<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg" alt="" class="wp-image-420130" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">The International Monetary Fund logo is seen at IMF headquarters in Washington, U.S., October 14, 2017. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



JOHANNESBURG/ACCRA/LONDON, Jan 4 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s official creditors are scheduled to meet on Monday to discuss restructuring some $5.4 billion in loans to the country, three sources told Reuters, a key step needed to secure its next tranche of funding from the International Monetary Fund.



The bilateral lenders, including the governments of China and France who co-chair the Official Creditor Committee (OCC), hold around a quarter of Ghana&#8217;s $20 billion external debt earmarked for restructuring.



The meeting is again expected to focus on an agreement about a &#8220;cut-off date&#8221; &#8211; the date after which new loans from bilateral creditors will not be restructured, the sources with knowledge of the matter said. Defining this date has emerged as a stumbling block for Ghana in its debt rework.



Some creditors are said to prefer Dec. 31, 2022, as a cut-off date with Ghana having defaulted earlier that month, according to sources. However, others pushed for March 24, 2020, because that was when the Group of 20 introduced its debt service suspension initiative (DSSI) to help the world&#8217;s poorest countries cope with the fallout of the COVID crisis. Ghana did not participate in the DSSI.



In preparation for the Jan. 8 OCC meeting, the Paris Club of major creditor nations, which does not count China among its permanent members, will convene on Friday, two sources said.



The Paris Club this week shared a technical note with other bilateral creditors and multilateral lenders on Ghana, one of the sources said, adding that the group of rich nations is proposing December 2022 as the cut-off date, one source with direct knowledge said.



&#8220;Ghana is still about cut-off date, but creditors haven&#8217;t agreed yet,&#8221; the source said. &#8220;If the cut-off date is agreed, that means an agreement on debt restructuring is close.&#8221;



A spokesperson for the Paris Club declined to comment on meetings that have not yet taken place. Ghana&#8217;s finance ministry did not immediately respond to a request for comment.



The West African country, which produces gold, cocoa, and oil, needs to come to an agreement on a debt restructuring with its official creditors to secure the IMF executive board&#8217;s approval for the next $600 million payout from a $3 billion rescue loan.



This is because the Washington-based lender needs financing assurances that debt relief is being provided by bilateral creditors in accordance with the IMF programme.



Ghana, where a deep economic crisis has seen inflation and the government&#8217;s debt servicing costs spiral, asked a year ago for a bilateral debt restructuring under the Common Framework, a process set up during the COVID-19 pandemic by the G20 leading economies.



It is also in talks with overseas bondholders to restructure its more than $13 billion in international debt. Holders of the bonds include major global asset managers such as BlackRock, PIMCO, Vontobel, AllianceBernstein and Neuberger Berman.



(Reporting by Rachel Savage, Maxwell Akalaare Adombila and Jorgelina do Rosario; Writing by Karin Strohecker; Editing by Dhara Ranasinghe, Hugh Lawson and Alison Williams)

FILE PHOTO: The International Monetary Fund logo is seen at IMF headquarters in Washington

Ghana official creditors to meet Monday, mull debt restructuring terms -sources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FSG7ZJLZSVPYDIAQ4I25PVA7XY-820x548.jpg" alt="" class="wp-image-442871" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FSG7ZJLZSVPYDIAQ4I25PVA7XY-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FSG7ZJLZSVPYDIAQ4I25PVA7XY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FSG7ZJLZSVPYDIAQ4I25PVA7XY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FSG7ZJLZSVPYDIAQ4I25PVA7XY-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FSG7ZJLZSVPYDIAQ4I25PVA7XY-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FSG7ZJLZSVPYDIAQ4I25PVA7XY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Italy&#8217;s Prime Minister Giorgia Meloni holds her end-of-year press conference in Rome, Italy, January 4, 2024. REUTERS/Guglielmo Mangiapane</figcaption></figure>



ROME, Jan 4 (Reuters)&nbsp;&#8211;&nbsp;Supporting African development and tackling the dangers posed by artificial intelligence (AI) will be two key themes for Italy during its one-year presidency of the Group of Seven, Italian Prime Minister Giorgia Meloni said on Thursday.



Speaking at a wide-ranging news conference, Meloni added that Italy would maintain its support for Ukraine in the war against Russia and warned that a further escalation of the conflict in the Middle East could have &#8220;unimaginable consequences&#8221;.



Italy took over the rotating presidency of the G7, which includes the United States, Canada, Japan, Germany, France, Britain and Italy, at the start of January.



It will host numerous ministerial meetings throughout the year, including a leaders&#8217; summit in June. However, Meloni said she wanted to hold a special session before June focused on AI.



&#8220;I am hugely concerned about the impact (of AI) on the labour market,&#8221; she told the news conference to mark the end of the year, held over from last month when she was unwell.



&#8220;Today we are faced with a revolution where (human) intellect is in danger of being replaced.&#8221;



She told reporters that supporting African development would also be a central theme of her G7, saying it was vital to boost local economies and living standards to dissuade would-be migrants from heading to Europe.



&#8220;What I think needs to be done in Africa is not charity. What needs to be done in Africa is to build cooperation and serious strategic relationships as equals not predators. What needs to be done in Africa is to defend the right not to have to emigrate &#8230; and this is done with investments and a strategy.&#8221;



<h2 class="wp-block-heading" id="h-war-on-the-agenda">WAR ON THE AGENDA</h2>



Among other issues likely to dominate Italy&#8217;s presidency is the war in Ukraine and the conflict in Gaza between Israel and Palestinian militant group Hamas.



Meloni called on Israel to avoid civilian casualties in Gaza and said that a more permanent solution needed to be found for the Palestinian issue.



&#8220;I believe&#8230;it&#8217;s an error to say &#8216;First let&#8217;s destroy Hamas and then we&#8217;ll talk about it&#8217;,&#8221; Meloni said.



&#8220;One of the best ways of calling the bluff of Hamas, which has no interest in the Palestinian cause, is to work for a structural solution of the Palestinian question,&#8221; she added, saying the European Union should play a more prominent role in diplomatic initiatives.



