<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-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-820x547.jpg" alt="" class="wp-image-547383" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Mokgweetsi Eric Keabetswe Masisi, President of Botswana addresses the &#8220;Summit of the Future&#8221; in the General Assembly Hall of the United Nations Headquarters in New York City, U.S., September 23, 2024. REUTERS/Caitlin Ochs/File Photo</figcaption></figure>



GABORONE, Oct 28 (Reuters)&nbsp;&#8211;&nbsp;Botswana will hold a general election on Wednesday with President Mokgweetsi Masisi competing against three challengers for a second term in the diamond-rich southern African state.



The poll could be competitive, analysts said, although a divided opposition gives the advantage to Masisi&#8217;s Botswana Democratic Party (BDP), which has ruled the country of 2.3 million people since its independence from Britain in 1966.



Botswana has enjoyed stability and relative prosperity thanks to its diamond wealth and small population, which gets free healthcare and education. It is the world&#8217;s top producer by value of the gem.



But a downturn in the diamond market has put a squeeze on revenues in the last few years, and the country has struggled to diversify its economy. Opponents say the BDP has been in power too long and accuse it of economic mismanagement and corruption, which it denies.



&#8220;Our diamonds have not been selling since April so yes, our revenues are down but the economic fundamentals still remain intact,&#8221; said Masisi at a presidential debate last week.



&#8220;We are going to continue with the projects and policies we have come up with that are aimed at putting more money and wealth into the hands of the citizens of this country,&#8221; he said.



One success of his first term was negotiating a new contract with diamond giant De Beers which will give Botswana a greater share of its rough diamonds. He also lifted a ban on elephant hunting which he says benefits rural communities, and instated an import ban on some produce items to help farmers.



His main challenger is Duma Boko of the opposition coalition Umbrella for Democratic Change (UDC).



The other candidates are Dumelang Saleshando of the Botswana Congress Party and Mephato Reatile of the Botswana Patriotic Front, backed by former President Ian Khama who quit the BDP after a feud with Masisi over scrapping the hunting ban and other issues.



Opponents have attacked Masisi&#8217;s economic record, citing rising unemployment, which stands at around 28%.



&#8220;It is not acceptable that a country such as ours which is the fifth richest per capita in Africa still has so many people living in poverty,&#8221; said Boko at the debate.



Botswana actually has the fourth highest gross domestic product (GDP) per capita of countries in sub-Saharan Africa, according to World Bank figures.



Boko has pledged to more than double the minimum wage and increase social grants, saying he would get the money by reducing wasteful spending.



The BDP has faced declining popularity but maintains a large majority in parliament, having won 38 of the 57 contested seats in 2019. The UDC won 15 seats. Voters in Botswana elect parliamentarians, who then elect the president.



Analysts said the opposition is crippled by a lack of funding.



&#8220;The playing field is not even,&#8221; said Ringisai Chikohomero, from the South Africa-based Institute for Security Studies.



After the last election the opposition claimed fraud and challenged the results at the High Court, which dismissed the case.



(Additional reporting and writing by Nellie Peyton; Editing by David Gregorio)

FILE PHOTO: World leaders attend United Nations “Summit of the Future”, in New York

Diamond-rich Botswana votes with President Masisi seeking second term

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1858" height="1045" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632.jpg" alt="" class="wp-image-547350" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632.jpg 1858w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-1536x864.jpg 1536w" sizes="auto, (max-width: 1858px) 100vw, 1858px" /><figcaption class="wp-element-caption">View of Iran’s oil industry installations in Mahshahr, Khuzestan province, southern Iran. Kaveh Kazemi | Getty Images</figcaption></figure>



Oil prices slid more than 4% on Monday as Israel’s strikes on Iran over the weekend were dubbed as “limited” by local media, with Citi analysts discounting chances of an escalation that disrupts oil supplies.



Futures for global crude benchmark Brent slid 4.34% to $72.75 a barrel, while U.S. West Texas Intermediate futures dropped 4.54% to $68.52 per barrel.



Israel on Saturday attacked Iran’s military installations in three provinces in response to Tehran launching ballistic missiles at Israel on Oct. 1.



Iranian News agency Tasnim reported the attack, which killed four soldiers, had inflicted “limited damages.” The strike steered clear of oil, nuclear, and civilian infrastructure locations. Local petro news network said that Iran’s oil industry operation is “underway normally” with no disruptions.



