
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="537" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AJ75STV5GFI2VAY6ECK3RA5YKM-820x537.jpg" alt="" class="wp-image-536666" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AJ75STV5GFI2VAY6ECK3RA5YKM-820x537.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AJ75STV5GFI2VAY6ECK3RA5YKM-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AJ75STV5GFI2VAY6ECK3RA5YKM-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AJ75STV5GFI2VAY6ECK3RA5YKM-768x503.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AJ75STV5GFI2VAY6ECK3RA5YKM-1536x1005.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AJ75STV5GFI2VAY6ECK3RA5YKM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African Rand coins are seen in this photo illustration taken September 9, 2015.  REUTERS/Mike Hutchings</figcaption></figure>



<p>JOHANNESBURG, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand weakened in early trade on Thursday, ahead of U.S. retail sales figures that could give cues on the Federal Reserve&#8217;s interest rate path this year.</p>



<p>At 0651 GMT, the rand traded at 17.6850 against the U.S. dollar, about 0.2% weaker than its previous close.</p>



<p>The dollar last traded about 0.07% firmer against a basket of currencies.</p>



<p>U.S. retail sales figures for September and an interest rate announcement by the European Central Bank are due later in the day.</p>



<p>&#8220;This will be an important data set that will offer insight into consumptive demand and whether it has softened enough to warrant the Fed&#8217;s stance,&#8221; said ETM Analytics in a research note, referring to the U.S. data.</p>



<p>&#8220;Should the U.S. data soften more than expected, the USD may slip back from what has been an extraordinary run,&#8221; the note added.</p>



<p>Like other risk-sensitive currencies, the rand often takes direction from global drivers like U.S. economic data and monetary policy.</p>



<p>With a light domestic calendar, the rand is likely to trade on dollar movements.</p>



<p>South Africa&#8217;s central bank governor Lesetja Kganyago will deliver a special lecture at the University of Stellenbosch and President Cyril Ramaphosa will answer lawmakers&#8217; questions in parliament.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was weaker in early deals, with the yield up 5.5 basis points to 9.285%.</p>



<p>(Reporting by Tannur Anders; Editing by Sumana Nandy)</p>


South African Rand coins are seen in this photo illustration

South African rand slips ahead of US retail data


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;The following political event, equity and currency market moves may affect South African markets on Thursday.</p>



<h2 class="wp-block-heading" id="h-political-event">POLITICAL EVENT</h2>



<p>South African President Cyril Ramaphosa to answer lawmakers&#8217; questions in parliament.</p>



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



<p>South Africa&#8217;s rand held onto its gains on Wednesday, as domestic retail sales rose in August, indicating an improvement in consumer sentiment.</p>



<p>On the stock market, the Top-40 index closed 0.62% higher.</p>



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



<p>Asian shares gave back early gains on Thursday as a housing policy briefing in China underwhelmed investors, while the dollar stood near 2-1/2 month highs on the prospect of a Donald Trump presidency.</p>



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



<p>The Dow Jones Industrial Average rose on Wednesday and closed at a record high, and Wall Street&#8217;s two other benchmark indexes also ended higher, weathering declines in megacap tech shares thanks to small-caps gains and financial shares buoyed by strong earnings.</p>



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



<p>Gold rose on Thursday to hover near record levels, underpinned by uncertainty surrounding the U.S. election and expectations of more rate cuts by major central banks, while investors looked forward to a slew of U.S. data for further direction.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; Medicines regulator urges Treasury to step up its funding</p>



<p>&#8211; Presidency upbeat on hitting 3% growth by 2025 with stable GNU</p>



<p>&#8211; SA carmakers call for hybrid-car production incentives</p>



<p>(Compiled by Tannur Anders)</p>


istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Oct 17


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



<p>NAIROBI, Oct 17 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.</p>



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



<p>*Kenya&#8217;s Senate is due to vote on whether to remove Deputy President Rigathi Gachagua from office.</p>



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



<p>Asian shares gave back early gains on Thursday as a housing policy briefing in China underwhelmed investors, while the dollar stood near 2-1/2 month highs on the prospect of a Donald Trump presidency.</p>



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



<p>Oil prices rose in early Asian trade on Thursday, paring sharp losses over the past two sessions, after industry data showed an unexpected drop in U.S. crude stockpiles last week.</p>



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



<p>South Africa&#8217;s rand held onto its gains on Wednesday, as domestic retail sales rose in August, indicating an improvement in consumer sentiment.</p>



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



<p>Nigeria&#8217;s oil regulator has rejected Shell&#8217;s proposed $1.3 billion sale of its onshore oilfields to Renaissance group because the buyer is not qualified to manage the assets, Lagos-based ThisDay newspaper reported on Wednesday.</p>



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



<p>The Kenyan shilling was unmoved against the dollar on Wednesday, data from the London Stock Exchange Group showed.</p>



