<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-820x551.jpg" alt="" class="wp-image-493790" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-1536x1033.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Korean President Yoon Suk-yeol attends a press conference marking two years in office, at the Presidential Office in Seoul, South Korea, May 9, 2024. SONG KYUNG-SEOK/Pool via REUTERS</figcaption></figure>



SEOUL, June 4 (Reuters)&nbsp;&#8211;&nbsp;South Korean President Yoon Suk Yeol said on Tuesday the country will step up cooperation with African nations to secure a stable supply of critical minerals and speed up negotiations to promote economic partnerships and trade.



Hosting a first-ever summit with the leaders of 48 African countries, Yoon said South Korea will increase development aid for Africa to $10 billion over the next six years as it looks to tap the continent&#8217;s rich mineral resources and potential as a vast export market.



&#8220;We will seek sustainable ways to work together on issues directly related to future growth, such as stable supplies of key minerals and digital transformation,&#8221; Yoon said in his opening remarks.



He also pledged to offer $14 billion in export financing to promote trade and investment for South Korean companies in African countries.



South Korea is one of the world&#8217;s largest energy buyers and is home to leading semiconductor producers. It is also home to the world&#8217;s fifth-largest automaker Hyundai Motor Group, which is making a push for electrification.



Partnering with Africa, which has 30% of the world&#8217;s reserves of critical minerals including chrome, cobalt and manganese is crucial, Yoon&#8217;s office has said.



At least 30 heads of state are attending the summit, with delegations from 48 countries participating. Yoon and the chair of the African Union, Mauritania President Mohamed Ould Ghazouani, are due to issue a joint statement, Yoon&#8217;s office said.



Yoon proposed &#8220;shared growth&#8221; as a pillar of cooperation with the continent and stressed the need to establish a framework to promote trade and exchange, vowing to speed up talks for economic partnership agreements and trade and investment promotion frameworks.



By reaching out with offers to help with industrial infrastructure and digital transformation, South Korea is trying to tap into a vast and fast-growing market that is home to 1.4 billion people, the majority of whom are 25 or younger.



Park Jong-dae, a former South Korean ambassador to South Africa and Uganda, argued Western and Chinese models of development had failed African nations, and South Korea offered a valuable alternative path.



&#8220;The essence of Korean model of development cooperation is human development, and about management, rather than about provision of assistance per se,&#8221; he said.



&#8220;Korea has the experience and knowhow of development &#8230; while many African countries have immense possibilities for development based on yet to be explored, untapped resources and endowment, and dynamic young population,&#8221; he said.



On Wednesday, South Korean business leaders will host a business summit focused on investment, industrial development and food security.



Yoon will continue separate meetings with visiting leaders.



(Reporting by Jack Kim, Hyonhee Shin, Josh Smith and Hyunsu Yim; Editing by Jamie Freed)

South Korean President Yoon Suk-yeol attends a press conference marking two years in office, in Seoul

South Korea’s Yoon calls for greater cooperation with Africa on minerals, trade

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-820x524.jpg" alt="" class="wp-image-493524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-1536x982.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Korean President Yoon Suk Yeol at a recent meeting in the Blue House in Seoul, South Korea, 27 May 2024. JEON HEON-KYUN/Pool via REUTERS/File Photo</figcaption></figure>



SEOUL, June 3 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s rich mineral resources and its potential as a vast export market are at the top of South Korea&#8217;s agenda as it hosts a summit with the leaders of 48 nations this week with plans for aid on industrial infrastructure and digital transformation.



Africa is a &#8220;crucial partner&#8221; for South Korea to further its industrial advances and &#8220;cooperation with Africa is not a choice but a necessity&#8221;, President Yoon Suk Yeol&#8217;s deputy national security adviser Kim Tae-hyo said.



At least 30 heads of state are attending the summit on Tuesday, with delegations from 48 countries participating. Yoon and the chair of African Union, President Mohamed Ould Ghazouani of Mauritania, will issue a joint statement, Yoon&#8217;s office said.



On Wednesday, South Korean business leaders will host a business summit focused on investment, industrial development and food security.



&#8220;Africa&#8217;s strategic importance has never been greater,&#8221; Kim said.



South Korea is one of the world&#8217;s largest energy buyers and is home to leading semiconductor producers and the world&#8217;s fifth largest automaker making a push for electrification. Partnership with Africa with 30% of the world&#8217;s critical mineral including chrome, cobalt and manganese is crucial, Yoon&#8217;s office said.



Since Friday, Yoon has held meetings with the leaders of Sierra Leone, Tanzania and Ethiopia and is scheduled to meet separately the heads of other states including Zimbabwe, Togo, Rwanda and Mozambique on Monday.



Tanzania said it would borrow $2.5 billion over the next five years from South Korea through concessional loans, while Ethiopia signed a $1 billion financing deal over four years for infrastructure, science and technology, health and urban development.



By reaching out with offers to help with industrial infrastructure and digital transformation, South Korea is trying to tap into a vast and fast-growing market that is home to 1.4 billion people, the majority of whom are 25 or younger.



Agreements aimed at laying the groundwork for trade and investment are expected to be signed with several countries, which will help establish the administrative foundation for freer trade and advanced customs management, Kim said.



Aid on agricultural technology and plans for cooperation on climate change responses are also on the agenda.



(Reporting by Jack Kim; Additional reporting by Hyonhee Shin; Editing by Gerry Doyle)

FILE PHOTO: FILE PHOTO: South Korean President Yoon Suk Yeol

South Korea’s Yoon hosts Africa summit to tap minerals, vast export market

<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>



NAIROBI, June 3 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.



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



Nigeria&#8217;s main labour unions plan to start an indefinite strike from Monday after failing to agree a new minimum wage with the government.



The United States and Kenya are due to hold their sixth in-person negotiating round under the Strategic Trade and Investment Partnership (STIP) in Mombasa, Kenya.



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



Asian share markets rallied on Monday as investors looked forward to a rate cut in Europe, and quite possibly Canada, as the next step in global policy easing, though sticky inflation threatens to make the process a drawn out affair.



[MKTS/GLOB]



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



Oil prices were little changed on Monday, as investors weighed a move by producer group OPEC+ to extend deep output cuts well into 2025.



[O/R]



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



South Africa&#8217;s rand slipped on Friday as fears the governing African National Congress (ANC) could form a coalition with radical parties following this week&#8217;s election roiled markets.



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



Kenya&#8217;s shilling gained ground on Friday, helped by low demand from importers and companies selling dollars to pay salaries, traders said.



