<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-1161864874-820x547.jpg" alt="" class="wp-image-505638" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-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 6 (Reuters)&nbsp;&#8211;&nbsp;The South African rand clawed back ground in early trade on Tuesday as risk sentiment improved, after tanking on Monday on fears of a possible recession in the United States.



At 0649 GMT, the rand traded at 18.45 against the dollar, about 0.4% firmer than its previous close.



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



&#8220;The rand opened below the R18.50 handle this morning after risk sentiment improved in the early morning hours,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



&#8220;We will still take our cues from global risk sentiment and could expect volatility to remain for the days to come,&#8221; Cilliers added.



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



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



South Africa&#8217;s benchmark 2030 government bond was also firmer in early deals, with the yield down 3.5 basis points to 9.325%.



(Reporting by Tannur Anders; Editing by Christina Fincher)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand claws back losses as risk sentiment improves

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



JOHANNESBURG, Aug 6 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcements, equity and currency market moves may affect South African markets on Tuesday.



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



South Africa&#8217;s government will hold its weekly auction of long-term bonds.



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



Nedbank Group recorded an 8% rise in half-year headline earnings supported by good non-interest revenue growth, a lower impairment charge and tight cost control.



AngloGold Ashanti will release first-half results.



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



South African stocks and the rand fell on Monday as global investor sentiment towards riskier assets soured on growing fears over a possible recession in the United States.



On the Johannesburg Stock Exchange, the Top-40 index was down about 2.3%, mirroring a sell-off on global stock markets.



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



Japanese stocks jumped at the open on Tuesday, underpinning a recovery across battered Asian share markets, after central bank officials said all the right things to soothe investor nerves.



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



U.S. stocks ended with steep losses on Monday, leaving the Nasdaq and S&amp;P 500 down at least 3% each as the market extended last week&#8217;s sell-off amid U.S. recession worries and as Apple shares fell sharply on news that a big investor had cut its stake.



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



Gold prices edged higher on Tuesday after comments from Federal Reserve officials reinforced expectations of bigger U.S. interest rate cuts later this year.



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



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



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



&#8211; Treasury eases tough-love approach to Transnet



&#8211; Wind power sector ‘deeply concerned’ after regulator rejects Eskom’s reservation request



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 6

<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 6 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.



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



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



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



Japanese stocks jumped at the open on Tuesday, underpinning a recovery across battered Asian share markets and even triggering circuit breakers in some, after central bank officials said all the right things to soothe investor nerves.



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



Oil prices rebounded by more than 1% on Tuesday, paring previous session&#8217;s losses, on supply concerns amid an escalating Middle East conflict, stronger U.S. services sector data and a cut in production at Libya&#8217;s Sharara oilfield.



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



South African stocks and the rand tanked on Monday as global investor sentiment soured towards riskier assets due to growing fears over a possible recession in the United States.



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



Protests in Nigeria over the soaring cost of living ebbed on Monday, with only a few hundred people turning out in major cities following a deadly crackdown by security forces since the demonstrations began last week.



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



Kenya&#8217;s shilling firmed slightly in early trade on Monday and it was expected to strengthen further, fuelled by dollar inflows from the tea sector, traders said



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



Kenya&#8217;s private sector activity dropped in July, undermined by the effects of public protests against the government which hurt confidence in the economy and disrupted some business activity, a survey showed on Monday.



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



Police arrested 14 Ugandan opposition officials and supporters on Monday as they marched through their capital towards the Kenyan embassy to protest against Nairobi&#8217;s decision to detain and deport a group of their colleagues, local media said.



<h2 class="wp-block-heading" id="h-ivory-coast-cocoa">IVORY COAST COCOA</h2>



Cocoa arrivals at ports in top grower Ivory Coast had reached 1.668 million metric tons by August 4 since the start of the season on Oct. 1, down 26.8% from the same period last season, exporters estimated on Monday.



<h2 class="wp-block-heading" id="h-democratic-republic-of-congo-mining">DEMOCRATIC REPUBLIC OF CONGO MINING</h2>



China&#8217;s CMOC and other miners have applied for copper from Democratic Republic of Congo (DRC) to be registered for delivery against London Metal Exchange (LME) contracts, four sources with knowledge of the matter said.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 6

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1152" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w, 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-1-2-820x461.jpg 820w, 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" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><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 5 (Reuters)&nbsp;&#8211;&nbsp;South African stocks and the rand tanked on Monday as global investor sentiment soured towards riskier assets due to growing fears over a possible recession in the United States.



At 1206 GMT, the rand traded at 18.5825 against the dollar, about 1.7% weaker than its previous close and near a two-month low. The rand had lost more than 2% against the greenback in earlier trade.



On Johannesburg Stock Exchange, the Top-40 index was down about 2.3%, mirroring a sell-off on global stock markets.



