<figure class="wp-block-gallery columns-1 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex"><ul class="blocks-gallery-grid"><li class="blocks-gallery-item"><figure><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/20746213365_e408aa2865_z.jpg" alt="" data-id="412407" data-full-url="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/20746213365_e408aa2865_z.jpg" data-link="https://www.cnbcafrica.com/?attachment_id=412407" class="wp-image-412407" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/20746213365_e408aa2865_z.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/20746213365_e408aa2865_z-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/20746213365_e408aa2865_z-135x90.jpg 135w" sizes="auto, (max-width: 640px) 100vw, 640px" /></figure></li></ul><figcaption class="blocks-gallery-caption">Flickr Image: Mayor Eric Garcetti, Councilmember Joe Buscaino, Councilmember Paul Krekorian and members of the Fire Commission</figcaption></figure>



Los Angeles officials on Wednesday signaled they would vote next week to prohibit unvaccinated people from entering most businesses in the United States&#8217; second-largest city, one of the nation&#8217;s most severe crackdowns so far of the COVID-19 pandemic.



All but one of the City Council members present on Wednesday said they supported the proposed &#8220;emergency&#8221; ordinance, which would require proof of vaccination to enter restaurants, bars, shopping centers, gyms and other indoor spaces.



&#8220;I am sick and tired of yahoos going into Trader Joe&#8217;s (grocery store) refusing to wear a mask,&#8221; City Council member Paul Kerkorian said in angry remarks. &#8220;I am fed up with people who want to make this into such a politicized issue they have lost all semblance of civility in our society.&#8221;



If the proposal is approved next week, as expected, Los Angeles would join San Francisco and New York among major U.S. cities requiring proof of vaccination for indoor businesses. The new rule would take effect in November.



Political leaders across the United States, led by Democratic President Joe Biden, have ratcheted up pressure on the unvaccinated in recent weeks. Laws requiring proof of vaccinations are deeply controversial in the United States, with many Americans criticizing them as unconstitutional and authoritarian.



A majority of the Los Angeles City Council was prepared to vote in favor of the proof-of-vaccine measure on Wednesday. They were frustrated in that effort by council member Joe Buscaino, who, by withholding his vote, stood in the way of a so-called &#8220;unanimous consent.&#8221;



Buscaino said the vaccine mandate could not be enforced, citing a report by the city&#8217;s Department of Building and Safety that it was not equipped to take on such a law enforcement role.

Doctor giving a senior woman a vaccination

Los Angeles moves toward barring the unvaccinated from most businesses

<figure class="wp-block-image"><img decoding="async" src="https://cdn.pixabay.com/photo/2017/09/24/12/11/mine-2781662_1280.jpg" alt="Mine Extraction Coal - Free photo on Pixabay"/><figcaption> Mine Extraction (Coal) &#8211; Image from Pixabay</figcaption></figure>



South Africa told visiting climate envoys from the United States, Britain, Germany and France that it needs major financial support to move away from coal, the environment department said on Wednesday.



South Africa is the world&#8217;s 12th biggest carbon emitter, according to the Global Carbon Atlas, emitting 479 million tonnes of carbon dioxide equivalent (Mt CO2e) in 2019. It is also by far Africa&#8217;s largest emitter.



This month, the government adopted a more ambitious emissions reduction target of 350-420 Mt CO2e per year by 2030, weeks before the United Nations COP26 climate summit, where it hopes to wring money out of rich countries for a swifter transition to renewable energy.



&#8220;While South Africa is committed to a just transition (to cleaner energy sources), we need certainty of&#8230;financing &#8230; to accelerate this transition. We do need an irrevocable agreement that we can sign at COP26,&#8221; the environment department said.



South Africa&#8217;s struggling state power utility, which produces most of its power by burning coal &#8211; more than 80% of the country&#8217;s power is produced this way &#8211; wants billions of dollars to replace its heavily polluting coal plants with cleaner alternatives.



South Africa&#8217;s delegation comprising the environment, trade and public enterprises ministers and deputy finance and foreign ministers told the Western climate envoys on Tuesday that the financial support should include concessional and grant funding which takes into account current fiscal constraints.



The environment department cited repurposing retiring coal plants, investment in low-carbon power generation and grid infrastructure, and electric vehicle manufacturing as goals.



This week, consultancy Meridian Economics proposed a new funding model for the shift away from coal that it said could unlock billions of dollars of cheap financing.



It would involve the government taking out long-term debt, with the effective borrowing cost lowered either by wealthy nations guaranteeing the debt or South Africa receiving cash incentives for its emissions reductions.



A portion of the money raised would be earmarked for a fund to support thousands of workers losing jobs in coal plants &#8211; a political headache for a government that needs union support.

mine-2781662_1280

South Africa tells Western envoys it needs funds to shift from coal

<div class="wp-block-image"><figure class="aligncenter is-resized"><img loading="lazy" decoding="async" src="https://live.staticflickr.com/2839/34163744986_da1824c8a4_b.jpg" alt="SM17 Seminar: Central Bankers and Inclusive Growth | Flickr" width="760" height="523"/><figcaption> Kenya Central Bank Governor Patrick Njoroge <a rel="noreferrer noopener" target="_blank" href="https://www.google.com/url?sa=i&amp;url=https%3A%2F%2Fwww.flickr.com%2Fphotos%2Fimfphoto%2F34163744986&amp;psig=AOvVaw3TuC6yOqMXiRms_X-Uj1yo&amp;ust=1633004993158000&amp;source=images&amp;cd=vfe&amp;ved=0CAwQjhxqFwoTCKj2-_-XpPMCFQAAAAAdAAAAABAD">SM17 Seminar: Central Bankers and Inclusive Growth </a> Image : <a rel="noreferrer noopener" target="_blank" href="https://www.flickr.com/photos/imfphoto/34163744986">Flickr</a>  Creator: Michael Spilotro  </figcaption></figure></div>



&nbsp;Kenya Central Bank Governor Patrick Njoroge said on Wednesday he expects economic growth to rebound this year, helped by sectors such as manufacturing, but that growth could be curtailed by the impact of drought on the agricultural sector.



Growth this year would be 6.1% and 5.6% in 2022, Njoroge told a virtual news conference. Last year&#8217;s economic contraction of 0.3% was limited by policy responses that kept the economy from shrinking more, he said.



On Tuesday, Kenya&#8217;s central bank held its benchmark lending rate at 7.0%, with its monetary policy committee saying it had taken note of emerging local and global inflationary pressures.



The central bank said the continued reopening of the services sectors, a recovery in manufacturing, and stronger global demand would spur the economy this year.



Njoroge said, however, there was concern over the agricultural sector.



&#8220;The one sector to flag is agriculture, and agriculture remains most uncertain largely because of the rains. It is true there are some parts of the country that are getting adequate rains, and there also parts of the country where there is drought,&#8221; he said.



Poor rainfall in parts of Kenya is expected to push 2.1 million people into acute food insecurity in the next six months, the International Rescue Committee said on Tuesday.



The finance ministry says it forecasts 2021 economic growth to exceed 6%.



Kenya&#8217;s economy, like others, has been hobbled by the pandemic, as restrictions to curb the spread of the coronavirus reduced revenues and stifled growth.



Recovery has started, but the pace could be curbed by a shortage of COVID-19 vaccines and new waves of infections, driven by the highly infectious Delta variant.



