
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1407863161-820x461.jpg" alt="" class="wp-image-510589" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1407863161-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1407863161-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1407863161-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1407863161-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1407863161-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1407863161-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Aerial photo from the capital of Angola, Luanda | Getty Images</figcaption></figure>



<p id="tw-target-text">Angola is making significant strides in diversifying its economy by attracting foreign investment across various sectors. In a recent initiative, the Agency for Private Investment and Exports Promotion (AIPEX) has <a href="https://investinangola.ao/">launched the &#8216;INVEST IN ANGOLA&#8217; platform</a>, aimed at streamlining and enhancing investment opportunities within the country.</p>



<h2 class="wp-block-heading" id="h-angola-s-economic-diversification-strategy">Angola&#8217;s Economic Diversification Strategy</h2>



<p>Historically reliant on oil, Angola is now focusing on diversifying its economic base. Key sectors identified for development include manufacturing, ICT, agriculture, and education. By tweaking private investment laws and offering incentives aligned with the developmental needs of different regions, Angola is positioning itself as a favorable destination for foreign investors.</p>



<p>The ongoing reforms cover political, economic, and social aspects, signaling a robust transition towards improving infrastructure and increasing regional integration. This includes better connectivity to support trade and cooperation with neighboring African nations.</p>



<h2 class="wp-block-heading" id="h-strategic-partnerships-and-trade-agreements">Strategic Partnerships and Trade Agreements</h2>



<p>Significant milestones include the recent trade partnership with Rwanda. The memorandum of understanding (MoU) signed with the Rwanda Development Board (RDB) aims to leverage mutual strengths and explore business opportunities. Learning from Rwanda’s successful Special Economic Zones, Angola aims to attract new investors and enhance its own Luanda Special Economic Zone.</p>



<h2 class="wp-block-heading" id="h-oil-and-gas-still-a-cornerstone">Oil and Gas: Still a Cornerstone</h2>



<p>Despite diversification efforts, the oil and gas sector remains crucial. Initiatives like an in-depth investor report and a high-level documentary produced in partnership with Energy Capital &amp; Power (ECP) will highlight opportunities in this sector. Major events such as the Angola Oil &amp; Gas (AOG) Conference continue to draw attention, fostering discussions, networking, and deal-making among key industry players.</p>



<h2 class="wp-block-heading" id="h-more-than-a-website">More than a website</h2>



<p id="tw-target-text">According to Forbes Africa Lusofone, the platform is a strategic tool aimed at facilitating access to critical information and resources for investors worldwide. Currently, there are 84 investment opportunities in key sectors such as agriculture, energy, infrastructure, and two projects under the privatization program (Propriv), as well as 539 products from the &#8220;Made in Angola&#8221; brand, reflecting the government&#8217;s commitment to promoting the Planagrão (National Grain Production Promotion Plan).</p>



<p id="tw-target-text">AIPEX will be responsible for managing this platform &#8211; &#8220;we are fully committed to ensuring that it becomes a benchmark of excellence and an indispensable support point for investors. Our team is focused on keeping the content updated, relevant, and aligned with international best practices. We will continuously expand the available resources, incorporate interactive tools, and offer personalized support to meet the needs of investors. We are aware that diversifying content and including interactive features such as investment maps and incentive calculators are essential to providing a complete and efficient experience,&#8221; says AIPEX.</p>



<p>The launch of the &#8216;INVEST IN ANGOLA&#8217; platform signifies a strategic effort to attract and retain foreign investment, thereby promoting sustainable development and inclusive growth. By capitalizing on its strategic location, abundant natural resources, and evolving business environment, Angola is poised to make significant advancements in its quest for economic diversification.</p>


Luanda Skyline from above

AIPEX Launches ‘INVEST IN ANGOLA’ Platform: A New Era for Investment in Angola


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-501467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="(max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, June 28 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled political and economic events, equity and currency market moves may affect South African markets on Friday.</p>



<p>POLITICAL EVENTS</p>



<p>Media reports of a major disagreement between the pro-business Democratic Alliance party and President Cyril Ramaphosa over cabinet posts in the government of national unity delaying the announcement of the executive.</p>



<p>ECONOMIC EVENTS</p>



<p>The South African Reserve Bank published the country&#8217;s M3 money supply and private sector credit figures for May.</p>



<p>South Africa&#8217;s government will hold its weekly auction of inflation-linked bonds.</p>



<p>Statistics South Africa will release data on the country&#8217;s May trade and budget balance figures.</p>



<p>SOUTH AFRICAN MARKETS</p>



<p>The South African rand fell sharply on Thursday after media reports of a major disagreement between the pro-business Democratic Alliance (DA) party and President Cyril Ramaphosa over cabinet posts.</p>



<p>The Johannesburg Stock Exchange&#8217;s Top-40 index .JTOPI closed down 0.4%. The benchmark 2030 government bond slumped, as the yield rose 30 basis points to 10.12%.</p>



<p>GLOBAL MARKETS</p>



<p>Asian stocks were on track for a fifth straight month of gains on Friday, bolstered by a growing view that cooling U.S. inflation could prompt the Federal Reserve to ease rates this year, while the yen tumbled to a 38-year low against the dollar.</p>



<p>WALL STREET</p>



<p>U.S. stocks ended Thursday around the unchanged mark as investors awaited fresh inflation data, with the Nasdaq able to eke out a slight gain after data showed a continued slowdown in economic activity, raising investors&#8217; hope for rate cuts.</p>



<p>GOLD</p>



<p>Gold prices eased on Friday, but were set for a third straight quarterly rise, while investors looked forward to U.S. inflation data due later in the day for more clarity on the Federal Reserve&#8217;s interest rate-cut timeline.</p>



<p>EMERGING MARKETS</p>



<p>(Compiled by Tannur Anders; Editing by Janane Venkatraman )</p>


istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on June 28


<p>In a recent <a href="https://cnbcafrica.com/media/6342172476112/">interview with CNBC Africa</a>, Akinwumi Adesina, President of the African Development Bank, reiterated that Africa has no excuse to remain poor. With its vast natural resources, vast uncultivated arable land, and a young and vibrant population, Adesina believes that Africa must urgently look inward to solve its many challenges and hold governments accountable for poverty.</p>



<p>Adesina expressed concern over the impact of climate change on Africa, stating that the continent is losing $7 to $15 billion per year due to climate change. If no serious action is taken, this amount could increase to $50 billion by 2040. He stressed the need for support in adapting to climate change, as Africa contributes only 3% to greenhouse gas emissions but suffers disproportionately from its effects.</p>



