<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1228701729-820x547.jpg" alt="" class="wp-image-534859" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1228701729-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1228701729-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1228701729-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1228701729-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1228701729-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1228701729-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A logo sits on display outside an Investec Plc bank offices in Pretoria, South Africa, on Wednesday, Sept. 23, 2020. South Africas biggest lenders were faced with the pressing need to raise provisions to protect against souring loans, while demand for credit slumped as the coronavirus lockdown took a toll on business customers. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Sept 25 (Reuters) &#8211; South African lender Investec has opened an office in the Dubai International Financial Centre (DIFC), it said on Wednesday, in a bid to access deep pools of wealth from wealthy families and individuals in the region.



The DIFC has been luring global banks, asset and wealth managers as well as hedge funds, and it is now seeing rising interest from South African entities as investors look for safe havens, a neutral political stance and favourable policies.



Investec will offer its clients advisory and arranging services in private banking, wealth and investment management, and corporate and investment banking, Cumesh Moodliar, CEO of Investec Bank Limited said in a statement.



&#8220;We see a sustained emergence of high-net-worth individuals in Dubai and the Gulf as the region offers connectivity, quality services and growth opportunities for domestic and international companies,&#8221; Moodliar said.



By setting itself up in DIFC, Investec can use Dubai as a gateway to more than $3 trillion of private wealth, Salmaan Jaffery, Chief Business Development Officer of DIFC Authority said.



The Investec Group operates in two anchor geographies, South Africa and the United Kingdom, as well as the United States, Ireland, the Channel Islands, Mauritius, India and Continental Europe.



Investec did not say how many staff it would have in its new DIFC office.



(Reporting by Nqobile Dludla; Editing by Hugh Lawson)

South African Banks as Nation Endures Longest Recession

South African lender Investec opens office in Dubai’s DIFC

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LA24V6GG4VKUROZCEGVVO63DKQ-1-820x576.jpg" alt="" class="wp-image-534754" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LA24V6GG4VKUROZCEGVVO63DKQ-1-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LA24V6GG4VKUROZCEGVVO63DKQ-1-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LA24V6GG4VKUROZCEGVVO63DKQ-1-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LA24V6GG4VKUROZCEGVVO63DKQ-1-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LA24V6GG4VKUROZCEGVVO63DKQ-1-1536x1079.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LA24V6GG4VKUROZCEGVVO63DKQ-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A street money changer counts South African Rands in Harare, Zimbabwe, file. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



JOHANNESBURG, Sept 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand extended its recent rally on Wednesday, strengthening to a fresh 20-month high against the dollar.



At 0810 GMT, the rand traded at 17.22 against the U.S. currency, 0.3% stronger than its previous close and its strongest level since early February 2023.



Analysts have partly attributed the rand&#8217;s current strength to positive sentiment in the wake of interest rate cuts by the South African Reserve Bank (SARB) and U.S. Federal Reserve.



&#8220;We are likely to continue to trade in a R17.20/R17.40 range for now,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



On Thursday South Africa-focused investors will shift their focus to August producer inflation figures, which will shed further light on the extent to which price pressures are easing.



Slowing consumer inflation helped convince the SARB to cut rates last week.



Earlier on Wednesday central bank data showed a composite leading business cycle indicator rose 0.7% month on month in July. The indicator reflects vehicle sales, business confidence, money supply and other factors in Africa&#8217;s most industrialised economy.



The Johannesburg Stock Exchange&#8217;s Top-40 index was up 1.5% after touching a new high earlier in the session.



South Africa&#8217;s benchmark 2030 government bond was slightly weaker, with the yield up 1.5 basis points to 8.86%.



(Reporting by Bhargav Acharya, additional reporting by Ankika Biswas in Bengaluru; Editing by Alexander Winning and Toby Chopra)

FILE PHOTO: A street money changer counts South African Rands in Harare

South African rand firms to fresh 20-month high

<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/TM6VXL4FUVOHBJQ24CV24SK2JM-820x546.jpg" alt="" class="wp-image-534772" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TM6VXL4FUVOHBJQ24CV24SK2JM-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TM6VXL4FUVOHBJQ24CV24SK2JM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TM6VXL4FUVOHBJQ24CV24SK2JM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TM6VXL4FUVOHBJQ24CV24SK2JM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TM6VXL4FUVOHBJQ24CV24SK2JM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TM6VXL4FUVOHBJQ24CV24SK2JM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Riot police members operate during a demonstration against Kenya&#8217;s proposed finance bill 2024/2025 in Nairobi, Kenya, June 25, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Sept 25 (Reuters)&nbsp;&#8211;&nbsp;Kenyan police out of uniform and with no official identification fired live rounds at demonstrators at the country&#8217;s parliament complex in Nairobi on June 25, Amnesty International said on Wednesday.



That day saw &#8220;the use of officers without identity badges, uniforms or vehicles marked as police cars actively shooting at protesters and arresting others&#8221;, Irũngũ Houghton, Amnesty&#8217;s Kenya director, told Reuters as the rights group published a press release detailing its reconstruction of the events.



The national police did not respond to Reuters&#8217; requests for comment on the Amnesty statement.



More than 50 people were killed in months-long protests over a controversial finance bill, creating President William Ruto&#8217;s biggest crisis since taking office in 2022. Ruto abandoned the legislation in June and sacked almost his entire cabinet.



The rallies began peacefully, later turning violent. On June 25, the bill was scheduled for a third reading, and some demonstrators briefly stormed parliament. The police opened fire.



The rights group said its reconstruction of the day&#8217;s events was conducted with five partners and based on interviews with 23 witnesses and analysis of dozens of videos and photographs.



As unarmed demonstrators entered parliament, men in civilian clothes were &#8220;seen on camera firing rifles and handguns towards the crowd and in the air&#8221;, Amnesty said.



&#8220;Researchers counted at least 45 shots fired within 56 seconds.&#8221;



Three witnesses saw at least six bodies of protesters who they believed were shot dead at the parliament complex, the rights group said.



&#8220;I saw my friend going down,&#8221; said one person interviewed for the report, whose name was withheld. &#8220;He was shot.&#8221;



Amnesty&#8217;s report said images showed groups of men in civilian clothes carrying weapons and working alongside the police.



Amnesty also said Kenyan police that day unlawfully fired tear gas and beat and arbitrarily detained peaceful demonstrators, while some protesters threw back tear gas canisters at officers, hurled stones, broke windows and took flags.



