<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-820x547.jpg" alt="" class="wp-image-484765" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The International Monetary Fund (IMF) headquarters during the spring meetings of the IMF and World Bank Group in Washington, DC, US, on Thursday, April 13, 2023. The IMF trimmed its global-growth projections, warning of high uncertainty and risks as financial-sector stress adds to pressures emanating from tighter monetary policy. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, March 17 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund has received a formal request for a new programme from Kenyan authorities and will engage with them going forward, it said on Monday.



A ninth review under its current extended fund facility and extended credit facility programmes will not proceed, IMF said in a statement.



The IMF did not specify the kind of programme Kenya was seeking. Finance Minister John Mbadi told Reuters last month that it would be a financing programme.



The East African economy needs continued help from the lender to keep its economy on track after its debt-servicing costs surged due to a borrowing spree over the past decade.



The government has been scrambling for new financing after deadly protests last year forced it to abandon a plan to raise extra revenue via tax hikes.



(Reporting by George Obulutsa and Duncan Miriri; Editing by Jamie Freed)

Spring Meetings Of The International Monetary Fund And World Bank

IMF has received a formal request for a new Kenya financing programme

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-820x545.jpg" alt="" class="wp-image-479321" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A.jpg 1325w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Anglo American is seen on a jacket of an employee at the Los Bronces copper mine, in the outskirts of Santiago, Chile March 14, 2019 REUTERS/Rodrigo Garrido</figcaption></figure>



(Reuters) &#8211; Anglo American has begun a consultation process in the United Kingdom and South Africa to cut jobs, amid a broader restructuring aimed at refocusing its operations on copper and iron ore mining, a spokesperson said on Thursday.



As part of the strategic overhaul, the company is set to spin off its Anglo American Platinum unit by mid-year. It also sold its coal and nickel assets and plans to divest its De Beers diamond unit.



Bloomberg News earlier&nbsp;in the day reported&nbsp;that Anglo was planning to cut more jobs at its corporate office.



The company has sent notices to employees who are likely to be affected, the report added, citing people with knowledge of the matter.



&#8220;These are clearly significant changes to our global business that naturally require adjustment to the resourcing of our corporate offices, so we are beginning consultation processes in the UK and South Africa to discuss proposed organisational changes,&#8221; a company spokesperson told Reuters in an email.



Anglo American has about 55,000 employees across the globe, according to its 2024 annual report.



(Reporting by Shanima A and Prerna Bedi, additional reporting by Dhanush Vignesh Babu in Bengaluru; Editing by Devika Syamnath)

FILE PHOTO: Logo of Anglo American is seen on a jacket of an employee at the Los Bronces copper mine, in the outskirts of Santiago

Anglo American begins consultation to cut jobs amid business overhaul

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/PZJDEL4AJBOQRBQVBFB3WB6VNI.avif" alt="" class="wp-image-597019"/><figcaption class="wp-element-caption">South Africa&#8217;s President Cyril Ramaphosa and European Commission President Ursula von der Leyen, attend the 8th EU-South Africa summit, in Cape Town, South Africa, March 13, 2025. REUTERS/Esa Alexander</figcaption></figure>



CAPE TOWN, March 13 (Reuters)&nbsp;&#8211;&nbsp;European Commission President Ursula von der Leyen on Thursday&nbsp;announced&nbsp;a new 4.7 billion euro ($5.10 billion) investment package for South Africa&nbsp;on a visit to the country.



Von der Leyen said the Global Gateway investment package was to support a just energy transition, vaccine manufacturing, and digital and physical connectivity.



She made the remarks at the beginning of talks with South African President Cyril Ramaphosa, sitting alongside European Council President Antonio Costa.



($1 = 0.9223 euros)



(Reporting by Wendell Roelf; Writing by Sfundo Parakozov; Editing by Alexander Winning)

PZJDEL4AJBOQRBQVBFB3WB6VNI

European Union announces 4.7 billion euro investment package for South Africa

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3089" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/CVXKTNP76NMWJHEFTALQL7UPHQ.avif" alt="" class="wp-image-596982"/><figcaption class="wp-element-caption">A company logo for the South African supermarket chain SPAR Group is seen on a trolley outside a store in Johannesburg, South Africa, June 7, 2022. Picture taken June 7, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, March 13 (Reuters) &#8211; South Africa&#8217;s SPAR Group is planning a chain of about 30 to 40 high-end grocery stores, with the first set to open in the fourth quarter of this year, an executive said on Thursday, as the retailer targets affluent shoppers.



