<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-820x545.jpg" alt="" class="wp-image-549042" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-1536x1021.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows the Tetra Pak factory floor in Durban, South Africa, April 4, 2024. REUTERS/Rogan Ward/File Photo</figcaption></figure>



JOHANNESBURG, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;South African manufacturing activity grew in October for the second month in a row, a local purchasing managers&#8217; index (PMI) survey showed, the first time since early 2023 that the highly volatile sector has recorded two consecutive months of growth.



The seasonally-adjusted PMI sponsored by South African bank Absa fell to 52.6 points in October from a revised 53.3 in September, staying above the 50-point mark that separates expansion from contraction.



The business activity and new sales orders sub-indices delivered another strong performance, and Absa said there were further positive signs on the horizon.



&#8220;Local demand is expected to pick up pace as some benefits from the interest rate cut (by the central bank in September) come through with a lag,&#8221; Absa said in a statement.



&#8220;Other windfalls, in the form of lower inflation and a boost from withdrawals following the introduction of the two-pot retirement system, could further lift consumer spending,&#8221; Absa added.



The &#8220;two-pot&#8221; pension reform, which from Sept. 1 allowed people to make partial withdrawals from their pension funds before retirement, is expected to spur retail sales and economic growth in the final quarters of the year.



(Reporting by Tannur Anders; Editing by Alexander Winning)

A general view of the Tetra Pak factory floor in Durban

South African factory sector expands for second month, Absa PMI shows

<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>



JOHANNESBURG, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Friday.



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



South Africa&#8217;s weekly inflation-linked bonds auction



South Africa&#8217;s October vehicle sales



South Africa&#8217;s October manufacturing PMI



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



South Africa&#8217;s rand was broadly steady on Thursday following the release of local producer inflation and trade balance data, a day after the finance minister delivered the mid-term budget.



On the stock market, the Top-40 index closed about 1.7% lower.



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



Asian markets started what could be a momentous month warily, with shares mostly lower and Treasury yields near three-month highs on Friday, while investors wait for U.S. jobs data, although a rate cut next week is largely baked in.



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



All three U.S. stock indexes closed lower on Thursday after Microsoft and Meta Platforms highlighted growing artificial intelligence costs that could hit their earnings, curbing enthusiasm for megacaps that have fuelled the market rally this year.



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



Gold prices ticked up on Friday and headed for a slight weekly gain, while investors braced for the U.S. payrolls data that could provide further clues about the Federal Reserve&#8217;s interest rate outlook.



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



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



&#8211; Eskom says SA has enough power for the next five years



&#8211; SA sets the pace in Africa’s energy transition



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



&#8211; Standard Bank forced to block Brazilian transactions after fraud attacks



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Nov 1

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-820x546.jpg" alt="" class="wp-image-548948" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-1536x1023.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">CALLINGTON, ENGLAND &#8211; OCTOBER 17: Prince William, Prince of Wales, the Duke of Cornwall, arrives at the College Stoke Climsland for a visit and to learn about how the college is providing opportunities for young people in rural areas, on October 17, 2024 in Callington, Cornwall, England. (Photo by Justin Tallis &#8211; WPA Pool/Getty Images)</figcaption></figure>



LONDON, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;Prince William jets to South Africa next week for the start of a four day trip which will take in the annual awards ceremony for the British heir-to-the throne&#8217;s multi-million dollar environmental prize.



William travels to Cape Town on Monday for a series of events to promote his Earthshot Prize, while he will also attend the United for Wildlife Global Summit and have a meeting with South African President Cyril Ramaphosa during his stay.



&#8220;His royal highness is looking forward to spending time with people from South Africa and across the wider continent, as well as celebrating the incredible climate solutions that will be spotlighted,&#8221; Kensington Palace said in a statement.



The trip will be the Prince Of Wales&#8217; first to South Africa since 2010, and he will be making the visit alone as his wife Kate is still managing a return to work after finishing a course of preventative chemotherapy for cancer.



