<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



April 5 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks dipped on Friday, tracking overnight weakness on Wall Street, as hawkish commentary from Federal Reserve officials dampened risk sentiment and tensions in the Middle East kept investors on edge.



The MSCI&#8217;s index for emerging market stocks&nbsp;.MSCIEF&nbsp;fell 0.3% but was still on track for marginal weekly gains.



Emerging market debt saw its first weekly inflow for eight weeks and EM stocks saw inflows of $3.8 billion in the week ended on Wednesday, according to a note by BofA Global Research.



The currencies index&nbsp;.MIEM00000CUS&nbsp;was flat by 0900 GMT.



&#8220;The risk-reward profile of global risk assets is not attractive,&#8221; Arthur Budaghyan, chief emerging market and China strategist for BCA Research, said in a note.



&#8220;Higher U.S. bond yields and rising oil prices might spoil the party.&#8221;



Minneapolis Fed Bank President Neel Kashkari said that at the U.S. central bank&#8217;s meeting last month he pencilled in two interest rate cuts this year &#8211; but if inflation continues to stall, none may be required by year-end.



Traders were also hesitant to take on new positions ahead of Friday&#8217;s closely-watched U.S. nonfarm payrolls report, while rising geopolitical tensions added to worries.



Prime Minister Benjamin Netanyahu&#8217;s comments that Israel would harm &#8220;whoever harms us or plans to harm us&#8221; stoked fears of a wider war, after its presumed air strike on Iran&#8217;s embassy in Damascus earlier this week.



The Israeli shekel&nbsp;ILS=&nbsp;jumped 0.7% against the dollar, while stocks in Tel Aviv&nbsp;.TA125&nbsp;shed 1.6%.



Meanwhile, the Hungarian forint&nbsp;EURHUF=&nbsp;led gains against the euro among Central and Eastern European peers, up 0.4% after a raft of economic data.



Hungary&#8217;s industrial output rose by an annual 1.8% in February, based on preliminary unadjusted data, compared with a 3.6% fall in January, while another survey showed calendar-adjusted retail sales rose by an annual 1.1% in February following a 0.6% rise in January.



The forint and Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;were on track for their second straight week of gains.



Hong Kong&#8217;s Hang Seng index&nbsp;.HSI&nbsp;closed nearly flat, while stocks in mainland China were closed and will resume trade on April 8.



In India, stocks were range-bound after the central bank kept its key interest rate unchanged for a seventh straight policy meeting as growth is expected to remain robust while inflation stays above the 4% target.



(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Kevin Liffey)

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

Stocks slip on Fed rate caution and geopolitical woes, currencies flat

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



ADDIS ABABA, April 5 (Reuters)&nbsp;&#8211;&nbsp;The World Bank and Ethiopia have signed loan agreements totalling $1.72 billion to enhance electricity and water supply, as well as to facilitate the movement of food to markets, the finance ministry said on Friday.



The bank will allocate $523 million to expand the Horn of Africa nation&#8217;s electricity network and boost renewable energy generation, according to the ministry&#8217;s statement.



An additional $500 million will go towards two projects aimed at boosting access to food markets, including improving road networks in rural areas, the statement said.



Ethiopia, which has also experienced foreign-currency shortages, continues to feel the effects of the COVID-19 pandemic, a two-year war in the northern Tigray region, and droughts, floods, and locust invasions in parts of the country



The remaining World Bank funding will be allocated to improving water supply and supporting programs in towns that employ disadvantaged youths.



Typically, World Bank loans carry low to zero interest rates and have repayment periods of 30 to 40 years.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa; Editing by Bate Felix)

IMF And World Bank Headquarters During Virtual Spring Meetings

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="567" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-820x567.jpg" alt="" class="wp-image-473622" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-820x567.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-768x531.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-1536x1062.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo of Swiss Adecco Group is seen at its headquarters in Zurich, Switzerland October 30, 2018. REUTERS/Arnd Wiegmann</figcaption></figure>



ZURICH, April 5 (Reuters)&nbsp;&#8211;&nbsp;Artificial intelligence will lead to many companies employing fewer people in the next five years, staffing provider Adecco Group&nbsp;ADEN.S&nbsp;said on Friday, in a new survey highlighting the upheaval AI will bring to the workplace.



Some 41% of senior executives expect to have smaller workforces because of AI technology, Adecco said in a report based on a survey of executives at 2,000 large companies worldwide.



Generative AI, which can create text, photos and videos in response to open-ended prompts, has spurred both hope it could eliminate repetitive tasks and fear it will make some jobs obsolete.



Tech companies, including global giants Google&nbsp;GOOGL.O&nbsp;and Microsoft&nbsp;MSFT.O, have embarked on a wave of layoffs in recent months as they shift their focus to systems like OpenAI&#8217;s ChatGPT and Google&#8217;s chatbot Gemini.



The Adecco survey is one of the largest into the AI topic, and follows a 2023 World Economic Forum study which said 25% of companies expected AI to trigger job losses, while 50% expected the technology to create new roles.



But while most senior executives surveyed by Adecco say AI is a game changer, the vast majority&nbsp;say they&nbsp;have not made enough progress in adopting the technology.



&#8220;Almost all jobs are going to be impacted by AI one way or another,&#8221; Adecco CEO Denis Machuel told Reuters. &#8220;AI can be a job killer and it can also be a job creator.



