<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="528" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AXA5KIAGZVICZP4VWXIIUYZFF4-820x528.jpg" alt="" class="wp-image-528940" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AXA5KIAGZVICZP4VWXIIUYZFF4-820x528.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AXA5KIAGZVICZP4VWXIIUYZFF4-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AXA5KIAGZVICZP4VWXIIUYZFF4-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AXA5KIAGZVICZP4VWXIIUYZFF4-768x494.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AXA5KIAGZVICZP4VWXIIUYZFF4-1536x989.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AXA5KIAGZVICZP4VWXIIUYZFF4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A Kenya Airports Authority worker inspects planes during an auction after previous owners abandoned them at the Jomo Kenyatta International Airport in Nairobi, Kenya, November 17, 2021. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Sept 10 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s high court has temporarily blocked a proposed deal for India&#8217;s Adani Group to lease the country&#8217;s main airport for 30 years in exchange for expanding it, court documents showed.



In a joint application, the Law Society of Kenya (LSK), the country&#8217;s main bar association, and the Kenya Human Rights Commission (KHRC) told the court on Monday that the country could independently raise the $1.85 billion required to upgrade the airport in the capital Nairobi.



LSK and KHRC said the alleged 30-year lease of Jomo Kenyatta International Airport (JKIA), East Africa&#8217;s largest aviation hub, was unaffordable, threatened job losses, was a fiscal risk and did not offer taxpayers value for money, court documents published by the KHRC on their website showed.



The high court granted the request for leave to file a judicial review to challenge the possible lease of JKIA to Adani, LSK President Faith Odhiambo wrote on the social media platform X late on Monday.



&#8220;The court has meanwhile issued a stay prohibiting any person from implementing or acting on the privately initiated Adani proposal over JKIA pending the conclusion of the court case,&#8221; Odhiambo said.



The Adani Group did not immediately respond to a Reuters request for comment.&nbsp;A spokesperson for the Kenya Airports Authority told Reuters: &#8220;We are not going to comment on matters in court.&#8221;



Last month, the Kenya Aviation Workers Union called for a strike over the proposed deal, saying that it 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 and that no decision has been made on whether to proceed with what it calls a proposed public-private partnership to upgrade the&nbsp;site.



It said in July that Adani&#8217;s offer was being reviewed. If a deal is agreed, the government said there would be safeguards to ensure Kenya&#8217;s national interests are protected.



(Reporting by Maria Ponnezhath in Bengaluru; Editing by Sherry Jacob-Phillips, Mrigank Dhaniwala, Michael Perry and Jason Neely)

A Kenya Airports Authority worker inspects planes during an auction after previous owners abandoned them at the Jomo Kenyatta International Airport in Nairobi

Kenyan court halts proposed Adani lease of country’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/2024/09/108017785-1723066534822-GettyImages-1323542329_2-820x461.jpg" alt="" class="wp-image-528909" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108017785-1723066534822-GettyImages-1323542329_2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108017785-1723066534822-GettyImages-1323542329_2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108017785-1723066534822-GettyImages-1323542329_2-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108017785-1723066534822-GettyImages-1323542329_2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108017785-1723066534822-GettyImages-1323542329_2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108017785-1723066534822-GettyImages-1323542329_2.jpg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">oatawa | Getty</figcaption></figure>



Bitcoin jumped Monday evening and topped $57,000 after Wall Street’s rebound from its worst week of the year.



The price of the flagship cryptocurrency was last higher by 5.6% at $57,4449.00, according to Coin Metrics. Last week, bitcoin tumbled 9% for its worst weekly performance since August 2023.&nbsp;



In regular trading, Coinbase and MicroStrategy climbed 5.2% and 9.2%, respectively, on Monday. Those stocks rose as the S&amp;P 500 broke a four-day losing streak and the Nasdaq Composite gained more than 1%. The three major averages last week posted their worst weekly performance in 2024.



Bitcoin has been trading range bound for most of the year. Last week, it briefly fell below its floor of about $55,000. Analysts have warned that cryptocurrency lacks major catalysts at the moment and that in their absence, prices are likely to be sensitive to macro factors and continue to consolidate.



Seasonality is also a factor. For bitcoin, similar to other risk assets, September is a historically weak month.



“For bitcoin to experience some upside in the upcoming week, it is essential for the U.S. equity markets to find some stability or positive momentum, potentially leading to a decrease in [crypto] ETF outflows,” Bitfinex analysts said in a note Monday. “This relief in the equity markets could help alleviate selling pressure on bitcoin, providing a conducive environment for a recovery.”

108017785-1723066534822-GettyImages-1323542329_2

Bitcoin rebounds from its worst week in more than a year, jumping above $57,000

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-820x512.jpg" alt="" class="wp-image-428950" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-820x512.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-768x480.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-1536x960.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: European Union flags fly outside the EU Commission headquarters in Brussels, Belgium September 19, 2019. REUTERS/Yves Herman/File Photo</figcaption></figure>



PRETORIA, Sept 9 (Reuters)&nbsp;&#8211;&nbsp;The European Union on Monday pledged to give South Africa two grants worth about $35 million to accelerate its green hydrogen plans.



Green hydrogen projects use renewable energy to split water into hydrogen and oxygen, making fuel that can be used across industries such as transport, petrochemicals and steel.



The first EU grant, worth 140 million rand ($7.8 million), is to help struggling South African state company Transnet with infrastructure costs, supporting railways, ports, pipelines and other logistics.



The other grant, for 25 million euros ($27.6 million), will help Africa&#8217;s most industrialised economy develop its green hydrogen value chain.



Green hydrogen is seen as critical to decarbonisation efforts in South Africa and Europe.



European countries have been investing in green hydrogen projects across Africa to secure future supplies of the fuel.



&#8220;These two European Union grants will be implemented in a way so that they contribute to South Africa&#8217;s strategic objectives,&#8221; Kadri Simson, European commissioner for energy, told reporters in Pretoria, South Africa&#8217;s administrative capital.