Meloni, who took power in October 2022 as Italy&#8217;s first woman prime minister, said she believed that the West should continue to supply arms and material support to Kyiv.



&#8220;The only way to reach any kind of diplomatic solution in Ukraine, any kind of negotiation, is to maintain the balance between forces on the ground.&#8221;



(Reporting by Giselda Vagnoni and Giuseppe Fonte; Writing by Crispian Balmer and Keith Weir; Editing by)

Italy’s Prime Minister Giorgia Meloni holds her end-of-year press conference in Rome

Italy to put Africa development, AI at heart of its G7 presidency

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/QJKRTGY7Z5K7ZMOCVNCXH6DJ6I-820x525.jpg" alt="" class="wp-image-442772" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/QJKRTGY7Z5K7ZMOCVNCXH6DJ6I-820x525.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/QJKRTGY7Z5K7ZMOCVNCXH6DJ6I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/QJKRTGY7Z5K7ZMOCVNCXH6DJ6I-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/QJKRTGY7Z5K7ZMOCVNCXH6DJ6I-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/QJKRTGY7Z5K7ZMOCVNCXH6DJ6I-1536x983.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/QJKRTGY7Z5K7ZMOCVNCXH6DJ6I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A worker sells eggs to a customer at a spaza shop in Thembisa, on the East Rand, in South Africa, August 2, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Jan 4 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity shrank in December as companies signalled a greater impact on business amid the gridlock problems afflicting the country&#8217;s ports, a survey showed on Thursday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) fell to 49.0 in December from 50.0 in November. A reading above 50 indicates growth in activity.



Supply chains, inventories, output and demand were all hit by the port crisis in Durban, with delivery times lengthening at the sharpest rate in close to two years, the survey showed.



&#8220;The port gridlock is likely to further dent the economy at the start of 2024 as businesses face greater shortfalls in input supply,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



Rotational power cuts implemented by power utility Eskom are also expected to remain an issue after electricity outages reportedly hit output and sales in December, he added.



Equipment shortages and maintenance backlogs after years of underinvestment have meant South African state-owned logistics company Transnet has struggled to provide adequate freight rail and port services in the country.



(Reporting by Bhargav Acharya; Editing by Hugh Lawson)

A worker sells eggs to a customer at a spaza shop

South Africa business activity shrinks in Dec amid port gridlock -PMI

<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/LQEFKEUAZZKWDEXBE2KZ3LRCZM-820x547.jpg" alt="" class="wp-image-442754" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LQEFKEUAZZKWDEXBE2KZ3LRCZM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LQEFKEUAZZKWDEXBE2KZ3LRCZM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LQEFKEUAZZKWDEXBE2KZ3LRCZM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LQEFKEUAZZKWDEXBE2KZ3LRCZM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LQEFKEUAZZKWDEXBE2KZ3LRCZM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LQEFKEUAZZKWDEXBE2KZ3LRCZM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Commuters pass by as posters of an election candidate hang on the street ahead of the general election in Dhaka, Bangladesh, January 2, 2024. REUTERS/Mohammad Ponir Hossain/File Photo</figcaption></figure>



LONDON, (Reuters) &#8211; Emerging markets are gearing up for their biggest election year in decades, with investors focused on fiscal discipline and populist shifts that could stir markets and blur the outlook for some key economies.



Countries home to more than half the world&#8217;s population and accounting for more than 60% of global economic output go to the polls in 2024.



The calendar is bookended by votes in Taiwan in January &#8211; a high-stakes geopolitical event &#8211; and in sovereign defaulter Ghana in December, as the country strives to emerge from a debt crunch.



&#8220;This is an election year like we have never seen before. It really is an extraordinary year,&#8221; said David Lubin, associate fellow at think tank Chatham House and Citi&#8217;s former head of emerging market economics.



&#8220;Recent elections in Argentina and Poland have reminded us that elections do produce surprises,&#8221; Lubin added.



The elections frenzy comes against a backdrop of sharply higher global borrowing rates &#8211; piling pressure on more fragile economies even though the prospect of interest rate cuts from the world&#8217;s big central banks is firmly on the horizon.



For investors, elections divide into three categories: Those where the outcome is rather obvious, such as Russia or Venezuela; those where it seems clear but the ballot is contested, for example India, Mexico or Indonesia; and those where there is genuine uncertainty, like in South Africa.



The 2023 polls in Argentina and Poland also served as reminders that governments due to face their electorates are more often than not prone to loosening the purse strings &#8211; a trend that can leave those who take over struggling to roll back the handouts.



Even when Argentina&#8217;s previous government ramped up spending between the first and second round of their vote, radical Javier Milei swept to power and embarked on a radical reform programme. In Poland, the surprise election win of the liberal, pro-EU Donald Tusk got the thumbs up from investors.



<h2 class="wp-block-heading" id="h-open-wallets">OPEN WALLETS</h2>



Fiscal discipline is seen as key, especially following a series of external shocks ranging from COVID-19 to Russia&#8217;s war in Ukraine and a rise in global yields that has highlighted the need for countries to keep spending tightly controlled, said Yvette Babb, a portfolio manager at asset manager William Blair.



&#8220;There is very limited margin for populist &#8211; often times meaning &#8216;expensive&#8217; &#8211; policy stances across emerging markets,&#8221; said Babb. &#8220;In many of our markets, elections victories have historically been tied to fiscal stances and populist policy. For this to continue it would be very controversial.&#8221;



Morgan Stanley flagged fiscal risks from pre-election spending as a key driver this year for South Africa, Romania, Russia, El Salvador, Dominican Republic and Uruguay.



The ramifications could be felt well beyond this year. The Institute of International Finance (IIF) said the &#8220;tsunami&#8221; of 2024 elections could add to an already record glut of global debt estimated to have hit $310 trillion by the end of 2023.



&#8220;A sudden increase in government spending during this global elections cycle could further elevate interest (payments) for many countries,&#8221; warned Emre Tiftik, Director of Sustainable Research at the IIF, adding that this could create further volatility in markets.



Some fear this could spur a resurgence of so-called bond vigilantes, investors who punish profligate governments by selling their bonds, driving yields higher.



