<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="566" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-820x566.jpg" alt="" class="wp-image-454325" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-820x566.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-768x531.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-1536x1061.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African President Cyril Ramaphosa delivers his 2024 state of the nation address in Cape Town, South Africa, February 8, 2024. REUTERS/Esa Alexander/Pool</figcaption></figure>



JOHANNESBURG, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s President Cyril Ramaphosa used a major speech in parliament on Thursday to play up his party&#8217;s achievements over the last 30 years, but gave little detail about his plans to address the country&#8217;s current major challenges.



Ramaphosa&#8217;s African National Congress (ANC) party, which has governed since Nelson Mandela led it to victory in the first post-apartheid democratic election in 1994, is heading into its most competitive campaign yet.



Many polls indicate it will lose its absolute parliamentary majority in a vote expected to be held between May and August, forcing it to choose a coalition party to hold onto power.



South Africa is facing record power shortages and a logistics crisis at its rail and port operator Transnet which have strangled business activity and slowed growth in Africa&#8217;s most industrialised economy.



In his annual State of the Nation Address, Ramaphosa acknowledged these problems. But he laid out few new solutions, and was occasionally met with jeers from lawmakers.



&#8220;Over the last three decades &#8230; we have transformed the lives of millions of South Africans, providing the necessities of life and creating opportunities that never existed before,&#8221; Ramaphosa said.



He portrayed the ANC as having guided South Africa safely through challenges such as the COVID-19 pandemic and rampant corruption, and said the last five years had been a time of &#8220;rebuilding and renewal&#8221;.



The ANC came to power as the liberation movement that fought racist rule in South Africa. But many of today&#8217;s young voters were born after freedom was won and have grown up instead in an era marked by disappointment and disillusionment with the country&#8217;s leaders.



South Africa remains among the most unequal countries in the world with a gaping wealth disparity. Repeated corruption scandals have tarnished the party and undermined its moral authority in the eyes of many. The unemployment rate is at its highest ever, with more than 30% of South Africans out of work.



Many of South Africa&#8217;s economic woes stem from years of mismanagement and under-investment in state-owned enterprises, which Ramaphosa pledged to reform when he took office in 2018.



&#8220;The effects of state capture continue to be felt across society, from the shortage of freight locomotives to crumbling public services, from the poor performance of our power stations to failed development projects,&#8221; said Ramaphosa.



State capture is a term for the kind of systemic political corruption that defined the era of Ramaphosa&#8217;s predecessor Jacob Zuma. But some lawmakers jeered when he touted his corruption-fighting record. Ramaphosa survived his own corruption scandal in 2022.



In one bit of policy news, he said the state would extend and improve social grants it introduced during the COVID pandemic, without giving further details.



John Steenhuisen, the leader of the main opposition Democratic Alliance party, called the speech &#8220;a laundry list of recycled projects and promises that have been made since 2018 that haven&#8217;t come to fruition.&#8221;



Analysts had predicted ahead of the address that it was unlikely to move markets.



&#8220;People know what the state of the nation is. It&#8217;s not good,&#8221; said Louw Nel, senior political analyst at Oxford Economics Africa.



(Additional reporting by Wendell Roelf in Cape Town; Editing by Joe Bavier and Daniel Wallis)

South African President Cyril Ramaphosa’s state of the nation address in Cape Town

South Africa’s Ramaphosa touts ANC history in state of nation address

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-820x538.jpg" alt="" class="wp-image-454107" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-1536x1008.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Trafigura logo is pictured in the company entrance in Geneva March 11, 2012. REUTERS/Denis Balibouse</figcaption></figure>



LUSAKA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;The United States will provide more funds for the construction of the Lobito Corridor, a rail link to export metals from Central Africa&#8217;s Copperbelt, including a link for Zambia, U.S. energy envoy Amos Hochstein said.



Washington has been supporting the project linking mineral-rich Democratic Republic of Congo (DRC) and Zambia to Lobito port in Angola. The link seeks to bypass logistics bottlenecks in South Africa that have held up copper and cobalt exports &#8211; metals vital to the energy transition away from fossil fuels.



In 2022, a consortium led by global commodities giant Trafigura, Portugal&#8217;s Mota-Engil&nbsp;MOTA.LS&nbsp;and Vecturis SA of Belgium was awarded a 30-year concession for railway services and support logistics on the Lobito Corridor. The consortium plans to spend $455 million in Angola and $100 million in the DRC on equipment, operations and infrastructure maintenance.



Additional funding is required to extend the 1,700 km (1,060 miles) line into Zambia in the second phase.



&#8220;We have committed to finance $250 million for the Angola phase one. I expect that we will commit additional resources in the same range for the second phase,&#8221; Hochstein said late Wednesday in an interview ahead of an investment forum on the project in Zambia.



The first phase involved upgrading the rail line on the Angolan side, and the second phase will involve building a new multibillion-dollar rail through Zambia and beyond, he said.



&#8220;I expect that we will start seeing some significant volumes using the rail by June-July,&#8221; he said, without giving figures.



The U.S. and its partners have also mobilised close to $1 billion to expand the Lobito Corridor by developing a new 800 km (500 mile) rail line to further connect Zambia to the network, he said during the opening of the investment forum on Thursday.