South African grocery retailers are increasingly tailoring stores to wealthy or low-income customers in a market that is becoming more polarised.



&#8220;The strategy includes converting high-end niche SPAR stores while also opening new locations in strategic sites. We anticipate around 30 to 40 Gourmet stores in the future, though no fixed timeline has been set,&#8221; Max Oliva, SPAR Southern Africa CEO, told Reuters.



The South African retailer owns several SPAR country licences of the Dutch SPAR group.



Presenting on Wednesday at the company&#8217;s capital markets day, Oliva told investors that the new SPAR Gourmet format would target customers in high-end residential and urban areas.



&#8220;Key focus areas include premium food solutions, coffee, bakery, and indulgent products, with a curated assortment tailored to meet the needs of a more affluent customer base,&#8221; he said.



SPAR Gourmet and discount chain SaveMor are part of the group&#8217;s segmentation strategy, similar to what rivals Pick n Pay and Shoprite have been doing in recent years.



To strengthen its position in the competitive discount grocery sector, SPAR will also be revamping the SaveMor chain.



South Africa&#8217;s higher-end grocery market is dominated by Woolworths, followed by Shoprite&#8217;s Checkers chain. In the discount space, Shoprite has Usave and Pick n Pay has Boxer.



(Reporting by Siyanda Mthethwa and Nqobile Dludla. Editing by Mark Potter)

CVXKTNP76NMWJHEFTALQL7UPHQ

South Africa’s SPAR plans chain of up to 40 high-end grocery stores

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3496" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/YPYZLCVLKZMVJOWUT7HMSPRWEE.avif" alt="" class="wp-image-596933"/><figcaption class="wp-element-caption">A woman walks past a Standard Bank logo at the Investing in African Mining Indaba 2024 conference in Cape Town, South Africa February 7, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, March 13 (Reuters) &#8211; Standard Bank, Africa&#8217;s biggest lender by assets, on Thursday reported a 4% jump in annual profit and forecast headline earnings per share (HEPS) growth of 8%-12% in the medium term.



The South Africa-based lender said its headline earnings rose to 44.5 billion rand ($2.42 billion) in the year ended December 31 from 42.9 billion rand in the previous year.



It also said that the HEPS was up 4% at 26.91 rand.



The new medium-term target for HEPS is for 2026 to 2028, the bank said. Its return on equity target range for the period is 18%-22%.



For the current reporting period, the lender&#8217;s net income grew 2% to 181.7 billion rand, driven by a 3% increase in its net interest income to 101 billion rand.



Growth in loans and advances rose a mere 2%&nbsp;due to lower consumer affordability and demand for credit&nbsp;as interest rates remained high, on average, in 2024, the bank said.



Credit impairment charges fell 7% to 15 billion rand, largely due to a slowdown in early arrears and inflows into non-performing loans in the retail and business segments.



($1 = 18.3709 rand)



(Reporting by Nqobile Dludla; Editing by Christopher Cushing)

YPYZLCVLKZMVJOWUT7HMSPRWEE

Standard Bank’s annual profit rises, forecasts growth in medium term

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2560" height="1440" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/RJQQJCNPY5N5TEMOPIA3PHPUWY.avif" alt="" class="wp-image-596924"/><figcaption class="wp-element-caption">A drone view shows construction on the 3.2 kilometre Kigongo–Busisi Bridge, named John Pombe Magufuli Bridge that crosses the southern end of Lake Victoria at a cost of approximately $300 million USD, in Mwanza, Tanzania October 14, 2024. REUTERS/Emmanuel Herman/File Photo</figcaption></figure>



DAR ES SALAAM, March 13 (Reuters)&nbsp;&#8211;&nbsp;Tanzania plans to increase overall spending by 13.4% in the fiscal year from July, according to a draft budget that focuses on the country&#8217;s debt repayment needs, the cost of a coming general election, and U.S. President Donald Trump&#8217;s pause in overseas aid.



The east African country plans to spend 57.04 trillion shillings ($22 billion) in the 12 months starting in July, up from 50.29 trillion shillings this year, according to a budget paper seen by Reuters.



Finance Minister Mwigulu Nchemba presented a paper titled &#8220;Budget Framework and Expenditure Ceiling For 2025/26&#8221; to a parliamentary committee on Tuesday.



