<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/6EPQGFLVVJKVRAR2V24PAMYMBA.jpg" alt="" class="wp-image-618704" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/6EPQGFLVVJKVRAR2V24PAMYMBA.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/6EPQGFLVVJKVRAR2V24PAMYMBA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/6EPQGFLVVJKVRAR2V24PAMYMBA-135x90.jpg 135w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">A man trades U.S. dollars for Ghanaian cedis at a currency exchange office in Accra, Ghana, June 15, 2015. Picture taken June 15. REUTERS/Francis Kokoroko/File photo</figcaption></figure>



ACCRA, May 8 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s currency is seen rising further in the coming week to Thursday, while Nigeria&#8217;s and Uganda&#8217;s could be broadly steady and Zambia&#8217;s may drop, traders said.



GHANA



Ghana&#8217;s cedi&nbsp;GHS=&nbsp;is expected to extend its recent gains, bolstered by sustained central bank support and offshore inflows.



LSEG data showed the cedi trading at 13.20 to the dollar on Thursday, compared to 14.00 at last Thursday&#8217;s close.



&#8220;The cedi has rallied considerably in recent weeks on the back of strong FX supply, largely from the central bank, which continues to provide ample support to the local market,&#8221; said Sedem Dornoo, a senior trader at Absa Bank Ghana.



&#8220;We expect the rally to continue in the coming week, likely falling below the 13.00 cedi psychological level,&#8221; he added.



Another trader said: &#8220;The current robust supply of dollars bodes well for the cedi.&#8221;



NIGERIA



Nigeria&#8217;s naira is seen holding steady in the coming week as regular central bank interventions provide liquidity.



The naira&nbsp;NGN=&nbsp;was quoted around 1,607 to the dollar in intraday trading on Thursday, compared with a closing quote of 1,605 naira a week earlier.



The unit was sold at 1,606 naira to the dollar in street trading&nbsp;NGNP=&nbsp;on Thursday.



&#8220;I expect the coming week to trade between 1,600 and 1,615 levels,&#8221; a trader said.



&#8220;The central bank has sold funds at around 1,600 naira. What we can deduce is that the central bank &#8230; is comfortable with those levels,&#8221; the trader added.



UGANDA



Uganda&#8217;s shilling&nbsp;UGX=&nbsp;is seen trading stable, helped by muted hard-currency appetite from importers.



Commercial banks quoted the shilling at 3,655/3,665 to the dollar, unchanged from last Thursday&#8217;s close.



&#8220;(FX) appetite is very low across the board, but also inflows are modest. &#8230; I don&#8217;t expect it (shilling) to break out of its recent range,&#8221; a trader said.



He said the local unit was likely to swing in the 3,645-3,675 to the dollar range in the days ahead.



ZAMBIA



Zambia&#8217;s kwacha&nbsp;ZMW=&nbsp;is likely to marginally fall next week, snapping a winning streak.



On Thursday the currency was quoted at 26.50 from 27.80 a week ago.



Zambia National Commercial Bank said in a note that the local currency had traded stronger this week as dollar buyers stayed out of the market in anticipation of more favourable exchange rates.



&#8220;We expect the kwacha to change course towards weakening as previously hibernating demand tickets resurface,&#8221; the bank said.



(Reporting by Christian Akorlie, Chijioke Ohuocha, Elias Biryabarema and Chris Mfula; Editing by Alexander Winning)

6EPQGFLVVJKVRAR2V24PAMYMBA

AFRICA-FX-Ghana’s cedi seen extending gains

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-820x547.jpg" alt="" class="wp-image-618677" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY.jpg 970w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man jogs as office buildings under construction are seen in the distance, in Luanda, Angola, August 26, 2022. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



NAIROBI/LUANDA, May 8 (Reuters) &#8211; A $200 million margin call by JPMorgan on Angola&#8217;s $1 billion loan at the height of the global selloff of risky assets has exposed the high costs of unorthodox financing heavily indebted African issuers have been turning to, analysts say.



Africa&#8217;s debt has soared to more than $1.8 trillion, the African Development Bank said, leading to three sovereign debt defaults in the past four years and unconventional financing deals as governments wrestle with high repayments.



Senegal, Gabon and Cameroon are among those who have resorted to so-called &#8220;off-screen&#8221; deals like private bond placements in recent months, as heavy debt burdens and political uncertainty in some cases limit their access to regular markets.



&#8220;We are going to see more of these transactions in the foreseeable future, especially if regular and conventional Eurobond market access remains constrained for single B and low-rated countries,&#8221; said Samir Gadio, head of Africa strategy at Standard Chartered in London.



The yield on bonds Senegal privately placed last year is nearly 100 basis points higher than on its 2031 Eurobond, meaning it is paying more for the new debt, illustrating the costs to countries that are already struggling to fund essential sectors like health and education. Loans often come at a 150-200 bps premium over existing bonds, analysts said.



Southern African crude oil exporter Angola, which is saddled with high external debt to various creditors, including oil-backed loans from China, has become emblematic of the dilemma many governments in the region face.



It entered a one-year Total Return Swap deal with JPMorgan last December, a rarely used financing instrument, backed by freshly issued Angolan government dollar bonds.



The government did not actually raise cash with the $1.9 billion bonds. It used them as collateral for two tranches of $600 million and $400 million loan financing from JPMorgan, to avoid adding the debt to its books.



Its Eurobonds tumbled as investors dumped assets perceived as risky following U.S. President Donald Trump&#8217;s announcement of sweeping trade tariffs.



The price of Angola&#8217;s 2030 bond, which serves as collateral for the loan from JPMorgan, fell from 100 cents on the dollar at the end of March to a low of 86 cents during the selloff, before recovering to 95 cents.



