<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="590" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-820x590.jpg" alt="" class="wp-image-428788" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-820x590.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-300x216.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-768x553.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-1536x1106.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nigeria&#8217;s Central Bank Governor Godwin Emefiele briefs the media during the MPC meeting in Abuja, Nigeria January 24, 2020. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Nov 6 (Reuters)&nbsp;&#8211;&nbsp;A Nigerian court on Monday ordered that former central bank governor Godwin Emefiele, who has been in detention for three months, be unconditionally released or that the government produce him in court on Wednesday for a bail hearing.



Emefiele has been in detention since June 10, charged with procurement fraud, but his trial has stalled since August when the Department of State Services failed to present him in court to enter a plea.



The former central bank chief was not present in court for his bail hearing on Monday prompting Judge Olukayode Adeniyi to demand that the Attorney General of the Federation and the Economic and Financial Crimes Commission (EFCC) release him or bring him to court in two days.



Emefiele was initially detained by the Department of State Services (DSS) but the EFCC, a government anti-corruption agency, said on Monday he had now been in their custody for a week.



Emefiele, who has not commented publicly on the case, was suspended by President Bola Tinubu on June 9 and was arrested a day later by the DSS.



He resigned in August, paving the way for the appointment of new central bank governor Olayemi Cardoso in September.



(Reporting by Camillus Eboh; Editing by Alison Williams)

Nigeria’s Central Bank Governor Godwin Emefiele briefs the media during the MPC meeting in Abuja

Nigerian court orders release or bail hearing for ex-central bank head

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-820x576.jpg" alt="" class="wp-image-428782" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-1536x1079.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A delegate poses in front of flags 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</figcaption></figure>



WASHINGTON, Nov 6 (Reuters)&nbsp;&#8211;&nbsp;A trade program that grants exports from qualifying African countries duty-free access to the U.S. market should be extended by 16 years, said Democratic Senator Chris Coons, a leading voice on U.S.-Africa policy.



Talks are underway for the renewal of the two-decade-old African Growth and Opportunity Act (AGOA), which is due to expire in 2025.



African countries want 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.



Coons, a member of the Senate Foreign Relations Committee, has sponsored a bill that seeks to integrate AGOA and the African Continental Free Trade Agreement, which includes the majority of African nations.



According to a draft version of the bill exclusively obtained by Reuters, the program would maintain benefits for countries as they grow wealthier, allowing them to remain until they are determined to be high-income for five years, instead of removing them if they reach that threshold for a single year.



&#8220;My AGOA Renewal Act would extend this program, incentivizing investments that will create jobs, bolster economic development, and strengthen our standing in the region,&#8221; Coons said in a statement.



Spokespeople for Senator Ben Cardin, the committee&#8217;s chairman, did not immediately respond to a request for comment.



James Risch, the panel&#8217;s top Republican, wrote in a letter to Biden administration officials on Thursday that he supports the early reauthorization of the program, but wants to see changes to its eligibility criteria and other modifications.



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.



U.S. Trade Representative Katherine Tai said on Saturday that AGOA should aim to boost usage of the program by countries that qualify, though she did not give details on how it would do so.



American business groups have said they need certainty over AGOA, so that African countries are able to take advantage of a global push to reduce dependence on Chinese manufacturing.



(Reporting by Makini Brice; Editing by Paul Simao)

South Africa hosts US-Africa trade summit

US-Africa program should be extended through 2041, Senate Democrat says

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



ABUJA, Nov 6 (Reuters) &#8211; Nigeria&#8217;s naira firmed to 1,000 per dollar on the black market on Monday, online platform abokiFX showed, recovering from a record low of 1,300 naira, after the central bank started to clear outstanding currency forwards owed to banks.



The naira has hit successive record lows on the black market, where it trades freely, as excess demand on the official market gets funnelled to the unofficial market.



The central bank last week said it had started clearing outstanding foreign currency forwards owed to banks, with banking sources saying an initial payment of $1 billion had been made. The naira has been under pressure from past due obligations.



The naira crossed the 1,000 naira mark on the black market on Sept. 26, the day newly-appointed central bank governor Olayemi Cardoso appeared before the Nigerian senate for his confirmation hearing.



The central bank has not intervened on the official market since October, helping accelerate the naira&#8217;s slide on the black market.



The currency hit a record low of 1,300 naira per dollar on the black market, a month after it crossed the 1,000 naira mark, amid thin trading volumes on the parallel market and dollar shortages on the official market.



Nigeria lifted restrictions on trading the currency on the official market in June, to the delight of investors, but the expected dollar inflow is yet to materialise, sending the naira tumbling.



Cardoso has said the naira will adjust once rules for market participants are made clear. Finance Minister Wale Edun has said Nigeria is expecting $10 billion in foreign currency inflows in weeks to improve foreign exchange market liquidity.



On the official market, the naira was trading at 884.53 to the dollar at 1200 GMT.



(Reporting by Chijioke Ohuocha; Editing by Mark Potter)

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

Nigeria’s naira firms on black market, central bank settles FX forwards

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



Nov 6 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets stocks opened the week on a flying note on Monday led by gains in South Korean shares after the country re-imposed a short-selling ban, while currencies rose on hopes that the U.S. Federal Reserve was done with its rate hiking cycle.



The MSCI index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;jumped 2.2% by 0954 GMT and was on track for its best day since June.



South Korea&#8217;s benchmark KOSPI .KS11 index soared 5.7%, recording its best session since early 2020, as authorities said on Sunday they will re-impose a ban on short-selling through the first half of 2024 to promote a &#8220;level-playing field&#8221;



China shares&nbsp;.SSEC&nbsp;rose 0.9%, while the yuan&nbsp;CNY=CFXS&nbsp;gained 0.4% ahead of key domestic economic data this week, including crucial inflation numbers.



The world&#8217;s second-largest economy also recorded its first-ever quarterly deficit in foreign direct investment (FDI), according to balance of payments data, underscoring Beijing&#8217;s challenge in wooing overseas companies in the wake of a &#8220;de-risking&#8221; move by Western governments.



Global fund managers sold China equities sharply in October despite further steps from authorities aimed at boosting the country&#8217;s economy, according to a report from Morgan Stanley.



The MSCI gauge for emerging markets (EM) currencies&nbsp;.MIEM00000CUS&nbsp;also strengthened 0.6% against a weak dollar, and was set for its best day since March, if gains hold.