&#8220;With the Africa Finance Corporation (AFC) as the private-sector lead developing the project, we aim to break ground in 2026 and have an operational rail between eastern Angola across northwestern Zambia by 2028,&#8221; he said.



The AFC had financing commitments from the U.S., the European Union and African Development Bank (AfDB), which would bring in extra private sector financing, he said.



Hochstein welcomed the announcement on Wednesday by mining firm Ivanhoe Mines&nbsp;IVN.TO&nbsp;that it had signed up to use the rail line for its copper exports from the DRC.



&#8220;That&#8217;s critically important because it shows commitment by the private sector to this project. It will also make financing cheaper,&#8221; Hochstein said.



He also said the U.S. was contemplating other similar projects in Africa and elsewhere.



&#8220;Within Africa, I expect to have at least one more in the next year,&#8221; Hochstein said, without specifying where.



(Reporting by Chris Mfula; Editing by Nelson Banya and Mark Potter)

FILE PHOTO: Trafigura logo is pictured in the company entrance in Geneva

US to commit more funds to African rail link for metal exports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg" alt="" class="wp-image-454063" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-300x172.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-157x90.jpg 157w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-768x440.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-1536x879.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the capital city of Kampala in Uganda, July 4, 2016. REUTERS/James Akena</figcaption></figure>



KAMPALA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s central bank raised 1.3 trillion shillings ($339 million) in a rare private placement Treasury bond auction this week, against a target of 1.5 trillion shillings, results of the auction showed on Thursday.



The private placement bond auction was the first since June 2022.



The bank typically sells government bonds monthly through open auctions, but in 2020 began selling some bonds using private placements where it invites only specific banks to take part in the offer as opposed to customary open auctions.



In this week&#8217;s auction, three-year, five-year, 10-year, 15-year and 20-year Treasury bonds were on offer and the central bank received bids worth 2.3 trillion shillings.



The debt notes are due to mature at various dates between 2026 and 2043.



Eight banks were invited to participate in the auction, including local units of global lenders Standard Bank, Standard Chartered, Citibank and Absa.



($1 = 3,830.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Editing by Bhargav Acharya and Mark Potter)

A general view shows the capital city of Kampala in Uganda

Uganda’s central bank nets $339 mln in rare private placement debt auction

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg" alt="" class="wp-image-454022" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man shows off Zimbabwean currency notes outside a grocery store in Harare, Zimbabwe, March 17, 2022. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s central bank and finance ministry are working on measures to stabilise the local currency, the central bank governor said.



The Zimbabwean dollar has fallen about 40% since the start of the year, hurt by increased foreign-currency demand from civil servants being paid December bonuses and weaker commodity prices denting inflows.



That has caused inflation to accelerate in an economy still scarred by memories of hyperinflation under longtime leader Robert Mugabe.



Earlier this week President Emmerson Mnangagwa said authorities were looking to introduce a &#8220;structured currency&#8221;, without explaining how that would work.



&#8220;What His Excellency the President said is to provide forward guidance to the market on the thrust of the monetary policy statement that the Bank and Treasury are working on,&#8221; Reserve Bank of Zimbabwe Governor John Mangudya told Reuters late on Wednesday.



&#8220;The President would like to see durable stability of prices and the exchange rate in the economy.&#8221;



&#8220;Currently the economy is growing in an inflationary environment, an environment that the Bank needs to appropriately attend to,&#8221; the central bank governor added.



He did not say when the monetary policy statement with the new measures would be released.



The government relaunched a local currency in 2019 after a decade of dollarisation, but it rapidly lost value and authorities reauthorised the use of foreign currencies in domestic transactions soon after.



Independent economist Prosper Chitambara said people had little faith in the Zimbabwean dollar.



Chitambara said: &#8220;Economic agents have lost confidence in the local currency and that spurs demand for the U.S. dollar. Restoration of confidence in the currency will take time.&#8221;



(Reporting by Nyasha Chingono; Editing by Alexander Winning and Jan Harvey)

FILE PHOTO: Zimbabwe’s poor feel the impact of far away Ukraine war

Zimbabwe working on measures to stabilise currency, central bank governor 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/2024/02/GettyImages-1684034006-820x547.jpg" alt="" class="wp-image-453994" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NEW YORK, NEW YORK &#8211; SEPTEMBER 23: Ethiopia&#8217;s Deputy Prime Minister Demeke Mekonnen Hassen speaks during the United Nations General Assembly (UNGA) at the United Nations headquarters on September 23, 2023 in New York City. Heads of state and governments from at least 145 countries are gathered for the 78th UNGA session amid the ongoing war in Ukraine and natural disasters such as earthquakes, floods and fires around the globe. (Photo by David Dee Delgado/Getty Images)</figcaption></figure>



ADDIS ABABA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s parliament on Thursday approved the appointment of intelligence service chief Temesgen Tiruneh as deputy prime minister, replacing Demeke Mekonnen, who had served in the role for 11 years, the government said.



In addition, parliament accepted the nomination of Taye Atske Selassie, a former ambassador to the United Nations, as foreign minister. Demeke had also served as foreign minister since 2020.



Temesgen, who has coordinated the government&#8217;s response to a conflict that broke out last year in the Amhara region, was elected in late January to succeed Demeke as a vice president of the ruling Prosperity Party.



A vice president of the party typically serves as deputy prime minister.



