<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-820x461.jpeg" alt="" class="wp-image-543281" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Christine Lagarde, president of the European Central Bank (ECB), left, and Wolfgang Proissl, director of general communications at the European Central Bank (ECB), at a rates decision news conference in Frankfurt, Germany, on Thursday, Sept. 12, 2024.  Bloomberg | Bloomberg | Getty Images</figcaption></figure>



The European Central Bank is widely expected to announce its third interest rate cut of the year at its Thursday meeting, after policymakers flagged reduced inflation risks and a weakening growth outlook.



Headline price rises in the euro area eased to 1.8% in September, coming in below the central bank’s 2% target for the first time in three years.



A cut on Thursday would see the ECB reducing rates at consecutive meetings for the first time since December 2011.



Expectations for a faster pace of monetary easing have built since the ECB’s Sept. 12 meeting, when market pricing suggested just one more rate cut this year, rather than the two priced in as of Thursday morning.



Along with the latest inflation print on Oct. 1, that shift in sentiment has come amid dovish comments from various ECB members. ECB President Christine Lagarde also swayed markets, when she said the latest data readings “strengthen our confidence that inflation will return to target in a timely manner.”



Another key factor is the euro zone growth outlook. The ECB trimmed its euro zone growth forecast for 2024 last month on the back of weaker domestic demand, now projecting an 0.8% GDP rise, compared with 0.9% previously. Some of its biggest economies continue to face major challenges, including manufacturing weakness in Germany and a huge fiscal consolidation project looming in France; while sentiment indicators remain weak.

108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB

European Central Bank set for first back-to-back interest rate cut in 13 years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-820x553.jpg" alt="" class="wp-image-543225" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-1536x1037.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Deputy President Rigathi Gachagua speaks during a press conference, ahead of lawmakers&#8217; vote over his impeachment motion at his residence in Karen, Nairobi Kenya, October 7, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s Senate opened a second day of hearings on Thursday ahead of a vote on whether to remove Deputy President Rigathi Gachagua from office over charges he embezzled public funds, stirred ethnic hatred and undermined the government, which he denies.



The National Assembly voted last week to impeach Gachagua, who helped President William Ruto win an election two years ago but has been assailed by allies of the president over alleged disloyalty and a series of provocative public comments.



Ruto has not commented on the impeachment process, while Gachagua has called it a political lynching based on falsehoods.



If two-thirds of senators back the motion in a vote scheduled for Thursday evening, Gachagua will become the first Kenyan president or deputy president forced from office by impeachment, a process introduced under the 2010 constitution.



The second day of hearings is scheduled to include hours of testimony by Gachagua, who will respond to a litany of accusations laid out on Wednesday by a lawmaker from Ruto&#8217;s coalition.



The lawmaker, Mwengi Mutuse, said Gachagua had incited hatred in comments about ethnic minorities from his home region.



Mutuse also accused Gachagua of acquiring properties worth over $40 million since becoming deputy president, despite reporting a net worth before entering office of only around $6 million.



In response, Gachagua&#8217;s lawyer, Elisha Ongoya, said the allegations lacked evidence and were based on speculation.



Kenyan courts have declined to block the proceedings as Gachagua requested but have said they could review the legality of the process once it is completed.



The impeachment follows a realignment of Kenyan politics following mass street protests in June and July that forced Ruto to withdraw proposed tax hikes and shake up his cabinet.



Ruto appointed several allies of the main opposition leader Raila Odinga as ministers, a move that was seen as weakening Gachagua&#8217;s influence.



(Reporting by George Obulutsa and Sonia Rao; Editing by Aaron Ross and Christina Fincher)

Kenya’s Deputy President Rigathi Gachagua speaks during a press conference, ahead of lawmakers’ vote over his impeachment motion at his residence in Karen, Nairobi

Kenya’s Senate to vote on removal of deputy president

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-820x461.jpeg" alt="" class="wp-image-543173" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">09 March 2024, China, Peking: Ni Hong (r.), China’s Minister of Housing and Rural Development, speaks at a press conference.  Johannes Neudecker | Picture Alliance | Getty Images</figcaption></figure>



China will expand its “whitelist” of real estate projects and speed up bank lending for these unfinished developments to 4 trillion yuan ($561.8 billion) by the end of the year, the country’s housing ministry said Thursday.



