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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed

What a Fed rate cut could mean for the world

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-820x547.jpg" alt="" class="wp-image-531973" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Supporters of Ghana’s main opposition National Democratic Congress (NDC) party march in the streets to protest what they suspect to be voters register irregularities ahead of the presidential and parliamentary elections in December, in Accra, Ghana. September 17, 2024. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, (Reuters) &#8211; Ghana&#8217;s main opposition National Democratic Congress (NDC) party on Tuesday held nationwide protests against alleged voter roll irregularities, demanding an independent forensic audit to rid the register of errors for free and fair elections.



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



The election will pit ex-president John Dramani Mahama of the NDC against current Vice President Mahamudu Bawumia of the ruling New Patriotic Party.



The NDC party leaders said the electoral commission illegally transferred voters to different voting stations without their knowledge, compromising the integrity of the register.



Clad in red and black, thousands of supporters marched through principal streets in the capital Accra, blaring reggae and campaign songs from loudspeakers and calling on international bodies, Ghana&#8217;s peace council and religious and civil society groups to intervene.



Protest leaders presented petitions to parliament and the electoral agency in Accra. Protests also took place across Ghana&#8217;s other 15 regions, according to local media.



Protester Kwame Acheampong, 68, told Reuters in the local Akan language that his registration had been transferred from the capital to the northern city of Tamale.



&#8220;How can I go to Tamale to vote?&#8221; he said.



The electoral commission has said identified errors have been corrected.



In August, it suspended a district director in the northeastern town of Pusiga for &#8220;using his credentials to transfer voters without their knowledge.&#8221;



Ghana is one of Africa&#8217;s most stable democracies, but about eight people died during the last election, which was also marred by opposition accusations that the government unfairly influenced the outcome, which it denied.



Allegations of irregularities dent the electoral authority&#8217;s image. A July survey by pan-African research group Afrobarometer showed trust in Ghana&#8217;s electoral commission at historic low since confidence polls started in 1999.



NDC party chairman Johnson Asiedu Nketia told protesters he wanted &#8220;nothing but transparent elections.”



&#8220;Ghana&#8217;s democracy is on a serious test and we want (it) to prevail. It&#8217;s time for war to remove anything that has the tendency to push us into a bigger war.&#8221;



(Reporting by Maxwell Akalaare Adombila; Editing by Alistair Bell)

Supporters of Ghana’s main NDC party protest what they suspect to be voter roll irregularities, in Accra

Ghana opposition holds protests against alleged voter roll irregularities

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="526" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-820x526.jpg" alt="" class="wp-image-531702" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-1536x985.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Smoke rises from chimneys at Hwange Power station in Hwange, Zimbabwe, October 19, 2021. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Sept 17 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe is struggling to get independent energy projects built to help ease a prolonged power shortage due to lack of funding and economic instability, a government official has said.



The southern African country, which battles lengthy power blackouts, generates about 1,200 megawatts of electricity, mostly from its coal-fired Hwange plant, against peak demand of nearly 2,000 megawatts.



To plug the deficit, the government has licensed private investors to generate a combined 2,920MW from coal and solar plants.



Of these, about 250MW in private power generation is expected to come on stream this year, energy secretary Gloria Magombo told an economic conference on Monday.



&#8220;We have natural energy resources but what we need is financing. That financing needs macroeconomic stability,&#8221; Magombo said.



Independent power producers also need government assurances that they will be able to remit dividends and loan repayment funds, she added.



Zimbabwe continues to experience episodes of high inflation, mainly due to a volatile local currency it reintroduced in 2019, a decade after abandoning it for the U.S. dollar.



The country&#8217;s foreign currency shortages mean investors struggle to remit dividends or repay international loans.



Independent power producers are also deterred by the prospect of selling power at what they see as an overvalued official exchange rate, which would lead to losses.



Zimbabwe generates at least 80% of its electricity from coal, with output from the 1,050-MW Kariba hydropower plant now capped at 215 MW due to low water levels after last year&#8217;s devastating drought. Small independent power producers routinely contribute between 20 MW and 50 MW to the national grid.



Power demand is expected to surge mostly due to expansion in mining projects as Africa&#8217;s top lithium producer Zimbabwe seeks to capitalise on the expected increase in demand for the battery metal.



(Reporting by Nyasha Chingono; Editing by Nelson Banya and Emelia Sithole-Matarise)

FILE PHOTO: Smoke rises from chimneys at Hwange Power station in Hwange

Zimbabwe’s volatile economy stalls independent power projects, energy official says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-2.jpg" alt="" class="wp-image-531632" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-2.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-2-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Shoppers queue to purchase televisions during Black Friday shopping, at a store in Canal Walk Mall in Cape Town, South Africa, November 25, 2022. REUTERS/Esa Alexander/File Photo</figcaption></figure>



Sept 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s consumer confidence recovered further in the third quarter to its best since 2019, helped by improved willingness to spend and hopes of an interest rate cut in September, survey data released on Tuesday showed.