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



<p>Kenya is in discussions with the United Arab Emirates for a $1.5 billion commercial loan with an 8.25% interest rate and a seven-year tenor, Finance Minister John Mbadi said on Wednesday.</p>



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



<p>Kenya&#8217;s senate began impeachment hearings against Kenya&#8217;s deputy president on Wednesday, hours after a court said the proceedings were constitutional, clearing the way for a vote on his dismissal this week.</p>



<h2 class="wp-block-heading" id="h-ethiopia-telecoms">ETHIOPIA TELECOMS</h2>



<p>State-owned Ethio Telecom has set a share price of 300 birr ($2.54) for the 100 million shares it plans to sell via the company&#8217;s mobile payment service prior to a stock market listing, the company&#8217;s CEO Frehiwot Tamiru said on Wednesday.</p>



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



<p>The value of Uganda&#8217;s coffee exports surged 53.8% in September, compared to the same period a year ago, on the back of a rise in global prices, the state regulator said.</p>



<h2 class="wp-block-heading" id="h-senegal-economy">SENEGAL ECONOMY</h2>



<p>The International Monetary Fund on Wednesday said a staff team had visited Senegal to start assessing the implications of data revisions resulting from a government audit of past and current IMF-supported programs.</p>



<h2 class="wp-block-heading" id="h-gabon-eurobonds">GABON EUROBONDS</h2>



<p>Gabon&#8217;s Eurobonds were trading near their highest levels since April after a research note sparked optimism over the government&#8217;s commitment and ability to repay a maturity due next year, investors told Reuters.</p>



<h2 class="wp-block-heading" id="h-mozambique-election">MOZAMBIQUE ELECTION</h2>



<p>Mozambique&#8217;s ruling party Frelimo was leading provisional election results in all 11 provinces on Wednesday, while opposition parties cried fraud and one called for a strike.</p>



<p>((Compiled by Nairobi Newsroom))</p>


World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Oct 17


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg" alt="" class="wp-image-536645" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File.   REUTERS/Siphiwe Sibeko</figcaption></figure>



<p>JOHANNESBURG, Oct 16 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand gained in early trade on Wednesday, ahead of domestic retail sales data that could provide some early hints on the growth prospects of Africa&#8217;s most industrialised economy, analysts said.</p>



<p>At 0652 GMT, the rand traded at 17.5950 against the U.S. dollar, about 0.3% firmer than its previous close.</p>



<p>The dollar last traded about 0.1% stronger against a basket of currencies.</p>



<p>Local investors will turn to South Africa&#8217;s August retail sales data at 1100 GMT.</p>



<p>&#8220;Given the economy&#8217;s dependence on consumption, retail sales are an important &#8216;early indicator&#8217; of South Africa&#8217;s growth prospects,&#8221; said ETM Analytics in a research note.</p>



<p>Lower interest rates, slow inflation and potential continued strength in the rand could help retail sales looking forward, the note added.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was little changed in early deals.</p>



<p>(Reporting by Tannur Anders; Editing by Sumana Nandy)</p>


New South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg

South African rand firms as August retail sales data on tap


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Oct 16 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency moves may affect South African markets on Wednesday.</p>



<p>ECONOMIC EVENTS</p>



<p>August retail sales data at 1100 GMT</p>



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



<p>South Africa&#8217;s rand was little changed on Tuesday after the release of a local business confidence index and the central bank&#8217;s bi-annual Monetary Policy Review.</p>



<p>In stocks, the Top-40 index closed 0.52% lower.</p>



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



<p>Asian equities fell on Wednesday after disappointing earnings from Europe&#8217;s biggest tech firm ASML dragged chip stocks around the world, while expectations that the Federal Reserve will take a modest rate cut path propped up the dollar.</p>



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



<p>Wall Street&#8217;s major stock indexes closed lower on Tuesday, with a 1% drop in the technology-heavy Nasdaq leading losses as chip stocks tumbled on demand concerns, while the energy sector fell 3% as oil prices dropped.</p>



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



<p>Gold traded in a tight range on Wednesday as market participants awaited more U.S. economic data to determine the number of rate cuts the Federal Reserve is likely to deliver in the near term.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; Inflation now under control even in the downside scenario, Bank models show</p>



<p>(Compiled by Tannur Anders; Editing by Andrew Heavens)</p>


South African Markets – Factors to watch on Oct 16


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



<p>NAIROBI, Oct 16 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.</p>



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



<p>*ETHIOPIA &#8211; State-owned Ethio Telecom holds a news conference on the planned share sale of a 10% stake on the country&#8217;s new bourse.</p>



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



<p>Asian equities fell on Wednesday after disappointing earnings from Europe&#8217;s biggest tech firm ASML dragged chip stocks around the world, while expectations that the Federal Reserve will take a modest rate cut path propped up the dollar.</p>



