<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/7KVHJR6UA5PHZGXNL4DBLFNXXE.avif" alt="" class="wp-image-554607"/><figcaption class="wp-element-caption">People buy and sell vegetables at Mile 12 International Market in Lagos, Nigeria May 13, 2022. REUTERS/Temilade Adelaja/File photo</figcaption></figure>



ABUJA, Nov 15 (Reuters) &#8211; Nigeria&#8217;s inflation rate rose for the second straight month in October, advancing to 33.88% in annual terms NGCPIY=ECI from 32.70% in September mainly due to higher food prices, official data showed on Friday.



Inflation quickened sharply in the second half of last year after President Bola Tinubu devalued the country&#8217;s naira currency&nbsp;NGN=D1&nbsp;and cut subsidies to try to lift economic growth and shore up public finances.



It started to ease in July this year as the impact of the naira devaluation began to fade, but a series of petrol price increases and severe flooding that has wiped out crops again spurred price pressures, exacerbating the worst cost-of-living crisis in decades in Africa&#8217;s most populous nation.



A report by the National Bureau of Statistics said food inflation reached 39.16% year-on-year in October from 37.77% the previous month&nbsp;NGFINF=ECI, caused by price rises for staples such as rice, maize, bread, potatoes and cooking oil.



Torrential rain and floods in 29 of Nigeria&#8217;s 36 states this year have destroyed more than 1.5 million hectares of cropland, making millions go hungry and causing mass displacement.



The central bank has hiked interest rates five times this year to try to get inflation under control. It is due to announce its final rate decision&nbsp;NGCBIR=ECI&nbsp;of the year on Nov. 26.



(Reporting by Chijioke Ohuocha; Additional reporting by Mohd Edrees in Bengaluru; Editing by Alexander Winning)

7KVHJR6UA5PHZGXNL4DBLFNXXE

Nigeria inflation rises for second month, spurred by food

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/XITIO74YJBM5XNTYYV6EQSSGSY-2-820x548.jpg" alt="" class="wp-image-554521" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/XITIO74YJBM5XNTYYV6EQSSGSY-2-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/XITIO74YJBM5XNTYYV6EQSSGSY-2-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/XITIO74YJBM5XNTYYV6EQSSGSY-2-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/XITIO74YJBM5XNTYYV6EQSSGSY-2-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/XITIO74YJBM5XNTYYV6EQSSGSY-2-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/XITIO74YJBM5XNTYYV6EQSSGSY-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, file. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Nov 15 (Reuters)&nbsp;&#8211;&nbsp;The rand eased early on Friday, extending a week of losses following Donald Trump&#8217;s U.S. election win, and ahead of S&amp;P Global&#8217;s scheduled review of South Africa&#8217;s sovereign credit rating.



At 0705 GMT, the rand traded at 18.28 against the U.S. dollar&nbsp;ZAR=D3, about 0.2% weaker than its previous close.



The rand has endured five sessions of losses as the dollar rallied after Trump&#8217;s victory, while markets fretted over potential policies by the president-elect, which could include tariffs and tax cuts.



Investors will on Friday look to S&amp;P Global&#8217;s scheduled review of South Africa&#8217;s sovereign credit rating.



Analysts expect Africa&#8217;s most industrialised economy to remain three notches into sub-investment grade at &#8216;BB-&#8216;, with a stable outlook.



On the Johannesburg stock market, the blue-chip Top-40 index&nbsp;.JTOPI&nbsp;was flat.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was little changed in early deals, with the yield at 9.155%.



(Reporting by Tannur Anders; Editing by Kirsten Donovan)

New South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg

South African rand extends losses; S&P rating review due

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UBA56WNMY5LWDEZ67BOH74TT2U-820x429.jpg" alt="" class="wp-image-554238" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UBA56WNMY5LWDEZ67BOH74TT2U-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UBA56WNMY5LWDEZ67BOH74TT2U-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UBA56WNMY5LWDEZ67BOH74TT2U-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UBA56WNMY5LWDEZ67BOH74TT2U-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UBA56WNMY5LWDEZ67BOH74TT2U-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UBA56WNMY5LWDEZ67BOH74TT2U.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The head of Nigeria&#8217;s state oil company NNPC, Mele Kyari, speaks during an interview with Reuters in Abuja, Nigeria August 7, 2019. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Nov 14 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s state oil firm NNPC said on Thursday it had increased oil production to 1.8 million barrels per day (bpd), with the possibility of getting to two million bpd by year-end.