&#8220;We think that green hydrogen provides some of the best opportunities for the country to really industrialise,&#8221; said Kgosientsho Ramokgopa, South Africa&#8217;s minister of energy and electricity.



($1 = 17.8837 rand)



($1 = 0.9060 euros)



(Reporting by Nellie Peyton; Writing by Tannur Anders; Editing by Alexander Winning)

FILE PHOTO: European Union flags fly outside the EU Commission headquarters in Brussels

EU gives South Africa $35 mln in grants for green hydrogen plans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108024800-1724414538815-gettyimages-2164056363-5ah02161-820x461.jpeg" alt="" class="wp-image-528645" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108024800-1724414538815-gettyimages-2164056363-5ah02161-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108024800-1724414538815-gettyimages-2164056363-5ah02161-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108024800-1724414538815-gettyimages-2164056363-5ah02161-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108024800-1724414538815-gettyimages-2164056363-5ah02161-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108024800-1724414538815-gettyimages-2164056363-5ah02161-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108024800-1724414538815-gettyimages-2164056363-5ah02161.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Federal Reserve Chairman Jerome Powell. Andrew Harnik | Getty Images</figcaption></figure>



The U.S. Federal Reserve can afford to make a jumbo 50 basis points rate cut next week without spooking markets, an analyst has suggested, as opinion on the central bank’s forthcoming meeting remains hotly divided.



Michael Yoshikami, CEO of Destination Wealth Management, said Monday that a deeper cut would demonstrate that the central bank is ready to act without signalling deeper concerns of a broader downturn.



“I would not be surprised if they jumped all the way to 50 basis points,” Yoshikami told CNBC’s “Squawk Box Europe.”



“That would be considered, on one hand, a very positive sign the Fed is doing what is needed to support jobs growth,” he continued. “I think the Fed at this point is ready to get out ahead of this.”



His comment follow similar remarks Friday from Nobel Prize-winning economist Joseph Stiglitz, who said the Fed should deliver a half-point interest rate cut at its next meeting, arguing that it went “too far, too fast” with its previous policy tightening.



Policymakers are widely expected to lower rates when they meet on Sept. 17-18, but the extent of the move remains unclear. A disappointing jobs print on Friday stoked fears of a slowing labor market and briefly tipped market expectations toward a larger cut, before shifting back.



Traders are now pricing in around a 75% chance of a 25 bps rate cut in September, while 25% are pricing in a 50 bps rate reduction, according to the CME Group’s FedWatch Tool. A basis point is 0.01 percentage point.



Yoshikami acknowledged that a larger cut could reinforce fears that a “recessionary ball” is coming, but he insisted that such views were overblown, noting that both unemployment and interest rates remain low by historic levels and company earnings have been strong.



He said the recent market sell-off, which saw the S&amp;P 500 notch its worst week since March 2023, was based on “massive profits” accrued last month. August saw all the major indices post gains despite a volatile start to the month, while September is traditionally a weaker trading period.



Thanos Papasavvas, founder and chief investment officer of ABP Invest, also acknowledged a “rise in concern” around a potential economic downturn.



The research firm recently adjusted its probability of a U.S. recession to a “relatively contained” 30% from a “mild” 25% in June. However, Papasavvas said that the underlying components of the economy — manufacturing and unemployment rates — were “still resilient.”



“We’re not particularly concerned that we’re heading into a U.S. recession,” Papasavvas told CNBC Monday.



The perspectives stand in stark contrast to other market watchers, such as economist George Lagarias, who told CNBC last week that a bumper rate cut could be “very dangerous.”



“I don’t see the urgency for the 50 [basis point] cut,” Forvis Mazars’ chief economist told CNBC’s “Squawk Box.”



“The 50 [basis point] cut might send a wrong message to markets and the economy. It might send a message of urgency and, you know, that could be a self-fulfilling prophecy,” Lagarias added.

108024800-1724414538815-gettyimages-2164056363-5ah02161

Jumbo 50 basis points Fed rate cut should not raise alarm, analyst says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="481" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BUXLYABONJPIFOV4PL2HM4W7WQ-820x481.jpg" alt="" class="wp-image-528628" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BUXLYABONJPIFOV4PL2HM4W7WQ-820x481.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BUXLYABONJPIFOV4PL2HM4W7WQ-300x176.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BUXLYABONJPIFOV4PL2HM4W7WQ-153x90.jpg 153w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BUXLYABONJPIFOV4PL2HM4W7WQ-768x451.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BUXLYABONJPIFOV4PL2HM4W7WQ-1536x901.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BUXLYABONJPIFOV4PL2HM4W7WQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People are seen at the entrance of the Sun International&#8217;s Times Square Casino in South Africa&#8217;s administrative capital Pretoria, June 29, 2020. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Sept 9(Reuters)&nbsp;&#8211;&nbsp;Sun International&nbsp;SUIJ.J&nbsp;reported a 9.1% rise in first-half earnings on Monday, as record growth&nbsp;in&nbsp;the South African casino and hotel group&#8217;s betting business helped drive its income.



The owner of the Sun City resort and Maslow Sandton and Table Bay high-end hotels said adjusted headline earnings per share &#8211; its main profit measure &#8211; rose to 2.15 rand ($0.1201) in the six months to June 30, from 1.97 rand a year earlier.



Shares were trading 3.35% higher at 1014 GMT on the results.



Sunbet was the stand-out with a 71.8% rise in income to 512 million rand. Sun International, which achieved mixed results across its segments, said in a statement its urban casino income &#8211; its biggest revenue generator &#8211; was flat at 3.3 billion rand.



&#8220;The gaming industry is experiencing dynamic changes and Sun International, through Sunbet, will continue leveraging its strong brand and market presence to expand our customer base and enter new online markets across Africa,&#8221; Sun International said.



The group said expected interest rate cuts would lift its business outlook and create a more favourable operating environment in the medium to long term.



It declared an interim dividend of 1.61 rand per share.



