<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/BZN7UA65UJPHFLAB6CZSRO237U-820x547.jpg" alt="" class="wp-image-527085" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s President Xi Jinping delivers a keynote speech at the opening ceremony of the ninth Forum on China-Africa Cooperation (FOCAC) Summit, at the Great Hall of the People in Beijing, China September 5, 2024. REUTERS/Florence Lo</figcaption></figure>



BEIJING, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;President Xi Jinping pledged on Thursday to step up China&#8217;s support to the world&#8217;s fastest-growing continent with funding of nearly $51 billion, backing for more infrastructure initiatives and a promise to create at least 1 million jobs.



The world&#8217;s biggest two-way lender, Beijing showed a desire to move away from funding big-ticket infrastructure and focus instead on selling to developing economies the advanced and green technologies in which Chinese firms have invested heavily.



Still, Xi told delegates from more than 50 African nations that the world&#8217;s second-largest economy would carry out 30 infrastructure projects across the resource-rich continent, and offer 360 billion yuan ($50.70 billion) in financial assistance.



&#8220;China is ready to deepen cooperation with Africa in industry, agriculture, infrastructure, trade and investment,&#8221; Xi told delegates at a major China-Africa summit in Beijing.



He called for &#8220;a China-Africa network featuring land-sea links and co-ordinated development,&#8221; as he told Chinese contractors to return to the 1-billion-strong continent, after the lifting of COVID-19 curbs that disrupted its schemes.



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



Xi said 210 billion yuan of the financing pledge would be disbursed through credit lines and at least 70 billion in fresh investment by Chinese companies, with smaller amounts provided through military aid and other projects.



The Forum on China-Africa Cooperation Summit, held this year in the Chinese capital, chalks out a three-year programme for China and every African state bar Eswatini, which retains ties to Taiwan.



Besides 30 infrastructure connectivity projects, Xi added, &#8220;China is ready to launch 30 clean energy projects in Africa,&#8221; offering to co-operate on nuclear technology and tackle a power deficit that has delayed industrialisation efforts.



But the Chinese leader did not reiterate his pledge at the 2021 forum in Dakar for the Asian giant to buy $300 billion worth of African goods, pledging only to unilaterally expand market access.



Analysts say Beijing&#8217;s phytosanitary rules for market access are too strict, making China unable to meet that promise.



&#8220;We are ready to assist in the development of the African Continental Free Trade Area, and deepen logistics and financial co-operation for the benefit of trans-regional development in Africa,&#8221; Xi added.



($1=7.0976 Chinese yuan renminbi)



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

Forum on China-Africa Cooperation in Beijing

China offers Africa $51 bln in fresh funding, promises a million jobs

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



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Wednesday that South Africa needed to pursue ambitious fiscal consolidation to restore the sustainability of its public finances.



&#8220;Durable expenditure-based consolidation of at least 3 percent of GDP over the next three years is required to place debt on a sustained downward path, while protecting vulnerable groups,&#8221; the IMF said in a statement.



The Fund said South Africa&#8217;s new government should build on a pre-existing reform agenda while increasing its ambition and accelerating implementation.



&#8220;The new government should use the opportunity of a new mandate to implement bold reforms to address long-standing challenges and achieve the economy&#8217;s full potential,&#8221; it said.



South Africa&#8217;s African National Congress has formed a broad coalition with several parties including the market-friendly Democratic Alliance after losing its parliamentary majority for the first time in 30 years in a May election.



(Reporting by Bhargav Acharya; Editing by Alexander Winning)

IMF logo is seen outside the headquarters building in Washington

IMF says South Africa needs ambitious fiscal consolidation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-820x547.jpg" alt="" class="wp-image-526802" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Drone view of Durban harbour, one of South Africa&#8217;s busiest ports in Durban, South Africa January 31, 2024. REUTERS/Shiraaz Mohamed/File Photo</figcaption></figure>



Sept 4 (Reuters)&nbsp;&#8211;&nbsp;South African business confidence rose in the third quarter, helped by improving optimism about the business climate after the formation of a coalition government and stable electricity supply, a survey showed on Wednesday.



The business confidence index rose to 38 points in the third quarter from 35 points in the prior quarter, according to the survey by the Rand Merchant Bank (RMB) and compiled by the Bureau for Economic Research.



&#8220;Fortunately, the widely anticipated interest rate cut in South Africa later this month, on the back of lower consumer inflation and a boost from the introduction of the two-pot retirement system should spur domestic demand through the remainder of the year,&#8221; Isaah Mhlanga, chief economist at RMB said in a statement.



The South African Reserve Bank is expected to start cutting interest rates from this month for the first time in four years.



The African National Congress lost its parliamentary majority for the first time in 30 years in May, and later formed a broad coalition with several parties including the market-friendly Democratic Alliance.



Additionally, state-owned power utility Eskom managed to keep the lights on for over five months without scheduled blackouts in the country where power cuts have hampered economic growth for over a decade.



However, businesses activity was still constrained especially from weak demand, but the survey indicated conditions are expected to improve in the next quarter.



Retail confidence improved to 45 points from 39 in the previous quarter helped by improvement in durable and semi-durable traders&#8217; sales volumes.



Manufacturing sector confidence remained stable 28 points as a drop in production due to declining exports and domestic demand was offset by optimism at new vehicle dealers surging to a one-year high.



Wholesale trade was the most optimistic sector surveyed, with over half of respondents satisfied with prevailing business conditions.