<p>To address this issue, Adesina announced the launch of the African Adaptation Acceleration Program (AAAP), in partnership with the Global Center on Adaptation. The program aims to mobilize $25 billion to support African countries in adapting to climate change. This program, according to Adesina, is the largest climate adaptation program in the world.</p>



<figure class="wp-block-pullquote"><blockquote><p>&#8220;Africa contributes no more than 3 percent to greenhouse gas emissions, but it suffers all these challenges disproportionately.&#8221;  </p><cite>Akinwumi Adesina, President of the African Development Bank</cite></blockquote></figure>



<p>Adesina also emphasized the importance of the African Development Bank&#8217;s role in financing climate adaptation. Currently, 64% of the bank&#8217;s financing for climate is allocated to adaptation projects. Adesina shared the bank&#8217;s efforts to tackle climate change, including the launch of the Climate Action Window, which has $429 million to provide climate insurance and support for African farmers.</p>



<p>In addition to climate adaptation, Adesina highlighted the need to improve access to energy and clean cooking solutions. The African Development Bank is implementing the Desert to Power initiative, a $20 billion program that aims to develop 10,000 megawatts of solar power across 11 African countries. Adesina stated that this project will provide electricity for 250 million people and create the largest solar zone in the world.</p>



<p>Adesina expressed his commitment to collective action in addressing climate change and achieving the goal of net zero emissions by 2030 or 2050. He mentioned the formation of the Alliance for Green Infrastructure in Africa, which brings together partners such as the African Development Bank and Africa 50 to support renewable energy development, sustainable transport systems, and clean cooking solutions in Africa.</p>



<p>Adesina highlighted the urgent need for Africa to tackle its challenges and end poverty. He called for increased support and resources to be directed to African countries to address climate change and promote sustainable development. Adesina emphasized the role of the African Development Bank in leading initiatives and providing funding for climate adaptation and green infrastructure projects. With these efforts, Africa can unlock its potential and create a prosperous and sustainable future for its people. As Adesina stated, &#8220;We just need to get to work and get it done.&#8221;</p>


FILE PHOTO: African Development Bank President Adesina attends inteview at the COP27 in Sharm el-Sheikh

Adesina: Africa Must Take Urgent Action to Solve Challenges and End Poverty


<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-1026624864-820x547.jpg" alt="" class="wp-image-411521" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Signage stands on the exterior of the Johannesburg Stock Exchange (JSE) in the Sandton district of Johannesburg, South Africa, on Monday, Sept. 3, 2018. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



<p>The Johannesburg Stock Exchange (JSE) has been experiencing a decline in the number of listed companies, a trend that is being observed globally due to the growth of private equity and venture capital. However, the JSE is not resting on its laurels and is actively seeking partnerships and making changes to its listings requirements to encourage more companies to list and remain on the platform.</p>



<p>One of the measures the JSE has taken is the introduction of new products such as dual class voting shares that have been popular in the US and other countries for tech companies. These shares give founders and executives more voting power, allowing them to retain control even if they own a smaller stake in the company. The JSE has also introduced infrastructure real estate investment trusts (REITs) as a new product.</p>



<p>In addition to introducing new products, the JSE has made changes to its listings requirements to make it easier for companies to list and remain listed without compromising investor protection. The JSE has reviewed its rule book to identify rules that can be simplified and has embarked on a cutting red tape project to reduce unnecessary burdens on listed companies.</p>



<p>Furthermore, the JSE has been actively seeking partnerships and exploring opportunities for new listings globally. It has been in countries such as the UK, Poland, Germany, Luxembourg, and the United States to attract new listings. The JSE has also announced inward listing frameworks for Singapore and Hong Kong.</p>



<p>These efforts have already started to bear fruit with companies like Primary Health Properties (PHP) inward listing from the UK earlier this year with a market capitalisation of 30 billion rand. Additionally, companies like Premier, which split from the break group, and Copper 360 have listed on the JSE.</p>





<p>While the number of delistings on the JSE may not be historically high, the challenges lie in attracting new listings. The JSE is focusing on encouraging small-cap companies to list and is working with asset managers to revive retail investment. The JSE has seen an increase in retail activity on its market since the COVID-19 pandemic.</p>



<p>At the same time, the JSE is actively seeking inward listings from larger companies as many of the large companies in South Africa are already listed on the JSE. The JSE aims to attract inward listings from companies with market capitalisations of tens of billions of rand.</p>



<p>Looking ahead to 2024, the JSE expects to see more companies coming to the market for new listings in the second half of the year, once the uncertainty of the elections has passed. The JSE is also focusing on Asia, particularly Hong Kong and Singapore, for inward listings, although these efforts will take time to build relationships and bear fruit.</p>



<p>The JSE has been proactive in addressing the decline in the number of listed companies by introducing new products, making changes to its listings requirements, and seeking partnerships and new listings globally. These efforts are aimed at encouraging more companies to list and remain on the platform, ultimately boosting the overall market.</p>


The Johannesburg Stock Exchange As Battered Rand Plunges

JSE Looks for Strategic Partnerships as Trading Volumes Decline


<p>At the beginning of 2023, in January, as per <em>Forbes</em>, the African continent’s 19 billionaires were worth an estimated $81.8 billion. Nigeria’s Aliko Dangote was Africa’s richest person for the 12th year in a row, followed by South African luxury goods magnate Johann Rupert with $10.7 billion. The African country with the most billionaires, five in all, was South Africa, followed by Egypt with four and Nigeria with three.</p>



<p>Fortunes rise and fall but never the drive and tenacity of these men driving African business. We present a ranking of the African continent’s 11 richest people today, as per real-time net worth figures from <em>Forbes </em>as of November 22 2023.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500244451-820x547.jpg" alt="" class="wp-image-429294" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500244451-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500244451-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500244451-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500244451-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500244451.jpg 1024w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ACCRA, GHANA &#8211; JUNE 18: Mr. Aliko Dangote, Chairman and CEO, Dangote Group speaks at the African Export-Import Bank (Afreximbank) Annual Meeting on June 18, 2023 at the Accra International Conference Center in Accra, Ghana. | (Photo by Ernest Ankomah/Getty Images)</figcaption></figure>



