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



JOHANNESBURG, June 25 (Reuters)&nbsp;&#8211;&nbsp;The South African rand clawed back some losses in early trade on Tuesday, as local media reported progress in negotiations over cabinet positions between the two biggest parties in the unity government.



At 0650 GMT, the rand traded at 18.0750 against the dollar, more than 0.2% stronger than its previous close. The currency fell about 0.8% against the dollar on Monday.



Markets have been on tenterhooks in the lead-up to the announcement of President Cyril Ramaphosa&#8217;s new cabinet, with signs of friction between the African National Congress (ANC) and the Democratic Alliance (DA) on Monday contributing to the rand&#8217;s fall.



But local news outlets including News24 said talks between the ANC and DA were moving forward after a meeting between Ramaphosa and DA leader John Steenhuisen on Monday. News24 reported a deal may be reached soon which would allow Ramaphosa to announce his executive by Wednesday.



&#8220;Market participants are likely to focus on how many and which ministerial positions the pro-business Democratic Alliance will get in the new cabinet. The more and the more senior, the better (for markets),&#8221; Commerzbank analysts said in a research note.



The ANC lost its parliamentary majority in an election last month, forcing it to share power for the first time since coming to power at the end of apartheid 30 years ago.



In total 10 political parties have agreed to join the unity government.



South Africa&#8217;s benchmark 2030 government bond was stronger in early deals, with the yield down 7 basis points to 9.785%.



(Reporting by Tannur Anders; Editing by Alexander Winning and Andrew Heavens)

Illustration photo of South African rand

South African rand claws back some losses on reports cabinet talks progress

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-820x547.jpg" alt="" class="wp-image-373504" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1920x1280.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-600x400.jpg 600w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



JOHANNESBURG, June 24 (Reuters)&nbsp;&#8211;&nbsp;The South African rand slipped on Monday, as markets waited for President Cyril Ramaphosa to announce the cabinet lineup of his government of national unity.



At 1100 GMT, the rand traded at 18.1275 against the dollar, about 0.9% weaker than its previous close.



&#8220;Perceived friction between the GNU (government of national unity) partners is playing a role in today’s decline, although the rand was due for a technical correction in any case,&#8221; Danny Greeff, co-head of Africa at ETM Analytics, said.



The African National Congress lost its parliamentary majority in an election last month, the first time in 30 years, which forced it to seek coalition partners.



Nine other parties have joined the ANC, including the pro-business Democratic Alliance (DA), which is favoured by investors.



&#8220;By adding more parties to the coalition, the ANC is walking a fine line between forming an inclusive government and losing investor confidence by diluting the DA’s influence,&#8221; Greeff said.



Investors want the ANC and the Democratic Alliance to play a leading role in the new government and will be watching Ramaphosa’s cabinet picks for insights into the balance of power within the coalition, he said.



Ramaphosa said in his weekly newsletter on Monday that the government&#8217;s top priority was economic growth to create jobs.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index traded around 1.2% stronger than its previous close.



South Africa&#8217;s benchmark 2030 government bond was weaker, with the yield up 15 basis points to 9.835%.



(Reporting by Tannur Anders; Editing by Alison Williams and Tomasz Janowski)

101416618-rand

South African rand falls, focus on cabinet announcement

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-820x547.jpg" alt="" class="wp-image-422301" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man trades U.S. dollars for Ghanaian cedis at a currency exchange office in Accra, Ghana, June 15, 2015. Picture taken June 15. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, June 24 (Reuters)&nbsp;&#8211;&nbsp;Ghana has reached an agreement in principle with&nbsp;two bondholder&nbsp;groups to restructure&nbsp;some$13 billion of&nbsp;international debt,&nbsp;it said on Monday,&nbsp;taking it a step&nbsp;closer to completing its debt overhaul that has been years in the making.



Under the agreement, bondholders will forego about $4.7 billion of their claims and provide cash flow relief of about $4.4 billion during the period of Ghana&#8217;s current financial support programme with the International Monetary Fund that is scheduled to end in 2026.



&#8220;The formal launch of the consent solicitation is expected in the upcoming weeks,&#8221; the government said in a statement.



The agreement will provide Ghana a path to economic recovery through significant debt relief and provision of cash flow, the committee representing international bondholders said in a statement, while welcoming the deal.



The deal comes a week after Ghana struck another agreement with its bilateral creditors, paving the way for the IMF&#8217;s executive board to sign off on a $360 million disbursement after the second review of Ghana&#8217;s $3 billion programme.



The board is scheduled to meet on June 28.



The West African gold and cocoa producer defaulted on most of its $30 billion in external debt in 2022,&nbsp;after&nbsp;the&nbsp;fallout from&nbsp;the COVID-19 pandemic, the war in Ukraine and higher global interest rates&nbsp;exacerbated economic strains.



