<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/AWYW6U6DUVK4ZG27GR6R4GCY7I-820x547.jpg" alt="" class="wp-image-524168" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AWYW6U6DUVK4ZG27GR6R4GCY7I-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AWYW6U6DUVK4ZG27GR6R4GCY7I-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AWYW6U6DUVK4ZG27GR6R4GCY7I-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AWYW6U6DUVK4ZG27GR6R4GCY7I-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AWYW6U6DUVK4ZG27GR6R4GCY7I-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AWYW6U6DUVK4ZG27GR6R4GCY7I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of the city and Christ Church in Windhoek, Namibia, February 24, 2017. REUTERS/Siphiwe Sibeko</figcaption></figure>



Aug 28 (Reuters)&nbsp;&#8211;&nbsp;The discovery of increased reserves of crude oil in Namibia has sparked interest in Namibian assets, with an index fund tracking local government bonds poised for its biggest annual jump on record.



The Exchange Traded Fund tracking local government bonds is listed on the Namibian Stock Exchange and in South Africa and has jumped over 20% in U.S. dollar terms since Portugal-based Galp&#8217;s discovery in April that the Mopane field could hold at least 10 billion barrels of oil.



Since then there has been interest from at least 12 other oil majors.



The fund is on track for its biggest annual gain &#8211; nearly 12% in U.S. dollar terms. Meanwhile, an ETF tracking the closely watched JPMorgan emerging markets bonds index has gained 3.6% year-to-date.



Yields on local sovereign bonds have dropped further following the discovery, with those on bonds maturing in 2037 declining around 150 bps since April, while those on papers maturing in 2050 down around 200 bps.



&#8220;Most of the bonds issued are held by Namibian pension funds, but we are seeing some foreign buying now. We have seen massive yield compression &#8230; since the oil discoveries were first announced,&#8221; said Rowland Brown, co-founder of Cirrus Capital based in Windhoek.



Brown added that Namibian government bonds were still paper- settled, leaving foreign investors looking to the ETF to increase exposure to the resource-rich country.



The southwest African nation has garnered attention from major international energy companies following several major discoveries in recent years along its coast, although the country has not yet produced any oil or gas.



TotalEnergies and Shell say they expect production in 2029-2030.



<h2 class="wp-block-heading" id="h-presidential-election">PRESIDENTIAL ELECTION</h2>



The local equities index has gained over 19% year-to-date in U.S. dollar terms, compared with a 7.5% gain in MSCI&#8217;s index tracking emerging markets equities.



On the currency front, the Namibian dollar has strengthened 4.5% against the greenback this year, snapping a four-year losing streak, with total central bank reserves soaring nearly $1 billion since December 2019, as per LSEG data.



Against the backdrop of Namibia&#8217;s economic potential following its oil discoveries, attention will be on any changes to the economic policy after a presidential election due at the end of the year.



Graham Hopwood, executive director at Institute for Public Policy Research in Windhoek, expects the ruling left-leaning South West Africa People&#8217;s Organisation candidate Netumbo Nandi-Ndaitwah to win.



&#8220;One signal to watch is whether she keeps the level-headed finance minister in his post. He is cautious and sees the importance of reducing debt and avoiding outlandish promises to the electorate,&#8221; he said.



Namibian debt stands at over 60% of its gross domestic product, but analysts say that the fact that a majority of the bonds are issued domestically still remains a positive for the country.



Earlier this year, ratings agency Fitch affirmed a &#8220;stable&#8221; outlook for Namibia on expectations that the government debt to GDP ratio will stabilise in the medium term, while Moody&#8217;s lifted the country&#8217;s outlook to &#8220;positive&#8221; from &#8220;stable&#8221;.



The Namibian economy is heavily dependent on mineral exports including diamonds and rare earths. But following recent discoveries, energy could eventually overtake mining in terms of significance to the middle-income country&#8217;s economy.



&#8220;Oil exports per capita out of Namibia will look like a Gulf state in the 2040s, provided they are competitive globally &#8230; which should be a positive for debt to GDP ratios in the country,&#8221; said Charlie Robertson, head of macro strategy at FIM Partners.



In South America, a similar oil boom in Guyana has been key to its economic growth that is expected to increase by 34.3% in 2024, its fifth straight year of GDP growth above 20%.



(Reporting by Johann M Cherian in Bengaluru; Editing by Alison Williams)

A general view of the city and Christ Church in Windhoek, Namibia

Namibian asset demand soars ahead of election and amid oil discoveries

<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/NDWQ3HEJPFIQLCYNTPLMPYCPU4-820x547.jpg" alt="" class="wp-image-524150" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NDWQ3HEJPFIQLCYNTPLMPYCPU4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NDWQ3HEJPFIQLCYNTPLMPYCPU4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NDWQ3HEJPFIQLCYNTPLMPYCPU4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NDWQ3HEJPFIQLCYNTPLMPYCPU4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NDWQ3HEJPFIQLCYNTPLMPYCPU4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/NDWQ3HEJPFIQLCYNTPLMPYCPU4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Women wait with their children under a shed for food rations at a internally displaced persons (IDP) camp on the outskirts of Maiduguri, northeast Nigeria June 6, 2017. REUTERS/Akintunde Akinleye/File Photo</figcaption></figure>



LAGOS, (Reuters) &#8211; More than 31.8 million Nigerians are acutely short of food due to security challenges and the removal of fuel subsidies, the government said on Tuesday, citing a study by several of the country&#8217;s international development partners.



The scale of the shortages, which have led to malnutrition among women and children, was set out by the development partners at a meeting with the government on Monday and Tuesday, the ministry of budget and economic planning said in a statement.



The findings indicate a sharp rise from the 18.6 million people assessed as vulnerable to acute food insecurity from October to December 2023 by the U.N. World Food Programme.



&#8220;The surge in food commodity prices, which is as a result of the removal of fuel subsidy in addition to security challenges, has placed millions of Nigerians in a precarious situation,&#8221; the ministry said.



Raids by bandits wielding guns and machetes have forced many farmers to leave their fields, contributing to higher food prices and soaring inflation as Nigeria faces the worst cost of living crisis in a generation.



President Bola Tinubu, who took office in May 2023, removed fuel subsidies to cut down on government spending, in a move that led to a rise in the cost of transportation.



The study was produced by development partners including the U.N. Food and Agriculture Organization, the Global Alliance for Improved Nutrition and the German development agency GIZ.



The study used statistics from a nutrition analysis by the Cadre Harmonise, a regional food security framework.



Sanjo Faniran, Nigeria&#8217;s national convener of Food Systems and director of social development in budget and economic planning ministry, said the study helped to identify gaps, successes and challenges, and offer recommendations.