(Reporting by Radhika Anilkumar in Bengaluru; Editing by Varun H K)

FILE PHOTO: Durban harbour, one of South Africa’s busiest ports

South African business confidence gets boost from coalition government, survey shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="505" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-820x505.jpg" alt="" class="wp-image-526728" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-1536x945.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The Hillbrow Tower, an iconic tower used to identify Johannesburg&#8217;s skyline, is seen as the sun sets, in Johannesburg, South Africa, October 18, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity rose in August as firms received higher volumes of new orders for the first time since April 2023, a survey showed on Wednesday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index rose to 50.5 in August from 49.3 in July, the first time it has been above the 50 point mark &#8211; which separates growth from contraction &#8211; in three months.



&#8220;South African businesses saw demand growth emerge in August, as customers increased their spending on the back of falling CPI inflation figures and a general optimism that economic conditions are stabilising,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



South Africa&#8217;s inflation fell to a more than three-year low of 4.6% year on year in July from 5.1% in June, offering some relief to consumers and cementing analysts&#8217; expectations for an interest rate cut this month.



&#8220;The rise in new orders was the first recorded in over a year, offering hope that the recent malaise in the private sector is starting to fade,&#8221; Owen added.



(Reporting by Tannur Anders; Editing by Christina Fincher)

View of Johannesburg’s skyline

South Africa business activity rises in August, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1381" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-scaled.jpg" alt="" class="wp-image-526710" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-1536x1036.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: China&#8217;s President Xi Jinping attends Shanghai Cooperation Organization (SCO) summit in Astana, Kazakhstan July 4, 2024. REUTERS/Turar Kazangapov/File Photo</figcaption></figure>



BEIJING, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;China, Tanzania and Zambia signed an initial agreement to rehabilitate a decades-old railway aimed at improving the rail-sea transportation in resource-rich East Africa, Chinese state media said on Wednesday.



President Xi Jinping witnessed the signing of the memorandum of understanding on refurbishing the 1,860 kms (1,156 mile) Tanzania-Zambia Railway Authority (TAZARA) railway with the Tanzanian and Zambian presidents, who were in Beijing attending the Forum on China-Africa Cooperation, according to&nbsp;the state-run Xinhua news agency.



The single-track TAZARA railway was built between 1970 and 1975 through an interest-free loan from China, offering a cargo transport route from Zambia&#8217;s copper and cobalt mines to the sea on Tanzania&#8217;s coast that bypasses South Africa and the former state of Rhodesia.



Commercial operations of the line, derided by some Western governments at the time as the &#8220;bamboo railway&#8221;, began in 1976. The multi-year project had involved the construction of two dozen tunnels and hundreds of bridges by tens of thousands of Chinese and African workers.



&#8220;China is willing to take this summit as an opportunity to make new progress in the revitalisation of the Tanzania-Zambia railway, cooperate to improve the rail-sea intermodal transport network in East Africa, and build Tanzania into a demonstration zone for deepening high-quality China-Africa Belt and Road cooperation,&#8221; said Xi, according to state media.



Earlier this year, the World Bank approved $270 million in financing to help improve connectivity between neighbours Tanzania and Zambia and boost regional trade.



In February, China proposed to spend $1 billion to rehabilitate the rail line through a public-private partnership model.



(Reporting by Bernard Orr and Ryan Woo; Editing by Kim Coghill and Michael Perry)

Shanghai Cooperation Organization summit held in Kazakh capital Astana

China to ‘revitalise’ ageing railway linking Zambia, Tanzania

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="559" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-820x559.jpg" alt="" class="wp-image-526446" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-820x559.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-1536x1047.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People work at &#8221;The Faktory&#8221;, a fashion design and clothing manufacturing company in Johannesburg, South Africa, March 4, 2021. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, Sept 3 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s economic growth picked up in the second quarter, supported by higher consumer spending and power availability, but output declines in agriculture, mining and transport meant growth was slightly weaker than expected.



Gross domestic product (GDP) expanded 0.4% in quarter-on-quarter seasonally-adjusted terms in April to June, below the 0.5% growth forecast by economists polled by Reuters but above the first quarter&#8217;s flat output.



South Africa&#8217;s top statistics official said it was too early to say whether the coalition government that emerged after May&#8217;s election had contributed to the improved second-quarter performance, since President Cyril Ramaphosa was only sworn in for a second term in mid-June.



&#8220;Even in the next quarter, it would be too early to tell about the effects of the government of national unity,&#8221; Statistician-General Risenga Maluleke told reporters.



Seven of the 10 sectors tracked by Statistics South Africa registered growth in the latest three-month period, as the economy benefited from an unbroken stretch without power cuts for the first time in years.



But economists said lingering bottlenecks at ports and on the freight rail network and weak global demand remained a drag.



&#8220;It&#8217;s a big step forward to not have power disruptions, but (we&#8217;re) not there yet in terms of all the other constraints,&#8221; said Lisette IJssel de Schepper, chief economist at the Bureau for Economic Research (BER).



After the marked improvement in power utility Eskom&#8217;s performance this year, inefficiencies at state logistics group Transnet are among the biggest unresolved issues.



<h2 class="wp-block-heading" id="h-faster-growth-ahead">FASTER GROWTH AHEAD?</h2>



South African factory activity also slumped in August, indicating that business conditions remain highly volatile in key sectors.



IJssel de Schepper said growth could start to pick up from the fourth quarter.



One reason is a government pension policy reform that came into effect on Sept. 1 and will allow fund members to withdraw some of their savings before retirement age.



The central bank estimates withdrawals could be between 40 billion rand and 100 billion rand ($2.2 billion and $5.6 billion) by the end of the year, boosting household consumption spending and GDP growth.



Another factor is that the central bank is expected to start cutting interest rates from this month for the first time in four years.



The BER forecasts 2.2% growth in 2025, up from 1% this year, but it says for that to be sustained there needs to be progress with reforms to enhance the country&#8217;s growth potential.



