<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Stock</figcaption></figure>



Oct 25 (Reuters)&nbsp;&#8211;&nbsp;Most equities across emerging markets were steady on Wednesday as investors took some comfort from latest spending plans by the world&#8217;s second-largest economy, China, while geopolitical uncertainties in the Middle East remained a concern.



MSCI&#8217;s index tracking emerging markets stocks&nbsp;.MSCIEF&nbsp;rose nearly 1% in early trade, and was last up 0.1% amid volatile trading.



Heavy-weight China stocks .CSI300 bolstered early gains and closed 0.5% higher after China&#8217;s government approved a $137 billion bond issue, adding that the new fiscal stimulus will help bolster economic recovery.



&#8220;The additional fiscal support approved today is the intervention we had been expecting and that was needed to prevent an abrupt fiscal tightening in China in the closing weeks of the year,&#8221; said Mark Williams, chief Asia economist at Capital Economics.



&#8220;These new steps will keep it supportive but not deliver any additional boost.&#8221;



Keeping a lid on optimism were developments in the Middle East as investors were concerned about the conflict widening in the region and involving larger players like Iran, that could threaten oil supplies, a crucial resource to emerging markets.



Crude prices pared early losses and were marginally higher, while major crude importer India&#8217;s rupee&nbsp;INR=&nbsp;edged 0.2% lower and Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;traded 28 to the dollar.&nbsp;O/R



A basket of emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;dipped 0.2% against the greenback by 0925 GMT.



Meanwhile, the Israeli shekel IL= traded tepidly after S&amp;P Global revised Israel&#8217;s outlook to &#8220;negative&#8221; from &#8220;stable&#8221; overnight, citing risks that the conflict could spread more widely with a more pronounced impact on the economy and security situation in the country.



More broadly, risk sentiment improved since the last session as yields on longer-dated U.S. Treasury notes retreated. U.S. economic data this week could determine the outlook for monetary policy in the world&#8217;s largest economy.



Among currencies in eastern and central Europe, Hungary&#8217;s forint EURHUF= led losses dipping 0.5% against the euro after the local central bank&#8217;s bigger-than-expected cut to its base rate on Tuesday.



In Poland, the benchmark index .WIG added 0.2% with Santander&#8217;s SAN.MC Polish unit gaining 0.9% after posting a more than a five-fold rise in its quarterly net profit and beating market expectations.



In Russia, the rouble RUBUTSTN=MCX strengthened to a more than six-week high at 93 to the greenback as exporters increased sales of foreign currency revenues.



Elsewhere, a representative of the International Monetary Fund said the lender&#8217;s mission will visit Pakistan in the following week to discuss the first review of the country&#8217;s current $3 billion standby arrangement. The local rupee PKR= climbed 0.6%.



(Reporting by Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala)

Investment-management

Stocks steady after China stimulus, FX inch down amid geopolitical jitters

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



LAGOS, Oct 24 (Reuters) &#8211; Nigeria is aiming to reduce the number of taxes levied by federal and state governments from more than 60 to fewer than 10, the head of a tax reform committee said on Tuesday, part of changes to make it easier to conduct business and to boost revenues.



Africa&#8217;s biggest economy, Nigeria, has a tax-to-GDP ratio of 10.8%, one of the world&#8217;s lowest, forcing the government to rely on borrowing to fund its national budget.



Investors often cite Nigeria&#8217;s many taxes and multiple revenue collection agencies for adding to the cost of doing business and discouraging investment.



Taiwo Oyedele, President Bola Tinubu&#8217;s advisor on tax reform, told reporters that Nigeria has over 60 official taxes and levies collected by federal and state governments and local authorities, mandated by law.



Including unofficial taxes &#8211; taxes that agencies legally or illegally levy without the backing of law &#8211; Nigeria has more than 200 taxes, Oyedele said, adding that the large number was &#8220;making life difficult for our people.&#8221;



&#8220;The more taxes you have, actually, the less revenue you collect because it just creates the opportunity for leakages and some non-state actors collecting money and keeping it to themselves,&#8221; he said.



Oyedele said part of the reforms would see changes to the constitution to clarify which level of government should collect particular taxes.



Some states like Lagos, which generates the most tax revenue, passed laws last year designed to allow state governments to collect value-added tax rather than a federal agency, causing a dispute with the federal government that is before the courts. (Reporting by MacDonald Dzirutwe; Editing by Rod Nickel)

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

Nigeria aims to cut number of taxes to fewer than 10 – official

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-820x549.jpg" alt="" class="wp-image-403037" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b.jpg 1023w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via Flickr</figcaption></figure>



SINGAPORE, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Ghana is looking to boost its oil and gas production by selling more exploration rights, aiming to avoid leaving valuable fossil fuels in the ground and generate revenue to fund its energy transition, a Ghanaian official said on Tuesday.



The West African country is suffering its worst economic crisis in generations and has been seeking investors from countries such as the United States, China and India for its oil and gas sectors.



&#8220;For any investor to look at a temporary hiccup as a basis for decisions in Ghana I think would be making a mistake,&#8221; said Andrew Kofi Egyapa Mercer, deputy minister at Ghana&#8217;s energy ministry, in an interview with Reuters on the sideline of a conference during the Singapore International Energy Week.



&#8220;Post Russia, we have all recognise the need for energy security. And it&#8217;s important that we are not caught pants down,&#8221; he added, referring to Russia&#8217;s invasion of Ukraine.



Mercer said Ghana is marketing oil and gas blocks including both new acreages and fields relinquished by ExxonMobil.



