<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-820x533.jpg" alt="" class="wp-image-428944" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-820x533.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-768x499.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize.jpg 1400w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An investigative audit of COVID-19 fund spending in Malawi reveals mismanagement and corruption findings. Photo by: Mike Hutchings / Reuters</figcaption></figure>



BLANTYRE, Nov 13 (Reuters)&nbsp;&#8211;&nbsp;Malawi will restrict foreign currency transactions and crack down on black market dealers after devaluing its currency last week, the finance minister said on Monday.



The southern African country devalued the kwacha currency by 30% against the dollar from last Thursday, saying it was needed to correct supply-demand imbalances in the currency market.



Finance Minister Simplex Chithyola Banda said on Monday that cash sales of foreign currency by banks and other authorised dealers would be limited to $2,000, with immediate effect.



Police and other security agencies would prosecute black market forex dealers, he told a news conference.



He also said Malawi had discussed with the World Bank and other donors increasing grants for the poorest under the government&#8217;s Social Cash Transfer Programme (SCTP) scheme, in order to shield the most vulnerable from the effects of the devaluation, and was negotiating with trade unions to increase salaries.



It is the second time Malawi has significantly devalued its currency in recent years, after doing so first in May 2022 to prop up dwindling foreign currency reserves pressured by rising commodity prices and declining revenue from tobacco exports.



The latest devaluation has prompted an angry response from some citizens, with protests planned. The country also hiked fuel and electricity prices on Friday.



Banda defended the devaluation, saying it would help revitalise local production and attract foreign investors.



(Writing by Nellie Peyton; Editing by Alexander Winning and Susan Fenton)

MAmaize

Malawi to restrict forex transactions after currency devaluation

<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>



Nov 13 (Reuters)&nbsp;&#8211;&nbsp;Most emerging markets stocks edged up on Monday ahead of a keenly anticipated consumer price index reading out of the U.S., while Sri Lanka&#8217;s stocks and rupee were steady after the government laid out its budget for 2024.



MSCI&#8217;s gauge for emerging markets equities&nbsp;.MSCIEF&nbsp;rose 0.5%, snapping a four day losing streak underpinned by a 2.3% gain in Hong Kong&#8217;s tech sector&nbsp;.HSTECH.



A basket of currencies&nbsp;.MIEM00000CUS&nbsp;was muted against the dollar by 0912 GMT.



MSCI&#8217;s indices for EM equities and currencies ended the previous week in the red following hawkish remarks by U.S. Federal Reserve chair Jerome Powell.



Investors now await the October U.S. consumer prices report and retail sales data due on Tuesday that could determine the outlook for U.S. monetary policy.



Meanwhile, Sri Lanka&#8217;s rupee LKR= strengthened 0.2% and the local CSE index .CSE inched up 0.1% after the local government set a budget deficit target of 2.85 trillion rupees in 2024, amounting to 9.1% of GDP, which is higher than the current year.



The South Asian economy is showing signs of recovery helped by a $2.9 billion bailout from the International Monetary Fund.



&#8220;Higher taxes and planned sales of government stakes in state banks are small steps towards fixing Sri Lanka&#8217;s fiscal and debt position,&#8221; Hasnain Malik, head of equity research at Tellimer said.



&#8220;But they lay Wikremasinghe open to a populist challenge in the 2024 election and do not address the much needed reform of state owned enterprises.&#8221;



India&#8217;s BSE Sensex index&nbsp;.BSESN&nbsp;shed 0.4% ahead of domestic October retail inflation data due after local market hours.



Economists expect the pace of consumer price inflation to likely ease further to a four-month low of 4.80%, closer to the Reserve Bank of India&#8217;s medium-term target.



Elsewhere, the Hong Kong&#8217;s property index .HSMPI was flat, pressured by a 1.9% drop in China&#8217;s Country Garden Services Holding 6098.HK after ratings agency Fitch said it plans to withdraw all the ratings on the sister firm of Country Garden Holdings 2007.HK on or about Dec. 12 for commercial reasons.



In eastern and central Europe Romania&#8217;s leu EURRON= was flat after data showed consumer price inflation was below expectations at 8.07% on an annual basis in October.



Among other currencies, Israel&#8217;s shekel&nbsp;ILS=&nbsp;weakened 0.1% and was last at 3.8 to the dollar even as its conflict with Hamas raged on.



Elsewhere, Kenya&#8217;s finance ministry said it has appointed Citi C.N and Standard Bank SBKJ.J as joint lead managers to assess the potential of borrowing in dollars in international markets.



(Reporting by Johann M Cherian in Bengaluru; editing by David Evans)

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

Stocks edge up ahead of US CPI; Sri Lankan stocks steady after budget

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



JOHANNESBURG, Nov 10 (Reuters) &#8211; Zambia&#8217;s official creditors and the International Monetary Fund have &#8220;expressed reservations&#8221; about a debt restructuring deal the government has reached in principle with an international bondholder group, the finance ministry said Friday.



Zambia and the bondholder group&#8217;s steering committee are continuing talks after the official creditor committee and the IMF voiced their doubts during discussions over the &#8220;last several days&#8221;, the ministry said in a statement, not giving any further detail on the nature of the reservations.



The discussions between the steering committee and the government are taking place under extended non-disclosure agreements, a source familiar with the process said, asking not to be identified as the talks are private.



Zambia defaulted on its external debts three years ago and finally clinched a deal with a bondholder group in late October, less than two weeks after reaching a restructuring agreement with its official creditors, which include China and members of the Paris Club of creditor nations.



The debt rework has been taking place under the G20&#8217;s Common Framework, which has been criticised for long delays and a lack of significant results.