<p><strong>Aliko Dangote’s</strong> real-time net worth is $10.1 billion. The 66-year-old self-made billionaire in cement and sugar founded and chairs Dangote Cement, the continent&#8217;s largest cement producer, which has the capacity to produce 48.6 million metric tons annually and has operations across Africa. After many years in development, Dangote&#8217;s fertilizer plant in Nigeria began operations in March 2022. Dangote told <em>Forbes</em> that when he was young, he bought sweets, gave them to others to sell, and he kept the profits. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1726096135-820x546.jpg" alt="" class="wp-image-429293" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1726096135-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1726096135-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1726096135-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1726096135-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1726096135.jpg 1024w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Johann Rupert, The Chairman and CEO of Richemont embraces Matt Fitzpatrick of England on the 18th green during Round Three on Day Five of the Alfred Dunhill Links Championship at the Old Course St. Andrews on October 09, 2023 in St Andrews, Scotland. (Photo by Octavio Passos/Getty Images)</figcaption></figure>



<p><strong>Johann Rupert and family</strong> is worth $9.7 billion as of November 22 2023. The 73-year-old South African luxury business magnate residing in Cape Town is chairman of Swiss luxury goods firm Compagnie Financiere Richemont that’s best known for the brands Cartier and Montblanc. He is Africa’s second richest man and is married with three children.</p>



<p><strong>Nicky Oppenheimer and family</strong>, with a net worth of $8.3 billion, is at number three on the African continent. The South Africa-based Oppenheimer, 77, heir to the DeBeers diamond fortune, sold his 40% of the firm to mining group Anglo American for $5.1 billion in cash in 2012. For 85 years until 2012, the Oppenheimer family occupied a controlling spot in the world&#8217;s diamond trade.</p>



<p><strong>Nassef Sawiris</strong> is the Cairo resident, with a real-time net worth of $6.9 billion. An investor and a scion of Egypt&#8217;s wealthiest family, his most valuable asset is a nearly 6% stake in sportswear maker Adidas. The 62-year-old in construction and investments also runs OCI, one of the world&#8217;s largest nitrogen fertilizer producers, with plants in Texas and Iowa.</p>



<p>Also from Nigeria, the continent’s biggest economy, is <strong>Abdulsamad Rabiu</strong> with a real-time net worth of $6.4 billion. The 63-year-old’s origin of wealth is cement and sugar. He is the founder of BUA Group, a Nigerian conglomerate active in cement production, sugar refining and real estate. In early January 2020, Rabiu merged his privately-owned Obu Cement company with listed firm Cement Co. of Northern Nigeria, which he controlled.</p>



<p><strong>Issad Rebrab and family</strong> have a net worth of $4.6 billion. The 79-year-old Algerian founded Cevital and served as its CEO for more than 50 years. He named his son, Malik, CEO in July 2022. Cevital, Algeria&#8217;s biggest privately-held company, owns one of the largest sugar refineries in the world, with the capacity to produce 2 million tons a year.</p>



<p><strong>Mohamed Mansour</strong>’s net worth is at $3.6 billion. The self-made 75-year-old Egyptian businessman oversees family conglomerate Mansour Group, which was founded by his father Loutfy (d. 1976) in 1952 and has 60,000 employees. Mansour established General Motors dealerships in Egypt in 1975, later becoming one of GM&#8217;s biggest distributors worldwide.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1043360968-820x547.jpg" alt="" class="wp-image-429291" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1043360968-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1043360968-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1043360968-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1043360968-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1043360968.jpg 1024w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">HURGHADA, EGYPT &#8211; SEPTEMBER 28:  Egyptian businessman and founder of El Gouna FIlm Festival Naguib Sawiris takes to the red carpet at the closing ceremony of the 2nd El Gouna Film Festival on September 28, 2018 in Hurghada, Egypt.  (Photo by Jonathan Rashad/Getty Images)</figcaption></figure>



<p><strong>Naguib Sawiris</strong> with a real-time net worth of $3.3 billion is a scion of Egypt&#8217;s wealthiest family. His brother Nassef is also a billionaire. He built a fortune in telecom, selling Orascom Telecom in 2011 to Russian telecom firm VimpelCom (now Veon) in a multibillion-dollar transaction.</p>



<p>Yet another notable businessman from Nigeria is the 70-year-old <strong>Mike Adenuga</strong>, whose real-time net worth is $3.1 billion as per <em>Forbes. </em>He built his fortune in telecom and oil production.The self-made Lagosianis known for having made his first million at age 26 selling lace and distributing soft drinks.</p>



<p>Cape Town-based <strong>Koos Bekker</strong>, 70, is worth $2.4 billon as of November 22, and is revered for transforming South African newspaper publisher Naspers into an e-commerce investor and cable TV powerhouse. His Babylonstoren estate, nearly 600 acres in South Africa&#8217;s Western Cape region, features architecture dating back to 1690, a farm, orchard and vineyard and more.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1470197532-820x547.jpg" alt="" class="wp-image-429292" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1470197532-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1470197532-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1470197532-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1470197532-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1470197532.jpg 1024w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">PARIS, FRANCE &#8211; FEBRUARY 27: Patrice Motsepe poses for a photo on the Green Carpet ahead of The Best FIFA Football Awards 2022 on February 27, 2023 in Paris, France. (Photo by Lionel Hahn/Getty Images)</figcaption></figure>



<p><strong>Patrice Motsepe</strong> has a net worth today of $2.3 billion. The mining tycoon is the founder and chairman of African Rainbow Minerals. He became a billionaire in 2008 – the first black African on the <em>Forbes</em> list. In 2016, he launched a private equity firm, African Rainbow Capital, focused on investing in Africa. Motsepe is also the president and owner of Mamelodi Sundowns, one of the most valuable clubs in Africa. In March 2021, he was elected president of the Confederation of African Football.</p>


The International Monetary Fund and World Bank Annual Meetings

The Richest People In Africa


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="594" height="358" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/gettyimages-103548801-594x594-1.jpg" alt="" class="wp-image-375350" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/gettyimages-103548801-594x594-1.jpg 594w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/gettyimages-103548801-594x594-1-300x181.jpg 300w" sizes="(max-width: 594px) 100vw, 594px" /><figcaption>The company logo of Old Mutual Plc., sits on display outside the headquarters in Johannesburg, South Africa, on Monday, Aug. 23, 2010. HSBC Holdings Plc, Europe&#8217;s largest bank, is in exclusive talks to buy a controlling stake in Nedbank Group Ltd., the South African banking unit of Old Mutual Plc, to benefit from business ties between Asia and Africa. Photographer: Nadine Hutton/Bloomberg via Getty Images</figcaption></figure>