The final budget for the coming fiscal year will be read in June.



Of the total amount, the government expects to raise 40.97 trillion shillings from domestic revenue sources and the rest through both domestic and external debt, according to the paper.



Tanzania is taking steps to reduce its dependence on unpredictable sources of revenue or debt with unfavourable terms, the paper showed.



Like some other developing countries Tanzania has also been hit hard by U.S. President Donald Trump&#8217;s freeze on all foreign aid for 90 days.



The budget has taken into consideration, the paper said, &#8220;the potential impact that is likely to happen due to changes of policies from development partners, especially the United States.&#8221;



In the next financial year the government will focus on boosting production of manufactured goods and services, and the promotion of trade and investment among other factors, the paper said.



&#8220;Specific priorities include covering costs on government debt repayment, salaries, the general election of 2025 and promotion of democracy in the country,&#8221; Nchemba said in the paper.



Tanzania is set to hold a general election in October in which voters will choose the next president, lawmakers and local government officials.



President Samia Suluhu Hassan will be seeking re-election for a second term of five years, having come to power in 2021 after the death of her predecessor.



($1 = 2,610.0000 Tanzanian shillings)



(Reporting by Nuzulack Dausen; Editing by Elias Biryabarema and Hugh Lawson)

RJQQJCNPY5N5TEMOPIA3PHPUWY

Tanzania plans to raise spending by 13% in fiscal year from July, draft shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/TK6CHSZXDJPLLBYFHHDN2UBZGY.avif" alt="" class="wp-image-596859"/><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana delivers his 2025 budget speech in Cape Town, South Africa, March 12, 2025. REUTERS/Esa Alexander/File Photo</figcaption></figure>



CAPE TOWN, March 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s budget may be tweaked further as more talks between political parties will try to overcome differences over a contentious plan to raise value-added tax, the country&#8217;s finance minister told Reuters.



Most big parliamentary parties rejected Finance Minister Enoch Godongwana&#8217;s revised budget on Wednesday, despite it scaling back the size of the proposed VAT hike from 2 percentage points to 1 point, spread over two years.



Godongwana&#8217;s African National Congress needs the support of at least one other big party for the budget to pass, but its main coalition partner, the Democratic Alliance, is dead-set against any tax increases, as are other big parties outside the coalition.



The budget has been the biggest test for the fractious coalition formed last year when the ANC lost its parliamentary majority for the first time since the end of apartheid.



&#8220;There will be engagement which may lead to some amendments in the budget. It is the nature of the thing,&#8221; Godongwana said in an interview in his parliamentary office late on Wednesday.



He said he was open to hearing proposals from lawmakers on how to change the budget, but they needed to understand the difficult trade-offs involved.



&#8220;Where we sit (as government), we say we&#8217;ve done our job and then it&#8217;s for parliament to make the final call, but if they scrap the VAT which is 14 billion (rand of additional revenue) they must then say from an expenditure side what should be scrapped,&#8221; Godongwana said.



He said a suggestion by some politicians that money could be saved by cutting the country&#8217;s bloated cabinet would not yield the sort of money the government needs to fund spending on frontline services like health and education.



Godongwana said the budget now before parliament could be the most controversial for years because the government was not likely to try to raise taxes again soon.



He said he thought the budget, which sees public debt peaking next fiscal year and the deficit falling gradually over the next three years, would be viewed favourably by ratings agencies but their main fear would be whether it gets through parliament.



&#8220;That&#8217;s a test we&#8217;ve got to pass,&#8221; he said.



(Reporting by Wendell Roelf; Editing by Alexander Winning and Lincoln Feast.)

TK6CHSZXDJPLLBYFHHDN2UBZGY

South Africa’s budget may be tweaked further, finance minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="720" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/HVJ54EB5MJKU5FY7ZFM3AURKJQ.avif" alt="" class="wp-image-596587"/><figcaption class="wp-element-caption">South Africa&#8217;s leader of the Democratic Alliance (DA) party John Steenhuisen attends the first sitting of the National Assembly following elections, at the Cape Town International Convention Center (CTICC) in Cape Town, South Africa June 14, 2024. REUTERS/Nic Bothma/File Photo</figcaption></figure>



JOHANNESBURG, March 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Democratic Alliance party said the National Treasury&#8217;s proposal to raise value-added tax in a budget tabled on Wednesday, which the DA has refused to support, put the coalition government at risk.



