
<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 3 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, equity and currency market moves may affect South African markets on Wednesday.</p>



<h2 class="wp-block-heading" id="h-economic-event">ECONOMIC EVENT</h2>



<p>S&amp;P Global Whole Econ PMI for June</p>



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



<p>The South African rand extended losses on Tuesday after a turbulent start to the week as markets waited to see how the new government of national unity (GNU) would approach economic reform following the formation of the cabinet.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed down 0.3%.</p>



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



<p>Asian stocks rose on Wednesday as comments from Federal Reserve Chair Jerome Powell reinforced expectations that U.S. rate cuts were not far off, while the yen struggled at levels last seen in 1986, keeping traders wary of Japanese intervention.</p>



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



<p>Wall Street&#8217;s main stock indexes closed higher on Tuesday, boosted by gains in Tesla and megacap growth stocks, but volumes were thin ahead of the July Fourth holiday and the closely watched release of June nonfarm payrolls on Friday.</p>



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



<p>Gold prices were flat on Wednesday as investors awaited minutes of the Federal Reserve&#8217;s last policy meeting for fresh cues on when the U.S. central bank will start cutting interest rates.</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; Sibanye carves away over 11,000 jobs in 18 months</p>



<p>&#8211; Sasol warns of uncertain future for piped-gas market</p>



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



<p>&#8211; Discovery ordered to withdraw &#8216;misleading&#8217; gap cover ad</p>



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


istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on July 3


<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>



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



<p>Release of the Stanbic Bank Kenya Purchasing Managers&#8217; Index survey for June.</p>



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



<p>Asian stocks rose on Wednesday as comments from Fed Chair Jerome Powell reinforced expectations that U.S. rate cuts were not far off, while the yen remained pinned near levels last seen in 1986, keeping traders wary of Japanese intervention.</p>



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



<p>Oil prices rose on Wednesday after industry data showed a bigger-than-expected draw in U.S. crude stockpiles, while the market kept tabs on flaring tensions in the Middle East.</p>



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



<p>The South African rand extended losses on Tuesday after a turbulent start to the week as markets waited to see how the new government of national unity (GNU) would approach economic reform following the formation of the cabinet.</p>



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



<p>The Kenyan shilling was steady on Tuesday, with ample hard-currency supply preventing a sell-off over anti-government protests that prompted the president to abandon planned tax hikes last week, traders said.</p>



<h2 class="wp-block-heading" id="h-kenya-politics">KENYA POLITICS</h2>



<p>Riot police fired tear gas grenades and charged at stone-throwing protesters in downtown Nairobi and across Kenya on Tuesday in the most widespread unrest since at least two dozen protesters died in clashes a week ago.</p>



<h2 class="wp-block-heading" id="h-burkina-faso-security">BURKINA FASO SECURITY</h2>



<p>Arouna Loure, a vocal critic of Burkina Faso&#8217;s ruling military junta, received a conscription order on Sept. 7 last year requesting that the anaesthesiologist start a month of military service four days later.</p>



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



<p>Unidentified armed men have killed around 40 people in an attack on a village in insurgent-plagued central Mali, local officials said on Tuesday.</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 3


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-820x530.jpg" alt="" class="wp-image-503421" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-768x496.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-1536x993.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view shows the Nairobi cityscape on the Nairobi Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, along Waiyaki Way within the Central Business district of Nairobi, Kenya May 7, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



<p>NAIROBI, July 3 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector activity fell in June, hit by the impact of widespread protests against a now-shelved finance law, a business survey showed on Wednesday.</p>



<p>The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) fell to 47.2 in June from 51.8 in May. Readings below 50.0 signal contraction.</p>



<p>&#8220;Tough economic conditions brought on by the cost-of-living crisis, as well as protests surrounding the country&#8217;s finance bill hurt sales volumes,&#8221; Stanbic Bank Kenya said in comments accompanying the survey.</p>



<p>&#8220;The downturn was partially softened by a rise in new orders across manufacturing, which was the only monitored sector to register growth in June.&#8221;</p>



<p>Last week President William Ruto withdrew a contested finance law that would have raised taxes after clashes between protesters and police killed at least 24 people.</p>



<p>However, Kenyan activists have urged people to take to the streets again, calling on the government to take tougher action to curb wasteful spending and corruption.</p>



<p>&#8220;In June, momentum in private sector activity declined, reflecting several concerns, top of the list being the proposed increase in taxes via the Finance Bill 2024, and the widespread protests in response,&#8221; Christopher Legilisho, an economist at Stanbic Bank, said.</p>



<p>(Reporting by George Obulutsa; Editing by Christina Fincher)</p>


A view shows the Nairobi cityscape on the Nairobi Expressway undertaken by the China Road and Bridge Corporation along Waiyaki Way within Westlands district of Nairobi

Kenya’s private sector activity contracts in June, PMI shows


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="474" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/I626AAIJRJP7DJDRYXCYV56KLA-820x474.jpg" alt="" class="wp-image-503418" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/I626AAIJRJP7DJDRYXCYV56KLA-820x474.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/I626AAIJRJP7DJDRYXCYV56KLA-300x173.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/I626AAIJRJP7DJDRYXCYV56KLA-156x90.jpg 156w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/I626AAIJRJP7DJDRYXCYV56KLA-768x444.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/I626AAIJRJP7DJDRYXCYV56KLA-1536x887.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/I626AAIJRJP7DJDRYXCYV56KLA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The Hillbrow Tower, an iconic tower used to identify the Johannesburg skyline, is seen as the sun rises, in Johannesburg, South Africa, June 20, 2019. REUTERS/Siphiwe Sibeko</figcaption></figure>



<p>JOHANNESBURG, July 3 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity fell in June as output and new orders slipped on uncertainty over the outcome of an election held in May, a survey showed on Wednesday.</p>