It started formal talks with two groups of bondholders in mid-March &#8211; a group of Western asset managers and hedge funds and another one including regional African banks.



The negotiations, however,&nbsp;had&nbsp;stalled in April after the proposed deal failed to meet the&nbsp;IMF&#8217;s&nbsp;debt sustainability analysis requirements, and both sides were under pressure to finalise an agreement before December elections in Ghana.



Investors are watching Ghana&#8217;s debt restructuring closely after Zambia&#8217;s bondholders signed off on the southern African nation&#8217;s own debt overhaul which was more than three years in the making.



Ghana&#8217;s international bonds inched higher on the day, reversing earlier losses, with most of the curve bid between 51-53.5 cents in the dollar, Tradeweb data showed.



(Reporting by Maxwell Akalaare Adombila in Accra and Duncan Miriri in Nairobi, additional reporting by Marc Jones, MaPrerna Bedi, Shanima A and Alexander Winning in Johannesburg; Editing by Karin Strohecker and Anil D&#8217;Silva)

GVVD7RTPANKEHJR4J5T4JRVGHA

Ghana reaches agreement in principle on $13 bln bond rework

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



JOHANNESBURG, June 24 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcement, equity and currency market moves may affect South African markets on Monday.



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



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



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



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



South African technology investor Naspers&nbsp;NPNJn.J&nbsp;will report its full-year results in which it expects profits to more than double on improved performance of its e-commerce businesses and China&#8217;s Tencent.



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



South Africa&#8217;s rand was little changed on Friday, as investor focus remained on President Cyril Ramaphosa&#8217;s imminent cabinet appointments under a new unity government.



On the stock market, the Top-40 index closed 0.56% lower while the broader all-share index closed 0.38% lower.



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



Asia shares slipped on Monday in a countdown for U.S. price data that investors are banking on to show a renewed moderation in inflation, while markets were on alert for possible Japanese intervention as the dollar tested the 160 yen barrier.



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



The S&amp;P 500 and Nasdaq closed marginally lower on Friday, weighed down by a decline in Nvidia shares for a second straight day, which dragged down the technology sector.



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



Gold prices edged up on Monday as Treasury yields fell, while investors awaited key U.S. inflation data and Federal Reserve officials&#8217; comments through the week for fresh clues on the potential timing of the central bank&#8217;s interest rate cut.



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



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



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



&#8211; Patel gives rail network and ports a lifeline in last act as minister



&#8211; Standard Bank sees two repo rate cuts this year



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on June 24

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



NAIROBI, June 24 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.



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



Asia shares slipped on Monday in a countdown for U.S. price data that investors are banking on to show a renewed moderation in inflation, while markets were on alert for possible Japanese intervention as the dollar tested the 160 yen barrier.



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



Oil prices fell in early Asian trade on Monday for a second straight session, weighed down by a stronger dollar after concerns of higher-for-longer interest rates resurfaced and cooled investors&#8217; risk appetite.



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



South Africa&#8217;s rand was little changed on Friday, as investor focus remained on President Cyril Ramaphosa&#8217;s imminent cabinet appointments under a new unity government.



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



Nigerian energy firm Aiteo has resumed production after stopping an oil leak at its nearly 50,000 barrels per day (bpd) Nembe field earlier this week in southern Bayelsa state, the company said.



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



The Kenyan shilling was unchanged on Friday, as hard-currency inflows from tea exporters matched demand from manufacturers, traders said.



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



One person was killed and at least 200 people injured across Kenya in Thursday&#8217;s nationwide protests against government plans to raise $2.7 billion in additional taxes, an alliance of rights groups and the police watchdog said.



<h2 class="wp-block-heading" id="h-uganda-corruption">UGANDA CORRUPTION</h2>



Three Ugandan legislators have been charged with corruption-related offences, according to a charge sheet seen by Reuters on Saturday, as President Yoweri Museveni&#8217;s government widens its crackdown on rampant graft among lawmakers.



<h2 class="wp-block-heading" id="h-madagascar-economy">MADAGASCAR ECONOMY</h2>



The IMF said on Friday that its executive board had approved $337 million for Madagascar to help increase economic resilience and about $321 million to address the country&#8217;s climate vulnerabilities.



<h2 class="wp-block-heading" id="h-mali-politics">MALI POLITICS</h2>



An alliance of political parties and civil society groups in junta-led Mali said several of their leaders were arrested on Thursday evening during a private meeting at a house of a former minister. The alliance in a statement demanded their prompt release.



<h2 class="wp-block-heading" id="h-gabon-petroleum">GABON PETROLEUM</h2>



Carlyle Group said on Friday that it had completed the sale of its oil and gas company Assala Energy to Gabon&#8217;s national oil company.