&#8220;The people of South Africa will be poorer, and the future of the government is at risk,&#8221; DA leader John Steenhuisen said in a statement.



(Reporting by Alexander Winning; Writing by Nellie Peyton; Editing by Olivia Kumwenda-Mtambo)

HVJ54EB5MJKU5FY7ZFM3AURKJQ

South Africa’s DA party says budget puts future of government at risk

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3340" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/BX2ACVSUS5NCLBWMNCPTHS4WVE.avif" alt="" class="wp-image-596568"/><figcaption class="wp-element-caption">An interior of a BMW iX xDrive40 displaying battery power range, is seen at a BMW dealership in Sandton, South Africa, October 27, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



PRETORIA, March 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa will spend 1 billion rand ($54.27 million) to support the local production of new energy vehicles and batteries, as well as related manufacturing projects, the National Treasury said on Wednesday.



The country is the largest automotive manufacturing hub in sub-Saharan Africa, hosting brands such as Toyota&nbsp;7203.T, Ford&nbsp;F.N, Isuzu&nbsp;7202.T, Volkswagen&nbsp;VOWG.DE&nbsp;and Mercedes&nbsp;MBGn.DE, among others.



The industry has said that government incentives and policy interventions will encourage original equipment manufacturers to invest more in the production of electric vehicles in the country.



South Africa released its Electric Vehicles White Paper in 2023, outlining the country&#8217;s strategy to transition the automotive industry from primarily producing internal combustion engine vehicles to a mix that includes electric vehicles by 2035.



In its annual budget review, the treasury said the department of trade and industry in partnership with the department of mineral resources, planned to approve and implement a regional critical minerals strategy, without giving a timeline.



Critical minerals such as copper, cobalt and lithium are needed for the production of products like electric vehicle batteries and solar panels, and are key to the world&#8217;s energy transition.



The treasury said 1 billion rand was being set aside over the medium term for the industrial development support programme, an incentive scheme that aims to increase participation and investment in infrastructure by firms in selected manufacturing sectors such as automotive.



&#8220;The purpose of the incentive is to enhance the local production and assembly of new-energy vehicles, batteries and projects focused on operational efficiency and competitiveness in new manufacturing projects,&#8221; the treasury added.



The incentive is expected to attract 30 billion rand in investment from the private sector, it added.



($1 = 18.4275 rand)



(Reporting by Nqobile Dludla; Editing by Olivia Kumwenda-Mtambo, Kirsten Donovan)

BX2ACVSUS5NCLBWMNCPTHS4WVE

South Africa to incentivise local EV production

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2500" height="1667" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/77DOL2U5WBPOVPEGVY2MPSWI3I.avif" alt="" class="wp-image-596535"/><figcaption class="wp-element-caption">Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. REUTERS/Afolabi Sotunde/Illustration/File photo</figcaption></figure>



NAIROBI, March 12 (Reuters)&nbsp;&#8211;&nbsp;A pan-African payments infrastructure provider designed to facilitate trade on the continent is piloting an African currency market platform to boost commerce across borders in the region, its chief executive said.



The Pan-African Payments and Settlement System (PAPSS), backed by 15 central banks on the continent, expects to add the platform later this year to complement its payments infrastructure that it says is currently integrated with 150 commercial banks.



&#8220;The rates will be market driven, and our system is able to do a matching based on the rates offered by the different participants in our ecosystem,&#8221; Mike Ogbalu, the CEO of PAPSS, told Reuters in an interview from Cairo.



Africa&#8217;s foreign exchange markets are often shallow and liquidity is limited, with South Africa and Nigeria dominating geographically and much of the wider trading centred around local and hard currency pairs. Those seeking other African currencies must typically secure dollars first.



However, the region has also seen some major currency reforms with countries such as Nigeria, Egypt and Ethiopia pushing ahead with efforts to move to more market-based regimes.



The Africa Currency Marketplace, as the platform will be known, will allow parties to exchange local currencies directly, Ogbalu said.



He cited the example of an Ethiopian airline selling naira-denominated tickets in Nigeria, which could then exchange its naira revenue with a Nigerian company trading in Ethiopia using the birr.



