<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="565" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-820x565.jpg" alt="" class="wp-image-521910" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-820x565.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-768x529.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-1536x1058.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Samburu pastoralist slaughter livestock in the de-stocking of emaciated animals in a program by the government and the Kenya Red Cross to buy livestock, slaughter and distribute the meat as relief food to the most affected families following a prolonged drought near Lengusaka in Wamba, Samburu county, Kenya July 27, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



KILIFI COUNTY, Kenya, Aug 22 (Thomson Reuters Foundation)&nbsp;&#8211;&nbsp;When farmer Teresa Kahindi harvested nearly two tonnes of maize two years ago amid a severe drought, her neighbours in the Kenyan coastal county of Kilifi accused her of witchcraft.



Many of her fellow farmers had not produced even a single sack, weighing about 90 kg, of the staple, during the fifth consecutive season of almost no rain in eastern Kenya, where arid conditions can devastate harvests.



&#8220;They said I was a witch,&#8221; said Kahindi, 53, while strolling through her fields of black-eyed peas, mung beans, cassava, finger millet and sunflowers.&#8221;But it&#8217;s not true. We can&#8217;t farm like we used to do. Now we must rely on climate forecasts.&#8221;



Kahindi&#8217;s drought-defying harvest was thanks to a sophisticated early-warning system that includes cutting-edge meteorological data, radio and text alerts and on-the-ground teams that ensure communities can take pre-emptive action to avoid crop losses.



In March 2022, a month before the rainy season was due to begin, Kahindi was advised to adapt her plans at a seminar for farmers run by county officials.



She prepared her plots with manure to enhance water retention, covered the soil with dry grass mulching to reduce evaporation and planted drought-tolerant maize seeds, which require less water and mature faster than other varieties.



&#8220;Knowledge can transform farming,&#8221; says Kahindi.



Kenya&#8217;s early warning system, funded by the government and a patchwork of international agencies, may offer a template for countries to meet the United Nation&#8217;s 2022 goal to protect &#8220;all people on Earth&#8221; by 2027 through early warning systems.



The U.N. launched the Early Warnings for All Action Plan for Africa in Kenya&#8217;s capital of Nairobi last year in an effort to accelerate a slow rollout in other parts of the continent.



&#8220;In terms of early warning, Kenya stands out as a big brother for East Africa,&#8221; said Zablon Shilenje, the World Meteorological Organization&#8217;s coordinator for Africa.



<h2 class="wp-block-heading" id="h-reducing-famine-risk">REDUCING FAMINE RISK</h2>



As extreme weather events increase due to manmade climate change, the Kenyan model allows farmers to switch agricultural techniques or the crops they cultivate to adapt to predicted conditions, such as intense droughts or heavy floods.



Between 2020 and 2022, the Horn of Africa suffered its worst drought in at least 70 years, exacerbated by the climate phenomenon La Niña. Some 23 million people required humanitarian aid at a cost of more than $1.8 billion.



More people will be exposed to drought as the region&#8217;s population is set to double to 400 million by 2055.



Food security experts say Kenya&#8217;s early warning system has mitigated the impact of disasters – in turn minimising the likelihood of famine in one of the world&#8217;s most food insecure regions.



Between 2010 and 2011, when repeated droughts struck the East African nation, 2.8 million Kenyans were left &#8220;severely hungry.&#8221;



Thanks to early warnings, a million fewer people suffered during similar droughts in 2016 and 2017, even as the U.S. government halved its spending on food aid, according to a report by the U.S. Agency for International Development, or USAID.



The effort to predict droughts dates back to 1985 with the founding of the Famine Early Warning Systems Network (FEWS NET), a USAID-funded programme that began in the aftermath of a catastrophic Ethiopia famine but now covers more than 50 countries.



Supported by Kenya&#8217;s National Drought Management Authority (NDMA) and Agriculture Ministry, as well as international NGOs, the system uses high-resolution satellite, crop and other climate data to predict the risk of drought, sometimes up to eight months in advance.



Local authorities interpret, verify and communicate forecasts to millions of farmers through radio, television, SMS and WhatsApp messages and sometimes provide them with subsidised fertilisers and seeds.



&#8220;We are able to foresee severe events in a timely manner,&#8221; said David Gikungu, director of the Kenya Meteorological Department.



<h2 class="wp-block-heading" id="h-come-a-long-way">&#8216;COME A LONG WAY&#8217;</h2>



Advances in data collection, modelling and satellite monitoring have helped make early warning more reliable over the years, said Chris Funk, director of the Climate Hazards Center at UC Santa Barbara, which processes most of FEWS NET&#8217;s data.



Other improvements include an understanding of the complex climatic conditions that drive drought in the Horn of Africa and the region&#8217;s communications infrastructure.



&#8220;We&#8217;ve really come a long way,&#8221; Funk said. &#8220;We have an impressive suite of tools now. It&#8217;s been successful in stopping people from starving.&#8221;



A study of FEWS NET data by U.S. researchers found 92 percent of early warnings in Kenya were accurate, aided by better monitoring of socioeconomic factors, such as food prices and violent conflict.



While Kenya&#8217;s early warning system is now highly accurate at predicting natural disasters, critics say decisionmakers don&#8217;t always act on time or with enough financial support.



&#8220;Unless the government and other stakeholders put up the resources, then it can&#8217;t work,&#8221; said James Odour, NDMA&#8217;s director from 2012 to 2022.



&#8220;Unless action is taken on the early warning, then it&#8217;s pointless.&#8221;



Nelson Mutanda, responsible for early warning systems at the NDMA, said the government instructed counties to allocate 2% of their annual budgets to early warning and gave local authorities the responsibility of managing funds.



&#8220;Counties have enough budget (to fund early warnings),&#8221; he said. &#8220;But some don&#8217;t prioritise it. They can&#8217;t come crying to us for support just because they haven&#8217;t properly prepared.&#8221;



He added: &#8220;And we expect farmers who are capable should take initiative without waiting for funding.&#8221;



<h2 class="wp-block-heading" id="h-last-mile">&#8216;LAST MILE&#8217;</h2>



Research suggests pre-emptive intervention can save billions of dollars. A 2022 report by the World Bank found that spending $1 billion on early warnings can avert $35 billion of disaster-related losses annually.