<p>The S&amp;P Global South Africa Purchasing Managers&#8217; Index fell to 49.2 in June from 50.4 in May. A reading below 50 indicates contraction.</p>



<p>South Africans voted in a national election on May 29, which saw the African National Congress lose its parliamentary majority for the first time since the end of apartheid 30 years ago, creating some uncertainty in financial markets.</p>



<p>The ANC opted to rule in a government of national unity with 10 other political parties and markets spent much of June awaiting the composition of President Cyril Ramaphosa&#8217;s cabinet.</p>



<p>&#8220;The PMI&#8217;s print of 49.2, linked to sharper falls in output and new orders, was largely due to a temporary pause in customer spending as businesses awaited the outcome of the general election,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.</p>



<p>Business conditions deteriorated on the quickest fall in output in three months and a drop in new order volumes for the fourteenth month in a row.</p>



<p>&#8220;We may see a slight recovery in sales in July as firms return to normal activity,&#8221; Owen said.</p>



<p>(Reporting by Tannur Anders; Editing by Christina Fincher)</p>


The Hillbrow Tower, an iconic tower used to identify the Johannesburg skyline, is seen as the sun rises, in Johannesburg

South Africa business activity falls in June, PMI shows


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg" alt="" class="wp-image-419915" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, D.C., U.S., on Tuesday, April 19, 2022. The International Monetary Fund (IMF) slashed its world growth forecast by the most since the early months of the Covid-19 pandemic, and projected even faster inflation, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images</figcaption></figure>



<p>LUSAKA, July 2 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has approved a $208 million grant for Zambia to help address the social and economic impact of drought that has hit the southern African nation, its finance ministry said on Tuesday.</p>



<p>Southern Africa is enduring its worst drought in years, owing to a combination of naturally occurring El Nino &#8211; when an abnormal warming of waters in the eastern pacific radiates heat into the air leading to hotter weather across the world &#8211; and higher average temperatures produced by greenhouse gas emissions.</p>



<p>Zambia, Malawi and Zimbabwe have all declared a state of disaster because of the drought, which has hit food production and livelihoods of millions of people.</p>



<p>The World Bank grant is intended to help Zambia effectively respond to the impact of drought through the provision of additional temporary cash payments to affected households.</p>



<p>&#8220;Specifically, it will support at least over 1.6 million households across 84 drought-impacted districts with emergency cash assistance over a 12-month period,&#8221; Zambia&#8217;s finance ministry said in a statement.</p>



<p>The World Bank financing would also strengthen existing social protection programmes, the ministry said.</p>



<p>The International Monetary Fund&#8217;s board last month approved a request from the Zambian government to increase its financial support to Zambia to $1.7 billion from $1.3 billion to help the nation respond to the drought.</p>



<p>(Reporting by Chris Mfula; Editing by Susan Fenton)</p>


IMF And World Bank Headquarters During Virtual Spring Meetings

World Bank approves $208 million for Zambia’s drought response


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="544" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-820x544.jpg" alt="" class="wp-image-503124" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-820x544.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-1536x1018.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People attend a demonstration over police killings of people protesting against the imposition of tax hikes by the government in Nairobi, Kenya, July 2, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



<p>NAIROBI/MOMBASA, July 2 (Reuters)&nbsp;&#8211;&nbsp;Riot police fired tear gas grenades and charged at stone-throwing protesters in downtown Nairobi&nbsp;and across Kenya on Tuesday in the most widespread unrest since at least two dozen protesters died in clashes a week ago.</p>



<p>The nationwide demonstrations signalled that President William Ruto had failed to appease a spontaneous youth protest movement, despite having abandoned plans for tax rises that triggered the unrest last week.</p>



<p>Tuesday&#8217;s demonstrations began in ebullient mood but turned more violent as the day wore on. In Nairobi&#8217;s downtown business district, police wearing helmets and carrying shields and wooden clubs charged at the protesters, and tear gas bombs exploded in the crowds.</p>



<p>A kiosk was set ablaze in the centre of a street. Medics tended to a youth who lay on the pavement with a bloody hand. Police bundled other youths into the bed of a pickup truck.</p>



<p>Outside the capital, hundreds of protesters marched through&nbsp;Mombasa, Kenya&#8217;s second largest city,&nbsp;on the Indian Ocean coast. They carried palm fronds, blew on plastic horns and beat on drums, chanting &#8220;Ruto must go!&#8221;</p>



<p>Later, Kenya&#8217;s NTV television reported two people shot in Mombasa, showing pictures of cars ablaze.</p>



<p>Ruto, facing the worst crisis of his nearly two-year-old presidency, has been caught between the demands of lenders such as the International Monetary Fund to cut deficits, and a hard-pressed population reeling from the soaring cost of living.</p>



<p>Members of the protest movement, which has no official leaders and largely organises via social media, have rejected Ruto&#8217;s appeals for dialogue &#8211; even after he abandoned his proposed tax rises.</p>



<p>&#8220;People are dying in the streets and the only thing he can talk about is money. We are not money. We are people. We are human beings,&#8221; protester Milan Waudo told Reuters in Mombasa. &#8220;He needs to care about his people, because if he can&#8217;t care about his people then we don&#8217;t need him in that chair.&#8221;</p>



<p>Other protests took place in Kisumu, Nakuru, Kajiado, Migori, Mlolongo and Rongo, according to images broadcast on Kenyan television. In the southwestern town of Migori, protesters set tyres on fire.</p>



<p>The Kenya National Commission on Human Rights (KNHCR) says 39 Kenyans&nbsp;have been killed in demonstrations and clashes with police since June 18.&nbsp;Most of the deaths took place on June 25 when&nbsp;officers opened fire near parliament where some protesters&nbsp;tried to storm the building to prevent lawmakers from voting on the tax hikes.</p>