(Writing by Paul Carsten; editing by Ammu Kannampilly and Alex Richardson)

FILE PHOTO: Demonstration against Kenya’s proposed finance bill 2024/2025 in Nairobi

Kenyan police in plainclothes fired on Nairobi protesters, Amnesty 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/2024/09/37HZYNFOE5LE3CMVPDV6SEO76Y-820x547.jpg" alt="" class="wp-image-534695" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/37HZYNFOE5LE3CMVPDV6SEO76Y-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/37HZYNFOE5LE3CMVPDV6SEO76Y-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/37HZYNFOE5LE3CMVPDV6SEO76Y-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/37HZYNFOE5LE3CMVPDV6SEO76Y-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/37HZYNFOE5LE3CMVPDV6SEO76Y-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/37HZYNFOE5LE3CMVPDV6SEO76Y-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A turbine of the WindFloat Atlantic Project, a floating offshore wind-power generating platform, is seen 20 kilometres off the coast in Viana do Castelo, Portugal, September 23, 2021. REUTERS/Violeta Santos Moura/File Photo</figcaption></figure>



NEW YORK, (Reuters) &#8211; World leaders on Tuesday called for far more investment in renewable energy to tackle climate change, with developing nations saying they need financial support to make the transition.



Speaking at a Global Renewables Summit, Kenyan President William Ruto made the case for investing in renewables in Africa as part of the global pledge made at last year&#8217;s COP28 summit to triple clean energy capacity by 2030.



&#8220;Africa receives less than 50% of global investment in renewable energy despite being home to 60% of the world&#8217;s best solar opportunities,&#8221; Ruto told the summit, which is being held on the sidelines of the U.N. General Assembly



The continent is rich in resources needed for development, he said, but can&#8217;t always access those resources due to the current mix of &#8220;unreliable or expensive energy.&#8221;



Barbados Prime Minister Mia Mottley said that fossil fuel subsidies outnumber renewable energy subsidies, which makes it more expensive for small states to develop clean energy projects.



&#8220;Small states face the reality that the cost of renewable energy &#8230; will probably be higher than traditionally fossil fuels,&#8221; she said.



Recent reports, including one by the International Energy Agency, suggest that tripling the world&#8217;s renewable capacity is feasible within this decade. But the effort will require robust regulation including strong rules for issuing project permits as well as investments in building out transmission and battery storage.



Azerbaijan, which is hosting this year&#8217;s COP29 climate summit in November, said it was planning to rally governments to make a new global pledge to increase electricity storage sixfold.



Earlier in the day, a coalition of some of the world&#8217;s biggest companies, finance houses and cities called Mission 2025 urged governments to adopt policies that they said could unleash up to $1 trillion in clean energy investments by 2030. The policies include setting new capacity targets and offering tax credits or long-term electricity contracts that would encourage investment.



<h2 class="wp-block-heading" id="h-we-did-it">&#8220;WE DID IT&#8221;</h2>



Giving his final major speech on climate change at a forum attended by clean energy business leaders, U.S. President Joe Biden celebrated his $369 billion signature climate law.



&#8220;We were told it couldn&#8217;t get done and we did it,&#8221; he said of passing the Inflation Reduction Act in 2022, adding that the legislation has since encouraged innovation and created hundreds of thousands of jobs.



&#8220;Private companies have announced investments of over $1 trillion in clean manufacturing,&#8221; he told the event. &#8220;We are just getting started.&#8221;



Some companies and investors are looking at artificial intelligence technologies with excitement for the solutions they might bring but there is also concern about the energy-intensive data centers that are needed to power them.



AI is &#8220;a problem, and it&#8217;s part of the solution,&#8221; Andres Gluski, the chief executive officer of U.S. power firm AES Corporation told Reuters in an interview.



&#8220;With AI, we could come up with new materials that are better for batteries, that are better than copper,&#8221; he said.



&#8220;If we have labor shortages, AI will help us. If we have to do demand management, AI will help us.&#8221;



(Reporting by Valerie Volcovici and Simon Jessop in New York; Additional reporting by Laila Kearney. Editing by Katy Daigle, David Evans, Aurora Ellis and Edwina Gibbs)

FILE PHOTO: A turbine of the WindFloat Atlantic Project, a floating offshore wind-power generating platform, is seen 20 kilometers off the coast in Viana do Castelo

World leaders call for investment in clean energy, developing nations seek help

<figure class="wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex">
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="800" height="538" data-id="534082" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JOTI3ZVACRID7LGCY2HKAAOB2U.avif" alt="" class="wp-image-534082"/><figcaption class="wp-element-caption">View of the Cobre Panama mine, of Canadian First Quantum Minerals, in Donoso, Panama, December 6, 2022. REUTERS/Aris Martínez/File Photo <a href="https://www.reutersagency.com/en/licensereuterscontent/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead" target="_blank" rel="noreferrer noopener">Purchase Licensing Rights</a></figcaption></figure>
</figure>



Sept 23 (Reuters)&nbsp;&#8211;&nbsp;Canadian miner First Quantum Minerals&nbsp;FM.TO&nbsp;said on Monday it has temporarily suspended operations in the area of a fatal accident at its Kansanshi copper mine in Zambia.



The company said it has launched an internal investigation into the accident in which one of its employees died following an incident involving a tracked dozer and a light vehicle.



&#8220;The site of the accident was immediately secured and operations in the area of the accident have been temporarily suspended and will resume once it is determined that it can be done so in a safe manner,&#8221; the Toronto-based miner said in a statement.



The Kansanshi mine, which produced 134,827 tonnes of copper and 68,970 ounces of gold last year, has faced safety challenges in the past.



Two of First Quantum&#8217;s contractors at its Zambia operations, including one at the Kansanshi,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3CS25H&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">had died in November</a>&nbsp;last year in separate accidents.



(Reporting by Sourasis Bose in Bengaluru; Editing by Tasim Zahid)

View of the Cobre Panama mine, of Canadian First Quantum Minerals, in Donoso, Panama, December 6, 2022. REUTERS/Aris Martínez/File Photo Purchase Licensing Rights

First Quantum suspends some work at Zambia mine after fatal accident

<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/JAPAN-820x462.webp" alt="" class="wp-image-533991" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN-820x462.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN-300x169.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN-160x90.webp 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN-768x432.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN.webp 1480w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An office worker studying electronic diagrams on a computer at control-panel maker in Japan. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Japan has ramped up its push for companies to adopt a four-day workweek, but those efforts face steep challenges in a country famous for its workaholic culture.



The Japanese government recently&nbsp;<a href="https://jsite.mhlw.go.jp/shiga-roudoukyoku/hourei_seido_tetsuzuki/_119416/consultant.html" target="_blank" rel="noreferrer noopener">initiated a “work style reform” campaign</a>&nbsp;aimed at promoting flexible work arrangements, shorter hours and overtime limits. To further encourage this initiative, the labor ministry has also begun&nbsp;<a href="https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000120692.html" target="_blank" rel="noreferrer noopener">providing subsidies</a>&nbsp;and&nbsp;<a href="https://jsite.mhlw.go.jp/shiga-roudoukyoku/hourei_seido_tetsuzuki/hatarkikata-kaikaku.html" target="_blank" rel="noreferrer noopener">free consulting services</a>.&nbsp;



The move marks a more concerted effort after the government first floated support for a shorter workweek in 2021 when lawmakers endorsed the idea. But the concept has not been mandated, and has been slow to gain traction.