Markets have been hit by Friday&#8217;s weak U.S. July payrolls report, which showed the unemployment rate had risen to 4.3%, stoking concerns the world&#8217;s biggest economy may be heading for a recession.



&#8220;The ongoing equity market correction provides a glimpse of the kind of volatility that can be expected through the months ahead &#8230; (but) it will eventually trigger more aggressive rate cuts in the world&#8217;s top economies,&#8221; said Danny Greeff, co-head of Africa at ETM Analytics.



Traders are pricing in a near 100% chance that the Federal Reserve will cut interest rates by a full 50 basis points in September to rescue growth, compared with an 11.5% chance a week earlier, according to the CME FedWatch tool.



Rate cuts in the world&#8217;s biggest economies should lead to corrections in overvalued major currencies, Greeff added.



&#8220;The rand is thus still expected to strengthen through the coming quarters, but it will be far from smooth sailing,&#8221; he said.



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



South Africa&#8217;s benchmark 2030 government bond was also weaker, as the yield gained 9.5 basis points to 9.345%.



(Reporting by Tannur Anders;Editing by Bhargav Acharya and Helen Popper)

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

South African rand, stocks sink as US recession fears hit riskier assets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-820x549.jpg" alt="" class="wp-image-515415" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A customer uses an ATM outside a branch of South Africa&#8217;s First National Bank (FNB) at a mall in Soweto, South Africa, December 13, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South African banks report their half-year earnings from Tuesday, with the focus on whether credit impairments have peaked and on the interest rate outlook, with rates expected to fall in September for the first time since July 2020.



Monetary policy has remained tight in Africa&#8217;s most industrialised economy with the Central Bank holding rates at 8.25% since May 2023 after a hiking cycle from late 2021.



Economists polled by Reuters predict a 25-basis-point cut in September followed by another in November.



However, the lag between the first rate cut and improved performance, such as sustained loan growth, will likely mean a limited impact on the banks&#8217; 2024 earnings, Charles Russell, head of financial research at SBG Securities said in a note.



It will be &#8220;more material in 2025 and beyond, especially when combined with likely incremental politically-driven reform.&#8221;



Keamogetse Konopi, equity research analyst at Citi said we would need to see a slowdown in inflation and more than 75 basis points of rate cuts for banks to feel the impact and for consumer pressures to ease.



This &#8220;would lead to lower defaults and better affordability for households but this is likely to only result in a gradual pick up in banks&#8217; appetite for extending credit to households,&#8221; Konopi added.



<h2 class="wp-block-heading" id="h-retail-growth">RETAIL GROWTH</h2>



Radebe Sipamla, senior investment analyst at Mergence Investment Managers said credit growth will likely come from corporate lending with retail loan growth likely to remain tepid.



Most banks are expecting growth in net interest income, although some, like Nedbank are expecting to report slower growth of below mid-single digits.



Inflationary pressures, high interest rates and regular power blackouts are taking a toll on the banks&#8217; most sensitive retail and small business customers, leading to defaults.



Some like Standard Bank are grappling with sovereign defaults.



To weather the storm, banks have boosted their provisions for credit losses and have been conservative in lending out money.



Banks&#8217; credit losses have increased after a series of interest rate hikes, with the majority of banks&#8217; credit loss ratios &#8211; a measure of bad loans as a percentage of total loans &#8211; above the top of their target ranges.



Although impairments are higher than anticipated in certain portfolios for some banks including FirstRand, Absa Group and Standard Bank, overall credit performance for others is trending better into the second half.



In addition to also scrutinising the impact of currency weakness on banks&#8217; Africa operations, investors &#8220;will also get an idea of the quantum of the provision that FirstRand will be setting aside for the UK&#8217;s Financial Conduct Authority investigation into the country&#8217;s vehicle finance market,&#8221; Sipamla said.



(Reporting by Nqobile Dludla; Editing by Sharon Singleton)

A customer uses an ATM, in Soweto

South African banks’ earnings in spotlight ahead of first rate cuts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="511" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-820x511.jpg" alt="" class="wp-image-515376" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-820x511.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-768x479.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-1536x958.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Displaced Congolese people are reflected on a puddle, at the Muchacha primary school, where they live after recently fleeing from their Shasha village following clashes between M23 rebels and the Armed Forces of the Democratic Republic of the Congo (FARDC) in Sake, the Democratic Republic of Congo February 6, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



KAMPALA, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;Nearly 100 police officers from the Democratic Republic of Congo fled to neighbouring Uganda over the weekend as fighting between M23 rebels and the military in Congo&#8217;s east intensified, a Ugandan military spokesperson said on Monday.



The officers arrived via the Ishasha border crossing in Kanungu district in southwestern Uganda, Major Kiconco Tabaro, a regional spokesperson for the Uganda People&#8217;s Defence Forces, said.