<h2 class="wp-block-heading" id="h-sudan-famine">SUDAN FAMINE</h2>



The people of Sudan are at &#8220;imminent risk of famine&#8221;, United Nations agencies said on Friday, more than a year into a war between the army and the paramilitary Rapid Support Forces (RSF).



<h2 class="wp-block-heading" id="h-central-african-republic-security">CENTRAL AFRICAN REPUBLIC SECURITY</h2>



Prosecutors in Central African Republic say they have detained a European employee of a U.S.-based non-governmental organisation on suspicion of being a threat to state security and seeking to incite revolt against security forces.



<h2 class="wp-block-heading" id="h-congo-rates">CONGO RATES</h2>



Democratic Republic of Congo&#8217;s central bank decided at a meeting of its monetary policy committee on Friday to keep its policy rate unchanged at 25%, the bank said in a statement.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on June 3

<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>



NAIROBI, May 31 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday. 



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



*Kenya and Uganda&#8217;s statistics offices are due to release their respective consumer inflation data for May. *Democratic Republic of Congo&#8217;s central bank holds its first monetary policy committee meeting for the year. 



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



Asian stocks rose on Friday and were poised for the fourth month of gains, while the dollar drifted lower, keeping the yen steady as investors await inflation readings from Europe and the U.S. that will likely dictate the path of interest rates globally. 



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



Oil prices fell early on Friday as investors responded to comments from U.S. Fed officials who said it was too soon to start considering rate cuts, and following a surprise build in U.S. gasoline stocks that weighed on the market. 



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



South Africa&#8217;s currency, stocks and bonds fell on Thursday amid political uncertainty after election projections showed the African National Congress (ANC) was set to lose its parliamentary majority for the first time in 30 years. 



<h2 class="wp-block-heading" id="h-africa-currencies">AFRICA CURRENCIES </h2>



Kenya&#8217;s shilling and Zambia&#8217;s kwacha are expected to gain ground against the dollar and Ghana&#8217;s cedi will weaken, while Nigeria&#8217;s naira and Uganda&#8217;s shilling are forecast to hold steady in the next week to Thursday, traders said. 



<h2 class="wp-block-heading" id="h-nigeria-world-bank-loan">NIGERIA WORLD BANK LOAN </h2>



Nigeria has secured a $500 million World Bank loan for its electricity sector to boost power distribution, after last month&#8217;s hike in tariffs for top consumers in Africa&#8217;s most populous nation. 



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



Kenya&#8217;s shilling strengthened on Thursday, lifted by dollar inflows from tea exporters, traders said. 



<h2 class="wp-block-heading" id="h-kenya-world-bank-loan">KENYA WORLD BANK LOAN </h2>



The World Bank on Thursday approved the first of three budget support packages for Kenya worth $1.2 billion, to help the East African country address short-term fiscal pressures and accelerate green policies. 



<h2 class="wp-block-heading" id="h-west-africa-politics">WEST AFRICA POLITICS </h2>



Senegalese President Bassirou Diomaye Faye, on his first official visit to Mali on Thursday, said he raised the question of remaining in regional bloc ECOWAS with his Malian counterpart, who was &#8220;not totally inflexible&#8221; on the matter. 



<h2 class="wp-block-heading" id="h-ivory-coast-cocoa">IVORY COAST COCOA </h2>



Ivory Coast&#8217;s cocoa regulator has told exporters that a discount for the grading of beans from the mid-crop will not be offered for deferred contracts, according to a letter from the Coffee and Cocoa Council (CCC) dated May 24. 



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on May 31

<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 30 (Reuters) &#8211; Kenya&#8217;s shilling and Zambia&#8217;s kwacha are expected to gain ground against the dollar and Ghana&#8217;s cedi will weaken, while Nigeria&#8217;s naira and Uganda&#8217;s shilling are forecast to hold steady in the next week to Thursday, traders said.



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



Kenya&#8217;s shilling is expected to gain ground, supported by dollar inflows from tea exporters and remittances, and low demand from importers waiting for better rates.



Commercial banks quoted the shilling at 130.50/131.50 per dollar, compared with last Thursday&#8217;s close of 131.50/132.50.



&#8220;I see importers staying away for now hoping for better rates. If they keep off and CBK (central bank) stays away, I see it taking down (the) 130 mark,&#8221; a trader at one commercial bank said.



The central bank says it only intervenes to smooth out volatility when the shilling is moving too fast in either direction, and has no preferred level.



<h2 class="wp-block-heading" id="h-nigeria">NIGERIA</h2>



Nigeria&#8217;s naira could trade around current levels next week, after the central bank intervened in the market, and its Open Market Operations (OMO) auctions also attracted foreign inflows that helped ease pressure from futures contracts that paid out this week.



LSEG data showed the naira trading at 1,421 to the dollar on the official market on Thursday, around the same range a week ago. The unit was quoted at 1,485 on the parallel market on Thursday.



&#8220;The exchange rate will remain volatile because the fundamentals such as crude oil receipts remain low,&#8221; one trader said. &#8220;But there is scope to appreciate because the central bank is keen for the naira not to fall below a certain threshold.&#8221;



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



Ghana&#8217;s cedi is expected to extend its decline against the dollar on persistent strong demand from local businesses.



LSEG data showed the cedi was bid at 14.69 per dollar, compared with last Thursday&#8217;s closing rate of 14.55.



&#8220;The local unit continued to face headwinds in recent sessions as FX illiquidity persists. Flows have been hard to come by, while demand for the greenback remains elevated — mainly from the manufacturing and commerce sectors,&#8221; said Sedem Dornoo, senior trader Absa Bank Ghana.



&#8220;Up ahead, it is likely the cedi will remain under pressure as FX demand remains firm.&#8221;



Chris Nettey, head of trading at Stanbic Bank Ghana, said the cedi continued to weaken despite the central bank&#8217;s assurances it would take steps to curb the decline and news the government had secured a draft memorandum of understanding on debt restructuring from bilateral creditors.



&#8220;We expect the narrative to continue with an eye on the actions of the central bank in the coming sessions,&#8221; he added.



The cedi is down by 19% so far this year against the dollar. The Bank of Ghana says this is due to high import demand, low export revenue and currency speculation.



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



The Ugandan shilling is seen trading in a stable range in the coming days, with most players staying on the sidelines as they await reading of the 2024/2025 (July-June) budget, traders said.



At 0955 GMT commercial banks quoted the shilling at 3,810/3,820,compared to last Thursday&#8217;s close of 3,820/3,830.



Uganda&#8217;s finance minister is expected to present the next financial year&#8217;s budget early June although the date has not yet been set.