<h2 class="wp-block-heading" id="h-zambia-economy">ZAMBIA ECONOMY</h2>



Zambia&#8217;s finance minister asked parliament on Friday to approve an additional funding of 41.9 billion kwacha ($1.65 billion) for repaying the country&#8217;s external debt and addressing a severe drought that has affected crops.



(Compiled by Nairobi Newsroom)

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on June 24

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1314" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-scaled.jpg" alt="" class="wp-image-499905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-768x493.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-1536x985.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Naspers&#8217; logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



June 24 (Reuters) &#8211; South Africa&#8217;s Naspers said on Monday its full-year earnings more than doubled, buoyed by improved performance of its e-commerce businesses and contribution from China&#8217;s Tencent 0700.HK, which accounts for the bulk of earnings and revenues.



The technology investor said its core headline earnings per share, a key indicator of operating performance in South Africa, from continuing operations rose to 1,148 U.S. cents for the year ended March 31, from a restated 546 cents a year ago.



Naspers, with global investments housed in Amsterdam-listed Prosus, said its consolidated e-commerce business has achieved profitability in the second half of the year, ahead of its expectation for first half of 2025.



The firm posted an annual consolidated e-commerce trading profit of $24 million, compared with a loss of $435 million.



Consolidated revenue from continuing operations grew 8% to $6.4 billion, with Classifieds and Food Delivery businesses being the biggest contributors, it said.



Naspers controls Amsterdam-listed Prosus and holds its international investments there.



It has investments in food delivery companies iFood of Brazil, Delivery Hero&nbsp;DHER.DE&nbsp;and India&#8217;s Swiggy, educational software firms such as SkillSoft and Stack Overflow, and payments companies such as India-focused PayU.



Prosus also holds a stake in Chinese software and gaming giant Tencent&nbsp;0700.HK, which it sold down to 25% from 26.2% last year, to fund a rolling share buyback program.



Naspers and Prosus say the buybacks benefit shareholders because Prosus is worth 30% less than the value of the Tencent stake, or $98 billion at current prices.



(Reporting by Nqobile Dludla and Prerna Bedi; Editing by Rashmi Aich)

FILE PHOTO: Illustration shows smartphone with Naspers’ logo

S.Africa’s Naspers profit doubles on Tencent, e-commerce performance

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg" alt="" class="wp-image-426709" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE.jpg 1457w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan President Yoweri Museveni attends a session of the Russia-Africa summit in Saint Petersburg, Russia, July 28, 2023. Mikhail Tereshchenko/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



KAMPALA, June 21 (Reuters)&nbsp;&#8211;&nbsp;Uganda has signed a pact with a business association from the United Arab Emirates to build a new international airport, President Yoweri Museveni&#8217;s office said on Friday.



The deal for the East African nation&#8217;s third such airport expands the UAE&#8217;s economic footprint beyond its interests in the renewable energy and oil and gas industries.



The UAE&#8217;s Sharjah Chamber of Commerce and Industry will build the airport just outside the Kidepo National Park in the northeast near Uganda&#8217;s border with Kenya, Museveni&#8217;s office said in a statement, without giving the cost.



Construction will start in August, said Abdallah Sultan Al Owais, chairman of the Sharjah business body.



The airport will boost tourism by drawing visitors to the 1,442-sq-km (557-sq-mile) Kidepo park known for lions, giraffes, buffaloes and other big game.



The agreement was &#8220;a sign of the deepening relations with our Gulf partners and another opportunity to co-operate in investment and trade&#8221;, Museveni, who witnessed the signing, said in a post on X.



(Reporting by Elias Biryabarema; Editing by George Obulutsa and Clarence Fernandez)

A session of the Russia-Africa summit in Saint Petersburg

Uganda signs deal with UAE to build third international airport

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



WASHINGTON, June 20 (Reuters)&nbsp;&#8211;&nbsp;The IMF said on Thursday its executive board approved funding&nbsp;for Tanzania of $786.2 million to help tackle climate change while also completing a separate review allowing for the disbursement of $149.4 million for budget support.



Tanzanian authorities are committed to continue implementing reforms to preserve macro-financial stability, strengthen economic recovery, and promote sustainable and inclusive growth, the International Monetary Fund said in a statement.



In the last three years, President Samia Suluhu Hassan&#8217;s administration has undertaken various economic reforms with ambitions to return the country&#8217;s economic growth to the pre-pandemic real gross domestic product growth rate of 6% to 7%.



Tanzania&#8217;s economic reform program remained strong, the IMF said, adding that economic growth rebounded in 2023 after slowing down in 2022.



&#8220;The current account deficit is narrowing, reflecting fiscal consolidation, easing commodity prices, and tight external financing conditions,&#8221; the IMF said.