Ethiopia&#8217;s national security adviser Redwan Hussein was chosen to replace Temesgen as head of the National Intelligence and Security Service (NISS) &#8211; Ethiopia&#8217;s top spy agency.



A long-time ally of Abiy, Redwan was also the lead government negotiator during the peace deal brokered in Pretoria to end the civil war in the Tigray region in 2022.



His previous experience includes serving as a state minister at the foreign affairs ministry, and also as Ethiopia&#8217;s ambassador to Eritrea.



Demeke has been a face of continuity during a turbulent period in Ethiopian politics. He was appointed deputy prime minister after the death of longtime Prime Minister Meles Zenawi in 2012 and survived a reorganisation of the ruling party after Abiy came to power in 2018.



Abiy appointed Demeke as foreign minister days after civil war broke out in November 2020 in the northern Tigray region. The conflict lasted two years and killed tens of thousands of people.



Mekdes Daba, a former World Health Organization official, has also been appointed to replace Lia Tadesse as health minister, the Ethiopian Broadcasting Corporation said.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa and Bhargav Acharya; Editing by Aaron Ross and Andrew Cawthorne)

World Leaders Gather In New York For The United Nations General Assembly

Ethiopia intelligence head Temesgen approved as deputy prime minister

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-820x547.jpg" alt="" class="wp-image-424839" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African President Cyril Ramaphosa and Singapore Prime Minister Lee Hsien Loong (not pictured) attend a media briefing and signing ceremony at Tuynhuys to strengthen the bilateral relationship between the two countries in Cape Town, South Africa, May 16, 2023. REUTERS/Esa Alexander</figcaption></figure>



JOHANNESBURG, Feb 7 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa will announce the date of this year&#8217;s general election later this month, his spokesman said on Wednesday.



&#8220;If you count from tomorrow, the president will announce the election date within 15 days,&#8221; Ramaphosa&#8217;s spokesperson Vincent Magwenya told reporters.



Political analysts say record power cuts, poor service delivery and high levels of unemployment are likely to hurt the governing African National Congress (ANC) party that Ramaphosa, 71, leads, threatening the loss of its parliamentary majority for the first time since the end of apartheid in 1994.



Ramaphosa, who has struggled to rekindle economic growth since taking over from his scandal-plagued predecessor Jacob Zuma in 2018, will seek a second term as president.



Voters will elect a new National Assembly as well as the provincial legislature in each of the country&#8217;s nine provinces.



The National Assembly elects the president after the vote.



(Reporting by Anait Miridzhanian; Editing by Alexander Winning, Kirsten Donovan)

South African President Ramaphosa hosts Singapore PM Hsien Loong in Cape Town

South Africa’s Ramaphosa to announce election date this month – spokesman

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MC7FDCOQBBLITG5FO5FSMOK76M.jpg" alt="" class="wp-image-422361" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MC7FDCOQBBLITG5FO5FSMOK76M.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MC7FDCOQBBLITG5FO5FSMOK76M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MC7FDCOQBBLITG5FO5FSMOK76M-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A delegate stands near a banner during the 55th National Conference of the ruling African National Congress (ANC) at the Nasrec Expo Centre in Johannesburg, South Africa December 18, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Feb 7 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s African National Congress (ANC) party has a 75% chance of losing its majority in this year&#8217;s national elections, slated to be the most closely contested in the country&#8217;s democratic history, Standard Bank&#8217;s chief economist said on Wednesday.



The ANC has a 65% probability of getting between 45% and 50% of the vote and a 10% chance of falling below that, Goolam Ballim told a press briefing at which he set out the bank&#8217;s &#8220;early&#8221; election forecasts. He did not explain its methodology.



Cyril Ramaphosa is seeking a second term as president as his party risks losing its parliamentary majority for the first time since Nelson Mandela&#8217;s victory in 1994 ushered in democracy after decades of apartheid.



&#8220;(A) 45-50% (vote share) would intimate that the president will likely secure a second term,&#8221; Ballim said. &#8220;We don&#8217;t suspect that the election will derail&#8230; the reform agenda.&#8221;



Standard Bank&#8217;s forecast has the main opposition Democratic Alliance at 22.5%, the left-wing Economic Freedom Fighters at 11%, the KwaZulu-Natal-centred Inkatha Freedom Party at 6% and the right wing Freedom Front Plus at 2.5%.



Rolling power cuts known as loadshedding will start to ease this year, with GDP growth forecast to pick up from 0.6% in 2023 to 1.2% this year, Ballim said.



The electricity shortages will still crimp growth in 2024 by up to 1 percentage point, Ballim said, while problems at state-owned rail and ports firm Transnet that have limited exports, will take 0.5 to 1 percentage point off.



(Reporting by Rachel Savage and Nqobile Dludla, Editing by Angus MacSwan)

South Africa’s ANC gathers to vote on new leader

South Africa’s ANC has 75% chance of losing majority – Standard Bank

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



Feb 7(Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks pushed higher on Wednesday, as Chinese markets extended their rebound on hopes of further support from authorities, while Argentinian assets were in focus after a setback for President Javier Milei&#8217;s economic reform bill.



MSCI&#8217;s index for emerging market equities&nbsp;.MSCIEF&nbsp;was up 0.3% by 0946 GMT, after hitting its highest level since Jan. 3 earlier in the session.