($1 = 17.9079 rand)



(Reporting by Sfundo Parakozov; Editing by David Goodman and Alexander Smith)

People are seen at the entrance of the Sun International’s Times Square Casino ahead of its opening, in Pretoria

Sun City owner’s profit jumps on big betting gains

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-820x547.jpg" alt="" class="wp-image-510612" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of Kenya William Ruto during the United Nations Climate Change Conference COP28 High Level Segment meeting in Dubai, United Arab Emirates on December 1, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)</figcaption></figure>



NAIROBI, Sept 9 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s finance ministry will seek suggestions from the public on new legislation to boost revenue and tackle other challenges, Finance Minister John Mbadi said on Monday, after protesters forced the government to withdraw its financing law.



President William Ruto discarded tax hikes worth more than 346 billion shillings ($2.7 bln) in June after protests that killed more than 50 people.



The move left the heavily indebted government with a bigger budget deficit for this financial year, mounting pending bills, and a delay in funding from the International Monetary Fund.



&#8220;We are barely managing. This is not where we wanted to be, but we are here,&#8221; Mbadi told a budget preparation meeting. He was appointed from the opposition last month as Ruto sought to stabilise his government.



The minister initially said he would revive some tax hikes in the abandoned finance bill, before rowing back after a public outcry and threat of more protests.



&#8220;I will be issuing a circular tomorrow, inviting the public&#8217;s participation to submit proposals on some legislative reforms to improve our current economic situation,&#8221; he said.



Kenyans will have until Sept. 20 to submit views.



Mbadi said the country had no choice but to keep servicing its debt, which stands at above the optimum level recommended by the World Bank and the International Monetary Fund, after years&nbsp;of borrowing driven by&nbsp;infrastructure construction.



&#8220;We have no two ways about it. There is no debt restructuring in this country. We will not accept it. We will not do it. We will manage our debts and pay and remain afloat,&#8221; he said.



Once the situation improves, the government will consider tax cuts in the medium term, Mbadi said, including reducing the value added tax on goods and services to 14% from 16%, and slashing the corporate income tax by 500 basis points to 25%.



($1 = 128.2500 Kenyan shillings)



(Reporting by Duncan Miriri; editing by George Obulutsa and Andrew Cawthorne)

COP28 In Dubai High Level Segment

Kenya asks public for help with economic fix laws after protests

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030594-1725652477107-gettyimages-2170574271-bb2_4502_cdgy76wl-820x461.jpeg" alt="" class="wp-image-528528" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030594-1725652477107-gettyimages-2170574271-bb2_4502_cdgy76wl-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030594-1725652477107-gettyimages-2170574271-bb2_4502_cdgy76wl-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030594-1725652477107-gettyimages-2170574271-bb2_4502_cdgy76wl-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030594-1725652477107-gettyimages-2170574271-bb2_4502_cdgy76wl-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030594-1725652477107-gettyimages-2170574271-bb2_4502_cdgy76wl-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030594-1725652477107-gettyimages-2170574271-bb2_4502_cdgy76wl.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. Secretary of the Treasury Janet Yellen speaks listens to a presentation during a tour at the IRS Processing Facility on September 06, 2024 in Austin, Texas.  Brandon Bell | Getty Images</figcaption></figure>



Treasury Secretary&nbsp;Janet Yellen&nbsp;sought to reassure the public on Saturday that the U.S. economy remains strong, despite a string of weak job reports that have rattled investors and weighed on the stock market. “We’re seeing less frenzy in terms of hiring and job openings, but we’re not seeing meaningful layoffs,” Yellen said at the&nbsp;Texas Tribune Festival&nbsp;in Austin. “I’m attentive to downside risk now on the employment side, but what I think we’re seeing, and hope we will continue to see, is a good, solid economy.”



Yellen said job growth has slowed compared to the “hiring frenzy” when the U.S. reopened after the Covid-19 pandemic, but the economy is “deep into a recovery” and “basically operating at full employment.”



The treasury secretary’s comments come a day after the&nbsp;Bureau of Labor Statistics&nbsp;reported another month of cooler-than-expected jobs data.



Nonfarm payrolls, a measure of U.S. job creation, increased by 142,000 in August, lower than the Dow Jones forecast of 161,000. The miss renewed worries about a slowing labor market, with the S&amp;P 500 falling Friday to finish out the&nbsp;worst week since March 2023.



The unemployment rate, however, edged lower to 4.2% and job growth in August was higher than July. The stock market&nbsp;sold off steeply early last month, after the weak July report touched off renewed fears of a recession in the U.S.



Yellen on Saturday tried to calm jitters about the state of the economy: “I don’t see red lights flashing.”



The jobs data has raised worries about whether the Federal Reserve can clinch a so-called “soft landing,” raising interest rates to bring inflation under control and then executing cuts before the economy enters a recession. The Fed is widely expected to lower interest rates this month.



Yellen said the U.S. is on that path: “It really has been amazing to be able to get inflation down as meaningfully as we have. This is what most people would call the soft landing,” she said.

108030594-1725652477107-gettyimages-2170574271-bb2_4502_cdgy76wl

Yellen says U.S. economy remains solid, on path to ‘soft landing’ with no meaningful layoffs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030350-1725631014939-Untitled-1-820x462.webp" alt="" class="wp-image-527832" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030350-1725631014939-Untitled-1-820x462.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030350-1725631014939-Untitled-1-300x169.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030350-1725631014939-Untitled-1-160x90.webp 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030350-1725631014939-Untitled-1-768x432.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030350-1725631014939-Untitled-1.webp 1480w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Combination showing Elon Musk (L), Gautam Adani (C), and Jensen Huang (R) | Reuters
</figcaption></figure>



A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer.&nbsp;<a href="https://www.cnbc.com/inside-wealth-newsletter/">Sign up</a>&nbsp;to receive future editions, straight to your inbox.



On Sept. 29, 1916, newspapers across the country announced a wealth milestone once thought to be unreachable: the world’s first billionaire.



“Standard (Oil) at $2,014 makes its head a billionaire,” blared The New York Times headline, adding that Standard Oil’s soaring share price “makes John D. Rockefeller, founder and largest shareholder, almost certainly a billionaire.”