“The reasons Japanese work long hours are cultural and social; those things don’t change quickly,” said&nbsp;Tim Craig, who spent over&nbsp;<a href="https://blueskyacademic.net/welcome-to-bluesky/about-us/" target="_blank" rel="noreferrer noopener">20 years teaching and conducting research&nbsp;</a>in top business schools in Japan.



According to the Ministry of Health, Labor and Welfare,&nbsp;<a href="https://www.e-stat.go.jp/en/stat-search/files?page=1&amp;amp;query=week&amp;amp;layout=dataset&amp;amp;toukei=00200531&amp;amp;tstat=000000110001&amp;amp;tclass1=000001215302&amp;amp;stat_infid=000040169039&amp;amp;metadata=1&amp;amp;data=1" target="_blank" rel="noreferrer noopener">only about 8% of companies</a>&nbsp;in Japan permit employees to take three or more days off each week.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
If they go home early, then their colleagues will (a) look askance at them, and (b) have to work more to cover for them.



Tim Craig &#8211; Founder of BlueSky Academic Services
</blockquote>



Craig, who also&nbsp;<a href="https://www.amazon.sg/Cool-Japan-Cultural-Creative-Industries/dp/4990982215" target="_blank" rel="noreferrer noopener">wrote a book on Japanese popular and traditional culture</a>, explained that the Japanese place a high premium on work because they tend to view it as a “positive part of life,” but social pressure also plays a role.



“If they go home early, then their colleagues will (a) look askance at them, and (b) have to work more to cover for them. Either way, it’s not a good feeling,” Craig elaborated.&nbsp;



The workplace is also where most Japanese have most of their social interactions, where employees are often willing to stay around longer to help the team and attend long company dinners, observed Martin Schulz, chief policy economist at Fujitsu.



“Being part of a company is almost part of a community, and this results often in longer work hours, not as efficient work hours,” he told CNBC.



Last October, the health ministry&nbsp;<a href="https://www.mhlw.go.jp/stf/wp/hakusyo/karoushi/23/index.html" target="_blank" rel="noreferrer noopener">published its annual white paper</a>&nbsp;addressing Japan’s excessively long working hours and their connection to depression and karoshi, or death from overwork. In 2022, 2,968 people in Japan died by suicide attributed to karoshi, an increase from 1,935 in 2021. Japan has not released its white paper for 2023′s statistics yet.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
I think that it’s going to take time [for the four-day workweek] to penetrate… we’re not used to being flexible.



Hiroshi Ono &#8211; Professor at Hitotsubashi University
</blockquote>



The report highlighted that 10.1% of men and 4.2% of women work over 60 hours a week, linking these long hours to the incidence of karoshi.



“I think that it’s going to take time [for the four-day work week] to penetrate… we’re not used to being flexible,” said Hiroshi Ono, professor of human resources at Hitotsubashi University.



“It’s still pretty rare in other countries as well. So I think that Japan especially will take some time to do that,” he added.



The small number of companies implementing a four-day workweek are also generally not traditional Japanese companies, Ono also observed,&nbsp;<a href="https://www.weforum.org/agenda/2022/01/four-day-week-work-life-balance-trial/" target="_blank" rel="noreferrer noopener">citing the example of Microsoft Japan</a>.&nbsp;



“So for the traditional Japanese companies, it might even take longer,” he said.



One of Japan’s largest companies,&nbsp;<a href="https://www.cnbc.com/quotes/6752.T-JP/">Panasonic</a>, rolled out the four-day workweek option for employees in 2022, but&nbsp;<a href="https://4dayweek.io/country/japan" target="_blank" rel="noreferrer noopener">only about 150 of 63,000 eligible workers</a>&nbsp;opted in.&nbsp;



Brokerage firm&nbsp;<a href="https://work-holiday.mhlw.go.jp/detail/11010.html#:~:text=%E9%80%B1%EF%BC%94%E6%97%A5%E5%8B%A4%E5%8B%99%E3%81%AE,%E9%81%B8%E6%8A%9E%E3%81%A7%E3%81%8D%E3%82%8B%E3%82%88%E3%81%86%E3%81%AB%E3%81%97%E3%81%9F%E3%80%82" target="_blank" rel="noreferrer noopener">SMBC has also offered employees a four-day workweek</a>&nbsp;option since 2020. But it has limited eligibility to workers aged 40 years or older for either family care or “autonomous career development.” The option is also only available from the fourth year of employment.&nbsp;



While the adoption rates are slim, the initiative is not all moot.



“The overall flexibility helps, definitely,” said Fujitsu’s Schulz, adding that the government has been pushing companies harder on work-life balance such that endless overtime hours are not allowed anymore.&nbsp;



Additionally, experts told CNBC that the concept of karoshi is not a phenomenon unique to Japan. In 2019,&nbsp;<a href="https://www.arbetarskydd.se/arbetsmiljo-stress/over-770-svenskar-dor-av-stress-varje-ar/1486737" target="_blank" rel="noreferrer noopener">more than 770 workers reportedly died due to work stress in Sweden</a>.



“The only thing that’s unique to Japan is that the ministry actually collects data on karoshi,” said Ono.

An office worker studying electronic diagrams on a computer at control-panel maker in Japan. Bloomberg | Bloomberg | Getty Images

Japan is pushing a 4-day working week — but its workaholic culture makes it a hard sell

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="554" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-820x554.jpg" alt="" class="wp-image-533948" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-820x554.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Job seekers wait beside a road for casual work offered by passing motorists, in Eikenhof, south of Johannesburg, South Africa, September 19, 2024. REUTERS/Siphiwe Sibeko/File Photo&nbsp;<a href="https://www.reutersagency.com/en/licensereuterscontent/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead" target="_blank" rel="noreferrer noopener">Purchase Licensing&nbsp;Rights</a></figcaption></figure>







JOHANNESBURG, Sept 23 (Reuters) &#8211; The head of South Africa&#8217;s flagship Black economic empowerment programme plans to introduce additional incentives and potential fines to improve corporate participation and curb exploitation of the system meant to tackle the country&#8217;s gross inequality, he said.



The African National Congress, which had ruled unchallenged for 30 years until it lost its parliamentary majority in May elections, is under intense pressure to improve the lives of Black people left disadvantaged by decades of white minority rule.



The empowerment law enacted in 2003 created a scorecard system that encourages companies to hire and promote Black people by offering them tax breaks and access to government contracts.



Two decades later, unemployment is five times higher for Black people than for white people and income inequality is the worst in the world, according to the World Bank, and critics say the empowerment policy has not worked.



