<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108070539-1733239543660-gettyimages-2187495843-AFP_36PB2LJ-1-820x461.jpeg" alt="" class="wp-image-561728" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108070539-1733239543660-gettyimages-2187495843-AFP_36PB2LJ-1-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108070539-1733239543660-gettyimages-2187495843-AFP_36PB2LJ-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108070539-1733239543660-gettyimages-2187495843-AFP_36PB2LJ-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108070539-1733239543660-gettyimages-2187495843-AFP_36PB2LJ-1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108070539-1733239543660-gettyimages-2187495843-AFP_36PB2LJ-1-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108070539-1733239543660-gettyimages-2187495843-AFP_36PB2LJ-1.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Police stand guard in front of the main gate of the National Assembly in Seoul on December 3, 2024, after South Korea’s President Yoon Suk Yeol declared emergency martial law. South Korea President Yoon on December 3 declared emergency martial law, saying the step was necessary to protect the country from “communist forces” amid parliamentary wrangling over a budget bill.&nbsp; Jung Yeon-je | Afp | Getty Images</figcaption></figure>



South Korean stocks dropped in the U.S. on Tuesday after President Yoon Suk Yeol invoked emergency powers and declared martial law, raising fear of instability in the world’s 13th largest economy.



The iShares MSCI South Korea ETF, which tracks more than 90 large and mid-sized companies in South Korea, tumbled as much as 7% to hit a 52-week low. The ETF cut losses to about 2.4% after lawmakers in the South Korean National Assembly voted to overturn Yoon’s martial law decree early Wednesday morning in Seoul.



Korea Electric Power’s American Depositary Receipts (ADRs) dropped 5%, and Korean e-commerce giant Coupang shed 6%. KT Corporation, formerly Korea Telecom, saw shares fall 3%. Posco, a South Korean steel manufacturer, declined more than 6%.



Within three hours of Yoon declaring martial law late Tuesday night, 190 out of the 300 National Assembly lawmakers gathered to overturn the emergency martial law.



The president accused opposition parties of sympathizing with North Korea and controlling parliament. Yoon did not specify how martial law — a temporary rule by military authorities in a time of emergency — would affect governance and democracy in the country.



“The Administration is in contact with the ROK government and is monitoring the situation closely,” said the White House National Security Council in a statement to NBC News.



Under the martial law declaration, all political activities and acts that “incite social disorder” are prohibited. This is the first time since 1980 a South Korean leader has issued a martial law declaration.



The Korea Exchange announced it would hold an emergency meeting “to prepare response measures” and&nbsp; later decide whether the market would open on Wednesday, according to local media reports.



The U.S. dollar jumped 1.9% against the South Korean won Tuesday.

108070539-1733239543660-gettyimages-2187495843-AFP_36PB2LJ

South Korean stocks rocked in U.S. trading after martial law declared

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1333" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-scaled.jpg" alt="" class="wp-image-483474" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-820x534.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-768x500.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-1536x1000.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">File photo: A man looks at an item before buying at a spaza shop in Thembisa, on the East Rand, in South Africa, August 2, 2023. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



PRETORIA, Dec 3 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s economy unexpectedly&nbsp;shrank&nbsp;in the third quarter of this year&nbsp;as a drought caused&nbsp;a big drop in agricultural production,&nbsp;but analysts said they expected a return to modest growth in the coming quarters.



Data from Statistics South Africa showed gross domestic product (GDP) fell 0.3% in seasonally-adjusted quarter-on-quarter terms, whereas economists polled by Reuters had predicted an expansion of 0.5%.



Agriculture, forestry and fishing&nbsp;contracted 28.8%&nbsp;quarter on quarter,&nbsp;primarily due to field crops.



&#8220;Maize and soy account for about 70% of field crops and we know they have had a difficult quarter due to drought,&#8221;&nbsp;statistician Joe&nbsp;de Beer told a&nbsp;news conference.



Southern Africa has faced&nbsp;its&nbsp;worst drought in decades this year, hurting economic output across the region.



De Beer said the contraction in agriculture had pulled economic growth into negative territory.



&#8220;If we for a moment ignore the agricultural contraction&#8230; then you end up with a GDP figure of 0.4%, which is very much closer to what we&#8217;ve seen from consensus estimates,&#8221; he said.



Capital Economics analyst David Omojomolo said in a research note that the downside surprise could encourage the South African Reserve Bank to continue with its monetary easing cycle.



Razia Khan, chief economist for Africa and the Middle East at Standard Chartered, said the outlook for Africa&#8217;s most industrialised economy remained positive despite the third-quarter contraction.



&#8220;This does not alter our big picture outlook,&#8221; she said, highlighting that mining, manufacturing and construction all grew in the latest quarter.



Of the 10 industries tracked by Stats SA, only four contracted, a presentation by the agency showed.



South Africa&#8217;s third-quarter GDP grew 0.3% on a year-on-year basis, also worse than the 1.2% growth predicted by economists.



(Reporting by Kopano Gumbi; Additional reporting by Tannur Anders; Editing by Alexander Winning and Sharon Singleton)

A man looks at an item before buying at a spaza shop

South African economy unexpectedly shrinks due to drought

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="696" height="441" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/IMG_6346.jpeg" alt="" class="wp-image-561585" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/IMG_6346.jpeg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/IMG_6346-300x190.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/IMG_6346-142x90.jpeg 142w" sizes="auto, (max-width: 696px) 100vw, 696px" /><figcaption class="wp-element-caption">Namibia&#8217;s Vice President and SWAPO presidential candidate Netumbo Nandi-Ndaitwah gestures after casting her vote in the elections in Windhoek, Namibia, November 27, 2024. REUTERS/Noah Tjijenda/File Photo</figcaption></figure>



WINDHOEK, Dec 3 (Reuters) &#8211; Namibia&#8217;s ruling SWAPO party led both the presidential and parliamentary races on Tuesday, a week after voting took place in an election marred by technical challenges.



