<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/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-820x547.jpg" alt="" class="wp-image-433337" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">World Bank President Ajay Banga speaks on the second day of the annual meeting of the International Monetary Fund and the World Bank, following last month&#8217;s deadly earthquake, in Marrakech, Morocco, October 10, 2023. REUTERS/Susana Vera</figcaption></figure>



Dec 6 (Reuters)&nbsp;&#8211;&nbsp;World Bank President Ajay Banga on Wednesday called on member countries to make the next replenishment of the lender&#8217;s fund for the world&#8217;s poorest countries the largest ever, warning that the International Development Association (IDA) was being pushed to its limits by increasing demands.



Opening a mid-term review of the IDA 20th replenishment totaling $93 billion, Banga said World Bank shareholders, donor countries and philanthropies needed to dig deeper to help IDA deliver better development outcomes to low-income countries.



&#8220;The truth is we are pushing the limits of this important concessional resource and no amount of creative financial engineering will compensate for the fact that we need more



funding,&#8221; Banga told a conference in Zanzibar, Tanzania. &#8220;This must drive each of us to make the next replenishment of IDA the largest of all time.&#8221;



The current, 20th IDA funding round is due to be completed on June 30, 2025. The Zanzibar conference is aimed at adding to that funding, but Banga used to launch his campaign for the subsequent round of funding to well exceed the $93 billion.



His call for increased concessional resources, which have been depleted by a slow rebound from COVID-19 and negative spillovers from Russia&#8217;s war in Ukraine, came days after Banga emphasized the World Bank&#8217;s ambitious plans to expand climate finance at the COP28 conference in Dubai.



Banga at COP28 announced new targets to boost the climate-related portion of its total annual financing to 45% from 35% currently, with an immediate increase of about $9 billion. Some developing countries have voiced concerns that the lender&#8217;s new expanded mission to tackle climate change and other global crises will divert funding and attention away from the bank&#8217;s core development mission.



Banga has promised to pursue both and argues that positive development and climate outcomes depend on each other.



He also said the World Bank needs to revamp how it evaluates its performance to focus on improved outcomes, not numbers of projects or dollars disbursed. That means moving towards platforms that can be replicated, such as an IDA-financed mini-grid that delivers electricity to rural communities in Nigeria.



&#8220;But this is just one example, I want to see 100,000 &#8211; 200,000 &#8211; half a million more,&#8221; he said, adding that IDA was investing $5 billion to deliver affordable renewal electricity to 100 million Africans before 2030.



(Reporting by David Lawder; Editing by Kim Coghill)

Second day of the International Monetary Fund and the World Bank meeting in Marrakech

World Bank’s Banga calls for record replenishment of fund for poorest countries

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/WO4SLJG5EJMS5DPGE4XV6WUBNY-820x518.jpg" alt="" class="wp-image-433333" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/WO4SLJG5EJMS5DPGE4XV6WUBNY-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/WO4SLJG5EJMS5DPGE4XV6WUBNY-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/WO4SLJG5EJMS5DPGE4XV6WUBNY-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/WO4SLJG5EJMS5DPGE4XV6WUBNY-768x485.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/WO4SLJG5EJMS5DPGE4XV6WUBNY-1536x970.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/WO4SLJG5EJMS5DPGE4XV6WUBNY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A logo is seen at the World Trade Organization (WTO) headquarters before a news conference in Geneva, Switzerland, October 5, 2022. REUTERS/Denis Balibouse/File Photo</figcaption></figure>



BERLIN, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;The EU should join forces with African countries to reform the World Trade Organization&#8217;s (WTO) subsidy rules as a way to counter Chinese market distortions and diplomatic influence, the German Economic Institute (IW) argued in a paper on Wednesday.



The IW, which is financed by prominent German business associations and carries weight among Berlin policymakers, published the paper ahead of an EU-China summit in Beijing on Thursday and Friday.



The issue of unfair competition is expected to top the agenda, three months after the European Commission launched an anti-subsidy probe into Chinese electric vehicles.



Reform is to be a key topic at the WTO&#8217;s 13th ministerial conference (MC13) in February, although it requires a full consensus to make any substantive changes.



The WTO&#8217;s Africa negotiating group has proposed reforming current subsidy rules to better support developing countries &#8211; for example allowing them to have local content requirements and to grant subsidies for environmental protection.



The IW argues in its new paper, seen by Reuters ahead of publication, that the EU should expand this initiative to also tighten subsidy rules on the world&#8217;s top trading countries.



Those major players would be determined according to their share of global trade or income level. That means new rules would affect China, even though the WTO classifies it as a developing country.



Such a joint EU-African initiative could pressure China to accept reform and would help limit the growing global subsidy race.



&#8220;In addition, the EU could counter China’s attempt to present itself as the supporter of developing countries’ interests in Geneva,&#8221; wrote Juergen Matthes and Samina Sultan, authors of the paper &#8220;Reforming the WTO’s subsidy rules –A new opportunity to tackle the global distortions of China’s state capitalism&#8221;.



&#8220;If China blocked the&#8230; reform, it would also block the vital interests of the African Group and other developing countries in gaining more policy space for development.&#8221;



(Reporting by Sarah Marsh; Editing by David Gregorio)

FILE PHOTO: A logo is seen at the WTO in Geneva

EU should join Africa on WTO reform to counter China -IW study

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



NAIROBI, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank unveiled a big interest rate hike on Tuesday aimed at stabilising the shilling currency&nbsp;KES=, whose depreciation has spurred price pressures, curbed foreign investment and affected debt-servicing.



The Central Bank of Kenya raised its policy rate&nbsp;KECBIR=ECI&nbsp;by 2 percentage points to 12.5%, its first hike since June when it raised it by 1 percentage point.



&#8220;There is need to adjust the monetary policy stance to address the pressures on the exchange rate and mitigate second round effects,&#8221; the central bank&#8217;s Monetary Policy Committee (MPC) said in a statement.



&#8220;This will ensure that inflationary expectations remain anchored, while setting inflation on a firm downward path towards the 5.0 percent mid-point of the target range.&#8221;



Inflation&nbsp;KECPI=ECI&nbsp;dipped to 6.8% year-on-year in November from 6.9% in October, with the central bank saying on Tuesday that exchange rate depreciation had contributed about 3.0 percentage points to the November reading.