&#8220;There&#8217;s no society that can be viable with (this) level of inequality,&#8221; Tshediso Matona, head of the Broad-based Black Economic Empowerment Commission told Reuters.



Under the voluntary programme, companies earn points in categories such as Black ownership, management control and skills development.



However, Matona says some companies inflate their scores by falsely listing Black people as managers, a practice commonly known in South Africa as &#8220;fronting&#8221;, a crime under the law.



The commission, which refers cases of infringement to state prosecutors, has received 1,348 complaints of fronting since 2017, said Matona. He added, without saying how many cases had been sent to trial, that no one had yet been convicted of fronting largely because the criminal justice system was &#8220;still figuring out how to work with the B-BBEE regulation&#8221;.



Listed companies are required to disclose their Black empowerment status in annual reports, but fewer and fewer are doing so. In 2022, only 141 of about 400 listed companies submitted a report.



Matona said he hoped to enhance company incentives for compliance while &#8220;naming and shaming&#8221; and possibly fining those which fail to submit the reports.



President Cyril Ramaphosa has said he wants to focus on showing companies the advantages of Black empowerment, but that if they refuse to comply then penalties would be needed.



&#8220;On this one (Black empowerment), we are unequivocal,&#8221; Ramaphosa told reporters over a week ago, describing racial inequality as an &#8220;existential challenge&#8221; for South Africa.



&#8220;It must be done, and it will be done.&#8221;



Matona would not be drawn on the specifics of the proposals but said incentives could focus on increasing recognition for companies that invest in skills and enterprise development and should not be &#8220;too obsessed about ownership in existing businesses&#8221;.



He said he hoped to have amendments to the law tabled in parliament within 12 months.



Any inclusion of punitive measures could set the ANC on a collision course with its coalition partner, the pro-business Democratic Alliance party, which has said it would resist them.



&#8220;Businesses don&#8217;t exist for altruistic purposes, we must accept that,&#8221; said DA labour spokesperson Michael Bagraim.



&#8216;BLACKWASHING&#8217; AND TRAINING LOOPHOLES



A common criticism of the affirmative action system is that it made a small number of political insiders extremely wealthy through shareholding deals, especially in its early years.



Economist Duma Gqubule said his research &#8211; based on an analysis of companies&#8217; annual reports and shareholding plans &#8211; found Black ownership of the 50 biggest firms listed on the Johannesburg bourse was barely 1%, far below the official average figure of about 30%.



This was because legal loopholes allowed firms to count Black shareholders even after they sold their stake, or to use shareholding structures that artificially increase Black ownership, a practice Gqubule described as &#8220;Blackwashing&#8221;.



Matona blamed a lack of oversight of independent agencies which issue Black empowerment scorecards and said the industry needed regulation.



His attempt to shift the focus away from ownership to skills development and training also has loopholes, consultants and trainees Reuters spoke to said.



To get skills points companies must pay for training courses for Black people, but they don&#8217;t have to hire them. Some engage a consultancy to find them disabled people to train, because these earn more points, the head of one such consultancy said.



This often leaves Black job seekers in a cycle of training.



&#8220;They keep on promising us that they will hire us but they&#8217;ve never done that,&#8221; said Nonhle Mnguni, a 22-year-old woman in Soweto who has done such courses in business administration, banking, freight forwarding and call centre work since leaving high school.



Giles Von Broembsen, CEO of property management company Pretor Group, said his company ran training programmes for employees, more than half of whom are Black, but that he could only earn points by sending them on a training course elsewhere.



&#8220;The points and the scoring and the system is all very laudable, but it&#8217;s not practical,&#8221; he said.



While some political and economic analysts agree with Matona&#8217;s approach to push for more compliance, others want the law repealed, saying it adds unnecessary bureaucracy which increases business costs and deters foreign investment.



&#8220;I think the whole thing should be repealed,&#8221; said political analyst Moeletsi Mbeki. &#8220;(The state) should help entrepreneurs to develop new businesses, irrespective of their race.&#8221;



(Reporting by Nellie Peyton and Olivia Kumwenda-Mtambo; Editing by Estelle Shirbon and Emelia Sithole-Matarise)

Job seekers wait beside a road for casual work offered by passing motorists, in Eikenhof, south of Johannesburg, South Africa, September 19, 2024. REUTERS/Siphiwe Sibeko/File Photo Purchase Licensing Rights

South Africa seeks to reform faltering Black empowerment system

<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/LT2OJQDRHNOTNLDH6UAPLOQ7NU-820x547.jpg" alt="" class="wp-image-532934" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LT2OJQDRHNOTNLDH6UAPLOQ7NU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LT2OJQDRHNOTNLDH6UAPLOQ7NU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LT2OJQDRHNOTNLDH6UAPLOQ7NU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LT2OJQDRHNOTNLDH6UAPLOQ7NU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LT2OJQDRHNOTNLDH6UAPLOQ7NU-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LT2OJQDRHNOTNLDH6UAPLOQ7NU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ghana&#8217;s former president and current main opposition National Democratic Congress (NDC) party presidential candidate John Dramani Mahama, 65, gestures as he and his wife Lordina Mahama attend a political campaign launch ahead of December polls, in Tamale, Ghana, July 27, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Sept 20 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s Vice President Mahamudu Bawumia and ex-president John Dramani Mahama are among 13 candidates approved for the 2024 presidential poll, the electoral commission said on Friday.



Voters in the West African gold- and cocoa-producing nation head to the polls on Dec. 7 to elect a successor to President Nana Akufo-Addo, who will step down in January after serving the constitutionally mandated eight years.



Former president Mahama, 65, represents the main opposition National Democratic Congress (NDC) party and Bawumia, a 60-year-old economist and former central banker, was picked by Akufo-Addo&#8217;s ruling New Patriotic Party as its candidate.



No party has won more than two consecutive terms in government in Ghana&#8217;s democratic history.



The commission said it had also accepted the candidacies of Alan John Kwadwo Kyerematen, a former trade and industry minister who resigned from the ruling party to stand as an independent, Nana Kwame Bediako, a businessman competing for the first time for the top job, and Nana Akosua Frimpomaa, one of two women in the race.



On Tuesday, Mahama&#8217;s NDC party held nationwide protests against alleged irregularities, saying the electoral commission had illegally transferred voters to different voting stations without their knowledge.



The electoral commission said it would review a petition submitted by the party at the end of the demonstrations and provide a response in the coming days.



The allegations dent the electoral authority&#8217;s image when public confidence is low.



A July survey by pan-African research group Afrobarometer showed trust in Ghana&#8217;s electoral commission at an historic low since confidence polls started in 1999.



