
<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>



<p>JOHANNESBURG, July 8 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Monday.</p>



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



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



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



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



<p>South Africa&#8217;s rand extended its gains against a weaker dollar on Friday, fuelled by expectations that the Federal Reserve will cut interest rates later this year.</p>



<p>On the stock market, the Top-40 index closed 0.35% higher. South Africa&#8217;s benchmark 2030 government bond was stronger, as the yield fell 2.5 basis points to 9.76%.</p>



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



<p>Asian stocks inched higher on Monday as investors grew more confident about a September U.S. rate cut, while the euro grappled with political uncertainty as French elections pointed to a hung parliament.</p>



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



<p>Wall Street stock indexes closed firmer on Friday, with the tech-heavy Nasdaq and benchmark S&amp;P 500 hitting record highs, as new data showing U.S. labour market weakness boosted expectations for interest rate cuts as early as September.</p>



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



<p>Gold prices slipped on Monday, as investors booked profits after bullion hit a more than one-month high in the previous session on rising bets of U.S. interest rate cuts in September.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; SA faces tough times ahead amid global economic uncertainties</p>



<p>(Compiled by Tannur Anders)</p>


istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on July 8


<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>



<p>NAIROBI, July 8 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.</p>



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



<p>*Tanzania&#8217;s statistics office releases consumer inflation data for June.</p>



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



<p>Asian stocks inched higher on Monday as investors grew more confident about a September U.S. rate cut, while the euro grappled with political uncertainty as French elections pointed to a hung parliament.</p>



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



<p>Oil prices dipped on Monday after rising for four weeks, as the prospect of a ceasefire deal in Gaza eased geopolitical tensions in the Middle East, while investors assessed potential disruption to U.S. energy supplies from Tropical Storm Beryl.</p>



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



<p>South Africa&#8217;s rand extended its gains against a weaker dollar on Friday, fuelled by expectations that the Federal Reserve will cut interest rates later this year.</p>



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



<p>The Kenyan shilling was unchanged in quiet trade on Friday morning, as traders saw anti-government protests easing off.</p>



<h2 class="wp-block-heading" id="h-kenya-budget">KENYA BUDGET</h2>



<p>Kenyan President William Ruto on Friday proposed spending cuts and additional borrowing in roughly equal measure to fill a nearly $2.7 billion budget hole caused by his withdrawal of planned tax hikes in the face of nationwide protests.</p>



<h2 class="wp-block-heading" id="h-west-africa-politics">WEST AFRICA POLITICS</h2>



<p>The Economic Community of West African States (ECOWAS) said on Sunday the region risked disintegration and worsening insecurity after junta-led Burkina Faso, Mali and Niger made clear their intentions to leave the bloc by signing a confederation treaty.</p>



<h2 class="wp-block-heading" id="h-rwanda-south-korea-funding">RWANDA SOUTH KOREA FUNDING</h2>



<p>Rwanda&#8217;s Finance Ministry said on Friday that South Korea has awarded it $1 billion in concessionary loans to fund projects in several sectors including transport, healthcare, and education.</p>



<h2 class="wp-block-heading" id="h-zambia-mining">ZAMBIA MINING</h2>



<p>Vedanta Resources Ltd said on Friday it has arranged the financing it needs to start paying creditors of its Konkola Copper Mines in Zambia as it takes steps to revive operations after regaining control of the assets.</p>



<p>((Compiled by Nairobi Newsroom))</p>


World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on July 8


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-820x546.jpeg" alt="" class="wp-image-505243" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">British Prime Minister Keir Starmer delivers his speech outside Downing Street 10, following the results of the election, in London, Britain, July 5, 2024. <br>Claudia Greco | Reuters</figcaption></figure>



<p>Britain’s new Prime Minister Keir Starmer said on Saturday he would scrap a controversial plan to fly thousands of asylum seekers from Britain to Rwanda in his first major policy announcement since winning a landslide election victory.</p>



<p>The previous Conservative government first announced the plan in 2022 to send migrants who arrived in Britain without permission to the East African nation, saying it would put an end to asylum seekers arriving on small boats.</p>



<p>But no one was sent to Rwanda under the plan because of years of legal challenges.</p>



<p>At his first press conference since becoming prime minister, Starmer said that the Rwanda policy would be scrapped because only about 1% of asylum seekers would have been removed and it would have failed to act as a deterrent.</p>



<p>“The Rwanda scheme was dead and buried before it started. It’s never been a deterrent,” Starmer said. “I’m not prepared to continue with gimmicks that don’t act as a deterrent.”</p>



<p>Starmer won one of the largest parliamentary majorities in modern British history on Friday, making him the most powerful British leader since former Prime Minister Tony Blair, but he faces a number of challenges, including improving struggling public services and reviving a weak economy.</p>



<p>At the press conference in Downing Street, Starmer answered about a dozen questions and was repeatedly asked about how and when he would start delivering on his promises to fix the nation’s problems, but he gave few specifics about what he planned.</p>



<p>Asked if he was willing to take tough decisions and raise taxes if necessary, Starmer said his government would identify problems and act in areas such as tackling an overstretched prisons system and reducing the long waiting times to use the state-run health service.</p>