The shilling&nbsp;KES=&nbsp;is down more than 19% against the dollar this year, having struck repeated all-time lows along the way.



&#8220;The MPC &#8230; stands ready to further tighten monetary policy as necessary to ensure price and exchange rate stability are achieved,&#8221; the central bank said, adding its MPC would meet again in February 2024.



Razia Khan, chief Africa and Middle East economist at Standard Chartered Bank, said there had been pressure from the International Monetary Fund and World Bank to tighten policy meaningfully.



&#8220;Market interest rates were already well in excess of the policy rate, so it&#8217;s questionable whether this has a near-term impact,&#8221; she said.



Kenya is being watched closely to see how it handles the settlement of a $2 billion Eurobond that is maturing in June next year.



Central bank governor Kamau Thugge told reporters that authorities were expecting $300 million from regional bank Trade and Development Bank in the first two weeks of December&nbsp;and&nbsp;that would be used to buy back part of the Eurobond.



Thugge said Kenya expected a further $1.25-$1.5 billion in budget support from the World Bank early next year.



(Reporting by George Obulutsa and Duncan Miriri; Editing by Alexander Winning and Christina Fincher)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya central bank tries to stabilise shilling with big rate hike

<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/VMMSUJP37ZIHJBSNEGRW226KR4-1-820x547.jpg" alt="" class="wp-image-433094" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">British Home Secretary James Cleverly and Rwandan Minister of Foreign Affairs Vincent Biruta sign a new treaty, in Kigali, Rwanda, December 5, 2023. The treaty will address concerns by the Supreme Court, including assurances that Rwanda will not remove anybody transferred under the partnership to another country. Ben Birchall/Pool.</figcaption></figure>



KIGALI/LONDON, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;British interior minister James Cleverly signed a new treaty with Rwanda on Tuesday in an attempt to overcome a court decision to block the government&#8217;s controversial policy of sending asylum seekers to the East African country.



The Rwanda plan is at the centre of the government&#8217;s strategy to cut migration and is being watched closely by other countries considering similar policies.



The United Kingdom&#8217;s Supreme Court last month ruled that such a move would violate international human rights laws enshrined in domestic legislation.



The new treaty will include an agreement that Rwanda would not expel asylum seekers to a country where their life or freedom would be threatened &#8211; one of the court&#8217;s major concerns.



There will also be a monitoring committee to enable individuals to lodge confidential complaints directly to them and a new appeal body made up of judges from around the world.



Cleverly said there was now no &#8220;credible&#8221; reason to block the deportation flights because the treaty addressed all the issues raised by the Supreme Court and no extra money had been given to Rwanda to upgrade the deal from the existing memorandum of understanding.



&#8220;I really hope that we can now move quickly,&#8221; Cleverly told a press conference in Rwanda&#8217;s capital Kigali.



Many lawyers and charities said it was unlikely that deportation flights could start before next year&#8217;s election. The opposition Labour Party, which has a double-digit lead in the polls, plans to ditch the Rwanda policy if it wins.



Under the plan agreed last year, Britain intends to send thousands of asylum seekers who arrived on its shores without permission to Rwanda to deter migrants crossing the Channel from Europe in small boats.



In return, Rwanda has received an initial payment of 140 million pounds ($180 million) with the promise of more money to fund the accommodation and care of any deported individuals.



<h2 class="wp-block-heading" id="h-pressure">PRESSURE</h2>



Prime Minister Rishi Sunak is under intense pressure to cut net migration, which hit a record 745,000 last year, with the vast majority coming through legal routes.



&#8220;Stop the boats&#8221; is one of five goals Sunak set for his government, to end the flow of asylum seekers who pay people smugglers for their Channel crossings, often in overcrowded boats that are not seaworthy.



The Supreme Court ruled against the Rwanda plan because there was a risk that deported refugees would have their claims wrongly assessed or returned to their country of origin to face persecution.



The new treaty is expected to be followed later this week by the publication of legislation declaring Rwanda a so-called safe country, designed to stop legal challenges against the planned deportation flights.



However, this is likely to trigger a new round of political and legal wrangling. The first flight was scheduled to go last summer but was cancelled at the last moment because of legal challenges.



Sarah Gogan, an immigration lawyer at Harbottle &amp; Lewis, said Rwanda&#8217;s human rights record meant the government&#8217;s policy would be challenged.



&#8220;Rwanda is an unsafe country and this is not a quick fix,&#8221; she said. &#8220;You cannot in a matter of weeks or months reform a country and turn it into one with an impartial judiciary and administrative culture.&#8221;



Yvette Cooper, Labour&#8217;s home affairs spokeswoman, dismissed the government&#8217;s latest plans as another &#8220;gimmick&#8221;.



(Reporting by Andrew MacAskill and Michael Holden; Additional reporting by Rishabh Jaiswal, Muvija M and Kylie MacLellan; Editing by Bernadette Baum and Angus MacSwan)

VMMSUJP37ZIHJBSNEGRW226KR4-1

UK interior minister signs new Rwanda treaty to resurrect asylum plan

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="519" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-820x519.jpg" alt="" class="wp-image-433031" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-1536x973.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Electricity lights up the central business district of Cape Town, South Africa, June 18, 2019. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



PRETORIA, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;The South African economy recorded a minor contraction in the third quarter of this year as output fell in the agriculture, mining and construction industries, statistics agency data showed on Tuesday.



The 0.2% contraction in quarter-on-quarter seasonally adjusted terms&nbsp;ZAGDPN=ECI&nbsp;was slightly larger than the 0.1% predicted by analysts polled by Reuters and followed two consecutive quarters of growth.



The latest figures mean Africa&#8217;s most industrialised economy grew just 0.3% in the first nine months of the year.



Joe de Beer, head of economic statistics at Statistics South Africa, said that almost all sectors of the economy were neither growing nor declining very much.



&#8220;The economy has moved sideways, &#8230; the numbers are just oscillating around zero,&#8221; he said at a briefing in the capital Pretoria.