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



<p>Oil prices inched higher in early trade on Wednesday on uncertainty over what may happen next in the Middle East conflict, after demand concerns knocked the market to its lowest since early October in the previous session.</p>



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



<p>South Africa&#8217;s rand was little changed on Tuesday after the release of a local business confidence index and the central bank&#8217;s bi-annual Monetary Policy Review.</p>



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



<p>Nigeria&#8217;s inflation rate rose in September for the first time in three months, advancing to 32.70% in annual terms from 32.15% in August, the statistics agency said on Tuesday.</p>



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



<p>The Kenyan shilling was unchanged against the dollar on Tuesday, data from the London Stock Exchange Group showed.</p>



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



<p>Kenya&#8217;s courts on Tuesday declined to stop this week&#8217;s Senate vote on Deputy President Rigathi Gachagua&#8217;s impeachment from going ahead.</p>



<h2 class="wp-block-heading" id="h-jp-morgan-expansion">JP MORGAN EXPANSION</h2>



<p>JPMorgan Chase, the largest U.S. lender, plans to enter Kenya and Ivory Coast this year and grow its footprint in Africa, CEO Jamie Dimon told Reuters.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on Oct 16


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-820x547.jpg" alt="ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions" class="wp-image-365501" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions</figcaption></figure>



<p>JOHANNESBURG, Oct 15 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand softened early on Tuesday ahead of the release of the South African Chamber of Commerce and Industry&#8217;s (SACCI) September Business Confidence Index and the South African Reserve Bank&#8217;s (SARB) bi-annual Monetary Policy Review.</p>



<p>At 0644 GMT, the rand traded at 17.6350 against the dollar, about 0.2% weaker than its previous close.</p>



<p>The dollar last traded about 0.08% firmer against a basket of global currencies.</p>



<p>&#8220;With only the SACCI Business confidence data scheduled for release today, the bulk of the domestic focus will likely turn to the release of the SARB&#8217;s bi-annual monetary policy review,&#8221; ETM Analytics said in a research note.</p>



<p>&#8220;While the SACCI index aggregates data that has been released and is historical, the bi-annual review might reveal some insight that would help investors position themselves for future monetary policy,&#8221; the note added.</p>



<p>Investors will also be watching developments in the Federal Reserve&#8217;s rate cutting path and Chinese asset volatility, both of which could influence the rand&#8217;s direction.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was little changed in early deals.</p>



<p>(Reporting by Tannur Anders)</p>


ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions

South African rand softer ahead of business confidence index, monetary policy review


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Oct 15 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Tuesday.</p>



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



<p>Weekly auction of long-term government bonds</p>



<p>Business Confidence Index for September</p>



<p>South African Reserve Bank&#8217;s October Monetary Policy review</p>



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



<p>The South African rand fell on Monday, and with little major domestic data this week the local currency will likely be driven by global events, analysts said.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed about 0.3% higher.</p>



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



<p>Asian stocks were mostly higher on Tuesday, supported by a strong Wall Street close and investor optimism about corporate earnings, while the dollar held near a two-month top, aided by bets on a smaller U.S. rate cut next month.</p>



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



<p>Wall Street ended higher on Monday, with both the S&amp;P 500 and the Dow posting fresh record finishes, as investors bought into technology stocks ahead of a busy week packed with corporate earnings and crucial economic data.</p>



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



<p>Gold was flat on Tuesday as investors await fresh insights on the Federal Reserve&#8217;s stance on U.S. interest rate reductions for further direction on bullion prices.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; Ramaphosa says ideological differences will not derail GNU</p>



<h2 class="wp-block-heading" id="h-fin-24">FIN 24</h2>



<p>&#8211; Eskom municipal debt deal flops as municipalities renege on commitments</p>



<p>(Compiled by Tannur Anders)</p>


South African Markets – Factors to watch on Oct 15


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



<p>NAIROBI, Oct 15 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.</p>



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



<p>*Nigeria&#8217;s statistics office is due to release consumer inflation data for September.</p>



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



<p>Asian stocks were mostly higher on Tuesday, supported by a strong Wall Street close and investor optimism about corporate earnings, while the dollar held near a two-month top, aided by bets on a smaller U.S. rate cut next month.</p>



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



<p>Oil prices slid 3% in early Asian trade on Tuesday after a media report said Israel is willing not to strike Iranian oil targets, which eased fears of a supply disruption, and after OPEC lowered its outlook for global oil demand growth in 2024 and 2025.</p>



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



<p>The South African rand fell on Monday, and with little major domestic data this week the local currency will likely be driven by global events, analysts said.</p>



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



<p>Nigerian independent producer Belemaoil Producing has resumed operations at its oil block Oil Mining Lease 55 after a three-year shutdown as a result of damage to the facility caused by theft, it said on Monday.</p>



