<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ICSZXDHRHZMVNCNJGLBWY6KOGA-820x547.jpg" alt="" class="wp-image-479979" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ICSZXDHRHZMVNCNJGLBWY6KOGA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ICSZXDHRHZMVNCNJGLBWY6KOGA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ICSZXDHRHZMVNCNJGLBWY6KOGA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ICSZXDHRHZMVNCNJGLBWY6KOGA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ICSZXDHRHZMVNCNJGLBWY6KOGA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ICSZXDHRHZMVNCNJGLBWY6KOGA.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A vendor sells cassava flour at a traditional market in Bariga district, in Lagos, Nigeria January 15, 2021. Picture taken January 15, 2021. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



JOHANNESBURG, April 25 (Reuters)&nbsp;&#8211;&nbsp;Inflation in key African economies will slow into next year but remain stubbornly high in Nigeria due to sporadic flooding and difficult terrain for the naira currency, a Reuters poll found.



The acute shortage of dollars in much of the continent including Angola, Nigeria and Zambia has often put home inflation under significant strain due to a reliance on single commodity currency inflows such as crude oil and copper.



Still, the poll of 15 analysts taken in the past week showed inflation would moderate more in countries with better diversified sources of dollar revenues such as Kenya.



Inflation in Nigeria is expected to quicken to 29.1% this year from an average of 24.5% last year, before it slows to 17.2% next year. It hit a 28-year high of 33.2% in annual terms last month.



Nigeria central bank governor Olayemi Cardoso raised the monetary policy rate by 200 basis points to 24.75% last month after a 400 basis point hike in February.



Even with a more coherent monetary policy now in place, and potential naira stability, Nigerian inflation will only fall slowly this year, Citi wrote in a note to clients.



The high inflation rate reflects ongoing elevated food price inflation which accounts for around 50% of the CPI basket and is only marginally impacted by monetary policy, Citi added.



High food price inflation is a result of flooding seen in many parts of the country in recent years, the rising cost of fertilizer and continuing insecurity in many food-producing regions.



Ghana inflation averaged 40.3% last year, but is expected to slow markedly to 18.7% this year and then to 12.1% in 2025.



Angolan inflation is forecast to slow to last year&#8217;s average of 13.6% next year from 23.7% this year, while in Zambia it was seen slowing to 8.0% in 2025 from 12.3% this year.



Inflation in Kenya will remain one of the most-tamed in the region apart from South Africa, slowing to an average of 5.6% next year compared with 6.3% this year, the poll found.



Standard Chartered said it lowered its inflation forecasts last week to allow for recent Kenyan shilling appreciation and improved food prices.



A separate poll earlier this month predicted inflation in South Africa would slow to 4.6% next year from 5.1% this year.



(Reporting by Vuyani Ndaba, Editing by William Maclean)

FILE PHOTO: A vendor sells cassava flour at a traditional market in Bariga district, in Lagos

Inflation in key African economies to slow into next year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



DAR ES SALAAM, April 24 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has suspended new disbursements from a $150 million fund to expand a national park in southern Tanzania, a spokesperson said on Wednesday, after the lender received allegations of killings and evictions by rangers last year.



Two anonymous complainants have accused rangers from the Ruaha National Park of extrajudicial killings, enforced disappearances, evictions, torture and cattle seizures perpetrated against local villagers, according to the World Bank&#8217;s independent complaints mechanism.



&#8220;The World Bank is deeply concerned about the allegations of abuse and injustice related to the&#8230; project in Tanzania,&#8221; a spokesperson said in a statement. &#8220;We have therefore decided to suspend further disbursement of funds with immediate effect.&#8221;



Government spokesman Mobhare Matinyi said the allegations were false but that the government was investigating &#8220;to see if there was any misconduct from any staff so that it takes appropriate action&#8221;.



He said the suspended final tranche of the loan amounted to $25 million.



Several Tanzanian government initiatives to expand tourism have faced criticism from human rights advocates, including in the north of the country where thousands of Maasai have been evicted from their traditional homelands.



A report last year by the Oakland Institute, a California-based think-tank, accused Ruaha park rangers of sexual violence, and said local communities&nbsp;across&nbsp;Tanzania were bearing the cost of generating tourism revenues under the guise of protecting the environment.



The government says expanding the tourism sector is key to economic development and that it has provided fair compensation to people evicted from their homes.



The World Bank project was approved by its board in 2017 and is expected to end in February 2025.



(Editing by Hereward Holland and Gareth Jones)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank suspends Tanzania tourism fund over abuse allegations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ABUJA, April 23 (Reuters) &#8211; Nigeria&#8217;s central bank sold $15.83 million to exchange bureaus at a more favourable naira rate than the official market, it said on Tuesday, the second such sale in April and the fourth this year as it moves to boost the supply of foreign currency.



The official market quoted the naira currency&nbsp;NGN=D1&nbsp;at 1,315 per dollar at 1326 GMT, LSEG data showed.