&#8220;The plan really is that we do not intend to get any of our assets stranded. (As) all the commitments that the West with respect to the Paris agreements have never been met, so it&#8217;s important for us to fund our own transition or at least a significant part of it,&#8221; said Mercer, referring to international agreements on combatting global warming.



Currently, Ghana produces 160,000-170,000 barrels-per-day (bpd) of crude oil and about 325 million standard cubic feet per day (scfd) of natural gas, he said.



Sankofa, a major gas field in Ghana and part of the Offshore Cape Three Points (OCTP), has boosted gas output to 235 million scfd from 210 million scfd after some enhancement programmes, he added.



&#8220;We are looking to get to 250 million scfd,&#8221; said Mercer, adding Sankofa&#8217;s expansion plan was expected to be submitted to the Ministry of Energy in January or February next year. &#8220;That is a significant milestone for us.&#8221;



Mercer also said African Finance Corp had secured approval to develop the Pecan field project, which will churn out 80,000 bpd of oil. The final investment decision is expected in the first quarter of 2024, with production starting in 2025-2026, he said.



Ghana is also looking to increase clean energy in its power generation mix and export more electricity to neighbouring countries, he said.



Currently, about 60% of Ghana&#8217;s power is generated from natural gas, 5% from heavy oil and the rest is hydropower and solar.



(Reporting by Muyu Xu and Florence Tan; Editing by Mark Potter)

2770193028_68edc662a9_b

Ghana looks to market more oil and gas blocks

<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>



Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Most equities and currencies inched up on Tuesday as the greenback and U.S. treasury yields eased after a recent surge, while investors awaited an interest rate decision by the Hungarian central bank.



MSCI&#8217;s basket of emerging market currencies&nbsp;.MIEM00000CUS&nbsp;added 0.2% as the dollar retreated, mirroring a dip in U.S. treasury yields ahead of a slew of economic data due later in the week that could determine the outlook for monetary policy in the United States.&nbsp;USD/



Equities&nbsp;.MSCIEF&nbsp;also gained 0.2% by 0904 GMT, snapping a four-day losing streak.



However, Chris Turner, global head of markets and regional head of research for UK &amp; CEE at ING, said unless sharply weaker U.S. data starts coming in, it is hard to see the long end of treasury yields coming a lot lower.



EM stocks had dropped to near 11 month lows in the previous session, while investors stayed clear of currencies amid concerns about U.S. interest rates, China&#8217;s ailing property sector and geopolitical uncertainties.



In eastern and central Europe, Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;inched up 0.2% against the euro to a two-month high ahead of a central bank policy rate decision due at 1200 GMT. Most economists polled by Reuters expect a 50 basis point rate cut.



&#8220;If the Hungarian central bank decides to cut interest rates more than expected, this could trigger a sell-off in the currency, which has weakened markedly since the series of interest rate cuts began,&#8221; Grzegorz Drozdz, market analyst at Conotoxia, said.



Drozdz expects a 100 basis point cut.



A poll showed economists expect Turkey&#8217;s central bank to deliver another hefty rate hike of 500 basis points later in the week, as it continues to tighten policy against rising inflation. The lira TRYTOM=D4 traded a nudge over 28 to the dollar.



The Russian rouble RUBUTSTN=MCX strengthened to a six-week high past 94 to the dollar, supported by higher oil prices and increased foreign currency sales by exporters as a month-end tax period approached.



Elsewhere, World Bank President Ajay Banga said that geopolitical tensions pose the biggest threat to the world economy, but that risks &#8220;tend to move around&#8221; fast, so others should not be ignored.



Meanwhile, Argentinian 2046 dollar bonds extended previous session declines, falling more than 5 cents on the dollar, as per Marketaxess.



(Reporting by Johann M Cherian in Bengaluru; Editing by David Holmes)

World map with charts and graphs as symbols of global finance

Stocks, FX steady amid US bond yields relief; Hungarian rate decision due

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-820x547.jpg" alt="" class="wp-image-428459" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/46OGH4XFANJW7OJEEG3THQTVQM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ajay Banga, World Bank president, participates in global infrastructure and investment forum in New York, Thursday, Sept. 21, 2023. Seth Wenig/Pool via REUTERS/File Photo</figcaption></figure>



LONDON, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Geopolitical tensions heightened by the Middle East conflict pose the biggest threat to the world economy right now but other risks are also at play, World Bank President Ajay Banga said on Tuesday.



&#8220;The U.S. 10-year Treasury (yield) just crossed 5% briefly yesterday, these are areas we haven&#8217;t seen. So yes, that is right there lurking in the shadows,&#8221; Banga said, referring to a rise in the benchmark for borrowing costs around the world which further threaten an economic slowdown.



&#8220;And then, how long before the next pandemic?&#8221; Banga said during an event at the annual Future Investment Initiative (FII) in Riyadh.



&#8220;There is so much going on in the world and geopolitics in the wars that you&#8217;re seeing and what just happened recently in Israel and Gaza. At the end of the day, when you put all this together, I think the impact on economic development is even more serious,&#8221; he said.



Risks tend to move around, he said. &#8220;So I would be very careful of fixating on one and ignoring the others right now.&#8221;



Banga said that while everything in the developed world looks better than had been expected some time ago, &#8220;I think that we&#8217;re at a very dangerous juncture.&#8221;



He said private sector investment is needed in developing economies but political risks in some of these countries remain a barrier.