&#8220;Ten years ago there was this big fear many jobs are going to be destroyed by digital, when actually lots of jobs have been created by the digital world,&#8221; he said. &#8220;Between jobs created by AI and jobs destroyed, we believe this is going to be balanced.&#8221;



Companies needed to prepare for the disruption by training their staff to work with AI, Machuel said, rather than relying on recruiting specialists from outside.



Adecco polled businesses in the United States, Britain, France, Germany, Japan, Spain, Canada, Australia and Singapore. Sectors covered included defence, pharma, healthcare, industry and logistics.



The Swiss company, which uses AI itself, for example in helping create resumes for clients, also sees the technology offering &#8220;massive opportunity&#8221; in its work with customers.



&#8220;We already engaged in training and up-skilling people on behalf of our clients,&#8221; Machuel said. &#8220;We&#8217;ve sold a lot of consulting projects and the ramp-up that we see on that is quite interesting.&#8221;



(Reporting by John Revill; Editing by Tomasz Janowski)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY

AI seen cutting worker numbers, survey by staffing company Adecco shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-820x549.jpg" alt="" class="wp-image-473605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-1536x1029.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo</figcaption></figure>



April 4 (Reuters)&nbsp;&#8211;&nbsp;A South African antitrust agency is set to investigate Microsoft&nbsp;MSFT.O&nbsp;over its cloud computing licensing practices, a source with direct knowledge of the matter told Reuters on Thursday.



The South African case against Microsoft is likely to mirror the European Union antitrust case, according to the source.



Microsoft is not aware of any complaint filed by the South African competition authority, the company said in an emailed statement.



South Africa&#8217;s competition agency did not immediately respond to a Reuters request for comment.



The U.S. software giant faces a EU complaint by rivals over its cloud computing licensing practices in the region.



Industry group CISPE, which includes members such as Amazon.com&nbsp;AMZN.O&nbsp;and 26 small EU cloud providers, filed a complaint in late 2022 alleging Microsoft&#8217;s new contractual terms were harming Europe&#8217;s cloud computing ecosystem.



Microsoft amended its licensing terms in mid-2022 after rivals in Germany, Italy, Denmark and France took their grievances to the EU competition watchdog.



(Reporting by Foo Yun Chee and Nilutpal Timsina; Additional reporting by Yuvraj Malik, Priyanka.G Editing by Anil D&#8217;Silva)

FILE PHOTO: A Microsoft logo is seen in Issy-les-Moulineaux near Paris

South Africa to investigate Microsoft over cloud computing licensing practices, source says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-820x553.jpg" alt="" class="wp-image-473324" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-1536x1036.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A worker collects trolleys at South African retailer Woolworths, in Johannesburg, South Africa, November 21, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, April 4 (Reuters)&nbsp;&#8211;&nbsp;Consumer spending growth in South Africa steadied in 2023 after the previous year&#8217;s post-pandemic surge, but expected interest rate cuts will encourage more purchases in 2024, executives from Visa&nbsp;V.N&nbsp;and Discovery Bank said on Thursday.



Recent retail results show that consumers are under financial pressure as high interest rates increase the cost of debt and inflation pushes food prices higher.



Releasing their latest SpendTrend24 report, Discovery&#8217;s&nbsp;DSYJ.J&nbsp;banking unit and Visa said that while consumer spending in South Africa outpaced inflation by 19 percentage points in 2022, the two measures were closely matched last year.



Spending on food, including groceries, takeout and dining out, increased in most South African cities, by an average of 8% in 2023 compared to a 16% increase the year before, the report said.



More broadly, in South Africa and four other emerging market countries that were part of the survey &#8211; Nigeria, Ghana, Brazil and Vietnam &#8211; a larger part of household budgets went on essentials like groceries and fuel, with less spent on non-essentials like travel.



The report also showed that spending is rising among affluent and high net worth consumers, with a slight decrease in the mass segment due to rising living costs.



&#8220;Our latest research highlights that throughout 2023, global economies navigated a complex path of post-pandemic revival, framed by persistent inflation and high interest rates,&#8221; Discovery Bank&#8217;s Chief Executive Officer Hylton Kallner said.



&#8220;These challenges pushed up the cost of living, prompting consumers to adjust their spending habits.&#8221;



South Africans are increasingly using their mobile phones to pay for goods instead of physical cards, according to the report, with adoption rates matching or surpassing those of international cities.



The country&#8217;s central bank paused its tightening cycle in July for the first time since November 2021 and economists expect rates to fall from the second half of this year.



Kallner said the expected interest rate reductions would result in higher disposable income for consumers, although they will continue to prioritise getting the most value for their money.



(Reporting by Nqobile Dludla and Sfundo Parakozov; Editing by Kirsten Donovan)

A worker collects trolleys at South African retailer Woolworths

Consumer spending growth in South Africa steadied in 2023, report shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, April 4 (Reuters)&nbsp;&#8211;&nbsp;Kenya plans to increase the capital requirements for commercial banks to account for emerging risks in areas like information communication technology and climate change, its central bank governor said on Thursday.



Although the East African nation has a robust financial sector, with its banks expanding around the region in the past two decades, it has seen the capital adequacy ratios of some institutions come under pressure in recent years.



&#8220;The capital requirements for banks need to be increased. We have seen increased risks whether it is from climate change or cybersecurity,&#8221; Kamau Thugge, the central banker, told a news conference, without mentioning the potential size of the increment.



The central bank was concerned about rising non-performing loans in the banking sector, which increased to 15.5% of total loans in February this year, from 14.8% at the end of last year, he said.



The proposal to raise the capital will be published in the next one month for a public discussion, Thugge said, in line with the legal requirements.



