<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="604" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SWKPWMQPNBJONAOSYUWQUMN254-820x604.jpg" alt="" class="wp-image-460010" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SWKPWMQPNBJONAOSYUWQUMN254-820x604.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SWKPWMQPNBJONAOSYUWQUMN254-300x221.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SWKPWMQPNBJONAOSYUWQUMN254-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SWKPWMQPNBJONAOSYUWQUMN254-768x565.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SWKPWMQPNBJONAOSYUWQUMN254-1536x1131.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SWKPWMQPNBJONAOSYUWQUMN254-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Director-General of the World Trade Organization Ngozi Okonjo-Iweala arrives to attend the opening of the WTO ministerial meeting in Abu Dhabi, United Arab Emirates, February 26, 2024. REUTERS/Emma Farge</figcaption></figure>



ABU DHABI, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;Trade ministers from around the world gathered in Abu Dhabi on Monday for a World Trade Organization meeting that aims to set new global commerce rules, but its ambitious chief Ngozi Okonjo-Iweala and delegates sought to curb expectations.



The almost 30-year-old global watchdog, whose rules underpin 75% of global commerce, tries to strike deals by consensus, but such efforts are becoming more difficult amid signs that the global economy is fragmenting into separate blocs.



&#8220;Let&#8217;s not pretend that any of this will be easy,&#8221; Okonjo-Iweala said in her opening speech, describing the atmosphere as &#8220;tougher&#8221; than the WTO&#8217;s last 2022 meeting, citing wars, tensions and elections and signs that trade growth will undershoot the organisation&#8217;s own estimate.



She called on ministers to &#8220;roll up their sleeves&#8221; and complete negotiations, but seemed to rule out any deal in Abu Dhabi on reforming the body&#8217;s mothballed appeals court.



&#8220;We are not there yet,&#8221; she said.



Thani Al Zeyoudi, conference chair and UAE&#8217;s foreign trade minister said in an opening address: &#8220;The multilateral trading system with the WTO at its core is at a critical juncture; it is confronting many challenges.



&#8220;The WTO remains a powerful force in countering the current unilateralism, protectionism, and discrimination.&#8221;



Some delegates privately voiced concerns that India&#8217;s trade minister, seen as the main holdout on some key issues including agriculture, was absent on Monday although New Delhi said he would be in Abu Dhabi on Tuesday.



<h2 class="wp-block-heading" id="h-new-members">NEW MEMBERS</h2>



Negotiators say they remain hopeful for an agreement that could buoy global fish stocks and protect fishermen by banning government subsidies.



Other outcomes from the four-day meeting that are either definite or achievable are the accession of two new members &#8211; Comoros and East Timor &#8211; and a deal among around 120 countries to remove development-hampering investment barriers.



Tougher areas are extending a 25-year moratorium on applying tariffs on digital trade, which South Africa and India oppose, and an agreement on agriculture trade rules that has eluded negotiators for decades.



Indian Commerce Minister Piyush Goyal repeated on Monday New Delhi&#8217;s drive for a controversial stand-alone permanent waiver to WTO rules that currently restrict domestic agriculture subsidies on food items like rice.



&#8220;I think this week is really about trying to consolidate progress from two years ago and build on where possible, but I don&#8217;t think there&#8217;s going to be major new breakthroughs in new areas,&#8221; said Simon Conveney, Ireland&#8217;s Minister for Enterprise, Trade and Employment, referring to the WTO&#8217;s 2022 meeting in Geneva.



U.S. Trade Representative Katherine Tai said the meeting was a chance to &#8220;chart a future path together&#8221; and that success should not be measured by the number of deals.



One factor that could help is the determination of Okonjo-Iweala, a former Nigerian finance minister, whose insistence on all-night meetings helped deliver a package of deals in Geneva in 2022. She has already asked ministers to plan for the four-day talks to run overtime.



The European Trade Commissioner Valdis Dombrovskis said that uncertainty and multiple crises were impacting the rules-based global order. &#8220;This tense geopolitical environment makes multilateral organizations like the WTO much more, not less, important,&#8221; he said.



(Additional reporting by Alexander Cornwell; Editing by Alex Richardson, Bernadette Baum and Emelia Sithole-Matarise)

Director-General of the World Trade Organization Ngozi Okonjo-Iweala arrives to attend the opening of the WTO ministerial meeting in Abu Dhabi

WTO meeting seeks modest outcomes, with global trade at ‘critical juncture’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="505" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YVOFDSRNTVM37PQ7357O7KQHAY-820x505.jpg" alt="" class="wp-image-459210" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YVOFDSRNTVM37PQ7357O7KQHAY-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YVOFDSRNTVM37PQ7357O7KQHAY-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YVOFDSRNTVM37PQ7357O7KQHAY-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YVOFDSRNTVM37PQ7357O7KQHAY-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YVOFDSRNTVM37PQ7357O7KQHAY-1536x946.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YVOFDSRNTVM37PQ7357O7KQHAY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A customer walks beneath the logo of South African supermarket operator Pick n Pay in Cape Town, South Africa, April 26 2016. REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, Feb 23 (Reuters)&nbsp;&#8211;&nbsp;Pick n Pay&#8217;s efforts to shore up its balance sheet through a rights issue and the listing of its discounter business Boxer could give the South African retailer time to fix its core supermarket business, analysts said.



The group surprised investors on Thursday with the two-step&nbsp;recapitalisation plan&nbsp;aimed at raising up to 4 billion rand ($208 million) to boost its near-term liquidity.



With little wiggle room, new CEO Sean Summers made the call after the retailer&#8217;s net debt nearly doubled to 7.2 billion rand as of Jan. 21, from 3.8 billion on Aug. 27, breaching debt covenants.