In unadjusted year-on-year terms Q3 GDP contracted 0.7%&nbsp;ZAGDPY=ECI, also worse than analysts&#8217; prediction for a fall of 0.2%.



Previously growth in expenditure was driven by private investment in renewable energy as businesses look to compensate for the state utility Eskom implementing the worst power cuts on record. However this has slowed.



&#8220;In the second quarter there was a huge surge in imports of green energy-related products and that wasn&#8217;t sustained in the third quarter,&#8221; said de Beer.



Jason Tuvey, deputy chief emerging markets economist at Capital Economics, said the big picture was that South Africa&#8217;s economic recovery from the COVID-19 pandemic had been among the worst in emerging markets.



He predicted a modest pick-up in growth in 2024.



&#8220;The drag from power cuts should start to ease as efforts to improve supply bear fruit. And, with the election looming, fiscal policy will probably be less restrictive,&#8221; he said, referring to upcoming national elections expected to take place in the first half of 2024.



(Additional reporting by Tannur Anders in Johannesburg; Editing by Alexander Winning and Frances Kerry)

DUFCFSKNIRJZDEEYXNXJIRBYTY-1

South African economy contracts marginally in third quarter

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-820x546.jpg" alt="" class="wp-image-413517" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-1536x1023.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. Secretary of State Antony Blinken speaks during the release of the &#8220;2020 Country Reports on Human Rights Practices&#8221; at the State Department in Washington, DC, U.S., March 30, 2021. Mandel Ngan/Pool via REUTERS/File Photo</figcaption></figure>



WASHINGTON, Dec 4 (Reuters)&nbsp;&#8211;&nbsp;The United States on Monday expanded a visa restriction policy on Ugandan officials to include those it believes are responsible for undermining democracy and repressing marginalized groups in Uganda, while also announcing a new visa restriction policy for officials in Zimbabwe.



U.S. Secretary of State Antony Blinken announced the visa restrictions and mentioned, among others, the marginalization of groups like the LGBT community in Uganda and civil society advocates in Zimbabwe. Blinken&#8217;s statements did not name any official.



Uganda&#8217;s anti-LGBTQ law, considered one of the harshest in the world, was enacted in May and carries the death penalty for &#8220;aggravated homosexuality,&#8221; an offence that includes transmitting HIV through gay sex.



In June, the U.S. State Department imposed visa restrictions on Ugandan officials after the passage of the law. The State Department also previously put visa restrictions on Ugandan officials following the country&#8217;s 2021 elections, which it called &#8220;flawed.&#8221;



&#8220;Today, I am announcing the expansion of the visa restriction policy to include current or former Ugandan officials or others who are believed to be responsible for, or complicit in, undermining the democratic process in Uganda or for policies or actions aimed at repressing members of marginalized or vulnerable populations,&#8221; Blinken said on Monday.



&#8220;These groups include, but are not limited to, environmental activists, human rights defenders, journalists, LGBTQI+ persons, and civil society organizers.&#8221;



Blinken also announced a new visa restriction policy for those he said were undermining democracy in Zimbabwe.



Zimbabwean President Emmerson Mnangagwa won a second term in a disputed vote in August, which the opposition described as a &#8220;gigantic fraud&#8221; amid criticism from election observers who say the election failed to meet regional and international standards.



&#8220;Anyone who undermines the democratic process in Zimbabwe &#8211; including in the lead-up to, during, and following Zimbabwe&#8217;s August 2023 elections &#8211; may be found ineligible for U.S. visas under this policy,&#8221; Blinken said.



(Reporting by Kanishka Singh in Washington; Editing by Leslie Adler and Sandra Maler)

FILE PHOTO: “2020 Country Reports on Human Rights Practices” release at the State Department in Washington

US restricts visas for Uganda, Zimbabwe officials, citing repression

<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/GettyImages-1251771740-820x547.jpg" alt="" class="wp-image-432767" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ebrahim Patel, South Africa&#8217;s trade minister, speaks during the South Africa Investment Conference in Johannesburg, South Africa, on Thursday, April 13, 2023. Today&#8217;s conference starts as data this week showed that the South African economy has probably entered a technical recession. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Dec 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s automotive industry will likely produce its first electric vehicle (EV) in 2026, the trade minister said on Monday, as he outlined plans for the country&#8217;s green&nbsp;transport&nbsp;transition.



The electrification of transport is one of the key pillars underpinning South Africa&#8217;s Just Energy Transition (JET) plan for a low-carbon and climate-resilient economy.



The JET plan estimates that an investment of 128.1 billion rand ($6.84 billion) would be needed from 2023–2027 for the transport sector to contribute meaningfully to South Africa&#8217;s decarbonisation commitments.



South Africa is the largest automotive manufacturing hub on the African continent, hosting global brands such as Toyota, Isuzu, Volkswagen and Mercedes, among others.



It is also highly integrated into the global supply chain, drawing components from across the world and exporting the final consumer product to more than 150 countries worldwide.



&#8220;We&#8217;re already producing hybrids but we anticipate that the first electric vehicles are likely to be produced already by 2026,&#8221; Minister of Trade, Industry and Competition, Ebrahim Patel told journalists.



Based on discussions his department was having with the automakers, the first batch of EVs will be limited. Growth should then accelerate between 2026 and 2030, with only one manufacturer anticipating moving into battery electric vehicle production after 2030, he added without naming any brands.



In a 68-page EV plan, the government outlined steps to support the transition, such as government incentives, a temporary reduction on import duties for batteries in vehicles produced and sold in the domestic market, and the commercialisation of green hydrogen production as a source of sustainable fuel.



It will also reform network industries, including freight rail and ports and implement energy reforms.



The country&#8217;s power crisis poses one of the risks as the country&#8217;s state-power utility Eskom struggles to keep the lights on.



The effective bans on CO2-emitting vehicles from 2035 in key markets like the European Union and UK will be profound, as they absorb nearly half of South African auto production, the plan read.