Njoroge said he the foreign exchange market should not be cause for concern.



&#8220;We don&#8217;t expect much concern coming from the FX market, and also in terms of reserves &#8230; which we believe are adequate for any potential shocks,&#8221; he said.



The shilling has lost 1.11% to the dollar so far this year. On Tuesday, it hit 110.40/60, Refinitiv data showed.



Official foreign exchange reserves stand at $9.45 billion, or 5.78 months of import cover.



Remittances, one of the East African economy&#8217;s sources of foreign exchange, would rise to about $3.4 billion this year from $3.09 billion in 2020, Njoroge said.&nbsp;

34163744986_da1824c8a4_b

Kenya central bank governor sees higher GDP growth in 2021

<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/image.png" alt="" class="wp-image-412379" width="673" height="446" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/image.png 792w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/image-300x199.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/image-136x90.png 136w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/image-768x509.png 768w" sizes="auto, (max-width: 673px) 100vw, 673px" /><figcaption>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</figcaption></figure></div>



Central banks that launched massive emergency support to fight the pandemic last year are now planning a global turn in the other direction, with gaps already emerging in their perceived risk of inflation, the need to respond to it, and the pace of the likely return to normal monetary policy.



They are confronted with common supply shocks and common risks around a pandemic that continues to shape commerce.



&#8220;Globally we are still in for a long process,&#8221; of reopening and adapting to the post-pandemic economy, St. Louis Federal Reserve President James Bullard said this week in a Reuters interview.



But the reopening, and particularly the associated inflation, is being felt differently across the developed world, testing officials&#8217; understanding of the post-pandemic economy and their ability to hit a shared 2% inflation target without derailing global growth.



The heads of the world&#8217;s four major central banks gather for a mostly virtual European Central Bank forum on Wednesday, and if last year was marked by a uniform rush to stave off the worst, their exit strategies are already diverging.



That&#8217;s led to major policy scuffling both in Europe and the United States over how much inflation risk central banks should tolerate as they try to make up for sluggish prices in the years since the Great Recession a decade ago &#8211; a major gamble, in effect, over whether the post-pandemic world will work the same as before.



Policy divergence among the world&#8217;s major central banks can influence markets worldwide, shifting capital flows, exchange rates and trade patterns. There may even be limits on how far a central bank like the Fed might go in normalizing policy or raising interest rates if major partners like the ECB aren&#8217;t moving in the same direction.



It is still early in the transition from the pandemic, but differences are already emerging.



“The key challenge is to ensure that we do not overreact to transitory supply shocks,” ECB President Christine Lagarde said at her bank&#8217;s premier research conference on Tuesday, and policy “must remain focused on steering the economy safely out of the pandemic emergency&#8221; rather than squelching any short-term increase in prices.



Like the ECB, the Fed is also banking on inflation easing largely on its own. But discussion of the risks has become more prominent, and in projections last week virtually all Fed officials said it was more likely inflation would run hotter than expected than otherwise.



Even as Lagarde spoke, Fed Chair Jerome Powell testified to the U.S. Congress about &#8220;bottlenecks, hiring difficulties, and other constraints&#8221; that have led the Fed to project inflation this year at 4.2%, twice the official target, and may make it more persistent.



<h2 class="wp-block-heading" id="h-cost-of-living-crisis">COST-OF-LIVING CRISIS?</h2>



The potential problems are manifold. The pandemic still rages, and while businesses and consumers have adapted to a large degree, it still shapes who is showing up for work, what goods and services get produced, and how fast those goods are moved around the planet and how smoothly those services are delivered.



Workers are moving back into jobs, but more slowly in many places than anticipated. The supply shocks that began with the first coronavirus shutdowns in 2020 continue to reverberate, whether in the form of fuel shortages in the UK, German auto plants waiting for computer chips, U.S. factories lacking industrial goods, backlogged shipping routes, or rising prices.



The Fed last week said it was nearing its first steps to wind down the emergency bond buying launched in March of 2020, and half of U.S. policymakers at their most recent meeting now say interest rates may need to increase next year.



For the Bank of England, the tipping point may already be in view, with markets expecting a rate increase no later than February, and yearly price increases of 4% beginning to show in public opinion.



&#8220;Talk of a &#8216;cost of living&#8217; crisis is gaining traction &#8230; and the public may be looking at the BoE to lean against inflation risks coming out of the pandemic,&#8221; Deutsche Bank economist Sanjay Raja wrote in a note to clients on Friday.



Japan&#8217;s core consumer inflation index, by contrast, remained flat in August, indicating that country&#8217;s decades-long battle with weak prices continues. Wholesale prices are rising, pushed by global commodities inflation, but growth is weak and Bank of Japan policy expected to remain loose.



The ECB has downplayed any post-pandemic policy shift.



Bondbuying through its Pandemic Emergency Purchase Programme will decline under the legislation that authorized it. But the bank is expected to expand other programs to partly compensate, with Lagarde arguing inflation remaining below the 2% target is a bigger risk than prices soaring persistently above it.



Looking back on the last decade it&#8217;s a natural concern.



By 2012 all the major central banks had fixed 2% as their preferred inflation target, then proceeded to persistently run short of it through a decade of sluggish growth.



The policy bias is now to err on the other side &#8211; and to hope the world cooperates.

image

Central banks parse inflation risk as turn from pandemic policy begins

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="505" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/4WL35L7RTVJ2VKKBT26MIXV5TE-820x505.jpg" alt="" class="wp-image-412374" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/4WL35L7RTVJ2VKKBT26MIXV5TE-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/4WL35L7RTVJ2VKKBT26MIXV5TE-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/4WL35L7RTVJ2VKKBT26MIXV5TE-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/4WL35L7RTVJ2VKKBT26MIXV5TE-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/4WL35L7RTVJ2VKKBT26MIXV5TE.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Kenya Airways planes are seen through a window as the Jomo Kenyatta international airport reopens after flights were suspended following the coronavirus disease (COVID-19) outbreak in Nairobi, Kenya August 1, 2020. REUTERS/Njeri Mwangi/File Photo</figcaption></figure>



JOHANNESBURG, Sept 28 (Reuters) &#8211; South African Airways (SAA) and Kenya Airways (KQ) have signed a cooperation agreement with a long-term view to create a pan-African airline group, the two companies said on Tuesday.



&#8220;It is not a merger but a partnership that seeks to re-organise KQ and SAA assets into an ecosystem that will make the South African and Kenyan aviation sector more competitive,&#8221; Kenya Airways said in a statement.



SAA said in a separate statement that the pact did not preclude either firm from pursuing commercial cooperation with other carriers and said collaborating would help contain costs.



<h3 class="wp-block-heading" id="h-read-more-singing-and-dancing-as-south-africa-s-national-airline-returns-to-the-skies">Read more: <a href="https://cnbcafrica.com/2021/singing-and-dancing-as-south-africas-national-airline-returns-to-the-skies/?fbclid=IwAR2dk_XGcVip729-UR-chxqCu2PQweOx3XCHRcpgFKmG0JDKnWzrtrK9BJ4">Singing and dancing as South Africa’s national airline returns to the skies</a></h3>



State-owned SAA restarted domestic flights last week and this week launches a scaled-down international service to five African capitals, after its longstanding financial woes were exacerbated by the COVID-19 pandemic.



It exited administration in April thanks to another state bailout, and the government has said it will sell a 51% stake in the airline to a local consortium.