Ni Hong, China’s minister of housing and urban-rural development, made the announcement at a press conference, alongside officials from the central bank, finance ministry and the National Financial Regulatory Administration.



A total of 2.23 trillion yuan had already been approved in loans to whitelisted developers. That figure will almost double to 4 trillion yuan by the end of 2024, according to a senior official from the financial regulatory administration.



Launched in January, China’s “whitelist” initiative allows city governments to recommend residential projects to banks for speedier lending. The intent was to ensure the completion of unfinished housing projects so they could finally be delivered to buyers.



All commercial housing projects are now eligible for the “whitelist” project, Xiao Yuanqi, vice minister of the administration said Thursday. The move is expected to broaden the list.



Xiao also stressed that banks should deploy funds “as soon as possible,” saying they could release the loans in full to developers rather than in tranches, according to CNBC’s translation of the Chinese.



The briefing was the latest in a series of high-level government policy announcements aimed at bolstering the economy.



In late September, Pan Gongsheng, the People Bank of China governor announced a 50 basis-point cut to the amount of cash banks need to have on hand, known as the reserve requirement ratio or RRR. He also lowered the minimum down payment for second-home loans nationwide from 25 percent to 15 percent.



Days later, officials in a top-level meeting, chaired by Chinese president Xi Jinping, pledged to “halt the real estate market decline and spur a stable recovery.”



<h3 class="wp-block-heading" id="h-disappointing-briefing">Disappointing briefing?</h3>



The officials on Thursday’s briefing appeared to be mostly “fine-tuning existing policies,” Bruce Pang, chief economist and head of research of Greater China at JLL, said. “It will take time for the improvement on sales volumes and prices to be translated into property investment and construction.”&nbsp;



Some investors saw the recent flurry of activity as a sign that Beijing was finally ready to take drastic measures to stimulate growth, and they had hoped for more stimulus measures from the briefing. As Xiao was speaking, Chinese CSI 300 real estate index dropped over 5%, in a sharp turnaround from gains of around 8.7% in the previous three trading sessions.



Volatility in the Chinese stock market is likely to continue as investors “lack conviction that the stimulus package and what’s been announced is going to turn around things,” said Chi Lo, senior economist at BNP Paribas Asset Management.



Over the weekend, officials from China’s Ministry of Finance announced that they would allow local governments to issue more special bonds for land purchases and allow affordable housing subsidies to be used for existing housing inventory, instead of only new construction.



Chinese property stocks soared on Monday off the news, with the Hang Seng Mainland Properties Index rising over 2%. Real estate was also the leading gainer in Mainland China’s CSI 300, advancing by nearly 5%.



From its peak in 2020, the HSMPI has lost more than 80%. In May, Ni told reporters at a press conference that developers “that must go bankrupt, should go bankrupt, or be restructured.”



<h3 class="wp-block-heading">Real estate slump</h3>



More than 50 cities across China have introduced policies to boost the real estate market, according to state media, citing the housing ministry.



Ahead of the Golden Week holiday, the city of Guangzhou announced it will remove all&nbsp;restrictions on home purchases. Meanwhile the governments of Beijing, Shanghai, Shenzhen moved to ease homebuying restrictions by non-local buyers and lowered the minimum down-payment ratios.



The slew of measures came after China’s previous measures had led to little meaningful rebounds. New home prices in August dropped at the fastest pace in more than nine years, according to the National Bureau of Statistics data.



The value of new homes sold fell by 23.6% for the year through August, slightly better than the 24.3% drop year-to-date as of July. Average home prices fell by 6.8% in August from the prior month on a seasonally adjusted basis, according to Goldman Sachs.



The real estate sector — once accounted for more than a quarter of China’s economy — had been in a painful downturn since 2021, when Beijing launched a crackdown on the sector’s high debt levels, sending a slew of developers to default on their debts and leave many housing projects unfinished. That had severely dampened homebuyers confidence in the market.



— CNBC’s Evelyn Cheng contributed to this story.