While economic recovery is expected to gain momentum going forward, the IMF noted that it faced headwinds from an &#8220;unfavorable global economic environment.&#8221;



Tanzania&#8217;s economy, which relies on tourism, mining, agriculture and manufacturing, has remained resilient in the face of back-to-back extreme weather events and climate change, driven by a surge in the services sector, according to the World Bank.



The economy is forecast to accelerate to 5.4% this calendar year, up from 5.1% in 2023, minister of state in the president&#8217;s Office for Planning and Investment Kitila Mkumbo said last week.



(Reporting by Kanishka Singh; Editing by Chris Reese and Sandra Maler)

IMF logo is seen outside the headquarters building in Washington

IMF approves over $900 mln to support Tanzania budget, climate change fight

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg" alt="" class="wp-image-498805" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the Makola market, one of the country&#8217;s largest trading centres in Accra, Ghana March 26, 2022. Picture taken March 26, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, June 20 (Reuters) &#8211; Ghana has reached an agreement in principle with its bondholders for the restructuring of $13 billion worth of international debt, three sources told Reuters on Thursday, on the heels of a deal finalised with official creditors earlier this month.



The deal will see bondholders take a haircut on principal of up to 37% and maturity of the bonds lengthened, two of the sources said.



The West African gold and cocoa producing nation defaulted on most of its $30 billion in external debt in 2022, under the strain of the COVID-19 pandemic, the war in Ukraine and higher global interest rates and surging debt.



Like Zambia, Ghana also signed up for debt treatment under the G20 Common Framework, a process designed to facilitate quick debt overhauls and to bring the newest large bilateral lender, China, into the process.



Zambia&#8217;s bondholders signed off on its restructuring earlier this month, after the southern African copper producer became the first African country to default during the pandemic.



For Ghana, &#8220;things are pretty close. We can expect an announcement by next week,&#8221; one source said, asking not to be named because they were not authorised to speak to media.



The other two sources said the announcement could come as soon as Friday.



Ghana&#8217;s finance ministry and the Paris Club, an alliance of creditor nations, could not immediately be reached for comment due to the late hour.



Ghana started formal talks with two groups of bondholders in mid-March &#8211; a group of Western asset managers and hedge funds and another one including regional African banks.



The negotiations, however, stalled in April after the proposed deal failed to meet the International Monetary Fund&#8217;s (IMF) debt sustainability analysis requirements, forcing both sides to regroup to find a suitable solution.



The three sources said the deal had since fit into a revised IMF debt framework on Ghana shared with bondholders earlier, resulting in the agreement in principle.



The world&#8217;s No.2 cocoa producer earlier this month agreed a pact with its official creditor committee to formalise a debt restructuring deal reached in January.



The outlines of the agreement paved the way for the IMF executive board to hold a June 28 meeting on Ghana to consider a second review of its $3 billion loan, three-year package and the release of the next tranche of $360 million.



(Editing by Alessandra Prentice, Shri Navaratnam and Jamie Freed)

FILE PHOTO: FILE PHOTO: People make trade in Accra

Ghana, bondholders reach agreement in principle to restructure $13 bln debt, sources say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1310" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-scaled.jpg" alt="" class="wp-image-498574" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-1536x982.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Riot police officers control civilians after a bus was torched by unknown people ahead of protests by supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, in a nationwide protest over cost of living and President William Ruto&#8217;s government in Nairobi, Kenya May 2, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, June 20 (Reuters)&nbsp;&#8211;&nbsp;Riot police fired tear gas and water cannons to disperse thousands of demonstrators in Nairobi on Thursday as coordinated marches took place across Kenya against government plans to raise $2.7 billion in additional taxes to reduce the budget deficit.



Spraying people with purple-coloured water from water cannons, police sought to clear protesters in Nairobi&#8217;s central business district and blocked their path to parliament.



It was not clear why police used force as the demonstration appeared peaceful.



The Kenya Red Cross&#8217; Nairobi branch said on X it had attended to eight injured people from the protests. It did not give more details on the nature of injuries.



Police spokesperson Resila Onyango and Nairobi police commander Adamson Bungei did not respond to requests for comment.



Protesters say the tax rises will hurt the economy and raise the cost of living for Kenyans who are already struggling to make ends meet.



A parliamentary panel urged the government on Tuesday to scrap some new taxes proposed in its finance bill, including new ones on car ownership, bread, cooking oil and financial transactions.



The panel also recommended that a fuel tax towards road maintenance be increased.



President William Ruto was elected almost two years ago on a platform to help Kenya&#8217;s working poor, but has faced repeated anti-tax protests. He has defended the tax increases, saying the government needs to reduce its reliance on borrowing.