November has been a bright start for EM assets after a dismal October, as comments from Fed Chair Jerome Powell and a weak jobs report last week boosted risk appetite on hopes that the central bank was done with its tightening cycle.



Investors will keenly focus on the U.S. debt auctions this week, after the U.S. Treasury Department on Wednesday said it will slow the pace of increase in its longer-dated debt auctions in the November 2023 to January 2024 quarter.



&#8220;Risk appetite has vastly improved and one of the big headwinds to emerging markets FX has now been cleared and that has been the building risk premium in Treasury yields,&#8221; said Simon Harvey, Head of FX Analysis, Monex Europe.



&#8220;The currencies that are being the most sensitive to these dynamics, the Indonesian rupiah or the South Korean won, they&#8217;re posting huge gains off on the back of this.&#8221;



The Korean won&nbsp;KRW=&nbsp;and the rupiah&nbsp;IDR=&nbsp;jumped 1.2% and 1.3% respectively.



Elsewhere in Central and Eastern Europe, Czech working day adjusted industrial output fell higher-than-expected 5.0% year-on-year in September, after a 1.7% fall in August, data showed.



(Reporting by Siddarth S in Bengaluru; Editing by Janane Venkatraman)

World map with charts and graphs as symbols of global finance

Stocks jump on boost from South Korean shares, FX rise

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="516" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-820x516.jpg" alt="" class="wp-image-428729" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-820x516.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-768x483.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-1536x966.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. Secretary of State Antony Blinken speaks to reporters about the war between Israel and Hamas and the situation in Gaza as he boards his aircraft to depart Washington on travel to the Middle East and Asia at Joint Base Andrews, Maryland, U.S., November 2, 2023. REUTERS/Jonathan Ernst/Pool</figcaption></figure>



JOHANNESBURG, Nov 3 (Reuters)&nbsp;&#8211;&nbsp;U.S. President Joe Biden&#8217;s administration wants to work with Congress to improve a U.S.-Africa&nbsp;trade pact, not just renew it without changes, U.S. Secretary of State Antony Blinken said on Friday.



The African Growth and Opportunity Act (AGOA), a U.S. trade initiative passed in 2000 to deepen trade ties with Africa and help African countries develop their economies, provides duty-free access to the U.S. market and is due to expire in September 2025 after being renewed twice.



African countries are pushing for an early 10-year extension without changes to reassure businesses and investors.



&#8220;President Biden fully supports the reauthorisation of AGOA. But we don&#8217;t just want to extend AGOA, we want to work with the United States Congress to make it even better,&#8221; Blinken said in a video message to a U.S.-Africa&nbsp;trade summit in Johannesburg, South&nbsp;Africa.



Despite longstanding bipartisan support for AGOA from U.S. lawmakers, who view it as critical in countering the influence of China on the continent, there are divisions over the need for updates.



More than a dozen U.S. senators are pushing for a quick AGOA renewal.



But the U.S. House of Representatives, paralysed for weeks by factional fighting over its speakership, faces a daunting list of must-pass legislation.



And attempts to change AGOA risk creating an impasse similar to the one that bogged down the reauthorisation of the Generalized System of Preferences, the largest and oldest U.S. trade preference programme,&nbsp;African government and U.S. industry associations say.



South&nbsp;African President Cyril Ramaphosa told the Johannesburg forum that&nbsp;African countries wanted the U.S. to look at the extension of AGOA for a sufficiently lengthy period to stimulate investment in new factories on the continent.



He said: &#8220;A more targeted effort to promote greater levels of investment can help to unlock AGOA&#8217;s opportunities.&#8221;



(Additional reporting by Carien du Plessis; Writing by Tannur Anders; Editing by Alexander Winning and Nick Macfie)

U.S. Secretary of State Blinken departs on trip to the Middle East and Asia from Joint Base Andrews in Maryland

Biden wants to improve U.S.-Africa trade pact, not just renew it – Blinken

<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 3 (Reuters)&nbsp;&#8211;&nbsp;Risk taking in emerging markets gained steam on Friday with stocks and currencies on track for weekly gains, as investors stayed hopeful of U.S. rates peaking, while Pakistan&#8217;s main index hit a record high.



MSCI&#8217;s index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;were up 1.3%, while a basket of regional currencies&nbsp;.MIEM00000CUS&nbsp;strengthened 0.3% against the dollar by 0917 GMT.



Following Federal Reserve&#8217;s Chair Jerome Powell&#8217;s comments on Wednesday, markets gained on the possibility that the central bank was done with rate hikes. However, U.S. October non-farm payrolls data due at 1230 GMT could be a test for the optimism.



EM stocks and currencies are eyeing their best weekly performances since July, with stocks set to end the week up 2.5% and the basket of currencies up 0.7%.



However, JP Morgan points out after filing through the EPFR data, that outflows from EM bond funds are still high across both hard and local currencies.



Pakistan&#8217;s benchmark stock index PAKS.PSX, .KSE surged 0.9% and hit a record high, a day after the country announced general election dates and the International Monetary Fund mission met with Pakistani authorities.



The local rupee&nbsp;PKR=&nbsp;was up 0.3%.



&#8220;Efficient handling of economic matters by the caretaker government is helping the economy and there are clear signs of economic revival,&#8221; said Mohammad Sohail, CEO of Topline Securities in Pakistan.



&#8220;After many years it looks like that IMF review will be completed smoothly this month. Moreover announcement of election dates has also helped support sentiment.&#8221;



The South Asian country is operating under a caretaker government after an IMF loan programme, approved in July, helped avert a sovereign debt default.



Also aiding gains, a private survey showed China services activity picked up in October, giving Hong Kong stocks .HSI a boost of 2.5%, their best one-day performance in three months.



Traders also gauged the impact of Washington&#8217;s latest sanctions against Russia over the war in Ukraine. The rouble RUBUTSTN=MCX edged up at 93 to the dollar.



Turkey&#8217;s lira TRYTOM=D4 weakened to 28.4 after data showed annual consumer price inflation dipped slightly to 61.4% in October.



Meanwhile in Africa, the South African rand ZAR= slipped 0.3% after a survey showed private sector activity fell in October.



Ethiopia&#8217;s birr ETB= was muted after ratings agency Fitch downgraded the country&#8217;s foreign currency debt deeper into junk territory, citing increased likelihood of a default.



In central Europe, Romania&#8217;s leu&nbsp;EURRON=&nbsp;traded tepidly against the euro ahead of Moody&#8217;s review of the country&#8217;s credit rating.