&#8220;The risk with this sort of transaction is that if there is a market shock, then the margin calls could become a burden,&#8221; said Standard Chartered&#8217;s Gadio.



STATE BUDGET HIT



Angola&#8217;s government sought to portray its prompt payment of the $200 million cash demand by JPMorgan for additional security as reassurance for markets.



&#8220;We were ready to present the money. I think it&#8217;s a strong sign,&#8221; Finance Minister Vera Daves de Sousa told Reuters, adding she was looking at the structure of the deal to stave off another margin call.



JPMorgan declined to comment.



Despite the minister&#8217;s assessment, Sub-Saharan Africa&#8217;s second biggest crude exporter is already paying a heavy price for its debt.



Government spending on social services has fallen by 55% since 2015, said Tim Jones, policy director at London-based Debt Justice, a campaign group.



Half the government&#8217;s budget was going towards debt repayments, said Sérgio Calundungo, coordinator of Angolan think-tank OPSA.



This makes it harder to raise money for new infrastructure projects, such as the U.S.-backed Lobito transport corridor linking mineral-rich Democratic Republic of the Congo and Zambia to Angola&#8217;s Atlantic coast.



&#8220;The government&#8217;s debt shows signs of not being sustainable, as budget deficit levels have been high, while real GDP growth has been anaemic and the interest rates faced by the government have been high,&#8221; said Manuel Neto Costa, who served briefly as the economy minister in 2019/20.



Angola said the slide in oil prices has increased the likelihood of a new lending deal with the IMF whose staff are in the country this week. The IMF declined to provide details on potential outcomes.



Analysts are concerned about its ability to manage its debt even if an IMF programme materialises and oil prices recover.



&#8220;Poor fiscal fundamentals mean that sovereign default fears are likely to stay elevated,&#8221; David Omojomolo, Africa economist at investment consultancy Capital Economics, said in a note to clients.



(Reporting by Duncan Miriri in Nairobi and Miguel Gomes in Luanda, Additional reporting by Karin Strohecker in London; Editing by Emelia Sithole-Matarise)

tag_reuters.com,2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY

JPMorgan’s $200 million Angola margin call reveals Africa’s new debt pains

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="413" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/ONPJKGIW3JINJER2FFO3ATOOOM.jpg" alt="" class="wp-image-618674" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/ONPJKGIW3JINJER2FFO3ATOOOM.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/ONPJKGIW3JINJER2FFO3ATOOOM-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/ONPJKGIW3JINJER2FFO3ATOOOM-139x90.jpg 139w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">An installation depicting barrel of oil with the logo of Organization of the Petroleum Exporting Countries (OPEC) is seen during the COP29 United Nations climate change conference in Baku, Azerbaijan November 19, 2024. REUTERS/Maxim Shemetov/File Photo</figcaption></figure>



LONDON, May 8 (Reuters) &#8211; OPEC oil output edged lower in April despite a scheduled output hike taking effect, a Reuters survey found, led by a cut in Venezuelan supply on renewed U.S. attempts to curb the flows and smaller drops in Iraq and Libya.



The Organization of the Petroleum Exporting Countries pumped 26.60 million barrels per day last month, down 30,000 bpd from March&#8217;s total, the survey showed on Thursday, with cuts by some producers offsetting higher Iranian supply.



The reduction comes despite OPEC+, which comprises OPEC and its allies including Russia, beginning in April to unwind its most recent layer of output cuts. The group plans to accelerate the hikes in May and June, citing supportive market fundamentals such as low inventories.



The full extent of the rises will depend partly on the impact of attempts by U.S. President Donald Trump to clamp down on supply from Iran and Venezuela.



The biggest drop among OPEC members in April was from Venezuela, where exports declined as cargo cancellations to U.S. oil company Chevron&nbsp;CVX.N&nbsp;forced ships to return.



Iraq, which is under pressure to boost compliance with OPEC+ output quotas, also curbed output, the survey found.



There was little change in output from top producer Saudi Arabia, and in Gulf members the United Arab Emirates and Kuwait, despite higher OPEC+ quotas for April.



While the survey and March data provided by OPEC&#8217;s secondary sources show the UAE and Iraq are pumping close to the quotas, other estimates, such as those of the International Energy Agency, suggest they are pumping significantly more.



Among countries pumping more, Iran boosted exports in April, the survey found, and provided OPEC&#8217;s largest output hike with the latest U.S. measures having little impact on output.



The Reuters survey aims to track supply to the market and is based on flows data from financial group LSEG, information from other companies that track flows such as Kpler, and information provided by sources at oil companies, OPEC and consultants.



(Additional reporting by Ahmad Ghaddar; Editing by Kirsten Donovan)

ONPJKGIW3JINJER2FFO3ATOOOM

OPEC April oil output edges lower despite plans for hike, survey finds

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1.png" alt="" class="wp-image-618547" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1.png 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1-300x175.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1-154x90.png 154w" 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>



NAIROBI, May 8 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



&#8211; &#8211; &#8211; &#8211; &#8211;



EVENTS



An Abidjan court is set to hear a case that could strip opposition leader Tidjane Thiam of his role as president of the PDCI party.



Uganda&#8217;s central bank is due to announce its latest lending rate decision.



Mauritius statistics office to reveal latest inflation data.



Tanzania statistics office to reveal latest inflation data.



Ethiopia statistics office to reveal latest inflation data.



GLOBAL MARKETS



Shares in Asia firmed on Thursday after U.S. President Donald Trump flagged a first trade deal in his global tariff war, while the dollar tried to hold overnight gains as markets pushed out the chance of near-term rate cuts.



