<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/F6FVLRKWENP73DD6QLMRUYW374-820x547.jpg" alt="" class="wp-image-531175" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Heads of state of Mali&#8217;s Assimi Goita, Niger&#8217;s General Abdourahamane Tiani and Burkina Faso&#8217;s Captain Ibrahim Traore attend the opening of for the first ordinary summit of heads of state and governments of the Alliance of Sahel States (AES) in Niamey, Niger July 6, 2024. REUTERS/ Mahamadou Hamidou/File Photo</figcaption></figure>



BAMAKO, (Reuters) &#8211; Mali, Burkina Faso and Niger will introduce new biometric passports as part of their withdrawal from a West African bloc in favour of a new Sahel alliance after military leaders seized power in all three countries, Mali&#8217;s leader said on Sunday.



The three junta-led Sahel neighbours jointly announced in January they would leave the 15-member Economic Community of West African States (ECOWAS), which has sought to persuade them to reconsider their decision.



Burkina Faso announced earlier this month that it was rolling out new passports without the ECOWAS logo.



&#8220;In the coming days, a new biometric passport of the AES (Alliance of Sahel States) will be put into circulation with the aim of harmonising travel documents in our common area and facilitating the mobility of our citizens throughout the world&#8221;, Malian junta leader Assimi Goita announced on Sunday evening.



He spoke ahead of a meeting Monday between the three countries&#8217; foreign ministers on the anniversary of the decision to form their own alliance.



Goita also said they were planning to launch a shared information channel &#8220;in order to promote a harmonious dissemination of information in our three states.&#8221;



ECOWAS has warned that the three countries&#8217; withdrawal would undermine the freedom of movement and common market of the 400 million people living in the 49-year-old bloc.



Their departure comes as their armies battle groups linked to al Qaeda and Islamic State, whose insurgencies have destabilised the region over the past decade and threaten to spill over into coastal West African states.



(Reporting by Tiemoko Diallo and Boureima Balima in Niamey; Writing by Portia Crowe; Editing by Sandra Maler)

FILE PHOTO: Sahel junta leaders meet for a summit in Niamey

Mali, Burkina and Niger to launch biometric passports under new alliance

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1858" height="1045" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed.jpeg" alt="" class="wp-image-531172" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed.jpeg 1858w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-1536x864.jpeg 1536w" sizes="auto, (max-width: 1858px) 100vw, 1858px" /><figcaption class="wp-element-caption">U.S. Federal Reserve Chair Jerome Powell speaks during a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, U.S., July 31, 2024.  Kevin Mohatt | Reuters</figcaption></figure>



Federal Reserve officials head into their policy meeting Tuesday closer to their goal of low inflation, but how much they will ease back on interest rates remains an open question.



A week’s worth of inflation data showed that price pressures have eased substantially since their meteoric rise in 2021-22. One gauge of consumer prices showed 12-month inflation at its lowest since February 2021, while wholesale price measures indicated pipeline price increases are mostly under control.



Both readings were certainly enough to clear the way for an interest rate cut at the Federal Open Market Committee meeting, which concludes Wednesday with a rate decision and an updated forecast on where central bankers see things heading in the future.



“We got two more months of good inflation data” since the last Fed meeting, Claudia Sahm, chief economist for New Century Advisors, said in a CNBC interview Friday. “That’s what the Fed asked for.”



The question, though, turns now to how aggressively the Fed should act. Financial markets, which provide a guidepost on where the central bank is heading, were no help.



Futures markets for most of the past week had lasered in on a quarter percentage point, or 25 basis point, rate cut. However, that turned on Friday, with traders switching to an almost even chance of a either a 25- or a half point, or 50-basis point-reduction, according to the CME Group’s FedWatch tool.



Sahm is among those who think the Fed should go bigger.



The inflation data “on its own would have gotten us 25 next week, as it should, and will get us a whole string of cuts after that,” she said. “The federal funds rate has been over 5%, has been there for over a year to fight inflation. That fight is won. They need to start getting out of the way.”



That means, Sahm said, starting off with a 50 basis-point reduction as a way to put a floor under potential labor market decay.



“The labor market [since] last July has gotten weaker,” she said. “So there’s an aspect of just recalibrating. We got some more information. [Fed officials] need to kind of clean it up, do a 50 basis point cut and then be ready to do more.”



<h2 class="wp-block-heading" id="h-confidence-about-inflation"><a></a>Confidence about inflation</h2>



The inflation reports indicate that the battle to bring inflation back down to 2% isn’t exactly over, but things are at least moving in the right direction.



The all-items consumer price index nudged up just 0.2% in August, putting the full-year inflation rate at 2.5%. Excluding food and energy, core inflation stood at 3.2%, a good deal farther away from the Fed’s target.



However, most of the core strength has come from stubbornly high shelter costs, boosted by the Bureau of Labor Statistics’ byzantine “owners equivalent rent” measure that asks homeowners what they could get if they rented out their residence. The yardstick, which comprises about 27% of the total CPI weighting, rose 5.4% from a year ago.



Despite lingering pressures, consumer surveys indicate confidence that inflation has been subdued if not completely arrested. Respondents to a University of Michigan survey in September expected inflation to run at 2.7% over the next 12 months, the lowest reading since December 2020.



Taking all the various inflation dynamics into account, Fed Chair Jerome Powell said in late August that his “confidence has grown” that inflation is trending back to 2%.



That leaves employment. Powell said in the same speech, delivered at the Fed’s annual retreat in Jackson Hole, Wyoming, that the Fed does “not seek or welcome further cooling in labor market conditions.”