&#8220;We&#8217;re unlikely to see a lot of activity before the budget,&#8221; said a trader at one commercial bank adding the shilling will mostly remain in a stable range around 3,800 against the dollar before then.



<h2 class="wp-block-heading" id="h-zambia">ZAMBIA</h2>



The kwacha may gain marginally against the dollar next week due to positive sentiment after bondholders accepted Zambia&#8217;s debt restructuring proposal.



On Thursday, the currency of Africa&#8217;s second-largest copper producer was trading at 27.10 per dollar from 26.20 a week ago.



&#8220;The short-term outlook for the local currency is modest gains owing to bondholder support for debt restructuring,&#8221; Access Bank said in a note. 



(Reporting by George Obulutsa, Christian Akorlie, Chris Mfula, Elisha Bala-Gbogbo; Editing by Bate Felix)

Kenyan shilling to firm, Ghana cedi expected to weaken

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IEOR3BGJSROL5KFMYTELQHZUDI-820x512.jpg" alt="" class="wp-image-491950" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IEOR3BGJSROL5KFMYTELQHZUDI-820x512.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IEOR3BGJSROL5KFMYTELQHZUDI-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IEOR3BGJSROL5KFMYTELQHZUDI-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IEOR3BGJSROL5KFMYTELQHZUDI-768x480.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IEOR3BGJSROL5KFMYTELQHZUDI-1536x959.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IEOR3BGJSROL5KFMYTELQHZUDI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: African Development Bank President Akinwumi Adesina addresses delegates during the Africa Climate Summit (ACS) 2023 at the Kenyatta International Convention Centre (KICC) in Nairobi, Kenya, September 5, 2023. REUTERS/Monicah Mwangi/file photo</figcaption></figure>



NAIROBI, May 29 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s economic growth is&nbsp;set&nbsp;to accelerate to 3.7% this year and 4.3%&nbsp;next&nbsp;from 3.1% in 2023, African Development Bank (AfDB) President Akinwumi Adesina said on Wednesday, expressing hope that the bank can boost infrastructure investment with IMF help.



&#8220;African economies are experiencing great resilience despite the challenges posed by climate change, geopolitical tensions, global inflation, rising debt, among others,&#8221; Adesina told the annual meeting of the bank.



In the past nine years the bank has&nbsp;invested over $50 billion in infrastructure projects on the continent, he said.



Adesina said two weeks ago that the International Monetary Fund had approved multilateral banks such as the AfDB lending against the Fund&#8217;s Special Drawing Rights (SDRs) monetary reserves.



SDRs are interest-bearing international reserve assets granted to IMF member countries in proportion to their shareholding.



&#8220;If the approved limit of $20 billion of the SDRs is channelled to multilateral development banks like us, we&nbsp;[the AfDB]&nbsp;can leverage this to deliver at least $80 billion of new financial support,&#8221; Adesina said.



The&nbsp;bank is helping to raise $3.2 billion for the East Africa standard gauge railway linking Tanzania, Democratic Republic of Congo and Burundi, he&nbsp;added.



It is also providing $500 million towards the development of the Lobito Corridor to connect Zambia, Angola and the Democratic Republic of Congo.



(Reporting by George Obulutsa; Editing by Bate Felix and Kevin Liffey)

Kenya to host first Africa Climate Summit in Nairobi

AfDB aims to boost infrastructure funding as African growth accelerates

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/IFC-World-Bank-edited.jpg" alt="" class="wp-image-428524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/IFC-World-Bank-edited.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/IFC-World-Bank-edited-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/IFC-World-Bank-edited-135x90.jpg 135w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">IFC World Bank Photo: via Flickr</figcaption></figure>



LONDON, May 28 (Reuters)&nbsp;&#8211;&nbsp;The World Bank&#8217;s private finance arm on Tuesday launched a programme to provide up to $4 billion to small businesses in emerging markets, with a focus on women-owned firms and those in the agriculture and climate sectors.



The International Finance Corporation said it would advance the funds to banks, non-bank financial institutions, microfinance institutions, and innovative digital lenders that loan to micro, small and medium-sized businesses.



The MSME Financing Platform would aim to attract a further $4 billion by using credit enhancements to attract private sector capital.



&#8220;Micro, small, and medium enterprises form the backbone of most developing economies, yet they face significant financial barriers that hinder their potential,&#8221; said IFC Managing Director Makhtar Diop in a statement.



MSMEs make up more than 90% of all firms and account, on average, for 60-70% of total employment and 50% of GDP worldwide, the IFC said, yet the SME Finance Forum puts the annual financing gap at around $5.7 trillion.



Access to finance has been hampered by tighter credit conditions, rising interest rates and a decline in risk appetite among mainstream lenders, the IFC said, something it hoped to reverse by offering to take the first loss on loans.



Up to $100 million of finance to help the platform de-risk the credit and foreign currency exposures will come from the International Development Association, it added. I



&#8220;Our new financing platform addresses these challenges head-on, empowering financial service providers to extend critical support to these businesses, particularly those that are women-led or environmentally focused.&#8221;



(Reporting by Simon Jessop; Editing by Sriraj Kalluvila)

IFC World Bank Photo: via Flickr

IFC launches $4 bln platform to support small firms in developing markets

<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>



JOHANNESBURG, May 28 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcements, equity and currency market moves may affect South African markets on Tuesday.



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



South Africa&#8217;s government to hold its weekly auction of long-term bonds.



<h2 class="wp-block-heading" id="h-companies">COMPANIES</h2>



South African discount retailer Pepkor Holdings&nbsp;PPHJ.J&nbsp;to release half-year results.



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



The South African rand was stronger on Monday, supported by a weaker dollar, ahead of a week headlined by the national election and featuring an interest rate decision.