<h2 class="wp-block-heading" id="h-beautiful-day">&#8216;BEAUTIFUL DAY&#8217;</h2>



<p>&#8220;We are determined to push for the president&#8217;s resignation,&#8221; said Ojango Omondi, an activist in Nairobi. &#8220;We hope for a peaceful protest and minimal casualties, if any.&#8221;</p>



<p>The authorities appealed for calm.</p>



<p>&#8220;It&#8217;s a beautiful day to choose patriotism. A beautiful day to choose peace, order and the sanctity of our nationhood,&#8221; State House communications director Gerald Bitok wrote on X on Tuesday, adding in Swahili: &#8220;Violence is not patriotism.&#8221;</p>



<p>Some activists who had called for the demonstrations deplored the unrest. &#8220;Goons have infiltrated,&#8221; Hanifa Adan, an activist and reporter for the Eastleigh Voice newspaper, wrote on X, followed by broken heart emojis.</p>



<p>Opposition leader Raila Odinga, runner-up in the last four presidential elections, backed the protesters though they have called on politicians to keep out of it.</p>



<p>&#8220;The youth have given our country its last best chance,&#8221; Odinga&#8217;s ODM party said in a statement. &#8220;We either seize it and swim with it by implementing all their demands, or we ignore it and sink the country altogether.&#8221;</p>



<p>The protests, which started as an online outpouring of anger over nearly $2.7 billion of tax&nbsp;increases in a proposed finance bill, have grown into a nationwide movement against corruption and&nbsp;misgovernance.</p>



<p>Ruto has directed the treasury to come up with ways to cut spending to fill a budget gap left by the withdrawal of the tax plans, and also said more borrowing would be required.</p>



<p>Veteran anti-corruption activist John Githongo told Reuters that while Ruto had addressed the nation and media, &#8220;there isn&#8217;t an indication that he wants to take action&#8221; on protesters&#8217; demands, including firing corrupt officials.</p>



<p>&#8220;There hasn&#8217;t been any indication by the government that they are going to take the calls to deal with corruption seriously,&#8221; he said.</p>



<p>The protests&nbsp;had been&nbsp;mostly peaceful until&nbsp;June 25, when some&nbsp;demonstrators&nbsp;briefly stormed parliament and set part of it ablaze,&nbsp;prompting&nbsp;police&nbsp;to&nbsp;open fire.</p>



<p>Ruto has defended the actions of the police and blamed the violence on &#8220;criminals&#8221; who&nbsp;had&nbsp;hijacked the demonstrations.</p>



<p>(Reporting by Aaron Ross, Monicah Njeri, Jeff Kahinju, Olivia Kumwenda-Mtambo in Nairobi and Dicksy O&#8217;Biero in Mombasa; writing by Hereward Holland and Peter Graff; editing by Andrew Heavens, Bernadette Baum, Gareth Jones and Mark Heinrich)</p>


Anti-government protests against the imposition of tax hikes by the government in Nairobi

Tear gas, stones and flames as Kenya protesters say ‘Ruto must go!’


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="494" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-820x494.jpg" alt="" class="wp-image-503084" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-820x494.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-300x181.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-149x90.jpg 149w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-768x463.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-1536x926.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A logo is seen on the roof of the ArcelorMittal steelworks headquarters in Ostrava, Czech Republic, April 1, 2016.   REUTERS/David W Cerny/File Photo</figcaption></figure>



<p>July 2 (Reuters) &#8211; ArcelorMittal&#8217;s South African division has decided against shutting its steel plant in the KwaZulu-Natal province and is working on a plan to make it viable, it said on Tuesday, more than six months after announcing its closure.</p>



<p>The company&#8217;s Johannesburg-listed shares fell 12.1% by 1004 GMT after a trading update said that losses would widen because of tough market conditions and disruption at its Vanderbijlpark furnaces, where it produces flat steel products.</p>



<p>It expects to report a headline half-year loss per share between 0.96 rand and 1.04 rand, compared with a headline loss of 0.40 rand per share in the same period last year.</p>



<p>The decision to shelve closure of the long steel operations, which produce fencing material, rods and bars used in sectors such as construction, mining and manufacturing, will save 3,500 direct jobs and thousands more indirectly, ArcelorMittal South Africa CEO Kobus Verster said on a media call.</p>



<p>In January the South African unit of the world&#8217;s second-largest steelmaker by output MT.LU delayed the closure of the business by up to six months as it engaged with government and labour to resolve issues hitting profitability and to avert job losses.</p>



<p>The board and management have decided that the business will continue to operate to allow full exploration of the short, medium and longer-term initiatives aimed at securing its sustainability, ArcelorMittal South Africa said.</p>



<p>Announcing the planned closure last November, the steelmaker had blamed weak demand and infrastructure problems in Africa&#8217;s most advanced economy. It also bemoaned policies that gave scrap metal an advantage over iron ore in steel production.</p>



<p>ArcelorMittal South Africa on Monday noted some improvements in electricity generation as well as port and rail efficiencies.</p>



<p>The non-renewal of a steel scrap export ban after it expired in December 2023 had also started to bring &#8220;greater fairness and equity into the input cost structures&#8221; between integrated steelmakers such as ArcelorMittal and scrap-based producers, the company said.</p>



<p>The company has also obtained a 1 billion rand ($54.29 million) working capital facility to support continued operations.</p>



<p>($1 = 18.4182 rand)</p>



<p>(Reporting by Nelson Banya; Editing by Anil D&#8217;Silva and David Goodman)</p>


FILE PHOTO: A logo is seen on the roof of the ArcelorMittal steelworks headquarters in Ostrava

