<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-820x615.jpg" alt="" class="wp-image-509253" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A member of the Nigeria Labour Congress dances in front of the domestic airport which has been shut down as Nigeria&#8217;s main labour unions called for an indefinite strike from Monday after failing to agree to a new minimum wage with the government, in Lagos, Nigeria. June 3, 2024.REUTERS/Seun Sanni/File Photo</figcaption></figure>



ABUJA, July 18 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s main labour unions agreed on a new minimum wage of 70,000 naira ($44) a month on Thursday after talks with the government, ending months of deadlock and the threat of strikes.



Africa&#8217;s most populous nation is grappling with the worst cost of living crisis in a generation, stoking fears of Kenyan-style protests that have rocked that country for nearly a month.



Nigeria&#8217;s two biggest union federations, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), have argued that soaring prices and a weakening currency caused by reforms instituted by President Bola Tinubu were hitting workers hard.



Soaring inflation has eroded incomes and hurt millions of Nigerians who are struggling to meet their basic needs.



The new wage announced by Minister of Information Mohammed Idris and union leaders, is more than double the 30,000 naira a month that was agreed in 2019.



&#8220;We are taking this new 70,000 naira minimum wage with mixed feelings because of the situation of the economy. We have to move ahead despite the situation otherwise the negotiation can linger,&#8221; NLC President Joe Ajaero told reporters.



He said the next minimum wage would be reviewed in three years instead of the customary five years.



The unions suspended a strike in early June to give negotiations a chance but warned that failure to reach an agreement could prompt members to call for new action.



Idris said Tinubu would send the proposal, which includes a provision to review the wage every three years, to parliament immediately for passage into law. Tinubu has said he will not roll back unpopular reforms, including electricity and gasoline price hikes.



On Wednesday, Tinubu asked lawmakers to approve $4 billion in additional spending to plug shortfalls in this year&#8217;s budget, with around half of it going to fund &#8220;further recurrent expenditure requirements.&#8221;



The government plans to invest in infrastructure and renewable energy, such as compressed natural gas (CNG) plants and busses to help lower transportation costs, Idris said.



($1 = 1,580.0000 naira)



(Writing by Elisha Bala-Gbogbo; Editing by Alison Williams, Susan Fenton, Philippa Fletcher)

ZHFRG3BTB5JXRNXZVXU4QXPJNI-1

Nigeria’s unions, government agree new wage deal, averting strike

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZCAXQIRLKZPJRMO2IJOAORLRXA-scaled.jpg" alt="" class="wp-image-509235" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZCAXQIRLKZPJRMO2IJOAORLRXA-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZCAXQIRLKZPJRMO2IJOAORLRXA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZCAXQIRLKZPJRMO2IJOAORLRXA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZCAXQIRLKZPJRMO2IJOAORLRXA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZCAXQIRLKZPJRMO2IJOAORLRXA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZCAXQIRLKZPJRMO2IJOAORLRXA-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">South Africa&#8217;s President Cyril Ramaphosa speaks during his opening of parliament address in Cape Town, South Africa, July 18, 2024. REUTERS/Esa Alexander</figcaption></figure>



CAPE TOWN, (Reuters) &#8211; President Cyril Ramaphosa pledged on Thursday to revive South Africa&#8217;s flagging economy and extend prosperity to the many left out of it, by resuscitating factories and farms, building roads and seizing the opportunities presented by green energy.



In his first policy speech to a new parliament since the African National Congress (ANC) lost its ruling majority in May &#8211; forcing it to team up with its rivals &#8211; Ramaphosa also pledged to get on top of the nation&#8217;s debt burden.



&#8220;We have a clear intention to turn our country into a construction site, as roads, bridges, houses, schools, hospitals and clinics are built &#8230; and as new power lines are installed,&#8221; the president said at the official opening of a new five-year term of parliament.



He acknowledged that in the past 15 years, Africa&#8217;s most industrialised economy had &#8220;barely grown,&#8221; and &#8220;unemployment, poverty and inequality (remain) &#8230; extremely high.&#8221;



After an optimistic decade following the end of apartheid and the election of Nelson Mandela, South Africa has been mired in political troubles, including a lumbering response to its deadly HIV/AIDS epidemic, grand corruption and a systemic failure to deliver services or even keep the lights on.



Voters punished the ANC for these shortcomings in the May 29 election, leaving it with just 40% of the vote and forcing it into a unity government, mostly with the main opposition Democratic Alliance (DA), for the first time in three decades.