William, who like his father King Charles has become a keen environmental campaigner, set up the Earthshot Prize in 2020, inspired by his last visit to Africa six years ago.



A nod to former U.S. President John F. Kennedy&#8217;s &#8220;moonshot&#8221; project which led to the 1969 lunar landing, its goal is to find innovations to combat climate and other green issues, and awards five winners 1 million pounds ($1.3 million) each to drive their projects.



The ceremony itself will be held on Nov. 6, hosted by U.S. actor Billy Porter and South African TV presenter Bonang Matheba, and will also feature performances by the likes of Nigerian pop star Davido and Tanzanian singer Diamond Platnumz.



Supermodel Heidi Klum and actress Nina Dobrev will be among the celebrities announcing the winners.



&#8220;I can’t wait to be part of an evening that celebrates creativity, human ingenuity, and artistry in all its different forms,&#8221; Porter said.



($1 = 0.7709 pounds)



(Reporting by Michael Holden; Editing by Kate Holton and Alison Williams)

The Duke of Cornwall To Visit Duchy College

Prince William heads to South Africa for green prize ceremony

<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/GettyImages-2181228229-820x547.jpg" alt="" class="wp-image-548267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Enoch Godongwana, South Africa&#8217;s finance minister, at a news conference ahead of delivering his mid term budget policy statement to the parliament in Cape Town, South Africa, on Wednesday, Oct. 30, 2024. After years of weak growth, economists expect National Treasury to revise its forecasts for the next two years upwards, largely because of improved power supply. Photographer: Dwayne Senior/Bloomberg via Getty Images</figcaption></figure>



CAPE TOWN, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s&nbsp;government&nbsp;on Wednesday&nbsp;forecast&nbsp;wider budget deficits and higher debt over the next three years, even&nbsp;as it anticipated better growth prospects due to improved electricity supply.



In the first budget review since the African National Congress&nbsp;(ANC)&nbsp;lost its ruling majority and formed a coalition government, the&nbsp;National Treasury&nbsp;said it saw the consolidated deficit at 5.0% of&nbsp;national output&nbsp;in the fiscal year that ends in March 2025, wider than the 4.5% deficit forecast in February.



For next fiscal year, the Treasury now sees a budget deficit of 4.3% of&nbsp;gross domestic product (GDP),&nbsp;up from&nbsp;a previous forecast of 3.7%.



The projections were worse than expected in a Reuters poll published last week. Economists in that poll predicted that the Treasury would announce a narrower 2024/25 deficit forecast of 4.4% and of 3.9% for 2025/26.



The rand currency turned weaker against the U.S. dollar after the new projections were announced.



The Treasury said&nbsp;in its Medium Term Budget Policy Statementthat&nbsp;&#8220;fiscal consolidation measures have limited, but not prevented, the widening of budget deficits and debt&#8221;.



Revenue collection is expected to be hit by&nbsp;a decline in fuel levy and import value-added tax collections, among&nbsp;other things, it said.



&#8220;In the absence of faster growth and in the face of external risks, tax revenue will remain under pressure, forcing us to make difficult&nbsp;decisions,&#8221; Finance Minister Enoch Godongwana said.



South Africa&#8217;s gross debt is now seen stabilising at 75.5% of GDP in 2025/26.



The economy is expected to expand&nbsp;by&nbsp;1.1% this year, down from a February estimate of 1.3%. Growth is expected to come in at 1.7% in 2025,&nbsp;versus a&nbsp;previous forecast of 1.6%.



<h2 class="wp-block-heading" id="h-infrastructure-focus">INFRASTRUCTURE FOCUS</h2>



Africa&#8217;s most industrialised economy has struggled to grow for more than a decade, constrained by inefficiencies at state power utility Eskom and port and freight rail operator Transnet.



The Treasury said the medium-term growth prospects were improving thanks to a suspension of rolling power blackouts and improved investor confidence following the formation of the coalition government in June, though lingering logistics bottlenecks remained a concern.



President Cyril Ramaphosa has touted infrastructure development as key to economic growth.