(Reporting by Christian Akorlie and Maxwell Akalaare Adombila; Writing by Anait Miridzhanian;Editing by Ros Russell and Barbara Lewis)

Ghana’s NDC party campaign launch ahead of December elections, in Tamale

Ghana’s VP and former president among 13 candidates for presidency

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/DUU4LK5KNNLCFNH2XOSJSQHLSM-820x533.jpg" alt="" class="wp-image-532894" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/DUU4LK5KNNLCFNH2XOSJSQHLSM-820x533.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/DUU4LK5KNNLCFNH2XOSJSQHLSM-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/DUU4LK5KNNLCFNH2XOSJSQHLSM-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/DUU4LK5KNNLCFNH2XOSJSQHLSM-768x500.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/DUU4LK5KNNLCFNH2XOSJSQHLSM-1536x999.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/DUU4LK5KNNLCFNH2XOSJSQHLSM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Electricity pylons are seen near cooling towers of South African petrochemical company Sasol&#8217;s synthetic fuel plant in Secunda, north of Johannesburg, South Africa, May 20, 2018. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Sept 20 (Reuters) &#8211; South African petrochemicals company Sasol and state power utility Eskom said on Friday they had agreed to jointly explore ways the country could use liquefied natural gas (LNG).



As the country&#8217;s two biggest users of coal, Sasol and Eskom are major polluters and so are central to the country&#8217;s efforts to transition to cleaner energy sources.



Eskom is hoping to build on a recent improvement in its plant performance, after years of imposing power cuts.



&#8220;The collaboration aims to determine the potential volumes that South Africa requires to establish a viable LNG import market along with the enabling infrastructure, and will be facilitated by government-to-government relations where necessary,&#8221; the two companies said in a statement.



&#8220;This initiative focuses on using gas for power generation to provide essential base load electricity and position gas as a key enabler of re-industrialisation,&#8221; they added.



Asked at a news conference which governments South Africa could approach to source LNG, Electricity and Energy Minister Kgosientsho Ramokgopa said Qatar was near the top of the list.



&#8220;Qatar is top of the food chain because of the historic relations that Sasol enjoys with Qatar, and also the amount of reserves that they have,&#8221; Ramokgopa said.



Sasol and Eskom did not give a specific timeframe or potential joint projects on Friday.



(Reporting by Tannur Anders; Editing by Alexander Winning and Frances Kerry)

Electricity pylons are seen near cooling towers of South African petrochemical company Sasol’s synthetic fuel plant in Secunda, north of Johannesburg

South Africa’s Eskom, Sasol agree to explore LNG options

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="592" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2MFSM7KPW5NEHA5OJMULAT6TIA-820x592.jpg" alt="" class="wp-image-532758" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2MFSM7KPW5NEHA5OJMULAT6TIA-820x592.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2MFSM7KPW5NEHA5OJMULAT6TIA-300x217.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2MFSM7KPW5NEHA5OJMULAT6TIA-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2MFSM7KPW5NEHA5OJMULAT6TIA-768x555.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2MFSM7KPW5NEHA5OJMULAT6TIA-1536x1109.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2MFSM7KPW5NEHA5OJMULAT6TIA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past shelves of Coca-Cola bottles and cans at a Shoprite store inside Palms shopping mall in Lagos, Nigeria November 5, 2019. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, (Reuters) &#8211; Coca-Cola plans to invest $1 billion in its Nigeria operations over the next five years, the country&#8217;s presidency said after a meeting between President Bola Tinubu and senior executives of the soft drinks maker on Thursday.



Tinubu met John Murphy, president and chief financial officer of Coca‑Cola, Zoran Bogdanovic, CEO of Coca-Cola HBC &#8211; one of Coca-Cola&#8217;s many bottlers worldwide &#8211; and several other company officials as he seeks to attract investment into the economy.



Bogdanovic told Tinubu that Coca-Cola had since 2013 invested $1.5 billion in Nigeria to expand its production capacity, improve its supply chain and on training and development, the Nigerian presidency said in a statement.



&#8220;I am very pleased to announce that, with a predictable and enabling environment in place, we plan to invest an additional $1 billion over the next five years,&#8221; Bogdanovic was quoted as saying.



The investment announcement comes after Tinubu&#8217;s government saw several multinationals like Procter &amp; Gamble, GSK Plc and Bayer AG leave the country or appoint third parties to distribute their products due to foreign exchange shortages.



Tinubu, in office since May last year, said his government wanted to create an environment open to businesses.



&#8220;We are building a financial system where you can invest, re-invest, and repatriate all your dividends. I have a firm belief in that,&#8221; he said.



Nigeria, with a population of more than 200 million is seen as a potential market for many global brands, but forex woes, red tape and policy inconsistency discourages some investors.



Bottler Coca-Cola HBC in April said its operating profit would rise this year, supported by strong demand for its coffee, energy and sparkling drinks even as prices were hiked to keep up with high costs and currency devaluation in countries like Egypt and Nigeria.



(Reporting by Felix Onuah, writing by MacDonald Dzirutwe; Editing by Aurora Ellis)

FILE PHOTO: A man walks past shelves of Coca-Cola bottles and cans at a Shoprite store inside Palms shopping mall in Lagos

Coca-Cola plans to invest $1 billion in Nigeria operations, presidency 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/E6VGTQJGT5PWVIY65GTH6X443Q-820x547.jpg" alt="" class="wp-image-532541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Governor of the South African Reserve Bank, Lesetja Kganyago, gestures during an interview with Reuters in Centurion, South Africa April 3, 2024 REUTERS/James Oatway/File Photo</figcaption></figure>



PRETORIA, Sept 19 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank cut its main interest rate for the first time in more than four years&nbsp;on Thursday, as it said it saw inflation staying below the midpoint of its target range as far out as 2026.



The South African Reserve Bank (SARB) lowered the repo rate by 25 basis points to 8.00%, as predicted by economists polled by Reuters.



South Africa&#8217;s headline consumer inflation came in at 4.4% year-on-year in August, just below the 4.5% midpoint of the target range the central bank aims for.



The rate cut follows the U.S. Federal Reserve&#8217;s decision on Wednesday to begin lowering rates, and makes South Africa the latest emerging market to embark on an easing cycle after early movers in Latin America and central Europe.



Prior to Thursday&#8217;s cut, the SARB had kept the repo rate unchanged at seven policy meetings in a row. Before that it raised rates 10 times consecutively.



For much of the past three years annual inflation has been near the top of the central bank&#8217;s target band or above it, averaging 5.9% in 2023 and 6.9% in 2022.



But it dropped sharply in July and further in August.



The SARB said on Thursday that it thought progress bringing down inflation would be sustained, &#8220;with inflation contained below the 4.5% midpoint of our range through to the end of the forecast horizon, in 2026&#8221;.



On inflation expectations the bank noted they were slowly moving in the right direction, as shown in a recent quarterly survey.



&#8220;As long as headline inflation stabilises at lower levels, we anticipate further progress in re-anchoring expectations around the middle of our target range,&#8221; the SARB said in a statement.