(Reporting by Isaac Anyaogu, Editing by William Maclean)

Women wait with their children under a shed for food rations at a internally displaced persons (IDP) camp on the outskirts of Maiduguri, northeast Nigeria

Insecurity, rising costs push 31 mln Nigerians into acute food shortage, study says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZILEI7OOWJMNBPRS4CLCVLYX3I-820x548.jpg" alt="" class="wp-image-523903" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZILEI7OOWJMNBPRS4CLCVLYX3I-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZILEI7OOWJMNBPRS4CLCVLYX3I-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZILEI7OOWJMNBPRS4CLCVLYX3I-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZILEI7OOWJMNBPRS4CLCVLYX3I-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZILEI7OOWJMNBPRS4CLCVLYX3I-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZILEI7OOWJMNBPRS4CLCVLYX3I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A test tube labelled &#8220;Mpox virus positive&#8221; is held in this illustration taken August 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



LONDON/CHICAGO, Aug 27 (Reuters)&nbsp;&#8211;&nbsp;Scientists studying the new mpox strain that has spread out of Democratic Republic of Congo say the virus is changing faster than expected, and often in areas where experts lack the funding and equipment to properly track it.



That means there are&nbsp;numerous&nbsp;unknowns about the virus itself, its severity and how it is transmitting, complicating the response, half a dozen scientists in Africa, Europe and the United States told Reuters.



Mpox, formerly known as monkeypox, has been a public health problem in parts of Africa since 1970, but received little global attention until it surged internationally in 2022, prompting the World Health Organization to declare a global health emergency. That declaration ended 10 months later.



A new strain of the virus, known as clade Ib, has the world&#8217;s attention again after the WHO declared a new health emergency.



The strain is a mutated version of clade I, a form of mpox spread by contact with infected animals that has been endemic in Congo for decades. Mpox typically causes flu-like symptoms and pus-filled lesions and can kill.



Congo has had more than 18,000 suspected clade I and clade Ib mpox cases and 615 deaths this year, according to the WHO. There have also been 222 confirmed clade Ib cases in four African countries in the last month, plus a case each in Sweden and Thailand in people with a travel history in Africa.



&#8220;I worry that in Africa, we are working blindly,&#8221;&nbsp;said Dr. Dimie Ogoina, an infectious diseases expert at Niger Delta University Hospital in Nigeria who chairs the&nbsp;WHO&#8217;s&nbsp;mpox emergency committee. He first raised the alarm about potential sexual transmission of mpox in 2017, now an accepted route of spread for the virus.



&#8220;We don’t understand our outbreak very well, and if we&nbsp;don&#8217;t&nbsp;understand our outbreak very well we will have difficulty addressing the problem in terms of transmission dynamics, the severity of the disease, risk factors of the disease,&#8221;&nbsp;Ogoina said. &#8220;And I worry about the fact that the virus seems to be mutating and producing new strains.&#8221;



He said it took clade IIb in Nigeria five years or more to evolve enough for sustained spread among humans, sparking the 2022 global outbreak. Clade Ib has done the same thing in less than a year.



<h2 class="wp-block-heading" id="h-mutating-more-rapidly">MUTATING &#8216;MORE RAPIDLY&#8217;</h2>



Mpox is an orthopoxvirus, from the family that causes smallpox. Population-wide protection from a global smallpox vaccine campaign 50 years ago has waned, as the vaccinating stopped when the disease was eradicated.



Genetic sequencing of clade Ib infections, which the WHO estimates emerged mid-September 2023, show they carry a mutation known as APOBEC3, a signature of adaptation in humans.



The virus that causes mpox has typically been fairly stable and slow to mutate, but APOBEC-driven mutations can accelerate viral evolution, said Dr. Miguel Paredes, who is studying the evolution of mpox and other viruses at Fred Hutchison Cancer Center in Seattle.



&#8220;All the human-to-human cases of mpox have this APOBEC signature of mutations, which means that it&#8217;s mutating a little bit more rapidly than we would expect,&#8221; he said.



Paredes and other scientists said a response was complicated by several mpox outbreaks happening at once.



In the past, mpox was predominantly acquired through human contact with infected animals. That is still driving a rise in Congo in clade I cases – also known as clade Ia &#8211; likely due in part to deforestation and increased consumption of bushmeat, scientists said.



The mutated versions, clade Ib and IIb, can now essentially be considered a sexually transmitted disease, said Dr. Salim Abdool Karim, a South African epidemiologist and chair of the Africa CDC’s mpox advisory committee. Most of the mutated clade Ib cases are among adults, driven at first by an epidemic among female sex workers in South Kivu, Congo.



The virus also can spread through close contact with an infected person, which is likely how clusters of children have been infected with clade Ib, particularly in Burundi and in eastern Congo’s displacement camps, where crowded living conditions may be contributing.



Children, pregnant women and people with weakened immune systems&nbsp;or other illnesses may&nbsp;be at greater risk of serious mpox disease and death,&nbsp;say&nbsp;the WHO&nbsp;and mpox scientists.



Clade I has typically caused more severe disease, with fatality rates of 4%-11%, compared to around 1% for clade II. Ogoina said data from Congo suggests few have died of the new Ib version, but he feared some data is being mixed up.



More research is urgently needed, but three teams tracking mpox outbreaks in Africa say they cannot even access chemicals needed for diagnostic tests.&nbsp;Clade Ib can also be missed by some diagnostic tests.



Planning a response, including vaccination strategies, without this is difficult, the scientists said.



Karim said around half of cases in eastern Congo, where Ib is particularly prevalent, are only being diagnosed by doctors, with no laboratory confirmation.



Getting samples to labs is difficult because the healthcare system is already under pressure, he said. And around 750,000 people have been displaced amid fighting between the M23 rebel group and the government.



Many African laboratories cannot get the supplies they need, said Dr. Emmanuel Nakoune, an mpox expert at the Institut Pasteur in Bangui, Central African Republic, which also has clade Ia cases.



&#8220;This is not a luxury,&#8221;&nbsp;he said, but necessary to track deadly outbreaks.



(Reporting by Jennifer Rigby in London, Julie Steenhuysen in Chicago and Catherine Schenck in Johannesburg; Editing by Caroline Humer, Bill Berkrot and Gareth Jones)

FILE PHOTO: Illustration shows test tubes with “Mpox virus positive” label

New mpox strain is changing fast; African scientists are ‘working blind’ to respond

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="582" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AXOWH46XAVPZDK2BMVHVSJZS4Y-820x582.jpg" alt="" class="wp-image-523900" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AXOWH46XAVPZDK2BMVHVSJZS4Y-820x582.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AXOWH46XAVPZDK2BMVHVSJZS4Y-300x213.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AXOWH46XAVPZDK2BMVHVSJZS4Y-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AXOWH46XAVPZDK2BMVHVSJZS4Y-768x545.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AXOWH46XAVPZDK2BMVHVSJZS4Y-1536x1090.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AXOWH46XAVPZDK2BMVHVSJZS4Y-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Power lines supplying electricity by stated owned Eskom run through sugar cane fields on a Tongaat Hulett farm in Shongweni, South Africa April 29, 2018. REUTERS/Rogan Ward/File Photo</figcaption></figure>



CAPE TOWN, Aug 27 (Reuters)&nbsp;&#8211;&nbsp;South African private power producers are seeking compensation for revenues lost when adhering to requests from state utility Eskom to limit electricity supply to the national grid, industry executives said.