The Treasury said the government aimed to transform its approach to public sector infrastructure by doing more to attract private sector participation, including a focus on exploring alternative financing mechanisms.



(Reporting by Kopano Gumbi and Wendell Roelf in Cape Town, and Olivia Kumwenda-Mtambo and Tannur Anders in Pretoria;Additional reporting by Bhargav Acharya in Johannesburg;Writing by Olivia Kumwenda-Mtambo;Editing by Alexander Winning)

South Africa Announces Mid Term Budget Policy

South Africa sees wider deficits, higher debt in budget review

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg" alt="" class="wp-image-425202" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-1536x1028.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-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 . REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was marginally weaker in early trade on Wednesday, ahead of a keenly-awaited budget speech by the finance minister.



At 0612 GMT, the rand traded at 17.6725 against the U.S. dollar, down 0.1% on its previous close.



The mid-term budget starts around 1200 GMT and is the first under a coalition government formed after the African National Congress party lost its majority.



The coalition government has committed to lifting economic growth and making progress with reforms, boosting investor confidence and contributing to a rally in the rand and local currency debt.



&#8220;The currency market will be watching closely for signs of such reforms and structural improvements,&#8221; Commerzbank analyst Volkmar Baur said in a note.



&#8220;Nevertheless, the fiscal situation is tight and the budget will, hence, provide an insight into the government&#8217;s priorities.&#8221;



Economists polled by Reuters predict Finance Minister Enoch Godongwana will announce a lower 2024/25 budget deficit estimate than was given in February&#8217;s main budget.



But further out Godongwana faces traditional challenges, including state companies seeking bailouts and trade unions demanding above-inflation wage hikes.



South Africa&#8217;s benchmark 2030 government bond rose slightly in early deals, as the yield fell 3.5 basis points to 9.235%.



(Reporting by Alexander Winning; Editing by Savio D&#8217;Souza)

South African Rand coins are seen in this photo illustration

South African rand marginally weaker; all eyes on budget speech

<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>



JOHANNESBURG, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Wednesday.



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



Medium Term Budget Policy Statement



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



South Africa&#8217;s rand was little changed on Tuesday, as investors held off from big moves ahead of a mid-term budget this week.



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



Asia shares eased on Wednesday on the back of weakness in China, as investors brace for a tightly contested U.S. election, even as Beijing tries to shore up growth.



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



The Nasdaq scored a record closing high and the S&amp;P 500 rose on Tuesday, while the Dow fell as investors digested a host of corporate earnings and awaited Google-parent Alphabet&#8217;s results that came after the market close.



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



Gold hit an all-time peak on Wednesday as investors flocked towards the safe-haven metal less than a week before the U.S. presidential election, while they awaited economic data for clues on the Federal Reserve&#8217;s rate stance. 



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



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



&#8211; Steel firms fight Amsa&#8217;s call to end scrap export tax



&#8211; Transnet relaxes procurement regime to speed up execution



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



&#8211; Investec eyes bigger slice of corporate pie with new transactional banking offering



(Compiled by Alexander Winning)

South African Markets – Factors to watch on Oct 30

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg" alt="" class="wp-image-486141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-1536x1012.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A shopper walks past a Vodacom shop in Johannesburg, file. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 29 (Reuters) &#8211; South Africa&#8217;s Competition Tribunal blocked Vodacom&#8217;s proposed merger with fibre group Maziv on Tuesday, a blow for the ambitions of the country&#8217;s biggest mobile operator to expand its fibre footprint nationwide.



The Competition Tribunal, which makes the final ruling on deals, said in a statement that its reasons for the decision will be issued in due course.



Vodacom announced in 2021 that it would pay 6 billion rand ($339 million) in cash and in certain fibre assets valued at 4.2 billion rand for a 30% stake in a newly formed company called Maziv, the parent company of Dark Fibre Africa and Vumatel.



But last year the Competition Commission recommended to the tribunal that the proposed merger be prohibited on the grounds that it is likely to substantially prevent or lessen competition in several markets.