Debtor countries are meant to agree comparable restructuring deals with official and commercial creditors under the process, which was established in 2020 in response to the COVID-19 pandemic.



A spokesperson for the bondholder steering committee declined to comment. The IMF and the Paris Club, the secretariat for developed creditor countries, did not immediately reply to a request for comment.



Zambia&#8217;s existing three international bonds had rallied after the bondholder deal was announced. The proposal foresees issuing&nbsp;two new &#8220;amortising&#8221; bonds scheduled to mature in 2035 and 2053 and together worth $3.135 billion &#8211; more than the&nbsp;$3 billion&nbsp;face value of the current outstanding Eurobond debt.



If the copper producers&#8217; economy performs better than expected,&nbsp;both official creditors and bondholders will be paid more.



Some analysts noted that bondholders would be receiving more than $500 million in amortisation for 2024-2025, plus over $100 million in annual interest payments, under the &#8220;base case&#8221; scenario, while official creditors had granted a three year grace period and lower interest rates than bondholders.



In this scenario,&nbsp;bondholders would receive 73 cents for every $1 lent compared to 55 cents for official creditors, and 97 and 79 cents respectively if Zambia&#8217;s economy performs better, campaign groups Debt Justice and the Zambian Civil Society Debt Alliance, said in an analysis published on Friday.



Zambia&#8217;s bonds slipped on Friday, with the note maturing in 2024 down more than&nbsp;1.1 cents&nbsp;on the dollar to below 63 cents&nbsp;XS1056386714=TE.



(Reporting by Rachel Savage; Additional reporting by Bhargav Acharya, and Leigh Thomas in Paris; editing by Jason Neely and Toby Chopra)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Zambia official creditors, IMF voice ‘reservations’ on bondholder deal

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



Nov 10 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets stocks and currencies fell on Friday, mirroring global sentiment after the U.S. central bank chief&#8217;s hawkish comments fuelled fears of further rate hikes and a weak auction of 30-year Treasury bonds dampened risk appetite.



The MSCI index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;fell nearly 1% by 1004 GMT, while a basket of regional currencies&nbsp;.MIEM00000CUS&nbsp;weakened 0.3% against a steady dollar.



Both equities and FX were on track for weekly losses, after a bright start to the opening week of November.



Wall-Street stocks ended lower on Thursday and global equities followed suit on Friday.&nbsp;MKTS/GLOB



The dollar&nbsp;=USD&nbsp;and the yields on benchmark U.S. 10-year Treasury bonds&nbsp;US10YT=RR&nbsp;spiked on Thursday after a weaker-than-expected 30-year bond auction and hawkish remarks from the Fed.



Fed officials&nbsp;including Powell said on Thursday they are still not sure interest rates are high enough to finish the battle with inflation.



&#8220;Powell’s remarks probably represent the culmination of a pushback against the recent dovish repricing,&#8221; Francesco Pesole, FX strategist at ING said in a note.



&#8220;The hawkish rhetoric pushed by Powell suggests that the Fed still prefers higher Treasury yields doing the tightening rather than hiking again, and that is exactly what markets are interpreting.&#8221;



Most emerging market stocks and currencies in Asia were in the red.



Heavyweight China&#8217;s shares&nbsp;.SSEC&nbsp;fell 0.5%, while its blue-chip index&nbsp;.CSI300&nbsp;dropped 0.7%. The yuan&nbsp;CNY=CFXS&nbsp;slipped 0.1%



Hong Kong stocks&nbsp;.HSI&nbsp;fell 1.8%, leading equity declines.



In Central and Eastern Europe,&nbsp;Hungary&#8217;s&nbsp;headline inflation slowed to an annual 9.9% in October, entering single-digit territory for the first time since April 2022 and below analyst forecasts for a 10.4% increase.



Hungary&#8217;s benchmark stock index&nbsp;.BUX&nbsp;gained 0.7%, while the forint&nbsp;EURHUF=&nbsp;jumped to its highest levels since late July and was last seen at 0.8% higher against the euro.



Czech&nbsp;headline inflation accelerated to 8.5% year-on-year in October, above a Reuters poll forecast of 8.4%. PX Prague SE index&nbsp;.PX&nbsp;declined 0.2% and the crown&nbsp;EURCZK=&nbsp;gained 0.3%.



A slew of data is due later in the day, with October inflation data coming in from both Brazil and Russia, while industrial output for September will be released by India and Mexico.



Turkish President&nbsp;Tayyip Erdogan criticised the Constitutional Court for &#8220;many mistakes&#8221; and urged his ruling AK Party colleagues to support an unprecedented challenge to the court by an appeals court, stoking a potential legal crisis.



Overnight in Latin America,&nbsp;Banxico&nbsp;kept its benchmark interest rate unchanged as expected at 11.25%.



(Reporting by Siddarth S in Bengaluru)

Stock market report. 3d illustration

EM assets set for weekly declines after Powell’s hawkish remarks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-820x562.jpg" alt="" class="wp-image-428891" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/T2LOGOQBKFIEPEGTHBNPHB6NEU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. Deputy Treasury Secretary Wally Adeyemo speaks at the Royal United Services Institute in London, Britain, October 27, 2023. REUTERS/Hannah McKay/File Photo</figcaption></figure>



NEW YORK, Nov 9 (Reuters)&nbsp;&#8211;&nbsp;U.S. Deputy Treasury Secretary Wally Adeyemo on Thursday said he hoped Congress would extend a trade program that grants exports from qualifying African countries duty-free access to the U.S. market, hailing the strategic opportunities in the region.



