<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="509" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS.jpg" alt="" class="wp-image-452347" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS-768x489.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">The logo of commodities trader Glencore is pictured in front of the company&#8217;s headquarters in Baar, Switzerland, November 20, 2012. REUTERS/Arnd Wiegmann/File Photo</figcaption></figure>



LUSAKA, Feb 2 (Reuters)&nbsp;&#8211;&nbsp;Zambia has agreed to restructure a $1.5 billion debt owed by Mopani Copper Mines to Glencore, which arose from its acquisition of Mopani in 2021, state-owned mining firm ZCCM-Investment Holdings (ZCCM-IH)&nbsp;ZCCM.LZ&nbsp;said on Friday.



Last November, Zambia picked the United Arab Emirates&#8217; International Resources Holdings (IRH) as the new strategic equity investor in Mopani, to take up a 51% stake in return for a $1.1 billion capital injection. IRH&#8217;s interest in Mopani will be held through its wholly-owned subsidiary, Delta Mining Ltd.



As part of the deal, IRH, a unit of Abu Dhabi&#8217;s most valuable listed company, International Holdings Company (IHC), will provide $400 million as a shareholder loan towards clearing Mopani&#8217;s debt. Of that, $300 million is earmarked for the Glencore debt and the remaining $100 million will be used to settle third-party letters of credit secured by Glencore for Mopani.



&#8220;The effect of this is that the gross debt owed by Mopani to Glencore &#8230; will be replaced by the above shareholder loan owed to Delta of up to $400 million, resulting in an overall net reduction in Mopani debt of over $1.2 billion,&#8221; ZCCM-IH said.



Glencore was not immediately available to comment.



Mopani and Glencore also agreed on a royalty agreement which will see the global commodities giant receiving an unspecified share of Mopani&#8217;s profit in the event that the copper price exceeds $12,000 per ton.



ZCCM-IH said &#8220;the relationship between Glencore and Mopani will be restructured&#8221; following the agreed settlements and &#8220;there shall be no indebtedness between Glencore and Mopani&#8221;.



IRH&#8217;s investment will provide funding to support Mopani&#8217;s target to raise its output to 200,000 tons of copper annually in the next three years, ZCCM-IH said.



The miner produced 72,694 metric tons of copper in 2022, down from 87,618 metric tons in 2021.



(Reporting by Chris Mfula; Editing by Nelson Banya and David Evans)

FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company’s headquarters in Baar

Zambia to restructure $1.5 bln Glencore debt with new Mopani investor

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-820x542.jpg" alt="" class="wp-image-452096" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., on March 19, 2019. REUTERS/Leah Millis/File Photo</figcaption></figure>



LONDON, Feb 1 (Reuters)&nbsp;&#8211;&nbsp;Major central banks stood pat on interest rates in January, as the much anticipated change of course in the global monetary policy draws closer while emerging market peers ploughed on with rate cuts.



January saw five of the central banks overseeing the 10 most heavily traded currencies &#8211; the U.S. Federal Reserve, the ECB, the Bank of Japan, Bank of Canada and Norges Bank &#8211; hold rate setting meetings with none changing rates. That follows on from eight meetings in December where only Norway hiked.



&#8220;Interest rates are set to remain front and centre in 2024,&#8221; Philip Shaw at Investec said in a research note. &#8220;However, in a departure from the last two years, now the question is not how far central banks will raise rates, but when and how far they will cut.&#8221;



Fed chair Jerome Powell on Wednesday delivered a sweeping endorsement of the U.S. economy&#8217;s strength and said the next rate move would be lower. But he also pushed back against markets betting on a move as soon as March, with expectations now anticipating a first Fed cut in May.



Meanwhile, emerging economies &#8211; which have been frontrunning both the tightening and the easing cycle &#8211; ploughed on with rate cuts.



Five of the Reuters sample of 18 central banks in developing economies cut rates in January &#8211; matching the December number which had been the highest number in at least three years. Across the Reuters markets sample, 12 central banks held rate setting meetings last month.



Policy makers in Brazil, Hungary, Colombia and Chile all extended their easing push, while Israel joined the fray, delivering the first rate cut in four years. The moves brought the January rate cut tally to 275 basis point &#8211; the biggest monthly total since May 2022.



Turkey was the sole outlier in January, delivering another 250 bps rate hike to shore up its battered currency and tackle sticky inflation, though the central bank said it had now completed its aggressive tightening cycle.



Analysts predicted that monetary easing would continue to broaden out in the months ahead.



&#8220;Mexico&#8217;s central bank will probably be the next to cut rates later this quarter, and many Asian central banks will join the fray in April and May, which is sooner than most expect,&#8221; said William Jackson at Capital Economics in a note to clients.



(Reporting by Karin Strohecker and Sumanta Sen; Editing by Andrew Heavens)

FILE PHOTO: Federal Reserve Board building is pictured in Washington

Major central bank rates plateau in January ahead of expected cuts

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



Feb 1 (Reuters)&nbsp;&#8211;&nbsp;Emerging market currencies were range-bound against a firm dollar on Thursday after Federal Reserve Chair Jerome Powell pushed back against hopes of an early rate cut, while stocks edged higher as investors digested mixed business activity data from the region.



MSCI&#8217;s index of emerging market (EM) currencies&nbsp;.MIEM00000CUS&nbsp;was muted at 0922 GMT, while the dollar&nbsp;=USD&nbsp;held close to its highest level since mid-December.



The Fed held rates steady late Wednesday, as widely expected, but Powell, at a conference following the decision, said a rate cut at the March meeting was unlikely, leading investors to shift bets of the first cut to May.



&#8220;Markets have a tendency of being impatient when waiting for major central banks led by the Fed to start monetary policy easing after being hooked over many years&#8230;to low-interest rates,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



&#8220;This explains why investors ended up disappointed with remarks from Chair Powell. Consequently, the dollar is broadly stronger and EM currencies are weaker.&#8221;



The South African rand&nbsp;ZAR=&nbsp;slipped 0.1% against the dollar, and the Israeli shekel&nbsp;ILS=&nbsp;moved 0.2% lower.