The commission said the conditions offered by the merger parties did not fully address the resultant harm to competition.



($1 = 17.7024 rand)



(Reporting by Nqobile Dludla; Editing by Jan Harvey)

FILE PHOTO: A shopper walks past a Vodacom shop in Johannesburg

South Africa blocks Vodacom’s proposed merger with Maziv

<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>



JOHANNESBURG, Oct 29 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcements, equity and currency market moves may affect South African markets on Tuesday.



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



South Africa&#8217;s M3 money supply and private sector credit figures for September will be published.



South Africa&#8217;s government will hold its weekly auction of long-term bonds.



<h2 class="wp-block-heading" id="h-companies">COMPANIES</h2>



South African lender First National Bank will provide an update on its payments business.



South African mobile operator Cell C will give a business update.



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



South Africa&#8217;s rand edged lower on Monday, as investors await Wednesday&#8217;s mid-term budget review &#8211; the first under the coalition government formed in June.



On the stock market, the Top-40 index closed 0.6% higher.



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



Asian stocks were mixed in volatile trading on Tuesday as investors girded for three days of tech megacap earnings reports on Wall Street, kicking off with Google parent Alphabet later in the day.



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



Wall Street closed higher on Monday ahead of a packed week of earnings from megacap companies and the final stretch before the Nov. 5 presidential election, while sentiment improved after energy supplies were not disrupted by weekend developments in the Middle East.



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



Gold prices lingered near record highs on Tuesday, supported by uncertainty surrounding the upcoming U.S. presidential election, while investors awaited key economic data for clues on the Federal Reserve&#8217;s interest rate trajectory.



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



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



&#8211; Growth-focused infrastructure investments a budget pillar, says Masondo



&#8211; SA and Ukraine visa waiver on hold &#8216;for more consultations&#8217;



(Compiled by Tannur Anders)

South African Markets – Factors to watch on Oct. 29

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Oct 28 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was little changed in early trade on Monday, with Wednesday&#8217;s mid-term budget the main focal point for investors this week.



At 0720 GMT the rand traded at 17.67 against the U.S. dollar, not far from its previous close of 17.6725. The dollar was also broadly flat against a basket of global currencies.



The finance minister&#8217;s medium term budget policy statement in parliament on Wednesday gives an update on the health of public finances midway through the fiscal year. It will be the first &#8220;mini budget&#8221; under the coalition government formed in June.



A Reuters poll of economists published last week predicted the finance minister will announce a lower 2024/25 budget deficit estimate than was given in February&#8217;s main budget, but fiscal challenges are expected to slow consolidation efforts next year.



&#8220;Although this is not a policy-setting event, any indication of credible fiscal reforms would support market confidence and the rand,&#8221; Andre Cilliers, currency strategist at TreasuryONE, said in a note.



Other domestic data releases this week include September credit extension and money supply data on Tuesday, September producer inflation and trade balance data  on Thursday, and October vehicle sales figures on Friday.



South Africa&#8217;s benchmark 2030 government bond was softer in early deals, with the yield up 3 basis points to 9.315%.



(Reporting by Tannur Anders; Editing by Alexander Winning and Jan Harvey)

Illustration photo of South African rand

South African rand flat; mid-term budget the week’s highlight

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-820x562.jpg" alt="" class="wp-image-547405" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-1536x1052.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers push trolleys as they shop at a Pick n Pay store at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 28 (Reuters) &#8211; South African retailer Pick n Pay, which is listing its discount grocery chain Boxer in Johannesburg through an initial public offering, said on Monday that the base size of the IPO would be towards the upper end of its guidance.



Pick n Pay previously said proceeds from the IPO could be between 6 billion rand and 8 billion rand ($339 million and $452 million).



The retailer said in a statement that the Boxer IPO would include an overallotment option, which was not expected to exceed 500 million rand and would be settled through the issuance of new shares.



An overallotment option grants the underwriter the right to sell more shares than originally planned if demand proves higher than expected. It provides price stability.



