<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-1980175660-820x547.jpg" alt="" class="wp-image-486547" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Duncan Wanblad, chief executive officer of Anglo American Plc, speaks on the opening day of the Investing in African Mining Indaba in Cape Town, South Africa, on Monday, Feb. 5, 2024. Mining executives, investors and government ministers are meeting in Cape Town for the African Mining Indaba, the continent&#8217;s biggest gathering of one of its most vital industries. Photographer: Dwayne Senior/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, May 14 (Reuters)&nbsp;&#8211;&nbsp;The boss of Anglo American&nbsp;AAL.L&nbsp;said on Tuesday a bid by rival BHP&nbsp;BHP.AX&nbsp;to take over the company forced him to accelerate plans for a spin-off of its South African platinum assets, which come on the cusp of a national election.



While Anglo was already working on its own review of assets including the platinum and diamonds businesses, the timeline had to be speeded up after BHP&#8217;s approach, Anglo CEO Duncan Wanblad said.



As a pre-condition for its bid, rejected twice by Anglo, BHP had requested that Anglo exit its platinum and iron ore units in South Africa, drastically reducing its presence in the country.



After arguing that the BHP proposal undervalued Anglo, the London-listed mining giant laid out a strategy on Tuesday that includes a potential break-up of the group by demerging or selling its steelmaking coal, nickel, diamonds and platinum businesses.



That includes a demerger of its Johannesburg-listed Anglo American Platinum unit, known as Amplats. The plan sent Amplats&#8217;s shares down as much as 10%.



&#8220;The only thing that the BHP approach did is that it forced the timeline on work that we were already doing,&#8221; Wanblad said on a conference call after Tuesday&#8217;s announcement.



&#8220;This is an acceleration of a strategy process that we were already executing. I have to say that I would probably not have announced it at this particular point of time,&#8221; he added, referring to the looming election in South Africa on May 29.



South Africa Mines Minister Gwede Mantashe told Reuters he had no issues with the proposed demerger of Amplats, even if the ultimate fate of the business remains unclear.



&#8220;It is&#8230; important for Anglo to restructure itself to get optimal performance of every portfolio in their stable,&#8221; Mantashe said. &#8220;And I hope it will work for them.&#8221;



Mantashe, who had opposed BHP&#8217;s bid, said he hoped Anglo would continue resisting the offer from its rival, which was raised to $43 billion on May 7.



Shares in Anglo unit Kumba Iron Ore&nbsp;KIOJ.J, which under the review laid out on Tuesday would remain within the group, rose 2.3%, reversing earlier losses.



As the election looms, weak economic growth and high unemployment are among the key issues on voters&#8217; minds.



The planned break-up of Anglo, which had already announced thousands of job cuts in South Africa due to lower metals prices, raises the prospect of more job losses. The main union federation COSATU said it would seek reassurances.



Wanblad said the group, which has a 79% stake in Amplats, remained committed to South Africa. &#8220;I can&#8217;t belabour the point more that this is not actually leaving South Africa in any way, shape or form,&#8221; he said.



Founded by gold and diamond baron Ernest Oppenheimer at the peak of the World War One in 1917, Anglo American has been synonymous with South African mining for decades.



It employs roughly 45,000 people in South Africa, though Amplats has announced plans to cut 3,700 jobs while Kumba plans 490 job cuts.



(Reporting by Felix Njini; Writing by Silvia Aloisi; Editing by Jan Harvey)

Key Speakers at The Investing in African Mining Indaba

Anglo CEO says BHP bid forced his hand on demerger of South African assets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-820x542.jpg" alt="" class="wp-image-486564" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-1536x1015.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Social grant recipients stand in a queue outside a post office, as joblessness takes its toll in Meadowlands, a suburb of Soweto, South Africa, February 24, 2022. Picture taken February 24, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, May 14 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s unemployment rate rose for the second quarter in a row to 32.9% in the first three months of this year, data showed on Tuesday, two weeks before the governing African National Congress faces its toughest election yet.



The increase from 32.1% in the fourth quarter of last year brings the official unemployment rate closer to the record high of 35.3% reached in late 2021 during the COVID-19 pandemic.



South Africans will vote in national and provincial elections on May 29, with opinion polls suggesting that the governing African National Congress (ANC), which has been in power since the end of apartheid, is at risk of losing its parliamentary majority.



Joblessness has risen about 10 percentage points in the three decades since the ANC came to power under liberation hero Nelson Mandela and is a key concern among voters.



In the first quarter of 2024 the largest decreases in employment were in the community and social services and construction sectors. There were job gains in sectors like manufacturing, agriculture and mining.



Frank Blackmore, KPMG South Africa&#8217;s lead economist, said as long as the economy continues to grow below 1% with population growth of about 1.5% then the unemployment rate will continue to rise.



Sanisha Packirisamy, economist at Momentum Investments, said policy measures had failed to address structural problems contributing to joblessness, like matching graduates to jobs available.



Over the past decade the number of people in long-term unemployment, or those who have not worked for a year or longer, has nearly doubled. The total number of unemployed people stands at more than 8.2 million.



Unemployment rates are especially high among South African youth compared to older age groups, and among Black people versus other population groups.



The ANC government created a new benefit for the working-age unemployed accessed by over 6 million people during the COVID pandemic. Though it was meant to be temporary, it was extended earlier this year.



(Reporting by Kopano Gumbi; Additional reporting by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning and Emelia Sithole-Matarise)

South Africa wrestles on takling poverty and inequality as joblessness takes toll

South Africa’s unemployment rate climbs weeks before election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="509" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-820x509.jpg" alt="" class="wp-image-486544" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-820x509.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-300x186.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-145x90.jpg 145w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-768x477.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-1536x954.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past an outlet of South Africa&#8217;s MTN Group at the Mall of the South in Johannesburg, South Africa, November 4, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, May 14 (Reuters)&nbsp;&#8211;&nbsp;MTN Group&nbsp;MTNJ.J, Africa&#8217;s biggest telecoms operator, reported&nbsp;on Tuedsay an&nbsp;18.8% fall in first-quarter service revenue, weighed down by the performance of MTN Nigeria&nbsp;MTNN.LG, and also revised down its expected capital expenditure for 2024.



MTN, with 288 million subscribers in 18 markets across Africa, said its reported group service revenue fell to 42.9 billion rand ($2.34 billion) in the quarter ended March 31, from 52.8 billion rand in the same quarter last year.



