<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



WASHINGTON, March 6 (Reuters)&nbsp;&#8211;&nbsp;The World Bank is pausing future work with Tunisia after statements by the country&#8217;s president on migrants from African countries triggered&nbsp;racist harassment&nbsp;and violence, World Bank President David Malpass told staff in a note seen by Reuters.



In the note, sent late Sunday, Malpass said the bank was pausing Tunisia&#8217;s Country Partnership Framework, which mapped out future programs from 2023-2025, and had postponed until further notice a March 21 board meeting to review that new strategic engagement. Current work was continuing, he said.



He said the World Bank viewed the situation as deeply concerning, but viewed steps announced by the Tunisian government to protect and support migrants and refugees as a positive step and would be monitoring their impact.



&#8220;The safety and inclusion of migrants and minorities is part of our institution’s core values of inclusion, respect, and anti-racism in all shapes and forms,&#8221; Malpass wrote. &#8220;Public commentary that stokes discrimination, aggression, and racist violence is completely unacceptable.&#8221;



<a href="https://www.reutersconnect.com/all?search=all%3AL1N35D0FT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Tunisian President Kais Saied</a>&nbsp;on Sunday denounced racism on Sunday and pointed to possible legal consequences for those attacking migrants 10 days after announcing a crackdown on migration using language the African Union condemned as &#8220;<a href="https://www.reutersconnect.com/all?search=all%3AL6N35500V&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">racialized hate speech</a>.&#8221;



According to a Feb. 21 Facebook post,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N353290&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Saied called on security forces</a>&nbsp;and authorities to detain and deport immigrants, and he called migration a conspiracy to change Tunisia&#8217;s demographics by making it &#8220;only an African country&#8221; without an affiliation to the Arab and Islamic world.



Police subsequently detained hundreds of migrants, landlords summarily evicted hundreds from their homes and hundreds of others were fired from work,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N35129I&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">the Tunisian Forum for Economic and Social Rights (FTDES) said</a>.



Reuters spoke to migrants who said they had been attacked in their neighborhoods and saw several other videos of migrants with face injuries saying they had been attacked.



Malpass said Tunisia has &#8220;long-standing traditions of openness and tolerance&#8221; and the bank would remain fully engaged in the country and working to help create better lives for all people, whether citizens, residents, or immigrants.



He said the bank was working to ensure the safety of all its staff in Tunisia, and especially Africans, including through additional security measures.



The safety measures could affect delivery of World Bank programs, but &#8220;staff safety will override program-related concerns,&#8221; Malpass said.



The World Bank has been a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2W40LA&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">major donor</a>&nbsp;to Tunisia, helping it finance&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2YG2MD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">food imports</a>&nbsp;and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N34P0K9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">business development</a>&nbsp;as the government seeks an International Monetary Fund&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3342AJ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">bailout</a>&nbsp;for it state finances.



Saied on Monday issued a video showing him reminding Interior Minister Taoufic Charfeddine of the importance of upholding rights and freedoms. The foreign ministry also held a news conference to again reject accusations of widespread racism in Tunisia.



(Reporting by Andrea Shalal; additional reporting by Angus McDowall; Editing by Aurora Ellis)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank says pausing future Tunisia work amid reports of racist violence

<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>



March 6 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks rose on Monday as U.S. Treasury yields dipped ahead of commentary from Federal Reserve Chair Jerome Powell later in the week, but gains were limited as a modest 2023 growth target by China disappointed investors.



The MSCI EM equities index&nbsp;.MSCIEF&nbsp;started the week on a positive note, rising 0.6%, with investors awaiting Powell&#8217;s testimony to Congress on Tuesday and Wednesday for an update on the central bank&#8217;s monetary policy path.



The index hit a rough patch in February as signs of economic resilience in the United States stoked concerns of more rate hikes by the U.S. central bank, but recent commentary from some Fed officials has calmed jitters, leading to a pullback in U.S. Treasury yields.



Bucking the trend on Monday, stocks in China&nbsp;.CSI300&nbsp;slid 0.5% after the world&#8217;s second largest economy&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N35D02A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">set a modest target</a>&nbsp;for 2023 GDP growth of around 5% on Sunday as it kicked off the annual session of its National People&#8217;s Congress.



It was at the low end of expectations, as policy sources had recently&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N35918M&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">told</a>&nbsp;Reuters that a range as high as 6% could be set.



&#8220;In particular, the central government (in China) probably doesn&#8217;t want to put too much pressure on local governments to boost economic growth given the financial stress they are facing,&#8221; said Tommy Wu, senior economist at Commerzbank.



&#8220;From a more cautious viewpoint, the unambitious growth target points to a more subdued outlook. It may also signal that the government is likely to implement more moderate policy easing than before.&#8221;



Regional currencies&nbsp;.MIEM00000CUS&nbsp;rose 0.1% as the dollar index&nbsp;.DXY&nbsp;edged lower.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;was flat against the dollar with the main opposition alliance expected to announce their candidate to challenge President Tayyip Erdogan in the upcoming election later in the day.



South Africa&#8217;s rand&nbsp;ZAR=&nbsp;edged 0.1% lower against the greenback ahead of a cabinet reshuffle expected this afternoon, where President Cyril Ramaphosa is likely to name a new deputy.



In central and eastern Europe, the Hungarian forint&nbsp;EURHUF=&nbsp;was up 0.3% against the euro. Calendar-adjusted retail sales in Hungary&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N33B03R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">plunged</a>&nbsp;4.5% year-on-year in January following a revised 4.1% drop in December.



The Polish zloty&nbsp;EURPLN=&nbsp;was flat against the euro.



Elsewhere in emerging markets, Indian&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N35E0WE&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">shares gained</a>&nbsp;on Monday, with Adani group stocks extending gains after GQG Partners&#8217; investment in the conglomerate last week.



(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Editing by Varun H K)

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

Stocks rise ahead of Powell testimony, China shares limit gains

<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/BENGALURU, March 3 (Reuters)&nbsp;&#8211;&nbsp;China&#8217;s reopening is set to boost emerging market currencies against the U.S. dollar over the next six months, primarily for those that export commodities to the world&#8217;s second-largest economy, a Reuters poll of foreign exchange analysts found.



Investor confidence towards emerging market assets has risen since China dropped its pandemic-era zero-COVID policy late last year but worries that the U.S. Federal Reserve has quite a bit more tightening in store have put a damper on sentiment.



Emerging markets face the significant risk of an extended series of Fed interest rate hikes and a strengthening dollar, both of which increase the burden of hard-currency denominated debt and lead to tighter financial conditions.



But China&#8217;s reopening is expected to stimulate domestic consumption and tourism, which would benefit its neighbours in North and Southeast Asia, as well as various emerging economies that rely on commodity exports.



Despite the threat posed by higher U.S. yields in recent weeks, the MSCI Emerging Markets Currency Index&nbsp;.MIEM00000CUS&nbsp;remains almost 3% below its early February peak, as dollar bulls have reemerged.



&#8220;China&#8217;s re-opening should drive stronger EM growth relative to the U.S.,&#8221; noted Mikhail Liluashvili, strategist at Bank of America.



&#8220;Hard landing risks remain with us, but timing it is tricky as global growth has been surprising to the upside. In this environment, it is better to avoid direct USD exposure.&#8221;



After a good start to the year for emerging market forex, the U.S. dollar has risen nearly 4% from its recent lows on rate differential support.



So long as U.S. inflation keeps drifting lower, however, strategists forecast emerging market currencies will perform better than majors, although not in a straight line upward in the near term.



&#8220;USD strength can persist for a bit longer, as the market tries to navigate the balance of global growth recovery and higher rates,&#8221; wrote Mark McCormick, global head of FX strategy at TD Securities.



<h2 class="wp-block-heading" id="h-growth-target">GROWTH TARGET</h2>



&#8220;(But) we continue to see few catalysts in the very near-term that could turn the narrative, though keep an eye on the upcoming China data dump.&#8221;



China may set an economic&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N35918M&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">growth target</a>&nbsp;as high as 6% in a bid to boost investor and consumer confidence and build on a promising post-pandemic recovery, according to sources involved in policy discussions.



After falling about 8% last year, China&#8217;s tightly controlled yuan was predicted to appreciate only around 4% to 6.67 per dollar in a year.



But analysts said the direction of the yuan will partly depend on the annual meeting of the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3521J3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">National Party Congress</a>, slated to begin this Sunday. Investors are watching for any further government measures to stimulate economic recovery.



Analysts in the poll said commodity currencies are also expected to appreciate due to China&#8217;s economic reopening.



The Russian rouble is predicted to gain about 2.0% to 74.1/$ in six months, with the Canadian&nbsp;CAD=, Australian&nbsp;AUD=&nbsp;and New Zealand dollars&nbsp;NZD=&nbsp;forecast to rise 3.2%, 5.4%, and 3.0%, respectively.