&#8220;One trillion of dollars is needed just for renewable energy in the emerging markets. There is not enough money in government coffers or even in the multilateral development banks, we need to involve the private sector with their capital,&#8221; he said. &#8220;And that is the biggest task we have ahead of us.&#8221;



(Reporting by Jorgelina do Rosario; Editing by Karin Strohecker, Mike Harrison and Susan Fenton)

FILE PHOTO: Global infrastructure and investment forum in New York

World Bank’s Banga says geopolitics pose biggest, but not the only, risk to world economy

<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/SXAQKAVSKBOUDIV2WJWWIWAOQY-820x547.jpg" alt="" class="wp-image-428441" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/SXAQKAVSKBOUDIV2WJWWIWAOQY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/SXAQKAVSKBOUDIV2WJWWIWAOQY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/SXAQKAVSKBOUDIV2WJWWIWAOQY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/SXAQKAVSKBOUDIV2WJWWIWAOQY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/SXAQKAVSKBOUDIV2WJWWIWAOQY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/SXAQKAVSKBOUDIV2WJWWIWAOQY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">World Bank President Ajay Banga speaks on the second day of the annual meeting of the International Monetary Fund and the World Bank, following last month&#8217;s deadly earthquake, in Marrakech, Morocco, October 10, 2023. REUTERS/Susana Vera</figcaption></figure>



LONDON, Oct 23 (Reuters)&nbsp;&#8211;&nbsp;Nigeria on Monday won its bid to overturn an $11 billion damages bill for a collapsed gas processing project it said was procured by a concerted campaign of bribery.



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



Process &amp; Industrial Developments (P&amp;ID) was awarded a 20-year contract in 2010, to construct and operate a gas processing plant in southern Nigeria, as part of a wider plan to exploit Nigeria&#8217;s abundant reserves of gas.



After the deal collapsed, P&amp;ID took Nigeria to arbitration in London and in 2017 was awarded $6.6 billion for lost profits – a sum which has swelled with interest to over $11 billion, representing ten times the country&#8217;s 2019 health budget.



However, Nigeria&#8217;s lawyers say the country was the victim of &#8220;a campaign of bribery and deception&#8221; by P&amp;ID, which they say paid bribes to senior officials to obtain the contract and then corrupted the country&#8217;s lawyers to obtain confidential documents during the arbitration.



P&amp;ID denied that it procured the contract through bribery or that it corrupted Nigeria&#8217;s legal team during the arbitration, blaming the failure of the gas deal and the country&#8217;s arbitration defeat on institutional incompetence.



Judge Robin Knowles allowed Nigeria&#8217;s challenge in a written ruling on Monday.



(Reporting by Sam Tobin, Editing by Kylie MacLellan)

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

Nigeria wins bid to overturn $11 billion bill for collapsed gas deal

<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>



Oct 23 (Reuters)&nbsp;&#8211;&nbsp;Risk sentiment in most emerging markets took a hit on Monday, amid lingering geopolitical uncertainty and expectations of U.S. monetary conditions remaining tighter for longer.



MSCI&#8217;s index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;slipped 0.9% to its lowest level in eleven months by 0948 GMT.



Closely-watched crude prices dipped as diplomatic efforts to contain the Israel-Hamas war intensified, even as the conflict raged on into a new week.&nbsp;O/R



The basket of emerging markets currencies&nbsp;.MIEM00000CUS&nbsp;was little changed,&nbsp;even as&nbsp;the dollar was underpinned by elevated U.S. Treasury yields, an indicator of interest rate expectations.



&#8220;Widening conflict in the Middle East would most affect global markets through sharply higher oil prices,&#8221; UBS analysts wrote in a note.



&#8220;We would expect greater asset price swings in the event of a regional escalation that draws in other nations, such as Iran.&#8221;



The shekel&nbsp;ILS=&nbsp;was muted ahead of a central bank rate decision due at 1300 GMT, where economists expect it to stay pat on borrowing costs.



Elsewhere, Argentina&#8217;s sovereign dollar-denominated bonds fell as much as 4 cents on the dollar after Sergio Massa emerged as the frontrunner in the presidential vote on Sunday, setting the stage for a polarized run-off vote between the Economy Minister and far-right libertarian radical Javier Milei.



&#8220;Milei&#8217;s surprise win will only add to uncertainty ahead of the election proper in October, as investors consider what a Milei government would mean, and it appears to dent the JxC&#8217;s chances,&#8221; said Stuart Culverhouse, chief economist and global head of fixed income research at Tellimer.



Meanwhile, Chinese equities were a drag, with the blue-chip index&nbsp;.CSI300&nbsp;closing down 1.0%, its lowest in over 4-1/2 years amid lingering property sector worries.



Goldman Sachs&#8217; preferred gauge of foreign exchange flows showed September capital outflows from China rose sharply to $75 billion, the biggest monthly figure since 2016, underscoring intensifying depreciation pressure on the yuan.



More broadly, EM currencies have remained range-bound as investors were wary of riskier foreign exchange markets amid geopolitical uncertainties, while keeping an eye on the outlook for U.S. monetary policy.



In central and eastern Europe, Czech&#8217;s crown EURCZK= inched down 0.1% against the euro after central bank board member Jan Prochazka was quoted saying market expectations for two interest rate cuts this year are overdone.



In northern Africa, S&amp;P became the latest ratings agency to downgrade Egypt&#8217;s long-term sovereign credit rating by one notch to &#8220;B-&#8220;, citing the country&#8217;s mounting funding pressures.