&#8220;Our system will intelligently match them and then party A will get Naira in Nigeria and party B will get birr in Ethiopia. The transaction just completes without any third-party currency being involved at all,&#8221; Ogbalu said.



There have been frequent case of companies not being able to repatriate their revenue from other countries in the region, whenever violence or economic problems cause dollar shortages in markets like South Sudan or the Central African Republic.



Companies operating in the region have been forced to take a writedown every financial year to account for currency revaluations in markets with volatile currencies, Ogbalu said.



Others have invested in assets like real estate to try to preserve the value of their assets in such markets.



There have been attempts to use cryptocurrencies like Bitcoin to get around that problem but their usage is still low, partly due to lack of legal frameworks to support their use in markets like Kenya.



&#8220;Those are some of the things we think that this African currency marketplace will unlock,&#8221; he said, saying it would be &#8220;transformational&#8221; without giving details on expected size or trading volumes.



(Reporting by Duncan Miriri and Karin Strohecker; Editing by Christina Fincher)

77DOL2U5WBPOVPEGVY2MPSWI3I

African payments system PAPSS plans to launch FX market platform this year

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/3GWHJ24G6BNGHDPVWY36IOPFFQ.jpg" alt="" class="wp-image-596532" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/3GWHJ24G6BNGHDPVWY36IOPFFQ.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/3GWHJ24G6BNGHDPVWY36IOPFFQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/3GWHJ24G6BNGHDPVWY36IOPFFQ-135x90.jpg 135w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana speaks during his 2023 budget speech in Cape Town, South Africa, February 22, 2023. REUTERS/Shelley Christians/File Photo</figcaption></figure>



CAPE TOWN, March 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s National Treasury on Wednesday proposed a smaller hike in value-added tax in a revised budget aimed at ending deadlock within the coalition government, but it was not clear if it would get the support in parliament to pass.



Last month, the Treasury had proposed a 2-percentage-point hike in VAT in its initial budget, but the African National Congress&#8217; biggest coalition partner refused to back the move, forcing the budget to be postponed.



On Wednesday, the Treasury instead proposed raising VAT by 0.5 percentage points from its current level of 15% on May 1, followed by another 0.5-percentage-point increase in 2026.



Minutes before Finance Minister Enoch Godongwana took the podium in parliament, the leader of the Democratic Alliance, the second-biggest party in government, said his party was still opposed.



&#8220;The DA will not support the budget in its current form,&#8221; said John Steenhuisen on X.



The budget has been the biggest test so far of South Africa&#8217;s fractious coalition government, formed last year after the ANC lost its parliamentary majority for the first time since the end of apartheid in 1994.



The ANC needs at least one other big party behind it to pass the budget, and parties outside of the coalition, such as the Economic Freedom Fighters, are also opposed to raising taxes.



The ANC and the DA are ideologically opposed on many issues but have managed to govern together so far with occasional disputes that have not derailed the coalition.



SPENDING PRESSURES



The Treasury said the government faced &#8220;new and persistent&#8221; spending pressures that required additional funding, and the tax increase would fund health, education and rail projects.



&#8220;This decision was not taken lightly. We thoroughly examined alternatives to raising the VAT,&#8221; Godongwana said, adding a tax hike was the best way to avoid further spending cuts.



Tax measures proposed in the latest budget would generate an additional 28 billion rand ($1.53 billion) of revenue in the fiscal year that starts on April 1 2025, Godongwana said, less than the 58 billion the Treasury had initially hoped to raise.



Additional funds would be drawn from contingency reserves, revised budget documents showed.



The budget deficit is now seen at 5.0% of gross domestic product (GDP) in the 2025/26 fiscal year and debt is expected to peak at 76.2% of GDP in 2025/26.



Consumer inflation is expected to rise due to the VAT hike, the budget showed.



($1 = 18.3462 rand)



(Roelf reported from Cape Town and Gumbi and Anders from Pretoria; Additional reporting by Nqobile Dludla and Sfundo Parakozov in Pretoria; Writing by Nellie Peyton; Editing by Alexander Winning, Alexandra Hudson)

3GWHJ24G6BNGHDPVWY36IOPFFQ

South Africa proposes smaller VAT hike in revised budget, disagreements remain

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="544" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/images-1-820x544.jpg" alt="" class="wp-image-596528" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/images-1-820x544.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/images-1-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/images-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/images-1-768x510.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/images-1-1536x1020.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/images-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Meta logo is seen in this illustration taken, August 22, 2022. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



PRETORIA, March 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s government has proposed to remove the luxury excise duty on smartphones worth below 2,500 rand ($136.37) from April 1 to support digital adoption for low-income households, the National Treasury said on Wednesday.