Kenya requires a minimum capital of 1 billion shillings ($7.69 million) for those who wish to start a bank.



Banks that are already operating are required to maintain 10.5% core capital to total risk-weighted assets, and 14.5% total capital to risk-weighted assets.



&#8220;We need strong banks,&#8221; Thugge said.



($1 = 130.0000 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Devika Syamnath)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya to raise capital requirements for banks, central banker says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg" alt="" class="wp-image-463267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Copper plates on wagons ready for onward shipping at the Mufulira refinery, operated by Mopani Copper Mines Plc, in Mufulira, Zambia, on Friday, May 6, 2022.
Bloomberg | Bloomberg | Getty Images</figcaption></figure>



April 4 (Reuters)&nbsp;&#8211;&nbsp;London base metal prices rose on Thursday, with copper hitting its highest level in more than 14 months, supported by a weaker dollar and global rate cuts hopes.



Three-month copper on the London Metal Exchange (LME)&nbsp;CMCU3&nbsp;was up 0.9% at $9,344 per metric ton by 0752 GMT. The contract leapt to as much as $9,380 earlier in the session, a level last seen on Jan. 27, 2023.



The dollar fell as investors waited on U.S. labour data for clues on the Federal Reserve&#8217;s interest rate outlook. A weaker dollar makes greenback-priced metals cheaper to holders of other currencies.



Prices were also supported by Fed Chair Jerome Powell&#8217;s affirmation that his outlook on lowering the policy rate at some point this year remained the same and will continue to be guided by economic data.



Meanwhile, Euro zone inflation fell unexpectedly last month, solidifying the case for the European Central Bank to start lowering borrowing costs from record highs.



&#8220;A notable surge in speculative activity on the LME, paired with expectations of relaxed monetary policy outlook in Europe, has propelled metal prices to their highest levels in several months,&#8221; said Sucden Financial analysts in a note.



&#8220;The anticipation of monetary policy cutting cycle and ongoing geopolitical tensions are expected to further ease the pressure that has been felt by base metals in recent months,&#8221; they added.



China&#8217;s stronger-than-expected manufacturing data released earlier this week also boosted optimism around metals demand outlook in their biggest consuming market.



Prices of copper price have especially been aided by output cut plans by Chinese smelters amid a shortage of raw materials.



LME aluminium&nbsp;CMAL3&nbsp;advanced 1% to $2,452, nickel&nbsp;CMNI3&nbsp;increased 0.7% to $17,465, zinc&nbsp;CMZN3&nbsp;rose 1.3% to $2,580.50, lead&nbsp;CMPB3&nbsp;advanced 1.2% to $2,107.50 a ton and tin&nbsp;CMSN3&nbsp;climbed 0.9% to $28,640.



The Chinese markets are closed for a public holiday on Thursday and Friday.



For the top stories in metals and other news, click



TOP/MTL&nbsp;or&nbsp;MET/L



(Reporting by Mai Nguyen in Hanoi; Editing by Sonia Cheema and Philippa Fletcher)

107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER

Copper hits 14-month high on rate cut hopes and soft dollar

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="590" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QPRF7MPZSFKF5M3QKKR4AKB43I-820x590.jpg" alt="" class="wp-image-473228" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QPRF7MPZSFKF5M3QKKR4AKB43I-820x590.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QPRF7MPZSFKF5M3QKKR4AKB43I-300x216.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QPRF7MPZSFKF5M3QKKR4AKB43I-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QPRF7MPZSFKF5M3QKKR4AKB43I-768x553.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QPRF7MPZSFKF5M3QKKR4AKB43I-1536x1106.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QPRF7MPZSFKF5M3QKKR4AKB43I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Senegal&#8217;s newly elected President Bassirou Diomaye Faye addresses the audience after he took the oath of office as president during the inauguration ceremony in Dakar, Senegal April 2, 2024. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



DAKAR, April 3 (Reuters)&nbsp;&#8211;&nbsp;Senegal will conduct an audit of the oil, gas and mining sectors, newly elected President Bassirou Diomaye Faye told the nation&nbsp;in a televised speech on Wednesday,&nbsp;while also reassuring investors they were welcome in the country.



Faye&nbsp;defeated the ruling coalition&#8217;s candidate in a March election by a landslide, reflecting high hopes for change in the country of around 18 million.



The audit is one of the first policy moves announced since the 44-year-old former tax inspector&#8217;s inauguration on Tuesday.



&#8220;The exploitation of our natural resources, which according to the constitution belong to the people, will receive particular attention from my government,&#8221; he said.



&#8220;I will proceed with the disclosure of the effective ownership of extractive companies (and) with an audit of the mining, oil, and gas sector.&#8221;



He did provide further details, but sought also to reassure investors, who he said were &#8220;welcome in Senegal.&#8221;



&#8220;Investor rights will always be protected, as well as the interests of the state and the people,&#8221; he said.



Senegal&#8217;s first offshore oil development is due to start production in mid-2024. The Sangomar oil and gas project operated by Woodside Energy&nbsp;WDS.AX&nbsp;is expected to produce about 100,000 barrels per day.