($1 = 18.7387 rand)



(Reporting by Nqobile Dludla; Editing by Sharon Singleton)

Key Speakers at the South Africa Investment Conference

South Africa likely to produce first EV in 2026: Minister

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="599" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-820x599.jpg" alt="" class="wp-image-432717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-820x599.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-300x219.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-123x90.jpg 123w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-768x561.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-1536x1122.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: &#8216;COP28 UAE&#8217; logo is displayed on the screen during the opening ceremony of Abu Dhabi Sustainability Week (ADSW) under the theme of &#8216;United on Climate Action Toward COP28&#8217;, in Abu Dhabi, UAE, January 16, 2023. REUTERS/Rula Rouhana/File Photo</figcaption></figure>



DUBAI, Dec 4 (Reuters) &#8211; Money pledges grabbed the spotlight again at COP28 in Dubai on Monday as delegates turned their focus to the yawning gap in the need for climate finance and what&#8217;s on offer.



The United Arab Emirates, the host of this year&#8217;s conference, pledged $270 billion in green finance by 2030 through its banks, and several development banks made fresh moves to scale up their funding efforts, including by agreeing to pause debt repayments when disaster strikes.



But leaders of the region&#8217;s biggest economy and the world&#8217;s biggest oil producer Saudi Arabia have so far not attended the U.N. summit, in sharp contrast to their participation in last year&#8217;s COP27 conference in Sharm el-Sheikh, Egypt.



On Monday, Prince Abdulaziz bin Salman, energy minister and the key climate negotiator, for the kingdom, was a no-show at the Saudi Green Initiative. De facto ruler Crown Prince Mohammad bin Salman also did not deliver a speech to world leaders as scheduled on Friday.



<h2 class="wp-block-heading" id="h-vast-needs">VAST NEEDS</h2>



The amount of cash needed for the energy transition, climate adaptation and disaster relief is overwhelming.



A report released Monday estimated that emerging markets and developing countries will need $2.4 trillion a year in investment to cap emissions and adapt to the challenges posed by climate change.



&#8220;The world is not on track to realise the goals of the Paris Agreement. The reason for this failure is a lack of investment, particularly in emerging market and developing countries outside China,&#8221; said co-author Nicholas Stern, chair of the Grantham Research Institute on Climate Change and the Environment.



&#8220;The central challenge is to accelerate and implement the fostering and financing of this investment from a range of sources.&#8221;



Vulnerable countries that are already being hit by costly climate disasters are asking for billions more through a newly formed disaster fund, although current pledges are only around $700 million.



&#8220;Unless we have an urgent set of decision-making, we are going to suffer what every parent suffers from &#8211; exciting expectations and being unable to deliver,&#8221; said Barbados Prime Minister Mia Mottley, who has become a prominent voice in global discussions about mobilising climate finance.



In a news conference, she urged countries to go beyond voluntary pledges and pleas to charities and private investors and instead to consider taxes as a way to boost climate funding.



A global 0.1% tax on financial services, for example, could raise $420 billion, she said, while a 5% tax on global oil and gas profits in 2022 would have yielded around $200 billion.



&#8220;The planet needs global governance not in a big stick way, but in a simple way of us cooperating with each other to be able to work with the institutions that we have,&#8221; she added.



Other delegates, including U.N. Secretary-General Antonio Guterres, have called for an end to fossil fuel subsidies which have hit a record $7 trillion per year.



Activists with the Asian Peoples&#8217; Movement on Debt and Development said they worried the sums pledged would be inadequate.



&#8220;The climate finance that they have pledged at this COP28 is simply not enough,&#8221; said Pakistani activist Zaigham Abbas, whose country was devastated last year by widespread flooding. &#8220;We are not looking for charity here. We are not looking for peanuts &#8230; The scale of the catastrophe that we are staring is unprecedented.&#8221;



<h2 class="wp-block-heading" id="h-moving-money">MOVING MONEY</h2>



The biggest pledge on Monday came from the UAE&#8217;s banking system, joining peers in other regions in pledging to lend more to green projects. It followed a Friday pledge of $30 billion for climate-related projects from the oil producing Gulf state.



Elsewhere, France and Japan said they would support a move by the African Development Bank to leverage IMF Special Drawing Rights for climate and development.



The European Bank for Reconstruction and Development, meanwhile, said it would include climate resilient debt clauses in new loan deals with some poorer countries.



Danish investment firm Copenhagen Infrastructure Partners announced plans to raise $3 billion for renewable projects in emerging markets.



This year also features the biggest-ever representation of business at the annual U.N. summit, amid hopes for more private investment toward climate causes.



The emirate of Abu Dhabi teamed up with private sector partners including BlackRock and HSBC to launch a climate research and advisory hub to boost financing options in the region.



&#8220;The scale of the climate crisis demands urgent and game-changing solutions from every industry,&#8221; COP28 President Ahmed Al-Jaber said. &#8220;Finance plays a critical role in turning our ambitions into actions.&#8221;



For daily comprehensive coverage on COP28 in your inbox, sign up for the Reuters Sustainable Switch newsletter here.



(Reporting by Simon Jessop, Maha El Dahan and Hadeel Al Sayegh; Additional reporting by Alexander Cornwell, Elizabeth Piper and David Stanway; Editing by Katy Daigle and Miral Fahmy)

FILE PHOTO: ‘COP28 UAE’ logo is displayed on the screen during the opening ceremony of Abu Dhabi Sustainability Week (ADSW) under the theme of ‘United on Climate Action Toward COP28’, in Abu Dhabi

Climate finance takes centre stage at COP28 climate talks

<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 4 (Reuters)&nbsp;&#8211;&nbsp;Most emerging markets stocks and currencies&nbsp;edged&nbsp;up on Monday, while Indian stocks hit new record highs after a string of&nbsp;state&nbsp;election wins for the ruling party, and investors analysed Turkish inflation that hit its highest level this year.



India&#8217;s benchmark stock indices hit fresh all-time highs, after the country&#8217;s ruling Bharatiya Janata Party (BJP) secured key victories in three of the four state assembly elections.



The NSE Nifty 50 index&nbsp;.NSEI&nbsp;advanced 1.9% to 20,656.40 points.&nbsp;The&nbsp;S&amp;P BSE Sensex&nbsp;.BSESNalso&nbsp;gained 1.9% and hit 68,763.07 points.