The central bank sold $10,000 each at 1,021 naira per dollar to 1,583 currency exchange operators to meet demand for eligible end-user foreign exchange needs, instructing them to resell at a mark-up not more than 1.5% above the purchase price.



This strategy injects liquidity into the market while attempting to control the naira exchange rate which fell to a record low in February, but is starting to strengthen.



The naira has surged sharply against the dollar, both on the official and parallel markets, after the central bank raised interest rates and lifted restrictions on foreign participation at its fixed-income auctions.



The bank has since started a rate tightening cycle and increased yields on short-term treasury bills to attract foreign investors.



Central bank Governor Olayemi Cardoso has said the bank does not intend to prop up the currency, adding that the roughly $2 billion fall in reserves in the last two months had nothing to do with defending the currency.



(Reporting by Elisha Bala-Gbogbo; Editing by Mark Potter)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

Nigeria’s central bank sells $15.83 million to exchange bureaus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-820x536.jpg" alt="" class="wp-image-479372" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows the logo of South Africa&#8217;s central reserve bank, at the reserve bank offices in Pretoria, South Africa, January 26, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, April 23 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank said on Tuesday that the path back to 4.5% inflation would probably be &#8220;bumpy and protracted&#8221; after setbacks in the disinflation trajectory in recent months.



The South African Reserve Bank (SARB) has held its main interest rate at 8.25%&nbsp;ZAREPO=ECI&nbsp;since May 2023, keeping policy restrictive to try to steer inflation towards the midpoint of its 3% to 6% target band.



In March headline inflation slowed to 5.3% in annual terms ZACPIY=ECI from 5.6% in February.



In a biannual review of its monetary policy stance, the bank said the slower pace of disinflation partly reflected normalising services components and elevated inflation expectations.



Administered prices continue to exert substantial upward pressure on headline inflation, it said in its April Monetary Policy Review.



The SARB, which is in discussions with the National Treasury about lowering its inflation target, also said in the document that it had modelled the impact of targeting 3.0% inflation over a five-year timeframe.



That modelling showed the economic growth rate decreased by about 0.3 percentage points relative to the baseline, but the decline was quickly reversed and surpassed as growth strengthened more than the initial weakening.



The central bank added markets now expect the repo rate to remain unchanged this year.



(Reporting by Kopano Gumbi; Editing by Alexander Winning)

South Africa trims rate hikes as power cuts slash growth prospects

South Africa c.bank: path to 4.5% inflation likely ‘bumpy and protracted’

<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>



LONDON, April 23 (Reuters)&nbsp;&#8211;&nbsp;Anglo American&nbsp;AAL.L&nbsp;on Tuesday reported an 11% increase in its copper output for the first quarter of the year, but slashed its 2024 production guidance for diamonds.



The London-listed miner said its copper production rose to 198,100 metric tons in the first three months, buoyed by a ramp-up in production at Quellaveco in Peru.



Still, the miner said it would maintain its 2024 output guidance for the metal at 730,000-790,000 tons.



Demand for copper, used in applications from solar panels to electric cars, is expected to increase as the world moves towards cleaner energy sources.



But global economic weakness has lowered the demand outlook for diamonds, traditionally seen as luxury items.



Anglo&#8217;s shares had slipped 0.7% by 0712 GMT.



Production of rough diamonds via De Beers fell 23% to 6.9 million carats.



Anglo, which in February announced a $1.6 billion impairment charge at its diamond operations, lowered its yearly guidance to 26 million to 29 million carats from a previous forecast of 29 million to 32 million carats on high levels of inventory.



&#8220;Although the diamond volumes cut and increase in cost guidance is a negative, we do not expect a material revision to consensus numbers,&#8221; said analysts at RBC Capital Markets.



&#8220;The volumes cut could likely assist diamond prices helping partially offset the higher costs,&#8221; they added.



Output of platinum metals and iron ore at Anglo&#8217;s South African units was broadly flat during the quarter. Shipments from Kumba Iron Ore were impacted by logistical challenges, the company said, as rail bottlenecks continue.



A consultation process to cut about 3,700 jobs at Anglo Platinum AMSJ.J as part of a restructuring after a slump in prices, are well advanced, Anglo said.



(Reporting by Clara Denina and Felix Njini; Editing by Kirsten Donovan)

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 boosts copper output, slashes diamonds forecast

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="544" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LYNXMPEG6217H-820x544.jpg" alt="" class="wp-image-479306" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LYNXMPEG6217H-820x544.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LYNXMPEG6217H-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LYNXMPEG6217H-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LYNXMPEG6217H-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LYNXMPEG6217H-1536x1018.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LYNXMPEG6217H-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Customers queue to draw money from an ATM outside a branch of South Africa&#8217;s Capitec Bank in Johannesburg,South Africa, March 2, 2017. REUTERS/Siphiwe Sibeko/Files</figcaption></figure>



JOHANNESBURG, April 23 (Reuters)&nbsp;&#8211;&nbsp;South African lender Capitec Bank&nbsp;CPIJ.J&nbsp;said on Tuesday its loan losses in retail banking will likely shrink to within its target range in 2025, as its full-year profit rose by 16%, sending its share up 7.43%.