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

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

Equities tumble as rate worries, geopolitical tensions wear on

<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/RJUL736CIBMWRICRDSGJHBJ5IE-820x547.jpg" alt="" class="wp-image-428431" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: High Representative of the European Union for Foreign Affairs and Security Policy Josep Borrell speaks during a news conference in Beijing, China October 14, 2023. REUTERS/Xiaoyu Yin/File Photo</figcaption></figure>



BRUSSELS, Oct 23 (Reuters)&nbsp;&#8211;&nbsp;European Union countries on Monday adopted a framework to impose sanctions on members of a junta that seized power in Niger in July.



The new framework will allow the EU to sanction individuals and entities responsible for actions that threaten the peace, stability and security of Niger, undermine the constitutional order, or constitute serious violations to human rights or international humanitarian law, the EU Council said.



With this, the EU aims to mirror and strengthen any measures taken by the West&nbsp;African regional body ECOWAS.



&#8220;The EU has from the very beginning condemned the coup d&#8217;état in Niger in the strongest terms,&#8221; EU foreign policy chief Josep Borrell said.



&#8220;With today&#8217;s decision, the EU strengthens its support to ECOWAS&#8217; efforts and sends a clear message: military coups bear costs.&#8221;



With the restrictive measures, the EU could freeze assets of targeted entities and individuals and hand them travel bans.



This is a developing story&#8230;



(Reporting by Bart Meijer; Editing by Bernadette Baum)

High Representative of the European Union for Foreign Affairs and Security Policy Josep Borrell speaks during a news conference in Beijing

EU agrees on framework for Niger sanctions

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="419" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-820x419.jpg" alt="" class="wp-image-428397" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-820x419.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-300x153.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-160x82.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-768x392.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER.jpg 1370w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Credit: REUTERS/STRINGER</figcaption></figure>



CAPE TOWN, Oct 20 (Reuters)&nbsp;&#8211;&nbsp;Africa is at the forefront of a global wave of new floating gas facilities as countries on the continent seek to meet surging demand in Europe as quickly and cheaply as possible, analysts and energy companies told Reuters.



Eni&nbsp;ENI.MI, BP&nbsp;BP.L&nbsp;and smaller independent players such as Nigeria&#8217;s UTM&nbsp;Offshore&nbsp;are driving the surge with projects on Africa&#8217;s east and west coasts.



Floating Liquefied Natural Gas (FLNG) vessels shipped Mozambique&#8217;s first-ever gas exports last November, and the Republic of Congo is preparing for its first LNG exports in December.



Africa currently exports 40 million tons per annum (mmtpa) of gas, and Westwood Global Energy group expects the continent to add 10.2 mmpta in new FLNG capacity by 2027, with projects in Mozambique, Nigeria, Senegal, Mauritania and Republic of the Congo.



&#8220;We believe FLNG will be a nice tool of developing gas in a quicker and more efficient way,&#8221; Luca Vignati, Eni&#8217;s upstream director told Reuters.



Over the next five years Westwood forecasts $13 billion in spending on FLNG, with Africa accounting for just under 60% of the 18.3 mmpta of added FLNG capacity by 2027. It expects a further 36.5 mmpta to start up after 2027 valued at $22 billion.



<h2 class="wp-block-heading" id="h-taking-to-the-sea">TAKING TO THE SEA</h2>



FLNG facilities are ships that can pump, liquefy, store and export gas directly from offshore fields. They bypass extensive – and costly – infrastructure needed to process gas onshore, and keep a distance from communities who often protest against having projects nearby.



Operators, energy companies and bankers say improvements in vessel technology and turnaround times have hastened demand since Shell&#8217;s&nbsp;SHEL.L&nbsp;pioneering but delayed FLNG vessel Prelude, anchored off Australia.



&#8220;A typical FLNG can be done for a fraction of the cost of a traditional (LNG production) train,&#8221; Fola Fagbule, senior vice president with the African Finance Corporation, which has helped fund FLNG projects in Africa.



Illustrating potential savings, one analyst said capex costs for Cameroon&#8217;s Golar FLNG facility, a repurposed vessel, could be as low as $550 a ton, compared to $900-$1,100 for a new onshore terminal on the U.S. Gulf Coast.



Africa has struggled to pump its gas despite record prices following Russia&#8217;s invasion of Ukraine as the energy transition focus hit fossil fuel financing.



The energy transition has also made investors cautious about multi-billion-dollar projects with 20-30-year investment cycles. FLNG has a quicker turnaround, with Eni targeting new-build ships to produce just four years after investment.



&#8220;You don&#8217;t need to have a 25-year plateau for huge reserves. You may be there for five or 10 years, and then you move to the next field, and this is the flexibility we want,&#8221; Eni&#8217;s Vignati told Reuters.



<h2 class="wp-block-heading" id="h-at-the-centre">AT THE CENTRE</h2>



Africa currently has more than 50% of the world&#8217;s FLNG capacity. The offshore ships also bypass safety issues, such as those that delayed TotalEnergies&#8217; $20 billion Afungi terminal in northern Mozambique &#8211; adding to their appeal.



&#8220;Africa is the centre right now &#8230; and its going to grow,&#8221; Gavin Thompson, vice chair research at Wood Mackenzie told Reuters on the sidelines of an African energy conference in Cape Town.



&#8220;Interestingly it&#8217;s not one single country or one single region, we are seeing around both East and West Africa,&#8221; he said, adding, &#8220;they are competing against each other&#8221;.



The lower costs are also crucial. Wood Mackenzie data showed that the total amount of upstream capital expenditure across Africa is falling.



Eni is deploying two vessels, one repurposed and another larger new vessel, to the Republic of the Congo for a total expected output of 3 mmtpa by 2025.