<h2 class="wp-block-heading" id="h-world-bank-africa-economy">WORLD BANK AFRICA ECONOMY</h2>



<p>The World Bank said on Monday it had lowered its economic growth forecast for sub-Saharan Africa this year to 3% from 3.4%, mainly due to the destruction of Sudan&#8217;s economy in a civil war.</p>



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



<p>The Kenyan shilling was stable against the dollar on Monday, data from the London Stock Exchange Group showed.</p>



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



<p>Kenya&#8217;s central bank said on Monday that it had authorised JPMorgan Chase to establish a representative office in the East African country.</p>



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



<p>Uganda&#8217;s government and Turkish construction firm Yapi Merkezi signed a contract to build a 272 kilometre (169 miles) section of railway, in a bid to boost regional trade, a Ugandan official said on Monday.</p>



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



<p>Cocoa arrivals at ports in top grower Ivory Coast reached 100,000 metric tons by Oct. 13 since the start of the season on Oct. 1, down 12.3% compared with the same period last season, exporters estimated on Monday.</p>



<h2 class="wp-block-heading" id="h-democratic-republic-of-congo-mining">DEMOCRATIC REPUBLIC OF CONGO MINING</h2>



<p>Democratic Republic of Congo&#8217;s state miner Gecamines said on Monday it will ship for the first time germanium concentrates to Europe from its Big Hill tailings dump.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on Oct 15


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



<p>WASHINGTON, Oct 15 (Reuters)&nbsp;&#8211;&nbsp;The world&#8217;s total public debt is set to exceed $100 trillion this year for the first time, and may grow more quickly than forecast as political sentiment favors higher spending and slow growth amplifies borrowing needs and costs, the International Monetary Fund said on Tuesday.</p>



<p>The IMF&#8217;s latest Fiscal Monitor report showed global public debt will reach 93% of global gross domestic product by the end of 2024 and approach 100% by 2030. That would exceed its 99% peak during COVID-19. It would also be up 10 percentage points from 2019, before the pandemic exploded government spending.</p>



<p>Released a week before the IMF and World Bank hold annual meetings in Washington, the Fiscal Monitor said there are good reasons to believe future debt levels could be well higher than currently projected, including a desire to spend more in the U.S., the world&#8217;s largest economy.</p>



<p>&#8220;Fiscal policy uncertainty has increased, and political red lines on taxation have become more entrenched,&#8221; the IMF said in the report. &#8220;Spending pressures to address green transitions, population aging, security concerns, and long-standing development challenges are mounting.&#8221;</p>



<h2 class="wp-block-heading" id="h-campaign-spending-promises">CAMPAIGN SPENDING PROMISES</h2>



<p>The IMF&#8217;s concerns about rising debt levels comes three weeks before a U.S. presidential election in which both candidates have promised new tax breaks and spending that could add trillions of dollars to federal deficits.</p>



<p>Republican presidential candidate Donald Trump&#8217;s tax cut plans would add some $7.5 trillion in new debt over 10 years, more than twice the $3.5 trillion added from the plans of Vice President Kamala Harris, the Democratic nominee, according to the central estimates the Committee for a Responsible Federal Budget (CRFB), a budget think-tank.</p>



<p>The report finds that debt projections tend to underestimate actual outcomes by sizeable margins, with realized debt to GDP ratios five years ahead averaging 10% higher than originally forecast.</p>



<p>And debt could be further increased significantly by weak growth, tighter financing conditions and greater fiscal and monetary policy uncertainty in systemically important economies such as the U.S. and China. The report includes a &#8220;severely adverse scenario&#8221; involving these factors that shows global public debt could reach 115% in just three years, 20 percentage points higher than currently projected.</p>



<h2 class="wp-block-heading" id="h-spending-brakes">SPENDING BRAKES</h2>



<p>The IMF repeated its calls for more fiscal consolidation, saying the current environment with solid growth and low unemployment was an opportune time to do so. But it said current efforts, averaging 1% of GDP over the six years from 2023 to 2029, are insufficient to reduce or stabilize debts with a high probability.</p>



<p>A cumulative tightening of 3.8% would be needed to achieve this goal, but in the U.S., China, and other countries where of GDP is not forecast to stabilize, substantially greater fiscal tightening would be needed.</p>



<p>The U.S. this month is expected report a fiscal 2024 deficit of about $1.8 trillion, or more than 6.5% of GDP, according to the Congressional Budget Office.</p>



<p>It said the U.S. and other countries where debt is projected to keep growing, including Brazil, Britain, France, Italy and South Africa, could face costly consequences.</p>



<p>&#8220;Postponing adjustment will only mean that a larger correction is needed eventually, and waiting can also be risky, because past experience shows that high debt and lack of credible fiscal plans can trigger adverse market reactions and can limit the room that countries have to deal with future shocks,&#8221; said Era Dabla-Norris, the IMF&#8217;s deputy fiscal affairs director.</p>