(Reporting by Diadie Ba and Bate Felix; Writing by Alessandra Prentice; Editing by Chris Reese and Costas Pitas)

FILE PHOTO: Senegal’s Newly elected President Bassirou Diomaye Faye takes the oath of office as president during the inauguration ceremony in Dakar

Senegal’s new president announces oil, gas and mining sector audit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="596" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2CJFTVWIVVM6BOJKJGSWI5BMOM-820x596.jpg" alt="" class="wp-image-472906" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2CJFTVWIVVM6BOJKJGSWI5BMOM-820x596.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2CJFTVWIVVM6BOJKJGSWI5BMOM-300x218.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2CJFTVWIVVM6BOJKJGSWI5BMOM-124x90.jpg 124w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2CJFTVWIVVM6BOJKJGSWI5BMOM-768x558.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2CJFTVWIVVM6BOJKJGSWI5BMOM-1536x1116.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2CJFTVWIVVM6BOJKJGSWI5BMOM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nyasa Manonoke, 69, collects her monthly allocations of food aid provided by the World Food Program (WFP) in Mumijo, Buhera district east of the capital Harare, Zimbabwe, March 16, 2024. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, April 3 (Reuters)&nbsp;&#8211;&nbsp;President Emmerson Mnangagwa on Wednesday declared Zimbabwe&#8217;s drought a national disaster and said the country needed more than $2 billion in aid to feed millions facing hunger.



Mnangagwa&#8217;s statement follows similar announcements by Zambia in late February and Malawi in March, as drought induced by the El Nino global weather pattern triggers a humanitarian crisis in southern Africa.



More than 2.7 million people in Zimbabwe will go hungry this year, Mnangagwa told journalists at the state house in Harare, adding that 80% of the country had received poor rains.



&#8220;Preliminary assessments show that Zimbabwe requires in excess of $2 billion towards various interventions we envisage in our national response,&#8221; Mnangagwa said.



He said the government would prioritise winter cropping to boost reserves, and work with the private sector to import grains.



El Nino is a naturally occurring weather phenomenon associated with a disruption of wind patterns that means warmer ocean surface temperatures in the eastern and central Pacific.



Most provinces in Zimbabwe have experienced crop failure since November, with hotter areas declaring grains such as maize a write-off.



Humanitarian agencies including the World Food Programme, which fed 270,000 people between January and March in four districts, have described the hunger situation as &#8220;dire&#8221;, calling on donors to provide more aid.



The drought in southern Africa has reached crisis levels with Botswana and Angola to the west, and Mozambique and Madagascar to the east also facing hunger.



(Reporting by Nyasha Chingono, Editing by Bhargav Acharya and Barbara Lewis)

Villagers collect monthly allocations of food aid provided by WFP in Mumijo

Hunger grips southern Africa as Zimbabwe declares drought a disaster

<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>



April 2 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund concluded its visit to Ethiopia to discuss a request for IMF support on Tuesday without reaching an agreement, leaving the East African nation short of a commitment it made with its official international creditors.



&#8220;The team made substantial progress towards establishing how the IMF could support the authorities&#8217; economic program,&#8221; and discussions will continue later this month in Washington, the IMF said.



But the Paris Club of developed creditor nations, which does not include China, said last year that an agreement to suspend Ethiopia&#8217;s debt payments through 2025 could be voided if the country did not secure an IMF loan by March 31.



It was not clear whether Paris Club members would enforce that deadline. Ethiopia reached a separate debt-service suspension deal with China earlier in 2023.



Ethiopia has been without an IMF program since its last lending arrangement with the fund expired in late 2022.



In December, Ethiopia became the third African nation to default in as many years after it failed to make a coupon payment on its $1 billion Eurobond.



Ethiopia&#8217;s economy is reeling from high inflation, a shortage of hard currency and growing external debt repayments, after the federal government and a rebellious regional government signed a deal in late 2022 to end two years of armed conflict.



The country&#8217;s external debt totaled $28.2 billion at the end of March, according to government data, including a $1 billion international bond maturing in December 2024&nbsp;XS1151974877=TE.



Between 2006 and 2022, Chinese lenders had committed to extending more than $14 billion in loans to the country, according to Boston University.



(Reporting by Jahnavi Nidumolu in Bengaluru; Writing by Duncan Miriri; Editing by Hugh Lawson and Bill Berkrot)

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

IMF ends Ethiopia visit, deal not yet secured

<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/CGWOJODAWNIHDC2VWWGJADC3XI-820x545.jpg" alt="" class="wp-image-472547" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker loads wine bottles onto a conveyer belt at the Rostberg bottling plant near Cape Town, November 29, 2012. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



JOHANNESBURG, April 2 (Reuters) &#8211; South African manufacturing activity declined in March, a Purchasing Managers&#8217; Index (PMI) survey showed on Tuesday, with respondents suggesting that demand was sluggish.



The seasonally-adjusted PMI fell to 49.2 points in March from 51.7 in February, dropping below the 50-point mark that separates expansion from contraction.



&#8220;The PMI has been choppy in recent months, but the average for the first quarter of this year is equal to the final quarter of last year. In the fourth quarter, the gross value added by the sector managed to eke out a 0.2% quarter-on-quarter expansion,&#8221; Absa, which sponsors the PMI, said in a statement.



One positive survey finding was respondents were the most upbeat about expected business conditions since the start of 2023.



This is a developing story&#8230;



(Reporting by Alexander Winning)

A worker loads wine bottles onto a conveyer belt at the Rostberg bottling plant near Cape Town

South African factory activity declines in March – Absa PMI

<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>



LONDON, April 2 (Reuters)&nbsp;&#8211;&nbsp;The World Bank is looking to issue up to $1 billion in a debut hybrid note on capital markets this year, a senior executive told Reuters, as development banks face increasing pressure to find new ways to boost their lending.