<p>&nbsp;South African insurer Old Mutual said on Wednesday it would distribute $734 million in shares in lender Nedbank among its shareholders, reducing its stake in the bank to 7.2% from 19.4%.</p>



<p>The insurer once held a more than 50% stake in the lender, one of South Africa&#8217;s big four banks, but sold off most of that in 2018 in a drive to simplify its conglomerate structure.</p>



<p>It said on Wednesday that while it had made sense to retain a minority stake in the bank, the Old Mutual board believed it was now in the best interests of shareholders to distribute the shares.</p>



<p>This simplifies the Old Mutual group and &#8220;provides a substantial return of capital to shareholders,&#8221; it said in a statement issued after the market close.</p>



<p>The 62.13 million Nedbank shares, worth around 10.4 billion rand ($734 million) based on Nedbank&#8217;s closing share price of 167.67 rand, represent around 12.2% of Nedbank&#8217;s issued share capital.</p>



<p>For every 100 Old Mutual shares they own, investors will get just under 1.32 Nedbank shares, the insurer said.</p>



<p>Nedbank said the move would increase its proportion of shares freely tradeable on the stock market.</p>



<p>&#8220;Any existing commercial relationships with Old Mutual will continue to be underpinned by arms-length commercial agreements,&#8221; Nedbank said.</p>



<p>($1 = 14.1756 rand) (Reporting by Emma Rumney Editing by Promit Mukherjee and Mark Potter)</p>


gettyimages-103548801-594×594

Old Mutual investors to share $734 mln of Nedbank stock


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-820x547.jpg" alt="" class="wp-image-396216" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A GameStop Corp. store in Rome, Italy, on Thursday, Jan. 28, 2021. GameStop Corp. had the biggest day yet of its dizzying rally, adding more than $10 billion in market value, as bullish day traders kept the upper hand over short sellers. Photographer: Alessia Pierdomenico/Bloomberg via Getty Images</figcaption></figure>



<p>Shares of&nbsp;<a href="https://www.cnbc.com/quotes/GME" target="_blank" rel="noreferrer noopener">GameStop</a>&nbsp;surged more than 100% on Wednesday as investors poured into the brick-and-mortar retailer amid a C-suite shake-up.</p>



<p>Shares were halted with less than 30 minutes left in the trading day and the stock ended the day up 103.9%.<a href="https://www.cnbc.com/2021/02/24/gamestop-shares-soar-more-than-80percent-in-late-afternoon-trading.html#"></a></p>



<p><a href="https://www.cnbc.com/2021/02/24/gamestop-shares-soar-more-than-80percent-in-late-afternoon-trading.html#"></a></p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="740" height="474" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/106845212-1614198477913-newplot_-_2021-02-24T152718739.png" alt="" class="wp-image-398243" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/106845212-1614198477913-newplot_-_2021-02-24T152718739.png 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/106845212-1614198477913-newplot_-_2021-02-24T152718739-300x192.png 300w" sizes="(max-width: 740px) 100vw, 740px" /></figure>



<p>GameStop announced Tuesday that its chief financial officer Jim Bell will resign on March 26.</p>



<p>“Mr. Bell’s resignation was not because of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices, including accounting principles and practices,” the company said in a filing with the Securities and Exchange Commission.</p>



<p>Sources familiar with the matter&nbsp;<a href="https://www.businessinsider.com/sources-gamestop-cfo-pushed-out-by-board-2021-2" target="_blank" rel="noreferrer noopener">told Business Insider</a>&nbsp;that Bell did not leave willingly, but was pushed out by&nbsp;Ryan Cohen, co-founder of&nbsp;<a href="https://www.cnbc.com/quotes/CHWY" target="_blank" rel="noreferrer noopener">Chewy</a>&nbsp;who made an investment in GameStop last year in an effort to help the company accelerate its push online.</p>



<p><a href="https://www.bloomberg.com/news/articles/2021-02-23/gamestop-seeks-new-finance-chief-following-bell-s-resignation?sref=i3mD6rA5" target="_blank" rel="noreferrer noopener">Bloomberg News reported on Tuesday evening</a>&nbsp;that GameStop’s board pushed Bell out in order to execute its turnaround more quickly, according to sources familiar with the matter.</p>



<p>Cohen appointment to the GameStop board helped drive the heavily shorted stock upward in January, which resulted in the epic short squeeze in GameStop that provoked retail trading mania and eventually attention from Congress.</p>



<p>“We acknowledge that leadership changes often follow activist settlements and Mr. Bell’s exit was mutual, non-immediate, and suggests no disagreements with company/board,” Jefferies equity analyst Stephanie Wissink told clients. “We believe Mr. Bell deserves recognition for a series of actions that protected GME equity during the late stages of the last hardware cycle, when sales were down sharply.”</p>



<p>Jefferies added that GameStop will likely look for a CFO replacement with a tech, compared to retail, background, as GameStop focuses on e-commerce growth.</p>



<p></p>


GameStop Corp. Stores As Stock Soars

GameStop shares soar more than 100% in late-afternoon trading


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/104747396-Wood.jpg" alt="" class="wp-image-398133" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/104747396-Wood.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/104747396-Wood-300x169.jpg 300w" sizes="(max-width: 740px) 100vw, 740px" /></figure>



<p>Some called it the “Cathie Wood sell-off.”&nbsp;&nbsp;</p>



<p>At the open Tuesday, the top names owned by Ark Investment Management were the biggest decliners in the market.&nbsp;</p>



<p>Shares of&nbsp;<a href="https://www.cnbc.com/quotes/PLTR" target="_blank" rel="noreferrer noopener">Palantir</a>,&nbsp;<a href="https://www.cnbc.com/quotes/TSLA" target="_blank" rel="noreferrer noopener">Tesla</a>,&nbsp;<a href="https://www.cnbc.com/quotes/ROKU" target="_blank" rel="noreferrer noopener">Roku</a>,&nbsp;<a href="https://www.cnbc.com/quotes/SQ" target="_blank" rel="noreferrer noopener">Square</a>,&nbsp;<a href="https://www.cnbc.com/quotes/PYPL" target="_blank" rel="noreferrer noopener">Paypal</a>,&nbsp;<a href="https://www.cnbc.com/quotes/TDOC" target="_blank" rel="noreferrer noopener">Teladoc</a>,&nbsp;<a href="https://www.cnbc.com/quotes/BIDU" target="_blank" rel="noreferrer noopener">Baidu</a>,&nbsp;<a href="https://www.cnbc.com/quotes/ZG" target="_blank" rel="noreferrer noopener">Zillow</a>,&nbsp;<a href="https://www.cnbc.com/quotes/SHOP-CA" target="_blank" rel="noreferrer noopener">Shopify</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/SPOT" target="_blank" rel="noreferrer noopener">Spotify</a>&nbsp;were all down big, in many cases by double-digits.&nbsp; All were major holdings in funds like her flagship&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=ARKK">Ark Innovation ETF (ARKK)</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=ARKW">Next Generation Internet ETF (ARKW)</a>.</p>