South Africa&#8217;s rand, a high-yielder, which has lost over 6% so far this year, was expected to gain about 3% in the next six months to 17.67 per dollar.



Mexico&#8217;s peso, closely linked to the prospects of the U.S. dollar, and the Turkish lira, are the only two emerging market currencies covered by the poll expected to weaken.&nbsp;BRL/POLL



The lira&nbsp;TRY=, the worst-performing emerging market currency last year, is set to fall about 12% to 21.68/$ in the next six months.



&#8220;A lack of an independent central bank and an unorthodox view on monetary policy should keep the lira on a weakening trend against the greenback for the foreseeable future, unless the presidential election this May results in regime change,&#8221; said Brendan McKenna, international economist at Wells Fargo.



(For other stories from the March Reuters foreign exchange poll:&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N35A1PE&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>)



(Reporting by Vuyani Ndaba and Vivek Mishra; Polling by Veronica Khongwir and Vijayalakshmi Srinivasan; Editing by Ross Finley, William Maclean)

World map with charts and graphs as symbols of global finance

China’s reopening set to help EMFX get back on track

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1244870555-820x615.jpg" alt="" class="wp-image-423185" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1244870555-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1244870555-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1244870555-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1244870555-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1244870555-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1244870555-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">PRODUCTION &#8211; 11 November 2022, Kenya, Busia: Hilda Obali checks a delivery of cassava ready for shipment. For a long time, traditional crops such as cassava or the fonio variety of grain were considered poor people&#8217;s food in Africa. However, due to the climate crisis and rising prices for food imports, the indigenous species are experiencing a renaissance. (to dpa &#8220;Starvation millet and tropical potato: Africa&#8217;s ways out of the hunger crisis&#8221;) Photo: David Renke/dpa (Photo by David Renke/picture alliance via Getty Images)</figcaption></figure>



NAIROBI, Feb 17 (Reuters)&nbsp;&#8211;&nbsp;Deepening security and food crises are likely to dominate the agenda when heads of state convene in Ethiopia&#8217;s capital Addis Ababa this weekend, Feb. 17-19, for the annual African Union (AU) summit.



Armed conflict from West Africa&#8217;s Sahel to the Horn of Africa in the east and the impacts of droughts and floods have driven ever more Africans from their homes, with the number of displaced people south of the Sahara Desert rising more than 15% over the past year, according to United Nations figures. The U.N. estimates 44 million people were displaced in 2022 up from 38.3 million people at the end of 2021.



AU Peace and Security Commissioner Bankole Adeoye is expected to try to rally support for a proposal for new financing of security operations from the United States, African Union members and the European Union, two diplomats told Reuters, speaking on condition of anonymity.



Financing has been a perennial challenge for AU initiatives like its peacekeeping mission in Somalia. In 2020, the AU postponed plans to start financing security operations from a new fund until 2023 because it had received less than half of the targeted $400 million.



Heads of state will also be briefed on fighting in eastern Democratic Republic of Congo and the security situations in Mali, Burkina Faso, Guinea, and Sudan, which all experienced military takeovers in 2021 and 2022, the two diplomats said.



Bankole and a spokesperson for the Peace and Security Council did not respond to requests for comment.



Another major subject of discussion is expected to be worsening hunger in several regions, which has been driven by armed conflict and extreme weather that scientists have linked to fossil fuel-driven climate change.



Somalia is on the verge of&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AJ8N31P01G&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">famine</a>&nbsp;after five failed rainy seasons, with hundreds of thousands of people suffering catastrophic food shortages.



In addition to leaders from the 55 AU members states, U.N. Secretary-General Antonio Guterres and European Council President Charles Michel will attend the summit.



African leaders will advocate for permanent seats for the continent on the U.N. Security Council and among the G20 group of large economies, according to a draft of the summit&#8217;s conclusions.



They will also adopt a series of protocols aimed at accelerating full implementation of Africa’s new free trade area, under which trading officially began in 2021.



(Reporting by Giulia Paravicini; Editing by Aaron Ross and Aurora Ellis)

Cassava production in Kenya

Security and food crises expected to dominate African Union summit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/XQD7AXQBARMS5DGKDEXUIHJQ3E-820x546.jpg" alt="" class="wp-image-423110" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/XQD7AXQBARMS5DGKDEXUIHJQ3E-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/XQD7AXQBARMS5DGKDEXUIHJQ3E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/XQD7AXQBARMS5DGKDEXUIHJQ3E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/XQD7AXQBARMS5DGKDEXUIHJQ3E-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/XQD7AXQBARMS5DGKDEXUIHJQ3E-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/XQD7AXQBARMS5DGKDEXUIHJQ3E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016. REUTERS/Jason Lee/Illustration/File Photo</figcaption></figure>



WASHINGTON, Feb 13 (Reuters)&nbsp;&#8211;&nbsp;Officials from China, India, Saudi Arabia and Group of Seven nations will participate in a first virtual meeting of a new sovereign debt roundtable on Friday,&nbsp;the International Monetary Fund said&nbsp;on Monday,&nbsp;confirming an earlier Reuters report.



The roundtable will also include officials from countries that have requested debt treatments under the Group of 20 common framework &#8211; Ethiopia, Zambia and Ghana &#8211; as well as middle-income countries such as Sri Lanka, Suriname and Ecuador, which have faced their own debt crises,&nbsp;three&nbsp;sources&nbsp;had earlier said.



The meeting will be co-chaired by the&nbsp;IMF, the World Bank and India, the current leader of the Group of 20, and comes a week before G20 finance officials are due to gather in Bengaluru, India, from Feb. 23-25.&nbsp;An in-person meeting of the roundtable expected on Feb. 25 and a formal launch is planned at the IMF-World Bank spring meetings in April.



Brazil, which will lead the G20 next year, is also taking part, one of the sources said.



An IMF spokesperson confirmed the first roundtable meeting would take place on Friday, and said more details would be released in the near future.



&#8220;The objective is to bring together key stakeholders involved in sovereign debt restructuring, from traditional creditors from advanced economies, to new creditors like China, Saudi Arabia, India, as well as the private sector and debt countries to address the current shortcomings,&#8221; they said.



The roundtable will include the Paris Club of official creditors and private sector participants &#8211; the Institute of International Finance (IIF), the International Capital Markets Association and two private-sector financial institutions that have asked not to be identified, one of the sources said.



Creation of the body comes amid growing frustration about the slow pace of discussions on debt relief for Zambia, which first requested help two years ago. Organizers say the roundtable could help resolve issues in principle and will not focus on Zambia or other individual cases.



Officials hope to resolve China&#8217;s concerns about cutoff dates to protect new financing from debt restructuring by the end of the year, one of the sources said.



G7, International Monetary Fund and World Bank officials have long pushed for faster and broader efforts to deliver debt relief to heavily indebted nations to avoid cuts in social services that they fear could tip off social unrest.



U.S. Treasury Secretary Janet Yellen and other G7 officials see China, now the world&#8217;s largest sovereign creditor, as the main stumbling block for quicker work on debt treatments. They are also pushing for agreement by G20 members on expanding the common framework to include middle-income countries.



Eric LeCompte, executive director of the Jubilee USA Network, a coalition of religious, development and advocacy groups, said support for the matter was growing among other countries. But China’s opposition &#8211; and that of Russia &#8211; remained significant a “stumbling block,” he said.



“The majority of countries support expanding these policies to middle-income countries, but China is the biggest challenge,” LeCompte said, adding that Europe had gone through a similar period of reluctance on debt relief in the 1990s, but eventually came around.



Also on the agenda will be China&#8217;s repeated calls for World Bank and other multilateral development banks to participate in debt reductions &#8211; a proposal firmly rejected by U.S. officials, who argue that those lenders already offer highly concessional loans and grants to countries in crisis.



(Reporting by Andrea Shalal in Washington; editing by Karin Strohecker, Chizu Nomiyama, Leslie Adler and Lincoln Feast.)

FILE PHOTO: FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration

China, U.S. to participate in first meeting of new debt roundtable on Feb. 17

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/RH4CUMLZCFNHFE4A24HCPYL6WI-820x547.jpg" alt="" class="wp-image-423026" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/RH4CUMLZCFNHFE4A24HCPYL6WI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/RH4CUMLZCFNHFE4A24HCPYL6WI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/RH4CUMLZCFNHFE4A24HCPYL6WI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/RH4CUMLZCFNHFE4A24HCPYL6WI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/RH4CUMLZCFNHFE4A24HCPYL6WI.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Zimbabwe mines minister Winston Chitando speaks to Reuters at the Investing in African Mining Indaba 2023 conference in Cape Town, South Africa, February 8, 2023. REUTERS/Shelley Christians/File Photo</figcaption></figure>



CAPE TOWN, Feb 9 (Reuters)&nbsp;&#8211;&nbsp;Lithium-rich African countries, including Zimbabwe and Namibia, are trying to develop processing and refining industries to capture more of the profits of global demand for the battery material.