The 98 officers arrived with 43 guns and ammunition and were subsequently disarmed.



&#8220;They were fleeing fighting by M23 and other militias and the Congo military, there&#8217;s a lot of violence there and then there&#8217;s also hunger,&#8221; Tabaro said.



Over the past four days at least 2,500 more Congolese refugees have arrived in Uganda fleeing the raging violence across the border, he said.



&#8220;The main push factor is the intensifying violence and insecurity,&#8221; Tabaro said, adding that pregnant women, breastfeeding mothers and young children were among the refugees.



The M23 has been waging a fresh insurgency in Congo&#8217;s militia-plagued east since 2022. A United Nations report seen by Reuters last month said the Ugandan army has provided support to the Tutsi-led rebel group, a charge Uganda denies.



The U.N. has long accused Uganda&#8217;s neighbour Rwanda of backing the M23, which has repeatedly seized large parts of mineral-rich eastern Congo, allegations Rwanda denied.



Efforts by Congo&#8217;s military to push back the rebels have intensified over the past year with the use of drones and aircraft, although the rebels have still expanded territory under their control.



In June, the M23 seized the town of Kanyabayonga, whose location on high ground makes it a coveted gateway to other parts of eastern Congo&#8217;s North Kivu province.



Fighting in North Kivu has driven more than 1.7 million people from their homes, taking the total number of Congolese displaced by multiple conflicts to a record 7.2 million, according to U.N. estimates.



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

Thousands more flee rebel advance in eastern Congo

Congolese police officers flee to Uganda as fighting intensifies

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1403" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-scaled.jpg" alt="" class="wp-image-489318" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-1536x1052.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers push trolleys as they shop at a Pick n Pay store at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Pick n Pay&nbsp;PIKJ.J&nbsp;has raised 4 billion rand ($217 million) through a rights offer that was 106% oversubscribed, it said on Monday as the country&#8217;s third biggest grocery group looks to reduce its debt.



Pick n Pay, which has 2,279 stores across South Africa and seven countries across Africa said in a statement that 98.7% of shareholders exercised their rights and the group received 4.3 billion rand worth in excess applications.



Only 1.3% of excess rights offer shares were allocated to make up the 100% total subscription.



As the rights offer was fully subscribed after taking into account the excess applications, the joint underwriters were not required to subscribe for any rights offer shares, the company added.



&#8220;The successful conclusion of the rights offer demonstrates the market&#8217;s strong confidence in our iconic brand and in our turnaround strategy,&#8221; Chief Executive Sean Summers said.



&#8220;It marks a crucial first step in our recapitalisation plan, positioning the group well to fund long-term sustainable growth.&#8221;



The proceeds of the rights offer will be used to pay down debt, stabilise the retailer&#8217;s balance sheet and invest in Pick n Pay&#8217;s turnaround strategy, which includes closing or converting over 100 loss-making Pick n Pay supermarket stores.



Summers is tasked with reviving, through a turnaround and two-step recapitalisation plan, a retail business that has been losing market share to bigger rivals Shoprite SHPJ.J and others for more than a decade.



A deterioration in the performance of the group&#8217;s core Pick n Pay supermarket business resulted in a substantial trading loss in the Pick n Pay division of 1.5 billion rand and an overall loss at group level of 3.2 billion rand in the 52 weeks ended Feb. 25.



At the same time its net debt escalated to 6.1 billion rand in the year.



($1 = 18.4525 rand)



(Reporting by Nqobile Dludla; Editing by Emelia Sithole-Matarise)

FILE PHOTO: Pick n Pay sales grow but warns on extra costs from power cuts

South African grocer Pick n Pay’s rights offer oversubscribed

<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-1604532787-820x547.jpg" alt="" class="wp-image-506008" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan shilling and US dollars in the draw at a foreign exchange currency bureau in Kampala, Uganda, on Wednesday, Aug. 16, 2023. Uganda&#8217;s central bank said it stands ready to act if the World Bank&#8217;s decision to halt new funding over the country&#8217;s passage of anti-LGBTQ legislation impacts the currency further. Photographer: Luke Dray/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, Aug 5 (Reuters) &#8211; The Ugandan shilling was weaker on Monday due to increased demand for dollars from commercial banks, traders said.



At 0916 GMT, commercial banks quoted the shilling at 3,725/3,735, compared with Friday&#8217;s closing rate of 3,718/3,728.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan Economy Following Rate Cut

Ugandan shilling weakens due to increased commercial bank FX demand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-820x547.jpg" alt="" class="wp-image-515322" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian police personnel patrol the streets, amid ongoing anti-government demonstrations against bad governance and economic hardship, in Lagos, Nigeria August 4, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



LAGOS, Aug 5 (Reuters) &#8211; Protests in Nigeria over the soaring cost of living ebbed on Monday, with only a few hundred people turning out in major cities following a deadly crackdown by security forces since the demonstrations began last week.