For weeks, markets had braced themselves for an Israeli retaliation as Middle East tensions have continued to rise following the attack on Israel by Iran-backed Hamas on Oct. 7 last year.



Oil markets’ key consideration had been a direct engagement between both parties, with concerns of an attack on Iranian oil facilities rising in recent weeks. Iran accounts for up to 4% of global o



“The recent Israel military action is unlikely to be seen by the market as leading to an escalation that impacts oil supply,” Citi analysts wrote in a note on Monday, cutting the bank’s Brent oil forecast by $4 to $70 per barrel over the next three months.



Oil markets are also staring at an oversupply. “With Israel deliberately, and perhaps with some American encouragement, avoiding the targeting of crude oil facilities, the oil market is back to looking at an oversupplied market,” said Andy Lipow, president at Lipow Oil Associates.



Oil production has been increasing not just in key countries such as U.S., Canada and Brazil, but even among smaller players such as Argentina and Senegal, he added.



“Oil prices will remain under pressure for the rest of this year, it may be difficult to see Brent crude oil prices reaching $80 in the foreseeable future,” Lipow told CNBC via email.



The risk premium has come off a few dollars a barrel as the more limited nature of the strikes, including avoiding oil infrastructure, have raised hopes for a de-escalatory pathway, said Saul Kavonic, an energy analyst at MST Marquee.



The spotlight now will be on whether Iran will counter the attack in the coming weeks, which would see risk premium rise again, Kavonic told CNBC, noting that the overall trend still remains one of escalation, with the scope for another round of attacks remaining high.



During a cabinet meeting on Sunday, Iranian President Masoud Pezeshkian emphasized Iran’s right to react to Israel’s attack, but maintained that they do not seek war.



“We do not seek war, but we will defend our country and the rights of our people. We will give a proportionate response to the aggression,” he said.



Market attention will turn to Hamas‑Israel and Israel‑Hezbollah ceasefire talks that resumed over the weekend, director of mining and energy commodities research at Commonwealth Bank of Australia, Vivek Dhar said.



“Despite Israel’s choice of a low‑aggression response to Iran, we have doubts that Israel and Iran’s proxies (i.e. Hamas and Hezbollah) are on track for an enduring ceasefire,” Dhar wrote in a note.

103308639-GettyImages-128384632

Oil prices slide more than 4% after Israel’s ‘limited’ attack on Iran seen as not disrupting supplies

<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/KC4JBNQVH5KDFMNHV4IGIF4FRY-820x547.jpg" alt="" class="wp-image-546353" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: IMF African Department Director Abebe Aemro Selassie listens to a question during an interview with Reuters at the annual meeting of the International Monetary Fund and the World Bank, in Marrakech, Morocco October 9, 2023. REUTERS/Susana Vera/File Photo</figcaption></figure>



NAIROBI/WASHINGTON, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;Sub-Saharan African nations that depend on commodity exports need to reform their economies to tackle patchy regional economic growth, International Monetary Fund Africa Director Abebe Aemro Selassie said.



The region is expected to grow by 3.6% this year, unchanged from last year and down from an April forecast of 3.8%, the IMF said in its latest World Economic Outlook released this week, with commodity economies lagging their diversified counterparts.



The commodity intensive countries are growing at about half the rate of the rest of the region, the IMF said in the report, with oil exporters struggling the most in what it described as &#8220;subdued and uneven&#8221; regional growth.



&#8220;South Sudan, Nigeria, Angola are all very much in that camp,&#8221; Abebe told Reuters.



While diversified economies such as Senegal and Tanzania are expected to grow at above the regional average, Nigeria will fall short, growing at 2.9%, according to the IMF&#8217;s regional economic outlook for Sub-Saharan Africa launched on Friday.



&#8220;They have had very large macroeconomic imbalances, financing challenges which have held back growth,&#8221; Abebe said.



He said the government in Nigeria needed to &#8220;squarely address&#8221; those challenges, since they had caused high inflation and put pressure on the cost of living.



President Bola Tinubu&#8217;s government has launched a series of reforms it says are aimed at lifting economic growth and attracting investment.



South Africa, whose growth has been curbed by crippling electricity blackouts, is expected to grow by 1.1% this year, the IMF said.



Armed conflicts are also weighing on growth, the IMF said, citing South Sudan&#8217;s oil exports blocked by conflict in neighbouring Sudan, which hosts the crude export pipeline.