The consumer confidence index (CCI), sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research (BER), improved to minus 5 points in the quarter from minus 10 in the previous three months.



&#8220;A confluence of positive developments has bolstered the confidence levels of South Africa&#8217;s more affluent consumers over the last six months,&#8221; FNB Chief Economist Mamello Matikinca-Ngwenya said.



The central bank is due to announce its rate decision on Thursday, with economists expecting a 25-basis-point cut as inflation slows, according to a Reuters poll.



Besides the deceleration in inflation, the formation of the government of national unity, the absence of load-shedding, a stronger rand exchange rate and substantial fuel price declines have also contributed to improving consumer confidence.



&#8220;Moreover, the implementation of the two-pot retirement system on Sept. 1 now allows consumers access to a portion of their retirement savings, which will no doubt hearten households experiencing financial distress,&#8221; Matikinca-Ngwenya said.



However, while confidence among high-income and middle-income households improved, low-income households showed weakness as the lack of pension funds and debt that is tied to the prime interest rate minimizes the impact of the two-pot policy and possible rate cuts.



(Reporting by Prerna Bedi in Bengaluru; Editing by Savio D&#8217;Souza)

KCFPRJVFHBJAVIHQY7H4XLQJ2Y (2)

S. Africa consumer confidence recovers to pre-pandemic levels, survey shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1322" height="769" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CBDC-image.jpg" alt="" class="wp-image-531580" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CBDC-image.jpg 1322w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CBDC-image-300x175.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CBDC-image-820x477.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CBDC-image-155x90.jpg 155w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CBDC-image-768x447.jpg 768w" sizes="auto, (max-width: 1322px) 100vw, 1322px" /><figcaption class="wp-element-caption">Photo: via Reuters</figcaption></figure>



LONDON, Sept 17 (Reuters)&nbsp;&#8211;&nbsp;A total of 134 countries representing 98% of the global economy are now exploring digital versions of their currencies, with almost half at an advanced stage and pioneers like China, the Bahamas and Nigeria starting to see a pick up in usage.



The research by the U.S.-based Atlantic Council think-tank published on Tuesday showed that all G20 nations are now looking into central bank digital currencies (CBDCs) as they are known and that 44 countries in total are piloting them.



That is up from 36 a year ago and is part of a global push by authorities to respond to declining cash usage and the threat to their money-printing powers from the likes of bitcoin and &#8216;Big Tech&#8217;.



The Atlantic Council&#8217;s Josh Lipsky and Ananya Kumar said one of the most noteable developments this year has been the sizable increase in the Bahamas, Jamaica and Nigeria&#8217;s CBDCs, the only three countries that have already launched them.



China too, which is running the world&#8217;s largest pilot scheme, has seen use of its protype e-CNY nearly quadruple to 7 trillion yuan ($987 billion) of transactions according to officials.



&#8220;There has been a narrative that the countries that have launched CBDCs have seen low or no usage, but in the last months we have seen a real uptake,&#8221; Lipsky said.



&#8220;My predication is that the PBOC (China&#8217;s central bank) will be close to full launch a year from now,&#8221; he added.



Other big advances have been the European Central Bank&#8217;s launch of a multi-year digital euro pilot and the United States, which has long dragged its feet on a digital dollar, joining a cross-border CBDC project with six other major central banks.



It still lags far behind nearly every other leading bank however Lipsky highlighted that it is one of the countries where privacy and other concerns about CBDCs are most vocal.



In May, the U.S. House of Representatives passed a bill prohibiting the direct issuance of a &#8216;retail&#8217; CBDC &#8211; the type used by the public. The Senate has not yet acted, but it remains a live issue in the presidential election campaign between Donald Trump and Kamala Harris.



Since Russia&#8217;s invasion of Ukraine and the G7 sanctions response, &#8216;wholesale&#8217; bank-to-bank only CBDC projects have more than doubled in number to 13.



The fastest growing one, codenamed mBridge, connects CBDCs from China, Thailand, the UAE, Hong Kong and Saudi Arabia and is expected to expand to more countries this year.



Russia is unlikely to be one of them but its digital rouble pilot means it is now accepted in the Moscow metro and in some petrol stations. Iran is also working on a digital rial.



&#8220;No matter what happens with the U.S. election, the Fed is years behind,&#8221; Lipsky said.