Kenya Airways&#8217; passenger business has also been severely constrained by COVID-19, and it has focused on cargo to minimise losses.



Kenya has plans to renationalise the airline, whose code-share agreement with Air France-KLM for Africa-Europe routes ends this month. 



(Reporting by Alexander Winning in Johannesburg and George Obulutsa in Nairobi; editing by David Evans)

4WL35L7RTVJ2VKKBT26MIXV5TE

SAA, Kenya Airways have long-term plan for pan-African airline group

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



LAGOS, Sept 27 (Reuters) &#8211; Top African oil exporters Nigeria and Angola will struggle to boost output to their OPEC quota levels until at least next year as underinvestment and nagging maintenance problems continue to hobble output, sources at their respective oil firms warn.



Their battle mirrors that of several other members of the OPEC+ group who curbed production in the past year to support prices when COVID-19 hit demand, but are now <a href="https://www.reuters.com/business/energy/opec-compliance-with-oil-cuts-rises-116-august-sources-say-2021-09-21">failing to ramp up output</a> to meet soaring global fuel needs as economies recover.



The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed in July to add 400,000 barrels per day (bpd) to production from August until December 2021, slowly phasing out the unprecedented supply cuts.



However, Nigeria and Angola have underproduced by an average of 276,000 bpd so far this year out of their combined average OPEC quota of 2.83 million bpd according to Refinitiv data. They are likely to remain below quota through the end of the year, according to industry sources and Reuters calculations.



The oil not pumped is worth hundreds of millions of dollars.



Lockdowns aimed at stemming <a href="https://www.reuters.com/article/us-health-coronavirus-oil-maintenance-an-idUKKBN22V0LT">COVID-19 last year hindered the supply</a> of spare parts and prevented maintenance work. Companies battered by a 20-year low in crude prices also postponed major investments.



Kola Karim, chief executive of Nigerian producer Shoreline Natural Resources which has eight producing fields pumping around 50,000 bpd, said the backlog meant it would be one to two quarters before Nigeria could pump at its full capacity.



The maintenance backlog covers everything from servicing wells to replacing valves, pumps and pipeline sections. Companies are also behind on plans to do supplementary drilling to keep production stable. These issues impacted virtually all companies in Nigeria, Karim said.



&#8220;So now things are breaking&#8230; we&#8217;re now facing the music,&#8221; he told Reuters, though he added that the country would catch up on production by early 2022 as companies rush maintenance and repairs.



Two sources, one at Nigerian state oil company NNPC and another close to Angolan state oil company Sonangol, confirmed the countries were struggling to raise output.



Spokesmen at NNPC and Nigeria&#8217;s oil and finance ministries did not reply to requests for comment.



Oil Minister Timipre Sylva told journalists last week that he expected Nigeria to meet its quota within a month or two, but did not specify how. The government has previously pointed to a recently signed oil overhaul law as key to boosting investment and production.



Angola&#8217;s finance ministry told Reuters that it could struggle to meet its target for years.



<h2 class="wp-block-heading" id="h-decline-and-underinvestment">DECLINE AND UNDERINVESTMENT</h2>



In June, Angola&#8217;s oil minister, Diamantino Azevedo, lowered its targeted oil output for 2021 by 27,000 bpd to 1.19 million bpd, citing in a statement production declines at mature fields, drilling delays due to COVID-19 and &#8220;technical and financial challenges&#8221; in deepwater oil exploration. That is below the current 1.33 million bpd quota.



Angola pumped roughly 1.3 million bpd in 2020, down from its record peak above 1.8 million bpd in 2008.



It has embarked on a string of reforms to boost output.



&#8220;The reality is only five countries can actually hit these quotas in our view,&#8221; said Amrita Sen of Energy Aspects. &#8220;The rest are struggling with high decline rates and underinvestment.&#8221;



Those five are Saudi Arabia, the United Arab Emirates, Kuwait, Iraq and Azerbaijan.



In Nigeria, five onshore export terminals run by oil majors, which typically export around 900,000 bpd, handled 20% less oil in July than the same time last year, despite relaxed quotas, according to analysis shared only with Reuters from consultancy Hawilti Ltd. The decline indicates lower production from all the onshore fields that feed these terminals.



Only French oil major TotalEnergies&#8217; new deep offshore oilfield and export terminal Egina, had been able to quickly turn the taps back on, said Mickael Vogel, director at Hawilti, citing an analysis based on data from Nigeria&#8217;s Department of Petroleum Resources.



Onshore oilfield output has lagged as companies struggled with a lack of workers and cash.



&#8220;Putting those wells back onstream has been more challenging than they thought,&#8221; Vogel said.



Nigeria has not met its quota since July last year according to Refinitiv data.



Angola, Africa&#8217;s second-largest exporter, has pumped below its target since September last year.



It has struggled for years as its oilfields age and decline, and exploration has been insufficient to compensate, Justin Cochrane, director for African Regional Research for IHS, said.



Angola&#8217;s largest fields began production in the early 2000s and are past their plateau.



The country made a <a href="https://www.reuters.com/article/us-africa-oil-reform-idUSKBN1XL1FF">string of reforms</a> in 2019 aimed at boosting exploration, including allowing companies to produce from marginal fields adjacent to those they already operate. The pandemic stunted the impact of those reforms. By May, not a <a href="https://www.reuters.com/article/global-oil-angola-idCNL8N2CT5W6">single rig was drilling in Angola</a> for the first time in nearly 40 years.



Since then, only three offshore rigs have resumed work.



&#8220;They&#8217;re swimming against the tide with declines outpacing new production,&#8221; Cochrane said.



(Additional reporting by Camillus Eboh in Abuja and Karin Strohecker in London; Editing by Dmitry Zhdannikov and Emelia Sithole-Matarise)

JFN5R5LQLJOE7L4Y2UY425AGMU

As OPEC reopens the taps, African giants losing race to pump more

Sept 23 (Reuters) &#8211; Broad-based gains on some relief over Evergrande lifted emerging market stocks on Thursday, while monetary policy decisions from Turkey and South Africa later in the day are among several central bank notices likely to drive market moves this week.



Chinese property developer Evergrande, beleaguered by $305 billion in debt, surged 16% following a day&#8217;s holiday after its Hengda Real Estate Group unit said it had &#8220;resolved&#8221; a coupon payment on an onshore bond, and its chairman reassured retail investors.



Investors now await further news on $83.5 million in interest payments on an offshore bond due on Thursday.



Easing fears further, U.S. Federal Reserve Chair Jerome Powell said he did not see Evergrande&#8217;s issues spilling over into the United States. The Fed signalled tapering could start as soon as November and last until mid-2022. The dollar weakened.



&#8220;Risky assets loved the (Fed&#8217;s) statement and updated projections as the Fed has well telegraphed that they were nearing a taper announcement and continue to show they are in no rush to deliver interest rate hikes,&#8221; said Edward Moya, senior market analyst at OANDA.



MSCI&#8217;s index of EM shares rose 0.6%, extending gains for a third straight session, with Hong Kong stocks rising 1% to lift off near one-month lows.



An index of Asian shares excluding Japan was set for its best session in two weeks, while those in Russia , South Africa and Hungary rose between 0.4% and 1%.



Shortly after the Fed&#8217;s decision, Brazil&#8217;s central bank hiked its key interest rate by 100 basis points as expected to 6.25% and flagged another increase later this year in an aggressive battle against rising inflation.