(Reporting by Johann M Cherian in Bengaluru; Additional reporting by Marc Jones; Editing by Varun H K)

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

Stocks, FX extend rally; Pak equities hit record high

<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/UJYWVG4STRN6FFJZPWU3RC4P3A-820x547.jpg" alt="" class="wp-image-428707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Italian Prime Minister Giorgia Meloni speaks during a news conference with Israeli Prime Minister Benjamin Netanyahu after their meeting at Palazzo Chigi, in Rome, Italy, March 10, 2023. REUTERS/Guglielmo Mangiapane/File Photo</figcaption></figure>



ROME, Nov 2 (Reuters)&nbsp;&#8211;&nbsp;A management structure including politicians and state-controlled&nbsp;firms&nbsp;will be in charge of an Italian government plan to boost&nbsp;energy cooperation with&nbsp;African countries&nbsp;and help curb mass illegal migration, a draft decree showed on Thursday.



The project, a flagship proposal of Prime Minister Giorgia Meloni, has been named after Enrico Mattei, founder of state-controlled oil and gas major Eni&nbsp;ENI.MI, but will lay the ground for cooperation beyond energy.



Under&nbsp;the draft decree,&nbsp;which is expected to be approved by the&nbsp;cabinet on Friday, Italy will help&nbsp;African nations in areas including education, exports, infrastructures, health and sustainable exploitation of natural resources.



Meloni previously said the project would aim to turn Italy into a major energy hub, distributing gas from North Africa and the Mediterranean to the rest of Europe, and address the root economic causes of mass migration from Africa.



&#8220;The Mattei Plan encourages the involvement of&nbsp;African states in the identification, definition and implementation of the Plan&#8217;s interventions,&#8221; the draft said.



Once heavily reliant on Russian gas, Italy managed to reduce such dependence since Russia&#8217;s invasion of Ukraine and now imports the fuel mostly from North&nbsp;Africa&nbsp;through several shippers including Eni,&nbsp;which will play a key role in helping Italy implement the Mattei plan, government officials said.



Migration is weighing on Italy&#8217;s right-wing administration. Arrivals of boat migrants have surged this year, with nearly 144,600 coming ashore against some 86,400 in the same period in 2022, severely denting an electoral pledge to block landings.



The draft said the Mattei Plan would last four years and envisage differentiated strategies for separate areas of the&nbsp;African continent.



The prime minister will oversee the administration in charge of the project, but representatives from state lender Cassa Depositi e Prestiti (CDP) and state-owned credit agency SACE will also be called in.



Italy, which will take over the presidency of the Group of Seven (G7) nations in 2024, pledged to make&nbsp;Africa&nbsp;a central theme while it is at the helm.



In July, it hosted a conference with Mediterranean and Middle East countries to discuss partnerships. Another summit with African nations was due in November, but the government postponed it after the Israel-Hamas war erupted.



(Reporting by Angelo Amante and Giuseppe Fonte; editing by Mark Heinrich)

UJYWVG4STRN6FFJZPWU3RC4P3A

Italy takes first step in flagship cooperation plan with Africa, draft shows

<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/GettyImages-1500303442-820x547.jpg" alt="" class="wp-image-428703" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ACCRA, GHANA &#8211; JUNE 18: H.E. Ambassador Albert Muchanga
Commissioner for Economic Development, Trade, Industry and Mining, African Union Commissioner (AUC) speaks at the African Export-Import Bank (Afreximbank) Annual Meeting on June 18, 2023 at the Accra International Conference Center in Accra, Ghana. The event is to mark the high point of the bank’s year-long 30th-anniversary celebrations, under the theme “Delivering the Vision. Building Prosperity for Africans”. (Photo by Ernest Ankomah/Getty Images)</figcaption></figure>



JOHANNESBURG, Nov 2 (Reuters) &#8211; Africa wants the U.S. Congress to renew its flagship trade programme for the continent for at least 10 years, the African Union&#8217;s top trade official said on Thursday, adding that any modifications to the initiative should only be considered later.



Speaking at the start of three days of meetings of&nbsp;African trade ministers and U.S. officials, AU Trade Commissioner Albert Muchanga also said the United States will not be granted tariff free access to a new&nbsp;African free trade area.



First launched in 2000, the African Growth and Opportunity Act (AGOA) grants exports from qualifying African countries duty free access to the United States &#8211; the world&#8217;s largest consumer market. It is due to expire in September 2025, and discussions are currently under way for its possible renewal.



&#8220;(An extension of) 10 to 20 years is very critical to the investment community. Anything lower than that would generate uncertainty,&#8221; Muchanga told the ministers, who gathered in Johannesburg to form a common position on the future of the programme.



The&nbsp;African ministers are due to meet with U.S. officials, including U.S. Trade Representative Katherine Tai, on Friday and Saturday.



U.S. lawmakers and the Biden administration have voiced support for renewing AGOA, which saw over $10 billion worth of&nbsp;African exports enter the United States duty free last year.



However, there is debate in Washington over whether the initiative needs updating.



Constance Hamilton, the Biden administration&#8217;s top trade official for Africa, said last week that Congress should consider changes that would &#8220;make the programme more impactful&#8221;.



African governments and some U.S. industry groups warn that attempting to modify AGOA as part of the renewal process could delay its reauthorisation.



&#8220;If there are any enhancements to be made, those should be done after the extension,&#8221; Muchanga said.



AGOA&#8217;s duty free provisions are currently one-sided. U.S. exports to&nbsp;African markets remain subject to national tariffs. Some U.S. lawmakers have in the past suggested the programme should be made more reciprocal.



Africa&nbsp;is in the process of setting up a new continent-wide free trade area, known as the AfCFTA, that aims to bring together 1.3 billion people in a $3.4 trillion economic bloc. Once fully implemented it will be the largest free trade area since the establishment of the World Trade Organization.



Muchanga told the ministers that many of the U.S. officials and lawmakers he had met to discuss AGOA&#8217;s renewal had assumed U.S. exports would be granted duty free entrance to the AfCFTA.



&#8220;I&#8217;ve told them very, very frankly that that is not possible,&#8221; he said. &#8220;If they try to export goods from the United States of America into&nbsp;Africa, they are going to meet national tariffs.&#8221;



The Biden administration said on Oct. 30 it intended to end the participation of Gabon, Niger, Uganda and the Central African Republic in AGOA over governance and rights failings.