In constant currency, service revenue, which excludes device and SIM card revenue, rose by 11.1%.



MTN&#8217;s service revenue from South Africa surpassed that of Nigeria, its biggest market by revenue, growing marginally by 3% to 10.4 billion rand, while Nigeria tumbled by 52.8% to 10.2 billion rand.



By 0806 GMT shares in MTN were down 2.92%.



&#8220;The macro environment in the first quarter of 2024 remained challenging with ongoing high inflation as well as local currency devaluations in some of our key markets,&#8221; Group President and CEO Ralph Mupita said in a statement.



Mupita also cited global geopolitical tensions as a factor impacting the operator&#8217;s performance, including the ongoing civil war in Sudan, which severely affected network availability and revenue generation in that business.



MTN was also impacted by subsea cable cuts that resulted in downtime.



Overall reported group earnings before interest, tax, depreciation and amortization (EBITDA) fell by 28.7% to 17.2 billion rand and rose by 3.9% in constant currency.



Reported EBITDA margin declined by 5.8 percentage points to 37.9% due to rising costs and currency depreciation mainly in Nigeria.



The group revised down its anticipated capital expenditure (excluding leases) deployment for 2024 to about 28 billion rand to 33 billion rand from a target of 35 billion rand to 39 billion rand, largely due to a reduction in expected spending by MTN Nigeria.



In 2023 it deployed 41.1 billion of capex.



Following an extraordinary general meeting, the board of MTN Nigeria approved a number of initiatives to restore profitability such as asking for tariff increases, reducing dollar exposure and lowering capex after extensive investment in its network over the past few years.



($1 = 18.3539 rand)



(Reporting by Nqobile Dludla; Editing by Kim Coghill, Subhranshu Sahu and Susan Fenton)

FILE PHOTO: A man walks past an outlet of South Africa’s MTN Group in Johannesburg

South Africa’s MTN service revenue falls, lowers capex target

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="515" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-820x515.jpg" alt="" class="wp-image-480200" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-820x515.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-768x482.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-1536x964.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The Anglo American logo is seen in Rusternburg October 5, 2015. Picture taken October 5, 2015. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



LONDON, May 14 (Reuters)&nbsp;&#8211;&nbsp;Anglo American&nbsp;AAL.L&nbsp;laid out plans on Tuesday to refocus on energy transition metal copper while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses, as it moves to fend off BHP Group&#8217;s $43 billion takeover offer.



The announcement comes a day after the London-listed miner rejected its Australian suitor for the second time in less than three weeks, saying an increased proposal continued to significantly undervalue the company.



Anglo said on Tuesday it would divest its steelmaking coal assets, demerge its South African platinum unit, explore options for its nickel mines and divest or demerge diamonds business De Beers. The group expects the new configuration will lower costs by $1.7 billion.



&#8220;We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction,&#8221; Anglo CEO Duncan Wanblad said.



Anglo shares were down 3.3% at 26.17 pounds by 1224 GMT.



Moving to drum up support for his proposal, BHP BHP.AX CEO Mike Henry said on Tuesday it was down to investors to weigh the merits of his company&#8217;s offer for Anglo.



BHP&#8217;s 27.53 pound per share approach, raised from an initial 25.08 pounds, would require Anglo to sell its iron ore and platinum assets in South Africa, where it employs more than 40,000 people.



That has caused alarm in South Africa, where unemployment and a stagnant economy are major issues ahead of a May 29 election.



Wanblad said BHP&#8217;s bid had forced him to accelerate plans for a spin-off of Johannesburg-listed Anglo American Platinum&nbsp;AMSJ.J&nbsp;(Amplats).



Under Tuesday&#8217;s plan, Anglo will keep its South African Kumba Iron Ore business&nbsp;KIOJ.J, while Wanblad said the planned divestment of Amplats would be &#8220;completely different&#8221; in terms of time and complexity to the BHP proposal.



South Africa&#8217;s mines minister Gwede Mantashe said on Tuesday he had no problem with Anglo&#8217;s proposal, and that he hoped it would continue to resist BHP&#8217;s bid.



Anglo is also exploring an initial public offering of its diamond business De Beers, two people familiar with the matter told Reuters on Tuesday, with one flagging London as the preferred venue. Anglo declined to comment.



The company also said on Tuesday it would slow the development of its Woodsmith fertiliser project in northeast England and seek strategic partners. First production at Woodsmith will be pushed back from 2027, Wanblad said.



The divestment of Anglo&#8217;s steelmaking coal operations could move rapidly, he added, given available interest.



<h2 class="wp-block-heading" id="h-self-help">SELF-HELP</h2>



Anglo has been meeting investors since BHP&#8217;s initial approach in April, and after a review of its assets initiated in February following a 94% plunge in annual profit.



One top 20 investor at Anglo, who said a deal with BHP was likely to lead to less copper being produced rather than the increase needed to accelerate the world&#8217;s energy transition, welcomed Tuesday&#8217;s proposal.



&#8220;At the moment, Anglo has lots of very interesting assets &#8230; but it is not a focused business focused on a clear strategic goal,&#8221; the shareholder said. &#8220;This plan offers clarity of purpose.&#8221;



MKP Advisers said however that the concern with the &#8220;self-help plan&#8221; will be that it is &#8220;too little, too late&#8221;.



&#8220;There is no timescale attached to most of the plans and it has been clear to most that many of the potential disposals across the portfolio are simply tough to execute,&#8221; MKP said.



Activist fund Elliott, one of Anglo&#8217;s top 10 shareholders after building up a $1 billion stake, declined to comment on the plan. It is expected to put out a statement later in the day, sources say.



Developments such as artificial intelligence and automation, and the energy transition that includes electric vehicles and renewable energy, have driven up demand prospects for copper cable used to conduct electricity.



Copper prices&nbsp;CMCU3&nbsp;have risen 25% from this year&#8217;s Feb. 9 low to $8,127 a tonne.



Ashwin Pillay, senior associate at law firm Charles Russell Speechlys, said the new plan addressed shareholder concerns that the value of Anglo&#8217;s copper mines has been suppressed by less valuable operations such as the diamond division.



&#8220;Intriguingly, there is still an opportunity for BHP to raise their offer further, including by adding a cash component, which would sweeten the pot,&#8221; he added.