<p>Shortly after the open, her flagship Ark Innovation Fund was down 11%.&nbsp;By 10 a.m. ET, a half-hour after opening, it had already traded more than 8 million shares, a full day’s volume.&nbsp; By midday, it had traded 30 million shares.</p>



<p>And then, a half hour after opening, the selling let up. The fund closed down by 3.3% and was down about 10% for the week.</p>



<p><a href="https://www.cnbc.com/2021/02/23/cathie-woods-funds-take-big-hits-as-tesla-and-the-tech-trade-show-signs-of-unwinding.html#"></a></p>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/106844399-1614114540345-arkralies.png?v=1614114545&amp;w=678&amp;h=435" alt=""/></figure>



<p>“It was like a mini-panic,” Alec Young from Tactical Alpha told me.&nbsp; “The market is getting concerned that the Fed is risking getting behind the curve on inflation.&nbsp; The market is pricing in more inflation, which means lower prices for tech stocks.”</p>



<p>The market stopped dropping as Federal Reserve Chair Jay Powell’s congressional testimony was released.&nbsp; Powell repeatedly emphasized he does not expect inflation to rise to troublesome levels:&nbsp; “Monetary policy is accommodative and needs to continue to be accommodative,” he said.</p>



<h2 class="wp-block-heading">Too many people on the boat?</h2>



<p>Still, the damage had already been done.&nbsp; Fear of higher rates may have been an initial catalyst, but now, as Peter Tchir from Academy Securities told me, “People are very aware they are long a lot of stocks at very high valuations.”</p>



<p>“The frothiness is now the catalyst, not rates,” he told me.&nbsp;As for the current mania with everything Cathie Wood and Ark Investments, Tchir on Tuesday penned a piece called “Noah’s Arkk?” for clients, telling me, “Too many people are on that boat.&nbsp; A lot of people, I think, have bet more than their risk appetite is comfortable with.”</p>



<p>Ark Innovation is off about 13% from its recent high.</p>



<p>“I don’t think this is over, I think this may be the start of an unwind.&nbsp; Everyone assumed these are super-safe companies.&nbsp; Her management style has been to double-down on her bets, and a lot of this is starting to feel a little evangelical.&nbsp; People now view those funds as can’t lose, and that’s where you get into trouble,” said Tchir.</p>



<div class="wp-block-group"><div class="wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow">
<h5 class="wp-block-heading">ARKK’S TOP 10 HOLDINGS</h5>



<figure class="wp-block-table"><table><tbody><tr><th>TICKER&nbsp;</th><th>COMPANY&nbsp;</th><th>NAME&nbsp;</th><th>CHANGE&nbsp;</th><th>PRICE&nbsp;</th><th>%CHANGE&nbsp;</th></tr><tr><td><a href="https://www.cnbc.com/quotes/BIDU">BIDU</a></td><td>Baidu Inc</td><td>BIDU</td><td>-13.18</td><td>322.61</td><td>-3.9251</td></tr><tr><td><a href="https://www.cnbc.com/quotes/CRSP">CRSP</a></td><td>CRISPR Therapeutics AG</td><td>CRSP</td><td>-3.26</td><td>135.30</td><td>-2.3528</td></tr><tr><td><a href="https://www.cnbc.com/quotes/NVTA">NVTA</a></td><td>Invitae Corp</td><td>NVTA</td><td>-2.09</td><td>42.72</td><td>-4.6641</td></tr><tr><td><a href="https://www.cnbc.com/quotes/ROKU">ROKU</a></td><td>Roku Inc</td><td>ROKU</td><td>-21.41</td><td>415.87</td><td>-4.8962</td></tr><tr><td><a href="https://www.cnbc.com/quotes/SHOP">SHOP</a></td><td>Shopify Inc</td><td>SHOP</td><td>-81.0601</td><td>1300.24</td><td>-5.8684</td></tr><tr><td><a href="https://www.cnbc.com/quotes/SPOT">SPOT</a></td><td>Spotify Technology SA</td><td>SPOT</td><td>-13.60</td><td>336.31</td><td>-3.8867</td></tr><tr><td><a href="https://www.cnbc.com/quotes/SQ">SQ</a></td><td>Square Inc</td><td>SQ</td><td>-11.49</td><td>256.59</td><td>-4.286</td></tr><tr><td><a href="https://www.cnbc.com/quotes/TDOC">TDOC</a></td><td>Teladoc Health Inc</td><td>TDOC</td><td>-12.76</td><td>256.00</td><td>-4.7477</td></tr><tr><td><a href="https://www.cnbc.com/quotes/TSLA">TSLA</a></td><td>Tesla Inc</td><td>TSLA</td><td>-15.66</td><td>698.84</td><td>-2.1917</td></tr><tr><td><a href="https://www.cnbc.com/quotes/ZG">ZG</a></td><td>Zillow Group Inc</td><td>ZG</td><td>1.35</td><td>175.08</td><td>0.78</td></tr></tbody></table></figure>
</div></div>



<p>Most of the ten top holdings in Ark Innovation were underperforming the Nasdaq on Tuesday, before they rebounded.</p>



<p>Wood did not respond to a request for comments on Tuesday’s trading, but in an interview on CNBC last week, she made it clear that on days or weeks when her favorite stocks were down notably, she was often a buyer: “We are considered a liquidity&nbsp; provider, which means when people are selling, we will be buying and when people are buying, and these are investors in retail and institutional, we are likely to be taking profits,” she said.</p>



<p>As for the worries about interest rates, she also made it clear that a sharp upturn would undoubtedly hurt her portfolio: “I do believe that if the rate were to take a sharp turn up that we would, we would see a valuation reset, and our portfolios would be prime candidates for that valuation reset.”</p>


104747396-Wood

Cathie Wood’s funds take big morning hit before rebounding as the tech trade stumbles


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230440907-820x547.jpg" alt="" class="wp-image-396217" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230440907-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230440907-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230440907-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230440907-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230440907-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>POLAND &#8211; 2021/01/05: In this photo illustration, a Reddit logo seen displayed on a smartphone with stock market prices in the background. (Photo Illustration by Omar Marques/SOPA Images/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