($1 = 17.9700 rand)



(Reporting by Kopano Gumbi and Tannur Anders: Editing by Alexander Winning)

People work at ”The Faktory”, in Johannesburg

South African economy gains momentum but not as much as forecast

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="515" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-820x515.jpg" alt="" class="wp-image-526361" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-820x515.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-768x483.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-1536x965.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Shoppers are seen outside the Shoprite store at the Garden City mall along Thika Road in Nairobi, Kenya November 13, 2020. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



JOHANNESBURG, Sept 3 (Reuters) &#8211; South Africa&#8217;s biggest grocery retailer, Shoprite, has agreed to sell its furniture business including the OK Furniture and House &amp; Home brands to discount retailer Pepkor, the companies said on Tuesday.



&#8220;The purchase consideration represents about 4% of Pepkor&#8217;s market capitalisation and will be settled in cash,&#8221; Pepkor, whose market value was 80.49 billion rand ($4.50 billion) on Monday, said in a statement.



That suggests a price about 3.2 billion rand ($179 million).



Pepkor will get a business operating more than 400 stores in South Africa, Botswana, Lesotho, Namibia, Eswatini and Zambia. The deal excludes the Angola and Mozambique operations.



It also includes the Shoprite Furniture credit loan book and related insurance arrangements in addition to inventory and certain fixed assets, Pepkor said.



Shoprite CEO Pieter Engelbrecht said in a separate statement that the supermarket group wanted to focus on its core grocery operations.



&#8220;We found ourselves at a crossroad with the business&#8217;s future growth and profitability hamstrung by the requirement of a level of investment that would have resulted in us re-directing capital and project management resources away from that currently dedicated to our food retail operations,&#8221; he said.



Shoprite&#8217;s furniture business contributed 7.2 billion rand or 3% to Shoprite&#8217;s group last full-year sales of 240.7 billion rand.



Pepkor already runs a Lifestyle business unit that comprises six household furniture, appliances and consumer electronics retail brands.



&#8220;The proposed transaction will allow Pepkor to expand its value proposition through a complementary product mix in furniture, bedding, appliances and consumer electronics, while also expanding its presence in under-represented regions,&#8221; it said.



($1 = 17.8907 rand)



(Reporting by Nqobile Dludla, Editing by Louise Heavens and Mark Potter)

Shoppers are seen outside the Shoprite store at the Garden City mall along Thika Road in Nairobi

South Africa’s Shoprite to sell furniture business to Pepkor

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="529" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UM66JBLQ7VPINAMXMHYRISRV7U-820x529.jpg" alt="" class="wp-image-526339" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UM66JBLQ7VPINAMXMHYRISRV7U-820x529.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UM66JBLQ7VPINAMXMHYRISRV7U-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UM66JBLQ7VPINAMXMHYRISRV7U-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UM66JBLQ7VPINAMXMHYRISRV7U-768x495.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UM66JBLQ7VPINAMXMHYRISRV7U-1536x990.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UM66JBLQ7VPINAMXMHYRISRV7U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: An Ethiopian Airlines Boeing 787-9 Dreamliner plane is seen at the Asmara International Airport in Asmara, Eritrea July 18, 2018. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Sept 3 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s state-owned carrier Ethiopian Airlines&nbsp;said it&nbsp;has suspended flights to neighbouring Eritrea, citing unspecified difficult operating conditions.



Eritrea had previously said it would suspend all Ethiopian Airlines flights at the end of this month.



Flights from Ethiopia to Eritrea had resumed in 2018 after two decades, following a peace deal and resumption of diplomatic relations between the two neighbours that earned Ethiopia&#8217;s Prime Minister Abiy Ahmed a Nobel peace prize a year later.



Five diplomats told Reuters the suspension was a tangible signal that the relationship between Asmara and Addis had soured significantly, but said the risk of conflict resuming was unlikely for now.



The two countries had previously severed ties in 1998, when a two-year war between the two nations started over their disputed border.



Eritrea fought alongside Ethiopia in a war that erupted in November 2020 against regional forces from&nbsp;Ethiopia&#8217;s Tigray region, but relations soured once again after Asmara was excluded from the peace talks that ended that conflict two years later, and because some of its troops remain in Tigray.



&#8220;Ethiopian Airlines regrets to inform its valued customers travelling to/from Asmara that it has suspended its flights to Asmara effective Sept.3 &#8230; due to very difficult operating conditions it has encountered in Eritrea that are beyond its control,&#8221; Ethiopian Airlines said in a statement late on Monday.



The airline said it would try to rebook affected passengers on other airlines at no additional cost or offer refunds, but did not give more details on the conditions it was referring to



Eritrea Information Minister Yemane Gebremeskel did not immediately respond to a request for comment.



Ethiopian Airlines is ranked the largest in Africa by revenue and profit by the global industry body International Air Transport Association.



(Reporting by Dawit Endeshaw in Addis Ababa and Giulia Paravicini in Nairobi; Writing by George Obulutsa; Editing by Lincoln Feast.)

An Ethiopian Airlines Boeing 787 plane is seen at the Asmara International Airport in Asmara

Ethiopian Airlines says it has stopped flights to Eritrea

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1576" height="1051" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM.jpg" alt="" class="wp-image-526049" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM.jpg 1576w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1536x1024.jpg 1536w" sizes="auto, (max-width: 1576px) 100vw, 1576px" /><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 2 (Reuters) &#8211; South African President Cyril Ramaphosa told China&#8217;s Xi Jinping on Monday he wanted to narrow his country&#8217;s trade deficit with Beijing, days before the Chinese leader is due to urge a summit of 50 African nations to buy more Chinese goods.



China, which has the world&#8217;s second-biggest economy, is South Africa&#8217;s largest trading partner globally but last year the value of its imports from China far outstripped exports.