<h2 class="wp-block-heading" id="h-currency-shivers">CURRENCY SHIVERS</h2>



Analysts at Citi, who also warn that the looming emerging markets election cycle might see &#8220;less policy discipline than investors would like&#8221; &#8211; have studied the short-term effects markets might have to contend with.



While some votes are bound to generate more volatility than others, currency markets are often the first to feel election nerves, especially in Latin America, according to Citi strategist Dirk Willer.



He points to a reliable pattern for Mexico&#8217;s peso that sees the currency weakening in the lead-up to the vote only to strengthen on the emergence of some kind of certainty once the election result seems reasonably established. Latin America&#8217;s second-largest economy is scheduled to hold elections on June 2 with the incumbent party&#8217;s candidate enjoying a healthy lead in opinion polls.



Evidence of the heavy election cycle shaping investment flows to equities already emerged in 2023, said Karim Chedid, head of EMEA iShares investment strategy at BlackRock.



&#8220;We are seeing an evolution of the EM trade from broad to more granular which I am keeping on my radar in 2024 because of the heavy election calendar,&#8221; said Chedid, singling out Mexico but also India.



The world&#8217;s most populous country is set to hold elections in April or May, with self-styled strong man Narendra Modi expected to win a third term as prime minister.



(Reporting by Karin Strohecker, additional reporting by Libby George and Jorgelina do Rosario, graphics by Sumanta Sen and Marc Jones, Editing by Hugh Lawson)

FILE PHOTO: Commuters pass by as posters of an election candidate hang on the street ahead of the general election in Dhaka

Emerging markets brace for wave of elections with fiscal discipline at stake

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="810" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/download-62.jpg" alt="" class="wp-image-423481" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/download-62.jpg 810w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/download-62-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/download-62-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/download-62-768x512.jpg 768w" sizes="auto, (max-width: 810px) 100vw, 810px" /><figcaption class="wp-element-caption">FILE PHOTO: A person holds a new 1000 naira note as the Central Bank of Nigeria releases the notes to the public through the banks in Abuja, Nigeria, December 15, 2022. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Dec 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s foreign exchange reserves dipped to a six-year low of $32.87 billion at the end of December, data showed on Friday, as the central bank sold dollars to try to prop up the ailing naira currency.



A backlog of unsettled forwards, undelivered promises of dollar inflows and a two-decade peak in inflation have translated into a tumultuous year for the naira, which has lost over 50% of its value to become the third worst-performing global currency in 2023, said Kyle Chapman, FX markets analyst at London-based Ballinger &amp; Co.



This prompted the Central Bank of Nigeria (CBN) to run down its foreign exchange reserves, which peaked at $47.63 billion in June 2018, to defend the naira. The dollar reserve of Africa&#8217;s biggest economy in December dwindled to a level last seen in September 2017, when it stood at $32.16 billion.



&#8220;The naira&#8217;s downwards momentum is likely to continue through much of 2024, and its ultimate trajectory will depend on whether the CBN&#8217;s rhetoric transforms into concrete policy moves that drive up the flow of U.S dollars into Nigeria and shore up trust in the official market,&#8221; Chapman said.



The naira last week touched a low of 1,248 naira on official market and sold for 845 naira on Friday.



It was quoted at 1,210 naira on the parallel market while on the forwards market the naira sold for 1,037.50 to dollar for one-month settlement&nbsp;NGNNDFOR=.



CBN Governor Olayemi Cardoso has said he would allow market forces to determine exchange rates while setting clear, transparent and harmonised rules governing market operations.



&#8220;If the CBN&#8217;s promised measures materialise and (President Bola) Tinubu&#8217;s government enacts structural changes to increase oil production or to drive foreign investment, there is plenty of opportunity for the naira to lift from its record lows,&#8221; Chapman said.



&#8220;But a quick fix is unlikely, and further depreciation will come to counteract supply and demand imbalances.&#8221;



(Reporting by Chijioke Ohuocha; Editing by Nick Macfie)

download-62

Nigeria’s FX reserves dip to six-year low as naira falls

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NWWPQTPSUBJFTJAOHNDF3BPMFA-820x575.jpg" alt="" class="wp-image-440852" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NWWPQTPSUBJFTJAOHNDF3BPMFA-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NWWPQTPSUBJFTJAOHNDF3BPMFA-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NWWPQTPSUBJFTJAOHNDF3BPMFA-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NWWPQTPSUBJFTJAOHNDF3BPMFA-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NWWPQTPSUBJFTJAOHNDF3BPMFA-1536x1077.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NWWPQTPSUBJFTJAOHNDF3BPMFA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Opposition supporters prepare to demonstrate, while riot police amass around Congolese opposition presidential candidate Martin Fayulu&#8217;s headquarters to block a protest by the opposition who are calling for a re-run of last week&#8217;s national election, in Kinshasa, Democratic Republic of Congo December 27, 2023. REUTERS/Benoit Nyemba</figcaption></figure>



Dec 29 (Reuters)&nbsp;&#8211;&nbsp;Democratic Republic of Congo is gradually releasing preliminary results from the Dec. 20 presidential election following a chaotic vote and an unscheduled ballot extension that have led the opposition to demand a re-run.



Below are the latest figures from the election commission, known as the CENI, along with details about how the commission is counting votes and releasing its tally, and why critics are disputing the results.



<h2 class="wp-block-heading" id="h-what-do-the-latest-results-show">WHAT DO THE LATEST RESULTS SHOW?</h2>



The latest CENI update on Thursday showed President Tshisekedi well ahead of his 18 challengers, with just over 76% of around 12.5 million votes counted so far.



Businessman Moise Katumbi and former energy executive Martin Fayulu stand in second and third place respectively with almost 17% and more than 4% of the vote.



The provisional tally so far is based on results from 46,422 out of almost 76,000 polling stations, according to the CENI.



<h2 class="wp-block-heading" id="h-how-are-they-being-released">HOW ARE THEY BEING RELEASED?</h2>



The CENI set up a results centre in Kinshasa called Basolo &#8211; &#8220;Truth&#8221; in the Lingala language &#8211; from where it has issued updates on a near-daily basis since Dec. 22.