($1 = 0.7966 pounds)



(Additional reporting by Melanie Burton in Melbourne, Sinead Cruise in London and Eva Mathews; Writing by Jan Harvey; Editing by Nivedita Bhattacharjee, Kirsten Donovan, Sonali Paul, Catherine Evans and Emelia Sithole-Matarise)

FILE PHOTO: The Anglo American logo is seen in Rusternburg

Anglo American eyes break-up as it fends off BHP offer

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-820x615.jpg" alt="" class="wp-image-486266" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Members of the Nigerian Labour Union, holding flags and placards, march during a protest against fuel price hikes and rising costs, in Abuja, Nigeria August 2, 2023. REUTERS/Abraham Achirga</figcaption></figure>



LAGOS, May 13 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s labour unions on Monday began a protest over a hike in electricity tariffs by more than 200% for some users by blocking access to the offices of the country&#8217;s electricity regulator and power companies.



The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) &#8211; two of the country&#8217;s biggest unions &#8211; had issued a two-week notice calling for the reversal of the new tariff hike and warned of &#8220;swift and decisive action.&#8221;



Strikes by these unions, which often follow this kind of protest, usually have an economic impact.



The NLC and TUC are demanding an immediate return to the previous electricity tariff, an immediate end to the practice of segregating consumers into what they say are arbitrary bands, and a return to corporate governance within the sector.



The Nigerian Electricity Regulatory Commission (NERC) had on April 3 raised electricity tariffs from 66 naira ($0.0465)/kwh to 225 naira ($0.1585) for about 15% of the 12 million grid-connected customers who are supposed to get up to 20 hours of power monthly.



&#8220;We have noted your concerns and we will go back to the drawing board,” NERC head Sanusi Garba told the protesting workers, who have insisted that the new rates be reversed before any negotiations are held.



The increase drew nationwide outrage because the power companies lacked the capacity to meet the contracted hours and would trim supplies to other users to satisfy their wealthier customers. NERC last week reduced the tariffs to 206.8 naira ($0.1456)/kWh saying the naira rose marginally against the dollar.



Nigeria&#8217;s regulator fixes tariffs based on economic factors including the price of gas &#8211; still sold locally in dollars &#8211; the inflation rate and the exchange rate, as most inputs are imported. It is trying to wean the sector off government subsidies that have led to tariffs that cannot guarantee commercial returns for investors.



Labour unions chanting solidarity songs also blocked the offices of some of the country&#8217;s power distribution firms as well as the ministry of power in Abuja.



Electricity workers at some distribution companies were sent away from their own offices, forcing some to return home.



&#8220;NLC just chased us out of our office,&#8221; one electricity worker posted on X with a smiley emoji. &#8220;My weekend has been extended.&#8221;



($1 = 1,419.9000 naira)



(Reporting by Isaac Anyaogu; Editing by Hugh Lawson)

Members of the Nigerian Labour Union protest against fuel price hikes and rising costs, in Abuja

Nigeria’s labour unions protest hike in electricity tariff

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-820x547.jpg" alt="" class="wp-image-408693" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A sign stands at the entrance to the offices of Anglo American Plc in the Marshalltown district of Johannesburg, South Africa, on Friday, Oct. 26, 2012. Anglo American Plc Chief Executive Officer Cynthia Carroll , the first woman, external hire and non-South African to hold the job, will quit after Anglo lost $14 billion in value in the more than five years she was in charge. Photographer: Chris Ratcliffe/Bloomberg via Getty Images</figcaption></figure>



LONDON, May 13 (Reuters)&nbsp;&#8211;&nbsp;BHP Group&nbsp;BHP.AX&nbsp;said on Monday that Anglo American&nbsp;AAL.L&nbsp;had rejected a revised buyout offer valuing the company at 34 billion pounds ($42.67 billion).



Anglo American had in April rebuffed BHP&#8217;s $39 billion all-share takeover proposal, saying it was opportunistic and significantly undervalued its prospects.



The new offer is 10% higher than BHP&#8217;s first one, or a 15% increase in the merger exchange ratio, lifting Anglo American shareholders&#8217; aggregate ownership in the combined group to 16.6% from 14.8% in the earlier proposal, it said.



Anglo&#8217;s share price was down 0.7% at 27.58 pounds.



&#8220;We are disappointed that this second proposal has been rejected,&#8221; BHP&#8217;s CEO Mike Henry said in a statement.



&#8220;BHP continues to believe that a combination of the two businesses would deliver significant value for all shareholders,&#8221; the statement added.



The world&#8217;s biggest listed miner has until May 22 to log in a binding offer.



Anglo declined to comment.



Anglo is attractive to its competitors for its prized copper assets in Chile and Peru. The metal is used in everything from electric vehicles and power grids to construction, and demand for it is expected to rise as the world moves to cleaner energy and wider use of AI.



But the London-listed miner&#8217;s sprawling portfolio also includes platinum, iron ore, steelmaking coal, diamonds and a fertiliser project.



The revised bid is still contingent upon Anglo selling its shares in iron ore and platinum assets in South Africa, a country BHP exited in 2015.



Anglo&#8217;s investors are concerned that they stand to lose heavily by holding shares in the South African subsidiaries if they are unbundled.



($1 = 0.7968 pounds)



(Reporting by Clara Denina, Eva Mathews; Editing by Louise Heavens and Bernadette Baum)

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

BHP says Anglo American rejected $42.7-billion revised proposal

<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-2040295100-820x547.jpg" alt="" class="wp-image-486231" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DURBAN, SOUTH AFRICA &#8211; FEBRUARI 24: South African President and African National Congress (ANC) President Cyril Ramaphosa seated next to National Chairperson (and minister of mineral resources) Gwede Mantashe (c) and Fikile Mabula (l), the secretary general of the ANC and deputy President Paul Mashatile after speaking to supporters at the ANC Election Manifesto at Moses Mabhida Stadium on February 24, 2024, in Durban, South Africa. About 70,000 people gathered to hear ANC President Cyril Ramaphosa state the promises in advance of the election which will be held on May 29, 2024. Mr. Ramapahosa promised to step up his governments efforts to create jobs, welfare grants and a national health care program. ANC has seen decreased support in recent polls and especially KwaZulu-Natal province will be a tightly contested province during 2024 elections, Thirty years after the first democratic elections on April 27, 1994. (Photo by Per-Anders Pettersson/Getty Images)</figcaption></figure>



JOHANNESBURG, May 13 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa on Monday rejected opposition allegations that a recent pause in the electricity cuts that have plagued the country for years was due to an election coming up on May 29.