More than a century after the first U.S. billionaire (in measurable dollar terms), the question of who will be first to reach the trillionaire mark continues to fascinate. At least a half-dozen companies have done it, most recently&nbsp;<a href="https://www.cnbc.com/quotes/BRK.B/">Berkshire Hathaway</a>, which&nbsp;<a href="https://link.cnbc.com/click/36628680.16541/aHR0cHM6Ly93d3cuY25iYy5jb20vMjAyNC8wOC8yOC9idWZmZXR0cy1iZXJrc2hpcmUtaGF0aGF3YXktaGl0cy0xLXRyaWxsaW9uLW1hcmtldC12YWx1ZS1maXJzdC11cy1jb21wYW55LW91dHNpZGUtb2YtdGVjaC10by1kby1zby5odG1sP19fc291cmNlPW5ld3NsZXR0ZXIlN0NpbnNpZGV3ZWFsdGglN0MyMDI0MDkwNQ/5b69019824c17c709e62ad3cBf363f153" target="_blank" rel="noreferrer noopener">topped $1 trillion</a>&nbsp;just before&nbsp;<a href="https://www.cnbc.com/warren-buffett/">Warren Buffett</a>’s&nbsp;<a href="https://link.cnbc.com/click/36628680.16541/aHR0cHM6Ly93d3cuY25iYy5jb20vMjAyNC8wOC8zMC93YXJyZW4tYnVmZmV0dC1sZWFkcy1iZXJrc2hpcmUtaGF0aGF3YXktdG8tbmV3LWhlaWdodHMtYXQtYWdlLTk0Lmh0bWw_X19zb3VyY2U9bmV3c2xldHRlciU3Q2luc2lkZXdlYWx0aCU3QzIwMjQwOTA1/5b69019824c17c709e62ad3cB7aa032b6" target="_blank" rel="noreferrer noopener">94th birthday</a>.&nbsp;<a href="https://www.cnbc.com/quotes/NVDA/">Nvidia</a>&nbsp;is now at $2.6 trillion, having hit the 13-figure club last year.



And what about individuals? According to a new report from&nbsp;<a href="https://informaconnect.com/academy/companies-entering-trillion-dollar-club-in-2024/" target="_blank" rel="noreferrer noopener">Informa Connect Academy</a>, which predicts trillionaire status based on average annual growth rate in wealth,&nbsp;<a href="https://www.cnbc.com/quotes/TSLA/">Tesla</a>&nbsp;CEO&nbsp;<a href="https://www.cnbc.com/elon-musk/">Elon Musk</a>&nbsp;will likely be the first trillionaire.



Musk is currently the world’s richest person, with $251 billion, according to the&nbsp;<a href="https://www.bloomberg.com/billionaires/" target="_blank" rel="noreferrer noopener">Bloomberg Billionaires Index</a>. Connect Academy forecasts Musk will become a trillionaire sometime in 2027, assuming that his wealth continues to grow at an annual average rate of 110%.



The second to reach trillionaire status, according to the report, will be India’s Gautam Adani, founder of the Adani Group conglomerate. If Adani maintains his recent annual growth rate of 123%, the report says he will be a trillionaire in 2028.



Jensen Huang, CEO of Nvidia, who has seen his&nbsp;<a href="https://www.cnbc.com/2024/05/24/nvidia-ceo-jensen-huangs-net-worth-swells-by-87-billion-in-5-years.html">wealth skyrocket</a>&nbsp;from $3 billion to more than $90 billion in five years, would become a trillionaire by 2028, according to the report. His wealth would have to continue growing at an average annual rate of 112%. Nvidia’s stock is already up about 115% this year, after more than tripling last year.



Fourth on the list is Indonesia’s Prajogo Pangestu, founder of the Indonesian energy and mining conglomerate Barito Pacific. The report predicts Pangestu could reach trillionaire status by 2028.



Rounding out the top five would be&nbsp;<a href="https://www.cnbc.com/quotes/MC-FR/">LVMH</a>&nbsp;CEO Bernard Arnault, who is currently the world’s third-richest person, with just under $200 billion. The report has the luxury king becoming a trillionaire sometime in 2030, along with&nbsp;<a href="https://www.cnbc.com/quotes/META/">Meta</a>&nbsp;CEO&nbsp;<a href="https://www.cnbc.com/mark-zuckerberg/">Mark Zuckerberg</a>.



Some top billionaires who seem like strong candidates to quickly reach the four-comma club don’t make the top 10. Jeff Bezos, currently the world’s second-richest person, with $200 billion, according to Bloomberg, is listed at No. 12, and wouldn’t become a trillionaire until 2036. Larry Page and Sergey Brin, the&nbsp;<a href="https://www.cnbc.com/quotes/GOOG/">Google</a>&nbsp;founders, are also slated to wait 12 years to become trillionaires — although artificial intelligence may accelerate their rise.



Granted, wealth-watchers have been predicting the first trillionaire for years. And the stocks of Tesla, Nvidia and LVMH may not go up as fast in the next five years as they did in the past five.



Yet more than 100 years after the first billionaire, the first trillionaire could well be crowned in the next decade.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="687" height="497" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/image.png" alt="" class="wp-image-527834" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/image.png 687w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/image-300x217.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/image-124x90.png 124w" sizes="auto, (max-width: 687px) 100vw, 687px" /></figure>



<iframe title="Top 10 people most likely to become trillionaires" aria-label="Table" id="datawrapper-chart-t9WKd" src="https://datawrapper.dwcdn.net/t9WKd/1/" scrolling="no" frameborder="0" style="width: 0px; border: none; min-width: 100% !important; height: 452px;" height="475" data-external="1"></iframe>

Combination showing Elon Musk (L), Gautam Adani (C), and Jensen Huang (R)

Top 10 people most likely to reach trillionaire status

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="544" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1146813154-820x544.jpg" alt="" class="wp-image-527542" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1146813154-820x544.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1146813154-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1146813154-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1146813154-768x510.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1146813154-1536x1020.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1146813154-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ralph Mupita, chief executive officer of MTN Group Ltd., poses for a photograph following an interview in London, U.K., on Wednesday, May 29, 2019. Asked in a Bloomberg Television interview whether the U.S. government has put pressure on MTN Group to stop using Huawei as a supplier, Chief Executive Officer Rob Shuter said: &#8220;Not at all.&#8221; Photographer: Chris Ratcliffe/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Sept 6 (Reuters) &#8211; The board of Africa&#8217;s biggest mobile network operator MTN Group said on Friday it was in full support of its group CEO Ralph Mupita after an independent report found no evidence to support anonymous allegations of improper conduct against him.