Another major challenge is disseminating warnings to rural populations.



In Kenya&#8217;s southern county of Kajiado, home to the pastoralist Indigenous Maasai, drought warnings may not be understood, due to illiteracy rates, or sometimes are not even delivered when there are gaps in government or humanitarian resources.



&#8220;I need help, I would accept training,&#8221; said Ole Mwato, a 46-year-old Maasai who lost 20 cows and 80 goats in the 2020-2022 droughts.



&#8220;It&#8217;s a lot of pain to lose the animals. There was no grass, no water. That&#8217;s why they died.&#8221;



Others are resistant to undertaking laborious tasks, such as digging pits to retain water, seeing it as a potential waste of time because past forecasts were unreliable or traditional cultural beliefs that say the rains are controlled by the gods.



To improve forecast accuracy, 50 low-cost, 3D-printed automatic weather stations, capable of sending highly accurate meteorological data every 15 minutes, are being installed by FEWS NET across Kenya, including three in Kilifi.



For now, Kahindi is leading by example, encouraging local farmers to adapt their methods to future weather in order to maximise yields.



&#8220;We must work together to beat famine,&#8221; she said.



(Reporting by Peter Yeung; Editing by Ayla Jean Yackley. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.)

In northern Kenya, drought may keep some herders from voting in Samburu

In Kenya, drought-weary farmers reap rewards of early warnings

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1.jpeg" alt="" class="wp-image-521657" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">Colorized transmission electron micrograph of mpox virus particles (red) found within an infected cell (blue), cultured in the laboratory. Bsip | Universal Images Group | Getty Images</figcaption></figure>



An escalating mpox outbreak is causing alarm among some health experts, who warn that the latest strain of the virus could be more fast-spreading and deadly than an early 2022 outbreak.



The World Health Organization last week declared mpox a global public health emergency following the spread of an outbreak in the Democratic Republic of Congo (DRC) to neighboring countries.



Since the new outbreak, cases have been identified in countries where mpox is not endemic, such as Sweden, Pakistan and Thailand — although its unclear which strain has been unidentified in some of these nations.



Mpox is a viral infection which spreads through close contact and causes flu-like symptoms and lesions filled with pus. While usually mild, it can be fatal.



The WHO’s director for Europe, Dr. Hans Kluge, said Tuesday that the outbreak is “not the new Covid” and that it can be stopped with international cooperation.



But health experts have warned of the “many unknowns” surrounding the latest outbreak — and in particular a new subvariant — which could make it harder to contain.



“Clade 1b has recently emerged and there are many unknowns that need to be addressed,” said Trudie Lang, professor of global health research and director of The Global Health Network at the University of Oxford.



“There is emerging evidence of differences in transmission and symptoms; such as more commonly passed person to person and from mothers to their babies in pregnancy,” she said.



There are broadly two types of of mpox, known as clades, with the latest outbreak identified as clade 1. Compared with the 2022 strain, clade 2, the current strain, appears to spread more easily and has a higher fatality rate.



A newly identified clade 1b subvariant has been found to be particularly prevalent among young people and appears to be spreading through sexual networks, Jonas Albarnaz, a research fellow specializing in poxviruses at The Pirbright Institute, said.



However, he noted more data is needed to understand its transmission dynamics and to “inform the control strategies.”



<h2 class="wp-block-heading" id="h-more-vulnerable-countries">More vulnerable countries</h2>



Clade 1 is already known for causing more severe disease in young children, pregnant women and immunocompromised people. That has hastened the outbreak in countries where certain health conditions are more prevalent and those with poorer health-care systems.



“As mpox disease is more severe in immunocompromised individuals, it is also a concern that the current outbreak is taking place in a region where HIV prevalence is relatively high but access to antiretroviral drugs is poor,” said Brian Ferguson, associate professor of immunology at the University of Cambridge.



Ongoing conflicts in parts of Africa — such as the DRC, where a large number of displaced people have relocated to refugee camps — have also worsened sanitation conditions and accelerated the spread.



So far this year, more than 15,000 cases and at least 537 deaths have been reported from the outbreak in the DRC, according to the WHO, with more cases reported elsewhere.



Ferguson said that more cases are likely to be identified in the coming days and weeks given the lack of controls in place to prevent the spread from country to country. He also said that lessons had not been learned from the prior outbreak, which was declared a public health emergency in July 2022 before the designation was removed in May 2023.



“The lack of activity in the intervening period has resulted in what could now become a new global outbreak. There should have been a greater effort to produce and distribute vaccines to the affected areas, but this has not happened,” he said.



<h2 class="wp-block-heading" id="h-vaccines-for-younger-people"><a></a>Vaccines for younger people</h2>



Danish biotech firm Bavarian Nordic, one of the only companies with an approved mpox vaccine, said Tuesday that it would decide this week whether to ramp up production of its jab even before having orders lined up, according to Reuters.



That comes after the company on Friday submitted data to the European Union’s drug regulator to extend the use of its mpox vaccine for adolescents.



CEO Paul Chaplin told CNBC at the time that obtaining approval for 12- to 17-year-olds would be crucial in tackling the outbreak of the latest strain of the virus.



“More than 70% of the cases in Africa currently are in people younger than 18, so it’s going to be critical that our vaccine can be used in this younger age group,” he said.

108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024

Why the latest mpox outbreak is raising alarm among health experts

<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-1556188599-820x547.jpg" alt="" class="wp-image-521585" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The headquarters of the National Bank of Rwanda, Rwanda&#8217;s central bank, in the Nyarugenge district of Kigali, Rwanda on Thursday, July 20, 2023. The World Bank cut Rwanda&#8217;s GDP growth estimate to 5.8% from 6.2%, as it expected flooding during April and May to result in slowed economic expansion. Photographer: Bing Guan/Bloomberg via Getty Images</figcaption></figure>



KIGALI, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s central bank lowered its key interest rate by 50 basis points to 6.5% on Wednesday, its second cut in a row, saying inflation was projected to remain within its target band at around 5% on average.



The decision follows a 50 basis point cut to the National Bank of Rwanda&#8217;s Central Bank Rate in May.