($1 = 7.0930 Chinese yuan renminbi)



(Reporting by Marc Jones; Editing by Michael Perry)

CBDC-image

Central bank digital currency momentum growing, study shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KE3PDSOKXFIHXFZ66MDGEJS5F4-820x547.jpg" alt="" class="wp-image-531302" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KE3PDSOKXFIHXFZ66MDGEJS5F4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KE3PDSOKXFIHXFZ66MDGEJS5F4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KE3PDSOKXFIHXFZ66MDGEJS5F4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KE3PDSOKXFIHXFZ66MDGEJS5F4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KE3PDSOKXFIHXFZ66MDGEJS5F4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KE3PDSOKXFIHXFZ66MDGEJS5F4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of road traffic along the Marina in Lagos, Nigeria, July 18, 2024. REUTERS/Marvellous Durowaiye/File Photo</figcaption></figure>



LAGOS, Sept 16 (Reuters) &#8211; Nigeria&#8217;s headline consumer inflation fell for the second month in a row in August, to 32.15% year-on-year from 33.40% in July, data from its bureau of statistics showed on Monday.



July marked the first month in well over a year that inflation had slowed in Africa&#8217;s most populous nation, as the effects of a currency devaluation started to fade.



But analysts say August&#8217;s further slowdown could be short-lived, after the price of petrol was increased twice in September, angering citizens who are grappling with the worst cost-of-living crisis in a generation.



Price increases have been stoked by President Bola Tinubu&#8217;s decision to remove a decades-old fuel subsidy, devalue the naira currency and hike electricity tariffs. The reforms are aimed at lifting economic growth and shoring up public finances.



(Reporting by Shamsuddin Mohd in Bengaluru and Chijioke Ohuocha in Abuja; Writing by MacDonald Dzirutwe in Lagos; Editing by Alexander Winning)

A general view of road traffic along the Marina in Lagos

Nigerian inflation falls for second straight month in August

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-scaled.jpg" alt="" class="wp-image-419784" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Kenya&#8217;s President-elect William Ruto speaks after the Supreme Court upheld his win in Nairobi, Kenya September 5, 2022. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, Sept 16 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s auditor general has started to examine the country&#8217;s debt to ascertain the amounts owed to various creditors, Finance Minister John Mbadi told Reuters on Monday.



The East African nation&#8217;s debt stands at 10.5 trillion shillings ($81.71 billion) but an audit of the borrowings was one of the key demands of anti-tax hike protesters that forced the government to abandon a number of planned tax increases in June.



The audit has already started, Mbadi said, but did not provide further details regarding the focus of the investigation or when a report is expected to be ready.



The auditor general is a constitutionally mandated independent office that is funded by the state.



During the height of the protests, President William Ruto appointed a committee to perform the audit. However, several appointees, including the head of the Law Society of Kenya, declined the appointments, saying the task should be carried out by the auditor general.



During his parliamentary vetting for the post, Mbadi had promised to ensure there is more &#8220;debt accountability&#8221; to help the public better understand the issue.



More than 50 people were killed in the protests, which forced President Ruto to abandon the government&#8217;s financing law.



It also led to a series of credit downgrades by the three main global ratings agencies.



A team from the International Monetary Fund is in the country on a fact-finding mission ahead of its board meeting to approve the latest review of Kenya&#8217;s programme and approve a disbursement of $600 million.



($1 = 128.5000 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Jacqueline Wong)

Kenya’s top court to deliver verdict on disputed presidential election

Kenya begins national debt audit, finance minister says

<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>



ABUJA, Sept 16 (Reuters)&nbsp;&#8211;&nbsp;Nigerian state oil firm NNPC Ltd on Monday increased the price of petrol by 11%, the second increase in two weeks and a day after it started purchasing the fuel from the giant Dangote oil refinery on the outskirts of Lagos.



Nigeria expects the 650,000 barrels per day refinery to end years of imports of gasoline, which had been subsidised for decades until President Bola Tinubu began removing support when he took office in May last year.



The price of gasoline is a sensitive issue in Nigeria because many households and small businesses use it to power generators because the majority of citizens are not connected to the national electricity grid.



On Monday, NNPC said it had increased gasoline prices from 858 naira ($0.53) a litre to 950 naira in Lagos and as high as 1,019 naira in northeastern states. It said it buys the product at 898 naira per litre from the refinery.



NNPC said it had started buying the fuel from Dangote on Sunday in U.S. dollars and that a deal to purchase gasoline in the local naira currency was still to take effect.



The latest increase is likely to add to public anger as Nigerians are already struggling with inflation of 33.4%, which has driven up transport costs and caused a cost of living crisis that led to violent protests in early August.