Hundreds of thousands of people have taken to the streets in the capital Abuja, Lagos and other big cities during the protests against economic hardship and crime, which started on Thursday and were meant to continue until Aug. 10.



Amnesty International said at least 13 people have been killed in clashes with police since the start of the protests, which were dubbed &#8220;#10DaysOfRage&#8221;. Police put the death toll at seven, saying some of the fatalities were caused by accidents and an explosive device.



A tough police response and a call for a protest pause by President Bola Tinubu appeared to have dampened the demonstrations, which came weeks after data showed annual inflation hit a 28-year high of 34.19% in June.



In the commercial hub of Lagos, where demonstrations have been largely peaceful, about 100 people gathered at the protest venue singing and chanting &#8220;we are hungry&#8221;. In Abuja, there were no signs of protests at the main stadium where protesters have been gathering since Thursday.



In the north of the country, about 200 protesters were dispersed by armed security forces in Maiduguri, capital of Borno state, while in Katsina, security forces fired teargas at protesters who were chanting &#8220;hunger and insecurity are killing us&#8221;.



Curfews have been imposed in parts of the north, which has seen some of the largest and fiercest protests, and in the central state of Plateau.



On Sunday, Tinubu called for an end to violence and said he was always open to dialogue.



Tinubu, in office since May 2023, defended his economic reforms, which have included a partial end to costly petrol and electricity subsidies and devaluation of the naira, as necessary to reverse years of economic mismanagement.



(Additonal reporting by Ope Adetayo in Abuja, Ahmed Kingimi in Maiduguri and Hamza Ibrahim in Kano; Writing by Elisha Bala-Gbogbo;Editing by Angus MacSwan and Helen Popper)

Nigerians continue to protest against economic hardship

Nigerian protests fizzle out amid deadly police crackdown

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-820x429.jpg" alt="" class="wp-image-515283" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Employees pack bottles of Kenya Cane spirit from a conveyor belt at the East African Breweries Limited factory in Ruaraka factory in Nairobi, Kenya April 6, 2018. REUTERS/Thomas Mukoya </figcaption></figure>



NAIROBI, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector activity dropped in July, undermined by the effects of public protests against the government which hurt confidence in the economy and disrupted some business activity, a survey showed on Monday.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) fell to&nbsp;43.1 from 47.2 in June. Readings below 50.0 signal a contraction in activity.



&#8220;Protests in Kenya caused disruption to the private sector in July, leading to a marked deterioration in business conditions,&#8221; Stanbic Bank Kenya said in comments accompanying the survey.



&#8220;Political instability led to a reluctance among customers to commit to new orders, while the protests themselves in some cases blocked access to businesses and prevented them from opening.&#8221;



More than 50 people have been killed since mid-June, according to the government-funded Kenya National Commission on Human Rights (KNCHR), after protesters began taking to the streets to oppose tax increases in a now-shelved proposed law by President William Ruto&#8217;s government.



The youth-led marches continued after Ruto withdrew the tax legislation, with protesters calling for the president to resign and an end to what they called widespread government corruption and inefficiencies.



The intensity of the protests has since reduced.



&#8220;Private sector business activity deteriorated, reflecting ongoing demonstrations and unrest in parts of Kenya for some weeks now, discouraging output and new orders,&#8221; Christopher Legilisho, an economist at Stanbic Bank, said.



(Reporting by George Obulutsa; Editing by Susan Fenton)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ

Kenya private sector activity falls in July amid public unrest, PMI shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-820x517.jpg" alt="" class="wp-image-515280" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-820x517.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-768x484.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-1536x968.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker looks on next to loafs of bread at a spaza shop in Thembisa, on the East Rand, in South Africa, August 2, 2023. REUTERS/Siphiwe Sibeko/file photo</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity remained subdued in July amid weaker sales and increased supply-side pressures, a survey showed on Monday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) rose slightly to 49.3 in July from 49.2 in June, but remained below the 50 level which marks growth for the second month in a row.



South Africa&#8217;s private sector saw &#8220;new orders continuing to decline and supplier performance worsening as global transport issues and domestic port congestion hindered vendors,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



This forced businesses to cut their output at the sharpest rate in four months.



South Africa&#8217;s logistics firm Transnet suspended operations at some of its ports in July as strong winds and waves lashed parts of the country, setting back efforts to clear backlogs.



However, firms were upbeat that conditions would improve in the coming 12 months, Owen said.



&#8220;Many suggested that the stabilisation in the political landscape should lead to greater confidence and a pick-up in spending, while reduced load shedding (power cuts) and softer price pressures are also expected to support growth,&#8221; Owen added.