ArcelorMittal shelves plan to close South African steel plant


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="581" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-820x581.jpg" alt="" class="wp-image-503034" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-820x581.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-300x213.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-768x544.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-1536x1088.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Excavators and drillers at work in an open pit at Tenke Fungurume, a copper and cobalt mine 110 km (68 miles) northwest of Lubumbashi in Congo&#8217;s copper-producing south. Picture taken January 29, 2013. REUTERS/Jonny Hogg//File Photo</figcaption></figure>



<p>NEW DELHI, July 2 (Reuters)&nbsp;&#8211;&nbsp;India is in talks with&nbsp;countries in Africa&nbsp;and Latin America&nbsp;to get critical&nbsp;mineral blocks on a government-to-government basis, Veena Kumari Dermal, joint secretary&nbsp;of the&nbsp;Ministry of Mines, said at an industry event on Tuesday.</p>



<p>The official&nbsp;said that&nbsp;India is&nbsp;also in discussions&nbsp;with Australia for critical&nbsp;minerals.</p>



<p>The South Asian country may&nbsp;have to&nbsp;fast-track&nbsp;clearance for domestic critical minerals blocks,&nbsp;she added.</p>



<p>&#8220;We are having lots of discussions with many other resource-rich countries both in Africa as well as in Latin America for getting a block on a G2G basis or on a priority basis&#8221;, the joint secretary said.</p>



<p>Indian state-owned firm Khanij Bidesh India Ltd (KABIL) is in&nbsp;the&nbsp;process of setting up in Argentina to start exploration, the joint secretary said.</p>



<p>In January, KABIL signed a $24 million lithium exploration pact for five blocks in Argentina.</p>



<p>V.L. Kantha Rao, India&#8217;s secretary of mines, said at industry event in March that India was exploring opportunities in Africa for minerals such as copper, cobalt, and other critical resources, while also pursuing lithium blocks in Australia.</p>



<p>(Reporting by Neha Arora in New Delhi, Writing by Ashna Teresa Britto; Editing by Mrigank Dhaniwala and Sonia Cheema)</p>


https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM

India in talks with Africa, Latin America countries for critical mineral blocks, official 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 2 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Tuesday.</p>



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



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



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



<p>South African assets gave up some gains on Monday as the initial optimism shown by the markets waned a day after President Cyril Ramaphosa formed a new cabinet.</p>



<p>On the Johannesburg Stock Exchange, the Top-40 index closed around 0.2% weaker. The country&#8217;s benchmark 2030 government bond rose, with the yield down 3 basis points at 9.955%.</p>



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



<p>The U.S. dollar hovered near an almost 38-year high to the yen on Tuesday following a surge in Treasury yields as investors contemplated the potential for a second Donald Trump presidency.</p>



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



<p>Megacap growth stocks led by Apple and Tesla lifted the tech-heavy Nasdaq to a higher close on Monday, while the Dow and the S&amp;P 500 also eked out slight gains in light pre-holiday trading.</p>



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



<p>Gold prices slipped on Tuesday as the U.S. dollar held firm, while investors awaited comments from Federal Reserve Chair Jerome Powell as well as the country&#8217;s jobs data for further clues about the interest rate outlook.</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; Election outcome a boon for JSE and bonds</p>



<p>&#8211; Work visas high on new home affairs minister’s agenda</p>



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


South African Markets – Factors to watch on July 2


<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 2 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.</p>



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



<p>Protesters in Kenya have said they will embark on another week of anti-government activism including strikes and demonstrations, that last week forced President William Ruto to abandon deeply unpopular tax hikes.</p>



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



<p>The U.S. dollar hovered near an almost 38-year high to the yen on Tuesday following a surge in Treasury yields as investors contemplated the potential for a second Donald Trump presidency.</p>



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



<p>Oil prices were little changed on Tuesday, holding near the two-month highs reached in the previous session, on expectations for rising fuel demand from the summer travel season and possible U.S. interest rate cuts that could boost economic growth.</p>



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



<p>South African assets gave up some gains on Monday as the initial optimism shown by the markets waned a day after President Cyril Ramaphosa formed a new cabinet.</p>



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



<p>The Kenyan shilling held steady against the dollar on Monday, but was under pressure as importers and manufacturers sought hard currency, traders said.</p>



<h2 class="wp-block-heading" id="h-kenya-politics">KENYA POLITICS</h2>



<p>Kenyan activists called for protesters to take to the streets again on Tuesday, with many rejecting appeals from President William Ruto for dialogue following his decision to withdraw proposed tax hikes.</p>



<h2 class="wp-block-heading" id="h-somalia-ethiopia-security">SOMALIA-ETHIOPIA SECURITY</h2>



<p>Turkey has begun mediating talks between Somalia and Ethiopia over a port deal Addis Ababa signed with the breakaway region of Somaliland earlier this year, Ankara and four officials familiar with the matter said.</p>



<h2 class="wp-block-heading" id="h-ghana-debt">GHANA DEBT</h2>



<p>The International Monetary Fund said on Monday it had revised up Ghana&#8217;s growth forecast for 2024 to reflect the West African nation&#8217;s improved economic stability.</p>



<h2 class="wp-block-heading" id="h-congo-aid">CONGO AID</h2>



<p>Two employees of Britain-based aid agency Tearfund have been killed in an attack on their convoy in eastern Democratic Republic of Congo, the charity said on Monday.</p>



<h2 class="wp-block-heading" id="h-congo-mining">CONGO MINING</h2>



<p>Democratic Republic of Congo&#8217;s state miner Gecamines said on Monday it would not approve the sale of cobalt miner Chemaf SA and its Congolese assets to Chinese miner Norin Mining.</p>



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



<p>Nigeria&#8217;s new Dangote oil refinery is increasing gasoil exports to West Africa, taking market share from European refiners, according to traders and shipping data.</p>



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


African Markets – Factors to watch on July 2


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-820x547.jpg" alt="" class="wp-image-503012" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A protester walks amid smoke as supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, participate in an anti-government protest against the imposition of tax hikes by the government in Nairobi, Kenya July 21, 2023. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