&#8220;They (oil exporters) need to find new sources of growth, get more private sector investment &#8211; so working on reforms that will facilitate that is important,&#8221; Abebe said.



Other challenges facing African oil producers include the global transition to green fuels due to climate change, the report said.



<h2 class="wp-block-heading" id="h-small-rebound">SMALL REBOUND</h2>



Sub-Saharan Africa&#8217;s economic growth is expected to improve slightly next year to 4.2%, the IMF report said.



The report found that nearly half of the 20 fastest growing economies in the world this year were in Sub-Saharan Africa, but cautioned that faster growth rates were required to reduce widespread poverty and inequalities.



One of the main obstacles to faster growth include a lack of access to affordable financing, the IMF said, as countries struggle with heavy debt loads and high debt servicing costs.



While some countries have been able to sell bonds on international capital markets this year following a two-year hiatus caused by geopolitical shocks and elevated interest rates in advanced economies such as the United States, the new funding came at a high cost.



&#8220;The old development finance architecture is not delivering, and, if anything, kind of is in the process of disintegrating,&#8221; Abebe said, citing &#8220;very problematic levels&#8221; of official bilateral funding for poor countries.



For countries such as Kenya, where deadly anti-tax hikes protests in June forced the government to withdraw its finance bill for this fiscal year, such development assistance from overseas has been falling in recent years, a senior U.N. official told Reuters.



The solutions lay in ensuring that poor nations continue to access low-priced development financing from bilateral and multilateral lenders, Abebe said.



&#8220;We need also to find ways in which when countries are facing liquidity rather than solvency challenges, more financing can be made available for them to support reforms so they can move on to better times,&#8221; he said.



(Reporting by Duncan Miriri and Karin Strohecker; Graphics by Sumanta Sen; Editing by Alison Williams)

FILE PHOTO: IMF African Department Director Selassie at interview with Reuters during International Monetary Fund and the World Bank meeting in Marrakech

IMF urges African oil exporters’ reforms to boost ‘subdued’ growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-820x550.jpg" alt="" class="wp-image-546297" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-1536x1030.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of the Reserve Bank of Zimbabwe (RBZ)&#8217;s head office in Harare, Zimbabwe, July 17, 2024. REUTERS/Philimon Bulawayo</figcaption></figure>



JOHANNESBURG, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s consumer inflation surged to 37.2% month on month in October in local currency terms,&nbsp;data&nbsp;showed on Friday, after a&nbsp;sharp&nbsp;devaluation in the southern African country&#8217;s currency.



Zimbabwe&#8217;s central bank allowed the local gold-backed currency to fall over 40% in late September, to 24.3902 to the U.S. dollar. The currency has since fallen further, to 27.6880 to the dollar as of Friday, according to the central bank&#8217;s website.



In September, before the devaluation, consumer inflation was at 5.8% month on month in local currency terms.



The ZiG, which stands for Zimbabwe Gold, is Zimbabwe&#8217;s sixth attempt at a stable currency in 15 years after a bout of hyperinflation under leader Robert Mugabe. It was launched in April.



(Reporting by Tannur Anders; Additional reporting by Nyasha Chingono; Editing by Alexander Winning)

A general view of the Reserve Bank of Zimbabwe (RBZ)’s head office in Harare

Zimbabwe inflation surges after currency devaluation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="604" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-820x604.jpg" alt="" class="wp-image-546279" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-820x604.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-300x221.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-768x566.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-1536x1131.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Daniel Chapo, presidential candidate of the ruling Frelimo party casts his vote during the general elections at Inhambane, in the southern Mozambique, October 9, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



MAPUTO, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s ruling party Frelimo has retained power in this month&#8217;s national election, extending its five-decade rule in the Southern African state as the opposition accused it of fraud.



Frelimo&#8217;s Daniel Chapo, 47, will succeed President Filipe Nyusi to become Mozambique&#8217;s fifth president since its independence from Portugal in 1975. Nyusi is stepping down after serving the maximum two terms.



Chapo won over 70% of votes, the electoral commission said on Thursday. Venancio Mondlane, backed by the Podemos party, came second with 20% of votes, displacing former rebel movement Renamo, which had been the official opposition party but whose candidate came third this time around.



In the parliament, Frelimo increased its number of seats to 195 out of 250, more than the 184 it had before.



Observers have said the Oct. 9 election was not free and fair. A European Union mission reported irregularities during counting and alteration of results at the local and district level, problems which have marred most polls since Frelimo first allowed multi-party elections in 1994.