China&#8217;s blue-chip CSI 300 Index&nbsp;.CSI300&nbsp;rose 1% while the Shanghai Composite index&nbsp;.SSEC&nbsp;ended up 1.4%, both pulling further away from recent five-year lows.



A raft of steps announced by Chinese authorities, including curbs on short-selling, have helped steady the country&#8217;s sagging stock markets in the last few sessions and hopes for more powerful market rescue measures have increased.



South Korea&#8217;s benchmark KOSPI&nbsp;.KS11&nbsp;index also jumped 1.3%.



Meanwhile, investors were watching Argentinian assets after a major economic reform package championed by libertarian President Javier Milei was set to be sent back to a legislative committee for consideration, marking a major setback for the bill.



Argentina&#8217;s dollar-denominated bond maturing in 2041&nbsp;040114HV5=1M&nbsp;fell 0.61 cents to trade at 33.683 cents on the dollar.



&#8220;We think the catalyst for the bonds will be progress on (or hurdles to) the legislative agenda and the signals it sends over popular support for Milei&#8217;s adjustment plan. Implementation risks will then follow,&#8221; analysts at Tellimer said in a note.



A basket of EM currencies&nbsp;.MIEM0000CUS&nbsp;was flat while the dollar&nbsp;=USD&nbsp;retreated from a three-month high.



Risk-sensitive EM currencies have been under pressure in 2024 as hawkish remarks from policymakers have led traders to dial back bets of early rate cuts from the Federal Reserve.



Most regional currencies will struggle to recoup this year&#8217;s losses against the dollar in coming months, a Reuters poll of FX strategists found.



Poland&#8217;s monetary policy decision is also on tap, with the central bank expected to keep its main interest rate on hold at 5.75% at 1300 GMT.



The Polish zloty&nbsp;EURPLN=&nbsp;was up 0.2% versus the euro while stocks in Warsaw&nbsp;.WIG&nbsp;advanced 0.3%.



Elsewhere, Sri Lanka expects to implement a debt restructuring framework within the first six months of 2024, the country&#8217;s president said on Wednesday.



(Reporting by Amruta Khandekar; editing by Christina Fincher)

World map with charts and graphs as symbols of global finance

Stocks nudge higher on China stimulus signals, Argentina in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg" alt="" class="wp-image-426709" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE.jpg 1457w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan President Yoweri Museveni attends a session of the Russia-Africa summit in Saint Petersburg, Russia, July 28, 2023. Mikhail Tereshchenko/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



KAMPALA, Feb 7 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s public debt stock is seen hitting 49.2% of gross domestic product (GDP) by the end of the current fiscal year ending in June, up from 46.9% a year earlier, the finance ministry said.



The East African country&#8217;s debt levels have been rising due chiefly to government spending on public infrastructure.



The central bank has been among those warning that debt costs are increasingly crowding out priorities like education and health.



The finance ministry said in a report published late on Tuesday that the country faced &#8220;moderate risk of debt distress,&#8221; linked to slow growth in exports and debt-service costs eating up a growing chunk of revenues.



Last fiscal year Uganda used around a third of its tax revenues to service its public debt. As of June 2023, total domestic and external debt stood at $23.66 billion.



Ugandan President Yoweri Museveni&#8217;s government has taken on large credit lines, especially from China, to fund infrastructure projects like roads and power plants, which officials say are needed to fuel economic growth.



(Reporting by Elias Biryabarema; Editing by Alexander Winning and Sharon Singleton)

A session of the Russia-Africa summit in Saint Petersburg

Uganda says public debt stock to hit nearly 50% of GDP by June

<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 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s&nbsp;shilling exchange rate has overshot its equilibrium rate and there is scope for the central bank to support it, the central bank governor said on Wednesday.



The bank raised the benchmark lending rate KECBIR=ECI by 50 basis points to 13.0% on Tuesday, citing sticky inflation and lingering pressure on the local currency.



The shilling weakened more than 20% against the dollar last year and has fallen to more record lows this year. In the past, the central bank has said it has no preferred rate for the shilling and only intervenes to reduce volatility.



&#8220;It is my view now that the exchange rate has overshot the equilibrium rate. So there could be scope for central bank to support the exchange rate going forward,&#8221; Thugge said.



He added that the bank raising its key rate could also contribute to the shilling strengthening.



Thugge said the economy&nbsp;will likely expand at a slightly faster pace this year, helped by improved performance in agriculture and the services sector.



He added that the economy was forecast to grow 5.7% this year versus 5.6% last&nbsp;year. In&nbsp;December, the central bank had forecast the economy to grow 5.9% in 2024.



(Reporting by George Obulutsa; Editing by Jacqueline Wong, Christopher Cushing and Andrew Heavens)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya central bank governor: there is scope to support shilling

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1.jpeg" alt="" class="wp-image-410779" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption class="wp-element-caption">Transnet
Bloomberg | Bloomberg | Getty Images</figcaption></figure>



CAPE TOWN, Feb 6 (Reuters)&nbsp;&#8211;&nbsp;South African state-owned rail and port operator Transnet has told the government it needs more time and cannot meet deadlines beginning next month in a roadmap to address the country&#8217;s logistic problems, its acting chief executive said on Tuesday.



Transnet has struggled 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.



