LAGOS, May 3 (Reuters)&nbsp;&#8211;&nbsp;Nigeria had to buy emergency supplies of Canadian potash in April after the country was unable to import the key fertilizer from Russia due to the impact of Western sanctions, the head of Nigeria&#8217;s sovereign investment authority NSIA said.



Uche Orji, the head of NSIA, declined to comment on prices. However, spot prices today are up more than 250% for deliveries to west Africa compared to last year, according to commodities pricing agency Argus Media, dealing a further blow to the country&#8217;s finances.



The move shows one of many unintended negative consequences of sanctions to punish Russia for its invasion of Ukraine, which it calls a &#8220;special military operation&#8221;.



The International Monetary Fund said last week that the invasion had delivered a further &#8220;huge negative shock&#8221; to sub-Saharan Africa, driving food and energy prices higher and putting the most vulnerable people at risk of hunger.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2WQ08L&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The extra pressure comes as many countries are still reeling from the protracted COVID-19 pandemic.



Nigeria has for years been battling double-digit inflation, which quickened to 15.92% last month, and its population of 200 million will face even higher food costs this year and the next as the agricultural sector passes on the higher costs of imported wheat, diesel and fertilizer.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;Russia was unable to deliver so we bought spot from traders in Canada. The Canadian High Commission in Nigeria helped start the conversation with producers,&#8221; Orji told Reuters.</blockquote>



NSIA negotiates imports of raw fertilizer materials like potash as part of the Nigerian government&#8217;s programme to develop its capacity to produce blended fertilizer.



Orji said Nigeria has enough potash inventories to cover 40% of blending demand and bought three cargoes of Canadian potash, which should arrive within the next month. Normally, the country takes five Russian cargoes a year.



Western sanctions and self-sanctioning by many global companies and financial institutions has created chaos for anyone dealing in products of Russian origin and sent many energy and commodity prices to record highs.



Russia&#8217;s Uralkali, a major global producer of the crop nutrient, has been Nigeria&#8217;s exclusive supplier since 2019.



Uralkali declined comment. The Canadian government did not have an immediate comment.



The potash producer has not itself been targeted by sanctions so far but Russian businessman Dmitry Mazepin left the board and cut his controlling stake in Uralchem after he was hit by EU sanctions in March. Uralchem owns the majority of Uralkali.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N2UP04Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Orji said there were ongoing discussions to see if a Russian delivery could still be made.



The price of potash has been on the rise since last year after the EU imposed some sanctions on Belarus, the world&#8217;s third biggest producer after Russia and Canada.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2VO28I&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The price skyrocketed in early March following financial sanctions on Russia, hitting a record $1,125 per tonne at the end of April for product on a delivered basis to South Africa, according to commodity pricing agency Argus Media. Combined, Belarus and Russia account for 38% of global potash supplies, which are now uncertain.



Nigeria imported about 200,000 tonnes of potash last year, one of three key ingredients for fertilizer blending, according to the local fertilizer association FEPSAN. Nigeria&#8217;s raw material imports meet just under 40% of Nigeria&#8217;s needs, the rest is sourced domestically, and local blended output was 1.5 million tonnes last year, nearly equal to domestic consumption.



&#8220;The Canadian potash will hopefully arrive just in the nick of time for the planting season, which starts as early as end-May in some parts,&#8221; FEPSAN executive director Gideon Negedu said, adding the association has a strategy to prioritise crops that need more potash.



(Reporting by Julia Payne, additional reporting by Reuters; editing by David Evans)

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Nigeria buys emergency Canadian potash to replace lost Russian supply

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Africa’s most vulnerable hit by Russia’s war in Ukraine, says IMF￼

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="510" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/JD2IZHEJJJLTNPNS6LFXDDAY2Q-820x510.jpg" alt="" class="wp-image-416645" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/JD2IZHEJJJLTNPNS6LFXDDAY2Q-820x510.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/JD2IZHEJJJLTNPNS6LFXDDAY2Q-300x186.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/JD2IZHEJJJLTNPNS6LFXDDAY2Q-145x90.jpg 145w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/JD2IZHEJJJLTNPNS6LFXDDAY2Q-768x477.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/JD2IZHEJJJLTNPNS6LFXDDAY2Q-1536x955.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/JD2IZHEJJJLTNPNS6LFXDDAY2Q-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: Brazilian Real and U.S. dollar notes are pictured at a currency exchange office in Rio de Janeiro, Brazil, in this September 10, 2015 photo illustration. REUTERS/Ricardo Moraes/File Photo</figcaption></figure>



LONDON, April 21 (Reuters)&nbsp;&#8211;&nbsp;After huge rallies fed by blockbuster commodity price surges, the tide may be turning for currencies such as the Aussie dollar and Colombian peso as fears of a global growth slowdown take hold in markets.



As inflation and higher borrowing costs crimp business and consumer spending, the International Monetary Fund and World Bank this week slashed global growth forecasts by nearly a percentage point and flagged the risk of further drops stemming from China&#8217;s COVID lockdowns and sanctions on Russia&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2WG0QF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>.



The warnings knocked prices of oil and metals, though tight supply of most commodities has so far capped losses. Brent crude futures remain above $100 a barrel while the Refinitiv CRB commodity index is still up nearly a quarter this year&nbsp;.SNCMP.



Eight of the top 30 currency performers this year in a group monitored by Societe Generale are commodity-linked. In a smaller G10 grouping, four of the top five are from commodity exporting countries, Refinitiv data shows.



Societe Generale strategist Kenneth Broux reckons however, that the rally is &#8220;running on fumes&#8221; with a big test for commodity currencies coming from U.S. real yields &#8211; or inflation-adjusted 10-year Treasury yields &#8211; turning positive this week for the first time in two years.



Central banks are also polishing their hawkish credentials, especially the U.S. Federal Reserve.



A BofA investor survey this week predicted the Fed would hike rates more than seven times this year, up from four times in a March survey.



Anticipation of the resulting growth slowdown may be already taking the edge off commodities and commodity currencies such as the Australian dollar, which rose 10% versus the greenback between end-January and late-March.



The Brazilian real&nbsp;BRL=&nbsp;has gained 18% this year and the Colombian peso 8%&nbsp;COP=.



&#8220;Long Latin American energy exporters and short Asian importers&#8221; has been this year&#8217;s most concentrated foreign exchange trade, the head of a U.S. bank&#8217;s currency desk said.



April has brought a turnaround, however. The Chilean peso for example, has shed almost half its first-quarter gains as copper prices ease, while signs of a Chinese slowdown have weighed on the Aussie and Kiwi dollars.



Morgan Stanley&#8217;s proprietary FX positioning tracker, calculated off client option market positions, reflects the shift, said James Lord, the bank&#8217;s global head of foreign exchange.



&#8220;Usually exchange rates tend to be very correlated and tend to go in the same direction, but we have seen a huge decoupling between commodity exporting and importing currencies since the start of the year,&#8221; Lord said.



On Morgan Stanley&#8217;s scale of minus 100 to plus 100, where 0 is neutral, positioning on commodity currencies reached 75 in March, the highest according to data going back to 2014. The score has since eased, albeit to a still-bullish 62.