South Africa suffers some of the world&#8217;s biggest divides between rich and poor. Ramaphosa, formerly one of the country&#8217;s wealthiest Black businessmen, used the word &#8220;inclusive&#8221; 18 times in his speech to signal his intention to tackle economic injustice.



<h2 class="wp-block-heading" id="h-enormous-opportunity">&#8216;ENORMOUS OPPORTUNITY&#8217;</h2>



Outlining his administration&#8217;s plans for the next five years, Ramaphosa said the government would &#8220;pursue macroeconomic policy that supports growth and development,&#8221; while also stabilising the national debt.



&#8220;We are firmly committed to steadily reducing the cost of servicing our debt so that we can redirect funds towards other critical social and economic needs,&#8221; he said.



Other policies included overhauling the country&#8217;s ailing freight rail network, training young people in digital skills and investing in the green technologies being adopted the world over to mitigate climate change.



&#8220;We will seize the enormous opportunity in renewable energy for inclusive growth,&#8221; he said. &#8220;We &#8230; have a huge pipeline of renewable energy projects representing over 22,500 megawatts.&#8221;



The new cabinet, whichheld its first meeting last weekend, was determined to work together in the interests of all South Africans, Ramaphosa said, echoing remarks on Wednesday by the DA leader, John Steenhuisen.



In those remarks, Steenhuisen said the coalition government&#8217;s plans had broad buy-in from its different political parties and that it was working better than expected.



Ramaphosa said the coalition partners had taken the path of a &#8220;cooperation nation&#8221;.



(Reporting by Nellie Peyton and Wendell Roelf; Writing by Tannur Anders, Bhargav Acharya and Alexander Winning; Editing by Tim Cocks and Marguerita Choy)

Parliament address by South Africa’s President Cyril Ramaphosa in Cape Town

South Africa leader pledges to revive economy, include the poor

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1351" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-scaled.jpg" alt="" class="wp-image-425628" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-1536x1013.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of South Africa&#8217;s central reserve bank is seen during the delivery of a keynote address by South Africa&#8217;s central bank governor, Lesetja Kganyago, at the University of the Witwatersrand in Johannesburg, South Africa, November 1, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, July 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank kept its main interest rate unchanged at 8.25% in a decision announced on Thursday.



Eighteen of 20 economists polled by Reuters predicted there would be no change in the repo rate.



The decision by the central bank&#8217;s Monetary Policy Committee was split, with four members preferring an unchanged stance and two preferring a 25-basis-point rate cut.



Monetary policy has remained tight in Africa&#8217;s most industrialised economy as the South African Reserve Bank tries to steer inflation back towards the midpoint of its 3%-6% target range.



Consumer inflation stood at 5.2% year on year in May, the latest month for which data is available, the same as in April.



&#8220;Domestically, inflation expectations do not yet reflect the 4.5% midpoint objective over the medium term,&#8221; central bank Governor Lesetja Kganyago said in a statement accompanying the decision.



Economists polled by Reuters before Thursday&#8217;s announcement predicted a 25-basis-point cut in September followed by another in November.



(Reporting by Bhargav Acharya, Tannur Anders and Kopano Gumbi; Editing by Alexander Winning)

FILE PHOTO: South Africa’s central bank governor to delivers keynote address

South Africa central bank keeps main interest rate unchanged at 8.25%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-scaled.jpg" alt="" class="wp-image-498461" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A Transnet logo stands on a rail mounted gantry crane, manufactured by Terex Corp., at the Port of Durban, operated by Transnet SOC Holdings Ltd.&#8217;s Ports Authority, in Durban, South Africa, on Friday, May 25, 2018. Transnet last year reduced its seven-year capital-investment plan by 17 percent to 229.2 billion rand in response to lower-than-anticipated freight demand. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



July 18 (Reuters)&nbsp;&#8211;&nbsp;The African Development Bank (AfDB) has approved a $1 billion loan for South Africa&#8217;s Transnet to aid the troubled logistics firm&#8217;s recovery plan, the bank and the company said on Thursday.



State-owned Transnet has struggled to provide adequate freight rail and port services in South Africa due to equipment shortages and maintenance backlogs after years of under-investment.



This has impacted commodity exports and other sectors such as manufacturing and retail, weakening Africa&#8217;s most advanced economy.



Transnet and the AfDB said in a joint statement that the 25-year loan was fully guaranteed by the government of South Africa.



&#8220;It will facilitate the first phase of the company&#8217;s ZAR 152.8 billion rand ($8.1 billion) five-year capital investment plan to improve its existing capacity ahead of expansion for the priority segments throughout the transport value chain,&#8221; the statement said.