It also plans to make a final investment decision with its JV partners regarding a second 3.4 mmtpa FLNG project in Mozambique&#8217;s Rovuma Basin by June next year.



Bruno Itoua, hydrocarbons minister for Congo Republic, told the Cape Town energy conference that its first exports would come by December 2023.



&#8220;It&#8217;s not only an investment opportunity but also an extraordinary chance to build a legacy,&#8221; he said.



African gas exports can be controversial, as around 600 million people, half of those on the continent, lack access to electricity.



But governments, some of which are in debt crises, are under pressure to rake in royalties and taxes while prices are hot.



Fagbule of the AFC said it was not unusual for governments to earmark some gas from FLNG facilities for domestic consumption, but that full-scale projects targeting domestic markets are tough to finance due to a limited amount of customers able to pay.



&#8220;They see the amount of demand for seaborne natural gas that can be delivered across the globe, and they are trying to get that as soon as possible,&#8221; he said.



(Reporting by Wendell Roelf and Libby George; editing by Jason Neely)

2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER

Amid gas scramble, Africa leads a boom in nimble export facilities

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Stock</figcaption></figure>



Oct 19 (Reuters)&nbsp;&#8211;&nbsp;Sentiment was fragile on Thursday, with risky emerging markets stocks and currencies in the red as interest rate worries gathered steam and tensions in the Middle East showed little signs of easing.



MSCI&#8217;s gauge for emerging markets equities&nbsp;.MSCIEF&nbsp;had dropped 1.2% to a near two-week low by 0904 GMT.



The currencies index&nbsp;.MIEM00000CUS&nbsp;also fell 0.2%, pressured by rising U.S. bond yields on both long and short-dated tenors which hit multi-year highs.



With latest U.S. data hinting at a resilient economy, traders are pricing in restrictive monetary policy for a while as they await Federal Reserve Chair Jerome Powell&#8217;s remarks at 1600 GMT.&nbsp;US/



&#8220;As much as (EM central banks) like to keep up with the Fed, many of them had pushed rates into restrictive territory and do need to dial back a bit in order to support growth,&#8221; Jonathan Petersen, senior markets economist at Capital Economics said.



&#8220;It could keep rates elevated a little bit longer than maybe we had anticipated in emerging markets but ultimately this is a negative.&#8221;



Meanwhile, worries about China&#8217;s embattled property sector mounted, with Country Garden&#8217;s 2007.HK bondholders seeking urgent talks with the troubled property giant after it missed a $15 million coupon repayment, sources said.



Hong Kong&#8217;s Hang Seng&nbsp;.HIS&nbsp;tumbled 2.5%, bogged down by a 2.5% drop in property stocks&nbsp;.HSMPI.



Separately, data showed China&#8217;s September new home prices fell, dashing hopes of a turnaround in demand during a traditionally peak home buying period despite efforts to revive the crisis-hit sector.



Furthermore, the Israel-Hamas conflict continued to be factor for the mood across markets over the past couple of sessions as investors watched out for any signs of escalation.



The Israeli shekel ILS= held steady against the dollar, while the cost of insuring Israel&#8217;s debt against default shot over a 10-year high, according to S&amp;P Global Market Intelligence.



Bringing some relief to inflation worries, oil prices eased after OPEC showed no signs of supporting Iran&#8217;s call for an oil embargo on Israel and as the U.S. planned to ease Venezuela sanctions.&nbsp;O/R



In eastern and central Europe, Polish September industrial output fell by 3.1% on an annual basis, missing a forecast of 3.6% decline. The zloty EURPLN= inched up 0.1% against the euro.



Romania&#8217;s leu EURRON=R was little changed ahead of the publication of central bank&#8217;s minutes on monetary policy issues due at 1200 GMT.



(Reporting by Johann M Cherian in Bengaluru; Editing by Alison Williams)

Stocks tumble and FX slide as eyes on Powell’s Fed remarks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Oct 19 (Reuters) &#8211; The South African rand was weaker in early trade on Thursday on soaring U.S. Treasury yields ahead of a speech by Federal Reserve Chair Jerome Powell.



At 0733 GMT, the rand traded at 19.0775 against the dollar , about 0.5% weaker than its previous close.



U.S. Treasury yields hit 16-year highs on Wednesday, boosted by expectations that the Fed would keep interest rates higher for longer.



&#8220;If yields continue to rise, the USD will eventually run stronger,&#8221; said Rand Merchant Bank analysts in a morning briefing.



The rand often takes its cues from global factors such as U.S. monetary policy in addition to local factors.



&#8220;The rate hike concerns and heightened Middle East tensions are driving the dollar stronger and dampening risk sentiment,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



&#8220;Poor local retail sales data also did not help the rand&#8217;s cause,&#8221; Cilliers added.



Global markets will turn their attention to a speech by Powell later in the day for hints on the future interest rate path of the world&#8217;s biggest economy.



Shares on the Johannesburg Stock Exchange opened lower, with the blue-chip Top-40 index down about 0.9%.



South Africa&#8217;s benchmark 2030 government bond was weaker in early deals, with the yield up 13.5 basis points to 10.960%. 



(Reporting by Tannur Anders; Editing by Bhargav Acharya and Alison Williams)

Illustration photo of South African rand

South African rand weaker on soaring US Treasury yields

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-820x543.jpg" alt="" class="wp-image-428329" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-1536x1018.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Joe Biden walks as he departs Joint Base Andrews for a high-stakes visit to Israel, in Maryland, U.S., October 17, 2023. REUTERS/Evelyn Hockstein</figcaption></figure>



WASHINGTON, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;U.S. President Joe Biden left Washington Tuesday evening on a whirlwind trip that was originally expected to touch down in Israel for an update on Israel&#8217;s war aims in its battle with Hamas militants, and then Jordan, to stress the need to get humanitarian assistance to Gaza civilians.