Eskom has submitted a proposal to the country&#8217;s energy regulator to introduce a mechanism to compensate independent power producers (IPPs) for lost revenue resulting from curtailment rates of up to 10%.



The curtailment requests are due to a shortage of pylons and high voltage power lines that have caused choke points in Eskom&#8217;s transmission system.



The compensation mechanism is one of several proposed regulatory reforms as efforts to open up Africa&#8217;s largest electricity market gather pace.



&#8220;We are hoping that there will be adequate compensation for generation that is curtailed,&#8221; Ian Burger, a technical director at private power developer SOLA Group, told Reuters.



Burger said SOLA Group&#8217;s two Lichtenburg solar PV plants, which each produce just over 100 megawatts (MW), were requested in April and May by Eskom to cut output by up to 80% and produce only 20 MW per day.



SOLA Group supplies power to miner Tronox.



Eskom studies indicate that the costs of curtailing renewable energy are significantly lower than the billions of dollars required for upgrading the network to connect the same amount of renewable power to the grid.



By reducing generation from independent producers, Eskom hopes to immediately free up an estimated 3,470 MW of additional capacity on the constrained grid.



In July, energy regulator Nersa released a draft curtailment congestion policy based on Eskom&#8217;s application seeking approval to classify it as a &#8220;constrained ancillary generation service&#8221;.



This would enable Eskom to use specific formulae to reimburse renewable energy plants for the power curtailed because of grid congestion.



&#8220;The devil still is in the detail, but this raises the possibility of further minimising the cost borne by consumers by curtailing those IPPs with the lowest tariffs first, as opposed to everyone equally,&#8221; said Kilian Hagemann, CEO of G7 Renewable Energies.



Over the past five months, Eskom has provided continuous electricity, a feat last achieved in 2020, reducing its reliance on renewable energy to bolster the grid.



Eskom expects congestion curtailment to be implemented routinely from 2026 onwards, with curtailment levels increasing as more renewable projects come online.



(Reporting by Wendell Roelf; Editing by Olivia Kumwenda-Mtambo and Mark Potter)

FILE PHOTO: Power lines supplying electricity by stated owned Eskom run through sugar cane fields on a Tongaat Hulett farm in Shongweni

South African private power producers seek fair deal over output curbs

<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/GettyImages-1258656549-820x547.jpg" alt="" class="wp-image-523855" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1258656549-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Wamkele Mene, secretary-general of African Continental Free Trade Area (AfCFTA), during a Bloomberg Television interview at the Bloomberg New Economy Gateway Africa event in Marrakesh, Morocco, on Tuesday, June 13, 2023. The event brings together leaders in the private and public sectors to discuss the world&#8217;s most pressing issues and evaluate potential solutions in the context of local and regional priorities. Photographer: Hollie Adams/Bloomberg via Getty Images</figcaption></figure>



The Secretary General of the African Continental Free Trade Area (AfCFTA) says he is disappointed that South Africa, Africa’s largest economy, has not ratified a payment system intended to cut trade costs and accelerate the economic integration of the continent.



The Pan-African Payment and Settlement System (PAPSS), established in partnership with the African Union, enables companies to transact in any of Africa’s 42 currencies without the need for a third party currency like the U.S. dollar, saving as much as $5 billion annually. Some 115 commercial banks and 15 central banks have joined the system.



&#8220;I regret that South Africa has not yet adopted the Pan-African Payment and Settlement System because I think it is a political economy question,’’ AfCFTA Secretary General Wamkele Mene told CNBC Africa. &#8220;I must confess, I am surprised that not more countries have joined PAPSS.”



While the question was best answered by the South African Reserve Bank, Mene said the country stood the most to benefit from lowering costs and increasing intra-Africa trade as it had more than 80 percent of manufactured goods trade in Africa.



The Africa Export-Import Bank estimates more than 80 percent of intra-African payments currently go through either Europe or the United States, a legacy of the continent’s colonial history and political and economic dominance of the West over the continent. PAPSS will reduce this reliance while giving Africa autonomy over its trade relations with the rest of the world, Mene said.



&#8220;If you look at the cost of a transaction, a trade transaction across regions of the continent, if your goods cost you $500, we charge you $2 to transact on PAPSS. If you use SWIFT, you will pay $60, $70. And it is instantaneous. It is a digital platform, instantaneous. So I think that it is in Africa&#8217;s advantage,’’ he said.



The Africa Union launched the Africa Continental Free Trade Agreement in January 2021, the youngest and largest trading bloc in the world seeking to create a common market with a combined gross domestic product of $3.4 trillion that’s projected to grow to $16.5 trillion by 2035, according to the Washington-based World Bank. It’s been ratified by 48 of Africa’s 54 territories. Eritrea is expected to join soon, Mene added.



&#8220;I think we have to make that mental shift of not only believing in ourselves as Africans, but also believing in the institutions and the mechanisms that we have introduced,’’ said Mene.



Key participants in PAPSS include central banks, which act as regulators and clearance agents, commercial banks, fintechs, payment service providers and their customers who are made up of the businesses operating across the continent.



Afreximbank says it expects the majority of Africa’s central banks to have joined PAPSS by next year, a key step in its drive to increase intra-African trade to more than 20 percent, the lowest amongst the world’s trading blocs. Intra-European trade sits 68 percent with Asia at 59 percent while Northern America is at 30.6%, according to the UN Trade and Development.



&#8220;This question is not just about addressing the trade deficit in Africa, it is also about the sovereignty of the continent of Africa, the payment sovereignty of the African continent,’’ Mene said. &#8220;If today you upset somebody in Washington, in London, you will be kicked out of SWIFT and you will not be able to transact with the rest of the world. So it is not just about the issue of easing payments, it is also about the political sovereignty. It is a political economy question.’’