On the stock market, both the blue-chip Top-40&nbsp;.JTOPI&nbsp;and the broader all-share&nbsp;.JALSH&nbsp;indexes were down almost 0.3%..JZAR/



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



Asian shares held a mixed tone on Tuesday after rallying the previous session, as rising bets of an imminent European rate cut helped risk appetite ahead of some key inflation data.MKTS/GLOB



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



U.S. stocks rebounded on Friday from sharp losses the day before on news of an improving consumer outlook on inflation, sending the Nasdaq to a fifth straight week of gains and record closing high..N



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



Gold prices held steady on Tuesday as the dollar eased, while investors looked forward to key U.S. inflation data that could offer clues on how soon the Federal Reserve can cut interest rates.GOL/



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



Some of the main stories out in the South African press:



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



&#8211; Solidarity asks court to declare NHI law unconstitutional



&#8211; Ramaphosa&#8217;s climate advisers not surprised by delayed shutdown of coal power stations



(Compiled by Tannur Anders)

South African Markets – Factors to watch on May 28

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RBDRNX6KFFJ3LNZOTUTISZLDJE-820x547.jpg" alt="" class="wp-image-491521" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RBDRNX6KFFJ3LNZOTUTISZLDJE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RBDRNX6KFFJ3LNZOTUTISZLDJE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RBDRNX6KFFJ3LNZOTUTISZLDJE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RBDRNX6KFFJ3LNZOTUTISZLDJE-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RBDRNX6KFFJ3LNZOTUTISZLDJE-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RBDRNX6KFFJ3LNZOTUTISZLDJE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: President of China Xi Jinping and South African President Cyril Ramaphosa attend the China-Africa Leaders&#8217; Roundtable Dialogue on the last day of the BRICS Summit, in Johannesburg, South Africa, August 24, 2023. REUTERS/Alet Pretorius/Pool/File Photo</figcaption></figure>



JOHANNESBURG/NAIROBI, May 28 (Reuters)&nbsp;&#8211;&nbsp;China&#8217;s flagship economic cooperation program is bouncing back after a lull during the global pandemic, with Africa a primary focus, according to a Reuters analysis of lending, investment and trade data.



Chinese leaders have been citing the billions of dollars committed to new construction projects and record two-way trade as evidence of their commitment to assist with the continent&#8217;s modernisation and foster &#8220;win-win&#8221; cooperation.



But the data reveals a more complex relationship, one that is still largely extractive and has so far failed to live up to some of Beijing&#8217;s rhetoric about the Belt and Road Initiative, President Xi Jinping&#8217;s strategy to build an infrastructure network connecting China to the world.



While new Chinese investment in Africa increased 114% last year, according to the Griffith Asia Institute at Australia&#8217;s Griffith University, it was heavily focused on minerals essential to the global energy transition and China&#8217;s plans to revive its own flagging economy.



Those minerals and oil also dominated trade. As efforts falter to boost other imports from Africa, including agricultural products and manufactured goods, the continent&#8217;s trade deficit with China has ballooned.



Chinese sovereign lending, once the main source of financing for Africa&#8217;s infrastructure, is at its lowest level in two decades. And public-private partnerships (PPPs), which China has touted as its new preferred investment vehicle globally, have yet to gain traction in Africa.



The result is a more one-sided relationship than China says it wants, one that is dominated by imports of Africa&#8217;s raw materials and that some analysts argue contains echoes of colonial-era Europe&#8217;s economic relations with the continent.



&#8220;This is something late-19th century Britain would recognise,&#8221; said Eric Olander, co-founder of the China-Global South Project website and podcast.



China rejects such assertions.



&#8220;Africa has the right, capacity and wisdom to develop its external relations and choose its partners,&#8221; China&#8217;s foreign ministry wrote in response to Reuters&#8217; questions.



&#8220;China&#8217;s practical support for Africa&#8217;s path of modernisation in accordance with its own characteristics has been welcomed by an increasing number of African countries.&#8221;



<h2 class="wp-block-heading" id="h-a-pivot-with-potential">A PIVOT WITH POTENTIAL?</h2>



China&#8217;s engagement in Africa, a focus of the Belt and Road Initiative (BRI), grew rapidly in the two decades before the COVID-19 pandemic. Chinese companies built ports, hydropower plants and railways across the continent, financed mainly through sovereign loans. Annual lending commitments peaked at $28.4 billion in 2016, according to the Global China Initiative at Boston University.



But many projects proved unprofitable. As some governments struggled to repay loans, China cut lending. COVID-19 then pushed it to turn inward, and Chinese construction projects in Africa fell.



A rebound in sovereign lending is not expected.



Policymakers in Beijing have instead been pushing Chinese companies to take equity stakes and operate infrastructure they build for foreign governments. The aim,&nbsp;China analysts say, is to help companies win higher-value contracts and, by giving them skin in the game, ensure the projects are economically viable.



Lending to Special Purpose Vehicles (SPVs), perhaps the most common means of PPP infrastructure investment, has been growing as a proportion of China&#8217;s overseas loans, according to figures shared exclusively with Reuters by AidData, a research centre at U.S. university William &amp; Mary.



The $668-million Nairobi Expressway, a public-private partnership built and run by the state-owned China Road and Bridge Corporation (CRBC), could be proof of concept for the model in Africa. Since it opened in August 2022, the toll road has been allowing commuters to speed above the Kenyan capital&#8217;s notorious traffic snarls, beating revenue and usage targets.



Daily average use in March was already 57,000 vehicles, exceeding a 2049 target of around 55,000 set by CRBC in a 2019 presentation on the project&#8217;s economic viability seen by Reuters.



But few companies are following CRBC&#8217;s example in Africa. While globally some 45% of Chinese non-emergency lending was to SPVs from 2018 to 2021, the most recent year for which AidData figures are available,&nbsp;the figure was only 27% for Africa.



Analysts point to a number of likely reasons, including a lack of legal frameworks for PPPs in many African countries and the view among some Chinese companies &#8211; many of them relative newcomers to PPPs &#8211; that African markets are risky.



China&#8217;s foreign ministry did not directly address a request for comment on the lower SPV figures for Africa. But it said the government encourages Chinese companies to &#8220;actively develop new modes of cooperation&#8221; such as PPPs to bring more private investment to Africa.



<h2 class="wp-block-heading" id="h-growing-engagement">GROWING ENGAGEMENT</h2>



The Griffith Asia Institute put China&#8217;s total engagement in Africa &#8211; a combination of construction contracts and investment commitments &#8211; at $21.7 billion last year, making it the largest regional recipient.



Data from the American Enterprise Institute, a Washington-based think tank, showed investments hitting nearly $11 billion in 2023, the highest level since it began tracking Chinese economic activity in Africa in 2005.



Some $7.8 billion of that went to mining, like Botswana&#8217;s Khoemacau copper mine, which China&#8217;s MMG Ltd bought for $1.9 billion, and cobalt and lithium mines in countries including Namibia, Zambia and Zimbabwe.



The hunt for critical minerals is driving infrastructure construction as well. In January, for example, Chinese companies pledged up to $7 billion in infrastructure investment under a revision of their copper and cobalt joint venture agreement with Democratic Republic of Congo.



Western and Gulf powers are also racing to lead the world&#8217;s energy transition, with the United States and European governments backing the Lobito Corridor, a rail link to bring metals from Zambia and Congo to Africa&#8217;s Atlantic coast.



African leaders have struggled, however, to raise financing for some other priority projects.



Despite the success of the Nairobi Expressway, for example, work on several Kenyan roads stalled when the government ran out of money to pay the Chinese construction firms.