Transnet, which has debts of 130 billion rand, recorded a loss of 1.6 billion rand in the six months to Sept. 30 on the back of declining rail, port and pipeline volumes as well as higher costs.



It has seen freight volumes decline to 150 million metric tons in financial year 2022/23 from 226 million tons in 2017/18.



Transnet&#8217;s recovery plan, announced in October 2023, seeks to restore freight volumes and return the company to profitability over a period of 18 months.



The turnaround plan includes splitting the freight rail subsidiary into two &#8211; an infrastructure management company and an operating unit. It also targets reduced port backlogs and plans another attempt to open up parts of its rail network to private operators after a false start two years ago.



(Reporting by Nelson Banya; Editing by Alexander Winning and David Evans)

Operations At The Transnet SOC Ltd. Port Of Durban

S.Africa’s Transnet gets $1 bln African Development Bank loan

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Q26RQAICWNPFJFYJE2MKCI6H7Q.jpg" alt="" class="wp-image-422716" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Q26RQAICWNPFJFYJE2MKCI6H7Q.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Q26RQAICWNPFJFYJE2MKCI6H7Q-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Q26RQAICWNPFJFYJE2MKCI6H7Q-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South Africa&#8217;s central bank governor, Lesetja Kganyago, arrives to deliver a keynote address on monetary policy, growth and jobs at the University of the Witwatersrand in Johannesburg, South Africa, November 1, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



July 18 (Reuters)&nbsp;&#8211;&nbsp;Below are some quotes from South African Reserve Bank Governor Lesetja Kganyago at a news conference to announce the central bank&#8217;s latest interest rate decision.



<h2 class="wp-block-heading" id="h-decision">DECISION</h2>



&#8220;The MPC (Monetary Policy Committee) decided to keep the repo rate unchanged at 8.25%. Four members preferred an unchanged stance, and two preferred a reduction of 25 basis points.&#8221;



&#8220;In discussing the stance, MPC members agreed that restrictive policy remains appropriate to stabilise inflation at 4.5%.&#8221;



&#8220;The committee assessed that an unchanged stance remained appropriate, given the inflation risks. Some members, however, were of the view that the inflation outlook had improved enough to reduce the degree of restrictiveness.&#8221;



<h2 class="wp-block-heading" id="h-inflation">INFLATION</h2>



&#8220;The most recent headline print, for May, was 5.2%, unchanged from April and still in the top half of our target range.&#8221;



&#8220;The outlook, however, has improved somewhat. Headline consumer price inflation for this year is now projected at 4.9%, compared to 5.1% at the previous meeting.&#8221;



&#8220;Over the next few quarters, headline is expected to dip below the 4.5% midpoint, mainly because of fuel and food prices. This outlook is supported by the stronger rand.&#8221;



&#8220;Over the medium term, we continue to see inflation stabilising at 4.5%, with core inflation remaining close to this midpoint objective throughout.&#8221;



<h2 class="wp-block-heading" id="h-economic-growth">ECONOMIC GROWTH</h2>



&#8220;The economy contracted slightly in the first quarter, by 0.1%, and recent data, including last week&#8217;s mining and manufacturing numbers, have caused us to trim our second quarter growth estimate modestly, to 0.6%.&#8221;



&#8220;Over the medium term, we expect somewhat faster growth, supported by a more reliable electricity supply and improving logistics, among other factors.&#8221;



&#8220;Our revised growth projections nonetheless remain below longer-run historical averages, of about 2%. The risks to this forecast are assessed as broadly balanced, with ample scope for structural reforms to lift growth further over the medium term.&#8221;



<h2 class="wp-block-heading" id="h-other-comments">OTHER COMMENTS</h2>



&#8220;Inflation expectations do not yet reflect the 4.5% midpoint objective over the medium term. While expectations are moving in the right direction, they continue to show the impact of the recent inflation surge.&#8221;



&#8220;We remain concerned about administered prices. We have had to mark up electricity inflation for this forecast round, even as other categories shifted lower.&#8221;



&#8220;The forecast continues to see rates easing into more neutral territory by next year.&#8221;



&#8220;We are committed to stabilising inflation at the mid-point of the target band. Achieving this outcome will improve the economic outlook and reduce borrowing costs.&#8221;



(Compiled by Alexander Winning)