WORLD OIL PRICES



Oil prices steadied on Thursday after falling more than $1 in the previous session as uncertainty over the outcome of trade talks between the U.S. and China, the world&#8217;s two largest oil consumers, weighed on investor sentiment.



SOUTH AFRICA MARKETS



The South African rand slipped on Wednesday as investors took profits after a strong run against the dollar.



KENYA MARKETS



The Kenyan shilling &lt;KES=&gt; was flat against the dollar on Wednesday, London Stock Exchange Group (LSEG) data showed.



SUDAN SECURITY



Sudan&#8217;s army said its anti-aircraft systems intercepted drones on Wednesday targeting a naval base in the wartime capital Port Sudan.



GUINEA MINING



Guinea has initiated a process to revoke Emirates Global Aluminium&#8217;s mining licence in the West African nation, two people with knowledge of the matter told Reuters on Wednesday.



KENYA BUDGET



Kenya&#8217;s government will not impose new taxes or increase existing ones in this year&#8217;s budget proposals, the finance minister said, after deadly protests broke out last year against the government&#8217;s measures to raise revenue.



MALI POLITICS



Mali has suspended political activities across the country ahead of a planned protest against the military junta that has ruled since coups in 2020 and 2021, authorities said on Wednesday.



KENYA ANTS



A Kenyan court on Wednesday fined four men $7,700 each for trying to traffic thousands of ants valuable to the country&#8217;s ecosystem, in cases experts say signal a shift in biopiracy from trophies like elephant ivory to lesser-known species.

istockphoto-1030878162-612×612-1

African Markets – Factors to watch on May 8

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1.png" alt="" class="wp-image-615497" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1.png 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1-300x175.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1-154x90.png 154w" 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>



May 7 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



Mauritius central bank to release its monetary policy decision.



Seychelles statistics office expected to release April inflation data.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



U.S. stock futures and Chinese markets rose on Wednesday, as investors cheered news of a meeting between top U.S. and Chinese trade officials as a chance to tone down the tariffs, while China cut interest rates and vowed to support stock markets.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices rose on Wednesday, holding slightly above recent four-year lows, as investors focused on U.S.-China trade talks and signs of lower U.S. production.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



The South African rand held steady for much of Tuesday&#8217;s trading session after the release of a purchasing managers&#8217; index (PMI) survey that showed the country&#8217;s private sector showed signs of stabilisation in April.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



The Kenyan shilling was steady on Tuesday, supported by remittances and muted foreign-currency demand, traders said.



<h2 class="wp-block-heading" id="h-sudan-politics">SUDAN POLITICS</h2>



Explosions were heard in the Sudanese city of Port Sudan early on Wednesday, a Reuters witness reported, adding that the Sudanese army launched anti-aircraft missiles.



<h2 class="wp-block-heading" id="h-nigeria-china-road">NIGERIA CHINA ROAD</h2>



Nigeria has approved a $652-million China Exim Bank funding package for construction of a road to move goods from a sea port and petroleum refinery on the edge of its main city Lagos to its southern states, the public works minister said.



<h2 class="wp-block-heading" id="h-congo-security">CONGO SECURITY</h2>



The Democratic Republic of Congo and Rwandan-backed M23 rebels have restarted peace talks in Qatar, sources said on Tuesday, part of a diplomatic effort to end fighting in Congo&#8217;s war-ravaged east.



<h2 class="wp-block-heading" id="h-kenya-economy">KENYA ECONOMY</h2>



Kenya&#8217;s economy grew 5.1% year-on-year in the fourth quarter of 2024, compared to 6.1% in the same quarter of the previous year, the country&#8217;s statistics office said on Tuesday.



<h2 class="wp-block-heading" id="h-uganda-politics">UGANDA POLITICS</h2>



A Ugandan opposition activist, who President Yoweri Museveni&#8217;s son said he had been holding captive in his basement, appears to have been tortured, the East African nation&#8217;s justice minister said.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on May 7

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg" alt="" class="wp-image-568119" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, May 7 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was little changed in early trade on Wednesday, as global investors focused on an interest rate decision by the U.S. Federal Reserve later in the day.



At 0650 GMT, the rand traded at 18.22 against the dollar compared with Tuesday&#8217;s closing level of 18.19.



The Fed is widely expected to keep rates steady, amid concerns over an economic slowdown due to U.S. President Donald Trump&#8217;s tariffs.



News that U.S. and Chinese officials are due to hold talks eased concerns about a trade war that have shaken investor confidence in the dollar and U.S. markets.



No major South African economic data releases are expected on Wednesday.



President Cyril Ramaphosa will launch the second phase of an economic reform drive aimed at lifting the country&#8217;s potential growth rate.



Thursday&#8217;s data releases include local manufacturing and foreign reserves data.



South Africa&#8217;s benchmark 2030 government bond was flat, the yield at 8.92%.



(Reporting by Sfundo Parakozov; Editing by Alexander Winning)

rand2 (1)

South African rand flat with global focus on US rate decision

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3000" height="2000" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/UAEGGMUWGNOR5C6IQ37UZWX4UM.avif" alt="" class="wp-image-617800"/><figcaption class="wp-element-caption">A 3D-printed miniature model of U.S. President Donald Trump with the United Nations logo in the background is seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration/File photo</figcaption></figure>



BRUSSELS/LONDON, May 5 (Reuters)&nbsp;&#8211;&nbsp;The United States is seeking to weaken a global deal aimed at helping developing countries struggling with the impacts of climate change and other issues, an internal United Nations document seen by Reuters showed.