&#8220;It is a very desperate attempt to put the business on the right path &#8211; probably a sign that Sean did not entirely envision Pick n Pay supermarkets&#8217; problems to be of this magnitude,&#8221; said Casparus Treurnicht, portfolio manager at Gryphon Asset Management.



data





Summers is tasked with turning round a company that has been losing market share against bigger rival Shoprite&nbsp;SHPJ.J&nbsp;and others for more than a decade in a highly promotional market and an economy struggling with high interest rates, rising inflation and high energy costs.



Specifically, he has to improve the performance of the core Pick n Pay supermarkets business.



&#8220;With less pressure from a debt point of view, it might be easier&#8221; to do that, Treurnicht said.



More details of the turnaround plan will be announced in May, including the terms of the planned capital raising.



&#8220;If successfully implemented, these steps could stabilise and potentially revitalise the company, aligning with a broader strategy to focus on the core business and independently leverage Boxer&#8217;s strong performance,&#8221; Stephan Erasmus, investment analyst at Anchor Capital, said.



On Friday, Pick n Pay shares were 6.13% higher at 1221 GMT after plunging more than 17% on Thursday.



Richard Cheesman, senior analyst at Protea Capital Management, said many had expected either a rights issue or Boxer&#8217;s listing, but not both.



He added doing both was probably right as the retailer was &#8220;in a difficult space and it can&#8217;t really take half measures to try and rectify&#8221; years of underperformance.



($1 = 19.2678 rand)



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

FILE PHOTO: A customer walks beneath the logo of South African supermarket operator Pick n Pay in Cape Town

Pick n Pay fundraising seen giving grocer time to fix core business

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-820x547.jpg" alt="" class="wp-image-459177" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A sign board is seen near the Sibanye gold mine in Westonaria, west of Johannesburg, April 6, 2016. REUTERS/Siphiwe Sibeko</figcaption></figure>



Feb 23 (Reuters)&nbsp;&#8211;&nbsp;Sibanye Stillwater&nbsp;SSWJ.J&nbsp;on Friday said it had &#8220;significantly reduced&#8221; the number of job losses from the restructuring of its South African platinum group metal (PGM) operations after deferring the closure of one of its mature shafts.



South African PGM miners produce around 70% of global mined platinum output from some of the world&#8217;s oldest and deepest mines, which are expensive to operate. They are restructuring unprofitable production after a steep fall in PGM prices.



Sibanye said in a statement that about 2,000 workers had left the company through voluntary separation, early retirement and termination, fewer than the potential 4,095 job cuts the miner announced last October as it embarked on restructuring its four loss-making shafts.



Some 467 workers had also been removed from the payroll due to natural attrition since September 2023, the miner said.



As a result of consultations held with various parties including labour unions, Sibanye will continue operating the 4 Belt (4B) shaft at Marikana on condition that it does not run up net losses on a monthly basis. The shaft currently employs 1,496 permanent workers and 54 contractors.



Two other shafts, Rowland and Siphumelele, which have experienced operational and geological challenges, &#8220;have been repositioned for sustainable levels of production at a lower cost structure&#8221;, Sibanye said.



The Simunye shaft, which ceased production in 2023, has been closed.



Sibanye has forecast a 91% fall in annual profit for 2023 due to the decline in PGM prices. Peer Anglo American Platinum AMSJ.J has announced plans to cut 3,700 jobs after its profit plunged 71% last year, while Impala Platinum IMPJ.J is also offering voluntary job cuts to workers.



(Reporting by Nelson Banya; Editing by Kirsten Donovan)

FILE PHOTO: FILE PHOTO: A sign board is seen near the Sibanye gold mine in Westonaria

Sibanye reduces planned job cuts after deferring shaft closure

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-820x547.jpg" alt="" class="wp-image-459116" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant/File Photo</figcaption></figure>



LONDON, Feb 23 (Reuters)&nbsp;&#8211;&nbsp;Red Sea shipping delays and OPEC+ supply cuts are tightening physical oil markets in Europe and Africa as well as the Brent crude market structure, lending further support to oil futures prices, according to traders, LSEG data and analysts.



A sustained rise in crude prices would lift energy, transportation and manufacturing costs and threaten to unwind some of the recent falls in global inflation, just as major central banks are expected to begin cutting interest rates.



On Thursday, the benchmark Brent crude futures market structure hit its most bullish since October. The premium of the first-month contract to the six-month contract&nbsp;LCOc1-LCOc7&nbsp;reached $4.34 a barrel. This structure, called backwardation, indicates a perception of tight prompt supply.



&#8220;It looks like there has been a pick-up in (tanker) diversions, which is making the crude balance tighter,&#8221; said FGE analyst James Davis. Crude demand is high because of strong refining margins, despite refinery maintenance, he added.



More tankers are avoiding the Red Sea since Yemen&#8217;s Houthis began drone and missile attacks against shipping in mid-November, saying they are acting in solidarity with Palestinians as Israel wages war on Hamas.



January average refining margins for diesel and gasoline in Europe rose to multi-month highs of $34.3 and $11.6 a barrel, respectively, Reuters calculations show.



U.S. crude CLc1-CLc7 is also in backwardation, with the strength of Brent and WTI taking the trading community by surprise after predictions that supply would outpace demand at the start of the year.



The stronger market is a bonus for the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+. The group has been cutting supply for the past two years but has often struggled to achieve prices above $80 per barrel – the minimum most producers need to balance their budgets.



Brent&nbsp;LCOc1&nbsp;traded at almost $84 a barrel on Thursday and has risen 9% this year.



OPEC+ leaders have said backwardation is a positive market trend because it discourages traders from holding inventory to resell at a premium later, with low stocks also creating bullish market sentiment.



The world&#8217;s onshore crude inventories sit at 4.4 billion barrels, their lowest level since the start of 2017 when intelligence firm Kpler began tracking the data, JPMorgan said in a report.