(Reporting by Tannur Anders; Editing by Susan Fenton)

A worker looks on next to loafs of bread

South Africa business activity contracts again in July, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Monday.



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



South Africa&#8217;s Johannesburg Stock Exchange will release data on foreigners&#8217; buying and selling of bonds and stocks during the previous week.



South Africa&#8217;s government will hold its weekly auction for Treasury bills.



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



The South African rand firmed on Friday as U.S. economic data showed a slowdown in jobs growth in July and a rise in the unemployment rate, boosting bets of a September rate cut in the world&#8217;s biggest economy and pressuring the dollar.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed about 1.7% down. South Africa&#8217;s benchmark 2030 government bond was stronger, with the yield down 9.5 basis points at 9.25%.



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



Share markets tumbled and bonds rallied in Asia on Monday as fears the United States could be heading for recession sent investors rushing from risk assets while wagering that rapid fire rate cuts will be needed to rescue growth.



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



U.S. stocks sold off for a second straight session on Friday, and the Nasdaq Composite confirmed it was in correction territory after a soft jobs report stoked fears of an oncoming recession.



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



Prices of safe-haven gold were flat on Monday as some profit-taking partially offset support from U.S. recession jitters and rising expectations of a September rate cut from the Federal Reserve.



&#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; Engineering economic recovery set to take centre stage at ANC lekgotla



&#8211; SA can create up to 275,000 green jobs by 2030, report shows



(Compiled by Tannur Anders)

South African Markets – Factors to watch on Aug 5

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



NAIROBI, Aug 5 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.



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



Share markets tumbled and bonds rallied in Asia on Monday as fears the United States could be heading for recession sent investors rushing from risk assets while wagering interest rates will have to fall rapidly to rescue growth.



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



Oil prices hovered at eight-month lows on Monday as fears of a recession in the United States, the world&#8217;s top oil consumer, offset concerns that escalating tensions in the Middle East may affect supplies from the largest producing region.



The South African rand firmed on Friday as U.S. economic data showed a slowdown in jobs growth in July and a rise in the unemployment rate, boosting bets of a September rate cut in the world&#8217;s biggest economy and pressuring the dollar.



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



Nigeria&#8217;s President Bola Tinubu called on Sunday for a suspension of protests against a cost of living crisis, saying this would create an opportunity for dialogue, his first public comments since frustrated citizens took to the streets last week.



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



Kenya&#8217;s shilling slipped on Friday due to dollar demand from the manufacturing sector, traders said, adding that a credit rating review by S&amp;P Global later this month could be a big driver in the weeks ahead.



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



Global credit ratings agency Fitch downgraded Kenya&#8217;s sovereign rating to &#8220;B-&#8221; from &#8220;B&#8221; on Friday, citing heightened risks to the East African country&#8217;s public finances after the government backtracked on key revenue measures following protests.



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



Kenya&#8217;s finance minister nominee on Saturday defended the International Monetary Fund&#8217;s role in supporting the economy for now, but said the country should become more self-reliant by cutting its budget deficit and shifting to cheaper debt.



<h2 class="wp-block-heading" id="h-ethiopia-debt">ETHIOPIA DEBT</h2>



Ethiopia will save $4.9 billion from its debt restructuring exercise, State Finance Minister Eyob Tekalign said on Friday.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on Aug 5

<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/TI3IMIAIRNMQLKEZYNUUIVZMGM-scaled.jpg" alt="" class="wp-image-515273" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Nigerian security forces stand guard during the third day of anti-government demonstrations against bad governance and economic hardship in Lagos, Nigeria August 3, 2024. REUTERS/Francis Kokoroko</figcaption></figure>



ABUJA, Aug 4 (Reuters) &#8211; Nigeria&#8217;s President Bola Tinubu called on Sunday for a suspension of protests against a cost of living crisis, saying this would create an opportunity for dialogue, his first public comments since frustrated citizens took to the streets last week.



Amnesty International has said at least 13 people were killed in clashes with security forces on the first day of protests on Thursday. Police denied using excessive force and said seven people had died as of Saturday &#8211; four from an explosive device during a march in northeast Borno state, two who were hit by a car and another who was shot by a guard when protesters looted a shop.



In a televised broadcast, Tinubu called for an end to violence in several states since the protests started, saying he was always open for dialogue.



&#8220;My dear&nbsp;Nigerians, especially our youth, I have heard you loud and clear. I understand the pain and frustration that drive these protests, and I want to assure you that our government is committed to listening and addressing the concerns of our citizens,&#8221; he said.



Nigerians have been mobilising online to organise protests against economic hardship and bad governance and have called for a cut in petrol prices and electricity tariffs, among several demands.



Tinubu, in office since May 2023, defended his economic reforms, which have included a partial end to petrol and electricity subsidies and devaluation of the naira, as necessary to reverse years of economic mismanagement.