The commission refers to these results as trends and has not yet said how many of Congo&#8217;s 44 million registered voters participated in the election.



<h2 class="wp-block-heading" id="h-how-is-the-ceni-counting-votes">HOW IS THE CENI COUNTING VOTES?</h2>



According to Congolese electoral law, results released by the CENI are meant to be based on tallies of the paper votes cast in each polling station that have been signed off by witnesses and observers. This is meant to improve transparency and allow results to be easily double-checked if contested.



But the CENI president has told local media provisional results released so far have been based on a combination of such tallies and figures taken straight from voting machines.



In a report on the election released on Dec. 28, the main independent CENCO-ECC election monitoring group urged the CENI only to publish results based on correctly consolidated tallies from local centres.



<h2 class="wp-block-heading" id="h-why-are-critics-disputing-the-results">WHY ARE CRITICS DISPUTING THE RESULTS?</h2>



Opposition presidential candidates say election day irregularities, including the CENI&#8217;s unscheduled extension of some voting beyond Dec. 20, have compromised the credibility of the results, calling for them to be annulled.



The CENCO-ECC observer mission and another local election monitoring group, which together deployed thousands of observers, have also highlighted issues on election day and during the vote-count they say throw the integrity of the results into question.



The CENI has acknowledged there were delays on election day, but says it is still on track to deliver a free and fair vote.



<h2 class="wp-block-heading" id="h-when-could-we-get-full-results">WHEN COULD WE GET FULL RESULTS?</h2>



The CENI is scheduled to release full provisional results from the presidential vote by Dec. 31.



(Writing by Anait Miridzhanian; Editing by Alex Richardson)

Congo deploys riot police ahead of banned anti-election protest

FACTBOX-The latest results in Congo’s disputed election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DL5CS5S3DVPC7KEA5MAUSUW264-820x615.jpg" alt="" class="wp-image-440448" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DL5CS5S3DVPC7KEA5MAUSUW264-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DL5CS5S3DVPC7KEA5MAUSUW264-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DL5CS5S3DVPC7KEA5MAUSUW264-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DL5CS5S3DVPC7KEA5MAUSUW264-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DL5CS5S3DVPC7KEA5MAUSUW264-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DL5CS5S3DVPC7KEA5MAUSUW264-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi gestures during an interview with Reuters in Dubai, United Arab Emirates, June 30, 2022. REUTERS/Abdel Hadi Ramahi</figcaption></figure>



DUBAI, Dec 28 (Reuters)&nbsp;&#8211;&nbsp;The United Arab Emirates has completed negotiations for a bilateral trade agreement with the Republic of Congo, the second such deal announced with an African state in a week.



&#8220;The breadth of the UAE&#8217;s trade network continues to broaden as we conclude negotiations toward a Comprehensive Economic Partnership Agreement with the Republic of Congo-Brazzaville &#8211; a thriving economy in West-Central Africa and valued trade and investment partner,&#8221; Thani Al Zeyoudi, UAE trade minister posted on X, formerly Twitter.



Since 2021, the UAE has initiated a raft of bilateral trade, investment and cooperation deals on its own &#8211; called Comprehensive Economic Partnership Agreements &#8211; to bolster efforts aimed at diversifying income sources and economic sectors.



Last week, the UAE, a major global oil exporter and OPEC member, completed talks for a trade deal with Mauritius, its first with an African country.



(Reporting by Jana Choukeir; writing by Rachna Uppal; editing by Miral Fahmy)

United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi

UAE concludes trade talks with Republic of Congo

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/GNZ4EKIZHBJMHAHGTKTLUHIQ54-820x517.jpg" alt="" class="wp-image-415106" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/GNZ4EKIZHBJMHAHGTKTLUHIQ54-820x517.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/GNZ4EKIZHBJMHAHGTKTLUHIQ54-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/GNZ4EKIZHBJMHAHGTKTLUHIQ54-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/GNZ4EKIZHBJMHAHGTKTLUHIQ54-768x484.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/GNZ4EKIZHBJMHAHGTKTLUHIQ54.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A 3D-printed oil pump jack is seen in front of displayed OPEC logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/File Photo</figcaption></figure>



LONDON, Dec 21 (Reuters) &#8211; Angola has said it is leaving the Organization of the Petroleum Exporting Countries (OPEC) with effect from Jan. 1 2024, after exits from Ecuador in 2020 and Qatar in 2019.



Angola, which joined OPEC in 2007, produces about 1.1 million barrels per day, compared with 28 million bpd for the whole group.



Here are details on OPEC members, market share and Angola&#8217;s oil production.



<h2 class="wp-block-heading" id="h-opec-members-market-share">OPEC MEMBERS, MARKET SHARE</h2>



OPEC was founded in 1960 by Saudi Arabia, Kuwait, Venezuela, Iran and Iraq. Angola joined the group in 2007. Since 2017, OPEC has worked with Russia and other non-members as part of the OPEC+ group to manage the market, in whose agreements Angola participated.



Angola&#8217;s departure from OPEC will leave it with 12 members and crude oil production of about 27 million bpd, some 27% of the 102 million bpd world oil market.



This further reduces OPEC&#8217;s share of the world market which stood at 34% in 2010.



As well as the departure of some members, OPEC and OPEC+ decisions to cut production and rising output of non-OPEC countries including the United States have weighed on its market share.



<h2 class="wp-block-heading" id="h-angola-s-oil-production-quota-dispute">ANGOLA&#8217;S OIL PRODUCTION, QUOTA DISPUTE</h2>



In recent years, Angola has been unable to meet its OPEC+ output quota because of declining investment.



For 2024, OPEC+ lowered Angola&#8217;s oil output target at a meeting last month to 1.11 million bpd. This followed a review by outside analysts to verify production figures for Nigeria, Angola and Congo.



Angola, which had sought a quota of 1.18 million bpd, did not agree with this and sent a note of protest to OPEC.



<h2 class="wp-block-heading" id="h-other-countries-that-left-opec">OTHER COUNTRIES THAT LEFT OPEC</h2>



Angola would join other nations with relatively small oil output that have left in recent years.