As the auto industry shifts towards electric vehicles (EVs) &#8211; spurred by proposed bans on fossil-fuel cars beginning at the end of the decade &#8211; lithium prices and demand have soared.



China, the world&#8217;s top lithium refiner and a leading producer dominates the supply chain, but Western governments and international companies are trying to challenge that and see Africa&#8217;s lithium reserves as an opportunity.



For their part, African countries are determined to retain more of the value of their resources than they have in the past, which means not just mining them but processing them before export, which economically is referred to as beneficiation.



&#8220;We are saying to ourselves, if you have got the minerals that everybody wants now, you need to make sure that at least you probably mine those minerals differently and not in the usual manner,&#8221; Namibia&#8217;s mines minister Tom Alweendo told Reuters in an interview at the Investing in African Mining Indaba in Cape Town.



&#8220;We are going to insist that all lithium mined within the country has to be processed in the country.&#8221;



Africa&#8217;s lithium production is set to rapidly increase this decade. From 40,000 tonnes this year, the continent will likely produce 497,000 tonnes in 2030, commodities trader Trafigura estimates, with the bulk of that coming from Zimbabwe.



Prices for lithium more than doubled last year as demand from the electric vehicle industry outstripped supply.



Zimbabwe in December imposed a ban on raw lithium exports, a measure aimed at stopping the smuggling of lithium ore and spurring mines to process in the country.



&#8220;We made plans to only allow the export of concentrates,&#8221; the country&#8217;s mining minister Winston Chitando told Reuters. &#8220;Because of the ban, other investors have come in wanting to mop up lithium ores and develop them to concentrate stage.&#8221;



<h2 class="wp-block-heading" id="h-poison-of-greed">&#8216;POISON OF GREED&#8217;</h2>



Mining has often been linked to the exploitation of workers or environmental degradation by foreign powers. In his visit to Democratic Republic of Congo, Pope Francis at the end of January condemned the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N34G0PP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">&#8220;poison of greed&#8221;</a>&nbsp;for mineral resources that has exacerbated conflict in the country&#8217;s east.



The latest effort by African governments is far from the first time they have resolved to retain more of the value of their mineral wealth, which ultimately should boost tax revenue, encourage new businesses and add jobs.



The global transition away from fossil fuels is giving a sense of urgency, although many obstacles remain, notably insufficient electricity supply.



As companies and investors around the world focus on goals to reduce carbon emissions and increase supplies of the minerals that should help, companies and investors are reconsidering projects they may have previously overlooked.



&#8220;These are really unique times we are living in, with this whole transition to a clean energy future and Ghana could be part of this story,&#8221; Len Kolff, interim chief executive officer at Atlantic Lithium&nbsp;ALLA.L, said.



The company&#8217;s Ewoyaa mine project is set to be the first lithium producer in the West African country. U.S. firm Piedmont Lithium has signed a deal to get 50% of the lithium produced.



&#8220;Everybody&#8217;s approaching us, like the whole who&#8217;s who on the Chinese list and now it&#8217;s all the Western OEMs [original equipment manufacturers],&#8221; Kolff said.



In Mali, Leo Lithium&#8217;s Goulamina mine plans to take advantage of high prices to export two 30,000-tonne shipments of lithium ore by the end of this year, managing director Simon Hay said.



The proceeds would help to develop the project to allow domestic processing, Hay said, with first production expected in the middle of next year to be sent to China&#8217;s Ganfeng Lithium.



($1 = 0.9319 euros)



(Reporting by Clara Denina, Wendell Roelf; additional reporting by Helen Reid; editing by Barbara Lewis)

RH4CUMLZCFNHFE4A24HCPYL6WI

Africa gears up to keep more of the profits from lithium boom

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="800" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/2MXN6XE4QNPZXJUMKTE4M2Q5N4-800x800.jpg" alt="" class="wp-image-422988" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/2MXN6XE4QNPZXJUMKTE4M2Q5N4-800x800.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/2MXN6XE4QNPZXJUMKTE4M2Q5N4-300x300.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/2MXN6XE4QNPZXJUMKTE4M2Q5N4-90x90.jpg 90w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/2MXN6XE4QNPZXJUMKTE4M2Q5N4-768x768.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/2MXN6XE4QNPZXJUMKTE4M2Q5N4-1536x1536.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/2MXN6XE4QNPZXJUMKTE4M2Q5N4.jpg 1920w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">People shop in a supermarket as rising inflation affects consumer prices in Los Angeles, California, U.S., June 13, 2022. REUTERS/Lucy Nicholson/File Photo</figcaption></figure>



LONDON, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Shoppers around the world will pay even more for groceries this year than they did in 2022, according to retailers, consumer goods firms and investors, unless commodity costs decline or the shift to cheaper store-brand products accelerates.



Retailers and consumer goods producers have been stuck in tough price negotiations for more than a year now, with friction beginning in 2021 over COVID-related supply chain logjams.



This has since ballooned into fights over the high cost of raw materials and energy in the wake of Russia&#8217;s invasion of Ukraine, with rising prices of basic foodstuffs from bread to milk and meat exacerbating a cost-of-living crisis in Europe.



Britons paid a record 16.7% more for food in the four weeks to Jan. 22 compared to the same period last year, according to research firm Kantar. The U.S. food index, including meals eaten at home and in cafes and restaurants, increased 10.4% for the year ended in December.



Mark Schneider, CEO of the world&#8217;s biggest food group Nestle,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AP:5038908093&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">last week told</a>&nbsp;a German newspaper it would have to raise prices of its food products further this year to offset higher production costs that it has yet to fully pass on to consumers.



&#8220;Investors will pay a premium for companies that exhibit pricing power in their portfolio without adversely impacting volumes and market share,&#8221; Jack Martin, a fund manager at Oberon Investments, said.



Big, packaged-goods companies&#8217; margins have been squeezed by higher input costs for over a year as the price of ingredients like wheat and sunflower oil have skyrocketed since the Ukraine war began last February.



Unilever&nbsp;ULVR.L, which is due to report full-year results on Thursday, said in October that its underlying price growth &#8211; an indicator of pricing &#8211; rose to a record 12.5% in the third quarter. Nestle and dairy giant Danone&nbsp;DANO.PA&nbsp;are due to report results later this month.



Tineke Frikkee, a portfolio manager at Waverton Investment Management, expects Unilever to hike prices in 2023, though selectively.



&#8220;The last time we heard from Unilever, it was made clear that they prefer to sell fewer products at higher prices, to keep prices below peers and gain market share,&#8221; Frikkee said.



<h2 class="wp-block-heading" id="h-retailer-pushback">RETAILER PUSHBACK</h2>



Consumer goods manufacturers &#8211; will continue to raise prices until they recover their profitability, said Bernstein analyst Bruno Monteyne.



&#8220;The only thing that can stop this is&#8230;consumers starting to trade down to private-label products at a more rapid pace &#8230; (and) if commodities keep declining, then there may be no need for more price increases.&#8221;



In December, the CEO of Walmart&nbsp;WMT.N, the world&#8217;s biggest retailer, warned that some &#8220;packaged goods suppliers are still pointing us towards more inflation next year on top of the mid-double digits this year&#8221;.



&#8220;Dry grocery and consumables have double-digit to mid-double-digit inflation that feels stubborn to us,&#8221; Doug McMillon said, adding that suppliers were being encouraged to focus on &#8220;the longer term with us&#8221;.



European retailers are also&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N34G488&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">pushing back.</a>



&#8220;With the big suppliers, we do insist on long-term contracts that do not have to be renegotiated,&#8221; Belgian discount retailer Colruyt&nbsp;COLR.BR&nbsp;told Reuters.



Britain&#8217;s biggest supermarket group Tesco&nbsp;TSCO.L&nbsp;and Kraft Heinz&nbsp;KHC.O&nbsp;last year&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2YP2TK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">could not agree</a>&nbsp;on prices for some brands, resulting in several products disappearing from shelves. This month, Unilever&#8217;s&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N34H105&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Hellmann&#8217;s mayonnaise</a>&nbsp;was discontinued in South African stores due to cost inflation.



Tesco CEO Ken Murphy&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL9N325001&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said last month</a>&nbsp;he was hopeful inflation would peak by mid-2023 and then start to ebb.



Barclays analyst Warren Ackerman said although food commodity prices on average were down 20% from March peaks, it will take time for this to reflect in companies&#8217; costs.