Key Speakers at New Economy Gateway Africa Event

AfCFTA Secretary General Laments S. Africa’s Absence from Flagship African payments system

<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/XTUYFFOIU5I5JMOASXHMTVFSTI-820x615.jpg" alt="" class="wp-image-523852" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/XTUYFFOIU5I5JMOASXHMTVFSTI-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/XTUYFFOIU5I5JMOASXHMTVFSTI-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/XTUYFFOIU5I5JMOASXHMTVFSTI-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/XTUYFFOIU5I5JMOASXHMTVFSTI-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/XTUYFFOIU5I5JMOASXHMTVFSTI-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/XTUYFFOIU5I5JMOASXHMTVFSTI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new logo of the privatised Nigeria oil company is seen at the NNPC Mega Gas Station in Abuja, Nigeria August 30, 2022. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LAGOS, Aug 27 (Reuters)&nbsp;&#8211;&nbsp;State-owned Nigerian oil company NNPC has expanded shipments of liquefied natural gas (LNG) cargoes to a port in China after its first delivery to Japan in June, it said on Monday.



Nigeria, Africa&#8217;s biggest oil producer, holds the continent&#8217;s largest gas reserves at more than 200 trillion cubic feet and has often shipped most of its LNG through Nigeria LNG, in which the NNPC has a 49% stake.



NNPC Ltd said it has been involved in LNG trading since 2021 with its first LNG cargo sale in November of that year. It said it has since traded over 20 cargoes into the European and Asian markets on Free On Board basis, where the buyer assumes risks once the seller ships the product.



But now the company says it will ship directly to ports in the countries ordering the cargoes bearing shipping and insurance costs, known as Delivered Ex-Ship (DES) in the industry, which it says is more profitable.



&#8220;The DES system, apart from being more financially rewarding, allows NNPC Ltd inroads into the downstream segment of the LNG sector and positions it to capture more market share, while building in-house capacity and ensuring that global customers are familiar with the NNPC Ltd brand,&#8221; said Dapo Segun, executive president of NNPC Downstream.



Since last year, the NNPC has been expanding its footprint in the LNG market, signing an agreement to build a new floating LNG plant in Nigeria that will boosts exports to Europe.



The NNPC said it achieved the feat in collaboration with its shipping subsidiary and they are scheduled to deliver at least two more LNG cargoes to ports in Asia by November.



(Reporting by Isaac Anyaogu; editing by David Evans)

XTUYFFOIU5I5JMOASXHMTVFSTI

Nigeria’s NNPC sending LNG cargoes to Japan and China

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-1-820x462.jpeg" alt="" class="wp-image-523819" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-1-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-1.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The lights of Frankfurt am Main’s banking skyline glow in the last light of day. Boris Roessler | Picture Alliance | Getty Images</figcaption></figure>



LONDON — European markets were higher on Tuesday as investors assessed geopolitical risks and U.K. markets reopened after being closed on Monday for a national bank holiday.



The pan-European Stoxx 600 was 0.21% higher at 8:49 a.m. London time, with all major regional indexes trading in the green. Sectors were mixed, with mining stocks adding 1.08%, while retail stocks shed 0.34% and tech dipped 0.18%.



European markets had posted a mixed session on Monday.



Investors continued to weigh geopolitical risks after Israel and Hezbollah traded strikes over the weekend, raising fears about a wider conflict in the Middle East.



The uncertainty sent oil prices higher on Monday. On Tuesday prices eased slightly, with Brent crude&nbsp;futures dipping by 0.15% to $81.31 a barrel and U.S. West Texas Intermediate crude declining by 0.31% to $77.18 a barrel at 8:51 a.m. London time.



On the data front in Europe, Germany’s statistics office on Tuesday released a final reading of the country’s second-quarter gross domestic product, saying that it fell by 0.1% from the previous quarter. That was in line with the preliminary second-quarter GDP reading that was released in July.



Elsewhere, Hungary’s central bank is set to announce its interest rate decision.



Elsewhere, Asia-Pacific markets broadly pulled back on Tuesday as investors weighed industrial profit data out of China and widely followed key Wall Street indexes lower.



The S&amp;P 500 and Nasdaq Composite had retreated on Monday in the U.S. as technology stocks slid, while the Dow Jones Industrial Average notched a fresh record high. U.S. futures were last mixed early on Tuesday.

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Europe markets rise as investors weigh economic, geopolitical outlook; UK markets reopen

<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/VIQGVFK7CNODDPPNJJFUT2T2AM-820x547.jpg" alt="" class="wp-image-523796" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VIQGVFK7CNODDPPNJJFUT2T2AM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VIQGVFK7CNODDPPNJJFUT2T2AM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VIQGVFK7CNODDPPNJJFUT2T2AM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VIQGVFK7CNODDPPNJJFUT2T2AM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VIQGVFK7CNODDPPNJJFUT2T2AM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VIQGVFK7CNODDPPNJJFUT2T2AM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nigeria&#8217;s President Bola Tinubu speaks after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja</figcaption></figure>



ABUJA, (Reuters) &#8211; Nigerian President Bola Tinubu named new homeland security and foreign intelligence chiefs on Monday, a week after their predecessors resigned abruptly, as Africa&#8217;s most populous nation fights a northeastern insurgency and rampant kidnappings.



Mohammed Mohammed, who&nbsp;headed&nbsp;Nigeria&#8217;s mission to Libya, will lead the National Intelligence Agency. Adeola Ajayi will helm the Department of State Security.



The previous agency chiefs, appointed by ex-President Muhammadu Buhari in 2018, gave no reason for their resignations.



They could have taken the fall for the country&#8217;s poor security performance, or have been purged along with government personnel from the north to replace with Tinubu&#8217;s own&nbsp;Yoruba&nbsp;ethnic stock, said Confidence MacHarry, lead security analyst at consultancy SBM Intelligence.



Following incessant attacks by armed groups, Tinubu is boosting intelligence gathering&nbsp;to deal with nationwide kidnappings for ransom by armed gangs and a more than decade-old insurgency in the northeast.



(Reporting by Ope Adetayo and Felix Onuah; Editing by Chijioke Ohuocha and Richard Chang)

Nigeria’s President Bola Tinubu speaks after his swearing-in ceremony in Abuja

Nigeria’s president appoints new security and intelligence chiefs

<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/UY34M72OC5KA3B3SYJZXMG6BME-820x547.jpg" alt="" class="wp-image-523529" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UY34M72OC5KA3B3SYJZXMG6BME-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UY34M72OC5KA3B3SYJZXMG6BME-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UY34M72OC5KA3B3SYJZXMG6BME-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UY34M72OC5KA3B3SYJZXMG6BME-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UY34M72OC5KA3B3SYJZXMG6BME-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UY34M72OC5KA3B3SYJZXMG6BME-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Spain&#8217;s Prime Minister Pedro Sanchez attends a press conference at Moncloa Palace in Madrid, Spain, July 31, 2024. REUTERS/Ana Beltran/File Photo</figcaption></figure>



MADRID/SANTA CRUZ DE TENERIFE, Aug 26 (Reuters)&nbsp;&#8211;&nbsp;Spain&#8217;s Prime Minister Pedro Sanchez starts his second visit this year to West Africa on Tuesday, aiming to curb migration to the Canary Islands and to counter the Russian presence in the Sahel region.