<p>“We’re going to have to take the tough decisions and take them early, and we will. We will do that with a raw honesty,” he said. “But that is not a sort of prelude to saying there’s some tax decision that we didn’t speak about before.”</p>



<p>Starmer said he would set up and chair different “mission delivery boards” to focus on so-called missions or priority areas such as the health service and economic growth.</p>



<h2 class="wp-block-heading" id="h-election-issue"><a></a>Election issue</h2>



<p>The question of how to stop the asylum seekers crossing from France was a major theme of the six-week election campaign.</p>



<p>While supporters say it would smash the model of people traffickers, critics have argued the Rwanda policy was immoral and would never work.</p>



<p>Last November, the UK Supreme Court declared the policy unlawful, saying Rwanda could not be considered a safe third country, prompting ministers to sign a new treaty with the East African country and to pass new legislation to override this.</p>



<p>The legality of that move was being challenged by charities and unions in the courts.</p>



<p>The British government has already given the Rwandan government hundreds of millions of pounds to set up accommodation and hire extra officials to process the asylum seekers, money it cannot recover.</p>



<p>Starmer has said his government would create a Border Security Command that would bring together staff from the police, the domestic intelligence agency and prosecutors to work with international agencies to stop people smuggling.</p>



<p>Sonya Sceats, CEO of Freedom from Torture, one of the many organizations and charities which have campaigned to stop the Rwanda plan, welcomed Starmer’s announcement on Saturday.</p>



<p>“We applaud Keir Starmer for moving immediately to close the door on this shameful scheme that played politics with the lives of people fleeting torture and persecution,” she said.</p>


108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election

New UK leader Starmer declares Rwanda deportation plan ‘dead and buried’


<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/VSUW65W5UVNKFHEP6AGCDDWLWI-820x547.jpg" alt="" class="wp-image-504288" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s President William Ruto attends a joint press conference with Iran&#8217;s President Ebrahim Raisi at the State House in Nairobi, Kenya, July 12, 2023. Iran&#8217;s Presidency/WANA (West Asia News Agency)/Handout via REUTERS</figcaption></figure>



<p>NAIROBI, July 5 (Reuters)&nbsp;&#8211;&nbsp;Kenyan President William Ruto on Friday pledged spending cuts totalling 177 billion shillings ($1.39 billion) in the fiscal year that started in July, after weeks of nationwide protests that forced him to scrap planned tax hikes.</p>



<p>The government will also increase borrowing by about 169 billion shillings to cover the 346 billion shilling hole created by the decision to withdraw the finance bill that was the original spark for the protests.</p>



<p>The demonstrations, which started peacefully before turning violent, have become the biggest threat to Ruto&#8217;s two-year-old presidency. Campaign groups have documented hundreds of arrests and at least 39 deaths linked to the government&#8217;s heavy-handed response, raising fears of rights backsliding.</p>



<p>Ruto said in a televised address to the nation that Kenya&#8217;s budget deficit was now projected at 4.6% of gross domestic product in the 2024/25 financial year, up from an earlier estimate of 3.3%.</p>



<p>Among ways his government will cut spending, Ruto said 47 state corporations would be dissolved, the number of advisors in government would be reduced by 50% immediately, and all non-essential travel by public office bearers would be suspended.</p>



<p>&#8220;Budget lines providing for the operations of the Office of the First Lady, the spouse of the Deputy President, and the Prime Cabinet Secretary, will be removed,&#8221; Ruto said, adding that public servants at retirement age of 60, shall be required to immediately retire.</p>



<p>He said there would be a forensic audit of the country&#8217;s debt and that he would also announce government changes soon.</p>



<p>($1 = 127.7500 Kenyan shillings)</p>



<p>(Reporting by George Obulutsa and Bhargav Acharya; Writing by Alexander Winning; Editing by Bate Felix)</p>


Iran’s President Raisi visits Kenya

Kenya’s Ruto pledges spending cuts after nationwide protests


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-scaled.jpg" alt="" class="wp-image-504220" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Heineken Lokpobiri, Nigeria&#8217;s oil minister, during a Bloomberg Television interview on day two of the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 17, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



<p>ABUJA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Nigeria has been chosen to host the newly formed Africa Energy Bank (AEB), its oil minister said on Thursday, as Africa’s top oil producer beat three rival countries for rights to the multilateral lender.</p>



<p>The decision, reached at an extraordinary meeting of the Council of Ministers of the African Petroleum Producers Organization (APPO), places Nigeria at the forefront of Africa&#8217;s energy future, Minister of State Petroleum Resources Heineken Lokpobiri, said in a statement.</p>



<p>Nigeria&#8217;s bid to host the AEB was strengthened in late May after it ratified the bank&#8217;s charter and President Bola Tinubu approved a $100 million investment to the bank, greater than the required $83.33 million for member states.</p>



<p>The fossil fuel-focused bank, a partnership between Afrexim Bank and APPO, aims to fund energy projects on the continent and support its energy transition goals.</p>



<p>&#8220;This decision reflects our collective ambition to create African solutions to African energy challenges,&#8221; Lokpobiri said.</p>