Asian currencies were mixed with China&#8217;s yuan&nbsp;CNY=CFXS&nbsp;down 0.2% versus the dollar.



A gauge of regional stocks&nbsp;.MSCIEF&nbsp;rose 0.4% after two straight days of losses.



EM assets started 2024 on a sour note, logging declines in January due to uncertainty around the timing of U.S. interest rate cuts and fresh evidence of China&#8217;s uneven economic growth.



China&#8217;s blue-chip index .CSI300 closed up 0.1% on Thursday after a private-sector survey showed the country&#8217;s factory activity expanded modestly in January. Hong Kong&#8217;s Hang Seng .HSI gained 0.5%.



South Korean shares .KS11 advanced 1.8% following data which showed domestic factory activity expanded in January for the first time in 19 months.



Indian shares .NSEI, .BSESN lost momentum after the government presented its last budget before a national election due by May. The country&#8217;s factory activity expanded at its fastest pace in four months in January.



In other news, Pakistan&#8217;s election panel has summoned top security officials for a meeting on Thursday to discuss increasing violence in the country&#8217;s western provinces ahead of next week&#8217;s national election.



(Reporting by Amruta Khandekar: Editing by Tasim Zahid)

istockphoto-1076949610-612×612-1

Currencies meander after Fed rate cut pushback, PMIs in focus

<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 1 (Reuters)&nbsp;&#8211;&nbsp;Vivendi&#8217;s&nbsp;VIV.PA&nbsp;Canal Plus has offered to buy all the shares it does not own in South Africa&#8217;s MultiChoice Group&nbsp;MCGJ.J&nbsp;&#8211; a deal worth roughly $1.7 billion and one that it says would help the pay TV company thrive in a competitive international market.



Canal Plus, the top shareholder in MultiChoice with a 31.67% stake according to LSEG data, said it would likely pay 105 rand in cash per share, a 40% premium to MultiChoice&#8217;s closing share price on Wednesday.



Shares in MultiChoice surged more in Thursday morning trade but were still far below the offer price indicating a lack of investor confidence that the deal would definitely go through. They were last up 23% at 92 rand.



Canal Plus said its current offer, worth 31.7 billion rand according to Reuters calculations, is non-binding and indicative and that once due diligence has been completed, it intends to deliver a letter of firm intention to MultiChoice&#8217;s board.



MultiChoice, which operates in 50 countries in sub-Saharan Africa, said it has received a letter from the French media company and would update shareholders should there be any further developments.



&#8220;For MultiChoice to continue to thrive in Africa it will require a strategy that enhances its scale as well as strengthened local and global expertise. Our potential offer, if successful, would be an important next step for MultiChoice to realise its full potential,&#8221; Maxime Saada, chairman and CEO of Canal Plus, said in a statement.



MultiChoice has over the years invested billions of rand to fight off competition from international streaming giants such as Netflix&nbsp;NFLX.O, Amazon&nbsp;AMZN.O&nbsp;and Disney&nbsp;DIS.N. Netflix, for example, has also been investing in local content.



Saada added that the deal would give MultiChoice the resources to invest in scale, local African talent and stories.



As part of MultiChoice&#8217;s efforts to fight off competition, it partnered last year with Comcast&#8217;s&nbsp;CMCSA.O&nbsp;NBCUniversal and Sky to revamp MultiChoice&#8217;s existing Showmax streaming service, which now offers LIVE Premier League content.



Canal Plus also said that it actively plans to list following proposals by parent company Vivendi to split into four entities and ultimately would like to also list in South Africa.



($1 = 18.7137 rand)



(Reporting by Nqobile Dludla; Additional reporting by Disha Mishra in Bengaluru; Editing by Edwina Gibbs)

Multichoice logo (1)

Vivendi’s Canal+ submits offer to acquire South Africa’s 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/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-820x547.jpg" alt="" class="wp-image-451804" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Signage is seen outside the Moody&#8217;s Corporation headquarters in Manhattan, New York, U.S., November 12, 2021. REUTERS/Andrew Kelly</figcaption></figure>



JOHANNESBURG, Jan 31 (Reuters) &#8211; The decision of Burkina Faso, Mali and Niger to exit the Economic Community of West African States (ECOWAS) could hinder the bloc&#8217;s economic growth, Moody&#8217;s ratings agency said on Wednesday.



It would be much more detrimental if they also decided to leave the West African Economic and Monetary Union (WAEMU), though that was not expected, the agency added.



The three junta-led countries announced on Sunday that they were planning to leave ECOWAS, the region&#8217;s main economic and political bloc. Their position on also leaving the monetary union has not been made clear.



&#8220;The three countries&#8217; departures would disrupt the economic integration that is ECOWAS&#8217; raison d&#8217;etre and weigh on business confidence, potentially hindering the bloc&#8217;s economic growth,&#8221; said Moody&#8217;s in a statement.



&#8220;While not our baseline expectation, an exit from WAEMU would be much more detrimental to sovereigns leaving the monetary union because of the credit support that WAEMU membership provides in terms of macroeconomic stability and reduced external vulnerability,&#8221; it added.



Mali&#8217;s foreign minister on Wednesday told Reuters that Mali would remain a member of the eight-nation monetary union, which uses the West Africa CFA franc currency pegged to the euro.



However, in an interview shared by the three Sahel states information service on Wednesday, Burkina Faso&#8217;s military leader Ibrahim Traore said that they would &#8220;probably&#8221; leave the currency zone.



Such an exit would be credit negative for the West African Development Bank, the monetary union&#8217;s development bank, because Burkina Faso, Mali and Niger accounted for 17% of its paid-in capital and 35% of its loan portfolio at the end of 2022, said Moody&#8217;s.



(Reporting by Rachel Savage; Writing by Nellie Peyton; Editing by Andrew Heavens and Emelia Sithole-Matarise)

Signage is seen outside the Moody’s Corporation headquarters in Manhattan, New York

Moody’s: West African countries’ exit from regional bloc could hinder growth

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Jan 31 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks fell on Wednesday as dismal factory activity data from China added to worries about its economic woes while most currencies were subdued in the run up to the Federal Reserve&#8217;s interest rate decision.