Growing expectations of tightening by the Fed has also contributed to most EM central banks adopting hawkish tones this year, as they seek to keep interest rate differentials attractive for carry trades.



On Thursday however Turkey&#8217;s central bank is expected to hold rates, resisting pressure from President Tayyip Erdogan to cut in a surging inflation environment.



&#8220;If the (bank) remains on hold today, we believe investors should price in the risk of a potential conflict between President Erdogan and the central bank,&#8221; said Berna Bayazitoglu, an analyst at Credit Suisse.



Turkey&#8217;s lira was steady ahead of the decision at 1100 GMT, having fallen some 17% since the ouster of hawkish central bank governor Naci Agbal in March.



As inflation remains benign in South Africa with the economy on track to contract this quarter, the rate is expected to stay at a record low of 3.50% with hikes expected only next year.



The rand was up 0.4% ahead of the monetary policy decision at 1300 GMT.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Susan Mathew in Bengaluru; Editing by Jan Harvey)

World map with charts and graphs as symbols of global finance

Stocks cheer Evergrande jump; Turkey, South Africa cenbanks eyed

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



LONDON, Sept 13 (Reuters) &#8211; OPEC on Monday trimmed its world oil demand forecast for the last quarter of 2021 due to the Delta coronavirus variant, saying a further recovery would be partially delayed until next year when consumption will exceed pre-pandemic rates.



The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report it expects oil demand to average 99.70 million barrels per day (bpd) in the fourth quarter of 2021, down 110,000 bpd from last month&#8217;s forecast.



&#8220;The increased risk of COVID-19 cases primarily fueled by the Delta variant is clouding oil demand prospects going into the final quarter of the year,&#8221; OPEC said in the report.



&#8220;As a result, second-half 2021 oil demand has been adjusted slightly lower, partially delaying the oil demand recovery into first-half 2022.&#8221;



<h3 class="wp-block-heading" id="h-read-more-oil-jumps-to-two-year-high-as-opec-and-allies-meet-to-decide-production-output">Read more: <a href="https://www.cnbcafrica.com/2021/oil-jumps-to-two-year-high-as-opec-and-allies-meet-to-decide-production-output/">Oil jumps to two-year high as OPEC and allies meet to decide production output</a></h3>



Governments, companies and traders are closely monitoring the speed that oil demand recovers from last year&#8217;s crash. A faster return could boost prices and challenge the view that the impact of the pandemic may curb consumption for longer or for good.



Despite the downward revision to the fourth-quarter, OPEC said world oil demand in the whole of 2021 would rise by 5.96 million bpd, virtually unchanged from last month.



The growth forecast for 2022 was adjusted to 4.15 million bpd, compared to 3.28 million bpd in last month&#8217;s report and an estimate of 4.2 million bpd given by OPEC sources during the group&#8217;s last meeting on Sept. 1.



&#8220;The pace of recovery in oil demand is now assumed to be stronger and mostly taking place in 2022,&#8221; OPEC said. &#8220;As vaccination rates rise, the COVID-19 pandemic is expected to be better managed and economic activities and mobility will firmly return to pre-COVID-19 levels.&#8221; 



(Editing by Emelia Sithole-Matarise)

OPEC sees Delta variant weighing on oil demand before 2022 growth

Sept 1 (Reuters) &#8211; Emerging market shares rose for a fourth straight session on Wednesday as heavyweight Chinese companies made healthy gains, although waning optimism about global economic growth kept sentiment in check.



Dour manufacturing PMIs from most of Asia as well as Russia on weak demand and supply disruptions from coronavirus restrictions worried investors about the ability to tide over a pandemic induced slump.



The Chinese yuan slipped slightly as did most other Asian units. Russia&#8217;s rouble, however, hit two-week peak, aided by rising oil prices. The greenback edged higher but stayed close to three-week lows.



&#8220;More signs of growth jitters could be weighing a tad on regional FX sentiments, but given potential easing of production drags from re-opening in various (Asian) economies, the extent of dampening in confidence could be contained,&#8221; Maybank strategists said.



Meanwhile, Turkey&#8217;s lira firmed 0.3% against the dollar after data showed the economy grew a massive 21.7% year-on-year in the second quarter, while PMIs showed factory activity grew in August.



In Poland, manufacturing grew but at a slower pace. The Polish zloty stayed close to eight week highs against the euro.



MSCI&#8217;s index of EM currencies was flat around more than two-month highs, while its stocks counterpart rose 0.1% after posting its best month since January.



The PMIs, combined with sluggish rise in new home prices in China, raised expectations of easing monetary policy there, and sent Chinese blue-chips up 1.3% after two days of losses.



&#8220;While there is some room for the fiscal and monetary policy to catch up a bit to ease the slowdown pains (in China), the economic policy alone is insufficient to help turn around the economy,&#8221; warned Commerzbank Senior Economist Hao Zhou.



Turkey shares hit over five-month highs, while Russia&#8217;s MOEX narrowed its gap to record highs to 0.4%.



Middle East and African stocks were flat to lower. The chief executive of beleaguered state-owned utility Eskom warned that coal power generation could see South Africa face &#8220;another era of isolation&#8221;.



Indian shares steadied after hitting all-time highs, propelled by data showing the economy grew more than 20% in the April-June quarter.



Overnight, Chile&#8217;s central bank doubled the benchmark interest rate to 1.5%, topping expectations. The currency underperformed its Latin American peers last month primarily due to volatility in metal markets on concerns over local copper supply.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Susan Mathew in Bengaluru; editing by Uttaresh.V)

Shares begin September on upbeat note; dour PMIs cap gains

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1167365312-820x547.jpg" alt="" class="wp-image-411783" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1167365312-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1167365312-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1167365312-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1167365312-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1167365312-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1167365312-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A Prosus flag is displayed ahead of the trading debut of the new Prosus NV unit of Naspers Ltd., outside the Amsterdam Stock Exchange, operated by Euronext NV, in Amsterdam, Netherlands, on Wednesday, Sept. 11, 2019. Naspers will retain 73% of the new company, which will house everything from a 31% stake in Chinese online giant Tencent to food delivery and advertising firms from the U.S. to India and Brazil. Photographer: Jasper Juinen/Bloomberg via Getty Images</figcaption></figure>



AMSTERDAM, Aug 31 (Reuters) &#8211; Prosus NV doubled down on its investment in India on Tuesday with a $4.7 billion deal for payments platform BillDesk, making it one of the biggest players in the country&#8217;s fast-growing fintech sector.



Prosus, Europe&#8217;s answer to SoftBank and its Vision Fund, said BillDesk will complement its own PayU business, which operates in India, Latin America and Europe.



India has been a major focus for Netherlands-based Prosus but the BillDesk deal is its biggest investment there to date.



<h3 class="wp-block-heading" id="h-read-more-naspers-offshoot-prosus-reports-earnings-boost-from-tencent-stake">Read more: <a href="https://www.cnbcafrica.com/2021/naspers-offshoot-prosus-reports-earnings-boost-from-tencent-stake/">Naspers offshoot Prosus reports earnings boost from Tencent stake</a></h3>



&#8220;This is really a transformative transaction for PayU and its position as one of the leading payment and fintech providers in India and actually in the world,&#8221; Prosus CEO Bob van Dijk said on a media call.