Oil production at Africa&#8217;s top crude exporter was estimated at 1.3 million bpd in October, according to producer group OPEC&#8217;s latest report. Nigeria often counts condensate production of around 250,000 bpd as part of its production.



The NNPC said the increase was a result of collaborative efforts with its joint venture operators and its partners on production-sharing contracts, alongside security agencies and the government.



&#8220;The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are in the short and long terms acceptable to our shareholders,&#8221; NNPC CEO Mele Kyari told a press briefing.



Nigeria has been battling crude theft in its Niger Delta production region, sabotage, and local unrest, which has hampered output growth.



In June, NNPC set up a &#8216;war room&#8217; to coordinate efforts of oil partners, the government and private security personnel to stem crude theft. Since then, several vessels used in stealing crude have been destroyed and some illegal refiners arrested.



Kyari said the interventions across every segment of the production chain, supported by rigorous pipeline monitoring from security agencies, had been critical to the recovery.



(Reporting by Camillus Eboh in Abuja and Isaac Anyaogu in Lagos. Writing by Chijioke Ohuocha. Editing by Tomasz Janowski and Mark Potter)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UBA56WNMY5LWDEZ67BOH74TT2U

Nigeria lifts oil production to 1.8 mln barrels per day

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4032" height="1960" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/NB4Q7CHLRFODVLN7TXTDGJIBOY-1.avif" alt="" class="wp-image-554153"/><figcaption class="wp-element-caption">Homes are submerged in water after a massive flood in N&#8217;djamena, Chad, October 14, 2022. REUTERS/Mahamat Ramadane/File Photo</figcaption></figure>



N&#8217;DJAMENA, Nov 14 (Reuters)&nbsp;&#8211;&nbsp;The deputy director of Chad&#8217;s National Meteorological Agency waggled his finger up and down to demonstrate how a motionless humidity gauge at the agency&#8217;s headquarters should have been working.



The broken hygrothermograph was among the dustblown outdoor equipment in the capital N&#8217;Djamena that is meant to help the agency known as ANAM to track weather patterns.



The situation in Chad is replicated across much of Africa, a continent sorely lacking the reliable forecasts that are a keystone of disaster management as climate change makes extreme weather more frequent.



At COP29 climate talks on Wednesday, U.N. Secretary-General Antonio Guterres called for urgent action to overcome a shortage of data and funding. The aim is to meet a target for universal protection by end-2027 from early warning systems to help preparation for extreme weather events.



For Chad, that appears a particularly ambitious goal.



Around 80% of the devices at the agency&#8217;s site in N&#8217;Djamena are not operational, Deputy Director Hamid Abakar Souleymane told Reuters in October, as Chad battled another season of devastating floods.



&#8220;The reliability of weather information depends on the resources invested in producing it,&#8221; he said, describing a relentless push for more funding and trained personnel.



Africa, a continent of 1.5 billion people, has the world’s least developed weather and climate observation network with fewer stations operating to global basic standards than Germany, according to the World Meteorological Organization.



&#8220;There are many declared stations that exist or may not exist. In fact, many of them are not sharing data,&#8221; said Albert Fischer, director of the WMO Integrated Global Observing System division.



As of the third quarter of 2024, only two out of 53 African WMO countries were compliant with basic requirements for ground-level observation stations, Fischer said.



Being unprepared has deadly consequences. Floods not only happen more often across Africa than in Europe and North America combined, but they kill four times more people on average due to a lack of preparedness and warnings, a 2023 article in the journal Nature said.



<h2 class="wp-block-heading" id="h-no-one-warned-us">&#8220;NO ONE WARNED US&#8221;</h2>



Good weather data alone is not enough, as evidenced by deadly floods in October in Spain when some local authorities were blamed for failing to raise the alarm in time.