Annual inflation peaked at 21.7% in November 2022 and has remained under 6% since the start of this year. It dipped to 4.9% in July, well within policymakers&#8217; 2%-8% target range.



&#8220;Inflation is expected to remain within our band and around our medium objective of 5% for this year 2024 and for next year 2025,&#8221; Governor John Rwangombwa told a news conference.



He added the bank&#8217;s monetary policy committee had the same inflation projections as at its May meeting.



On the economy, Rwangombwa said growth had been strong in the second quarter and was projected to remain so in the third quarter, building on the first quarter&#8217;s 9.7% growth.



Among inflation risks, Rwangombwa cited heightened geopolitical tensions affecting commodity prices and adverse weather conditions impacting food prices.



(Reporting by Philbert Girinema; Writing by Hereward Holland; Editing by Alexander Winning and Christina Fincher)

Rwandan Economy as World Bank Cuts Growth Estimate on Floods

Rwanda central bank lowers key rate for second meeting in a row

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1396" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-scaled.jpg" alt="" class="wp-image-521563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-820x559.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-1536x1047.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">File photo: A shopper looks at items at a grocery store in Johannesburg, South Africa, June 8, 2017. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s inflation dropped more than&nbsp;forecastto a three-year low in July, nearing the level the central bank aims for and cementing analysts&#8217; expectations for an interest rate cut&nbsp;next month.



Consumer inflation fell to 4.6% year on year in July from 5.1% in June, statistics agency data showed on Wednesday, whereas analysts polled by Reuters had forecast annual inflation of 4.9% last month.



The South African Reserve Bank likes to see inflation around 4.5%, the midpoint of its 3% to 6% target range, but it has been above that level since mid-2021.



Before the latest inflation print, most economists in a Reuters poll had predicted the SARB would reduce its main interest rate by 25 basis points at its next policy announcement on Sept. 19, and a cut now looks more likely.



&#8220;The SARB has definitely run out of excuses to not cut interest rates&#8230; and might have to consider a bigger cut,&#8221; independent economist Elize Kruger said.



July&#8217;s data &#8220;seals the deal&#8221; on a September rate cut, said David Omojomolo, Africa economist at Capital Economics, adding he thought inflation could fall below 4% by the end of the year.



The central bank had said at its July meeting that it expected inflation to dip below 4.5% over the next few quarters, mainly due to falling food and fuel costs.



July&#8217;s data showed inflation for food and non-alcoholic beverages fell to 4.5% from 4.6% in June, while fuel decreased to 4.5% from 7.6% in June.



Core inflation, which excludes food and fuel, came in at 4.3% in July versus 4.5% in June, Statistics South Africa added.



(Reporting by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning, Alison Williams and Toby Chopra)

A shopper looks at items at a grocery store in Johannesburg, South Africa

South Africa inflation drop makes September rate cut more likely

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-820x462.jpg" alt="" class="wp-image-521505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shein and Temu. Yuki Iwamura | Bloomberg | Stefani Reynolds | AFP | Getty Images</figcaption></figure>



Chinese-linked fast-fashion giant Shein is suing rival Temu, alleging the retailer stole its designs and built an empire using counterfeiting, intellectual property infringement and fraud. 



The suit, filed Monday in Washington, D.C., federal court, comes as Shein itself fends off similar allegations from a wide variety of brands and independent artists, including Levi Strauss and H&amp;M. 



In its complaint, Shein alleges that Temu, owned by PDD Holdings, is “masquerading” as a legitimate online marketplace because it encourages its sellers to steal other brands’ designs and then prevents them from removing products from the platform, even after they have admitted to infringement.



“Temu draws U.S. consumers into downloading and using its mobile application with promises of extremely low pricing. But Temu is not profiting from the sale of these products, which are priced so low that Temu must subsidize each sale, losing money on every transaction,” the complaint said.&nbsp;



“Only by encouraging its sellers to infringe the intellectual property rights of others and sell counterfeit or sub-standard goods can Temu hope to minimize the massive losses it is subsidizing,” the lawsuit added.



The dueling e-tailers have taken the retail industry by storm with their ultra low-priced products and their ability to respond to trends far faster than their legacy competitors. Along the way, the two have racked up a mountain of criticism related to their labor practices, their connections to the Chinese government and their alleged use of other brands’ designs. 



As the two jockey for market share, they have taken to the courts to accuse each other of a series of scandalous allegations. Last year, Temu sued Shein over copyright concerns and allegations that it uses “mafia-style intimidation of suppliers” to bully them into exclusivity agreements. 



In Shein’s complaint, the company accused Temu of “brazen” illicit behavior. It said at least one of Temu’s employees stole “valuable trade secrets” that identified best-selling Shein products, along with internal pricing information, to help it in its efforts to compete.&nbsp;



“Armed with this stolen information, Temu then directed its sellers to copy those and other best-selling Shein products and sell knock-off versions on Temu’s website and mobile application,” the complaint said.&nbsp;



“Temu is no garden-variety infringer,” the suit said. “In order to advertise the counterfeit versions of Shein products, Temu has reproduced virtually identical copyrighted images of Shein products and used them, or instructed sellers to use them, as promotional images on the Temu website and mobile application.”



The company goes as far as to say that Temu has falsely pretended to be Shein on social media site X in an effort to “misdirect customers away from the Shein platform to the Temu platform.”&nbsp;



The complaint includes a screenshot of a Temu-sponsored Google ad that shows Shein in the headline, but Temu as the web address.&nbsp;



“To further deceive consumers, Temu has instructed its paid social media influencers to falsely claim that Temu products which are often counterfeits of Shein products are cheaper and of higher quality than genuine Shein goods,” the complaint said. “Temu has gone to great lengths to imitate Shein, including by poaching resources, employees, and suppliers from Shein.”&nbsp;



Shein’s 80-page complaint includes more than a dozen examples of clothes and designs that Temu allegedly ripped off.&nbsp;



It has asked the court to rule in its favor and enter an order that would prohibit Temu from using Shein’s confidential information, among other requests.&nbsp;



Temu did not immediately respond to CNBC’s request for comment.