<p>Wall Street has been watching&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=GME">GameStop</a>&nbsp;in awe as a band of Reddit-obsessed retail investors managed to push the stock up 1,500% in two weeks, squeezing out short selling hedge funds.</p>



<p>A wave of at-home traders&nbsp;found each other on the red-hot “wallstreetbets” Reddit chat room, whose members have ballooned to over 3 million. By motivating each other to keep piling into shares and call options, they coordinated a monstrous short squeeze in the brick-and-mortar video game retailer.</p>



<p>“Retail investors with the help of technology acting as a union in attacking is a new phenomenon,” said Jim Paulsen, chief investment strategist at the Leuthold Group.</p>



<p>“You combine the power of technology, which allows you through Reddit postings to magnify your individual impact, with some use of leverage and very targeted bets, they can have a significant influence, particularly on areas of vulnerability because of the short positions,” Paulsen said.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-820x547.jpg" alt="" class="wp-image-396216" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A GameStop Corp. store in Rome, Italy, on Thursday, Jan. 28, 2021. GameStop Corp. had the biggest day yet of its dizzying rally, adding more than $10 billion in market value, as bullish day traders kept the upper hand over short sellers. Photographer: Alessia Pierdomenico/Bloomberg via Getty Images</figcaption></figure>



<p>Many enthusiastic Reddit users have been posting screenshots of their brokerage accounts, some of which touting astronomical returns north of 1,000% in a handful of days. These passionate investors often call out short sellers in the chat room in colorful language and unpleasant internet memes.</p>



<p>“This is gaining cult-like status,” said Quincy&nbsp;Krosby, chief market strategist at Prudential Financial. “It is a pack of traders and the pack is gaining momentum. The retail crowd is not just taking over the shorts and it’s taking over the headlines.”</p>



<p>The intense speculative behavior among retail investors is unnerving many on Wall Street as mounting losses by hedge funds could spill over to other areas of the market. Some also believe this buying frenzy could be an ominous sign for a market at record highs.</p>



<p>“It could potentially destabilize the overall market and the confidence in the market. Those who have not joined will be compelled to join,” Krosby added.</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="The Rise And Fall Of GameStop" width="500" height="281" src="https://www.youtube.com/embed/dX6xBdcdUCg?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div><figcaption>The Rise and Fall of GameStop</figcaption></figure>



<p>These amateur investors have started targeting other heavily shorted names including&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=AMC">AMC Entertainment</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=BBBY">Bed Bath &amp; Beyond</a>, leaving Wall Street analysts’ targets in the dust.</p>



<h2 class="wp-block-heading">How does short selling work?</h2>



<p>A short seller borrows shares of a stock and sells these borrowed shares to buyers willing to pay the market price. As the stock price falls, the trader would buy it back for less money, pocketing the difference.</p>



<p>However, when the stock jumps sharply higher, it forces short sellers to buy back shares in order to limit their losses. The short covering tends to fuel the stock’s rally further.</p>



<p>The rally in GameStop was initially triggered on Jan. 11, when news broke that activist investor and Chewy co-founder and former CEO Ryan Cohen is joining GameStop’s board. The stock jumped on the announcement on hopes Cohen would drive a change in strategy.</p>



<p>GameStop continued to rocket higher as retail traders showed no signs of letting up. Amid the massive squeezes, Melvin Capital closed out its short position in&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=GME">GameStop</a>&nbsp;on Tuesday afternoon after taking a huge loss, the hedge fund’s manager told CNBC’s Andrew Ross Sorkin. Short seller Andrew Left of Citron Research said Wednesday he has covered the majority of his short position in GameStop at a loss.</p>



<p>GameStop was the single most traded name in the U.S. stock market on Tuesday, topping even mega-cap companies like Tesla and Apple, according to Deutsche Bank.</p>



<h2 class="wp-block-heading">Options supercharging the squeeze</h2>



<p>Many avid Reddit posters hyping up GameStop are buying call options, a type of derivative contracts that give the holder the right to buy the underlying security at a stated price within a specific timeframe. The call options contract values can surge by even larger magnitudes when the underlying stock is rallying by 100% in a single day. Options trading has become accessible and easy to millennial investors, thanks to those new and commission-free apps such as Robinhood.</p>



<p>“This is all a part of the democratization of the market,”&nbsp;Krosby said. “Normally when we are talking about levering up and options, it typically is associated with investors, professional managers, and hedge funds.”</p>



<p>When retail investors looks for cheap upside calls, it leaves the sell-side or the market makers who are the middlemen in the transaction short a lot of upside calls, or short gamma. As the stock rises towards those strikes, the market makers need to buy increasingly&nbsp;more stock to hedge their short calls.&nbsp;This effectively accelerated the rally further in GameStop and other heavily shorted names.</p>



<p>“Retail order flow in the options are essentially supercharging the short squeeze, like the tail wagging the dog,” CC Lagator of&nbsp;<a href="https://learn.optionsai.com/" target="_blank" rel="noreferrer noopener">Options AI</a>&nbsp;said. “That gamma effect adds buyer after buyer in the stock, with no one able to short the stock because it is hard to borrow. The effect is a massive short squeeze.”</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="How Reddit traders drove GameStop stock up 275% in a week: CNBC After Hours" width="500" height="281" src="https://www.youtube.com/embed/i7DHLjt_A4Q?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div><figcaption>How Reddit traders drove GameStop stock up 275% in a week: CNBC After Hours</figcaption></figure>


GameStop mania explained: How the Reddit retail trading crowd ran over Wall Street pros


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="740" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1058079660-scaled-1-1110x740.jpg" alt="" class="wp-image-395177" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1058079660-scaled-1-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1058079660-scaled-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1058079660-scaled-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1058079660-scaled-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1058079660-scaled-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1058079660-scaled-1-scaled.jpg 2048w" sizes="(max-width: 1110px) 100vw, 1110px" /></figure>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p>Eighteen names are on this year’s list of African billionaires published by <em>Forbes, </em>down from 20 in 2020. Aliko Dangote is the richest person in Africa for the tenth year in a row. No women feature on the list this year.</p></blockquote>



<p>How did the Covid-19 pandemic affect Africa’s billionaires, or did it at all?</p>



<p>Every year in January, <em>Forbes</em> publishes the list of African billionaires, and this year too, the list, published on Friday, January 23, features gainers and losers, and no newcomers.</p>



