNNW7EHIFVBPT2LDKE-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/CXMYWJHKXNNW7EHIFVBPT2LDKE-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/CXMYWJHKXNNW7EHIFVBPT2LDKE-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/CXMYWJHKXNNW7EHIFVBPT2LDKE-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/CXMYWJHKXNNW7EHIFVBPT2LDKE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An armoured military vehicle parks on a street, during anti-government demonstrations against bad governance and economic hardship, in Abuja, Nigeria August 5, 2024. REUTERS/Marvellous Durowaiye</figcaption></figure>



ABUJA, Aug 6 (Reuters)&nbsp;&#8211;&nbsp;Nigeria has detained some tailors for making Russian flags that were waved during anti-government protests this week in northern states, the state secret police said, in a move that underscores concerns about increased Russian activity in western Africa.



The Department of State Services (DSS) also said in a post on X that it had detained some of the tailors&#8217; &#8220;sponsors&#8221;, without elaborating. It said an investigation was ongoing. It did not say how many tailors or &#8220;sponsors&#8221; had been detained.



Nigeria&#8217;s Chief of Defence Staff, General Christopher Musa, described the brandishing of a foreign flag during anti-government protests as a &#8220;treasonable offence&#8221; after he held security talks with President Bola Tinubu on Monday.



&#8220;We have identified those (sponsoring them) and we are going to take serious action against that,&#8221; Musa told reporters, also without elaborating.



Hundreds of thousands of Nigerians have been protesting since Aug. 1 against Tinubu&#8217;s painful economic reforms that have seen a partial end to petrol and electricity subsidies, currency devaluation and inflation touching three-decade highs.



The protests have now ebbed after a deadly police crackdown.



In the northern states of Borno, Kaduna, Kano and Katsina, protesters were seen waving hundreds of Russian flags with some calling for a military takeover.



&#8220;We are waving the Russian flag because Tinubu&#8217;s government is not listening to us. Russian presidents always support African nations&#8217; development, unlike other nations,&#8221; Lawal Kodo, a 28-year old protester in Kano, told Reuters on Monday.



<h2 class="wp-block-heading" id="h-russia-not-involved">RUSSIA &#8216;NOT INVOLVED&#8217;</h2>



The Russian embassy in Nigeria denied any involvement.



&#8220;The Government of the Russian Federation as well as any Russian officials are not involved in these activities and do not coordinate them in any way,&#8221; the embassy said in a statement issued late on Monday.



The protests in Nigeria, Africa&#8217;s most populous country, come amid increased Western concerns over Russian security ties with the region, including countries such as Mali, Burkina Faso and Niger where military leaders have seized power in coups.



Security experts said many Nigerian protesters believe that the cost of living crisis is the result of reforms dictated to Tinubu by Western institutions such as the International Monetary Fund and the World Bank.



&#8220;The Russian flags that appeared during the protests in northern states, and the calls for a military coup, reflect discontent over the government&#8217;s policies rather than showcasing support for a Russia-backed military government,&#8221; said Mucahid Durmaz, Senior Analyst at Verisk Maplecroft, a global risk intelligence firm.



(Additional reporting by Ahmed Kingimi in Borno, Felix Onuah in Abuja and Garba Muhammad in Kaduna; Edited by Elisha Bala-Gbogbo and Gareth Jones)

Nigerians continue to protest against economic hardship

Nigeria detains tailors who made Russian flags for anti-government protests

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Aug 6 (Reuters)&nbsp;&#8211;&nbsp;Emerging market assets recouped some losses on Tuesday after a torrent of selling in the prior session, though a stronger dollar and continued concerns over global economic growth kept gains in check.



MSCI&#8217;s index of emerging market stocks rose 1.2% after its worst day in over two years on Monday, when a combination of concerns about a U.S. economic recession, disappointing tech earnings and geopolitical worries saw investors flee risk assets.



Emerging market stocks in Asia outside Japan rose 1%, helped by a sharp recovery in the Nikkei.



Still, some caution remained, with investors pricing in an 80% chance of a 50 basis point interest rate cut from the Federal Reserve in September, down from 86% on Monday. Policy easing in the U.S. typically benefits emerging market stocks and currencies.



&#8220;Large stock market movements often mean that investors are looking for answers to one or more questions, so even if the day looks like the situation is improving, it is best to assume that it will continue to be nervous for some time to come,&#8221; Marcus Widén, economist at SEB said.