On Friday, a Nigerian presidential committee announced that NNPC would distribute gasoline from the $20 billion Dangote refinery to the local market, ending a deadlock that had stalled distribution.



From October NNPC will supply 385,000 barrels of crude per day to be paid for in naira by Dangote refinery, which will in turn sell its fuel in the local currency.



($1 = 1,614.2000 naira)



(Reporting by Camillus Eboh, Editing by MacDonald Dzirutwe and Louise Heavens)

XTUYFFOIU5I5JMOASXHMTVFSTI

Nigeria’s NNPC raises petrol prices again as Dangote fuel hits market

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-820x547.jpg" alt="" class="wp-image-531175" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/F6FVLRKWENP73DD6QLMRUYW374-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Heads of state of Mali&#8217;s Assimi Goita, Niger&#8217;s General Abdourahamane Tiani and Burkina Faso&#8217;s Captain Ibrahim Traore attend the opening of for the first ordinary summit of heads of state and governments of the Alliance of Sahel States (AES) in Niamey, Niger July 6, 2024. REUTERS/ Mahamadou Hamidou/File Photo</figcaption></figure>



BAMAKO, (Reuters) &#8211; Mali, Burkina Faso and Niger will introduce new biometric passports as part of their withdrawal from a West African bloc in favour of a new Sahel alliance after military leaders seized power in all three countries, Mali&#8217;s leader said on Sunday.



The three junta-led Sahel neighbours jointly announced in January they would leave the 15-member Economic Community of West African States (ECOWAS), which has sought to persuade them to reconsider their decision.



Burkina Faso announced earlier this month that it was rolling out new passports without the ECOWAS logo.



&#8220;In the coming days, a new biometric passport of the AES (Alliance of Sahel States) will be put into circulation with the aim of harmonising travel documents in our common area and facilitating the mobility of our citizens throughout the world&#8221;, Malian junta leader Assimi Goita announced on Sunday evening.



He spoke ahead of a meeting Monday between the three countries&#8217; foreign ministers on the anniversary of the decision to form their own alliance.



Goita also said they were planning to launch a shared information channel &#8220;in order to promote a harmonious dissemination of information in our three states.&#8221;



ECOWAS has warned that the three countries&#8217; withdrawal would undermine the freedom of movement and common market of the 400 million people living in the 49-year-old bloc.



Their departure comes as their armies battle groups linked to al Qaeda and Islamic State, whose insurgencies have destabilised the region over the past decade and threaten to spill over into coastal West African states.



(Reporting by Tiemoko Diallo and Boureima Balima in Niamey; Writing by Portia Crowe; Editing by Sandra Maler)

FILE PHOTO: Sahel junta leaders meet for a summit in Niamey

Mali, Burkina and Niger to launch biometric passports under new alliance

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1858" height="1045" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed.jpeg" alt="" class="wp-image-531172" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed.jpeg 1858w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed-1536x864.jpeg 1536w" sizes="auto, (max-width: 1858px) 100vw, 1858px" /><figcaption class="wp-element-caption">U.S. Federal Reserve Chair Jerome Powell speaks during a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, U.S., July 31, 2024.  Kevin Mohatt | Reuters</figcaption></figure>



Federal Reserve officials head into their policy meeting Tuesday closer to their goal of low inflation, but how much they will ease back on interest rates remains an open question.



A week’s worth of inflation data showed that price pressures have eased substantially since their meteoric rise in 2021-22. One gauge of consumer prices showed 12-month inflation at its lowest since February 2021, while wholesale price measures indicated pipeline price increases are mostly under control.



Both readings were certainly enough to clear the way for an interest rate cut at the Federal Open Market Committee meeting, which concludes Wednesday with a rate decision and an updated forecast on where central bankers see things heading in the future.



“We got two more months of good inflation data” since the last Fed meeting, Claudia Sahm, chief economist for New Century Advisors, said in a CNBC interview Friday. “That’s what the Fed asked for.”



The question, though, turns now to how aggressively the Fed should act. Financial markets, which provide a guidepost on where the central bank is heading, were no help.



Futures markets for most of the past week had lasered in on a quarter percentage point, or 25 basis point, rate cut. However, that turned on Friday, with traders switching to an almost even chance of a either a 25- or a half point, or 50-basis point-reduction, according to the CME Group’s FedWatch tool.



Sahm is among those who think the Fed should go bigger.



The inflation data “on its own would have gotten us 25 next week, as it should, and will get us a whole string of cuts after that,” she said. “The federal funds rate has been over 5%, has been there for over a year to fight inflation. That fight is won. They need to start getting out of the way.”



That means, Sahm said, starting off with a 50 basis-point reduction as a way to put a floor under potential labor market decay.