SWAPO, which has governed the southern African nation since leading it to independence from apartheid South Africa in 1990, fielded Vice President Netumbo Nandi-Ndaitwah as its presidential candidate. If victorious, she would become Namibia&#8217;s first female leader.



Results were initially expected a few days after the Nov. 27 poll, but voting was extended to Nov. 29 and Nov. 30 at several polling stations after some voters were unable to cast their ballots on election day due to technical difficulties and ballot paper shortages.



At 0636 GMT, the electoral commission&#8217;s election portal showed Nandi-Ndaitwah was leading the presidential race with 54.82% of the vote after 65.57% of votes had been counted.



To win the presidency, a candidate must secure over 50% of votes, failing which a run-off is required.



Namibians vote separately for members of the National Assembly, and SWAPO led the ballot with 56.38% of the 66.39% of the votes tallied.



Opposition candidate Panduleni Itula and his Independent Patriots for Change trailed a distant second, with 28.09% of the presidential vote and 19.23% of the vote for the National Assembly.



The timeline for the final result announcement was unclear.



(Reporting by Nyasha Nyaungwa; writing by Tannur Anders; editing by Olivia Kumwenda-Mtambo and Lincoln Feast.)

IMG_6346

Namibia’s ruling party takes lead in election results

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg" alt="" class="wp-image-529685" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ACCRA, Dec 2 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) has approved the third review of Ghana&#8217;s $3 billion lending programme, unlocking an immediate disbursement of about $360 million, the&nbsp;IMF said Monday.



&#8220;Ghana&#8217;s performance under the IMF-supported program has been generally satisfactory. All quantitative performance criteria and indicative targets for the third review were met,&#8221; the IMF said in a statement.



The&nbsp;country&#8217;s finance minister, Mohammed Amin Adam,&nbsp;earlier on Monday told Reuters the review had been approved.



The West African gold and cocoa producer has been recovering from the impact of its 2022 debt default and is set to hold a presidential and parliamentary election on Dec. 7.



&#8220;With three successful IMF reviews in a row, it shows the determination of the government to turn the economy to winning ways. We have demonstrated uncharacteristic discipline in fiscal management,&#8221; Amin told Reuters.



&#8220;We appreciate the enormous work we still have to do, and we will do everything for the benefit of our people,&#8221; he added.



The IMF board approved Ghana&#8217;s current lending programme in May of last year, and the arrangement expires in 2026.



Ghana&#8217;s debt restructuring is expected to lower its debt owed to bondholders by $4.7 billion and provide cash flow relief worth $4.4 billion during the period of the IMF programme.



(Reporting by Maxwell Akalaare Adombila; writing by Anait Miridzhanian and Duncan Miriri; editing by Mark Heinrich and Deepa Babington)

FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington

IMF approves third review of Ghana’s $3 billion programme

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1823067415-820x547.jpg" alt="" class="wp-image-561385" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1823067415-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1823067415-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1823067415-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1823067415-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1823067415-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1823067415-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Joe Biden shakes hands with President Joao Lourenco of Angola during a meeting in the Oval Office of the White House on November 30, 2023 in Washington, DC. (Photo by Alex Wong/Getty Images)</figcaption></figure>



LUANDA, Dec 2 (Reuters)&nbsp;&#8211;&nbsp;U.S. President Joe&nbsp;Biden&nbsp;landed in&nbsp;Angola&nbsp;on Monday for a visit focused on a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3N00D4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">U.S.-backed railway project</a>&nbsp;and on the legacy of slavery, but his decision to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS0N3HW02C&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">pardon his son Hunter&nbsp;Biden</a>&nbsp;threatened to overshadow the official agenda.



The visit fulfils a promise to visit Sub-Saharan Africa during his presidency and aims to bolster the Lobito Corridor project, which links resource-rich Democratic Republic of Congo and Zambia to the&nbsp;Angolan port of Lobito on the Atlantic Ocean.



At stake are vast supplies of minerals like copper and cobalt, which are found in Congo and are a key component of batteries and other electronics. China is the top player in Congo, which has become an increasing concern to Washington.



China signed an agreement with&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AP8N3JL034&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Tanzania and Zambia</a>&nbsp;in September to revive a rival railway line to Africa&#8217;s eastern coast.



&#8220;It&#8217;s going to create incredible economic opportunities here on the continent,&#8221;&nbsp;Biden&#8217;s national security spokesperson John Kirby said, speaking about the Lobito Corridor during a briefing to reporters on Air Force One during the flight to Luanda.



He said&nbsp;Biden&nbsp;would unveil additional commitments to the project during his visit, as well as to health, climate and clean energy programs.



However, reporters on the flight had more questions about the Hunter&nbsp;Biden&nbsp;pardon than they did about investment in Africa. The president&#8217;s spokesperson Karine Jean-Pierre responded to them mostly by repeating Joe&nbsp;Biden&#8217;s own statement on the issue.



The president, whose term in office finishes in January, flew out of Washington shortly after pardoning his son, who had pleaded guilty to tax violations and been convicted on firearms-related charges.



Biden&nbsp;himself did not answer reporters&#8217; questions on the pardon during a brief refueling stop in the small island nation of Cape Verde, off the coast of West Africa, earlier on Monday.



During his two-day visit to&nbsp;Angola,&nbsp;Biden&nbsp;is scheduled to meet with President Joao Lourenco and the Zambian leader President Hakainde Hichilema, and to tour the national slavery museum and various facilities in Lobito.