Chad&#8217;s plight nevertheless shows the scale of what can happen when disaster strikes one of the most vulnerable and data-poor regions on earth.



Heavier-than-usual seasonal rains in parts of West and Central Africa drove rivers to break their banks in recent months, leading to floods in every one of Chad&#8217;s provinces with 1.9 million people affected, over 570 killed, and 72,000 heads of cattle swept away.



&#8220;Everywhere is flooded. We have lost our fields of sorrel, beans, and grain. Everything is destroyed now because no one warned us of such a catastrophe,&#8221; mother-of-four Josiane Allasra said, speaking at a makeshift camp for displaced people on the outskirts of N&#8217;Djamena in late October.



&#8220;We&#8217;re hungry and we have nowhere to shelter our children.&#8221;



ANAM did not have the resources to track the worsening conditions as the disaster unfolded across a country the size of France and Spain combined.



&#8220;We have significantly less than we need. We need stations and we need funding,&#8221; Souleymane said during a tour of ANAM&#8217;s N&#8217;Djamena facilities, where stacks of old weather data spilled out over the floor of the archive and packaged equipment gathered dust.



A 2023 review of Chad&#8217;s hydromet capacity, found that it had just two trained forecasters, making round-the-clock forecasting and warning impossible.



The agency also lacks the financial and technical means to maintain a network of new automatic weather stations from the U.N. Development Programme, which anyway only covered the south and centre of the country, the report said.



&#8220;There&#8217;s a lot of wasted investment and infrastructure that is scattered &#8230; around Africa,&#8221; said Ana Heureux, programme management officer at a U.N. fund that supports countries like Chad to close their vast data gaps.



Under a five-year programme, the Systematic Observations Financing Facility (SOFF) plans to help Chad upgrade or launch 34 weather stations to global observation standards. Chad currently has one surface-land weather station.



To avoid a situation in which authorities find themselves with technology they do not have the expertise and funds to maintain, SOFF&#8217;s strategy includes making use of advisers from developed countries. Once up-and-running, countries will continue to receive SOFF support provided they share their data internationally, Heureux said.



&#8220;Finally, we have one fund that&#8217;s really dedicated to long-term support,&#8221; said the WMO&#8217;s Fischer.



Since mid-2022, SOFF has supported 23 African countries. However, its own funding outlook is uncertain. Since 2020, it has raised $94 million out of a target of $200 million by 2025.



There &#8220;has been a bit of a challenging fundraising donor environment, with everything happening in the world,&#8221; said Heureux, adding that SOFF hoped to close the gap including via a big fundraising push at COP29.



(Editing by Barbara Lewis)

NB4Q7CHLRFODVLN7TXTDGJIBOY

Africa has world’s least developed weather observation network

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/UP2NUJ3FC5MHFCYLXSKRKTCMZA-820x547.jpg" alt="" class="wp-image-554111" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/UP2NUJ3FC5MHFCYLXSKRKTCMZA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/UP2NUJ3FC5MHFCYLXSKRKTCMZA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/UP2NUJ3FC5MHFCYLXSKRKTCMZA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/UP2NUJ3FC5MHFCYLXSKRKTCMZA-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/UP2NUJ3FC5MHFCYLXSKRKTCMZA-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/UP2NUJ3FC5MHFCYLXSKRKTCMZA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A supporter of Senegal&#8217;s Prime Minister and the head of the ruling Pastef party Ousmane Sonko reacts as he attends a campaign rally for the upcoming early legislative election, in Guediawaye on the outskirts of Dakar, Senegal, November 13, 2024. REUTERS/Zohra Bensemra</figcaption></figure>



DAKAR, Nov 14 (Reuters)&nbsp;&#8211;&nbsp;Senegal will vote in legislative elections on Sunday that will determine whether the new president and government can gain control over the national assembly and push through their agenda for reforms.



The high stakes in the election are threatening to spark renewed unrest following a period of calm. The run-up to the presidential election in March saw some of the worst violence in the country&#8217;s recent history.