Ramaphosa&#8217;s remarks point to the challenge Xi may have in convincing African leaders gathering in Beijing to absorb more of the production powerhouse&#8217;s wares, particularly after China did not meet a pledge from the last Forum on China-Africa Cooperation Summit in 2021 to buy $300 billion of African goods.



With Western curbs on Chinese exports such as solar panels and electric vehicles looming, finding buyers for items that the U.S. and Europe maintain Beijing has overcapacity in is a top priority for Xi at this year&#8217;s summit, which opens on Wednesday.



This meeting of the three-yearly gathering&nbsp;is also likely to&nbsp;address China&#8217;s role as a major lender to Africa, where many countries are struggling under growing debt burdens.



China&#8217;s lending to Africa rose for first time in seven years in 2023.



&#8220;As South Africa, we would like to narrow the trade deficit and address the structure of our trade,&#8221; Ramaphosa told his host during talks at Beijing&#8217;s Great Hall of the People, a statement from his presidential office said.



&#8220;We urge for more sustainable manufacturing and job-creating investments,&#8221; Ramaphosa added ahead of the ninth Forum on China-Africa Co-operation Summit.



South Africa which co-founded the BRICS group of developing economies along with Brazil, Russia, India, and China is also seeking Beijing&#8217;s backing to help it move on from over a decade of economic stagnation by building up its infrastructure.



Signalling China&#8217;s willingess to help South Africa put an end to the persistent power cuts, poor port processing and sub-par railways that have throttled economic growth, Xi proposed elevating bilateral ties to the level of a &#8220;new era of all-round strategic partnership,&#8221; Chinese state media reported.



The two countries also agreed to deepen cooperation in fields such as agriculture, health, medical sciences and infrastructure development, as well as to&nbsp;&#8220;seize opportunities&#8221; in new areas such as artificial intelligence, the digital economy and new energy, a joint statement said.



Xi has expressed a desire to realign China&#8217;s&nbsp;ties with the Global South around &#8220;small but beautiful projects&#8221;.



Correspondingly, the world&#8217;s biggest bilateral lender has already started tweaking conditions for its loans to the resource-rich continent, setting aside more for solar farms and hydroelectric dams, while cutting back on big-ticket infrastructure schemes.



(Additional reporting by Nellie Peyton in Johannesburg; Editing by Timothy Heritage, Andrew Heavens and Angus MacSwan)

South Africa’s President Cyril Ramaphosa arrives in Beijing ahead of China-Africa Cooperation forum

South Africa asks China for better balanced trade

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1858" height="1045" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108026428-1724843418953-gettyimages-2167225730-NYSE_POWELL.jpeg" alt="" class="wp-image-526016" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108026428-1724843418953-gettyimages-2167225730-NYSE_POWELL.jpeg 1858w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108026428-1724843418953-gettyimages-2167225730-NYSE_POWELL-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108026428-1724843418953-gettyimages-2167225730-NYSE_POWELL-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108026428-1724843418953-gettyimages-2167225730-NYSE_POWELL-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108026428-1724843418953-gettyimages-2167225730-NYSE_POWELL-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108026428-1724843418953-gettyimages-2167225730-NYSE_POWELL-1536x864.jpeg 1536w" sizes="auto, (max-width: 1858px) 100vw, 1858px" /><figcaption class="wp-element-caption">A trader works on the floor of the New York Stock Exchange on Aug. 23, 2024. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Central banks around the world are set to kick off or continue interest rate cuts this fall, bringing an end to an era of historically high borrowing costs.



In September, the U.S. Federal Reserve is all but guaranteed to join the European Central Bank, the Bank of England, the People’s Bank of China, the Swiss National Bank, Sweden’s Riksbank, the Bank of Canada, the Bank of Mexico and others in cutting key rates, which have been held at levels not seen since before the Financial Crisis of 2007-2008.



Money markets had already fully priced in a rate cut from the Fed, but last week investors gained even more confidence in the path of easing ahead.



At the annual Jackson Hole symposium, Fed Chair Jerome Powell not only said the “time has come for policy to adjust,” but that the central bank could now equally focus on doing “everything” it can to keep the labor market strong and continue progress on inflation.



Current pricing suggests high expectations for three 25 basis point cuts by the Fed before the end of the year, according to CME’s FedWatch tool. That will keep the Fed roughly in-line with its peers, despite it moving later.



The European Central Bank is seen cutting rates by 25 basis points at least three times in total this year; and the Bank of England by the same increment a total of three times, according to LSEG data. All three central banks are seen further continuing monetary easing at least in early 2025, even as stickiness in services inflation continues to trouble policymakers.



For the global economy, that means a broadly lower-rate environment next year, along with significantly reduced pressures from inflation. In the U.S., a recent spike in recession fear has largely abated, and despite where there is weakness in big manufacturing-oriented economies such as Germany, the likes of the more services-focused U.K. are recording solid growth.



What all that means for markets is less clear. European stocks, as measured on the regional Stoxx 600 index, rebounded in 2023 from a downturn in 2022 and gained nearly 10% in the year-to-date to reach an intraday record high on Friday. On Wall Street, the S&amp;P 500 index is 17% higher so far in 2024.



The VIX volatility index — which spiked amid the global equities downturn at the start of August — is back below average, Beat Wittmann, chairman and partner at Porta Advisors, told CNBC’s “Squawk Box Europe” on Thursday.



“The market, in terms of price momentum, in terms of valuations, of sentiment, has pretty much recovered, and we are going into the seasonally weak September, October period here. So I would expect choppy markets driven by various factors, geopolitics, corporate earnings, bellwethers like from the AI sector,” Wittmann said.