Capitec Bank is one of the fastest-growing South African lenders, targeting low-income earners who were largely ignored by the country&#8217;s bigger, established banks.



But this exposure has meant higher impairments, with its customers under pressure from 10 successive interest rate hikes and higher food inflation.



The lender, South Africa&#8217;s biggest retail bank by customer numbers, has seen a slower migration of retail credit into underperforming loans from performing loans in the second half of its 2024 year ended Feb.29, CEO Gerrie Fourie told investors.



Client cash flow strain, however, has improved over the last six months, with customer insufficient fund transactions coming down, he added.



But estimated credit loss increased in the full-year period, and as a result, the credit loss ratio &#8211; a measure of bad loans as a percentage of total loans &#8211; in retail banking increased to 101 basis points (bps) from 80 bps in 2023.



&#8220;The credit loss ratio is expected to return to through-the-cycle target of 8.5% (or 85 bps) by February 2025,&#8221; Fourie said.



The company, with 22 million retail clients, said overall credit impairment charges rose by 38% to 8.7 billion rand ($453.21 million). At group level, its credit loss ratio rose to 87 bps from 70 bps.



Capitec said it continued to tighten its credit-granting criteria.



The group&#8217;s headline earnings per share &#8211; the main profit measure in South Africa &#8211; rose to 9,171 cents as its net transaction and commission income grew by 29% to 14.8 billion rand.



After terminating its funeral product co-operation arrangement with insurer Sanlam&nbsp;SLMJ.J, Capitec said it will start adding life cover as it continues building its insurance business.



($1 = 19.1966 rand)



(Reporting by Nqobile Dludla; Editing by Tom Hogue and Savio D&#8217;Souza and Miral Fahmy)

Customers queue to draw money from an ATM outside a branch of South Africa’s Capitec Bank in Johannesburg,South Africa

South African lender Capitec expects loan losses to be within target in 2025

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/IGCSI2ZMYJNARJNQD2J6NFMHZE-820x548.jpg" alt="" class="wp-image-479267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/IGCSI2ZMYJNARJNQD2J6NFMHZE-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/IGCSI2ZMYJNARJNQD2J6NFMHZE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/IGCSI2ZMYJNARJNQD2J6NFMHZE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/IGCSI2ZMYJNARJNQD2J6NFMHZE-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/IGCSI2ZMYJNARJNQD2J6NFMHZE-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/IGCSI2ZMYJNARJNQD2J6NFMHZE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria Finance Minister Wale Edun is interviewed by Karin Strohecker, Reuters Chief Correspondent Emerging Markets, during the G20 Finance Ministers and Central Bank Governors&#8217; Meeting at the IMF and World Bank’s 2024 annual Spring Meetings in Washington, U.S., April 18, 2024. REUTERS/Ken Cedeno/File Photo</figcaption></figure>



WASHINGTON, D.C., April 22 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is seeking up to $2.25 billion in World Bank loans and expects the bank&#8217;s board to approve the request in June, the government said in a statement following the IMF/World Bank spring meetings in Washington, D.C.



Nigeria also aims to issue diaspora bonds later this year to attract much-need foreign exchange into the country, Finance Minister Wale Edun said in the statement.



The World Bank loans would comprise $1.5 billion in development policy financing and $750 million in programme-for-results financing, the statement said, adding the bank would meet in June to consider final approval of the package.



The World Bank did not immediately comment on the statement.



Nigeria, typically Africa&#8217;s largest oil exporter, has faced a shortage of foreign exchange that pushed its naira currency to record lows versus the U.S. dollar this year, though it has since rebounded.



President Bola Tinubu also inherited an economy saddled with record debt, high unemployment and large central bank financing, though Edun, in an interview with Reuters last week, said the government had halved federal borrowing from the central bank.



(Reporting by Maxwell Akalaare Adombila; Writing and additional reporting by Libby George in London; Editing by Gareth Jones and Mark Potter)

FILE PHOTO: Nigeria Finance Minister Wale Edun is interviewed at the IMF and World Bank’s 2024 annual Spring Meetings in Washington

Nigeria seeking up to $2.25 bln in World Bank loans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147860031-820x547.jpg" alt="" class="wp-image-478968" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147860031-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147860031-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147860031-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147860031-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147860031-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147860031-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">WASHINGTON DC, USA &#8211; APRIL 16: Financial Counsellor and Director of the Monetary and Capital Markets Department Tobias Adrian hold the press briefing of the Global Financial Stability Report at the International Monetary Fund during the 2024 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group in Washington DC, United States on April 16, 2024. (Photo by Celal Gunes/Anadolu via Getty Images)</figcaption></figure>



WASHINGTON, April 20 (Reuters)&nbsp;&#8211;&nbsp;The steering committee for both International Monetary Fund and the World Bank on Saturday emphasized the need for broader accountability as the institutions implemented reforms to help countries grapple with climate change and other shocks.