The electoral commission has declined to comment on allegations of vote-rigging. A Frelimo spokesperson did not reply to requests for comment.



Shortly after Chapo was declared winner, Mozambique&#8217;s sole dollar bond, maturing in 2031, fell for a fourth day, TradeWeb data showed as investors assessed the risk of unrest. 



Mondlane, who holds sway over many of the country&#8217;s young voters and claims he is the true election winner, has already called for nationwide protests on Thursday and Friday. Groups of protesters started to gather in the capital Maputo after the result was announced.



Police on Monday used teargas and gunfire to disperse opposition supporters protesting the murder of a Podemos lawyer and party official two days earlier, raising tensions.



Chapo, a lawyer, is seen as a business-friendly choice who analysts say is likely to maintain the status quo, including a fight against Islamist insurgents in the north and partnerships with companies like Exxon Mobil and TotalEnergies, which are trying to get major gas projects off the ground.



The country of nearly 35 million people is struggling with a large debt burden and worsening climate shocks, including drought and cyclones.



(Additional reporting by Siyabonga Sishi and Siphiwe Sibeko in Maputo, Bhargav Acharya and Tannur Anders in Johannesburg, and Libby George in London;Writing by Nellie Peyton;Editing by Alexander Winning and Aurora Ellis)

FILE PHOTO: Frelimo candidate Daniel Chapo casts his vote

Mozambique’s ruling party retains power in contested election

<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-large"><img loading="lazy" decoding="async" width="820" height="514" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/BRICS-SUMMIT-820x514.jpg" alt="" class="wp-image-545973" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/BRICS-SUMMIT-820x514.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/BRICS-SUMMIT-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/BRICS-SUMMIT-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/BRICS-SUMMIT-768x481.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/BRICS-SUMMIT-1536x962.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/BRICS-SUMMIT-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Officials, including South Africa&#8217;s President Cyril Ramaphosa, Russia&#8217;s President Vladimir Putin and China&#8217;s President Xi Jinping, attend a plenary session in the outreach/BRICS Plus format at the BRICS summit in Kazan, Russia October 24, 2024. REUTERS/Maxim Shemetov/Pool</figcaption></figure>



KAZAN, Russia, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Here&#8217;s a brief summary of the outcome of the BRICS summit:



* XI AND MODI: Chinese President Xi Jinping and Indian Prime Minister Narendra Modi met just two days after New Delhi announced that it had reached a deal with Beijing to resolve a four-year military stand-off on their Himalayan frontier.



* LOTS OF LEADERS ATTENDED: Putin, who wanted to show that the West&#8217;s attempt to isolate Russia over the Ukraine war has failed, was able to attract major leaders such as Xi and Modi, and nearly 20 others including Turkey&#8217;s Tayyip Erdogan. U.N. Secretary-General Antonio Guterres also attended.



* BRICS WAITING LIST: Putin said more than 30 countries had expressed a desire to join the BRICS, though there was little immediate clarity on how the expansion would work.



* UKRAINE WAR: BRICS leaders did raise the Ukraine war with Putin in different formats, but there was no sign that anything specific would be done to end the conflict.



* BRICS MONEY: BRICS predicted its influence would grow and outlined common projects ranging from a grain exchange to a cross-border payments system. Here are the main points.



* MIDDLE EAST: Putin told BRICS leaders that the Middle East was on the brink of a full-scale war after a sharp rise in tension between Israel and Iran. 



(Reporting by Vladimir Soldatkin in Kazan; Guy Faulconbridge and Gleb Bryanski in Moscow; editing by Philippa Fletcher)

Final day of BRICS summit in Russia’s city of Kazan

FACTBOX-The main takeaways from the BRICS summit

<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/TG3BU23QHJM5RBLMAA7NS6U5E4-820x547.jpg" alt="" class="wp-image-545857" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TG3BU23QHJM5RBLMAA7NS6U5E4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TG3BU23QHJM5RBLMAA7NS6U5E4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TG3BU23QHJM5RBLMAA7NS6U5E4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TG3BU23QHJM5RBLMAA7NS6U5E4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TG3BU23QHJM5RBLMAA7NS6U5E4-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TG3BU23QHJM5RBLMAA7NS6U5E4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A worker is seen at Anglo American&#8217;s Los Bronces copper mine in Chile, obtained by Reuters on April 26, 2024. Anglo American/Handout via REUTERS/ File Photo</figcaption></figure>



LONDON, Oct 24 (Reuters) &#8211; Global miner Anglo American on Thursday posted double-digit falls in its third-quarter copper and diamond production but maintained its 2024 guidance for the commodities.