Qatar in 2019 quit OPEC to focus on gas, which some analysts interpreted as a swipe at Saudi Arabia, the oil exporting group&#8217;s de facto leader.



Ecuador left in 2020 and Indonesia suspended its membership in 2016.



<h2 class="wp-block-heading" id="h-countries-that-have-joined-opec">COUNTRIES THAT HAVE JOINED OPEC</h2>



Some small producers have also joined OPEC in recent years. Equatorial Guinea became a full member in 2017 and Gabon re-joined in 2016. Congo became a full member in 2018.



(Reporting by Alex Lawler in London, additional reporting by Wendell Roelf in Cape Town, editing by Barbara Lewis)

GNZ4EKIZHBJMHAHGTKTLUHIQ54

FACTBOX-Angola to quit OPEC, reducing membership to 12 countries

<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>



Dec 22 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets stocks receded on Friday and were set for a weekly decline, while currencies edged up, as a rally prompted by the U.S. Federal Reserve&#8217;s dovish narrative somewhat abated ahead of the Christmas holidays.



The MSCI&#8217;s gauge of emerging market stocks&nbsp;.MSCIEF&nbsp;fell 0.5% and was on track for a weekly loss of 0.8%, while a basket of currencies&nbsp;.MIEM00000CUS&nbsp;was up 0.2% against the dollar by 0931 GMT.



The benchmark stocks and currencies index had gained 2.7% and 0.7% respectively in the previous week as the Fed hinted at prospects of likely rate-cuts for next year.



&#8220;The shift from the Fed, it&#8217;s really reopened the possibility of kind of positive returns&#8221; said James Wilson, EM sovereign debt strategist at ING.



&#8220;Overall, for now, many asset classes are kind of picking up on the positivity and it would seem pretty much everything rally all round across (emerging market) equities, fixed income and more kind of risk-sensitive assets, and bonds as well,&#8221; added Wilson.



However, risk sentiment dipped in the last full-trading week of the year after pushback on interest rate cuts from some Fed policymakers, while investors awaited the U.S. core personal consumption expenditure (PCE) data, as they look for more cues on the rate outlook.



In Asia, Hong Kong shares .HIS slid 1.7% after China unveiled new draft rules for online video games, while the Shanghai Composite index .SSEC slipped 0.1% after rising earlier in the session, as five of China&#8217;s largest state banks lowered interest rates on some deposits.



Meanwhile, in Central Europe, the Czech crown&nbsp;EURCZK=&nbsp;inched up 0.1% against the euro a day after the Czech National Bank cut interest rates by 25 basis points (bps), while the Polish zloty&nbsp;EURPLN=&nbsp;was steady ahead of unemployment data.



Elsewhere, Turkery&#8217;s lira TYRTOM=D3 hit fresh lows of 29.2155 per dollar, while the country&#8217;s central bank lifted its key interest rate by 250 bps to 42.5% on Thursday as expected.



The number of foreign visitors arriving in Turkey in November dipped 1.02% from a year earlier to 2.53 million, data showed.



In South America, Argentine sovereign debt rose and stocks dipped after early gains on Thursday, as market participants cautiously welcomed an emergency presidential decree ending limits on exports and taking other steps to deregulate an ailing economy.



(Reporting by Siddarth S in Bengaluru; Editing by Varun H K)

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

Stocks set for weekly declines as rate-cut rally dissipates; FX inch up

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-820x547.jpg" alt="" class="wp-image-420940" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s national flag in Hong Kong. Photographer: Paul Yeung/Bloomberg</figcaption></figure>



BEIJING, Dec 21 (Reuters) &#8211; China, the world&#8217;s top processor of rare earths, on Thursday banned the export of technology to extract and separate the strategic metals, in a further step towards protecting its dominance in several strategic metals.



The commerce ministry sought public opinion last December on the potential move to add the technology to its &#8220;Catalogue of Technologies Prohibited and Restricted from Export&#8221;.



It also banned the export of production technology for rare earth metals and alloy materials as well as technology to prepare some rare earth magnets.



The catalogue&#8217;s stated aims include protecting national security and public interest.



China has significantly tightened rules guiding exports of several metals this year, in an escalating battle with the West over control of critical minerals.



It introduced export permits for chipmaking materials gallium and germanium in August, followed by similar requirements for several types of graphite since Dec. 1.



The move to protect its rare earth technology comes as Europe and the United States scramble to wean themselves off rare earths from China, which accounts for 90% of global refined output.



Rare earths are a group of 17 metals used to make magnets for use in electric vehicles, wind turbines and electronics.



China has mastered the solvent extraction process to refine the strategic minerals, which Western rare earth companies have struggled to deploy due to technical complexities and pollution concerns.



It is not clear to what extent the technology is actually being exported. China has discouraged its export since 2007, said a rare earths analyst, who declined to be named because of the sensitivity of the topic.



&#8220;Other countries like the U.S., Japan and France all have the separation technology but China has the top efficiency and cost advantage,&#8221; he said. (Reporting by Siyi Liu, Dominique Patton and Beijing newsroom; editing by Toby Chopra, Jason Neely, Kirsten Donovan and Tomasz Janowski)

Chinese National Flag

China bans export of rare earth processing tech over national security

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-3-820x461.jpg" alt="" class="wp-image-400703" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-3-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-3-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-3-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-3-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-3.jpg 2000w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An OPEC branded flag sits on a table ahead of the 169th Organization of Petroleum Exporting Countries (OPEC) meeting in Vienna, Austria, on Thursday, June 2, 2016. Saudi Arabia is ready to consider a surprise deal with fellow OPEC members, attempting to mend divisions that had grown so wide many dubbed the group as good as dead. Photographer: Akos Stiller/Bloomberg via Getty Images</figcaption></figure>



LUANDA/LONDON, Dec 21 (Reuters) &#8211; Angola is leaving the Organization of the Petroleum Exporting Countries (OPEC) because membership is not serving its interests, oil minister Diamantino Azevedo said on Thursday.



Angola, which joined OPEC in 2007, produces about 1.1 million barrels of oil per day, compared with 28 million bpd for the whole group.