Adeyemo told the Reuters NEXT conference that the two-decade-old African Growth and Opportunity Act (AGOA), which is due to expire in 2025, had played an important in Africa and should be extended.



&#8220;My hope is that Congress will act to make sure that we continue to have tools that allow us to deepen our trade with Africa,&#8221; he said.



&#8220;It matters to us. We need to seize the huge opportunity that it is for us to engage with Africa, a continent with a burgeoning young population that is central to many of our economic, but national security interests as well.&#8221;



Adeyemo did not comment specifically on legislation proposed by Democratic Senator Chris Coons that would extend the program for 16 years to 2041.



African countries are pressing for at least a 10-year renewal of the pact ahead of the 2024 U.S. election. President Joe Biden&#8217;s administration is also seeking the program&#8217;s reauthorization but has called for certain reforms.



More than $10 billion worth of African exports entered the United States duty-free under the program in 2022. The pact has bipartisan support in Washington, but there are divisions on how to update it.



Adeyemo, who was born in Nigeria and grew up in California, said he met with U.S. companies that have investments or operations in Nigeria during a visit there in September, and they were pressing for reforms before amping up their stakes.



&#8220;They want to do more business in Nigeria but in order to do so, Nigeria has to make the type of economic reforms that make it easier for foreign direct investment to come in and for money to get out,&#8221; said Adeyemo, the highest-ranking member of the African diaspora in the Biden administration.



His visit to Africa followed those of other top officials, including Treasury Secretary Janet Yellen and Vice President Kamala Harris.



He said Nigeria&#8217;s population was slated to grow from 200 million today to 450 million by 2050, creating both challenges and opportunities, and U.S. firms could contribute to that.



(Reporting by Andrea Shalal; Editing by Michael Perry)

FILE PHOTO: U.S. Deputy Treasury Secretary Wally Adeyemo speaks at the Royal United Services Institute in London

US Treasury’s Adeyemo hopes Congress will extend US-Africa program

<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/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-820x547.jpg" alt="" class="wp-image-428877" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenyan President William Ruto delivers his speech during the State Banquet at the State House in Nairobi on October 31, 2023. LUIS TATO/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, Nov 9 (Reuters)&nbsp;&#8211;&nbsp;Kenya will&nbsp;in December&nbsp;pay back $300 million of a $2 billion Eurobond&nbsp;that falls due next June, President William Ruto said on Thursday.



The East African nation is being watched closely to see how it handles the bond due to its growing debt repayments, weakening currency and a surge in yields that has effectively locked out many frontier economies from markets.



&#8220;I can now confirm &#8230; with confidence that we will and we shall pay the debt that has become a source of much concern to citizens and markets,&#8221; Ruto said in his State of the Nation address to parliament.



Kenya&#8217;s government is spending roughly half its revenue on debt-servicing, squeezing public finances.



(Reporting by George Obulutsa; Editing by Alexander Winning)

KYPCT2NAVBIZBPIHEGCVYRTYLU-1

Kenya to pay back $300 mln of $2 bln bond in December – Ruto

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="570" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LOKI633K45PJJBQAAKTDUDBGF4-820x570.jpg" alt="" class="wp-image-428872" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LOKI633K45PJJBQAAKTDUDBGF4-820x570.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LOKI633K45PJJBQAAKTDUDBGF4-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LOKI633K45PJJBQAAKTDUDBGF4-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LOKI633K45PJJBQAAKTDUDBGF4-768x534.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LOKI633K45PJJBQAAKTDUDBGF4-1536x1068.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LOKI633K45PJJBQAAKTDUDBGF4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African President Cyril Ramaphosa gestures during the opening of the U.S.-sub-Saharan Africa trade forum to discuss the future of the African Growth and Opportunity Act (AGOA), at the NASREC conference center in Johannesburg, South Africa, November 3, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Nov 9 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa has authorised the deployment of 3,300 army personnel to help combat illegal mining activities, Ramaphosa&#8217;s office said in a statement on Thursday.



The deployment of the South African National Defence Force (SANDF), which is expected to cost about 492 million rand ($26 million), is aimed at maintaining law and order under &#8220;Operation Prosper&#8221;, Vincent Magwenya, Ramaphosa&#8217;s spokesperson, said in the statement.



The SANDF was previously&nbsp;deployed in 2019&nbsp;to the Western Cape province to fight gang violence under the same operation.



&#8220;Members of the SANDF will, in cooperation with the South African Police Service, conduct an intensified anti-criminality operation against illegal mining across all provinces, from 28 October 2023 until 28 April 2024,&#8221; the presidency said.



Mining industry body The Minerals Council South Africa says illegal mining takes place at both disused and active mines and has dimmed South Africa&#8217;s attractiveness as an investment destination.



It says it costs operating mines as much as 7 billion rand annually and the economy tens of billions of rand more in lost export earnings, taxes and royalties.



($1 = 18.5890 rand)



(Reporting by Tannur Anders and Nelson Banya; Editing by Bhargav Acharya and Alexander Winning)

South Africa hosts US-Africa trade summit

President Ramaphosa deploys army to tackle illegal mining

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-820x546.jpg" alt="" class="wp-image-428868" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/2MD722664VMN5HRQWT5KGRONNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South African Minister of Electricity, Dr Kgosientsho Ramokgopa briefs the media on implementation of the Energy Action Plan, at Tshedimosetso House in Hatfield, Tshwane, South Africa September 26, 2023. Jairus Mmutle/GCIS/Handout via REUTERS/File photo</figcaption></figure>



JOHANNESBURG, Nov 9 (Reuters)&nbsp;&#8211;&nbsp;South Africa will miss its binding 2030 carbon emissions targets under the Paris climate agreement, three senior government officials confirmed, as the country plans to run eight coal-fired power plants for longer than planned.