Choppiness will also be due to an “overdue consolidation correction” and some sector rotation occuring; but “the asset class of choice here very clearly for the rest of this year, and then especially for ’25 and beyond, is equities,” Wittmann added.



Even if recent Fed commentary appears supportive for stocks, data from the U.S. jobs market — with the next key report due Sept. 6 — remains important to watch, Manpreet Gill, chief investment officer for Africa, Middle East and Europe at Standard Chartered, told CNBC’s “Capital Connection” on Monday.



“Our baseline is still very much that a [U.S.] soft landing is achievable&#8230; It almost becomes a little bit more binary, because as long as we avoid that downside risk, equity earnings growth is still very supportive, and we’ve had sort of the positioning clean out in the recent pullback,” Gill said.



“And I think rate cuts, or at least expectation of those, really was the last piece markets were looking for. So on balance, we think it’s a positive outcome,” Gill said, referring to the risk of U.S. economic data causing volatility in the coming months.



Arnaud Girod, head of economics and cross asset strategy at Kepler Cheuvreux, told CNBC Tuesday that bonds have had a strong summer and equities have recovered; but that investors must now take a “leap of faith” on where the U.S. economy is heading and the pace of rate cuts.



“I truly think that the more rate cuts you get, the likelihood that [these cuts are] coming with negative data and hence weakening earnings momentum is very high. So it’s difficult, I think, to be too optimistic,” he said.



The stock market has meanwhile shown that there is an element to which it “couldn’t care less about interest rates,” Girod added, since Big Tech has rallied across the peak rate months — which conventional wisdom states should harm growth and technology stocks. That will keep events such as Nvidia earnings as the key ones to watch, according to Girod.



<h2 class="wp-block-heading" id="h-fx-focus-on-rates"><a></a>FX focus on rates</h2>



In currency markets, attention will remain on the interplay between inflation, rate expectations and economic growth, Jane Foley, head of foreign exchange strategy at Rabobank, told CNBC by email.



If the euro rises significantly against the dollar, “the disinflationary implication may have some impact on market expectations regarding the timing of the ECB rate cuts,” she said.



Stateside, Foley continued, “the result of the U.S. election will have implications for the Fed. If Trump wins, he could use an executive order to increase tariffs fairly quickly which would spur inflation risk and could cut the Fed’s easing cycle short.”



Rabobank currently sees four Fed rate cuts between September and January and then a hold for the rest of 2025, providing the U.S. dollar with the potential to strengthen into the spring.



&nbsp;“The BOE’s hand will likely remain constrained by services sector inflation, which is a function of wage inflation.&nbsp;This could limit the pace of BOE rate cuts to once a quarter,” Foley added.

108026428-1724843418953-gettyimages-2167225730-NYSE_POWELL

The peak interest rate era is over. Here’s what investors are watching

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CDCR7BPW6NNJ5IYQ3XFOFZKCYQ-820x546.jpg" alt="" class="wp-image-525967" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CDCR7BPW6NNJ5IYQ3XFOFZKCYQ-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CDCR7BPW6NNJ5IYQ3XFOFZKCYQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CDCR7BPW6NNJ5IYQ3XFOFZKCYQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CDCR7BPW6NNJ5IYQ3XFOFZKCYQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CDCR7BPW6NNJ5IYQ3XFOFZKCYQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CDCR7BPW6NNJ5IYQ3XFOFZKCYQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Gabon&#8217;s President Brice Clotaire Oligui Nguema waves as he arrives at Beijing Capital International Airport ahead of the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing, China, Sep. 1, 2024. Ken Ishii/Pool via REUTERS</figcaption></figure>



BEIJING/NAIROBI, Sept 2 (Reuters)&nbsp;&#8211;&nbsp;China will urge a summit of 50 African nations in Beijing this week to take more of its goods, before Western curbs kick in on its exports such as electric vehicles and solar panels, in exchange for more pledges of loans and investment.



But the dozens of African leaders arriving in the Chinese capital for the three-yearly event may not be easy bait. They will want to hear how China plans to meet an unfulfilled pledge from the previous summit in 2021 to buy $300 billion of goods.



They will also seek assurances on the progress of incomplete Chinese-funded infrastructure projects, such as a railway designed to link the greater East African region.



&#8220;The prize is going to go to those countries who have carefully studied the changes in China and align their proposals with China&#8217;s new slimmed-down priorities,&#8221; said Eric Olander, co-founder of the China-Global South Project.



&#8220;That&#8217;s a big ask for a continent that generally has very poor China literacy.&#8221;



Africa&#8217;s biggest two-way lender, investor and trade partner is moving away from funding big-ticket projects in the resource-rich continent, preferring instead to sell it the advanced and green technologies Chinese firms have invested in heavily.



As Western curbs on Chinese exports loom, Beijing&#8217;s top priority will be finding buyers for its EVs and solar panels, areas where the U.S. and European Union say it has overcapacity, and building overseas production bases for emerging markets.



China has already started tweaking conditions for its loans to Africa, setting aside more for solar farms, EV plants and 5G Wi-Fi facilities, while cutting back on bridges, ports and railways.



Last year, China offered 13 loans of just $4.2 billion to eight African states and two regional banks, data from Boston University&#8217;s Global Development Policy Centre showed, with about $500 million for hydropower and solar projects.



<h2 class="wp-block-heading" id="h-geopolitical-jostling">GEOPOLITICAL JOSTLING</h2>



When President Xi Jinping opens the ninth Forum on China-Africa Co-operation Summit on Thursday, he is expected to pitch plugging into China&#8217;s burgeoning green energy industry to leaders from Gambia, Kenya, Nigeria, South Africa, and Zimbabwe.