Partly funded by a U.S. loan, the Lobito Corridor would make it faster and easier to export critical minerals towards the United States, which has been widely seen as a way to divert some of those resources from China.



&#8220;There is no Cold War on the continent. We&#8217;re not asking countries to choose between us and Russia and China,&#8221; Kirby said.



&#8220;We&#8217;re simply looking for reliable, sustainable, verifiable investment opportunities that the people of&nbsp;Angola&nbsp;and the people of the continent can rely on, because too many countries have relied on spotty investment opportunities and are now racked by debt,&#8221; he said.



The Lobito project is backed by global commodities trader Trafigura, Portuguese construction group Mota-Engil&nbsp;MOTA.LS&nbsp;and railway operator Vecturis. The U.S. Development Finance Corporation has provided a $550 million loan to refurbish the 1,300-kilometer (800-mile) rail network from Lobito to Congo.



(Reporting by Trevor Hunnicutt; Writing by Estelle Shirbon; Editing by Angus MacSwan and Chris Reese)

President Biden Meets With Angolan President Goncalves Lourenco At White House

Start of Biden’s visit to Angola overshadowed by son’s pardon

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="526" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-820x526.jpg" alt="" class="wp-image-499905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-768x493.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-1536x985.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Naspers&#8217; logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Dec 2 (Reuters) &#8211; South African technology investor Naspers said on Monday its Prosus e-commerce subsidiary plans more listings after last month&#8217;s Indian IPO of Swiggy, as it posted a 74% jump in half-year core earnings.



Naspers said the aim is for Amsterdam-listed Prosus, which holds international investments including a 24.3% stake in Chinese software and gaming giant Tencent 0700.HK, to deliver profit of $400 million and revenue of $6.2 billion, in the financial year to the end of March, 2025.



&#8220;We had strong growth and strong profitability across the portfolio and we&#8217;re quite confident that we&#8217;re going to keep this growth rate,&#8221; Fabricio Bloisi, CEO of Naspers and Prosus said in an earnings call.



The $400 million forecast in adjusted earnings before interest, tax (EBIT) is a large improvement on the $38 million in the previous financial year at Prosus.



Prosus hopes to list PayU next year and other Indian investments, including e-commerce startup meesho and online jewellery retailer Bluestone, in the next 18 months, it said.



There are many more potential listings in India even after the 18 month target, added Ervin Tu, Naspers and Prosus group chief investment officer.



The company identified one future potentials as Captain Fresh, a seafood company from India.



The e-commerce portfolio includes food delivery firms iFood of Brazil and Delivery Hero&nbsp;DHER.DE, online marketplaces such as OLX, educational software firms such as SkillSoft and Stack Overflow, and payments companies such as India-focused PayU.



Naspers said its core headline earnings for continuing operations rose to $1.5 billion in the six months ended Sept. 30, up from $866 million, while Prosus reported core headline earnings of $3.5 billion, up from $2 billion.



Group revenue rose by 23% to $3.4 billion, while adjusted EBIT swung to a profit of $36 million from a loss of $121 million as its e-commerce business turned profitable.



Consolidated e-commerce revenue at Prosus grew by 26% to $3 billion, driven by continued strong revenue growth in payments and fintech, e-tail and food delivery, Naspers said.



E-commerce adjusted EBIT swung to a profit of $181 million, from a loss of $36 million.



(Reporting by Nqobile Dludla; Editing by Rashmi Aich, Jason Neely and Alexander Smith)

FILE PHOTO: Illustration shows smartphone with Naspers’ logo

South Africa’s Naspers plans more IPOs in next 18 months after Swiggy success

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/47PRCOI25FKKNHQMNP6BLNRXJQ.avif" alt="" class="wp-image-561163"/><figcaption class="wp-element-caption">People at the Agbogbloshie market look on, as supporters of Ghana&#8217;s main opposition party, the National Democratic Congress (NDC), gather in Accra, Ghana, November 28, 2024. REUTERS/Francis Kokoroko </figcaption></figure>



DABALA, Ghana, Dec 2 (Reuters)&nbsp;&#8211;&nbsp;After serving in Ghana&#8217;s police force for over three decades, pensioner Emmanuel Amey-Wemegah had a clear retirement plan: invest part of his pension benefits in government bonds, complete the construction of his house, and buy a car.



All was going according to plan until Jan. 6, 2023, when he received a call from his bank that Ghana was restructuring bonds he held.



&#8220;I started sweating,&#8221; said Amey-Wemegah, 63, recalling the uncertainty and fear that gripped him and other bondholders.



The retired chief inspector is one of thousands of Ghanaian private, corporate and foreign investors whose investments in government securities were restructured in 2023 for Ghana to obtain a three-year, $3 billion International Monetary Fund (IMF) bailout to deal with its worst economic crisis in a generation.



As over 18 million Ghanaians prepare to vote in a presidential election on Dec. 7, Amey-Wemegah&#8217;s plight reflects the economic anxiety gripping many in the West African country &#8211; the world&#8217;s number two cocoa producer. Jobs, education, and infrastructure are also key issues.



During the current authorities&#8217; tenure, Ghana&#8217;s economy buckled under the impact of the COVID-19 pandemic, the war in Ukraine, higher global interest rates and years of excessive borrowing.



Public debt rose from 63% of GDP in 2019 to 92.7% in 2022, the cedi currency suffered rapid depreciation, while inflation peaked above 54%, hitting consumers and forcing businesses to reduce operations.



The government&#8217;s mountain of domestic debt meant that there was no alternative to an IMF deal without restructuring local holdings, something experts said was unprecedented in Africa.



A domestic debt restructuring launched in December 2022 required holders to exchange old bonds for new ones with lower yields and longer maturities.