(Reporting by Joe Bavier, Editing by William Maclean)

30th Afreximbank Annual Import-Export Fair In Ghana

Africa-US trade programme needs at least 10-year extension, AU says

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



Nov 2 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets&nbsp;received a boost&nbsp;on Thursday as investors were optimistic that U.S. interest rates have peaked, while Turkey&#8217;s central bank governor reiterated the regulator&#8217;s commitment to orthodox policy.



MSCI&#8217;s index tracking emerging markets stocks&nbsp;.MSCIEF&nbsp;rose 1.7%, its largest daily gain since late-July, while a basket of currencies&nbsp;.MIEM00000CUS&nbsp;strengthened 0.5% to an over one-month high against the dollar by 0923 GMT.



On Wednesday, the U.S. Federal Reserve held the policy rate steady in its current 5.25%-5.50% range.



While Chair Jerome Powell did not rule out another hike, markets judged he was not quite as hawkish as he could have been.



Powell seemed rather cautious at the meeting&nbsp;and investors are more certain now that the Fed is done with hiking at least for this year, said Minna Emilia Kuusisto, chief analyst at Danske Bank.



Emerging markets currencies have&nbsp;been under pressure&nbsp;for the past three months as worries over U.S. rates loomed amid geopolitical tensions.



However, with hopes of U.S. borrowing costs peaking, analysts expect&nbsp;the&nbsp;emerging market currencies to garner positive attention in November.



Meanwhile, Turkey&#8217;s BIST 100 index&nbsp;.XU100&nbsp;advanced 1.5%, its best day in a week, and the lira traded at 28.35 to the dollar.



The central bank vowed to continue gradual monetary tightening after raising its year-end inflation forecasts for this year and the next.



&#8220;The outlook has changed a lot for the positive in terms of economic and monetary policy&#8230; inflation is expected to remain very high for some time and rate hikes will continue unless something unexpected happens,&#8221; Kuusisto added.



The country&#8217;s lenders .XBANK also rose 1.3%. On Thursday, the regulator hiked required reserves for FX-protected lira deposits by 5 percentage points.



In central and eastern Europe, Czech&#8217;s crown&nbsp;EURCZK=R&nbsp;was little changed ahead of a monetary policy decision due at 1330 GMT.



Most economists polled by Reuters expect the regulator to face a close vote on whether to start cutting interest rates from more than two-decade highs this week or in December.



Poland&#8217;s zloty PLN= strengthened 0.4% after rate-setter Ludwik Kotecki said the country&#8217;s central bank should leave interest rates unchanged in November, due to significant uncertainty regarding future inflation and the shape of public finances.



Elsewhere, the International Monetary Fund (IMF) reached a preliminary agreement with Somalia that will allow for the release of $100 million in funding under a new 36-month credit programme.



In North&nbsp;Africa, Egypt is also expected to release its interest rate decision later in the day.



(Reporting by Johann M Cherian in Bengaluru; Editing by Sohini Goswami)

istockphoto-1076949610-612×612-1

Stocks, FX up as Fed holds rates; Turkey reiterates inflation fight

<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/WJU3YXOKM5J2TD2HJQTQRK2VFI-820x615.jpg" alt="" class="wp-image-428696" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WJU3YXOKM5J2TD2HJQTQRK2VFI-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WJU3YXOKM5J2TD2HJQTQRK2VFI-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WJU3YXOKM5J2TD2HJQTQRK2VFI-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WJU3YXOKM5J2TD2HJQTQRK2VFI-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WJU3YXOKM5J2TD2HJQTQRK2VFI-1536x1151.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WJU3YXOKM5J2TD2HJQTQRK2VFI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Aerial view shows Lake Kivu and the skyline of the city of Goma, North Kivu province, Democratic Republic of the Congo October, 21, 2023. REUTERS/Arlette Bashizi</figcaption></figure>



LONDON, Nov 2 (Reuters)&nbsp;&#8211;&nbsp;Yilport Holding will buy a controlling 35% stake in the operator of Ghana&#8217;s Takoradi port from Africa Finance Corporation (AFC), the two parties said on Thursday.



AFC did not disclose the value of the deal, but said it exited its $138 million investment in Atlantic Terminal Services Limited at a double digit return.



It cited the deal, which expands Yilport&#8217;s first foothold in Africa after an initial investment in Takordi in January, as an example of its ability to attract third-party capital and de-risk investment in African infrastructure.



&#8220;This serves as a strategic gateway for us to establish our presence in the African market,&#8221; Robert Yuksel Yildirim, Yilport&#8217;s chief executive, said in a statement.



Yilport Holding is a subsidiary of Amsterdam and Istanbul-based Yildirim Group.



The Takoradi investment marks Yilport&#8217;s first competition with the likes of DP World, the Dubai firm that has been investing in a string of ports across Africa in recent years.



In 2021, DP World announced a plan to jointly invest up to $1.72 billion in logistics infrastructure in Africa with CDC Group, Britain&#8217;s development finance agency.



Takoradi, a seaport in Ghana&#8217;s western region, serves as a gateway between west and central Ghana and neighbouring landlocked countries through a container and multipurpose terminal at the port. Yilport said it would make the port a logistics and trading hub for the region.



Ibistek and Ghana Ports &amp; Harbours Authority will remain the other stakeholders in Takoradi, with 19% and 30% respectively.



(Reporting by Libby George; Editing by Alexander Smith)

Aerial view shows Lake Kivu and the skyline of the city of Goma

Yilport takes controlling stake in Ghana’s Takoradi port operator

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="506" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-820x506.jpg" alt="" class="wp-image-428670" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-820x506.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-768x474.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-1536x947.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Locals walk past electricity pylons during frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Soweto, South Africa, July 3, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s hopes for a raft of new power projects to help it out of a crippling energy crisis are fading, with investment still elusive as an already extended funding deadline looms, government officials, companies and bankers have told Reuters.



Africa&#8217;s most developed economy is facing daily power cuts due to regular breakdowns at state power utility Eskom&#8217;s ageing coal-fired plants, and needs an extra 4-6 gigawatts (GW) of generating capacity, officials say, to end rolling blackouts.



But of the 11 power projects selected to deliver nearly 2 GW of new capacity by mid 2023 during a fast-tracked 2020 emergency auction, eight, representing more than 90% of the anticipated capacity, have yet to even secure investment.



Following the COVID-19 pandemic, the projects, a mix of solar, wind, battery storage and natural gas, have faced rising interest rates and higher costs for everything from solar panels and wind turbines to labour.



That has made it tougher for them to secure the investment they need from banks.