Anglo said its copper output fell 13% in the July to September quarter, while rough diamond production decreased by 25% on cuts due to prolonged lower demand.



Its De Beers diamonds unit is exploring options for further output cuts in future, Anglo said.



For the first nine months of 2024, copper output fell 4% to 575,000 tons and diamond production was down 21% at 18.9 million carats.



Anglo still expects to produce 730,000-790,000 tons of copper and 23-26 million carats of rough diamonds this year, even as it assesses additional production cuts going forward.



Its shares, which have risen around 18% this year, opened up 2.2%.



The mining giant is restructuring its business to mainly focus on energy transition metal copper after fending off a $49 billion takeover offer from bigger rival BHP Group in May.



Copper will make up 60% of Anglo&#8217;s business after it sells its Australian steelmaking coal assets and nickel mines in Brazil, as well as divesting De Beers and its platinum business Amplats in South Africa.



Apart from its copper assets in Chile, Anglo will also retain iron ore mines in South Africa and Brazil, as well as the Woodsmith fertiliser project in the United Kingdom, which it has now slowed down.



Anglo said steelmaking coal&#8217;s production fell by 6% in the third quarter after shutting its Grosvenor mine in Queensland due to an underground fire.



The London-listed miner, the world&#8217;s third-largest exporter of metallurgical coal, lowered its yearly production guidance to 14-15.5 million tons from a previous forecast of 15-17 million.



Anglo said the final round of bidders for the coal assets was in place and it expected to announce the sale agreement within months.



(Reporting by Clara Denina and Felix Njini; Editing by Stephen Coates and Mark Potter)

FILE PHOTO: A worker is seen at Anglo American’s Los Bronces copper mine in Chile

Anglo American copper, diamond output down in Q3, 2024 guidance unchanged

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-820x547.jpg" alt="" class="wp-image-545850" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Botswana President Mokgweetsi Masisi speaks to Reuters at the One &amp; Only Hotel as the African Mining Indaba 2022 takes place, in Cape Town, South Africa, May 10, 2022. REUTERS/Shelley Christians</figcaption></figure>



JOHANNESBURG, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Botswana holds a national election on Oct. 30, with President Mokgweetsi Masisi favourite to win a second term against three challengers in a nation his Botswana Democratic Party (BDP) has governed since independence from Britain in 1966.



Voters elect National Assembly members, who then pick the president. Here are some facts about the candidates:



<h2 class="wp-block-heading" id="h-mokgweetsi-masisi">MOKGWEETSI MASISI</h2>



Masisi has been president since 2018 when he ascended to the post after serving as vice president under predecessor Ian Khama. He retained the presidency when his BDP party won the 2019 election.



The 63-year-old is a former schoolteacher who worked for U.N. children&#8217;s agency UNICEF before entering politics. During his first term he contended with high unemployment and lower growth due to declining global demand for diamonds, which Botswana&#8217;s economy relies on.



Masisi gained support last year for negotiating a new sales deal with De Beers that will give the country a bigger share of its diamond wealth, although opponents say he has not done enough to diversify the economy and create jobs.



He has fallen out with Khama, who accuses him of authoritarianism and is backing an opposition party.



<h2 class="wp-block-heading" id="h-duma-boko">DUMA BOKO</h2>



Duma Boko, 54, a lawyer, is running for the third time as leader of the Umbrella for Democratic Change (UDC), an opposition coalition that came second in 2019 and remains the BDP&#8217;s biggest challenge.



In his party manifesto, Boko proposes increasing the government&#8217;s role in the economy to achieve social development and sustainable growth.



Boko&#8217;s party challenged the last election as fraudulent at the High Court, which dismissed the case.



<h2 class="wp-block-heading" id="h-dumelang-saleshando">DUMELANG SALESHANDO</h2>



Dumelang Saleshando, 53, is leader of the Botswana Congress Party (BCP). The BCP was founded in 1998 and has won between 10%-20% of votes in past elections.



Saleshando took over from his father in 2010 as BCP party leader. The party describes itself as having social democratic principles and is campaigning with the motto &#8220;Save Botswana&#8221;.