Exporters, including South Africa&#8217;s miners, say they have lost millions of dollars as a result with knock-on effects for the economy, but Transnet said trying to rush solutions would not help.



&#8220;We are currently in discussion with the National Treasury and the shareholder on some of the dates,&#8221; Transnet Acting CEO Michelle Phillips told Reuters on the sidelines of the Investing in African Mining Indaba in Cape Town.



&#8220;We have provided alternate dates because if you go to the logistics roadmap, there are a number of transactions with dates, a number of them speak to March of this year, it can&#8217;t be done by me and I don&#8217;t think we can do it as Transnet,&#8221; she said.



In December, the government approving funding for Transnet together with the Freight Logistics Roadmap that plans for greater private sector involvement in the country&#8217;s rail and port networks.



Its provisions also include the creation of a separate infrastructure management unit and a timeframe that envisages appointing an infrastructure manager by March 2024 and allowing requests from private players for rights to operate parts of the freight rail network from April.



The utility has yet to announce replacements after the group CEO and head of the flagship freight rail subsidiary left last October. The Transnet board chairman has said the vacancies could be filled by the end of this month.



Phillips said Transnet supported the proposed reforms but was concerned that if things were rushed &#8220;we are going to make mistakes&#8221;.



&#8220;We have engaged and they (shareholders) are considering our request. I would want to give them the space to consider,&#8221; she said.



&#8220;My focus really at this moment is to get operations at the right levels so that we can satisfy our customers, while at the same time working on the future,&#8221; she said.



(Editing by Nelson Banya and Barbara Lewis)

106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1

South Africa’s Transnet says logistic reforms cannot be rushed

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="806" height="600" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1.png" alt="" class="wp-image-417481" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1.png 806w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1-300x223.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1-121x90.png 121w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1-768x572.png 768w" sizes="auto, (max-width: 806px) 100vw, 806px" /></figure>



JOHANNESBURG, Feb 6 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s takeover panel said on Tuesday it was looking into MultiChoice Group&nbsp;MCGJ.J&nbsp;and Vivendi&#8217;s&nbsp;VIV.PA&nbsp;Canal Plus, after&nbsp;MultiChoice&nbsp;ended potential buyout talks with its top shareholder Canal Plus on Feb 5.



Canal Plus, a top shareholder in MultiChoice, had on Thursday offered 105 rand ($5.52) per share for every MultiChoice share it does not already own. It said the offer &#8211; worth 31.7 billion rand according to Reuters calculations &#8211; was a 40% premium to MultiChoice&#8217;s closing share price of 75 rand on Jan. 31.



The offer price was rejected by the continent&#8217;s biggest pay TV company, saying it significantly undervalued the group. MultiChoice said, however, it is open to talk to anyone about any deal so long as it is at a fair price.



Possibly anticipating a push back, Canal Plus, which as of Thursday held a 31.67% stake in MultiChoice, raised its stake to 35.01% following the deal&#8217;s announcement last week, just above the threshold that would require the company to make a mandatory offer to shareholders.



MultiChoice said on Monday it had requested the Takeover Regulation Panel to make a ruling as to whether a mandatory offer must be made.



&#8220;At the time of releasing this statement, the Panel is still engaging with MultiChoice and Canal+ to provide guidance and guidelines on how the matter is to be handled and addressed,&#8221; The Takeover Regulation Panel said in a statement.



It added that it was investigating various aspects of the current status of the matter.



The French media group was not immediately available to comment.



Shares in MultiChoice have jumped more than 20% since the offer was made, but it is still trading below the offer price, indicating a lack of investor confidence that the deal would go through.



($1 = 19.0158 rand)



(Reporting by Prerna Bedi and Chandini Monnappa in Bengaluru; Editing by Sonia Cheema and Louise Heavens)

Multichoice logo (1)

South Africa’s takeover panel reviewing Canal Plus’ attempt to buyout MultiChoice

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



LONDON, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;A new report has called for a radical global effort this year to help vulnerable countries fend off financial meltdown and climate change, including widespread debt relief and even a China-led version of the Brady Bond plan.



The report by the Boston University Global Development Policy Center warned that 62 developing economies, including most of Africa and Oceania, are already in a full-blown debt crisis or in immediate need of restructurings.



Last year&#8217;s surge in world interest rates combined with underwhelming post-pandemic economic recoveries and the costs of climate change mean a near record number of countries now spend at least 20% of their government revenues servicing their debt.



That is widely regarded as unsustainable.



Around 21 countries make half of those payments to multilateral development banks (MDBs) like the World Bank, said the report, while eight are in a similar situation with China, two to the Western &#8220;Paris Club&#8221; governments and two to their international bondholders.



&#8220;The world is facing a now or never moment,&#8221; the report published on Sunday said. &#8220;Immediate action is needed to curtail the intrinsically linked global debt and environmental crises&#8221;.



The call to arms comes just ahead of 2024&#8217;s first meeting next week of the &#8220;Global Sovereign Debt Roundtable&#8221;, a group co-chaired by the International Monetary Fund, the World Bank and the G20 Brazilian presidency and whose job it is to formulate better ways to resolve debt problems.



Boston University professor Kevin Gallagher said far more &#8220;ambition&#8221; was needed with the G20-led &#8220;Common Framework&#8221; default resolution programme, largely regarded as a flop since its creation a few years ago.