Campaigning has grown heated in recent days and comes at a precarious time for the new government, which is navigating a spiraling fiscal crisis that could undermine its ability to deliver on promises to boost the economy and create jobs.



Prime Minister Ousmane Sonko, known for his fiery rhetoric, said this week that his supporters had come under attack and urged them to take revenge. He has also warned that restraint should not be mistaken for weakness.



&#8220;Let them not say that we&#8217;ve changed and that since we came, everyone can do as they please,&#8221; he said on Tuesday evening. &#8220;We could have used our strength, but we didn&#8217;t.&#8221;



Top priorities for Senegalese voters are jobs and the economy, as inflation has squeezed livelihoods and the nation&#8217;s growing youth population struggle to find employment.



More than 7 million registered voters will have the chance to vote for candidates for the 165 seat-assembly, choosing between 41 registered parties or other entities. Polls open at 8 a.m. (0800 GMT) and close at 6 p.m.



&#8220;We want a lower cost of living, affordable water, electricity, and transport, so everyone can work and live decently,&#8221; said Cheikh Diagne, a street seller in downtown Dakar.



Babacar Ndiaye, research director at the think-tank WATHI, said that Senegalese have historically voted in favour of the president during previous parliamentary elections.



&#8220;When they choose a president, they then give that president the means to work and govern,&#8221; he said. &#8220;Every time a president has won, he has in due course also gained an absolute majority in the National Assembly.&#8221;



The West African country is plunging towards a debt crisis after the new government said it had discovered the budget deficit was much wider than reported by the previous government. A $1.9 billion IMF programme is on hold while the government audit is reviewed.



The main threat to the ruling party Pastef&#8217;s ambitions is the unexpected alliance of two opposition parties, including the Republic party (APR) headed by the former Prime Minister Macky Sall.



The race also includes two smaller opposition coalitions. The one led by Dakar&#8217;s mayor, Barthelemy Dias, has clashed with supporters of Pastef.



Mariam Wane Ly, a former parliamentarian and trailblazer for women in politics in Senegal, said the campaign period had given leaders a chance to explain their agendas and she expected Pastef to win the majority it is seeking.



&#8220;I think it&#8217;s going to make up for all the unhappiness,&#8221; she said.



(Additional reporting by Portia Crowe; Editing by Alex Richardson)

Campaign rally for the early legislative elections in Dakar

Senegal heads to the polls amid fiscal crisis, threat of unrest

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg" alt="" class="wp-image-486141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-1536x1012.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A shopper walks past a Vodacom shop in Johannesburg, file. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



CAPE TOWN, (Reuters) &#8211; South Africa&#8217;s biggest mobile operator Vodacom is looking at taking a new low-price phone that uses the cloud to offer smartphone-style features to other African markets, an executive said on Wednesday.



Mobile internet penetration in sub-Saharan Africa was just 27% at the end of 2023, with millions struggling to access services because smartphones are too expensive or network coverage unavailable, according to the GSMA industry body.



The South African unit of Vodacom, majority-owned by Britain&#8217;s Vodafone, recently launched a cloud-based smart feature phone, which is manufactured by South African mobile phone firm Mobicel. Vodacom is a reseller.



Vodacom introduced it as a way to reduce the cost of smartphone access and to accelerate migrating customers from legacy 2G and 3G networks to modern 4G networks as South Africa starts phasing out these older networks.



&#8220;We have sold roughly a bit less than 100,000 devices in South Africa,&#8221; Davide Tacchino, managing executive for terminals at Vodacom South Africa, told Reuters at the Africa Tech conference, adding that the company was seeing interest from customers and distributors.



&#8220;At this stage, it&#8217;s South Africa, but we are evaluating to expand in the other markets.&#8221;



The phone, retailing at 199 rand ($11), leverages the power of cloud computing to deliver a range of features typically associated with entry smartphones at a more affordable cost.



It comes with popular applications such as YouTube, TikTok and Facebook, all accessed via the cloud, giving users a &#8220;smartphone lite&#8221; experience.