During a visit to Beijing last October, President William Ruto asked for a $1 billion loan to complete the projects.



A Chinese foreign ministry spokesman, Wang Wenbin, said discussions about the request were ongoing. Kenya&#8217;s finance ministry did not respond to a request for comment.



The final phase of a railway line intended to traverse Kenya from its main port to the border with Uganda has been in similar limbo since Chinese financing dried up in 2019. Uganda cancelled the contract for its portion of the line in 2022, after Chinese backers pulled out.



When asked about the decline in lending for African infrastructure, Chinese officials point to a pivot to trade and investment, arguing that BRI-generated trade boosts Africa&#8217;s wealth and development.



Two-way trade reached a record $282 billion last year, according to Chinese customs data. But at the same time, the value of Africa&#8217;s exports to China fell 7%, mainly due to a decline in oil prices, and its trade deficit widened 46%.



Chinese officials have sought to assuage the concerns of some African leaders.



At a summit in Johannesburg last August, Xi said Beijing would launch initiatives to support the continent&#8217;s manufacturing and agricultural modernisation &#8211; sectors African policymakers consider key to closing trade gaps, diversifying their economies and creating jobs.



China has also pledged to increase agricultural imports from Africa.



Such efforts, for now, are coming up short.



With one of Africa&#8217;s largest trade deficits to China, Kenya has been pushing to increase access to the world&#8217;s second-largest consumer market, recently gaining it for avocados and seafood. But cumbersome health and hygiene regulations mean Chinese consumers remain out of reach for many producers.



&#8220;The Chinese market is a new one,&#8221; said Ernest Muthomi, CEO of the Avocado Society of Kenya. &#8220;It was a challenge because you have to install the equipment for fumigation.&#8221;



Of 20 billion shillings ($150.94 million) worth of avocados exported last year, just 10% went to China.



Overall, Kenyan exports to China fell over 15% to $228 million, Chinese customs data showed, as a decline in titanium production led to a drop in shipments of the metal &#8211; a key export to China.



But Chinese manufactured goods kept coming.



That&#8217;s not sustainable, said Francis Mangeni, an advisor at the Secretariat of the African Continental Free Trade Area.



Unless African nations can add value to their exports through increased processing and manufacturing, he said, &#8220;we are just exporting raw minerals to fuel their economy.&#8221;



($1 = 132.5000 Kenyan shillings)



(Reporting by Rachel Savage in Johannesburg and Duncan Miriri in Nairobi; Additional reporting by Elias Biryabarema in Kampala, Joe Cash in Beijing, Nyasha Chingono in Harare, Chris Mfula in Lusaka and Felix Njini in Johannesburg; Editing by Joe Bavier and Alexandra Zavis)

FILE PHOTO: China-Africa Leaders’ Roundtable Dialogue

Post-COVID, China is back in Africa and doubling down on minerals

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



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



Democratic Republic of Congo&#8217;s central bank is expected to hold its first monetary policy committee meeting for the year.



U.S. President Joe Biden hosts Kenyan President William Ruto for state visit to mark 60th anniversary of U.S.-Kenya diplomatic relations.



Chad&#8217;s newly elected president, junta leader Mahamat Idriss Deby, will be sworn in at a ceremony in the capital N&#8217;Djamena.



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



Several key Asian share benchmarks fell on Thursday as markets digested the implications of policymakers in major economies preferring to take patient approach to monetary easing amid sticky inflation.



[MKTS/GLOB]



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



Oil prices eased for a fourth straight day on Thursday on worries that U.S. borrowing costs could be hiked again if inflation surged, a move that could hurt oil demand.



[O/R]



<h2 class="wp-block-heading" id="h-africa-stocks">AFRICA STOCKS</h2>



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



The South African rand fell against the dollar on Wednesday as traders awaited Federal Reserve meeting minutes for hints on the interest rate path of the world&#8217;s biggest economy.



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



The Kenyan shilling weakened slightly against the dollar on Wednesday, LSEG data showed.



<h2 class="wp-block-heading" id="h-kcb-group-results">KCB GROUP RESULTS</h2>



Kenya&#8217;s KCB Group&#8217;s KCB.NR pretax profit for the first quarter of this year jumped 53%, helped by higher interest income, it said on Wednesday.



<h2 class="wp-block-heading" id="h-usa-africa">USA AFRICA</h2>



U.S. President Joe Biden said he plans to make an official visit to Africa in February after the U.S. presidential election, an announcement that presumed he will defeat Donald Trump.



<h2 class="wp-block-heading" id="h-congo-apple">CONGO APPLE</h2>



International lawyers representing the government of the Democratic Republic of Congo said on Wednesday they had new evidence gathered from whistleblowers, which deepened concerns that Apple AAPL.O could be sourcing minerals from conflict areas in eastern Congo.



<h2 class="wp-block-heading" id="h-mozambique-oil">MOZAMBIQUE OIL</h2>



Abu Dhabi National Oil Company (ADNOC) has bought Galp&#8217;s GALP.LS 10% stake in the Area 4 concession of the multi-billion-dollar natural gas project in Mozambique&#8217;s Rovuma basin, its fourth international foray into gas.



<h2 class="wp-block-heading" id="h-congo-politics">CONGO POLITICS</h2>



The Democratic Republic of Congo&#8217;s national assembly elected Vital Kamerhe, whose home was violently attacked on Sunday, as speaker in a delayed vote, a key step towards installing a government five months after a presidential election.



<h2 class="wp-block-heading" id="h-usa-kenya">USA KENYA</h2>



U.S. President Joe Biden is expected to designate Kenya as a major non-NATO ally during a three-day state visit by Kenyan President William Ruto this week, a source familiar with the plans said.



<h2 class="wp-block-heading" id="h-rwanda-imf">RWANDA IMF</h2>



The International Monetary Fund said on Wednesday it was releasing a combined $164.6 million in funds to Rwanda after its executive board concluded reviews of the country&#8217;s support programmes.



<h2 class="wp-block-heading" id="h-africa-drought">AFRICA DROUGHT</h2>



The U.N. World Food Programme (WFP) needs $400 million to feed millions of people in Southern Africa following a drought that plunged parts of the region into hunger, the programme said on Wednesday.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on May 23

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="622" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-820x622.jpg" alt="" class="wp-image-489351" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-820x622.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-300x227.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-768x582.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-1536x1164.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of fog over the Great Pyramids and old houses in Cairo, Egypt 24 January 2024. REUTERS/Amr Abdallah Dalsh/File Photo</figcaption></figure>



LONDON, May 22 (Reuters)&nbsp;&#8211;&nbsp;From Brazil, Nigeria and Turkey to even some of the riskiest emerging markets such as Egypt and Zambia, evidence is growing that a decade-long deterioration in sovereign credit ratings has finally started to reverse.