A strike on a Gaza hospital late on Tuesday that killed hundreds of Palestinians saw Arab leaders call off their planned summit with Biden in Jordan however, and that leg of the trip cancelled.



MEETING WITH ISRAEL&#8217;S NETANYAHU BUT NOT ARAB LEADERS



Biden is spending part of Wednesday in Tel Aviv for talks with Israeli Prime Minister Benjamin Netanyahu and other officials as Israel prepares a ground offensive aimed at eliminating Hamas militants in Gaza who killed 1,300 people during a rampage through southern Israeli towns on Oct. 7.



Biden will no longer fly to Amman for talks about humanitarian assistance after Jordan&#8217;s King Abdullah cancelled a summit with Egyptian President Abdel Fattah al-Sisi, and Palestinian President Mahmoud Abbas.



Abbas, who has long been opposed to Hamas and whose organization exercises limited self-rule in the Israeli-occupied West Bank, said after the Gaza hospital strike he would not meet the U.S. President.



Palestinian authorities say Israel is responsible for the strike, Israel said the blast was caused by a failed rocket launch by the Palestinian Islamic Jihad militant group, which denied blame. Biden backed Israel&#8217;s account.



<h2 class="wp-block-heading" id="h-humanitarian-concerns-in-gaza">HUMANITARIAN CONCERNS IN GAZA</h2>



Biden&#8217;s second trip to a war zone this year &#8211; he visited Ukraine in February &#8211; carries some risk. His goal was originally to show American solidarity with Netanyahu while trying to avoid a broader regional war involving Iran and its Lebanese ally Hezbollah and Syria.



How he accomplishes that balance while meeting only Netanyahu and Israeli officials is unclear.



The United States has stationed a carrier strike group in the eastern Mediterranean in a show of force for Israel and a second is on the way.



Biden also wants to avert a humanitarian calamity in Gaza where authorities say thousands have already been killed in Israeli bombardment over the last week.



Hundreds of tons of aid from several countries have been waiting in Egypt&#8217;s Sinai peninsula for days pending a deal for its safe delivery to Gaza and the evacuation of some foreign passport holders through the Rafah crossing.



&#8220;He&#8217;ll make it clear that we want to continue working with all our partners in the region, including Israel, to get humanitarian assistance in and provide some kind of safe passage for civilians to get out,&#8221; said White House national security spokesperson John Kirby.



<h2 class="wp-block-heading" id="h-israel-red-lines">ISRAEL RED LINES</h2>



Biden and Netanyahu, thrown into a wartime partnership despite deep political differences on the way forward in the Middle East, have joined forces.



Biden has given Israel full-throated support while stressing the need to head off a massive humanitarian crisis in Gaza.



Their face-to-face meeting, after several phone calls since the attacks, will allow Biden to privately discuss concerns and possible red lines in the coming Gaza invasion.



Biden will also get an update on the scores of hostages taken by Hamas. The State Department has said 29 citizens of the United States were killed in the Hamas attacks, with 15 citizens and one lawful permanent resident unaccounted for.



Israel has vowed to annihilate the Hamas movement.



Biden will make clear that &#8220;Israel has the right and indeed the duty to defend its people from Hamas and other terrorists and to prevent future attacks,&#8221; Secretary of State Antony Blinken told reporters in Tel Aviv.



He said Israel would brief Biden on its war aims and strategy and how it will conduct operations &#8220;in a way that minimizes civilian casualties and enables humanitarian assistance to flow to civilians in Gaza in a way that does not benefit Hamas.&#8221;



The U.S. and Israel agreed to develop a plan that will enable humanitarian aid from donor nations and multilateral organizations to reach civilians in Gaza, Blinken said.



(Reporting By Steve Holland; additional reporting by Humeyra Pamuk in Tel Aviv; Editing by Raju Gopalakrishnan, Heather Timmons, Alexandra Hudson)

U.S. President Biden departs Joint Base Andrews for a high-stakes visit to Israel

Biden’s Israel visit focuses on Netanyahu after Arab summit cancelled

<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>



Oct 18 (Reuters)&nbsp;&#8211;&nbsp;Equities and currencies across most emerging markets came under pressure on Wednesday as investors stayed clear of big bets as oil prices spiked following intensifying tensions in the Middle East.



Oil prices jumped after hundreds were killed in a blast at a Gaza hospital, sparking concerns that the conflict could widen into the broader region and involve big oil suppliers like Iran. O/R



Adding to jitters, Jordan cancelled a summit with U.S. President Joe Biden, Egyptian and Palestinian leaders.



Currencies of large crude importers like Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;hit a record low of 28.05 against the dollar, while India&#8217;s rupee&nbsp;INR=&nbsp;was flat.



&#8220;The conflict in the Middle East does provide an upside risk to monetary policy in emerging markets,&#8221; said Shaun Murison, senior market analyst at IG Markets.



&#8220;Oil prices have renewed an upward trajectory which if extended or maintained will provide significant cost pressures to these economies.&#8221;



MSCI&#8217;s gauge of emerging market equities&nbsp;.MSCIEF&nbsp;fell 0.5%, while the currencies index&nbsp;.MIEM00000CUS&nbsp;was flat by 0900 GMT.



In some relief, a set of China data suggested a recent flurry of policy measures was helping to bolster a tentative recovery in the world&#8217;s second-largest economy.