South Africa&#8217;s Sunday Times newspaper reported on Sunday that a number of group executives it did not identify had threatened to quit after complaining Mupita had allegedly showed favouritism to a female executive and lacked accountability.



The board held a special meeting on Wednesday to deliberate on a report by an independent law firm tasked to verify allegations contained in an anonymous complaint against members of the MTN executive, the operator said in a statement on Friday.



&#8220;The independent report stated that attempts to engage with the complainant were unsuccessful and found that there was no evidence of improper conduct by those cited in the complaint,&#8221; the company said.



&#8220;In its deliberations, the board accepted the report finding and is of the view that the matter has been addressed and is now closed.&#8221;



The board further expressed &#8220;its full support&#8221; for Mupita and the MTN strategy, the company added.



Mupita is leading the Johannesburg-based mobile operator at a time when it is grappling with currency devaluations in its biggest market Nigeria, leading to a half-year loss before tax of 9 billion rand ($508 million).



Under the operator&#8217;s Ambition 2025 strategy, Mupita has also made a big bet on financial services, fibre and data as these services enjoy growing demand from data-hungry consumers and businesses.



($1 = 17.7132 rand)



(Reporting by Nqobile Dludla; Editing by Jan Harvey)

MTN Group Ltd. CEO Rob Shuter Interview

MTN board says it is in full support of CEO Mupita after allegations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108029570-1725536037667-gettyimages-122313864-66061432-820x461.jpeg" alt="" class="wp-image-527510" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108029570-1725536037667-gettyimages-122313864-66061432-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108029570-1725536037667-gettyimages-122313864-66061432-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108029570-1725536037667-gettyimages-122313864-66061432-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108029570-1725536037667-gettyimages-122313864-66061432-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108029570-1725536037667-gettyimages-122313864-66061432-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108029570-1725536037667-gettyimages-122313864-66061432.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Lion King directors Roger Allers (L) and Rob Minkoff. Kevin Winter | Getty Images</figcaption></figure>



Artificial intelligence is a “Wild West” with “very few rules” — but it has the potential to democratize the film industry in the long term, according to the director of “The Lion King.”



Rob Minkoff, who co-directed the classic 1994 animated Disney film with Roger Allers, told CNBC in an interview that AI has the potential to “democratize” filmmaking in such a way that it’ll become less costly to produce and direct motion pictures by slashing the amount of expensive equipment involved. 



“I think what AI will do is potentially democratize the process of making content, because if literally anyone is given these incredibly powerful tools, then what we should see is truly an explosion of content, an explosion of new voices,” Minkoff, 62, told CNBC.&nbsp;



Minkoff was speaking with CNBC ahead of the Reply AI Film Festival. The event, held by Italian tech firm Reply during the Venice International Film Festival, is a competition that awards filmmakers using AI to develop short films. Minkoff is a judge on the panel that decides the winners.&nbsp;



<h2 class="wp-block-heading" id="h-hyperbole-versus-legitimate-concerns"><a></a>‘Hyperbole’ versus ‘legitimate concerns’</h2>



The arrival of new technology has for decades been a fear among people working in the film industry, Minkoff noted. For example, when computer animation arrived in the 1990s, there were similar fears about the impact it would have on jobs.



“When computer animation came along, there were a lot of people that were very afraid about it — what it would mean, how it would impact people’s jobs,” Minkoff, who also directed 1999′s “Stuart Little” and 2003′s “The Haunted Mansion,” told CNBC.&nbsp;



“What became very apparent early on was that, if people wanted to maintain their own personal relevancy in the industry, it became very important for them to really learn and adapt to changes in technology,” he added. “We’re experiencing something quite similar now with AI.”&nbsp;



Minkoff recalls the use of computers to create the famous stampede scene in “The Lion King.” In the scene, dozens of wildebeests are seen rushing after Simba, the movie’s protagonist.&nbsp;



In that scene, Minkoff recalls, “we could have 1000s of wildebeests rendered, but the technique that we used made it look very seamless with the rest of the drawn animation.”&nbsp;



“People are naturally and understandably worried when they look at what AI can do,” Minkoff said. However, he added, he doesn’t think the technology can replace all filmmakers, and that there’s a lot of “hyperbole” at the moment surrounding AI’s capabilities.



Still, Minkoff said, there are concerns about the application of AI in film that are warranted, such as those relating to copyright and the use of intellectual property in entertainment for training AI models.



“I hope that technology ultimately&nbsp;will save us, in some regards, or make life better, easier or more more prosperous,” Minkoff told CNBC. “But it’s the Wild West, where it seems like anything is possible and anything can be done.”&nbsp;



&nbsp;Minkoff added that there are “legitimate concerns” with AI when it comes to issues like the protection of media IP and tackling copyright theft. “I understand why people might want to slow it down or put guardrails on it to be careful, to be safe,” he said.&nbsp;



But ultimately, he doesn’t think the AI positive momentum will slow. “My impression is that it probably&nbsp;won’t be slowed down, because these decisions are left to judges and courtrooms to decide what’s right and wrong,” Minkoff said.



On the copyright question, he suggested the creation of a dedicated body designed to protect filmmakers’ intellectual property and remunerate them, like what the American Society for Composers, Authors and Publishers and Broadcast Music, Inc. do for the music industry.&nbsp;



<h2 class="wp-block-heading"><a></a>‘Always the human behind the technology’</h2>



The Reply AI Film Festival, which awarded three winners this week, started out as an internal competition among employees, with staff using AI tools to produce movie-quality videos, Filippo Rizzante, chief technology officer of Reply, told CNBC.