&#8220;India&#8217;s strong markets rallied further following the vote count on Dec. 3 as investors now expect political stability amid a fast economic recovery,&#8221; said Shumita Deveshwar, chief&nbsp;India&nbsp;economist at TS Lombard.



Separately, Reliance RELI.NS added 1.1% as the Indian oil firm was set to meet executives from Venezuelan state firm PDVSA next week to discuss direct crude sales following the easing of U.S. sanctions on the South American country.



MSCI&#8217;s gauge tracking developing markets currencies&nbsp;.MIEM00000CUS&nbsp;inched up 0.2%, while the equities index&nbsp;.MSCIEF&nbsp;added 0.1% by 0922 GMT.



Last week, both indexes notched their third straight&nbsp;week of&nbsp;gains, extending November&#8217;s rally as investors warmed&nbsp;up&nbsp;to riskier emerging market assets on optimism that interest&nbsp;rates&nbsp;in the U.S. have peaked.



Meanwhile, Turkey&#8217;s lira TRYTOM=D3 weakened to 28.896 to the dollar, though latest data showed annual domestic inflation rose to 61.98% in November, just shy of expectations and rose to its highest level this year boosted by food and transportation prices.



&#8220;Markets remain uncertain if further tightening is on the table and fear the CBT (Turkish Central Bank) might opt to halt the tightening before the local elections in March,&#8221; said Bartosz Sawicki, market analyst at Conotoxia fintech.



The local BIST 100 stock index .XU100 reversed early gains and shed 0.2%. Separately, a magnitude 4.8 earthquake struck the Turkey region, as per the German Research Centre for Geosciences (GFZ).



In Hong Kong, embattled property developer Evergrande Group 3333.HK jumped 9.2% after saying it has been granted an adjournment of a court hearing into a liquidation petition to Jan. 29, giving it time to finalise a revamped offshore debt-restructuring plan.



Investors are also closely watching renewed fighting between Israel and Hamas following a seven-day truce that ended last week. Tel Aviv&#8217;s main stock index .TA125 was flat, while the shekel ILS= edged up by 0.4%.



Poland&#8217;s zloty EURPLN= dipped 0.1% against the euro. Late on Friday, ratings agency S&amp;P Global said the new likely local government will be able to unlock access to EU funds.



(Reporting by Johann M Cherian in Bengaluru; Editing by Sonia Cheema)

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

Stocks, FX kick off week steady; Indian, Turkish assets in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="544" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-820x544.jpg" alt="" class="wp-image-431625" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-820x544.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-1536x1019.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An aerial view shows oil tanks of Transneft oil pipeline operator at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia June 13, 2022. Picture taken with a drone. REUTERS/Tatiana Meel</figcaption></figure>



South Africa&#8217;s National Treasury said on Friday it has issued state-owned rail and ports firm Transnet a support package of 47 billion rand ($2.5 billion) to help with a recovery plan, which includes meeting its immediate debt obligations.



&#8220;The financial support package provided for the entity is a 47 billion rand guarantee facility against which Transnet will drawdown an initial amount of 22.8 billion rand to deal with immediate liquidity matters such as settling maturity debt,&#8221; the National Treasury and the Department of Public Enterprises said in a joint statement.



Transnet has been struggling to provide adequate freight rail and port services due to equipment shortages and maintenance backlogs after years of under-investment. The logistics utility&#8217;s underperformance has impacted commodity exports and other sectors such as manufacturing and retail, weakening Africa&#8217;s most advanced economy.



The company, which has a 130 billion rand debt and recorded a loss of 5.7 billion rand in the financial year to March, has seen freight volumes decline to 150 million metric tons in financial year 2022/23 from 226 million tons in the 2017/18.



Transnet&#8217;s new board is pursuing a recovery plan which seeks to restore freight volumes and return the company to profitability over the next 18 months. The turnaround plan includes splitting the freight rail subsidiary into two &#8211; an infrastructure management company and an operating unit.



The company is also targeting reduced port backlogs and will make another attempt to open up parts of its rail network to private operators after last year&#8217;s false start.



Transnet on Oct. 26 said it had requested funding from government, reported to be around 100 billion rand, including an equity injection, to help fund the recovery efforts.



But the government on Friday said it had not considered an equity injection, saying the budget for the 2023/24 financial year was closed.



Transnet&#8217;s single $1 billion international bond, which matures in 2028, rose on the news, with its price up as much as 1.8 cents to 98.9 cents, its highest price since Aug. 1 according to Tradeweb data. ($1 = 18.8111 rand) (Reporting by Bhargav Acharya and Nelson Banya; Additional reporting by Rachel Savage; Editing by Sonali Paul, Tom Hogue and Toby Chopra)

A view shows oil terminal Kozmino near Nakhodka

S.Africa’s Transnet gets $2.5 bln govt support package

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-820x541.jpg" alt="" class="wp-image-425628" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-1536x1013.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of South Africa&#8217;s central reserve bank is seen during the delivery of a keynote address by South Africa&#8217;s central bank governor, Lesetja Kganyago, at the University of the Witwatersrand in Johannesburg, South Africa, November 1, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Dec 1 (Reuters) &#8211; South African central bank deputy governor Fundi Tshazibana said on Friday there was a good case for domestic interest rates staying &#8220;higher for longer&#8221; as financial conditions had tightened and the government&#8217;s borrowing needs had risen.



Inflation is close to the upper end of the South African Reserve Bank&#8217;s preferred target range of between 3% and 6% &#8211; it rose to 5.9% in October, the latest month for which data is available.



In November at its final monetary policy meeting of 2023, the central bank kept its main lending rate unchanged at 8.25% , its third pause in a row following 10 consecutive hikes starting in November 2021.



&#8220;There still seems to be a good case for keeping rates higher for longer domestically,&#8221; Tshazibana told a Bank of America conference in Johannesburg.



Tshazibana said that was because the government needed to borrow more at a time when global interest rates were higher and the country was seen as riskier.



The treasury outlined increased borrowing plans in its mid-term budget statement in November, citing higher-than-budgeted-for public wage increases and rising pressure to bail out struggling state-owned entities among the reasons.