Currently, so called ad valorem excise duties on smartphones are charged at a rate of 9%.



&#8220;Government proposes that as of 1 April 2025 this duty rate be applied only to smartphones with a price paid greater than 2,500 rand at the time of export to South Africa,&#8221; treasury said in its budget statement.



This proposal will &#8220;enhance smartphone affordability at the lower end of the price spectrum and support efforts to promote digital inclusion for low-income households,&#8221; it added.



The move comes as South Africa plans a total shutdown of 2G and 3G networks by December 31, 2027 to free up radio waves for faster 4G LTE and 5G networks.



Critics of the plan had argued that phasing 2G and 3G networks risked exacerbating the digital divide as many low-income consumers, particularly those in remote areas, may not afford newer smartphones designed for faster networks.



Communications Minister Solly Malatsi told Reuters last year that the ad valorem excise duties contribute to the high cost of smart devices and that he was in talks with treasury to cut these.



($1 = 18.3330 rand)



(Reporting by Nqobile Dludla; Editing by Olivia Kumwenda-Mtambo)

FILE PHOTO: llustration shows Meta logo

South Africa to remove luxury duty on lower value smartphones

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="390" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Z7OUSBHECZMJVEHQT7G2AZVSQU.avif" alt="" class="wp-image-573028"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration/File photo</figcaption></figure>



JOHANNESBURG, March 12 (Reuters)&nbsp;&#8211;&nbsp;South African markets were on edge on Wednesday as the finance minister prepared to present a revised annual budget, with local media reports suggesting there was still no agreement between the two largest political parties.



At 0830 GMT the rand traded at 18.3475 against the dollar, down more than 0.7% on Tuesday&#8217;s closing level.



The Johannesburg Stock Exchange&#8217;s Top-40 index was down 0.1% and the benchmark 2030 government bond was marginally weaker.



The budget has been the biggest test so far of South Africa&#8217;s fractious coalition politics.



It was due out three weeks ago but was postponed at the last minute because of disagreements in the coalition over a plan to hike value-added tax by 2 percentage points to 17%.



Local media have reported that the amended budget is likely to propose a smaller VAT increase, in a concession&nbsp;the finance ministry hopes will help it pass.



But it is still not clear&nbsp;if that&nbsp;will work.



The biggest party in the coalition, the African National Congress, needs the support of at least one other big party in parliament&nbsp;to pass the fiscal framework.



All other big parties including the second-biggest in the coalition, the Democratic Alliance, have publicly opposed raising VAT.



Finance Minister Enoch Godongwana&#8217;s budget speech is expected to start around 1200 GMT.



&#8220;Uncertainty reigns as reports indicate no final agreement between the ANC and DA within the (coalition), meaning the budget could still face opposition in parliament,&#8221; Andre Cilliers, currency strategist at TreasuryONE, said.



&#8220;While investors were hoping for a clear fiscal path, speculation suggests the ANC will push ahead regardless, setting up a potential political battle that could impact markets.&#8221;



(Reporting by Alexander Winning; Editing by Mrigank Dhaniwala and Andrew Heavens)

Z7OUSBHECZMJVEHQT7G2AZVSQU

South African markets on edge before budget showdown

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-820x547.jpg" alt="" class="wp-image-596161" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ACCRA, GHANA &#8211; MARCH 3: Cassiel Ato Forson, Ghana&#8217;s finance minister, speaks during the National Economic Dialogue on March 3, 2025, in Accra, Ghana. The National Economic Dialogue brings together representatives from government, business, and civil society for a dialogue around the theme &#8220;Resetting Ghana: Building the Economy We Want Together&#8221; and takes place ahead of the reading of Ghana&#8217;s national budget in Parliament on March 11. (Photo by Ernest Ankomah/Getty Images)</figcaption></figure>



ACCRA, March 11 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s Finance Minister Cassiel Ato Baah Forson said on Tuesday that the West African nation faced significant external debt service costs over the next four years.



&#8220;The next four years we&#8217;ll be made to call upon to pay $8.7 billion representing 10.9% of GDP, with heavy concentration in the year 2027 and 2028,&#8221; Forson told parliament in his first budget speech.