The West African migration route has seen a 154% surge this year, with 21,620 people crossing to the Canary Islands in the first seven months, according to data from the European Union border agency Frontex.



The wave has stretched resources on the Spanish archipelago, with local authorities saying they may have to house migrants in military camps or even in tents ahead of an expected rise in arrivals&nbsp;due to calmer conditions in the Atlantic Ocean.



Spanish authorities fear that as many as 150,000 more migrants from Africa may be set to make the perilous crossing in the coming months.



According to Frontex data, nearly half of the new arrivals are Malians, forced out of their country by a conflict and economic crisis in which the Russian mercenary group Wagner is involved.



Sanchez is focusing on strengthening relations with Mauritania, Senegal, and Gambia, the main departure points for migrant boats. The first two share land borders with Mali.



Spanish police have&nbsp;long&nbsp;operated in West Africa&nbsp;to strengthen&nbsp;border control&nbsp;as part of Madrid&#8217;s strategy to give financial and security aid to departure points for migrant boats.



<h2 class="wp-block-heading" id="h-return-to-mali">RETURN TO MALI</h2>



Spain is also planning a return to Mali following the closure of the EU military mission there last May. While France advocated for the mission&#8217;s termination, Spain is engaged in discussions with Bamako over bilateral military aid, according to a senior Spanish military officer.



&#8220;We cannot leave the ground empty for Russian forces to occupy. It is important to maintain a presence in the region,&#8221; the officer, who requested anonymity, told Reuters.



The Spanish mission could continue the training of the previous European mission, the source said.



Spain&#8217;s Defence Ministry confirmed that it was in talks over collaboration with Mali without providing further details.



Spain is advocating at the EU and NATO for a stronger focus on the global south, especially the Sahel, in light of the migration surge.



Jesus&nbsp;Nunez&nbsp;Villaverde, co-director of the Institute for Conflict Studies and Humanitarian Action, said that to resolve the Sahel&#8217;s problems, poverty and the effects of climate change need to be addressed.



&#8220;The solution is not military aid, which is a repetition of a failed model. A different kind of aid is needed,&#8221; he said.



Years of Islamist conflict in the Sahel have fuelled a humanitarian crisis with more than 3.1 million people displaced from their homes in Mali, Burkina Faso and Niger as of July, according to the International Organization for Migration (IOM).



In Mali, economic troubles have also worsened since the ruling junta seized power in 2020.



The conflict, unemployment and the impact of climate change on farming communities are the main drivers behind Malians&#8217; motivations to migrate, said Ousmane Diarre, head of a Malian NGO that defends migrant rights.



Moussa Diaby Wage, a 20-year-old from Mali, arrived in&nbsp;the&nbsp;Canaries in 2020&nbsp;in a boat from&nbsp;Mauritania.



Having secured Spanish nationality, his dream is to join the army. Meanwhile, he helps other migrant children in a centre for minors in Tenerife. Of the 50 teenagers living there, 30 came from Mali.



&#8220;We came here because Mali is at war, there is a lot of fighting in the north and many people have to make the decision to leave,&#8221; he told Reuters. &#8220;Most of those who come are young, very young, because it&#8217;s the only way to get a chance (in life)&#8221;.



(Reporting by Corina Pons in Canary Islands; Fadimata Kontao in Bamako; Belén Carreño in Madrid and Joan Faus in Barcelona; editing by Charlie Devereux and Angus MacSwan)

Spain’s PM Sanchez to hold press conference, in Madrid

Spain’s Sanchez visits West Africa aiming to stem migration surge

<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/ONNVXT2PNJOPTD2RGQADDQM6PQ-820x547.jpg" alt="" class="wp-image-523490" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Presidential candidate from the ruling New Patriotic Party (NPP) and Ghana&#8217;s Vice President, Dr. Mahamudu Bawumia, delivers a speech next to a poster with his picture, during his campaign launch event ahead of the 2024 presidential election in Accra, Ghana, February 7, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Aug 26 (Reuters)&nbsp;&#8211;&nbsp;The two main contenders in Ghana&#8217;s presidential election have launched duelling manifestos promising fiscal stability, jobs and a path out of the country&#8217;s worst economic downturn in a generation.



Voters will head to the polls on Dec. 7 to elect a successor to President Nana Akufo-Addo, who is stepping down at the end of the two terms he is allowed to serve as head of the West African gold, oil and cocoa-producing nation.



The election will pit ex-president John Dramani Mahama of the main opposition National Democratic Congress party against Vice President Mahamudu Bawumia, an economist and former central banker, from Akufo-Addo&#8217;s ruling New Patriotic Party.



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



Frustrations about economic hardship have tainted Akufo-Addo&#8217;s presidency. Ghana defaulted on most of its $30 billion external debt in 2022 &#8211; the culmination of years of overstretched borrowing compounded by the COVID pandemic, the knock-on impacts of the war in Ukraine and a rise in global interest rates.



The government sought help from the International Monetary Fund and is now restructuring its debt as a condition for a $3 billion support package.



Both Mahama and Bawumia laid out their policy promises over the weekend ahead of a vote analysts predict to be tight two-man contest, even though others are running.



Mahama, 65, vowed to scrap first-year university fees to boost tertiary education and reduce taxes during his first three months in office.



&#8220;I will lead a ruthless war against corruption&#8221; and recover misappropriated assets, he told supporters in the south central city of Winneba on Saturday.



Mahama invested heavily in infrastructure during his 2013-17 presidency but drew criticism over power shortages, economic instability and alleged state corruption. He was never directly accused of wrongdoing but oversaw the government that was. His government denied wrongdoing.



NPP critics say graft continued and grew worse under Akufo-Addo&#8217;s administration. His administration has also denied wrongdoing.



Bawumia promised to simplify the tax system, almost halve the number of ministers and cut public spending by 3% of GDP.



Addressing reporters in the capital Accra on Sunday, he outlined a plan to provide digital training to one million young people to help them find jobs.



Both candidates are from northern Ghana, a long-standing NDC stronghold in which the NPP has made inroads over the past years.