The IPO is part of Pick n Pay&#8217;s two-step recapitalisation plan for much needed cash to lower its debt and fix its loss-making core Pick n Pay supermarkets business.



The group also wants Boxer to be accorded a market value which appropriately reflects its &#8220;superior&#8221; growth and return on invested capital.



&#8220;We&#8217;ve been able to obtain unsecured committed term debt and working capital facilities for the Boxer business post the IPO&#8221; from funding partners, Group Chief Finical Officer Lerena Olivier told investors.



Boxer said it has an expected gross drawn term debt of up to 850 million rand and about 2 billion rand of working capital facility.



Pick n Pay will retain a controlling stake in Boxer, Olivier added.



The company targets a dividend pay-out ratio of 40% of Boxer group headline earnings, it said.



Boxer, with 489 stores, is South Africa&#8217;s fastest growing discount grocery chain, with about 68% market share of the discount grocery retail market.



As part of its strategy to grow, Boxer is actively pursuing store expansion, including rollouts to untapped areas, developing its suite of value-added services and expanding its supply chain with additional distribution centres where necessary to support new stores, it said.



For its 2025 financial year, Boxer forecasts turnover growth of about 10%-12%, and mid-teens growth in the next three to five years. It aims to double turnover within five years, the retailer added.



In the 26 weeks ended Aug. 25, turnover rose by 12% to 19.8 billion rand, it said, while its trading profit increased by 11.8% to 809 million rand.



($1 = 17.7137 rand)



(Additional reporting by Alexander Winning; Editing by Jacqueline Wong, Janane Venkatraman and Susan Fenton)

FILE PHOTO: Pick n Pay sales grow but warns on extra costs from power cuts

Boxer IPO in Johannesburg could raise close to $452 million for Pick n Pay

<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>



Oct 28 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.



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



The yen hit a three-month low on Monday as Japan&#8217;s ruling party lost its parliamentary majority, while oil tumbled after Israel&#8217;s weekend strike on Iran bypassed oil or nuclear targets.



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



Oil prices tumbled more than $3 a barrel on Monday after Israel&#8217;s retaliatory strike on Iran over the weekend bypassed Tehran&#8217;s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East.



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



South Africa&#8217;s rand firmed on Friday while local investors geared up for the country&#8217;s mid-term budget next week.



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



The Kenyan shilling was unmoved against the dollar on Friday, data from the London Stock Exchange Group showed.



<h2 class="wp-block-heading" id="h-ghana-security">GHANA SECURITY</h2>



Ghana&#8217;s government on Saturday rejected Reuters reporting on Islamist militants in Burkina Faso that found they are discreetly using neighbouring Ghana&#8217;s north as a logistical and medical base to sustain their insurgency.



<h2 class="wp-block-heading" id="h-imf-nigeria">IMF NIGERIA</h2>



Nigeria is considering a diaspora bond in the United States next year and is targeting remittance inflows of $1 billion a month, its central bank chief told Reuters on Thursday.



<h2 class="wp-block-heading" id="h-kenya-energy">KENYA ENERGY</h2>



Kenya&#8217;s high court on Friday suspended a $736 million deal between a state utility and India&#8217;s Adani Energy Solutions to build and operate power infrastructure including transmission lines.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Oct 28

<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>



JOHANNESBURG, Oct 28 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcement, equity and currency market moves may affect South African markets on Monday.



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



South Africa&#8217;s Johannesburg Stock Exchange will release data on foreigners&#8217; buying and selling of bonds and stocks in the previous week.



South Africa&#8217;s government will hold its weekly auction for Treasury bills.



<h2 class="wp-block-heading" id="h-companies">COMPANIES</h2>



South African grocery retailer Pick n Pay&nbsp;PIKJ.J&nbsp;reported on Monday a wider half-year loss before tax of 1.1 billion rand ($62 million), as trading losses in its core Pick n Pay business grew 9.1%.



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



South Africa&#8217;s rand firmed on Friday, while local investors geared up for the country&#8217;s mid-term budget next week.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed about 0.1% higher.