In attendance will also be delegates from every African state except Eswatini, with which Beijing has no ties.



To avoid losing market share, China&#8217;s geopolitical rival, the United States, has started to host African leaders.



Britain, Italy, Russia and South Korea have also held Africa summits in recent years, recognising the potential of the region&#8217;s young people and its 54 U.N. seats.



China&#8217;s outsized role as a financial and trade partner makes its meetings a far bigger deal, however.



&#8220;There is no other development partner that does that much,&#8221; said Hannah Ryder, founder of Development Reimagined, an African-owned consultancy.



&#8220;But are African leaders able to push China to really dig in so that the balance of the &#8216;win&#8217; is way more towards the African side?&#8221;



<h2 class="wp-block-heading" id="h-matching-wants-and-needs">MATCHING WANTS AND NEEDS</h2>



China will want to talk up boosting trade and access to minerals like copper, cobalt and lithium in countries such as Botswana, Namibia, and Zimbabwe.



But it could be cautious about more funding commitments following debt restructuring bids in economies such as Chad, Ethiopia, Ghana and Zambia, since the 2021 summit.



&#8220;We are likely to see a continued prudence in terms of financing mega projects,&#8221; said Lina Benabdallah, of the Centre for African Studies at Harvard University, adding that Beijing would push for technology transfers instead.



&#8220;I am most certainly keen to understand how many new finance commitments may come out of this, and how they&#8217;re going to deal with existing debt to African countries,&#8221; said Yvette Babb, portfolio manager at asset management firm William Blair.



But China&#8217;s enthusiasm to lend might be dampened by security concerns, such as a spat between Niger and Benin that killed six Nigerien soldiers guarding a PetroChina-backed pipeline, or deadly protests in Kenya over tax hikes.



(Writing by Joe Cash; Editing by Clarence Fernandez)

China Africa Forum in Beijing

China to pitch green tech exports to African leaders as Western curbs loom

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1280" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MLMMPYYK3JO6FGC6TA5OERDDR4.jpg" alt="" class="wp-image-525041" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MLMMPYYK3JO6FGC6TA5OERDDR4.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MLMMPYYK3JO6FGC6TA5OERDDR4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MLMMPYYK3JO6FGC6TA5OERDDR4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MLMMPYYK3JO6FGC6TA5OERDDR4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MLMMPYYK3JO6FGC6TA5OERDDR4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MLMMPYYK3JO6FGC6TA5OERDDR4-1536x1024.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">A customer stands in front of the bread section at a supermarket in Nairobi, Kenya May 8, 2017. Picture taken May 8, 2017. REUTERS/Baz Ratner/File Photo</figcaption></figure>



NAIROBI, Aug 30 (Reuters) &#8211; Kenya&#8217;s inflation edged up to 4.4% year-on-year in August from 4.3% in July, data from the statistics office showed on Friday.



On a month-on-month basis inflation was flat at 0.0% from -0.2% in July, the Kenya National Bureau of Statistics said in a statement.



The Kenyan government targets an inflation rate of between 2.5% and 7.5% in the medium term.



Kenya&#8217;s central bank cut its benchmark lending rate by 25 basis points earlier this month, saying there was scope to ease policy gradually as inflation had fallen below the midpoint of its target range.



(Reporting by George Obulutsa and Hereward Holland; Editing by Alexander Winning)

MLMMPYYK3JO6FGC6TA5OERDDR4

Kenya’s inflation rises slightly to 4.4% yr/yr in August

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/BMQRSYHVQ5KPZEVUFBZAFEVTYQ-820x574.jpg" alt="" class="wp-image-524996" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/BMQRSYHVQ5KPZEVUFBZAFEVTYQ-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/BMQRSYHVQ5KPZEVUFBZAFEVTYQ-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/BMQRSYHVQ5KPZEVUFBZAFEVTYQ-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/BMQRSYHVQ5KPZEVUFBZAFEVTYQ-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/BMQRSYHVQ5KPZEVUFBZAFEVTYQ-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/BMQRSYHVQ5KPZEVUFBZAFEVTYQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Delegates walk past the Transnet logo at the Investing in African Mining Indaba 2024 conference in Cape Town, South Africa February 7, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



CAPE TOWN, Aug 30 (Reuters)&nbsp;&#8211;&nbsp;South African state logistics group Transnet&nbsp;on Friday agreed&nbsp;a 5 billion rand ($283.53 million) loan from the New Development Bank set up by the BRICS group of emerging economies.



The loan will be guaranteed by the South African government, director general Duncan Pieterse told Reuters on the sidelines of a meeting of the New Development Bank being held in Cape Town.



Transnet is saddled with about 130 billion rand in debt and has struggled to provide adequate freight rail and port services because of equipment shortages and maintenance backlogs after years of under-investment.



Transnet&#8217;s chief executive said the money from the BRICS bank would be used for the company&#8217;s turnaround plan.



&#8220;There is lots of work to be done in Transnet, we&#8217;ve got major challenges. We need to sort it out and that&#8217;s what we need the money for,&#8221; Transnet CEO Michelle Phillips said after a signing ceremony for the loan agreement.



($1 = 17.6351 rand)



(Reporting by Wendell Roelf; Writing by Bhargav Acharya; Editing by Alexander Winning)

BMQRSYHVQ5KPZEVUFBZAFEVTYQ

South Africa’s Transnet gets 5 bln rand loan from BRICS bank

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-820x562.jpg" alt="" class="wp-image-489318" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-1536x1052.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers push trolleys as they shop at a Pick n Pay store at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 29 (Reuters) &#8211; South African grocery retailer Pick n Pay said on Thursday that proceeds from listing its discount grocery chain Boxer could total 8 billion rand ($450 million), according to its preliminary estimate.