The Trump administration opposes draft reforms of the world&#8217;s financial system intended to help developing countries, including around taxation, credit ratings and fossil fuel subsidies. It also wants mentions of &#8220;climate,&#8221; &#8220;gender equality&#8221; and &#8220;sustainability&#8221; stripped out.



The previously unreported document sheds light on how the Trump administration is seeking to imprint an &#8220;America First&#8221; agenda, including opposition to efforts to slow climate change and promote diversity, on the institutions at the heart of fixing global systemic crises.



The once-a-decade, 4th International Conference on Financing for Development (FFD4) in Seville, Spain, in June aims to influence the strategic direction of the world&#8217;s development finance institutions. Countries agreed at FFD3, for example, to broaden tax cooperation efforts so that developing countries could help set the rules and as of last May more than 140 countries were involved.



&#8220;This conference is about bringing the world&#8217;s leaders together and setting the underlying rules and priorities for financing development goals over the next decade,&#8221; Tom Mitchell, executive director of the International Institute for Environment and Development, told Reuters.



Compiled by the permanent representatives to the U.N. of Mexico, Nepal, Norway, and Zambia, with help from the U.N. secretariat, the April 11 negotiating draft is annotated with the positions of the 193 nations involved in the discussions.



At U.N. negotiations over the FFD4 document in March, the U.S. mission said the draft at that time was too long and prescriptive and denounced &#8220;the ever-widening definition of sustainable development.&#8221;



&#8220;The international financial institutions have independent mandates and authorities, and we do not support attempts in the U.N. system to dictate their priorities or activities,&#8221; the U.S. statement from acting U.N. Economic and Social Council representative Jonathan Shrier said.



The U.N. does not hold direct authority over the multilateral development finance institutions.



With ongoing changes at the World Bank and International Monetary Fund in the fight against climate change already facing pushback from U.S. Treasury Secretary Scott Bessent, the document showed it was seeking to water down the U.N.&#8217;s reform prescriptions.



Among specific points in the text that refer to the systemic reform, the document shows the U.S. wants to remove a reference to a &#8220;package of reforms&#8221; for sustainable development. It wants to replace a line promising to &#8220;commit to reform the international financial architecture&#8221; with a pledge to &#8220;recognize the need to enhance its resilience and effectiveness in responding to present and future challenges and crises.&#8221;



Such changes in language signal the degree of shared commitment that can then be used as support for action or inaction in future talks.



U.N. Secretary-General António Guterres has acknowledged the need to overcome multiple challenges ahead of the conference, but urged &#8220;all countries to be at the table in Sevilla focused on solutions,&#8221; spokesperson Florencia Soto Niño said in an email to Reuters.



The&nbsp;Treasury Department and State&nbsp;Department&nbsp;both declined&nbsp;to comment. The White House did not respond to a request for comment.



While the U.S.&#8217; position on development has become tougher under Trump, the negotiating document shows it remains supportive of efforts that include developing countries working more closely with the private sector, and fostering innovation and financial literacy.



<h2 class="wp-block-heading" id="h-climate-change">CLIMATE CHANGE</h2>



A key goal of the global reforms is to better help poorer nations cope with weather disasters, which are worsening due to climate change, and to boost economic development using low-carbon energy rather than traditional fossil fuels.



President Donald Trump has quit the UN Paris climate agreement, slashed U.S. foreign development aid by more than 80% as part of a government overhaul led by billionaire Elon Musk and embarked on a trade war that is hurting many poorer nations.



Among areas of the FFD4 document that the U.S. objects to is a call for countries to explore &#8220;global solidarity levies&#8221; that could include taxes on highly polluting activities or on the super-rich to finance sustainable development.



If included, the levies could be taken up in U.N. negotiations on taxes this year and would bolster a task force led by France, Kenya and Barbados that aims to develop such taxes among smaller groups of countries.



Other countries to object include Russia, Saudi Arabia and China.



The U.S. is also seeking to delete a paragraph calling for companies to pay tax to the countries where economic activity occurs; a paragraph on helping developing countries bolster tax transparency; and another on phasing out inefficient fossil fuel subsidies, the document shows.



Many of the world&#8217;s poorest countries struggle with high debt and the costs of rebuilding after disastrous storms, but the FFD4 document shows the U.S. wants to strike a paragraph on reforming the credit-rating system.



That includes a push for raters to take a more forgiving approach to poorer nations that voluntarily restructure their debt to invest in green projects, it showed.



The U.S. also opposes a commitment to ensure countries receive &#8220;adequate and uninterrupted funding on appropriate terms of social protection and other essential social spending during shocks and crises,&#8221; the document shows.



While the U.S. has considerable influence as the biggest shareholder in both the World Bank, which provides loans and grants to developing countries, and the IMF, and is currently reviewing its role in both, the draft deal is likely to change further as countries continue negotiations in May, before reaching consensus on a final document in mid-June.



The U.S. position puts pressure on other countries to accept a weaker deal, since the talks aim to adopt a deal by consensus.



(Reporting by Kate Abnett and Simon Jessop in LondonAdditional reporting by David Lawder and Daphne Psaledakis in Washington Editing by Dawn Kopecki, Rod Nickel and Stephen Coates)

UAEGGMUWGNOR5C6IQ37UZWX4UM

US seeks to weaken global development finance efforts, UN document shows

<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>



May 6 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.



EVENTS:



Kenya statistics office releases 2025 economic survey, giving details of the 2024 performance and possibly a forecast for 2025.