<p>NAIROBI, July 2 (Reuters) &#8211; Riot police used tear gas to disperse protesters in Kenya&#8217;s capital Nairobi on Tuesday and demonstrations took place in other towns, after young activists called for more protests following a week of clashes in which dozens died.</p>



<p>Reuters journalists saw clouds of tear gas on a main road through central Nairobi before midday, where riot police in helmets had been present since early morning.</p>



<p>Outside the capital, Kenyan television stations showed hundreds of protesters marching peacefully, carrying palm fronds in Mombasa on the Indian Ocean coast, and dozens in Kisumu on Lake Victoria. In the southwestern town of Migori, protesters had set tyres on fire.</p>



<p>Members of the protest movement, which has no official leaders and largely organises via social media, have rejected appeals from President William Ruto for dialogue, even after he abandoned proposed tax rises that triggered the demonstrations.</p>



<p>Dozens of Kenyans have been killed in demonstrations and clashes with police since June 18, most of them shot by officers last Tuesday, when some protesters tried to storm parliament to block lawmakers from voting on the tax increases.</p>



<p>Infuriated by the deaths &#8211; at least 39 according to the government-funded Kenya National Commission on Human Rights (KNHCR) &#8211; many are demanding that Ruto steps down.</p>



<h2 class="wp-block-heading" id="h-demanding-ruto-s-resignation">DEMANDING RUTO&#8217;S RESIGNATION</h2>



<p>&#8220;We are determined to push for the president&#8217;s resignation,&#8221; said Ojango Omondi, an activist in Nairobi. &#8220;We hope for a peaceful protest and minimal casualties, if any.&#8221;</p>



<p>The authorities appealed for calm.</p>



<p>&#8220;It&#8217;s a beautiful day to choose patriotism. A beautiful day to choose peace, order and the sanctity of our nationhood,&#8221; State House communications director Gerald Bitok wrote on X on Tuesday, adding in Swahili: &#8220;Violence is not patriotism.&#8221;</p>



<p>Downtown Nairobi was busier on Tuesday morning than it had been in recent days, with shops that had been shut during the protests reopening. Residents believed the worst of the unrest had passed for now.</p>



<p>&#8220;I think it&#8217;s not going to be maandamano (protest) because maybe people are afraid, because some people have been shot,&#8221; said Kennedy Otwal, who was walking through downtown.</p>



<p>The protests, which started as an online outpouring of anger over nearly $2.7 billion of tax hikes in a proposed finance bill, have grown into a nationwide movement against corruption and misgovernance.</p>



<h2 class="wp-block-heading" id="h-caught-between-demands">CAUGHT BETWEEN DEMANDS</h2>



<p>Ruto, facing the most serious crisis of his nearly two-year-old presidency, has been caught between the demands of lenders such as the International Monetary Fund to cut deficits, and a hard-pressed population reeling from the soaring cost of living.</p>



<p>He has directed the treasury to come up with ways to cut spending to fill a budget gap caused by the bill&#8217;s withdrawal, and also said more borrowing will be required.</p>



<p>Veteran anti-corruption activist John Githongo told Reuters that while Ruto had addressed the nation and media, &#8220;there isn&#8217;t an indication that he wants to take action&#8221; on protesters&#8217; demands, including firing corrupt officials.</p>



<p>&#8220;There hasn&#8217;t been any indication by the government that they are going to take the calls to deal with corruption seriously,&#8221; he said.</p>



<p>The protests were mostly peaceful until last Tuesday, when some protesters briefly stormed parliament and set part of it ablaze, and police opened fire.</p>



<p>Ruto has defended the actions of the police, and blamed the violence on &#8220;criminals&#8221; who hijacked the demonstrations.</p>



<p>(Reporting by Aaron Ross, Monicah Njeri and Jeff Kahinju; Additional reporting by Olivia Kumwenda-Mtambo; Writing by Hereward Holland and Peter Graff; Editing by Andrew Heavens and Bernadette Baum)</p>


Kenya police use tear gas to disperse crowds after call for more demonstrations


<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/KHXBMAI2KVMZVFFWJRXE5BTEH4-820x547.jpg" alt="" class="wp-image-502746" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People react to tear gas during a demonstration over police killings of people protesting against Kenya&#8217;s proposed finance bill 2024/2025, in Nairobi, Kenya, June 27, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



<p>NAIROBI, July 1 (Reuters) &#8211; Kenyan activists called for protesters to take to the streets again on Tuesday, with many rejecting appeals from President William Ruto for dialogue following his decision to withdraw proposed tax hikes.</p>



<p>At least 24 people were killed in clashes between protesters and police last week, when parliament was briefly stormed and set ablaze.</p>



<p>The protests, which have been led by young people and organised largely on social media, were initially sparked by a finance bill intended to raise 346 billion Kenyan shillings ($2.69 billion) in taxes.</p>



<p>But the demands of many protesters have escalated over the past two weeks to include calls to root out corruption and for Ruto to step down, presenting the most serious crisis of his two-year-old presidency.</p>



<p>An interview Ruto gave on Sunday evening to Kenyan television networks, in which he mostly defended the actions of the police and his government, seemed to have only hardened the positions of protesters.</p>



<p>On Monday, activists were sharing pamphlets on social media that urged people to occupy the capital Nairobi&#8217;s Central Business District. Many posted under the hashtag #OccupyCBDTuesday.</p>



<p>The protest movement has no official leadership, and it was not clear to what extent people would respond to these calls after tens of thousands came out last week in some of the country&#8217;s largest protests in recent memory.</p>



<p>In audio forums on social media, activists have been discussing how to maintain momentum now that the immediate objective of killing the finance bill has been attained.</p>