Economists watch ratings because they influence a country&#8217;s borrowing costs and many are now highlighting a turnaround that seems incongruous with the usual warnings about rising debt pressures.



According to Bank of America, almost three-quarters of all sovereign rating moves by S&amp;P, Moody&#8217;s and Fitch this year have been in a positive direction, compared with the almost 100% that went the other way in the first year of the COVID pandemic.



With that and the spike in global interest rates now in the rear view mirror, more good news should be coming too.



Moody’s now has 15 developing economies on a positive outlook &#8211; rating firm parlance for an upgrade watch &#8211; one of its highest numbers ever. S&amp;P has 17, while Fitch has seven more positive than negative outlooks, its best ratio since a post-global financial crisis rebound in ratings in 2011.



Fitch&#8217;s global head of sovereign research Ed Parker said the turnaround has been down to a combination of factors.



For some countries it has been a general recovery from COVID and/or the energy price spikes caused by the Ukraine war. Others are seeing country-specific improvements in policymaking, while a core group of junk-rated &#8220;frontier&#8221; nations are now benefiting from suddenly being able to access debt markets again, he said.



Aviva Investors&#8217; head of EM hard currency debt, Aaron Grehan, describes the current upgrade wave as a &#8220;definitive shift&#8221; that has also coincided with a sharp drop in the premiums that emerging markets almost everywhere have had to pay to borrow.



&#8220;Since 2020, well over 60% of all rating actions have been negative. In 2024, 70% have been positive,&#8221; Grehan said, adding that Aviva&#8217;s internal scoring models were similar.



<h2 class="wp-block-heading" id="h-decade-of-downgrades">DECADE OF DOWNGRADES</h2>



The awkward reality though is that the current run of upgrades will not make up for the last 10-15 years.



Turkey, South Africa, Brazil and Russia all lost coveted investment grade scores during that time, while a deluge of debt almost everywhere apart from the Gulf has left the average EM credit rating more than a notch lower than it used to be.



And though some countries argue that developed economies where debt is still surging are being treated more leniently by the rating firms, EM finances are hardly sparkling now.



Eldar Vakitov, a sovereign analyst and &#8220;bond vigilante&#8221; at M&amp;G Investments points to the International Monetary Fund&#8217;s recent forecast that the average EM fiscal deficit will edge up to 5.5% of GDP this year.



Just a year ago, the assumption was that the 2023 EM fiscal expansion was a one-off that would be fully reversed this year. Now the EM fiscal deficit is expected to remain above 5% of GDP until the end of the Fund’s forecast horizon in 2029.



So why all the rating upgrades?



&#8220;For some countries it is all about the starting point,&#8221; Vakitov said, explaining that even though government deficits were still wide, they had at least dropped down from peak COVID levels.



A few governments, such as Zambia, are getting a natural lift from coming out of debt restructurings while a number of places are making obvious policy improvements.



Turkey, which has already had a couple of upgrades for attacking its inflation problem head on, and Egypt which seems to have shaken off default worries, are both expected to see multi-notch upgrades now, according to market pricing.



&#8220;Rating agencies tend to be slow though,&#8221; Vakitov said, &#8220;so it often takes them a lot of time to give upgrades.&#8221;



<h2 class="wp-block-heading" id="h-coupon-payments">COUPON PAYMENTS</h2>



The downgrades have not stopped completely. Moody&#8217;s and Fitch have both put China on a warning over the last six months, Israel&#8217;s war has led to its first ever downgrades and Panama has been stripped of one of its investment grades.



Three years on from COVID spending splurges and the bills are having to be paid too. EM hard currency debt amortisations and coupon payments are expected to reach an all-time high of $134 billion this year, JP Morgan estimates.



That is up by $32 billion from last year, so it is not surprising then that emerging market policymakers are eager to do all they can to get their ratings up and keep borrowing costs down.



Indonesia&#8217;s Finance Minister Sri Mulyani Indrawati explained in London this month how the agencies had doubted her when she told them during COVID that Indonesia would get its deficit back below 3% of GDP within 3 years.



&#8220;It ended up that we were able to consolidate the fiscal (position) in only two years,&#8221; she said. &#8220;So I always like to say to my rating agency staff, I won the bet, so you have to upgrade my rating!&#8221;



(Reporting by Marc Jones; Editing by Alison Williams)

FILE PHOTO: A general view of fog over the Great Pyramids and old houses in Cairo

Emerging market credit ratings are finally looking up again

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107387754-1710442603582-Fort-Knox-Gold-Pour-820x462.jpg" alt="" class="wp-image-488636" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107387754-1710442603582-Fort-Knox-Gold-Pour-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107387754-1710442603582-Fort-Knox-Gold-Pour-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107387754-1710442603582-Fort-Knox-Gold-Pour-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107387754-1710442603582-Fort-Knox-Gold-Pour-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107387754-1710442603582-Fort-Knox-Gold-Pour.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Fort Knox Alaska operations of mining company Kinross, which has a new gold mine in Tetlin, Alaska, that has led to lawmaker concerns about trucking’s impact. Courtesy: Kinross</figcaption></figure>



May 20 (Reuters)&nbsp;&#8211;&nbsp;Gold prices hit an all-time high on Monday, as a slowing U.S. inflation trend boosted expectations the Federal Reserve could deliver its first interest rate cut soon, while silver scaled a more than 11-year peak.



Spot gold&nbsp;XAU=&nbsp;rose 1% to $2,438.44 per ounce, as of 0811 GMT, after hitting a record high of $2,449.89 earlier in the session. U.S. gold futures&nbsp;GCcv1&nbsp;rose 1.1% to $2,442.60.



Data last week showed signs of cooling inflation and traders now expect a 65% chance of a U.S. rate cut by September. FEDWATCH



The dollar index&gt;&nbsp;=USD&nbsp;remained subdued, making greenback-priced bullion more attractive to buyers holding other currencies.&nbsp;USD/



A soft U.S. dollar and expectations the Federal Reserve is expected to cut rates soon has helped gold prices, said Kyle Rodda, a financial market analyst at Capital.com.



Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.



Minutes of the Fed&#8217;s last policy meeting due on Wednesday along with comments from a slew of Fed speakers will be on investors&#8217; radar for this week.