Tshazibana made clear on Friday that higher rates were not the central bank&#8217;s preference given economic stresses, calling them a second-best outcome.



&#8220;The underlying drivers of interest rates are going up. To maintain the value of the currency – that is, to stabilise inflation – actual rates must rise too,&#8221; she said.



For lower rates, the deputy governor said there needed to be different macroeconomic settings. She cited reforms to bring down the country&#8217;s risk premium and a lower inflation target among potential ways to achieve that.



&#8220;Higher for longer is not inevitable. We have to control inflation, but if we have different macro arrangements, that could be done more cheaply,&#8221; Tshazibana said. (Reporting by Kopano Gumbi Editing by Alexander Winning and Andrew Heavens)

FILE PHOTO: South Africa’s central bank governor to delivers keynote address

South Africa central bank’s Tshazibana sees case for rates staying higher for longer

<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/Zambia-selects-UAEs-IHC-unit-as-new-partner-in-Mopani-Copper-Mines-820x547.jpg" alt="" class="wp-image-431603" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Zambia-selects-UAEs-IHC-unit-as-new-partner-in-Mopani-Copper-Mines-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Zambia-selects-UAEs-IHC-unit-as-new-partner-in-Mopani-Copper-Mines-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Zambia-selects-UAEs-IHC-unit-as-new-partner-in-Mopani-Copper-Mines-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Zambia-selects-UAEs-IHC-unit-as-new-partner-in-Mopani-Copper-Mines-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Zambia-selects-UAEs-IHC-unit-as-new-partner-in-Mopani-Copper-Mines-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Zambia-selects-UAEs-IHC-unit-as-new-partner-in-Mopani-Copper-Mines-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Bull statues are placed in font of screens showing the Hang Seng stock index and stock prices outside Exchange Square, in Hong Kong, China, August 18, 2023. REUTERS/Tyrone Siu/File Photo</figcaption></figure>



LUSAKA, Dec 1 (Reuters) &#8211; Zambia has selected United Arab Emirates&#8217; International Resources Holdings (IRH) as the new strategic equity partner in Mopani Copper Mines, the miner&#8217;s owner ZCCM-IH said late on Thursday.



IRH, which is linked to Abu Dhabi&#8217;s most valuable listed company, International Holdings Company (IHC), will invest funds into Mopani to help with short-term working capital and finance the completion of the mine development to unlock Mopani&#8217;s long-term potential as well as restructure the copper miner&#8217;s balance sheet, ZCCM said.



Mopani is currently owned by ZCCM, the Zambian government&#8217;s investment arm.



The new investor is also expected to &#8220;reset&#8221; Mopani&#8217;s existing relationship with Glencore, ZCCM said.



Mines Minister Paul Kabuswe told journalists in Lusaka on Friday that details on IRH&#8217;s investment and level of equity participation in Mopani would be provided when the negotiations are completed.



Zambia has been searching for a new investor for Mopani since it took control of the assets from Glencore in 2021 after agreeing to pay the Swiss commodities giant $1.5 billion in a deal funded by debt.



As part of the deal, Glencore retained off take rights for copper from Mopani.



The proposed partnership should enable Mopani to increase copper production to at least 200,000 metric tons per annum, ZCCM said.



Mopani requires $300 million investment to expand output over the next three years and an additional $150 million to sustain operations, ZCCM said in September.



The UAE firm is taking steps to invest in critical metals and develop a new entity that encompasses the entire metals and mining supply chain.



&#8220;The proposed investment in Mopani is the largest single investment to date by IRH and represents a key step in the development of its strategy to become a major player in the African minerals sector,&#8221; ZCCM said.



The Zambia state firm was being advised by Rothschild &amp; Co on the Mopani sale.



Other firms that were bidding for Mopani include South Africa&#8217;s Sibanye Stillwater and China&#8217;s Zijin, Reuters reported on Oct. 10, citing a source.



(Reporting by Chris Mfula, Writing by Felix Njini; Editing by Sonali Paul, Stephen Coates and Susan Fenton)

Bull statues are placed in font of screens showing the Hang Seng stock index and stock prices outside Exchange Square, in Hong Kong

Zambia selects UAE’s IHC unit as new partner in Mopani Copper Mines

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-820x545.jpg" alt="" class="wp-image-431575" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-1536x1021.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of the United Arab Emirates Sheikh Mohamed bin Zayed Al Nahyan attends the United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates, December 1, 2023. REUTERS/Amr Alfiky</figcaption></figure>



DUBAI, Dec 1 (Reuters) &#8211; United Arab Emirates President Sheikh Mohammed Bin Zayed announced on Friday the establishment of a $30 billion climate fund for global climate solutions that it hopes will lead to $250 billion of investment by the end of the decade.



Dubbed ALTÉRRA, the fund will allocate $25 billion towards climate strategies and $5 billion specifically to incentivise investment flows into the Global South, according to a statement by the COP28 Presidency.



In collaboration with global asset managers BlackRock, Brookfield and TPG, ALTÉRRA has committed $6.5 billion to climate-dedicated funds for global investments, including the Global South, the statement said.



ALTÉRRA was established by Abu Dhabi-based alternate investment manager Lunate, and COP28 Director-General Majid Al Suwaidi will serve as ALTÉRRA&#8217;s chief executive officer. (Reporting by William James; Writing by Nadine Awadalla; Editing by Susan Fenton and Sharon Singleton)

U.N.’s COP28 climate summit in Dubai

Cop28 – UAE president announces $30 bln fund to bridge climate finance gap

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/EU-cancels-Congo-election-observation-mission-820x543.jpg" alt="" class="wp-image-431338" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/EU-cancels-Congo-election-observation-mission-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/EU-cancels-Congo-election-observation-mission-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/EU-cancels-Congo-election-observation-mission-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/EU-cancels-Congo-election-observation-mission-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/EU-cancels-Congo-election-observation-mission-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/EU-cancels-Congo-election-observation-mission-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Congolese police officers secure the streets during a campaign rally of presidential candidate Moise Katumbi in Kitutu village within Mwenga territory of South Kivu province, Democratic Republic of the Congo November 24, 2023. REUTERS/Arlette Bashizi/File Photo/File Photo</figcaption></figure>



BRUSSELS/KINSHASA, Nov 30 (Reuters) &#8211; The European Union has cancelled its election observation mission for the Democratic Republic of Congo&#8217;s Dec. 20 general election, saying it would not be able to deploy people across the country for security reasons.