<h2 class="wp-block-heading" id="h-mephato-reatile">MEPHATO REATILE</h2>



Mephato Reatile is leader of the Botswana Patriotic Front (BPF), a party created in 2019 by members of the ruling party who followed Khama when he broke away from the BDP because of his feud with Masisi.



Khama, whose father Seretse Khama was Botswana&#8217;s founding president, has returned from three years in exile to support the BPF in the election.



The party won about 4% of votes in 2019.



(Reporting by Nellie Peyton; Additional reporting by Brian Benza; Editing by Olivia Kumwenda-Mtambo and Andrew Cawthorne)

Botswana President Masisi speaks to Reuters in Cape Town

Who is running for president in Botswana’s election?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg" alt="" class="wp-image-422104" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-1536x1032.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of IMF at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo</figcaption></figure>



WASHINGTON, Oct 23 (Reuters)&nbsp;&#8211;&nbsp;Kenya has fulfilled all targets mandated by the International Monetary Fund in a review of its loan programme, the country&#8217;s central bank governor told Reuters on Wednesday, and expects to continue its engagement with the global lender after April.



Kenya agreed to a four-year loan with the IMF in 2021, and has also signed up for climate change lending, taking its total loan access with the Fund to $3.6 billion.



But deadly protests against planned tax rises forced the government to scupper its planned finance bill in June, leaving the heavily indebted government with a bigger budget deficit for this financial year, mounting unpaid bills, and a delay in disbursement of IMF funding.



&#8220;We&#8217;ve achieved all that was needed for the reviews to be completed,&#8221; Kamau Thugge, the head of the Central Bank of Kenya, told Reuters in an interview on the sidelines of the IMF and World Bank annual meetings in Washington. &#8220;Obviously after the review there are still the targets for December.&#8221;



A staff level agreement on a combined 7th and 8th review of the country&#8217;s programme is scheduled to go the IMF&#8217;s executive board for a sign-off on Oct. 30, which will in turn trigger a payout of $611 million.



Asked whether the country was going to request another financing programme with the IMF after the current one runs out in April, Thugge said that would be the base case, though the size and duration were yet to be confirmed.



&#8220;It will depend on the balance of payments and needs, it will depend on the ambitiousness of the reforms that we agree,&#8221; he said. &#8220;But definitely, we will have our relationship going forward with the IMF.&#8221;



Speaking about the macroeconomic outlook, Thugge said inflation in Kenya continues to decline and the country had&nbsp;built up more foreign exchange reserves.



Inflation was set to decline below the 3.6% annual rate recorded in September, he said, adding that the country&#8217;s FX reserves currently stood at $8.6 billion, representing 4.3 months worth of imports. The central bank had said earlier in October that reserves stood at $8.25 billion.



More interest rate cuts also are on the cards,&nbsp;Thugge said, after policymakers slashed the benchmark lending rate by 75 basis points in October to 12.00%, following a 25-basis-point reduction in August &#8211; the first rate cut in approximately four years.



&#8220;It&#8217;s the desire of everybody for interest rates to come down,&#8221; Thugge&nbsp;said.



(Reporting by Karin Strohecker; Editing by Paul Simao)

W3TRJMXBPRNATIXO27SFJRC77U

Kenya fulfilled all targets in IMF review, central bank governor says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="432" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LRPYWTISXFKI3LGTJNVMUIQQ5E.jpg" alt="" class="wp-image-545616" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LRPYWTISXFKI3LGTJNVMUIQQ5E.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LRPYWTISXFKI3LGTJNVMUIQQ5E-300x180.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LRPYWTISXFKI3LGTJNVMUIQQ5E-150x90.jpg 150w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">A drone view shows combines harvesting wheat in a field in the Rostov Region, Russia July 9, 2024. REUTERS/Sergey Pivovarov/File Photo</figcaption></figure>



KAZAN, Russia, Oct 23 (Reuters)&nbsp;&#8211;&nbsp;Leaders of the nations in the BRICS grouping, which accounts for 37% of global economic output, predicted its influence would grow as they met in Russia on Tuesday, outlining common projects ranging from a grain exchange to a cross-border payments system.



Russia&#8217;s President Vladimir Putin, who has sought support from BRICS leaders amid his standoff with the West over the war in Ukraine, said that BRICS&#8217; average economic growth in 2024/25 would be 3.8%, compared to global growth of 3.2-3.3%.