The Fed has two jobs — stable prices and a healthy job market — and the primary mission looks about to change.



“If Powell wants to deliver on his, ‘we want no further weakening, no further cooling,’ they are going to have to, like, really move here, because that cooling trend is well established,” Sahm said. “Until it is interrupted, we are going to continue to see payrolls drift down and [the] unemployment rate drift up.”



<h2 class="wp-block-heading" id="h-the-case-for-a-quarter"><a></a>The case for a quarter</h2>



To be sure, there’s considerable sentiment for the Fed to lower by just a quarter-point at next week’s meeting, reflecting that the central bank still has more work to do on inflation, and that it is not overly worried about the labor market or a broader economic cooling.



“That’s really the key that they need to kind of hone in on, which is that they are normalizing policy and not trying to provide accommodation for an economy that is really in trouble,” said Tom Simons, U.S. economist at Jefferies. “I think they’ve done a very good job of expressing that point of view so far.”



Even with the quarter-point move, which Simons forecasts, the Fed would have plenty of room to do more later.



Indeed, market pricing anticipates rates could come down by 1.25 percentage points by the end of 2024, an indication of some sense of urgency at bringing benchmark borrowing costs down from their highest levels — currently 5.25% to 5.50% — in more than 23 years.



“The whole reason why they’ve been so cautious about cutting is because they’re concerned that inflation is going to come back,” Simons said. “Now, they have more confidence based on data that suggested [inflation] isn’t coming back right now. But they do need to be very careful to monitor potentially changing dynamics.”

108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed

The Fed has the proof it wants that inflation is slowing, but the next move is still up in the air

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-820x547.jpeg" alt="" class="wp-image-530230" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



The U.S. Federal Reserve’s easing cycle will be “mild” by historical standards when it starts cutting rates at its September policy meeting, ratings agency Fitch said in a note.



In its global economic outlook report for September, Fitch forecast 25-basis-point cut each at the central bank’s September and December meeting, before it slashes rates by 125 basis points in 2025 and 75 basis points in 2026.



This will add up to a total 250 basis points of cuts in 10 moves across 25 months, Fitch noted, adding that the median cut from peak rates to bottom in previous Fed easing cycles going up to the mid-1950s was 470 basis points, with a median duration of 8 months.



“One reason we expect Fed easing to proceed at a relatively gentle pace is that there is still work to do on inflation,” the report said.



This is because CPI inflation is still above the Fed’s stated inflation target of 2%.



Fitch also pointed out that the recent decline in the core inflation — which excludes prices of food and energy — rate mostly reflected the drop in automobile prices, which may not last.



U.S. inflation in August declined to its lowest level since February 2021, according to a Labor Department report Wednesday.



The consumer price index rose 2.5% year on year in August, coming in lower than the 2.6% expected by Dow Jones and hitting its lowest rate of increase in 3½ years. On a month-on-month basis, inflation rose 0.2% from July.



Core CPI, which excludes volatile food and energy prices, rose 0.3% for the month, slightly higher than the 0.2% estimate. The 12-month core inflation rate held at 3.2%, in line with the forecast.



Fitch also noted that “The inflation challenges faced by the Fed over the past three and a half years are also likely to engender caution among FOMC members. It took far longer than anticipated to tame inflation and gaps have been revealed in central banks’ understanding of what drives inflation.”



<h2 class="wp-block-heading" id="h-dovish-china-hawkish-japan"><a></a>Dovish China, hawkish Japan</h2>



In Asia, Fitch expects that rate cuts will continue in China, pointing out that the People’s Bank of China’s rate cut in July took market participants by surprise. The PBOC cut the 1-year MLF rate to 2.3% from 2.5% in July.



″[Expected] Fed rate cuts and the recent weakening of the US dollar has opened up some room for the PBOC to cut rates further,” the report said, adding that that deflationary pressures were becoming entrenched in China.



Fitch pointed out that “Producer prices, export prices and house prices are all falling and bond yields have been declining. Core CPI inflation has fallen to just 0.3% and we have lowered our CPI forecasts.”



It now expects China’s inflation rate to bet at 0.5% in 2024, down from 0.8% in its June outlook report.



The ratings agency forecast an additional 10 basis points of cuts in 2024, and another 20 basis points of cuts in 2025 for China.



On the other hand, Fitch noted that “The [Bank of Japan] is bucking the global trend of policy easing and hiked rates more aggressively than we had anticipated in July. This reflects its growing conviction that reflation is now firmly entrenched.”



With core inflation above the BOJ’s target for 23 straight months and companies prepared to grant “ongoing” and “sizable” wages, Fitch said that the situation was quite different from the “lost decade” in the 1990s when wages failed to grow amid persistent deflation.



This plays into the BOJ’s goal of a “virtuous wage-price cycle” — which boosts the BOJ’s confidence that it can continue to raise rates towards neutral settings.



Fitch expects the BOJ’s benchmark policy rate to reach 0.5% by the end of 2024 and 0.75% in 2025, adding “we expect the policy rate to reach 1% by end-2026, above consensus. A more hawkish BOJ could continue to have global ramifications.”

107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell

Federal Reserve will opt for slow policy easing as there’s ‘still work to do’ on inflation, Fitch 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/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-820x547.jpg" alt="" class="wp-image-426578" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The offices of Fitch Ratings building appears empty in Canary Wharf, following the outbreak of the coronavirus disease (COVID-19), London, Britain, May 27, 2020. REUTERS/Dylan Martinez/File photo</figcaption></figure>



JOHANNESBURG, Sept 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s National Treasury said on Friday its plan to reduce expenditure and raise revenue, while implementing critical reforms, was in progress after credit rating agency Fitch affirmed its debt rating at &#8220;BB-&#8221; with a stable outlook.