The spot yuan CNY=CFXSstrengthened after data signalled gross domestic product (GDP) grew in quarter three, while September industrial production and retail sales rose and beat expectations.



However, caution loomed as Country Garden&#8217;s 2007.HK $15 million coupon payment deadline expired without word of payment and Hong Kong&#8217;s property sector .HSMPI closed 0.7% lower.



Riskier emerging markets currencies have seen little action recently as investors stayed wary amid a spiralling Israel-Hamas conflict, while keeping an eye on the U.S. monetary policy outlook and signs of a China recovery.



Israel&#8217;s shekel ILS= shed 0.1% and government bonds ticked lower after ratings agency Fitch placed its sovereign debt rating on watch negative and warned of negative rating action in case of major conflict escalation.



Meanwhile, Saudi Arabia&#8217;s sovereign wealth fund started taking orders for its debut dollar-denominated, dual-tranche Islamic bond.



Elsewhere, South Africa&#8217;s rand ZAR= added 0.3% after data showed September consumer inflation rose to 5.4% year-on-year from 4.8% in August.



Murison said the figures were unlikely to change the path of monetary policy in South Africa and expectations are that the central bank will maintain lending rates at current levels until the end of the year.



(Reporting by Johann M Cherian in Bengaluru; editing by Robert Birsel)

Stock market report. 3d illustration

Stocks slide, FX flat as Middle East conflict rages on

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-820x517.jpg" alt="" class="wp-image-428300" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-820x517.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-768x484.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-1536x969.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



JOHANNESBURG, Oct 18 (Reuters) &#8211; Inflation in South Africa rose sharply in September but stayed within the central bank&#8217;s target range, fuelling analysts&#8217; expectations that interest rates would be left unchanged next month.



Statistics South Africa said headline consumer inflation rose to 5.4% year-on-year in September from 4.8% in August , with food, fuel and transport sectors being the biggest contributors.



Core inflation, which excludes food and fuel costs, fell to 4.5% year-on-year in September from 4.8% in August.



The South African Reserve Bank (SARB) targets inflation between 3% and 6% and prefers to see it around the midpoint of that range.



Economist Elize Kruger said headline inflation was likely to remain above 5% until around the third quarter of 2024 but that the current level of interest rates was sufficiently restrictive.



&#8220;The SARB will keep rates unchanged at this level for a pro-longed period, before a first cut in interest rates would be considered,&#8221; she said.



Kruger also cautioned that the impact of a poultry crisis in the country on food inflation would only be seen in the October print.



South Africa is currently dealing with its worst outbreak of avian flu, which has hit egg and chicken meat supplies. Millions of chickens have been culled while many grocery retailers are limiting the number of eggs shoppers can buy.



The SARB warned on Tuesday that upside risks to inflation had strengthened over the past months, heightening uncertainty about a precise path for inflation.



Investec economist Annabel Bishop said inflation was expected to average 5.8% this year and 4.6% the next, while the rand currency and fuel prices posed risks to its outlook.



The central bank kept rates on hold in its previous two policy meetings after 10 consecutive hikes to curb inflation.



&#8220;There are likely to be no further hikes in South Africa&#8217;s interest rate cycle,&#8221; Bishop said. (Reporting by Bhargav Acharya and Tannur Anders; Editing by Olivia Kumwenda-Mtambo, Alexandra Hudson)

OS4O3CS7QBOS3O54QF2N6D4B4E

South Africa’s inflation rises sharply on food and fuel prices

<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/CT4VY4XKGZMQBDEIRI26VVUIBI-820x547.jpg" alt="" class="wp-image-428290" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Amazon is seen, November 15, 2022. REUTERS/Pascal Rossignol/File Photo</figcaption></figure>



JOHANNESBURG, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;Amazon&nbsp;AMZN.O&nbsp;said on Tuesday it would launch its online shopping service in South Africa next year, making it only the second African country after Egypt where the U.S. e-commerce giant has set up a locally-dedicated website.



South Africa will be Amazon&#8217;s 21st country with a local domain name-based website, challenging a slew of online retailers dominated mainly by Naspers&#8217;&nbsp;NPNJn.J&nbsp;Takealot.com.



&#8220;The launch of Amazon.co.za in 2024 will provide independent sellers throughout the country an opportunity to rapidly launch, grow, and scale their businesses,&#8221; Amazon said in a statement.



Africa&#8217;s most advanced economy is usually seen as a beachhead for companies to expand into the continent and Amazon could be doing the same, analysts have said in the past.



The launch of its service comes at a time when South Africa has seen a sharp rise in online shopping after the pandemic created an opportunity for e-commerce to finally take hold, with retailers doubling down on investments in response.



But of late the spike in online sales appears to have peaked as South Africans return to shopping malls.



Also, given South Africa&#8217;s anaemic growth, high unemployment, power supply and transportation problems, analysts do not see the launch as a game-changer for Amazon or a major disruptor for the local industry.



&#8220;I don&#8217;t think their takeover of South Africa retail is a slam dunk,&#8221; said Sasfin Wealth senior equity analyst Alec Abraham.



While Amazon is expected to intensify competition with local online and traditional retailers, &#8220;the reality is that the consumer pie in South Africa is not growing,&#8221; he said.



Last year, Takealot Group Chief Executive Officer Mamongae Mahlare told Reuters the company&#8217;s vast delivery network and local appeal would ensure it competes well with Amazon.



It is not yet known how Amazon&#8217;s platform will be configured as it will have to comply with the local competition authority&#8217;s rules which mandate online retailers to separate their retail division from their marketplace operations.