He that Ghana will have to pay $2.5 billion in 2027 and $2.4 billion in 2028.



&#8220;In spite of all these upcoming domestic and external debt service obligations, no buffers were built to cushion this unprecedented debt service burden,&#8221; Forson said.



The West African nation is emerging from its deepest economic crisis in a generation resulting from the COVID-19 pandemic, the war in Ukraine, higher global interest rates and years of excessive borrowing.



President John Dramani Mahama, who took office in January, has vowed to boost the economy and create jobs. He faces the fallouts of a cost-of-living crisis, an ongoing bailout from the International Monetary Fund and a sovereign debt default in the cocoa and gold-producing nation.



(Reporting by Christian Akorlie; Writing by Sofia Christensen and Anait Miridzhanian; Editing by Bate Felix and Tomasz Janowski)

National Economic Dialogue Held In Ghana

Ghana faces significant external debt service, finance minister says

<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/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg" alt="" class="wp-image-495905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, March 11 (Reuters) &#8211; Nigeria&#8217;s government has started vetting potential candidates to lead its more than 100 diplomatic missions, with appointments expected &#8220;very soon&#8221;, 18 months after President Bola Tinubu recalled all ambassadors, sources familiar with the matter said.



Nigeria, Africa&#8217;s most populous country and a key Western ally in the fight against Islamist insurgents in West Africa, has operated without ambassadors since September 2023.



The minister of foreign affairs has previously blamed a lack of funds for the delay in naming new diplomats.



A government source told Reuters that the issue &#8220;is being resolved&#8221; and &#8220;that means the appointment will be announced very soon.&#8221;



Nigeria&#8217;s security services were conducting background checks on possible appointees and had started sharing their findings with the relevant agencies within the presidency and legislature, an intelligence official told Reuters.



A spokesperson from the presidency referred questions to the foreign affairs ministry, which declined to comment. The sources declined to be named as they are not authorised to speak on the matter.



Since coming to power in May 2023, Tinubu has prioritised fixing Nigeria&#8217;s struggling economy, with foreign policy taking a back seat, said a former ambassador who served in Africa and the United States.



The government has this year budgeted 302.4 billion naira ($198.30 million) to run its foreign missions.



The former Nigerian ambassador said he was informed by government officials that the issue of the absence of ambassadors in their countries had come up in discussions between Tinubu and some foreign leaders.



&#8220;Assurance had been given that they will soon be appointed,&#8221; said the former ambassador, who declined to be named.



($1 = 1,525.0000 naira)



(Reporting by Ope Adetayo, additional reporting by Ben Ezeamalu in Lagos; Editing by Sharon Singleton)

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria to appoint ambassadors, 18 months after worldwide recall, sources say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/6XIG4R3DRFK2ZPWEVWERAVU4PA.avif" alt="" class="wp-image-590617"/><figcaption class="wp-element-caption">The new logo of the Nigeria oil company is seen at the NNPC Mega Gas Station in Abuja, Nigeria August 30, 2022. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LAGOS, March 11 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s state oil company NNPC Ltd has begun discussions with the Dangote Oil Refinery to extend its contract for supplying crude oil in the naira currency, the company said.



The original six-month agreement, which ends later this month, was implemented in October after local refineries, including the Dangote facility, reported difficulties securing crude supplies.



The initiative aimed to alleviate those supply issues by allowing refineries to purchase crude in naira through NNPC Ltd. Under the existing arrangement, NNPC Ltd says it has supplied 48 million barrels of oil to the Dangote Oil Refinery.



While the initial plan included supplying seven other smaller refineries, only the Dangote refinery ultimately benefited from the agreement, and even it did not receive the initially agreed-upon volumes.



NNPC Ltd said that &#8220;discussions are ongoing towards&#8221; a new contract. The details of the potential new contract, including volume, pricing, and duration, are yet to be disclosed.



(Reporting by Isaac Anyaogu; editing by David Evans)

6XIG4R3DRFK2ZPWEVWERAVU4PA

Nigeria’s NNPC, Dangote Refinery in talks to extend naira-based crude supply deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-820x547.jpg" alt="" class="wp-image-542097" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A person enters the JPMorgan Chase &amp; Co. New York headquarters in Manhattan, New York City, U.S., June 30, 2022. REUTERS/Andrew Kelly/File Photo</figcaption></figure>



March 11 (Reuters)&nbsp;&#8211;&nbsp;J.P.Morgan on Tuesday downgraded South African equities to &#8220;neutral&#8221; from &#8220;overweight,&#8221; citing concerns over an economic slowdown and the effectiveness of the country&#8217;s policy reforms.