“The labor market [since] last July has gotten weaker,” she said. “So there’s an aspect of just recalibrating. We got some more information. [Fed officials] need to kind of clean it up, do a 50 basis point cut and then be ready to do more.”



<h2 class="wp-block-heading" id="h-confidence-about-inflation"><a></a>Confidence about inflation</h2>



The inflation reports indicate that the battle to bring inflation back down to 2% isn’t exactly over, but things are at least moving in the right direction.



The all-items consumer price index nudged up just 0.2% in August, putting the full-year inflation rate at 2.5%. Excluding food and energy, core inflation stood at 3.2%, a good deal farther away from the Fed’s target.



However, most of the core strength has come from stubbornly high shelter costs, boosted by the Bureau of Labor Statistics’ byzantine “owners equivalent rent” measure that asks homeowners what they could get if they rented out their residence. The yardstick, which comprises about 27% of the total CPI weighting, rose 5.4% from a year ago.



Despite lingering pressures, consumer surveys indicate confidence that inflation has been subdued if not completely arrested. Respondents to a University of Michigan survey in September expected inflation to run at 2.7% over the next 12 months, the lowest reading since December 2020.



Taking all the various inflation dynamics into account, Fed Chair Jerome Powell said in late August that his “confidence has grown” that inflation is trending back to 2%.



That leaves employment. Powell said in the same speech, delivered at the Fed’s annual retreat in Jackson Hole, Wyoming, that the Fed does “not seek or welcome further cooling in labor market conditions.”



The Fed has two jobs — stable prices and a healthy job market — and the primary mission looks about to change.



“If Powell wants to deliver on his, ‘we want no further weakening, no further cooling,’ they are going to have to, like, really move here, because that cooling trend is well established,” Sahm said. “Until it is interrupted, we are going to continue to see payrolls drift down and [the] unemployment rate drift up.”



<h2 class="wp-block-heading" id="h-the-case-for-a-quarter"><a></a>The case for a quarter</h2>



To be sure, there’s considerable sentiment for the Fed to lower by just a quarter-point at next week’s meeting, reflecting that the central bank still has more work to do on inflation, and that it is not overly worried about the labor market or a broader economic cooling.



“That’s really the key that they need to kind of hone in on, which is that they are normalizing policy and not trying to provide accommodation for an economy that is really in trouble,” said Tom Simons, U.S. economist at Jefferies. “I think they’ve done a very good job of expressing that point of view so far.”



Even with the quarter-point move, which Simons forecasts, the Fed would have plenty of room to do more later.



Indeed, market pricing anticipates rates could come down by 1.25 percentage points by the end of 2024, an indication of some sense of urgency at bringing benchmark borrowing costs down from their highest levels — currently 5.25% to 5.50% — in more than 23 years.



“The whole reason why they’ve been so cautious about cutting is because they’re concerned that inflation is going to come back,” Simons said. “Now, they have more confidence based on data that suggested [inflation] isn’t coming back right now. But they do need to be very careful to monitor potentially changing dynamics.”

108014585-17224590832024-07-31t204917z_998265604_rc2i69a6g2co_rtrmadp_0_usa-economy-fed

The Fed has the proof it wants that inflation is slowing, but the next move is still up in the air

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-820x547.jpeg" alt="" class="wp-image-530230" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



The U.S. Federal Reserve’s easing cycle will be “mild” by historical standards when it starts cutting rates at its September policy meeting, ratings agency Fitch said in a note.



In its global economic outlook report for September, Fitch forecast 25-basis-point cut each at the central bank’s September and December meeting, before it slashes rates by 125 basis points in 2025 and 75 basis points in 2026.



This will add up to a total 250 basis points of cuts in 10 moves across 25 months, Fitch noted, adding that the median cut from peak rates to bottom in previous Fed easing cycles going up to the mid-1950s was 470 basis points, with a median duration of 8 months.



“One reason we expect Fed easing to proceed at a relatively gentle pace is that there is still work to do on inflation,” the report said.



This is because CPI inflation is still above the Fed’s stated inflation target of 2%.



Fitch also pointed out that the recent decline in the core inflation — which excludes prices of food and energy — rate mostly reflected the drop in automobile prices, which may not last.



U.S. inflation in August declined to its lowest level since February 2021, according to a Labor Department report Wednesday.



The consumer price index rose 2.5% year on year in August, coming in lower than the 2.6% expected by Dow Jones and hitting its lowest rate of increase in 3½ years. On a month-on-month basis, inflation rose 0.2% from July.



Core CPI, which excludes volatile food and energy prices, rose 0.3% for the month, slightly higher than the 0.2% estimate. The 12-month core inflation rate held at 3.2%, in line with the forecast.