South Africa’s central bank governor to delivers keynote address

South African central bank governor’s comments on rate decision

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KCD5AG3PPBMM3P4T4YY7RIKCA4-820x536.jpg" alt="" class="wp-image-508945" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KCD5AG3PPBMM3P4T4YY7RIKCA4-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KCD5AG3PPBMM3P4T4YY7RIKCA4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KCD5AG3PPBMM3P4T4YY7RIKCA4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KCD5AG3PPBMM3P4T4YY7RIKCA4-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KCD5AG3PPBMM3P4T4YY7RIKCA4-1536x1004.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KCD5AG3PPBMM3P4T4YY7RIKCA4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rwanda&#8217;s incumbent President and presidential candidate for the Rwandan Patriotic Front (RPF) Paul Kagame prepares to cast his ballot during the Presidential election at the SOS Kinyinya polling centre in Kigali, Rwanda July 15, 2024. REUTERS/Jean Bizimana/File Photo</figcaption></figure>



KIGALI, July 18 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s President Paul Kagame has been re-elected with 99.18% of the vote, the National Electoral Commission said on Thursday, extending his near quarter-century in office.



The two men standing against him &#8211; Frank Habineza from the Democratic Green Party and independent Philippe Mpayimana &#8211; both conceded defeat in Monday&#8217;s election, which rights groups say was marred by a crack-down on journalists, the opposition and civil society groups. A government spokesperson repeatedly rejected such criticism during the election period.



Oda Gasinzigwa, chairperson of the National Electoral Commission, told a news conference that voter turnout was 98.20% of the nine million registered voters.



The final election results are due to be announced no later than July 27, she said.



Kagame, who got more than 93% of the vote in the last three elections, has won praise from Western and regional leaders for helping to end the 1994 genocide in Rwanda and rebuilding the country into an attractive destination for investment and aid.



His reputation has been damaged, however, by accusations of abuses at home and supporting rebels in neighbouring Democratic Republic of Congo &#8211; allegations he has repeatedly denied.



The electoral commission barred eight other candidates, including Kagame&#8217;s most vocal critics, from running, citing a range of reasons including missing and incomplete registration documents.



(Writing by George Obulutsa; Editing by Peter Graff and Mark Potter)

Rwanda President Paul Kagame votes during the presidential election in Kigali

Rwanda’s President Kagame re-elected in a landslide

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1254" height="836" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w" sizes="auto, (max-width: 1254px) 100vw, 1254px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



July 18 (Reuters)&nbsp;&#8211;&nbsp;Caution prevailed across most developing markets on Wednesday, ahead of China policy announcements and interest-rate decisions by a few central banks, while attention was also on the opening of South Africa&#8217;s parliament following recent elections.



MSCI&#8217;s index tracking emerging markets equities slipped 0.4%, its third-straight day in losses, while a currencies gauge was flat against the dollar.



China stocks settled higher by 0.5%, with markets anticipating any policy announcements to support the second largest economy&#8217;s sluggish recovery, following the conclusion of a four-day Communist Party meet.



Tech-heavy stock indexes in Asia such as Taiwan, Korea and Hong Kong&#8217;s tech index closed lower between 0.6% and 1.5%, as a report of the U.S. mulling tighter export curbs on advanced chip technology to China overshadowed an upbeat quarterly revenue forecast from TSMC.



South Africa&#8217;s rand was muted, and yield on the benchmark sovereign bond ticked up 2 basis points (bps) ahead of a rate decision, where most economists expect the local central bank to leave rates at 8.25%.



Markets will also focus on President Cyril Ramaphosa&#8217;s opening address to parliament, for any clues on the policy trajectory for the first coalition government in the country.



&#8220;The reforms designed to improve electricity infrastructure is probably going to be the biggest challenge for South Africa and if they&#8217;re able to come up with policies and improvements to infrastructure, then markets would react favourably to that,&#8221; said Matthew Ryan, head of market strategy at Ebury.



The rand has strengthened about 3.5% after national elections held in late May pointed to a coalition government, and the local central bank has stayed put on borrowing costs.



Meanwhile, a parliamentary budget committee has recommended that lawmakers approve a law granting the Ukrainian government the right to suspend debt payments.



Against the backdrop of the Russian-Ukraine conflict, the country has $19.7 billion outstanding on its international bonds and owes $2.6 billion on GDP warrants. The hryvnia inched up 0.3%, after depreciating more than 1% on Wednesday.



Meanwhile, Bangladesh&#8217;s taka was flat, even as local protests over high unemployment intensified. Kenya&#8217;s shilling was muted as investors monitored local developments after police banned demonstrations in the capital following weeks of anti-government protests.



In the Middle East, Israel&#8217;s Tel Aviv stock index slipped 0.3%. The exchange is expected to launch a futures market in September.



Hungary&#8217;s forint led gains among eastern and central European currencies with a 0.3% rise, to touch levels seen more than a month ago.



Elsewhere, Egypt&#8217;s pound slipped 0.1% ahead of an interest rate decision, with economists expecting no change.