<p>&#8220;The African Energy Bank will be instrumental in providing the necessary financial backbone for energy projects that will drive growth and development across the continent,&#8221; he added.</p>



<p>The AEB initially has $5 billion to spend when it takes off later this year.</p>



<p>Analysts said that Nigeria, as a founding member of APPO and Africa&#8217;s top energy producers, has shown strong interest in the bank as the country makes a new push for investment into its lagging oil and gas industry.</p>



<p>&#8220;Hosting the bank would be a vote of confidence in Nigeria at a time its energy industry badly needs a boost,&#8221; Clementine Wallop, director for sub-Saharan Africa at political risk consultancy Horizon Engage, said before the announcement was made.</p>



<p>The three other countries that vied to host the AEB are Algeria, Benin and Ghana, after Ivory Coast and South Africa didn&#8217;t meet the necessary requirements.</p>



<p>(Additional reporting by Isaac Anyaogu in Lagos, Wendell Roelf in Cape Town; Editing by Elisha Bala-Gbogbo and David Gregorio)</p>


Day Two Of The World Economic Forum (WEF) 2024

Nigeria beats rivals for bid to host new Africa Energy Bank


<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>



<p>JOHANNESBURG, July 5 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Friday.</p>



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



<p>South Africa June reserves data</p>



<p>Inflation-linked bond auction</p>



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



<p>The South African rand extended its gains against the dollar on Thursday after the U.S. currency slipped on rising expectations that U.S. interest rate cuts are on the way.</p>



<p>On the stock market, the Top-40 index closed more than 0.4% higher.</p>



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



<p>Asian share markets scaled new highs on Friday as investors sized up U.S. rate cuts for September and the mood was upbeat, while the euro hit a three-week peak ahead of French elections.</p>



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



<p>The S&amp;P 500 index and technology-laden Nasdaq rose on Wednesday to post record high closes, as data pointing to a softening economy raised hopes the Federal Reserve could cut interest rates in September.</p>



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



<p>Gold prices firmed on Friday and were set for a second straight weekly gain, while traders awaited U.S. employment data to gauge the trajectory of the Federal Reserve&#8217;s potential interest rate cuts.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; Bank of America says GDP to grow 2% if Eskom maintains momentum</p>



<p>&#8211; Former Tongaat CFO denies responsibility for accounting fraud</p>



<p>(Compiled by Bhargav Acharya)</p>


South African Markets – Factors to watch on July 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>



<p>July 5 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.</p>



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



<p>Kenya&#8217;s President William Ruto and his ministers are due to hold discussions on social media platform X, targeting youth after anti-government protests.</p>



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



<p>Asian share markets scaled new highs on Friday as investors sized up U.S. rate cuts for September and the mood was upbeat, while the euro hit a three-week peak ahead of French elections.</p>



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



<p>Oil prices were little changed in Asian trade on Friday but were on track for a fourth straight week of gains and holding near their highest levels since late April on hopes of strong summer fuel demand and some supply concerns.</p>



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



<p>The Kenyan, Ghanaian, Ugandan and Zambian currencies are forecast to be broadly steady against the dollar in the next week to Thursday, while Nigeria&#8217;s naira is expected to weaken, traders said.</p>



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



<p>The South African rand extended its gains against the dollar on Thursday after the U.S. currency slipped on rising expectations that U.S. interest rate cuts are on the way.</p>



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



<p>The Kenyan shilling was flat in a quiet session on Thursday, as traders said they thought the worst anti-government protests were probably over.</p>



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



<p>Nigerian President Bola Tinubu has asked his economic management team to prepare a 2 trillion naira ($1.33 billion) stimulus plan to address concerns about food supplies and pricing and bolster key sectors, the finance minister said on Thursday.</p>



<h2 class="wp-block-heading" id="h-sudan-politics">SUDAN POLITICS</h2>



<p>More than 136,000 people have fled Sudan&#8217;s southeastern Sennar state since the paramilitary Rapid Support Forces began a series of attacks on towns, the United Nations said on Thursday, the latest wave of displacement caused by Sudan&#8217;s almost 15-month long war.</p>



<h2 class="wp-block-heading" id="h-ghana-politics">GHANA POLITICS</h2>



<p>Ghana&#8217;s Vice-President Mahamudu Bawumia of the country&#8217;s ruling New Patriotic Party (NPP) has picked the current energy minister as his running mate for December&#8217;s presidential election.</p>



<h2 class="wp-block-heading" id="h-nigeria-debt">NIGERIA DEBT</h2>



<p>Nigeria&#8217;s debt to gasoline suppliers has surpassed $6 billion &#8211; doubling since early April &#8211; as state oil firm NNPC struggles to cover the gap between fixed pump prices and international fuel costs, six industry sources said.</p>



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



<p>Ethiopia will receive $10.5 billion in support over the coming years if long-running negotiations with the International Monetary Fund and World Bank are successful, Prime Minister Abiy Ahmed said on Thursday.</p>



<h2 class="wp-block-heading" id="h-tanzania-rates">TANZANIA RATES</h2>



<p>Tanzania&#8217;s central bank left its key interest rate unchanged at 6%, it said on Thursday, adding that inflation expectations were well below target, the economy was growing strongly and exchange rate pressures were expected to ease.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on July 5