(Reporting by Richa Naidu in London. Additional reporting by Jessica DiNapoli in New York and James Davey in London; Editing by Matt Scuffham and Emelia Sithole-Matarise)

2MXN6XE4QNPZXJUMKTE4M2Q5N4

Shoppers to face fresh price hikes as stores, suppliers pass on costs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="489" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/32JLL6XQNRMRVEAJDAIJCIRWUI-820x489.jpg" alt="" class="wp-image-414710" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/32JLL6XQNRMRVEAJDAIJCIRWUI-820x489.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/32JLL6XQNRMRVEAJDAIJCIRWUI-300x179.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/32JLL6XQNRMRVEAJDAIJCIRWUI-151x90.jpg 151w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/32JLL6XQNRMRVEAJDAIJCIRWUI-768x458.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/32JLL6XQNRMRVEAJDAIJCIRWUI-1536x916.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/32JLL6XQNRMRVEAJDAIJCIRWUI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard&#8217;s games characters in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



CAPE TOWN, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Microsoft visited an artisanal cobalt mine in Democratic Republic of Congo in December as part of attempts to jump-start formalisation of the little-regulated and dangerous industry that experts say is key to meeting global demand for the battery material.



Congo accounts for three-quarters of the world&#8217;s mined cobalt supply. Industrial mines produce most of Congo&#8217;s cobalt, but &#8220;artisanal&#8221; miners, who dig by hand and often die when tunnels cave in, account for up to 30% of production, though that fluctuates depending on price.



In the first known visit by a Microsoft&nbsp;MSFT.O&nbsp;executive to an artisanal cobalt site in Congo, chief of staff for tech and corporate responsibility Michele Burlington met miners at Mutoshi, where commodities trader Trafigura had helped run a formalisation scheme that ended in 2020.



Companies that use cobalt in products from electric cars to smartphones should work to improve conditions at artisanal mines instead of seeking to cut artisanal cobalt out of their supply chains, an independent&nbsp;<a href="https://gcbhr.org/insights/" target="_blank" rel="noreferrer noopener">report</a>&nbsp;on the visit argued on Wednesday.



&#8220;Electric vehicle manufacturers and electronics companies are operating with one eye open and one eye closed,&#8221; said Dorothee Baumann Pauly, director of the Geneva Center for Business and Human Rights, who wrote the report.



&#8220;In practice it is virtually impossible for them to completely exclude artisanal cobalt, especially when it is sent to smelters and refiners in DRC and China.&#8221;



Microsoft declined to reply to Reuters&#8217; questions about the visit or about its strategy on artisanal cobalt. In the report, Microsoft said that it is &#8220;committed to responsible and ethical sourcing&#8221;.



&#8220;We are continuing to work on this problem. It&#8217;s an issue that will take a coalition to solve,&#8221; the $1.9 trillion computer manufacturer and software company said.



As consumers become more concerned that the products they buy are tainted by poor working conditions or child labour, global tech firms and carmakers have been using less mined cobalt in their batteries by increasing recycling and switching to lower-cobalt chemistries.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2WG16T&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Apple, for example, aims to massively reduce its use of all materials sourced directly from mines, and has said that 13% of the cobalt shipped in its products in 2021 came from recycling.



The issues around artisanal mining are an existential threat to the cobalt industry, according to Marina Demidova, head of communications at the Cobalt Institute. &#8220;If we get this wrong, cobalt probably will cease to be in batteries in 20 years&#8217; time.&#8221;



So far, attempts to formalise the industry have fallen flat.



Trafigura and Congo mining firm Chemaf&#8217;s formalisation scheme at Mutoshi, launched in 2018, ended abruptly in March 2020 with the coronavirus pandemic. Now diggers work in deep tunnels with no personal protective equipment, and women miners said they make less money than before, according to the report.



Entreprise Generale du Cobalt, a unit of state mining company Gecamines, was granted a monopoly on artisanal cobalt by government decree. EGC signed a supply deal with Trafigura in November 2020 and published a sourcing standard, but has yet to start buying cobalt due to political wrangling.



&#8220;Greater stakeholder engagement, including from global buyers, will help to overcome this impasse,&#8221; Baumann-Pauly said.



(Reporting by Helen Reid and Clara Denina; Editing by Stephen Coates)

Illustration of Microsoft and Activision Blizzard game characters

Microsoft calls for ‘coalition’ to improve Congo’s informal cobalt mines

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="468" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/CSMPDCLAIVJNDJG6CWBH2RSYLY.jpg" alt="" class="wp-image-422976" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/CSMPDCLAIVJNDJG6CWBH2RSYLY.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/CSMPDCLAIVJNDJG6CWBH2RSYLY-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/CSMPDCLAIVJNDJG6CWBH2RSYLY-140x90.jpg 140w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A worker walks near the Congolese state mining company Gecamines&#8217; copper concentrator at its Kambove operation in the southern province of Katanga, File. REUTERS/Jonny Hogg//File Photo</figcaption></figure>



CAPE TOWN, Feb 7 (Reuters)&nbsp;&#8211;&nbsp;Congo&#8217;s state mining company Gecamines plans to explore for minerals needed for the transition to a lower carbon economy, including lithium, tin, and rare earths, chairman Alphonse Kaputo Kalubi said on Tuesday.



Gecamines, which ranked among the world&#8217;s top copper and cobalt producers in the 1980s, also aims to boost production and &#8220;play in the big leagues&#8221; again, Kaputo said in a speech at the Investing in African Mining Indaba in Cape Town.



Gecamines, whose production peaked in 1986 at 486,000 tonnes of copper, wants to raise output to 100,000 tonnes of copper a year, Kaputo said. Gecamines produced 4,562 tonnes of copper and 19,907 tonnes of cobalt in 2022, provisional statistics from Congo&#8217;s central bank showed.



&#8220;Our geologists will aim to organise prospection campaigns on all our sites to look for lithium, tin, cobalt, coltan, titanium, wolframite, gold, rare earths, etcetera,&#8221; Kaputo said, as part of efforts to diversify Gecamines&#8217; activities.



He invited investors to speak to Gecamines about &#8220;win-win partnerships&#8221; to exploit those metals.



Among the obstacles Gecamines faces are artisanal miners working illegally on the sites it owns, Kaputo said, adding that these wildcat miners &#8220;sell all their minerals to foreign buyers&#8221;.



Congo loses untold fortunes through the smuggling of resources including gold and tin, tantalum, and tungsten ores.



Industrial mines must systematically plan to work alongside artisanal miners, where possible, Kaputo said.



&#8220;That is crucial, as we can no longer tolerate the disgraceful conditions in which artisanal diggers work, and we can no longer tolerate that our state and Gecamines, whose concessions are illegally exploited, be robbed of their riches,&#8221; Kaputo said.



(Reporting by Helen Reid; editing by Barbara Lewis)

FILE PHOTO: Worker walks near the Congolese state mining company Gecamines’ copper concentrator at its Kambove operation in the southern province of Katanga

Congo’s Gecamines seeks to diversify into ‘transition’ minerals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182839-1674556985498-gettyimages-1239230506-AA_16032022_652615-820x461.jpeg" alt="" class="wp-image-422964" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182839-1674556985498-gettyimages-1239230506-AA_16032022_652615-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182839-1674556985498-gettyimages-1239230506-AA_16032022_652615-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182839-1674556985498-gettyimages-1239230506-AA_16032022_652615-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182839-1674556985498-gettyimages-1239230506-AA_16032022_652615-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182839-1674556985498-gettyimages-1239230506-AA_16032022_652615-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182839-1674556985498-gettyimages-1239230506-AA_16032022_652615.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A copper master and his copper products at the Coppersmith Bazaar in Baghdad, Iraq on March 15, 2022. Murtadha Al-Sudani | Anadolu Agency | Getty Images</figcaption></figure>



A copper deficit is set to inundate global markets throughout 2023 — and one analyst predicts the shortfall could potentially extend throughout the rest of the decade.



The world is currently facing a global copper shortage, fueled by increasingly challenging supply streams in South America and higher demand pressures.



Copper is a leading pulse check for economic health due to its incorporation in various uses such as electrical equipment and industrial machinery.



A copper squeeze could be an indicator that global inflationary pressures will worsen, and subsequently compel central banks to maintain their hawkish stance for longer.



“We’re already forecasting major deficits in copper to 2030,” said Wood Mackenzie’s Vice President of Metals and Mining, Robin Griffin. He attributed it largely to ongoing unrest in Peru and higher demand for copper in the energy transition industry.



“Anytime there’s political unrest it has a whole range of effects. And the obvious one … is the potential for mining sites to have to close,” he added.&nbsp;



<h2 class="wp-block-heading" id="h-unrest-in-peru"><a></a>Unrest in Peru</h2>



Peru has been rocked by protests since former President Pedro Castillo was ousted in December in an impeachment trial. The South American nation accounts for 10% of the global copper supply. 



Glencore announced Jan. 20 it was suspending operations in its Antapaccay copper mine located in Peru, after protesters looted and set fire to its premises.



Additionally, Chile — the world’s largest copper producer which accounts for 27% of global supply — recorded a year-on-year decline of 7% in November.



“Overall we believe Chile will likely produce less copper from 2023 to 2025,” Goldman Sachs wrote in a separate note dated Jan 16.



However, one market watcher cautioned against getting too caught up in the headlines.