As well as speeding up debt restructurings, countries should also have an option to temporarily suspend debt payments before they plunge into default.



<h2 class="wp-block-heading" id="h-chinese-brady-bonds">CHINESE BRADY BONDS?</h2>



Meanwhile China&#8217;s increasing importance as a creditor to the developing world means it should consider spearheading a modern day version of the Brady Bond plan backed by the U.S. Treasury in the late 1980s to help resolve Latin American crises.



&#8220;The Chinese seem to be the most appropriate for a Brady Bond approach,&#8221; Gallagher said, explaining that like with Western banks in Latin America in the 1980s, China&#8217;s state-controlled banks often provide loans in troubled countries now.



&#8220;We need carrots and sticks,&#8221; Gallagher said. &#8220;We need to give these countries breathing room.&#8221;



The report also looked at risks coming from climate change.



Around 91 countries are above the global median for at least one of four categories: their climate change vulnerability, the need to reduce emissions to meet Paris Agreement targets and opportunities to protect precious land or coastal ecosystems.



Chad, Niger and Guinea-Bissau are all highly vulnerable to global warming, whereas Cabo Verde, the Solomon Islands and Papua New Guinea all have huge conservation opportunities.



The prospect of climate change doubter Donald Trump getting back into power in the United States after November elections is another reason why there is such urgency to provide debt relief now.



&#8220;Trump has shown (during his first term) he can withdraw from an international treaty, but it would be hard to dismantle something if it was at the G20 level,&#8221; Gallagher said. &#8220;That is why this is the year to lock this in.&#8221;



(Reporting by Marc Jones; Editing by Emelia Sithole-Matarise)

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

Vulnerable countries need debt relief ‘now or never’, new report warns

<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>



CAPE TOWN, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;Restructuring of South Africa&#8217;s platinum group metals (PGM) industry in response to rising costs and falling prices could result in between 4,000 and 7,000 job cuts, the country&#8217;s Minerals Council said on Monday.



South African PGM miners, home to around 70% of global mined platinum output, are discussing the need to restructure unprofitable production, the council said at the start of the Investing in African Mining Indaba conference in Cape Town.



The Minerals Council said the sector, largely dependent on automakers&#8217; use of PGMs to curb exhaust emissions from engines, faces &#8220;a great deal of uncertainty&#8221; as the world pivots towards electric vehicles.



Top global PGM producer South Africa has some of the world&#8217;s oldest and deepest platinum mines, which are expensive to operate, especially when metal prices are low.



The prices of palladium and platinum fell by 40% and 15% last year, respectively, mainly because of weak demand in China.



Electricity and labour costs account for most of PGM miners&#8217; total costs, the Minerals Council said in a statement.



&#8220;In light of this, various prominent PGM miners are restructuring their operations potentially impacting between 4,000 to 7,000 jobs,&#8221; it added.



Anglo American&#8217;s&nbsp;AAL.L&nbsp;CEO Duncan Wanblad told delegates at the Indaba that margins for mining companies facing declining ore grades and sharply increased input costs &#8220;evaporate quickly&#8221;.



&#8220;What matters is the industry&#8217;s and government&#8217;s ability to navigate these challenges to ensure that the industry does survive and prosper &#8211; yes with smaller direct workforces, and this is a reality that the industry is contending with right now,&#8221; he said in a speech at the Cape Town conference.



Anglo&#8217;s South African PGM unit Anglo American Platinum (Amplats)&nbsp;AMSJ.J, which employs over 20,000 workers in South Africa, is reviewing costs.



Anglo American as a whole aims to cut capital expenditure by $1.8 billion by 2026, after reporting lower profits and returns for the first half of the financial year.



Sibanye Stillwater SSWJ.J, South Africa&#8217;s biggest mining sector employer, has also said its planned restructuring could lead to the closure of four loss-making PGM shafts and the loss of 4,095 jobs.



Impala Platinum IMPJ.J said it was offering voluntary job cuts to workers at its South African operations.



(Reporting by Olivia Kumwenda-Mtambo; Writing by Nellie Peyton, Nelson Banya and Clara Denina; Editing by Alexander Smith, Veronica Brown and Barbara Lewis)

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

South African platinum industry could shed up to 7,000 jobs to cut costs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-820x573.jpg" alt="" class="wp-image-453236" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Nigerian naira notes in a market place as people struggle with the economic hardship and cashflow problems ahead of Nigeria&#8217;s Presidential elections, in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



LAGOS, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s second currency devaluation in less than a year and new forex rules suggest the central bank is gearing up to let the naira float freely, but a huge backlog of orders for dollars and low liquidity may stall reform momentum, investors and analysts said.



Foreign investors in particular will need more convincing that Africa&#8217;s biggest economy is finally ditching the controls that have for long distorted its currency market, making the country of 200 million people less attractive to foreign capital.



The official naira exchange rate last week plunged to as low as 1,531 per dollar from 900, well below black market levels, after the market regulator changed its closing rate calculation methodology, in a de facto devaluation. The official rate had been drifting towards parallel market levels as forex shortages funnelled demand to unofficial sources.



Also last week, the Central Bank of Nigeria (CBN) announced limits on how much banks can hold in foreign currencies and eased rules on international money transfer operators, allowing them to quote the naira at prevailing market rates.