Economic growth is expected to improve in the final two quarters of this year, bolstered by power utility Eskom suspending rolling power blackouts and higher consumer spending spurred by the government&#8217;s &#8220;two-pot&#8221; pension reform.



The rand currency has also benefited from confidence linked to the formation of a coalition government following May&#8217;s election, when the African National Congress party lost its majority in parliament.



(Reporting by Tannur Anders, Bhargav Acharya and Kopano Gumbi; Editing by Alexander Winning and Emelia Sithole-Matarise)

E6VGTQJGT5PWVIY65GTH6X443Q

South Africa central bank joins easing club with 25 basis point rate cut

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1317" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/R5IFRXYGKRJAJJVUQVPJG5LLYI-scaled.jpg" alt="" class="wp-image-532488" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/R5IFRXYGKRJAJJVUQVPJG5LLYI-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/R5IFRXYGKRJAJJVUQVPJG5LLYI-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/R5IFRXYGKRJAJJVUQVPJG5LLYI-820x527.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/R5IFRXYGKRJAJJVUQVPJG5LLYI-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/R5IFRXYGKRJAJJVUQVPJG5LLYI-768x494.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/R5IFRXYGKRJAJJVUQVPJG5LLYI-1536x988.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A man cycles past a chimney giving off emissions in an industrial area of Singapore January 5, 2016. REUTERS/Tim Wimborne/File Photo</figcaption></figure>



SINGAPORE, Sept 19 (Reuters)&nbsp;&#8211;&nbsp;Singapore&#8217;s low carbon, state-backed investment firm GenZero will collaborate with Rwanda on projects to generate carbon credits to offset emissions, it said on Thursday.



Countries such as Australia and Britain have ruled out the use of offsets, which have been widely criticised, to meet their net zero targets, but Singapore is relying on them because the city state lacks the space to build large-scale renewable projects.



The deal, signed by GenZero, the Rwanda Green Fund and carbon certification body Gold Standard that pledges to ensure project integrity, falls under Article 6 of the Paris Agreement on climate change.



The clause sets out ways for countries to meet climate targets by investing in low-carbon projects in other nations, either through bilateral arrangements or a yet-to-be finalised U.N. trading scheme.



&#8220;We will review potential projects with the Rwandan Green Fund and the Rwanda Environment Management Authority over the coming months, to determine their eligibility and suitability to be included in the collaboration,&#8221; Frederick Teo, chief executive of GenZero, an arm of the state investment fund Temasek, said.



&#8220;Projects can be nature-based solutions such as nature restoration, or technology-based solutions such as improved waste management.&#8221;



Though Article 6 negotiations are ongoing, Singapore has signed memoranda of understanding with Laos and the Philippines as well as legally binding &#8220;implementation agreements&#8221; with Ghana and Papua New Guinea.



Negotiations have also been completed on pacts with Bhutan, Paraguay and Vietnam, Ravi Menon, Singapore&#8217;s Ambassador for Climate Action, told a conference last week.



Singapore firms can offset up to 5% of taxable carbon emissions by buying credits through Article 6 deals.



Article 6 will be a priority during COP29 climate talks in Azerbaijan in November after negotiations on a final text broke down in Dubai last year.



Parties have struggled to reach consensus on how a U.N.-run carbon market should operate and some worry that bilateral agreements could impact national sovereignty.



(Reporting by David Stanway; editing by Barbara Lewis)

FILE PHOTO: A man cycles past a chimney giving off emissions in an industrial area of Singapore

Singapore’s GenZero to work with Rwanda on carbon offset projects

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1427" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-scaled.jpg" alt="" class="wp-image-532434" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-1536x1071.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A vendor shows a ten Zimbabwe gold-backed (ZiG) note along a street in Harare, Zimbabwe, July 17, 2024. REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, Sept 19 (Reuters)&nbsp;&#8211;&nbsp;Five months after its launch, Zimbabwe&#8217;s new currency is under pressure as increased grain imports eat away at foreign reserves, putting at risk the government&#8217;s plan to make it the only currency in the market by 2026.



The gold-backed ZiG, which stands for Zimbabwe Gold, is the country&#8217;s sixth attempt at a stable currency in 15 years. It was introduced in April at a rate of 13.6 ZiG per U.S. dollar and has since lost almost 80% of its value on the black market.



Independent economist Prosper Chitambara said the devaluation pointed to a lack of confidence in the new currency, that locals have been reluctant to embrace.



Persistence Gwanyanya, a member of the Reserve Bank of Zimbabwe&#8217;s Monetary Policy Committee, told Reuters that although uptake had been slow, it was too soon to consider the new currency a failure.



Gwanyanya said the government could increase use of the ZiG by charging more taxes in the local currency. &#8220;Government more than any other should show preference for its own currency and there is need for urgent intervention by injecting more foreign currency on the market,&#8221; he said.



But market traders are not convinced.



&#8220;The ZiG has been getting weaker so it does not make business sense to transact with it. I do not have faith in the ZiG. We have been here before with the Zimdollar,&#8221; Maynard Maketo, a street hawker selling candy and recharge cards said.



According to Pricecheck, a website that tracks the exchange rate, the ZiG is trading between 20 ZiG and 26 ZiG to $1 on the black market and 13.9 ZiG to $1 on the official exchange.



Carol Munjoma, a trader in downtown Harare who sells groceries, transacts exclusively in U.S dollars.



&#8220;Where I buy these groceries, they do not accept ZiG. So to protect my business I charge in U.S dollars. The ZiG would have to be stable to be accepted here,&#8221; the mother of two said.



In July, central bank chief John Mushayavanhu told Reuters that authorities would stick to promises to build trust in the new currency, a sentiment echoed by Gwanyanya.



&#8220;It is too early to consider that this may be the death of the ZiG,&#8221; said Gwanyanya.



(Reporting by Nyasha Chingono; editing by Kopano Gumbi and Christina Fincher)

A vendor shows a ten Zimbabwe gold-backed (ZiG) note along a street in Harare

Zimbabwe’s new currency faces headwinds five months on

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="900" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108036147-1726687763293-gettyimages-2172944678-_m010185_bsbvoiyl.jpeg" alt="" class="wp-image-532393" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108036147-1726687763293-gettyimages-2172944678-_m010185_bsbvoiyl.jpeg 1600w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108036147-1726687763293-gettyimages-2172944678-_m010185_bsbvoiyl-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108036147-1726687763293-gettyimages-2172944678-_m010185_bsbvoiyl-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108036147-1726687763293-gettyimages-2172944678-_m010185_bsbvoiyl-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108036147-1726687763293-gettyimages-2172944678-_m010185_bsbvoiyl-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108036147-1726687763293-gettyimages-2172944678-_m010185_bsbvoiyl-1536x864.jpeg 1536w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



WASHINGTON – The Federal Reserve on Wednesday enacted its first interest rate cut since the early days of the Covid pandemic, slicing half a percentage point off benchmark rates in an effort to head off a slowdown in the labor market.