Fitch said that key drivers affecting its decision to keep South Africa below investment grade include the country&#8217;s high debt-to-GDP ratio, low growth and high levels of inequality.



The ratings agency said that the formation of a government of national unity (GNU) after the May. 29 general elections lowers short term uncertainty and that the reform programme could contribute to modestly increasing real GDP growth.



Fitch acknowledged the marked improvement in power utility Eskom&#8217;s performance this year, but highlighted that ongoing challenges at state logistics group Transnet continue to constrain growth.



South Africa&#8217;s National Treasury said in response that the government would continue to implement &#8216;Operation Vulindlela&#8217;, a programme aimed at accelerating reforms in network industries.



&#8220;Extensive reforms in energy, freight, water, and telecommunications are also in progress,&#8221; it said in a statement.



The Treasury also said that fiscal consolidation efforts would continue and further steps to reduce borrowing over the medium term were being taken.



(Reporting by Kopano Gumbi; Editing by Elaine Hardcastle)

Outbreak of the coronavirus disease (COVID-19) in London

South Africa says reform agenda in progress after Fitch affirms ratings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-820x429.jpg" alt="" class="wp-image-530148" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Colorized transmission electron micrograph of mpox virus particles captured at the NIAID Integrated Research Facility in Fort Detrick</figcaption></figure>



DAKAR, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;The Africa Centres for Disease Control and Prevention (Africa CDC) is able to raise $600 million to fight a surging mpox outbreak on the continent, the agency&#8217;s head said on Thursday.



The World Health Organization declared mpox a global health emergency in mid-August, after a new strain began spreading from the Democratic Republic of Congo to neighbouring countries.



&#8220;If you want to know if I&#8217;m positive that we can raise the $600 million, I will safely say yes,&#8221; Jean Kaseya, director general of Africa CDC, told reporters.



In August, the agency put the estimated cost of the mpox response at $245 million and said that it had secured only about $20 million. Kaseya did not say why the cost, which excludes the cost of vaccines, had increased.



Kaseya said funding could come from African Union countries, development partners, philanthropies and the private sector.



He said that international vaccine alliance GAVI had pledged assistance and Africa CDC was in discussions with The Pandemic Fund, a multilateral organisation that funds pandemic response.



Kaseya said that a transfer of technology to the continent would reduce the price of vaccines by 80%-90%.



Africa CDC said last month that talks had started with Danish biotech firm Bavarian Nordic BAVA.CO to manufacture its mpox vaccine in Africa, which Kaseya said would help make the vaccine affordable for African countries.



Kaseya will announce the amount raised at the U.N. General Assembly in New York this month.



Africa has seen over 26,000 suspected mpox cases including 724 deaths so far this year, Africa CDC data showed.



In Democratic Republic of Congo, children under 15 years account for about 60% of suspected cases and 80% of deaths this year, UNICEF said in a statement on Thursday.



(Reporting by Anait Miridzhanian; Editing by Cynthia Osterman)

5R2BE5PG4RMMTDUCOPH2YZFV5Q

Africa CDC confident it can raise $600 million for mpox response

<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/GettyImages-928551768-820x547.jpg" alt="" class="wp-image-530059" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pravin Gordhan, South Africa&#8217;s minister for public enterprises, arrives on stage to speak during the future of South Africa conference in Cape Town, South Africa, on Wednesday, March 7, 2017. South Africa &#8220;could easily see&#8221; its economy expand by 2 percent to 3 percent in the next year or two as the government tackles graft at state-owned companies and implements plans to create jobs, Gordhan said. Photographer: Halden Krog/Bloomberg via Getty Images</figcaption></figure>



Former South African Finance Minister Pravin Gordhan has died after a short illness.



His family said Gordhan, who also previously served in the Ministries of Public Enterprises and Cooperative Governance, died in the early hours of Friday. He was 75.



Gordhan was lauded for standing up against corruption under former President Jacob Zuma during a period that came to be known as state capture when India’s Gupta brothers were accused of widespread bribery and corruption of government officials. He was a freedom fighter for the African National Congress during its struggle against apartheid rule.



“We have lost an outstanding leader whose unassuming persona belied the depth of intellect, integrity and energy with which he undertook his activism, his duty as a parliamentarian and his roles as a member of Cabinet,’’ President Cyril Ramaphosa said in a condolence message.



Gordhan was appointed as Commissioner of the South African Revenue Service (SARS) in 1999, after a period as Deputy Commissioner as South Africa transitioned to democratic rule. His decade at SARS was marked by improved tax collection and governance, which led to his appointment as Finance Minister in 2009 till 2014.



His family said Gordhan understood public service was for the greater good rather than self-enrichment.



“He understood that participation in government was not merely a technical or technocratic role. Rather, it was to advance the high public duty that the Constitution bestows on all of us: to uplift the poor, eliminate inequalities, fight racism, greed and corruption, and create a society where social justice and economic emancipation occur within a far-reaching transformation of our society.’’



Gordhan also briefly served as Minister of Cooperative Governance and Traditional Affairs from 2014 until 2015, and then as Minister of Public Enterprises from February 2018 until March this year when he retired.



“In the latter years of this service to the nation, and as a beacon of our fight against corruption, Pravin Gordhan stood up to derision and threats emanating from some in our nation who were scorched by his insistence that justice be dispensed against those who sought to undermine our democracy and raid our public resources and assets.’’