108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079

China pledges more financial support for ‘whitelist’ real estate projects

<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-820x604.jpg" alt="" class="wp-image-542944" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-820x604.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-300x221.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-768x566.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1536x1131.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-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 16 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s ruling party Frelimo was leading provisional election results in all 11 provinces on Wednesday, while opposition parties cried fraud and one called for a strike.



Frelimo&#8217;s presidential candidate Daniel Chapo was widely expected to win the Oct. 9 election. The party has governed Mozambique since 1975 and has been consistently accused of rigging elections, which it denies.



Full results are expected on Oct. 24.



Independent candidate Venancio Mondlane, seen as Chapo&#8217;s biggest challenger, said he was in the lead according to his own tally and called for a nationwide strike on Monday, Oct. 21.



&#8220;They (Frelimo) are not going to hand over power to anyone. They want to continue to control power, finance, business, oil, gas, diamonds, rubies,&#8221; Mondlane said in a video broadcast on his social media pages.



&#8220;To show that the people are actually ruling, we will paralyse all activity on Monday,&#8221; he said.



Presidential candidate Lutero Simango of the Democratic Movement of Mozambique, a small opposition party, said that he would challenge the results in court.



A Frelimo spokesperson did not immediately reply to a request for comment. In public remarks on Friday, Chapo called for people to remain calm while awaiting official results.



Election observers said the poll did not meet international standards for democratic elections. The International Republican Institute, a U.S.-based monitoring group, reported vote buying, intimidation, inflated voter rolls in Frelimo strongholds, limited transparency in result collation, and other issues.



&#8220;Once again, as a country, we held elections that&#8230; do not reflect, at least from what we have been observing, the will of the voters,&#8221; said Edson Cortez, director of the Centre for Public Integrity (CIP), a Mozambican NGO.



A spokesperson for the electoral commission declined to comment on those allegations.



Videos circulating on social media showed street protests in the northern city of Nampula on Wednesday. Reuters was not immediately able to verify the videos.



Mozambique police have opened fire on political protesters in the past, including after last year&#8217;s local elections, according to human rights groups.



(Reporting by Manuel Mucari, Additional reporting and writing by Nellie Peyton; Editing by William Maclean)

FILE PHOTO: Frelimo candidate Daniel Chapo casts his vote

Mozambique ruling party leads early election results as opposition cries foul

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1307" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-scaled.jpg" alt="" class="wp-image-542875" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-1536x980.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A woman walks past an Africa-focused tech startup Jumia Technologies, pickup station in downtown central business district in Nairobi, Kenya November 16, 2021. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



JOHANNESBURG, Oct 16 (Reuters) &#8211; Africa-focused e-commerce retailer Jumia Technologies will close its South African online fashion retailer Zando and its Tunisian operations by the end of the year to sharpen its focus on its other markets, the CEO told Reuters.



Jumia is aggressively cutting costs to try to turn profitable, including by reducing head count, exiting everyday grocery items and food delivery and cutting delivery services not related to its e-commerce business.



&#8220;The trajectory of the countries did not align with the strategy of the group,&#8221; CEO Francis Dufay said, citing complex macroeconomics, the competitive environment and low medium term potential for growth and profitability.



&#8220;We believe it&#8217;s the right decision,&#8221; he added. &#8220;It enables us to refocus our resources on the other nine markets, where we see more promising trends in terms of scale and profitability.&#8221;



Jumia&#8217;s remaining markets include Egypt, Kenya, Morocco and Nigeria. Dufay said success in any would &#8220;easily enable us to recover&#8221; lost volumes from South Africa and Tunisia.



These two businesses accounted for only 2.7% of total orders and 3% of Gross Merchandise Value in the six months ended June 30, Dufay said.



Zando.co.za was founded in 2012 and since then has grown to become a well-known South African online fashion platform. In Tunisia, the business has been operating under the Jumia brand for a decade, selling general merchandise.



Dufay said he was not planning to sell either operation, which will hold clearance sales before shutting.



The closures mean axing about 110 jobs, Dufay said, but some may be relocated to other parts of the group&#8217;s business.



The exit in South Africa follows shortly after the country&#8217;s biggest online retail group Takealot announced the sale of its online fashion business Superbalist in September, amid increasing competition from fast-fashion Chinese e-commerce retailers Shein and Temu.