Prosus, which was spun out of Naspers of&nbsp;South&nbsp;Africa&nbsp;in 2019, owns stakes in consumer internet companies in online marketplaces, educational software, food delivery and fintech. It operates some of the companies.



Best known for its 28.9% stake in Tencent of China, Prosus is betting that its long-term investments can fill a yawning valuation gap and give it the same name recognition as one of the world&#8217;s most aggressive technology investors.



The rapid growth of the payments industry worldwide has been helped by rising demand during the pandemic.



PayU processed $55 billion in payments in the year ended March 31, 2021, a 51% increase on the previous year.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/s-africas-naspers-hires-airbnb-amazon-veteran-to-lead-global-classifieds-business-2/">S.Africa’s Naspers hires Airbnb, Amazon veteran to lead global classifieds business</a></h3>



The companies did not give a comparative figure for BillDesk, but Prosus said it was more than $90 billion. BillDesk made a net profit of 2.71 billion Indian rupees ($37.05 million) for the year ended March 31 2021, suggesting an acquisition price of more than 100 times earnings.



PayU CEO Laurent le Moal defended the price tag, arguing it makes sense given the rapid growth in BillDesk&#8217;s market, its leadership position, its current profit margins and the potential for the combined companies to enter adjacent markets.



The deal to buy BillDesk, which was founded in 2000, is subject to regulatory approvals, including by the Competition Commission of India.



Prosus said Tuesday&#8217;s acquisition brings the total it had invested in the Indian market to more than $10 billion.



In India, it is a major investor in Swiggy, one of two food delivery platforms fighting for dominance.



($1 = 73.1500 Indian rupees) 



(Reporting by Toby Sterling; Editing by Mark Potter, Edmund Blair and Susan Fenton)

Naspers Ltd. List New Prosus NV Unit at Amsterdam Stock Exchange

Prosus doubles down on India with $4.7 bln deal for BillDesk

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ-820x547.jpg" alt="" class="wp-image-400651" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Absa_HQ.jpg 830w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>ABSA has rebranded itself and its logo is on display at its headquarters in Johannesburg and surrounds on Tuesday, August 7 2018. Pic: Waldo Swiegers / Bloomberg</figcaption></figure>



JOHANNESBURG, Aug 16 (Reuters) &#8211; South African lender Absa has put on ice plans to expand into new business lines in Nigeria, a country previously at the centre of its African ambitions, interim boss Jason Quinn said on Monday.



Former Chief Executive Maria Ramos and others had previously touted growth in Nigeria beyond its existing securities business as key to the group&#8217;s aim of doubling market share in Africa.



But the COVID-19 pandemic, among other things, had disrupted those plans, Quinn told Reuters shortly after the bank announced an around 14-fold rise in half-year profit, saying it now wants to concentrate on its current business lines.



<h3 class="wp-block-heading" id="h-read-more-why-s-africa-s-absa-plans-to-pay-higher-dividend-despite-fy-earnings-drop">Read more: <a href="https://www.cnbcafrica.com/2019/why-s-africas-absa-plans-to-pay-higher-dividend-despite-fy-earnings-drop/">Why S.Africa’s Absa plans to pay higher dividend despite FY earnings drop</a></h3>



&#8220;As I look at it now, I&#8217;d rather we focus on capturing the opportunity that we currently preside over, as opposed to looking for new ones,&#8221; he said of the bank&#8217;s Nigeria plans.



Absa has previously said it would look to enter other markets like Ethiopia and Egypt in its bid to become a &#8220;truly pan-African bank&#8221;.



It has now combined its South African operations with those elsewhere on the continent, which Quinn said he hoped would lead to a pick-up in units that have lagged.



A hefty drop in bad debt charges helped drive the boom in Absa&#8217;s headline earnings per share (HEPS), which rose to 984.6 cents ($0.6685) in the six months to June 30 from 67.7 cents a year earlier.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/absa-ceo-to-stand-down-cfo-appointed-interim-chief-executive-statement/">Absa CEO to stand down, CFO appointed interim chief executive – statement</a></h3>



Its interim HEPS, the main profit measure in South Africa, were also 7% higher than in 2019. Quinn said the results showed the bank&#8217;s strategic decisions were largely the right ones.



Quinn took over from former CEO Daniel Mminele who quit amid a strategy dispute in April after just 15 months after taking over from Ramos. Quinn would not be drawn on whether he would seek to stay on as CEO permanently.



Absa declared an interim dividend of 310 cents, restoring shareholder payouts after suspending them on guidance from the central bank during the COVID-19 crisis.



Its shares were up 0.27% at 0940 GMT.



($1 = 14.7186 rand) 



(Reporting by Emma Rumney; Editing by Alexander Winning, Kenneth Maxwell and Jan Harvey)

Absa Reboots Image As 100 Years Of Barclays In Africa Ends

South Africa’s Absa cools on Nigeria, interim profits boom

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-483818730-820x546.jpg" alt="" class="wp-image-411426" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-483818730-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-483818730-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-483818730-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-483818730-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-483818730-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-483818730-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Injong Rhee, of Samsung Electronics, speaks about Samsung Pay during the Samsung Galaxy Unpacked 2015 event August 13, 2015 in New York. AFP PHOTO/DON EMMERT (Photo credit should read DON EMMERT/AFP via Getty Images)</figcaption></figure>



A 2020&nbsp;<a href="https://www.backbase.com/digital-banking-transformation-in-africa/" target="_blank" rel="noreferrer noopener">survey</a>&nbsp;showed that 96% of African banks see digital transformation as “one of the most important factors in their bank’s growth strategy”. Despite this clear understanding of the need for digitalization, the process is proving slow for the continent’s traditional banking institutions, who still require their customers to submit&nbsp;<a href="https://african.business/2020/11/finance-services/banks-accelerating-digitisation-in-wake-of-covid-19/" target="_blank" rel="noreferrer noopener">paper</a>&nbsp;documentation for almost every type of banking activity.



Having been at the center of financial transactions for centuries, banks might see themselves immune from the whims of technological progress, but, in truth, the worst thing the banking sector can become is complacent. Competition from telco and fintech companies, as well as the effects of the coronavirus pandemic has brought African banks to a crossroads in regards to digitalization.



<h2 class="wp-block-heading" id="h-disruption-economy">Disruption Economy</h2>



In the era of digital&nbsp;<a href="https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-economic-essentials-of-digital-strategy" target="_blank" rel="noreferrer noopener">disruption</a>, sectors who are unable or unwilling to evolve place themselves in danger from the pressure of new, more client-focused services. Over the last two decades, established sectors like print media, travel agents, booksellers, hotels and taxi services were all deeply&nbsp;<a href="https://www.investopedia.com/articles/investing/020615/20-industries-threatened-tech-disruption.asp" target="_blank" rel="noreferrer noopener">affected</a>&nbsp;by competition from digital companies like Travelocity, Amazon, Airbnb or Uber. Most of these sectors could have avoided disaster by implementing a more digital-friendly and client-first&nbsp;<a href="https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-economic-essentials-of-digital-strategy" target="_blank" rel="noreferrer noopener">approach</a>&nbsp;to their business. Case in point, while untold numbers of newspapers around the world were forced to shut down by plummeting sales, the most savvy of publications quickly pivoted to online publishing, where they continue to thrive.