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

Pravin Gordhan

Former South African Finance Minister Pravin Gordhan Passes on

<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/TE64AB445NMSZBY6PXTJEU3TG4-820x547.jpg" alt="" class="wp-image-529796" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, U.S., February 14, 2019. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;U.S. e-commerce giant Amazon.com&nbsp;is in South Africa for the long run, its regional marketplace head said on Thursday, after its&nbsp;first foray&nbsp;into Sub-Saharan Africa four months ago.



Africa&#8217;s most advanced economy is usually seen as a good entry point for companies to expand into the continent and Amazon could be doing the same, analysts have said.



Its entry comes amid a sharp rise in online shopping in South Africa after the pandemic created an opportunity for e-commerce to finally take hold, with retailers including Naspers-owned&nbsp;e-commerce leader Takealot.com doubling down on investments in response.



Unlike the fanfare arrival that shoppers expected, Amazon launched in May with limited products on its website and little marketing while it worked to bring independent sellers onto its platform. The company has not given details of its plans.



Amazon&#8217;s Head of Marketplace for Sub-Saharan Africa, Suzelle Abe, hinted at a gradual approach, telling potential sellers at an e-commerce conference in Johannesburg that the retailer would keep building its online store with more categories and sellers.



&#8220;We want to get to know the customers. We want to get to know a lot of important learnings and through that, we keep on building,&#8221; Abe said.



&#8220;And yes, we&#8217;re definitely here for the long run.&#8221;



The retailer, which made South Africa its 23rd launch country, recently added jewellery and luggage to its growing list of categories, Abe added, with more to come.



Amazon has two fulfilment centres in South Africa, one in Johannesburg and one in Cape Town, and has partnered with click-and-collect companies such as Pargo and home courier companies for last-mile delivery.



Apart from Takealot.com and local retailers, Amazon is also competing with U.S. retail giant Walmart Inc, which owns food and general merchandise group Massmart, and low-price fast-fashion sites Shein and Temu, which have disrupted South Africa&#8217;s discount fashion market.



(Reporting by Nqobile Dludla; Editing by Mark Potter)

FILE PHOTO: FILE PHOTO: The logo of Amazon is seen on the door of an Amazon Books retail store in New York

Amazon is in South Africa for the long run, says marketplace head

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg" alt="" class="wp-image-529745" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-1536x1005.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shoppers look for items as they shop at an outlet of retailer Checkers in Sandton City mall, in Sandton, South Africa, August 28, 2024. REUTERS/Lelethu Madikane</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;South African analysts, business people and trade unions further lowered their inflation expectations in the third quarter of this year, bringing them closer to the level targeted by the central bank, a quarterly survey showed on Thursday.



The results of the survey &#8211; a key data point for the central bank at its monetary policy meetings &#8211; are likely to reinforce expectations that the bank will cut its key rate for the first time in more than four years on Sept. 19.



The average inflation forecast for 2024 fell to 5.1% in the third quarter from 5.3% in the second quarter, the Bureau for Economic Research&#8217;s survey showed.



For 2025 the average dropped to 4.8% from 5.0% in the second quarter, and for 2026 it fell to 4.8% from 4.9%.



The South African Reserve Bank (SARB) tries to keep inflation close to 4.5%, the midpoint of its target band of 3%-6%. In explaining previous decisions to keep rates unchanged, it said inflation expectations were still uncomfortably high.



Forecasts for a September rate cut were buttressed by July&#8217;s year-on-year inflation falling to within a whisker of the midpoint at 4.6%. August&#8217;s inflation print is scheduled for release on Sept. 18, the day before the SARB&#8217;s rate announcement.



At the last monetary policy meeting in July two of the six members of the SARB&#8217;s Monetary Policy Committee voted for a 25 basis point cut, while four preferred no change, the eventual decision.



One worry for the central bank in the latest inflation expectations survey is that the inflation forecast of households rose steeply, reaching its highest level this year at 6.9% from 6.4% in the second quarter.



The rise was driven by the respondents in the low-income category, suggesting the poorest South Africans may be more exposed to price pressures.



(Reporting by Kopano Gumbi; Editing by Alexander Winning, William Maclean)

Shoppers look for items as they shop at an outlet of retailer Checkers

South African inflation expectations fall again in Q3

<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/GettyImages-1920634146-820x547.jpg" alt="" class="wp-image-529724" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Mary Vilakazi, incoming chief executive officer of FirstRand Ltd., at the bank&#8217;s headquarters in Johannesburg, South Africa, on Thursday, Jan. 11, 2023. FirstRand is looking to purchase other African banks in countries where it operates as the continent&#8217;s biggest lender by market value seeks to expand. Photographer Leon Sadiki/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters) &#8211; South African lender FirstRand posted a 4% rise in annual profit on Thursday despite absorbing a 3 billion rand ($167 million) pre-tax accounting provision related to an investigation by Britain into the vehicle finance market.



Its normalised earnings rose to 38 billion rand in the year ended June 30 from 36.6 billion the previous year, the bank said.



Excluding the provision, normalised earnings grew by 10%, group CEO Mary Vilakazi said in a statement.



British lenders have been told by the Financial Conduct Authority to ensure they are adequately prepared to meet the potential costs of customer complaints arising from its review into the motor finance industry.



The regulator began looking into potential overcharging in the industry in January, amid rising tensions between thousands of consumers and lenders over commission arrangements.



In addition to the provision, 300 million rand of legal and professional fees were incurred in relation to the UK probe, the bank said.