&#8220;The physical sweet crude market is very tight,&#8221; said Black Gold Investors CEO Gary Ross, using a term for low-sulphur crude. Libyan outages, a U.S. cold snap that cut output and payment issues for some Russian supplies are among the reasons, he said.



<h2 class="wp-block-heading" id="h-firmer-footing">&#8216;FIRMER FOOTING&#8217;</h2>



OPEC+ sources have said the group will decide in early March whether to extend oil-output cuts into the second quarter of the year or begin returning supply to the market.



&#8220;The market has found a firmer footing with Brent trading above $80 for a while now, supported by what looks like a better-than-expected demand outlook together with the&#8230;tanker diversions keeping millions of barrels at sea for longer,&#8221; said Ole Hansen, Saxo Bank&#8217;s head of commodity strategy.



&#8220;OPEC+ I&#8217;m sure will be very pleased.&#8221;



In the North Sea crude market, the differential of Forties crude to benchmark dated Brent&nbsp;BFO-FOT&nbsp;has reached the highest since late November and the prices of some other grades considered local alternatives to Middle East crude have soared.



In October, about 1.07 million bpd of Middle Eastern crude came to Europe, Kpler data showed, with volumes falling in the following months amid the Red Sea attacks and expected to average about 606,000 bpd in February.



&#8220;Delays to shipments from East of Suez&#8230;are making crude closer to home more attractive,&#8221; a European crude trader said. &#8220;The offers for West Africa and North Sea crude reflect that.&#8221;



&#8220;Refining margins in Europe for Angolan crude are very favourable and Nigeria is selling cargoes faster than it has for months.&#8221;



Nigerian Forcados&nbsp;BFO-FOC&nbsp;crude was offered this week at dated Brent plus $6.00 a barrel, the highest since October LSEG data showed. Nigerian grades Qua Iboe and Bonny Light have firmed to dated plus $3.80 and $3.00, respectively.



In Asia, Middle East cash crude differentials have stayed pretty stable month on month, suggesting Europe and African crude is seeing the bulk of the strength.



U.S. crude has been mixed. On the light side, there has been some tightness due to a cold snap last month hitting Permian production, while March loadings to Asia are set to pick up after a weak January and February.



An unplanned outage at BP&#8217;s Whiting refinery has pushed some heavy Canadian crude into the Cushing storage hub and so there is currently little tightness.



(Reporting by Alex Lawler, Natalie Grover, Noah Browning and Ahmad Ghaddar, additional reporting by Florence Tan and Arathy Somasekhar; editing by Dmitry Zhdannikov, Kirsten Donovan)

FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County

Europe, Africa oil markets tighten, lending support to futures

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="559" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66.jpg" alt="" class="wp-image-425261" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66-768x537.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Workers from Mondi paper mill stand behind a fence in the town of Stamboliyski, Bulgaria. File photo. REUTERS/Stoyan Nenov</figcaption></figure>



Feb 22 (Reuters)&nbsp;&#8211;&nbsp;British packaging company Mondi&nbsp;MNDI.L&nbsp;said on Thursday that its customers, which include consumer goods companies and e-commerce retailers, have been reluctant to change to sustainable packaging due to cost considerations.



In recent years there has been a push to shift away from plastic packaging due to its negative impact on the environment, with companies seeking more sustainable ways to deliver goods.



&#8220;In the short term, we have seen the world naturally distracted by heightened geopolitical and macroeconomic risks, at times slowing down progress on key sustainability issues,&#8221; Mondi CEO Andrew King told analysts in a post-earnings call.



&#8220;We see this in the rate of adoption of some of the sustainable packaging solutions we have developed, where our customers and ultimately the end consumer have been reluctant to make the change due to cost considerations,&#8221; King added.



However, he added that he believed it to be more of a &#8220;cyclical phenomenon&#8221;.



For Mondi, which counts Unilever&nbsp;ULVR.L, Reckitt&nbsp;RKT.L&nbsp;and Tesco&nbsp;TSCO.L&nbsp;among its customers, 82% of its 2022 revenue came from packaging and paper products that are reusable, recyclable or compostable.



Mondi makes &#8216;EcoWicketBags&#8217; which are used to package diapers and toilet paper, as well as paper-based packaging for Reckitt&#8217;s Finish dishwasher tablets.



(Reporting by Aby Jose Koilparambil and Yadarisa Shabong in Bengaluru; Editing by Kirsten Donovan)

download-66

Mondi says customers reluctant to switch to sustainable packaging on cost concerns

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



LONDON, Feb 22 (Reuters)&nbsp;&#8211;&nbsp;Anglo American&nbsp;AAL.L&nbsp;said on Thursday it will review its assets after posting a 94% plunge in its annual profit&nbsp;and taking writedowns at its diamonds and&nbsp;nickel units.



The miner announced a $1.6 billion impairment charge on its De Beers diamond business owing to faltering demand, and an impairment of $500 million at its Barro Alto nickel mine&nbsp;as prices are hit&nbsp;by&nbsp;slowing&nbsp;demand from the electric vehicle sector.



&#8220;We are now in a process of systematically going through all of our assets in a review just to assess their role in the portfolio, their success in the portfolio, and absolutely nothing is off the table in respect of that review,&#8221; CEO Duncan Wanblad told reporters.



The review is expected to take around one year, he&nbsp;said.



Anglo&#8217;s shares&nbsp;was up 4.3% by 0830 GMT,&nbsp;as investors welcomed the plan.



The London-listed miner&#8217;s 2023 profit attributable to shareholders fell to $283 million from $4.5 billion a year earlier.



Anglo declared a full-year shareholder payout of $0.96 per share, totalling $500 million, down from $1.98.



Net debt swelled to $10.6 billion from $6.9 billion, slightly&nbsp;below&nbsp;the&nbsp;$10.93 billion&nbsp;expected by analysts.



The global miner, which also produces copper,&nbsp;platinum group metals (PGMs), iron oreand steelmaking coal, joined most of its rivals in reporting lower full-year earnings and shareholder dividends. But cuts at some of its businesses were more extreme.