<p><a href="https://www.forbes.com/sites/kerryadolan/2021/01/22/the-forbes-billionaires-list-africas-richest-people-2021/?sh=73b45b1548f5">According to <em>Forbes</em></a>, the continent has 18 billionaires this year, down from 20 in 2020. Together, they are worth $73.8 billion, slightly more than the $73.4 billion aggregate worth of the 20 billionaires <a href="https://www.cnbcafrica.com/2020/02/21/the-forbes-billionaires-list-africas-billionaires-2020/">last year</a>.</p>



<p>Aliko Dangote of Nigeria is the richest person in Africa for the tenth year in a row, worth $12.1 billion. He is richer by $2 billion from last year’s list “thanks to a roughly 30% rise in the share price of Dangote Cement, by far his most valuable asset”.&nbsp;The self-made 63-year-old Lagos-based tycoon founded and chairs Dangote Cement, the African continent&#8217;s largest cement producer.</p>



<p>The biggest gainer this year is another Nigerian cement tycoon, Abdulsamad Rabiu, 60, who is now worth $5.5 billion, up from $3.1 billion last year. In 2019, his net worth was recorded at $1.6 billion.</p>



<p>The only two women billionaires from Africa recorded in previous years’ lists, have both fallen off. They are Folorunsho Alakija and Isabel dos Santos.</p>



<p>Kerry A Dolan of <em>Forbes </em>writes: “<em>Forbes </em>calculates that the fortune of Folorunsho Alakija of Nigeria, who owns an oil exploration company, dropped below $1 billion due to lower oil prices. And Isabel dos Santos, who since 2013 has been the richest woman in Africa, was knocked from her perch by a series of court decisions freezing her assets in both Angola and Portugal. In January 2020, the attorney general of Angola charged Dos Santos with embezzlement and money laundering. The Angolan court claimed that actions taken by Dos Santos, her husband Sindika Dokolo (who died in October 2020, reportedly in a scuba diving accident) and one other associate caused the Angolan government losses of at least $1.14 billion. <em>Forbes</em> now values Dos Santos’ frozen assets at zero. Through a spokesperson, Dos Santos declined to comment.&#8221;</p>



<p>Of Africa’s 54 nations, only seven countries have billionaires.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="594" height="396" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/gettyimages-1140486283-594x594-1.jpg" alt="" class="wp-image-395178" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/gettyimages-1140486283-594x594-1.jpg 594w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/gettyimages-1140486283-594x594-1-300x200.jpg 300w" sizes="(max-width: 594px) 100vw, 594px" /><figcaption>Patrice Motsepe</figcaption></figure>



<p>South Africa and Egypt each have five billionaires, followed by Nigeria with three and Morocco with two. South African mining magnate Patrice Motsepe is ranked at No. 9 on the list, with a net worth of $3 billion. Africa’s youngest billionaire, Mohammed Dewji of Tanzania and CEO of MeTL, is at $1.6 billion. Zimbabwe’s self-made billionaire Strive Masiyiwa, who was recently in the news for being appointed to the board of Netflix, has had his telecom fortune grow from $1.1 billion last year to $1.2 billion in 2021. <strong></strong></p>


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The Forbes Billionaires List: Africa’s Billionaires 2021

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<p><div id="attachment_392178" style="width: 750px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-392178" class="size-full wp-image-392178" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/11/106796249-1605280505512-GettyImages-1229489751.jpg" alt="" width="740" height="416" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/11/106796249-1605280505512-GettyImages-1229489751.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2020/11/106796249-1605280505512-GettyImages-1229489751-300x169.jpg 300w" sizes="(max-width: 740px) 100vw, 740px" /><p id="caption-attachment-392178" class="wp-caption-text">“The Spirit of the Rose,” a rare purple-pink diamond mined in Russia, was sold at a Sotheby’s auction for nearly $27 million. A picture taken at a press preview on November 6, 2020.<br />Fabrice Coffrini/AFP via Getty Images</p></div></p>
<p>The largest purple-pink diamond ever to be auctioned has been sold in Geneva, Switzerland for 24,393,000 Swiss francs ($26,700,871).</p>
<p>The purple-pink diamond, called “The Spirit of the Rose,” was sold to an anonymous buyer, bidding over the phone at the Sotheby’s auction on Tuesday.  It weighs 14.8 carats but was cut from a larger rough diamond that weighed 27.8 carats, which was discovered in Yakutia, northeast Russia in 2017.</p>
<p>The rough diamond was said to be the largest pink crystal to have ever been mined in Russia and was named “Nijinksy” after the legendary Russian-Polish ballet dancer Vaslav Nijinsky. “The Spirit of the Rose” was the name given to the cut diamond, after the last ballet Nijinsky performed on stage.</p>
<p>It took a year for Russian cutting masters to form the end diamond, giving it an oval shape to ensure it would be the maximum size.</p>
<p>Pink diamonds were first discovered in India in the 17th century and their color is thought to be the result of a distortion in the “crystal lattice,” or its atomic arrangement. This is “created by intense heat and great pressure after the stone’s formation in the earth,” according to an explanation on <a href="https://www.sothebys.com/en/buy/auction/2020/the-spirit-of-the-rose/superb-and-magnificent-fancy-vivid-purple-pink" target="_blank" rel="noopener noreferrer">Sotheby’s website</a>.</p>
<p>“This distortion displaces many carbon atoms from their normal positions and alters the qualities of light reflected by the diamond — resulting in us observing the stone as pink,” the auction house explained.</p>
<p>Pink diamonds differ from other colored diamonds as there are no chemical trace elements present in its formation. For example, the presence of nitrogen forms yellow diamonds, while boron creates blue diamonds.</p>
<p>Only 1% of pink diamonds are said to be larger than 10 carats and just 4% are graded “fancy vivid.”</p>
<p>The “CTF Pink Star,” weighing 59.6 carats, holds the current record for the price paid for a pink diamond at auction, at $71.2 million, which was sold in Hong Kong in April 2017.</p>
<p>“The Grand Table,” which was shown to a French merchant and adventurer in India in the 17th century, is considered to be largest pink diamond recorded to date, at over 200 carats.</p>
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Largest purple-pink diamond ever to be auctioned sells for nearly $27 million


<p>KAMPALA (Reuters) &#8211; Uganda and France’s Total have reached an agreement that will bring the oil firm and its partners closer to starting construction of a crude pipeline to neighbouring Tanzania, the company’s local unit said.</p>