&#8220;When they were bid, I do think (the projects) were feasible,&#8221; said Sherrill Byrne, a banker at Standard Bank who has worked with some of the companies. &#8220;But the market moved against them, and now they are struggling.&#8221;



Only the three smallest, all from Norway&#8217;s Scatec&nbsp;SCATC.OL, have made significant progress, with one, of 50 megawatt capacity, coming online last month.



&#8220;The other two are likely to start before the end of the year,&#8221; said Zaid Moola, head of investment banking at Standard Bank&nbsp;SBKJ.J, the lead financier to Scatec&#8217;s projects.



The other successful bidders who sources say have yet to secure funding &#8211; South Africa&#8217;s Mulilo, France&#8217;s EDF and Engie&nbsp;ENGIE.PA, Turkish floating LNG firm Karpowership and Saudi Arabia&#8217;s Acwa Power&nbsp;2082.SE&nbsp;&#8211; have already had several extensions on an original mid-2022 deadline to reach financial close.



A possibly final year-end deadline for funding is now looming, the sources said, raising doubts over whether some of the projects will be built.



<h2 class="wp-block-heading" id="h-underdeliver">UNDERDELIVER</h2>



Delays in emergency power procurement will continue to hurt state utility Eskom&#8217;s financial performance this year, its acting CEO Calib Cassim said on Tuesday.



Other planned power projects in the country also look set to underdeliver. A source told Reuters in July the government now expects only half the anticipated 2.6 GW in capacity from a 2021 bidding round for wind and solar projects to come online.



A top official in President Cyril Ramaphosa&#8217;s office, who asked not to be named as he was not authorised to speak publicly on the matter, said it is unlikely further extensions to the 2020 projects beyond the coming December fundraising deadline will be permitted.



Beyond then, companies may be forced to relinquish their allotted grid capacity, he said, adding that decisions on deadline extensions are ultimately up to the Department of Mineral Resources and Energy. The DMRE told Reuters it weighs requests on a case-by-case basis.



Neither Acwa Power, which is building one 150 MW plant, nor Mulilo, which is meant to build two projects, responded to emailed questions.



A Mulilo executive, however, who asked not to be named as he was not authorised to speak to the press, said it had scrapped one of its projects after failing to secure approval for its location, while the other is still seeking to raise funds.



Mohamed Hoosen, Engie&#8217;s managing director for renewables in Asia, Middle East and Africa, said it plans to reach financial close on its 128 MW Oya Energy project by early December and launch it by October 2025.



EDF Renewables CEO Tristan De Drouas said his group signed power purchase agreements with Eskom in August and is arranging funds for its 75 MW Umoyilanga plant.



Karpowership, which is planning three plants with combined capacity of 1.22 GW, did not respond to questions on funding, but said South Africa&#8217;s environmental ministry has given it port access for one of its projects.



(Reporting by Promit Mukherjee; Editing by Joe Bavier and Jan Harvey)

South Africa’s Eskom extends daily power cuts for next week amid capacity shortage

Bulk of South Africa’s emergency power projects still seeking funds to build

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/ILJVS72EHJMUJH4IPZQ6AU4SIY-820x573.jpg" alt="" class="wp-image-428666" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/ILJVS72EHJMUJH4IPZQ6AU4SIY-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/ILJVS72EHJMUJH4IPZQ6AU4SIY-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/ILJVS72EHJMUJH4IPZQ6AU4SIY-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/ILJVS72EHJMUJH4IPZQ6AU4SIY-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/ILJVS72EHJMUJH4IPZQ6AU4SIY-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/ILJVS72EHJMUJH4IPZQ6AU4SIY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana gestures after attending a press conference ahead of Godongwana&#8217;s medium-term budget policy statement in Cape Town, South Africa, November 1, 2023. REUTERS/Esa Alexander</figcaption></figure>



CAPE TOWN, Nov 1 (Reuters) &#8211; South Africa&#8217;s finance minister will propose tax measures next year to raise additional revenue, a mid-term budget review said on Wednesday, as the National Treasury projected wider budget deficits and higher debt over the next three years.



A major constraint on South Africa&#8217;s economic growth potential in the last decade has been rolling power cuts as utility Eskom struggles with breakdowns at its coal-fired power plants. Underperformance at state-owned logistics company Transnet has also weighed on growth.



This, coupled with a significant drop in mining revenue as commodity prices fall, has resulted in lower tax receipts. Revenue collections in the current 2023/24 fiscal year were projected to be 56.8 billion rand ($3.04 billion) below estimates in the main February budget, the treasury said.



The treasury said it remained committed to stabilise public finances. This will be achieved through spending reductions, moderate tax revenue measures and efficiency measures across the government &#8211; including the reconfiguration of government that would involve the merging or closure of public entities.



&#8220;Given the extent of fiscal consolidation required, the Minister of Finance will propose tax measures to raise additional revenue of 15 billion rand in 2024/25 in the 2024 budget,&#8221; the treasury said.



The treasury did not elaborate on the specific measures, but Finance Minister Enoch Godongwana said in his budget speech that &#8220;our most effective way of funding government is through an efficient tax administration and by broadening the tax base&#8221;.



South Africa&#8217;s 2023 economic growth is forecast at 0.8% from 0.9% seen in February. The economy grew by 1.9% in 2022.



A consolidated budget deficit of 4.9% of gross domestic product (GDP) is expected in 2023/24, wider than a 4.0% deficit seen in February. Next year the treasury predicts a deficit of 4.6% of GDP and the following year 4.2% of GDP, wider than the 3.8% and 3.2% seen in February.



South Africa&#8217;s gross debt is expected to rise to 6.52 trillion rand in 2026/27 from 5.24 trillion rand in 2023/24. As a percent of GDP, gross debt is seen stabilising at 77.7% of GDP in 2025/26 compared with 73.6% of GDP in the same year seen in February.



($1 = 18.7143 rand) 



(Reporting by Wendell Roelf in Cape Town, and Kopano Gumbi, Anait Miridzhanian and Olivia Kumwenda-Mtambo in Pretoria; Additional reporting by Nellie Peyton, Bhargav Acharya and Tannur Anders in Johannesburg; Editing by Alexander Winning)

South Africa issues medium-term budget policy statement

South Africa plans tax measures to boost revenue, debt seen rising

<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 1 (Reuters)&nbsp;&#8211;&nbsp;Trading across most emerging markets was tepid on Wednesday, with investors staying on the sidelines ahead of the highly-anticipated U.S. Federal Reserve rate decision, as they assessed factory activity data from local economies.