<h2 class="wp-block-heading" id="h-spending-cuts">SPENDING CUTS</h2>



<p>In his interview on Sunday, Ruto reiterated his previous calls for dialogue with young people. He said he was prepared to do this in a forum of their choosing, including the X Spaces where they often gather to discuss issues and strategise.</p>



<p>Many protesters reject the calls for dialogue, seeing them as an effort to co-opt the movement.</p>



<p>&#8220;You can’t dialogue with someone who is killing you on the other hand,&#8221; one activist said during an X Space over the weekend.</p>



<p>Ruto defended the conduct of the police in his interview, saying they had done the best they could under the circumstances and blaming &#8220;criminals&#8221; who he said had hijacked peaceful protests.</p>



<p>Ruto also suggested in the interview that the budget gap caused by the withdrawal of proposed tax hikes would be funded by borrowing, seemingly contradicting earlier statement that money would be saved through austerity measures.</p>



<p>Asked about&nbsp;this on Monday, Finance Minister Njuguna Ndung&#8217;u noted that there are legal limits on borrowing and the carrying capacity of debt.</p>



<p>&#8220;So it means that we must have expenditure cuts. This will be known once Parliament approves Supplementary one (budget),&#8221; he told Reuters in a text message.</p>



<p>Kenya&#8217;s national debt of more than 70% of gross domestic product already surpasses the statutory limit of 55% of GDP.</p>



<p>After withdrawing the bill, Ruto asked lawmakers to pass a supplementary budget, but parliament is currently in recess.</p>



<p>($1 = 128.5000 Kenyan shillings)</p>



<p>(Reporting by Aaron Ross; Editing by George Obulutsa and Toby Chopra)</p>


People protest against Kenya’s proposed finance bill 2024/2025, in Nairobi

Kenyan activists call for more protests as govt pledges austerity


<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/ACKWZYM3F5LCNAPKWQETI5UNQU-820x547.jpg" alt="" class="wp-image-502742" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa&#8217;s president elect Cyril Ramaphosa interacts with a group on the day of his inauguration ceremony for his second term as South African president, in Pretoria, South Africa, June 19, 2024. REUTERS/Alet Pretorius/File Photo</figcaption></figure>



<p>JOHANNESBURG, July 1 (Reuters)&nbsp;&#8211;&nbsp;South African assets rose sharply on Monday after President Cyril Ramaphosa formed a new cabinet following a long wait that included the former opposition leader and signalled continuity in fiscal policy by sticking to his previous finance minister.</p>



<p>Some investors, however, said the gains were likely to be short-lived as it would take time for the new government&#8217;s agenda and performance to become clear.</p>



<p>At 1125 GMT the rand traded at 18.09 against the dollar, 0.6% stronger than its previous close.</p>



<p>Ramaphosa named Democratic Alliance (DA) leader John Steenhuisen as agriculture minister in his 32-member cabinet line-up on Sunday. Alongside the DA and his African National Congress (ANC), Ramaphosa made space for five other coalition parties in the cabinet.</p>



<p>While the ANC retained control of the finance, defence and foreign affairs ministries, analysts saw the inclusion of the pro-business DA in other key portfolios as positive, while they welcomed the fact that Finance Minister Enoch Godongwana remained in his post.</p>



<p>&#8220;The outcome is clearly a compromise, and both of the major coalition players have had to accept less than what they would have preferred,&#8221; said Markus Korhonen, senior associate in Strategic Intelligence at S-RM, referring to the ANC and DA.</p>



<p>Jee-A van der Linde, senior economist at Oxford Economics, said it remained to be seen whether the unity government formed by Ramaphosa would be able to address South Africa&#8217;s economic issues, but the new cabinet was a &#8220;business-friendly&#8221; outcome.</p>



<p>Ramaphosa&#8217;s ANC lost its majority for the first time in three decades in the May 29 election and has formed a unity government with former rivals as a way to stay in power.</p>



<p>&#8220;It&#8217;s definitely been a bit of a sugar rush I would say, because the positivity is quite pervasive,&#8221; said Jason Swartz, portfolio manager at Old Mutual Investment Group.</p>



<p>&#8220;We&#8217;re going to need to see a little bit more information around actual tangible changes that we will see to policy and an implementation of those policies,&#8221; he said.</p>



<p>Korhonen said the focus now would be on the new government&#8217;s legislative agenda.</p>



<p>&#8220;A formal legislative agenda would provide a good indication of those issues that the government will set out to achieve, and what they might decide to deprioritise considering the potential difficulties in reaching agreement across the coalition,&#8221; he added.</p>



<p>On the domestic economic front, a purchasing managers&#8217; index survey showed factory activity contracted again in June. Vehicle sales figures for June are due later on Monday.</p>



<p>On the Johannesburg Stock Exchange, the Top-40 index was up 0.5% while the all-share index gained 0.8%. The country&#8217;s benchmark 2030 government bond strengthened, with the yield down 10 basis points at 9.885%.</p>



<p>(Reporting by Bhargav Acharya and Kopano Gumbi; Editing by Alexander Winning, David Goodman and Anil D&#8217;Silva)</p>


South African Rand coins are seen in this illustration picture

South African markets cheer Ramaphosa’s ‘business friendly’ cabinet


<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/KN4GN4LXKNL4ROPUFKEJ2724LM-820x547.jpg" alt="" class="wp-image-502652" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People attend a demonstration against Kenya&#8217;s proposed finance bill 2024/2025 in Nairobi, Kenya, June 25, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



<p>NAIROBI, June 28 (Reuters)&nbsp;&#8211;&nbsp;In the two years since he was elected, Kenya&#8217;s President William Ruto has wowed global climate activists under the Eiffel Tower, brushed shoulders with global tech titans in Silicon Valley and was toasted as a global peacekeeper at the White House.</p>



<p>As he notched up dozens of foreign trips, however, citizens back home endured gruelling economic hardship.</p>