(Reporting by Johann M Cherian in Bengaluru; Editing by Arun Koyyur)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

Stocks slip with China policy decisions on tap; S.Africa in focus

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1351" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VK3RAQB775NTBEED5CNFMICK3A-scaled.jpg" alt="" class="wp-image-508890" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VK3RAQB775NTBEED5CNFMICK3A-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VK3RAQB775NTBEED5CNFMICK3A-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VK3RAQB775NTBEED5CNFMICK3A-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VK3RAQB775NTBEED5CNFMICK3A-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VK3RAQB775NTBEED5CNFMICK3A-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VK3RAQB775NTBEED5CNFMICK3A-1536x1014.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Riot police officers walk to disperse protestors during an anti-government demonstration, following nationwide deadly riots over tax hikes and a controversial now-withdrawn finance bill, in Nairobi, Kenya, July 16. REUTERS/John Muchucha</figcaption></figure>



NAIROBI, July 18 (Reuters) &#8211; Kenya&#8217;s government on Thursday ratcheted up its appeal for weeks of protests to stop as police banned demonstrations in the heart of the capital Nairobi, saying they had been infiltrated by criminal gangs.



Some activists called for people to gather on Thursday with camping gear to &#8220;occupy&#8221; Uhuru Park adjacent to the city centre, amid a heavy police presence across Nairobi.



At least 50 people have been killed in the youth-led protests against proposed tax hikes that broke out across Kenya a month ago and have continued even after President William Ruto withdrew the legislation and fired almost all of his cabinet.



Activists say they want Ruto to resign and are calling for reforms to clean up corruption and address poor governance.



The country has lost approximately 6 billion Kenyan shillings ($46 million) as a result of the demonstrations, government spokesperson Isaac Mwaura said, without explaining how he arrived at that figure.



&#8220;The president and the government at large (have) heard you loud and clear and we are ready to act on your concerns,&#8221; Mwaura said in a televised statement.



The protests, which have been organised online without the apparent support of opposition political figures, have created the biggest crisis of Ruto&#8217;s two years in power.



&#8220;We have credible intelligence that organised criminal groups are planning to take advantage of the ongoing protests to execute their attacks, including looting,&#8221; chief of police Douglas Kanja Kiricho said in a statement late on Wednesday.



&#8220;No demonstrations will be permitted in the Nairobi Central Business District and its surroundings until further notice to ensure public safety.&#8221;



<h2 class="wp-block-heading" id="h-broad-based-government">BROAD-BASED GOVERNMENT</h2>



In his latest concession, Ruto last week pledged to set up a broad-based government, but the opposition coalition on Wednesday rejected the idea, calling instead for a constitutional convention.



The rallies began peacefully but later turned violent.



Some demonstrators briefly stormed parliament on June 25, and the police opened fire.



Ruto&#8217;s office planned &#8220;multi-sectoral&#8221; talks for this week to address the protesters&#8217; grievances, but by Thursday there was no sign they had begun.



Most of the leading figures behind the protests have rejected the invitation, instead calling for immediate action on issues such as corruption.



&#8220;(The police and president Ruto) have no power to suspend rights guaranteed by the constitution,&#8221; activist Boniface Mwangi wrote on the social media platform X in response to the protest ban.



The Communications Authority of Kenya (CA), a regulatory body, has cautioned the media against &#8220;perpetuating&#8221; violence in their coverage of the protests, &#8220;which could potentially cause widespread civil unrest in the country&#8221;.



Some outlets have &#8220;compromised objectivity and balance in the reporting of crime, security operations and/or crisis situations,&#8221; CA chief David Mugonyi wrote in a July 17 letter to a media executive seen by Reuters.



($1 = 130.0000 Kenyan shillings)



(Reporting by Hereward Holland; Additional reporting by Humphrey Malalo; Editing by Michael Perry Ros Russell and Andrew Cawthorne)

Anti-government demonstration following nationwide deadly riots over tax hikes and a controversial now-withdrawn finance bill in Nairobi

Kenya bans protests in central Nairobi, blames criminal infiltration

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w, 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-924883576-1-820x547.jpg 820w, 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" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, July 18 (Reuters) &#8211; The Ugandan shilling was firmer on Thursday, helped by a slowdown in appetite for hard currency from both commercial banks and merchandise importers, traders said.



At 0830 GMT commercial banks quoted the shilling at 3,685/3,695, compared to Wednesday&#8217;s close of 3,690/3,700.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

GettyImages-924883576-1

Ugandan shilling firms on thin bank, importer FX appetite

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-scaled.jpg" alt="" class="wp-image-373504" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1920x1280.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-600x400.jpg 600w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /></figure>



JOHANNESBURG, July 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was little changed on Thursday, ahead of an interest rate decision by the South African Reserve Bank (SARB).