&#8220;Commodity exporters&#8217; currencies may start to weaken from here because global growth is slowing,&#8221; Lord said, noting that extreme positioning means there were &#8220;a lot of flows that can go the other way&#8221;.



<h2 class="wp-block-heading" id="h-lot-of-optimism">LOT OF OPTIMISM</h2>



The catalyst could be China.



The yuan, crucial to the trajectory of commodities, has fallen to a two-month low against a basket of currencies&nbsp;.RXYH&nbsp;and a Reuters poll shows analysts are &#8220;short&#8221; yuan for the first time since October.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL3N2WI1YC&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>.



With swathes of China under COVID lockdowns, a gauge of hedge fund positioning compiled by the U.S. CFTC shows a sharp decline in Aussie dollar net longs &#8211; currently $2.1 billion versus six-year highs of about $6.5 billion in January&nbsp;AUDNETUSD=.



Brazilian real net longs have held up better, though they too are off early March&#8217;s record highs of nearly $1 billion&nbsp;BRLNETUSD=. Hedge funds have also stopped buying the kiwi and the Canadian dollar, the data shows&nbsp;NZDNETUSD=,&nbsp;CADNETUSD=.



If growth does slows sharply, currencies&#8217; exalted valuations will be hard to justify &#8211; the Norwegian crown&#8217;s value on a trade-weighted basis is near its highest, relative to its median value, for the last 50 years.



The Aussie and Kiwi dollars are also well above historic averages on a trade-weighted basis, according to Refinitiv data.



Current exchange rates are pricing a lot of bullishness, said Francesca Fornasari, head of currency solutions at Insight Investment, noting for instance &#8220;when it comes to the Aussie, there is a lot of optimism baked in about China, commodity markets and the central bank rate trajectory.&#8221;



(Reporting by Sujata Rao and Saikat Chatterjee; Editing by Kirsten Donovan)

FILE PHOTO: Brazilian Real and U.S. dollar notes are pictured at a currency exchange office in Rio de Janeiro

Growth slowdown fears temper bullishness on commodity currencies

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="503" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43.jpg" alt="" class="wp-image-416576" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43-768x483.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption>FILE PHOTO: Diamonds are displayed at the De Beers Global Sightholder Sales (GSS) in Gaborone, Botswana, November 24, 2015. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, April 20 (Reuters) – Diamond miner De Beers has signed two mineral investment contracts with the Angolan government for licence areas in the northeast of the country, the Anglo American subsidiary said on Wednesday.



The contracts are for 35 years and give De Beers the rights to explore and mine, through two new joint ventures with Angola’s state diamond company Endiama.



De Beers will hold a “substantial” majority of the new joint ventures, the company said, without specifying a percentage. Endiama will be able to increase its equity share over time.



<h3 class="wp-block-heading" id="h-read-more-bp-eni-seek-to-raise-2-bln-for-angola-joint-venture">Read more: <a href="https://www.cnbcafrica.com/2021/bp-eni-seek-to-raise-2-bln-for-angola-joint-venture/">BP, Eni seek to raise $2 bln for Angola joint venture</a></h3>



De Beers expects to start exploration activities in the licences this year, pending regulatory approvals.



The company announced in December last year that it had applied to conduct exploration activities in the country.



“Angola has worked hard in recent years to create a stable and attractive investment environment and we are pleased to be returning to active exploration in the country,” De Beers Chief Executive Bruce Cleaver said in a statement.



Angola was the seventh biggest producer of rough diamonds in the world in 2020, according to Kimberley Process statistics. Western sanctions on the world’s biggest diamond producer, Russia, could boost demand for alternative sources of diamonds. 



(Reporting by Helen Reid, Editing by Louise Heavens and Edmund Blair)

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De Beers to explore for diamonds in Angola

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="770" height="513" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001.jpg" alt="" class="wp-image-416552" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001.jpg 770w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001-768x512.jpg 768w" sizes="auto, (max-width: 770px) 100vw, 770px" /><figcaption>A man poses as he displays the Flutterwave homepage on a mobile phone screen in Abuja, Nigeria January 21, 2020. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



JOHANNESBURG, April 18 (Reuters)&nbsp;&#8211;&nbsp;African start-ups attracted a record $5.2 billion in venture capital last year, bouncing back from a pandemic-induced dip in 2020 with a nearly five-fold increase in investments, according to data released by an industry group on Tuesday.



The success of companies like Nigeria&#8217;s Paystack, acquired in 2020 by U.S. payments firm Stripe, and fellow fintech Flutterwave, valued at over $3 billion, has fuelled international interest in up-and-coming businesses on the continent.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2UQ313&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;African startups raised more in 2021 alone than the preceding seven years combined,&#8221; the African Private Equity and Venture Capital Association (AVCA), which promotes private investment on the continent, wrote in a report.



Much of the investor focus has been on fintech start-ups seeking to meet the needs of the continent&#8217;s largely unbanked population. The data compiled by AVCA showed the financial sector accounted for 60% of the investments by value and nearly a third of deals by volume.



<h3 class="wp-block-heading" id="h-read-more-ukraine-war-creates-woes-but-also-an-opportunity-for-africa-afdb-pres">Read more: <a href="https://www.cnbcafrica.com/2022/ukraine-war-creates-woes-but-also-an-opportunity-for-africa-afdb-pres/">Ukraine war creates woes, but also an opportunity for Africa – AfDB Pres</a></h3>



Nigeria, a hotbed of new fintech firms, was the leading destination for venture capital in Africa last year, surpassing South Africa, the continent&#8217;s most developed economy.



Most venture capital deals were concentrated in early-stage funding rounds. However, late-stage funding ballooned in 2021, including a nearly 40-fold increase in financing raised by Series C fundraising rounds.



Fintechs Chipper Cash, MFS Africa, Yoco, and OPay together raised $833 million via Series C funding rounds.



While deals of less than $1 million represented nearly a third of transactions by volume, those worth over $50 million accounted for 62% of the total value of venture capital financing in Africa last year.



(Reporting by Joe Bavier; Editing by Pravin Char)

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African startups drew record $5.2 billion in venture capital last year – industry group

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="662" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/MPQ6F6Q53BNTZO5LPN4WBMJEAM-820x662.jpg" alt="" class="wp-image-416524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/MPQ6F6Q53BNTZO5LPN4WBMJEAM-820x662.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/MPQ6F6Q53BNTZO5LPN4WBMJEAM-300x242.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/MPQ6F6Q53BNTZO5LPN4WBMJEAM-111x90.jpg 111w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/MPQ6F6Q53BNTZO5LPN4WBMJEAM-768x620.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/MPQ6F6Q53BNTZO5LPN4WBMJEAM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>People walk past the head office of Standard Chartered bank in the City of London February 27, 2015. REUTERS/Eddie Keogh</figcaption></figure>



LONDON, April 14 (Reuters) &#8211; Standard Chartered STAN.L is leaving seven countries in Africa and the Middle East where it is sub-scale as it seeks to improve profits by narrowing its focus to faster-growing markets in the region, it said on Thursday.



The bank will fully exit Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe, likely by trying to sell its business in those markets.



It will also close its retail banking operations in Tanzania and Ivory Coast to focus solely on corporate banking.



The move marks a major shift for Standard Chartered, which has been among the biggest European lenders to invest in the continent in recent years at a time when peers have been withdrawing.