He government revenues had more than doubled to 9.1 trillion naira ($5.65 billion) in the first half of this year while 68% of revenue now went to debt servicing, down from 97% before he took office in May last year.



The government was also ramping up spending on infrastructure projects, started a loan scheme for university students and was building thousands of housing units across&nbsp;Nigeria&#8217;s 36 states, the president said.



&#8220;But we must not let violence and destruction tear our nation apart,&#8221; said Tinubu.



($1 = 1,610.9000 naira)



(Writing by MacDonald Dzirutwe; Editing by Frances Kerry)

Nigerians continue third day of hardship protests

Nigeria’s president calls for end to protests against economic hardship

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS.jpeg" alt="" class="wp-image-515270" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">Pedestrians cross an intersection in the Shibuya district of Tokyo, Japan, on Tuesday, Feb. 6, 2024.  Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Japan stocks confirmed a bear market on Monday as Asia-Pacific markets continued the sell-off from last week, with the Nikkei 225 and Topix dropping over 12%.



The benchmark indexes have fallen more than 20% from their all-time highs on July 11.



The 12.4% loss on the Nikkei — which saw it close at 31,458.42 — was the worst day for the index since the “Black Monday” of 1987. The loss of 4,451.28 points on the index was also the largest in terms of points in its entire history.



The Nikkei also erased all its gains so far this year, moving into a loss position year to date.



The broad-based Topix also saw a rout as it tumbled 12.23% and closed at 2,227.15.



Heavyweight trading houses such as Mitsubishi, Mitsui and Co, Sumitomo and Marubeni all plunged over 14%, with Mitsui seeing a wipeout of almost 20% of its market cap.



Monday’s decline follows Friday’s rout when Japan’s Nikkei 225 and Topix fell more than 5% and 6%, respectively. The broader Topix marked its worst day in eight years, while the Nikkei marked its worst day since March 2020.



In Monday trading, the yen also strengthened to its highest level against the dollar since January, and was last trading at 142.09.



South Korea’s Kospi fell 8.77%, closing at 2,441.55, and the small-cap Kodaq saw a 11.3% wipeout, ending at 691.28.



Due to the magnitude of the sell-off, the exchanges hit circuit breakers, halting trade for the Kospi index at 2.14 p.m. Seoul and at 1.56 p.m. for the Kosdaq. The halt was for 20 minutes. Circuit breakers are activated if stocks rise or fall 8%.



Investors, meanwhile, awaited key trade data from China and Taiwan this week, a well as central bank decisions from Australia and India.



China’s service sector expanded at a faster pace in July, with the country’s purchasing managers’ index climbing to 52.1 in July, up from 51.2 in June.



The Caixin survey said the acceleration of growth was due to faster new business growth, “supported by sustained improvements in underlying demand conditions and an expansion of services offerings.”



Taiwan’s benchmark index, the Taiwan Weighted Index, was down over 8%, dragged by tech and real estate stocks , while Australia’s S&amp;P/ASX 200 fell 3.7% to 7,649.6.



The Reserve Bank of Australia kicks off its two-day monetary policy meeting Monday. Economists polled by Reuters expect the central bank to hold rates steady at 4.35%, but markets will monitor the monetary policy statement for clarity on whether the RBA is still considering a rate hike.



Hong Kong Hang Seng index was down 1.61%, while mainland China’s CSI 300 was down 0.48%, seeing the smallest loss in Asia.



On Friday in the U.S., stocks fell sharply as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.



The Nasdaq was the first of the three major benchmarks to enter correction territory, down more than 10% from its record high. The S&amp;P 500 and Dow were 5.7% and 3.9% below their all-time highs, respectively.



The S&amp;P 500 dropped 1.84%, while the Nasdaq Composite lost 2.43%. The Dow Jones Industrial Average fell 610.71 points, or 1.51%.



—CNBC’s Pia Singh and Hakyung Kim contributed to this report.

107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS

Japan’s Nikkei logs worst day since 1987 Black Monday crash

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1203" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-scaled.webp" alt="" class="wp-image-514255" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-scaled.webp 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-300x176.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-820x482.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-153x90.webp 153w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-768x451.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-1536x902.webp 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Farmer Marion Nyawira Mburu uses her phone to pay for FarmerLifeline crop pest detection device at her farm in Nairobi, Kenya, on November 6, 2023. Royal Academy of Engineering 2024/Handout via Thomson Reuters Foundation</figcaption></figure>



JOHANNESBURG, Aug 2 (Thomson Reuters Foundation)&nbsp;&#8211;&nbsp;Growing up in rural Nigeria, Adaeze Akpagbula spent her school years baby-sitting her family&#8217;s chicks through the night, adjusting the coal heater, food and water needed to keep the poultry, and the family income, alive.