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-820x547.jpg" alt="" class="wp-image-504193" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; JULY 02: Demonstrators, gathering in the city center, make a fire as they march towards the parliament building to protest the &#8216;Finance Bill 2024&#8217;, which envisages tax regulation in Nairobi, Kenya on July 02, 2024. Kenyan forces intervened against the protesters. (Photo by Gerald Anderson/Anadolu via Getty Images)</figcaption></figure>



<p>NAIROBI, July 5 (Reuters)&nbsp;&#8211;&nbsp;Kenyan activist Bill Eugene Omollo was walking home after dark in his Nairobi neighbourhood on June 20 when he spotted trouble &#8211; two men eyeing him next to a parked white pick-up without number plates.</p>



<p>The 28-year-old had been involved in the youth-led protests that have upended Kenya since last month and had been released by police only hours earlier following his arrest at one of the demonstrations.</p>



<p>He shouted for help.</p>



<p>&#8220;But people were also running. So they took me,&#8221; he told Reuters.</p>



<p>Dozens of Kenyans have been targeted in similar abductions in the past two weeks, said human rights groups, who blame the extrajudicial arrests on Kenya&#8217;s intelligence services.</p>



<p>Organised online and leaderless, the protests &#8211; initially a call to repeal tax hikes &#8211; have developed into a movement that has cut across Kenya&#8217;s traditional ethnic divisions, becoming the biggest threat of William Ruto&#8217;s two-year-old presidency.</p>



<p>Though Ruto withdrew the tax increases in a victory for the movement, the heavy-handed reaction to the protests &#8211; campaign groups have documented hundreds of arrests and at least 39 deaths &#8211; has raised fears of rights backsliding.</p>



<p>&#8220;The president and I gave a categorical promise to the people of Kenya that the issue was abductions and extrajudicial killings will never happen again,&#8221; Deputy President Rigathi Gachagua said in a televised address. &#8220;Sadly, this is back.&#8221;</p>



<p>A police spokesperson did not respond to a request for comment on the abductions. Nor did Noordin Haji, the director of Kenya&#8217;s intelligence services.</p>



<p>In an interview on Sunday, Ruto denied police involvement in disappearances but broadly defended the actions of the security forces.</p>



<p>However, Irungu Houghton, executive director of Amnesty International Kenya, told Reuters there were clear cases of abuse.</p>



<p>&#8220;People who are considered to be protesters or organisers or even just simply voices of dissent are being plucked from their homes or even as they go to church with their families and locked up,&#8221; he said.</p>



<h2 class="wp-block-heading" id="h-blindfolded-and-interrogated">BLINDFOLDED AND INTERROGATED</h2>



<p>Amnesty, the Kenya National Commission on Human Rights and the Law Society of Kenya all put the number of abductions at more than 30, though they said most were later released.</p>



<p>Faith Odhiambo, the president of Law Society of Kenya, said the interrogations abduction victims have undergone during their ordeals have focused on how the protest movement is financed, how it is organised, and the identity of its leaders.</p>



<p>&#8220;It&#8217;s a very clear indication that the government is behind this,&#8221; she said.</p>



<p>After his aggressors bundled him into their vehicle, Omollo said he was blindfolded and driven to an unknown location where he was brought to a room and ordered to strip to his underwear.</p>



<p>He was forced to sit on the concrete floor, which his captors flooded with freezing water. Then the interrogation and threats to his family began.</p>



<p>&#8220;They asked me &#8216;Who sent you? Who is funding you?&#8217;. I told them no one is funding us,&#8221; said Omollo, who does not know who abducted him and has not reported the incident to the police.</p>



<p>&#8220;I thought I would be a dead man.&#8221;</p>



<h2 class="wp-block-heading" id="h-the-missing">THE MISSING</h2>



<p>Houghton said Amnesty had confirmed some instances of torture during the illegal detentions.</p>



<p>Odhiambo of the Law Society of Kenya said that if the goal of the abductions was to intimidate the victims, then it appeared to be succeeding.</p>



<p>&#8220;They don&#8217;t want to be seen on social media or any forums,&#8221; she said. &#8220;Fear has been instilled.&#8221;</p>



<p>After 24 hours, Omollo&#8217;s abductors loaded him back into their vehicle and left him near a police station.</p>



<p>He is among the lucky ones. The rights groups say a handful of abduction victims remain unaccounted for.</p>



<p>Nairobi resident Mutia Paul is still looking for his 17-year-old brother, Tony, who was last seen heading for a protest on June 25.</p>



<p>Paul has searched at police stations and hospitals. He has scoured the morgues for his body. He now believes Tony is being detained.</p>



<p>&#8220;My heart is full of sorrow, I have done all I can,&#8221; he said.</p>



<p>Activists have vowed to keep up pressure on Ruto and lawmakers. But Omollo told Reuters he has had enough of protesting.</p>



<p>Worried that he was being followed and could be abducted again, he has left Nairobi.</p>



<p>&#8220;I miss my home, I miss my brothers, I miss my sisters and I miss my community,&#8221; he said. &#8220;I feel like a refugee in my own country.&#8221;</p>