South Africa is the world&#8217;s 11th biggest greenhouse gas emitter and has one of the world&#8217;s highest per capita emissions.



It had committed under the Paris Climate Accords &#8211; a legally binding treaty on climate change &#8211; to cut emissions to between 350 and 420 million tonnes by 2030, from 442 million tonnes in 2020.



To achieve this, it planned to decommission eight coal-fired power plants, six by 2030 and the remaining by 2034, as power makes up half of its emissions, but switching to a renewable energy policy has been hampered by bureaucratic delays.



Now a power supply crisis makes this target unrealistic, said the officials, all of whom declined to be named because the information was not yet public.



&#8220;Our models suggest we will miss the 2030 target,&#8221; an official in the president&#8217;s office said, although he added that a new decommissioning target for 2035 was being discussed. South Africa has committed to net zero emissions by 2050.



An official from power utility Eskom also confirmed the target would be missed.



The environment ministry, which endorses climate targets, said the country remained committed to achieving its Paris agreement commitments and that it was too early to reach the conclusion that 2030 targets would be missed.



The ministry will be submitting its latest greenhouse gas inventory report to the United Nations before the COP28 summit which starts later this month, it said in an emailed response.



<h2 class="wp-block-heading" id="h-paris-goals-in-peril">PARIS GOALS IN PERIL</h2>



South Africa&#8217;s decision comes as several rich countries and companies are backtracking on climate pledges, and on Wednesday the United Nations said fossil fuel output by 2030 will be more than double levels consistent with the 2015 Paris climate goals.



Canada&#8217;s auditor general on Tuesday said Canada would also miss its 2030 Paris targets. British Prime Minister Rishi Sunak in September delayed a 2030 ban on new petrol car sales by five years.



Global oil and gas behemoths BP BP.L, Shell SHEL.L and Exxon Mobil XOM.N have meanwhile either delayed or abandoned shifting to renewables. Several European countries reopened mothballed coal-fired power plants last year.



&#8220;It is very hard in the middle of a power crisis to be taking working coal-fired plants off the grid,&#8221; Crispian Olver, executive director of the Presidential Climate Commission (PCC), told Reuters in an interview, urging South Africa to shelve the idea until the crisis is solved.



Electricity Minister Kgosientsho Ramokgopa told journalists in August that decommissioning plants must be delayed &#8220;given the crisis &#8230; confronting us of existential proportions.&#8221;



South Africa has been suffering blackouts of sometimes up to 10 hours a day for the past 18 months.



In an emailed response to Reuters questions, a spokesperson for the PCC admitted there were risks attached to extending the life of coal plants, including &#8220;reduced trade competitiveness, reduced access to capital, reduced geo-political influence&#8230; and the potential loss of existing international support.&#8221;



Climate Action Tracker (CAT), an independent body tracking progress towards the Paris Agreement will publish an assessment of countries&#8217; climate goals at COP28, said Catrina Godinho, Climate Specialist at World Bank and a CAT member.



Missing emission targets &#8220;not only contribute to global climate change&#8230; they also negatively affects South Africans who live in areas with high pollution from coal plants,&#8221; she said.



(Reporting by Promit Mukherjee; Editing by Tim Cocks, Michael Perry and Mark Potter)

South African Minister of Electricity, Dr Kgosientsho Ramokgopa briefs the media on implementation of the Energy Action Plan, at Tshedimosetso House in Hatfield

South Africa to miss 2030 emissions goal as it keeps coal plants burning

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="535" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/VJYYSNRSXJONFL3WEZAQ56CN5E-820x535.jpg" alt="" class="wp-image-428860" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/VJYYSNRSXJONFL3WEZAQ56CN5E-820x535.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/VJYYSNRSXJONFL3WEZAQ56CN5E-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/VJYYSNRSXJONFL3WEZAQ56CN5E-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/VJYYSNRSXJONFL3WEZAQ56CN5E-768x501.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/VJYYSNRSXJONFL3WEZAQ56CN5E-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/VJYYSNRSXJONFL3WEZAQ56CN5E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo of the Ford Motor Company is seen outside a car dealership in Cape Town, South Africa, October 18, 2017. REUTERS/Mike Hutchings</figcaption></figure>



PRETORIA, Nov 8 (Reuters) &#8211; The South African unit of U.S. auto giant Ford said on Wednesday it would invest 5.2 billion rand ($281 million) to produce a hybrid vehicle in the country, as it urged the government to move fast on an electric vehicle policy.



Three-quarters of cars produced by South Africa&#8217;s auto industry, which accounts for 5% of gross domestic product and over 100,000 jobs, are exported, mostly to European countries.



But with the UK and Europe banning the sale of new petrol cars from 2035, South Africa&#8217;s government has warned of an existential threat to the sector, and automakers have sought a government plan to transition to electric vehicles.



&#8220;The government really needs to finalise its policy and get it out there because other countries are moving fast, very fast,&#8221; Andrea` Cavallaro, Ford&#8217;s operations director of international market group, told Reuters.



In the meantime the company is focussed on producing hybrid vehicles &#8211; cars that can run on petrol like a regular internal combustion engine or ICE-driven vehicles and also run on electric charge.



Cavallaro was talking to Reuters on the sidelines of Ford celebrating 100 years of operations in South Africa and announcing an investment to produce the Ranger hybrid car.