MSCI&#8217;s index tracking EM stocks&nbsp;.MSCIEF&nbsp;was unchanged, while a basket of developing markets currencies&nbsp;.MIEM00000CUS&nbsp;edged down 0.1% by 0902 GMT.



Economists widely expect the Fed to leave benchmark borrowing rates unchanged in the range of 5.25% and 5.5% at its decision due at 1800 GMT.



Following a recent surge in U.S. Treasury yields that pressured emerging markets stocks and currencies in October, investors are especially keen on the central bank&#8217;s outlook.



&#8220;With markets fully priced for an unchanged rate decision and no updated economic projections, all eyes will be on Powell&#8217;s forward guidance,&#8221; Danske Bank analysts wrote in a note.



Disappointing October manufacturing activity data across emerging economies also tempered risk sentiment.



Indian stocks .NSEI dipped 0.4% and the rupee INR= was flat after data showed October manufacturing growth slowed for a second straight month in October as demand eased.



&#8220;We think that the sector will continue to slow over the coming months as the impact of higher policy rates continues to be felt and external demand weakens,&#8221; said Thamashi De Silva, assistant India economist at Capital Economics.



Turkey&#8217;s lira TRYTOM=D4 traded at 28.3 to the dollar after domestic factory activity contracted for a fourth consecutive month in October as firms struggled to secure new business and scaled back production.



The domestic BIST 100 index .XU100 shed 0.2%, with banks .XBANK slipping 0.2% after Finance Minister Mehmet Simsek said the country will move to inflation-adjusted accounting, but financial institutions may be excluded from the practice.



Meanwhile, South Africa&#8217;s rand&nbsp;ZAR=&nbsp;slipped 0.4% ahead of the local Medium-Term Budget Policy Statement (MTBPS) in parliament, which is due at 1200 GMT.



China&#8217;s blue-chip index .CSI300 and Hong Kong&#8217;s Hang Seng index .HSI closed the session flat, after latest private survey added to Tuesday&#8217;s data which renewed concerns over the country&#8217;s sprawling manufacturing sector.



In central and eastern Europe, most currencies traded tepidly against the euro, as markets in Poland and Hungary were closed on account of a public holiday.



Czech&#8217;s crown EURCZK= weakened 0.2% after a survey showed factory activity edged up to 42 from the month before, but stayed in contraction territory for the 17th month.



(Reporting by Johann M Cherian in Bengaluru; Editing by Varun H K)

Stock market report. 3d illustration

Investors kick off Nov on caution ahead of Fed policy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/FCJC7HET7ZIJXIEW4RC4SMQKRY-820x524.jpg" alt="" class="wp-image-428654" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/FCJC7HET7ZIJXIEW4RC4SMQKRY-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/FCJC7HET7ZIJXIEW4RC4SMQKRY-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/FCJC7HET7ZIJXIEW4RC4SMQKRY-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/FCJC7HET7ZIJXIEW4RC4SMQKRY-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/FCJC7HET7ZIJXIEW4RC4SMQKRY-1536x982.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/FCJC7HET7ZIJXIEW4RC4SMQKRY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Norah Nasimiyu works on denim trousers for export at the United Aryan Export Processing Zone (EPZ) factory, operating under The U.S. African Growth and Opportunity Act (AGOA), in Ruaraka district of Nairobi, Kenya October 26, 2023. REUTERS/Thomas Mukoya/File photo</figcaption></figure>



NAIROBI, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;Norah Nasimiyu knows the future of Kenya&#8217;s garment trade, which has employed her for 13 years and helped her put six children through school and university, lies in the hands of the U.S. Congress.



And like others, she is worried.



U.S. officials visiting South Africa this week to meet African trade ministers will face calls to reauthorise the <a href="https://www.cnbcafrica.com/2023/the-u-s-african-growth-and-opportunity-act-agoa/">African Growth and Opportunity Act (AGOA)</a> which expires in 2025.



Despite longstanding bipartisan support from lawmakers, who view Washington&#8217;s flagship African trade initiative as critical to taking on China, deep dysfunction on Capitol Hill and divisions over the need for updates have raised doubts.



Apparel companies and industry insiders warn that Africa risks a once-in-a-generation shift away from Chinese manufacturing passing it by, with an estimated 240,000 to 290,000 jobs such as Nasimiyu&#8217;s under threat.



&#8220;We are praying that they extend,&#8221; the single mother said during a break from stitching Levi&#8217;s jeans at a Nairobi factory. &#8220;It is very hard to get a job here in Kenya.&#8221;



Apparel has been the standout success story of AGOA, which launched in 2000 to help develop African economies and foster democracy.



African apparel exports under the programme reached nearly $1.4 billion last year, double the amount pre-AGOA.



Pankaj Bedi, chairman of UAL and Norah Nasimiyu&#8217;s employer, said AGOA&#8217;s duty free access to the world&#8217;s biggest consumer market is the reason his company &#8211; Kenya&#8217;s largest garment producer &#8211; exists.



&#8220;Almost 100% of what we are exporting goes to the U.S.&#8221;



<h2 class="wp-block-heading" id="h-bypassing-africa">BYPASSING AFRICA</h2>



Industry insiders and policymakers see a chance to build on that success as companies reduce their dependence on China in the wake of the pandemic and subsequent supply chain headaches.



&#8220;We&#8217;ve been struck by how open the opportunity is now for us,&#8221; South African Trade Minister Ebrahim Patel said last week.



Nearly 80% of companies polled in a July survey by the United States Fashion Industry Association (USFIA) planned to reduce Chinese sourcing over the next two years.



&#8220;Many of them talk about Africa,&#8221; said Stephen Lamar, CEO of the American Apparel and Footwear Association.



Capturing even a fraction of that business could prove transformative for Africa. But companies need clarity, he said, adding: &#8220;If it is not renewed until two years from now, these current investment decisions are going to bypass Africa&#8221;.



That lack of clarity is not only hitting new investments.



The USFIA survey found that 45% of respondents had already reduced sourcing from AGOA countries over renewal uncertainty, while another 45% plan to cut sourcing from the continent if there is no reauthorisation by June 2024.



<h2 class="wp-block-heading" id="h-collapse">&#8216;COLLAPSE&#8217;</h2>



African governments are pushing for a similar reauthorisation to the 10-year AGOA extension approved by Congress in 2015 with bipartisan support, ideally before an expected U.S. election year pause on new trade legislation.