108023023-1724177843627-Shein_Temu

Shein sues Temu over copyright infringement, alleges rival loses money on every sale

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-820x547.jpg" alt="" class="wp-image-421165" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The locomotive of a Transnet SOC Ltd. freight train transports wagons of coal from the Mafube open-cast coal mine, operated by Exxaro Resources Ltd. and Thungela Resources Ltd., towards Richard&#8217;s Bay coal terminal, in Mpumalanga, South Africa on Thursday, Sept. 29, 2022. South Africa relies on coal to generate more than 80% of its electricity, and has been subjected to intermittent outages since 2008 because state utility Eskom Holdings SOC Ltd. can&#8217;t meet demand from its old and poorly maintained plants. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



Aug 20 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Transnet is seeking debt relief from the government as it seeks to repair its balance sheet and restore freight rail and port capacity, the state-owned logistics firm&#8217;s chairman said on Tuesday.



Transnet is saddled with 130 billion rand ($7.30 billion) in debt and has struggled to provide adequate freight rail and port services due to equipment shortages and maintenance backlogs after years of under-investment.



Last December, South Africa&#8217;s government said it had handed Transnet a 47 billion rand guarantee facility to help the company meet &#8220;immediate liquidity matters such as settling maturity debt&#8221;.



Transnet board Chairman Andile Sangqu told journalists that the company&#8217;s debt repayments were averaging just over 1 billion rand monthly.



Part of the debt had arisen from &#8220;state capture&#8221;, Sangqu said, referencing a graft scandal which rocked South Africa&#8217;s government between 2010 and 2018 under former President Jacob Zuma and cost Transnet and other state enterprises billions of rand in corrupt procurement deals.



&#8220;We will require the assistance of the shareholder to give us some form of debt relief,&#8221; Sangqu said.



He said efforts to restore Transnet&#8217;s freight volumes under a recovery plan announced in October 2023 were being undermined by debt servicing.



&#8220;As we begin to make this increase in volumes, as we begin to generate new operational cash flows, they all get wiped out by the debt service costs,&#8221; he said.



Transnet&#8217;s freight volumes have declined to 152 million metric tons in financial year 2023/24 from 226 million tons in 2017/18.



$1 = 17.8122 rand)



(Reporting by Felix Njini; Writing by Nelson Banya; Editing by Jonathan Oatis)

Coal Freight Transportation at Mafube Collier

South Africa’s Transnet seeks debt relief from government

<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/WNOCRFRNP5PYXB42R3OBGXFHQA-1-820x547.jpg" alt="" class="wp-image-521202" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/WNOCRFRNP5PYXB42R3OBGXFHQA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Qatar Airways B777 aircraft arrives at the Cape Town International Airport, in Cape Town, South Africa, June 28, 2022. REUTERS/Shelley Christians/File Photo</figcaption></figure>



DOHA, Aug 20 (Reuters)&nbsp;&#8211;&nbsp;Qatar Airways will take a 25% stake in South Africa-based regional carrier Airlink as both airlines seek to boost services and passenger numbers across Africa, they said on Tuesday.



Qatar Airways CEO Badr Mohammed Al Meer, speaking alongside Airlink&#8217;s CEO Rodger Foster in Doha, told reporters the investment would boost Qatar Airways&#8217; access to passengers in regional cities in Africa.



Foster said it would allow privately owned Airlink to expand in Africa and eventually to operate larger aircraft on one or two routes. It would not expand beyond Africa, he said.



The executives did not disclose the value of the investment that was officially agreed on Tuesday, and Qatar Airways&#8217; Al Meer said it would require regulatory approval.



With a 25% equity stake in Airlink, Qatar Airways will take the maximum foreign ownership share that South African regulators allow for airlines, Foster said.



Airlink is currently owned by Foster&#8217;s family, South Africa&#8217;s Webb family and institutional investors Coronation Global and Sishen Iron Ore Company Community Development Trust, according to Foster.



Qatar Airways will gain two seats on Airlink&#8217;s 14 member board and will have 25% shareholder voting rights, Foster told Reuters.



State-owned Qatar Airways holds stakes in British Airways-owner International Airlines Group, Latam Airlines, Cathay Pacific Airways, and China Southern Airlines.



It has also been in talks to acquire a minority stake in Rwanda&#8217;s RwandAir and in 2019 agreed with the country&#8217;s government to take a majority stake in a new international airport in Rwanda.



Airlink, which flies to more than 45 destinations in 15 African countries, and RwandAir both operate on several of the same routes.



&#8220;It makes sense that as Qatar Airways gets more involved in RwandAir, we start rationalizing the duplicated activity,&#8221; Foster said, adding that though discussions have not started yet, it could mean an interline or code share agreement with the airline.



Airlink already has a code share agreement with Qatar Airways, which allows the airlines to sell tickets on flights operated by each other.



The African carrier has a similar agreement with Dubai&#8217;s state-owned Emirates, a competitor of Qatar Airways, which Foster said would continue.



(Reporting by Andrew Mills; Writing by Alexander Cornwell; Editing by Mark Heinrich, Sharon Singleton, Susan Fenton and Shounak Dasgupta)

Qatar Airways B777 aircraft arrives at the Cape Town International Airport

Qatar Airways says it will take 25% stake in South Africa’s Airlink

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-820x524.jpg" alt="" class="wp-image-521181" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-1536x982.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A fountain with a statue is seen outside the Supreme Court in Nairobi, Kenya, August 20, 2021. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Aug 20 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s top court on Tuesday suspended a lower court&#8217;s ruling that the 2023 finance law was unconstitutional, saying it was important to preserve stability in the budget until the merits of the government&#8217;s appeal are heard next month.



The finance bills, presented to parliament at the start of every financial year, are the main vehicle for the government to set out its revenue-raising measures including tax hikes.



The Court of Appeal&#8217;s judgment late last month that last year&#8217;s Finance Act was unconstitutional was a blow to the government of President William Ruto, who withdrew this year&#8217;s finance bill in June in the face of youth-led protests, the biggest challenge of his two-year presidency.



Ruto has been caught between the competing demands of Kenya&#8217;s hard-pressed citizens and of lenders such as the International Monetary Fund.



He has argued that tax increases are necessary to help fund development programmes and pay off a heavy public debt load.



&#8220;We find that public interest tilts in favour of granting conservatory and stay orders to &#8230; maintain stability in the budget and appropriation process pending the determination of this appeal,&#8221; Kenya&#8217;s Supreme Court said in its ruling.