&#8220;We must hold ourselves accountable more broadly as we become a better and bigger bank,&#8221; said Mohammed bin Hadi Al Husseini, the United Arab Emirates&#8217; minister of state for finance, who heads the joint Development Committee this year.



Al Husseini issued a chair&#8217;s statement, rather than a communique, amid disagreements over wars in the Middle East and Ukraine, but referenced economic risks posed by the conflicts. The statement came as this week&#8217;s meetings of the IMF and World Bank drew to a close.



Governors of the institutions urged the World Bank to continue to bolster global and regional partnerships, and asked its management to push ahead with country engagement reforms and enhanced country diagnostics.



They also encouraged further collaboration between the World Bank and IMF to help countries mobilize more revenues at home, and on issues such as climate change and pandemic preparedness, as well as debt sustainability.



(Reporting by Andrea Shalal; editing by Diane Craft)

2024 Spring Meetings of the World Bank and International Monetary Fund

IMF, World Bank steering committee stresses accountability as reforms advance

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-820x547.jpg" alt="" class="wp-image-478146" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Street vendors wait for customers at an open market, ahead of Nigeria&#8217;s Presidential election in Awka, Anambra state, Nigeria February 23, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



JOHANNESBURG/WASHINGTON, April 19 (Reuters)&nbsp;&#8211;&nbsp;Incomes in Sub-Saharan Africa are falling further behind the rest of the world amid a &#8220;tepid&#8221; economic recovery, the International Monetary Fund (IMF) said on Friday, warning of risks from geopolitics, domestic instability and climate change.



The IMF earlier this week said the region&#8217;s economy would grow 3.8% this year, up from 3.4% in 2023, as it begins to emerge from four years of shocks, from the COVID-19 pandemic to Russia&#8217;s invasion of Ukraine and rising global interest rates.



&#8220;When accounting for population growth, the income gap with the rest of the world is widening,&#8221; the fund said in its biannual Regional Economic Outlook report, launched during its Spring Meetings this week in Washington.



It noted that other developing countries saw real income per person more than triple since 2000, while they grew 75% in Sub-Saharan Africa and 35% in developed countries.



However, there were some positive developments.



&#8220;Two-thirds of the countries are already experiencing acceleration in growth; diversified and fairly broad-based growth,&#8221; said Abebe Selassie, director of the IMF&#8217;s African Department, said in an interview with Reuters in Washington.



Many of the more diversified economies had already enjoyed some growth recovery since the pandemic, he added.



<h2 class="wp-block-heading" id="h-inflation-falling">INFLATION FALLING</h2>



Economic conditions have started to ease for many countries this year, with Ivory Coast, Benin and Kenya issuing international bonds and median inflation falling to 6% in February from almost 10% a year earlier, the IMF said.



But political instability is rising and denting investor confidence, it said, pointing to junta-led states Burkina Faso, Mali and Niger leaving the Economic Community of West African States (ECOWAS) and 18 elections across the region this year.



Devastating droughts last year in the Horn of Africa and currently in southern Africa, as well as cyclones and floods, have also increased the region&#8217;s struggles.



South Africa is set to grow just 0.9% this year, a slight increase from 0.6% in 2023, amid ongoing rolling power cuts and problems with the country&#8217;s railways and ports, the IMF said, adding that &#8220;electoral uncertainties&#8221; could derail ongoing energy sector reforms.



Africa&#8217;s most industrialised economy holds an election on May 29, in which the ruling African National Congress (ANC) party could lose its majority for the first time since the end of apartheid in 1994.



West Africa&#8217;s largest economy, Nigeria, is set to grow 3.3% this year, as it struggles with high inflation amid painful currency and subsidy reforms.



In its northern neighbour Niger, meanwhile, growth is predicted to rocket from 1.4% last year to 10.4%, as oil exports ramp up.



(Reporting by Rachel Savage and Karin Strohecker, Additional reporting by Maxwell Akalaare Adombila, Editing by Alex Richardson)

FILE PHOTO: Street vendors wait for customers at an open market, ahead of Nigeria’s Presidential election in Awka

Sub-Saharan Africa incomes falling further behind rest of world, says IMF

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="444" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA.jpg" alt="" class="wp-image-422268" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA-148x90.jpg 148w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, April 19 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand weakened in volatile trading early on Friday, as reports of an Israeli attack on Iran sapped risk sentiment and sent currency markets into a tailspin.



In the latest tit-for-tat exchange between the two arch-foes, Israel launched an attack on Iranian soil, sources told Reuters. Iranian state media reported that drones had been shot down.



The rand&nbsp;ZAR=D3&nbsp;initially hit a near two-month low of 19.3800 to the dollar in a sell-off of risk assets as investors scurried towards safe-haven dollar and gold.



However, some calm returned to the markets after a senior Iranian official said Iran had no plan to strike back immediately.