With both the jobs picture and inflation softening, the central bank’s Federal Open Market Committee chose to lower its key overnight borrowing rate by a half percentage point, or 50 basis points, affirming market expectations that had recently shifted from an outlook for a cut half that size.



Outside of the emergency rate reductions during Covid, the last time the FOMC cut by half a point was in 2008 during the global financial crisis.



The decision lowers the federal funds rate to a range between 4.75%-5%. While the rate sets short-term borrowing costs for banks, it spills over into multiple consumer products such as mortgages, auto loans and credit cards.



In addition to this reduction, the committee indicated through its “dot plot” the equivalent of 50 more basis points of cuts by the end of the year, close to market pricing. The matrix of individual officials’ expectations pointed to another full percentage point in cuts by the end of 2025 and a half point in 2026. In all, the dot plot shows the benchmark rate coming down about 2 percentage points beyond Wednesday’s move.



“The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” the post-meeting statement said.



The decision to ease came “in light of progress on inflation and the balance of risks.” Notably, the FOMC vote was 11-1, with Governor Michelle Bowman preferring a quarter-point move. Bowman’s dissent was the first by a Fed governor since 2005, though a number of regional presidents have cast “no” votes during the period.



“We’re trying to achieve a situation where we restore price stability without the kind of painful increase in unemployment that has come sometimes with this inflation. That’s what we’re trying to do, and I think you could take today’s action as a sign of our strong commitment to achieve that goal,” Chair Jerome Powell said at a news conference following the decision.



Trading was volatile after the decision with the Dow Jones Industrial Average jumping as much as 375 points after it was released, before easing somewhat as investors digested the news and considered what it suggests about the state of the economy.



Stocks ended slightly lower on the day while Treasury yields bounced higher.



“This is not the beginning of a series of 50 basis point cuts. The market was thinking to itself, if you go 50, another 50 has a high likelihood. But I think [Powell] really dashed that idea to some extent,” said Tom Porcelli, chief U.S. economist at PGIM Fixed Income. “It’s not that he thinks that’s not going to happen, it’s that he’s not he’s not pre-committing to that to happen. That is the right call.”



The committee noted that “job gains have slowed and the unemployment rate has moved up but remains low.” FOMC officials raised their expected unemployment rate this year to 4.4%, from the 4% projection at the last update in June, and lowered the inflation outlook to 2.3% from 2.6% previous. On core inflation, the committee took down its projection to 2.6%, a 0.2 percentage point reduction from June.



The committee expects the long-run neutral rate to be around 2.9%, a level that has drifted higher as the Fed has struggled to get inflation down to 2%.



The decision comes despite most economic indicators looking fairly solid.



Gross domestic product has been rising steadily, and the Atlanta Fed is tracking 3% growth in the third quarter based on continuing strength in consumer spending. Moreover, the Fed chose to cut even though most gauges indicate inflation well ahead of the central bank’s 2% target. The Fed’s preferred measure shows inflation running around 2.5%, well below its peak but still higher than policymakers would like.



However, Powell and other policymakers in recent days have expressed concern about the labor market. While layoffs have shown little sign of rebounding, hiring has slowed significantly. In fact, the last time the monthly hiring rate was this low – 3.5% as a share of the labor force – the unemployment rate was above 6%.



At his news conference following the July meeting, Powell remarked that a 50 basis point cut was “not something we’re thinking about right now.”



For the moment, at least, the move helps settle a contentious debate over how forceful the Fed should have been with the initial move.



However, it sets the stage for future questions over how far the central bank should go before it stops cutting. There was a wide dispersion among members for where they see rates heading in future years.



Investors’ conviction on the move vacillated in the days leading up to the meeting. Over the past week, the odds had shifted to a half-point cut, with the probability for 50 basis points at 63% just before the decision coming down, according to the CME Group’s FedWatch gauge.



The Fed last reduced rates on March 16, 2020, part of an emergency response to an economic shutdown brought about by the spread of Covid-19. It began hiking in March 2022 as inflation was climbing to its highest level in more than 40 years, and last raised rates in July 2023.&nbsp;During the tightening campaign, the Fed raised rates 75 basis points four consecutive times.



The current jobless level is 4.2%, drifting higher over the past year though still at a level that would be considered full employment.



“This was an atypical big cut,” Porceli said. “We’re not knocking on recessions’ door. This easing and this bit cut is about recalibrating policy for the fact that inflation has slowed so much.”



With the Fed at the center of the global financial universe, Wednesday’s decision likely will reverberate among other central banks, several of whom already have started cutting. The factors that drove global inflation higher were related mainly to the pandemic – crippled international supply chains, outsized demand for goods over services, and an unprecedented influx of monetary and fiscal stimulus.



The Bank of England, European Central Bank and Canada’s central bank all have cut rates recently, though others awaited the Fed’s cue.



While the Fed approved the rate cut, it left in place a program in which it is slowly reducing the size of its bond holdings. The process, nicknamed “quantitative tightening,” has brought the Fed’s balance sheet down to $7.2 trillion, a reduction of about $1.7 trillion from its peak. The Fed is allowing up to $50 billion a month in maturing Treasurys and mortgage-backed securities to roll off each month, down from the initial $95 billion when QT started.

108036147-1726687763293-gettyimages-2172944678-_m010185_bsbvoiyl

Fed slashes interest rates by a half point, an aggressive start to its first easing campaign in four years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2Y3MQNCNXRJJDAT2KV7WMS3SLE-820x547.jpg" alt="" class="wp-image-532087" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2Y3MQNCNXRJJDAT2KV7WMS3SLE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2Y3MQNCNXRJJDAT2KV7WMS3SLE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2Y3MQNCNXRJJDAT2KV7WMS3SLE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2Y3MQNCNXRJJDAT2KV7WMS3SLE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2Y3MQNCNXRJJDAT2KV7WMS3SLE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2Y3MQNCNXRJJDAT2KV7WMS3SLE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Street view of Adum market at nightfall in Kumasi, Ghana, July 22, 2019. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Sept 18 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s economy grew&nbsp;by&nbsp;6.9% year-on-year in the second quarter of 2024, the fastest rate in five years, boosted by expansion in several key sectors, the country&#8217;s statistics agency said on Wednesday.



The strong growth represents a significant recovery for the producer of gold, oil and cocoa which has been grappling with its worst economic crisis in a generation due to skyrocketing public debt.



&#8220;The 6.9% growth rate is highest since the second quarter of 2019 and it was driven largely by strong expansion in the extractive sector, just as we saw in the second quarter of 2019,&#8221; government statistician Samuel Kobina Annim said.



Ghana&#8217;s overall industry sector grew by 9.3%, driven by mining and quarrying, while the gold sector expanded for the third consecutive period, by 23.6% in the quarter. The services sector grew 5.8%, while agriculture rose 5.4%, Annim said.