&#8220;Some of us didn&#8217;t realize exactly what the consequences were,&#8221; Amey-Wemegah told Reuters in his Dabala home in southeastern Ghana, where citations for his meritorious service decorate the walls.



&#8220;They stole our money. I was sad and devastated,&#8221; he said, describing how the restructuring squeezed his income.



He cannot afford to fuel or service his car, and now prioritises spending on his medications.



Businesses have also struggled. An Accra-based start-up consultancy firm which requested anonymity, said its 2 million Ghanaian cedis ($130,718) has been held up in the restructuring, straining liquidity and forcing it to cut jobs.



<h2 class="wp-block-heading" id="h-frustration-with-ruling-party">FRUSTRATION WITH RULING PARTY</h2>



The election is set to be a contest between Vice-President Mahamudu Bawumia, representing the ruling New Patriotic Party, and former President John Dramani Mahama of the main opposition National Democratic Congress.



Mussa Dankwa of Accra-based Global InfoAnalytics said polls show most Ghanaians are struggling with a cost-of-living crisis, making it a key influence on the election.



Voters like Amey-Wemegah and the owner of the consultancy said their challenges with the debt restructuring would inform who they vote for.



&#8220;We&#8217;ve gone to the IMF 17 times,&#8221; said Amey-Wemegah, referring to Ghana&#8217;s fund-assisted bailouts since independence in 1957. &#8220;None of those past governments introduced haircuts. Why is it that this government decided to introduce it. Why?&#8221;



Others, like rice-miller Julius Kwadzo Ameku, are dissatisfied with the authorities&#8217; economic performance more broadly.



Ameku, whose firm operates in southeastern Volta region, said the ruling party&#8217;s initiatives to boost agricultural production had failed and he hoped opposition leader Mahama would usher in positive change.



&#8220;All we need is proper irrigation and flexible loans or grants. The gold, oil and others won&#8217;t take us anywhere,&#8221; he said.



($1 = 15.3000 Ghanaian cedi)



(Editing by Bate Felix and Angus MacSwan)

47PRCOI25FKKNHQMNP6BLNRXJQ

Ghana’s economic crisis looms over impending elections

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="552" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108051586-17296890292024-10-23t105709z_1019049937_rc2aqaac1wbu_rtrmadp_0_russia-brics-820x552.jpeg" alt="" class="wp-image-561143" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108051586-17296890292024-10-23t105709z_1019049937_rc2aqaac1wbu_rtrmadp_0_russia-brics-820x552.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108051586-17296890292024-10-23t105709z_1019049937_rc2aqaac1wbu_rtrmadp_0_russia-brics-300x202.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108051586-17296890292024-10-23t105709z_1019049937_rc2aqaac1wbu_rtrmadp_0_russia-brics-134x90.jpeg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108051586-17296890292024-10-23t105709z_1019049937_rc2aqaac1wbu_rtrmadp_0_russia-brics-768x517.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108051586-17296890292024-10-23t105709z_1019049937_rc2aqaac1wbu_rtrmadp_0_russia-brics-1536x1034.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108051586-17296890292024-10-23t105709z_1019049937_rc2aqaac1wbu_rtrmadp_0_russia-brics-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Officials, including Chinese President Xi Jinping, Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, attend the BRICS summit in Kazan, Russia October 23, 2024.&nbsp; Alexei Danichev | Reuters</figcaption></figure>



MOSCOW, Dec 2 (Reuters)&nbsp;&#8211;&nbsp;The Kremlin said on Monday that any U.S. attempt to compel countries to use the dollar would backfireafter&nbsp;U.S. President-elect Donald Trump&nbsp;threatened to&nbsp;impose tariffs on BRICS countries if they created their own currency.



Trump on Saturday demanded that BRICS member countries commit to not creating a new currency or supporting another currency that would replace the United States dollar, saying they would otherwise face 100% tariffs.



The BRIC grouping initially included Brazil, Russia, India and China, but has since expanded to take in other countries. The grouping does not have a common currency, but long-running discussions on the subject have gained some momentum after the West imposed sanctions on Russia over the war in Ukraine.



Asked about Trump&#8217;s comments, Kremlin spokesman Dmitry Peskov&nbsp;said the dollar was losing its appeal as a reserve currency for many countries,&nbsp;a trend he said was&nbsp;gathering pace.



&#8220;More and more countries are switching to the use of national currencies in their trade and foreign economic activities,&#8221; Peskov told reporters.



If Washington resorted to &#8220;economic force&#8221; to compel countries to use the dollar it would backfire, he predicted.



&#8220;If the U.S. uses force, as they say economic force, to compel countries to use the dollar it will further strengthen the trend of switching to national currencies (in international trade),&#8221; said Peskov.



&#8220;The dollar is beginning to lose its appeal as a reserve currency for a number of countries.&#8221;



Dollar dominance — the outsized role of the U.S. dollar in the world economy — has in fact been strengthened of late, thanks to the robust U.S. economy, tighter monetary policy and heightened geopolitical risks, even as economic fragmentation has boosted a push by BRICS countries to shift away from the dollar into other currencies.



A study by the Atlantic Council&#8217;s GeoEconomics Center this year showed that the U.S. dollar remains the world&#8217;s primary reserve currency, and neither the euro nor the so-called BRICS countries have been able to reduce global reliance on the dollar.



(Reporting by Reuters; Writing by Alexander Marrow/Anastasia Teterevleva; Editing by Andrew Osborn)

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Kremlin says Trump threat to BRICS nations over US dollar will backfire

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1800" height="1200" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/VFKU2JNBTBIDVNPMOMLDRAUIO4.avif" alt="" class="wp-image-560171"/><figcaption class="wp-element-caption">Pedestrians walk in front of Ghana&#8217;s central bank building in Accra, Ghana, November 16, 2015. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Nov 29 (Reuters) &#8211; Ghana&#8217;s central bank kept its main interest rate GHCBIR=ECI at 27.00% on Friday, as food price increases drove consumer inflationGHCPIY=ECI higher for the second month in a row.