“It’s typical to see disruptions and I don’t think we’re necessarily seeing any more than normal,” said Timna Tanners, managing director at Wolfe Research, who forecasts that 2023 should see an increase in several new mines.&nbsp;



Copper futures settled at $4.035 per pound on Monday, according to CME data. The metal hit a low of $3.9930, its lowest level since Jan. 10 when it traded as low as $3.9875.



<h2 class="wp-block-heading"><a></a>Coping with copper consumption</h2>



The reopening of China and growth in the automotive and energy transition industry have stoked demand for the red metal, putting further strain on copper resources.



“China’s reopening has a major impact on copper’s price as this improves [its] demand outlook and will push copper prices even higher due to the supply shortage, at the back of the clean energy transition which makes mining harder,” said Tina Teng, market analyst at CMC Markets. 



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182817-1674552166972-gettyimages-642168712-PERU_COPPER_SMELTER.jpeg" alt="" class="wp-image-422965" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182817-1674552166972-gettyimages-642168712-PERU_COPPER_SMELTER.jpeg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182817-1674552166972-gettyimages-642168712-PERU_COPPER_SMELTER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107182817-1674552166972-gettyimages-642168712-PERU_COPPER_SMELTER-160x90.jpeg 160w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Molten copper pours into ceramic molds to form plates at the Southern Copper Corp. smelter facility in Ilo, Peru, on Jan. 30, 2017. Dado Galdieri | Bloomberg | Getty Images</figcaption></figure>



Beijing’s rollback of stringent zero Covid policies are expected to quicken the country’s economic recovery, as well as pent-up Chinese demand. Commodity prices have seen strong gains since December when China announced plans to lift a slew of Covid measures.



“The deficit may last till a potential global economic recession caused by the current headwinds, by 2024 to 2025,” Teng added, forecasting that by then, copper prices might double.



However, Tanners from Wolfe Research said she’s not expecting a “huge spurt” of activity and consumption of copper as China hums back to life.



“Copper consumption in particular really didn’t slow down in 2022. Factories were still running, government stimulus and infrastructure was still chugging along,” she explained.



However, she added that the broader electrification phenomenon will likely be a bigger fundamental driver for copper demand.



“You can’t see electric vehicles take off before you get the charging infrastructure, and the electrification [which is] necessary, is actually much more copper intensive.”



Copper features heavily in electricity-related technologies, and by extension energy transition proposals.



Sales of electric cars in 2021 more than doubled to bring the total number of EVs in the world around 16.5 million, according to the International Energy Agency. That means the EV-charging ecosystem will have to be ramped up.



“There’s a longer term issue around the supply of copper in the energy transition [industry], because the growth in both the automotive and transmission is going to be huge,” said Wood Mackenzie’s Griffin.

107182839-1674556985498-gettyimages-1239230506-AA_16032022_652615

There isn’t enough copper in the world — and the shortage could last till 2030

<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107189168-1675640539119-gettyimages-1243796602-AVaishnav_Skyline_view_in_Mumbai_1.webp" alt="" class="wp-image-422930" width="840" height="472" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107189168-1675640539119-gettyimages-1243796602-AVaishnav_Skyline_view_in_Mumbai_1.webp 630w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107189168-1675640539119-gettyimages-1243796602-AVaishnav_Skyline_view_in_Mumbai_1-300x169.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/107189168-1675640539119-gettyimages-1243796602-AVaishnav_Skyline_view_in_Mumbai_1-160x90.webp 160w" sizes="auto, (max-width: 840px) 100vw, 840px" /><figcaption class="wp-element-caption">MUMBAI, MAHARASHTRA, INDIA &#8211; 2022/10/06: People are seen taking photos of the City of Mumbai skyline. (Photo by Ashish Vaishnav/SOPA Images/LightRocket via Getty Images) Sopa Images | Lightrocket | Getty Images</figcaption></figure>



Stocks in the Asia-Pacific mostly fell on Monday as a stronger-than-expected&nbsp;<a href="https://www.cnbc.com/2023/02/03/jobs-report-january-2023-.html">jobs report</a>&nbsp;from the U.S. worrying investors the Federal Reserve has room for more interest rate hikes, as it continued its&nbsp;<a href="https://www.cnbc.com/2023/02/01/fed-rate-decision-february-2023-quarter-point-hike.html">efforts</a>&nbsp;to control inflation.



Hong Kong’s&nbsp;<a href="https://www.cnbc.com/quotes/.HSI/">Hang Seng index</a>&nbsp;fell 2.2% as property and technology stocks led losses. The&nbsp;<a href="https://www.cnbc.com/quotes/.SZI/">Shenzhen Component</a>&nbsp;shed 1.25% and the&nbsp;<a href="https://www.cnbc.com/quotes/.SSEC/">Shanghai Composite</a>&nbsp;also lost 0.9%.



In South Korea, the&nbsp;<a href="https://www.cnbc.com/quotes/.KS11/">Kospi</a>&nbsp;in South Korea fell 1.7% to 2,438.19 and the Kosdaq lost 0.71% to 761.33. The&nbsp;<a href="https://www.cnbc.com/quotes/.AXJO/">S&amp;P/ASX 200</a>&nbsp;fell 0.25% to 7,539.00. Japan’s&nbsp;<a href="https://www.cnbc.com/quotes/.N225/">Nikkei 225</a>&nbsp;bucked the trend and gained 0.67% to 2,7693.65 and the Topix rose 0.45% to 1,979.22.



The Nifty 50 in India shed 0.64% and the S&amp;P Sensex fell 0.66% as stocks of Adani Group mostly fell as allegations of stock manipulation and accounting fraud raised by Hindenburg raises concerns of spillover effects on wider Indian markets and Wall Street lenders.



The&nbsp;<a href="https://www.bloomberg.com/billionaires/profiles/gautam-s-adani/" target="_blank" rel="noreferrer noopener">Bloomberg Billionaires Index</a>&nbsp;showed founder and chairman Gautam Adani’s net worth further on Friday, as his net worth fell by more than 51.1%, or $61.6 billion, year-to-date.



<figure class="wp-block-table"><table><thead><tr><th>TICKER&nbsp;</th><th>COMPANY&nbsp;</th><th>NAME&nbsp;</th><th>PRICE&nbsp;</th><th>CHANGE&nbsp;</th><th>%CHANGE&nbsp;</th></tr></thead><tbody><tr><td><a href="https://www.cnbc.com/quotes/.N225">.N225</a></td><td>Nikkei 225 Index</td><td>*NIKKEI</td><td>27693.65</td><td>184.19</td><td>0.67</td></tr><tr><td><a href="https://www.cnbc.com/quotes/.HSI">.HSI</a></td><td>Hang Seng Index</td><td>*HSI</td><td>21196.65</td><td>-463.82</td><td>-2.14</td></tr><tr><td><a href="https://www.cnbc.com/quotes/.AXJO">.AXJO</a></td><td>S&amp;P/ASX 200</td><td>*ASX 200</td><td>7539</td><td>-19.1</td><td>-0.25</td></tr><tr><td><a href="https://www.cnbc.com/quotes/.SSEC">.SSEC</a></td><td>Shanghai</td><td>*SHANGHAI</td><td>3236.63</td><td>-26.77</td><td>-0.82</td></tr><tr><td><a href="https://www.cnbc.com/quotes/.KS11">.KS11</a></td><td>KOSPI Index</td><td>*KOSPI</td><td>2438.19</td><td>-42.21</td><td>-1.7</td></tr><tr><td><a href="https://www.cnbc.com/quotes/.FTFCNBCA">.FTFCNBCA</a></td><td>CNBC 100 ASIA IDX</td><td>*CNBC 100</td><td>8540.12</td><td>-215.59</td><td>-2.46</td></tr></tbody></table></figure>



Stocks on Wall Street fell on Friday, after the jobs report, and the 10-year Treasury yield&nbsp;<a href="https://www.cnbc.com/2023/02/03/us-treasury-yields-investors-await-key-labor-market-data.html">topped 3.5% after jumping more than 12 basis points</a>&nbsp;following the report.



<a href="https://www.cnbc.com/quotes/AAPL/">Apple</a>&nbsp;shares&nbsp;<a href="https://www.cnbc.com/2023/02/02/stock-futures-fall-after-earnings-reports-from-apple-alphabet-disappoint-investors.html">jumped 2.4%</a>&nbsp;as the company reported a drop in sales in largest quarterly revenue decline since 2016,&nbsp;<a href="https://www.cnbc.com/2023/02/02/alphabet-googl-earnings-q4-2022.html">Google-parent Alphabet</a>&nbsp;fell 2.8% following disappointing results. Amazon’s stock also declined 8.4% in its worst day since April after its earnings<a href="https://www.cnbc.com/2023/02/02/amazon-amzn-earnings-q4-2022.html">&nbsp;report</a>.