($1 = 17.9160 rand)



(Reporting by Nqobile Dludla; editing by Jason Neely and Emelia Sithole-Matarise)

Africa’s Biggest Bank Seeks Acquisitions to Power Expansion Says Incoming CEO Mary Vilakazi

South African lender FirstRand’s profit rises despite UK motor loans charge

<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>



KAMPALA, Sept 12 (Reuters) &#8211; The start of commercial crude oil production in Uganda is expected to propel economic growth into double digits in the next financial year, the International Monetary Fund (IMF) said.



Uganda&#8217;s economy would race to 10.8% growth in the 2025/2026 fiscal year which starts in July, up from a projection of 6.2% in the previous period, the IMF said in a report published late on Wednesday.



&#8220;Growth is expected to strengthen, boosted by the start of oil production, which will make (a) lasting improvement (to) the fiscal and current account balances,&#8221; the IMF said in the report.



After nearly 20 years of delay, the east African country is finally expected to commence production and export of crude oil next year from fields in its west.



Commercial reserves were discovered in 2006 but a range of factors including disputes with oil firms over development strategy and lack of requisite infrastructure had delayed production.



At peak Uganda is seen pumping 240,000 barrels of oil per day from its reserves, which are estimated at 6.5 billion barrels.



The IMF said Uganda&#8217;s foreign exchange (FX) reserves had continued to decline, and urged intervention by the central bank including a &#8220;reduction in government imports, along with stepped up FX purchases and greater exchange rate flexibility.&#8221;



The country&#8217;s FX reserves fell to $3.2 billion in June, down from $3.7 billion in December 2023, because of the high cost of servicing debt, the government&#8217;s inability to secure cheap credit, and limited hard currency purchases, the IMF said.



(Reporting by Elias Biryabarema; Editing by Hereward Holland and Lincoln Feast.)

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

Crude oil production to thrust Uganda’s economic growth into double digits – IMF

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-820x548.jpg" alt="" class="wp-image-529650" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/7BCG6QNXMJLJZG2Q5Z4UAZGMHE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. Ambassador to the United Nations Linda Thomas-Greenfield attends a United Nations Security Council meeting about the Israel-Hamas conflict in Gaza, at the U.N. headquarters in New York City, U.S., September 4, 2024. REUTERS/David &#8216;Dee&#8217; Delgado/File Photo</figcaption></figure>



UNITED NATIONS, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;The United States supports creating two permanent United Nations Security Council seats for African states and one seat to be rotated among small island developing states, U.S. Ambassador to the U.N. Linda Thomas-Greenfield will announce on Thursday.



The move comes as the U.S. seeks to repair ties with Africa, where many are unhappy about Washington&#8217;s support for Israel&#8217;s war in Gaza, and deepen relations with Pacific Islands nations important to countering Chinese influence in the region.



Thomas-Greenfield told Reuters she hopes the announcement will &#8220;move this agenda forward in a way that we can achieve Security Council reform at some point in the future,&#8221; describing it as part of U.S. President Joe Biden&#8217;s legacy.



The push for two permanent African seats and a rotating seat for small island developing states is in addition to Washington&#8217;s long-held support for India, Japan and Germany to also get permanent seats on the council.



Developing nations have long demanded permanent seats on the Security Council, the most powerful body in the United Nations. But years of talks on reform have proved fruitless and it is unclear whether U.S. support could fuel action.



Ahead of making the announcement at the Council on Foreign Relations in New York on Thursday, Thomas-Greenfield clarified to Reuters that Washington does not support expanding veto power beyond the five countries that hold it.



The Security Council is charged with maintaining international peace and security and has the power to impose sanctions and arms embargos and authorize the use of force.



When the U.N. was founded in 1945, the Security Council had 11 members. This increased in 1965 to 15 members, made up of 10 elected states serving two-year terms and five permanent veto-wielding nations: Russia, China, France, the U.S. and Britain.



<h2 class="wp-block-heading" id="h-legitimacy-problem">LEGITIMACY PROBLEM</h2>



U.N. Secretary-General Antonio Guterres backs Security Council reform.



&#8220;You have a Security Council that corresponds exactly to the situation after the Second World War &#8230; that has a problem of legitimacy, and that has a problem of effectiveness, and it needs to be reformed,&#8221; Guterres told Reuters on Wednesday.



Any changes to the Security Council membership is done by amending the founding U.N. Charter. This needs the approval and ratification by two-thirds of the General Assembly, including the Security Council&#8217;s current five veto powers.



The 193-member U.N. General Assembly has annually discussed reform of the Security Council for more than a decade. But momentum has grown in recent years as geopolitical rivalries have deadlocked the council on several issues, particularly after permanent veto-wielding member Russia invaded Ukraine.



&#8220;Much of the conversation around Security Council reform has been just that: a conversation,&#8221; Thomas-Greenfield will say on Thursday, according to prepared remarks reviewed by Reuters of her announcement that Washington supports moving to negotiations on a draft text to amend the U.N. Charter to expand the council.



Thomas-Greenfield told Reuters she could not say how long it might take to get the General Assembly to vote on such a resolution.



Each year the General Assembly elects five new members from different geographical groups for two-year terms on the Security Council. Africa currently has three seats rotated among states.



&#8220;The problem is, these non-permanent seats don&#8217;t enable African countries to deliver the full benefit of their knowledge and voices to the work of the council &#8230; to consistently lead on the challenges that affect all of us &#8211; and disproportionately affect Africans,&#8221; Thomas-Greenfield will say.