While inflation has eased considerably over the year, the pace of deceleration showed some sluggishness since the last monetary policy committee meeting, the central bank said.



&#8220;Inflation projections show a slightly elevated profile driven by high and unstable food prices,&#8221; the bank said in a statement.



Year-on-year inflation in the West African economy, which is set to hold a general election on Dec. 7, edged up to 22.1% in October from 21.5% in the previous month.



The bank said it now expected inflation to reach its medium-term target of 6% to 10% in the fourth quarter of 2025, shifting forward from an earlier forecast that it would reach that goal in the third quarter.



Ghana, which is the world&#8217;s second largest cocoa producer, defaulted on most of its $30 billion external debt in 2022 after years of overstretched borrowing.



It is now close to fully emerging from the default after a long debt restructuring process.



President Nana Akufo-Addo&#8217;s government secured a 3-year, $3 billion bailout from the International Monetary Fund in 2023 and is now on the final lap of a painful process required for the money to be disbursed.



Commercial banks have accumulated enough capital buffers to withstand the effects of the external debt restructuring, the central bank said on Friday.



The International Monetary Fund&#8217;s executive board is set to meet on Dec. 2 to approve the third review of Ghana&#8217;s $3 billion programme, which will unlock a $360 million loan tranche.



(Reporting by Maxwell Akalaare Adombila and Christian Akorlie; Writing by Anait Miridzhanian and Duncan Miriri; Editing by Kevin Liffey, William Maclean)

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Ghana central bank holds policy rate on inflation concerns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/OKONJO-IWAELA-820x546.jpg" alt="" class="wp-image-560115" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/OKONJO-IWAELA-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/OKONJO-IWAELA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/OKONJO-IWAELA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/OKONJO-IWAELA-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/OKONJO-IWAELA.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Director-General of the World Trade Organization Ngozi Okonjo-Iweala speaks during the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 19, 2024. REUTERS/Denis Balibouse/File Photo</figcaption></figure>



GENEVA, Nov 29 (Reuters)&nbsp;&#8211;&nbsp;World Trade Organization chief Ngozi Okonjo-Iweala was reappointed for a second term at a special meeting on Friday, the trade watchdog said, meaning her&nbsp;tenure&nbsp;will coincide with U.S. President-elect Donald Trump&#8217;s&nbsp;second administration.



Analysts expect the road ahead for the three-decade-old WTO will be challenging, likely characterised by trade wars with Trump, who returns to the White House on Jan. 20, threatening hefty tariffs on goods from Mexico, Canada and China.



Okonjo-Iweala, a former Nigerian finance minister who made history in 2021 by becoming the WTO&#8217;s first female and first African director-general, announced in September that she would run again, aiming to complete &#8220;unfinished business&#8221;.



No other candidates ran against her&nbsp;and all of the WTO&#8217;s 166 members agreed by consensus to a proposal to reappoint her.



&#8220;We have a full agenda to deliver&#8230;and we fully intend to get to work immediately, no stopping, to try and deliver on these results,&#8221; Okonjo-Iweala told journalists, citing WTO reforms and fishing negotiations as among her priorities.



Trade sources said the meeting created a means of fast-tracking her appointment process to avoid any risk of it being blocked by Trump, whose teams and allies have criticised both Okonjo-Iweala and the WTO in the past.



In 2020, his administration gave its support to a rival candidate and sought to block her first term. She secured U.S. backing only when President Joe Biden succeeded Trump in the White House&nbsp;in January 2021.



WTO General Council Chair and Norwegian Ambassador Petter Ølberg said the process had been fair and transparent. &#8220;We feel that we now are really fit for the next four years,&#8221; he said.



MOUNTING U.S.-CHINA TENSIONS



Even in the Biden era, WTO negotiations have made limited progress although a handful of deals were struck in Geneva in 2022. Efforts to revamp the WTO&#8217;s dispute settlement system, brought to its knees under Trump due to U.S. opposition to judge appointments, have so far failed to deliver ahead of an end-December deadline.



Many predict the WTO will be a theatre where mounting trade tensions between the U.S. and China will play out, with Trump&#8217;s new trade team expected to challenge Beijing&#8217;s official developing country status at the WTO that critics say endows it with unfair advantages.



China&#8217;s mission sent a message on X congratulating Okonjo-Iweala and saying it was looking forward to working with her and other members &#8220;to safeguard the multilateral trading system&#8221;.



Okonjo-Iweala said she was looking forward to working with the incoming Trump administration and that she saw common ground between them on areas like intellectual property rights. &#8220;I think we should come into things with a very constructive and creative approach to trying to deal with the issues that will face the world trading system,&#8221; she said.



She declined to comment on Trump&#8217;s tariff plans, calling it premature.



Asked to respond to remarks by Trump&#8217;s former U.S. trade representative Robert Lighthizer that she was &#8220;China&#8217;s ally in Geneva&#8221;, she said: &#8220;The WTO has 166 members and I hope they all believe I&#8217;m their ally.&#8221;



(Reporting by Emma Farge, editing by Thomas Seythal, Kevin Liffey and Mark Heinrich)

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WTO chief Okonjo-Iweala reinstated for second term as trade wars loom

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WM23DAP7ZZIDHDPYXPH2BB7XJM.jpg" alt="" class="wp-image-560111" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WM23DAP7ZZIDHDPYXPH2BB7XJM.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WM23DAP7ZZIDHDPYXPH2BB7XJM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WM23DAP7ZZIDHDPYXPH2BB7XJM-135x90.jpg 135w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Bola Tinubu, President of Nigeria, arrives for the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. Lewis Joly/Pool via REUTERS/File Photo</figcaption></figure>



ABUJA, Nov 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria and France have signed two agreements to boost infrastructure development and food security while Nigerian lenders Zenith Bank&nbsp;ZENITHB.LG&nbsp;and United Bank for Africa (UBA)&nbsp;UBA.LG&nbsp;expanded their operations into France.