The disruption economy has proven time and again that when traditional institutions don’t jump at the opportunities brought about by the digital age, others will. In Africa, where 57% of the&nbsp;<a href="https://thefintechtimes.com/top-african-challenger-banks-helping-the-unbanked-through-mobile-services/" target="_blank" rel="noreferrer noopener">population</a>&nbsp;does not use traditional bank services, there is a huge opportunity for growth, particularly as more and more Africans are starting small businesses.



The immense popularity of mobile money, electronic wallets that are linked to a&nbsp;<a href="https://www.worldremit.com/en/faq/mobile-money" target="_blank" rel="noreferrer noopener">phone</a>&nbsp;number, is proof of that. With over 300 million mobile money&nbsp;<a href="https://www.cio.com/article/3433858/digital-banking-boosts-financial-inclusion-new-business-models-in-africa.html" target="_blank" rel="noreferrer noopener">accounts</a>&nbsp;across the continent, Africa is leading the world in the adoption of this technology. In 2020 alone, almost $500 billion were&nbsp;<a href="https://www.forbes.com/sites/tobyshapshak/2021/05/19/mobile-money-in-africa-reaches-nearly-500bn-during-pandemic/" target="_blank" rel="noreferrer noopener">transferred</a>&nbsp;in Africa through mobile money, placing a large chunk of financial transactions into the hands of telecommunication companies.



But mobile money, while easy to use, is not a long-term solution for the unbanked. Unlike traditional banking systems, mobile money does not enjoy the trust of regulators and has no&nbsp;<a href="https://baselgovernance.org/blog/andrew-dornbierers-quick-guide-mobile-money-and-financial-crimes" target="_blank" rel="noreferrer noopener">systems</a>&nbsp;in place to avoid fraud or money laundering.&nbsp;<a href="http://v/" target="_blank" rel="noreferrer noopener">Research</a>&nbsp;shows that unbanked customers who begin using mobile money will want more complex banking services later on, seeking stronger customer protection. Banks should use this to their advantage, offering traditional services like savings accounts to mobile money clients, while offering the sort of convenience that those clients have become accustomed to.



The last few years have also seen a&nbsp;<a href="https://payspacemagazine.com/banks/top-7-neobanks-in-africa/" target="_blank" rel="noreferrer noopener">surge</a>&nbsp;in neobanks, digital-only fintech companies that are challenging traditional banks, being founded in countries like South Africa, Uganda, Nigeria and Egypt. With a rapid&nbsp;<a href="https://codeandpepper.com/rise-of-african-neobanks/" target="_blank" rel="noreferrer noopener">increase</a>&nbsp;in smartphone ownership and internet coverage, the ease with which one can open a digital bank account makes the option very appealing, particularly for those living in remote or rural regions. The speedy digitalization of Africa means that a move which would have been impossible ten years ago might become&nbsp;<a href="https://african.business/in-focus/africa-digital-banking-transformation-report/" target="_blank" rel="noreferrer noopener">indispensable</a>&nbsp;ten years from now.



<h2 class="wp-block-heading">The Coronavirus Factor</h2>



While the trend of digitalization has been nudging companies in that direction for years, the Covid-19 pandemic&nbsp;<a href="https://www.csis.org/analysis/economics-all-about-disruption" target="_blank" rel="noreferrer noopener">accelerated</a>&nbsp;the process to an unprecedented level. Across the world, billions of people found themselves unable to leave their home for weeks and having to use the internet for hitherto offline activities. The first few months of the pandemic in particular saw both users unused to access online services and institutions unused to providing them scramble to adapt to the new way of doing business. By some&nbsp;<a href="https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever" target="_blank" rel="noreferrer noopener">metrics</a>, up to seven years-worth of digitalization efforts were compacted in the first half of 2020.



The pandemic should offer African banks the perfect opportunity to step up their efforts in this regard, with demand for digital banking services at an all-time high. In Nigeria, where banks were quicker to digitize than in other places on the continent, the&nbsp;<a href="https://african.business/2020/11/finance-services/banks-accelerating-digitisation-in-wake-of-covid-19/" target="_blank" rel="noreferrer noopener">volume</a>&nbsp;of digital transactions jumped by 40% in the second quarter of 2020. Kenya, where the use of mobile money was wide-spread before the pandemic, similarly had an easier time adapting to digital banking services when the need arose.



Some of the banks’ reticence in shifting to digital can be blamed on the strict and antiquated bureaucratic&nbsp;<a href="https://www.worldbank.org/en/news/feature/2021/01/11/interview-now-is-the-time-for-africas-digital-transformation" target="_blank" rel="noreferrer noopener">regulations</a>&nbsp;that some African legislatures impose, but, in this regard as well, the coronavirus crisis shifted&nbsp;<a href="https://www.imf.org/external/pubs/ft/fandd/2021/03/africas-digital-future-after-COVID19-duarte.htm" target="_blank" rel="noreferrer noopener">perceptions</a>, not only among businesses and customers, but also among regulators and politicians.



Most experts agree that the digitalization drive will continue in the post-pandemic world and will be an important <a href="https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-covid-19-recovery-will-be-digital-a-plan-for-the-first-90-days" target="_blank" rel="noreferrer noopener">factor</a> in the recovery efforts that will follow. Rather than being a peak, 2020 will be seen as a turning point in this regard, the moment when online services became truly and unambiguously mainstream.



<h2 class="wp-block-heading">Traditional banking is not going anywhere, but&#8230;</h2>



The perfect storm created by the expanding access to the internet and the coronavirus pandemic has ushered in an age of unprecedented interest in digital services. Like all such turning points in history, it will prove a cruel and punishing test for established institutions, who must adapt in order to survive.&nbsp;



The African banking world is already seeing strong competition from easy-to-use and client-centric services like mobile money and neobanks. Banks would do well to ask themselves what made those services so popular in the first place and try to adopt similar tech solutions.



Traditional banking is not going anywhere. No disruption technology will manage to uproot the entire sector. But individual banks risk being swept away if they are unable to keep up the pace. Similar to the case of print media, those institutions that embrace digitalization early and enthusiastically have the highest chance of survival. In the African banking sector, the next few years will determine who will sink and who will swim.



Matthijs Eijpe, regional VP EMEA at Backbase

US-IT-SAMSUNG-GALAXY

Mobile Money Won’t Thrive Without Traditional Banks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-820x547.jpeg" alt="" class="wp-image-411406" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via CNBC</figcaption></figure>



Gold prices recovered slightly from a sharp fall earlier this week, but analysts are still pessimistic on the outlook for the precious metal going forward.



On Sunday evening, gold prices dropped to a four month low of $1,677.9 per ounce. The metal was hovering around $1,740 per ounce Thursday morning trade in Asia, still off its highs earlier this year of around $1,900.



Analysts pegged the fall to a stronger-than-expected U.S. jobs report as well as a rush to buy the dollar in response.



Gold prices and the greenback have an inverse relationship. As the dollar gets stronger against other currencies, gold prices will fall as it becomes more expensive in other currencies, driving down demand.&nbsp;



“The initial sell‑off in the gold price on Monday was likely triggered by the Asian market buying the US dollar and selling gold in response to the strong US payrolls for July from last Friday,” Vivek Dhar, commodities analyst at the Commonwealth Bank of Australia, said in a note on Wednesday.