&#8220;Diminished concern over a broader regional conflict, as Iran reported minimal damage to its infrastructure and confirmed no impact on its nuclear sites, contributed to the markets&#8217; partial recovery,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



At 0802 GMT, the rand traded at 19.2300 against the dollar, down 0.38% from its previous close.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index and the broader all-share&nbsp;.JALSH&nbsp;index were both trading in the red, about 0.7% weaker in early trade.



The dollar&nbsp;=USD&nbsp;was last down 0.1% against a basket of currencies but still hovered near a five-month high.



Capital Economics chief economist Neil Shearing said Iran lifting flight restrictions may also have helped the markets.



&#8220;This might indicate that the attack was at the more moderate end of the spectrum,&#8221; he said in a research note.



(Reporting by Bhargav Acharya; Editing by Alex Richardson)

South African Rand coins are seen in this illustration picture

Risk sensitive South African rand weakens as geopolitical tensions bite

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-820x547.jpg" alt="" class="wp-image-477848" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) and World Bank spring meetings signage outside the IMF headquarters in Washington, DC, US, on Wednesday, April 17, 2024. The International Monetary Fund inched up its expectations for global economic growth this year, citing strength in the US and some emerging markets, while warning the outlook remains cautious amid persistent inflation and geopolitical risks. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



LONDON, April 18 (Reuters)&nbsp;&#8211;&nbsp;Development agencies gathering in Washington this week face one of their toughest battles in years: getting a rich world worried about wars abroad and elections at home to commit more cash to the world&#8217;s poorest countries.



The poor world&#8217;s development is backsliding at an historic rate amid debt crises, higher-for-longer global interest rates and mounting investment needs. At the same time, it needs trillions more per year to meet climate spending goals alone.



At the last round of IMF and World Bank meetings in October, global leaders expected rich-world inflation to ease more quickly than it has, and thus for interest rate cuts to take pressure off financing costs.



Since then, an expanding conflict in the Middle East and the ongoing war in Ukraine have thrown up additional funding pressures, curbing the rich world&#8217;s already waning appetite to spend on development aid.



&#8220;Budgetary constraint in a number of countries is increasing,&#8221; Odile Renaud-Basso, president of the European Bank for Reconstruction and Development told Reuters in London ahead of the meetings. &#8220;There is more expenditure for defense and there is tension about support for development aid.&#8221;



&#8220;The global situation is becoming increasingly challenging,&#8221; she added.



Renaud-Basso said lenders trying to raise funds, such as World Bank&#8217;s International Development Association (IDA), would provide a bellwether for the rich world&#8217;s appetite to donate.



The World Bank&#8217;s lending arm to poor countries is targeting record commitments above its last replenishment of $93 billion, which it used early due to the COVID-19 pandemic and the fallout from Russia&#8217;s invasion of Ukraine. It has begun issuing bonds to leverage its lending.



&#8220;We&#8217;ve been able to do more with the same level of donor contributions,&#8221; IDA director Dirk Reinermann told Reuters. &#8220;The problem is that this party is slowly coming to an end&#8230;the zero point where we are fully leveraged, it&#8217;s coming closer and closer.&#8221;



In its last replenishment, 52 high- and middle-income countries contributed, led by the United States, Japan, Germany, the United Kingdom and France.



But many of those are grappling with donor fatigue. France and the UK have made large cuts to overseas aid in recent years, while in the United States political battles ahead of the presidential election have stalled other foreign spending commitments, including to Israel and Ukraine.



According to a recent United Nations report, official development assistance globally hit a record in 2022, but the share of it going to developing countries fell by 2%.



&#8220;I don&#8217;t think the world has ever been in such a state,&#8221; said Vera Songwe, chair of the Liquidity and Sustainability Facility, a group that aims to lower debt costs for Africa.



Songwe herself worked on IDA&#8217;s replenishment round during her time at the World Bank, and described a whirlwind global tour to press finance ministers, parliamentarians and other officials for funding.



It is never an easy sell, she said. But this year is different.



&#8220;Even in 2008, China was still growing then. This is much more difficult.&#8221;



It amounts to a perfect storm for poor countries. In the decade after the global financial crisis, with record-low interest rates, money flowed freely and the external public debt stock in low and middle income rose to $9 trillion, from $5.6 trillion in 2012.



China during that time also opened its financial taps, lending billions via its Belt and Road Initiative. But amid simmering debt problems at home, it has since pulled back.



This has significantly narrowed the availability of affordable finance for developing countries.



&#8220;There are very few such pots of money with such low concessional rates the world over, especially pots of money that come from a multilateral lender that has certain checks and balances,&#8221; said Giulia Pellegrini, a senior portfolio manager for emerging market debt at Allianz Global Investors.



Getting money from IDA, or another multilateral lender such as EBRD, can spur private lenders and eurobond investors to open their wallets, she added.