Fitch also noted that “The inflation challenges faced by the Fed over the past three and a half years are also likely to engender caution among FOMC members. It took far longer than anticipated to tame inflation and gaps have been revealed in central banks’ understanding of what drives inflation.”



<h2 class="wp-block-heading" id="h-dovish-china-hawkish-japan"><a></a>Dovish China, hawkish Japan</h2>



In Asia, Fitch expects that rate cuts will continue in China, pointing out that the People’s Bank of China’s rate cut in July took market participants by surprise. The PBOC cut the 1-year MLF rate to 2.3% from 2.5% in July.



″[Expected] Fed rate cuts and the recent weakening of the US dollar has opened up some room for the PBOC to cut rates further,” the report said, adding that that deflationary pressures were becoming entrenched in China.



Fitch pointed out that “Producer prices, export prices and house prices are all falling and bond yields have been declining. Core CPI inflation has fallen to just 0.3% and we have lowered our CPI forecasts.”



It now expects China’s inflation rate to bet at 0.5% in 2024, down from 0.8% in its June outlook report.



The ratings agency forecast an additional 10 basis points of cuts in 2024, and another 20 basis points of cuts in 2025 for China.



On the other hand, Fitch noted that “The [Bank of Japan] is bucking the global trend of policy easing and hiked rates more aggressively than we had anticipated in July. This reflects its growing conviction that reflation is now firmly entrenched.”



With core inflation above the BOJ’s target for 23 straight months and companies prepared to grant “ongoing” and “sizable” wages, Fitch said that the situation was quite different from the “lost decade” in the 1990s when wages failed to grow amid persistent deflation.



This plays into the BOJ’s goal of a “virtuous wage-price cycle” — which boosts the BOJ’s confidence that it can continue to raise rates towards neutral settings.



Fitch expects the BOJ’s benchmark policy rate to reach 0.5% by the end of 2024 and 0.75% in 2025, adding “we expect the policy rate to reach 1% by end-2026, above consensus. A more hawkish BOJ could continue to have global ramifications.”

107317102-16972206592023-10-13t180751z_489645272_rc2tr3a11orj_rtrmadp_0_usa-fed-powell

Federal Reserve will opt for slow policy easing as there’s ‘still work to do’ on inflation, Fitch says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-820x547.jpg" alt="" class="wp-image-426578" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/QYHOX6JU6ZP33IVMKVBRYCGM7Q-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The offices of Fitch Ratings building appears empty in Canary Wharf, following the outbreak of the coronavirus disease (COVID-19), London, Britain, May 27, 2020. REUTERS/Dylan Martinez/File photo</figcaption></figure>



JOHANNESBURG, Sept 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s National Treasury said on Friday its plan to reduce expenditure and raise revenue, while implementing critical reforms, was in progress after credit rating agency Fitch affirmed its debt rating at &#8220;BB-&#8221; with a stable outlook.



Fitch said that key drivers affecting its decision to keep South Africa below investment grade include the country&#8217;s high debt-to-GDP ratio, low growth and high levels of inequality.



The ratings agency said that the formation of a government of national unity (GNU) after the May. 29 general elections lowers short term uncertainty and that the reform programme could contribute to modestly increasing real GDP growth.



Fitch acknowledged the marked improvement in power utility Eskom&#8217;s performance this year, but highlighted that ongoing challenges at state logistics group Transnet continue to constrain growth.



South Africa&#8217;s National Treasury said in response that the government would continue to implement &#8216;Operation Vulindlela&#8217;, a programme aimed at accelerating reforms in network industries.



&#8220;Extensive reforms in energy, freight, water, and telecommunications are also in progress,&#8221; it said in a statement.



The Treasury also said that fiscal consolidation efforts would continue and further steps to reduce borrowing over the medium term were being taken.



(Reporting by Kopano Gumbi; Editing by Elaine Hardcastle)

Outbreak of the coronavirus disease (COVID-19) in London

South Africa says reform agenda in progress after Fitch affirms ratings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-820x429.jpg" alt="" class="wp-image-530148" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5R2BE5PG4RMMTDUCOPH2YZFV5Q.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Colorized transmission electron micrograph of mpox virus particles captured at the NIAID Integrated Research Facility in Fort Detrick</figcaption></figure>



DAKAR, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;The Africa Centres for Disease Control and Prevention (Africa CDC) is able to raise $600 million to fight a surging mpox outbreak on the continent, the agency&#8217;s head said on Thursday.



The World Health Organization declared mpox a global health emergency in mid-August, after a new strain began spreading from the Democratic Republic of Congo to neighbouring countries.