The Japanese yen was a key beneficiary of risk aversion on Monday, which saw an unwinding of carry trades that hit many high-yielding emerging market currencies. The yen slipped on Tuesday, though a rebound in the U.S. dollar continued to weigh on EM currencies.



&#8220;Higher interest rates in Japan and expectations of greater and faster expectations of interest rate cuts in the U.S. changed the conditions for carry trades,&#8221; Widen added.



Turkey&#8217;s lira touched a fresh record low of 33.47 to the dollar, while the South African rand slipped 0.2%.



Malaysia&#8217;s ringgit lost over 1% against the dollar after surging over 2% on Monday. The Mexican peso was also down on the day after the carry trade favourite fell to a two-year low.



Among equities, Turkey&#8217;s Bist 100 rose 1.4% and the Prague bourse rose after falling over 4% the session prior.



Saudia Arabia&#8217;s benchmark index gained 1.8%, with Saudi Aramco rising 2.2% after reporting a second-quarter net profit of 109.01 billion riyals.



Central European currencies weakened against the euro, with the Czech crown, Polish zloty and Hungarian forint slipping between 0.1% and 0.3%.



Meanwhile the International Monetary Fund said it was &#8220;fully committed to Bangladesh&#8221; after Prime Minister Sheikh Hasina resigned and fled the country following student-led protests.



Kenya&#8217;s shilling edged down 0.2% against the dollar ahead of a monetary policy announcement.



(Reporting by Lisa Pauline Mattackal in Bengaluru; Editing by Christina Fincher)

Stock market report. 3d illustration

EM stocks recover after bruising selloff, dollar recovery weighs on currencies

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



NAIROBI, Aug 6 (Reuters) &#8211; Kenya&#8217;s shilling eased slightly on Tuesday, and traders said it was expected to hold steady during the session, with dollar demand from various sectors being matched by supply.



At 0730 GMT, commercial banks quoted the shilling at 129.50/130.50 per dollar, compared with Monday&#8217;s closing rate of 129.25/130.25.



(Reporting by George Obulutsa; Editing by Duncan Miriri)

Kenyan shilling eases slightly; expected to hold steady

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1394" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-scaled.jpg" alt="" class="wp-image-515686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-1536x1046.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers perform transactions on Nedbank automated teller machine (ATM) at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Aug 6 (Reuters) &#8211; South Africa&#8217;s Nedbank Group reported an 8% rise in half-year profit on Tuesday, supported by lower impairment charges and solid growth in non-interest revenue (NIR).



Nedbank upwardly revised its full-year forecast for NIR and new Chief Executive Jason Quinn told Reuters the bank should benefit as South Africa&#8217;s new national unity government has spurred cautious optimism in financial markets and could see companies spending meaningfully again.



&#8220;The national agenda on infrastructure is clear and we are an infrastructure player,&#8221; Quinn, who became CEO in May, said in an interview. &#8220;Companies are geared to take on some projects and taking on some debt.&#8221;



Nedbank, South Africa&#8217;s fourth biggest bank by assets, said headline earnings rose to 7.9 billion rand ($427.2 million) in the six months ended June 30.



NIR increased by 7% to 14.4 billion rand, slightly ahead of the group&#8217;s full-year guidance of above mid-single-digit growth. This was thanks to good growth in commission and fees, a strong trading performance and higher equity investment income, the bank said.



Nedbank now expects NIR growth for 2024 to be in the upper-single digits, buoyed by ongoing corporate deals and the acquisition of fleet management business Eqstra.



CEO Quinn is betting on an improving South African economy as inflationary pressures ease and the central bank is expected to start cutting interest rates in September for the first time since July 2020.



In the first half of the year, Nedbank&#8217;s net interest income (NII) &#8211; the amount banks earn from loans minus what they pay on deposits &#8211; grew marginally by 2% to 20.8 billion rand, below initial management expectations of above mid-single digit growth.



For 2024, NII growth is now guided to be below mid-single digits.



Nedbank&#8217;s loan growth increased by 4% to 913 billion rand, with stronger growth expected in the second half &#8220;as lower interest rates and inflation start benefiting retail credit growth and as wholesale clients start drawing down on renewable energy deals,&#8221; the bank said.



&#8220;Our best case says credit extension could grow by 6%,&#8221; Quinn told Reuters.