&#8220;You could call this a turning point,&#8221; said Kyle Chapman, FX markets analyst at London-based Ballinger &amp; Co.



&#8220;Now that there is no longer a more favourable (exchange) rate, the lack of incentives to take part in the official markets may turn into a tipping point that sees a true free float emerge if the central bank does not intervene,&#8221; Chapman added.



Nigeria is struggling with a record amount of government debt, high unemployment and power shortages that have contributed to years of anaemic economic growth. Oil output is shrinking, and rampant insecurity means swathes of the countryside are outside government control.



In his first days in office last year, President Bola Tinubu scrapped a costly fuel subsidy and lifted some forex controls.



But the reform drive appeared to lose steam as the naira continued to weaken without central bank intervention.



Andrew Matheny, senior economist with Goldman Sachs, said the latest devaluation made the naira look &#8220;cheap.&#8221;



&#8220;This makes foreign portfolio inflows potentially appear attractive, however only in the circumstance that other aspects of monetary policy come together,&#8221; said Matheny.



These include ending financing the budget deficit through central bank overdrafts, which increases the money supply and helped propel inflation to 28.92% in December, the highest level in nearly three decades.



<h2 class="wp-block-heading" id="h-forex-backlog">FOREX BACKLOG</h2>



Years of forex controls have created pent-up demand for dollars while the country struggles to raise its production of oil, its single largest export earner.



Foreign currency shortages have created a large backlog of unpaid dollar transactions, which the CBN last year put at nearly $7 billion.



On Monday, CBN governor Yemi Cardoso told broadcaster Arise TV that $2.2 billion remained outstanding and that $2.4 billion would not be honoured after an audit found irregularities.



Goldman put the backlog at $12 billion, which has kept foreign investors away due to worries they will not be able to take their money out.



&#8220;The economy is severely starved of dollars. The (forex)injections so far appear to have not made a dent,&#8221; said David Omojomolo, Africa economic at Capital Economics.



&#8220;The FX backlog to my knowledge is still large, and the pronouncements that it will be cleared &#8216;soon&#8217; made for months now appear to encourage speculation rather than stabilisation.&#8221;



The CBN will later this month hold its first monetary policy meeting since last July and it is under pressure to deliver a big hike in its benchmark interest rate from the current 18.75%.



&#8220;For us to take a more active position in the local currency market we would still need greater clarity on the direction&#8230; and exactly how they&#8217;re going to support the operations on the forex side with &#8230; the monetary policy side,&#8221; said Yvette Babb, a hard and local currency debt portfolio manager at William Blair.



The central bank&#8217;s one-year treasury bill, for example, was selling at 17% while the government&#8217;s bill sold at 11% as the government seeks to keep its borrowing costs low.



As long as big downside risks to local bond prices remain due to the unanchored nature of short-term yields with regard to the policy rate &#8211; reflected in the significant gap between the two &#8211; foreign investors will avoid local debt, said Gergely Urmossy, emerging markets strategist at Societe Generale.



&#8220;To restore the anchoring role of the policy rate, the CBN will have to deliver money market reforms,&#8221; Urmossy said.



(Reporting by MacDonald Dzirutwe in Lagos, Chijioke Ohuocha in Abuja, Rachel Savage in Johannesburg and Karin Strohecker in London; Editing by Hugh Lawson)

FILE PHOTO: Man counts Nigerian naira notes in a market place ahead of Nigeria’s Presidential elections in Yola

Nigeria’s latest devaluation may be ‘turning point’ in currency reform drive

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="806" height="600" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1.png" alt="" class="wp-image-417481" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1.png 806w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1-300x223.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1-121x90.png 121w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1-768x572.png 768w" sizes="auto, (max-width: 806px) 100vw, 806px" /></figure>



JOHANNESBURG, Feb 5 (Reuters) &#8211; South Africa&#8217;s MultiChoice Group on Monday said it will not continue talks with Vivendi&#8217;s Canal Plus after the board concluded that its offer significantly undervalues the company.



Canal Plus, a top shareholder in MultiChoice, had on Thursday offered 105 rand ($5.55) per share for every MultiChoice share it does not already own.



Canal Plus said the offer &#8211; worth 31.7 billion rand according to Reuters calculations &#8211; was a 40% premium to MultiChoice&#8217;s closing share price of 75 rand on Jan. 31.



MultiChoice said in a statement that a recently-conducted exercise valued the group at significantly above the offer price, excluding any potential synergies which may arise from the proposed deal.



Africa&#8217;s biggest pay TV company added that the synergies that Canal Plus has conveyed &#8220;need to be factored into any fair offer made&#8221; by the French company.



&#8220;Therefore, while the board is open to all means of maximising shareholder value, it has conveyed to Canal+ that at this proposed price, the letter does not provide a basis for further engagement,&#8221; MultiChoice said.



The board, however, remains open to engage with any party in respect of any offer which is for a fair price, it added.



Canal Plus had said its offer was non-binding and indicative but had expected to deliver a letter of firm intention to MultiChoice&#8217;s board once due diligence had been completed.



Canal Plus, which as of Thursday held a 31.67% stake in MultiChoice, raised it stake to 35.01% following the deal&#8217;s announcement, MultiChoice said in a separate statement.