&#8220;If you want to know if I&#8217;m positive that we can raise the $600 million, I will safely say yes,&#8221; Jean Kaseya, director general of Africa CDC, told reporters.



In August, the agency put the estimated cost of the mpox response at $245 million and said that it had secured only about $20 million. Kaseya did not say why the cost, which excludes the cost of vaccines, had increased.



Kaseya said funding could come from African Union countries, development partners, philanthropies and the private sector.



He said that international vaccine alliance GAVI had pledged assistance and Africa CDC was in discussions with The Pandemic Fund, a multilateral organisation that funds pandemic response.



Kaseya said that a transfer of technology to the continent would reduce the price of vaccines by 80%-90%.



Africa CDC said last month that talks had started with Danish biotech firm Bavarian Nordic BAVA.CO to manufacture its mpox vaccine in Africa, which Kaseya said would help make the vaccine affordable for African countries.



Kaseya will announce the amount raised at the U.N. General Assembly in New York this month.



Africa has seen over 26,000 suspected mpox cases including 724 deaths so far this year, Africa CDC data showed.



In Democratic Republic of Congo, children under 15 years account for about 60% of suspected cases and 80% of deaths this year, UNICEF said in a statement on Thursday.



(Reporting by Anait Miridzhanian; Editing by Cynthia Osterman)

5R2BE5PG4RMMTDUCOPH2YZFV5Q

Africa CDC confident it can raise $600 million for mpox response

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-820x547.jpg" alt="" class="wp-image-530059" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pravin Gordhan, South Africa&#8217;s minister for public enterprises, arrives on stage to speak during the future of South Africa conference in Cape Town, South Africa, on Wednesday, March 7, 2017. South Africa &#8220;could easily see&#8221; its economy expand by 2 percent to 3 percent in the next year or two as the government tackles graft at state-owned companies and implements plans to create jobs, Gordhan said. Photographer: Halden Krog/Bloomberg via Getty Images</figcaption></figure>



Former South African Finance Minister Pravin Gordhan has died after a short illness.



His family said Gordhan, who also previously served in the Ministries of Public Enterprises and Cooperative Governance, died in the early hours of Friday. He was 75.



Gordhan was lauded for standing up against corruption under former President Jacob Zuma during a period that came to be known as state capture when India’s Gupta brothers were accused of widespread bribery and corruption of government officials. He was a freedom fighter for the African National Congress during its struggle against apartheid rule.



“We have lost an outstanding leader whose unassuming persona belied the depth of intellect, integrity and energy with which he undertook his activism, his duty as a parliamentarian and his roles as a member of Cabinet,’’ President Cyril Ramaphosa said in a condolence message.



Gordhan was appointed as Commissioner of the South African Revenue Service (SARS) in 1999, after a period as Deputy Commissioner as South Africa transitioned to democratic rule. His decade at SARS was marked by improved tax collection and governance, which led to his appointment as Finance Minister in 2009 till 2014.



His family said Gordhan understood public service was for the greater good rather than self-enrichment.



“He understood that participation in government was not merely a technical or technocratic role. Rather, it was to advance the high public duty that the Constitution bestows on all of us: to uplift the poor, eliminate inequalities, fight racism, greed and corruption, and create a society where social justice and economic emancipation occur within a far-reaching transformation of our society.’’



Gordhan also briefly served as Minister of Cooperative Governance and Traditional Affairs from 2014 until 2015, and then as Minister of Public Enterprises from February 2018 until March this year when he retired.



“In the latter years of this service to the nation, and as a beacon of our fight against corruption, Pravin Gordhan stood up to derision and threats emanating from some in our nation who were scorched by his insistence that justice be dispensed against those who sought to undermine our democracy and raid our public resources and assets.’’



This is a breaking news story. Please check back for updates.

Pravin Gordhan

Former South African Finance Minister Pravin Gordhan Passes on

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-820x547.jpg" alt="" class="wp-image-529796" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, U.S., February 14, 2019. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;U.S. e-commerce giant Amazon.com&nbsp;is in South Africa for the long run, its regional marketplace head said on Thursday, after its&nbsp;first foray&nbsp;into Sub-Saharan Africa four months ago.



Africa&#8217;s most advanced economy is usually seen as a good entry point for companies to expand into the continent and Amazon could be doing the same, analysts have said.



Its entry comes amid a sharp rise in online shopping in South Africa after the pandemic created an opportunity for e-commerce to finally take hold, with retailers including Naspers-owned&nbsp;e-commerce leader Takealot.com doubling down on investments in response.



Unlike the fanfare arrival that shoppers expected, Amazon launched in May with limited products on its website and little marketing while it worked to bring independent sellers onto its platform. The company has not given details of its plans.