The Supreme Court will hold hearings on Sept. 10 and 11 on whether the 2023 law is constitutional.



The government, which has been relying on the 2023 finance law to continue collecting taxes after Ruto withdrew this year&#8217;s bill, did not immediately comment.



The 2023 version was challenged in court following a round of violent street protests last year led by opposition parties.



Ruto&#8217;s government used the 2023 law to double the value-added tax on fuel, introduce a housing tax and raise the top personal income tax rate.



(Reporting by Hereward Holland; Editing by Alexander Winning and Conor Humphries)

Kenyan court to rule on appeal against halting of constitutional changes in Nairobi

Kenya’s top court suspends judgment nullifying 2023 finance law

<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/E5AMVBEBFFOU5JTBQTY7SKQO4Q-820x547.jpg" alt="" class="wp-image-521126" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/E5AMVBEBFFOU5JTBQTY7SKQO4Q-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/E5AMVBEBFFOU5JTBQTY7SKQO4Q-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/E5AMVBEBFFOU5JTBQTY7SKQO4Q-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/E5AMVBEBFFOU5JTBQTY7SKQO4Q-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/E5AMVBEBFFOU5JTBQTY7SKQO4Q-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/E5AMVBEBFFOU5JTBQTY7SKQO4Q-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Cooling towers of South African petro-chemical company Sasol&#8217;s synthetic fuel plant in Secunda, north of Johannesburg, are seen in this picture taken March 1,2016.REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



Aug 20 (Reuters) &#8211; South African petrochemicals company Sasol reported a 66% fall in full-year profit on Tuesday, mainly due to weaker chemical prices, and skipped a final dividend.



Headline earnings, which strip out one-off items and are the main profit measure used by South African companies, were 11.5 billion rand ($648.47 million) in the year to June 30, compared with 33.8 billion rand a year earlier.



Sasol, which produces liquid fuels and chemicals from coal, said its income was hit as depressed chemicals prices exerted pressure on margins. Turnover fell 5% to 275.1 billion rand.



The company wrote down $3 billion in the carrying value of its chemicals and fuel assets mainly due the softer market pricing and outlook, resulting in a basic loss per share of 69.94 rand, compared to 14 rand basic earnings per share the previous year.



The biggest impairments, totalling nearly $2.6 billion, were recorded at its American chemicals unit.



Sasol did not declare a final dividend, leaving the interim 2 rand per share declared at half-year as the full-year payout for the 2024 financial year.



The company said it had changed its dividend policy, which was previously based on 2.5-2.8 times core headline earnings per share, to 30% of free cash flow generated, provided that net debt is below $4 billion on a sustained basis.



&#8220;The disconnect between headline earnings and cashflow generation, as well as elevated leverage levels, has necessitated a revision to the company&#8217;s dividend policy,&#8221; Sasol said in a statement.



Net debt for 2024 stood at $4.1 billion, just above the dividend trigger level.



($1 = 17.7341 rand)



(Reporting by Nelson Banya; Editing by Eileen Soreng, Kirsten Donovan)

FILE PHOTO: Cooling towers of South African petro-chemical company Sasol’s synthetic fuel plant in Secunda

Sasol profit plunges 66% on weak chemical prices, skips final dividend

<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-1243387410-820x547.jpg" alt="" class="wp-image-521108" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1243387410-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1243387410-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1243387410-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1243387410-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1243387410-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1243387410-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Medical personnel prepares a syringe with the vaccine against smallpox and monkeypox at Checkpoint Bln in Berlin, Germany on September 16, 2022. (Photo by Emmanuele Contini/NurPhoto via Getty Images)</figcaption></figure>



Aug 19 (Reuters) &#8211; Emergent BioSolutions said on Monday it would donate 50,000 doses of its smallpox vaccine to the Democratic Republic of the Congo and other impacted countries of Burundi, Kenya, Rwanda and Uganda to address the current mpox outbreak.



The World Health Organization last week declared mpox a global public health emergency for the second time in two years as a new variant of the virus, known as clade Ib, spread rapidly in Africa. At least one person in Sweden has been confirmed with the infection, marking the first time the new variant has been seen outside of Africa.



Emergent&#8217;s ACAM2000 vaccine, approved for smallpox, has been used as an mpox shot but the U.S. Food and Drug Administration is yet to approve its application for use against the virus.



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



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



Instead of an injection, the shot is given via a series of small pokes on the skin using a two-pronged needle. The injection site forms a scab, which takes 2-4 weeks to heal. Until the scab falls off, it could spread live virus to other parts of the body or people.



ACAM2000 is not recommended for people with compromised immune systems, such as HIV.



(Reporting by Christy Santhosh in Bengaluru and Julie Steenhuysen in Chicago; Editing by Shilpi Majumdar and Stephen Coates)

Vaccine Against Monkeypox In Berlin

Emergent to donate 50,000 vaccine doses to address mpox outbreak in Africa

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1419" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-scaled.jpg" alt="" class="wp-image-469791" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-820x568.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-768x532.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-1536x1065.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past an MTN logo outside the company&#8217;s headquarters in Johannesburg, South Africa, March 13, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 19 (Reuters) &#8211; MTN Group swung to a half-year loss on Monday as Africa&#8217;s biggest telecom operator grappled with the devaluation of the Nigerian naira and operational challenges in Sudan.



The company reported a loss before tax of 9 billion rand in the six-month period ended June 30, compared with a restated profit of 8.3 billion rand a year earlier.



&#8220;The further devaluation in the naira against the U.S. dollar&#8230; and the ongoing conflict in Sudan had the most significant impact on reported results,&#8221; CEO Ralph Mupita said.



MTN Group, which has 288 million customers across 18 markets in Africa, said its group service revenue decreased 20.8% to 85.3 billion rand. In constant currency, group service revenue, which excludes device and SIM card revenue, rose 12.1%.



The company&#8217;s service revenue from South Africa surpassed that of MTN Nigeria&nbsp;MTNN.LG, its biggest market by revenue, and rose 3.3% to 21.1 billion rand.



Revenue from the company&#8217;s Nigeria operations tumbled 52.9% to 20.5 billion rand, while on a constant currency basis it increased 32.4%.