Rolling power cuts imposed by state utility Eskom reached record levels in 2023 and continued in the first quarter of this year, but there has now been no load-shedding, as South Africans call the cuts, for 48 straight days, the longest period for more than two years.



Over the same 48-day period last year, there were power cuts every day, according to data collected by The Outlier, an independent South African publication specialising in public service data visualisations.



The dramatic improvement in power supply has been a talking point in South African media and has led to opposition accusations that the timing was designed to improve voter satisfaction with the governing African National Congress.



The ANC faces its toughest electoral test to date, with opinion polls suggesting it is on course to lose its parliamentary majority for the first time since it came to power 30 years ago at the end of apartheid.



In a weekly newsletter, Ramaphosa said Eskom&#8217;s improved performance showed that the government&#8217;s energy plan announced in 2022 was bearing fruit.



&#8220;Yet, against all the available evidence, some people have claimed that the reduced load-shedding is a political ploy ahead of the elections,&#8221; he said. &#8220;This is not borne out by the facts.&#8221;



Ramaphosa attributed the improvement to a renewed focus by Eskom on maintenance, new generation capacity from renewable energy projects and strong take-up of rooftop solar panels boosted by tax incentives.



<h2 class="wp-block-heading" id="h-burning-diesel">BURNING DIESEL</h2>



The Democratic Alliance, the biggest opposition party, last week attributed the improved power supply to &#8220;political interference&#8221; by the ANC, which it accused of putting pressure on Eskom to keep the lights on.



&#8220;South Africans should not be fooled by this brazen abuse of power and they must act to decisively vote out the manipulators on the 29th of May,&#8221; it said in a statement on its website.



A particular point of dispute was whether Eskom was burning more diesel to increase supply, as alleged last week by the utility&#8217;s former CEO, Andre de Ruyter, who is openly antagonistic towards the ANC.



&#8220;If the lights are on, well done, but they&#8217;re on because we are pouring money into diesel at a rate of knots,&#8221; de Ruyter, who stepped down in February 2023, told a conference in South Africa, in comments widely reported by local media.



South Africa&#8217;s energy regulator Nersa said on Friday that in April alone, Eskom had generated 168.5 GWh from diesel generators, more than half of the maximum it is normally allowed per quarter.



In televised remarks on Monday, Electricity Minister Kgosientsho Ramokgopa denied that excessive use of diesel-powered turbines was behind the pause in load-shedding.



&#8220;Nothing could be further from the truth,&#8221; he said, accusing Eskom&#8217;s detractors of attempting &#8220;to soil the work that the Eskom team has done&#8230; in its totality from the board to the lowest members of Eskom including the cleaners&#8221;.



(Editing by Estelle Shirbon, Kirsten Donovan)

ANC Election Manifesto Rally

South Africa’s Ramaphosa denies pause in power cuts is linked to election

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="535" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II.jpg" alt="" class="wp-image-486195" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II-768x514.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">An employee holds an ingot of 99.98 percent pure platinum in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. REUTERS/Alexander Manzyuk</figcaption></figure>



LONDON, May 13 (Reuters) &#8211; Average prices for platinum, palladium and rhodium are expected to fall this year compared with 2023 despite another year of structural deficit for all the three metals of the group, consultancy Metals Focus said on Monday.



The basket price of the platinum group metals (PGMs), which are chiefly used in vehicle exhausts to neutralise harmful engine emissions, slumped in 2023 due to worries that rising market share of PGMs-free, battery-powered electric vehicles (BEVs) would reduce demand in future.



Demand for the PGMs from the auto sector rose last year as the 2021-2022 chip crisis had run its course, but the pace of BEVs penetration remained the main challenge for the PGMs demand, Metals Focus said in its 104-page report.



BEVs currently account for 14% of auto production, up from 11% at the beginning of 2023, Metals Focus said. This impact has been partly offset by a pickup in hybrid vehicles, which need PGMs. These now have a 22% share of light duty vehicles, up from 18% at the start of 2023.



The competition between the metals inside the group saw a change in 2023 with the slowing substitution of palladium with platinum as the two approached price parity.



&#8220;Going forward, we expect substitution will stall,&#8221; Metals Focus said.



On the supply side, lower palladium and rhodium prices have squeezed margins, with half of South African mines operating uneconomically on an all-in sustaining cost basis, an industry metric that reflects total expenses, at the end of 2023.



Many miners sought to reduce costs, and this process will keep supply constrained this year causing another year of structural deficit, which in its turn is going to be covered by existing above-ground stocks.



&#8220;Trading behaviours that dominated 2023 will continue to play a large role in shaping prices in 2024,&#8221; Metals Focus said.



In 2024, Metals Focus expects average prices for platinum &lt;XPT=> to slide by 1% to $960 per troy ounce, for palladium &lt;XPD=> to decline by 23% to $1,030, and for rhodium &lt;RHOD-LON> to fall 28% to $4,750.



(Reporting by Polina Devitt; editing by Nick Macfie)

Production of platinum at Krastsvetmet precious metals plant in Krasnoyarsk

Platinum, palladium, rhodium prices seen down in 2024 despite deficit, Metals Focus says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WXSNTG2BI5OMZLFTMBEVMCBXYY-820x550.jpg" alt="" class="wp-image-486144" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WXSNTG2BI5OMZLFTMBEVMCBXYY-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WXSNTG2BI5OMZLFTMBEVMCBXYY-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WXSNTG2BI5OMZLFTMBEVMCBXYY-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WXSNTG2BI5OMZLFTMBEVMCBXYY-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WXSNTG2BI5OMZLFTMBEVMCBXYY-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WXSNTG2BI5OMZLFTMBEVMCBXYY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Dalene Raiters stands at the single room that she shares with her two sons and a grandchild in Eldorado Park, in the south of Johannesburg, South Africa, March 28, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, May 13 (Reuters) &#8211; South Africans will vote in a national election on May 29 with an unprecedented sense of uncertainty about the outcome, as polls suggest the African National Congress will lose its majority after 30 years in power.



With coalition government looking like a possibility for the first time since the end of apartheid, a dizzying array of 70 parties from Marxists to social democrats to free marketeers are vying for voters&#8217; attention in the last weeks of campaigning.



The following are the key issues that matter to voters who will elect a new National Assembly that will then choose the next president.



<h2 class="wp-block-heading" id="h-jobs">JOBS</h2>



South Africa has one of the highest unemployment rates in the world, trapping millions of people in poverty and making them reliant on social grants, and the problem is worse now than it was at the end of apartheid.