The cuts would allow it to focus on bigger and faster growing economies in the region, such as Saudi Arabia where it has opened its first branch, and Egypt.



Prior to the announcement, StanChart operated in 15 African markets and 10 in the Middle East, employing around 15,000 staff, a major presence that had made it &#8220;unique among global banks&#8221; in the region, according to Citi analyst Yafei Tian.



But the complexity of operating at that scale left the bank with a comparatively high cost to income ratio of 74%, which exiting sub-scale markets will help to improve, Tian said.



The markets being cut generated just 1% of total income in 2021 and a similar proportion of profit before tax, the bank said. StanChart is currently present in 59 markets overall and serves clients in a further 83.



It did not immediately comment on the number of job losses as a result of the cuts.



StanChart shares rose slightly on the announcement, up 0.6% against a flat FTSE 100 index&nbsp;.FTSE.



<h2 class="wp-block-heading" id="h-out-of-africa">OUT OF AFRICA</h2>



StanChart joins the ranks of other global players to reduce their presence in Africa in recent years as they struggle to reach scale compared with incumbent locals.



It has pursued a strategy of investing heavily in digital banking in Africa but found it hard to translate customer acquisition into steady profits.



Barclays&nbsp;BARC.L&nbsp;sold its African unit in 2016, ending its 90-year presence on the continent, while Credit Suisse pulled out of its wealth management business in nine African countries this year.



The economy in Sub-Saharan Africa, home to many of the poorest nations on earth, has contracted sharply during the pandemic and has struggled to recover compared with developed economies.



The International Monetary Fund predicted in October that the region&#8217;s economy would expand by 3.7%-3.8% this year and last &#8211; the slowest recovery relative to other regions around the globe.



Some lenders are still scaling up in Africa, with Deutsche Bank saying last year it will expand its private bank in the region.



(Reporting by Lawrence White; Editing by Jason Neely and Mike Harrison)

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StanChart cuts seven minnow businesses in Africa and Middle East

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2L2RR3O47JNMFPFPWSFODGYYIM-820x530.jpg" alt="" class="wp-image-416470" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2L2RR3O47JNMFPFPWSFODGYYIM-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2L2RR3O47JNMFPFPWSFODGYYIM-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2L2RR3O47JNMFPFPWSFODGYYIM-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2L2RR3O47JNMFPFPWSFODGYYIM-768x496.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2L2RR3O47JNMFPFPWSFODGYYIM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A woman shops at a supermarket in Nairobi October 23, 2008. Economic growth in sub-Saharan Africa will dip to 6 percent in 2008 and 2009 due to tough global conditions, while inflation is seen rising to 12 percent this year, the International Monetary Fund said on Thursday. REUTERS/Antony Njuguna (KENYA)</figcaption></figure>



LONDON, April 13 (Reuters)&nbsp;&#8211;&nbsp;Sub-Saharan Africa&#8217;s economy is set to grow 3.6% this year, down from 4% in 2021, the World Bank said on Wednesday, as it warned rising food and energy prices fuelled by Russia&#8217;s war in Ukraine could spark civil unrest in the region.



While it upgraded the forecast for this year by 0.1 percentage points and said last year&#8217;s growth had beaten its initial forecasts, the bank said inflation in the region was set to quicken to 6.2% this year, up from 4.5% in 2021.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2R20MY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



War in Ukraine would worsen the factors holding back Africa&#8217;s recovery from the coronavirus pandemic despite small direct economic links, it said, due to higher commodity prices, tighter global monetary policy and a fall in foreign financial flows.



&#8220;(The war&#8217;s) largest impact is on the increasing likelihood of civil strife as a result of food- and energy-fuelled inflation amid an environment of heightened political instability,&#8221; the World Bank said in its latest Africa&#8217;s Pulse report.



It said the share of countries in sub-Saharan Africa classed as being at a high risk of debt distress had risen to 60.5%, from 52.6% in October 2021.



&#8220;The existing debt relief and resolution mechanisms have been insufficient to bring down debt levels,&#8221; the report, released ahead of International Monetary Fund Spring Meetings next week, said.



<h3 class="wp-block-heading" id="h-read-more-why-african-nations-support-for-un-action-on-russia-ukraine-is-so-mixed">Read more: <a href="https://www.cnbcafrica.com/2022/why-african-nations-support-for-un-action-on-russia-ukraine-is-so-mixed/">Why African nations’ support for UN action on Russia/Ukraine is so mixed</a></h3>



&#8220;Improvements are much needed to avoid a large wave of debt crisis among developing countries, particularly Sub-Saharan African countries.&#8221;



It added that Ghana, whose currency has fallen 17.9% against the dollar this year, was &#8220;leading the way&#8221; when it comes to concerns about countries&#8217; debt sustainability, although it forecast growth of 5.5% for the country in 2022.



Ghana&#8217;s government has said it would not seek IMF help.



Beyond the region, Sri Lanka, Egypt and Tunisia have requested assistance from the World&#8217;s Bank&#8217;s sister organisation since Russia invaded Ukraine, causing food and commodity price spikes.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2VV3C5&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The World Bank said its upgraded growth estimate for last year was driven by increases of 1.2% and 0.3% in 2021 figures for Nigeria and South Africa, although it warned of ongoing &#8220;sluggish&#8221; growth in Nigeria, South Africa and Angola.



South Africa would grow 2.1% this year, Angola 2.9% and Nigeria 3.8%, the World Bank forecast, while Ivory Coast would be the fastest-growing west African economy at 5.7%, and east Africa&#8217;s biggest economy Kenya would expand 5%.



(Reporting by Rachel Savage; Editing by David Holmes and Alex Richardson)

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Sub-Saharan Africa’s growth to slow to 3.6% this year, World Bank says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/107005371-1643039437930-gettyimages-1237649604-AFP_9VX32Q.jpeg" alt="" class="wp-image-414841" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/107005371-1643039437930-gettyimages-1237649604-AFP_9VX32Q.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/107005371-1643039437930-gettyimages-1237649604-AFP_9VX32Q-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/107005371-1643039437930-gettyimages-1237649604-AFP_9VX32Q-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>The seal for the International Monetary Fund is seen near the World Bank headquarters (R) in Washington, DC on January 10, 2022.
Stefani Reynolds | AFP | Getty Images</figcaption></figure>



DAKAR, April 12 (Reuters)&nbsp;&#8211;&nbsp;The World Bank said on Tuesday it has signed deals to finance four projects in Senegal worth a total of $495 million to help improve education, electricity, economic development and road access to rural areas.



The West African nation of around 16.7 million, considered lower-middle-income by the World Bank, was hit hard by border closures during the pandemic that affected tourism and delayed oil and gas extractions.



Most of the coastal country was struggling with unemployment even before the coronavirus hit, with jobs and industries concentrated in the capital Dakar and a few other cities.



The World Bank director for Senegal and neighbouring countries, Nathan Belete, announced what he described as a &#8220;record&#8221; funding in a statement.



A project to improve the quality of the education system will be awarded $100 million and benefit over 600,000 students, the bank said.