Despite her best efforts, unpredictable temperatures, humidity and air quality changes led to the deaths of thousands of chicks, a lesson that would propel her to commit her life to making African farms more climate-resilient.



&#8220;Nigeria&#8217;s unprecedented rainfalls and weather patterns are not predictable, and with heat and cold stresses our birds were dying,&#8221; the 34-year-old agricultural engineer said in a telephone interview with the Thomson Reuters Foundation.



&#8220;We understand that innovation is pivotal to combating climate-related issues around food insecurity,&#8221; she said.



Akpagbula last year launched a remote-sensing device called PenKeep that monitors and controls environmental conditions in poultry farms. She is now extending the technology into aquaculture and greenhouse farms.



Alongside container farms in South Africa cultivating soldier flies for animal feed, solar-powered fish and crop dryers in Tanzania and machine-learning pest detectors in Kenya, Africans are coming up with innovative solutions to overcome the effects of climate change on food production.



Such solutions are going to be needed as Africa, according to a new United Nations report, is the continent most impacted by hunger.



Together with conflict and economic crises, climate shocks are leaving Africa at the epicentre of a hunger crisis, with one in five &#8211; some 300 million people &#8211; short of food.



It is also the continent most vulnerable to climate shocks, while contributing the least to carbon emissions.



&#8220;Current societal inequalities, such as resource constraints, make it even more difficult to source funds to adapt to these changes,&#8221; said Mulako Kabisa, from the Global Change Institute research platform at the University of the Witwatersrand in Johannesburg.



&#8220;Home-grown solutions matter because they take into cognizance the local context &#8230; and what will be sustainable in the long run,&#8221; she said in emailed comments.



<h2 class="wp-block-heading" id="h-sensors-and-solar">SENSORS AND SOLAR</h2>



PenKeep&#8217;s solar-powered device interprets data from sensors that monitor environmental changes including temperature, water levels and air quality in poultry coops. Farmers are alerted of condition changes through SMS, email or an alarm.



It is being used by more than 1,200 chicken farmers in western and northern Nigeria, with more than 100,000 chickens monitored in the company&#8217;s first six months. Subscriptions of around $15 a month make it more affordable for farmers, Akpagbula said.



Users can also use an artificial intelligence (AI) management app called FS Manager that provides farmers with information including management advice, weather updates and book-keeping services.



&#8220;Nigeria has millions of poultry farmers &#8230; but they are not producing enough &#8230; because they are spending so much on energy and they have a lot of poultry mortality as a result of their environment,&#8221; said Akpagbula.



Farmers using PenKeep have seen poultry mortality rates decrease by 72%, Akpagbula said.



In east Africa, Tanzanian Evodius Rutta also utilises the continent&#8217;s abundance of sun through his MAVUNOLAB Solar Dryer that helps subsistence fish processors and farmers rapidly dry out produce including fish, fruits and vegetables, preventing post-harvest food loss.



Small-scale fish processors at Lake Victoria in western Tanzania have begun using his dryer, reducing the drying time of 250 kg of fish from 12 hours to four.



Climate variability has led to erratic rains that can spoil up to 50% of fishermen&#8217;s harvests as they do not have access to cold storage, said Rutta, a sustainability researcher and MAVUNOLAB innovation hub founder.



&#8220;Because of the rains and high tides, it has also become very dangerous for fishermen that go to the sea and the lakes,&#8221; Rutta, told the Thomson Reuters Foundation in a telephone interview.



&#8220;We need low-cost solutions for farmers to adapt to changing climate patterns because it&#8217;s going to be unavoidable,&#8221; Rutta said, adding that he was getting requests from farmers in Zimbabwe, Uganda and Kenya to use his invention.



<h2 class="wp-block-heading" id="h-pest-detection">PEST DETECTION</h2>



Climate change can impact environmental factors such as temperature and humidity that can in turn influence the life cycle and spread of crop pests, according to the U.N.&#8217;s Food and Agriculture Organization.



Pests are already responsible for at least 40% of crop loss worldwide.



Kenyan computer scientist Esther Kimani witnessed this first-hand growing up when pests decimated up to one-third of her family&#8217;s pea, potato and maize crops in the south of Kenya.



By the time the pests were detected, the destruction was so severe that even using pesticides became pointless.



Kimani was inspired to invent the Early Crop Pest and Disease Detection Device &#8211; a solar-powered tool that uses AI and machine learning-enabled cameras to rapidly detect and alert farmers of pests and diseases.



Kimani&#8217;s invention is being used by more than 5,000 farmers across Kenya since its launch in 2020. A group-leasing model reduces the cost to each farmer to $3 per month.



The device also advises farmers about which pesticides to use when, according to predicted climatic changes.



Kimani estimates that more than 3,000 acres of land have been protected from pest infestation by her invention.



She recently won the Royal Academy of Engineering&#8217;s African Prize for Engineering Innovation, for which Akpagbula and Rutta were also short-listed.