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



The yen hit a three-month low on Monday, as Japan&#8217;s ruling party lost its parliamentary majority, while oil tumbled after Israel&#8217;s weekend strike on Iran bypassed oil or nuclear targets.



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



The Nasdaq ended higher on Friday, driven by megacap shares, as investors awaited quarterly results from some of Wall Street&#8217;s biggest companies next week.



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



Gold prices fell on Monday as the U.S. dollar held firm, while investors awaited U.S. economic data for fresh insights on the Federal Reserve&#8217;s monetary policy path.



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



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



&#8211; IMF to assess SA&#8217;s growth prospects



&#8211; SA and Ukraine to sign visa waiver for diplomatic purposes



&#8211; SA needs more prosecutions to combat money laundering, says FATF



(Compiled by Tannur Anders; Editing by Sumana Nandy)

South African Markets – Factors to watch on Oct 28

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand weakened in early trade on Friday while local investors geared up for the country&#8217;s mid-term budget next week.



At 0751 GMT, the rand traded at 17.6975 against the dollar, about 0.2% softer than its previous close.



The dollar&nbsp;=USD&nbsp;last traded about 0.02% firmer against a basket of currencies.



With little domestic data on the radar on Friday, the risk-sensitive rand will likely take direction from movements in the greenback.



Later on Friday, South African Reserve Bank Governor Lesetja Kganyago will give a talk on monetary policy after the COVID pandemic at the International Monetary Fund and World Bank&#8217;s 2024 annual meeting.



Next week, investors will look to South Africa&#8217;s Medium Term Budget Policy Statement for clues on the fiscal outlook of Africa&#8217;s most industrialised economy. The statement could provide insight into the country&#8217;s budget deficit.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index was down about 0.1% in early trade.



South Africa&#8217;s benchmark 2030 government bond was slightly stronger in early deals, the yield down 3 basis points to 9.335%.



(Reporting by Tannur Anders; Editing by Alison Williams)

South African rand softer; focus on mid-term budget next week

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-820x547.jpg" alt="" class="wp-image-546260" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of molten copper at Anglo American&#8217;s smelter in Chagres, Chile, obtained by Reuters on April 26, 2024. Anglo American/Handout via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;The speed at which Anglo American shifts to becoming a copper-focused miner may well dictate its ultimate fate &#8211; survival as an independent operator, or absorption by a bigger rival such as BHP Group, which earlier this year failed to buy the group.



BHP walked away from a $49 billion bid to acquire Anglo in May after it was rebuffed three times. With a six-month block on another approach set to expire at the end of November, a deal is again under scrutiny.



Anglo was able to convince investors during BHP&#8217;s approach that it had a better plan to grow value, focused on shedding underperforming platinum, diamonds and coal to focus on copper, a metal key for the energy transition.



If that succeeds, the higher value that comes with copper assets may help keep Anglo safe, one portfolio manager at a Cape Town fund manager said.



But the longer it takes to achieve a transformation, the more likely it is that investors will be tempted by another bid.



Investors with shares in both companies told Reuters that even though they expect BHP CEO Mike Henry to renew his pursuit for the London-listed miner, the timing and even the rationale for such an approach could be shaped by whether Anglo can grow beyond the grasp of cash-rich rivals.



Anglo CEO Duncan Wanblad is rushing to sell coking coal mines in Australia and nickel assets in Brazil while spinning off platinum mines in South Africa. The company is also weighing whether to sell or separately list its De Beers diamonds unit.



Anglo&#8217;s world-class copper assets in Latin America are the prize for rivals seeking increased exposure to copper.



But its copper mines are still dogged by operational issues. On Thursday, it said copper output declined 13% in the third quarter, though the company remains on course to meet this year&#8217;s output guidance of 730,000 tons to 790,000 tons.



Anglo declined to comment. BHP did not respond to emailed requests for comment.