&#8220;Due to technical constraints beyond the control of the EU, we are forced to cancel the EU election observation mission to the Democratic Republic of Congo (DRC),&#8221; the EU said in a statement on Wednesday.



&#8220;The EU mission had planned to deploy long-term observers in most provinces of the DRC, but this is now no longer possible,&#8221; it said.



EU spokesperson Nabila Massrali told Reuters on Tuesday that election observers were already in Kinshasa and were supposed to be deployed across the country on Nov. 21, but that they were not able to go for security reasons.



Tensions are running high in the run-up to presidential, legislative and regional elections in Africa&#8217;s second-largest country, which is also struggling to contain a myriad of armed groups in its mineral-rich east.



A youth activist was killed on Tuesday by stones pelted during an opposition campaign rally in the city of Kindu.



Opposition candidates have also expressed concerns about the fairness of the vote, alleging irregularities that play in favour of the ruling coalition during voter registration. The electoral commission has denied this.



Congo&#8217;s government said it regretted the EU&#8217;s decision and that it was committed to holding transparent, free and inclusive elections.



It remained open to welcoming other observation missions, it added in a statement late on Wednesday.



&#8220;When the long-distance observers were due to be deployed, the authorities began to raise a whole series of problems relating to the use of satellite equipment and to impose other conditions that did not allow the observers to work in a secure and independent manner outside Kinshasa,&#8221; said a European diplomat who spoke on condition of anonymity.



The EU said it was exploring other options with the Congolese authorities, including the possibility of maintaining a mission of electoral experts to observe the electoral process from the capital. (Reporting by Charlotte Van Campenhout and Sonia Rolley; Additional reporting by Ange Kasongo; Writing by Nellie Peyton; Editing by Sharon Singleton)

FILE PHOTO: Congolese police officers secure the streets during a campaign rally of presidential candidate Moise Katumbi in Kitutu village, South Kivu province, Democratic Republic of the Congo

EU cancels Congo election observation mission

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/105949584-1559711930288gettyimages-1078405216.jpeg" alt="" class="wp-image-414714" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/105949584-1559711930288gettyimages-1078405216.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/105949584-1559711930288gettyimages-1078405216-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/105949584-1559711930288gettyimages-1078405216-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption class="wp-element-caption">Pedestrians walk past the People’s Bank of China headquarters in Beijing, China.
Giulia Marchi | Bloomberg | Getty Images</figcaption></figure>



LONDON, Nov 30 (Reuters) &#8211; Public pension and sovereign wealth funds managing $4.3 trillion in assets are pessimistic about investing in China, but keen to cut net emissions of their portfolios, according to a survey by the Official Monetary and Financial Institutions Forum (OMFIF).



The survey of 22 funds by OMFIF, a think tank for central banking, economic policy and public investment, also showed that 62% of the 50 largest pension funds and nearly half of the largest sovereign wealth funds suffered losses last year amid high inflation and historically rapid global rate hikes.



OMFIF outlined a dark mood among the funds, with more than half expecting a global economic recession in the next 12 months. None reported a positive outlook for China&#8217;s economy, citing the regulatory environment and geopolitics among primary factors dissuading them from investing.



The world&#8217;s second-largest economy is struggling to boost growth amid a debt-laden real estate sector and consumers who are looking to save more due to the economic uncertainty.



&#8220;India is the most attractive emerging market among respondents, while the majority identified regulation and geopolitics as hurdles to investing in China,&#8221; authors of the report launched on Thursday found.



The funds remain worried about interest rates, the survey showed, with 63% citing them as the top factor in their investment strategies over the coming decade, double the share from last year&#8217;s survey.



&#8220;(Investors) are now focused on how to deal with a macroeconomic environment that is stuck in a higher-for-longer interest rate cycle,&#8221; the report said.



While 73% of the funds said they have a pledge to achieve net zero emissions in their portfolio by 2050, and more than a third planning to increase their allocation to green bonds and green real assets in the next 12-24 months, any investments still need to make money for the funds.



&#8220;We&#8217;re looking for deals where there is a meeting of ESG and returns, and we don’t accept lower returns just to comply with ESG targets,&#8221; David Morley, managing director and head of Europe at Caisse de Depot et Placement du Québec, said in the survey.



Overall, sovereign funds fared better than their public pension peers, OMFIF added. Aggregate assets under management of the top 50 sovereign funds edged 2.3% higher to $11.6 trillion from $11.3 trillion a year before, helped by outsized gains in Middle East funds as they benefit from the surge in commodity prices.



The UAE&#8217;s Abu Dhabi Investment Authority and Saudi Public Investment Corporation grew by 13.8% and 12.9% respectively, gaining over $200 billion between them.



(Reporting By Libby George; Editing by Sharon Singleton)

105949584-1559711930288gettyimages-1078405216

Public investors with $4.3 trln are down on China but in on net zero

<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/World-to-hit-1.4C-of-warming-in-record-hot-2023--820x547.jpg" alt="" class="wp-image-431295" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People wearing sun protection gear amid a heatwave walk on a street in Beijing, China July 1, 2023. REUTERS/Tingshu Wang/File Photo</figcaption></figure>



DUBAI, Nov 30 (Reuters) &#8211; With a month to run, 2023 will reach global warming of about 1.4 degrees Celsius (2.5 Fahrenheit) above preindustrial levels, adding to &#8220;a deafening cacophony&#8221; of broken climate records, the World Meteorological Organization (WMO) said on Thursday.



The WMO&#8217;s provisional State of the Global Climate report confirms that 2023 will be the warmest year on record by a large margin, replacing the previous record-holder 2016, when the world was around 1.2C warmer than the preindustrial average.



It adds to the urgency world leaders face as they wrestle with phasing out fossil fuels at the United Nations annual climate summit COP28, which begins on Thursday in Dubai.