MSCI&#8217;s index of emerging market (EM) equities&nbsp;.MSCIEF&nbsp;was down 0.5% by 0957 GMT, while a gauge of regional currencies&nbsp;.MIEM00000CUS&nbsp;was flat against a firm dollar&nbsp;=USD.



Both EM stocks and currencies were set to end the first month of 2024 with their biggest monthly percentage drop since August as reduced bets of U.S. interest rate cuts and fresh concerns about China&#8217;s faltering economy sapped risk appetite.



Equities in mainland China .CSI300 and Hong Kong .HIS shed 0.9% and 1.4% on Wednesday after data showed China&#8217;s manufacturing activity contracted for the fourth straight month in January.



The blue-chip index&nbsp;.CSI300&nbsp;was headed for its sixth straight month in the red.



The Fed&#8217;s policy decision, due at 1400 ET (1900 GMT), followed by commentary from Fed Chair Jerome Powell, is a key catalyst for the dollar and emerging markets as it will shape expectations for the timing of U.S. rate cuts.



Investors have pushed back expectations of the first rate cut from March to May given evidence of resilience in the U.S. economy.



&#8220;If Powell is more decisive than last time in pushing back against the rather ambitious expectations for this year, then the dollar should benefit again,&#8221; said Michael Pfister, FX analyst at Commerzbank in a note.



Among currencies, the South African rand&nbsp;ZAR=&nbsp;firmed 0.5% against the dollar.



The Turkish lira TRYTOM=D3 was flat at 30.359 against the dollar. Data showed the country&#8217;s foreign trade deficit narrowed 3.2% year-on-year to $105.99 billion in 2023 while tourism revenues hit a record high.



In other news, Asian central banks may see scope to loosen monetary policy later this year as inflation moderates, the International Monetary Fund said on Wednesday.



Data showed Taiwan&#8217;s trade-dependent economy grew faster than expected in the fourth quarter. The Taiwan dollar TWD=TP was down 0.3%.



&#8220;We believe the tech-export recovery and Taiwan&#8217;s place in the AI-related supply chain are likely to provide additional lift in 2024,&#8221; Barclays analysts said in a note.



(Reporting by Amruta Khandekar; Editing by Andrew Cawthorne)

Stock market report. 3d illustration

Stocks, FX set for monthly losses; Fed rate verdict in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg" alt="" class="wp-image-428778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. Picture taken September 10, 2018. REUTERS/Afolabi Sotunde/Illustration/File Photo</figcaption></figure>



ABUJA, Jan 31 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s naira dropped to a record low against the dollar on the official market on Tuesday, FMDQ Exchange data showed on Wednesday, slipping below rates on the unofficial parallel market in intra-day trades.



The naira fell as low as 1,531 to the dollar during trading on Tuesday, FMDQ data showed, compared with 1,460 naira quoted on the parallel market. The currency later closed at 1,482.57 naira on the official market, according to FMDQ.



The latest fall occurred after market regulator FMDQ OTC Securities Exchange said its methodology for calculating closing rates on the currency was revised last Friday to include more data, and that the levels on its computation had changed.



The naira has lost around 40% since the start of the year. Its official exchange rate has been drifting towards the parallel market level as foreign currency shortages in the West African nation funnel demand to unofficial sources.



The central bank has warned lenders about underreporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.



On Wednesday the currency eased on the forwards market, with traders quoting the dollar as low as 1,650 in a year&#8217;s time.



(Reporting by Chijioke Ohuocha; Editing by Jan Harvey)

FILE PHOTO: Nigerian naira banknotes are seen in this picture illustration

Nigerian naira hits record low of 1,531 to dollar on official market – FMDQ

<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>



LONDON/JOHANNESBURG, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;The African Development Bank (AfDB) has sold its long-awaited hybrid capital note, the first financing of its kind for multilateral development banks, which are under increasing pressure to find ways to boost their lending.



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



The $750 million perpetual hybrid note has a 5.75% coupon, tighter than the 6.375% guidance. The deeply subordinated, debt-like equity instrument has a lower credit rating than the lender&#8217;s AAA-rated bonds and can be redeemed by investors after 10.5 years or every five years thereafter.



&#8220;This is not a one-off transaction, it is definitely one of many more transactions to come,&#8221; said Hassatou N&#8217;Sele, VP Finance and Chief Financial Officer for the AfDB Group, declining to give more details on future issuance plans.



&#8220;We are establishing hybrid capital issued by AAA rated multilateral development banks as a new asset class &#8230; Other MDBs have indicated an interest in exploring hybrid capital.&#8221;



After an investor roadshow in September, the AfDB delayed the launch amid rising borrowing costs and choppy markets.



BNP Paribas and Goldman Sachs structured and coordinated the issuance, while Barclays and BofA Securities joined as bookrunners. S&amp;P Global rates the notes an AA-minus.



Damian Saunders, FIG Syndicate at BNP Paribas, said the transaction attracted a broad range of investors from private banks to asset managers and specialist credit funds.



&#8220;It was clearly a big learning curve for all parties involved and that includes the investor side as well – investors had to go away and decide how to price this risk,&#8221; Saunders said.



The AfDB&#8217;s acting treasurer told Reuters in November the bank has the capacity to issue $4 billion-$5 billion of hybrid capital bonds, but would be &#8220;progressive&#8221; with one or two transactions per year.



The terms of the hybrid note allow for a permanent principal writedown if the AfDB faces stress and needs shareholders to increase its capital, while coupon payments also can be skipped.



(Reporting by Karin Strohecker and Rachel Savage, Additional reporting by Rodrigo Campos, Editing by Marguerita Choy)

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

African Development Bank sells hybrid note in development finance first

<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/FQSWANA64BMHTLLIX6FC6NZVV4-820x547.jpg" alt="" class="wp-image-451490" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A backdrop is prepared for a group photo session as West African leaders meet to discuss transitional roadmap for Mali, Burkina Faso and Guinea, in Accra, Ghana, July 3, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



DAKAR, Jan 30 (Reuters) &#8211; A decision by Mali, Burkina Faso and Niger to quit West Africa&#8217;s economic and political bloc reverses decades of regional integration, leaving millions of people in limbo, and is likely to deepen the three junta-led countries&#8217; ties with Russia.