Release of Kenya&#8217;s Stanbic Bank PMI for April.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Global stocks held tight ranges on Tuesday and the dollar clawed back some of its recent losses against Asian counterparts as investors revived concerns about U.S. tariffs and their impact on economic growth.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices rebounded over 1% on Tuesday with technical rebound and dip buying after a drop in prior session by OPEC+ decision to accelerate increases in output, although concerns about the market surplus outlook persisted.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



The South African rand strengthened on Monday to its highest levels in five weeks, after state utility Eskom said it was optimistic about the power outlook over the southern hemisphere winter, aiming for no electricity cuts in the next four months.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



The Kenyan shilling strengthened a little against the dollar on Monday, London Stock Exchange Group (LSEG) data showed.



<h2 class="wp-block-heading" id="h-sudan-politics">SUDAN POLITICS</h2>



Multiple explosions and fires were seen and heard in Sudan&#8217;s capital Port Sudan early on Tuesday, a witness said, though the exact locations and causes were unclear, as a civil war rocks the previously quiet city for the third day.



<h2 class="wp-block-heading" id="h-sudan-justice">SUDAN JUSTICE</h2>



The International Court of Justice (ICJ) on Monday dismissed Sudan&#8217;s case accusing the United Arab Emirates of fueling genocide in Darfur by supplying weapons to paramilitary forces, saying it lacked jurisdiction.



<h2 class="wp-block-heading" id="h-congo-security">CONGO SECURITY</h2>



Congo and Rwanda have submitted a draft peace proposal as part of a process meant to end fighting in eastern Congo and attract billions of dollars of Western investment, U.S. President Donald Trump&#8217;s senior adviser for Africa said on Monday.



<h2 class="wp-block-heading" id="h-kenya-politics">KENYA POLITICS</h2>



Kenya&#8217;s President William Ruto fended off a shoe thrown at him during a speech about the cost of living which has been a source of public anger, social media videos showed, while a government official said it was accidentally lobbed at the president.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on May 6

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



NAIROBI, May 5 (Reuters)&nbsp;&#8211;&nbsp;A team of officials from the International Monetary Fund will visit Angola this week, the IMF said, as the country edges closer to a new loan deal with the lender due to pressure following the slide in crude oil prices.



The southern African nation, which is Sub-Saharan Africa&#8217;s second-biggest crude oil exporter, had to pay $200 million last month after JPMorgan demanded more security for its Total Return Swap, a loan backed by Angola&#8217;s dollar bonds.



The IMF did not immediately provide more details on the mission to Angola and the expected outcomes.



Finance Minister Vera Daves de Sousa told Reuters that the drop in oil prices had made a new loan deal with the IMF more likely, adding that the government was studying the potential full impact on its finances.



(Reporting by Duncan Miriri; Editing by Mark Potter

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

International Monetary Fund team to visit Angola this week

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU.jpg" alt="" class="wp-image-412065" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU-768x487.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">A 3D printed oil pump jack is seen in front of displayed stock graph and Opec logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



LONDON/DUBAI, May 3 (Reuters)&nbsp;&#8211;&nbsp;OPEC+ has agreed to accelerate oil production hikes for a second consecutive month, raising output in June by 411,000 barrels per day, the group said on Saturday, despite falling prices and expectations of weaker demand.



Following an online meeting lasting just over an hour, the producer group announced the supply increase, saying the fundamentals of the oil market were healthy and inventories were low.



Oil prices fell to a four-year low in April below $60 per barrel after OPEC+ announced a bigger-than-expected production boost for May, and as U.S. President Donald Trump&#8217;s tariffs raised concerns of global economic weakness.



OPEC+ sources have said Saudi Arabia is pushing OPEC+ to accelerate the unwinding of earlier output cuts to punish fellow members Iraq and Kazakhstan for poor compliance with their production quotas.



The hikes also follow calls from Trump on OPEC+ to raise output. Trump will visit Saudi Arabia later in May.



In December, eight OPEC+ countries that have been implementing the group&#8217;s most recent output cut of 2.2 million bpd agreed to gradually phase it out in monthly increases of about 138,000 bpd from April 2025.



The June increase from the eight will take the total combined hike for April, May and June to 960,000 bpd, representing a 44% unwinding of the 2.2 million bpd cut, according to Reuters calculations.



Brent crude futures&nbsp;LCOc1&nbsp;lost more than 1% on Friday to $61.29 a barrel as traders braced for more oil from OPEC+.



Oil prices will fall on Monday due to the OPEC+ news amid trade tensions and concerns about economic growth, said UBS&#8217;s analyst Giovanni Staunovo.



&#8220;We continue to call this a &#8216;managed&#8217; unwind of cuts and not a fight for market share”, he said.



After his participation, Kuwait&#8217;s oil minister said the OPEC+ meeting on Saturday would significantly affect production policy formulation in the coming period.



Reuters reported this week that officials from Saudi Arabia, the de facto leader of OPEC+, have briefed allies and industry officials that they are unwilling to prop up oil markets with further supply cuts.



&#8220;Compliance again appears to be the key focus, with Kazakhstan and Iraq continuing to miss their compensation targets, alongside Russia to a lesser extent,&#8221; said Helima Croft of RBC Capital Markets.



Kazakhstan defied OPEC+ this month when its energy minister said he will prioritise national interests over those of the OPEC+ group when deciding on oil production levels. Kazakhstan&#8217;s April oil output exceeded its OPEC+ quota despite a 3% fall.



OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, is still cutting output by almost 5 million bpd and many of the cuts are due to remain in place until the end of 2026. The group plans to hold a full ministerial meeting on May 28.