<h3 class="wp-block-heading" id="h-read-more-rmb-raises-3-bln-on-behalf-of-treasury-in-south-african-sovereign-bonds">Read more: <a href="https://www.cnbcafrica.com/2022/rmb-raises-3-bln-on-behalf-of-treasury-in-south-african-sovereign-bonds/">RMB raises $3 BLN on behalf of Treasury in South African Sovereign Bonds</a></h3>



Another $45 million will fund a project to help develop the economy of the impoverished southern Casamance region, focusing on rural areas and including the construction infrastructure resistant to the impact of climate change.



The Bank also said that $150 million will be disbursed to improve electricity access across the country, connecting 200,000 households to the grid and improving power services in schools, health facilities, and small and medium enterprises.



The fourth project, worth $200 million, will focus on developing better road links to rural food producing areas in northern and central regions.



Agriculture is Senegal&#8217;s main driver of economic growth, while services remain the biggest contributor to gross domestic product (GDP), the World Bank says.



The pandemic caused its real GDP growth to slow to 1.5% in 2020 from 4.4% a year earlier.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2SM6P2&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The economy bounced back to 5% growth in 2021. It is forecast by the International Monetary Fund to accelerate to 5.5% in 2022 and peak at about 10% in 2023-24 with the start of oil and gas production.



(Reporting by Bate Felix; Writing by Sofia Christensen; Editing by James Macharia Chege and Bill Berkrot)

107005371-1643039437930-gettyimages-1237649604-AFP_9VX32Q

World Bank to finance four projects worth $495 million in Senegal

<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>World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, April 12 (Reuters) – The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday. 



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



Uganda’s central bank is due to release its benchmark rate for the next two months. The rate was left unchanged at 6.5% at the last monetary policy committee meeting. 



<h2 class="wp-block-heading">GLOBAL MARKETS </h2>



Asian shares were down while the U.S. dollar held strong on Tuesday, as Treasury yields spiked to a three year high ahead of U.S. inflation data which could foreshadow even more aggressive interest rate hikes from the Federal Reserve. 



<h2 class="wp-block-heading">WORLD OIL PRICES </h2>



Oil futures rose early on Tuesday, reversing sharp losses from the prior day, as the market weighed the potential for more sanctions on Russia’s energy sector and OPEC warned it would be impossible to increase output enough to offset lost supply. 



<h2 class="wp-block-heading">SOUTH AFRICA MARKETS</h2>



The South African rand advanced on Monday, supported by higher precious metals prices and shrugging off weaker-than-expected manufacturing numbers. 



<h2 class="wp-block-heading">KENYA MARKETS </h2>



The Kenyan shilling was steady on Monday although demand for dollars from firms in manufacturing and energy sectors was likely to cause further depreciation, traders said. 



<h2 class="wp-block-heading">NIGERIA POLITICS </h2>



Nigerian vice president Yemi Osinbajo said on Monday he wanted to run for president next February on the ruling All Progressives Party ticket but faces a challenge from another party stalwart who said he also wanted to join the race. 



<h2 class="wp-block-heading">BURKINA FASO MINING </h2>



Russia’s Nordgold is shutting down its Taparko mine in Burkina Faso and calling force majeure citing the deteriorating security situation in the West African country, according to a company statement seen on Monday. 



<h2 class="wp-block-heading">GHANA BONDS </h2>



Ghana plans to issue 24 billion cedi ($3.24 billion) in bonds in second quarter according to a government debt issuance calendar published by the central bank.

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on April 12

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="484" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/BYYJJINYJBOSTHPHXYL6KBXAQ4-820x484.jpg" alt="" class="wp-image-415655" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/BYYJJINYJBOSTHPHXYL6KBXAQ4-820x484.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/BYYJJINYJBOSTHPHXYL6KBXAQ4-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/BYYJJINYJBOSTHPHXYL6KBXAQ4-153x90.jpg 153w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/BYYJJINYJBOSTHPHXYL6KBXAQ4-768x453.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/BYYJJINYJBOSTHPHXYL6KBXAQ4-1536x906.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/BYYJJINYJBOSTHPHXYL6KBXAQ4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: Russian Rouble and U.S. Dollar banknotes are seen in this illustration taken, February 24, 2022. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



JOHANNESBURG/BENGALURU, April 8 (Reuters) &#8211; Most emerging market currencies will continue to struggle against the mighty dollar over the coming year as the U.S. Federal Reserve finally delivers expected aggressive policy tightening, according to a Reuters poll of FX strategists.



Central banks in emerging market economies have been bracing for this for months by hiking their benchmark interest rates. But the actual moment when the Fed delivers half-point rate increases and rapid balance sheet reduction still matters.



Minutes from the Fed&#8217;s March meeting showed officials had generally agreed to trim the central bank&#8217;s balance sheet by $95 billion a month, providing a major boost to the greenback which was already riding high.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2W41S3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The latest Reuters poll of over 50 currency strategists showed nearly all developing market currencies would weaken over the coming 12 months.



Even currencies which have been dragged higher by the ongoing commodity cycle and their respective central banks&#8217; policy tightening, like the Brazilian real&nbsp;BRL=&nbsp;and the South African rand&nbsp;ZAR=D3, were forecast to give up about half of those gains in a year.



These currencies have gained about 18% and 9% respectively so far in 2022.



The Mexican peso &#8211; a classic emerging market foreign exchange hedge — is expected to lose more than three times its gains for this year in 12 months.



&#8220;In the face of imminent sharp Fed hikes and with U.S. yields moving rapidly higher, the resilience of EMFX remains somewhat surprising,&#8221; noted Paul Meggyesi, head of FX strategy at JPMorgan.



&#8220;A particular risk to EMFX is that as the Fed starts to deliver rate hikes, further upside in U.S. yields could be primarily driven more by real yields than breakeven inflation&#8221;



Meggyesi added this has historically been negative for emerging market currencies.



<h3 class="wp-block-heading" id="h-read-more-fx-markets-in-for-bumpy-ride-over-next-three-months">Read more: <a href="https://www.cnbcafrica.com/2022/fx-markets-in-for-bumpy-ride-over-next-three-months/">FX markets in for bumpy ride over next three months</a></h3>



While most emerging market currencies have managed to escape the onslaught of the Fed&#8217;s policy tightening relatively unscathed, the Russian rouble and the Turkish lira were notable exceptions.



The rouble, which fell by half in the past month and hit an all-time low of 150 per dollar after Russia&#8217;s invasion of Ukraine, was expected to weaken over 15% to 94.2 per dollar in a year from 78.5 presently.



The Russian currency is driven by export-focused companies selling foreign currency and low activity of importers. But analysts warned the recent rouble rally won&#8217;t last.



&#8220;(The recent gain) is not the true reflection of the fundamental situation in Russia. The economy is expected to contract very sharply and inflation is going to become more elevated, which over the longer term should be more consistent with a weaker rouble,&#8221; said Lee Hardman, currency analyst at MUFG.



Hardman said the situation for the Turkish lira wasn&#8217;t very different.



&#8220;They (the government) are intervening to support the lira but they&#8217;re not going down the kind of draconian measures like capital controls we see in Russia.&#8221;



The lira, which weakened 44% last year, was forecast to plunge another 15% to 17.27 per dollar in a year as it grapples with rampant inflation that hit a 20-year high of 61.14% in March.