Nigeria has suffered chronic dollar shortages in recent months that have forced authorities to devalue the naira twice in less than a year, as part of the new government&#8217;s measures to stabilise the currency and attract investment.



MTN Group, which anticipates paying a minimum ordinary final dividend of 330 cents per share for fiscal 2024, is making inroads in raising 25 billion rand by next year from non-core asset sales and reducing its ownership in its businesses, Mupita said on a post-earnings call.



The company has already raised 21.7 billion rand so far from non-core asset sales and should reach its target of raising 25 billion rand by next year, Mupita added.



The telecom operator reduced its stakes in MTN Ghana and MTN Uganda during the reporting period for a combined 1.7 billion rand.



There will be further stake sales in Ghana of about 2.1%, and in Cameroon, Ivory Coast and Nigeria, according to Mupita.



(Reporting by Nqobile Dludla; Editing by Tom Hogue, Sherry Jacob-Phillips and Shounak Dasgupta)

FILE PHOTO: MTN downgrades medium-term margin target for South Africa on power outages

South Africa’s MTN swings to half-year loss as Nigeria currency devaluation weighs

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-scaled.jpg" alt="" class="wp-image-510612" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">President of Kenya William Ruto during the United Nations Climate Change Conference COP28 High Level Segment meeting in Dubai, United Arab Emirates on December 1, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)</figcaption></figure>



NAIROBI, Aug 19 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government&nbsp;will have to bring back some&nbsp;tax measures&nbsp;that&nbsp;it scrapped&nbsp;after deadly protests in June,&nbsp;the finance minister said,&nbsp;raising the risk of further&nbsp;unrest.



John Mbadi told Citizen TV in an interview broadcast on Sunday night that some of the measures would be tweaked and not all would be revived, but they were needed to pay for expenditure including wages for teachers.



Some people who were involved in the youth-led protest movement that rocked the East African nation said they were ready to go back onto the streets after the minister&#8217;s announcement.



&#8220;I was going to take a one month break from social media&#8230; but it seems that there is no rest for me,&#8221; Hanifa, who only uses one name, wrote on X.



&#8220;The struggle continues. @WilliamsRuto I dare you to bring back the finance bill,&#8221; she added.



President William Ruto&nbsp;abandoned&nbsp;the finance bill for this fiscal year on June 26, and later dismissed most of his cabinet, bowing&nbsp;to pressure from protesters who had&nbsp;stormed parliamentand&nbsp;launched demonstrations across the country.



The bill had contained new taxes and hikes to raise an extra 346 billion shillings ($2.70 billion) &#8211; plans that the protesters said would pile pressure onto a population already struggling with surging living costs.



Mbadi, who was brought into the cabinet from the opposition benches as Ruto tried to prop up his government, had ruled out further tax hikes during his first public remarks in the post on Aug. 4.



In the interview on Sunday,&nbsp;he said the government planned to reintroduce what he called an eco-levy on most goods &#8211; though plans to tax essential products such as sanitary&nbsp;pads,&nbsp;which were a focal point for protesters&#8217; anger,&nbsp;would be dropped.



&#8220;For eco-levy, we would target those areas that do not affect the common citizen,&#8221; he told the private broadcaster. The measures were needed to fund emerging government expenditures, and will be taken to parliament by Sept. 30, Mbadi said.



The government has been caught between&nbsp;the competing demands of hard-pressed citizens and of lenders such as the IMF,&nbsp;which is urging&nbsp;the government to cut deficits to obtain more financing.



After the bill was dropped, the government cut spending and widened the fiscal deficit.



Neither Mbadi, nor the finance ministry, responded to Reuters requests for comment on the interview.



The new moves would raise 150 billion shillings, Citizen TV reported. The minister rejected criticism of the levy by businesses operating in Kenya.



&#8220;This country is not a dumping place. If you are injurious to the environment, then you must pay to make good what you have caused,&#8221; he said.



The government was working to bring back 49 clauses from the original bill, some meant to streamline laws without raising or introducing new taxes, Mbadi told the broadcaster.



($1 = 128.2500 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Andrew Heavens)

COP28 In Dubai High Level Segment

Kenya to bring back some scrapped tax plans, risking more unrest

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="465" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-820x465.jpg" alt="" class="wp-image-520812" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-820x465.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-300x170.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-768x436.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-1536x871.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Shoppers walk within Merkato, one of Africa&#8217;s biggest open air market, in Addis Ababa, Ethiopia, April 25, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



NAIROBI, Aug 19 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia is ramping up efforts to restructure its $1 billion international bond as part of a broader debt rework. Investors have balked at indications that the government is seeking a haircut, setting the stage for tense negotiations.



Here are some key issues in the restructuring process:



<h2 class="wp-block-heading" id="h-why-is-ethiopia-restructuring-its-debt">WHY IS ETHIOPIA RESTRUCTURING ITS DEBT?</h2>



Pressed by acute foreign currency shortages and sluggish government revenues amid a civil war in the northern region of Tigray, the government said in early 2021 it would restructure its debt under the G20 Common Framework initiative.



Chad, Zambia and Ghana have all sought to restructure&nbsp;their debts&nbsp;under the programme designed to provide swift debt relief to developing countries.



Ethiopia&#8217;s process was drawn out by the Tigray conflict which ended in late 2022 and slow progress in meeting International Monetary Fund requirements to abandon its currency peg, ditch capital controls and introduce an interest rate-based monetary policy framework.



The East African nation, the continent&#8217;s second most populous with 120 million people, floated its birr currency on July 29, helping it secure a $3.4-billion four-year IMF loan programme.



The IMF deal unlocked more financing from lenders including the World Bank and paved the way for a fresh debt restructuring push.



<h2 class="wp-block-heading" id="h-what-are-the-expected-outcomes">WHAT ARE THE EXPECTED OUTCOMES?</h2>



Ethiopia&#8217;s external debt stood at $28.9 billion&nbsp;in March, according to the&nbsp;government.&nbsp;The IMF&nbsp;identified&nbsp;a $3.5 billion financing gap during the lending programme. Ethiopia needs to plug that through the debt rework, but how that will be attained depends on the restructuring negotiations.