Confirming an earlier report by local news agency ANGOP, Azevedo told public television the decision to leave was because OPEC membership was not serving Angola&#8217;s interests, but did not give further details.



Oil prices extended losses on the news, with Brent prices down over $1 to $78.50 a barrel by 1250 GMT.



Angola&#8217;s exit is a setback for OPEC and its allies, just as the group tries to get members to cut output to support prices.



Last month, Azevedo&#8217;s office protested a decision by OPEC to cut its production quota for 2024. Bloomberg also quoted Angola&#8217;s OPEC Governor Estevao Pedro as saying the country was unhappy with its 2024 target and did not plan to stick to it.



Disagreements over African output quotas had earlier helped delay a meeting of the wider OPEC+ oil producer group. (Reporting by Miguel Gomes in Luanda, Ahmad Ghaddar and Alex Lawler in London; writing by Bhargav Acharya and Nellie Peyton; Editing by Alexander Winning, Jason Neely and Catherine Evans)

The 169th Organization Of Petroleum Exporting Countries (OPEC) Conference

Angola says it is leaving OPEC

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-820x547.jpg" alt="" class="wp-image-425798" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



LONDON, Dec 21 (Reuters) &#8211; An $11 billion damages bill against Nigeria for a collapsed gas processing project which was procured by bribery has been thrown out by London&#8217;s High Court.



The West African country was on the hook for the sum – representing around a third of its foreign exchange reserves – after a little-known British Virgin Islands-based company took Nigeria to arbitration over the deal.



But the High Court ruled in October that the contract was procured by Process &amp; Industrial Developments (P&amp;ID) paying bribes to a Nigerian oil ministry official.



Judge Robin Knowles also found that P&amp;ID failed to disclose the bribery when it later took Nigeria to arbitration.



He said in a further ruling on Thursday that the damages award should be thrown out immediately, rejecting P&amp;ID&#8217;s argument that the case should be sent back to arbitration.



P&amp;ID was also refused permission to appeal against the ruling, though the company can apply directly to the Court of Appeal. (Reporting by Sam Tobin; Editing by Kate Holton

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria’s $11 bln damages bill for collapsed gas deal thrown out by London court

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



NAIROBI, Dec 21 (Reuters) &#8211; The World Bank has approved two separate loans worth about $1.14 billion combined to Tanzania to support its private sector, develop its commercial capital and fight effects of climate change, the bank said.



The first tranche of financing worth $750 million &#8211; called Development Policy Financing &#8211; is meant to finance reforms such as making business licensing faster and also broaden access to cheap credit to accelerate private sector growth, the bank said in a statement late on Wednesday.



The second lot of $385 million will go towards financing infrastructure and building institutions that will help Tanzania&#8217;s commercial capital Dar es Salaam to cope with the effects of climate change, the bank said.



&#8220;Tanzania remains very vulnerable to climate change and is limited in its preparedness to adapt and respond to the adverse impacts,&#8221; Nathan Belete, World Bank country director for Malawi, Zambia, Zimbabwe and Tanzania, was quoted as saying in the statement.



Out of the east African country&#8217;s 44.39 trillion Tanzanian shillings budget for 2023/24 (July-June) the government expects to borrow 2.1 trillion shillings from external sources.



World Bank&#8217;s loans typically carry low to zero interest with long repayment periods. (Reporting by George Obulutsa Writing by Elias Buryabarema Editing by Bhargav Acharya and Mark Potter)

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

World Bank approves new Tanzania loans worth $1.14 bln

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Congo-votes-in-extended-chaotic-election-as-opposition-seeks-rerun-820x575.jpg" alt="" class="wp-image-438747" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Congo-votes-in-extended-chaotic-election-as-opposition-seeks-rerun-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Congo-votes-in-extended-chaotic-election-as-opposition-seeks-rerun-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Congo-votes-in-extended-chaotic-election-as-opposition-seeks-rerun-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Congo-votes-in-extended-chaotic-election-as-opposition-seeks-rerun-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Congo-votes-in-extended-chaotic-election-as-opposition-seeks-rerun-1536x1077.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Congo-votes-in-extended-chaotic-election-as-opposition-seeks-rerun-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Democratic Republic of the Congo&#8217;s President Felix Tshisekedi casts his ballot at a polling station during the presidential election, in Kinshasa, the Democratic Republic of Congo December 20, 2023. REUTERS/Zohra Bensemra</figcaption></figure>



KINSHASA, Dec 21 (Reuters) &#8211; The Democratic Republic of Congo voted on Thursday on the second day of a chaotic and in parts violent general election after authorities extended opening hours for polling stations that failed to open the previous day.



The elections across Africa&#8217;s second-largest country were disrupted on Wednesday by delays in delivering election kits and malfunctioning equipment. People also struggled to find their names on registers, while violence caused chaos in other places.



The decision by the election commission, known as CENI, to extend the vote was rejected by five presidential candidates who have called for a rerun.



At stake is not just the legitimacy of the next administration. Congolese election disputes often spark violent unrest with potentially far-reaching consequences. Congo is the world&#8217;s third-largest copper producer, and the top producer of cobalt, a battery component needed for the green transition.



Early on Thursday in Kabare in Congo&#8217;s restive eastern region, 21-year-old Jean Claude Irenge Kalumuna was among the first residents to cast his vote.



&#8220;It makes me happy because yesterday I left here angry,&#8221; Kalumuna said. &#8220;I condemn this way of operating by the CENI with all this disorder, which proves that they were not ready, but they led people to believe that everything was ready.&#8221;



At a school in the capital Kinshasa, Reuters reporters saw voting taking place in one classroom, while vote-counting from Wednesday was under way in another.



Throughout Wednesday, observers warned about delays and failures to open polling stations and other issues, including malfunctioning electronic voting systems.



Speaking to reporters on Wednesday, CENI president Denis Kadima acknowledged that many polling stations had opened late and some not at all.



He said that around 70% of voters had been able to vote and that the delays would not affect the credibility of the process.



Five opposition candidates, including top challengers Martin Fayulu and Nobel Laureate Denis Mukwege, said the commission had no constitutional or legal right to extend the vote.