&#8220;Gold prices sneaked in a cheeky record high ahead of China&#8217;s (market) open on Monday. Yet as the move has not been confirmed with by a weaker U.S. dollar, it seems to have been caught in a tailwind from higher metals futures on China&#8217;s exchanges,&#8221; said City Index senior analyst Matt Simpson.&nbsp;MET/L



China, the top consumer of bullion and a majority of industrial metals, announced &#8220;historic&#8221; steps on Friday to stabilise its crisis-hit property sector.



Spot silver&nbsp;XAG=&nbsp;rose 1.3% to $31.88 after hitting an over 11-year high.



&#8220;Silver&#8217;s relative cheapness compared to gold and its strong fundamentals are invigorating investor interest. Platinum is trading at premium over palladium with rising inflows of exchange traded funds,&#8221; analysts at ANZ wrote in a note.



Platinum&nbsp;XPT=&nbsp;fell 0.2% to $1,078.88, after hitting its highest since May 12, 2023 earlier in the session. Palladium&nbsp;XPD=&nbsp;dropped 0.2% to $1,006.49.



(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Sohini Goswami and Krishna Chandra Eluri)

107387754-1710442603582-Fort-Knox-Gold-Pour

Gold hits record peak as rate-cut bets burnish appeal, silver jumps

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="535" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II.jpg" alt="" class="wp-image-486195" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LYNXMPEJ4E0II-768x514.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">An employee holds an ingot of 99.98 percent pure platinum in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. REUTERS/Alexander Manzyuk</figcaption></figure>



LONDON, May 13 (Reuters) &#8211; Average prices for platinum, palladium and rhodium are expected to fall this year compared with 2023 despite another year of structural deficit for all the three metals of the group, consultancy Metals Focus said on Monday.



The basket price of the platinum group metals (PGMs), which are chiefly used in vehicle exhausts to neutralise harmful engine emissions, slumped in 2023 due to worries that rising market share of PGMs-free, battery-powered electric vehicles (BEVs) would reduce demand in future.



Demand for the PGMs from the auto sector rose last year as the 2021-2022 chip crisis had run its course, but the pace of BEVs penetration remained the main challenge for the PGMs demand, Metals Focus said in its 104-page report.



BEVs currently account for 14% of auto production, up from 11% at the beginning of 2023, Metals Focus said. This impact has been partly offset by a pickup in hybrid vehicles, which need PGMs. These now have a 22% share of light duty vehicles, up from 18% at the start of 2023.



The competition between the metals inside the group saw a change in 2023 with the slowing substitution of palladium with platinum as the two approached price parity.



&#8220;Going forward, we expect substitution will stall,&#8221; Metals Focus said.



On the supply side, lower palladium and rhodium prices have squeezed margins, with half of South African mines operating uneconomically on an all-in sustaining cost basis, an industry metric that reflects total expenses, at the end of 2023.



Many miners sought to reduce costs, and this process will keep supply constrained this year causing another year of structural deficit, which in its turn is going to be covered by existing above-ground stocks.



&#8220;Trading behaviours that dominated 2023 will continue to play a large role in shaping prices in 2024,&#8221; Metals Focus said.



In 2024, Metals Focus expects average prices for platinum &lt;XPT=> to slide by 1% to $960 per troy ounce, for palladium &lt;XPD=> to decline by 23% to $1,030, and for rhodium &lt;RHOD-LON> to fall 28% to $4,750.



(Reporting by Polina Devitt; editing by Nick Macfie)

Production of platinum at Krastsvetmet precious metals plant in Krasnoyarsk

Platinum, palladium, rhodium prices seen down in 2024 despite deficit, Metals Focus says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-820x523.jpg" alt="" class="wp-image-484618" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-1536x979.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Clementine Musonge, a trader, counts Congolese francs bank notes at the Kituku market in Goma, North Kivu province of the Democratic Republic of Congo February 15, 2024. REUTERS/Arlette Bashizi/File photo</figcaption></figure>



May 8 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Wednesday it had reached a staff-level agreement with Democratic Republic of Congo on the final review of a $1.5 billion loan programme, noting the need for Congo to manage properly funds from a revised mining&nbsp;deal.



This takes Congo one step closer to completing an IMF programme for the first time. Previous agreements have been derailed by issues including a lack of transparency in its vast mining sector.



&#8220;Performance under the (three-year) program has been generally positive, with most quantitative objectives met and key reforms implemented, albeit at a slow pace,&#8221; the Fund said in a statement.



Once approved by the IMF board, the agreement will allow for the disbursement of a final tranche of around $200 million.



The IMF noted that the world&#8217;s top supplier of cobalt &#8211; the mineral used in smartphones &#8211; and the third-largest producer of copper must account for the positive impact of a recently amended Sicomines joint venture with Chinese companies in its revised budget law for 2024.



&#8220;In addition, mechanisms will need to be put in place or reinforced to ensure the proper use and governance of these funds,&#8221; the Fund said.



President Felix Tshisekedi pushed for the revision of the 2008 infrastructure for minerals deal with Sinohydro Corp and China Railway Group to bring more benefits for Congo. An agreement was signed in March.



&#8220;The IMF is concerned about the mechanisms for using this money and has asked for it to be paid into the public treasury accounts rather than being managed by an agency as has been done in the past,&#8221; a finance ministry official, who requested anonymity, told Reuters.



Publishing mining contracts was also one of the conditions of the IMF programme and last week Congo shared long-awaited details of the revised Sicomines terms, which include around $7 billion of infrastructure investments from the Chinese side provided that copper prices remain high.



Under the previous version of the agreement, only $822 million of $3 billion promised to infrastructure investments was disbursed, according to a 2023 report by Congo&#8217;s state auditor.



The revised deal still includes terms which Congolese and international civil society organisations see as disadvantageous to Congo. These include Sicomines&#8217;s exemption from paying taxes until 2040.



(Writing by Alessandra Prentice; Editing by Chris Reese and Deepa Babington)

Eastern Congo residents scramble for food and safety as conflict intensifies

IMF and DR Congo reach agreement on final review of loan 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/2024/04/GettyImages-2147863877-820x547.jpg" alt="" class="wp-image-481574" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147863877-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147863877-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147863877-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147863877-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147863877-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147863877-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ajay Banga, president of the World Bank Group, speaks during an event at the annual meetings of the International Monetary Fund (IMF) and World Bank in Washington, DC, US, on Tuesday, April 16, 2024. The International Monetary Fund inched up its expectations for global economic growth this year, citing strength in the US and some emerging markets, while warning the outlook remains cautious amid persistent inflation and geopolitical risks. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, April 30 (Reuters)&nbsp;&#8211;&nbsp;World Bank President Ajay Banga said he expects donor countries to meet a request by African leaders to make record contributions to a low-interest facility for developing nations, saying these were not handouts but investments in the future.