Dufay said in South Africa &#8220;growth potential was definitely more difficult&#8221; because of the highly competitive environment.



(Reporting by Nqobile Dludla; Editing Tim Cocks and Barbara Lewis)

FILE PHOTO: A woman walks past a Jumia Technologies, pickup station in downtown Nairobi

African online retailer Jumia to exit South Africa and Tunisia

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="789" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1.jpg" alt="" class="wp-image-542871" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1.jpg 1200w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-768x505.jpg 768w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /><figcaption class="wp-element-caption">A logo of the Bank of Namibia is seen at the company&#8217;s headquarters in Windhoek, Namibia, February 24, 2017. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



WINDHOEK, Oct 16 (Reuters)&nbsp;&#8211;&nbsp;Namibia&#8217;s central bank cut its main interest rate&nbsp;for the second meeting in a row on Wednesday, saying inflation had fallen surprisingly quickly and that the economy needed more support.



Its Monetary Policy Committee (MPC) unanimously decided to cut the repo rate by 25 basis points to 7.25%, the same size of cut as at August&#8217;s meeting.



&#8220;The MPC noted the growing momentum in the international monetary policy easing cycle, the retreat in domestic inflation over the medium term, along with the recent downside surprise in the September 2024 inflation print,&#8221; Bank of Namibia Governor Johannes !Gawaxab said in a statement accompanying the decision.



Annual inflation in the southern African country fell to 3.4% in September, a steep drop from the 4.4% posted in August.



The central bank on Wednesday revised down its average inflation forecast for this year to 4.3%, versus a 4.7% forecast given at its last meeting.



It attributed the revision to a more favourable outlook for international oil prices and a stronger domestic exchange rate.



The bank said private sector credit extension remained subdued, suggesting that further support to the domestic economy was warranted.



&#8220;The domestic economy, while growing at a moderate pace, was operating below full capacity,&#8221; !Gawaxab said.



Growth is projected to slow to 3.1% in 2024, compared to 4.2% in 2023.



On a $750 million Eurobond redemption due in late 2025, the central bank governor said Namibia had already set aside 82% of the $500 million it wants to retire at maturity. The government still hopes to refinance the remaining $250 million, !Gawaxab said.



(Writing by Tannur Anders; Editing by Alexander Winning and Gareth Jones)

YWWKJYXNFNKNXNNTA7PVQVR7QU (1)

Namibia central bank cuts key rate again to help growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="552" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-820x552.jpg" alt="" class="wp-image-542826" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-820x552.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-768x517.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1536x1034.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Deputy President Rigathi Gachagua speaks during a press conference, ahead of lawmakers&#8217; vote over his impeachment motion at his residence in Karen, Nairobi Kenya, October 7, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Oct 16 (Reuters)&nbsp;&#8211;&nbsp;Impeachment proceedings against Kenya&#8217;s deputy president are constitutional, a court said on Wednesday, clearing the way for the Senate to hold hearings and vote on his dismissal this week.



Kenya&#8217;s National Assembly voted on Tuesday last week to impeach the deputy president, RigathiGachagua, on 11 charges which included corruption, undermining the government and stirring ethnic hatred. Gachagua has denied all charges.



Gachagua has said the impeachment motion, backed by opposition lawmakers and allies of President William Ruto, was based on falsehoods that constituted a political lynching, according to court documents seen by Reuters.



He launched an appeal in the high court, but Judge Erick Ogolla said the process could go ahead.



&#8220;At this stage, the process is a lawful, constitutional process, and the Senate will conduct a trial where all the issues being raised before the court will be raised and determined at the moment,&#8221; the judge said in court.



The deputy president was Ruto&#8217;s running mate in their 2022 election win, helping secure vital votes from the populous central Kenya region. But the men have since fallen out and political alliances have shifted.



Ruto fired most of his cabinet and appointed members of the opposition to what he called a unity government after nationwide protests against tax increases in which more than 50 people were killed.



The Senate is expected to hold hearings on Wednesday and vote on Thursday. A two-thirds majority would be needed to dismiss Gachagua.