China&#8217;s tightly controlled yuan was predicted to depreciate 1.4% to 6.45 per dollar in a year as analysts warned that a shrinking yield gap between Chinese and U.S. 10-year government bonds could trigger capital outflows.



Elsewhere in Asia, the Philippine peso and the Indian rupee were set to weaken between 1%-3%.



(For other stories from the April Reuters foreign exchange poll:&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL3N2W420F&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>)



(Reporting by Vuyani Ndaba in JOHANNESBURG and Vivek Mishra in BENGALURU; Polling by Devayani Sathyan and Md Manzer Hussain; Editing by Ross Finley and Bernadette Baum)

FILE PHOTO: Illustration shows Russian Rouble and U.S. Dollar banknotes

No peace for emerging market currencies as mighty U.S. dollar reigns

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="774" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-39.jpg" alt="" class="wp-image-416169" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-39.jpg 774w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-39-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-39-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-39-768x541.jpg 768w" sizes="auto, (max-width: 774px) 100vw, 774px" /><figcaption>Photo: via Reuters</figcaption></figure>



PERTH, March 30 (Reuters)&nbsp;&#8211;&nbsp;Much of the iron ore debate focuses on the outlook for demand in China but bubbling in the background are two factors likely to cause a structural shift in the market for the steel raw material &#8211; the lack of new supply and decarbonisation.



What happens in China is the main driver of short- and medium-term iron ore prices, which isn&#8217;t surprising given that it buys almost two-thirds of all sea-borne volumes and produces about half of the world&#8217;s steel.



What receives less attention is the state of supply, and this is perhaps because it has been largely stable in recent years, and only really becomes a market issue when there is a significant disruption, such as cyclones in top producer Australia or coronavirus-related production and transport difficulties in number two shipper Brazil.



But dig a little deeper and it becomes clear that at best iron ore supply is likely to remain steady in coming years, with the major miners only investing enough to replace depleting mines and junior producers not aiming to add much more than relatively small volumes.



This hasn&#8217;t been much of an issue so far but the question is what happens if global steel demand continues to increase at more or less the same pace it has done in recent decades?



Steel demand grows at roughly the same pace as the global economy, and if a compound annual growth rate of 2.5% is assumed, steel consumption will have more than doubled by 2050.



There are always caveats to this type of long-range forecast, and there are also other factors that could have an impact on how much iron ore will be needed.



These include the likelihood that China will reach peak steel demand some time this decade, and the increasing use of scrap in China and elsewhere in Asia.



But it&#8217;s worth noting that in other countries that have industrialised, peak steel was followed by a gentle decline in demand, rather than a sharp drop.



A further factor is that there are still some two billion people living in countries in Asia that are well behind China on the industrialisation scale, and these are likely to want to boost steel demand in coming decades.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/iron-ore-outlook-is-more-bullish-than-lower-china-growth-target-suggests-russell/">Iron ore outlook is more bullish than lower China growth target suggests: Russell</a></h3>



The lack of investment in additional iron ore capacity was one of the themes at the Global Iron Ore and Steel Forecast Conference in Perth this week.



The iron ore industry needs to add 100 million tonnes of new capacity every year just to replace mines that are depleting, Paul McTaggart, lead metal and mining analyst at Citi, told the conference.



While the major miners in Australia, such as Rio Tinto&nbsp;RIO.AX, BHP Group&nbsp;BHP.AX&nbsp;and Fortescue Metals Group&nbsp;FMG.AX, all have substantial investment plans and are developing new mines, in effect their capacity will remain more of less steady over the coming years.



It is possible that these iron ore giants are responding to shareholder demands for greater dividends from the current high prices, or perhaps they are still smarting from memories of the period from around 2011 to 2017, when too much capacity came online and the spot price of iron ore traded at low levels for an extended period.



They may also be sceptical of just how much steel is likely to be needed to build out renewable energy solutions in the drive to decarbonise the global economy.



Whatever the reason, it would appear that there may not be enough iron ore to meet rising demand among developing Asian countries as well as for steel-intensive renewable technologies such as wind turbines and electricity grids to handle intermittent renewable generation.



<h2 class="wp-block-heading" id="h-carbon-constraints">CARBON CONSTRAINTS</h2>



The impact of decarbonisation is a further uncertainty for iron ore producers.



The current process of turning ore into crude steel is energy intensive and largely powered by coking coal.



One way of reducing the amount of coal needed per tonne of crude steel is to use higher grade iron ore, and this is likely to drive a two-speed iron ore market, where high-grade material commands a widening premium over lower-quality ore.



If there is a looming supply shortfall, it&#8217;s likely that lower-grade iron ore will still be needed, but it may have to be priced at a substantial discount in order to justify the higher energy cost of turning it into steel, and possibly the price of carbon emissions, assuming China and others extend carbon pricing to industrial processes.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/iron-ore-rallies-on-australia-supply-fears-china-demand-hopes-russell/">Iron ore rallies on Australia supply fears, China demand hopes: Russell</a></h3>



Decarbonisation may also alter the way in which iron ore is turned into steel, with the possibility of using hydrogen to produce direct reduced iron, also called sponge iron, which is then turned into steel in an electric arc furnace.



This wouldn&#8217;t eliminate carbon emissions from producing steel but it would lower them substantially.



Once again, this method favours higher-grade iron ore, meaning that miners may have to invest in facilities to beneficiate lower grades in order to make them more suited to a carbon-constrained world.



The issue is that investments in additional iron ore capacity and upgrading have long lead times, and even if they were made today, the products may not reach the market in time.



(Editing by Robert Birsel)

download-39

Iron ore may see structural shift on lack of new supply, decarbonisation: Russell

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="459" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/D2QJG35CFJKZBIP4BJKWJG4LEE-820x459.jpg" alt="" class="wp-image-416146" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/D2QJG35CFJKZBIP4BJKWJG4LEE-820x459.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/D2QJG35CFJKZBIP4BJKWJG4LEE-300x168.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/D2QJG35CFJKZBIP4BJKWJG4LEE-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/D2QJG35CFJKZBIP4BJKWJG4LEE-768x430.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/D2QJG35CFJKZBIP4BJKWJG4LEE-1536x860.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/D2QJG35CFJKZBIP4BJKWJG4LEE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: The logo of the Organisation of the Petroleum Exporting Countries (OPEC) sits outside its headquarters ahead of the OPEC and NON-OPEC meeting, Austria December 6, 2019. REUTERS/Leonhard Foeger/File Photo</figcaption></figure>



DUBAI, March 29 (Reuters)&nbsp;&#8211;&nbsp;The energy ministers of Saudia Arabia and the United Arab Emirates, key members of OPEC+, said on Tuesday the producers&#8217; group should not engage in politics as pressure mounted on them to take action against Russia over its invasion of Ukraine.



Asked by the moderator at an industry event about whether OPEC+ has a moral responsibility to expel Russia from the group, Saudi Energy Minister Prince Abdulaziz bin Salman said &#8220;everybody leaves his politics at the door&#8221; when they hold meetings.



&#8220;If we don&#8217;t do that we would not have dealt with so many countries at different times. It could have been with Iraq at one point, it could have been with Iran at one point.&#8221;



OPEC+ has come under increasing pressure to pump more crude since Russia, the largest producer in the OPEC+ group, invaded Ukraine on Feb. 24, and Western nations enacted sanctions in response that have curtailed Russian oil exports.