&#8220;Seeing a strong vote of confidence from some of these multilateral bodies, giving them concessional finance is a way to say these countries are embarking on a positive reform,&#8221;&nbsp;she said.



Reinermann said IDA&#8217;s backing from the World Bank itself and other institutions is strong. But that would not, he said, make securing commitments easy.



&#8220;Fiscal situations are not flush anywhere,&#8221; he said. &#8220;Right now it looks like a real mountain to climb.&#8221;



(Reporting by Libby George and Karin Strohecker; editing by Christina Fincher)

Spring Meetings Of The International Monetary Fund And World Bank

Battle for development cash heats up at IMF/World Bank meetings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-820x573.jpg" alt="" class="wp-image-458452" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana speaks during his medium-term budget policy statement in Cape Town, South Africa, November 1, 2023. REUTERS/Esa Alexander</figcaption></figure>



WASHINGTON, April 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa will use future&nbsp;drawdowns&nbsp;of its Gold and Foreign Exchange Contingency Reserve Account to curb its debt burden, Finance Minister Enoch Godongwana said, adding he was pondering tax hikes and expenditure cuts in the next post-election budget.



Africa&#8217;s most industrialised nation is grappling with an ailing economy and high debt ahead of a general election on May 29 that could see the governing African National Congress party lose its parliamentary majority for the first time since the end of apartheid 30 years ago.



Earlier this year, the government announced a change to the framework governing the so-called GFECRA account that captures gains and losses to foreign currency reserve transactions, allowing for a drawdown of 150 billion rand ($8 billion) over the next three years.



&#8220;Eskom is out, or Transnet,&#8221; Godongwana told Reuters on the sidelines of the International Monetary Fund and World Bank meeting, ruling out financial support from the account for the country&#8217;s ailing state-energy firms.



&#8220;Debt service costs now have emerged the highest expenditure item &#8211; therefore that is a red flag.&#8221;



Other measures were also on the horizon a bit further out.



The country&#8217;s next 2025/2026 budget &#8211; scheduled for February next year &#8211; could also see more pronounced adjustments than the last one, the minister said.



&#8220;If you want to do a fiscal consolidation you must do it far away from the election, and the timing for us is the budget that we will table on the 19th February 2025,&#8221; said Godongwana, when asked about the absence of significant expenditure reductions in the recent budget.



The next budget, nearly a year down the line, must send a signal and timeline by which fiscal consolidation would be concluded, the minister added.



&#8220;Now that is going to require maybe well that we cut expenditure and maybe well that we tweak some taxes &#8211; it could be a combination of both,&#8221; he said.



Another push the government would focus on in the months to come was consolidating the plethora of social spending measures and grants, said Godongwana.



Prospects for economic growth, currently forecast at 1.6% for 2024, could face headwinds if loadshedding were to intensify or Middle East tension to escalate.



&#8220;I factor in that there is a possibility of downside risks.&#8221;



However, the recent droughts that have wreaked havoc across much of Sub-Saharan Africa, including South Africa itself, would have no impact on food inflation, at least for now, he said.



($1 = 18.9824 rand)



(Reporting by Karin Strohecker; Editing by Toby Chopra)

South Africa issues medium-term budget policy statement

S.Africa contingency reserves won’t be spent on Eskom, Transnet, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-820x573.jpg" alt="" class="wp-image-460717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A MultiChoice logo is displayed outside the company&#8217;s building in Cape Town, South Africa February 2, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, April 18 (Reuters)&nbsp;&#8211;&nbsp;French media group Vivendi&#8217;s&nbsp;VIV.PA&nbsp;Canal+ said on Thursday that it has bought 3.7 million shares in South African broadcaster MultiChoice&nbsp;MCGJ.J&nbsp;to increase its stake to 40.83%.



Last Monday, Canal+ made an all-cash mandatory offer to buy all the shares of MultiChoice it does not already own for 35 billion rand.



Canal+ had said that it reserves the right to buy more MultiChoice shares in the market during the course of the offer. Should the French company buy these shares at more than 125 rand each, it is obliged to increase the offer price &#8220;to not less than the highest consideration paid per MultiChoice share&#8221;.



It has increased its stake from 36.6% as of April 8, buying shares from April 12 to April 17 at 117.50 rand, 115.99 rand, 115.95 rand and 116 rand per share, it said in a statement on Thursday.



The offer at 125 rand per share is with the board of MultiChoice awaiting approval.



(Reporting by Nqobile Dludla; editing by Jason Neely)

FILE PHOTO: MultiChoice logo is displayed outside the company in Cape Town

Vivendi’s Canal+ increases stake in South Africa’s MultiChoice to 40.83%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU.jpg" alt="" class="wp-image-477732" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Bernadette Handing carries Pearl Millet Ear Head as she plods through the submerged sorghum field after heavy rain in Kournari village, on the outskirts of Ndjamena, Chad October 26, 2022. REUTERS/Mahamat Ramadan</figcaption></figure>



NIAMEY, April 18 (Reuters)&nbsp;&#8211;&nbsp;On a hospital bed in Niger, a 96-year-old woman lay motionless attached to a drip &#8211; one of thousands of possible victims of West Africa&#8217;s worst heatwave in living memory, which a report said on Thursday was linked to fossil fuel-driven climate change.