But that is looking increasingly unlikely.



&#8220;There&#8217;s a high level of uncertainty about what happens and the context keeps shifting,&#8221; said Michael Walsh, a senior fellow at the Philadelphia-based Foreign Policy Research Institute.



Amid deepening global polarisation, Moscow, Beijing and the West are all leveraging trade and economic ties as they step up efforts to court African governments.



More than a dozen U.S. senators are pushing for a quick AGOA renewal arguing the need to &#8220;counter the malign influence of China, Russia, and other foreign actors&#8221;.



But the House of Representatives, paralysed for weeks by factional fighting over its speakership, faces a daunting list of must-pass legislation.



And there is another obstacle to a quick reauthorisation, namely a well-intentioned desire to improve AGOA.



The U.S. International Trade Commission (USITC) in a report earlier this year highlighted major shortcomings.



More than 80% of duty-free non-petroleum AGOA exports, for example, came from South Africa, Kenya, Lesotho, Madagascar and Ethiopia.



&#8220;Some countries have benefited greatly from AGOA, but the majority have not,&#8221; Constance Hamilton, the Biden administration&#8217;s top trade official for Africa, said last week, calling for Congress to consider changes that would &#8220;make the programme more impactful&#8221;.



Such talk worries apparel company executives, who point to the troubled fate of the Generalized System of Preferences (GSP) &#8211; the largest and oldest U.S. trade preference programme.



Congress failed to renew GSP before it expired at the end of 2020 and its reauthorisation remains bogged down in gridlock between the House and Senate over eligibility requirement changes.



Attempts to change AGOA risk creating a similar impasse, said Greg Poole, Senior Advisor for Global Sourcing at clothing company The Children&#8217;s Place&nbsp;PLCE.O.



&#8220;If we try to radically change AGOA, it&#8217;s going to get stalled out. And if it gets stalled out, it&#8217;s going to follow the path of GSP,&#8221; he said.



There is little doubt what would happen in AGOA&#8217;s absence.



The USITC report said AGOA benefits &#8220;appear to be essential for &#8230; countries to maintain their apparel exports to the United States&#8221;.



It pointed to a temporary suspension of Madagascar&#8217;s AGOA benefits in 2009, which cost it 50,000 to 100,000 jobs, while Ethiopia lost 100,000 jobs when it was suspended last year.



In Kenya, UAL Chairman Bedi remains hopeful, but knows how things will play out if AGOA evaporates.



&#8220;All the companies which are here will be gone for sure, including mine &#8230; The industry will collapse.&#8221;



FACTBOX-The U.S. African Growth and Opportunity Act (AGOA) <a href="https://www.cnbcafrica.com/2023/the-u-s-african-growth-and-opportunity-act-agoa/">Read full story</a>



(Reporting by Joe Bavier in Johannesburg and Duncan Miriri in Nairobi; Editing by Alexander Smith)

Norah Nasimiyu works on denim trousers for export at the United Aryan EPZ factory in Ruaraka district of Nairobi

African apparel industry’s future hangs on a U.S. thread

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="500" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OEX3CTZGVVK5JCYM3ZTGGFW43A-820x500.jpg" alt="" class="wp-image-428647" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OEX3CTZGVVK5JCYM3ZTGGFW43A-820x500.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OEX3CTZGVVK5JCYM3ZTGGFW43A-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OEX3CTZGVVK5JCYM3ZTGGFW43A-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OEX3CTZGVVK5JCYM3ZTGGFW43A-768x468.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OEX3CTZGVVK5JCYM3ZTGGFW43A-1536x936.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OEX3CTZGVVK5JCYM3ZTGGFW43A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenyan workers check clothes made for export at the United Aryan Export Processing Zone (EPZ) factory, operating under the U.S. African Growth and Opportunity Act (AGOA), in Ruaraka district of Nairobi, Kenya October 26, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



Nov 1 (Reuters)&nbsp;&#8211;&nbsp;South Africa will host the annual African Growth and Opportunity Act (AGOA) Forum in Johannesburg from Nov 2-4 to discuss the United States&#8217; flagship trade programme for the continent.



Here are some key facts about AGOA:



<h2 class="wp-block-heading" id="h-what-is-agoa">WHAT IS AGOA?</h2>



The African Growth and Opportunity Act is a U.S. trade initiative passed in 2000 under former President Bill Clinton to deepen trade ties with Sub-Saharan Africa and help African countries develop their economies.



AGOA provides duty-free access to the U.S. market for most agricultural and manufactured products exported by eligible African countries.



It has been renewed twice and is due to expire in September 2025.



<h2 class="wp-block-heading" id="h-who-benefits">WHO BENEFITS?</h2>



About 35 African countries are eligible. Countries can lose and regain eligibility based on criteria including economic policies and protection of human rights.



A number of countries including Ghana, Kenya, Lesotho, Madagascar and Ethiopia have successfully used AGOA to boost exports to the U.S. and create jobs, especially in textiles.



One study estimated that 350,000 direct jobs were created due to AGOA from 2001 to 2011.



The United States benefits by furthering its interests on the continent. Countries that undermine U.S. national security or foreign policy interests are not eligible for AGOA.



U.S. lawmakers view it as an important soft power tool, particularly as a counter to Chinese influence.



<h2 class="wp-block-heading" id="h-what-do-critics-say">WHAT DO CRITICS SAY?</h2>



Many analysts have pointed out that AGOA is under-utilized.



Only about half the eligible countries have developed national AGOA utilization strategies, and the majority of exports come from just a few.



A U.S. government study found that more than 80% of non-petroleum exports under AGOA came from just five countries in 2021. And while the&nbsp;apparel sector&nbsp;has been the programme&#8217;s biggest success story, other industries have lagged.



Some critics say that AGOA has failed to live up to expectations. U.S. imports from AGOA beneficiaries peaked in 2008, and in 2021 accounted for only 1% of all U.S. imports.



Some analysts say that AGOA has had a positive impact, but that it needs to be updated and improved to include newer industries such as technology and digital services.



<h2 class="wp-block-heading" id="h-beyond-2025">BEYOND 2025</h2>



One of the main topics likely to be in focus at the forum is whether or not to extend AGOA.



Experts say that the U.S. could renew AGOA in its current form, let it expire, or attempt to rethink and reform it.



African countries are pushing for an early 10-year extension without changes in order to reassure businesses and investors who might have concerns over AGOA&#8217;s future.