Elsewhere on Thursday, demonstrators in places such as Nyeri, Nakuru, Eldoret,&nbsp;Isiolo, Mombasa&nbsp;and Kisumu called for lawmakers to drop the bill and waved placards with slogans like &#8220;We say no to economic dictatorship&#8221;, and chanted &#8220;Ruto must go&#8221;. Those protests took place peacefully.



On Thursday afternoon, police also dispersed protesters in Eldoret.



The International Monetary Fund has urged the government to increase revenues in its 2024/25 budget to reduce state borrowing.



Lawmakers were debating the bill on Thursday in its second reading before parliament. Ruto has a majority in parliament, although some lawmakers allied to his coalition have expressed reservations about the bill.



Kimani Ichung&#8217;wah, the parliament&#8217;s majority leader, said lawmakers will meet on Tuesday to vote on the proposed changes to the bill.



Ndindi Nyoro, chairperson of the parliament&#8217;s budget committee, said the Finance Ministry had told parliament that scrapping the handful of proposed tax hikes would lead to a revenue shortfall of 200 billion shillings in the 2024/25 budget meaning equivalent spending cuts would have to be made.



Hundreds of people demonstrated on Tuesday against the bill, in the biggest backlash against Ruto&#8217;s government since protests in July last year, when rights groups said at least nine people were killed.



(Additional reporting by Hereward Holland, George Obulutsa and Humphrey Malalo in Nairobi, Noor Ali in IsioloEditing by Christina Fincher, Frances Kerry and Franklin Paul)

Nationwide protest over cost of living and President William Ruto’s government in Nairobi

Police fire tear gas, water cannon at anti-tax protesters in Kenya capital

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



NAIROBI, June 20 (Reuters)&nbsp;&#8211;&nbsp;The Kenyan, Ghanaian and Ugandan currencies are expected to weaken over the next week to Thursday, while Nigeria&#8217;s and Zambia&#8217;s could trade around their current levels, traders said.



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



Kenya&#8217;s shilling is expected to slip on foreign-currency demand from manufacturers and importers.



Commercial banks quoted the shilling at 128.50/129.50 per dollar, compared with last Thursday&#8217;s closing rate of 128.00/129.00.



&#8220;Manufacturers and importers are starting to cover their mid-month and month-end needs,&#8221; one trader said. &#8220;I think it (the shilling) will weaken towards the middle of next week.&#8221;



The shilling has strengthened 22% against the dollar since the start of the year, according to LSEG data, boosted by a government debt management exercise that saw it buy back most of a $2 billion Eurobond that had unnerved investors.



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



Nigeria&#8217;s naira is seen range-bound on the official market next week, as demand for foreign exchange slows and central bank interventions dry up.



LSEG data showed the naira trading at 1,481 to the dollar on the official market on Thursday, around the same level as a week ago. The unit hit 1,492 naira versus the U.S. currency on the parallel market.



&#8220;We expect the naira to remain relatively stable next week,&#8221; a trader said.



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



Ghana&#8217;s cedi is expected to weaken further next week as local firms, especially in the manufacturing and telecommunication sectors, seek more dollars to buy imported goods.



LSEG data showed the cedi trading at 15.10 to the dollar on Thursday, compared with 15.00 at last Thursday&#8217;s close.



&#8220;The cedi lost further ground against the dollar this week, driven by continued demand pressures amid limited supply,&#8221; said Chris Nettey, head of trading at Stanbic Bank Ghana.



&#8220;We expect a similar narrative in the coming sessions, but the cedi&#8217;s downside could be limited by anticipation of the IMF disbursement of $360 million and Bank of Ghana interventions,&#8221; he added.



Sedem Dornoo, senior trader at Absa Bank Ghana, said foreign-currency flows were expected to remain thin and demand elevated.



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



Uganda&#8217;s shilling is seen trading with a weakening bias over the coming days, undermined by elevated demand for hard currency from merchandise importers.



Commercial banks quoted the shilling at 3,740/3,750 to the dollar on Thursday, compared to last Thursday&#8217;s close of 3,710/3,720.



&#8220;We are seeing significant (dollar) demand from importers which I reckon will remain elevated in the short term, particularly as we move toward the close of the fiscal year,&#8221; one trader said.



Uganda&#8217;s fiscal year ends in June.



The trader said the shilling was likely to weaken to around 3,780 against the dollar in the coming week.



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



Zambia&#8217;s kwacha is likely to hold steady following a decrease in demand for hard currency.



On Thursday commercial banks quoted the currency at 25.45 per dollar from 26.30 a week ago.



&#8220;The local unit is expected to exhibit forms of stability in the short run,&#8221; Access Bank said in a note.