Chief Executive Sean Summers is tasked with reviving through a turnaround and two-step recapitalisation plan a retail business that has been losing market share to bigger rivals Shoprite and others for more than a decade.



A deterioration in the performance of the group&#8217;s core Pick n Pay supermarket business resulted in a substantial trading loss in the Pick n Pay division of 1.5 billion rand in its financial year that ended Feb. 25, and an overall loss at group level of 3.2 billion rand.



At the same time its net debt escalated.



In order to lower its debt and strengthen the underlying performance of its Pick n Pay Supermarkets business, the group recently raised 4 billion rand through a rights issue and will now begin the process of listing Boxer towards the end of 2024, subject to shareholder and final board approval.



Details of the number of shares in issue, price and target amount will be shared closer to the time, but &#8220;for illustrative purposes only, the share issue will generate 8 billion rand in proceeds,&#8221; the retailer said in a statement.



&#8220;The Boxer IPO (initial public offering) will also ensure that Boxer is accorded a market value that appropriately reflects its growth trajectory and return on invested capital, thereby unlocking shareholder value embedded in the Group,&#8221;&nbsp;Pick n Pay said.



($1 = 17.7700 rand)



(Reporting by Nqobile Dludla; Editing by Susan Fenton)

FILE PHOTO: Pick n Pay sales grow but warns on extra costs from power cuts

South African grocer Pick n Pay says its Boxer IPO could raise $450 mln

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OV2PC52TJZNG5PW4JK4QPO2EU4-820x547.jpg" alt="" class="wp-image-524908" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OV2PC52TJZNG5PW4JK4QPO2EU4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OV2PC52TJZNG5PW4JK4QPO2EU4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OV2PC52TJZNG5PW4JK4QPO2EU4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OV2PC52TJZNG5PW4JK4QPO2EU4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OV2PC52TJZNG5PW4JK4QPO2EU4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OV2PC52TJZNG5PW4JK4QPO2EU4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Signage is seen outside of the Food and Drug Administration (FDA) headquarters in White Oak, Maryland, U.S., August 29, 2020. REUTERS/Andrew Kelly</figcaption></figure>



Aug 29 (Reuters)&nbsp;&#8211;&nbsp;The U.S. Food and Drug Administration (FDA) has approved expanded use of Emergent BioSolutions&#8217;&nbsp;EBS.N&nbsp;ACAM2000 smallpox vaccine to include people at high risk for mpox infection, the company said on Thursday.



Earlier this month, the World Health Organization declared mpox a global public health emergency for the second time in two years as a new variant of the virus, known as clade Ib, spread rapidly in Africa.



The FDA&#8217;s approval follows Emergent&#8217;s application for an Emergency Use Listing of ACAM2000 vaccine with the WHO.



Emergent last week said it would donate 50,000 doses of its smallpox vaccine to the Democratic Republic of the Congo and other impacted countries of Burundi, Kenya, Rwanda and Uganda to address the mpox outbreak.



According to the U.S. Centers for Disease Control and Prevention, ACAM2000 has more known side effects and risks than Danish biotech Bavarian Nordic A/S&#8217;s&nbsp;BAVA.CO&nbsp;Jynneos vaccine, which is approved in the United States for both smallpox and mpox.



ACAM2000 &#8211; a live, replicating virus vaccine &#8211; is known to cause myocarditis/pericarditis &#8211; swelling in or around the heart muscle &#8211; in 1 in 175 new ACAM2000 vaccine recipients, according to the FDA.



(Reporting by Shivani Tanna in Bengaluru; Editing by Maju Samuel and Subhranshu Sahu)

FILE PHOTO: Signage is seen outside of FDA headquarters in White Oak, Maryland

US FDA approves Emergent’s smallpox vaccine for people at high risk of mpox

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Impala-chief-sees-no-new-platinum-mines-built-in-South-Africa-amid-EV-threat-820x615.jpg" alt="" class="wp-image-524604" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Impala-chief-sees-no-new-platinum-mines-built-in-South-Africa-amid-EV-threat-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Impala-chief-sees-no-new-platinum-mines-built-in-South-Africa-amid-EV-threat-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Impala-chief-sees-no-new-platinum-mines-built-in-South-Africa-amid-EV-threat-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Impala-chief-sees-no-new-platinum-mines-built-in-South-Africa-amid-EV-threat-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Impala-chief-sees-no-new-platinum-mines-built-in-South-Africa-amid-EV-threat-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Impala-chief-sees-no-new-platinum-mines-built-in-South-Africa-amid-EV-threat-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An aerial view of Shaft 11 at Impala Platinum Mine, in Rustenburg, South Africa, November 28, 2023. REUTERS/Shafiek Tassiem/File Photo</figcaption></figure>



JOHANNESBURG, Aug 29 (Reuters)&nbsp;&#8211;&nbsp;Impala Platinum&nbsp;IMPJ.J&nbsp;sees little prospect of new platinum mines being built in South Africa as the industry struggles with a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3JU24E&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">price slump</a>, its Chief Executive Nico Muller said on Thursday.



Johannesburg-based Impala said projects it had halted in South Africa and Zimbabwe were unlikely to be revived due to the growing market for&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N3FE9AH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">electric vehicles</a>&nbsp;&#8211; which don&#8217;t need platinum-group catalysts in their engines.



&#8220;It&#8217;s highly improbable that you&#8217;re going to see material investment in new PGMs (platinum group metals) production in South Africa,&#8221; Muller said on a media call.



Impala, which has mines in South Africa, Zimbabwe and Canada, is curbing new investment after headline earnings in the year through June 30 plunged 87% to 2.4 billion rand ($135.4 million).