A group of U.S. senators has also backed a quick and lengthy renewal, but the office of the U.S. Trade Representative is calling for changes to make AGOA more effective.



(Reporting by Nellie Peyton; Editing by Joe Bavier and Alexander Smith)

Kenyan workers check clothes made for export at the United Aryan EPZ factory in Ruaraka district of Nairobi

FACTBOX-The U.S. African Growth and Opportunity Act (AGOA)

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AR3HWBTG6VMVDAMWHXJAFBNKZQ-820x548.jpg" alt="" class="wp-image-428635" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AR3HWBTG6VMVDAMWHXJAFBNKZQ-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AR3HWBTG6VMVDAMWHXJAFBNKZQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AR3HWBTG6VMVDAMWHXJAFBNKZQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AR3HWBTG6VMVDAMWHXJAFBNKZQ-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AR3HWBTG6VMVDAMWHXJAFBNKZQ-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AR3HWBTG6VMVDAMWHXJAFBNKZQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. Secretary of the Treasury Janet Yellen, President Joe Biden, and Secretary of State Antony Blinken attend the U.S.-Africa Leaders Summit Closing Session on Promoting Food Security and Food Systems Resilience, at the Walter E. Washington Convention Center, in Washington, D.C., U.S. December 15, 2022. REUTERS/Ken Cedeno</figcaption></figure>



WASHINGTON, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;U.S. President Joe Biden said on Monday that he intends to end the participation of Gabon, Niger, Uganda and the Central African Republic in the African Growth and Opportunity Act (AGOA) trade program.



Biden said he was taking the step because of &#8220;gross violations&#8221; of internationally recognized human rights by the Central African Republic and Uganda.



He also cited Niger and Gabon&#8217;s failure to establish or make continual progress toward the protection of political pluralism and the rule of law.



&#8220;Despite intensive engagement between the United States and the Central African Republic, Gabon, Niger, and Uganda, these countries have failed to address United States concerns about their non-compliance with the AGOA eligibility criteria,&#8221; Biden said in a letter to the speaker of the U.S. House of Representatives.



Biden said he intends to terminate the designation of these countries as beneficiary sub-Saharan African countries under the AGOA, effective Jan. 1, 2024.



He said he will continue to assess whether they meet the program&#8217;s eligibility requirements.



Launched in 2000, AGOA grants exports from qualifying countries duty-free access to the U.S. market. It is set to expire in September 2025, but discussions are already under way over whether to extend it and for how long.



African governments and industry groups are pushing for an early 10-year extension without changes in order to reassure business and new investors who might have concerns over AGOA&#8217;s future.



(Reporting by Jasper Ward in Washington; Editing by Matthew Lewis)

FILE PHOTO: U.S President Joe Biden participates in the U.S.-Africa Leaders Summit in Washington

US to evict Gabon, Niger, Uganda and Central African Republic from trade 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/2023/10/ABAZWTPJHJPOVPZE2S7EGTK244-820x547.jpg" alt="" class="wp-image-428631" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ABAZWTPJHJPOVPZE2S7EGTK244-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ABAZWTPJHJPOVPZE2S7EGTK244-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ABAZWTPJHJPOVPZE2S7EGTK244-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ABAZWTPJHJPOVPZE2S7EGTK244-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ABAZWTPJHJPOVPZE2S7EGTK244-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/ABAZWTPJHJPOVPZE2S7EGTK244-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The North Korean flag flutters at the North Korea consular office in Dandong, Liaoning province, China April 20, 2021. Picture taken April 20, 2021. REUTERS/Tingshu Wang</figcaption></figure>



SEOUL, Oct 31 (Reuters)&nbsp;&#8211;&nbsp;North Korea&#8217;s recent closing of its diplomatic missions in Angola and Uganda was a sign that the reclusive country is struggling to make money overseas because of international sanctions, South Korea&#8217;s unification ministry said on Tuesday.



Both Angola and Uganda have forged friendly ties with North Korea since the 1970s, maintaining military cooperation and providing rare sources of foreign currency such as statue-building projects.



But on Monday, Pyongyang&#8217;s state media outlet KCNA said its ambassadors paid &#8220;farewell&#8221; visits to Angolan and Ugandan leaders last week, and local media in both African countries reported the shutdown of the North&#8217;s embassies there.



Seoul&#8217;s unification ministry, which handles inter-Korean affairs, said the pullout reflected the impact of international sanctions aimed at curbing funding for the North&#8217;s nuclear and missile programs.



&#8220;They appear to be withdrawing as their foreign currency earning business has stumbled due to the international community&#8217;s strengthening of sanctions, making it difficult to maintain the embassies any longer,&#8221; the ministry said in a statement. &#8220;This can be a sign of North Korea&#8217;s difficult economic situation, where it is difficult to maintain even minimal diplomatic relations with traditionally friendly countries.&#8221;



North Korea has formal relations with 159 countries, but had 53 diplomatic missions overseas, including three consulates and three representative offices, until it pulled out of Angola and Uganda, according to the ministry.



Japan&#8217;s Yomiuri Shimbun newspaper reported last week, citing unnamed sources, that North Korea was planning to shut down at least 10 diplomatic missions, including a consulate in Hong Kong, largely because of economic difficulties.



(Reporting by Hyonhee Shin; Additional reporting by Hyunsu Yim; Editing by Gerry Doyle)

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Reuters

Nigerian court orders release or bail hearing for ex-central bank head

US-Africa program should be extended through 2041, Senate Democrat says

Nigeria’s naira firms on black market, central bank settles FX forwards

Stocks jump on boost from South Korean shares, FX rise

Biden wants to improve U.S.-Africa trade pact, not just renew it – Blinken

Stocks, FX extend rally; Pak equities hit record high

Italy takes first step in flagship cooperation plan with Africa, draft shows

Africa-US trade programme needs at least 10-year extension, AU says

Stocks, FX up as Fed holds rates; Turkey reiterates inflation fight

Yilport takes controlling stake in Ghana’s Takoradi port operator

Bulk of South Africa’s emergency power projects still seeking funds to build

South Africa plans tax measures to boost revenue, debt seen rising

Investors kick off Nov on caution ahead of Fed policy

African apparel industry’s future hangs on a U.S. thread

FACTBOX-The U.S. African Growth and Opportunity Act (AGOA)

US to evict Gabon, Niger, Uganda and Central African Republic from trade program

North Korea’s closure of Africa embassies a sign of economic hardships – South’s ministry

News Tips

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