The G20 group of major economies has urged multilateral lenders to explore hybrid financing structures in a push to try and maximise balance sheets and increase funding to help developing economies cope with crises, including climate change.



The World Bank would be only the second multilateral lender to issue such an instrument after the African Development Bank (AfDB) sold its hybrid capital note in January &#8211; the first such financing of its kind from a multilateral lender.



When the AfDB sold this deeply subordinated, debt-like equity instrument, it said it hoped to establish this as a new asset class.



&#8220;We are working towards a potential pilot transaction some time this calendar year,&#8221; said George Richardson, director of the capital markets and investment department at the World Bank Treasury.



&#8220;It would be interesting to see if we can find a new way of raising money. The proof is in the pudding,&#8221; said Richardson, adding the lender was talking to investors about the issue and was also closely monitoring market conditions.



Looking at the ratings that would be assigned to the new instrument, Richardson said the World Bank was convinced that hybrid capital issued by multilateral development banks would be a better credit, relative to senior, unsecured bonds, than currently reflected in the rating agencies&#8217; methodologies.



&#8220;These state that hybrid capital will be rated 3 to 5 notches below senior ratings,&#8221; he said, adding that Fitch was undergoing a methodology change and it remained to be seen what changes the ratings agency would make on hybrid capital.



&#8220;We are not commercial banks nor a corporate. Our governance and ownership structure makes us better credits than commercial banks and corporates,&#8221; he added.



Moody&#8217;s assigned an AA3 rating to the AfDB issue, three notches below the bank&#8217;s AAA rated bonds. The AfDB hybrid issue traded at 97.6 cents in the dollar on Tuesday, according to LSEG data, below its debut of just over 100 cents in the dollar in early February. 008281BF3=



(Reporting by Karin Strohecker, Editing by Bernadette Baum)

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

World Bank set to issue up to $1 bln in debut hybrid note this year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QASBB3K3FJKGZCBL7XYAB5FYUA-820x550.jpg" alt="" class="wp-image-472496" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QASBB3K3FJKGZCBL7XYAB5FYUA-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QASBB3K3FJKGZCBL7XYAB5FYUA-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QASBB3K3FJKGZCBL7XYAB5FYUA-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QASBB3K3FJKGZCBL7XYAB5FYUA-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QASBB3K3FJKGZCBL7XYAB5FYUA-1536x1030.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QASBB3K3FJKGZCBL7XYAB5FYUA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Wind turbines produce renewable energy outside Caledon, South Africa, May 20, 2020. Picture taken May 20, 2020. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



JOHANNESBURG, April 2 (Reuters)&nbsp;&#8211;&nbsp;China has a unique opportunity to drive forward an energy revolution in Africa, but it must first reverse nearly two decades of neglect of green power investments there, research from Boston University showed on Tuesday.



Beijing has emerged as the continent&#8217;s biggest bilateral trading partner since the start of the century and has financed billions of dollars worth of large-scale infrastructure projects.



Three years ago, China&#8217;s President Xi Jinping said the country would not build new coal-fired power projects abroad, pledging to deal with climate change by supporting the development of green and low-carbon energy.



Although Africa&#8217;s green energy potential is one of the highest in the world, Chinese lending and investment has so far provided relatively little support for the continent&#8217;s energy transition, according to a report from Boston University&#8217;s Global Development Policy Center and the African Economic Research Consortium.



Lending for renewables, such as solar and wind, from China&#8217;s two main development finance institutions constituted just 2% of their $52 billion of energy loans from 2000 to 2022, while more than 50% is allocated to fossil fuels.



&#8220;Given current economic challenges and future energy opportunities, China can play a role in contributing to Africa&#8217;s energy access and transition through trade, finance and FDI (foreign direct investment),&#8221; the report said.



Chinese development finance institutions have been focused on investing in the extraction and export of commodities to China and in electrification projects.



Chinese lending has targeted many of the same sectors that produce the oil and minerals that flow back to China.



At least eight hydropower projects financed by the Export-Import Bank of China (CHEXIM), which represent 26% of all hydropower lending, are intended to support the extraction of various metals.



&#8220;Although this track has led to export revenues for African economies, African countries are not yet receiving the full benefits of renewable energy technologies,&#8221; the report said.



In 2022, fossil fuels accounted for around 75% of total electricity generation in Africa and about 90% of energy consumption, the report said.



(Reporting by Anait Miridzhanian, Editing by Rachel Savage and Ros Russell)

FILE PHOTO: Wind turbines produce renewable energy outside Caledon

China could drive Africa’s renewable energy revolution, report says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-820x547.jpg" alt="" class="wp-image-470881" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A container ship is seen as its docked next to cranes at the port of Mombasa, Kenya, October 23, 2019. Picture taken October 23, 2019. REUTERS/Baz Ratner/File Photo</figcaption></figure>



NAIROBI, March 28 (Reuters)&nbsp;&#8211;&nbsp;Kenya will allow&nbsp;landlocked&nbsp;Uganda&#8217;s state oil firm to import petroleum products through its port of Mombasa,&nbsp;Uganda&#8217;s&nbsp;energy ministryconfirmed&nbsp;on Thursday, to end a row between the two neighbours.



Uganda has been seeking alternative ways of importing petroleum products, including through a Tanzanian port, after its oil retailers for decades received their cargo through affiliated firms in Kenya.



Solomon Muyita, spokesperson for Uganda&#8217;s ministry of energy and minerals, said the first shipment under the new system was expected in May.