In late March and early April, days and nights of extreme heat above 40° Celsius (104°F) gripped many West African countries. Temperatures soared so high in Mali and Burkina Faso they equated to a once in 200-year event, according to the report on the Sahel region by World Weather Attribution (WWA).



The severity of the heatwave led WWA&#8217;s team of climate scientists to conduct a rapid analysis, which concluded the temperatures would not have been reached if industry had not warmed the planet by burning fossil fuels and other activities.



&#8220;In a pre-industrial climate, we wouldn&#8217;t expect to see heat waves at this intensity at all,&#8221; WWA statistician Clair Barnes told Reuters.



&#8220;It was the hottest that anyone in living memory has had to deal with (there),&#8221; she said.



Despite a lack of data, WWA estimates there were hundreds or possibly thousands of heat-related deaths, and it warned such extreme heat will become much more common without greater global efforts to reduce planet-warming emissions.



On the current trajectory, if fossil fuel emissions do not fall &#8220;we would expect to see heatwaves like this maybe ten times more frequently, so potentially up to ten times a year,&#8221; Barnes said.



&#8220;It&#8217;s something that people are going to have to adapt to and learn to live with.&#8221;



Given the growing threat, the group recommends that countries formulate heat action plans that would warn citizens when extreme temperatures are imminent and offer guidance on how to prevent overheating.



<h2 class="wp-block-heading" id="h-elderly-at-risk">ELDERLY AT RISK</h2>



The plight of the nonagenarian in Niger illustrates the threat such extreme temperatures pose, particularly to older people in countries where access to air conditioning or even electric fans can be limited.



Standing at the hospital bedside on Monday, daughter Zeynabou Toure described how her mother quickly sickened in the heat at the start of April, prompting them to rush to hospital.



They were among an unusually high number of patients seeking care at the facility in Niger&#8217;s sun-baked capital Niamey, said doctor Andia Abdoul-Kader.



&#8220;We have seen more and more cases of dehydration,&#8221; he told Reuters in his office. &#8220;It really affects the elderly &#8230; four to five litres of water need to be replenished for the patient to return to normal.&#8221;



While Abdoul-Kader has not recorded excess deaths, Gabriel Toure Hospital in the capital of neighbouring Mali reported 102 deaths, likely heat-related, in the first four days of April. This compares to 130 deaths it recorded in total for the whole of April last year.



&#8220;This indicates an exceptional situation this year,&#8221; said one of the hospital&#8217;s department heads, doctor Djibo Mahamane Django, in an online video post on April 5.



(Additional reporting by Cooper Inveen in Dakar and Tiemoko Diallo in BamakoAdditional reporting and writing by Alessandra Prentice; Editing by Aurora Ellis)

Catastrophic floods in West Africa threaten food security for years to come in Kournari

Deadly heat in West Africa warns of climate change-driven scorchers to come, says report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-820x547.jpg" alt="" class="wp-image-424241" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo in Washington, United States, September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



LONDON, April 17 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund&#8217;s Board has backed a key change to give it more freedom to support crisis-hit countries even if debt renegotiations with big creditor governments like China are still ongoing.



The proposal is to reform what the IMF calls its Lending Into Official Arrears (LIOA) policy, a framework that determines if and when it can lend to a country that owes money to another IMF-member nation.



In a statement late on Tuesday the Fund said its Executive Board had endorsed &#8220;reforms to promote the IMF&#8217;s capacity to support countries undertaking debt restructurings&#8221;.



A key change will be that it will be able to lend to a country where no debt agreement with one or more of its bilateral creditors has been reached if the Fund has been provided with &#8220;additional safeguards&#8221;.



Debt crisis veterans have been long been urging a change to the IMF&#8217;s approach having seen delays in agreements with the likes of China widely blamed for dragging out Zambia, Ethiopia and Sri Lanka&#8217;s defaults for years.



&#8220;Directors supported the addition of a fourth strand under which the Fund shall seek additional safeguards where an adequately representative agreement has not been reached through a representative standing forum,&#8221; the IMF said.



(Reporting by Marc Jones; editing by Philippa Fletcher)

IMF Board backs key change to lending-into-official-arrears policy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="571" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-820x571.jpg" alt="" class="wp-image-477407" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-820x571.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-1536x1070.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman uses a trolley as she shops at a Pick n Pay store at the Dobson Point Shopping Centre, in Soweto, South Africa, March 19, 2024. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, April 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s headline consumer inflation fell to 5.3% year on year in March from 5.6% in February&nbsp;ZACPIY=ECI, statistics agency data showed on Wednesday.



Analysts polled by Reuters had forecast that inflation would slow to 5.4% in annual terms.