At 0903 GMT, the rand traded at 18.1900 against the dollar, not far from its previous close of 18.1950.



The SARB&#8217;s monetary policy committee will announce its rate decision later on Thursday and provide an update on South Africa&#8217;s economic outlook.



It is expected to leave its repo rate unchanged at 8.25%, according to economists polled by Reuters, but cut rates by 25 basis points to 8.00% in September as inflation cools.



Investor focus will also be on a speech by President Cyril Ramaphosa later in the evening, when he is expected to outline the priorities of the newly formed broad coalition government.



On the stock market, the Top-40 index was last up 0.4%.



South Africa&#8217;s benchmark 2030 government bond was weaker in early deals, with the yield up 2.5 basis points to 9.625%.



(Reporting by Bhargav Acharya; Editing by Janane Venkatraman )

101416618-rand

South African rand little changed ahead of rate decision

<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, July 18 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic and political events, company announcements, equity and currency market moves may affect South African markets on Thursday.



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



President Cyril Ramaphosa&#8217;s opening of parliament address, laying out priorities for new administration from 1700 GMT



South African central bank interest rate announcement from 1300 GMT



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



Investment holding company Brait will release the offer price of its 1.5 billion rand ($82.63 million) rights issue.



Anglo American Platinum expects its half-year profit to decline by as much as 25%, mainly due to lower prices of palladium and rhodium, it said on Thursday.



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



The South African rand dropped sharply on Wednesday, as investors dumped riskier assets globally because of worries over the state of the world economy and geopolitical risks after U.S. presidential candidate Donald Trump&#8217;s remarks on Taiwan.



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



Asian equities slid on Thursday, led by chip stocks as investors fret over the prospect of escalating trade tensions between the U.S. and China, while the yen was firm after scaling a six-week high following suspected interventions by Tokyo.



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



The S&amp;P 500 and the Nasdaq tumbled on Wednesday as plunging microchip shares, in the face of potential escalation of U.S. trade conflicts with China, exacerbated the ongoing rotation out of megacap tech-related stocks.



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



Gold prices rose on Thursday, hovering near a record high scaled in the previous session, as rising anticipation of a U.S. interest rate cut in September lifted demand for non-yielding bullion.



&#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; Trade and industry department wants to use pensions to fund industrialisation



&#8211; Gwede Mantashe wants private investors for Sapref refinery rebuild



&#8211; Enoch Godongwana says Treasury is set on reducing debt



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



&#8211; Godongwana pledges to fast-track private investment in water and transport



($1 = 18.1541 rand)



(Compiled by Alexander Winning)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on July 18

<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>



July 18 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



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



Asian equities fell on Thursday, led by chip stocks as investors fret over the prospect of escalating trade tensions between the U.S. and China, while the yen surged to a six-week high in the wake of suspected interventions by Tokyo last week.



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



Oil prices extended gains from the previous session on Thursday, buoyed by a bigger-than-expected decline last week in crude stockpiles in the United States, the world&#8217;s largest oil consumer.



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



The South African rand dropped sharply on Wednesday, as investors dumped riskier assets globally because of worries over the state of the world economy and geopolitical risks after U.S. presidential candidate Donald Trump&#8217;s remarks on Taiwan.



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



Nigeria&#8217;s naira fell to 1,612.50 per dollar on the official market on Wednesday, its lowest level in four months, LSEG data showed.



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



Kenya&#8217;s shilling was stable on Wednesday as foreign exchange inflows from tea exports matched dollar demand, traders said.



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



Nigeria&#8217;s President Bola Tinubu has asked the Senate to approve an additional spending of 6.2 trillion naira ($4 billion) to plug shortfalls in this year&#8217;s national budget, according to a letter read to lawmakers on Wednesday.



<h2 class="wp-block-heading" id="h-zimbabwe-currency">ZIMBABWE CURRENCY</h2>



Zimbabwe&#8217;s government will stick to what it promised when it launched a new currency in April by ensuring it remains fully backed by reserves, the central bank governor told Reuters on Wednesday, adding that was the only way to build trust.