<p>Already hammered by a cost-of-living crisis and watching those in government enjoy the largesse derived from their positions, Kenyans forced Ruto to ditch plans to introduce eye-watering tax hikes after days of protests.</p>



<p>The U-turn has exposed the gulf between the image of Ruto as the jet-setting global voice not just of Kenya but the wider continent, and the grinding realities his nation faces &#8211; weighed down by debt, corruption and security threats.</p>



<p>It has left him severely weakened domestically with his administration divided in its response and his opponents rejuvenated, seeking to harness the wave of discontent ahead of elections in 2027, analysts and politicians said.</p>



<p>&#8220;Enslaved and supported by foreign interests, and never pro-people in its outlook and interests, (Ruto&#8217;s administration) was bound to face the consequences of its priorities,&#8221; Willy Mutunga, Kenya&#8217;s former chief justice, told Reuters.</p>



<p>&#8220;As long as the material interests of the youth are not addressed, the chasm grows bigger and bigger,&#8221; he said.</p>



<p>A spokesperson for Ruto did not respond to requests for comment.</p>



<p>Kenya &#8211; already one of Africa&#8217;s biggest economies and strongest democracies – has in recent years expanded its global role.</p>



<p>On the eve of the climax of the protests, Ruto flagged off 400 policemen to lead a stabilisation force in Haiti.</p>



<p>The U.S. has designated Kenya as a major non-NATO ally, the first in sub-Saharan Africa, which gives it access to training and equipment but does not oblige it to join NATO operations.</p>



<p>Earlier this month, Ruto spoke at the G7 summit about the need to reform the global financial system to help the poor and has emerged as a powerful advocate for Africa in calls for action on climate change.</p>



<p>However, with protests erupting countrywide, including in Ruto&#8217;s hometown, Eldoret, and louder calls for his departure, some analysts say his administration is fighting for survival.</p>



<p>Should Ruto dedicate more time and energy to addressing domestic concerns, Western powers risk losing the focus of one of their strongest allies in the battle for influence in Africa, where they seek to counter the growing power of Russia and China, diplomats and analysts said.</p>



<p>Ruto has offered dialogue to allay the fears of protesters but it is not clear if that will be accepted or who talks would be with.</p>



<p>He must also come up with a new plan to tackle Kenya&#8217;s economic challenges, likely a hard sell due to the deficit cuts he will need to make to meet the conditions of international lenders for future funding.</p>



<p>&#8220;Even if nationwide demonstrations dissipate, this civil disobedience is a generation-defining moment,&#8221; said Declan Galvin, managing director of Nairobi-based Exigent Risk Advisory, a consultancy.</p>



<p>&#8220;The next election is still several years away but Ruto clearly needs to shift his political position to address public needs for his own political survival.&#8221;</p>



<h2 class="wp-block-heading" id="h-brazen-arrogance">&#8216;BRAZEN ARROGANCE&#8217;</h2>



<p>Ruto&#8217;s has earned a reputation for a fierce work ethic but has struggled to shake an indictment by the International Criminal Court for his role in post-election violence in 2007-8 even after the court dropped the case.</p>



<p>Gabrielle Lynch, a Kenya expert at the University of Warwick in the UK, said that Ruto was &#8220;an incredible performer&#8221;, able to roll out facts and figures for donors and then adapt his body language and tone for a local rally later the same day.</p>



<p>&#8220;It is as if presenting himself as a world leader would help legitimise him at home and remove tag of parochial instigator of violence,&#8221; Lynch said.</p>



<p>Underscoring the scale of his globe-trotting, Ruto went on a total of 62 trips to 38 countries in his first 20 months in power, according to a tally by Kenya&#8217;s Daily Nation newspaper.</p>



<p>But when home, Ruto has appeared tone deaf to complaints over the direction the country was taking, according to two sources in regular contact with his office.</p>



<p>Having campaigned as a champion of low-income &#8220;hustlers&#8221;, Ruto&#8217;s opponents have since given him the nickname &#8220;Zakayo&#8221;, the Swahili name for a greedy tax collector in the Bible.</p>



<p>As protests mushroomed, videos of politicians flaunting their wealth circulated widely. Homes and businesses of parliamentarians who supported the tax hikes have been targeted.</p>



<p>Mutula Kilonzo Jr, a member of the opposition and governor of Makueni County, said the &#8220;brazen arrogance&#8221; of government officials fuelled discontent.</p>



<p>Anger has also been directed at the World Bank and the International Monetary Fund (IMF), seen as the drivers of Ruto&#8217;s fiscal policies. Since his climb-down on tax rises, Ruto must now find another path to make his nation&#8217;s debt pile of some $80 billion, around 70% of GDP, more manageable.</p>



<h2 class="wp-block-heading" id="h-iron-fist-velvet-glove">IRON FIST, VELVET GLOVE</h2>



<p>Kenya&#8217;s relationship with the United States has deepened under Ruto&#8217;s presidency but critics complain the mutual admiration has clouded Washington&#8217;s view on Kenya&#8217;s challenges.</p>



<p>U.S. support has been crucial in the fight against Islamist militants in Somalia and in May, Ruto enjoyed the first state visit to the U.S. by an African leader in over 15 years.</p>



<p>Ruto is seen as close to Meg Whitman, a former CEO at eBay and Hewlett Packard who is currently the U.S. ambassador to Kenya and the relationship has helped attract foreign investors, particularly U.S.-based tech firms, Nairobi-based diplomats say.</p>



<p>Boniface Mwangi, a prominent Kenyan social activist, said diplomatic statements of concern and U.S. Secretary of State Antony Blinken calling Ruto after the violence was &#8220;too little too late&#8221; and Washington must now take a tougher line.</p>



<p>A U.S. State Department spokesperson said the the embassy in Nairobi had consistently called for restraint and the respect for constitutional rights.</p>