(Reporting by Maxwell Akalaare Adombila; Editing by Sofia Christensen, Portia Crowe and Alison Williams)

ONNVXT2PNJOPTD2RGQADDQM6PQ

Ghana presidential contenders promise to ease hardship as campaign ramps up

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-820x462.jpeg" alt="" class="wp-image-523407" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">This photo taken from a position in northern Israel shows a Hezbollah UAV intercepted by Israeli air forces over north Israel on August 25, 2024. The Israeli military announced early August 25, 2024 that it was conducting pre-emptive strikes in Lebanon after detecting preparations for “large-scale” attacks by the Iran-backed militant group Hezbollah. Hezbollah said it had launched more than 320 rockets at Israel overnight, targeting a string of military positions, even as Israel’s military said it was carrying out pre-emptive strikes against the group.  Jalaa Marey | Afp | Getty Images</figcaption></figure>



Tensions in the Middle East and the risk of a wider conflict will keep oil prices elevated, said Vivek Dhar, mining and energy commodities strategist at the Commonwealth Bank of Australia.



Oil prices rose on Monday after Israel’s Air Force struck targets in Lebanon with over 100 fighter jets before the Iran-backed group fired more than 320 rockets into Israel.



U.S. West Texas Intermediate crude was up 0.75% at $75.39 a barrel, while Brent crude rose 0.67% to $79.55.



Iran-backed Hezbollah said the strikes were in retaliation to Israel’s killing of senior commander Fuad Shukr in Beirut last month. Israel said its pre-emptive strikes were aimed at foiling a bigger attack by the Hezbollah, Reuters reported.



“While market expectations are centered on Iran’s attack hurting Israel without triggering a wider regional conflict, Israel’s response will be equally important. And Israel’s response may include an attack on Iran’s oil supply and related infrastructure, which would put at risk 3 &#8211; 4% of global oil supply,” Dhar said.



Cedric Chehab, managing director and head of global risk at research firm BMI said the exchange of fire on Sunday does not mean that an “all-out war” is imminent.



Speaking to CNBC’s “Squawk Box Asia,” Chehab said that “what Hezbollah wanted to do, what Iran wanted to do, was to essentially allow for deterrence. So, [to] exercise that deterrence, and they’ve done that.”



While there is a risk that the confrontation spirals out into a wider conflict, there is still room for de-escalation, he added.



Both Israel and Iranian leaders “do not want this to get out of hand and to escalate &#8230; don’t forget, Iran has a new president who’s untested, and the idea is to apply pressure on Israel, but not necessarily engage in direct confrontation.”



While Dhar agreed with Chehab’s view that the events on Sunday are unlikely to be the catalyst for an all-out war in the region, he pointed out Iran has yet to retaliate against Israel following the assassination of Ismail Haniyeh, the political chief of Hamas, in Tehran last month.



Dhar also said the progress of Gaza truce talks will be an indicator of how Iran, Hezbollah, and Hamas interpret the events over the weekend.



Early Monday, Reuters reported that there was no agreement over ceasefire in talks on Sunday regarding the Gaza conflict, with Egyptian security sources telling the agency that neither Hamas nor Israel agreed to proposals presented by mediators in Cairo.



Dhar added while the escalation hurts truce talks at face value, the fact that Israel managed to thwart Hezbollah “may force Iran and its proxies to concede that Israel is in a position of power, particularly with U.S. backing, making the truce talks more palatable.”



He also forecasts that Brent futures will trade between $75 and $85 a barrel in September, with more potential upside if hopes for a truce in Gaza diminish, and as an Iranian reprisal against Israel is still “on the cards.”



“More broadly, the risk of a wider conflict in the Middle East that permanently embroils Iran is an upside risk to our outlook.”

108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK

Oil prices to remain elevated as Middle East tensions threaten a wider conflict, CBA analyst warns

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-scaled.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-scaled.jpeg 2048w, 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-820x547.jpeg 820w, 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" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><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>



Federal Reserve Chair Jerome Powell laid the groundwork Friday for interest rate cuts ahead, though he declined to provide exact indications on timing or extent.



“The time has come for policy to adjust,” the central bank leader said in his much-awaited keynote address at the Fed’s annual retreat in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”



Watch live: Fed Chair Jerome Powell speaks from Jackson Hole conference



With markets awaiting direction on where monetary policy is headed, Powell focused as much on a look back at what caused the inflation that led to an aggressive series of 13 rate hikes from March 2022 through July 2023.



However, he did note the progress on inflation and said the Fed can now turn its focus equally to other side of its dual mandate, namely to make sure the economy stays around full employment.



“Inflation has declined significantly. The labor market is no longer overheated, and conditions are now less tight than those that prevailed before the pandemic,” Powell said. “Supply constraints have normalized. And the balance of the risks to our two mandates has changed.”



He vowed that “we will do everything we can” to make sure the labor market says strong and progress on inflation continues.



Stocks added to gains as Powell began to speak while Treasury yields dropped sharply.



“This was a valedictory of essentially Chair Powell turning the page, saying the mission, which has been focused on inflation for the last two years, has been successful,” economist Paul McCulley, the former Pimco managing director, said on CNBC’s “Squawk on the Street.”



<h2 class="wp-block-heading" id="h-sees-progress-towards-goals"><a></a>Sees progress towards goals</h2>



The speech comes with the inflation rate consistently drifting back to the Fed’s 2% target though still not there yet. A gauge the Fed prefers to measure inflation most recently showed the rate at 2.5%, down from 3.2% a year ago and well off its peak above 7% in June 2022.



At the same time, the unemployment rate has slowly but consistently climbed higher, most recently at 4.3% and in an area that otherwise would trigger a time-tested indicator of a recession. However, Powell attributed the rise in unemployment to more individuals entering the workforce and a slower pace of hiring, rather than a rise in layoffs or a general deterioration in the labor market.



“Our objective has been to restore price stability while maintaining a strong labor market, avoiding the sharp increases in unemployment that characterized earlier disinflationary episodes when inflation expectations were less well anchored,” he said. “While the task is not complete, we have made a good deal of progress toward that outcome.”



Markets are expecting the Fed to start cutting in September, though Powell made no mention of when he thinks policy easing will begin. Minutes from the July open market committee meeting, released Wednesday, noted that a “vast majority” of officials believe a September cut will be appropriate so long as there are no data surprises.



In addition to assessing the current state of play, Powell took considerable time in the speech to evaluate what led to the surge in inflation — hitting its highest level in more than 40 years — as well as the Fed’s policy response and why price pressures have eased without a recession.



<h2 class="wp-block-heading" id="h-good-ship-transitory"><a></a>‘Good ship Transitory’</h2>



When inflation first began to rise in early 2021, he and his colleagues — as well as many Wall Street economists — dismissed it as “transitory” and caused by Covid-related factors that would abate.



“The good ship Transitory was a crowded one,” Powell quipped to laughter form attendees, “with most mainstream analysts and advanced-economy central bankers on board. I think I see some former shipmates out there today.”



When it became clear that inflation was spreading from goods to services, the Fed pivoted and began hiking, ultimately adding 5.25 percentage points to its benchmark overnight rate that had been around zero following emergency cuts in the early pandemic days.