<p>(Additional reporting by Aaron Ross and Vivian Wandera; Writing by Olivia Kumwenda-Mtambo; Editing by Joe Bavier and Angus MacSwan)</p>


Demonstration against tax regulation in Kenya

Kenya rights groups decry abductions as government cracks down on protests


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-scaled.jpg" alt="" class="wp-image-459116" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant/File Photo</figcaption></figure>



<p>BRUSSELS/LONDON, July 4 (Reuters) &#8211; Nigeria&#8217;s debt to gasoline suppliers has surpassed $6 billion &#8211; doubling since early April &#8211; as state oil firm NNPC struggles to cover the gap between fixed pump prices and international fuel costs, six industry sources said.</p>



<p>Nigerian President Bola Tinubu announced an end to expensive fuel subsidies last year, allowing pump prices to triple. But state oil company NNPC capped pump prices shortly afterward as citizens chafed under rising cost of living.</p>



<p>The cap, coupled with a naira currency crash, allowed the subsidy to creep back. Tinubu&#8217;s government expects the subsidy to cost at least $3.7 billion this year.</p>



<p>Analysts, NGOs and even government officials have slammed the subsidy for years as wasteful and corrupt. But Nigerians, who get few government services, have long seen cheap fuel as their right, especially in the current cost-of-living crisis.</p>



<p>Last week, deadly riots forced Kenya&#8217;s debt-burdened government to cancel planned tax rises, casting a shadow over efforts elsewhere to inflict any further pain on citizens stung by rising inflation.</p>



<p>Senegal&#8217;s energy subsidy bill remains high, at 3.3% of GDP, while Egypt and Angola are also trying to axe subsidies to shore up state finances.</p>



<p>NNPC began struggling early this year when late gasoline payments surpassed $3 billion.</p>



<p>The company has still not paid for some January imports, traders said, and the late payments amount to $4 billion-$5 billion. Under contract terms, NNPC is meant to pay within 90 days of delivery.</p>



<p>NNPC declined to comment.</p>



<p>&#8220;The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,&#8221; one industry source said.</p>



<p>At least two suppliers already stopped participating in recent tenders after hitting self-imposed debt exposure limits to Nigeria, the sources said, meaning they will not send more gasoline until they receive payments.</p>



<p>Traders thrive in risky environments, but they place limits on how much credit they allocate per trade in order to avoid too much exposure on one borrower. These limits vary by company based on their size and where they operate.</p>



<p>As a result, Nigeria&#8217;s tenders to buy gasoline in June and July were smaller, traders said. NNPC will import via tender about 850,000 tonnes in July, two of the sources said, down from the typical 1 million tonnes in previous months.</p>



<p>Fresh fuel queues have already started to form in Lagos this week.</p>



<p>Nigeria, Africa&#8217;s largest oil exporter, imports virtually all its fuel due to years of neglect at its state-owned oil refineries. The newly opened 650,000 barrel per day Dangote refinery has not yet produced marketable gasoline, and is selling other fuels abroad.</p>



<p>The country has few savings to fall back upon as corruption and wasteful spending have eaten up decades of oil revenues. Cash-strapped NNPC has also mortgaged much of its spot oil cargoes, limiting what it can sell for cash.</p>



<p>In late 2023, NNPC secured its biggest-ever oil-backed loan worth $3.3 billion from Afreximbank and a consortium of traders, including Gunvor, to shore up the country&#8217;s foreign exchange.</p>



<p>(Reporting by Julia Payne and Libby George; Additional reporting by Isaac Anyaogu in Lagos; Editing by Jan Harvey)</p>


FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County

As Nigeria’s gasoline debt hits $6 billion, some traders back out, say sources


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS.jpg" alt="" class="wp-image-503921" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS-768x504.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Trafigura logo is pictured in the company entrance in Geneva March 11, 2012. REUTERS/Denis Balibouse</figcaption></figure>



<p>July 4 (Reuters)&nbsp;&#8211;&nbsp;Trafigura and engineering company Promarks have signed a memorandum of understanding (MOU) with the government of Angola to develop a regional power transmission and supply project, the commodities trading company said on Thursday.</p>



<p>The project under consideration is a 2,000 megawatt high-voltage electricity transmission line to take power produced by hydroelectric dams in the north of Angola to the DRC copper belt and Zambia, integrating with the Southern Africa Power Pool, Trafigura said.</p>



<p>(Reporting by Brijesh Patel in Bengaluru; Editing by David Goodman)</p>


LYNXNPEE8A12W-OZABS

Trafigura and Promarks sign preliminary agreement on Angola power project


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-820x547.jpg" alt="" class="wp-image-503918" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President William Kipchirchir Ruto of Kenya speaks during a plenary session of the Summit on peace in Ukraine, in Stansstad near Lucerne, Switzerland, June 16, 2024. URS FLUEELER/Pool via REUTERS/File Photo</figcaption></figure>



<p>NAIROBI, July 4 (Reuters) &#8211; Kenyan President William Ruto spoke by phone with International Monetary Fund chief Kristalina Georgieva in the days after he withdrew $2.7 billion in proposed tax hikes in response to deadly protests, two diplomatic sources told Reuters.</p>