<p>Mwangi said that he advised the U.S. embassy last week to leverage their influence over the president to urge him to engage the protesters as the movement was swelling.</p>



<p>&#8220;People had to die for them say something,&#8221; he said. &#8220;They have bought this all shine and charming personality. They don&#8217;t see the iron first behind the velvet glove.&#8221;</p>



<p>(Additional reporting by Daphne Psaledakis in Washington; Editing by Ros Russell)</p>


FILE PHOTO: Demonstration against Kenya’s proposed finance bill 2024/2025 in Nairobi

Kenya protests expose jet-setting Ruto’s neglect of discontent at home


<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 1 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcement, 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>Foreigners&#8217; trading in South African bonds and equities</p>



<p>South Africa June manufacturing sector PMI</p>



<p>South African Treasury bill auction</p>



<p>Vehicle sales data</p>



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



<p>South African food producer RCL Foods lists its poultry business, Rainbow Chicken</p>



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



<p>The South African rand rallied on Friday on optimism that the Democratic Alliance and African National Congress would reach an agreement over cabinet positions, a day after local media reported a major disagreement between the parties.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed about 1% higher.</p>



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



<p>Uncertainty over the U.S. rates outlook kept Asian shares steady on Monday, while the euro rose after the first-round voting in France&#8217;s shock snap election was won by the far-right, albeit with a smaller share than some polls had projected.</p>



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



<p>U.S. stocks ended weaker on Friday after an early rally fizzled as investors digested in-line inflation data and weighed political uncertainty after the U.S. presidential debate.</p>



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



<p>Gold prices held steady on Monday after data showed U.S. inflation subsided, bolstering hopes that the Federal Reserve will start cutting interest rates this year.</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; Sars puts tax dispute with Kumba’s flagship mine on ice</p>



<p>&#8211; Santam’s procurement pick divides panel-beating industry</p>



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



<p>&#8211; &#8216;We are being allowed to reset&#8217;: Hope and caution as bloated, reconfigured GNU Cabinet announced</p>



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


South African Markets – Factors to watch on July 1


<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 1 (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-global-markets">GLOBAL MARKETS</h2>



<p>Asian stocks were subdued on Monday as traders pondered the U.S rates outlook, while the euro rose after the first-round voting in France&#8217;s shock snap election was won by the far-right, albeit with a smaller share than some polls had projected.</p>



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



<p>Oil prices edged up in early trade on Monday, supported by forecasts of a supply deficit stemming from peak summer fuel consumption and OPEC+ cuts in the third quarter, although global economic headwinds and rising non-OPEC+ output capped gains.</p>



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



<p>The South African rand rallied on Friday on optimism that the Democratic Alliance (DA) and African National Congress (ANC) would reach an agreement over cabinet positions, a day after local media reported a major disagreement between the parties.</p>



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



<p>Kenya&#8217;s shilling eased slightly on Friday as markets awaited the outcome of protests against a now-shelved tax increase plan.</p>



<h2 class="wp-block-heading" id="h-nigeria-security">NIGERIA SECURITY</h2>



<p>At least 18 people were killed and 30 others injured after a series of attacks by suspected female suicide bombers in Nigeria&#8217;s northeastern Borno state on Saturday, the head of the local state emergency management agency said.</p>



<h2 class="wp-block-heading" id="h-ghana-debt">GHANA DEBT</h2>



<p>The International Monetary Fund&#8217;s executive board approved the second review of Ghana&#8217;s $3 billion loan programme on Friday, allowing for the immediate disbursement of around $360 million, the Fund said.</p>



<h2 class="wp-block-heading" id="h-kenya-debt">KENYA DEBT</h2>



<p>Kenyan activists on Friday circulated calls for fresh protests, strikes and sit-ins demanding President William Ruto quit, after nationwide demonstrations forced him to U-turn on proposed tax hikes.</p>



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


African Markets – Factors to watch on July 1


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-820x573.jpg" alt="" class="wp-image-502453" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Opposition Democratic Alliance party leader John Steenhuisen speaks at South Africa&#8217;s parliament in Cape Town, South Africa, December 13, 2022. REUTERS/Esa Alexander/File Photo</figcaption></figure>



<p>JOHANNESBURG, June 30 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s President Cyril Ramaphosa appointed the Democratic Alliance party&#8217;s leader John Steenhuisen as agriculture minister in his new cabinet, Ramaphosa said in a televised address to the nation on Sunday.</p>



<p>Ramaphosa reappointed the African National Congress&#8217;s Enoch Godongwana as finance minister and named Gwede Mantashe as mineral and petroleum resources minister, while Ronald Lamola was appointed minister of international relations and cooperation.</p>



<p><em>This is a developing story&#8230;</em></p>



<p>(Reporting by Bhargav Acharya, Tannur Anders and Alexander Winning)</p>


Reuters

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African Markets – Factors to watch on July 1

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Reuters

South African Markets – Factors to watch on July 3

African Markets – Factors to watch on July 3

Kenya’s private sector activity contracts in June, PMI shows

South Africa business activity falls in June, PMI shows

World Bank approves $208 million for Zambia’s drought response

Tear gas, stones and flames as Kenya protesters say ‘Ruto must go!’

ArcelorMittal shelves plan to close South African steel plant

India in talks with Africa, Latin America countries for critical mineral blocks, official says

South African Markets – Factors to watch on July 2

African Markets – Factors to watch on July 2

Kenya police use tear gas to disperse crowds after call for more demonstrations

Kenyan activists call for more protests as govt pledges austerity

South African markets cheer Ramaphosa’s ‘business friendly’ cabinet

Kenya protests expose jet-setting Ruto’s neglect of discontent at home

South African Markets – Factors to watch on July 1

African Markets – Factors to watch on July 1

South Africa’s Ramaphosa appoints DA’s Steenhuisen as agriculture minister

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