The rise in inflation, Powell said, was “a global phenomenon,” the result of “rapid increases in the demand for goods, strained supply chains, tight labor markets, and sharp hikes in commodity prices.”



He attributed confidence in the Fed and well-anchored expectations that inflation ultimately would ease to the economy avoiding a sharp downturn during the hiking cycle.



“The FOMC did not flinch from carrying out our responsibilities, and our actions forcefully demonstrated our commitment to restoring price stability,” he said. “An important takeaway from recent experience is that anchored inflation expectations, reinforced by vigorous central bank actions, can facilitate disinflation without the need for slack.”



Powell added that there is still “much to be learned” from the experience.



“That is my assessment of events. Your mileage may differ,” he said.

107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed

Fed Chair Powell indicates interest rate cuts ahead: ‘The time has come for policy to adjust’

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="520" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI.jpg" alt="" class="wp-image-522413" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI-768x499.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: Dr. Pascaline Kahindo, checks the treatment progress on the feet of patient Ajuamungu Ntuyehe, undergoing the treatment of Mpox &#8211; an infectious disease caused by the monkeypox virus that sparks off a painful rash, enlarged lymph nodes and fever; at the treatment centre in Munigi, following Mpox cases in Nyiragongo territory near Goma, North Kivu province, Democratic Republic of the Congo July 19, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



BERLIN/BRUSSELS, Aug 23 (Reuters)&nbsp;&#8211;&nbsp;The German government is examining whether any available national mpox vaccine doses could be donated, the health ministry said in a status report for August that was seen by Reuters on Friday.



The ministry said it has given its remaining stock of the Jynneos vaccine to the defence ministry and the German army.



The federal government has around 117,000 doses of Jynneos, which is being stockpiled by the German army, after Berlin procured it in 2022, a ministry spokesperson said this week.



International aid measures, such as donations from the European Commission, are underway, though details need to be clarified both in Europe and locally, the ministry added.



The European Union has urged its members to coordinate their donations of mpox vaccines to African countries, rather than do this individually. The European Commission has a joint procurement contract with vaccine maker Bavarian Nordic&nbsp;BAVA.CO, to buy vaccines for donations.



&#8220;European donations will have more immediate impact if they are coordinated,&#8221; EU Health Commissioner Stella Kyriakides said in a letter dated Aug. 22 that was addressed to the health ministers of EU countries.



Germany so far has no reported cases of the clade 1 strain of mpox that has triggered global concern due to the ease with which it spreads though routine close contact, it said.



The ministry added that the government was closely monitoring the situation but it did not see an increased risk from clade 1 in Germany, which it assumes could also be contained effectively with the currently available mpox vaccines.



(Reporting by Christian Kraemer and Kate Abnett; Writing by Miranda Murray; Editing by Andrey Sychev and Shounak Dasgupta)

Children at risk as mpox variant hits Congo displacement camps

Germany examining whether any available mpox vaccines could be donated

<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/GettyImages-2162879043-820x547.jpg" alt="" class="wp-image-522325" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2162879043-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2162879043-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2162879043-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2162879043-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2162879043-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2162879043-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">BUDAPEST, HUNGARY &#8211; JULY 21: Lewis Hamilton of Great Britain and Mercedes waves to the crowd on the drivers parade prior to the F1 Grand Prix of Hungary at Hungaroring on July 21, 2024 in Budapest, Hungary. (Photo by Dean Mouhtaropoulos/Getty Images)</figcaption></figure>



ZANDVOORT, Netherlands, (Reuters) &#8211; Lewis Hamilton said on Thursday the time was right for a Formula One race in Africa and he was working behind-the-scenes with Rwanda and South Africa to try to make it happen.



The seven-times world champion spoke to reporters at the Dutch Grand Prix after visiting Africa during the sport&#8217;s August break.



&#8220;The time&#8217;s 100% right. We can&#8217;t be adding races in other locations and continue to ignore Africa, which the rest of the world just takes from. No one gives anything to Africa,&#8221; said the Mercedes driver.



&#8220;I think having a Grand Prix there will really be able to highlight just how great the place is and bring in tourism and all sorts of things. Why are we not on that continent?



&#8220;There is at least one track that&#8217;s ready. In the short term, we should just get on that track and have that part of the calendar, and then work on building out something really cool.&#8221;



Formula One has long wanted to return to Africa for the first time since South Africa&#8217;s Kyalami circuit last hosted a race in 1993, but financial issues have been a major obstacle.



Formula One chief executive Stefano Domenicali said this month that Rwanda wanted to host a race at a permanent circuit, yet to be built, and there would be further discussions in September.



Hamilton, Formula One&#8217;s first and only Black driver, said he would also be speaking with Domenicali.



&#8220;Rwanda is one of my favourite places I&#8217;ve been to actually. I&#8217;ve been doing a lot of work in the background on it,&#8221; said the Briton.



&#8220;I&#8217;ve spoken to people in Rwanda, I&#8217;ve spoken to people in South Africa. That&#8217;s a longer project, Rwanda, but it&#8217;s amazing that they&#8217;re so keen to get a part of it.&#8221;



The 39-year-old Briton has made several visits to Africa with the United Nations refugee agency UNHCR and his latest trip took him to Morocco, Senegal, Benin, Mozambique and Madagascar.



&#8220;I&#8217;m still digesting the trip to be honest. Going to a refugee camp and seeing the work that is being done there and how people who are displaced are affected,&#8221; he said.



&#8220;It&#8217;s one thing reading about it, or hearing on the news, but actually seeing and speaking to kids who are walking 10km to get to school just to have an education and then 10k back and not having school meals and being able to eat during the day.



&#8220;That was really heavy to see and experience and then the history of Senegal and seeing the slave areas was really heavy as well.



&#8220;Through all those experiences I feel it&#8217;s just adding to my compass of what I want to do moving forwards,&#8221; said Hamilton.



(Reporting by Alan Baldwin, editing by Clare Fallon)

F1 Grand Prix of Hungary

Hamilton working with Rwanda and South Africa on F1 race plans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107284465-1691669496096-gettyimages-1603825613-dsc05537_eh8zi6qn-820x461.jpeg" alt="" class="wp-image-522307" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107284465-1691669496096-gettyimages-1603825613-dsc05537_eh8zi6qn-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107284465-1691669496096-gettyimages-1603825613-dsc05537_eh8zi6qn-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107284465-1691669496096-gettyimages-1603825613-dsc05537_eh8zi6qn-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107284465-1691669496096-gettyimages-1603825613-dsc05537_eh8zi6qn-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107284465-1691669496096-gettyimages-1603825613-dsc05537_eh8zi6qn-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107284465-1691669496096-gettyimages-1603825613-dsc05537_eh8zi6qn.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Grocery items are offered for sale at a supermarket on August 09, 2023 in Chicago, Illinois.  Scott Olson | Getty Images</figcaption></figure>



Contrary to what many believe, investment research firm BCA Research sees that the economy is on the cusp of a recession, and the predicted upcoming U.S. Federal Reserve rate cuts will not be sufficient to steer markets out of it.