The company said the investment would go into producing its Ranger Plug-in Hybrid Electric Vehicle, which will be rolled out from its factory in Pretoria from late 2024.



&#8220;What we have seen is just this rapid escalation of the adoption of new energy vehicle technologies,&#8221; President of Ford Motor Company in Africa Neale Hill told Reuters.



Ford plans to export about 70% of the 44,000 of the Ranger cars to Europe, Australia and New Zealand, Cavallaro said.



($1 = 18.4993 rand) 



(Reporting by Tannur Anders; Editing by Promit Mukherjee and Josie Kao)

The logo of the Ford Motor Company is seen outside a car dealership in Cape Town

Ford’s South Africa unit to invest $281 million in hybrid vehicles

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-820x615.jpg" alt="" class="wp-image-428856" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photos: via Flickr</figcaption></figure>



BLANTYRE, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;Malawi&#8217;s central bank said in a notice to authorised dealer banks seen by Reuters that it was devaluing the local kwacha currency&#8217;s exchange rate to the dollar&nbsp;MWK=&nbsp;by about 30% from Thursday.



The notice said the kwacha&#8217;s exchange rate would be adjusted to 1,700 kwacha to the dollar from a selling rate of about 1,180 kwacha to the dollar.



A central bank spokesperson was not immediately available for comment.



It is the second time the southern African country has significantly devalued its currency, after doing so first in May 2022 to prop up dwindling foreign currency reserves pressured by rising commodity prices and declining revenue from tobacco exports.



The notice to banks said the exchange rate adjustment was needed because there were still supply-demand imbalances in the currency market and arbitrage opportunities had resurfaced.



Spot checks on some players indicated that the market was able to clear import bills at the new exchange rate, the central bank said.



&#8220;The Reserve Bank of Malawi will closely monitor developments in the market to avoid disorderly behaviour among market players that may cause excessive volatility,&#8221; it said.



A senior local banker said the move was widely expected.



&#8220;It works in short term and only addresses demand side for now, but what is required is to sort out supply side,&#8221; he said.



(Reporting by Frank Phiri; Additional reporting by Rodrigo Campos in New YorkWriting by Alexander Winning and Nellie PeytonEditing by Sandra Maler)

48085890627_1aed377e0b_k

Malawi central bank to devalue kwacha by about 30%

<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/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



FRANKFURT, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;Rapid wage growth in the euro zone could keep inflation elevated longer and the European Central Bank should hold interest rates at or near record highs through next year to extinguish price pressures, the International Monetary Fund said on Wednesday.



The ECB broke a streak of ten straight rate hikes last month, fuelling market expectations that its next move will be a cut, possibly as soon as April, with a total of 90 basis points of reductions priced in by the close of next year.



Pushing back on early rate cut bets, Alfred Kammer, the head of the IMF&#8217;s European Department, argued that the ECB&#8217;s deposit rate should stay close to its record high 4% level through all of next year.



&#8220;Monetary policy is appropriately tight and needs to remain so in 2024,&#8221; Kammer told a news conference. &#8220;For all intents and purposes, (the deposit rate) should be held at that level or close to that level throughout 2024.&#8221;



Kammer warned the ECB against cutting rates too soon because that would require even more costly policy tightening later on.



&#8220;It is less costly to be too tight rather than to be too loose,&#8221; Kammer said. &#8220;What we also want to avoid is premature celebrations.&#8221;



Inflation soared to over 10% a year ago but has been on a steady downward path since, even if the &#8220;last mile&#8221; of disinflation is seen the toughest and could still take two years to get from around 3% to 2%.



While the IMF sees price growth back at target in 2025, an exceptionally tight labour market could push this date back to 2026, it warned.



Unemployment is already at a record low and whatever slack is left in the labour market could be less than now calculated, pushing up wage inflation, which would then impact consumer prices.



Real wages also have some way to go catch up with inflation and this could also keep up the price pressure, the IMF said.



&#8220;Risks remain skewed toward more persistent inflation,&#8221; the IMF said in a report. &#8220;Under adverse assumptions, this could delay reaching inflation targets to 2026.&#8221;



Kammer added that the conflict in Gaza had pushed up global energy costs, which creates further upside risk for prices.



However, overall economic growth in the current quarter is somewhat weaker than projected, which could limit price pressures.



Still, growth is broadly in line with expectations and a &#8220;soft landing&#8221; is still the IMF&#8217;s main scenario rather than a deeper recession, Kammer added.



(Reporting by Balazs Koranyi; Editing by Mark Potter)

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

ECB must keep rates at or near 4% through 2024 to get inflation down -IMF

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



Nov 8 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets stocks and currencies extended declines on Wednesday on fresh fears of further interest rate hikes in the U.S. following a hawkish tone from Fed policymakers, while investors awaited monetary policy decisions of Poland and Romania.



The MSCI index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;fell 0.3% by 0944 GMT.



Fresh from last week&#8217;s decision to hold the policy rate steady, Fed policymakers are weighing strong economic data and the impact of higher long-term bond yields as they consider whether they will need to hike rates further to bring down inflation.



Investors will&nbsp;keenly watch&nbsp;Fed Chair Jerome Powell&#8217;s speech, due later in the day, for cues on the interest rate path.



The dollar index&nbsp;=USD&nbsp;gained 0.3% having fallen last week.



&#8220;The dollar rebound has started to gain some momentum. What has likely offered a hand to the greenback was the generally hawkish comments by Fed members,&#8221; Francesco Pesole, FX Strategist at ING said in a note.



Emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;slipped 0.1% against a firm dollar as the South African rand&nbsp;ZAR=&nbsp;declined 0.7% ahead of Powell&#8217;s speech.