She will also say that small island developing states deserve a rotating elected seat because they offer &#8220;critical insights on a range of international peace and security issues: including, notably, the impact of climate change.&#8221;



(Reporting by Michelle Nichols; Editing by Don Durfee and Tom Hogue)

FILE PHOTO: UN Security Council meeting in New York

US supports two permanent UN Security Council seats for Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S5LZY64NRJN3PBETOPLEHJD2FY-2-1-820x540.jpg" alt="" class="wp-image-529340" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S5LZY64NRJN3PBETOPLEHJD2FY-2-1-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S5LZY64NRJN3PBETOPLEHJD2FY-2-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S5LZY64NRJN3PBETOPLEHJD2FY-2-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S5LZY64NRJN3PBETOPLEHJD2FY-2-1-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S5LZY64NRJN3PBETOPLEHJD2FY-2-1-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S5LZY64NRJN3PBETOPLEHJD2FY-2-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa&#8217;s President, Cyril Ramaphosa, speaks during the launch of the new Sandvik Khomanani manufacturing site at Khomanani in Kempton Park, Johannesburg, South Africa, September 9, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Sept 11 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa&#8217;s office said he would sign into law a disputed education bill, prompting the first sign of real friction in his unity government when the second-biggest party said the move jeopardised the coalition deal.



Ramaphosa&#8217;s spokesperson called for restraint in response to the statement from the Democratic Alliance on Wednesday, saying there was no need to threaten the stability of government over a bill.



The DA entered into a coalition with Ramaphosa&#8217;s African National Congress and other smaller parties, despite strong ideological differences between them, after the ANC lost its parliamentary majority in a May election



The passing of the legislation would violate the agreements and understandings that formed the basis of the government of national unity, DA leader John Steenhuisen said in a statement.



&#8220;The DA regards this issue in the most serious light, and I will convey to the President the destructive implications it holds for the future of the GNU,&#8221; he said.



Steenhuisen did not spell out what the implications would be. He is due to address journalists in Cape Town on Thursday to outline what he sees as the DA&#8217;s role in the unity government.



Presidential spokesperson Vincent Magwenya said that disagreements over legislation were to be expected, and that the parties in government would be meeting on Wednesday evening to discuss a dispute resolution mechanism.



&#8220;There shouldn&#8217;t be any concern that each time there&#8217;s a dispute, the entire governance framework of this country will be under threat,&#8221; Magwenya told reporters in Cape Town.



&#8220;The president is not concerned about the GNU (government of national unity) collapsing,&#8221; he added.



The disputed bill makes several changes to basic education laws in South Africa. The clause that has caused the most controversy would strengthen government oversight over schools&#8217; language and admission policies, touching on a sensitive debate about racial integration.



The ANC says some children are still excluded from schools based on language, which has been used as a proxy for race, and that the legislation will help prevent that.



The DA has defended the right of school governing bodies to determine their language policies, citing the&nbsp;importance of mother-tongue education.



Although the bill does not name any specific language or group, some of its strongest opposition has come from South Africa&#8217;s white Afrikaans-speaking community, with interest group AfriForum saying it threatens the survival of Afrikaans schools.



The DA&#8217;s statement followed a presidency statement saying that Ramaphosa would sign into law the Basic Education Laws Amendment (BELA) bill on Friday in a ceremony at the Union Buildings, the seat of government in the capital Pretoria.



(Reporting by Nellie Peyton; Additional reporting by Tannur Anders; Editing by Alexander Winning, Ros Russell and Mark Porter)

FILE PHOTO: South African President Cyril Ramaphosa attends the launch of the new Sandvik Khomanani manufacturing site

South Africa’s coalition government sees first real friction over education bill

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1333" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-154793123-scaled.jpg" alt="" class="wp-image-481529" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-154793123-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-154793123-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-154793123-820x534.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-154793123-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-154793123-768x500.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-154793123-1536x1000.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A visitor descends stairs outside the offices of Anglo American Plc in the Marshalltown district of Johannesburg, South Africa, on Friday, Oct. 26, 2012. Anglo American Plc Chief Executive Officer Cynthia Carroll , the first woman, external hire and non-South African to hold the job, will quit after Anglo lost $14 billion in value in the more than five years she was in charge. Photographer: Chris Ratcliffe/Bloomberg via Getty Images</figcaption></figure>



Sept 11 (Reuters) &#8211; Miner Anglo American on Wednesday said one of its subsidiaries has raised 7.2 billion rand ($403.21 million) from the sale of about a 5.3% stake in Anglo American Platinum (Amplats) as part of a share sale program that launched a day earlier.



Anglo American South Africa Proprietary Limited sold 13.9 million Amplats shares for $28.84 per share, the miner said.



An accelerated bookbuild offering of about 13 million shares of Amplats was launched on Tuesday, ahead of the South African unit&#8217;s demerger expected next year.



&#8220;The placing is intended to broaden the free float of Anglo American Platinum, reduce the number of shares distributed to Anglo American shareholders upon demerger and thereby reduce flowback following the demerger,&#8221; Anglo American said.



Amplats CEO Craig Miller had said in July that the company was planning a secondary listing in London.



($1 = 17.8824 rand)



(Reporting by Aatrayee Chatterjee and Yamini Kalia in Bengaluru; Editing by Shreya Biswas and Mrigank Dhaniwala)

Anglo American Plc’s South African Headquarters As CEO Cynthia Carroll Quits

Anglo American nets over $400 mln from platinum unit share sale amid demerger plans

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="448" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VZR7ERWAWBPMBAR7E4PB4GBYGY.jpg" alt="" class="wp-image-421144" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VZR7ERWAWBPMBAR7E4PB4GBYGY.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VZR7ERWAWBPMBAR7E4PB4GBYGY-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VZR7ERWAWBPMBAR7E4PB4GBYGY-146x90.jpg 146w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Kenya Airways planes are seen through a window as the Jomo Kenyatta international airport reopens after flights were suspended following the coronavirus disease (COVID-19) outbreak in Nairobi, Kenya August 1, 2020. REUTERS/Njeri Mwangi/File Photo</figcaption></figure>



NAIROBI, Sept 11 (Reuters) &#8211; Workers at Kenya&#8217;s main international airport began a strike on Wednesday, blowing plastic trumpets and scuffling with police in a protest against an Indian company that caused flight cancellations and delays for hundreds of passengers.