Both its South African unit Kumba Iron OreKIOJ.J and Anglo American PlatinumAMSJ.J this week announced plans to cut more than 4,000 jobs and review agreements with some 780 contractors.



&#8220;In terms of cycle timing, the two assets that are dragging the portfolio today are the PGMs and diamonds businesses,&#8221; Wanblad said.



&#8220;To make any short-term decisions, you have to be absolutely certain that there had been a structural change in either of those markets or those businesses for us to want to do something very drastic with them,&#8221; he added.



Anglo had already announced $1.8 billionin spending cuts by 2026 after logging a $1.7 billion writedown on its project to produce fertiliser nutrients in Britain.



&#8220;The company-specific turnaround story, which could include changes to the portfolio or bringing in a partner for Woodsmith, is compelling,&#8221; Jefferies analysts wrote in a note.



(Reporting by Clara Denina and Felix Njini; editing by David Goodman and Jason Neely and Miral Fahmy)

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

Anglo American launches asset review after writedowns, profit plunge

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-820x547.jpg" alt="" class="wp-image-421904" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An Eskom sign sits on the exterior of the Eskom Holdings SOC Ltd. headquarters, South Africas state-owned electricity utility at Megawatt Park in Sandton, near Johannesburg, South Africa, on Wednesday, Nov. 11, 2015. A plan to reform state-owned power company Eskom Holdings SOC Ltd. and bring South Africa and its economy out of the dark is starting to show results, according to Chief Executive Officer Brian Molefe. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Feb 21 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s power sector will require increased private sector investment as debt-ridden utility Eskom implements structural reforms and builds critical new infrastructure, the company&#8217;s chairman told Reuters.



Private sector involvement in the power sector is a politically sensitive subject as South Africa prepares for elections in May, and the chairman made clear state-owned Eskom would not be moving towards privatisation.



&#8220;Private sector participation, yes, but the asset is going to end up with the government,&#8221; Mteto Nyati, the chairman of Eskom&#8217;s board of directors, said in an interview.



Africa&#8217;s most industrialised nation is weathering its worst power crisis on record, necessitating daily scheduled blackouts that have disrupted economic activity and crippled growth as Eskom battles to keep its ageing fleet of coal-fired power plants operational.



The government is working to add generating capacity, largely through deals with private companies operating solar and wind projects.



However, Nyati said the capacity to connect those new projects to the national grid was limited by available transmission capacity.



&#8220;We probably need close to 350 billion rand ($18.61 billion) over the next 10 years to build the transmission infrastructure. We do not have, from our own operations, the capacity to fund that,&#8221; he said.



Nyati said Eskom had the finances to fund the first three years of its transmission expansion plan.



Beyond that, it would need private investment, he said, adding the board was considering the kind of build, operate, transfer models that had already been used to construct highways and communications networks.



Under a reform plan announced by President Cyril Ramaphosa in 2019, Eskom will be unbundled into three companies that will separately manage electricity generation, transmission and distribution.



The transmission unit will be operational this year, Nyati said, with the new distribution entity to follow suit in 2025.



In future, he predicted Eskom&#8217;s generating company would be the sole provider of the baseload electricity required to keep the grid running, but with independent power projects increasingly involved in adding new generating capacity.



A government planning document released for public comment last month called for a massive programme of power plant construction to ensure adequate electricity supply to 2050.



($1 = 18.8082 rand)



(Reporting by Joe Bavier; editing by Barbara Lewis)

Eskom Holdings SOC Ltd Chief Executive Officer Brian Molefe Interview

South Africa’s power sector needs more private investment, Eskom chair says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2024-02-21T123154Z_1_LYNXNPEK1K0GH_RTROPTP_3_SAFRICA-ECONOMY-BUDGET.jpg" alt="" class="wp-image-458455" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2024-02-21T123154Z_1_LYNXNPEK1K0GH_RTROPTP_3_SAFRICA-ECONOMY-BUDGET.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2024-02-21T123154Z_1_LYNXNPEK1K0GH_RTROPTP_3_SAFRICA-ECONOMY-BUDGET-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2024-02-21T123154Z_1_LYNXNPEK1K0GH_RTROPTP_3_SAFRICA-ECONOMY-BUDGET-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2024-02-21T123154Z_1_LYNXNPEK1K0GH_RTROPTP_3_SAFRICA-ECONOMY-BUDGET-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana speaks during his 2024 budget speech in Cape Town, South Africa, February 21, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



CAPE TOWN, Feb 21 (Reuters) &#8211; South Africa&#8217;s government will draw down 150 billion rand ($7.93 billion) over the next three years from a central bank-administered contingency account to limit borrowing, the National Treasury said on Wednesday.



Africa&#8217;s most industrialised economy has barely grown in more than a decade, with GDP growth averaging 0.8% since 2012. Weak revenue collection has seen debt levels rise, with debt-servicing costs consuming a greater share of the national budget.



The bleak economic backdrop is looming large over a general election due on May 29 that could see the governing African National Congress (ANC) party lose its parliamentary majority for the first time in 30 years.



The Treasury said in the 2024 budget that it was able to tap the Gold and Foreign Exchange Contingency Reserve Account (GFECRA) &#8211; which had a balance of 507.3 billion rand in January 2024 &#8211; because it was &#8220;now larger than any plausible losses on foreign exchange reserves from rand appreciation&#8221;.



It said the government would receive distributions from the central bank of 100 billion rand in 2024/25, 25 billion rand in 2025/26 and 25 billion rand in 2026/27.



&#8220;This will be formalised through legislation. Government will use these funds to reduce borrowing, and consequently the growth in debt-service costs,&#8221; Treasury said.



&#8220;We are in effect replacing our standard more expensive borrowing with this draw-down of GFECRA,&#8221; said Treasury Director-General Duncan Pieterse, adding another 100 billion rand from the account would be allocated to the central bank to cover the expenses of the settlement.