“There has been a lot of progress with technology for producing creative work,” Rizzante said in an interview last week. “This is impacting a lot the quantity and quality of what we are producing as humanity.”&nbsp;



Rizzante pushed back on fears that AI will displace people working in entertainment. The technology, he said, “will completely change how the industry is delivering content today, but not necessarily change the number of people employed in the movie industry.”&nbsp;



In this year’s edition of the festival, one of the runners-up, “Gia Pham,” depicts a woman looking at a takeout menu before being transported to a colorful picturesque 2D world. The narrator of the video, who begins by speaking in English, starts talking in Japanese after the shift from 3D to 2D.&nbsp;



Alexander de Lukowicz, co-director of “Gia Pham,” told CNBC that humans are essential to how he and his team work to generate short films. AI tools such as DALL-E and Midjourney, he said, helped the directors of his short film “enhance worlds we weren’t able to generate before.”&nbsp;



“It’s always the human behind the technology that has to guide the technology to gain the proper result out of it. We wanted to produce something like a film to really check the boundaries of what’s possible,” de Lukowicz told CNBC.&nbsp;

108029570-1725536037667-gettyimages-122313864-66061432

Director of Disney’s Lion King says AI is a ‘West West,’ echoes how animation changed film

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-820x550.jpg" alt="" class="wp-image-527482" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-1536x1030.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People gather as volunteers search to retrieve the bodies of residents killed by a landslide due to heavy rainfall in a landfill known as Kiteezi that serves as garbage dumping site, in the Lusanja village, outside Kampala, Uganda August 10, 2024. REUTERS/Abubaker Lubowa//File Photo</figcaption></figure>



KAMPALA, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;The World Bank and French Development Agency (AFD) have given Uganda more than $600 million to fund infrastructure development and manage waste in the capital Kampala, the government and World Bank said on Thursday.



Ugandans have complained about waste management and the poor state of the roads in Kampala, which suffers chronic underfunding from the central government.



Last month a garbage landslide at a landfill site on Kampala&#8217;s outskirts buried houses as residents slept, killing at least 35 people.



A total of $566 million worth in funding, much of it credit, will come from the World Bank, and $42.7 million will be provided by ADF, the statements said.



&#8220;Rapid urban expansion has exposed significant gaps in infrastructure&#8221; the World Bank said.



Last year, the World Bank said it would stop lending to Uganda after the east African country passed a harsh anti-gay law.



In an emailed response to a Reuters&#8217; query the World Bank said the ban was still in effect but that the latest credit extended to Uganda was approved before the ban.



(Reporting by Elias Biryabarema; Editing by Hereward Holland and Barbara Lewis)

FILE PHOTO: Aftermath of a landslide due to heavy rainfall, in Kampala

World Bank, French Development Agency give Uganda aid of over $600 mln

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-820x461.jpeg" alt="" class="wp-image-527463" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Wall Street is gearing up for one of the most important economic releases of the year Friday, when the Labor Department puts out a jobs report expected to go a long way in determining the future of Federal Reserve policy.



The Wall Street consensus is for nonfarm payrolls growth of 161,000 for August and a slight decline in the unemployment rate to 4.2%, according to Dow Jones.



However, recent data, including a massive downward revision to previous counts, has pointed to a sharp slowdown in hiring and has put some downside risk to that forecast.



In turn, markets are certain the Fed will start lowering interest rates in a couple weeks, with the possibility of a jumbo cut depending on what Friday’s report shows.



“The labor market has cooled faster than we originally had been told, so that’s what’s calling [Friday’s report] into question,” said Giacomo Santangelo, economist at job search site Monster. “What the Fed is going to do in response, how are they going to adjust rates, that’s why we are having this conversation.”



While job growth has been tailing off through much of 2024, the deceleration hit home for the market with a July report that showed payroll growth of just 114,000. That wasn’t even the lowest number of the year, but it followed a Fed meeting that stirred up sentiment the central bank was being too complacent about a weakening economy and might hold interest rates high for too long.



What has followed has been a series of reports indicating that while the economy is still on its feet, hiring is decelerating, the manufacturing sector is fading further into contraction, and it’s time for the Fed to start cutting before it risks overdoing its inflation fight and dragging the economy into recession.



The latest bad news came Thursday when payrolls processing firm ADP put August private job growth at just 99,000, the smallest gain since January 2021.



<h2 class="wp-block-heading" id="h-contemplating-the-fed-s-next-move"><a></a>Contemplating the Fed’s next move</h2>



“If they’re too aggressive for too long a period of time, without easing on monetary policy, this could lead to the giant ‘R’ and we don’t even want to say the word,” Santangelo said, referring to “recession.” “If God forbid this does lead to an economic downturn, all fingers are going to point toward the Fed.”



Markets consequently are expecting the Fed to lower benchmark rates by at least a quarter percentage point when its next meeting concludes Sept. 18, with the possibility rising of a half-point reduction. The Fed hasn’t reduced its benchmark rate by half a point since the emergency cuts during the early Covid days.



Traders are pricing in a succession of cuts that would shave about 2.25 percentage points off the fed funds rate through 2025, futures contracts show. The benchmark overnight borrowing rate is currently targeted in a range between 5.25%-5.5%.



Such an aggressive easing posture would indicate not merely an effort to normalize rates from their 23-year high but also reflect a deeper economic pullback. In the more immediate term, though, the move lower would be targeted more at a labor market still feeling aftershocks from the Covid pandemic.



Monster job search data is still heavily tilted toward health care-related positions, which have flourished in the current era, while the most common search terms are “work from home,” “part time” and “remote,” reflecting the move to a hybrid environment.



Santangelo said there also is still a substantial skills gap in the labor market, despite a sharp narrowing in the gulf between open jobs and available workers, which has contracted to about 1.1 to 1 from 2 to 1 a couple years ago.