<h3 class="wp-block-heading" id="h-read-more-miners-seek-gold-under-the-desert-sands-after-egypt-changes-rules"> Read more: <a href="https://www.cnbcafrica.com/2021/miners-seek-gold-under-the-desert-sands-after-egypt-changes-rules-2/">Miners seek gold under the desert sands after Egypt changes rules</a></h3>



On Friday, the Bureau of Labor Statistics said nonfarm payrolls increased by 943,000 in July, above the 845,000 new jobs forecast by Dow Jones.



While gold has since recovered some losses, Dhar said it was “difficult to remain bullish on the precious metal,” given the hawkish outlook for U.S. monetary policy.



The Federal Reserve is expected to dial back monetary easing and slow its stimulus efforts as the economy recovers from the pandemic. The U.S. central bank has held rates near zero, but officials have signaled that hikes could happen soon, especially with inflation running hot. 



But Dominic Schnider, chief investment officer at UBS Global Wealth Management, predicts that real yields will “go less negative” and that means more downside for gold. He told CNBC’s “Street Signs Asia” on Wednesday he expects outflows from the gold exchange-traded funds and futures markets. 



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2020/why-people-seek-refuge-in-gold-during-crises-like-covid-19/">Why people seek refuge in gold during crises like COVID-19</a></h3>



When real yields go up, gold prices go down, and vice versa. In such a scenario, the opportunity cost of holding gold, a non-yielding asset, is higher as investors are foregoing interest that would be otherwise earned in yielding assets.



“I think you’re going to see a little bit more outflows. I wouldn’t be surprised if we see another, at some point, 20 million ounces leaving the ETF and futures market,” Schnider said. “That means more downside, that’s when&#8230; we tell people to hedge your position tactically, or at least sell the upside, get some yield.”



“A stronger US dollar combined with a gradual increase in US 10 [year] real yields suggest that gold prices should trend lower,” Dhar wrote.



He predicts that gold prices will fall to $1,700 per ounce by the first quarter of 2022. Schnider forecast that gold could see drops to $1,600 per ounce or lower.

106912519-1626656267378-gettyimages-1233959448-RUSSIA_GOLD

Gold prices dropped this week and analysts predict they will keep falling

Aug 4 (Reuters) &#8211; Emerging market stocks carried on a strong handover from Wall Street overnight, looking to extend gains for a third straight session on Wednesday, while an index of developing market currencies climbed to a one-month peak.



Rising cases of the Delta variant of the coronavirus kept sentiment in check, with China and Turkey among the countries reporting a surge in cases.



After the S&amp;P 500 hit record highs, MSCI&#8217;s index of emerging market (EM) equities jumped 1% as Chinese and Hong Kong shares gained after recent volatility, while stocks in Turkey, South Africa, Russia, Poland and Hungary all rose between 0.3% and 0.7%.



<h3 class="wp-block-heading" id="h-read-more-european-shares-hit-near-1-month-low-after-wall-street-selloff">Read more: <a href="https://www.cnbcafrica.com/2021/european-shares-hit-near-1-month-low-after-wall-street-selloff/">European shares hit near 1-month low after Wall Street selloff</a></h3>



The Russian benchmark is about 2.5% away from record highs, while the broader EM index is on course to make back last week&#8217;s losses that were spurred by rising crackdowns by China on some of its business sectors.



&#8220;Rising Delta variant COVID-19 cases are not yet dampening market expectations. But they easily could,&#8221; said Robert Carnell, regional head of research, Asia-Pacific, at ING.



&#8220;The return of COVID to China is our biggest concern. Aggressive measures should bring it under control &#8211; the question is how fast, and at what economic cost.&#8221;



Economists said China, the world&#8217;s second biggest economy, may need more monetary and fiscal easing to halt an economic slowdown. Data on Wednesday showed growth in China&#8217;s services sector accelerated in July, but the pandemic threatens to undercut the momentum.



As EM currencies rallied against a subdued dollar, their index jumped 0.3%.



South Africa&#8217;s rand hit a new three-week high, while Russia&#8217;s rouble is near more than one-month highs, extending gains to the eighth straight session &#8211; its longest winning streak since February. Data showed Russia&#8217;s services PMI expanded in July, but at its slowest pace since February.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/stocks-hit-record-highs-on-strong-economic-data/">Stocks hit record highs on strong economic data</a></h3>



Markets awaited details of Russia&#8217;s foreign currency purchases for the month ahead and two auctions of OFZ treasury bonds.



As the number of daily coronavirus cases in Turkey jumped to nearly 25,000, the highest in almost three months, the lira lagged, off Tuesday&#8217;s near two-month highs.



The Belarusian rouble lost 0.2% and was set for its worst session in four weeks as political tensions weighed. A wave of protests were triggered by an election last year which the opposition says was rigged to keep President Alexander Lukashenko in power. Since then, Western powers have impose sanctions on the country.



Hungary&#8217;s forint inched closer to four-week highs against the euro, cheered by retail sales data that showed a rise in June.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Susan Mathew in Bengaluru Editing by Mark Potter)

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

Stocks rise on strong Wall Street but pandemic worries persist

Aug 3 (Reuters) &#8211; Rising inflation pushed the Turkish lira to seven-week highs on Tuesday while a drop in Chinese gaming company Tencent, worries about the COVID-19 Delta variant and tighter regulations in China kept a lid on emerging market stocks.



Turkey&#8217;s lira was up 0.4% against the dollar after date showed year-on-year inflation rose more than expected in July to 18.95%, just shy of the country&#8217;s benchmark interest rate of 19%.



&#8220;The further jump in Turkey&#8217;s headline inflation rate&#8230; will delay the start of an easing cycle until the back end of this year,&#8221; said Jason Tuvey, senior EM economist at Capital Economics, adding that he expects the one-week repo rate to finish 2021 at 17.00%.



The central bank&#8217;s response at its meeting next week, and the government&#8217;s reaction thereto pose a &#8220;huge event risk&#8221; said Simon Harvey, senior FX market analyst at Monex, given the President Tayyip Erdogan had called for rate cuts by August.



Erdogan&#8217;s interference in monetary policy and his sacking of a hawkish governor earlier this year has contributed to the lira being among the worst performing EM currencies so far this year, down about 11%, along with Peru&#8217;s sol.



Most other EM currencies firmed against a weaker dollar on Tuesday ahead of key U.S. jobs data this week. Russia&#8217;s rouble rose 0.4%, on track for its seventh straight session of gain against the greenback.



The International Monetary Fund on Monday approved a $650 billion allocation of IMF Special Drawing Rights, with about $275 billion going to emerging markets and developing countries.



Among stocks, MSCI&#8217;s index of EM shares was up 0.2%, helped by gains in most Asian bourses as well as those across emerging Europe, Middle East and Africa. But Hong Kong stocks and the Shanghai Composite lost 0.5% each.



China&#8217;s largest social media and video game firm <a href="https://www.cnbcafrica.com/2021/tencent-tanks-10-after-chinese-media-calls-online-gaming-opium-as-regulatory-concerns-mount/">Tencent dropped 6</a>% to weigh most on the Hang Seng index after a state media article described online games as &#8220;spiritual opium.&#8221; Tencent said it would curb minors&#8217; access to its flagship video game &#8220;Honor of Kings&#8221;.



Meanwhile, China&#8217;s regulatory agency said it is launching an investigation into chip distributors in the auto industry &#8211; the latest after earlier crackdowns on the technology, property and education sectors which sent global equity markets spiralling on worries about tighter control by China of its industries.