&#8220;While South Africa&#8217;s investment case on reforms remains an attractive point of departure, it is unlikely to result in meaningful (economic) growth that&#8217;s above 2% in the coming two years,&#8221; the brokerage said in a note.



Since the aftermath of the 2008-09 global financial crisis, the government of Africa&#8217;s most industrialised nation has struggled to deliver economic growth rates high enough to make a dent in inequality and unemployment.



In January, South African Reserve Bank (SARB) Governor Lesetja Kganyago told Reuters in an interview that the region&#8217;s economic growth could be close to 2% in 2025.



Last month, South African President Cyril Ramaphosa said his government would launch a second wave of reforms to try to bolster economic growth, by boosting struggling state companies and investing in infrastructure.



But despite improved power availability in the past year and optimism that the ruling Government of National Unity (GNU) coalition will seek to push through growth-enhancing reforms, the operating environment is expected to remain challenging for many businesses.



&#8220;We expect foreign investors to apply a wait-and-see approach while domestic investors will have to straddle the options of GNU’s imperfect execution of its reform agenda,&#8221; the brokerage said.



Last month, U.S. President Donald Trump signed an executive order to cut U.S. financial assistance to South Africa, citing disapproval of its land policy and of its genocide case at the International Court of Justice against Washington&#8217;s ally Israel.



&#8220;Global dynamics resulting in South Africa/U.S. relations being strained by matters involving expropriation, ICJ case and domestic affairs around affirmative action&#8230;create uncertainty around the performance of South Africa&#8217;s domestic assets,&#8221; JPM said.



The brokerage said it prefers Emerging European equities within the Central &amp; Eastern Europe, Middle East &amp; Africa (CEEMEA) region, but prefers South African stocks to Middle East and North Africa&#8217;s (MENA) equities.



(Reporting by Siddarth S in Bengaluru; Editing by Subhranshu Sahu and Varun H K)

Reuters

IMF has received a formal request for a new Kenya financing programme

Anglo American begins consultation to cut jobs amid business overhaul

European Union announces 4.7 billion euro investment package for South Africa

South Africa’s SPAR plans chain of up to 40 high-end grocery stores

Standard Bank’s annual profit rises, forecasts growth in medium term

Tanzania plans to raise spending by 13% in fiscal year from July, draft shows

South Africa’s budget may be tweaked further, finance minister says

South Africa’s DA party says budget puts future of government at risk

South Africa to incentivise local EV production

African payments system PAPSS plans to launch FX market platform this year

South Africa proposes smaller VAT hike in revised budget, disagreements remain

South Africa to remove luxury duty on lower value smartphones

South African markets on edge before budget showdown

Ghana faces significant external debt service, finance minister says

Nigeria to appoint ambassadors, 18 months after worldwide recall, sources say

Nigeria’s NNPC, Dangote Refinery in talks to extend naira-based crude supply deal

JPMorgan downgrades South African equities on economic slowdown concerns

News Tips

Advertise With Us

Reuters

IMF has received a formal request for a new Kenya financing programme

Anglo American begins consultation to cut jobs amid business overhaul

European Union announces 4.7 billion euro investment package for South Africa

South Africa’s SPAR plans chain of up to 40 high-end grocery stores

Standard Bank’s annual profit rises, forecasts growth in medium term

Tanzania plans to raise spending by 13% in fiscal year from July, draft shows

South Africa’s budget may be tweaked further, finance minister says

South Africa’s DA party says budget puts future of government at risk

South Africa to incentivise local EV production

African payments system PAPSS plans to launch FX market platform this year

South Africa proposes smaller VAT hike in revised budget, disagreements remain

South Africa to remove luxury duty on lower value smartphones

South African markets on edge before budget showdown

Ghana faces significant external debt service, finance minister says

Nigeria to appoint ambassadors, 18 months after worldwide recall, sources say

Nigeria’s NNPC, Dangote Refinery in talks to extend naira-based crude supply deal

JPMorgan downgrades South African equities on economic slowdown concerns

News Tips

Advertise With Us

Newsletters