As a result of the settlement, gross debt is projected to stabilise at 75.3% of GDP in 2025/26, lower than 77.7% of GDP seen in November.



The consolidated budget deficit in the current 2023/24 fiscal year is seen at 4.9% of GDP, unchanged from November&#8217;s forecast. The budget deficit is projected at 4.5% of GDP in the fiscal year starting April 2024 and 3.7% of GDP in 2025/26.



GDP growth is projected at 1.3% this year from estimated growth of 0.6% in 2023.



A major constraint on growth for more than a decade has been rolling power cuts that have hurt businesses of all sizes. State power utility Eskom in 2023 implemented its heaviest power outages ever.



South Africa also faces a logistics crisis as another state company, Transnet, struggles to provide adequate freight rail and port services because of equipment shortages and maintenance backlogs after years of under-investment. Rampant cable theft and vandalism have also damaged the network.



&#8220;The 2024 Budget strikes a careful balance between the urgent demands of national development and the sustainability of our public finances,&#8221; Treasury said.



($1 = 18.9092 rand) 



(Reporting by Kopano Gumbi and Wendell Roelf in Cape Town, Olivia Kumwenda-Mtambo and Nellie Peyton in Pretoria, and Anait Miridzhanian in Johannesburg Editing by Alexander Winning)

South Africa’s Finance Minister Godongwana presents 2024 budget in Cape Town

South Africa will tap contingency account to curb rising debt

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="500" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/IPIBPAZT5NJTLHOJHSQKY4RVUE-820x500.jpg" alt="" class="wp-image-458408" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/IPIBPAZT5NJTLHOJHSQKY4RVUE-820x500.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/IPIBPAZT5NJTLHOJHSQKY4RVUE-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/IPIBPAZT5NJTLHOJHSQKY4RVUE-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/IPIBPAZT5NJTLHOJHSQKY4RVUE-768x468.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/IPIBPAZT5NJTLHOJHSQKY4RVUE-1536x936.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/IPIBPAZT5NJTLHOJHSQKY4RVUE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A pit head is seen at the Tumela Mine , an Anglo American Platinum open pit mine located in the north-western part of South Africa in Thabazimbi, Limpopo on June 9,2016. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Feb 21 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s mines, which laid the foundation for the nation&#8217;s industrial growth well into the post-apartheid era, are cutting thousands of jobs and paying much less tax, muddying the domestic economic outlook months away from a crucial election.



The country&#8217;s biggest mining investors are halting plans to spend billions of rand on new projects in response to a slump in profits due to myriad local challenges and weakening prices of commodities such as platinum.



The layoffs and investment cuts come against a backdrop of high unemployment and weak economic growth that are looming large over the parliamentary vote, due in May and likely to see the governing African National Congress (ANC) lose its parliamentary majority for the first time in 30 years.



A rally in recent years in the price of commodities such as palladium, rhodium, coal and iron ore helped the likes of Anglo American Platinum&nbsp;AMSJ.J, Sibanye Stillwater&nbsp;SSWJ.J, Kumba Iron Ore&nbsp;KIOJ.J, Exxaro Resources&nbsp;EXXJ.J&nbsp;make windfall returns &#8211; allowing them to partly paper over domestic constraints including power cuts, a poor rail network and crime.



But with prices plummeting since last year, companies are in restructuring mode and cutting jobs.



&#8220;The challenge is now just to be able to operate, to be able to produce on a continuous basis,&#8221; said Claude Baissac, the CEO for Eunomix Research.



&#8220;Unless there is a fundamental change of policy and state capacity, we are going to end up with a marginal mining industry, providing marginal jobs.&#8221;



The mining sector&#8217;s contribution to South Africa&#8217;s gross domestic product stood at 6.2% last year from 7.3% in 2022 and 8.3% a decade earlier, according to Minerals Council South Africa, an industry lobby group. The sector employs about 477,000 people.



<h2 class="wp-block-heading" id="h-loss-making">LOSS MAKING</h2>



Anglo American&#8217;s AAL.Lplatinum and iron ore units in South Africa this week announced plans to cut more than 4,000 jobs and review agreements with a combined 780 contractors.



The restructuring, which includes postponing spending plans at some platinum shafts and closing a metals processing plant, aims to save Anglo 13 billion rand ($687 million).



Some 15 of South Africa&#8217;s biggest mining companies, including Amplats, Kumba and Glencore, contributed 110 billion rand in taxes and royalties in 2021, the bulk of about 360 billion rand in corporate tax collected by the treasury, according to RMB Morgan Stanley analysts.



The analysts forecast that amount halved in 2023.



Sibanye, which is South Africa&#8217;s top employer in the mining sector, plans to cut about 4,000 jobs at its platinum mines. Smaller platinum producers and some coal producers have also announced job cuts.



About half of the country&#8217;s platinum mines, some of which are the world&#8217;s deepest and costly to operate, are loss-making at current prices, said Impala Platinum&nbsp;IMPJ.J&nbsp;spokesperson Johan Theron.



&#8220;That means if nothing changes (in terms of prices), more than 50% of the industry will disappear in some shape or form over time,&#8221; he said. &#8220;Nothing is sustainable that is fundamentally loss-making.&#8221; Impala has said it may cut jobs and last year asked workers to take voluntary exit packages.



<h2 class="wp-block-heading" id="h-rail-crisis">RAIL CRISIS</h2>



South Africa&#8217;s 2023 coal exports hit the lowest level since 1992 because of the dire state of its railway network, operated by state group Transnet and hampered by a lack of wagons and spare parts, cable thefts and inadequate maintenance. For a while companies stockpiled their commodities hoping the situation would improve, but more recently they have been scaling down production and cutting jobs to cushion losses.