They demanded &#8220;the reorganisation of these failed elections by a differently structured CENI&#8221; and at a date agreed by all stakeholders in a joint statement late on Wednesday.



Congo&#8217;s former ruling coalition, the Common Front for Congo of former president Joseph Kabila, called the elections a &#8220;parody&#8221; that had brought shame on the country.



It said that half the polling stations had not opened on Wednesday and two-thirds of those that did faced problems.



&#8220;What we witnessed today was a genuine shipwreck of the electoral process,&#8221; the coalition said in a statement late on Wednesday. It asked its members to stand by for further instructions on actions to be taken.



The tumult of election day followed a campaign marred by political violence and repeated warnings from the opposition and observers about a lack of transparency. Their concerns included issues with the voter list and illegible ID cards.



For months, the electoral commission rejected the opposition&#8217;s allegations of mismanagement and fraud. It insisted it could deliver a free and fair vote as promised, even as critics flagged irregularities they said would jeopardise the legitimacy of the results.



(Reporting by Crispin Kyala, Ange Kasongo, Sonia Rolley and Christophe Van Der Perre Writing by Bate Felix Editing by Nellie Peyton and Nick Macfie)

Congo holds presidential election  in Kinshasa

Congo votes in extended, chaotic election as opposition seeks rerun

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg" alt="" class="wp-image-422104" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-1536x1032.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of IMF at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo</figcaption></figure>



JOHANNESBURG, Dec 20 (Reuters) &#8211; The International Monetary Fund&#8217;s board on Wednesday approved an immediate $187 million loan payout to Zambia and said the country was revising a restructuring proposal for $3 billion of bonds that official creditors had rejected last month.



It will be the third payout under the southern African country&#8217;s $1.3 billion Extended Credit Facility arrangement approved in August 2022.



One of the African continent&#8217;s largest copper producers, Zambia defaulted on its debts three years ago during the COVID-19 pandemic, and its restructuring efforts have been beset by delays.



Zambia suffered a major setback in November when its official creditors rejected a preliminary restructuring deal with bondholders over whether it offered comparable debt relief to what they had agreed to.



The IMF&#8217;s mission chief for Zambia, Mercedes Vera Martin, told reporters on a conference call that the conditions under which &#8220;comparability of treatment&#8221; would be met were still under deliberation by Zambia&#8217;s Official Creditor Committee (OCC).



In a question-and-answer document posted on its website, the IMF said Zambian authorities were further revising their Eurobond restructuring proposal to meet comparability of treatment requirements, which are defined by official creditors.



&#8220;While significant progress has been achieved, some adjustments still need to be made until both program parameters and comparability of treatment, as required by official bilateral creditors, are met,&#8221; the IMF said in the document.



Western officials in the past have accused China of holding up the restructuring process, something Beijing consistently denied, while international bondholders complained about being shut out of negotiations.



&#8220;It is good that the OCC can voice their concerns about meeting comparability of treatment,&#8221; said the IMF&#8217;s Martin.



But, she said, the protracted restructuring negotiations were taking a toll on Zambia&#8217;s economic recovery, after it was hit by the pandemic and the default. Its kwacha currency has depreciated sharply against the dollar and inflation has risen in recent months.



Zambia&#8217;s government said the IMF board approval of the next loan payout was an endorsement of its reforms and said it would boost investor confidence. (Savage reported from London and Miridzhanian from Johannesburg; Additional reporting by Chris Mfula in Lusaka and Nellie Peyton in Johannesburg; Editing by Alexander Winning and Leslie Adler)

W3TRJMXBPRNATIXO27SFJRC77U

IMF releases $187 mln Zambia payout, says restructuring proposal being revised

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Global-banks-see-no-recession-US-companies-are-more-circumspect-820x547.jpg" alt="" class="wp-image-438421" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Global-banks-see-no-recession-US-companies-are-more-circumspect-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Global-banks-see-no-recession-US-companies-are-more-circumspect-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Global-banks-see-no-recession-US-companies-are-more-circumspect-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Global-banks-see-no-recession-US-companies-are-more-circumspect-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Global-banks-see-no-recession-US-companies-are-more-circumspect-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Global-banks-see-no-recession-US-companies-are-more-circumspect-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo</figcaption></figure>



SINGAPORE, Dec 20 (Reuters) &#8211; Heading into 2024, analysts say the U.S. recession they&#8217;d been forecasting for two years isn&#8217;t coming anymore. Everyone else, from companies to investors, is still bracing for a slowdown caused by tepid consumer demand.



Dissonance between the habitually bullish investment bank analysts and the more circumspect money managers is not new. What&#8217;s different this time is the level of prudence and caution from some top companies as they outline their plans for next year.



Real money managers are in no doubt about which side to trust. After months of being wrong footed, sell-side analysts are a bit too bullish about growth prospects, Fed rate cuts and a consumption recovery, they say.



&#8220;Take a grain of salt maybe to measuring the efficacy of some of these sell-side forecasts,&#8221; says Patrick McDonough, a portfolio manager for PGIM Quantitative Solutions. &#8220;I would be a little bit more on the side of the companies.



Consensus forecasts from major banks, including Goldman Sachs, Morgan Stanley, UBS and Barclays, are for global growth to be constrained in 2024 by elevated interest rates, pricier oil and a weakened China, but with low odds for a recession. A year ago, many banks were forecasting a U.S. recession.



Businesses are sounding more grim than they did last year. In its collection of management commentary from 150 earnings calls in the third-quarter reporting season, Deutsche Bank last month said companies broadly characterized demand as being somewhat weak, but not alarmingly so. Companies have continued to cut inventories as they adjust to sluggish demand for goods.



The words used by companies to describe demand included soft, sluggish, slow, lackluster, choppy, muted, constrained, challenging, weak, pressured and uneven, Deutsche said.



Retailer Walmart said earlier this month that while it has been surprised by the resilience of the consumer this year in the face of rising prices, that behaviour was changing and it was turning cautious.



Walmart&#8217;s chief financial officer John David Rainey told a Morgan Stanley consumer and retail conference earlier this month the firm wasn&#8217;t trying to ring an alarm bell, but that caution was &#8220;certainly a departure from what we saw in the first three quarters of the year&#8221;.