As a result, MultiChoice has requested the Takeover Regulation Panel to make a ruling as to whether a mandatory offer must be made to all holders of ordinary shares in the company according to the Companies Act. 



($1 = 18.9169 rand) 



(Reporting by Prerna Bedi in Bengaluru; Editing by Varun H K)

South Africa’s MultiChoice rejects Vivendi’s Canal Plus buyout offer

<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/KF2GGOYQNFOS7EACK4EZNF5B3U-820x547.jpg" alt="" class="wp-image-452889" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KF2GGOYQNFOS7EACK4EZNF5B3U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KF2GGOYQNFOS7EACK4EZNF5B3U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KF2GGOYQNFOS7EACK4EZNF5B3U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KF2GGOYQNFOS7EACK4EZNF5B3U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KF2GGOYQNFOS7EACK4EZNF5B3U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KF2GGOYQNFOS7EACK4EZNF5B3U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Hage Gottfried Geingob, President of Namibia, speaks during the UN Climate Change Conference (COP26) in Glasgow, Scotland, Britain, November 2, 2021. REUTERS/Hannah McKay/File Photo</figcaption></figure>



JOHANNESBURG, Feb 4 (Reuters)&nbsp;&#8211;&nbsp;Namibia&#8217;s President Hage Geingob, 82, died in hospital early on Sunday, the presidency said, weeks after he was diagnosed with cancer.



Geingob had been in charge of the thinly populated and mostly arid southern African country since 2015, the year he announced he had survived prostate cancer.



Vice President Nangolo Mbumba takes the helm in Namibia &#8211; a mining hotspot with significant deposits of diamonds and the electric car battery ingredient lithium &#8211; until presidential and parliamentary elections at the end of the year.



A presidency post on social media platform X did not give a cause of death, but late last month the presidency said he had travelled to the United States for &#8220;a two-day novel treatment for cancerous cells&#8221;, after being diagnosed following a regular medical check-up.



Born in 1941, Geingob was a prominent politician since before Namibia achieved independence from white minority-ruled South Africa in 1990.



He chaired the body that drafted Namibia&#8217;s constitution, then became its first prime minister at independence on March 21 of that year, a position he retained until 2002.



<h2 class="wp-block-heading" id="h-chains-of-injustice">&#8216;CHAINS OF INJUSTICE&#8217;</h2>



In 2007, Geingob became vice president of the governing South West Africa People&#8217;s Organisation (SWAPO), which he had joined as an agitator for independence when Namibia was still known as South West Africa.



SWAPO has remained in power in Namibia unchallenged since independence. The former German colony is technically an upper middle-income country but one with huge disparities in wealth.



&#8220;There were no textbooks to prepare us for accomplishing the task of development and shared prosperity after independence,&#8221; he said in a speech to mark the day in 2018. &#8220;We needed to build a Namibia in which the chains of the injustices of the past would be broken.&#8221;



Geingob served as trade and industry minister before becoming prime minister again in 2012.



He won the 2014 election with 87% of the vote but only narrowly avoided a runoff with a little more than half the votes in a subsequent poll in November 2019.



That election followed a government bribery scandal, in which officials were alleged to have awarded horse mackerel quotas to Iceland&#8217;s biggest fishing firm, Samherji, in exchange for kickbacks, according to local media reports. The resultant outcry led to the resignation of two ministers.



The following year, Geingob lamented that Namibia&#8217;s wealth still remained concentrated in the hands of its white minority.



&#8220;Distribution is an issue, but how do we do it?&#8221; Geingob said in a virtual session at an event organised by international organisation Horasis.



&#8220;We have a racial issue here, a historical racial divide. Now you say we must grab from the whites and give it to the Blacks, it&#8217;s not going to work,&#8221; he said.



His comments came after the government rescinded as unworkable a policy that would have made it mandatory for white-owned businesses to sell a 25% stake to Black Namibians.



Geingob died at Lady Pohamba Hospital in Windhoek, where he was receiving treatment from his medical team, the presidency said.



(Reporting by Tim Cocks in Johannesburg and Nilutpal Timsina in Bengaluru; Editing ; by William Mallard)

Reuters

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Reuters

South Africa’s Ramaphosa touts ANC history in state of nation address

US to commit more funds to African rail link for metal exports

Uganda’s central bank nets $339 mln in rare private placement debt auction

Zimbabwe working on measures to stabilise currency, central bank governor says

Ethiopia intelligence head Temesgen approved as deputy prime minister

South Africa’s Ramaphosa to announce election date this month – spokesman

South Africa’s ANC has 75% chance of losing majority – Standard Bank

Stocks nudge higher on China stimulus signals, Argentina in focus

Uganda says public debt stock to hit nearly 50% of GDP by June

Kenya central bank governor: there is scope to support shilling

South Africa’s Transnet says logistic reforms cannot be rushed

South Africa’s takeover panel reviewing Canal Plus’ attempt to buyout MultiChoice

Vulnerable countries need debt relief ‘now or never’, new report warns

South African platinum industry could shed up to 7,000 jobs to cut costs

Nigeria’s latest devaluation may be ‘turning point’ in currency reform drive

South Africa’s MultiChoice rejects Vivendi’s Canal Plus buyout offer

Namibia’s President Hage Geingob, 82, dies after cancer diagnosis

News Tips

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