Nigeria&#8217;s presidential spokesperson Bayo Onanuga said on Friday that the deals, signed the previous day during President Bola Tinubu&#8217;s state visit to Paris, included a 300 million euro investment plan to support critical infrastructure, healthcare, transportation, agriculture, renewable energy and human capital development across Nigeria.



Nigeria&#8217;s finance minister Wale Edun and French economy minister Antoine Armand signed a letter of intent to facilitate the investments. Both nations also pledged to streamline trade and investment processes, Onanuga said in a statement.



&#8220;The two countries committed to forge a strategic relationship in project implementation and enhance mutual trade and cross border services by removing fiscal barriers while protecting labour rights,&#8221; a joint statement said.



In addition to the government-level agreements, Zenith Bank opened its doors in Paris, while UBA is set to follow after agreeing with the French authorities to commence operations in Paris, Onanuga said.



(Writing by Elisha Bala-Gbogbo; Editing by Kirsten Donovan)

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Nigeria and France sign infrastructure and finance deals

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/E2JS3NOVJZMKXHK7BDJKFLCEHI.avif" alt="" class="wp-image-560074"/><figcaption class="wp-element-caption">Supporters attend the campaign launch event of Ghana&#8217;s Vice President and presidential candidate from the ruling New Patriotic Party (NPP), Dr. Mahamudu Bawumia ahead of the 2024 presidential election in Accra, Ghana, February 7, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Nov 29 (Reuters)&nbsp;&#8211;&nbsp;Ghanaians are set to vote on Dec. 7 for a new president to replace Nana Akufo-Addo, who has served the maximum two terms.



Former president John Dramani Mahama of the opposition National Democratic Congress party is seen as the main challenger to Vice President Mahamudu Bawumia, from Akufo-Addo&#8217;s ruling New Patriotic Party.



Ten&nbsp;other candidates are running. Among them, independent candidates Nana Kwame Bediako and Alan Kyerematen, who are expected to take votes from the two main candidates.



<h2 class="wp-block-heading" id="h-john-dramani-mahama">JOHN DRAMANI MAHAMA</h2>



Former president Mahama, 66, is seen by polls as favourite to win the election given a severe economic crisis that has made the current government unpopular.



While vice president in 2012, Mahama became interim leader after the sudden death of president John Atta Mills. A few months later, Mahama won his own mandate in a presidential election.



During his term, he invested heavily in infrastructure but drew criticism over power shortages, macroeconomic instability and allegations of political corruption, though he was not personally tainted.



He suffered back-to-back election defeats to Akufo-Addo in 2016 and 2020.



Mahama told Reuters in an interview that if he wins a new term in office he will seek to renegotiate terms of a $3 billion International Monetary Fund bailout, which was secured last year to restructure the west African country&#8217;s debt.



<h2 class="wp-block-heading" id="h-mahamudu-bawumia">MAHAMUDU BAWUMIA</h2>



Vice President Mahamudu Bawumia, 61, was chosen by the ruling New Patriotic Party (NPP) as its flag-bearer in the election.



He is the first Muslim to lead a major party in Ghana since 1992 and also the first person outside the dominant Akan-speaking ethnic group to lead the NPP.



The 61-year-old economist and former central banker assumed office as vice president in 2017 after Akufo-Addo&#8217;s victory in the 2016 election.



Bawumia became the face of economic policy throughout Akufo-Addo&#8217;s presidency as Ghana battled its worst economic crisis in a generation.



He has promised to simplify the tax system, halve the number of ministers, and cut public spending by 3% of GDP if elected.



<h2 class="wp-block-heading" id="h-alan-kyerematen">ALAN KYEREMATEN</h2>



Alan John Kwadwo Kyerematen, 69, is a former trade minister who served under Akufo-Addo from 2017 to 2023.



He was put forward by Ghana in 2012 as the candidate to succeed Pascal Lamy as head of the World Trade Organization (WTO), but he lost the race.



A prominent member of the ruling New Patriotic Party (NPP), Kyerematen was highly tipped to win the party&#8217;s primary and succeed Akufo-Addo.



But he resigned from the party after coming third in the first stage of the primaries, saying his contributions were not appreciated, and applied to run as an independent candidate.



<h2 class="wp-block-heading" id="h-nana-kwame-bediako">NANA KWAME BEDIAKO</h2>



Bediako started his election campaign as a mystery candidate, hanging billboards across Ghana that showed a masked face and a promise to empower youth.



The 44-year-old businessman, working in infrastructure development, has contributed to the creation of over 700 homes and&nbsp;employs&nbsp;over 3,000 people, according to his website.



The independent candidate&#8217;s election promises include plans to create industries in all of Ghana&#8217;s regions.&nbsp;He has pledged to govern with only 12 cabinet ministers.



Two years ago, Bediako shot into the limelight when his neighbours complained the businessman was keeping tigers at home.



(Reporting by Christian Akorlie and Anait Miridzhanian; Editing by Bate Felix and Daren Butler)

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Who are the main candidates in Ghana’s presidential election?