The move to withdraw from the 15-member Economic Community of West African States (ECOWAS) could yet take time to implement, opening a door for negotiations.



But, if carried through, it is set to disrupt the region&#8217;s trade and services flows, worth nearly $150 billion a year.



It also raises questions over millions of nationals from the three poor and landlocked nations who settled in neighbouring states as the bloc allows visa-free travel and right to work.



Ivory Coast alone is home to more than 5 million people from Burkina Faso, Mali and Niger.



Niger shares 1,500 km of border with Nigeria and 80% of its trade is done with its richer neighbour, said Seidik Abba, president of the Paris-based CIRES think tank.



Ghana, Togo and Benin also have a big diaspora from Niger.



&#8220;If they decide to go ahead and leave, it will become a very big problem, economically and politically, and the stakes are the highest for the people from these three countries,&#8221; he said.



More than a dozen analysts and Africa diplomats consulted by Reuters agreed the trio&#8217;s stance on ECOWAS underscored tumult across a region where armies have struggled to contain Islamist militants since seizing power in several countries.



Meanwhile, Russia has been extending its influence at the expense of former colonial power France, regional heavyweight Nigeria and the United States.



Earlier this month, Russia and Niger, ruled by a junta since a coup last year, agreed to develop military ties. Russian military personnel flew into Burkina Faso&#8217;s capital Ouagadougou last week to ensure the safety of the country&#8217;s military leader. Russia&#8217;s Wagner mercenary group also has 1,000 fighters in Mali.



The three military-ruled countries jointly announced their departure on Sunday, accusing ECOWAS of abandoning its founding ideals and falling under the influence of foreign powers.



They said the bloc had offered little support against Islamic insurgencies that have killed thousands and displaced over 2 million.



<h2 class="wp-block-heading" id="h-empty-threat">EMPTY THREAT</h2>



ECOWAS has responded to a wave of coups in the region since 2020 with sanctions that the juntas have called &#8220;illegal and inhumane.&#8221; The bloc also threatened to use force to restore constitutional rule in Niger, but did not follow through.



On Monday, ECOWAS chair Nigeria said the &#8220;unelected&#8221; military authorities of the three countries were letting their people down, but added it remained willing to engage with them.



Established in 1975, ECOWAS has sought to promote economic and political cooperation within the fragmented region, home to a mix of former French and British colonies.



Mucahid Durmaz, senior West Africa analyst at risk intelligence company Verisk Maplecroft, said he now expects increased tariffs and new restrictions on the movement of people, goods and money.



The move by the trio is likely the &#8220;silliest own goal since the United Kingdom voted for Brexit,&#8221; said Charlie Robertson, head of macro strategy at London-based investment management company FIM Partners, referring to Britain&#8217;s departure from the European Union.



&#8220;The three countries were already among the poorest in ECOWAS, and indeed the world – and leaving won&#8217;t help,&#8221; he said, adding the trio account for just 8% of the bloc&#8217;s gross domestic product.



Under ECOWAS rules, leaving the bloc takes at least a year, so those living outside their home countries should not face immediate consequences.



But in a worst-case scenario, &#8220;we could see one of the major movements of people that we have seen in decades &#8211; citizens across the subregion packing their things and heading back home,&#8221; said Kwesi Aning, a Ghana-based security analyst.



Gilles Yabi, founder of West African think tank WATHI, said the trio had stopped short of announcing their withdrawal from the regional monetary and economic union that uses the CFA franc, something that would have an even bigger impact.



&#8220;I think Mali, Niger and Burkina Faso know that it&#8217;s not easy – it&#8217;s not possible actually – to withdraw from the monetary union, when you don&#8217;t have your own system in place, a new currency in place, for example,&#8221; he said.



<h2 class="wp-block-heading" id="h-embargo-on-ourselves">&#8216;EMBARGO ON OURSELVES&#8217;</h2>



In Mali&#8217;s capital, Bamako, tailor Adama Coulibaly welcomed the juntas&#8217; decision, saying it was normal for the countries to take matters into their own hands because ECOWAS had failed.



But health worker Nagnouma Keita was apprehensive. &#8220;Our three states cannot survive on their own, especially since they have no access to the sea. I believe that, in reality, we are imposing an embargo on ourselves,&#8221; she said.



Some analysts said ECOWAS had been too swift to punish the juntas, having previously failed to call out civilian leaders, in Ivory Coast and Guinea among others, who extended their rule through problematic elections or referendums.



Threatening military intervention against the juntas but failing to act also reduced the bloc&#8217;s credibility, they said.



For years, security experts have said countries in the region must work closer – sharing more intelligence – to tackle the spreading insurgencies that are feeding off poverty, neglect and abuse as much as ideology.



Instead, the latest crisis at ECOWAS highlights the growing rift between the Western-allied elected governments and military-run countries increasingly relying on Russia and China.



&#8220;The departure from ECOWAS will have catastrophic consequences for the ability to respond to the many security challenges facing this region,&#8221; said Abba.



(Reporting by Bate Felix, David Lewis and Giulia ParaviciniAdditional reporting by Tiemoko Diallo and Boureima Balima, editing by Silvia Aloisi and Andrew Cawthorne)

FILE PHOTO: West African leaders hold summit to discuss roadmap for Mali, Burkina Faso and Guinea

West Africa’s ‘Brexit’ moment spells trouble for the region

<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/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg" alt="" class="wp-image-424605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-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>



ABUJA, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Nigerian non-deliverable currency forwards fell sharply to record lows against the U.S. dollar on Tuesday, mirroring falls on the official spot market, LSEG data showed.



Non-deliverable currency forwards, derivative products used to hedge against future exchange rate moves, indicated markets expected the naira&#8217;s exchange rate at 1,427.50 to the dollar in one month&#8217;s time&nbsp;NGNNDFOR=.