The cocoa sector in the world&#8217;s second biggest producer, however, contracted for the fourth consecutive quarter by 26.2%, highlighting the impact of a steady decline in crop output due to disease and poor weather.



The economic rebound is another boost to the West African state as it restructures its debt. It has invited holders of roughly $13 billion of its international bonds to swap their holdings for new instruments after reaching a preliminary restructuring agreement with two bondholder groups.



Bondholders have until Sept. 30 to accept the offer though those who agree to do so before an early deadline on Sept. 20 will be eligible for a 1% consent fee.



(Reporting by Maxwell Akalaare Adombila and Christian Akorlie; Writing by Anait Miridzhanian; Editing by Bate Felix and Keith Weir

Street view of Adum market at nightfall in Kumasi, Ghana

Ghana’s economy surges 6.9% in Q2 2024, fastest in five years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-820x547.jpg" alt="" class="wp-image-532028" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A street vendor balances a box on her head as she makes a sale at Markets of Warwick in the Durban CBD, Durban, South Africa May 31, 2024. REUTERS/Alaister Russell/File photo</figcaption></figure>



JOHANNESBURG, Sept 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s inflation rate fell more than expected last month to its lowest since April 2021, data showed on Wednesday, reinforcing expectations that the central bank will cut interest rates this week.



Headline consumer inflation fell to 4.4% year-on-year from 4.6% in July, just below the 4.5% midpoint of the South African Reserve Bank&#8217;s target range where it likes to see inflation.



The median forecast of analysts polled by Reuters was for a reading of 4.5%.



&#8220;The table is laid for the interest rate cutting cycle to commence,&#8221; said independent economist Elize Kruger.



Easing price pressures from transport, housing, restaurants and hotels contributed to August&#8217;s lower inflation print, data from Statistics South Africa showed.



However food inflation ticked up to 4.7% in annual terms from 4.5% in July, reversing an eight-month downward trend.



The figures hardened expectations that the central bank will cut interest rates on Thursday for the first time in more than four years.



Even before August&#8217;s inflation figures were released, economists polled by Reuters were predicting the central bank would cut its main lending rate by 25 basis points.



(Reporting by Tannur Anders and Kopano Gumbi; Editing by Alexander Winning and Christina Fincher)

A street vendor balances a box on her head as she makes a sale, in Durban

South African inflation falls more than expected, sets stage for rate cut

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-820x547.jpeg" alt="" class="wp-image-419969" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, July 27, 2022.
Elizabeth Frantz | Reuters</figcaption></figure>



The U.S. Federal Reserve is on Wednesday heading for its first interest rate cut since the onset of the Covid-19 pandemic — and despite the move being widely forecast, global investors are braced for impact.



The Fed is behind a swathe of its central bank peers, including those in the euro zone, the U.K., Canada, Mexico, Switzerland and Sweden, all of which have already cut rates.



Many of these policymakers stressed they were willing to move ahead of the Fed — usually seen as the global leader — in response to slowing growth and easing inflationary pressures at home.



However, some analysts have questioned how much further they could go before the Fed — the world’s biggest central bank by assets — followed suit, given the ripples its actions create.



<h2 class="wp-block-heading" id="h-global-impact"><a></a>Global impact</h2>



A key concern is the pressure interest rate differentials put on currencies.



Broadly speaking, higher rates attract more foreign investors seeking better returns, in turn boosting the value of the domestic currency.



This has been seen in the current cycle with the Japanese yen and Turkish lira taking a battering while their central banks kept rates low, while the U.S. dollar — as measured against a basket of currencies – soared throughout 2022 as the Fed delivered stringent rate hikes.



These differentials are particularly difficult for central banks attempting to keep price rises in check, since a weaker currency can be inflationary as it increases the cost of imported goods.



Beyond foreign exchange, another important effect of Federal Reserve rate-setting is its impact on the U.S. economy, particularly given the recent focus on a weakening labor market and possibility of a recession.



“As such an important driver of global growth, this is bound to have an effect on asset prices around the world,” Richard Carter, head of fixed interest research at Quilter Cheviot, said of a rate cut by the Fed.



That includes gold – which hit a record high this week on expectations of a move by the Fed. Higher rates are generally viewed to be a drag on gold since they make fixed-income investments, such as bonds, more attractive, although historically this has not always been the case. Gold is also used as a hedge against inflation (which can be pushed higher as rates go lower) and investors also buy the commodity in times of market stress.



Oil and other commodities, usually priced in dollars, often receive a boost with a rate cut as a lower cost of borrowing can stimulate an economy and increase demand.



Many emerging markets are more sensitive to these factors, making Fed moves even more important for them than bigger economies. Equity markets are also affected by moves by the Fed — and not just in the U.S.



Much of the global stock market volatility over recent months was linked to speculation over when, and by how much, the U.S. central bank will reduce rates.



“Interest rate cuts reduce the cost of borrowing in U.S. dollars, thereby creating easier liquidity conditions for companies around the world,” Quilter Cheviot’s Richard Carter continued via email.



“Lower U.S. interest rates should also lower the yield available on U.S. assets such as Treasurys, thus making other markets relatively more attractive,” he added.



<h2 class="wp-block-heading"><a></a>First cut the deepest?</h2>



While markets are confident that the Fed will kick off its cutting cycle on Wednesday, there is considerable uncertainty over how far and fast it will move over the remaining three meetings this year and into 2025.



That includes whether the initial cut will reduce the Fed funds rate by 25 basis points or 50 basis points below its current 525 to 550 range. Over the last week, market pricing for the larger “jumbo” cut has leapt from under 50% to nearly 70%, according to CME Group’s FedWatch tool.



 “Whatever the outcome, the markets will move,” Steven Bell, chief economist at Columbia Threadneedle, said in a Monday note.



“It is unusual for the Fed to leave the market guessing to this extent ahead of the meeting, especially so close to the U.S. presidential election. I can only presume that the committee itself is split,” Bell continued.



The November election has raised questions over the direction of U.S. fiscal policy, and how that could in turn impact inflation and monetary policy.



Joe Tuckey, head of foreign exchange analysis at Argentex, said that an initial 50 basis point rate cut by the Fed had historically “preceded some awful returns in equity markets,” notably in 2007 ahead of the Great Financial Crisis and in the early 2000s amid the tech bubble market rout.



“In essence, the need for a larger cut points toward growth concerns and economic trouble ahead,” Tuckey said.



However, Hani Redha, multi asset portfolio manager at PineBridge Investments, said it was “more critical” to look at pricing for more than 270 basis points worth of cuts through to the end of 2025.



“The economic data is still not decisive enough to give direction to the market,” Redha said, which was supporting defensive sectors.



“I think initially the reaction is going to be mixed, but probably equities can still hold up here until there’s a more decisive break in the economic data.”

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