Dozens of workers at Nairobi&#8217;s Jomo Kenyatta International Airport chanted &#8220;Adani must go&#8221; in reference to a proposed deal for the Adani Group to lease it for 30 years in exchange for $1.85 billion investment in expansion.



Outside the terminals, passengers sat on curbs and luggage trolleys waiting for updates on flights as departure and arrival boards were shut off.



&#8220;It&#8217;s very poor,&#8221; said one passenger, Ahmed Abdulrahman, recounting a six-hour wait.



&#8220;Nobody is coming out to tell us anything, whether we should leave or look for a hotel or something. I have a little child here waiting hungrily,&#8221; added Warda Omar, standing next to her child.



TV footage showed one police officer hitting a protester with a baton. By midday, lines were moving again, as police conducted security checks instead of airport staff.



It was unclear how many workers were taking part in the strike, which has been declared indefinite, or how much disruption had been caused.



Major regional carriers Kenya Airways, Ethiopian Airlines and RwandAir reported flight cancellations and delays.



<h2 class="wp-block-heading" id="h-job-losses">JOB LOSSES</h2>



The Kenya Aviation Workers Union argues that a deal with Adani would lead to job losses and bring in non-Kenyan workers.



Kenya&#8217;s government has said the airport is operating above capacity and needs modernising but that it is not for sale. It says no decision has been made on what it calls a proposed public-private partnership to upgrade the site.



The Kenya Airports Authority, which is responsible for managing the airport, said minimal operations at Jomo Kenyatta had resumed by 7 a.m. (0400 GMT) and it was engaging with relevant parties to normalise the situation.



The strike spread to workers at regional airports in the cities of Kisumu and Mombasa, the Nation newspaper reported.



Kenya&#8217;s high court on Monday temporarily blocked the Adani proposal, in which it would build a new runway and upgrade the passenger terminal, to allow time for a judicial review.



(Reporting by Hereward Holland, Humphrey Malalo and Edwin Waita; editing by Elaine Hardcastle and Andrew Cawthorne)

VZR7ERWAWBPMBAR7E4PB4GBYGY

Protest against India’s Adani causes chaos at Kenya’s main airport

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108031541-1725948491431-gettyimages-2170168255-Illustration_Huawei_Foldable_Phone_Booking-820x461.jpeg" alt="" class="wp-image-529070" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108031541-1725948491431-gettyimages-2170168255-Illustration_Huawei_Foldable_Phone_Booking-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108031541-1725948491431-gettyimages-2170168255-Illustration_Huawei_Foldable_Phone_Booking-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108031541-1725948491431-gettyimages-2170168255-Illustration_Huawei_Foldable_Phone_Booking-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108031541-1725948491431-gettyimages-2170168255-Illustration_Huawei_Foldable_Phone_Booking-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108031541-1725948491431-gettyimages-2170168255-Illustration_Huawei_Foldable_Phone_Booking-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108031541-1725948491431-gettyimages-2170168255-Illustration_Huawei_Foldable_Phone_Booking.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration of a user browsing booking information for Huawei’s new foldable mobile phone in Suqian, Jiangsu province, China, Sept 8, 2024.  Cfoto | Future Publishing | Getty Images</figcaption></figure>



As Huawei tries to upstage Apple’s new iPhone with the launch of its own ‘trifold phone’ on Tuesday, its chip capabilities remain a weakness, despite recent breakthroughs, according to one analyst. 



Speaking to CNBC’s “Squawk Box Asia” on Tuesday, Martin Yang, senior analyst of emerging technologies at Oppenheimer &amp; Co., said Huawei’s chip remains two or three years behind the cutting edge.&nbsp;



The gap on technology for their systems-on-chip, or SoCs, that merge central processing with cellular connectivity,&nbsp;is “widening because [Huawei] still doesn’t have access to any below 7 nanometer processes,” said Yang.&nbsp;In chip manufacturing, a nanometer denotes the size of transistors on a processor.



The smaller the size of a transistor, the more can be fit on a chip, increasing its level of advancement.&nbsp;



Huawei had made a smashing breakthrough last year when it released its Mate 60 smartphone, which included an advanced 7-nanometer chip originating from China. 



The speed in which Chinese firms were able to reach this benchmark surpassed what many analysts thought possible under U.S. trade restrictions that limited China’s access to advanced semiconductor tech. 



On the back of this success, Huawei has been able to take back market share from Apple in China, the largest smartphone market in the world.&nbsp;



However, unlike with the Mate 50, Huawei has not announced a big chip breakthrough for its latest phone launch.&nbsp;&nbsp;



Meanwhile, Apple is now on its second generation of 3 nanometer processes, and are already showing a 10% to 15% performance boost on this year’s phone compared to last year’s first generation 3 nanometer process, according to Yang.&nbsp;



“I think the chip will not be a big focus area or big marketing point for Huawei’s upcoming phone this week,” Yang said.&nbsp;



Instead, the company will likely try to downplay this chip disadvantage in the coming launch week and instead try to highlight that its phone is the first trifold phone on the market, he added.&nbsp;



Huawei has been accepting preorders for the foldable phone, the Mate XT, since Sept. 7. According to its website, the phone had already received more than 3.5 million preorders as of Tuesday. 