&#8220;The trend for the BRICS&#8217; leading role in the global economy will only strengthen,&#8221; Putin said, citing population growth, urbanization, capital accumulation, and productivity growth as key factors.



The joint communique of the summit, called the Kazan Declaration, attacked unilateral sanctions imposed on some of the group&#8217;s members, including Russia and Iran, saying that they harm the poorest people in targeted states.



&#8220;Therefore, we call for their elimination,&#8221; the Kazan Declaration said.



Russia, the world&#8217;s biggest wheat exporter, proposed the creation of a BRICS grain exchange which could later be expanded to trade other major commodities such as oil, gas and metals. The Kazan Declaration welcomed the initiative.



&#8220;BRICS countries are among the world&#8217;s largest producers of grains, legumes, and oilseeds. In this regard, we proposed opening a BRICS grain exchange,&#8221; Putin told the leaders.



<h2 class="wp-block-heading" id="h-cross-border-payments">CROSS BORDER PAYMENTS</h2>



He added that the exchange &#8220;will contribute to the formation of fair and predictable price indicators for products and raw materials, considering its special role in ensuring food security&#8221;.



&#8220;The implementation of this initiative will help protect national markets from negative external interference, speculation, and attempts to create an artificial food shortage,&#8221; Putin said.



Other leaders backed the creation of a common cross-border payments system, which would help BRICS countries trade with each other, bypassing the dollar-dominated global financial system.



Brazilian President Luiz Inacio Lula da Silva, who took part in the BRICS summit via video conference after a head injury over the weekend, said that it is time for the BRICS nations to create alternative payment methods.



He added that the group&#8217;s New Development Bank (NDB) was designed as an alternative to what he called failing Bretton Woods institutions such as the International Monetary Fund (IMF).



<h2 class="wp-block-heading" id="h-local-currencies">LOCAL CURRENCIES</h2>



India&#8217;s Prime Minister Narendra Modi said that he welcomed the steps for financial integration of BRICS countries while China&#8217;s President Xi Jinping urged BRICS countries to deepen financial and economic cooperation.



The Kazan Declaration called for a feasibility study on the other Russian initiatives, a BRICS Clear depositary and securities trade settlement system and a common reinsurance company.



In his speech, Putin also called for the creation of a BRICS investment platform, which will facilitate mutual investment between BRICS countries and could also be used for investment in other countries in the Global South.



Contrary to earlier statements from senior Russian officials on the need to find an alternative to the International Monetary Fund (IMF), the Kazan Declaration enhanced the role of the IMF, stressing the need for further reforms.



The declaration did not mention global dollar dominance, an issue that was often raised during the Russian presidency, nor a BRICS single currency and the use of cryptocurrencies, mentioned by Russia as a way to protect trade from Western sanctions.



&#8220;We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners,&#8221; the Kazan Declaration said.



(Reporting by Vladimir Soldatkin in Kazan, Gleb Bryanski in Moscow; Editing by Alison Williams, Emelia Sithole-Matarise, Philippa Fletcher, Alexandra Hudson)

LRPYWTISXFKI3LGTJNVMUIQQ5E

BRICS leaders tout joint finance, trade projects at Russian summit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UBAOTNJREJN2TDBAOH5F5I53RA-820x550.jpg" alt="" class="wp-image-545534" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UBAOTNJREJN2TDBAOH5F5I53RA-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UBAOTNJREJN2TDBAOH5F5I53RA-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UBAOTNJREJN2TDBAOH5F5I53RA-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UBAOTNJREJN2TDBAOH5F5I53RA-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UBAOTNJREJN2TDBAOH5F5I53RA-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UBAOTNJREJN2TDBAOH5F5I53RA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People charge towards the police, during a nationwide strike called by Mozambique presidential candidate Venancio Mondlane to protest the provisional results of an October 9 election, in Maputo, Mozambique, October 21, 2024. REUTERS/Siphiwe Sibeko</figcaption></figure>



NAIROBI, Oct 23 (Reuters) &#8211; Mozambique&#8217;s dollar bond fell for a third day on Wednesday, Tradeweb data showed, as unrest simmered over disputed election results.



The country&#8217;s sole eurobond, which matures in 2031, shed 0.58 cents to bid at 84.89 on the dollar, taking its losses since Friday to above two cents. 



The full results of Mozambique&#8217;s Oct. 9 national election are expected this week, but opposition candidates say the poll was rigged.



On Saturday, gunmen killed an opposition lawyer and a party official, and police this week fired teargas and bullets at protesters who had gathered where the two were killed.