<p>The finance bill containing the tax increases was central to policy reforms agreed by Kenya with the IMF as part of a lending programme worth $3.6 billion.</p>



<p>Analysts say its withdrawal a week ago is likely to result in Kenya missing key programme targets.</p>



<p>The IMF has been a major target of the ire of young Kenyan protesters, who have accused it of being the driving force behind the proposed tax hikes.</p>



<p>The two sources, who spoke on condition of anonymity, did not provide details about Ruto and Georgieva&#8217;s phone call.</p>



<p>However, they said there was agreement among major donors that the IMF needed to show flexibility on programme targets as Kenya looked to fill the gap caused by the bill&#8217;s withdrawal.</p>



<p>The IMF reached a staff level agreement with Kenya in early June on a policy package needed to complete the lending programme&#8217;s seventh review, expected to unlock a disbursement of several hundred million dollars, but the deal has not yet received approval from the fund&#8217;s Executive Board.</p>



<p>An IMF spokesperson said: &#8220;We remain deeply concerned by the recent tragic events in Kenya and maintain close ongoing and constructive dialogue with the Kenyan authorities,&#8221; when asked about the call.</p>



<p>Ruto&#8217;s spokesperson did not respond to requests for comment.</p>



<p>Since shelving the bill, Ruto has pledged to include austerity measures in a supplemental budget, but has also suggested that the government will need to significantly increase borrowing in the 2024/25 fiscal year.</p>



<p>An IMF spokesperson said last week that its main goal has been helping Kenya overcome its economic challenges and improving its people&#8217;s well-being.</p>



<p>At least 39 people have been killed in the protests, according to a government-funded human rights organisation. Anti-government demonstrations have continued since Ruto pulled the bill, although with lower turnout.</p>



<p>(Additional reporting by Karin Strohecker; Editing by Alexander Smith)</p>


Summit on peace in Ukraine, in Switzerland

Kenya president spoke to IMF chief after pulling tax hikes, sources say


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-820x573.jpg" alt="" class="wp-image-503885" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-1536x1072.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ethiopian Prime Minister Abiy Ahmed speaks in parliament during a session to approve the country&#8217;s 2024/25 budget, in Addis Ababa, Ethiopia, July 4, 2024. REUTERS/Tiksa Negeri</figcaption></figure>



<p>ADDIS ABABA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia will receive $10.5 billion in support over the coming years if long-running negotiations with the International Monetary Fund and World Bank are successful, Prime Minister Abiy Ahmed said on Thursday.</p>



<p>In December, East Africa&#8217;s most populous country, struggling with high inflation and chronic foreign currency shortages, became the third on the continent in as many years to default on its debt.</p>



<p>Sources familiar with the matter previously told Reuters that Ethiopia was seeking to borrow around $3.5 billion under a reform programme with the IMF, while a Western diplomat said it was also trying to secure $3.5 billion in budget support from the World Bank and find another $3.5 billion in savings through debt restructuring.</p>



<p>Analysts say Ethiopia may need to agree to devalue its birr currency&nbsp;ETB=, which trades about 50% weaker than the official exchange rate on the black market, to secure IMF support.</p>



<p>&#8220;We have been having a wide range of talks, negotiations and discussions with the IMF and World Bank. Because we were a bit tough with them and they were also tough with us, the (talks) took five years,&#8221; Abiy told lawmakers.</p>



<p>&#8220;Now with the support of some friendly countries, it seems like many of our ideas have been accepted. If this succeeds and we are able to agree on the reforms, Ethiopia will get $10.5 billion in the coming years,&#8221; he said.</p>



<p>Abiy added that there were some reforms the government was unwilling to undertake right away, without elaborating.</p>



<p>&#8220;There are some areas we think should be reformed now, and there are things we think should stay as it is. If all these suggestions get accepted and we agree, there is an opportunity ahead of us. This reform agenda will play a huge impact in alleviating the debt burden,&#8221; the prime minister said.</p>



<p>(Reporting by Dawit Endeshaw; writing by Hereward Holland; editing by Alexander Winning and Mark Heinrich)</p>


Ethiopia’s Parliament approves 2024/25 fiscal year budget

Ethiopia to get $10.5 bln if IMF, World Bank talks succeed, PM says


<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>



<p>JOHANNESBURG, July 4 (Reuters)&nbsp;&#8211;&nbsp;The following equity and currency market moves may affect South African markets on Thursday.</p>



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



<p>South African assets gained on Wednesday, lifted by optimism over comments by the Federal Reserve chair that reinforced expectations that U.S. interest rate cuts were not far off.</p>



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



<p>Asia stocks hit 27-month highs on Thursday as softer U.S. data narrowed the odds on a September rate cut there, boosting bonds and commodities while dragging on the dollar.</p>



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



<p>The S&amp;P 500 index and technology-laden Nasdaq rose on Wednesday to post record high closes, as data pointing to a softening economy raised hopes the Federal Reserve could cut interest rates in September.</p>



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



<p>Gold prices eased on Thursday but hovered near a two-week high hit in the previous session after softer-than-expected U.S. economic data fuelled hopes that the Federal Reserve could cut interest rates as soon as September.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; Bidvest to end 26-year bank journey</p>