The South African Reserve Bank (SARB) kept its main interest rate unchanged at 8.25%&nbsp;ZAREPO=ECI&nbsp;last month, saying its policy stance needed to remain restrictive to tackle higher inflation expectations.



It expects headline inflation to reach the midpoint of its target range of 4.5% only near the end of 2025.



SARB Governor Lesetja Kganyago told Reuters earlier in April that South African policymakers were in discussions to lower the bank&#8217;s current inflation target range of between 3% and 6% to bring it more in line with peers.



On a month-on-month basis, inflation was at 0.8% in March compared to 1.0% a month before, Statistics South Africa said.



This is a developing story&#8230;



(Reporting by Bhargav Acharya; Editing by Alexander Winning)

A woman uses a trolley as she shops at a Pick n Pay store, in Soweto

South Africa inflation slows slightly more than expected in March

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-820x525.jpg" alt="" class="wp-image-477046" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-820x525.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-1536x983.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The company logo for Johnson &amp; Johnson is displayed to celebrate the 75th anniversary of the company&#8217;s listing at the New York Stock Exchange (NYSE) in New York, U.S., September 17, 2019. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



Corrects to the Zimbabwean regulator saying it &#8220;did not have a record of&#8221; the syrup being imported into the country instead of that it &#8220;did have a record of&#8221; in penultimate paragraph



KIGALI, April 15 (Reuters)&nbsp;&#8211;&nbsp;Drug regulators in Tanzania, Rwanda and Zimbabwe have recalled a batch of Johnson &amp; Johnson&nbsp;JNJ.N&nbsp;children&#8217;s cough syrup as a precautionary measure after their Nigerian counterpart said laboratory tests found high levels of toxicity.



The countries join Nigeria, Kenya and South Africa in recalling the same batch of the syrup, which is used to treat coughs, hay fever and other allergic reactions in children. South Africa has also recalled an additional batch.



Laboratory tests on the syrup by Nigeria&#8217;s health regulator showed a high level of diethylene glycol, which has been linked to the deaths of dozens of children in Gambia, Uzbekistan and Cameroon since 2022 in one of the world&#8217;s worst waves of poisoning from oral medication.



Diethylene glycol is toxic to humans when consumed and can result in acute kidney failure.



The batch of Benylin Paediatric syrup recalled was made by J&amp;J in South Africa in May 2021, although Kenvue&nbsp;KVUE.N&nbsp;now owns the brand after a spin-off from J&amp;J last year.



Tanzania Medicines and Medical Devices Authority (TMDA) said it had begun the recall on April 12 after hearing about the Nigerian test results.



&#8220;This is an exercise that does not involve investigation but rather monitoring to ensure that those affected drugs are removed from the market,&#8221; TMDA spokesperson Gaudensia Simwanza told Reuters on Monday.



A spokesperson for Kenya&#8217;s drug regulator said its test results on the syrup would likely be ready on Wednesday.



&#8220;A review of our safety database doesn&#8217;t reveal any adverse events reported,&#8221; the Rwanda Food and Drugs Authority said in a statement dated April 12. &#8220;However, Rwanda FDA issues the present recall for precautionary measures.&#8221;



Zimbabwe&#8217;s Medicines Control Agency said that it did&nbsp;not&nbsp;have a record of the product&#8217;s importation into Zimbabwe, but that it was concerned the syrup could enter the local market illegally. It said it would step up inspections in case.



Kenvue said in a statement that it was conducting its own assessment and working with health authorities to determine a course of action.



(Reporting by Philbert Girinema, Nuzulack Dausen and Nyasha Chingono; Additional reporting by Aaron Ross; Writing by Bhargav Acharya; Editing by Hereward Holland, Susan Fenton and Alexander Smith and Aurora Ellis)

Reuters

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IMF Board backs key change to lending-into-official-arrears policy

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Reuters

Inflation in key African economies to slow into next year

World Bank suspends Tanzania tourism fund over abuse allegations

Nigeria’s central bank sells $15.83 million to exchange bureaus

South Africa c.bank: path to 4.5% inflation likely ‘bumpy and protracted’

Anglo American boosts copper output, slashes diamonds forecast

South African lender Capitec expects loan losses to be within target in 2025

Nigeria seeking up to $2.25 bln in World Bank loans

IMF, World Bank steering committee stresses accountability as reforms advance

Sub-Saharan Africa incomes falling further behind rest of world, says IMF

Risk sensitive South African rand weakens as geopolitical tensions bite

Battle for development cash heats up at IMF/World Bank meetings

S.Africa contingency reserves won’t be spent on Eskom, Transnet, finance minister says

Vivendi’s Canal+ increases stake in South Africa’s MultiChoice to 40.83%

Deadly heat in West Africa warns of climate change-driven scorchers to come, says report

IMF Board backs key change to lending-into-official-arrears policy

South Africa inflation slows slightly more than expected in March

Tanzania, Rwanda, Zimbabwe join African recall of J&J cough syrup

News Tips

Advertise With Us

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