&#8220;Kenya has agreed to give us a licence, UNOC (Uganda National Oil Company) is now free to import through Mombasa,&#8221; he said.



The Business Daily newspaper, which first reported the news, quoted&nbsp;Kenyan&nbsp;Energy Minister Davis Chirchir as saying UNOC&nbsp;would&nbsp;use the Kenya Pipeline Company to move the products, meaning that Kenya would&nbsp;still benefit from the arrangement.



Uganda imported $1.6 billion worth of petroleum products in 2022, mostly originating from the Gulf. Some 90% of the products are imported through Kenya.



It announced in November that it&nbsp;planned&nbsp;to hand over exclusive rights&nbsp;to&nbsp;supply all petroleum products to a unit of&nbsp;the&nbsp;global energy trader Vitol,which would then supply UNOC.



Using Kenyan firms to import oil had &#8220;exposed Uganda to occasional supply vulnerabilities&#8221;&nbsp;where Ugandan retail companies were considered secondary whenever there were supply disruptions affecting retail prices, the government said at the time.



Kenyan&nbsp;President William Ruto and his Ugandan counterpart Yoweri Museveni met in Uganda last month and agreed to resolve the feud, Kenyan media outlets reported.



(Reporting by Duncan Miriri and Elias Biryabarema; Writing by Duncan Miriri; Editing by Michael Perry and Kevin Liffey)

A container ship is seen as its docked next to cranes at the port of Mombasa

Kenya and Uganda resolve oil import row, Uganda says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-820x547.jpg" alt="" class="wp-image-470834" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A woman displays a selection of Kwacha notes, the national currency and money used in Zambia in Lusaka, Zambia February 27, 2024. REUTERS/Namukolo Siyumbwa/File Photo</figcaption></figure>



LONDON, March 28 (Reuters) &#8211; Zambia&#8217;s deal with bondholders this week suggests it will finally emerge from more than three years in default &#8212; and become the first successful restructuring under the debt-rework architecture designed by the G20.



The deal is a much-needed win for the so-called Common Framework. The African nation&#8217;s President Hakainde Hichilema posted on X that &#8220;history has been made,&#8221; while International Monetary Fund (IMF) President Kristalina Georgieva lauded the &#8220;important achievement.&#8221;



Global leaders hope that Ghana may soon reach its own deal with lenders, boosting the Framework before the IMF World Bank Spring Meetings in Washington, D.C. in mid-April.



But the scars from Zambia&#8217;s drawn-out battles with creditors &#8211; and its years-long, stop-start progress &#8211; have left investors, observers and many policymakers themselves wary of the multilateral mechanism&#8217;s efficacy.



It was designed to expedite talks between a myriad of lenders from Chinese state-owned institutions to London-based asset managers and New York banks.



&#8220;I don&#8217;t think anyone is filled with a tremendous sense of confidence that the Common Framework is going to speed up the debt negotiation process,&#8221; said London-based Kevin Daly, head of emerging market debt at Abrdn, which held some of Zambia&#8217;s $3 billion worth of international bonds.



Ricardo Klinger, Brazil&#8217;s Finance Ministry official in the G20 International Financial Architecture Working Group, said those involved in Zambia&#8217;s restructuring would discuss lessons learned. Brazil currently holds the G20 presidency.



&#8220;The stages are being completed more quickly because it is a learning process,&#8221; Klinger said.



He said they aim to publish a document in July incorporating feedback from all sides of Zambia&#8217;s restructuring to identify bottlenecks and potential improvements to gain time.



&#8220;The document seeks to synthesize this learning in these recent cases to build a more refined process,&#8221; he said.



<h2 class="wp-block-heading" id="h-first-to-fall">FIRST TO FALL</h2>



Zambia was the first African country to default amid the economically punishing COVID-19 pandemic, doing so in late 2020.



Foreseeing more collapses, the G20 launched the Common Framework to bring all creditors to low-income nations under one roof &#8212; particularly China, whose lending to developing countries exploded in the decade before the pandemic.



For many, though, Zambia has been a cautionary tale &#8212; throwing into sharp focus disagreements around equal burden sharing and transparency.



The delays have hamstrung much-needed investments in the country, curtailed economic growth and weighed on local financial markets. A devastating drought has exacerbated the pain, hitting hydropower and food production.



In November, an unexpected official creditor smackdown of Zambia&#8217;s initial bondholder deal shocked its leaders &#8212; and bondholders like Daly.



Members of the Official Creditor Committee (OCC), co-chaired by China and France, said it did not offer Comparability of Treatment, meaning bondholders were not taking a comparable hit to the debt relief that official lenders offered.



Zambia has promised that the new deal has official creditor sign-off, but Daly and others said communication and transparency issues loom for other restructurings.



&#8220;There is a major flaw,&#8221; Daly said.



Bondholders, for example, do not have access to the terms official creditors give countries, effectively leaving them working in the dark. Details are sometimes published later, but not always, potentially leaving the public in the dark as well.



&#8220;Improvements could &#8230; be made to transparency and information sharing between official and private creditors, as well as clearly defined rules on Comparability of Treatment to ensure agreements under the Common Framework are timely and equitable,&#8221; said Christian Libralato, EM Portfolio Manager at BlueBay Asset Management.



<h2 class="wp-block-heading" id="h-aiming-to-revise">AIMING TO REVISE</h2>



Others agree with Klinger that Zambia&#8217;s pain could help forge a successful Framework.



