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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



(Reporting by Siddarth S in Bengaluru)

Stock market report. 3d illustration

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

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



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



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



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



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



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



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



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



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



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



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



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



(Reporting by Andrea Shalal; Editing by Michael Perry)

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

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



(Reporting by Balazs Koranyi; Editing by Mark Potter)

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

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

BRICS Summit in Johannesburg

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

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-820x576.jpg" alt="" class="wp-image-428782" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-1536x1079.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A delegate poses in front of flags during the opening of the U.S.-sub-Saharan Africa trade forum to discuss the future of the African Growth and Opportunity Act (AGOA), at the NASREC conference center in Johannesburg, South Africa, November 3, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



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



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



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



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



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



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



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



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



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



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



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



(Reporting by Makini Brice; Editing by Paul Simao)

South Africa hosts US-Africa trade summit

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

World map with charts and graphs as symbols of global finance

Stocks jump on boost from South Korean shares, FX rise

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



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



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



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



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



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



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



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



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



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



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



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

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

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

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

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

Stocks, FX extend rally; Pak equities hit record high

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="535" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-820x535.jpg" alt="" class="wp-image-428711" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-820x535.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-768x501.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-1536x1001.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man uses an iPhone 7 smartphone to demonstrate the mobile payment service Apple Pay at a cafe in Moscow, Russia, October 3, 2016. REUTERS/Maxim Zmeyev</figcaption></figure>



The Africa Export-Import Bank has added 11 African central banks to its flagship Pan- African Payment and Settlement System (PAPSS) and expects the rest to join by next year, a key step in its drive to cut costs and simplify trading across the region’s 55 territories.



“Trade goes well where payments can be made easily, and this is why we can only see trade pick up if we see improvement in efficient payments,” John Bosco Sebabi, PAPSS deputy CEO told CNBC Africa’s Godfrey Mutizwa this week.



Over 80 percent of intra-African payments currently go through either Europe or the United States, a process Afreximbank estimates costs as much as $5 billion in fees and compliance costs. It says PAPSS, a partnership with the African Union, will provide an alternative in which participants will transact in their own currencies without the need for a third party currency like the U.S. dollar.



Key participants in the system include central banks, which will act as regulators and clearance agents, commercial banks, fintechs, payment service providers and their customers comprising businesses across the region.



&#8220;The issue here is not the exclusion of the U.S dollar but to be able to ease this. For those in Zimbabwe or Rwanda, for example, PAPSS will debit their accounts in Zim dollars, credit their accounts in Rwanda francs and then the central banks work it out in any currency convenient to them,&#8221;&nbsp;Sebabi said.



The Africa Union launched the Africa Continental Free Trade Agreement in January 2021, the youngest and largest trading bloc in the world after rapid ratification creating a common market with a combined gross domestic product of $3.4 trillion for the continent’s 1.3 billion people.



The region has the lowest intra-regional trade volumes in the world at about 18 percent, compared with Europe’s 70 percent and Asia’s 59 percent. Sebabi expects PAPSS to gain traction quickly.



“This will rollout very, very quickly. We have got 81 commercial banks on board, mostly from the West African monetary zone,” he said.



Southern African participants include Standard Bank, the continent’s largest bank by assets. People &#8220;will make payments within as little as 7-10seconds, with a maximum of 120seconds. This payment system has the ability to further advance intra-African trade ties.&#8221;

FILE PHOTO: Man uses iPhone 7 smartphone to demonstrate mobile payment service Apple Pay at cafe in Moscow

Afreximbank’s PAPSS Adds 11 African Central Banks to Continental Payments System

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-820x547.jpg" alt="" class="wp-image-428707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Italian Prime Minister Giorgia Meloni speaks during a news conference with Israeli Prime Minister Benjamin Netanyahu after their meeting at Palazzo Chigi, in Rome, Italy, March 10, 2023. REUTERS/Guglielmo Mangiapane/File Photo</figcaption></figure>



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



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



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



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



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



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



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



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



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



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



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



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

UJYWVG4STRN6FFJZPWU3RC4P3A

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

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-820x547.jpg" alt="" class="wp-image-428703" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ACCRA, GHANA &#8211; JUNE 18: H.E. Ambassador Albert Muchanga
Commissioner for Economic Development, Trade, Industry and Mining, African Union Commissioner (AUC) speaks at the African Export-Import Bank (Afreximbank) Annual Meeting on June 18, 2023 at the Accra International Conference Center in Accra, Ghana. The event is to mark the high point of the bank’s year-long 30th-anniversary celebrations, under the theme “Delivering the Vision. Building Prosperity for Africans”. (Photo by Ernest Ankomah/Getty Images)</figcaption></figure>



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



(Reporting by Joe Bavier, Editing by William Maclean)

30th Afreximbank Annual Import-Export Fair In Ghana

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

istockphoto-1076949610-612×612-1

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

Investors kick off Nov on caution ahead of Fed policy

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



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



And like others, she is worried.



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



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



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



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



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



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



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



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



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



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



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



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



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



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



That lack of clarity is not only hitting new investments.



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



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



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



But that is looking increasingly unlikely.



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

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

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

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



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



Here are some key facts about AGOA:



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

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