The joblessness rate stood at 32.4% in 2023, nearly 10 points higher than in 1994, when the ANC came to power. Young people account for more than half of the country&#8217;s unemployed, with a rate of over 40%.



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



The root cause of the joblessness crisis is sluggish growth. South Africa&#8217;s economy has barely grown in more than a decade, with economic growth averaging 0.8% since 2012.



Falling tax revenue has caused government debt to rise, with debt-servicing costs consuming a greater share of the national budget than basic education, social protection or health. The debt-to-GDP ratio is projected to reach 74.1% in the current fiscal year, up from 63.3% five years ago.



<h2 class="wp-block-heading" id="h-power-cuts">POWER CUTS</h2>



Known to South Africans as &#8220;load-shedding&#8221;, scheduled power cuts imposed by state utility Eskom because of an inability to generate enough electricity to meet demand are the bane of households as well as companies.



Eskom has been struggling to keep its ageing fleet of coal-fired power plants operational. The utility became dysfunctional in part due to a flourishing of corruption during the administration of former president Jacob Zuma from 2009 to 2018.



The government is working to add generating capacity, largely through deals with private companies operating solar and wind projects. While some projects are operational, the green power push suffered setbacks after some projects failed to secure funding.



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



A long series of corruption scandals involving ANC figures or people connected to them has created a perception among many South Africans that the greed of people in office is contributing to poor service delivery for everyone else.



An inquiry established in 2018 to examine allegations of&nbsp;high-level corruption during Zuma&#8217;s years in power&nbsp;found the problem had been systemic in government, a phenomenon that became known as &#8220;state capture&#8221;.&nbsp;Zuma himself denies any wrongdoing.



Since taking over from Zuma, President Cyril Ramaphosa has said tackling corruption was a priority, but opposition critics say his administration has done too little to stop the rot.



<h2 class="wp-block-heading" id="h-crime">CRIME</h2>



South Africa has one of the world&#8217;s highest rates of violent crime, making it unsafe to venture into certain neighbourhoods. The problem is worse in the densely populated townships on the peripheries of cities where many Black working class people live.



The murder rate for 2022/23 was the highest in 20 years at 45 per 100,000, a 50% increase from a decade ago, police figures show. That is higher than in Honduras, a country plagued by extreme gang violence.



High levels of poverty, unemployment and inequality have created fertile ground for crime to take root in South Africa, compounded by the proliferation of organised criminal groups and a flood of illegal weapons in recent years.



<h2 class="wp-block-heading" id="h-immigration">IMMIGRATION</h2>



Since the end of apartheid, South Africa has attracted large numbers of refugees and immigrants from other African countries, seeking a safe haven and job opportunities.



The most recent census, in 2022, found that 2.4 million of South Africa&#8217;s population of 62 million were immigrants, compared with 835,000 in 1996, the year the post-apartheid constitution was promulgated.



Over the years, anti-immigrant sentiment has risen, and South Africa has experienced several violent crises when immigrants have been beaten up or killed by mobs and their businesses have been looted.



With voters turning against African immigrants, the government as well as the opposition have increasingly talked about tightening immigration laws to reduce the number of arrivals, and about cracking down on undocumented immigration.



In April, the government approved&nbsp;a policy report&nbsp;on toughening up the country&#8217;s immigration laws. It raised the possibility that South Africa could withdraw from United Nations conventions on refugees to &#8220;deter economic migrants who come to South Africa disguising as asylum seekers&#8221;.



A bill based on the&nbsp;report&nbsp;is expected to be introduced in parliament should the ANC remain in power after the election.



(Reporting by Olivia Kumwenda-Mtambo; Editing by Estelle Shirbon and Toby Chopra)

FILE PHOTO: South African social safety net at crossroads as ANC support wanes

Key issues for South African voters in wide open 2024 election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg" alt="" class="wp-image-486141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-1536x1012.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A shopper walks past a Vodacom shop in Johannesburg, file. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, May 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Vodacom Group&nbsp;VODJ.J&nbsp;on Monday reported a 10.8% fall in full-year earnings, impacted by start-up loss in Ethiopia, higher finance and energy costs and inflationary pressure.



The company, majority-owned by Britain&#8217;s Vodafone&nbsp;VOD.L, co-launched Safaricom Ethiopia in 2022 as part of a consortium, betting that the populous nation will power growth after about five years of investment. Vodacom has a direct 5.7% stake.



The biggest telecoms operator in South Africa said headline earnings per share (HEPS), a profit measure, fell to 846 cents in the year ended March 31 from 948 cents a year earlier.



Group CEO Shameel Joosub said weaker exchange rates across markets including the recent devaluation of the Egyptian pound contributed to the decline in HEPS.



He said despite start-up costs associated with operations in Ethiopia, Safaricom has confirmed that its network roll-out was on track in Africa&#8217;s second-most populous country after Nigeria.



Group service revenue grew 29.1% to 120.9 billion rand ($6.57 billion), benefiting from the acquisition of Vodafone Egypt. On a pro-forma comparable basis, group service revenue growth was 9.2%, at the higher end of its medium-term range.



Group earnings before interest, tax, depreciation and amortisation (EBITDA) grew 24.3% to 56.1 billion rand and by 7.8% on a pro-forma basis, with Egypt being a key driver of the growth.



Joosub said despite the economic backdrop, the group is committed to capital expenditure of 13% to 14.5% of overall revenue of 151 billion rand.



The board declared a final dividend of 285 cents a share.



($1 = 18.4096 rand)



(Reporting by Nqobile Dludla; Editing by Sonali Paul and Christopher Cushing)

FILE PHOTO: A shopper walks past a Vodacom shop in Johannesburg

South Africa’s Vodacom profit hit by Ethiopia loss

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="519" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-820x519.jpg" alt="" class="wp-image-485152" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-768x486.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-1536x973.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A small toy figure and mineral imitation are seen in front of the BHP logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



May 10 (Reuters) &#8211; BHP Group BHP.AX is weighing its next move after its initial $39 billion proposal to buy Anglo American AAL.L was rejected.



The world&#8217;s No. 1 miner could table a formal offer on or before May 22 or seek an extension. It may also insist that Anglo un-bundles the South African platinum and iron ore units that BHP doesn&#8217;t want in a merged company.



Anglo is a household name in Africa&#8217;s most industrialised economy with its links to South African mining enduring for more than a century.