Anglo American&#8217;s Kumba, Africa&#8217;s top iron ore miner, has cut mining output for the next three years until rail capacity improves, CEO Mpumi Zikalala said on Tuesday. Kumba had about 7 million tons of the steel-making ingredient stockpiled at its mines as of December.



&#8220;Clearly, for as long as there is no immediate solution to the electricity crisis, and rail and port infrastructure challenges, we will continue to lose jobs,&#8221; said the National Union of Mineworkers, one of South Africa&#8217;s biggest and most powerful trade unions which was once led by Cyril Ramaphosa, South Africa&#8217;s current president.



($1 = 18.9349 rand)



(Editing by Olivia Kumwenda-Mtambo, Silvia Aloisi and David Evans)

FILE PHOTO: A pit head is seen at the Tumela Mine in Thabazimbi

In election year, South African mines bleed cash, jobs

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



Feb 21 (Reuters)&nbsp;&#8211;&nbsp;A gauge of emerging market stocks recovered to levels last seen at the start of the year on Wednesday, boosted by strong gains in Chinese equities, while the South African rand was flat ahead of a pre-election budget speech.



As of 0905 GMT, MSCI&#8217;s gauge for emerging market stocks&nbsp;.MSCIEF&nbsp;rose 0.1%, briefly touching a near seven-month high, buoyed by advances in Chinese shares.



China blue-chips .CSI300 closed 1.4% higher, its seventh straight day of gains, while equities in Shanghai .SSEC advanced 1.0% as investors took heart over policymakers&#8217; efforts to boost market confidence.



China&#8217;s stock exchanges said major quant fund Lingjun Investment had broken rules on orderly trading and barred it from buying and selling for three days, as part of wider regulatory efforts to revive market confidence.



The South African rand&nbsp;ZAR=&nbsp;edged 0.1% lower to 18.91 per dollar ahead of the 2024 budget speech by Finance Minister Enoch Godongwana at 1200 GMT.



&#8220;The challenge for South Africa&#8217;s finance minister will be seeking out pre-election giveaways while continuing to show that South Africa&#8217;s debt-to-GDP trajectory will be stabilising at around 78% in 2025/26 &#8230; that will be a challenging task given weak growth,&#8221; Chris Turner, global head of markets at ING wrote in a note.



Separately, South Africa&#8217;s headline consumer inflation quickened to 5.3% year-on-year in January from 5.1% in December.



Currencies in emerging Europe traded in a tight range owing to a lack of catalysts, with Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;tipping 0.4% lower against the euro.



Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;eased 0.1%, while the Czech crown&nbsp;EURCZK=&nbsp;was pinned at 21-month lows, trading at 25.393 per euro. A broader index of EM currencies&nbsp;.MIEM00000CUS&nbsp;was flat.



The Romanian leu&nbsp;EURRON=&nbsp;was flat at 4.974 per euro, while stocks in Bucharest&nbsp;.BETI&nbsp;gained 0.6% ahead of minutes from the Romanian central bank&#8217;s last policy meeting on Friday.



Later in the day, minutes from the Federal Reserve&#8217;s latest policy meeting would be eyed, as global markets re-assess the timing of interest rate cuts following stubbornly-high inflation data in the world&#8217;s biggest economy last week.



Elsewhere in emerging markets, Pakistan&#8217;s sovereign dollar bonds jumped after two major political parties said late on Tuesday they had reached an agreement to form a coalition government.



HIGHLIGHTS:



** Bank Indonesia holds rates, keeps tips for cut in second half



** Turkish consumer confidence slips in February, official data shows



** South Africa to hold national and provincial elections on May 29



(Reporting by Shashwat Chauhan in Bengaluru; Editing by Sharon Singleton)

Illustration photo of South African rand

Stocks advance on China boost, South Africa’s rand flat ahead of budget speech

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="527" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-820x527.jpg" alt="" class="wp-image-458083" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-820x527.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-768x494.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-1536x988.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Job seekers wait beside a road for casual work offered by passing motorists in Eikenhof, south of Johannesburg, South Africa, November 20, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



PRETORIA, Feb 20 (Reuters) &#8211; South Africa&#8217;s unemployment rate rose in the fourth quarter of last year, bucking a trend where jobs tend to be added around the holiday season as a labour market recovery from the COVID-19 pandemic ground to a halt.



Analysts said the rise in the official unemployment rate to 32.1% from 31.9% in the third quarter painted a dismal picture months before the country is due to hold national and provincial elections.



The rand extended losses on the data in cautious trade before Wednesday&#8217;s 2024 budget.



A presentation by the statistics agency showed community and social services, construction, agriculture and trade sectors contributed to the unemployment increase and that the fourth quarter followed eight consecutive quarters of job gains.



The head of labour statistics at Statistics South Africa, Desiree Manamela, said the drop in employment in the trade sector in the final quarter of 2023 was unusual.



&#8220;In previous periods we saw employment being created and mainly because of what happens in trade during the festive season,&#8221; she said.



High levels of unemployment and weak economic growth are perennial hot-button issues at the polls, denting support for the governing African National Congress (ANC) in recent elections and boosting opposition parties.



Analysts widely expect the ANC will lose its parliamentary majority for the first time since it came to power at the end of apartheid three decades ago.



President Cyril Ramaphosa, the ANC&#8217;s leader, is expected to announce the election date this week.



In particular the ANC has struggled to win over younger voters, who continue to experience the highest levels of unemployment and many of whom have not registered to vote.



Job cuts announced this week by mining companies Anglo American Platinum and Kumba Iron Ore suggest there could be further upward pressure on the unemployment rate in 2024. 



(Gumbi reported from Pretoria and Miridzhanian from Johannesburg Editing by Alexander Winning and Ros Russell)

Job seekers wait beside a road for casual work offered by passing motorists

South African labour market recovery stalls months before election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-820x551.jpg" alt="" class="wp-image-458037" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Men sit as they wait for a prospective employer for the day in Abuja, Nigeria December 19, 2018. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Feb 20 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s unemployment rate rose to 5% in the third quarter amid a cost-of-living crisis after the government scrapped a popular but costly petrol subsidy.