Impala has also shortened the life of its Canadian palladium operations due to a slump in prices and Muller said investors were balking at spending on new mines, which take as many as 20 years to build.



Platinum, of which South Africa is the world&#8217;s top supplier, and palladium prices will&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3JE1U4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">continue to hover below</a>&nbsp;$1,000 an ounce this year due to overstocking, according to a Reuters poll.



Platinum was trading around $940.85 an ounce and palladium at $946.16 on Thursday.



Platinum miners are bound by antitrust rules which prohibit them from voluntarily cutting output to stimulate prices, Muller said.



&#8220;We are not (as an industry) in a position where we can sit around a cigar table and agree to cut production in order to rebalance the market,&#8221; the CEO said. &#8220;That is the dilemma we sit with.&#8221;



The industry&#8217;s plight also reflects &#8220;the long-term state of electrification (of vehicles)&#8221;, Muller said.



&#8220;I&#8217;m not convinced that any shareholder or company is going to see a clear and attractive return for development in new assets,&#8221; he added.



Impala will place its Two Rivers project on &#8220;care and maintenance&#8221; after halting a planned 5.7 billion rand investment, in addition to spending curbs at the North Hill project in Zimbabwe where a $134 million investment was initially planned, and job cuts in South Africa.



($1 = 17.7210 rand)



(Reporting by Nelson Banya and Felix Njini in Johannesburg; Editing by Helen Popper and David Holmes)

An aerial view of Shaft 11 at Impala Platinum Mine, in Rustenburg

Impala chief sees no new platinum mines built in South Africa amid EV threat

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="482" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-820x482.jpeg" alt="" class="wp-image-462538" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-820x482.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-300x176.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-153x90.jpeg 153w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-768x452.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-1536x904.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds.jpeg 1700w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A Chinese flag flutters on top of the Great Hall of the People ahead of the opening ceremony of the Belt and Road Forum (BRF), to mark 10th anniversary of the Belt and Road Initiative, in Beijing, China October 18, 2023.
Edgar Su | Reuters</figcaption></figure>



NAIROBI, Aug 29 (Reuters)&nbsp;&#8211;&nbsp;Chinese lenders approved loans worth $4.61 billion to Africa last year, marking the first annual increase since 2016, an independent study showed on Thursday.



Africa secured more than $10 billion in loans a year from China between 2012-2018, thanks to President Xi Jinping&#8217;s Belt and Road Initiative (BRI), but the lending fell precipitously from the start of the COVID-19 pandemic in 2020.



Last year&#8217;s figure, a more than three-fold increase from 2022, shows China is keen to curb risks associated with highly indebted economies, the study by Boston University&#8217;s Global Development Policy Centre found.



&#8220;Beijing appears to be looking for a more sustainable equilibrium level of lending and experimenting with a (new) strategy,&#8221; said the university centre, which runs the Chinese Loans to Africa Database project.



The new data comes as Beijing prepares to host African leaders next week for the Forum on China-Africa Cooperation, which takes place every three years.



There were 13 loan deals last year involving eight African countries and two African multilateral lenders, the study found.



Last year&#8217;s biggest items include a nearly $1 billion loan from China Development Bank to Nigeria for the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N362039&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Kaduna-to-Kano</a>&nbsp;Railway and similar size&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AP8N3BH07A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">liquidity facility</a>&nbsp;by the lender to Egypt&#8217;s central bank.



China has vaulted to the top bilateral lender for many African nations like Ethiopia in recent years.



It has lent the continent a total of $182.28 billion between 2000-2023, the Boston University study found, with the bulk of the finances going to Africa&#8217;s energy, transport and ICT sectors.



Africa featured prominently in the initial years of BRI, as China sought to recreate the ancient Silk Road and extend its geopolitical and economic influence through a global infrastructure development push.



China, however, started to turn off the cash spigot in 2019, a shift that was accelerated by the pandemic, leaving a series of incomplete projects around the region, including a modern railway meant to link Kenya with its neighbours.



The reduction in loans was caused by China&#8217;s own domestic pressures and growing debt burdens among African economies. Zambia, Ghana and Ethiopia have gone into protracted debt overhauls since 2021.



More than half of the loans committed last year, or $2.59 billion, were to regional and national lenders, underscoring Beijing&#8217;s new strategy, the study by Boston University found.



&#8220;Chinese lenders&#8217; focus on African financial institutions most likely represent a risk mitigation strategy that avoids exposure to African countries&#8217; debt challenges,&#8221; it said.



Nearly a tenth of 2023 loans were for three solar and hydropower energy projects, the study found, illustrating a desire by China to move into funding renewable energy instead of coal-fired power plants.



Still, the discernible trends in last year&#8217;s figures did not offer a clear direction of China&#8217;s financial engagement with the continent, the study showed, since Chinese institutions also wrote loans to ailing economies like Nigeria and Angola.



&#8220;It remains to be seen whether China&#8217;s partnerships in Africa will retain their quality,&#8221; the Global Development Policy Centre said.



China&#8217;s loans to Africa rise in 2023&nbsp;<a href="https://reut.rs/3yZjZJH" target="_blank" rel="noreferrer noopener">https://reut.rs/3yZjZJH</a>



(Reporting by Duncan Miriri, editing by Karin Strohecker and Angus MacSwan)

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featured

China offers Africa $51 bln in fresh funding, promises a million jobs

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South Africa business activity rises in August, PMI shows

China to ‘revitalise’ ageing railway linking Zambia, Tanzania

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Kenya’s inflation rises slightly to 4.4% yr/yr in August

South Africa’s Transnet gets 5 bln rand loan from BRICS bank

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US FDA approves Emergent’s smallpox vaccine for people at high risk of mpox

Impala chief sees no new platinum mines built in South Africa amid EV threat

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