<p>&#8211; Leon Schreiber extends temporary concession for foreign nationals</p>



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



<p>&#8211; Global giants are ditching SA&#8217;s massive gas find amid frustration with govt, insiders say</p>



<p>(Compiled by Bhargav Acharya)</p>


South African Markets – Factors to watch on July 4


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



<p>July 4 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.</p>



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



<p>Ethiopia&#8217;s Prime Minister Abiy Ahmed to appear in parliament to answer wide-ranging questions from lawmakers.</p>



<p>Tanzania&#8217;s central bank announces its latest lending rate decision.</p>



<p>After Kenya&#8217;s President William Ruto withdrew the contentious finance bill of 2024, anti-government protesters vowed to keep demonstrating as their demands spread to include a call for his resignation.</p>



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



<p>Asia stocks hit 27-month highs on Thursday as softer U.S. data narrowed the odds on a September rate cut there, boosting bonds and commodities while dragging on the dollar.</p>



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



<p>Oil prices fell in Asia on Thursday, with investors turning cautious on expectations of lower demand as U.S. employment and business data came in weaker than forecast, signalling the economy of the world&#8217;s top oil consumer may be cooling.</p>



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



<p>South African assets gained on Wednesday, lifted by optimism over comments by the Federal Reserve chair that reinforced expectations that U.S. interest rate cuts were not far off.</p>



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



<p>The Kenyan shilling shrugged off uncertainty caused by nationwide anti-government protests and firmed slightly on Wednesday, bolstered by hard currency inflows from tea exporters and diaspora remittances, traders said.</p>



<h2 class="wp-block-heading" id="h-niger-security">NIGER SECURITY</h2>



<p>Niger&#8217;s junta has agreed to talks with Benin&#8217;s government, led by two former Benin presidents, to help restore relations after a coup in Niger last year led to the border closing and a China-backed oil pipeline shutting down.</p>



<h2 class="wp-block-heading" id="h-congo-imf">CONGO IMF</h2>



<p>The International Monetary Fund said on Wednesday its executive board had concluded a sixth and last review of Congo&#8217;s loan program, allowing for an immediate disbursement of about $224.7 million.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on July 4


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-820x542.jpg" alt="" class="wp-image-503797" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Traffic drives down Sokoine Drive at dusk away from modern high rise buildings in the Ilala central business district in Dar es Salaam, Tanzania. (Photo by: Andy Soloman/UCG/Universal Images Group via Getty Images)</figcaption></figure>



<p>DAR ES SALAAM, July 4 (Reuters) &#8211; Tanzania&#8217;s central bank left its key interest rate unchanged at 6%, it said on Thursday, adding that inflation expectations were well below target, the economy was growing strongly and exchange rate pressures were expected to ease.</p>



<p>The Bank of Tanzania introduced a benchmark interest rate in January as part of a new monetary policy framework, first setting it at 5.5% before raising it to 6.0% in April.</p>



<p>The bank targets inflation of 5%, but consumer inflation has stayed comfortably below that, coming in at 3.1% year-on-year in May.</p>



<p>In its latest Monetary Policy Committee (MPC) statement, the central bank said inflation was expected to range from 3%-4% in the second half of 2024.</p>



<p>&#8220;The MPC expects Tanzania&#8217;s economy to continue growing strongly, food supply to be adequate, and exchange rate pressures to moderate owing to increased foreign exchange inflows from tourism, gold, as well as cash crops and food,&#8221; the statement read.</p>



<p>Economic growth for the first and second quarters of the year was estimated around 5.0% and 5.4%, respectively, it said.</p>



<p>The current account deficit in the country of around 65 million people is estimated to have narrowed slightly to $959 million in the quarter ending in June, compared with $978 million in the corresponding quarter in 2023.</p>



<p>The improvement was driven by higher export earnings from gold and crops as well as tourism, the bank said.</p>



<p>Foreign exchange reserves remained adequate, above $5 billion at the end of June, sufficient to cover more than 4 months of projected imports, it said.</p>



<p>In the financial year that ended in June, the central bank bought 418 kg of gold to bolster its reserves and in the current financial year it intends to buy 6 metric tons of gold, deputy governor Yamungu Kayandabila told reporters.</p>



<p>(Reporting by Nuzulack Dausen; Writing by Hereward Holland; Editing by Alexander Winning and Emelia Sithole-Matarise)</p>


Kivokoni Road and tall buildings Dar es Salaam, Tanzania

Tanzania central bank holds key rate, sees strong economic growth


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-820x558.jpg" alt="" class="wp-image-503524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-1536x1046.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Farmers harvest maize crop facilitated by the Safaricom DigiFarm App that helps agribusinesses and small holding farmers to share information and transact easily, in Sigor village of Bomet County, Kenya, May 28, 2020. REUTERS/Jackson Njehia/File Photo</figcaption></figure>



<p>NAIROBI, July 3 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy grew 5.0% year-on-year in the first quarter of 2024, down slightly from the 5.5% growth in the same quarter last year, its statistics office said on Wednesday.</p>



<p>Growth was driven by sectors including agriculture, forestry and fishing, real estate, financial and insurance, information and communication, and accommodation and food services, the Kenya National Bureau of Statistics (KNBS) said.</p>