President Bola Tinubu has defended his two biggest reforms &#8211; the scrapping of the subsidy and foreign exchange controls &#8211; saying although this would lead to hardship in the short term, they are necessary to attract investment and boost government finances.



The unemployment rate rose from 4.2% in the previous quarter, according to data released by the National Bureau of Statistics late on Monday.



The jobless rate among young people aged 15-24 rose to 8.6% from 7.2%. Unemployment in the urban areas also rose marginally to 6% from 5.9% in the previous quarter.



Nigeria, Africa&#8217;s most populous nation of more than 200 million people, has been dogged by high unemployment for decades due to a rapid population rise that has outpaced economic growth.



But the jobless rate has crashed from a record 33% in the fourth quarter of 2020 after the government revised the methodology for computing the data in early 2023.



Still, underemployment persists with 87% self-employed. Only 12.7% were in wage employment during the period.



The informal employment rate, which measures the proportion of workers in the grey economy, was little changed at 92.3%, according to the NBS, while the workforce participation also fell slightly to 79.5% from 80.4% in the second quarter.



(Reporting by Elisha Bala-Gbogbo; Editing by Shri Navaratnam)

Men sit as they wait for a prospective employer for the day in Abuja

Nigeria’s Q3 jobless rate rises to 5% as impact of reforms takes effect

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ZGPJZZEXRJN53GYUBLKQZV43IA-820x543.jpg" alt="" class="wp-image-419647" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ZGPJZZEXRJN53GYUBLKQZV43IA-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ZGPJZZEXRJN53GYUBLKQZV43IA-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ZGPJZZEXRJN53GYUBLKQZV43IA-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ZGPJZZEXRJN53GYUBLKQZV43IA-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ZGPJZZEXRJN53GYUBLKQZV43IA-1536x1017.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ZGPJZZEXRJN53GYUBLKQZV43IA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man wearing a protective face mask walks outside a Shoprite store in Abuja, Nigeria August 3, 2020. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



JOHANNESBURG, Feb 19 (Reuters) &#8211; South Africa&#8217;s Shoprite has arranged 1.2 billion rand ($64 million) in vehicle and asset financing to support its supply chain expansion, Standard Bank said on Monday.



The retailer, with more than 2,900 stores across Africa has earmarked 8.5 billion rand partly to fund the next phase of its multi-year supply chain expansion project &#8220;to meet the next decade&#8217;s volume and logistics requirements.&#8221;



The company is adding just over 200,000 square metres in distribution centres over the next two years to support growth at 2,237 South African supermarkets.



The 1.2 billion rand funding is one of the largest vehicle and asset finance deals Standard Bank has arranged and in line with its Africa growth strategy, the lender said in a statement.



($1 = 18.8863 rand) 



(Reporting by Nqobile Dludla; editing by Jason Neely)

FILE PHOTO: Man wearing a protective face mask walks outside a Shoprite store in Abuja

Shoprite gets $64 mln supply chain expansion funding from Standard Bank

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-820x461.jpg" alt="" class="wp-image-457691" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An aerial view of the streets in the capital Niamey, Niger July 28, 2023. REUTERS/Souleymane Ag Anara</figcaption></figure>



DAKAR, Feb 19 (Reuters) &#8211; Niger last week missed a debt payment of 13.4 billion CFA francs ($22 million), the West African debt management agency said on Monday, bringing the total default to some $519 million since a July coup and its suspension from regional financial markets.



The West African monetary union debt management agency UMOA Titres said in a statement that Niger had failed to make a repayment of principal which was due on Feb. 16.



It noted that this occurred in the context of Niger being subject to sanctions imposed by the conference of heads of state and government of the West African Economic and Monetary Union (known by its French acronym, UEMOA).



&#8220;This situation is carefully monitored by UMOA-Titres in collaboration with the institutions concerned,&#8221; it said in a statement.



Niger has been suspended from the regional financial market, and the regional central bank by the Economic Community of West African States (ECOWAS) and UEMOA following a military coup in July that ousted President Mohamed Bazoum.



The country announced last month, along with neighbours Mali and Burkina Faso, that it was leaving ECOWAS with immediate effect. The regional bloc has a summit planned for Feb. 24 to discuss the situation.



($1 = 604.0000 CFA francs)



(Reporting by Nellie Peyton, editing by Ed Osmond)

Aerial view of the streets in Niamey

Niger misses debt payment, default up to almost $520 million

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-820x524.jpg" alt="" class="wp-image-418610" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A cow is seen near the AngloAmerican sign board outside the Mogalakwena platinum mine in Mokopane , north-western part of South Africa , Limpopo province May 18, 2016. REUTERS/Siphiwe Sibeko</figcaption></figure>



Feb 19 (Reuters)&nbsp;&#8211;&nbsp;Anglo American Platinum&nbsp;AMSJ.J&nbsp;said on Monday it&nbsp;plans to cut thousands of jobs at its mines in South Africa after its profits plunged by 71% last year.



The Anglo American&nbsp;AAL.Lunit said in a statement that it is embarking on a restructuring that could affect about&nbsp;3,700 jobs at its South African operations&nbsp;as it battles to keep the lid on costs amid&nbsp;falling platinum-group metals prices.



The miner is also reviewing contracts with 620 service providers, Amplats said.



The restructuring decision &#8220;has not been taken lightly&#8221; Craig Miller, the chief executive officer.



&#8220;It&#8217;s very much a last resort, not least as we recognise the unemployment challenges in South Africa and the socio-economic impact that the proposed restructuring may have on our people and the communities we are part of,&#8221; Miller said on a conference call.