<h2 class="wp-block-heading" id="h-choosing-the-moment">CHOOSING THE MOMENT</h2>



Anglo&#8217;s shares rose as much as 4.3% in London on Monday amid a broad uptick in mining stocks, but have shed most of the premium they added in the wake of BHP&#8217;s approach.



If Anglo&#8217;s valuation takes time to catch up with its restructuring, it could present a golden opportunity for BHP.



According to a source at a top investor in both companies, a restructured Anglo creates more value for BHP, which is still wary of the risks associated with absorbing South African assets.



&#8220;If I was BHP, I would say let Anglo do most of the heavy lifting, the restructuring it promised it will do by end 2025,&#8221; the source told Reuters.



Any potential new bid should come when some of the restructuring is expected to completed by June or July next year, they added.



BHP may have to wait until Anglo spins off its platinum business by mid-2025 to make the deal less complex, UBS Group analysts said. &#8220;We expect Anglo to re-rate as the group simplifies,&#8221; UBS said. &#8220;If not, we see potential for another takeover approach.&#8221;



Christiaan Bothma, an investment analyst at Johannesburg-based money manager Sanlam Private Wealth, which has shares in both companies, told Reuters it would &#8220;make sense&#8221; for BHP to wait for Anglo to do the asset separation for them.



But he added: &#8220;The counter argument to this would be if they wait (too) long, Anglo&#8217;s valuation premium may be too high or iron ore prices too low (BHP&#8217;s primary currency).&#8221;



(Reporting by Felix Njini in Johannesburg, Editing by Veronica Brown, Pratima Desai and Jan Harvey)

FILE PHOTO: A general view of molten copper at Anglo American’s smelter in Chagres

Can Anglo’s copper pivot help thwart renewed takeover bid?

<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/MSJ5YKFIENLXFNSFEOJVDGTYHY-820x547.jpg" alt="" class="wp-image-546212" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Governor of the South African Reserve Bank, Lesetja Kganyago, gestures during an interview with Reuters in Centurion, South Africa April 3, 2024. REUTERS/James Oatway/File Photo</figcaption></figure>



WASHINGTON, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand has further room to strengthen if the government in Pretoria pushes ahead with reforms and prudent policies, the country&#8217;s&nbsp;central bank chief&nbsp;Lesetja Kganyago told Reuters.



The currency of Africa&#8217;s most industrialized nation has been a top emerging market performer, strengthening some 2.5% against the U.S. dollar, since the start of the year while most of the rand&#8217;s peers have suffered losses against the greenback.



&#8220;There should be positive momentum and that positive momentum is not going to be something just driven by the markets,&#8221; Kganyago, the governor of the South African Reserve Bank, said in an interview on Thursday on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington.



&#8220;It&#8217;s going to be whether government continues to act with resolve and stays the path in terms of prudent policies and structural reforms going forward,&#8221; he said, adding that momentum for reforms would not just bolster the currency but could also support the country&#8217;s bonds and stocks.



South Africa&#8217;s National Treasury announced over the summer a number of reforms in the energy, freight, water, and telecommunications sectors, and has pledged to reduce spending and raise revenue as well as take further steps to lower borrowing over the medium-term period.



The rand has enjoyed broad gains since the African National Congress was forced to forge alliances with other political parties after failing to win a parliamentary majority in an election in May &#8211; its first such defeat since the 1994 election that marked the end of white minority rule and apartheid.



&#8220;If you restore investor or consumer confidence, it&#8217;s like a free stimulus for you,&#8221; he said.



Asked about efforts by South African policymakers to lower the inflation target from the current 3%-6% range, Kganyago said work was underway between the National Treasury and the central bank on arriving at the target, and he was hopeful the process would be concluded next year.



&#8220;Where there is absolutely no disagreement on is that the target must be lower. But how far lower?&#8221; he said, adding that the out-of-line target meant the country was losing competitiveness.