“The jobs that are being created are not necessarily suited for the people who are getting laid off. We still have a huge skills gap. The easiest place to see that is health care,” he said. “The No.1 thing that job seekers are looking for is more flexibility. There’s that kind of gap between employers and job seekers also.”



<h2 class="wp-block-heading"><a></a>Worries from job seekers</h2>



Workers in turn are getting more pessimistic about the state of play in the labor market.



The Zeta Economic Index, which uses artificial intelligence to track various economic metrics, is showing that concerns about jobs are accelerating — even though the broader economy is still performing well.



A measure of job market sentiment fell 1% in August and is down 4.6% from a year ago, Zeta figures show. The gauge’s “new mover index” dropped 9.9% on the month, reflecting worries over job stability.



“Despite a resilient economy &#8230; job market concerns persist. The job sentiment dip, paired with the mixed bag of consumer behavior, signals an ongoing caution in the workforce,” said David Steinberg, co-founder and chairman of Zeta Global, which compiles the index. “As the economy shows signs of a ‘soft landing,’ the persistent caution regarding job stability continues to temper broader economic optimism.”



The Zeta data mirrors a recent Conference Board survey, which reflected a sharp narrowing of the gap between respondents saying jobs were easy to find as opposed to hard to get.



Markets also will be watching the wage component of Friday’s report, though that has become less of an issue lately as inflation has moderated.



The consensus is for average hourly earnings to post a 0.3% increase on the month and a 3.7% year-over-year move, both 0.1 percentage point higher than July.

108030079-1725572625010-gettyimages-2165961347-US_JOBS

Friday’s jobs report for August is going to be huge. Here’s what to expect

<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/MQSXKM664RNJTKI3VB6WEU7UEM-1-820x429.jpg" alt="" class="wp-image-527231" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s President Cyril Ramaphosa arrives at the Beijing Capital International Airport, ahead of the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing, China September 2, 2024. REUTERS/Tingshu Wang/Pool</figcaption></figure>



BEIJING, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa said on Thursday that he did not believe Chinese investments in Africa were pushing the continent into a &#8220;debt trap&#8221; but were instead part of a mutually beneficial relationship.



Ramaphosa made the remarks on the sidelines of a China-Africa summit in Beijing, where delegates from more than 50 African nations gathered this week.



&#8220;I don&#8217;t necessarily buy the notion that when China (invests), it is with an intention of &#8230; ensuring that those countries end up in a debt trap or in a debt crisis,&#8221; Ramaphosa said, when asked by reporters about China&#8217;s pledge at the summit of $51 billion in new funding for Africa.



Without providing details, Ramaphosa also said South Africa had reached agreement with China on aspects of its energy security.



Africa&#8217;s most industrialised economy has been plagued for years by rolling power blackouts that have constrained economic growth.



(Reporting by Joe Cash; Writing by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning)

MQSXKM664RNJTKI3VB6WEU7UEM (1)

South African president: China not pushing Africa into ‘debt trap’

<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/S7AF7BNBK5OYLGLCXAI33SOPYA-820x548.jpg" alt="" class="wp-image-527198" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA.jpg 1616w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC), Simon Stiell, talks to the press on the sidelines of the Copenhagen Climate Ministerial, in Helsingor, Denmark March 21, 2024. REUTERS/Ali Withers/File Photo</figcaption></figure>



NAIROBI, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;The impact of global warming is costing African nations up to 5% of their economic output, the United Nations climate chief said on Thursday, calling for more investments to help adapt to climate change.



The 54-nation continent, which has borne the brunt of climate change despite releasing far less polluting emissions than the industrialised world, receives just 1% of annual global climate finance.



&#8220;The climate crisis is an economic sinkhole, sucking the momentum out of economic growth,&#8221; Simon Stiell, executive secretary of the U.N. Framework Convention on Climate Change (UNFCCC), told a meeting of African ministers of environment in Abidjan, Ivory Coast.



African governments and their climate negotiators are considering various strategies at the pre-COP29, or Conference of the Parties, preparatory meeting in the West African country.



Although the continent has attracted new investors in climate mitigation and adaptation projects in recent years, it gets a very small portion of the $100 billion in financing available globally, African government officials say.



That is a drop in the ocean of the $1.3 trillion required, the officials say, without providing a time frame for by when the amount would be needed.



&#8220;Africa&#8217;s vast potential to drive forward climate solutions is being thwarted by an epidemic of underinvestment,&#8221; Stiell said.



The required investments include $4 billion annually to eliminate the use of traditional fuel for cooking on the continent, such as wood, which contributes to greenhouse gas emissions, Stiell said.



&#8220;Of the more than $400 billion spent on clean energy last year, only $2.6 billion went to African nations,&#8221; he said.



Climate change has been blamed for protracted drought and bouts of catastrophic flooding across Africa that have hit food production, driving up commodity prices and worsening hunger.



Stiell said there have been growing calls for Africa to secure more climate financing in the run-up to COP29 in Baku, where nations will be looking for consensus on new international climate finance goals.



&#8220;We must use innovative financing solutions for adaptation without exacerbating debt burdens,&#8221; Hanan Morsy, chief economist at the United Nations Economic Commission for Africa (UNECA), told a climate finance conference last week.



Such innovations include debt refinancing and swaps as well as&nbsp;carbon markets, she said.



(Reporting by Duncan Miriri; editing by Mark Heinrich)

Climate ministers meet in Denmark ahead of COP29

Climate change costs Africa up to 5% of GDP, UN climate head says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-820x547.jpg" alt="" class="wp-image-527159" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the Pretoria skyline with smog in the air taken from the Union Buildings in Pretoria, South Africa, June 19, 2024. PHILL MAGAKOE/Pool via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s current account deficit narrowed in the second quarter, to 0.9% of gross domestic product (GDP) from 1.5% of GDP in the first quarter, central bank data showed on Thursday.



In rand terms the current account deficit narrowed to 64.6 billion rand ($3.62 billion) in April-June, from 106.9 billion rand in the previous three-month period.



The trade surplus widened further to 187.4 billion rand in the second quarter from 165.8 billion rand in the first quarter.