The&nbsp;Johannesburg-based firm said its profit slumped to&nbsp;14 billion rand ($741.81 million) in the year ended Dec.31&nbsp;compared to&nbsp;48.8 billion rand the previous year. Amplats slashed its dividend by 81%, to 21.30 rand per share.



Still, Amplats said the payout is within its ratio of 40% of headline earnings.



The prices of palladium and rhodium fell 37% and 58%



in the year, respectively. Amplats&#8217; South African peers including Sibanye Stillwater have also announced plans to cut jobs due to the fall in metal prices.



Anglo American CEO Duncan Wanblad, told Reuters on Feb.5 that the group was considering deeper cost-cutting measures if market conditions did not improve. In December, Anglo American has announced sweeping cuts to save about $1.8 billion by 2026.



As part of the cost-cutting measures, Amplats is postponing planned projects at its Amandelbult complex, it said.



($1 = 18.8727 rand)



(Reporting by Prerna Bedi in Bengaluru and Nelson Banya in Harare; Additional reporting by Felix Njini; Editing by Savio D&#8217;Souza and Kim Coghill)

F5HEVWSA65JFHLPH4VWHRBUB5I

Amplats plans to cut thousands of jobs cuts after profit plunge

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-820x547.jpg" alt="" class="wp-image-451705" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast, January 30, 2020.REUTERS/Luc Gnago</figcaption></figure>



JOHANNESBURG, Feb 16 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s economic growth fell to 3.2% last year from 4.1% in 2022, the African Development Bank said on Friday, but it projected higher growth this year for all regions except central Africa.



The AfDB said political instability and China&#8217;s economic slowdown were compounding the shocks of COVID-19 and Russia&#8217;s war in Ukraine.



The final figure for 2023 was below the 3.4% growth the AfDB had forecast in November. It also cut its regional growth estimates for central and north Africa, amid a recession in oil producer Equatorial Guinea and the aftermath of devastating flooding in Libya.



&#8220;The shocks buffeting African economies since 2020 have damaged growth, with long-term implications,&#8221; the bank said in a report.



Despite the shocks buffeting the region, 15 African countries posted economic growth of more than 5% last year, the AfDB said, including Ethiopia, which is restructuring its external debt, Ivory Coast, Democratic Republic of Congo, Mauritius and Rwanda.



The bank forecast faster growth in all regions except for central Africa in 2024, with southern Africa seen as remaining the laggard at 2.2% compared with 5.7% in east Africa.



Southern Africa&#8217;s &#8220;sluggish performance reflects the continued economic stagnation in South Africa,&#8221; the bank said, with the region&#8217;s largest economy, which holds national elections this year, predicted to grow 1.1% in 2024, up from 0.8% last year.



&#8220;This underwhelming economic situation has aggravated the country&#8217;s persistently high unemployment, poverty, and inequality and prevented it from reaping democratic dividends in the 30 years since the end of White minority rule,&#8221; AfDB said.



Nigeria, West Africa&#8217;s largest economy, is set to grow 2.9% in 2024, up 0.4 percentage points from last year as a sharply devalued currency pushes up inflation, exacerbating a cost of living crisis.



In Egypt, high inflation and foreign exchange shortages are forecast to drag growth down to 3.7% this year, versus 4% in 2023.



(Reporting by Rachel Savage;)

The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast

Africa’s economic growth fell to 3.2% in 2023, says African Devt Bank

<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, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government said on Thursday that it would buy back more than $1.4 billion of its $2 billion international bond maturing in June, announcing the results of a tender offer it launched last week.



The East African country has been on the radar of investors because they feared it might not be able to repay due to its strained public finances.



This week Kenya sold a new $1.5 billion Eurobond at great cost to fund the buyback of a large portion of the $2 billion bond.



The government said in a regulatory notice that it would buy $1.443 billion in aggregate principal amount of the bond, slightly more than the maximum tender offer it had announced on Tuesday.



It will buy investors&#8217; holdings back at par, or face value.



An accrued interest payment will be paid in addition to the purchase price, the notice said.



Confidence that the Eurobond would be repaid has lifted the local shilling currency KES= in recent days, helping it recover to its strongest level against the dollar since June 2023 on Thursday.



However the double-digit yield Kenya was forced to pay on the $1.5 billion bond sold this week is an indication that it is still seen as risky by investors.



The pressure on the Kenyan government&#8217;s finances has forced it to try to squeeze every shilling it can from taxpayers, angering voters who had supported the current government on the premise it would lower the cost of living.



But it benefits from international backing, including from the International Monetary Fund, which boosted its support programme by $941 million in January.



(Reporting by George Obulutsa and Alexander Winning; Additional reporting by Rachel Savage; Editing by Kirsten Donovan, Andrew Heavens and Alex Richardson)

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Niger misses debt payment, default up to almost $520 million

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Reuters

WTO meeting seeks modest outcomes, with global trade at ‘critical juncture’

Pick n Pay fundraising seen giving grocer time to fix core business

Sibanye reduces planned job cuts after deferring shaft closure

Europe, Africa oil markets tighten, lending support to futures

Mondi says customers reluctant to switch to sustainable packaging on cost concerns

Anglo American launches asset review after writedowns, profit plunge

South Africa’s power sector needs more private investment, Eskom chair says

South Africa will tap contingency account to curb rising debt

In election year, South African mines bleed cash, jobs

Stocks advance on China boost, South Africa’s rand flat ahead of budget speech

South African labour market recovery stalls months before election

Nigeria’s Q3 jobless rate rises to 5% as impact of reforms takes effect

Shoprite gets $64 mln supply chain expansion funding from Standard Bank

Niger misses debt payment, default up to almost $520 million

Amplats plans to cut thousands of jobs cuts after profit plunge

Africa’s economic growth fell to 3.2% in 2023, says African Devt Bank

Kenya to buy back over $1.4 bln of bond that had unnerved investors

News Tips

Advertise With Us

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