(Reporting by Nqobile Dludla; Editing by Promit Mukherjee and Mark Potter)

FILE PHOTO: The logo of Amazon is seen, November 15, 2022.

Amazon to launch online shopping service in South Africa in 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-820x429.jpg" alt="" class="wp-image-428267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



LONDON, Oct 17 (Reuters) &#8211; Ghana&#8217;s sovereign dollar bonds dropped sharply on Tuesday after a government presentation of debt rework scenarios that aimed for a haircut of between 30-40% on the principal disappointed investors.



Some bonds fell to their lowest level in three months, with the 2061 issue down as much as 2.9 cents in the dollar to 38.9 cents, Tradeweb data showed.&nbsp;XS2115147287=TE&nbsp;The bonds later recovered some ground, though were still down between 1.5 cents and 2.2 cents in the dollar.



The West African country, which produces gold, cocoa and oil, is in talks with bilateral and commercial creditors to restructure its debts during its worst economic crisis in a generation, having been locked out of international capital markets as it struggles with spiralling domestic debt costs.



Apart from the haircut, Finance Minister Ken Ofori-Atta also told investors that the government was aiming for a coupon of no more than 5% and a final maturity of not more than 20 years on the bonds that would be issued as part of the debt rework for its $13 billion of outstanding international bonds.



While exact details were still missing, Morgan Stanley said in a note to clients it had calculated a recovery value of $38 versus the current average price of $44 on the bonds.



&#8220;In our view, this proposal is unlikely to be accepted by the bondholders as the ultimate recovery value would be extremely low compared to history,&#8221; Morgan Stanley&#8217;s Neville Z Mandimika said.



&#8220;However, it is important to note that this is only a first proposal and various revisions will likely be made, presumably with a higher recovery value,&#8221; Mandimika said, adding that the government had also indicated that a value recovery instrument was being considered.



(Reporting by Karin Strohecker Additional reporting by Marc Jones Editing by Amanda Cooper and Mark Potter)

GBWK4H7B3ZI2ZMQX6TI6OQT76A

Ghana dollar bonds tumble as investors balk at debt overhaul plans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-820x542.jpg" alt="" class="wp-image-428259" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-1536x1015.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ashley Karungi 33, a member of the lesbian, gay, bisexual, transgender, intersex and queer (LGBTQ) community and a single mother of two poses for a picture with rainbow colours at the offices of Rella Women&#8217;s Empowerment Program, for LGBTQ rights advocacy, after a Reuters interview in Kulambiro suburb of Kampala, Uganda April 4, 2023. REUTERS/Abubaker Lubowa/File Photo</figcaption></figure>



MARRAKECH, Morocco, Oct 16 (Reuters) &#8211; The World Bank will aim to ensure gay and transgender Ugandans are not discriminated against in its programmes before resuming new funding, which was halted in August over an anti-LGBTQ law, a bank executive said.



World Bank project documents will make it clear that LGBTQ Ugandans should not face discrimination and that staff will not be arrested for including them, Victoria Kwakwa, the bank&#8217;s head for eastern and southern Africa, told Reuters.



Rights groups have said that the Anti-Homosexuality Act (AHA), which was enacted in May and prescribes the death penalty for certain same-sex acts, has unleashed a torrent of abuse against LGBTQ people, mostly by private individuals.



&#8220;We&#8217;re doing all this to clarify this is not what you should be doing in World Bank-financed projects and to say you are allowed to do it the right way and you will be not be arrested,&#8221; Kwakwa said, on the sidelines of the World Bank and International Monetary Fund&#8217;s annual meetings in Marrakech, Morocco.



She declined to give a timeline for assessing the measures&#8217; efficacy and moving to a decision on whether to resume new funding for Uganda.



&#8220;We have discussed this at length with government. Government is comfortable with that,&#8221; Kwakwa said.



When the World Bank suspended new funding, Ugandan officials accused the development finance institution of hypocrisy, saying it was lending to countries in the Middle East and Asia that have the same or harsher laws targeting LGBTQ people.



The government would need to revise its budget to reflect the suspension&#8217;s potential financial impact, a junior finance minister said at the time.



The World Bank&#8217;s portfolio of projects in the East African country was $5.2 billion at the end of 2022. These have not been affected by the decision to suspend new financing.



(Reporting by Rachel Savage and Jorgelina do Rosario, Editing by Andrew Cawthorne)

Reuters

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Reuters

Stocks steady after China stimulus, FX inch down amid geopolitical jitters

Nigeria aims to cut number of taxes to fewer than 10 – official

Ghana looks to market more oil and gas blocks

Stocks, FX steady amid US bond yields relief; Hungarian rate decision due

World Bank’s Banga says geopolitics pose biggest, but not the only, risk to world economy

Nigeria wins bid to overturn $11 billion bill for collapsed gas deal

Equities tumble as rate worries, geopolitical tensions wear on

EU agrees on framework for Niger sanctions

Amid gas scramble, Africa leads a boom in nimble export facilities

Stocks tumble and FX slide as eyes on Powell’s Fed remarks

South African rand weaker on soaring US Treasury yields

Biden’s Israel visit focuses on Netanyahu after Arab summit cancelled

Stocks slide, FX flat as Middle East conflict rages on

South Africa’s inflation rises sharply on food and fuel prices

Amazon to launch online shopping service in South Africa in 2024

Ghana dollar bonds tumble as investors balk at debt overhaul plans

World Bank to implement LGBTQ safeguards before new Uganda funding resumes

News Tips

Advertise With Us

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