(Reporting by Hereward Holland, Christian Akorlie, Chijioke Ohuocha, Elias Biryabarema and Chris Mfula; Editing by Alexander Winning)

ANCK25OQIFMHTJYACOM5XU5T24

WEEKAHEAD-Kenyan, Ghanaian and Ugandan currencies seen falling

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-820x547.jpg" alt="" class="wp-image-498461" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A Transnet logo stands on a rail mounted gantry crane, manufactured by Terex Corp., at the Port of Durban, operated by Transnet SOC Holdings Ltd.&#8217;s Ports Authority, in Durban, South Africa, on Friday, May 25, 2018. Transnet last year reduced its seven-year capital-investment plan by 17 percent to 229.2 billion rand in response to lower-than-anticipated freight demand. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



June 20 (Reuters) &#8211; South Africa&#8217;s logistics utility Transnet said on Thursday it would appeal a court decision to award Sasol and TotalEnergies about 6.2 billion rand ($344 million) in damages and interest to settle a tariff dispute.



Sasol said earlier on Thursday that it won the award in a High ruling against Transnet, which it accused of overcharging it for transporting crude oil for several years.



&#8220;The judgment thus has enormous implications not only for the public purse but also for Transnet’s ability to discharge its obligations,&#8221; Transnet said in a statement.



&#8220;Transnet intends to appeal the judgment,&#8221; it added.



In 2017, Sasol Oil joined TotalEnergies, its joint venture partner in the Natref crude oil refinery, in a lawsuit against Transnet Pipelines over a tariff dispute.



&#8220;On 18 June 2024, judgement was handed down by the High



Court in Sasol Oil and TotalEnergies&#8217; favour. Damages in the amount of 3,889,475,802 rand plus interest amounting to approximately 2.3 billion rand ($128 million) were awarded to Sasol Oil,&#8221; Sasol said in a statement.



TotalEnergies was not immediately available to comment.



The dispute has its roots in a 1967 agreement between the then South African government and Total, which established an inland crude oil refinery at a time when coastal refineries were struggling to meet inland demand.



To secure the participation of Total in the inland refinery Natref, the government put in place a pipeline tariff structure that would match the costs of a coastal processing facility.



Sasol, which was set up as a state-owned business in 1950 and privatised in 1979, owns 63,64% of Natref, with TotalEnergies holding the remainder.



($1 = 17.9996 rand)



(Reporting by Nelson Banya; editing by Jason Neely and Emelia Sithole-Matarise)

Operations At The Transnet SOC Ltd. Port Of Durban

Transnet to appeal against $344 mln Sasol award over tariff dispute

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1152" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, June 20 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand edged lower early on Thursday, as investors turned cautious ahead of newly re-elected President Cyril Ramaphosa&#8217;s cabinet appointments under a unity government.



At 0726 GMT, the rand traded at 17.9850 against the dollar, 0.15% weaker than its previous close.



The local currency had strengthened to a near 11-month high of 17.9200 on Wednesday after five political parties joined the African National Congress last week in forming a government of national unity, after it lost its absolute majority in general election.



&#8220;Markets will now be watching President Ramaphosa&#8217;s cabinet appointments with interest,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



There is no major economic data due in South Africa till next Thursday when Statistics South Africa will release monthly producer inflation figures.



On the stock market, the Top-40 index was up 0.2% in early trade.



South Africa&#8217;s benchmark 2030 government bond was weaker, with the yield up 4 basis points at 9.785%.



(Reporting by Bhargav Acharya; Editing by Shinjini Ganguli)

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

South African rand edges lower, focus on president’s cabinet picks

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



JOHANNESBURG, June 20 (Reuters)&nbsp;&#8211;&nbsp;The following equity and currency market moves may affect South African markets on Thursday.



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



South Africa&#8217;s rand strengthened on Wednesday, following the release of local inflation figures and the inauguration of President Cyril Ramaphosa for a second term.



On the stock market, the Top-40 index closed1.28% higher.



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



Asian stocks took a breather on Thursday, hovering near their highest in two years as traders waited for more U.S. policy clues, while sterling was steady before a Bank of England meeting where rates are expected to remain unchanged.



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



The S&amp;P 500 and Nasdaq closed at record highs on Tuesday, buoyed by Nvidia&#8217;s continued surge to new peaks, while the Dow ended barely higher in subdued pre-holiday trading following softer-than-expected U.S. retail sales data.



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



Gold prices climbed to their highest level in two weeks on Thursday as softer U.S. economic data increased the likelihood of interest rate cuts from the Federal Reserve this year.



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



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



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



&#8211; Health Funders Association hoping for NHI rethink under new government



&#8211; Trustco slapped with punitive costs in battle with JSE



(Compiled by Bhargav Acharya)

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

South African Markets – Factors to watch on June 20

<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>



June 20 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



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



Kenyan citizens are due to hold protests in Nairobi and at least three other towns to reject the country&#8217;s proposed 2024 finance law.