FMDQ Exchange data on Monday showed the naira had fallen to a record low of 1,421 per dollar on Friday on the thinly traded official market, below levels seen on the unofficial parallel market, where the currency trades freely.



On Monday, Nigeria&#8217;s central bank warned lenders about under reporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.



The naira&#8217;s official exchange rate had been drifting towards the parallel market level as the central bank is yet to clear outstanding amounts owed in forward deals, worsening a shortage of foreign currency in Africa&#8217;s biggest economy.



The central bank still has about $5 billion in forwards that have matured, after it paid $2.5 billion to manufacturers and importers. The backlog has been a major concern for investors despite assurances by the Central Bank of Nigeria (CBN) that it would clear them.



Other maturities on the forwards market on Tuesday also fell, with traders quoting the currency as low as 1,626.18 naira per dollar in a year&#8217;s time.



(Reporting by Chijioke Ohuocha; Editing by Ed Osmond and Mark Potter)

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

Nigeria’s naira hits new lows vs dollar on forwards market – LSEG data

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



Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Equities in emerging economies lost momentum on Tuesday as markets in China and Hong Kong were hit by growing property sector concerns, while the Hungarian forint was subdued in the run-up to a widely expected local rate cut.



MSCI&#8217;s index for emerging market (EM) stocks had shed 0.7% by 0912 GMT, coming off a two-week high hit in the prior session.



Heavyweight China .CSI300 and Hong Kong .HSI stocks fell 1.8% and 2.3% respectively, as the liquidation of property giant China Evergrande triggered fresh concerns over China&#8217;s heavily indebted real estate sector.



&#8220;The Evergrande headlines yesterday serve as a reminder that there are no quick fixes for the property sector and the measures announced by policymakers to support local equity markets&#8230;are not proving effective,&#8221; Chris Turner, global head of markets at ING wrote in a note.



China&#8217;s 10-year government bond yieldsCN230026=, CN10YT=RR slid below 2.47% to their lowest levels since June 2002 as markets bet the country would ease monetary policy to support its faltering economy.



Most other Asian bourses were also in the red as an uptick in oil prices due to tensions in the Middle East raised concerns about prolonged inflationary pressures ahead of the U.S. Federal Reserve&#8217;s interest rate announcement due on Wednesday.



Commentary from the central bank following the decision will be a key catalyst for risky EM assets as it will influence bets about the timing of U.S. rate cuts, which have been scaled back this month.



Equities in Turkey&nbsp;.XU100, South Africa&nbsp;.JTOPI, Poland&nbsp;.WIG&nbsp;and Romania&nbsp;.BETI&nbsp;climbed between 0.2% and 0.6%.



In currencies, the Hungarian forint EURHUF= was down 0.1%, languishing at near four-month lows against the euro ahead of a local monetary policy decision due at 1300 GMT. The National Bank of Hungary is expected to cut its base rate by 100 basis points to 9.75%, according to a Reuters poll.



The Czech crown EURCZK= slipped 0.1% while the benchmark ten-year bond yield CZ10YT=RR fell to 3.904%. Data showed the Czech economy rose 0.2% on a quarterly basis in the last three months of 2023.



A broader gauge of EM currencies&nbsp;.MIEM00000CUS&nbsp;edged up 0.2%.



The South African rand ZAR= slipped 0.1%, while the Thai baht THB=TH, South Korean won KRW= and Taiwan dollar TWD=TP rose between 0.2% and 0.5% against the dollar.



(Reporting by Amruta Khandekar; editing by Jason Neely)

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

Stocks sputter on China property sector woes, Hungary in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-820x562.jpg" alt="" class="wp-image-451375" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Economic Community of West African States (ECOWAS) court signage and logo is pictured in Abuja, Nigeria February 16, 2022. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria on Monday said the &#8220;unelected&#8221; military authorities in Niger, Mali, and Burkina Faso were letting their people down with their joint decision to leave the Economic Community of West African States (ECOWAS).



Nigeria, which is the current chair of the political and economic bloc, was commenting for the first time on the three junta-led countries&#8217; Sunday announcement that they were immediately quitting the nearly 50-year-old regional alliance.



The Nigerian foreign ministry in a statement said those seeking to leave ECOWAS were not acting in good faith.



&#8220;Instead, unelected leaders engage in a public posturing to deny their people the sovereign right to make fundamental choices over their freedom of movement, freedom to trade and freedom to choose their own leaders,&#8221; it said.



ECOWAS has so far declined to comment on the move, which could further weaken the bloc as it struggles to contain a democratic retreat in the West Africa region.



Mali and Niger&#8217;s foreign ministries earlier informed the ECOWAS Commission of their decision in written notices dated on Monday, which were seen by Reuters.



Nigeria said it remained willing to engage with the three nations.



Their exit decision, announced in a simultaneous joint statement on national television channels, is a blow to the bloc&#8217;s regional integration efforts after it suspended the three following coups.



(Reporting by Felix Onuah in Abuja, Fadimata Kontao in Bamako, Boureima Balima in Niamey; Writing by Nellie Peyton and Alessandra Prentice; Editing by Chris Reese and Sandra Maler)

Ecowas court hearing on whether Nigeria’s Twitter ban violated rights, in Abuja

ECOWAS chair Nigeria slams juntas’ move to quit bloc

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg" alt="" class="wp-image-428505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-1536x1009.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows Nigeria&#8217;s Central Bank headquarters in Abuja, Nigeria November 22, 2020. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank has injected $500 million to clear outstanding foreign exchange demand backlog, it said in a statement on Monday.



Africa&#8217;s biggest economy has about $7 billion in forex forwards that have matured, a major concern for investors as foreign currency shortages continue to weigh down the naira currency, despite assurances by the Central Bank of Nigeria (CBN) that it would clear the backlog.



Earlier this month, it paid about $2 billion of the backlog across sectors such as manufacturing, aviation, and petroleum, CBN spokesperson Hakama Sidi Ali said.