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4225" height="2817" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/EARVVGDVLZP6LFYHXIQGPYZEYQ.avif" alt="" class="wp-image-559991"/><figcaption class="wp-element-caption">Brazil&#8217;s President Luiz Inacio Lula da Silva, South Africa&#8217;s President Cyril Ramaphosa, China&#8217;s President Xi Jinping, Australia&#8217;s Prime Minister Anthony Albanese, French President Emmanuel Macron, German Chancellor Olaf Scholz, South Korea&#8217;s President Yoon Suk Yeol, Japan&#8217;s Prime Minister Shigeru Ishiba, Mexico&#8217;s President Claudia Sheinbaum, Saudi Foreign Minister Prince Faisal bin Farhan Al-Saud and Russia&#8217;s Foreign Minister Sergei Lavrov pose for a group photo accompanied by other leaders during the G20 summit in Rio de Janeiro, Brazil, November 18, 2024. REUTERS/Pilar Olivares/File Photo</figcaption></figure>



JOHANNESBURG, Nov 29 (Reuters)&nbsp;&#8211;&nbsp;South Africa takes over the G20 presidency on Sunday, the first African country to lead the forum, though its focus on issues such as inclusive growth and climate change risks bumping up against the hard reality of trade wars and diplomatic tensions.



Coming a year after the African Union was admitted as a permanent member of the G20, South Africa&#8217;s turn at the helm is seen as an opportunity to push for progress on policy areas crucial to the continent&#8217;s development.



President Cyril Ramaphosa has cited inclusive economic growth, food security, climate change and artificial intelligence as priorities, with details expected next week.



South Africa is the fourth emerging market in a row to assume the G20 presidency, which rotates annually, after Indonesia, India and Brazil, and Ramaphosa has said his country would seek to build on the work of those predecessors.



The United States will take over in December 2025 under the leadership of Donald Trump, whose incoming administration has threatened to introduce restrictive trade tariffs on nations including Canada, Mexico and China, raising fears of trade wars.



Trump has also largely rejected the scientific consensus on the impact of human activity on climate change and vowed to dismantle climate-related policies he will inherit from President Joe Biden.



&#8220;It will be important for South Africa to ensure that it consolidates positions of the Global South and hands over to the U.S. a solid legacy on issues to avoid the U.S. and Global North diluting or undermining the whole agenda of the Global South,&#8221; said David Monyae, director of the Centre for Africa-China Studies at the University of Johannesburg.



<h2 class="wp-block-heading" id="h-polarised-world">POLARISED WORLD</h2>



The G20, which includes 19 sovereign nations as well as the European Union and African Union, was established to bolster global economic cooperation. It represents 85% of the global economy, 75% of world trade and 67% of the global population.



However, with members such as the United States, China and Russia in open confrontation over trade and wars in Ukraine, the Middle East and elsewhere, global polarisation complicates the G20&#8217;s stated mission.



The International Monetary Fund and rating agencies have warned that increasingly protectionist trade policies were a threat to global growth and could hit emerging market economies the hardest.



Laura Rubidge, foreign policy researcher at the South African Institute of International Affairs, said the G20 presidency would give South Africa a chance to advocate for more effective reforms.



She said progress on issues such as sovereign debt, the IMF&#8217;s Common Framework and improving the World Trade Organization&#8217;s dispute settlement mechanism could help further Ramaphosa&#8217;s inclusive growth objective.



(Reporting by Kopano Gumbi; Editing by Estelle Shirbon and Tomasz Janowski)

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South Africa takes G20 helm as polarisation complicates agenda

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-820x547.jpg" alt="" class="wp-image-559648" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1255804869-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Bank of Uganda, Uganda&#8217;s central bank, in Kampala, Uganda, on Wednesday, May 17, 2023. Uganda estimates that it will need $28.1 billion to adapt to the effects of climate change and cut emissions until the end of the decade. Photographer: Katumba Badru Sultan/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, (Reuters) &#8211; The Bank of Uganda said it was awaiting a police investigation into a news report that offshore hackers stole 62 billion Ugandan shillings ($16.8 million) from the central bank.



Uganda&#8217;s state-owned New Vision newspaper reported on Thursday that hackers, identifying themselves as &#8220;Waste,&#8221; reportedly accessed the Bank of Uganda&#8217;s IT systems and illicitly transferred the funds earlier this month.



The hacking group based in Southeast Asia, sent part of the stolen money to Japan, New Vision said, citing unnamed sources at the bank.



In an emailed response to a Reuters query the Bank of Uganda neither confirmed nor denied the incident, but said it was &#8220;waiting for the police report on the reported incident&#8221;.



Police did not immediately respond to a Reuters request for comment on the matter.



New Vision said the central bank had successfully recovered over half of the money from the hackers. In response to the cyber attack, President Yoweri Museveni has ordered an investigation, it said.



Separately Uganda&#8217;s biggest independent newspaper, Daily Monitor, reported that the theft may have involved collusion by insiders.



Cyber thefts from banks and other financial service providers, including telecom firms, have occurred many times in Uganda. However, police officials have said that some banks are hesitant to publicly acknowledge such incidents due to fears of alienating customers. ($1 = 3,685.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Editing by George Obulutsa, Angus MacSwan and Michael Perry)

Katumba Badru Sultan/Bloomberg

Bank of Uganda awaiting police report on alleged $17 mln hacking theft

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3442" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/DI47TGYKBVJVPHMSRFMIAXEEVA.avif" alt="" class="wp-image-559592"/><figcaption class="wp-element-caption">A logo of the Boxer store of one of South Africa&#8217;s fastest growing discount grocery chains is seen in Protea Glen, South Africa, on November 25, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Nov 28 (Reuters) &#8211; Shares in South African discount grocer Boxer rose 17.6% on their trading debut on the Johannesburg Stock Exchange on Thursday, as investors bet on the growth of discounters after leading last week&#8217;s 8.5 billion rand ($471 million) initial public offering.