African heads of state called on Monday for rich nations to help raise at least $120 billion for the International Development Association (IDA) at a conference to be held in Japan in December.



That would be a record for IDA, which offers long-term loans to developing nations and operates on a three-year cycle. The last round of fund-raising in 2021 raised $93 billion.



The target amount of $120 billion means donors will have to put up about $30 billion since the World Bank can borrow $3 for every dollar raised.



&#8220;There is no doubt that all the donor countries have their own challenges and their own fiscal responsibilities. But I think they all value the effect of contributing to IDA,&#8221; Banga said in an interview on Monday.



African nations account for more than half of the 75 that tap the IDA facility. Many are grappling with heavy debt burdens and climate disasters but struggle to access affordable financing on international markets.



That makes access to IDA loans crucial, the African leaders said.



Banga said rich countries should recognise that giving generously is in their own interest, citing examples of once-poor countries like China and India that have graduated from IDA recipients to become major economies.



&#8220;I think the most important message is actually that this is not a handout,&#8221; he said. &#8220;If Africa develops well, Africa has a lot to offer the world.&#8221;



(Reporting by Duncan Miriri; Editing by Aaron Ross and Nick Macfie)

Spring Meetings Of The International Monetary Fund And World Bank

World Bank chief expects rich nations to meet African donation requests

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107403109-1713443463934-gettyimages-2147899569-AFP_34PP888-820x462.jpeg" alt="" class="wp-image-481532" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107403109-1713443463934-gettyimages-2147899569-AFP_34PP888-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107403109-1713443463934-gettyimages-2147899569-AFP_34PP888-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107403109-1713443463934-gettyimages-2147899569-AFP_34PP888-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107403109-1713443463934-gettyimages-2147899569-AFP_34PP888-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107403109-1713443463934-gettyimages-2147899569-AFP_34PP888.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during a briefing on the Global Policy Agenda at IMF headquarters during the IMF/World Bank Spring Meetings in Washington, DC on April 18, 2024. Mandel Ngan | Afp | Getty Images</figcaption></figure>



Kristalina Georgieva, the managing director of the International Monetary Fund, played down the prospect of any negative impact from a monetary policy divergence between Europe and the U.S., but said issues could be more acute in emerging markets.



The benchmark rates of most advanced economies soared in recent years, as central banks aimed to tame inflation following the Covid-19 pandemic. These banks are now looking to bring rates back down as economies cool off, although signals in the U.S. suggest that cuts might still be some months away.



A high U.S. interest rate environment is traditionally bad news for emerging markets, as it makes their debts — often priced in U.S. dollars — more expensive. It can also trigger capital outflows, as investors opt for better returns in the U.S., and can cause much tighter financial conditions.



“It is a much more serious issue for countries where the impact of high interest rates in the United States are more profound — in many emerging market economies,” Georgieva told CNBC’s Silvia Amaro in Brussels on Monday.



“We also see some of this in Japan, and there the attention of policymakers, indeed, has to be sharpened to carefully monitor where the volatilities are becoming more significant. In Europe, this is not the case.”



In the euro zone, she said that “we are not too worried about the exchange rate impact,” adding that the IMF’s analysis showed that the 50 basis points difference between the rates of the U.S. Federal Reserve and those of the European Central bank “is likely to lead to miniscule or 0.1 to 0.2% shift in the exchange rate.”



“And that is to say that here [in Europe] this is not a big issue,” she said.

107403109-1713443463934-gettyimages-2147899569-AFP_34PP888

IMF chief warns of emerging market risk with high U.S. interest rates

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107407269-1714293090268-gettyimages-1931121428-DAVOS_WEF_2024-820x461.jpeg" alt="" class="wp-image-481182" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107407269-1714293090268-gettyimages-1931121428-DAVOS_WEF_2024-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107407269-1714293090268-gettyimages-1931121428-DAVOS_WEF_2024-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107407269-1714293090268-gettyimages-1931121428-DAVOS_WEF_2024-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107407269-1714293090268-gettyimages-1931121428-DAVOS_WEF_2024-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107407269-1714293090268-gettyimages-1931121428-DAVOS_WEF_2024-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107407269-1714293090268-gettyimages-1931121428-DAVOS_WEF_2024.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Borge Brende, president of the World Economic Forum (WEF). Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Borge Brende, president of the World Economic Forum, gave a stark outlook for the global economy saying the world faces a decade of low growth if the right economic measures are not applied.



Speaking Sunday at WEF’s “Special Meeting on Global Collaboration, Growth and Energy for Development” in Riyadh, Saudi Arabia, he warned that global debt ratios are close to levels not seen since the 1820s and there was a “stagflation” risk for advanced economies.



“The global growth [estimate] this year is around 3.2 [%]. It’s not bad, but it’s not what we were used to — the trend growth used to be 4% for decades,” he told CNBC’s Dan Murphy, adding that there was a risk of a slowdown like that seen in the 1970s in some major economies.



“We cannot get into a trade war, we still have to trade with each other,” he explained when asked about avoiding a period of low growth.



“Trade will change and global value chains — there will be some more near-shoring and friend-shoring — but we shouldn’t lose the baby with the bathwater &#8230; Then we have to address the global debt situation. We haven’t seen this kind of debt since the Napoleonic Wars, we are getting close to 100% of the global GDP in debt,” he said.



He said governments needed to consider how to reduce that debt and take the right fiscal measures without getting into a situation where it kicks off a recession. He also motioned persistent inflationary pressures and that generative artificial intelligence could be an opportunity for the developing world.



His warning chimes with a recent report from the International Monetary Fund which noted that global public debt had edged up to 93% of GDP last year, and was still 9 percentage points higher than pre-pandemic levels. The IMF projected that global public debt could near 100 % of GDP by the end of the decade.



The Fund also singled out the high debt levels in China and the United States, saying loose fiscal policy in the latter puts pressure on rates and the dollar which then pushes up funding costs around the world —exacerbating pre-existing fragilities.



Earlier this month, the International Monetary Fund raised its global growth forecast slightly, saying the world economy had proven “surprisingly resilient” despite inflationary pressures and monetary policy shifts. It now expects global growth of 3.2% in 2024, up by a modest 0.1 percentage point from its earlier January forecast.



WEF’s Brende said Sunday that the biggest risk for the global economy is now “the geopolitical recession that we are faced with,” highlighting recent Iran-Israel tensions.



“There is so much unpredictability, and you can easily get out of control. If Israel and Iran escalated that conflict, we could have seen an oil price of $150 overnight. And that would of course be very damaging for the global economy,” he said.

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