(Reporting by Karin Strohecker; Editing by Paul Simao)

MSJ5YKFIENLXFNSFEOJVDGTYHY

South African reforms could push rand higher, central bank chief says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-820x429.jpg" alt="" class="wp-image-546009" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Customers and workers are seen at a Huawei store at Sandton City mall in Sandton, South Africa February 16, 2022. REUTERS/Siphiwe Sibeko <a href="https://www.reutersagency.com/en/licensereuterscontent/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead" target="_blank" rel="noreferrer noopener">Purchase Licensing Rights</a></figcaption></figure>



JOHANNESBURG, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Huawei&nbsp;HWT.UL&nbsp;Cloud&#8217;s business in South Africa has grown fast over the past five years and it plans to launch more cloud solutions to expand market share to boost revenue, a company executive said on Thursday.



Increased demand for faster computing from South African firms and the government has attracted big cloud operators into the country, with Huawei the first international vendor to host a local &#8216;hyperscale&#8217; cloud data centre in South Africa in 2019.



Huawei Cloud has served more than 1,000 customers from the government, financial services, education and telecoms sectors as well as some media and e-commerce companies, Jacqueline Shi, president of Huawei Cloud Global Marketing and Sales Service told delegates at the company&#8217;s cloud summit in Johannesburg.



&#8220;With this kind of strong support from different customers, our cloud business in South Africa has increased more than 16 times over the past five years,&#8221; Shi said.



She told reporters that the total revenue amount &#8220;is still not so big&#8221;, which has encouraged the company to launch more cloud solutions and capture a larger share of the country&#8217;s market.



The cloud market in South Africa is expected to grow at a compound annual rate of around 26% between 2023 and 2028 to 113 billion rand ($6 billion) in value, according to market research company Africa Analysis.



The adoption of artificial intelligence is also driving spending by corporate customers.



&#8220;Go to cloud or not, is not an option anymore. The question is how far and how to do it quickly,&#8221; Huawei Cloud South Africa Chief Executive Steven Chen told reporters.



The Chinese tech giant, which is going head-to-head with cloud services rivals Microsoft&nbsp;MSFT.O, Amazon&nbsp;AMZN.O&nbsp;and Alphabet&#8217;s&nbsp;GOOGL.O&nbsp;Google for customers in South Africa, has three data centre zones or locations in Johannesburg.



($1 = 17.6962 rand)



(Reporting by Nqobile Dludla; Editing by Emelia Sithole-Matarise)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI

Huawei Cloud sees fast business growth in South Africa

<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>



JOHANNESBURG, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand gained against the U.S. dollar early on Thursday, as the greenback eased from a three-month high.



At 0756 GMT, the rand traded at 17.70 against the dollar, about 0.5% stronger than its previous close.



The dollar index was last down 0.22% against a basket of major currencies, pausing a recent rally fuelled by bets on a slower pace of interest rate cuts by the Federal Reserve and a potential second presidency for Donald Trump.



With no major domestic economic data releases due in South Africa for the rest of the week, the risk-sensitive rand is set to take cues from the direction of the dollar.



On the stock market, the Top-40 index was up 0.7%.



South Africa&#8217;s benchmark 2030 government bond was stronger, with the yield down 12 basis points at 9.39%.



(Reporting by Bhargav Acharya; Editing by Kirsten Donovan)

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South Africa

South African factory sector expands for second month, Absa PMI shows

South African Markets – Factors to watch on Nov 1

Prince William heads to South Africa for green prize ceremony

South Africa sees wider deficits, higher debt in budget review

South African rand marginally weaker; all eyes on budget speech

South African Markets – Factors to watch on Oct 30

South Africa blocks Vodacom’s proposed merger with Maziv

South African Markets – Factors to watch on Oct. 29

South African rand flat; mid-term budget the week’s highlight

Boxer IPO in Johannesburg could raise close to $452 million for Pick n Pay

African Markets – Factors to watch on Oct 28

South African Markets – Factors to watch on Oct 28

South African rand softer; focus on mid-term budget next week

Can Anglo’s copper pivot help thwart renewed takeover bid?

South African reforms could push rand higher, central bank chief says

Huawei Cloud sees fast business growth in South Africa

South African rand firms as dollar slips

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