The trial of Binance and its two executives on charges of laundering more than $35 million continues in a court in Nigerian capital Abuja.



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



Asian stocks took a breather on Thursday, hovering near their highest in two years as traders waited for more U.S. policy clues, while sterling was steady before a Bank of England meeting where rates are expected to remain unchanged.



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



Brent oil futures were little changed in Asia on Thursday, hovering slightly below seven-week highs, as the market weighed geopolitical developments in the Middle East while waiting for the upcoming U.S. inventory data.



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



South Africa&#8217;s rand strengthened on Wednesday, following the release of local inflation figures and the inauguration of President Cyril Ramaphosa for a second term.



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



The Kenyan shilling was stable on Wednesday, supported by the sale of dollars by the central bank and tepid demand for hard currency, traders said.



<h2 class="wp-block-heading" id="h-africa-development">AFRICA DEVELOPMENT</h2>



Africa&#8217;s hope of reaching sustainable development goals by 2030 are &#8220;all but dead&#8221; amid an annual funding shortfall of around $1.3 trillion, according to a report by Sudanese-British billionaire businessman Mo Ibrahim&#8217;s foundation.



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



Nigerian energy firm Aiteo has shut down all oil production at its Nembe Creek facility, nearly 50,000 barrels per day of output, after detecting a leak, the company said on Wednesday.



<h2 class="wp-block-heading" id="h-congo-security">CONGO SECURITY</h2>



At least five people, including three women and a girl, were killed in the bombardment of a town in eastern Congo&#8217;s North Kivu province on Wednesday, an army spokesperson said, accusing the M23 rebel group of the attack.



<h2 class="wp-block-heading" id="h-nigeria-biafra">NIGERIA BIAFRA</h2>



Separatist leader Nnamdi Kanu is willing to negotiate with the Nigerian government over his continued detention and trial on terrorism charges, his lawyer said on Wednesday.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on June 20

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-820x547.jpg" alt="" class="wp-image-498157" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-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 walks 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>



JOHANNESBURG, June 19 (Reuters)&nbsp;&#8211;&nbsp;Investors are optimistic South Africa&#8217;s new unity government can deliver stable economic policies to revive growth, but are cautious about how the new coalition&#8217;s main partners can reconcile stark ideological differences.



The African National Congress (ANC) &#8211; which has governed since a vote in 1994 that marked the end of apartheid &#8211; has struck a deal with the white-led, pro-business Democratic Alliance (DA) and smaller parties after failing to win a parliamentary majority in national elections last month.



The agreement between the ideologically opposed ANC and DA marks a major political shift in the country and paves the way for a Government of National Unity under President Cyril Ramaphosa to bring in reforms needed to create economic growth and tackle high levels of unemployment and inequality.



Investors and credit rating agencies see the two biggest parties in the unity government agreeing on more liberal economic policies, but they could struggle to overcome their ideological differences.



The ANC, for instance, has increased spending on welfare payments, but the DA had in the run up to the election pushed to roll back some of them and to scrap some ANC Black empowerment policies.



The left-leaning Economic Freedom Fighters (EFF) and the party of former president Jacob Zuma, uMkhonto weSizwe (MK), will not join the unity government, choosing instead to be part of the opposition alliance.



&#8220;With populist parties choosing to reject the GNU, and the ANC&#8217;s bigger partners in the governing coalition centre-leaning and favouring more liberal economic policies, we think the GNU opens the possibility for more growth-friendly structural reforms and prudent macroeconomic policy choices,&#8221; HSBC economist David Faulkner said in a note.



&#8220;But the GNU could also face ideological divisions and exacerbate fractures within the ANC, factors that could make establishing a stable policy framework difficult.&#8221;



Among its priorities, the unity government is set to focus on rapid, inclusive and sustainable economic growth, the promotion of fixed capital investment, job creation, land reform and infrastructure development, the ANC has said.



&#8220;The election outcome is broadly favourable for the economic and fiscal outlook, compared with the alternatives,&#8221; S&amp;P Global Ratings said on Tuesday, but it also said the government faces an uphill battle to revive growth and maintain fiscal discipline, while navigating the new realities of coalition politics.



&#8220;Despite the reasonably constructive outcome, significant ideological differences between the ANC and the DA on issues such as affirmative action and foreign policy could destabilise the government,&#8221; S&amp;P said.



Smaller parties in the unity government include the socially conservative Inkatha Freedom Party and the right-wing Patriotic Alliance.



<h2 class="wp-block-heading" id="h-markets-surge">MARKETS SURGE</h2>



Financial markets have welcomed the unity government, with South Africa&#8217;s banking index, seen as a gauge of local economic recovery prospects, up 19% since June 7 &#8211; when the ANC announced it would seek to form a unity government.