However, the Mate 60 RS, which Huawei released last year similarly had respectable reservations numbers, but failed to transfer them to actual sales, according to Yang. 



“I wouldn’t expect real world shipments in the [3 million range],” he said.



Speaking to CNBC’s “Street Signs Asia,” on Tuesday, Navkendar Singh, of the International Data Corporation, said that while Huawei has dominated in sales of foldable smartphones, the market remains niche due to consumer concerns about price and functionality.

108031541-1725948491431-gettyimages-2170168255-Illustration_Huawei_Foldable_Phone_Booking

In Huawei’s battle against Apple, chips are still a weakness, says analyst

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA.jpg" alt="" class="wp-image-529012" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA-300x205.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA-768x525.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: An oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo</figcaption></figure>



LONDON, Sept 10 (Reuters)&nbsp;&#8211;&nbsp;OPEC on Tuesday cut its forecast for global oil demand growth in 2024 reflecting data received so far this year and also trimmed its expectation for next year, marking the producer group&#8217;s second consecutive downward revision.



The Organization of the Petroleum Exporting Countries in a monthly report said world oil demand will rise by 2.03 million barrels per day (bpd) in 2024, down from growth of 2.11 million bpd it expected last month.



There is a wider than usual split between forecasters on the strength of oil demand growth in 2024, partly due to differences over China and more broadly over the pace of the world&#8217;s transition to cleaner fuels. The reduction still leaves OPEC at the top end of industry estimates.



&#8220;Looking ahead, China&#8217;s economic growth is expected to remain well supported,&#8221; OPEC said in the report.



&#8220;However, headwinds in the real estate sector and the increasing penetration of LNG trucks and electric vehicles are likely to weigh on diesel and gasoline demand going forward.&#8221;



OPEC also cut its 2025 global demand growth estimate to 1.74 million bpd from 1.78 million bpd.



(Reporting by Alex Lawler; editing by Jason Neely)

FILE PHOTO: An oil pump jack outside Almetyevsk, Russia

OPEC again lowers 2024, 2025 global oil demand growth view

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/YCD2FHWTRZP6DDDGNUZALMARSY-scaled.jpg" alt="" class="wp-image-424765" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/YCD2FHWTRZP6DDDGNUZALMARSY-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/YCD2FHWTRZP6DDDGNUZALMARSY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/YCD2FHWTRZP6DDDGNUZALMARSY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/YCD2FHWTRZP6DDDGNUZALMARSY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/YCD2FHWTRZP6DDDGNUZALMARSY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/YCD2FHWTRZP6DDDGNUZALMARSY-1536x1025.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A small toy figure and gold imitation are seen in front of the AngloGold Ashanti logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



Sept 10 (Reuters) &#8211; AngloGold Ashanti will buy Egypt-focused smaller rival Centamin in a $2.5 billion stock and cash deal, the companies said on Tuesday, as the U.S.-listed global miner expands its operations in Africa.



Shares in Centamin jumped about 24% to 148.10 pence in early trade, their highest level since October 2020. Shares in Centamin&#8217;s London-listed peer Hochschild rose about 4%.



Under the terms of the deal, Centamin shareholders will receive 0.06983 new AngloGold shares for each Centamin share and $0.125 in cash.



The implied 163 pence ($2.14) per share offer represents a premium of 36.7% to Centamin&#8217;s Monday closing price of 120 pence, the companies said in a statement.



The acquisition coincides with a flurry of deal activity in the gold mining sector over the past couple of years, with the world&#8217;s top gold producer Newmont buying Australia&#8217;s Newcrest Mining for $16.8 billion in late 2023.



In May, miner BHP Group walked away from its $49 billion plan to take over rival Anglo American after its last-ditch request for more time was rejected by the London-listed firm, ending its six-week pursuit for now.



Following the completion of the Centamin deal, it is expected that AngloGold shareholders will own about 83.6% and Centamin shareholders about 16.4% of AngloGold Ashanti&#8217;s enlarged issued share capital.



AngloGold Ashanti said it expects the deal to be accretive to free cash flow per share in the first full year post completion of the transaction.



Terming the deal &#8220;highly compelling&#8221;, AngloGold Ashanti Chair Jochen Tilk said the acquisition offers &#8220;enormous geological potential&#8221; that the company is well placed to develop.



Centamin&#8217;s principal asset is the Sukari gold mine, which is Egypt&#8217;s largest gold mine as well as one of the world&#8217;s largest producing mines.



Adding Sukari&#8217;s annual output of 450,000 ounces would push AngloGold&#8217;s yearly production above 3 million ounces, making it the fourth largest gold producer in the world by volume, behind Newmont, Barrick Gold and Agnico Eagle.



The Centamin acquisition also expands AngloGold&#8217;s portfolio to yet another key gold producing region. It currently has assets in nine countries &#8211; Tanzania, the Democratic Republic of Congo, Ghana, Guinea, Australia, the U.S., Brazil, Argentina and Colombia.



The Centamin board said it intends to unanimously recommend the deal to its shareholders.



($1 = 0.7634 pounds)



(Reporting by Aby Jose Koilparambil in Bengaluru, additional reporting by Nelson Banya; Editing by Sonia Cheema, Miral Fahmy, Jan Harvey and David Evans)

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AngloGold Ashanti to buy Centamin in $2.5 billion deal

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