(Reporting by Edwin Okoth and Ammu Kannampilly; writing by George Obulutsa; Editing by Andrew Heavens)

FILE PHOTO: Kenya’s Deputy President Rigathi Gachagua speaks during a press conference, ahead of lawmakers’ vote over his impeachment motion at his residence in Karen, Nairobi

Impeachment proceedings against Kenyan deputy president are constitutional, court says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-820x547.jpg" alt="" class="wp-image-542795" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Jamie Dimon, chairman and CEO of JPMorgan Chase, speaks during the ceremony for placement of the final beam for JPMorgan Chase&#8217;s new global headquarters building at 270 Park Avenue in New York City, U.S., November 20, 2023. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



NEW YORK, Oct 16 (Reuters) &#8211; JPMorgan Chase, the largest U.S. lender, plans to enter Kenya and Ivory Coast this year and grow its footprint in Africa, CEO Jamie Dimon told Reuters.



International markets are a growth area for JPMorgan, which has more than $4.2 trillion in assets and operates in over 100 countries. That compares with Citigroup, which does business in almost 180 countries and has the largest global footprint among U.S. banking giants.



&#8220;We want to add a country or two (enter or deepen presence) in Africa, every couple of years or so,&#8221; Dimon said by phone from New York on Friday before departing on a trip to Africa. The countries and pace of expansion have not previously been reported.



Dimon will hold meetings in Kenya, Nigeria and South Africa on the tour, Reuters reported last month.



&#8220;This will allow us to be on the ground in these countries which gives you a lot more local knowledge and relationships,&#8221; Dimon said.



&#8220;And when you do it, you basically will cover the government, maybe some big government enterprises and the multinationals that are going in there with traditional banking services,&#8221; he added.



In Kenya and Ivory Coast, the bank will focus on commercial and investment banking, treasury services, and possibly some lending, Dimon said. In those two countries, it has no immediate plans to offer asset and wealth management (AWM) services, which are already available in South Africa and Nigeria.



&#8220;We are not doing AWM now but that doesn&#8217;t mean it wouldn’t happen in the next few years,&#8221; Dimon said.



JPMorgan&#8217;s earlier aspirations to enter Ghana and Kenya in the last several year were thwarted by regulators, according to media reports.



On Monday, the Central Bank of Kenya said it authorized JPMorgan to establish a representative office there.



In the past, &#8220;the U.S. government was not very keen on banks expanding into different geographies, as this was just after the financial crisis,&#8221; Dimon said noting the U.S. is now more supportive.



It is a positive move if U.S. financial institutions expand abroad, and the government should support such endeavors to compete overseas, he said, citing the broad footprint of Chinese companies and saying that U.S. companies should also be in these places.



Major global lenders have adopted differing strategies for individual sub-Saharan markets, targeting the fastest-growing areas while seeking to distinguish themselves from local and regional competitors.



For instance, Standard Chartered has focused on Kenya. Its assets under management in the East African nation grew by a quarter last year to 185.5 billion Kenyan shillings ($1.4 billion), it said.



The expansion may not have a material impact on JPMorgan&#8217;s business in the near term, but it will be beneficial for the company and future leaders in the long run, Dimon said.



JPMorgan is among the top five international private banks by assets under supervision.



In the last five years, about 700 bankers have been involved in expanding into 27 new locations worldwide, generating $2 billion in revenue for its commercial and investment bank, executives told investors in May.



(Reporting by Nupur Anand in New York, additional reporting by Hereward Holland, David Lewis and Duncan Miriri in Nairobi, editing by Lananh Nguyen and Lincoln Feast.)

FILE PHOTO: Jamie Dimon, chairman and CEO of JPMorgan Chase

Jamie Dimon charts JPMorgan expansion plan into Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="602" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-820x602.jpg" alt="" class="wp-image-542577" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-820x602.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-300x220.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-768x564.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-1536x1129.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Victims of Cyclone Idai receive food aid at Siverstream Estates in Chipinge, Zimbabwe March 24 ,2019. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



GENEVA, Oct 15 (Reuters)&nbsp;&#8211;&nbsp;Millions of people across southern Africa are facing the worst food crisis in decades, the World Food Programme (WFP) said on Tuesday, warning that its ability to provide relief risks being stymied by funding shortfalls.