Both Prince Abdulaziz and UAE energy minister Suhail al-Mazrouei said the focus was on balancing crude oil markets and satisfying consumers.



&#8220;We have one mission and only one mission which is stabilizing the market. So we cannot be politicizing, or bringing politics to the organization having that debate &#8230; our aim is to calm the market,&#8221; said Mazrouei.



&#8220;If we are asking anyone to leave, then we are raising the prices, then we are doing something that is against what consumers want.&#8221;



The Gulf states, close U.S. allies, are members of the Organization of the Petroleum Exporting Countries as well as OPEC+, which includes OPEC and other large oil producers such as Russia and Mexico.



<h3 class="wp-block-heading" id="h-read-more-opec-meets-quickly-sticks-to-script-dodges-debate-on-geopolitics">Read more: <a href="https://www.cnbcafrica.com/2022/opec-meets-quickly-sticks-to-script-dodges-debate-on-geopolitics/">OPEC+ meets quickly, sticks to script, dodges debate on geopolitics</a></h3>



Prince Abdulaziz said Russia produces enough oil every day equal to about 10% of the world&#8217;s consumption.



If the security of oil supplies is threatened the world economy will suffer. That security is a priority now and some countries are forgetting about the affordability of energy, he said.



Yemen&#8217;s Iran-aligned Houthis have escalated attacks on Saudi Arabia&#8217;s oil facilities in recent weeks and ahead of a temporary truce for the Muslim holy month of Ramadan. The movement have also launched attacks on the UAE.



Houthis said they launched recent attacks on Saudi energy facilities and the Saudi-led coalition said oil giant Aramco&#8217;s petroleum products distribution station in Jeddah was hit, causing a fire in two storage tanks but no casualties.



Prince Abdulaziz drew attention to the politics at play inside OPEC that members have to accept.



&#8220;I ask you, who has been throwing these rockets and missiles at us and at Abu Dhabi? Who is financing? Who&#8217;s training?,&#8221; he said at the industry event, referring to Saudi Arabia&#8217;s rival Iran, also a key player in OPEC.



&#8220;Who&#8217;s supplying these weapons? It is a member of OPEC. I leave it for your imagination &#8230; A cynical mind sometimes helps.&#8221;



(Reporting by Maha El-Dahan, Riham Alkousaa and Yousef Saba; Writing by Michael Georgy; Editing by Kirsten Donovan, Christian Schmollinger and David Evans)

FILE PHOTO: The logo of the Organisation of the Petroleum Exporting Countries (OPEC) sits outside its headquarters in Vienna

UAE, Saudi say OPEC+ should not play politics

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



March 29 (Reuters) &#8211; Gauges for emerging market stocks and currencies rose on Tuesday, with the rouble hitting a one-month high against the dollar, as investors await progress on peace talks between Ukraine and Russia.



The MSCI&#8217;s index for emerging market stocks&nbsp;.MSCIEF&nbsp;rose 0.6%, as it found its footing after worries sparked by a two-day lockdown in Shanghai. China&#8217;s Shanghai Composite index&nbsp;.SSEC&nbsp;ended the day lower.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VW06B&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Currencies in emerging markets&nbsp;.MIEM00000CUS&nbsp;rose 0.4% as the dollar&nbsp;=USD&nbsp;edged lower after Ukrainian and Russian negotiators met in Turkey for the first direct talks between the two sides in nearly three weeks.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2VV66A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;It is unclear to what extent the negotiations will make any progress, but hopes of an end to the war might be refuelled,&#8221; said You-Na Park-Heger, forex and emerging markets analyst at Commerzbank.



&#8220;If the negotiations were to end without any progress being made disappointment is likely to take hold.&#8221;



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;strengthened around 2% in Moscow trading, hitting a session high of 87.40 against the dollar, while dollar-denominated stocks in the region&nbsp;.IRTS&nbsp;gained around 9%.



Financial markets have been roiled since the onset of the war and as the West continues to harden its stance against Moscow in response to its invasion of Ukraine.



Turkey&#8217;s lira&nbsp;TRY=&nbsp;fell 0.2%, while South Africa&#8217;s rand&nbsp;ZAR=&nbsp;climbed 0.6% inching toward the five-month peak it hit last week as gold prices steadied.



The rand has been fairly shielded from the fallout of the war, along with Latin American currencies, as they are commodity exporting nations.



On the other hand, importers of commodities and raw materials from regions such as central and eastern Europe as well as Turkey, have suffered far more.



Latin American currencies&nbsp;.MILA00000CUS&nbsp;have gained 6.5% in March, and are set to post their biggest monthly percentage gain since June 2016, banking on the recent rally in commodity and raw material prices.



Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;and Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;were mixed against the euro ahead of elections over the weekend.



For GRAPHIC on emerging market FX performance in 2022, 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 2022, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



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



(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Amy Caren Daniel)

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

Stocks, currencies gain with focus on Russia-Ukraine peace talks

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline.jpeg" alt="" class="wp-image-415979" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>A general view shows Marathon Petroleum’s oil refinery, following Russia’s invasion of Ukraine, in Anacortes, Washington, March 9, 2022. David Ryder | Reuters</figcaption></figure>



Oil prices are racing higher again and are expected to see more sharp spikes and sudden dips as the world deals with potential supply shortages.



For consumers, that means a longer period of expensive gasoline — with prices at the pump staying above $4 per gallon. For the economy, that means more inflation. Besides the strain on consumers, there will be higher costs across the board for any business relying on petroleum — &nbsp;from airlines and truckers to chemical companies and plastics producers.



Russia’s invasion of Ukraine came at a time when oil prices were already moving higher on tight supplies and growing demand from reopening economies. Now, the loss of a big chunk of Russia’s 5 million barrels a day of exports has put additional pressure on prices.



“I remain constructive on oil because I do not see any immediate off ramp to the war in Ukraine. Market participants have been consistently giving Putin the benefit of the doubt on his professed willingness to negotiate, but we think we should pay attention to his actions not his words,” said Helima Croft, head of global commodities strategy at RBC.



Oil jumped more than 7% Monday, as the European Union considers joining the U.S. in an oil embargo and after Saudi Aramco facilities were attacked over the weekend by Iranian-aligned Houthi rebels in Yemen.



Analysts also acknowledge that there could be sudden collapses in the price, particularly if there were some resolution of Russia’s attack on Ukraine.



“The range of outcomes in any given two-week period is wide. We went from $90 to $130 per barrel in a month. We went from $125 to $95 in a week, and that is going to be the normal type of volatility. $10 a week is nothing, 10% moves nothing,” said Daniel Pickering, &nbsp;chief investment officer of Pickering Energy Partners.



Pickering said the market was back to trading fear Monday.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/oil-prices-surge-as-russia-ukraine-crisis-escalates/">Oil prices surge as Russia-Ukraine crisis escalates</a></h3>



“You don’t want to be taking higher price points off the tables in terms of possibility, but I think what we saw is there’s the fear of something and right now it’s the fear of actions around Russian barrels and that’s going to create a lot of volatility,” he said. “If it turns into reality, I think you’re biased higher from these levels. You put $130 back in play if we actually start canceling Russian barrels.”