Here is how South Africa&#8217;s regulatory processes will operate if BHP goes ahead with the proposed acquisition:



<h2 class="wp-block-heading" id="h-antitrust-agencies">ANTITRUST AGENCIES</h2>



South Africa&#8217;s Competition Commission has said it must be notified of any transaction that results in a change of control over Anglo&#8217;s businesses in the country.



Even if Anglo agrees to spin off Anglo American Platinum&nbsp;AMSJ.J&nbsp;and Kumba Iron Ore&nbsp;KIOJ.J, it would still have assets in South Africa including De Beers&#8217; Venetia diamond mine and a 40% shareholding in Samancor, a manganese joint venture with South32.



The Competition Tribunal adjudicates on matters referred to it by the Competition Commission. The Competition Appeal Court could also be involved if decisions of the Commission and Tribunal are contested.



<h2 class="wp-block-heading" id="h-competition-commission-hurdle">COMPETITION COMMISSION HURDLE</h2>



The Commission examines aspects of a deal it considers anti-competitive, and also the impact on the operations of small and medium-sized businesses, jobs, local ownership and workers&#8217; equity participation in business entities.



Law firm Bowmans said in a recent note that some of these public interest aspects &#8220;undermine&#8221; investment in South Africa, especially if applied in an inflexible manner.



<h2 class="wp-block-heading" id="h-who-else-is-involved">WHO ELSE IS INVOLVED?</h2>



The transfer of mining rights would need to comply with Section 11 of South Africa&#8217;s Mineral and Petroleum Resources Development Act, requiring the holder of mining titles to notify the Ministry of Mineral Resources and Energy and the Ministry of Finance of its intention to transfer them.



The ministries have 90 days to decide whether to allow the transfer of rights, after considering factors such as the new owner&#8217;s capacity to comply with mining law and government mining policies. The period can be extended under certain circumstances, to ensure &#8220;thorough evaluation&#8221;.



South African competition lawyer Michelle Le Roux told Reuters she does not foresee significant obstacles over mining rights should BHP&#8217;s proposed acquisition go ahead.



<h2 class="wp-block-heading" id="h-labour-unions">LABOUR UNIONS</h2>



South Africa&#8217;s registered labour unions have a legal right to information from the parties involved in the merger, including details of the impact on employment.



Trade union representatives participate in merger hearings and can make submissions for anti-trust agencies to consider when ruling on a transaction.



<h2 class="wp-block-heading" id="h-protracted-process">PROTRACTED PROCESS</h2>



The Competition Commission has 40 business days to investigate large mergers and can seek a 15-day extension with the consent of both parties and the Competition Tribunal.



However, competition lawyer Le Roux said that for large mergers the process could ultimately take between six months and three years to reach a conclusion, depending on appeals against the Commission&#8217;s ruling.



&#8220;It really is a very variable time-frame and it’s normally determined by how much opposition there is, how complicated the issues are, how many stakeholders and participants need to be heard and have their concerns addressed,&#8221; she told Reuters.



Walmart&#8217;s&nbsp;WMT.N&nbsp;$2.3 billion purchase of a 51% stake in South Africa&#8217;s Massmart took 16 months before the Competition Appeal Court gave the deal a green light, with conditions, in March 2012.



The merger was bogged down by objections from labour unions and the South African government over its effect on employment and small businesses.



&#8220;The real question is what the final deal looks like and what potential package of remedies, conditions would be put on the table,&#8221; Le Roux said of BHP&#8217;s proposed Anglo deal.



&#8220;From the reaction to the initial announcement, it&#8217;s clear that the deal is going to have a lot of scrutiny and is likely to attract quite a lot of participation from different stakeholders.&#8221;



(Reporting by Nelson Banya; Additional reporting by Felix Njini; Editing by Kirsten Donovan)

FILE PHOTO: Small toy figure and mineral imitation are seen in front of the BHP logo in this illustration

How South Africa’s anti-trust agencies could influence BHP’s Anglo deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="600" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-820x600.jpg" alt="" class="wp-image-474643" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-820x600.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-300x220.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-123x90.jpg 123w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-768x562.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-1536x1124.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman walks past the Reserve Bank of Zimbabwe building in Harare, Zimbabwe March 1, 2024. REUTERS/Philimon Bulawayo/FILE PHOTO</figcaption></figure>



HARARE, May 10 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe will fine businesses using inflated exchange rates as the government battles to maintain the value of its newly introduced gold-backed currency, the Zimbabwe Gold (ZiG).



Any business using an exchange rate higher than the official rate of 13.5 ZiG per U.S. dollar will be liable for a fine of 200,000 ZiG ($14,815), according to a government notice seen by Reuters.



Anyone offering &#8220;goods or services at an exchange rate above the prevailing interbank foreign currency selling rate&#8221; would be guilty of a civil infringement, read the notice, issued late on Thursday.



The government has been making efforts to keep the ZiG afloat since its launch in early April, with authorities launching a blitz on illegal foreign currency traders last month.



Some businesses such as supermarkets have been charging a premium above the market rate for customers paying in the new currency, while the ZiG is being rejected by informal traders.



Zimbabwe&#8217;s Treasury on Tuesday moved to enforce the use of the ZiG as the official unit of exchange for transactions.



This is Zimbabwe&#8217;s fourth attempt at having a local currency within a decade, with the southern African country dumping the Zimdollar last month after it lost 70% value since the start of the year.



(Reporting by Nyasha Chingono; Editing by Nellie Peyton and Ros Russell)

A woman walks past the Reserve Bank of Zimbabwe building in Harare

Zimbabwe to fine businesses not using new official exchange rate

<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/ENAWVZJZOJJ6ZPFMNTHQI2ILHA-820x547.jpg" alt="" class="wp-image-485033" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ENAWVZJZOJJ6ZPFMNTHQI2ILHA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ENAWVZJZOJJ6ZPFMNTHQI2ILHA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ENAWVZJZOJJ6ZPFMNTHQI2ILHA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ENAWVZJZOJJ6ZPFMNTHQI2ILHA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ENAWVZJZOJJ6ZPFMNTHQI2ILHA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ENAWVZJZOJJ6ZPFMNTHQI2ILHA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 8, 2024. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



May 10 (Reuters)&nbsp;&#8211;&nbsp;European shares opened at a record high on Friday, led by energy companies and miners, setting the benchmark index for its biggest weekly gain since late January on growing interest rate cut bets in the region.