Amid unprecedented drought conditions, a record five countries &#8211; Lesotho, Malawi, Namibia, Zambia and Zimbabwe &#8211; have declared a state of disaster and called for international humanitarian support, the U.N. agency said. Angola and Mozambique are also badly affected and around 21 million children are malnourished.



&#8220;Unless we receive additional resources, millions of people risk going through the worst lean season in decades without assistance,&#8221; WFP spokesperson Tomson Phiri told a Geneva press briefing.



The agency is planning to provide food and, in some cases, cash assistance to more than 6.5 million people in the seven hardest-hit countries to cover the period until the next harvest in March.



The WFP said, however, that it had only received about a fifth of the $369 million it needed.



&#8220;Crops failed, livestock has perished and children are lucky to receive even one meal per day. The situation is dire, and the need for action has never been clearer,&#8221; said Phiri.



(Reporting by Emma Farge, editing by Ed Osmond)

LYNXMPEG0F1AI

Millions in southern Africa facing worst food crisis in decades, warns WFP

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-820x524.jpg" alt="" class="wp-image-542491" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-1536x982.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A customer compares prices while shopping at a Pick and Pay shop in East London, in the Eastern Cape province, South Africa, March 17, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Oct 15 (Reuters)&nbsp;&#8211;&nbsp;South African business confidence dipped in September on lower vehicle and retail sales and a drop in the value of building plans, but the overall trend since May&#8217;s election remains positive, data showed on Tuesday.



The South African Chamber of Commerce and Industry&#8217;s Business Confidence Index (BCI) fell to 110.2 in September, down from 111.5 in August but higher than the 109.1 recorded in July.



The BCI is released every two months.



Business sentiment rose gradually from June, when a broad coalition government was formed after the African National Congress lost its parliamentary majority in the election.



&#8220;The meagre dint of the BCI in September may however be ascribed to understanding the challenges and finding convergence between role players,&#8221; the South African Chamber of Commerce and Industry (SACCI) said in a statement.



Factors supporting sentiment last month included increased numbers of international tourists, higher export volumes and lower inflation.



Annual inflation fell to 4.4% in August, dropping below the midpoint of the central bank&#8217;s target range and encouraging it to cut interest rates for the first time in more than four years in September.



SACCI said it hoped the finance minister&#8217;s mid-term budget statement on Oct. 30 would &#8220;confirm the effort of resolving structural impediments in the economy&#8221;.



(Reporting by Tannur Anders; Editing by Alexander Winning)

A customer compares prices, in East London

South African business confidence dips, but post-election trend still positive

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="585" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-820x585.jpg" alt="" class="wp-image-542488" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-820x585.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-300x214.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-768x548.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-1536x1095.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A vendor looks on as she awaits customers at her stall in Mile 12 International Market in Lagos, Nigeria May 13, 2022. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, Oct 15 (Reuters) &#8211; Nigeria&#8217;s inflation rate rose in September for the first time in three months, advancing to 32.70% in annual terms from 32.15% in August, the statistics agency said on Tuesday.



Analysts had said the inflation slowdown in July and August could be short-lived, after three petrol price increases since early September that have roiled citizens already grappling with the worst cost-of-living crisis in a generation.



The renewed rise in inflation raises the prospect the central bank could choose to continue with its rate-hiking cycle, after five hikes so far this year.



The Central Bank of Nigeria&#8217;s next rate decision is due to be announced on Nov. 26.



Nigeria&#8217;s petrol price increases are part of President Bola Tinubu&#8217;s government&#8217;s efforts to exit a costly fuel subsidy programme that has strained the public finances of Africa&#8217;s most populous nation.



Other reforms launched by Tinubu to try to lift economic growth and woo investment include devaluing the country&#8217;s naira currency, another strong contributor to inflationary pressures alongside crop damage caused by floods in food-growing regions.



Data from the National Bureau of Statistics on Tuesday showed food inflation rose to 37.77% year on year in September from 37.52% the previous month.



Economists expect the disinflation process to resume in the coming months, potentially allowing the central bank to switch from a hiking to an easing cycle early next year.