(Reporting by Alex Lawler, Maha El Dahan and Ahmad Ghaddar; Writing by Alex Lawler and Dmitry Zhdannikov; Editing by Barbara Lewis and Frances Kerry)

JFN5R5LQLJOE7L4Y2UY425AGMU

OPEC+ agrees another accelerated oil output hike for June

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1.png" alt="" class="wp-image-616259" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1.png 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-300x175.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-154x90.png 154w" 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>



NAIROBI, May 2 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.



&#8211; &#8211; &#8211; &#8211; &#8211;



GLOBAL MARKETS



Asian stock markets and U.S. futures rose on Friday as signs of possible trade talks between the U.S. and China lifted risk sentiment after lacklustre earnings from tech bellwethers Apple and Amazon fuelled worries about the impact of tariffs.



WORLD OIL PRICES



Oil prices climbed on Friday after China said it was open for talks with the United States on tariffs, raising hopes of a de-escalation in a bitter trade war between the world&#8217;s two largest economies.



DEMOCRATIC REPUBLIC OF CONGO MINERALS



The U.S. is pushing Congo and Rwanda to sign a peace accord at the White House in about two months, accompanied by bilateral mineral deals that would bring billions of dollars of Western investment to the region, President Donald Trump&#8217;s senior advisor for Africa told Reuters on Thursday.



NIGERIA TARIFFS



Nigerian billionaire Aliko Dangote said on Thursday he was &#8220;comfortable&#8221; with the impact President Donald Trump&#8217;s tariffs would have on his urea exports to the U.S. because major competitor Algeria had been slapped with a higher levy.

African Markets – Factors to watch on May 2

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1.png" alt="" class="wp-image-615497" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1.png 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1-300x175.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1-154x90.png 154w" 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>



EVENTS:



Uganda releases April inflation statistics



GLOBAL MARKETS



Shares struggled for direction on Wednesday and oil prices slid as relief over a potential easing of global trade tensions was offset by a worsening economic outlook and dour signals from corporates swept up by Donald Trump&#8217;s tariffs.



WORLD OIL PRICES



Oil prices extended declines on Wednesday and were set for their largest monthly drop in more than three years as the global trade war eroded the outlook for fuel demand, while fears of mounting supply also weighed.



SOUTH AFRICA MARKETS



The South African rand weakened on Tuesday as investors waited for the finance minister to say when he will present another revised national budget.



KENYA MARKETS



The Kenyan Shilling was steady against the dollar in early trade on Tuesday with traders noting minimal activity on both the demand and supply sides.



KENYA INFLATION



Kenya&#8217;s inflation rate in April rose to 4.1% year-on-year, up from 3.6% a month before, the statistics office said on Wednesday.



KENYA DEFICIT



Kenya will cap its fiscal deficit at 4.5% of GDP in 2025/26, down from 5.1% the previous year, and revise its initial budget of 4.3 trillion Kenyan shillings ($33 billion) substantially, its cabinet said on Tuesday.



SOMALIA TAIWAN DIPLOMACY



Somalia has banned entry to Taiwan passport holders citing compliance with a United Nations resolution, the island&#8217;s foreign ministry said, blaming Chinese pressure on Mogadishu at a time Taiwan is boosting ties with Somaliland.



MALI POLITICS



A national conference of political actors in Mali has recommended naming junta leader Assimi Goita, who seized power following coups in 2020 and 2021, as president with a five-year mandate, it said in a statement on Tuesday.



CONGO SECURITY



Rwanda escorted the troops of a Southern African force through Rwandan territory to Tanzania on Tuesday as they pulled out from eastern Democratic Republic of Congo, Rwanda&#8217;s foreign minister and army spokesperson said.

African Markets – Factors to watch on April 30

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg" alt="" class="wp-image-568119" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, April 25 (Reuters) &#8211; South Africa&#8217;s rand was steady on Friday as investors awaited clarity on a disputed national budget which has roiled domestic markets.



At 1236 GMT, the rand traded at 18.8125 against the dollar, near its Wednesday closing level of 18.81.



South Africa&#8217;s biggest political parties have clashed over a proposal to raise the value-added tax rate by 1 percentage point over the next two years.



The VAT increase was withdrawn on Thursday and domestic-focused investors are awaiting details on the next steps in the budget process.



&#8220;The scrapping of the VAT increase and the subsequent questions on where Treasury is going to find the shortfall in the budget has put the rand under some renewed pressure,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



Like other risk-sensitive currencies, the rand often takes its cue from global factors and domestic drivers.



In addition to the budget dispute, the rand has experienced bouts of volatility linked to uncertainty over U.S. President Donald Trump&#8217;s tariff plans.



South Africa&#8217;s President Cyril Ramaphosa said on Thursday he had spoken to Trump and discussed fostering good relations between the two countries, which have soured since Trump took office in January.



On the stock market, both the Top-40 index and the broader all-share index were last trading about 0.7% higher.



South Africa&#8217;s benchmark 2030 government bond was also stronger, with the yield down 4 basis points at 8.83%.



(Reporting by Tannur Anders, Sfundo Parakozov and Bhargav Acharya; Editing by Jacqueline Wong and Susan Fenton)

South African rand stable as investors await budget clarity

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/VZZUZJG5MVPPXDITWKEDW2SOB4.avif" alt="" class="wp-image-613502"/><figcaption class="wp-element-caption">Chinese Finance Minister Lan Foan attends a press conference about a bill on raising ceilings on local government debt, at the Great Hall of the People in Beijing, China November 8, 2024. REUTERS/Josh Arslan</figcaption></figure>



BEIJING, April 25 (Reuters)&nbsp;&#8211;&nbsp;China warned a G20 meeting that world economic growth was &#8220;insufficient&#8221; as tariff and trade wars exacerbated economic and financial instability and sapped growth momentum, its finance ministry and central bank said.