This is a developing story&#8230;



(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Jon Boyle)

FILE PHOTO: A view shows Nigeria’s Central Bank headquarters in Abuja

Nigeria’s central bank injects $500 million to clear FX backlog -statement

<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/K3R6TLCHVRIXXEGLDCVETAAITQ-820x547.jpg" alt="" class="wp-image-451111" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Italy&#8217;s newly appointed Prime Minister Giorgia Meloni speaks to the media following a meeting with Italian President Sergio Mattarella at the Quirinale Palace in Rome, Italy October 21, 2022. REUTERS/Guglielmo Mangiapane</figcaption></figure>



ROME, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Italian Prime Minister Giorgia Meloni called for a new partnership with Africa on Monday, unveiling a long-awaited plan aimed at boosting economic ties, creating an energy hub for Europe and curbing immigration.



Speaking at a one-day summit attended by more than two dozen African leaders and European Union officials, Meloni outlined a series of initiatives, pledging an initial 5.5 billion euros ($5.95 billion), including state guarantees.



&#8220;We believe it is possible to envision and write a new chapter in the history of our relationship, a cooperation among equals, far from any predatory imposition or charitable stance towards Africa,&#8221; Meloni said in an opening speech.



However, the proposal got a cool response from some of those present, with Moussa Faki Mahamat, chairman of the African Union Commission, saying he wished Africa had been consulted first.



&#8220;I want to insist here on the need to move from words to actions. You can well understand that we can no longer be satisfied with mere promises that are often not kept,&#8221; he said, standing alongside Meloni in Italy&#8217;s ornate Senate.



Among the African leaders present were the presidents of Tunisia, Senegal, Kenya, the Republic of Congo and Somalia. In all, 45 African states were represented at various levels.



Critics have said that heavily indebted Italy cannot hope to compete with the likes of China, Russia and Gulf states, that are all looking to boost their presence in Africa, which is home to many of the world&#8217;s natural resources.



While Rome claims ownership of the plan, which it has named after the late Enrico Mattei, who founded state oil company Eni, Meloni said her government would look to help from the private sector and international bodies such as the European Union.



Underscoring that point, European Commission President Ursula von der Leyen, European Council President Charles Michel and the head of the EU Parliament were all at the Rome meeting.



&#8220;The Mattei Plan&#8230; fits perfectly into our European Global Gateway worth 150 billion euros. This is our plan for Africa,&#8221; von der Leyen told Monday&#8217;s gathering, referring to an infrastructure project unveiled in 2021.



<h2 class="wp-block-heading" id="h-energy-needs">ENERGY NEEDS</h2>



Meloni has made the Mattei plan a central plank of her foreign policy since taking office in late 2022.



Energy needs lie at the heart of the initiative, with Rome looking to serve as a gateway into European markets for natural gas from Africa that has become vital after Russia&#8217;s invasion of Ukraine made diversification of supplies a priority for the EU.



Eni, Italy&#8217;s largest importer of natural gas, has already countered lower Russian supplies by shipping increased volumes from Africa, where it has had a presence for decades.



The company has said Algeria, Egypt and Libya will be Italy&#8217;s main gas suppliers for the next few years.



But Meloni also said Europe had to bolster industry and agriculture in Africa to strengthen local economies as a way of persuading disaffected young Africans from migrating north.



Some 157,600 boat migrants reached Italy last year, the largest number since 2016, undermining Meloni&#8217;s electoral pledge to halt the flow of unauthorised arrivals.



Most departed from North African countries such as Tunisia and Libya, many fleeing poverty and conflict in sub-Saharan Africa and the Middle East.



&#8220;Mass immigration will never be stopped, human traffickers will never be defeated if we do not address the many causes that push a person to leave their home,&#8221; Meloni told the summit. &#8220;This is exactly what we intend to do.&#8221;



(Writing by Crispian Balmer; Editing by Alex Richardson and Sharon Singleton)

Italy’s newly appointed Prime Minister Giorgia Meloni speaks to the media following a meeting with Italian President Sergio Mattarella, in Rome

Italy’s Meloni seeks new partnership with Africa, funds limited

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="756" height="426" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3.jpg" alt="" class="wp-image-417686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3.jpg 756w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3-160x90.jpg 160w" sizes="auto, (max-width: 756px) 100vw, 756px" /><figcaption class="wp-element-caption">Economic Community of West African States (ECOWAS) flag is pictured during an extraordinary summit of ECOWAS to hear reports from recent missions to Mali, Burkina Faso and Guinea following military coups in those countries, in Accra, Ghana March 25, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



NIAMEY/BAMAKO, Jan 28 (Reuters)&nbsp;&#8211;&nbsp;Niger, Mali and Burkina Faso, three West African states led by the military, said on Sunday they are immediately leaving the Economic Community of West African States (ECOWAS), a regional economic bloc that has been urging them to return to democratic rule.



The decision by the three, announced in a simultaneous joint statement on their national television channels, is a blow to the bloc&#8217;s regional integration efforts after it suspended the three following coups.



The move could further weaken ECOWAS which has struggled to contain a democratic retreat in the West Africa region.



In response to the withdrawal ECOWAS said it is yet to receive any formal notification about the withdrawal and declined further comment.



The bloc had previously said it does not recognise the military-led governments, vowing that coups would no longer be tolerated after the military takeovers in Mali, Burkina Faso and Guinea and an attempted coup in Guinea-Bissau.



Since the coups &#8211; and despite sanctions, negotiations and threats of military intervention &#8211; the military leaders have failed to provide a clear timetable for a return to constitutional rule.



Instead, they have hardened their rhetoric against the bloc and accused it of being influenced by external powers. The three have also cut military and other ties with former colonial master France, and turned to Russia for security support.



<h2 class="wp-block-heading" id="h-existential-fight">EXISTENTIAL FIGHT</h2>



The military leaders have argued they want to restore security before organising elections, as the three Sahel nations struggle contain insurgencies linked to al Qaeda and Islamic State.