— CNBC’s Sarah Min, Jesse Pound, Jeff Cox contributed to this report

107189168-1675640539119-gettyimages-1243796602-AVaishnav_Skyline_view_in_Mumbai_1

Asia markets mostly fall as U.S. jobs report show room for more hikes; Adani saga continues

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="492" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/trafigura-mid-downstream-supply-26446-820x492.jpg" alt="" class="wp-image-422785" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/trafigura-mid-downstream-supply-26446-820x492.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/trafigura-mid-downstream-supply-26446-300x180.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/trafigura-mid-downstream-supply-26446-150x90.jpg 150w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/trafigura-mid-downstream-supply-26446-768x461.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/trafigura-mid-downstream-supply-26446-1536x922.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/trafigura-mid-downstream-supply-26446.jpg 2000w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Image : Trafigura.com</figcaption></figure>



High costs and the prospect of shrinking earnings have made big miners nervous about expansion, even as shareholders demand investment in response to robust commodity prices, China&#8217;s reopening and the role of minerals in decarbonising the economy.



Although years of cost discipline have repaired balance sheets from past over-spending, full-year results announcements in February are expected to show a fall in miners&#8217; earnings and in shareholder payouts from the record levels reported in 2022 after disruptions lowered output and costs rose for energy, explosives and equipment.



Disruptions at copper mines caused by extreme weather and labour issues, for example, are predicted to worsen, likely affecting a record 1.6 million tonnes of production this year, Goldman Sachs analysts say, a headache for companies hunting for minerals to power the green energy boom as their deposits get depleted.



&#8220;Having cut back on CapEx and spending, mining companies are fine in the short term, but if they look a few years forward, they need to start developing more growth options,&#8221; George Cheveley, portfolio manager at Ninety-One, said.



&#8220;It is an increasing issue, because if you haven&#8217;t been spending a lot on development or cut back, as they all have since prices fell in 2015-16, you can&#8217;t do that forever and expect to continue to grow,&#8221; he added.



Capital spending by mining companies is set to decrease 11% in 2023, with exploration spending likely to fall by 10%-20%, according to S&amp;P Global Commodity Insights&#8217; principal metals and mining analyst Kevin Murphy.



Despite the vast volumes of copper, lithium, nickel and cobalt needed for the transition to a lower-carbon economy, the majors have limited plans to develop mines that take several years to turn a profit.



Among the more bullish CEOs, Mark Bristow of Barrick Gold said mining companies should spend more on exploration to ensure a solid pipeline of mines, despite the global economy being &#8220;extremely stressed&#8221;.



&#8220;The first thing the mining industry does when it&#8217;s under pressure is to stop spending. But at the end of the day, the best time to grow your business is in the trough,&#8221; Bristow said.



Some companies have preferred to grow through acquisitions, investing in projects belonging to smaller developers.



The world&#8217;s largest listed mining company BHP GroupBHP.AX has in the past months bought 20% of Canadian exploration company Brixton Metals BBB.V and signed a deal with Canada&#8217;s Mundoro Capital MUN.V to explore for copper in Serbia.



It has also made a $6.5 billion cash offer for copper and gold producer OZ Minerals OZL.AX.



A difficult economic backdrop could boost deal-making, which represents an opportunity for the stronger players wanting to acquire proven assets and smaller players seeking to cash in.



&#8220;It could be a really interesting catalyst for M&amp;A, because there could be a softening in share prices if people really don&#8217;t believe in the fundamentals,&#8221; said Sandra du Toit, who leads the Africa M&amp;A practice at Ernst &amp; Young.



AFRICAN RESOURCES TEMPTING BUT TRICKY



Aside from China, where the lifting of protracted COVID-19 restrictions is expected to drive demand for metals, the main engines of global growth &#8211; the United States and Europe &#8211; will slow this year, according to the IMF and World Bank, despite signs of stabilising inflation.



The economic contraction makes &#8220;unlocking African mining investment&#8221; &#8211; this year&#8217;s theme for the Investing in African Mining Indaba conference in Cape Town at the start of February &#8211; an even more challenging goal.



Mining companies&#8217; overall spending on exploration in Africa has declined relative to Australia, Canada and Latin America.



Last year, the share of exploration budgets dedicated to Africa was the smallest since at least 1997, S&amp;P Global Commodity Insights data shows.



Much of that decline is due to small mine developers shifting from Africa, while major producers increased their share of spending on the continent last year, according to S&amp;P&#8217;s Murphy.



Major miners have long been wary of the continent because of its risk profile, but a drive by the United States and Europe to reduce their dependence on China, which dominates the processing of battery minerals, is persuading companies to reconsider.



Anglo American AAL.L in May took control of the Zambia copper-cobalt licences of junior exploration firm Arc Minerals ARCMA.L, while the European Union partnered with Namibia as one of the countries it hopes will help its battery sector build-out.



&#8220;There are not a lot of regions with quality ore bodies yet to be exploited,&#8221; said Kostas Bintas, co-head of metals at global commodities trader Trafigura.



&#8220;Africa, and especially Democratic Republic of Congo and Zambia, still has untapped high-quality copper deposits with relatively high grades. DRC and Zambia are two countries where you can increase copper supply significantly to meet demand.&#8221;

trafigura-mid-downstream-supply-26446

Squeezed mining companies face growth dilemma

<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>



Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks fell on Monday, as Indian shares dipped after Adani group companies extended losses and Hong Kong stocks retreated, while Nigerian government bonds dropped after a Moody&#8217;s ratings downgrade for the West African nation.



The MSCI&#8217;s index for emerging market stocks&nbsp;.MSCIEF&nbsp;fell 0.6% at 1024 GMT.



In India, most Adani group shares extended their sharp drop as the conglomerate&#8217;s rebuttal of a U.S. short-seller&#8217;s criticism failed to pacify investors, driving stock market losses for the companies to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N34F06L&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">$70 billion</a>&nbsp;over three days.



Meanwhile, Hong Kong&#8217;s Hang Seng index&nbsp;.HSI&nbsp;ended 2.7% lower, after two days of sharp gains.



Chinese stocks&nbsp;.SSEC&nbsp;closed higher, as markets resumed trading after a week-long Lunar New Year break, while Taiwan shares&nbsp;.TWII&nbsp;hit their highest since late June.



Emerging market stocks have rallied nearly 9% since the start of this year, outperforming their currency counterparts.



&#8220;We saw the emerging markets rally over the past month and the scandal in Adani raises the question that were these valuations a bit exaggerated or not,&#8221; said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.



&#8220;We could see a bit of a contagion in EM stocks but I don&#8217;t think it will be a game changer.&#8221;



Emerging market currencies&nbsp;.MIEM00000CUS&nbsp;gained slightly, rising 0.3%.



In central and eastern Europe, the Hungarian forint&nbsp;EURHUF=&nbsp;slid 0.3% against the euro after credit ratings agency S&amp;P cut Hungary&#8217;s long- and short-term foreign and local currency ratings to &#8216;BBB-/A-3&#8217; from &#8216;BBB/A-2&#8217; on Friday.



Israel&#8217;s shekel&nbsp;ILS=&nbsp;fell nearly 1% on&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N34C14D&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">jitters</a>&nbsp;over planned judiciary changes by the country&#8217;s new hard-right government and fears of escalating conflict with Palestine.



The Pakistani rupee&nbsp;PKR=PK&nbsp;hit a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N34F0GB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">record low</a>, extending its sharp fall since an artificial cap on the currency was lifted last week to move it to a market-based exchange rate.



Elsewhere, Nigeria&#8217;s sovereign dollar-denominated bonds&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N34F27E&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">fell heavily</a>&nbsp;after ratings agency Moody&#8217;s downgraded the West African oil producer late on Friday to Caa1 from B3, citing the government&#8217;s deteriorating fiscal and debt position.



Moody&#8217;s also downgraded Tunisia&#8217;s ratings to CAA2 with a negative outlook, adding that it reflects the view that probability of default may rise beyond what is consistent with the rating.



For GRAPHIC on emerging market FX performance in 2023, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2023, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets <a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Rashmi Aich)

Stocks slide on Adani rout; Nigeria bonds tumble on Moody’s downgrade

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1243921774-820x547.jpg" alt="" class="wp-image-422685" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1243921774-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1243921774-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1243921774-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1243921774-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1243921774-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1243921774-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">WASHINGTON, DC &#8211; OCTOBER 12: U.S. Treasury Secretary Janet Yellen speaks at the Bretton Woods Committees International Council on the third day of the IMF and World Bank Annual Meetings at IMF headquarters October 12, 2022 in Washington, DC. On Tuesday, the International Monetary Fund downgraded its forecast for the global economy, saying it expects 2.7% global growth next year. (Photo by Drew Angerer/Getty Images)</figcaption></figure>



HAMMANSKRAAL, South Africa, Jan 25 (Reuters)&nbsp;&#8211;&nbsp;The U.S. Treasury Department and South Africa’s National Treasury on Wednesday agreed to form a task force to combat illicit finance linked to the illegal wildlife trade, U.S. Treasury Secretary Janet Yellen said.