Speaking at the group&#8217;s meeting in Washington, Finance Minister Lan Foan called on all parties to strengthen multilateral cooperation, saying that China supported dialogue and consultation &#8220;on equal footing&#8221; to settle trade and tariff disputes.



Meanwhile, People&#8217;s Bank of China Governor Pan Gongsheng said that economic fragmentation and trade tensions had disrupted supply chains, weakening the momentum of global economic growth, the central bank said in a separate readout on Friday.



Pan also told the meeting, which took place on Wednesday and Thursday, that the world&#8217;s major economies should strengthen their participation in international macroeconomic and financial policy coordination.



Other participants at the finance ministers and central bank governors meeting also flagged the significant increase in risks to global growth from trade tensions, tighter financing conditions and long-term structural challenges, according to the PBOC statement.



They also called for strengthening dialogue and policy coordination, the statement said without referring to the United States.



The Group of 20 major economies were meeting in the wake of U.S. President Donald Trump&#8217;s announcement of hefty tariffs on imports that have triggered turmoil in financial markets and prompted the International Monetary Fund to cut its growth forecasts for most countries around the world.



While Trump later put some of the tariffs on hold, he raised China levies to 145%, and maintained a universal import tariff of 10% as well as 25% duties on cars, steel and aluminium.



The U.S. indicated talks were taking place with China on tariffs but Beijing on Thursday denied that, demanding the U.S. drop the levies.



Lan also urged for better implementation of the debt treatment mechanism under the G20&#8217;s Common Framework, and said all parties should pool more resources for Africa&#8217;s development and strengthen Africa&#8217;s capacity-building.



The finance ministry said Lan held bilateral meetings and exchanges with representatives from countries and organisations including South Africa, the European Commission, Pakistan, Germany, South Korea, Indonesia, Britain, Japan and the World Bank.



The meetings were mainly to discuss the macroeconomic situation, key issues of the G20 fiscal channels and bilateral cooperation, the readout said.



(Reporting by Liz Lee and Beijing newsroom; Editing by Himani Sarkar, Shri Navaratnam and Kate Mayberry)

VZZUZJG5MVPPXDITWKEDW2SOB4

China warns G20 global economic growth ‘insufficient’, trade tensions weaken momentum

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-820x547.jpg" alt="" class="wp-image-523855" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Wamkele Mene, secretary-general of African Continental Free Trade Area (AfCFTA), during a Bloomberg Television interview at the Bloomberg New Economy Gateway Africa event in Marrakesh, Morocco, on Tuesday, June 13, 2023. The event brings together leaders in the private and public sectors to discuss the world&#8217;s most pressing issues and evaluate potential solutions in the context of local and regional priorities. Photographer: Hollie Adams/Bloomberg via Getty Images</figcaption></figure>



African Continental Free Trade Agreement Secretary General Wamkele Mene says African countries must unify trade policies in order to deal with the disruption caused by U.S. President Donald Trump’s global tariffs.



“The good news out of this crisis is that our heads of states understand that there is not a single market in Africa that will survive on its own,’’ Mene told CNBC Africa in an interview. ’’We are not going to be able to negotiate bilaterally successfully. I think that&#8217;s clear. We will have to leverage on our combined efforts, our combined market size, market share, and combined population size.’’



President Trump has slapped tariffs on almost every country in the world, complaining they have been taking advantage of the world’s largest economy’s openness for trade. Economists have however questioned the methodology used to arrive at the tariffs which saw the small mountain kingdom of Lesotho slapped with the highest tariff rate at 50 percent under Trump’s ‘reciprocal’ tariffs.



While most countries have sought to negotiate, China, the world’s second largest economy has retaliated with 125% tariffs on the U.S. after it jacked up the initial tariffs to 145%.



The tariffs on Africa have called into question the future of the African Growth and Opportunity Act (AGOA) under which a number of African countries enjoyed duty free access to U.S. markets. The pact is due for renewal this year.



Mene said AGOA was practically dead anyway, given the sweeping nature of President Trump’s tariffs.



“I think if we look at the measures that the U.S. introduced, both the tariff and non-tariff measures, AGOA is no longer alive,’’ Mene said. “What we should always remember, though, is that it was a unilateral preference.’’



He said the disruption caused by the tariffs was going to hurt countries like South Africa and Nigeria, the continent’s largest economies as well as smaller ones like Lesotho, Madagascar, Angola and Kenya. But he suggests the continent should use the opportunity to diversify its markets and strengthen intra-African trade, which remains the lowest among global regions at under 20 percent.



He cited the example of Ethiopia which doubled its exports after being kicked out of AGOA by partnering with China.



‘’The benevolence of others is not going to get us anywhere. We&#8217;ve got to very, very quickly redouble our efforts to build this domestic market because we can&#8217;t rely on others.’’



To accelerate the implementation of the AfCFTA, Mene said African Ministers of Trade are looking at ways of simplifying the ‘’complicated method’’ used to reduce tariffs among member countries which was negotiated in 2017. ‘’It’s a very different world to today. So, how do we make sure that we have a liberalization modality that takes account for where we are, the reality of today?,’’ he said lamenting the $50 billion African countries expend annually to import grain when it has grain exporters.

Key Speakers at New Economy Gateway Africa Event

AfCFTA Secretary General Calls for Unified African Trade Policy as Trump Tariffs Hit

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



The International Monetary Fund has cut its forecast for African economic growth by 0.3 percentage points, citing multiple shocks hitting the continent including U.S. President Donald Trump’s sweeping tariffs across the world.