Amazon&#8217;s Head of Marketplace for Sub-Saharan Africa, Suzelle Abe, hinted at a gradual approach, telling potential sellers at an e-commerce conference in Johannesburg that the retailer would keep building its online store with more categories and sellers.



&#8220;We want to get to know the customers. We want to get to know a lot of important learnings and through that, we keep on building,&#8221; Abe said.



&#8220;And yes, we&#8217;re definitely here for the long run.&#8221;



The retailer, which made South Africa its 23rd launch country, recently added jewellery and luggage to its growing list of categories, Abe added, with more to come.



Amazon has two fulfilment centres in South Africa, one in Johannesburg and one in Cape Town, and has partnered with click-and-collect companies such as Pargo and home courier companies for last-mile delivery.



Apart from Takealot.com and local retailers, Amazon is also competing with U.S. retail giant Walmart Inc, which owns food and general merchandise group Massmart, and low-price fast-fashion sites Shein and Temu, which have disrupted South Africa&#8217;s discount fashion market.



(Reporting by Nqobile Dludla; Editing by Mark Potter)

FILE PHOTO: FILE PHOTO: The logo of Amazon is seen on the door of an Amazon Books retail store in New York

Amazon is in South Africa for the long run, says marketplace head

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg" alt="" class="wp-image-529745" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-1536x1005.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shoppers look for items as they shop at an outlet of retailer Checkers in Sandton City mall, in Sandton, South Africa, August 28, 2024. REUTERS/Lelethu Madikane</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;South African analysts, business people and trade unions further lowered their inflation expectations in the third quarter of this year, bringing them closer to the level targeted by the central bank, a quarterly survey showed on Thursday.



The results of the survey &#8211; a key data point for the central bank at its monetary policy meetings &#8211; are likely to reinforce expectations that the bank will cut its key rate for the first time in more than four years on Sept. 19.



The average inflation forecast for 2024 fell to 5.1% in the third quarter from 5.3% in the second quarter, the Bureau for Economic Research&#8217;s survey showed.



For 2025 the average dropped to 4.8% from 5.0% in the second quarter, and for 2026 it fell to 4.8% from 4.9%.



The South African Reserve Bank (SARB) tries to keep inflation close to 4.5%, the midpoint of its target band of 3%-6%. In explaining previous decisions to keep rates unchanged, it said inflation expectations were still uncomfortably high.



Forecasts for a September rate cut were buttressed by July&#8217;s year-on-year inflation falling to within a whisker of the midpoint at 4.6%. August&#8217;s inflation print is scheduled for release on Sept. 18, the day before the SARB&#8217;s rate announcement.



At the last monetary policy meeting in July two of the six members of the SARB&#8217;s Monetary Policy Committee voted for a 25 basis point cut, while four preferred no change, the eventual decision.



One worry for the central bank in the latest inflation expectations survey is that the inflation forecast of households rose steeply, reaching its highest level this year at 6.9% from 6.4% in the second quarter.



The rise was driven by the respondents in the low-income category, suggesting the poorest South Africans may be more exposed to price pressures.



(Reporting by Kopano Gumbi; Editing by Alexander Winning, William Maclean)

Shoppers look for items as they shop at an outlet of retailer Checkers

South African inflation expectations fall again in Q3

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-820x547.jpg" alt="" class="wp-image-529724" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Mary Vilakazi, incoming chief executive officer of FirstRand Ltd., at the bank&#8217;s headquarters in Johannesburg, South Africa, on Thursday, Jan. 11, 2023. FirstRand is looking to purchase other African banks in countries where it operates as the continent&#8217;s biggest lender by market value seeks to expand. Photographer Leon Sadiki/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters) &#8211; South African lender FirstRand posted a 4% rise in annual profit on Thursday despite absorbing a 3 billion rand ($167 million) pre-tax accounting provision related to an investigation by Britain into the vehicle finance market.



Its normalised earnings rose to 38 billion rand in the year ended June 30 from 36.6 billion the previous year, the bank said.



Excluding the provision, normalised earnings grew by 10%, group CEO Mary Vilakazi said in a statement.



British lenders have been told by the Financial Conduct Authority to ensure they are adequately prepared to meet the potential costs of customer complaints arising from its review into the motor finance industry.



The regulator began looking into potential overcharging in the industry in January, amid rising tensions between thousands of consumers and lenders over commission arrangements.



In addition to the provision, 300 million rand of legal and professional fees were incurred in relation to the UK probe, the bank said.



($1 = 17.9160 rand)



(Reporting by Nqobile Dludla; editing by Jason Neely and Emelia Sithole-Matarise)

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Central bank digital currency momentum growing, study shows

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