&#8220;After 49 years, the valiant peoples of Burkina Faso, Mali, and Niger regretfully and with great disappointment observe that the (ECOWAS) organization has drifted from the ideals of its founding fathers and the spirit of Pan-Africanism,&#8221; Colonel Amadou Abdramane, Niger junta spokesman, said in the statement.



&#8220;The organization notably failed to assist these states in their existential fight against terrorism and insecurity,&#8221; Abdramane added.



Bakary Sambe, regional director of the Timbuktu Institute think tank, said there were clear signs that the junta-led states were moving towards a split from the bloc, as they strengthen ties between themselves and created a new alliance.



It is unclear for now how the decision by the landlocked junta states, will impact the 15-member regional bloc where goods and citizens move freely.



According to the bloc&#8217;s treaty, member states wishing to withdraw must give a written one-year notice. It is unclear for now if the three states have done so. The treaty say they must continue to abide by its provisions during the year-long period.



The three are also members of the eight-nation West African Monetary Union (UEMOA) which uses the West Africa CFA franc currency pegged to the Euro.



The monetary union, following decisions by ECOWAS leaders after the coups in Mali and Niger, had cut off their access to the regional financial market, and the regional central bank. It later restored Mali&#8217;s access but Niger remains suspended.



(Reporting by Tiemoko Diallo, Boureima Balima, Felix Onuah and MacDonald Dzirutwe; Writing by Bate Felix; Editing by William Maclean and David Holmes)

ecowas-3

Three West African junta-led states quit ECOWAS regional block

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="564" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-820x564.jpg" alt="" class="wp-image-450156" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-820x564.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-768x528.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-1536x1056.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the International Court of Justice (ICJ) on the day of the trial to hear a request for emergency measures by South Africa, who asked the court to order Israel to stop its military actions in Gaza and to desist from what South Africa says are genocidal acts committed against Palestinians during the war with Hamas in Gaza, in The Hague, Netherlands, January 11, 2024. REUTERS/Thilo Schmuelgen</figcaption></figure>



THE HAGUE, Jan 26 (Reuters)&nbsp;&#8211;&nbsp;The World Court on Friday ordered Israel to take action to prevent acts of genocide as it wages war against Hamas militants in the Gaza Strip, but it stopped short of calling for an immediate ceasefire.



Ruling on a case brought by South Africa, the court said Israel must ensure its forces did not commit genocide and take measures to improve the humanitarian situation for Palestinian civilians in the enclave.



In the ruling, 15 of the 17 judges on the International Court of Justice (ICJ) panel voted for emergency measures which covered most of what South Africa asked for, with the notable exception of ordering a halt to Israeli military action in Gaza.



Israel&#8217;s military operation has laid waste to much of the densely populated enclave and killed more than 25,000 Palestinians in nearly four months, according to Gaza health authorities.



Israel unleashed its assault after a cross-border rampage on Oct. 7 by Hamas militants. Israeli officials said 1,200 people were killed, mostly civilians, and 240 taken hostage.



The court said it was &#8220;gravely concerned&#8221; about the fate of the hostages in Gaza and called on Hamas and other armed groups to immediately release them without conditions.



But the ruling, welcomed by Palestinians, will still be an embarrassment for Israel and its closest allies, including the United States.



Israel had asked the court to reject the case outright, saying it respects international law and has a right to defend itself.



&#8220;The state of Israel shall&#8230;take all measures within its power to prevent the commission of all acts within the scope of Article II of the Genocide convention,&#8221; the court said.



Israel must report back to it on what steps it was taking in a month&#8217;s time,&nbsp;it said.



Israeli Prime Minister Benjamin Netanyahu said the charge of genocide leveled against Israel was &#8220;outrageous&#8221; and said it would do whatever is necessary to defend itself.



&#8220;The vile attempt to deny Israel this fundamental right is blatant discrimination against the Jewish state, and it was justly rejected,&#8221; he said in a statement.



But while the ICJ&#8217;s decisions are final and without appeal, the court has no way to enforce them.



The court did not rule at this stage on the core of the case brought by South Africa &#8211; whether genocide has occurred in Gaza. But it recognised the right of Palestinians in Gaza to be protected from acts of genocide.



South Africa&#8217;s deputy president Paul Mashatile and Justice Minister Ronald Lamola were seen cheering and dancing at a gathering of the governing African National Congress party following the court&#8217;s verdict.



South Africa argued two weeks ago that Israel&#8217;s aerial and ground offensive was aimed to bring about &#8220;the destruction of the population&#8221; of Gaza.



The 1948 Genocide Convention, enacted in the wake of the mass murder of Jews in the Nazi Holocaust, defines genocide as &#8220;acts committed with intent to destroy, in whole or in part, a national, ethnical, racial or religious group&#8221;.



Acts of genocide named in the convention include killing members of the group, causing serious bodily or mental harm to members of the group and deliberately inflicting conditions of life calculated to bring about the destruction of the group in whole or in part.



(Reporting by Stephanie van den Berg in The Hague, Anthony Deutsch and Bart Meijer in Amsterdam; Writing by Ingrid Melander; Editing by Angus MacSwan)

A general view of the International Court of Justice (ICJ) on the day of the trial to hear a request for emergency measures by South Africa, who asked the court to order Israel to stop its military actions in Gaza, in The Hague

World Court says Israel must take steps to prevent acts of genocide in Gaza

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/7DCPQ34PYRJXDJPN67633QTBPA-820x542.jpg" alt="" class="wp-image-450104" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/7DCPQ34PYRJXDJPN67633QTBPA-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/7DCPQ34PYRJXDJPN67633QTBPA-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/7DCPQ34PYRJXDJPN67633QTBPA-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/7DCPQ34PYRJXDJPN67633QTBPA-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/7DCPQ34PYRJXDJPN67633QTBPA-1536x1015.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/7DCPQ34PYRJXDJPN67633QTBPA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: General view of the International Court of Justice (ICJ) in The Hague, Netherlands January 23, 2020. REUTERS/Eva Plevier</figcaption></figure>



THE HAGUE/GAZA, Jan 26 (Reuters) &#8211; U.N. judges in The Hague will rule on Friday whether to order Israel to suspend its military campaign in Gaza as Israeli forces continued to pound the main southern city of Khan Younis, from where thousands of Gazans were fleeing to the south.