While lauding resilience across the continent, the Washington-based lender now expects its 54 economies to expand by 3.9 percent this year, down from its October forecast of 4.2 percent, it said in a joint statement by its Managing Director Kristalina Georgieva and Hervé Ndoba, the Central African Republic’s Minister of Finance and Budget who is Chair of the African Caucus.



‘’The strong policy actions that have been taken to bring down inflation, stabilize public debt, and reduce external imbalances risk being undone in the face of further shocks,’’ the statement said. &#8220;Risks to the outlook are high amid elevated uncertainty and there are significant differences across countries, with fragile and conflict affected states facing particularly acute challenges.’’



President Trump’s universal tariffs threaten recovering growth across Africa and access to the world’s largest economy through the African Growth and Opportunity Act which is due for renewal this year. Lesotho, derided by Trump as a country nobody has ever heard of, ended with the world’s largest rate at 50 percent.



The continent has struggled to respond, with some countries including Zimbabwe and South Africa saying they would not retaliate and seeking talks, while Kenya has said it is confident it will secure a deal on its own.



The joint statement said African countries will need to intensify domestic reform efforts in the face of the disruption, in order to promote fiscal sustainability while strengthening economic integration through the African Continental Free Trade Agreement (AfCFTA). Central banks should cut rates where appropriate to support economic growth, it added.



‘’At the same time, ambitious structural reforms will unlock growth and drive job creation,’’ it said. “The IMF will remain agile in adapting our toolkit, policy advice, and capacity development to respond to emerging challenges, including from more frequent shocks and transformational shifts from digitalization and AI.’’



The IMF said it remained supportive of initiatives like the G20 Common Framework and the Global Sovereign Debt Roundtable on debt reduction to help countries battling high debt. World Bank figures show average African government debt to gross domestic product ratios remain high at around 60 percent.



The African Caucus, which is made up of African finance ministers and central bank governors, meets with fund management at its annual meetings while the African Consultative Group comprises the Fund Governors of a subset of 12 African countries who are members of the African Caucus and only meets at the Spring Meetings.

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

IMF Cuts 2025 African growth forecast as Trump tariffs disrupt trade

<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>



April 23 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



Kenya&#8217;s President William Ruto makes a state visit to Beijing where he is set to meet his Chinese counterpart Xi Jinping.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Stock markets were enjoying a much-needed relief rally in Asia on Wednesday after President Donald Trump said he had no plans to fire the head of the Federal Reserve, and hinted at lower tariffs for China.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices rose on Wednesday, extending the prior day&#8217;s gains, as investors weighed a fresh round of U.S. sanctions on Iran, a drop in U.S. crude stocks and a softer tone from President Donald Trump toward the Federal Reserve.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



The South African rand jumped on Tuesday as gold prices rose after U.S. President Donald Trump criticised Federal Reserve Chair Jerome Powell, rattling markets and boosting demand for the safe-haven asset.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



Kenya&#8217;s shilling was broadly stable against the dollar on Tuesday with foreign exchange supply and demand evenly matched, traders said.



<h2 class="wp-block-heading" id="h-ethiopia-aid">ETHIOPIA AID</h2>



The World Food Programme suspended malnutrition treatment for 650,000 malnourished women and children in Ethiopia this week due to severe funding shortages, the U.N. agency said, with millions more at risk of losing access to aid.



<h2 class="wp-block-heading" id="h-ghana-politics">GHANA POLITICS</h2>



Ghana&#8217;s President John Dramani Mahama suspended Chief Justice Gertrude Torkornoo with immediate effect and initiated an investigation in response to three petitions filed against her, a statement said.



((Compiled by Nairobi Newsroom))

Economy

AFRICA-FX-Ghana’s cedi seen extending gains

JPMorgan’s $200 million Angola margin call reveals Africa’s new debt pains

OPEC April oil output edges lower despite plans for hike, survey finds

African Markets – Factors to watch on May 8

African Markets – Factors to watch on May 7

South African rand flat with global focus on US rate decision

US seeks to weaken global development finance efforts, UN document shows

African Markets – Factors to watch on May 6

International Monetary Fund team to visit Angola this week

OPEC+ agrees another accelerated oil output hike for June

African Markets – Factors to watch on May 2

African Markets – Factors to watch on April 30

South African rand stable as investors await budget clarity

China warns G20 global economic growth ‘insufficient’, trade tensions weaken momentum

AfCFTA Secretary General Calls for Unified African Trade Policy as Trump Tariffs Hit

IMF Cuts 2025 African growth forecast as Trump tariffs disrupt trade

African Markets – Factors to watch on April 23

News Tips

Advertise With Us

Economy

AFRICA-FX-Ghana’s cedi seen extending gains

JPMorgan’s $200 million Angola margin call reveals Africa’s new debt pains

OPEC April oil output edges lower despite plans for hike, survey finds

African Markets – Factors to watch on May 8

African Markets – Factors to watch on May 7

South African rand flat with global focus on US rate decision

US seeks to weaken global development finance efforts, UN document shows

African Markets – Factors to watch on May 6

International Monetary Fund team to visit Angola this week

OPEC+ agrees another accelerated oil output hike for June

African Markets – Factors to watch on May 2

African Markets – Factors to watch on April 30

South African rand stable as investors await budget clarity

China warns G20 global economic growth ‘insufficient’, trade tensions weaken momentum

AfCFTA Secretary General Calls for Unified African Trade Policy as Trump Tariffs Hit

IMF Cuts 2025 African growth forecast as Trump tariffs disrupt trade

African Markets – Factors to watch on April 23

News Tips

Advertise With Us

Newsletters