(Reporting by Duncan Miriri and Shashwat Chauhan, editing by Libby George)

Nationwide strike in Mozambique

Mozambique’s dollar bond falls as unrest over disputed election simmers

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled-1-820x547.jpg" alt="" class="wp-image-545436" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled-1.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A street vendor balances a box on her head as she makes a sale at Markets of Warwick in the Durban CBD, Durban, South Africa May 31, 2024. REUTERS/Alaister Russell/File photo</figcaption></figure>



JOHANNESBURG, Oct 23 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s inflation dropped sharply in September, hitting its lowest level in more than three years and bolstering expectations for another interest rate cut by the central bank next month.



Annual consumer price inflation slowed to 3.8% from 4.4% in August, Statistics South Africa data showed.



Economists polled by Reuters had forecast inflation would&nbsp;drop to&nbsp;3.9%, well below 4.5% &#8211; the mid-point of the South African Reserve Bank&#8217;s 3%-6% target range.



The Consumer Price Index (CPI) rose 0.1% month-on-month in September, the same as a month before.



&#8220;Inflation is well under control in South Africa, this is really the start of a period of about 6 months in which the headline CPI should be below 4%,&#8221; said independent economist Elize Kruger.



The central bank struck a measured tone at its September meeting when it trimmed its main interest rate by 25 basis points to 8%, saying there were still risks on the horizon.



Analysts expect the bank to continue easing policy in quarter point increments, taking the repo rate to 7% by the middle of next year.



&#8220;Larger 50 bps moves are unlikely, in our view,&#8221; Standard Chartered&#8217;s Razia Khan said in a research note. &#8220;We think the SARB will want to proceed cautiously, monitoring global risks and any consumption boost from South Africa&#8217;s recent Two Pot Pension Reforms, which allow earlier pension withdrawals,&#8221; she said.



(Reporting by Bhargav Acharya, Kopano Gumbi and Tannur Anders; Editing by Alexander Winning and Tomasz Janowski)

5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled

South African inflation drops sharply, paving way for more rate cuts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3TYBNL5NNRKODOQ2WWXYLQHUFE-820x615.jpg" alt="" class="wp-image-545417" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3TYBNL5NNRKODOQ2WWXYLQHUFE-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3TYBNL5NNRKODOQ2WWXYLQHUFE-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3TYBNL5NNRKODOQ2WWXYLQHUFE-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3TYBNL5NNRKODOQ2WWXYLQHUFE-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3TYBNL5NNRKODOQ2WWXYLQHUFE-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3TYBNL5NNRKODOQ2WWXYLQHUFE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Residents walk in a flooded area during rescue operations in Maiduguri, northern Borno state, Nigeria September 12, 2024. REUTERS/Ahmed Kingimi/File Photo</figcaption></figure>



Oct 23 (Reuters) &#8211; Devastating rains that triggered deadly floods in Cameroon, Chad, Niger, Nigeria and Sudan in recent months were worsened by human-caused climate change, a team of international scientists said on Wednesday.



Global warming made the seasonal downpours this year about 5-20% more intense across the Niger and Lake Chad basins, said World Weather Attribution (WWA), a group of scientists studying the link between climate change and extreme weather.



It also said such intense rainfall could occur annually if warming continues.



&#8220;Spells of heavy summer rainfall have become the new normal in Sudan, Nigeria, Niger, Cameroon and Chad,&#8221; said Izidine Pinto, Researcher at the Royal Netherlands Meteorological Institute, in a WWA statement.



This year&#8217;s floods killed around 1,500 people and displaced over 1 million more in West and Central Africa, according to the U.N. aid agency OCHA. The rainfall also overwhelmed dams in Nigeria and Sudan.



If global warming reaches 2 degrees Celsius (3.6 degrees Fahrenheit), which could happen as early as the 2050s, such downpours are expected to occur nearly every year in the affected regions, WWA said, calling for more investment in early warning systems and dam upgrades.



&#8220;Africa has contributed a tiny amount of carbon emissions globally, but is being hit the hardest by extreme weather,&#8221; said Joyce Kimutai, researcher at the Centre for Environmental Policy at Imperial College in London.



She said the onus was on this year&#8217;s COP29 climate talks in November to ensure rich nations contribute &#8220;meaningful finance&#8221; to help.



(Reporting by Alessandra Prentice; editing by Barbara Lewis)

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