Pickering estimates that 2 million to 3 million barrels a day of waterborne Russian oil has been frozen out of the market, without immediate buyers. He said China and India are continuing to buy Russian crude. “I’m sure on the margins there will be others willing to take more over time,” he said.



Pickering said he’s not forecasting a return to $130 per barrel oil, but adds it could happen. West Texas Intermediate crude futures for April settled up 7% at $112.12 per barrel Monday.



Francisco Blanch, Bank of America head of commodities and derivatives, said the U.S. market is set up for periodic price spikes.



He said in a note, that limited production growth and strong refining and export demand are making for tight inventories at the U.S. Cushing storage facility in Oklahoma. That is a central oil facility for crude traded in U.S. futures contracts. The lack of storage there could make for more volatility in the futures market, since the holder of a futures contract must take physical delivery when the contract expires.



In April 2020, that convergence led to a negative price for WTI oil as investors were forced to liquidate their positions at negative prices during a period of very low demand. Now, the opposite could cause price spikes during expiration, as investors try to buy, Blanch noted.



The April contract expires Tuesday. “Given the market is desperately short barrels in the near term, we see increased risk of a short squeeze as WTI moves towards expiry each month,” said Blanch.



<h3 class="wp-block-heading" id="h-european-ban">European ban?</h3>



The European Union is expected to discuss banning Russian crude, but there is disagreement among members. There are talks this week between EU governments and President Joe Biden in a series of summits aimed at hardening the response to Russia’s invasion.



“I think the prospect of either sanctions or an embargo on Russian oil in Europe is really increasing, and the pressure is going to grow over the week,” said Dan Yergin, vice chair of IHS Markit.



“But it needs to be done carefully and in careful consultation with the industry to minimize this disruption,” said Yergin.



Croft said she is skeptical Europe will go along with a ban. Europe is Russia’s biggest export market for both oil and natural gas.



“I still think Germany will block any EU effort to impose energy sanctions, so the economic lifeline provided to Putin by oil and gas sales will persist,” said Croft.



Russia’s financial system has been sanctioned by the U.S. and allies, and the U.S. has banned Russian oil. Croft said more sanctions could be forthcoming.



“The brutality of his military campaign will likely mean that the sanctions are here to stay for the foreseeable future and that Russia will remain a toxic asset,” she said. “I think we should pay closer attention to Congress because it could move to impose secondary sanctions which would essentially force Germany’s hand on the issue.”



<h3 class="wp-block-heading" id="h-supply-shortages">Supply shortages</h3>



Saudi Arabia oil facilities were attacked over the weekend by Iranian-aligned Houthis. The missiles and drone attacks were fired at a water-desalination plant, a liquified natural gas plant, a power station and a gas facility. Aramco said there was no impact on supplies.



“The Saudis are using this Houthi attack as a cover to say they absolve themselves from any oil market supply responsibility because of the attack,” said John Kilduff, partner with Again Capital. He noted Saudi’s relations with the U.S. have been strained during the Biden administration.



“The Saudi refusal to add supply is exacerbating the pricing issue for consumers around they’re exacerbating the pricing issue for consumers around the world,” said Kilduff.



Saudi Arabia is a leading member of OPEC+, which includes other OPEC producers and Russia. The group agreed to return 400,000 barrels a day to the market each month until June. At its last meeting, OPEC+ did not signal whether it would consider adding any more barrels.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/opec-meets-quickly-sticks-to-script-dodges-debate-on-geopolitics/">OPEC+ meets quickly, sticks to script, dodges debate on geopolitics</a></h3>



Saudi Arabia has been silent on the invasion and has not promised to add any more oil to the market beyond its previous plans. U.K. Prime Minister Boris Johnson visited the kingdom last week, and U.S. Secretary of State Antony Blinken is also expected to visit.



“Saudi Arabia remains resolute on sticking with OPEC+ easing formula. Boris Johnson returned to London empty handed and now with the stepped up Houthi attacks on energy infrastructure, the kingdom is warning that it may not be able to maintain current production levels,” said Croft.



Yergin said it would be difficult for Saudi Arabia to break from the OPEC+ partnership. “The OPEC+ partnership was really a Saudi/Russian arrangement and before all this started it was a source of stability for the market,” said Yergin. “Ever since the price collapse of 2014, their goal had always been to bring Russia into an agreement rather than have Russia stand outside as a competitor. Their relationship has deepened and they’ve become strategic partners.”



Yergin said the relationship was brought together at the highest levels — between Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman.



&nbsp;“If OPEC doesn’t turn more barrels back on, the market’s going to tighten up,” said Pickering. “I don’t think they feel hugely compelled in the near term. I think there’s a lot of gamesmanship going on &#8230; I think there’s a dynamic that says production from OPEC is going to continue to move higher, but not necessarily with the speed Europe and the U.S. would like.”



<h3 class="wp-block-heading" id="h-other-supply-sources">Other supply sources</h3>



The U.S. has been looking for other sources of supply including possible barrels from Venezuela, which has been under sanctions.



The market had been expecting a deal with Iran that would allow it to return more than 1 million barrels a day to the market in exchange for its agreement that it would end its nuclear program. But those talks have bogged down in recent weeks.



U.S. producers could also bring back more oil, but their contributions are not expected to be much greater than the 900,000 to 1 million additional barrels a day already expected for this year.



Some oil executives were meeting at the White House Monday.



“I don’t think the industry feels hugely compelled to jump into action. There’s price volatility. There’s a windfall profit tax discussion,” said Pickering. “We need to see if the government is going to provide any carrots. They’ve certainly provided sticks, but I don’t think sticks will work.”



Correction:&nbsp;Antony Blinken is the U.S. Secretary of State. An earlier version misspelled his name.

107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline

Oil is likely to remain volatile and expensive as world deals with supply shortages

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="604" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/26878923862_63c80afa84_o-820x604.jpg" alt="" class="wp-image-413245" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/26878923862_63c80afa84_o-820x604.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/26878923862_63c80afa84_o-300x221.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/26878923862_63c80afa84_o-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/26878923862_63c80afa84_o-768x566.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/26878923862_63c80afa84_o-1536x1131.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/26878923862_63c80afa84_o-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Akinwumi Ayodeji Adesina, President, African Development Bank (AfDB)
World Economic Forum | Kigali, 12 May 2016
Photo: via Flickr</figcaption></figure>



DAKAR, March 17 (Reuters)&nbsp;&#8211;&nbsp;The African Development Bank (AfDB) has secured $32.8 billion in investment commitments for projects in Africa, the bank&#8217;s president said at the closing of a meeting with investors on Thursday.



The largest deal secured at the three-day Africa Investment Forum was $15.6 billion for the Lagos-Abidjan mega highway, connecting West Africa&#8217;s two major cities in Nigeria and Ivory Coast, said AfDB President Akinwumi Adesina.



The highway of about 1,200 km (745 miles) will have four to six lanes and should be completed in about six years, he said.