The group&#8217;s credit impairment charge decreased by 12% to 4.7 billion rand. Its credit loss ratio &#8211; a measure of bad loans as a percentage of total loans &#8211; of 104 basis points remained elevated as household finances remained under pressure.



But it improved from the 121 basis points reported in the same first half of 2023.



($1 = 18.4912 rand)



(Reporting by Nqobile Dludla; Editing by Jacqueline Wong, Janane Venkatraman and Susan Fenton)

Customers perform transactions on Nedbank automated teller machine

Nedbank raises non-interest revenue growth guidance after sold first half

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-scaled.jpg" alt="" class="wp-image-515689" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The Mobius II first generation SUV by Kenyan car maker Mobius Motors is seen in the company&#8217;s show room in Nairobi, Kenya March 6, 2019. Picture taken March 6, 2019. REUTERS/Baz Ratner/File Photo</figcaption></figure>



NAIROBI, Aug 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s Mobius Motors, which started making rugged, low-priced SUVs designed for Africa&#8217;s roads a decade ago, has decided to stop operating due to financial challenges, a company statement and a shareholder source said on Tuesday.



Mobius, founded by a London-born investor who experienced the continent&#8217;s bumpy roads while working for a forestry company in Kenya, found tax hikes in the East African country meant its business model was no longer sustainable, the source at one of the company&#8217;s shareholders told Reuters.



&#8220;The business could not sustain itself. There were some challenges,&#8221; said the source, asking not to be named.



The owners considered moving production to a different country, but that option was rejected due to the logistical challenges of moving the existing assembly line from Nairobi, the shareholder added.



Mobius initially produced a boxy, no-frills SUV designed for the modest budgets of African consumers, going for 1.3 million Kenyan shillings, equivalent to about $13,000 at the time and roughly half the price of an imported second-hand SUV.



It later launched updated editions with extra features.



Mobius, whose investors include Britain&#8217;s Playfair Capital, was part of a push by investors and governments on the continent to create jobs by launching home-grown vehicle manufacturers. They included Uganda&#8217;s Kiira Motors, Ghana&#8217;s Kantanka and Nigeria-based Innoson Motors.



At the same time, global automakers such as Japan&#8217;s Toyota Motor Corp and Germany&#8217;s Volkswagen AG also boosted their investments in markets including Kenya and Rwanda to tap into growing economies and rising consumer demand.



They all, however, faced the same challenges: stiff competition from second-hand imports from abroad.



Creditors will meet on Aug. 15 to vote on the voluntary liquidation, the company &#8211; which was not listed &#8211; said in the statement that appeared in newspapers.



(Reporting by Duncan Miriri; Editing by Helen Popper)

Reuters

Johannesburg Stock Exchange’s half-year profit slips on lower equity trading

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Kenyan shilling stable versus dollar – LSEG data

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

South African rand firms on improved sentiment, focus on US data

South African Markets – Factors to watch on Aug 7

African Markets – Factors to watch on Aug 7

South Africa moves to implement national health bill despite resistance

Bank of Japan won’t raise rates when markets unstable, deputy governor says

UN agency raises just 20% of needed southern Africa drought aid in tough funding environment

Nigeria detains tailors who made Russian flags for anti-government protests

EM stocks recover after bruising selloff, dollar recovery weighs on currencies

Kenyan shilling eases slightly; expected to hold steady

Nedbank raises non-interest revenue growth guidance after sold first half

Kenya’s Mobius, maker of rugged cars for African roads, calls it a day

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Reuters

Johannesburg Stock Exchange’s half-year profit slips on lower equity trading

Uganda cuts key rate as shilling recovery helps inflation outlook

Zambia’s proposed mining law bad for investment, miners say

Kenya currency should shrug off rating downgrades, cenbank governor says

Kenyan shilling stable versus dollar – LSEG data

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

South African rand firms on improved sentiment, focus on US data

South African Markets – Factors to watch on Aug 7

African Markets – Factors to watch on Aug 7

South Africa moves to implement national health bill despite resistance

Bank of Japan won’t raise rates when markets unstable, deputy governor says

UN agency raises just 20% of needed southern Africa drought aid in tough funding environment

Nigeria detains tailors who made Russian flags for anti-government protests

EM stocks recover after bruising selloff, dollar recovery weighs on currencies

Kenyan shilling eases slightly; expected to hold steady

Nedbank raises non-interest revenue growth guidance after sold first half

Kenya’s Mobius, maker of rugged cars for African roads, calls it a day

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