<h2 class="wp-block-heading" id="h-climate-crisis">CLIMATE CRISIS</h2>



Some home-grown innovations are also focusing on protecting agricultural output while reducing carbon emissions.



South Africa&#8217;s Philafeed helps build tailor-made black soldier fly container farms. The fly larvae feed on food waste, diverting planet-heating methane emissions from landfills.



The larvae can also be used as a protein feed for livestock, reducing the need for carbon-intensive soya and fish meal.



The larvae manure, a byproduct known as frass, helps increase soil and plant tolerance against drought and flooding, and in turn can increase crop yield in times of climate uncertainty.



&#8220;Through black soldier flies we want farmers to be able to diversify their income if there is a failed season due to climate change,&#8221; said Maya Zaken, Philafeed co-founder.



Philafeed is currently piloting its new container model in Cape Town.



Despite initial funding challenges and struggles to get farmer buy-in, Akpagbula has faith that her innovation, alongside others on the continent, will soon become essential to farmers as climate shocks become more severe and more frequent.



&#8220;People always say why now? Why you doing this now?&#8221; said Akpagbula. &#8220;I tell them it&#8217;s because of the urgency of the climate crisis.&#8221;



(Reporting by Kim Harrisberg in Johannesburg; Editing by Jon Hemming. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.)

FarmerLifeLine_Edit_November06_125

Solar dry, soldier fly, AI: Africans fight hunger with innovation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg" alt="" class="wp-image-513847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-1536x1008.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Ethiopia&#8217;s birr notes in Merkato, one of Africa&#8217;s biggest open air market, in Addis Ababa, Ethiopia, April 25, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Aug 2 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia will enjoy $4.9 billion in relief from debt repayments when it completes its current restructuring exercise, State Finance Minister Eyob Tekalign said on Friday.



The East African country is putting its long-delayed debt overhaul back on track after securing a new International Monetary Fund financing programme.



&#8220;We will sign and finalise with each individual (creditor) country over the course of the next few months,&#8221; Eyob told Reuters, referring to the savings.



Total external debt stood at $28.38 billion in March this year, data from the finance ministry showed.



Eyob was expounding on remarks made by Prime Minister Abiy Ahmed late on Thursday to explain recent economic reforms to the public via a televised event.



Abiy said the new exercise would include savings of $200 million from the restructuring of its $1 billion Eurobond.



Abiy defended this week&#8217;s switch to a market-determined foreign exchange rate, saying it aimed to close the gap between the official and black market rates and did not amount to a devaluation of the currency.



The central bank allowed the birr to float freely on Monday, fulfilling a key condition for securing financial support from the International Monetary Fund and other creditors, and for putting the nation&#8217;s long-delayed debt restructuring back on track.



The birr has since then lost 31.5% against the dollar, to trade at 83.94 per greenback, the country&#8217;s biggest lender, Commercial Bank of Ethiopia, said on Friday, and some economic analysts and commentators have voiced concern that inflation could surge.



&#8220;Saying Ethiopia has devalued its currency is wrong,&#8221; Abiy said late on Thursday in a televised briefing&nbsp;on the&nbsp;new policy.



&#8220;There were two markets. One is 100 and the other is 50. So when the gap between the two became wide, it brought many dangers. So what we said, (the two) should be unified,&#8221; he said



While lifting foreign exchange trading restrictions helped Ethiopia clinch the IMF deal and funding from other creditors including the World Bank, concern about the policy&#8217;s inflationary impact on low-income households has led at least two local governments to crack down on shops raising prices.



The government and its creditors say the liberalisation will help the private sector make a bigger contribution to the economy and boost long-term growth.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa and Duncan Miriri; Editing by Helen Popper and Giles Elgood)

Reuters

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African Markets – Factors to watch on Aug 5

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Reuters

South African rand claws back losses as risk sentiment improves

South African Markets – Factors to watch on Aug 6

African Markets – Factors to watch on Aug 6

South African rand, stocks sink as US recession fears hit riskier assets

South African banks’ earnings in spotlight ahead of first rate cuts

Congolese police officers flee to Uganda as fighting intensifies

South African grocer Pick n Pay’s rights offer oversubscribed

Ugandan shilling weakens due to increased commercial bank FX demand

Nigerian protests fizzle out amid deadly police crackdown

Kenya private sector activity falls in July amid public unrest, PMI shows

South Africa business activity contracts again in July, PMI shows

South African Markets – Factors to watch on Aug 5

African Markets – Factors to watch on Aug 5

Nigeria’s president calls for end to protests against economic hardship

Japan’s Nikkei logs worst day since 1987 Black Monday crash

Solar dry, soldier fly, AI: Africans fight hunger with innovation

Ethiopia to save $4.9 bln from debt restructuring, state minister says

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