<h3 class="wp-block-heading" id="h-read-more-britain-to-raise-nigerian-renewable-climate-change-investments">Read more: <a href="https://www.cnbcafrica.com/2022/britain-to-raise-nigerian-renewable-climate-change-investments/">Britain to raise Nigerian renewable, climate change investments</a></h3>



&#8220;Africa is a very bankable continent. We&#8217;ve gone through hard times because of the COVID-19 situation but here we are on a rebound,&#8221; said Adesina. &#8220;Africa is back for investments.&#8221;



The projects, part of the bank&#8217;s COVID-19 response, touch on sectors including agriculture and agro-processing, education, energy and climate, healthcare, minerals and mining, and information and communications technology.



Adesina said that on the health side, projects include a new medical city in Accra, a fund for health services for low-income populations in South Africa, and two platforms for manufacturing pharmaceutical products: one in West Africa and one in Kenya.



The forum was meant to be held late last year but was postponed due to a surge of Omicron coronavirus variant infections.



(Reporting by Bate Felix; Writing by Nellie Peyton; Editing by Jonathan Oatis)

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African Development Bank secures $32.8 bln for projects in Africa

<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/gold-is-money-2430051_1920-820x547.jpg" alt="" class="wp-image-403465" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/gold-is-money-2430051_1920-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/gold-is-money-2430051_1920-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/gold-is-money-2430051_1920-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/gold-is-money-2430051_1920-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/gold-is-money-2430051_1920.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via Pixabay</figcaption></figure>



WASHINGTON, March 17 (Reuters)&nbsp;&#8211;&nbsp;The United States on Thursday imposed sanctions on Belgian businessman Alain Goetz and a network of companies tied to him that it accused of being involved in the illicit movement of gold from Democratic Republic of Congo.



The U.S. Treasury Department, in a statement, said among the targets was the African Gold Refinery in Uganda, which Goetz operates, and several other companies he owns or controls. It accused Goetz and the companies of being involved in illegal gold exports valued at hundreds of millions of dollars per year.



In a statement, Goetz said his inclusion on the U.S. sanctions list &#8220;seems to be based on misinformation&#8221;. He said he has not been to Congo in more than 20 years and has not kept any active contacts within Congo.



Goetz said he was asked to set up East Africa&#8217;s first gold refinery in 2014, adding that &#8220;nothing has made me prouder than to see the impact that African Gold Refinery has had on the gold industry in the Great Lakes region&#8221;.



The Treasury said a network of armed groups, smugglers and companies generate illicit revenue from the gold industry through forced labor, smuggling or other means. It said the illicit movement of gold provides revenue to armed groups that threaten peace and security in Congo.



&#8220;Conflict gold provides the largest source of revenue to armed groups in eastern DRC where they control mines and exploit miners,&#8221; the Treasury&#8217;s under secretary for terrorism and financial intelligence, Brian Nelson, said in the statement.



&#8220;Alain Goetz and his network have contributed to armed conflict by receiving DRC gold without questioning its origin.&#8221;



The Treasury said Goetz&#8217;s network sources gold from Congo, Kenya, South Sudan and Tanzania.



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Goetz said the Treasury&#8217;s Office for Foreign Assets Control (OFAC) had presented no documented evidence to back up their claims, and that he was confident this &#8220;mistake&#8221; would be swiftly rectified.



The Ugandan government did not immediately reply to a request for comment.



Others designated on Thursday that the Treasury said were owned or controlled by Goetz include United Arab Emirates-based Agor DMCC and UAE-based Goetz Gold LLC.



Agor did not immediately respond to a request for comment.



Goetz Gold LLC and the African Gold Refinery could not immediately be reached for comment.



The Treasury said that since 2016, the African Gold Refinery, considered one of the largest gold refineries in Africa, has sourced illicit gold from mines in regions of Congo that are controlled by armed groups, including the Mai-Mai Yakutumba and Raia Mutomboki militia.



Thursday&#8217;s move freezes any U.S. assets of those designated and generally bars Americans from dealing with them.



&#8220;This strong action by the U.S. will send shockwaves throughout the global gold supply chain,&#8221; Sasha Lezhnev, policy consultant at non-governmental organisation The Sentry, said.



&#8220;Turning a blind eye to conflict gold now carries a heavy price.&#8221;



(Reporting by Daphne Psaledakis, Additional reporting by David Lewis and Elias Biryabarema; Editing by Tim Ahmann and Hugh Lawson)

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U.S. imposes sanctions over illicit exports of gold from Congo

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/KGJLDHJ75ZNCHLECJOATMMUGCY-820x545.jpg" alt="" class="wp-image-415897" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/KGJLDHJ75ZNCHLECJOATMMUGCY-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/KGJLDHJ75ZNCHLECJOATMMUGCY-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/KGJLDHJ75ZNCHLECJOATMMUGCY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/KGJLDHJ75ZNCHLECJOATMMUGCY-768x510.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/KGJLDHJ75ZNCHLECJOATMMUGCY.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Arrangement of various world currencies including Chinese Yuan, Japanese Yen, US Dollar, Euro, British Pound, Swiss Franc are pictured in Warsaw January 26, 2011. REUTERS/Kacper Pempel/Files </figcaption></figure>



LONDON, March 15 (Reuters) &#8211; Investors are more concerned about the outlook for global growth than at any time since the financial crisis in 2008, and they have ramped up their cash holdings to a two-year high, according to a monthly fund manager survey by BofA.



The majority of investors managing about $1 trillion in assets polled between March 4 and 10 now expect an equity bear market in 2022 and allocations to global equities have dropped to their lowest levels since May 2020.



Cash levels among investors rose to nearly 6% while allocations to commodities soared to a record 33%. Hedge funds net exposure to stock markets is at its lowest level since April 2020, according to the survey.



The top crowded trade is long oil/commodities, the U.S. investment bank said in the note, with long technology stocks and long ESG ranked second and third respectively. Nearly half of the investors surveyed expect oil will produce the best returns in 2022.



The European edition of the monthly fund manager survey made for grim reading with investors slashing their growth outlook for Europe in response to Russia&#8217;s invasion of Ukraine.



<h3 class="wp-block-heading" id="h-read-more-the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening">Read more: <a href="https://www.cnbcafrica.com/2022/the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening/">The Federal Reserve is scaring markets with the triple threat of policy tightening</a></h3>



A net 69% of respondents expect the European economy to weaken over the coming year, the highest share since 2011. The 81 percentage point swing from February&#8217;s net 12% who still expected to see growth marks the biggest month-on-month drop since BoFA&#8217;s records began in 1994.



In response to the darkening growth outlook, about 61% of investors think the European market has peaked for this cycle, up from 22% in the previous edition of the survey.



Investors have also slightly increased their expectations for the number of rate hikes from the U.S. Federal Reserve in 2022 even as liquidity conditions have worsened considerably to their lowest since the coronavirus pandemic hit financial markets in March and April 2020.



&#8220;This is notable because central banks have historically been much less inclined to hike when liquidity conditions are very poor,&#8221; BofA said.



A net 44% of European investors expect European inflation to rise over the next twelve months, while last month 38% expected lower inflation. At a global level, a net 5% of investors think global inflation will decline, down from a 13-year high of 56% last month, BoFA said.



(Reporting by Saikat Chatterjee; Editing by Tommy Wilkes, Kirsten Donovan)

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Africa’s most vulnerable hit by Russia’s war in Ukraine, says IMF