The won KRW=KFTC also fell 0.7%, after gaining earlier in the session, as South Korean authorities announced plans to open the local currency market to global traders and extend trading hours.



Emerging market assets had a bright start to November following the Fed decision as markets bet that U.S. interest rates had peaked, but fresh rate hike fears have worsened risk appetite.



The spotlight will be on Central and Eastern Europe, with crucial interest rate decisions due later in the day from the central banks of Poland and Romania.



The National Bank of Poland is widely expected to cut its main interest rate by 25 basis points to 5.50%, while the Romanian central bank is seen keeping interest rates steady at 7.00%, according to a Reuters poll.



Central Europe&#8217;s currencies face depreciation pressures over the next year amid interest rate cuts and dwindling carry appeal, a Reuters poll showed.



Against the euro, the zloty&nbsp;EURPLN=&nbsp;was flat, while the leu&nbsp;EURRON=&nbsp;edged down 0.1%



Broader equities was further hurt with South Korean shares&nbsp;.KS11&nbsp;falling nearly 1%, extending declines from the previous session.



China&#8217;s blue-chip stocks&nbsp;.CSI300&nbsp;dipped 0.2%, while Hong Kong shares&nbsp;.HSI&nbsp;dropped 0.6%.



Chinese authorities have asked Ping An Insurance Group 2318.HK to take a controlling stake in embattled Country Garden 2007.HK, the nation&#8217;s biggest private property developer, Reuters reported on Wednesday.



Shares of Ping An sank 5.4%, while Country Garden jumped 12.2%.



On the data front, Hungary&#8217;s calendar-adjusted retail sales HURETY=ECI fell by an annual 7.3% in September following an 7.1% drop in August.



The Czech unemployment rate eased to 3.5% of the workforce in October, below a Reuters poll forecast for it to stagnate at 3.6%.



(Reporting by Siddarth S in Bengaluru; Editing by Toby Chopra)

Stocks, FX extend declines on rate hike jitters; Poland, Romania rate decisions due

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="529" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-820x529.jpg" alt="" class="wp-image-428833" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-820x529.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-768x495.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-1536x990.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Internally displaced Somali children wade through flood waters outside their makeshift shelters following heavy rains at the Al Hidaya camp for the internally displaced people on the outskirts of Mogadishu, Somalia November 6, 2023 REUTERS/Feisal Omar</figcaption></figure>



MOGADISHU, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;The worst flooding to hit Somalia in decades has killed 29 people and forced more than 300,000 to flee their homes, the National Disaster Management Agency said on Wednesday, following heavy rains that have inundated towns across East Africa.



Authorities have scrambled to rescue thousands of stranded people from the floodwater, which comes on the heels of the region&#8217;s worst drought in 40 years.



&#8220;What is going on today is the worst for decades. It is worse than even the 1997 floods,&#8221; said Hassan Isse, managing director of the Somali Disaster Management Agency (SOMDA).



The death toll and numbers of people displaced were likely to rise further, Isse said, because many people were trapped by floodwaters.



&#8220;I do not remember such floods in my life,&#8221; said Mohamed Farah, a local elder in Baidoa city, in southwest Somalia. &#8220;People keep on evacuating looking for high ground.&#8221;



At least 2,400 people have been cut off in Luuq town, where the Jubba River burst its banks, the United Nations has said.



&#8220;Luuq is surrounded by the river and floods are threatening us. People keep fleeing out of the town. Some are still trapped. Our shops have been washed away,&#8221; said Ahmed Nur, a trader in Luuq.



Floods in neighbouring Kenya have killed at least 15 people and submerged a bridge in Uganda, cutting off a road linking Kampala to oilfields in the northwest, the Kenya Red Cross and Uganda&#8217;s road authority said.



The regional deluge was caused by the combined effect of two weather phenomenons, El Niño and the Indian Ocean Dipole, said Nazanine Moshiri, a climate analyst at the International Crisis Group.



El Niño and the Indian Ocean Dipole are climate patterns that impact ocean surface temperatures and cause above-average rainfall.



&#8220;The impact of the flooding is much worse because the soil is so damaged from an unprecedented recent drought &#8211; years of conflict and al Shabaab militia&#8217;s presence also makes building flood defences and resilience more complex and costly,&#8221; Moshiri said.



Scientists say climate change is causing more intense and more frequent extreme weather events. In response, African leaders have proposed new global taxes and reforms to international financial institutions to help fund climate change action.



(Reporting by Abdi Sheikh, Elias Biryabarema and Hereward Holland; Writing by Hereward Holland; Editing by Alex Richardson)

Somalia floods kill 10, displace more than 113,000 a year after drought

Worst floods in decades kill 29 in Somalia, hit towns across East Africa

<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/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



BUDAPEST, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;Big hikes in the minimum wage planned in central Europe for next year raise the risk of more persistent inflation or job losses amid relatively weak productivity growth across the region, the International Monetary Fund (IMF) has warned.



With inflation easing from double-digit levels, the region&#8217;s economies are at a turning point as ebbing price growth nudges real wages back into positive territory, which governments hope will aid consumption and a broader economic recovery next year.



However, that expected boon to the region&#8217;s economies, which have slowed sharply or even contracted due to high inflation, could also pose risks if companies push rising wage costs on to customers with further price hikes.



The Polish minimum wage, already the region&#8217;s highest based on Eurostat data, is set to rise by some 20% next year. Romania&#8217;s government hiked the minimum wage by 10% from October, while Hungary has signalled a possible 10% to 15% increase.