The pan-European STOXX 600&nbsp;.STOXX&nbsp;climbed 0.5% in a broad-based rally, eyeing a 2.8% weekly gain.



Earlier this week, the Bank of England hinted at summer rate cuts and Sweden&#8217;s Riksbank delivered its first cut since 2016. Last month, the European Central Bank in its policy meeting signalled a rate cut in June, all underscoring Europe&#8217;s divergence from the U.S. Federal Reserve.



Investors awaited minutes from the ECB&#8217;s last policy meeting later on Friday.



Basic resources .SXPP, up 1.4%, topped sectoral gainers tracking higher metal prices, while energy stocks .SXEP rose 1.1% in line with gains in oil prices.



Iveco Group IVG.MI jumped 4%, after the Italian truck and bus maker reported higher first-quarter operating profit, with margin improving in all business segments.



Zalando ZALG.DE rose 3.8% after Berenberg upgraded the German online retailer to &#8220;Buy&#8221; from &#8220;Hold&#8221;, while Symrise SY1G.DE dropped 1.2% after Berenberg downgraded the German flavour and fragrance maker to &#8220;Hold&#8221; from &#8220;Buy&#8221;.



(Reporting by Ankika Biswas in Bengaluru; Editing by Rashmi Aich)

Traders work on the floor of the NYSE in New York

European shares open at record high on boost from energy stocks, miners

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FHIKFJVD35PPPPLPAX7WXD3VZU-820x542.jpg" alt="" class="wp-image-485030" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FHIKFJVD35PPPPLPAX7WXD3VZU-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FHIKFJVD35PPPPLPAX7WXD3VZU-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FHIKFJVD35PPPPLPAX7WXD3VZU-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FHIKFJVD35PPPPLPAX7WXD3VZU-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FHIKFJVD35PPPPLPAX7WXD3VZU-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FHIKFJVD35PPPPLPAX7WXD3VZU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A stacker unloads iron ore onto a pile at a mine located in the Pilbara region of Western Australia December 2, 2013. REUTERS/David Gray/File Photo</figcaption></figure>



SINGAPORE, May 10 (Reuters)&nbsp;&#8211;&nbsp;China&#8217;s iron ore imports are likely to climb to an all-time high this year, helped by shipments from India and Ukraine, as well as resilient demand in the world&#8217;s biggest consumer of the key steelmaking ingredient, analysts and market participants said.



Imports are expected to rise between 15 to 50 million metric tons from last year&#8217;s 1.18 billion tons, according to five analysts on the sidelines of an industry conference in Singapore this week, against earlier expectations of a decline.



China bought 411.82 million tons of iron ore in the first four months of 2024, up 7.2% from last year, even though crude steel output in the first quarter fell 1.9%.



Improved logistics in the Black Sea are driving up supplies from Ukraine after two years, while a rebound in iron ore prices from a near six-month low in late March&nbsp;DCIOcv1&nbsp;is encouraging Indian exporters to ship larger volumes to China, analysts said.



&#8220;Export will be definitely higher this year and so is the volume to China because of easing logistics problem in the Black Sea,&#8221; said a Ukraine-based iron ore miner at the conference, asking not to be named.



China buys the bulk of its iron ore from Australia and Brazil, with India and Ukraine being minor suppliers.



Brazilian mining company Vale VALE3.SA said it expects Chinese imports for 2024 at 1.170 to 1.180 billion tons.



Arrivals from India will rise to 45 million tons this year from 36.52 million tons in 2023, said an east China-based analyst.



China&#8217;s iron ore imports from Ukraine fell to 660,317 tons in 2023 from 17.43 million tons in 2021, customs data showed.



&#8220;Exports of iron ore from India have been rising since prices started recovering,&#8221; said a Mumbai-based bulk shipping broker.



While China&#8217;s steel industry is struggling with declining demand from the beleaguered property sector and awaits measures by Beijing to curb output, iron ore demand is likely to benefit from expected economic recovery in the second half of the year.



Last month, China&#8217;s state planner said it will continue to manage crude steel output in 2024, without giving details.



China&#8217;s economy grew faster than expected in the first quarter, offering relief to officials trying to shore up growth in the face of protracted weakness in the property sector and mounting local government debt.



Around 90% of steel in China is produced from the blast-furnace and basic-oxygen furnace-based process, which requires iron ore, although Beijing aims to increase the share of steel made from electric-arc-furnaces using steel scrap to 15% by 2025.



While Beijing has yet to unveil the exact timing and scale on its steel output curbs this year, analysts said authorities may not enact stringent control measures as its aims to boost economic growth.



&#8220;We believe steel production will be firm in China this year as the effectiveness of (steel output) controls is low because there is less motivation to enforce, and that means resilient ore demand,&#8221; said Tomas Gutierrez, head of data at consultancy Kallanish Commodities.



(Reporting by Amy Lv and Naveen Thukral; Editing by Varun H K)

FILE PHOTO: A stacker unloads iron ore onto a pile at a mine located in the Pilbara region of Western Australia

China’s 2024 iron ore imports seen at record on higher supplies, robust demand

<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>



LUSAKA, May 9 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Thursday it would continue discussions with Zambian authorities on policies&nbsp;that would unlock the next disbursal from a $1.3 billion, three year loan programme.



An IMF staff team was in Lusaka from April 24 to May 7 to discuss Zambia&#8217;s economic policies for its third review of the country&#8217;s 38-month Extended Credit-Facility programme, which was approved in September 2022.



The completion of the review would pave the way for the fourth disbursement under the programme, after the IMF&#8217;s board released $187 million in December, as the country moves closer to emerging from debt default while struggling with a punishing drought.



Vera Martin, the IMF&#8217;s mission chief for the southern African nation, said talks between the IMF staff and the authorities focused on analysing recent economic developments and the impact of the drought.



&#8220;Discussions will continue virtually in the coming weeks toward completion of the Third ECF review,&#8221; sheadded in a statement issued at the end of the mission that did not say why an agreement was not reached during the visit to Lusaka.



One of the largest copper producers on the African continent, Zambia defaulted in 2020 during the COVID-19 pandemic.



Its debt restructuring efforts have been beset by delays, although they took a step forward in March when the government and a group of bondholders reached a deal-in-principle to rework about $3 billion of international bonds.