<p>She said cuts in public investment or social spending, tend to have a much larger negative impact on growth, than more poorly targeted subsidies such as for fuel. Some countries have room to broaden their tax bases and improve the efficiency of tax collections, while others can make their tax systems more progressive by taxing capital gains and income more effectively, Dabla-Norris said.</p>



<p>(Reporting by David Lawder; Editing by David Gregorio)</p>


IMF logo is seen outside the headquarters building in Washington

IMF says global public debt to top $100 trillion, growth may accelerate


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-820x547.jpg" alt="" class="wp-image-542050" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of a street in the city of Omdurman damaged in the civil war in Sudan, April 7, 2024. REUTERS/El Tayeb Siddig/File Photo</figcaption></figure>



<p>NAIROBI, Oct 14 (Reuters)&nbsp;&#8211;&nbsp;The World Bank said on Monday it had lowered its economic growth forecast for sub-Saharan Africa this year to 3% from 3.4%, mainly due to the destruction of Sudan&#8217;s economy in a civil war.</p>



<p>However, growth is expected to remain comfortably above last year&#8217;s 2.4% thanks to higher private consumption and investment, the bank said in its latest regional economic outlook report, Africa&#8217;s Pulse.</p>



<p>&#8220;This is still a recovery that is basically in slow gear,&#8221; Andrew Dabalen, chief economist for the Africa region at the World Bank, told a media briefing.</p>



<p>The report forecast next year&#8217;s growth at 3.9%, above its previous prediction of 3.8%.</p>



<p>Moderating inflation in many countries will allow policymakers to start lowering elevated lending rates, the report said.</p>



<p>However, the growth forecasts still face serious risks from armed conflict and climate events such as droughts, floods and cyclones, it added.</p>



<p>Without the conflict in Sudan, which devastated economic activity and caused starvation and widespread displacement, regional growth in 2024 would have been half a percentage higher and in line with its initial April estimate, the lender said.</p>



<p>Growth in the region&#8217;s most advanced economy, South Africa, is expected to increase to 1.1% this year and 1.6% in 2025, the report said, from 0.7% last year.</p>



<p>Nigeria is expected to grow at 3.3% this year, rising to 3.6% in 2025, while Kenya, the richest economy in East Africa, is likely to expand by 5% this year, the report said.</p>



<h2 class="wp-block-heading" id="h-commodities">COMMODITIES</h2>



<p>The sub-Saharan Africa region grew at a robust annual average of 5.3% in 2000-2014 on the back of a commodity supercycle, but output started flagging when commodity prices crashed. The slowdown was accelerated by the COVID pandemic.</p>



<p>&#8220;Cumulatively, if that were to continue for a long time, it would be catastrophic,&#8221; Dabalen warned.</p>



<p>Many economies in the region were starved of public and private investments, he said, and a recovery in foreign direct investments that started in 2021 was still tepid.</p>



<p>&#8220;The region needs much, much larger levels of investments in order to be able to recover faster&#8230; and be able to reduce poverty,&#8221; he said.</p>



<p>Growth across the region is also hamstrung by high debt service costs in countries like Kenya, which was rocked by deadly protests against tax hikes in June and July.</p>



<p>&#8220;There are staggering levels of interest payments,&#8221; Dabalen said, attributing this to a shift by governments to borrow from financial markets in the last decade and away from the low-priced credit offered by institutions like the World Bank.</p>



<p>Total external debt among economies has risen to about $500 billion from $150 billion a decade and a half ago, he said, with the bulk owed to bond market investors and China.</p>



<p>Chad, Zambia, Ghana and Ethiopia went into default in the last four years and have overhauled their debt under a G20 initiative Common Framework. Ethiopia is still working to restructure its debt while the others have completed their debt restructuring.</p>



<p>&#8220;As long as these debt issues are not resolved, there is going to be a lot of &#8216;wait and see&#8217; games going on, and that is not good for the countries, and certainly not good for the creditors as well,&#8221; he said.</p>



<p>(Reporting by Duncan Miriri; Editing by Gareth Jones)</p>


A street in the city of Omdurman damaged in the civil war in Sudan

World Bank cuts 2024 growth forecast for sub-Saharan Africa over Sudan


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



<p>JOHANNESBURG, Oct 14 (Reuters)&nbsp;&#8211;&nbsp;The South African rand softened in early trade on Monday, and with few major domestic data points this week, the local currency will likely be driven by global events, analysts said.</p>



<p>At 0713 GMT, the rand traded at 17.4375 against the dollar, about 0.3% weaker than its previous close.</p>



<p>The dollar eased about 0.02% against a basket of other major currencies.</p>



<p>&#8220;After what was shaping up to be a torrid week for the ZAR, last week closed out fairly close to where it started, which was not something many anticipated, given that the appreciation of the trade-weighted USD did not give up any ground,&#8221; said ETM Analytics in a research note.</p>