Speaking at the Dinokeng Game Reserve outside Pretoria, Yellen told South African officials that the new task force aims to boost information sharing between the two country&#8217;s financial intelligence units and to strengthen controls to combat money laundering and terrorist financing.



The move comes amid South African media reports that the Paris-based Financial Action Task Force (FATF), which sets standards on combating money laundering and wildlife trafficking, could add South Africa to its grey list when it meets in February 2023.



Grey-listed countries are subject to greater monitoring by the FATF on concern they are at higher risk for money laundering and terrorist financing.



Yellen said the U.S. Treasury already worked to provide information on wildlife trafficking to law enforcement partners, and had also worked alongside South Africa with FATF to identify indicators associated with money laundering and wildlife trafficking.



&#8220;Through closer collaboration to target illicit proceeds linked to wildlife trafficking, as well as overlapping criminal activity like corruption, fraud, and drug trafficking, we are taking a step in the right direction today,&#8221; Yellen said after touring the game preserve, which has suffered from poaching of wild animals, including rhinoceros.



&#8220;To make an impact against this harmful crime and the illicit financing that accompanies it, we must use this as an opportunity to build a consistent and durable approach,&#8221; Yellen said.



(Reporting by Andrea Shalal; Editing by Sharon Singleton)

IMF And World Bank Hold Annual Meetings In Washington, DC

U.S., South Africa form task force to combat wildlife trafficking – Yellen

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/7WOD5OCAGFMXDOV36YC7LPI7JI-820x547.jpg" alt="" class="wp-image-422681" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/7WOD5OCAGFMXDOV36YC7LPI7JI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/7WOD5OCAGFMXDOV36YC7LPI7JI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/7WOD5OCAGFMXDOV36YC7LPI7JI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/7WOD5OCAGFMXDOV36YC7LPI7JI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/7WOD5OCAGFMXDOV36YC7LPI7JI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/7WOD5OCAGFMXDOV36YC7LPI7JI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Mo Ibrahim, CEO of Mo Ibrahim Foundation, arrives at the &#8220;Tech for Good&#8221; Summit in Paris, France May 15, 2019. Picture taken May 15, 2019. REUTERS/Charles Platiau</figcaption></figure>



JOHANNESBURG, Jan 25 (Reuters)&nbsp;&#8211;&nbsp;Africa must fight against a slide towards strongman authoritarianism that has resulted in a series of military coups and a clampdown on civil society in many countries, Sudanese-British billionaire Mo Ibrahim said.



Ibrahim&#8217;s foundation launched its Index of African Governance (IIAG) on Wednesday, which warned that advances in human development and economic opportunities were undermined by worsening security and widespread democratic backsliding.



The study, which measured progress over the past decade on topics ranging from health and education to security and the rule of law, found that overall governance has flatlined since 2019.



Much of Africa, it said, is less safe, secure and democratic



now than in 2012.



While many of the external shocks crippling the continent economically and socially in recent years were outside of Africans&#8217; control, in an interview ahead of the report&#8217;s release, Ibrahim lamented what he called &#8220;an own goal&#8221;.



&#8220;We did not cause climate change, but we are hit by it. We did not start the war in Ukraine, but we&#8217;re hit by that. We did not start COVID, but we get hit by that. Then we have bad governance. We&#8217;re responsible for it,&#8221; he said.



Bright spots, according to data compiled by the foundation, include major progress in infrastructure construction across the continent, improved equality for women, and advances in health, education and environmental sustainability since 2012.



But that period has also witnessed worsening conflicts, particularly in West Africa&#8217;s Sahel region, and political instability.



Ibrahim, who made his fortune in African telecommunications, said Africa was being swept up in a global authoritarian revival.



&#8220;We had &#8216;Make America Great Again&#8217;. You have Turkey, Hungary, Russia, Syria, China. It&#8217;s all around us,&#8221; he said.



&#8220;We started to see coups d&#8217;etat, which we thought was something in the past. We started to see this phenomenon of the strongman &#8230; It&#8217;s something we need to fight back against.&#8221;



Military officers have seized political control in countries including Mali, Guinea, Burkina Faso and Sudan. Traditional pressure in the form of sanctions and political isolation has largely failed to dislodge them.



But Ibrahim said that, despite what he termed the current &#8220;sad place globally&#8221; for democratic values, he remained optimistic.



&#8220;I put my faith in the young people. Look at those young kids in Sudan,&#8221; he said.



&#8220;For three years now they&#8217;re in streets. They want democracy, freedom, things they&#8217;ve never experienced in their lives. When I see those guys, I have hope.&#8221;



(Reporting by Joe Bavier; Editing by Nick Macfie)

FILE PHOTO: Arrivals at the “Tech for Good” Summit in Paris

Africa must fight ‘strongman’ backslide, billionaire Ibrahim says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="555" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1455561380-820x555.jpg" alt="" class="wp-image-422641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1455561380-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1455561380-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1455561380-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1455561380-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1455561380-1536x1039.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1455561380-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">WASHINGTON, DC &#8211; JANUARY 10: U.S. Treasury Secretary Janet Yellen meets with Deputy Prime Minister and Finance Minister of Canada Chrystia Freeland at the Department of the Treasury on January 10, 2023 in Washington, DC. Secretary Yellen agreed to stay on as Treasury Secretary following a request from President Biden. (Photo by Kevin Dietsch/Getty Images)</figcaption></figure>



LUSAKA, Jan 24 (Reuters)&nbsp;&#8211;&nbsp;U.S. Treasury Secretary Janet Yellen&#8217;s three-country trip to Africa &#8211; the leading edge of a new diplomatic push by the Biden administration &#8211; aims to show the continent the United States is a true partner, one here for the long-haul.



But after decades of losing ground to China and the tumult of&nbsp;the Donald&nbsp;Trump years, when the former president threatened to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AKBN2030PV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">slash aid</a>&nbsp;and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AKBN28F04C&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">roll back military support</a>, it is a tough sell.



As Africa struggles with economic headwinds caused by the&nbsp;COVID-19&nbsp;pandemic, the war in Ukraine and, notably, Washington&#8217;s own monetary policy, Africans are asking for proof the United States will stay the course this time.



Yellen, so far, is at pains to make guarantees.



&#8220;I don&#8217;t know how I can give assurances, honestly,&#8221; she told Reuters in an interview en route from Senegal to Zambia. But Republicans and Democrats alike support long-standing initiatives, including in the areas of health and trade, she said.



Yellen&#8217;s trip kicks off a year of high-level&nbsp;U.S.&nbsp;visits&nbsp;that will include&nbsp;President Joe Biden, Vice President Kamala Harris, Trade Representative Katherine Tai, and Commerce Secretary Gina Raimondo.



Washington hosted African leaders from 49 countries and the African Union at a summit in December, where Biden said the United States was &#8220;all in&#8221; on Africa&#8217;s future and planned to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N33314U&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">commit $55 billion</a>&nbsp;over the next three years.



African officials have broadly welcomed the United States&#8217; renewed engagement. But the timing, two years into Biden&#8217;s four-year term, is viewed by many as &#8220;late and somewhat half-hearted&#8221;, said Chris Ogunmodede, a Nigerian researcher and associate editor of World Politics Review.



&#8220;The fears that Biden will not follow through, or that he could lose and be replaced by a hostile Republican administration, definitely exist,&#8221; he said.



<h2 class="wp-block-heading">CHINA, DEBT AND RATE HIKES</h2>



As the United States touts its long-standing ties to Africa and a renewed commitment to ramping up trade and investment, it&#8217;s playing catch-up with China and facing a growing challenge from Russia.



Chinese trade with Africa is about four times that of the United States, and Beijing has also become an important creditor by offering cheaper loans than Western lenders.



American officials &#8211; both Democrats and Republicans &#8211; have criticised China&#8217;s lending as lacking transparency and predatory.



In Senegal, Yellen warned Africa against &#8220;shiny deals that may be opaque and ultimately fail to actually benefit the people&#8221; and has accused China of&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AJ8N323027&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">dragging its feet</a>&nbsp;on a critical debt restructuring in Zambia.



But U.S. fiscal policy is creating its own drag.



African countries have become collateral victims of this year&#8217;s rate hikes by the U.S. Federal Reserve, aimed at curbing inflation at home.



&#8220;Tightening financial conditions and the appreciating US dollar have had dire consequences for most African economies,&#8221; the African Development Bank (AfDB) wrote in a report last week.



The cost of debt service is expected to hit&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AKBN2SY1E3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">$25 billion</a>&nbsp;next year according to the World Bank, up from $21.4 billion in 2022. In local currency term, it&#8217;s risen even faster, increasing the risk of debt distress, the AfDB stated.



African countries are also finding it harder to access capital markets to meet their fiscal needs and refinance maturing debt.