(Reporting by Chris Mfula in Lusaka, additional reporting by Jahnavi Nidumolu and Disha Mishra, Writing by Bhargav Acharya and Rachel Savage Editing by Bate Felix and David Gregorio)

Spring Meetings Of The International Monetary Fund And World Bank

IMF to continue discussions with Zambian authorities after visit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GC7HNKWOIJJN5O747ZM3TPIJOA-820x429.jpg" alt="" class="wp-image-484761" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GC7HNKWOIJJN5O747ZM3TPIJOA-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GC7HNKWOIJJN5O747ZM3TPIJOA-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GC7HNKWOIJJN5O747ZM3TPIJOA-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GC7HNKWOIJJN5O747ZM3TPIJOA-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GC7HNKWOIJJN5O747ZM3TPIJOA-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GC7HNKWOIJJN5O747ZM3TPIJOA.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The skeleton of a fish is seen in the Navarro lagoon, which dried up due to the climate phenomenon La Nina, in Navarro, in Buenos Aires province, Argentina December 5, 2022. REUTERS/Agustin Marcarian/File Photo</figcaption></figure>



May 9 (Reuters)&nbsp;&#8211;&nbsp;The El Nino weather pattern should fade out by June but could be replaced by the La Nina phenomenon by the second half of the year, a U.S. government forecaster said on Thursday.



There is a 49% chance that the La Nina weather pattern may develop during the June to August period, rising to 69% in July-September, the National Weather Service&#8217;s Climate Prediction Center (CPC) said in its monthly forecast.



<h2 class="wp-block-heading" id="h-why-it-s-important">WHY IT&#8217;S IMPORTANT</h2>



The cycle between the weather patterns &#8212; which can spawn wildfires, tropical cyclones and prolonged droughts &#8212; is vital to farmers worldwide.



In Latin America, they have affected crops such as wheat, soy and corn, damaging regional economies often highly dependent on farming.



Hot, dry weather in Asia during El Nino last year prompted top rice supplier&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3ES0O6&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">India</a>&nbsp;to restrict exports following a poor monsoon, while wheat output in No.2 exporter Australia took a hit. But heavier rains in parts of the Americas boosted farm output prospects in Argentina and the southern U.S. Plains.



<h2 class="wp-block-heading" id="h-context">CONTEXT</h2>



The full weather pattern involving El Nino, La Nina and a neutral phase typically lasts between two to seven years.



Experts have warned that Latin American nations must be on high alert as a rapid switch to La Nina this time could leave populations and crops little time to recover.



Australia&#8217;s weather bureau said last month that the El Nino event has ended.



<h2 class="wp-block-heading" id="h-key-quotes">KEY QUOTES</h2>



&#8220;La Nina is likely to affect the production of wheat and corn in the US, and soybean, barley, wheat and corn in Latin America including Brazil, Argentina and Uruguay,&#8221; said Sabrin Chowdhury, head of commodities at BMI.



&#8220;The weather phenomenon is associated with long-lasting droughts throughout the Americas region, triggering poor crop quality and a drop in average yields, further exacerbating global supply issues.&#8221;



(Reporting by Anushree Mukherjee and Brijesh Patel in Bengaluru, Editing by Rosalba O&#8217;Brien)

GC7HNKWOIJJN5O747ZM3TPIJOA

El Nino to end by June, La Nina seen in second half of 2024, says U.S. forecaster

<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-1251784338-820x547.jpg" alt="" class="wp-image-484743" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-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>



ABUJA, May 9 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund on Thursday maintained its growth forecast of 3.3% for Nigeria&#8217;s economy for 2024, up from 2.9% last year, citing a pick up in services and trade sectors.



The IMF added that growth outlook was still challenging in Africa&#8217;s most populous nation and top oil producer, with food price inflation 40% in March, raising food security concern.



&#8220;If Nigeria grows at 3.3% that is just above the population dynamics, which is a big challenge,&#8221; IMF mission chief for Nigeria, Axel Schimmelpfenning, told journalists.



Since taking office about a year ago, President Bola Tinubu has embarked on sweeping reforms, including slashing costly petrol and electricity subsidies and devaluing the naira currency twice within a year to narrow the gap between the official and parallel market exchange rates.



The Fund forecast that fuel subsidies could cost up to 3% of GDP this year as the increases in pump prices have not kept up with their dollar cost, Schimmelpfennig said, adding that officials remain committed to phasing that out in another one or two years.



&#8220;The reforms are focused on how to raise that growth so that Nigerians can see real impacts on their living standards,&#8221; Schimmelpfenning said.



Global ratings agencies have reviewed Nigeria&#8217;s economic outlook upwards due to the impact of reforms, with Fitch the latest to revise Nigeria&#8217;s outlook to positive from stable on May 3.



&#8220;We think a lot has happened. We also have to recognise that the problems built up over many years were quiet severe. We can&#8217;t expect that everything is going to be resolved overnight,&#8221; he added.



Schimmelpfenning said scaling up a cash transfer programme and boosting government revenues so that the country has more resources to provide services to its citizens is a key priority.



On monetary policy, the IMF welcomed the Central Bank of Nigeria&#8217;s (CBN) recent interest rate hikes to curb galloping inflation, calling for a data-driven approach to further rate tightening.



The IMF urged the CBN to build up its foreign exchange reserves and recommended a transparent and balanced framework for forex interventions aimed solely at smoothing out excessive short-term volatility.



(Additional reporting by Elisha Bala-Gbogbo;Editing by Bate Felix, Tomasz Janowski and Franklin Paul)

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Reuters

Anglo CEO says BHP bid forced his hand on demerger of South African assets

South Africa’s unemployment rate climbs weeks before election

South Africa’s MTN service revenue falls, lowers capex target

Anglo American eyes break-up as it fends off BHP offer

Nigeria’s labour unions protest hike in electricity tariff

BHP says Anglo American rejected $42.7-billion revised proposal

South Africa’s Ramaphosa denies pause in power cuts is linked to election

Platinum, palladium, rhodium prices seen down in 2024 despite deficit, Metals Focus says

Key issues for South African voters in wide open 2024 election

South Africa’s Vodacom profit hit by Ethiopia loss

How South Africa’s anti-trust agencies could influence BHP’s Anglo deal

Zimbabwe to fine businesses not using new official exchange rate

European shares open at record high on boost from energy stocks, miners

China’s 2024 iron ore imports seen at record on higher supplies, robust demand

IMF to continue discussions with Zambian authorities after visit

El Nino to end by June, La Nina seen in second half of 2024, says U.S. forecaster

IMF maintains Nigeria growth forecast at 3.3% for 2024

News Tips

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