&#8220;Some of those lessons will be put to work in Ghana, and some will be put to work in Ethiopia,&#8221; said Giulia Pellegrini, portfolio manager for emerging markets debt at Allianz Global Investors. &#8220;There will be some transferable skills and lessons.&#8221;



&#8220;There&#8217;s definitely a lot of push to have more successful cases,&#8221; she added.



Ghana is currently in formal talks with holders of more than $13 billion in international bonds and wants to speed up remaining negotiations. Ethiopia defaulted on its sole $1 billion Eurobond in December, but talks with bondholders have been slow.



The IMF is also working on key fixes; it is in the middle of a years-long revision of its debt-sustainability analyses (DSA) and has promised to share them earlier with creditors. DSAs detail how sustainable a country&#8217;s debt burden is and form the basis for restructurings.



It also launched the Global Sovereign Debt Roundtable, bringing together representatives from the countries, private lenders, the World Bank and the G20 to identify and solve key problems with the Framework. Such issues include how to calculate comparability of treatment, how to treat debt to state-owned enterprises, and cut-off dates for debt included in reworks.



&#8220;They are aware of these issues, and they have begun a process to address these, but it won&#8217;t be an easy announcement in the Spring Meetings,&#8221; Pellegrini said.



That may not be much comfort to other countries in a similar situation.



&#8220;I am not sure that the three years it took to get Zambia done will commend the Common Framework to other countries that may be technically eligible to apply for Common Framework treatment,&#8221; lawyer and veteran sovereign debt expert Lee Buchheit told Reuters.



(Reporting by Libby George in London, additional reporting by Marcela Ayres in Brasilia and Rodrigo Campos in New York, editing by Karin Strohecker and Hugh Lawson)

FILE PHOTO: Zambian currency, the Kwacha

Zambia’s debt-rework battle scars mar its Common Framework success

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ODEFW2LJCVLEDLUNAWURA43T54-820x521.jpg" alt="" class="wp-image-470831" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ODEFW2LJCVLEDLUNAWURA43T54-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ODEFW2LJCVLEDLUNAWURA43T54-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ODEFW2LJCVLEDLUNAWURA43T54-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ODEFW2LJCVLEDLUNAWURA43T54-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ODEFW2LJCVLEDLUNAWURA43T54-1536x976.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ODEFW2LJCVLEDLUNAWURA43T54-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man rides a scooter past a Hyundai automobile showroom in Mumbai, India, February 9, 2022. REUTERS/Francis Mascarenhas/File Photo</figcaption></figure>



SYDNEY, March 28 (Reuters)&nbsp;&#8211;&nbsp;India&#8217;s bulging pipeline of large block trades and listings such as the $3 billion IPO of Hyundai Motor&#8217;s&nbsp;005380.KS&nbsp;unit will draw more funds to a market whose share of global equity capital market deals hit a&nbsp;quarterly record&nbsp;this year, bankers said.



A paucity of deals elsewhere in Asia will add to the impetus for capital flows into India, they added.



Higher global interest rates, geopolitical tensions, as well as China&#8217;s economic slowdown and its move to restrict initial public offerings (IPOs) to support its secondary markets, have led to a slump in equity dealmaking across Asia.



India, on the other hand, has emerged as the second busiest market in the world for equity capital market (ECM) deals after the United States.



Indian companies raised $2.3 billion in the first quarter of 2024 in IPOs, according to LSEG data, up more than 12 times the $166.5 million raised in the same period last year, the data showed.



Total ECM deals rose 139%, making it the most active market across Asia Pacific, including Japan, where activity was down 46.8%, and accounted for 10.05% of the global total in the first three months, a record high for any quarter.



&#8220;The pipeline and activity level has never been as big or as busy. We are seeing many more billion dollar-plus transactions, it&#8217;s unbelievable,&#8221; said Rahul Saraf, Citigroup&#8217;s&nbsp;C.N&nbsp;India head of investment banking.



&#8220;India is really coming of age in the size, scale and quality of issuers.&#8221;



The National Stock Exchange, the country&#8217;s largest bourse, was the third most active listing venue globally in the first quarter, behind the New York Stock Exchange and Nasdaq.



&#8220;If you look at global liquidity, where would a large family office or global fund like to put money in the current environment? It’s most likely between the US, India and Japan,&#8221; said Saraf.



Among the large deals in the pipeline, the listing of South Korean automaker Hyundai Motor&#8217;s India unit is on track to be the country&#8217;s largest ever IPO as it aims to raise up to $3 billion in 2024 in a deal that would value the car marker at up to $30 billion.



Budget supermarket chain Vishal Mega Mart is also planning a $1 billion IPO that would value the company at up to $5 billion.



&#8220;In terms of upcoming deals &#8230; the size of the deals is getting larger and more companies are lining up for listing later in the year, once elections are out of the way,&#8221; said Sumeet Singh, Aequitas Research director who publishes on Smartkarma.



India&#8217;s general elections will be held over almost seven weeks from April 19.



Citigroup C.N heads the league table for Indian ECM activity, according to LSEG, ahead of Bank of America BAC.N and ICICI Bank ICBK.NS.