The rand, one of the few emerging market currencies to chalk up gains since the start of the year, and local government bonds have also reacted positively.



&#8220;The spread between our bonds and U.S. bonds, it&#8217;s pretty much back to where it was pre-election,&#8221; said Mike van der Westhuizen, portfolio manager at Citadel, a local wealth management firm. &#8220;That risk premium in bonds is at sort of fair value,&#8221; he added.



Investors anticipate that the unity government will pick up the pace on the ANC&#8217;s existing reform plans for electricity, rail and port sectors. These are needed to revive an economy that has barely grown in the last decade and has an unemployment rate that is among the highest in the world.



The DA has endorsed a government programme code named &#8220;Operation Vulindlela&#8221;, a Zulu term meaning clear the path, that was initiated in 2020 by the ANC-led government to speed up structural reforms.



Adam Furlan, emerging markets fixed income portfolio manager at NinetyOne investments &#8211; South Africa&#8217;s largest asset manager, said the DA&#8217;s desire to support the initiative bodes well for policy continuity.



&#8220;We expect that to continue and hopefully at a more brisk pace,&#8221; said Furlan.



Ramaphosa is expected to announce his new cabinet, in consultation with his new coalition partners, a few days after his inauguration on Wednesday.



Some analysts expressed concern that the ANC was unlikely to give up the key finance portfolio.



&#8220;The best case scenario for asset prices from this point is that DA gets responsibility for finance, public enterprises, and energy, and the worst case, is that their cabinet representation is merely a token one,&#8221; said Tellimer market research said in a note.



(Additional reporting by Nqobile Dludla; Editing by Olivia Kumwenda-Mtambo and Jane Merriman)

FILE PHOTO: Inauguration of South Africa’s president-elect Ramaphosa, in Pretoria

Investors cautiously optimistic S.Africa’s new government can deliver growth-friendly reforms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-820x507.jpg" alt="" class="wp-image-498092" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-820x507.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-768x474.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-1536x949.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A customer compares prices while shopping at a Pick and Pay shop in East London, in the Eastern Cape province, South Africa, March 17, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, June 19 (Reuters)&nbsp;&#8211;&nbsp;South African inflation was stable in May, data showed on Wednesday, but analysts do not expect interest rate cuts any time soon as it remains above the central bank&#8217;s desired level.



Headline consumer inflation came in at 5.2% year on year in May, the same as in April, in line with the forecast of economists polled by Reuters.



The South African Reserve Bank (SARB) wants to see inflation fall to 4.5%, the midpoint of its target band, and has kept its main interest rate at its highest level since 2009 for more than a year to try to achieve that objective.



Inflation has been above 5% for months, and the central bank estimated last month that inflation would only stabilise at 4.5% in the second quarter of 2025.



According to a Reuters poll released on Tuesday, the SARB could wait until November before cutting its repo rate.



Capital Economics analyst David Omojomolo said the formation of a government of national unity following last month&#8217;s election could ease the central bank&#8217;s fiscal concerns, meaning a higher chance of a rate cut before the end of this year.



Annabel Bishop at Investec bank said after Wednesday&#8217;s data that the central bank&#8217;s tone would probably remain hawkish for now.



Five political parties have joined the African National Congress (ANC) in a unity government after the ANC lost its majority in the May 29 vote for the first time since the end of apartheid 30 years ago.



Markets have been reassured because the unity government includes the pro-business Democratic Alliance and excludes parties viewed as more radical, the hard-left Economic Freedom Fighters and uMkhonto we Sizwe led by former president Jacob Zuma.



Inflation was at 0.2% in May on a month-on-month basis, compared to 0.3% in April.



(Additional reporting by Tannur Anders; Editing by Alexander Winning and Elaine Hardcastle)

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Reuters

South African rand claws back some losses on reports cabinet talks progress

South African rand falls, focus on cabinet announcement

Ghana reaches agreement in principle on $13 bln bond rework

South African Markets – Factors to watch on June 24

African Markets – Factors to watch on June 24

S.Africa’s Naspers profit doubles on Tencent, e-commerce performance

Uganda signs deal with UAE to build third international airport

IMF approves over $900 mln to support Tanzania budget, climate change fight

Ghana, bondholders reach agreement in principle to restructure $13 bln debt, sources say

Police fire tear gas, water cannon at anti-tax protesters in Kenya capital

WEEKAHEAD-Kenyan, Ghanaian and Ugandan currencies seen falling

Transnet to appeal against $344 mln Sasol award over tariff dispute

South African rand edges lower, focus on president’s cabinet picks

South African Markets – Factors to watch on June 20

African Markets – Factors to watch on June 20

Investors cautiously optimistic S.Africa’s new government can deliver growth-friendly reforms

South African inflation stable but still above central bank objective

News Tips

Advertise With Us

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