The Israeli military said on Friday it was engaged in &#8220;intensive battles in the heart of Khan Younis&#8221;, with forces striking dozens of Hamas fighters and infrastructure from the air and ground. It said forces also fired at Hamas targets in northern Gaza and along the Gaza coastline.



Residents said gun battles continued overnight, with Israeli forces blowing up buildings and houses in the western part of the city.



Gaza officials said the death toll from the campaign, now in its fourth month, has risen to 26,083, with 183 killed in the past 24 hours and many more feared trapped under flattened buildings.



The war, launched after Hamas fighters killed 1,200 people and captured more than 240 hostages on Oct 7, has displaced most of the enclave&#8217;s 2.3 million people, some multiple times.



The judges of the International Court of Justice (ICJ), also called the World Court, are due to rule on Friday on South Africa&#8217;s request for emergency measures against Israel in a case accusing it of state-led genocide in the Gaza Strip.



&#8220;South Africa is hopeful, we have always approached this case in a positive spirit,&#8221; Foreign Minister Naledi Pandor said.



&#8220;But our core purpose is really that it is vital to highlight the plight of the innocent in Palestine and to also alert the international community to the great harm that is being done to the people of Palestine.&#8221;



The court will issue its ruling at 1 p.m. (1200 GMT) in a hearing expected to last about an hour. While the judges will not rule on the merits of the genocide allegations, which may take years to decide, South Africa asked the court to issue an interim order compelling Israel to suspend military operations.



Israel has called South Africa&#8217;s allegations false and &#8220;grossly distorted&#8221;, and said it makes the utmost efforts to avoid civilian casualties in Gaza.



The ICJ&#8217;s rulings are final and without appeal, but it has no way of enforcing them. Israel on Thursday expressed confidence that the court would &#8220;throw out these spurious and specious charges.&#8221; Hamas said it would abide by an ICJ ceasefire order if Israel reciprocates.



<h2 class="wp-block-heading" id="h-huge-assault">HUGE ASSAULT</h2>



The huge assault this week on the city of Khan Younis is one of the biggest yet, now hitting territory housing hundreds of thousands of thousands of displaced civilians. Palestinians say Israel has blockaded hospitals making it impossible for rescuers to reach the dead and wounded.



“We believe many victims are still under the rubble and on the roads, the occupation prevents ambulance and civil emergency teams from reaching them,” Gaza health ministry spokesman Ashraf Al-Qidra said.



Israel denies it has blockaded hospitals in the battle zone but says military action near them is necessary because Hamas fighters operate there, which the militants and medical workers deny.



The military said it was coordinating with hospital staff to ensure they remain &#8220;operational and accessible&#8221;.



&#8220;The facts on the ground disprove the blatant misinformation that has been disseminated over the last 72 hours falsely claiming that the hospitals are under siege or attack,&#8221; it said in a statement.



<h2 class="wp-block-heading" id="h-genocide-convention">GENOCIDE CONVENTION</h2>



The 1948 Genocide Convention, enacted in the wake of the mass murder of Jews in the Nazi Holocaust, defines genocide as &#8220;acts committed with intent to destroy, in whole or in part, a national, ethnical, racial or religious group&#8221;.



Palestinians said they&nbsp;hoped world powers had the courage to compel Israel to stop the bombing if the ICJ orders a ceasefire.



&#8220;What happens if after the court Israel continued its massacres? The world will appear like a joke,” said Tamer, 55, a businessman and father of four now displaced in Rafah, the small city at Gaza&#8217;s southern edge where more than half the enclave&#8217;s population is now huddled, most in makeshift tents or public buildings.



“We are tired, our children are exhausted, they are deprived of sleep and food,&#8221; he said. &#8220;We are being starved and everyone awaits his turn to die by Israeli bombs if this doesn’t end.&#8221;



Thousands more had arrived in Rafah the past few days, worsening the desperate hunt for food and a place to camp&nbsp;in the rainy winter cold.



The Israeli military repeated orders on Friday for civilians to evacuate swathes of southern and western Khan Younis and head to Al-Mawasi further west. Residents say that has been impossible because roads were blocked and under Israeli fire.



Food is scarce in the south, and the situation is even worse in the north and centre of Gaza, where aid agencies say thousands of people face starvation, especially small children who are most vulnerable to malnutrition.



&#8220;Everybody we talk to begs for food,&#8221; said World Health Organisation&#8217;s Gaza representative Sean Casey.



The adults could handle the hunger, &#8220;but our children can&#8217;t,&#8221; said Abu Abdallah Humeid, a resident of Jabalia in the north of Gaza. With no more flour left, people there have been grinding corn and barley to make dry bread.



(Reporting by Nidal al-Mughrabi in Doha and Fadi Shana and Bassam Masoud in Gaza, Stephanie van den Berg in The Hague; Additional reporting by Henriette Chacar and Steven Scheer in Jerusalem, Anthony Deutsch in The Hague, Nellie Peytyon in Johannesburg; Writing by Sharon SingletonEditing by Peter Graff)

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Reuters

Zambia to restructure $1.5 bln Glencore debt with new Mopani investor

Major central bank rates plateau in January ahead of expected cuts

Currencies meander after Fed rate cut pushback, PMIs in focus

Vivendi’s Canal+ submits offer to acquire South Africa’s Multichoice

Moody’s: West African countries’ exit from regional bloc could hinder growth

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West Africa’s ‘Brexit’ moment spells trouble for the region

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Stocks sputter on China property sector woes, Hungary in focus

ECOWAS chair Nigeria slams juntas’ move to quit bloc

Nigeria’s central bank injects $500 million to clear FX backlog -statement

Italy’s Meloni seeks new partnership with Africa, funds limited

Three West African junta-led states quit ECOWAS regional block

World Court says Israel must take steps to prevent acts of genocide in Gaza

Israel braces for World Court ruling, focuses attack on south Gaza

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