<p>This week, local investors could look to South Africa&#8217;s business confidence index on Tuesday and August retail sales figures on Wednesday for signs on the health of Africa&#8217;s most industrialised economy.</p>



<p>&#8220;In the interim, SA will be subject to more offshore developments to drive broader currency direction this week&#8230; None of the local data is likely to be particularly market-moving,&#8221; ETM Analytics&#8217;s note added.</p>



<p>Like other risk-sensitive currencies, the rand tends to take cues from global drivers in the absence of major local factors.</p>



<p>The European Central Bank will make its latest interest rate decision this week and markets will also be watching developments in Federal Reserve&#8217;s rate cutting path and Chinese asset volatility.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index was little changed in early trade.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 1 basis point to 9.145%.</p>



<p>(Reporting by Tannur Anders; Editing by Kirsten Donovan)</p>


South African Economy As Inflation Rate Rises For First Time In 2017

South African rand weakens, local data to have little influence


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Oct 14 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Monday.</p>



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



<p>The Johannesburg Stock Exchange to release data on foreigners&#8217; buying and selling of bonds and stocks during the previous week.</p>



<p>South Africa&#8217;s government to hold weekly auction for Treasury bills.</p>



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



<p>South Africa&#8217;s rand gained against the dollar on Friday after U.S. data this week helped sustain expectations for an interest rate cut by the Federal Reserve next month.</p>



<p>On the stock market, the blue-chip Top-40 index closed about 0.8% up.</p>



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



<p>Asian stocks swung between gain and loss on Monday as investors struggled to reach a consensus view on China&#8217;s broad economic stimulus promises made over the weekend which were light on specifics.&nbsp;MKTS/GLOB</p>



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



<p>The S&amp;P 500 and the Dow scored record closing highs on Friday, with the big boosts from financial stocks after banks reported strong quarterly results while the latest inflation data fueled expectations for a U.S. Federal Reserve rate cut in November.</p>



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



<p>Gold prices eased on Monday, weighed down by a firmer U.S. dollar, while investors looked out for fresh clues on Federal Reserve interest rate cuts. </p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; Sars makes link between ANC donor and Russian oligarch</p>



<h2 class="wp-block-heading" id="h-fin-24">FIN 24</h2>



<p>&#8211; SA could be &#8216;off to the moon&#8217; with 2% GDP growth, says Investec&#8217;s dealmaking chief</p>



<p>&#8211; Transnet plans hydrogen terminals as SA gears up for exports</p>



<p>(Compiled by Tannur Anders)</p>


South African Markets – Factors to watch on Oct 14


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



<p>NAIROBI, Oct 14 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.</p>



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



<p>Asian stocks swung between gain and loss on Monday as investors struggled to reach a consensus view on China&#8217;s economic stimulus promises made over the weekend which, though broad, were light on specifics.</p>



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



<p>Oil prices fell by more than $1 a barrel, losing over 1.5% in early trading on Monday, after disappointing Chinese inflation data and a lack of clarity on Beijing&#8217;s economic stimulus plans stoked fears about demand.</p>



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



<p>South Africa&#8217;s rand gained against the dollar on Friday after U.S. data this week helped sustain expectations for an interest rate cut by the Federal Reserve next month.</p>



<h2 class="wp-block-heading" id="h-nigeria-natural-gas">NIGERIA NATURAL GAS</h2>



<p>Nigeria took a major step in its quest to earn revenue from its vast gas reserves, signing a deal with joint venture partners to supply gas to a proposed $3.5 billion Brass fertilizer and petrochemical plant, an official said on Friday.</p>



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



<p>Nigeria&#8217;s local fuel traders can now buy petrol directly from the Dangote Oil Refinery, ending state-oil firm NNPC&#8217;s exclusive buying rights as the country moves to fully deregulate its processing sector, the finance minister said on Friday.</p>



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



<p>Binance&#8217;s head of financial crime compliance was denied bail for a second time on Friday as his trial on money laundering charges started in Nigeria, with a judge ruling that the prison in which he is being held is capable of meeting his medical needs.</p>



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



<p>Kenya&#8217;s shilling was steady against the dollar on Friday, and is expected to remain so for the next week, one commercial bank trader said.</p>



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



<p>Kenya&#8217;s high court ruled on Friday that a case challenging Deputy President Rigathi Gachagua&#8217;s impeachment should be referred to the Chief Justice.</p>



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



<p>Global credit ratings agency Moody&#8217;s on Friday upgraded Ghana&#8217;s long-term local and foreign currency issuer ratings to &#8220;Caa2&#8221; from &#8220;Caa3&#8221; and &#8220;Ca,&#8221; respectively, citing extensive debt treatment that has significantly alleviated the government&#8217;s financial burdens.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on Oct 14