&#8220;The increase in the value of exports of goods and services in the second quarter of 2024 reflected higher prices while the increase in imports of goods and services reflected both higher volumes and prices,&#8221; the South African Reserve Bank said in a statement.



South Africa&#8217;s economy grew 0.4% in the second quarter, statistics agency data showed on Tuesday, supported by higher consumer spending and power availability, but output declines in agriculture, mining and transport meant growth was slightly weaker than expected.



($1 = 17.8493 rand)



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

Inauguration of South Africa’s Cyril Ramaphosa as President at the Union Buildings, in Pretoria

South Africa’s current account deficit narrows again in second quarter

<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/KIHNVAE5M5NLLFD5WGKGLZZIDA-820x536.jpg" alt="" class="wp-image-527142" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The sun is reflected on railway tracks during sunrise in Harare, Zimbabwe, August 4, 2018. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



HARARE, Sept 5 (Reuters) &#8211; Zimbabwe&#8217;s state-owned railway operator has opened its network up to private players, including a unit of South Africa&#8217;s Grindrod, as it seeks to boost freight volumes that had collapsed after decades of underinvestment, an official said.



National Railways of Zimbabwe hauled 12 million tons of cargo annually at its 1990s peak, but now manages less than 3 million tons owing to a lack of locomotives and poor maintenance of its rail infrastructure.



The collapse also followed a sharp decline in agricultural and mineral output, triggered by the violent seizure of white-owned farms championed by Zimbabwe&#8217;s former leader Robert Mugabe in 2000.



However, mineral output is on the rebound, mainly driven by chrome and lithium demand from China.



Chinese companies such as Tsingshan Holdings, Sinosteel, Sinomine 002738.SZ, Zhejiang Huayou Cobalt 603799.SS and Chengxin Lithium 002240.SZ have in recent years established iron ore, steel, chrome and lithium operations in Zimbabwe.



They export the minerals to China through Mozambique&#8217;s ports, and the growing commodity export volumes exceed the NRZ&#8217;s current capacity. The state-owned group is now looking to restore its capacity with the aid of private companies.



&#8220;Last year we uplifted 2.8 million tons against available business of 3 million tons,&#8221; NRZ spokesperson Andrew Kunambura told Reuters in an interview on Wednesday.



&#8220;So these private companies are coming in with their locomotives and wagons to augment what we have.&#8221;



Grindrod, through its Zimbabwean subsidiary Beitbridge Bulawayo Railway, has deployed three locomotives and 150 wagons since March as part of the arrangement.



The South African logistics company is positioning itself for freight rail partnerships in southern Africa as under-funded state-owned operators open up their creaking networks to private investors.



The mineral-rich region holds some of the world&#8217;s biggest deposits of copper and lithium, needed for cleaner energy, and is seeing growth in new mining projects which require expanded rail capacity.



Grindrod has restructured its rail business to take advantage of emerging market opportunities in the region, CEO Xolani Mbambo told analysts last week.



The company has recently agreed a partnership with the DRC&#8217;s inland railway company and says it is ready to partner South Africa&#8217;s Transnet, which also plans to open up its network to private players.



(Reporting by Nelson Banya)

The Wider Image: Zimbabwe’s dingy trains mirror economic decline

Zimbabwe turns to private firms to boost freight rail volumes

<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/CXVAOPAQTVLKREUIGTWRSKEOGU-820x547.jpg" alt="" class="wp-image-527088" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s President Xi Jinping and his wife Peng Liyuan pose with Secretary-General of the United Nations Antonio Guterres for a photography during a reception at the Forum on China-Africa Cooperation (FOCAC) in the Great Hall of the People in Beijing, China, 04 September 2024. ANDRES MARTINEZ CASARES/Pool via REUTERS</figcaption></figure>



BEIJING, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;African countries&#8217; inadequate access to debt relief and scarce resources is a recipe for social unrest, United Nations Secretary-General Antonio Guterres said on Thursday, proposing fresh reforms to the international financial architecture.



A growing debt crisis across the 1 billion-strong continent has seen a conflagration of civil unrest in recent months, after protests in Kenya, where police clashed with demonstrators rallying against proposed tax hikes, inspired people to take to the streets in Nigeria and Uganda over the cost of living.



African nations have been seeking to restructure their debts through a rework architecture designed by the G20 called the &#8216;Common Framework,&#8217; but the scheme did not as expected expedite talks between a myriad of leaders from Chinese state-owned banks to London-based asset managers and New York banks.



Zambia in June became the first country to successfully restructure its debt through the scheme, more than three years after it defaulted on its loans.



Guterres told a major China-Africa cooperation summit in Beijing that Africa&#8217;s debt &#8220;situation is unsustainable and a recipe for social unrest&#8221;.



&#8220;They have no access to effective debt relief, scarce resources, and clearly insufficient concessional funding to respond to the basic needs of their population,&#8221; he said.



Guterres proposed &#8220;deep reforms to the outdated, ineffective and unfair international financial architecture&#8221; and further stimulus &#8220;to provide developing countries with the liquidity they need while seeking medium- and long-term solutions.&#8221;



Beijing, the world&#8217;s biggest bilateral lender, is hosting 50 African nations for the ninth Forum on China-Africa Cooperation Summit this week, at which China&#8217;s President Xi Jinping pledged 360 billion yuan ($50.70 billion) in fresh financing to the continent over the next three years.



China approved loans worth $4.61 billion to Africa last year, the first annual increase since 2016.



Guterres praised China&#8217;s initiatives across Africa and said they could drive a &#8220;renewable energy revolution&#8221; and &#8220;be a catalyst for key transitions on food systems and digital connectivity.&#8221;



Angola&#8217;s finance minister on Tuesday told Reuters that Luanda was considering proposals from Beijing, Brussels and elsewhere, with a view to quickly securing funds to help bring down inflation and do more through public-private partnerships.



($1 = 7.1005 Chinese yuan renminbi)



(Reporting by Joe Cash; Editing by Jacqueline Wong and Michael Perry)

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