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



TotalEnergies has sold its minority share in a major Nigerian onshore oil joint venture to Mauritius-based Chappal Energies for $860 million, the French energy group said on Wednesday.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on July 18

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-scaled.jpg" alt="" class="wp-image-408693" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A sign stands at the entrance to the offices of Anglo American Plc in the Marshalltown district of Johannesburg, South Africa, on Friday, Oct. 26, 2012. Anglo American Plc Chief Executive Officer Cynthia Carroll , the first woman, external hire and non-South African to hold the job, will quit after Anglo lost $14 billion in value in the more than five years she was in charge. Photographer: Chris Ratcliffe/Bloomberg via Getty Images</figcaption></figure>



LONDON July 18 (Reuters) &#8211; Anglo American said its copper output was almost flat in the first half, while it curbed this year&#8217;s output forecast for coking coal, which is likely to weigh on earnings just months after it rebuffed a takeover bid from rival BHP Group.



Copper production rose 2% to 393,800 metric tons in the six months through June and is on track to meet full-year guidance, Anglo said in a statement.



Copper demand is expected to rise sharply in coming years for use in applications ranging from solar panels and electric cars to data centres for artificial intelligence.



Anglo&#8217;s share price was up 1.4% by 0709 GMT.



Anglo cut its output guidance for steelmaking coal to between 14 million tons to 15.5 million tons from 15 to 17 million tons previously, as it battles an underground fire at its Grosvenor coal mine in Australia that started on June 29.



Anglo has put its five operating coal mines, development projects and joint ventures in Australia up for sale, as part of a wider plan to divest less profitable assets and focus on expanding copper output after BHP&#8217;s failed attempt to take over the company. But analysts say the timing and value of a planned sale of coal assets are now uncertain.



&#8220;The mine has been stabilised and we are re-establishing comprehensive underground gas monitoring, prior to being able to assess the steps towards a safe re-entry into the mine,&#8221; Anglo said in a statement on Thursday.



Assessment of the damage and re-opening is likely to take several months, the company said.



Iron ore production was also flat at around 31 million tons in the first half, while platinum group metals (PGM) output fell 5% and rough diamond production dropped 19%.



&#8220;An expected recovery in PGM and diamond prices could help sentiment while a renewed approach from BHP cannot be ruled out,&#8221; analyst Marina Calero at RBC Capital Markets said.



&#8220;However, we view the outlook for Anglo as more balanced in the near term as the sale of the steelmaking coal assets gets more complicated at a time when we expect iron ore prices to roll in H2 24,&#8221; she added.



(Reporting by Clara Denina and Felix Njini; editing by Jason Neely and Sharon Singleton)

Anglo American Plc’s South African Headquarters As CEO Cynthia Carroll Quits

Anglo cuts coal output forecast after fire at Australian mine

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-820x574.jpg" alt="" class="wp-image-423487" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nigeria&#8217;s newly declared winner of 2023 presidential election, Bola Tinubu speaks at the National Collation Centre in Abuja, Nigeria, March 1, 2023. REUTERS/Esa Alexander</figcaption></figure>



ABUJA, July 17 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s President Bola Tinubu has asked the Senate for an extra 6.2 trillion naira ($4 billion) in funding to plug shortfalls in this year&#8217;s national budget, according to a letter read to lawmakers on Wednesday.



Tinubu also sought to impose a one-off windfall tax on banks&#8217; foreign exchange gains, as his government aims to raise revenues to fund &#8220;capital infrastructure development, education, and healthcare as well as welfare initiatives.&#8221;



Senators immediately started debating a bill to approve the new funding request, which comes at a time when the government is under pressure from unions to agree a new minimum wage amid the country&#8217;s worst cost of living crisis in a generation.



($1 = 1,555.0000 naira)



This is a developing story&#8230;



(Reporting by Camillus Eboh; Writing by MacDonald Dzirutwe; Editing by Hugh Lawson)

The Independent National Electoral Commission declares Bola Tinubu winner of Nigeria’s 2023 presidential elections in Abuja

Nigeria’s president asks lawmakers for extra $4 billion funding

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w, 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-924883576-1-820x547.jpg 820w, 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" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, July 17 (Reuters) &#8211; The Ugandan shilling was weaker on Wednesday, undermined by an uptick in demand for dollars from merchandise importers, traders said.



At 1045 GMT, commercial banks quoted the shilling at 3,695/3,705, compared with Tuesday&#8217;s closing rate of 3,688/3,698 levels.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan shilling weaker on uptick in importer dollar demand

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1292" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



LONDON, July 17 (Reuters)&nbsp;&#8211;&nbsp;The World Bank is looking to issue its first drought bond in the next 12-18-months and broaden its offering of catastrophe bonds supporting countries suffering devastation from storms and earthquakes, a senior executive at the lender said.



The drought bond would be a new instrument in the multilateral lender&#8217;s suite of so-called cat bonds &#8211; fixed income instruments that pay out to countries in the event of a natural disaster.