The United States, meanwhile, has largely failed to offer viable alternatives to cheap Chinese credit, officials said.



&#8220;China is an important partner,&#8221; Democratic Republic of Congo Finance Minister Nicolas Kazadi told Reuters. &#8220;It is clearly shown that it&#8217;s not easy to mobilise U.S. investors.&#8221;



One senior U.S. Treasury official said the United States had long been engaged in Africa, funding anti-HIV work and working on other health issues. &#8220;We don&#8217;t often talk about it. It&#8217;s not named bridges or highways &#8230; but if you think about just the sheer lives saved &#8211; estimates of 25 million lives saved with our engagement with (AIDS relief) &#8211; that is real.&#8221;



<h2 class="wp-block-heading" id="h-russian-conflict">RUSSIAN CONFLICT</h2>



African countries have largely rejected U.S. pressure to take sides in the Russia-Ukraine conflict, some of them citing Moscow&#8217;s colonial-era support for their liberation movements.



Russia has blocked Ukrainian grain exports, driving up food inflation and aggravating one of the&nbsp;<a href="https://www.reuters.com/graphics/AFRICA-HUNGER/lgpdkknwlvo/" target="_blank" rel="noreferrer noopener">worst food crises in Africa&#8217;s</a>&nbsp;history, U.S. officials note.



On Friday, Yellen said in Senegal that the war&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AJ8N345001&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">was hurting</a>&nbsp;the continent&#8217;s economy, and that a Group of Seven-led price cap on Russian crude oil and refined products could save African countries $6 billion annually.



On Monday, though, South Africa&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3453MX&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">hosted a visit</a>&nbsp;by Russian Foreign Minister Sergei Lavrov and defended its decision to hold joint naval exercises with Russia and China off its east coast next month &#8211; a day before Yellen was scheduled to arrive.



&#8220;All countries conduct military exercises with friends worldwide,&#8221; South Africa&#8217;s Foreign Minister Naledi Pandor, standing alongside Lavrov, told reporters.



Washington, Beijing and Moscow are all courting African nations with their own interests in mind, say foreign policy experts including Ebrahim Rasool, a former South African ambassador to the United States. African leaders, hoping for greater representation in bodies like the G20 and UN Security Council, can play that game too.



&#8220;The U.S. sometimes has good intentions and meetings but not always the follow-through,&#8221; Rasool said, adding that sometimes Russia and China are needed to stir the U.S. into action.



Sub-Sarahan Africa&#8217;s largest lenders (USD)<a href="https://tmsnrt.rs/3YoURUL" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3YoURUL</a>



(Additional reporting by Tim Cocks in Johannesburg, Ngouda Dione in Dakar, and Karin Strohecker, Jorgelina do Rosario and Marc Jones in LondonWriting by Joe BavierEditing by Alistair Bell)

Treasury Secretary Yellen Meets With Visiting Canadian Officials

As Yellen woos Africa, sceptics ask ‘Is the U.S. here to stay?’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="582" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/VPJKBC52CNKHLKKV5LUSAAB3HI-820x582.jpg" alt="" class="wp-image-422582" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/VPJKBC52CNKHLKKV5LUSAAB3HI-820x582.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/VPJKBC52CNKHLKKV5LUSAAB3HI-300x213.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/VPJKBC52CNKHLKKV5LUSAAB3HI-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/VPJKBC52CNKHLKKV5LUSAAB3HI-768x545.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/VPJKBC52CNKHLKKV5LUSAAB3HI-1536x1090.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/VPJKBC52CNKHLKKV5LUSAAB3HI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. Treasury Secretary Janet Yellen speaks during her interview with Reuters in New Delhi, India, November 11, 2022. REUTERS/Altaf Hussain/File Photo</figcaption></figure>



DAKAR, Jan 20 (Reuters)&nbsp;&#8211;&nbsp;Russia&#8217;s war against Ukraine is hitting Africans particularly hard by exacerbating food insecurity and putting an unnecessary drag on the continent&#8217;s economy, U.S. Treasury Secretary Janet Yellen said in Senegal&#8217;s capital Dakar on Friday.



Yellen said ending the war would be the best thing to help the global economy, but Treasury estimated that a Group of Seven-led price cap on Russian crude oil and refined products to limit Russia&#8217;s revenues could save the 17 largest net oil-importing African countries $6 billion annually.



Speaking at the start of a three-country visit to Africa, Yellen said some emerging market countries were saving even more by using the price cap to negotiate steeper discounts with Russia, and Treasury was encouraging others to follow suit.



G7 countries and Australia implemented&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32U0AF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">the oil price cap</a>&nbsp;on Dec. 5, banning the use of Western-supplied maritime insurance, finance and other services for cargoes priced above $60 per barrel. A further cap on Russian refined petroleum products, such as diesel and fuel oil, is due to take effect on Feb. 5.



Yellen said the United States was working with African leaders to mitigate the damage caused by Russia&#8217;s &#8220;illegal and unprovoked war&#8221; in Ukraine, which along with COVID-19 had slowed growth and pushed millions of Africans into poverty and hunger.



Washington provided about $13 billion in emergency aid and food assistance last year, and was now setting up a U.S.-Africa strategic partnership to address the short-term food needs of more than 300 million Africans, Yellen said. It is also helping to build more resilient and sustainable systems for the future.



Yellen is the first of a number of top U.S. officials who plan to visit Africa this year, including President Joe Biden, as Washington seeks to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3440RZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">deepen ties</a>&nbsp;with the continent and provide a counterweight to China, whose collateralized loans have left many nations deeply in debt.



Speaking at a co-working space that helps women and young entrepreneurs, Yellen drew sharp contrasts with other countries&#8217; investment, emphasizing that U.S. investments in Africa were motivated by &#8220;our mutually beneficial, long-term partnership&#8221; with a goal of generating positive economic returns.



It is a message Yellen plans to hammer home throughout her visit, with further stops planned in Zambia and South Africa,&nbsp;contrasting the U.S. approach with that of China and other countries active on the continent.



She said Africans were demanding greater accountability and transparency from their governments, calling them a prerequisite for sustainable economic growth. U.S. engagement, she said, prioritized &#8220;adherence to high standards like transparency, good governance, accountability, and environmental sustainability.&#8221;



In certain cases, she said Washington could also condition investments on political reforms that would help mobilize private sector investments.



&#8220;While our approach may be exacting, we believe it delivers lasting results. Countries need to be wary of shiny deals that may be opaque and ultimately fail to actually benefit the people they were purportedly designed to help in the first place,&#8221; she said. &#8220;This can leave countries with a legacy of debt, diverted resources, and environmental destruction.&#8221;



<h2 class="wp-block-heading" id="h-enormous-potential">&#8216;ENORMOUS POTENTIAL&#8217;</h2>



Yellen,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2YT0JT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">long critical</a>&nbsp;of the pace of China&#8217;s efforts on debt treatments for Zambia and other countries, said it was important to provide &#8220;timely and comprehensive&#8221; solutions to allow African economies to continue to make important public investments.



&#8220;We believe that the international community, including China, needs to provide meaningful debt relief to help countries regain their footing,&#8221; she said.



Yellen met earlier with Senegal&#8217;s Minister of Economy, International Planning, and Cooperation Oulimata Sarr, who like Yellen is also the first woman to serve in her current role.



The U.S. Treasury secretary will meet later with Senegalese President Macky Sall and Finance Minister Mamadou Moustapha Bâ.



Yellen told business leaders from the American Chamber of Commerce that the overriding focus of her visit is &#8220;the enormous economic potential of the continent, thanks to its demographic trends and the impressive dynamism of its entrepreneurs.&#8221;



&#8220;The U.S. is committed to working with Africa to realize that promise, because we know that a stronger African economy is good for the world, and good for the United States,&#8221; she said.



(Reporting by Andrea Shalal; Editing by Toby Chopra)

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Economy

World Bank says pausing future Tunisia work amid reports of racist violence

Stocks rise ahead of Powell testimony, China shares limit gains

China’s reopening set to help EMFX get back on track

Security and food crises expected to dominate African Union summit

China, U.S. to participate in first meeting of new debt roundtable on Feb. 17

Africa gears up to keep more of the profits from lithium boom

Shoppers to face fresh price hikes as stores, suppliers pass on costs

Microsoft calls for ‘coalition’ to improve Congo’s informal cobalt mines

Congo’s Gecamines seeks to diversify into ‘transition’ minerals

There isn’t enough copper in the world — and the shortage could last till 2030

Asia markets mostly fall as U.S. jobs report show room for more hikes; Adani saga continues

Squeezed mining companies face growth dilemma

Stocks slide on Adani rout; Nigeria bonds tumble on Moody’s downgrade

U.S., South Africa form task force to combat wildlife trafficking – Yellen

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As Yellen woos Africa, sceptics ask ‘Is the U.S. here to stay?’

Yellen says Russian oil price cap could save African countries $6 bln annually

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