Parent Pick n Pay floated a 34.4% stake in Boxer, which started off as a small town operator in KwaZulu-Natal province and has grown to take a 68% share of the discount grocery retail market with over 500 stores in South Africa and neighbouring Eswatini.



Boxer&#8217;s shares opened at 63.01 rand, compared with a pre-listing subscription price of 54 rand. The shared closed at R63.51 after hitting a session high of 64.79 rand.



At 64 rand, the price-to-earnings (P/E) ratio has risen to around 20 times, which is closer to the country&#8217;s biggest grocer Shoprite&#8217;s P/E multiple, Nedbank senior equity research analyst Paul Steegers said.



Sasfin Wealth senior equity analyst Alec Abraham said that was fair &#8220;considering that Boxer&#8217;s medium-term earnings growth rate is likely to be higher than Shoprite.&#8221;



Pick n Pay said on Monday it had sold 157.4 million shares in Boxer and that its order book was multiple times oversubscribed at the top end of the offer price range.



This implies a market capitalisation of 24.7 billion rand for Boxer.



&#8220;The listing on the JSE will increase our profile and visibility, and provide Boxer with access to a large pool of capital for growth,&#8221; Boxer CEO Marek Masojada said before blowing a kudu horn to signal the first trade.



&#8220;The support from investors was overwhelming, clearly demonstrating the worth of the Boxer business.&#8221;



Masojada&#8217;s list of priorities includes ramping up the retailer&#8217;s new store rollout plan, expanding its private label offering and offering of fresh produce such as vegetables and meat, he told Reuters after the listing.



Boxer aims to double its store footprint in the next six to seven years, with 60 to 70 new stores per year.



&#8220;This is a business that still have good growth potential in the South African food retail space, so certainly something that will attract a lot of interest given the mediocre state of the consumer,&#8221; said Casparus Treurnicht, portfolio manager at Gryphon Asset Management.



Pick n Pay, the country&#8217;s third biggest grocery retailer by market capitalisation, will retain a 65.6% stake in Boxer. The listing also completes Pick n Pay&#8217;s two-step recapitalisation plan, significantly strengthening its balance sheet.



($1 = 18.1938 rand)



(Reporting by Nqobile Dludla; Editing by David Goodman and Susan Fenton)

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South African retailer Boxer’s shares jump 16% on market debut

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3560" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/62G224WUNFIBRLU2K6S7VS3YFE.avif" alt="" class="wp-image-559717"/><figcaption class="wp-element-caption">Zimbabwe&#8217;s Finance Minister Mthuli Ncube stands with a briefcase at the Parliament Building in Mt Hampden on the day he presents the 2024 National Budget, Harare, Zimbabwe November 30, 2023.REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Nov 28 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s government expects economic growth to accelerate to 6% in 2025 from 2% this year, helped by improved agricultural output and power generation as the country recovers from a severe drought, Finance Minister Mthuli Ncube said on Thursday.



Ncube added in a budget speech that the budget deficit was seen at 0.4% of gross domestic product next year versus 1.4% this year.



Like other countries in southern Africa, Zimbabwe&#8217;s economy was dealt a blow by an El Nino-induced drought which depressed food production and hydroelectric power supply.



Weaker lithium and platinum prices also weighed on its mining sector.



Ncube told lawmakers in parliament that the agriculture sector was projected to grow 12.8% in 2025 following a 15.0% contraction this year, while mining growth is seen accelerating to 5.6% next year from 2.3% in 2024.



Zimbabwe&#8217;s long-running currency problems persisted in 2024 as policymakers dumped the Zimdollar in April and replaced it with the ZiG, or Zimbabwe Gold, that has also slumped since its launch.



Ncube said without elaborating further that the government would next year seek to encourage greater acceptance of the ZiG by a sceptical public, who still use foreign currencies like the dollar for the bulk of local transactions.



(Reporting by Nyasha Chingono in Harare;Additional reporting by Tannur Anders and Bhargav Acharya in Johannesburg;Editing by Alexander Winning, Kirsten Donovan)

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Zimbabwe sees 2025 growth rebound after this year’s drought

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3265" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/PPA7LZHDAZIPJMJ7KHMLZAMWME.avif" alt="" class="wp-image-559698"/><figcaption class="wp-element-caption">A view shows the logo of South Africa&#8217;s central reserve bank, at the reserve bank offices in Pretoria, South Africa, January 26, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Nov 28 (Reuters)&nbsp;&#8211;&nbsp;The outlook for financial stability in South Africa has improved following successful elections, reduced power cuts, and the expectation of lower interest rates, the central bank said on Thursday.



The coalition government formed in June after the governing African National Congress lost its parliamentary majority for the first time in 30 years has markedly improved investor sentiment.



The rand has strengthened against the U.S. dollar and remains the only emerging market currency to have done so this year.



South Africa has also had eight months of uninterrupted power supply, after years of rolling blackouts of up to 10 hours a day.



The South African Reserve Bank (SARB) is also well into its rate cutting cycle, reducing its main lending rate by another 25 basis points to 7.75% earlier this month, with analysts forecasting more cuts from next year.



In the second edition of its Financial Stability Review (FSR), a biannual health check of the financial system, the central bank said risks remained, many of them structural.



&#8220;The perpetual risks to financial stability include persistently low and inequitable domestic economic growth, the impact of climate change on the financial sector and the ever-present threat of a cyber incident with systemic impact,&#8221; it said.



In addition, ratings agencies have kept South Africa at sub-investment grade for years, although a recent upward revision of the outlook by S&amp;P Global has boosted confidence.



To bolster the long term stability of the financial sector, the SARB is requiring banks to build up additional capital buffers from January 2025.



Banks will have to increase their capital holdings by 1%, with the central bank able to tap these funds in periods of stress.



(Reporting by Kopano Gumbi; Editing by Mark Potter)

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