&#8220;We would love to do something in the drought space, that is something we are working on,&#8221; said George Richardson, director of the capital markets and investment department at the World Bank Treasury told Reuters, adding this would be most likely focussed on Africa.



The World Bank has arranged and issued cat bonds though its lending arm, the International Bank for Reconstruction and Development (IBRD), to help emerging economies mitigate the fallout from storms and earthquakes for well over a decade. It has made $568 million of insurance payouts on these instruments.



The vast majority of the World Bank&#8217;s existing cat bonds cover countries in the Pacific and Caribbean regions, with Mexico dominating issuance.



The lender was now in talks with more countries to broaden the geographic scope, Richardson said.



Southern Africa is reeling from its worst drought in years, owing to a combination of naturally occurring El Nino &#8211; a warming of waters in the eastern Pacific leading to hotter weather across the world &#8211; and higher average temperatures produced by greenhouse gas emissions. This led to a number of record-breaking weather extremes last year.



Richardson said modelling droughts, wildfires and floods was a little more difficult than earthquakes or storms for a parametric cat bond, an instrument where triggers depend on physical parametres of an event.



&#8220;The fundamental challenge is that you need data, and you need to have some history of that so that it can be modelled by various agencies,&#8221; Richardson said.



The World Bank has also recently offered vulnerable, low income countries the option of introducing clauses into their borrowing from the Washington-based lender that would allow governments to defer repayments for up to two years if they were hit by a severe natural disaster.



So far, seven countries have signed up to the so-called Climate Resilient Debt Clauses (CRDC) &#8211; Bahamas, Barbados, Belize, Grenada, St. Lucia, St. Vincent and the Grenadines and Montenegro.



&#8220;Some of these are evaluating whether they should activate this clause after hurricane Beryl but so far, no decision has been made from what we know,&#8221; said Richardson.



Beryl left a trail of devastation across several Caribbean islands earlier this month, destroying as many as 90% of homes in parts of Grenada and St. Vincent and the Grenadines.



(Reporting by Karin Strohecker and Marc Jones; Editing by Mark Potter)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank eyes first ‘drought’ bond in next 12-18 months

<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, July 17 (Reuters) &#8211; Kenya&#8217;s shilling was stable on Wednesday as foreign exchange inflows from tea exports matched dollar demand, traders said.



At 0737 GMT, commercial banks quoted the shilling at 129.50/130.50 per dollar, the same as Tuesday&#8217;s close.



(Reporting by Hereward Holland; Editing by Alexander Winning)

Reuters

Nigeria’s unions, government agree new wage deal, averting strike

South Africa leader pledges to revive economy, include the poor

South Africa central bank keeps main interest rate unchanged at 8.25%

S.Africa’s Transnet gets $1 bln African Development Bank loan

South African central bank governor’s comments on rate decision

Rwanda’s President Kagame re-elected in a landslide

Stocks slip with China policy decisions on tap; S.Africa in focus

Kenya bans protests in central Nairobi, blames criminal infiltration

Ugandan shilling firms on thin bank, importer FX appetite

South African rand little changed ahead of rate decision

South African Markets – Factors to watch on July 18

African Markets – Factors to watch on July 18

Anglo cuts coal output forecast after fire at Australian mine

Nigeria’s president asks lawmakers for extra $4 billion funding

Ugandan shilling weaker on uptick in importer dollar demand

World Bank eyes first ‘drought’ bond in next 12-18 months

Kenyan shilling stable as FX inflows from tea exports match demand

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Advertise With Us

Reuters

Nigeria’s unions, government agree new wage deal, averting strike

South Africa leader pledges to revive economy, include the poor

South Africa central bank keeps main interest rate unchanged at 8.25%

S.Africa’s Transnet gets $1 bln African Development Bank loan

South African central bank governor’s comments on rate decision

Rwanda’s President Kagame re-elected in a landslide

Stocks slip with China policy decisions on tap; S.Africa in focus

Kenya bans protests in central Nairobi, blames criminal infiltration

Ugandan shilling firms on thin bank, importer FX appetite

South African rand little changed ahead of rate decision

South African Markets – Factors to watch on July 18

African Markets – Factors to watch on July 18

Anglo cuts coal output forecast after fire at Australian mine

Nigeria’s president asks lawmakers for extra $4 billion funding

Ugandan shilling weaker on uptick in importer dollar demand

World Bank eyes first ‘drought’ bond in next 12-18 months

Kenyan shilling stable as FX inflows from tea exports match demand

News Tips

Advertise With Us

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