(Reporting by Elisha Bala-Gbogbo in Abuja Additional reporting by Shamsuddin Mohd in Bengaluru; Editing by Alexander Winning and Barbara Lewis)

FILE PHOTO: A vendor looks on as she awaits customers at her stall in Mile 12 International Market in Lagos

Nigeria inflation rises for first time in three months

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="520" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-820x520.jpg" alt="" class="wp-image-542390" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-820x520.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-1536x974.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man carries bread as he walks towards a grocery store, on a flooded street in Bamako, Mali September 23, 2024.REUTERS/Aboubacar Traore</figcaption></figure>



N&#8217;DJAMENA Oct 15 (Reuters)&nbsp;&#8211;&nbsp;Father-of-seven Dah Toubada Kadapia stood on a stack of homemade sandbags in his backyard in Chad&#8217;s capital N&#8217;Djamena, surrounded by floodwaters that locals say have risen higher than past years, causing more damage than ever.



Over the last few months, heavy rains have flooded every one of Chad&#8217;s 23 provinces, burst a dam in northern Nigeria, damaged ancient buildings in Niger&#8217;s desert town of Agadez, and killed more than 1,460 people in the countries on the fringes of the Sahara, according to U.N. aid agency OCHA.



On one hand they were annual rains flagged up in advance with forecasts of particularly heavy downpours, raising the question, said Kadapia, why officials were not better prepared.



&#8220;If only the authorities could find a solution in advance, so that every year it wasn&#8217;t just water, water, water and floods,&#8221; he said.



On the other, some of the inundations were not so predictable. Rains fell further north than usual, flooding desert areas that usually see little rainfall in Chad and elsewhere, exposing gaping holes in infrastructure and official preparedness plans.



Africa&#8217;s economic losses linked to&nbsp;floods&nbsp;have been rising. A&nbsp;report by&nbsp;the World Meteorological Organization, published in&nbsp;2021, said they jumped to $12.5 billion in 2010-19,&nbsp;more than double&nbsp;the&nbsp;average of the&nbsp;preceding three decades.



And experts say there is worse to come.



The Sahel is increasingly threatened by floods due to changes in natural climate patterns, greater rainfall intensity, poor urban planning and other causes, according to a 2021 study in the Journal of Hydrology, which noted that &#8220;widespread havoc and devastation are becoming commonplace&#8221;.



<h2 class="wp-block-heading" id="h-we-lost-everything">&#8216;WE LOST EVERYTHING&#8217;</h2>



A year after that paper was published, West and Central Africa was swept by one of the worst seasonal flooding disasters on record with more than 8.5 million people affected across 20 countries, according to OCHA.



This season, intense heat over the Sahara and other factors pulled the monsoon belt further north than usual, causing downpours in usually arid desert areas, said Wassila Thiaw, deputy director of the U.S. National Oceanic and Atmospheric Administration&#8217;s Climate Prediction Centre.



Compared with the 1991-2020 rainfall record, this July-September period was among the five wettest years in much of Niger, Chad and parts of western Mali.



Some areas in western Niger and Mali, and the border between Niger and Nigeria, saw more rainfall than in the calamitous 2022 season, Thiaw said.



Social media was awash with videos of roads turned to rivers, half-submerged trucks and&nbsp;displaced people desperately trying to salvage their belongings from flooded homes.



Mali declared a state of national disaster and pushed back the start of the academic year by a month as schools filled with families driven from their homes by the floods.



Grandmother Iya Kobla sought shelter after a river in the Mali&#8217;s capital Bamako burst its banks, swamped her fishing village in ankle-deep water, and destroyed some of its mud-built homes.



&#8220;We lost everything and now my grandchildren are all sick,&#8221; she said, next to makeshift beds on a school floor.



<h2 class="wp-block-heading" id="h-a-critical-moment">A CRITICAL MOMENT</h2>



Some of these events were foreseeable. Climate experts say global warming has increased the frequency and intensity of rain. West Africa is also going through a decades-long natural cycle of wetter&nbsp;monsoons following prolonged drought from the 1970s to 1990s, NOAA&#8217;s Thiaw said.



In 2023, the WMO and other international organisations launched an action plan to improve early warning systems for impending natural disasters in Africa, which has the lowest rate of access to such systems of anywhere in the world.



However, data show that the vulnerable communities most in need of these warnings are often the worst equipped to act on them, Andrew Kruczkiewicz, senior researcher at Columbia University&#8217;s Climate School, said.