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-820x547.jpg" alt="" class="wp-image-541965" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: An atrium is seen at the World Bank headquarters building in Washington, U.S., October 14, 2017. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



<p>WASHINGTON, Oct 13 (Reuters)&nbsp;&#8211;&nbsp;The world&#8217;s 26 poorest countries, home to 40% of the most poverty-stricken people, are more in debt than at any time since 2006 and increasingly vulnerable to natural disasters and other shocks, a new World Bank report showed on Sunday.</p>



<p>The report finds that these economies are poorer today on average than they were on the eve of the COVID-19 pandemic, even as the rest of the world has largely recovered from COVID and resumed its growth trajectory.</p>



<p>Released a week before World Bank and International Monetary Fund annual meetings get underway in Washington, the report confirms a major setback to efforts to eradicate extreme poverty and underscores the World Bank&#8217;s efforts this year to raise $100 billion to replenish its financing fund for the world&#8217;s poorest countries, the International Development Association (IDA).</p>



<p>The 26 poorest economies studied, which have annual per-capita incomes of less than $1,145, are increasingly reliant on IDA grants and near-zero interest rate loans as market financing has largely dried up, the World Bank said. Their average debt-to-GDP ratio of 72% is at an 18-year high and half of the group are either in debt distress or at high risk of it.</p>



<p>Most of the countries in the study are in sub-Saharan Africa, from Ethiopia to Chad and Congo, but the list also includes Afghanistan and Yemen.</p>



<p>Two thirds of the 26 poorest countries are either in armed conflicts or have difficulty maintaining order because of institutional and social fragility, which inhibit foreign investment, and nearly all export commodities, exposing them to frequent boom-and-bust cycles, the report said.</p>



<p>&#8220;At a time when much of the world simply backed away from the poorest countries, IDA has been their lifeline,&#8221; World Bank chief economist Indermit Gill said in a statement. &#8220;Over the past five years, it has poured most of its financial resources into the 26 low-income economies, keeping them afloat through the historic setbacks they suffered.&#8221;</p>



<p>IDA normally is replenished every three years with contributions from World Bank shareholding countries. It raised a record $93 billion in 2021 and World Bank President Ajay Banga is aiming to exceed that with more than $100 billion in pledges by Dec. 6.</p>



<p>Natural disasters have also taken a greater toll on these countries over the past decade. Between 2011 and 2023, natural disasters were associated with average annual losses of 2% of GDP, five times the average among lower-middle-income countries, pointing to the need for much higher investment, the World Bank said.</p>



<p>The report also recommended that these economies, which have large informal sectors operating outside their tax systems, do more to help themselves. This includes improving tax collections by simplifying taxpayer registration and tax administration and improving the efficiency of public spending.</p>



<p>(Reporting by David Lawder; Editing by Andrea Ricci and Jacqueline Wong)</p>


FILE PHOTO: Atrium is seen at World Bank headquarters in Washington

World Bank says 26 poorest nations in worst financial shape since 2006


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-820x521.jpg" alt="" class="wp-image-541092" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-1536x977.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Russian President Vladimir Putin speaks at the BRICS Parliamentary Forum in Saint Petersburg, Russia July 11, 2024.  Valeriy Sharifulin/Host Photo Agency BRICS-RUSSIA2024.RU/Handout via REUTERS/File Photo</figcaption></figure>



<p>MOSCOW, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;Most finance ministers and central bank chiefs from the BRICS group of countries did not attend a high-level meeting in Moscow on Friday ahead of a BRICS summit later this month, sending more junior officials instead, official documents showed.</p>



<p>Finance ministers from Egypt and the United Arab Emirates and the head of Iran&#8217;s central bank were present as Russian Finance Minister Anton Siluanov called for the creation of an alternative to the Western-dominated global financial system.</p>



<p>But finance ministers and bank chiefs from China, India and South Africa stayed away, sending deputies or more junior officials instead, a day after Kremlin aide Yuri Ushakov accused the West of pressuring countries not to attend the BRICS summit.</p>



<p>BRICS, originally comprising Brazil, Russia, India, and China, has expanded to include South Africa, Egypt, Ethiopia, Iran, the UAE, and Saudi Arabia.</p>



<p>The Moscow meeting is modeled on the Group of 20 schedule, where summits are preceded by meetings of top economic policy officials who outline proposals to be reviewed by leaders at the summit.</p>



<p>Russia, heavily sanctioned by the West over its war in Ukraine and cut off from international capital markets, is trying to woo BRICS partners with initiatives such as the creation of the BRICS Bridge international payment system.</p>



<p>&#8220;The creation of a cross-border payment initiative is our main task,&#8221; Siluanov told the officials. Russia is also pushing for the creation of a BRICS clearing centre, a rating agency, a reinsurance company, and a commodities exchange.</p>