The government said it hoped the restructuring would achieve $4.9 billion in debt relief, citing official creditor proposals, though without a specified time frame.



To achieve comparability of treatment, a Common Framework tenet that requires commercial creditors to be treated in a similar way to official counterparts, Ethiopian officials have indicated they will seek a 20% write down on the principal of its $1 billion bond.



That has angered bondholders who said last week it does not reflect Ethiopia&#8217;s economic fundamentals, and added that the government was not following a &#8220;good faith&#8221; approach to debt restructuring.



Ethiopia has not commented on the bondholder statement.



<h2 class="wp-block-heading" id="h-how-will-that-nbsp-dispute-nbsp-be-resolved">HOW WILL THAT&nbsp;DISPUTE&nbsp;BE RESOLVED?</h2>



The dispute revolves around whether Ethiopia has a liquidity problem &#8211; a short-term issue &#8211; or whether it faces a longer-term solvency crisis.



Export and tax revenues have been under pressure and FX reserves dwindling, hampering Ethiopia&#8217;s ability to service its debt, say those who see it as a solvency issue, even though at 40.3% of GDP, the debt is fairly low.



Kevin Daly, portfolio manager at abrdn, which holds the bond, said a potential solution could be found somewhere between the government proposed haircut and extending the repayment period.



The IMF&#8217;s debt sustainability analysis shows Ethiopia has seen protracted breaches of a number of indicators the fund usually uses to identify a solvency crunch, such as the external debt-to-exports ratio.



Diverging assessments could set the stage for tense negotiations.



&#8220;Unduly conservative assumptions, coupled with unambitious fiscal efforts, may lead to protracted restructuring negotiations,&#8221; the bondholder group warned.



<h2 class="wp-block-heading" id="h-how-are-the-reforms-working-and-what-are-the-next-steps">HOW ARE THE REFORMS WORKING AND WHAT ARE THE NEXT STEPS?</h2>



The birr currency has nearly halved in value this year to trade at 103.97 per dollar &#8211; according to data from Commercial Bank of Ethiopia, the country&#8217;s biggest lender, closing in on the black market rate of 115-120.



However, progress on the key objective of unifying the two rates was initially hampered by commercial banks&#8217; hesitance to&nbsp;do so&nbsp;swiftly. Traders also hiked prices of basic commodities such as cooking oil.



Authorities have responded by closing thousands of businesses that were deemed to have raised prices unjustifiably, and the federal government has sought to boost supplies of essential commodities by ramping up imports.



The IMF says the government will have to take further action, perhaps by tightening monetary policy, to curb inflationary pressures.



The Fund has scheduled an unusually fast pace of reviews in order to closely monitor the impact of reforms.



The first review, scheduled for mid-August, is already underway and will focus on aspects such as FX reserves and external debt.



Following reviews are scheduled&nbsp;for the end of September and in December, at which point both the IMF and government expect Ethiopia to have sealed a restructuring deal.



(Reporting by Duncan Miriri; Additional reporting by Dawit Endeshaw in Addis Ababa; Editing by Karin Strohecker and Andrew Heavens)

FILE PHOTO: Ethiopia’s economy struggles due to shortage of foreign currency

Key issues on Ethiopia’s road to debt restructuring

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-820x615.jpg" alt="" class="wp-image-520774" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A vehicle of Uber operating taxi is seen at a parking lot in Nairobi, Kenya February 12, 2018. Picture taken February 12, 2018. REUTERS/Maggie Fick/File Photo</figcaption></figure>



NAIROBI, Aug 19 (Reuters)&nbsp;&#8211;&nbsp;In eight years of working as a taxi driver in Kenya&#8217;s capital, Judith Chepkwony has never seen business this bad.



A bruising price war between ride-hailing companies Uber Technologies&nbsp;UBER.N, Estonia&#8217;s Bolt and local start-ups Little and Faras has driven fares down to a level that many drivers say is unsustainable, forcing them to set their own higher rates.



&#8220;Most of us have these cars on loan and the cost of living has risen,&#8221; Chepkwony told Reuters. &#8220;I try to convince the customers to agree to the higher rates. If they can&#8217;t pay, we cancel and let them find another driver.&#8221;



About half the passengers who get in touch eventually agree to pay more than the price flashing up on their app generated by the companies&#8217; algorithms, Chepkwony said, keeping her going.



But Uber has said such arrangements break its guidelines and told its drivers to get back into line, setting up a clash between the slick, automated world of the international ride-hailing industry and the messier realities of one of its biggest developing markets.



The East African nation of 50 million people has been rocked by deadly protests against tax hikes which, together with high prices of basic commodities and elevated interest rates, has been blamed for lower disposable incomes.



Kenya, Nigeria and Tanzania &#8211; with their growing economies and relatively low car ownership rates &#8211; are among the most important markets for Uber in Africa, its executives have said.



But there have been challenges along the way. Drivers have gone on strike in Kenya,&nbsp;twice this year and at least once last year, over low commissions.



Uber Head of East Africa Imran Manji told Reuters it was reviewing reports of customers being overcharged. &#8220;We encourage all riders to report such instances.&#8221;



Linda Ndung&#8217;u, Bolt&#8217;s manager for Kenya, said they were discouraging fare-hiking while the industry searches for a solution to balance the needs of drivers and customers.



While everyone waits, the drivers are finding ways to get round the industry&#8217;s united front.



Many say they use walkie-talkie app Zello to collectively agree on higher prices, meaning a customer will get the same rate even if they shop around.



Drivers have also produced a fare guide,&nbsp;which they print, laminate and post up inside their cars for customers to see.



One seen by Reuters set the minimum fare at 300 shillings ($2.33), above the&nbsp;200 shillings set by Uber and Bolt who sometimes offer further discounts.



&#8220;We first ask the client where they are going and how much is shown on the app. Then we propose a rate based on our chart which can also be done by quickly multiplying by 1.5,&#8221; Nairobi-based driver Erick Nyamweya said.



&#8220;If they agree, we take the ride. If not we either negotiate further or decline because the current rates are not sustainable with higher fuel and spare parts prices.&#8221;



There has been some movement. Local start-up Faras Cabs raised its fares by up to a fifth&nbsp;this month&nbsp;to accommodate drivers&#8217; demands, Chief Commercial Officer Osman Abdi said.