(Reporting by Scott Murdoch in Sydney; Editing by Sumeet Chatterjee and Muralikumar Anantharaman)

A man rides a scooter past a Hyundai automobile showroom in Mumbai

India sizzles in global equity capital markets amid deals drought in Asia

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZFWHVCKG3JIMLGJDNTBUQE2GWY-820x547.jpg" alt="" class="wp-image-470802" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZFWHVCKG3JIMLGJDNTBUQE2GWY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZFWHVCKG3JIMLGJDNTBUQE2GWY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZFWHVCKG3JIMLGJDNTBUQE2GWY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZFWHVCKG3JIMLGJDNTBUQE2GWY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZFWHVCKG3JIMLGJDNTBUQE2GWY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZFWHVCKG3JIMLGJDNTBUQE2GWY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: One hundred dollar notes are seen in this photo illustration at a bank in Seoul January 9, 2013. REUTERS/Lee Jae-Won</figcaption></figure>



TOKYO/LONDON, March 28 (Reuters)&nbsp;&#8211;&nbsp;The dollar gained on the euro and pound on Thursday after a U.S. Federal Reserve policy maker said he wasn&#8217;t in a hurry to cut rates, while traders braced for key economic data and hesitated to move on the yen on fears of Japanese intervention.



The Japanese currency was steady at 151.42 per dollar having traded just shy of the 152 mark at its lowest since 1990 on Wednesday before Japan&#8217;s top monetary officials suggested they were ready to intervene to prevent further declines.



The euro&nbsp;EUR=EBS&nbsp;was last down 0.33% at $1.0792 its lowest in five weeks, and the pound&nbsp;GBP=D3&nbsp;was down 0.25% at $1.2609. That left the dollar index up 0.16% at 104.6, its highest since mid-February.&nbsp;=USD



Speaking during late U.S. trading hours on Wednesday, Fed Governor Christopher Waller said recent disappointing inflation data affirms the case for the U.S. central bank holding off on cutting its short-term interest rate target.



Market expectations for the first rate cut to occur at the Fed&#8217;s June meeting have eased somewhat. Current pricing has it at a 60% chance, compared to 67% around this time last week, according to the CME FedWatch tool.



&#8220;Waller is one of the more important Fed policy makers and, while I don&#8217;t see this being a big move, the remarks have put some momentum into the market which has been stuck in very tight trading ranges,&#8221; said Lee Hardman, senior currency strategist at MUFG.



Traders now await U.S. core PCE inflation figures due on Friday, as well as an appearance by Fed Chair Jerome Powell.



<h2 class="wp-block-heading" id="h-intervention-watch">INTERVENTION WATCH</h2>



Should the inflation data surprise on the upside and support the dollar, its most dramatic impact could be on the yen. Market participants say there is a dense thicket of options restricting moves in dollar/yen around the 152 level, and so a break through could trigger more significant moves.



While there may be some trading to defend a move toward 152 yen per dollar for now, Friday&#8217;s U.S. inflation data posed a significant risk, said Takeshi Ishida, a currency strategist at Resona Holdings.



&#8220;Once dollar/yen touches 152, I think there will probably be a sharp move upward, and that&#8217;s when intervention could take place.&#8221;



Japanese authorities held a meeting on Wednesday on the currency&#8217;s weakness and ramped up their verbal warnings, putting the market on the lookout for any signs that words are being backed up with action.



Japan intervened in the currency market three times in 2022, selling the dollar to buy yen, first in September and again in October as the yen slid towards a 32-year low of 152 to the dollar.



A summary of opinions at the Bank of Japan&#8217;s March meeting released on Thursday gave the currency little support, showing many policymakers saw the need to go slow in phasing out ultra-loose monetary policy.



The Easter holiday in many markets is also complicating matters.



&#8220;That works in Japan&#8217;s favour as it keeps another layer of uncertainty as liquidity tends to be thin, and so investors might be nervous holding yen shorts going into the holiday period,&#8221; said MUFG&#8217;s Hardman.



Meanwhile, China&#8217;s central bank set the yuan fixing at the widest gap against Reuters&#8217; estimate in nearly five months, as authorities step up efforts to prevent sharp declines in the currency. The yuan slumped to a four-month low last Friday.&nbsp;CNY/



The onshore yuan was mostly flat at 7.2277 per dollar,&nbsp;CNY=CFXS&nbsp;while offshore it was at 7.2591 per dollar, also little changed.&nbsp;CNH=D3



The Swiss franc remained under pressure, and the dollar rose 0.24% to 0.9059 francs, trading just shy of a four month high hit the day before.&nbsp;CHF=EBS



The Aussie fell 0.6% to $0.6495 AUD=D3. As well as being hurt by Waller&#8217;s remarks, data from Australia showed consumers continued to struggle as retail sales edged up 0.3% in February, missing forecasts. AUD/



(Reporting by Brigid Riley; Editing by Lincoln Feast and Sonali Paul)

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Reuters

Stocks slip on Fed rate caution and geopolitical woes, currencies flat

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

AI seen cutting worker numbers, survey by staffing company Adecco shows

South Africa to investigate Microsoft over cloud computing licensing practices, source says

Consumer spending growth in South Africa steadied in 2023, report shows

Kenya to raise capital requirements for banks, central banker says

Copper hits 14-month high on rate cut hopes and soft dollar

Senegal’s new president announces oil, gas and mining sector audit

Hunger grips southern Africa as Zimbabwe declares drought a disaster

IMF ends Ethiopia visit, deal not yet secured

South African factory activity declines in March – Absa PMI

World Bank set to issue up to $1 bln in debut hybrid note this year

China could drive Africa’s renewable energy revolution, report says

Kenya and Uganda resolve oil import row, Uganda says

Zambia’s debt-rework battle scars mar its Common Framework success

India sizzles in global equity capital markets amid deals drought in Asia

Dollar gains as inflation data looms; yen on intervention watch

News Tips

Advertise With Us

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