In Chad, more than 40% of the population live in poverty. Meagre resources are stretched further by the presence of 2 million refugees, many living in basic camps.



&#8220;It&#8217;s incomplete to say if there were an early warning system, that action would have been taken and impact would be averted &#8230; There are many other elements that must be addressed,&#8221; Kruczkiewicz said, referring to the need for a pre-agreed plan, funding, community buy-in and other essentials.



&#8220;We&#8217;re at a critical moment and the West and Central Africa case exemplifies that, because the (rain) forecasts were there.&#8221;



(Additional reporting by Idrissa Sangare in Bamako; Editing by Andrew Heavens)

A man carries bread as he walks towards a grocery store, on a flooded street in Bamako

Monsoon havoc exposes West and Central Africa’s rising flood risks

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



(Reporting by David Lawder; Editing by David Gregorio)

IMF logo is seen outside the headquarters building in Washington

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

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-820x547.jpg" alt="" class="wp-image-542097" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A person enters the JPMorgan Chase &amp; Co. New York headquarters in Manhattan, New York City, U.S., June 30, 2022. REUTERS/Andrew Kelly/File Photo</figcaption></figure>



NAIROBI, Oct 14 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank&nbsp;said on Monday that it had authorised JPMorgan Chase&nbsp;JPM.N&nbsp;to establish a representative office in the East African country.



Representative offices of foreign banks in Kenya serve as marketing and liaison hubs for their parent banks and affiliates, the Central Bank of Kenya said in a statement.



The JPMorgan Chase representative office will contribute to the diversity of Kenya&#8217;s financial sector and catalyse trade and investments, the statement added.



Reuters reported last month, citing four sources familiar with the matter, that JPMorgan Chase&#8217;s CEO Jamie Dimon planned to travel to Africa in mid-October in a push by the biggest U.S. lender to expand on the continent.



(Reporting by Hereward Holland; Additional reporting by Bhargav Acharya; Editing by Alexander Winning)

A person enters the JPMorgan Chase & Co. New York headquarters in Manhattan, New York City

Kenya allows JPMorgan Chase to set up representative office locally

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



(Reporting by Duncan Miriri; Editing by Gareth Jones)

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

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

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-820x461.jpeg" alt="" class="wp-image-542016" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A shipping container and gantry cranes at the Yangshan Deepwater Port in Shanghai, China, on Thursday, Oct. 10, 2024. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



BEIJING — China’s exports grew by 2.4% in September from a year ago in U.S. dollar terms, while imports rose by 0.3%, customs data showed Monday.



Both figures were well below expectations. China’s exports were forecast to have risen by 6% year-on-year in September in U.S. dollar terms, according to a Reuters poll. That would be slower than the 8.7% increase in August.



Imports were expected to have climbed by 0.9% in September from a year ago, according to the Reuters poll. That would be slightly faster than the 0.5% increase in August.



Exports have been a bright spot in China’s economy, which has otherwise been weighed down by lackluster consumer spending and a real estate slump.



Inflation data out Sunday pointed to further weakness in domestic demand.



The core consumer price index, which strips out more volatile food and energy prices, rose by 0.1% in September from a year ago. That’s the slowest since February 2021, according to the Wind Information database. Tourism-related prices fell by 2.1% year-on-year, despite the Mid-Autumn Festival in September and Golden Week holiday that kicked off Oct. 1.



China’s National Bureau of Statistics is scheduled to release third-quarter GDP on Friday, along with retail sales, industrial production and fixed asset investment for September.



Chinese authorities have ramped up stimulus announcements since late last month, while so far falling short on the fiscal policy details many investors have hoped for. Stocks in China have swung wildly as beaten-down markets debate the ultimate impact of Beijing’s economic support.



This is a breaking news story. Please check back for updates.

108046955-1728864181139-gettyimages-2177123447-2177123447

China’s exports and imports grew far less than expected in September

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



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



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



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



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



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



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



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



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



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



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



(Reporting by David Lawder; Editing by Andrea Ricci and Jacqueline Wong)

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featured

European Central Bank set for first back-to-back interest rate cut in 13 years

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Kenya allows JPMorgan Chase to set up representative office locally

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

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