“Every single one of us now believes there’s a recession, and that’s exactly the opposite of what the market believes,” Garry Evans, BCA Research’s chief strategist of global asset allocation told CNBC’s “Squawk Box Asia.”



Evans pointed to signs of the economy slowing down, including what he called the “deteriorating” U.S. labor market. The U.S. Labor Department reported that the unemployment rate inched to 4.3% in July to its highest since October 2021, and a gauge for U.S. manufacturing activity fell to an eight-month low in the same month.



“There’s things that are breaking down quite rapidly now,” said the strategist.



The Fed funds futures market suggests that investors are expecting at least three rate cuts by the end of the year, according to the CME FedWatch Tool.



But according to Evans, that will not move the needle much on his projections.



“A few rate cuts are not going to prevent a recession. Average recession is 10 months… It takes something like a year before fed cuts actually start to give a boost to the economy,” he said.



“The market believes that the fed fund rate at the end of next year will be 3%. It’s currently at 5.3%. That will not happen unless there is a recession,” he added.



A recession typically occurs when there are two consecutive quarters of decline in a country’s real GDP.



Traders are also keeping their eye on the annual economic policy symposium in Jackson Hole this week, which could offer greater clarity on the interest rate outlook, with Fed Chair Jerome Powell set to speak at the gathering on Friday.



The U.S. economy has remained robust even amid ongoing inflation and elevated interest rates.



In the last century, there have been more than a dozen recessions, some lasting as long as a year and a half.



Although the U.S. isn’t officially in a recession, a survey conducted by Affirm reveals that about 3 out of 5 Americans think it is.

107284465-1691669496096-gettyimages-1603825613-dsc05537_eh8zi6qn

A recession is coming in the U.S., and ‘a few rate cuts’ won’t prevent it, says strategist

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="531" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-820x531.jpg" alt="" class="wp-image-496289" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-820x531.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A building of the Bank of Botswana is seen in the capital Gaborone in Botswana, in this November 26, 2015 file photo. REUTERS/Siphiwe Sibeko</figcaption></figure>



GABORONE, Aug 22 (Reuters)&nbsp;&#8211;&nbsp;Botswana&#8217;s central bank lowered its key lending rate for the second meeting in a row on Thursday, saying there was scope to ease monetary policy as the economy continued to operate below capacity.



Bank of Botswana lowered its Monetary Policy Rate by a further 25 basis points to 1.90% after reducing it by 25 bps in June.



In a news conference explaining the decision, central bank Governor Cornelius Dekop reiterated his previous comments that Botswana&#8217;s economy was forecast to operate below capacity in the medium term, failing to generate demand-driven inflationary pressures.



&#8220;As a result, the prevailing economic conditions and outlook provide scope for easing of monetary policy,&#8221; Dekop added. &#8220;Our aim is that this will assist in stimulating economic growth.&#8221;



The southern African country&#8217;s consumer inflation quickened to 3.7% year on year in July from 2.8% in June, but stayed within the Bank of Botswana&#8217;s 3% to 6% medium-term target range.



Inflation is expected to average 3.0% in 2024, Dekop said, down from 3.6% the bank forecast at its June meeting.



(Reporting by Brian Benza; Writing by Tannur Anders; Editing by Alison Williams, Bhargav Acharya and Toby Chopra)

File photo of building of the Bank of Botswana in the capital Gaborone in Botswana

Botswana central bank cuts interest rate again by 25 basis points

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="900" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096.jpeg" alt="" class="wp-image-521928" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096.jpeg 1600w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-1536x864.jpeg 1536w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



The U.S. 10-year Treasury rose on Thursday as dovish minutes from the latest Federal Reserve meeting and a large revision lower in preliminary payrolls data bolstered expectations of an interest rate cut next month.



The yield on the 10-year Treasury was up more than 2 basis points at 3.799%, while the yield on the 2-year Treasury was roughly 1 basis point higher at 3.929%.



Yields and prices move in opposite directions. One basis point equals 0.01%.



Market participants are firmly pricing in an interest rate cut at the U.S. central bank’s next meeting. Traders are currently pricing in a roughly 66% chance of a 25-basis-point rate cut in September, with just over one-third pricing in a 50-basis-point rate cut, according to the CME Group’s FedWatch Tool.



It comes shortly after the summary of minutes from the Fed’s July meeting said that the “vast majority” of participants “observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting.”



Investors on Wednesday also reacted to a significant downward revision to U.S. hiring figures, which showed there were 818,000 fewer jobs than originally reported in the 12-month period through March 2024.



Attention now turns to comments made at the annual Jackson Hole symposium that kicks off on Thursday. Federal Reserve Chair Jerome Powell is scheduled to speak on Friday.



On the data front, the latest reading of weekly initial jobless claims will be released at around 8:30 a.m. ET on Thursday.



A flash reading of manufacturing purchasing managers’ index (PMI) for August and services PMI for August, existing home sales data for July and the Kansas City Fed’s survey for August will all follow slightly later in the session.



— CNBC’s Alex Haring, Sophie Kiderlin &amp; Jesse Pound contributed to this report.

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featured

Namibian asset demand soars ahead of election and amid oil discoveries

Insecurity, rising costs push 31 mln Nigerians into acute food shortage, study says

New mpox strain is changing fast; African scientists are ‘working blind’ to respond

South African private power producers seek fair deal over output curbs

AfCFTA Secretary General Laments S. Africa’s Absence from Flagship African payments system

Nigeria’s NNPC sending LNG cargoes to Japan and China

Europe markets rise as investors weigh economic, geopolitical outlook; UK markets reopen

Nigeria’s president appoints new security and intelligence chiefs

Spain’s Sanchez visits West Africa aiming to stem migration surge

Ghana presidential contenders promise to ease hardship as campaign ramps up

Oil prices to remain elevated as Middle East tensions threaten a wider conflict, CBA analyst warns

Fed Chair Powell indicates interest rate cuts ahead: ‘The time has come for policy to adjust’

Germany examining whether any available mpox vaccines could be donated

Hamilton working with Rwanda and South Africa on F1 race plans

A recession is coming in the U.S., and ‘a few rate cuts’ won’t prevent it, says strategist

Botswana central bank cuts interest rate again by 25 basis points

Treasury yields rally as Federal Reserve signals readiness for September rate cut

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