The Czech government has been considering a 9% to 12% raise, which would also surpass the expected pace of inflation next year after a long period falling real wages which has crippled demand and sent the economy into a sustained downturn this year.



Some central banks in the region have responded to weaker price growth by lowering interest rates, led by Poland and Hungary which are still expected to run inflation rates well above their policy targets next year.



While minimum wages since 2019 have largely risen in line with inflation, caution is needed going forward, Geoff Gottlieb, the IMF&#8217;s Senior Regional Representative for Central, Eastern and South-Eastern Europe told Reuters.



&#8220;In some countries in the CEE region, large additional increases in the minimum wage are planned for 2024,&#8221; he said.



&#8220;It is possible that firms will absorb this via lower profits but there is also a risk that these increases will result in more persistent inflation or lower employment, especially given relatively weak productivity growth in the region.&#8221;



The latest data from the Organisation for Economic Co-operation and Development (OECD) showed labour productivity in central Europe&#8217;s main economies lagging the OECD average, with Poland faring best and Romania the worst.



For the right balance, Gottlieb said fiscal policy and other forms of social protection, rather than the minimum wage alone, should be the main tools to support lower-income workers.



He also said overall nominal wage growth in central Europe, which runs some of the European Union&#8217;s tightest labour markets, remained &#8220;very strong&#8221; and had to slow further for inflation to return to central bank targets.



&#8220;This requires that aggregate demand evolves in a way that makes firms less likely to pass on price increases. For this reason it is important that macroeconomic policies do not loosen prematurely or too quickly,&#8221; he said.



The National Bank of Poland, which slashed interest rates by a combined 100 basis points over the past two months ahead of an October 15 parliamentary election, is expected to cut borrowing costs by another 25 bps to 5.5% on Wednesday.



Hungary&#8217;s central bank lowered its base rate by a larger-than-expected 75 bps last month, extending an easing campaign launched in May that has seen rates fall by a combined 575 bps to 12.25% &#8212; still the EU&#8217;s highest benchmark.



In contrast, the Czech National Bank left its key rate steady at 7% last week, defying some market bets on a cut, citing wage-related risks to inflation and calling for restraint in wage deals.



Romania&#8217;s central bank, which is also likely to keep rates unchanged at 7% on Wednesday, has also warned that double-digit wage dynamics were &#8220;particularly high and worrisome&#8221; for inflation.



(Additional reporting by Jan Lopatka in Prague; Editing by Christina Fincher)

IMF warns of inflation risks as central Europe hammers out 2024 wage deals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="422" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-820x422.jpg" alt="" class="wp-image-428810" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-820x422.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-300x154.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-160x82.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-768x395.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-1536x790.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-152888615-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">RUSTENBURG, SOUTH AFRICA &#8211; SEPTEMBER 27: (SOUTH AFRICA OUT) Impala Platinum mine workers gather to receive feedback on a new wage deal on September 27, 2012 in Rustenburg, South Africa. A planned visit by expelled ANC Youth League President Julius Malema was cancelled following reports that he might be arrested if he addressed the workers. (Photo by Felix Dlangamandla/Foto24/Gallo Images/Getty Images)</figcaption></figure>



JOHANNESBURG, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;Impala Platinum&nbsp;IMPJ.J&nbsp;said it was offering voluntary job cuts to workers at some of the world&#8217;s deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall.



The Johannesburg-based platinum miner started the process at its head office last month, and is now extending the exit packages to its sprawling Rustenburg mining complex in North West province, company spokesperson Johan Theron told Reuters.



He declined to say how many jobs the company expects to cut and how much money it plans to save.



&#8220;We are obviously doing everything to reduce costs,&#8221; Theron said. &#8220;Labour is a big cost component so you always start with labour by offering voluntary separation packages.&#8221;



The price for palladium has plunged nearly 40% so far this year while primary metal platinum is down 14%. Demand for particularly palladium has been hit by weakening demand in China.



Longer term, demand for the metals which are used in catalysts that curb vehicle emissions, is threatened by rise in battery electric vehicles.



&#8220;We find ourselves asking how supply will respond in the face of weak prevailing prices,&#8221; BofA Securities analysts said in a note. &#8220;With cash flow under pressure at many mines, we see shutdowns or even permanent closures as likely.&#8221;



Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs.



South African platinum mining shafts are among the world&#8217;s deepest, oldest and most expensive to operate. Impala&#8217;s Rustenburg mines are &#8220;scrapping by for now&#8221; and further action could be taken if prices remain low, Theron said.



&#8220;The shafts are not making money, but they are not losing money either, they are just getting by,&#8221; Theron said.Impala is also weighing postponing planned spending at some expansion projects at its Zimplats ZIM.AX and Mimosa units in Zimbabwe as well as Two Rivers and Marula mines in South Africa.



&#8220;We are in a process to reset the organization for a lower price environment,&#8221; Theron said. &#8220;If all the initiatives don’t take you to a point where you can survive, you have to do more.&#8221;



(Reporting by Felix Njini; additional reporting by Nelson Banya; editing by Miral Fahmy and Louise Heavens)

Impala Platinum Mine Workers Strike

Impala Platinum starts voluntary job cuts at South Africa mines

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg" alt="" class="wp-image-414305" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



BEIJING, Nov 7 (Reuters) &#8211; The International Monetary Fund on Tuesday upgraded its 2023 gross domestic product growth forecast for China to 5.4% from 5%, citing a &#8220;strong&#8221; post-COVID-19 recovery, but said the fund still expected the Chinese economy to slow next year.