<p>&#8220;Similar to the first quarter of 2023, agricultural production was vibrant in the corresponding quarter of 2024, owing to favourable weather conditions that supported crop and animal production during the quarter,&#8221; KNBS said in a statement.</p>



<p>Growth was also marginally higher in the fourth quarter of 2023, at 5.1% year-on-year.</p>



<p>(Reporting by Hereward Holland; Editing by Alexander Winning)</p>


Farmers harvest maize crop facilitated by the Safaricom DigiFarm App that helps agribusinesses and small holding farmers to share information and transact easily, in Sigor village of Bomet County

Kenyan economic growth down slightly at 5.0% in first quarter


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-820x525.jpg" alt="" class="wp-image-503489" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-820x525.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-1536x984.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A protester carries a casket during a demonstration over police killings of people protesting against the imposition of tax hikes by the government, in Nairobi, Kenya, July 2, 2024. REUTERS/John Muchucha/File Photo</figcaption></figure>



<p>NAIROBI, July 3 (Reuters) &#8211; Activists behind Kenya&#8217;s anti-government protests are rethinking their strategy after demonstrations on Tuesday were marred by violence and looting that they fear could undermine the movement and its efforts to push President William Ruto to resign.</p>



<p>The activists say the violence was the work of &#8220;goons&#8221; hired by politicians to either discredit legitimate demonstrators or advance their own agendas. Some called on social media for the next planned demonstration on Thursday not to go ahead.</p>



<p>&#8220;It seems the state has realised that the only way to counter this movement is by using goons to incite violence, break into people&#8217;s property, loot, and tarnish our cause,&#8221; Ojango Omondi, an activist in the capital Nairobi, told Reuters.</p>



<p>&#8220;It&#8217;s time to go back to the drawing board and strategise on how best to overcome this violence and keep our protests focused on their true objectives.&#8221;</p>



<p>Kenya&#8217;s government spokesperson did not respond to a request for comment. In a statement on Tuesday, Interior Minister Kithure Kindike blamed violence on &#8220;hordes of marauding criminal gangs&#8221; and said there was an attempt to &#8220;politicise crime&#8221;.</p>



<p>The initial protests last month against proposed tax hikes were overwhelmingly peaceful, although the police fired tear gas and water cannon at demonstrators.</p>



<p>The mobilisation of Kenyans from across ethnic lines around common economic demands marked a break with previous protest movements that have typically been organised by political figures with ethnic grievances often at the fore.</p>



<p>The protests became violent as some demonstrators briefly stormed parliament last week and the police opened fire, killing dozens.</p>



<p>The next day, Ruto withdrew the tax increases. But protesters vowed to carry on, issuing a range of demands, from anti-corruption measures to Ruto&#8217;s resignation.</p>



<p>Almost from the outset, protests on Tuesday were marked by violence. Stone-throwing young men clashed with police in Nairobi and other towns. Looters stormed businesses, leading shopowners to arm themselves with sticks and clubs.</p>



<p>Foi Wambui, a young actress who had come to protest in downtown Nairobi, said she was heading home because of the chaos.</p>



<p>&#8220;What has happened is that peaceful protesters are deterred from coming to town, and we are deterred from actually coming and practising our civic duties,&#8221; she told Reuters.</p>



<h2 class="wp-block-heading" id="h-discrediting-the-movement">DISCREDITING THE MOVEMENT</h2>



<p>In official statements, Ruto and the government have generally distinguished between peaceful protesters and those they brand as criminals that have hijacked the demonstrations.</p>



<p>But their allies have seized on the violence to try to discredit the movement, popularly known as Gen Z protests for their youthful following.</p>



<p>Dennis Itumbi, a political consultant close to Ruto, posted a video on X of a group of young men robbing another man in the streets. It was not clear where or when the video was taken.</p>



<p>&#8220;Congratulations Gen-Z for your Peaceful and democratic protests along the streets,&#8221; Itumbi wrote. &#8220;The police should not interfere with your moves.</p>



<p>Gerald Bitok, the communications director at the presidency, said young people were beginning to turn against the protests.</p>



<p>&#8220;The Gen Zs and the young people of this country have made it crystal clear that going forward, they will not be part of the demonstrations that are now synonymous with terror,&#8221; he said on X.</p>



<p>On a public forum on X on Tuesday evening that was attended by over 400,000 people, one supporter of the protest movement said it bore some responsibility for the chaos by continuing to call for demonstrations after Ruto withdrew the tax hikes.</p>



<p>&#8220;You are equally culpable if you are still beating the drums of war,&#8221; he said.</p>



<p>Other speakers said what they referred to as paid goons were to blame, but several agreed that demonstrators should take a step back and call off Thursday&#8217;s protest.</p>



<p>&#8220;We will have more casualties and we will not achieve what we want,&#8221; said one. &#8220;Let&#8217;s go back. Let&#8217;s strategise.&#8221;</p>



<p>(Reporting by Aaron Ross; Additional reporting by George Obulutsa and Mukelwa Hlatshwayo; Editing by Tomasz Janowski and Barbara Lewis)</p>


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