<p>Uganda discovered crude oil reserves about 14 years ago but commercial production has been delayed partly because of a lack of infrastructure, such as an export pipeline.</p>



<p>The 1,445-km (900-mile) East African Crude Oil Pipeline, costing $3.5 billion, would pass through neighbouring Tanzania to the Indian Ocean port of Tanga.</p>



<p>Total said it had reached an agreement with Uganda protecting its rights and obligations in the pipeline’s construction and operation &#8211; known as the host government agreement.</p>



<p>“We have today reached major milestones which pave the way to the Final Investment Decision in the coming months,” Pierre Jessua, Managing Director of Total E&amp;P Uganda, said in a statement.</p>



<p>“We now look forward to concluding a similar HGA (host government agreement) with the Government of Tanzania and to completing the tendering process for all major engineering,</p>



<p>procurement and construction contracts.”</p>



<p>Total said a meeting between President Yoweri Museveni and its Chief Executive Officer Patrick Pouyanné also agreed to conditions allowing Uganda National Oil Company to join the project.</p>



<p>Total is the major shareholder in Uganda’s oil fields after agreeing in April to buy Tullow Oil’s entire stake in jointly-held onshore fields in Uganda for $575 million.</p>



<p>Tullow said this week it was confident of finalising the sale in fourth quarter of this year.</p>



<p>The other partner in the 230,000 barrel-per-day project is China’s CNOOC.</p>



<p>The government said last year once pipeline construction begins, it would take 2-1/2 to three years to complete.</p>



<p>Uganda discovered crude oil reserves estimated at 6 billion barrels in the Albertine rift basin near the border with the Democratic Republic of Congo in 2006.</p>



<p></p>


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Uganda, Total reach agreement bringing crude pipeline construction closer


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s Old Mutual Ltd on Tuesday scrapped interim dividends, withdrew targets and warned of a drop in full-year profit after posting a loss for the first half.</p>



<p>The 175-year-old insurer posted basic loss per share of 128.5 South African cents ($0.0764) in the six months to June 30, at the top end of its forecast range of 128.5 and 154.2 cents due to the impact of the coronavirus crisis.</p>



<p>Iain Williamson, who was appointed as chief executive officer permanently in July after leading the company on an acting basis for more than a year, said the level of uncertainty meant it would not declare a dividend for the first six months.</p>



<p>“We believe this action is necessary&#8230; and we will revisit this decision for the full-year dividend declaration when we have more clarity on the shape of possible economic recovery scenarios,” Williamson said.</p>



<p>Old Mutual, which in recent years broke up an international conglomerate structure to re-focus on African markets, said it had withdrawn its targets, replacing them with new ones focused on solvency and liquidity and more appropriate to the crisis.</p>



<p>The COVID-19 pandemic has seen insurer taking hefty charges and provisions. That included impairments worth around 9.8 billion rand on goodwill, other intangible assets and property, plant and equipment, and associated undertakings, namely its more than 20% stake in South African lender Nedbank.</p>



<p>Its adjusted headline earnings per share fell 66% to 37.3 cents. Headline earnings per share is the main profit measure in South Africa.</p>



<p>($1 = 16.8153 rand)</p>


S.Africa’s Old Mutual scraps interim dividend after half-year loss


<p>CAIRO (Reuters) &#8211; Egypt signed a $2 billion conventional and Islamic loan with several international and regional banks in a deal coordinated by two UAE lenders, the finance ministry said on Monday.</p>



<p>Emirates NBD Capital and First Abu Dhabi Bank were joint coordinators and lead managers of the deal, the ministry said in a statement.</p>



<p>The loan aims at “financing the state budget and supporting the Egyptian economy in order to maintain its strong path in the face of fluctuations prevailing in global markets”, it added.</p>



<p>The loan was approved by parliament, the statement said.</p>



<p>A parliamentary document obtained by Reuters showed Egypt initialized the deal with Emirates NBD and FAD in July 20 to obtain a one-year, $2 billion loan in two tranches to close the gap in its 2020/21 budget wrought by the COVID-19 pandemic.</p>



<p>The first tranche is a conventional facility of $1.490 billion and the second an Islamic facility of $510 million, the document added.</p>



<p>“When they came to the market&#8230;on the back of COVID, the pricing was dislocated, the comparables were a bit on the high end. But they managed to convince the banks to commit to a tight level. And now&#8230;,it is in line with the market’s pricing,” a banking source said.</p>


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<p>JOHANNESBURG- (Reuters) &#8211; South African food producer RCL Foods reported a 65.4% drop in annual headline earnings on Monday, as the COVID-19 pandemic and national lockdown impacted its final quarter.</p>



<p>The owner of Rainbow chicken and maker of Selati sugar said its headline earnings per share (HEPS) fell to 114.2 million rand ($6.89 million) for the year to June 30 from 329.5 million rand a year earlier.</p>



<p>HEPS strips out some one-off items the main profit gauge used in South Africa.</p>



<p>Despite a loss of 959 million rand for the period, the group declared a final gross cash dividend of 10 cents, bringing the total dividend declared for the year to 25.0 cents.</p>



<p>($1 = 16.5740 rand)</p>


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South Africa’s RCL Foods reports 65% profit drop but offers dividend


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s Sun International said on Monday it fell to a loss in the six months to June 30 after it was forced to close its operations for just over three months due to the coronavirus lockdown.</p>



<p>The casino and hotel company said its adjusted headline earnings, the main profit measure in South Africa, declined from 172 million rand to a loss of 885 million rand in the period.</p>


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S.Africa’s Sun International falls to half-year loss


<p>NAIROBI (Reuters) &#8211; Kenya’s central bank will have to approve any plans by commercial lenders to issue dividends for this year, it said in a memo to bank executives seen by Reuters on Monday, an unusual move caused by the coronavirus crisis.</p>



<p>Lenders in the East African nation have seen their earnings plunge in the first half of this year, hit by higher provisions for bad loans, on the back of the COVID-19 pandemic.</p>



<p>They have also had to restructure more than a quarter of total customer loans, to provide relief to individuals and firms hit by the disruptions.</p>



<p>All lenders are required to resubmit their internal capital adequacy assessments by the end of October, the central bank said in the memo, reflecting the impact of the pandemic.</p>



<p>They will also be expected to discuss their plans with the regulator, before making decisions on distribution of profits to their shareholders, the memo said.</p>



<p>“The duration and extent of the pandemic remains uncertain and it is critical that these institutions remain resilient by strengthening their balance sheets,” the central bank said.</p>


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