In its latest earnings transcript, discount chain Dollar General said gross profit was down, interest expenses had climbed and that it anticipated &#8220;customer spending may continue to be constrained as we head into 2024, especially in discretionary categories.&#8221;



Consumer giant Procter &amp; Gamble sounded a more optimistic note. Andre Schulten, the company&#8217;s chief financial officer, recently said P&amp;G was able to grow its share of volume and value in U.S. markets in the latest quarter, noting the &#8220;consumer remains strong.



The disconnect does not perturb fund managers. What matters to them however is whether the Federal Reserve manages to avert recession and yet contain inflation, without hurting consumers.



After leaving markets guessing for months, the Fed&#8217;s most recent update shows it recognizes that need for balance and that officials are sensitive to the risks of over-tightening policy and pushing the economy into a faster than necessary slowdown.



Several companies are already feeling the slowdown.



&#8220;The consumer is starting to slow down a little bit and the consumer-based companies, which really are almost all the big companies at this point, are starting to talk about that,&#8221; said PGIM&#8217;s McDonough. The global asset manager has $1.27 trillion in assets.



Consumer spending has indeed been cooling, as per surveys from the Institute for Supply Management (ISM). A November survey from the Conference Board showed about two-thirds of consumers still perceived a recession to be &#8220;somewhat&#8221; or &#8220;very likely&#8221; to happen over the next year.



RECESSION IS COMING?



The past two years haven&#8217;t been easy for macro pundits trying to reconcile the drivers of a post-pandemic bounce and trillions of dollars worth of stimulus in global markets alongside hawkish central banks.



Indicators from manufacturing surveys to an inverted U.S. yield curve and a bumper fiscal spending plan all screamed slowdown, or even recession.



Reuters polls conducted through 2022 and until mid-2023 consistently showed economists&#8217; median probability for a U.S. recession within a year were above 60%. That probability is now closer to 45%.



&#8220;To be fair, it&#8217;s been a difficult year,&#8221; said Chris Rands, a senior portfolio manager with the global multi-asset team at Nikko Asset Management.



&#8220;If you were to go back and look historically, if you use U.S. lead indicators, for example, they&#8217;ve been telling you that the U.S. should have entered a recession 12 months ago.&#8221;



&#8220;But if you&#8217;ve been able to make that argument for 12 months, you&#8217;ve potentially got egg on your face.&#8221; Big banks forecast the global economy slowing in 2023, with a likely U.S. recession. Even the most bullish forecasts had the S&amp;P 500 rising about 9% in 2023. It has rallied 21% so far.



In 2022, sell-side analysts from major banks expected growth to stumble but for stocks to keep rising. The S&amp;P 500 fell 19% that year.



Forecasts for 2024 are more conservative, and laced with caveats. Even the most bullish Street forecasts for US stocks are for single-digit gains.



&#8220;Companies talk to their bankers and to economists and consultants, and so on. And so they are all getting the same picture, which is there&#8217;s going to be a slowdown,&#8221; said Deutsche Bank&#8217;s Thatte.



&#8220;They are biding their time and being cautious which makes sense. And so if growth picks up, they will respond accordingly.&#8221;



(Additional reporting by Rae Wee Graphics by Sarupya Ganguly; Editing by Anna Driver)

The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City

Global banks see no recession, US companies are more circumspect

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="477" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Ghanas-third-quarter-economic-growth-slows-to-2.0.jpg" alt="" class="wp-image-438378" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Ghanas-third-quarter-economic-growth-slows-to-2.0.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Ghanas-third-quarter-economic-growth-slows-to-2.0-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Ghanas-third-quarter-economic-growth-slows-to-2.0-137x90.jpg 137w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A general view of Adabraka in Accra, Ghana, File. REUTERS/Luc Gnago/File Photo</figcaption></figure>



ACCRA, Dec 20 (Reuters) &#8211; Ghana&#8217;s economic growth slowed to 2.0% year-on-year in the third quarter of 2023 from 3.2% in the previous quarter, driven by a decline in the industrial sector, its statistics agency said on Wednesday.



The West African country is grappling with its worst economic crisis in a generation, with a sharply weaker cedi currency and double-digit price rises for consumers .



Contributing to the third-quarter slowdown were contractions in sub-sectors of industry such as mining and construction, the statistics agency said. Agriculture made a positive contribution, even though cocoa farming is having an unusually bad season.



Meanwhile producer inflation slowed to 2.0% year-on-year in November from a revised 9.7% in October, the statistics office said separately on Wednesday.



Consumer inflation also slowed last month, to 26.4% from 35.2% in October.



Ghana is negotiating a debt restructuring deal with its official creditors. It hopes to reach a deal soon to secure the next $600 million from the International Monetary Fund under a $3 billion rescue package. (Reporting by Christian Akorlie and Maxwell Akalaare Adombila; Writing by Nellie Peyton; Editing by Alexander Winning and Alex Richardson)

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IMF releases $187 mln Zambia payout, says restructuring proposal being revised

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Reuters

Ghana official creditors to meet Monday, mull debt restructuring terms -sources

Italy to put Africa development, AI at heart of its G7 presidency

South Africa business activity shrinks in Dec amid port gridlock -PMI

Emerging markets brace for wave of elections with fiscal discipline at stake

Nigeria’s FX reserves dip to six-year low as naira falls

FACTBOX-The latest results in Congo’s disputed election

UAE concludes trade talks with Republic of Congo

FACTBOX-Angola to quit OPEC, reducing membership to 12 countries

Stocks set for weekly declines as rate-cut rally dissipates; FX inch up

China bans export of rare earth processing tech over national security

Angola says it is leaving OPEC

Nigeria’s $11 bln damages bill for collapsed gas deal thrown out by London court

World Bank approves new Tanzania loans worth $1.14 bln

Congo votes in extended, chaotic election as opposition seeks rerun

IMF releases $187 mln Zambia payout, says restructuring proposal being revised

Global banks see no recession, US companies are more circumspect

Ghana’s third-quarter economic growth slows to 2.0%

News Tips

Advertise With Us

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