&#8220;Greenhouse gas levels are record high. Global temperatures are record high. Sea level rise is record high. Antarctic sea ice record low,&#8221; WMO Secretary General Peterri Taalas said.



The report&#8217;s finding, however, does not mean the world is about to cross the long-term warming threshold of 1.5C that scientists say is the ceiling for avoiding catastrophic climate change under the 2015 Paris Agreement.



For that, the level of warming would need to be sustained for longer.



Already, a year of 1.4C has provided a frightening preview of what permanently crossing 1.5C might mean.



This year, Antarctic sea ice reached its lowest winter maximum extent on record, some 1 million square kilometres (386,000 sq miles) less than the previous record. Swiss glaciers lost about 10% of their remaining volume over the last two years, the report said. And wildfires burned a record area in Canada, amounting to about 5% of the country&#8217;s woodlands.



Climate change, driven by the burning of fossil fuels, combined with the emergence of the natural El Nino climate pattern in the Eastern Pacific pushed the world into record territory this year.



Next year could be worse, the scientists said, as El Nino&#8217;s impacts are likely to peak this winter and drive higher temperatures in 2024.



(Reporting by Gloria Dickie; editing by Barbara Lewis)

FILE PHOTO: Heatwave in Beijing, China

World to hit 1.4C of warming in record hot 2023 

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ZXQCQVYMLZJNHMGOSI3OKPBANA-820x547.jpg" alt="" class="wp-image-427502" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ZXQCQVYMLZJNHMGOSI3OKPBANA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ZXQCQVYMLZJNHMGOSI3OKPBANA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ZXQCQVYMLZJNHMGOSI3OKPBANA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ZXQCQVYMLZJNHMGOSI3OKPBANA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ZXQCQVYMLZJNHMGOSI3OKPBANA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ZXQCQVYMLZJNHMGOSI3OKPBANA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A banner reads &#8220;End Fossil Fuels&#8221; at the Bonn Climate Change Conference in Bonn, Germany, June 8, 2023. REUTERS/Jana Rodenbusch/File Photo</figcaption></figure>



LONDON, Nov 30 (Reuters) &#8211; Nearly two-thirds of climate finance commitments from the developed world between 2013 and 2021 &#8211; a total of $343 billion &#8211; were never reported as disbursed or had little connection to climate, a new analysis from the ONE Campaign showed.



ONE, a non-profit advocacy group, said its analysis of open-source data on public international climate finance from developed countries and multilateral institutions highlights an &#8220;alarming lack of transparency&#8221;. It also underscored the chasm between climate finance needs in emerging markets, many of which are battling debt crises, and what rich countries are providing, ONE added.



&#8220;There&#8217;s no kind of auditing or checking of what is reported,&#8221; David McNair, executive director of global policy, told Reuters. &#8220;There&#8217;s no kind of accountability.&#8221;



The ONE Campaign said Western nations reporting projects unrelated to climate &#8211; ranging from a coal power plant to coastal hotel projects &#8211; as climate finance further depleted from the promised funding.



Two groups &#8211; the Organisation for Economic Cooperation and Development and the United Nations Framework Convention on Climate Change &#8211; compiled the data based on what countries submit and how they classify the spending.



Neither group immediately responded to request for comment emailed on Wednesday evening.



While developed nations have pledged to send $100 billion a year toward helping developing countries cut emissions and adapt to climate change, there are no rules or official guidelines outlining what they can report to the United Nations as climate finance.



ONE&#8217;s analysis found that between 2013 and 2021, Nigeria received 75% less than promised &#8211; a $4.5 billion shortfall. Kenya also received $4.5 billion less than was promised, while Senegal&#8217;s shortfall totalled $2.8 billion.



ONE called for better disclosure rules, transparent and replicable methodologies and for valdiation of data.



&#8220;We need to address this issue so that countries actually have enough money to invest in clean energy and invest in resilience to change.&#8221; (Reporting by Libby George; Editing by Lincoln Feast.)

Reuters

World Bank’s Banga calls for record replenishment of fund for poorest countries

EU should join Africa on WTO reform to counter China -IW study

Kenya central bank tries to stabilise shilling with big rate hike

UK interior minister signs new Rwanda treaty to resurrect asylum plan

South African economy contracts marginally in third quarter

US restricts visas for Uganda, Zimbabwe officials, citing repression

South Africa likely to produce first EV in 2026: Minister

Climate finance takes centre stage at COP28 climate talks

Stocks, FX kick off week steady; Indian, Turkish assets in focus

S.Africa’s Transnet gets $2.5 bln govt support package

South Africa central bank’s Tshazibana sees case for rates staying higher for longer

Zambia selects UAE’s IHC unit as new partner in Mopani Copper Mines

Cop28 – UAE president announces $30 bln fund to bridge climate finance gap

EU cancels Congo election observation mission

Public investors with $4.3 trln are down on China but in on net zero

World to hit 1.4C of warming in record hot 2023

Some $340 bln of pledged climate cash did not go where needed – ONE Campaign

News Tips

Advertise With Us

Reuters

World Bank’s Banga calls for record replenishment of fund for poorest countries

EU should join Africa on WTO reform to counter China -IW study

Kenya central bank tries to stabilise shilling with big rate hike

UK interior minister signs new Rwanda treaty to resurrect asylum plan

South African economy contracts marginally in third quarter

US restricts visas for Uganda, Zimbabwe officials, citing repression

South Africa likely to produce first EV in 2026: Minister

Climate finance takes centre stage at COP28 climate talks

Stocks, FX kick off week steady; Indian, Turkish assets in focus

S.Africa’s Transnet gets $2.5 bln govt support package

South Africa central bank’s Tshazibana sees case for rates staying higher for longer

Zambia selects UAE’s IHC unit as new partner in Mopani Copper Mines

Cop28 – UAE president announces $30 bln fund to bridge climate finance gap

EU cancels Congo election observation mission

Public investors with $4.3 trln are down on China but in on net zero

World to hit 1.4C of warming in record hot 2023

Some $340 bln of pledged climate cash did not go where needed – ONE Campaign

News Tips

Advertise With Us

Newsletters