Mainland stocks were also hit by the spread of the Delta variant from the coast to inland cities, prompting authorities to implement strict measures to bring the outbreak under control.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Susan Mathew in Bengaluru; Editing by Raissa Kasolowsky)

Turkey Lira, photo via Flickr

Tencent, COVID woes cap gains for stocks; Turkish lira firms

July 30 (Reuters) &#8211; An index of emerging market shares fell on Monday as Chinese equities slipped on regulatory concerns, and was set for its worst month since a pandemic-led rout in March last year.



MSCI&#8217;s index of EM shares was down 1% at 0813 GMT as stocks in mainland China and Hong Kong fell to their lowest this year, on investor worries over government regulations dented the education, property and tech sectors.



Philippine shares dropped 3.5% after the Manila capital region went into lockdown to contain the spread of the Delta coronavirus variant.



European bourses tracked their Asian counterparts into the red, with shares in Turkey, Russia, South Africa and Poland trading between 0.2% and 1% lower.



Rising coronavirus cases in some Asian countries as well as tighter regulations in China, where PMI data is due over the weekend are some factors driving investor sentiment, said Jeffrey Halley, a senior market analyst at OANDA.



<h3 class="wp-block-heading" id="h-read-more-south-african-markets-factors-to-watch-on-april-15">Read more: <a href="https://www.cnbcafrica.com/2021/south-african-markets-factors-to-watch-on-april-15/">South African Markets – Factors to watch on April 15</a></h3>



The broader EM index has lost 6.6% so far this month, with half the losses attributable to sharp declines since last Friday when crackdowns on technology, education and property sectors in China spooked global markets.



While most Asian currencies lost, Turkey&#8217;s lira and Russia&#8217;s rouble rose 0.5% and 0.8%, with the lira on course to end July around 3.4% higher, its first monthly gain in six.



The lira had gained more than 1% on Thursday after the central bank raised its inflation outlook for the country.



&#8220;Although an unfavorable inflation outlook is keeping the (central bank) from fulfilling President Tayyip Erdogan&#8217;s wish for lower interest rates in July-August, keeping the policy rate unchanged does not appear to be adequate to address inflation risks,&#8221; said Credit Suisse analyst Berna Bayazitoglu.



Credit Suisse expects a cut in the policy rate by 200 basis points to 17.00% in this year.



Peruvian dollar bonds suffered an early sell-off after President Pedro Castillo named a member of his Marxist party as prime minister on Thursday, dimming hopes of a moderate administration, and swore in most of his cabinet without naming a finance minister.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Susan Mathew in Bengaluru; Editing by Ramakrishnan M.)

Stocks eye worst month since March 2020 as China shares drag

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-820x547.jpg" alt="" class="wp-image-410759" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Biden&#8217;s former counselor Don Graves, nominee for Deputy Secretary of Commerce, speaks after being nominated by US President-elect Joe Biden at The Queen theater January 8, 2021 in Wilmington, Delaware. &#8211; Biden and Harris announced on January 8, 2021 the following nominees for their economic and jobs team: for Secretary of Commerce, Rhode Island Governor Gina Raimondo; for Secretary of Labor, Boston Mayor Marty Walsh; for Small Business Administrator, California official Isabel Guzman; and for Deputy Secretary of Commerce, Biden&#8217;s former counselor Don Graves. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)</figcaption></figure>



WASHINGTON, July 28 (Reuters) &#8211; The Biden administration plans to tap the African diaspora in the United States to bolster trade with Africa, a U.S. official said on Wednesday, in a push to work with people who understand &#8220;social nuances&#8221; on the continent.



Working with diaspora-owned enterprises is part of the revival of Prosper Africa, an initiative begun by former President Donald Trump in 2018 that the Biden administration aims to make the &#8220;centerpiece of U.S. economic and commercial engagement with Africa.&#8221;



Speaking at the U.S.-Africa Business Summit on Wednesday, U.S. Deputy Secretary of Commerce Don Graves said the diaspora can overcome a major impediment to doing business overseas: cultural gaps.



Read more: <a href="Op-Ed: The Future of Africa’s">Op-Ed: The Future of Africa’s</a><a href="https://www.cnbcafrica.com/2019/op-ed-the-future-of-africas-diaspora-is-in-africa/"> diaspora is in Africa</a>



&#8220;America&#8217;s African diaspora has a tremendous advantage in African markets relative to their peers, because they understand the market dynamics and social nuances better than anyone else,&#8221; Graves said.



Prosper Africa will focus on clean energy, health, agribusiness and transportation infrastructure. President Joe Biden, who requested nearly $80 million for the initiative in his budget proposal in May, aims to focus it on women and equity, with an expanded role for small- and medium-sized businesses.



<div class="wp-block-group"><div class="wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow">
How remittances from Africa’s diaspora can help revive economies


</div></div>



For one member of the African diaspora community, past experience with a similar initiative shows the difficulty of getting the message out to businesses.



&#8220;Information on such programs usually does not get to the people who need to know about it, because of the way it&#8217;s disseminated,&#8221; said Omega Tawonezi, executive director of Immigrant Community Services, who works with U.S.-based African entrepreneurs. 



(Reporting by Doyinsola Oladipo; Editing by Mary Milliken and Grant McCool)

Economy

Los Angeles moves toward barring the unvaccinated from most businesses

South Africa tells Western envoys it needs funds to shift from coal

Kenya central bank governor sees higher GDP growth in 2021

Central banks parse inflation risk as turn from pandemic policy begins

SAA, Kenya Airways have long-term plan for pan-African airline group

As OPEC reopens the taps, African giants losing race to pump more

Stocks cheer Evergrande jump; Turkey, South Africa cenbanks eyed

OPEC sees Delta variant weighing on oil demand before 2022 growth

Shares begin September on upbeat note; dour PMIs cap gains

Prosus doubles down on India with $4.7 bln deal for BillDesk

South Africa’s Absa cools on Nigeria, interim profits boom

Mobile Money Won’t Thrive Without Traditional Banks

Gold prices dropped this week and analysts predict they will keep falling

Stocks rise on strong Wall Street but pandemic worries persist

Tencent, COVID woes cap gains for stocks; Turkish lira firms

Stocks eye worst month since March 2020 as China shares drag

U.S. looks to leverage African diaspora in trade with Africa

News Tips

Advertise With Us

Economy

Los Angeles moves toward barring the unvaccinated from most businesses

South Africa tells Western envoys it needs funds to shift from coal

Kenya central bank governor sees higher GDP growth in 2021

Central banks parse inflation risk as turn from pandemic policy begins

SAA, Kenya Airways have long-term plan for pan-African airline group

As OPEC reopens the taps, African giants losing race to pump more

Stocks cheer Evergrande jump; Turkey, South Africa cenbanks eyed

OPEC sees Delta variant weighing on oil demand before 2022 growth

Shares begin September on upbeat note; dour PMIs cap gains

Prosus doubles down on India with $4.7 bln deal for BillDesk

South Africa’s Absa cools on Nigeria, interim profits boom

Mobile Money Won’t Thrive Without Traditional Banks

Gold prices dropped this week and analysts predict they will keep falling

Stocks rise on strong Wall Street but pandemic worries persist

Tencent, COVID woes cap gains for stocks; Turkish lira firms

Stocks eye worst month since March 2020 as China shares drag

U.S. looks to leverage African diaspora in trade with Africa

News Tips

Advertise With Us

Newsletters