<p>Siluanov has also proposed setting up a joint investment platform based on the group&#8217;s New Development Bank, its only functioning financial institution. The platform will use a new digital form of transactions, he said, without elaborating.</p>



<h2 class="wp-block-heading" id="h-transaction-delays">TRANSACTION DELAYS</h2>



<p>Russia has recently experienced delays in international transactions with its trading partners, including BRICS member countries, as banks in these countries fear punitive actions from Western regulators.</p>



<p>The payment problems have forced Russian companies to use barter deals and cryptocurrencies to facilitate payments.</p>



<p>China was represented in Moscow by Deputy Finance Minister Liao Min and Deputy Central Bank Governor Changneng Xuan, and India by Finance Ministry Secretary Ajay Seth.</p>



<p>The summit is scheduled for Oct. 22-24 in Kazan, capital of Russia&#8217;s Tatarstan region.</p>



<p>President Vladimir Putin&#8217;s foreign policy aide, Yuri Ushakov, said nine of the 10 BRICS states would send their leaders, though Saudi Arabia would send its foreign minister, Prince Faisal bin Farhan Al Saud. The Saudi delegation was absent from the Friday meeting.</p>



<p>(Reporting by Gleb Bryanski; Editing by Gareth Jones)</p>


FILE PHOTO: Russian President Vladimir Putin speaks at the BRICS Parliamentary Forum in Saint Petersburg

Top BRICS economic officials stay away from Moscow meeting


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg" alt="" class="wp-image-536645" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File.   REUTERS/Siphiwe Sibeko</figcaption></figure>



<p>JOHANNESBURG, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand strengthened against the dollar on Friday, after U.S. data firmed up bets on another interest rate cut by the Federal Reserve next month.</p>



<p>At 0809 GMT, the rand traded at 17.4575 against the dollar&nbsp;ZAR=D3, about 0.4% stronger than its previous close.</p>



<p>The dollar index was last down 0.04% against a basket of currencies.</p>



<p>Bets for a 25-basis point Fed rate cut increased after US inflation data on Thursday came in slightly higher than expected and jobless claims rose, leading markets to moderate expectations of bigger cuts by the Fed.</p>



<p>&#8220;Inflation did come down yesterday, but&#8230; it is the jobless claims that has helped the ZAR back to 17.50,&#8221; said Adam Phillips, treasury specialist at Umkhulu Treasury.</p>



<p>The local currency has tracked the dollar and U.S. economic data points this week in the absence of major domestic events.</p>



<p>South African investor focus will now turn towards an inflation-linked bond auction (ILB) due later on Friday.</p>



<p>&#8220;The ILB auction today will provide further insight into inflation expectations in South Africa,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.</p>



<p>On the stock market, the Top-40  index was up 0.4%.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was stronger, with the yield down 7 basis points to 9.07%.</p>



<p>(Reporting by Bhargav Acharya; Editing by Toby Chopra)</p>


Economy

South African rand slips ahead of US retail data

South African Markets – Factors to watch on Oct 17

African Markets – Factors to watch on Oct 17

South African rand firms as August retail sales data on tap

South African Markets – Factors to watch on Oct 16

African Markets – Factors to watch on Oct 16

South African rand softer ahead of business confidence index, monetary policy review

South African Markets – Factors to watch on Oct 15

African Markets – Factors to watch on Oct 15

IMF says global public debt to top $100 trillion, growth may accelerate

World Bank cuts 2024 growth forecast for sub-Saharan Africa over Sudan

South African rand weakens, local data to have little influence

South African Markets – Factors to watch on Oct 14

African Markets – Factors to watch on Oct 14

World Bank says 26 poorest nations in worst financial shape since 2006

Top BRICS economic officials stay away from Moscow meeting

South African rand rises after U.S. data fuels Fed rate cut bets

News Tips

Advertise With Us

Economy

South African rand slips ahead of US retail data

South African Markets – Factors to watch on Oct 17

African Markets – Factors to watch on Oct 17

South African rand firms as August retail sales data on tap

South African Markets – Factors to watch on Oct 16

African Markets – Factors to watch on Oct 16

South African rand softer ahead of business confidence index, monetary policy review

South African Markets – Factors to watch on Oct 15

African Markets – Factors to watch on Oct 15

IMF says global public debt to top $100 trillion, growth may accelerate

World Bank cuts 2024 growth forecast for sub-Saharan Africa over Sudan

South African rand weakens, local data to have little influence

South African Markets – Factors to watch on Oct 14

African Markets – Factors to watch on Oct 14

World Bank says 26 poorest nations in worst financial shape since 2006

Top BRICS economic officials stay away from Moscow meeting

South African rand rises after U.S. data fuels Fed rate cut bets

News Tips

Advertise With Us

Newsletters