At the end of the day, it is the customer that pays, in money and time spent haggling.



&#8220;The negotiations end up taking so much time that it ends up beating the logic of trying to save time by taking a cab,&#8221; said one customer, Lameck Owesi. &#8220;It is frustrating.&#8221;



($1 = 128.5000 Kenyan shillings)



(Reporting by Edwin Okoth; Editing by Duncan Miriri and Andrew Heavens)

A vehicle of Uber operating taxi is seen at a parking lot in Nairobi

Hard-pressed Kenyan drivers defy Uber’s algorithm, set their own fares

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="571" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/74DO2Y3SI5LEZMM4PGBAROP3NY-820x571.jpg" alt="" class="wp-image-520727" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/74DO2Y3SI5LEZMM4PGBAROP3NY-820x571.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/74DO2Y3SI5LEZMM4PGBAROP3NY-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/74DO2Y3SI5LEZMM4PGBAROP3NY-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/74DO2Y3SI5LEZMM4PGBAROP3NY-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/74DO2Y3SI5LEZMM4PGBAROP3NY-1536x1070.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/74DO2Y3SI5LEZMM4PGBAROP3NY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Absa Group logo is seen on a smartphone in front of displayed same logo in this illustration taken, December 1, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Aug 19 (Reuters) &#8211; South African lender Absa Group on Monday said Chief Executive Officer Arrie Rautenbach will take early retirement from the company, effective on April 15, 2025.



Charles Russon will become interim CEO of Absa Group and Absa Bank effective on Oct. 15, 2024, subject to regulatory approval, the bank said in a statement.



&#8220;Charles&#8217; appointment will enable a smooth transition, while the board conducts a diligent search for a new permanent group chief executive,&#8221; Absa said.



Absa said the change was taken following &#8220;engagements&#8221; between the board and Rautenbach, but gave no further details.



Rautenbach will be on a 6-month contractual notice period that will be served as garden leave, the lender said.



Rautenbach has been with the bank since 1997 and took the helm in 2022, becoming the fourth person to take the reins since the departure of longstanding CEO Maria Ramos in 2019.



Russon has been CEO of Absa&#8217;s Corporate and Investment Bank since 2018 and a group executive committee member since 2014. Yasmin Masithela will become interim CEO of Absa&#8217;s Corporate and Investment Bank effective on Oct. 15.



(Reporting by Nqobile Dludla; Editing by Tom Hogue)

Illustration shows a smartphone with displayed Absa Group logo

South Africa’s Absa CEO Arrie Rautenbach to retire next year

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1822" height="1271" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE.jpg" alt="" class="wp-image-506368" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE.jpg 1822w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-1536x1071.jpg 1536w" sizes="auto, (max-width: 1822px) 100vw, 1822px" /><figcaption class="wp-element-caption">Kenya&#8217;s President William Ruto speaks at a press conference where he announced spending cuts in government after protests against Kenya&#8217;s proposed finance bill 2024/2025, in Nairobi, Kenya, July 5, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, Aug 19 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government plans to reintroduce to parliament tax measures contained in legislation that was pulled in June after deadly protests, aiming to raise an extra 150 billion shillings ($1.2 billion), Citizen TV reported citing the finance minister.



The tax proposals to be brought back include an eco-levy on most goods, Finance Minister John Mbadi told the private TV station, adding that sensitive products like sanitary pads would be exempted from the levy.



The move to revive some of the measures is due to growing demands for expenditures by the government, the minister told the station.



($1 = 128.5000 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Tom Hogue)

Kenya’s President announces government spending cuts after protest against Kenya’s proposed finance bill 2024/2025, in Nairobi

Kenya to reintroduce some tax measures to raise $1.2 bln, TV report

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4.jpg" alt="" class="wp-image-519697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/INJ75E5ILVP43B5TB5WUXDQSZ4-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: A man receives a dose of the mpox vaccine at the Edison municipal vaccination centre in Paris, France July 27, 2022. Alain Jocard/Pool via REUTERS/File Photo</figcaption></figure>



Aug 16 (Reuters)&nbsp;&#8211;&nbsp;More imported cases of a new mpox strain will appear in Europe in the coming weeks but the risk of sustained transmission remains low, the head of Europe&#8217;s disease prevention agency said on Friday.



The agency raised its risk assessment for sporadic cases of mpox clade I in Europe to moderate on Friday. The risk was high for travellers to affected areas in Africa in close contact with people there, and moderate for their contacts.



&#8220;There will be more cases in the coming weeks. That&#8217;s the expectation&#8230; But regarding the risk [for the] general European population, we have to say that our assessment is that the risk is very low at the moment,&#8221; European Centre for Disease Prevention and Control director Pamela Rendi-Wagner said in an interview.



She called for European countries to&nbsp;step up&nbsp;preparedness and raise awareness to prevent further spread.



An outbreak of mpox in Democratic Republic of Congo caused by two different forms of mpox, an endemic form and a new offshoot called clade Ib, has caused global concern after it spread to more countries in Africa.



On Thursday, Sweden became the first country outside Africa to confirm a case of clade Ib. The WHO declared the outbreak a global health emergency on Wednesday.



The European CDC recommended that public health authorities plan and prepare for quick detection of any clade I cases that may reach Europe.



It predicts the impact from this strain of the virus will be low in Europe if proper surveillance and control measures are implemented, using the expertise garnered when another strain of mpox, clade II, spread globally in 2022.



During that emergency, the virus spread mainly among men who had sex with men, and behaviour change as well as vaccines helped bring it under control in Europe.



Mpox is a viral infection that causes flu-like symptoms and pus-filled lesions, and while usually mild, it can be fatal in rare cases. It spreads through close contact, including sexual contact, and clade Ib appears to spread more easily among people than other forms of the virus, although there are many open questions about its severity and transmissibility, Randi-Wagner said.



Anyone with symptoms and travel history or a contact with travel to affected areas in Africa should immediately contact a doctor, she added.



&#8220;Test, test, test, in order to find the suspect cases in Europe as soon as possible and avoid further spreading,&#8221; she said in recommendations to European public health authorities.



(Reporting by Bhanvi Satija in Bengaluru; Editing by Shinjini Ganguli and Angus MacSwan)

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