GDP growth could slow to 4.6% in 2024 because of continued weakness in China&#8217;s property sector and subdued external demand, the IMF said in a press release, albeit better than its October expectation of 4.2% in the IMF&#8217;s World Economic Outlook (WEO).



The upward revision followed a decision by China to approve a 1 trillion yuan ($137 billion) sovereign bond issue and allow local governments to frontload part of their 2024 bond quotas, in a move to support the economy.



&#8220;These projections reflect upward revisions of 0.4 percentage points in both 2023 and 2024 relative to October WEO projections due to a stronger-than-expected third-quarter outturn and recent policy announcements,&#8221; said IMF&#8217;s First Deputy Managing Director Gita Gopinath in the statement.



Over the medium term, growth is projected to gradually slow to about 3.5% by 2028 amid headwinds from weak productivity and population aging, according to Gopinath.



China has introduced numerous measures to support the property market, but more is needed to secure a quicker recovery and lower economic costs during the transition, she said.



A comprehensive policy package should include measures to accelerate the exit of nonviable property developers, remove impediments to housing price adjustment, allocate additional central government funding for housing completion, and assist viable developers to repair balance sheets and adapt to a smaller property market, Gopinath said. 



(Reporting by Joe Cash and Ryan Woo; Editing by Edmund Klamann and Christopher Cushing)

BE2FA7DW6VJP3AYQ5S5CUCMQO4

IMF revises up China’s 2023, 2024 GDP growth forecasts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-820x547.jpg" alt="" class="wp-image-426999" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of China Xi Jinping attends the plenary session during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg, South Africa on August 23, 2023. GIANLUIGI GUERCIA/Pool via REUTERS</figcaption></figure>



JOHANNESBURG/HONG KONG, Nov 6 (Reuters)&nbsp;&#8211;&nbsp;Chinese financial institutions lent $1.34 trillion to developing countries from 2000 to 2021, U.S. researchers at AidData said in a report that showed the world&#8217;s biggest bilateral lender switching from infrastructure to rescue lending.



While lending commitments peaked at almost $136 billion in 2016, China still committed to almost $80 billion of loans and grants in 2021 according to the data, which captures almost 21,000 projects in 165 low and middle income countries as probably the most comprehensive dataset of its type.



Overseas finance has won Beijing allies across the developing world, while drawing criticism from the West and in some recipient countries, including Sri Lanka and Zambia, that infrastructure projects it funded saddled them with debt they were unable to repay.



Both the sources and the focus of China&#8217;s overseas financing, have changed, the data showed.



In 2013, when President Xi Jinping launched the Belt and Road Initiative to build infrastructure across the developing world, China&#8217;s policy banks accounted for over half of the lending. Their share started falling from 2015 and was 22% by 2021.



The People&#8217;s Bank of China and the State Administration of Foreign Exchange (SAFE), which manages China&#8217;s foreign currency reserves, accounted for more than half of lending in 2021, almost all bailout lending.



&#8220;Beijing is navigating an unfamiliar and uncomfortable role— as the world&#8217;s largest official debt collector,&#8221; said the report by AidData, a research lab at William and Mary university.



Much of China&#8217;s growing rescue lending is denominated in renminbi, the report found, with loans in the Chinese currency overtaking U.S. dollars in 2020. Overdue payments to Chinese lenders have also risen.



One way China is managing repayment risk is through foreign currency cash escrow accounts it controls, AidData said. The arrangement is controversial because it gives China debt seniority, meaning other lenders, including multilateral development banks, could get paid second during any coordinated debt relief.



AidData identified 15 countries, primarily in Africa, with escrow accounts totalling a combined $2.5 billion at their peak in June 2023.



Brad Parks, the study&#8217;s lead author, said they were not able to identify all such accounts, as they are normally kept private. He noted, though, that they had found collateralised loans worth $614 billion and that cash was the main source of collateral required by Chinese lenders, indicating that the amount in escrow accounts could be far higher than $2.5 billion.



China is also working more with multilateral lenders and Western commercial banks. Half of its non-emergency lending in 2021 was syndicated loans, 80% of that alongside Western banks and international financial institutions.



The destinations of Chinese overseas lending have also changed. Loan commitments to African countries fell from 31% of the total in 2018 to 12% in 2021, while lending to European countries almost quadrupled to 23%.



A different dataset showed loan commitments to African countries falling to a 20-year low in 2022.



(Reporting by Rachel Savage and Clare Baldwin; Editing by Tomasz Janowski)

Reuters

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Reuters

Malawi to restrict forex transactions after currency devaluation

Stocks edge up ahead of US CPI; Sri Lankan stocks steady after budget

Zambia official creditors, IMF voice ‘reservations’ on bondholder deal

EM assets set for weekly declines after Powell’s hawkish remarks

US Treasury’s Adeyemo hopes Congress will extend US-Africa program

Kenya to pay back $300 mln of $2 bln bond in December – Ruto

President Ramaphosa deploys army to tackle illegal mining

South Africa to miss 2030 emissions goal as it keeps coal plants burning

Ford’s South Africa unit to invest $281 million in hybrid vehicles

Malawi central bank to devalue kwacha by about 30%

ECB must keep rates at or near 4% through 2024 to get inflation down -IMF

Stocks, FX extend declines on rate hike jitters; Poland, Romania rate decisions due

Worst floods in decades kill 29 in Somalia, hit towns across East Africa

IMF warns of inflation risks as central Europe hammers out 2024 wage deals

Impala Platinum starts voluntary job cuts at South Africa mines

IMF revises up China’s 2023, 2024 GDP growth forecasts

China lent $1.34 trln in 2000-2021, focus shifts from Belt and Road to rescue finance-report

News Tips

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