Mobile operators are racing to shift their customers to 4G and 5G networks as South Africa has proposed gradually phasing out and shutting down older networks by the end of 2027.



As well as introducing more affordable devices, operators are offering pre-paid device financing options, but they have also asked the government to cut taxes on smartphones.



South Africa&#8217;s Communications Minister Solly Malatsi told Reuters on Tuesday that he had held encouraging preliminary talks with the Treasury about his proposals to cut those taxes.



($1 = 18.1781 rand)



(Reporting by Nqobile Dludla. Editing by Mark Potter)

FILE PHOTO: A shopper walks past a Vodacom shop in Johannesburg

S.Africa’s Vodacom eyes taking cloud-based phone to other African markets

<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/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg" alt="" class="wp-image-529685" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



NAIROBI, Nov 13 (Reuters) &#8211; The International Monetary Fund should sell 4% of its gold to help offer debt relief to low income countries devastated by climate-related catastrophes, a study said as climate financing dominates early talks at the COP29 summit.



From the Caribbean to Africa, low income countries have turned to the IMF in recent years for support in the face of shocks like the COVID-19 pandemic, driving up repayments to the lender of last resort in subsequent years.



Although the IMF has a facility known as Catastrophe Containment Relief Trust (CCRT), this only covers 30 poor countries and has just $103 million available, said researchers from the Boston University Global Development Centre.



The CCRT is used to pay off an eligible member state&#8217;s loans to the IMF for up to two years, providing immediate relief and allowing those funds to be targeted at other priorities.



&#8220;Many climate-vulnerable countries have been unable to access the CCRT as its eligibility criteria fails to account for climate vulnerability &#8230; and funding is severely limited,&#8221; the researchers said in a report.



The solution lies in selling some of the IMF&#8217;s 90.5 million ounces of gold reserves, the report said, taking advantage of elevated prices to boost the fund and cover more countries.



Selling 4% of the IMF&#8217;s gold would generate $9.52 billion, the study said, covering debt relief for 86 countries.



&#8220;With current gold prices exceeding $2,600 per ounce, selling a small fraction of gold has the potential to generate significant revenues and easily replenish the CCRT,&#8221; it said.



Gold was trading at $2,606.42 per ounce on Wednesday.



IMF gold reserve sales are rare. The last was in 2009/10, when it offloaded an eighth of its reserves, which was triggered by the need to boost its lending capacity.



At its inception in 1944, member states used to pay their IMF quotas with gold, the research report said, meaning it accumulated reserves at a historical cost of just $45 per ounce.



Repayments of IMF loans are taking a bigger chunk of annual debt servicing costs for vulnerable economies, the report said.



The Indian Ocean island of Madagascar will pay $106 million to the IMF next year, a quarter of its debt service, rising to $158 million and 41% in 2026, the report added.



Mozambique will also experience an increase in repayments to the IMF during a similar period, the researchers found.



Any sale of IMF gold would require support from the bulk of its executive board members, and for member states to pledge to channel their share of the proceeds to the CCRT, they said.



&#8220;Replenishing the CCRT should be considered a high priority because, in contrast to other IMF lending programs, the CCRT comes with no conditionality,&#8221; they concluded.



(Reporting by Duncan Miriri; Editing by Alexander Smith)

FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington

IMF urged to cash in on gold price to help poor countries hit by climate change

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-452758655-820x546.jpg" alt="" class="wp-image-553742" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-452758655-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-452758655-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-452758655-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-452758655-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-452758655-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-452758655-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">JOHANNESBURG, SOUTH AFRICA &#8211; DECEMBER 01: Danny Jordaan (SAFA president) during the arrival of the FIFA World Cup Trophy at Lanseria Airport on December 01, 2013 in Johannesburg, South Africa. (Photo by Lee Warren/Gallo images)</figcaption></figure>



JOHANNESBURG, Nov 13 (Reuters)&nbsp;&#8211;&nbsp;South African Football Association (SAFA) President Danny Jordaan was arrested on Wednesday over allegations he used the organisation&#8217;s money for his own purposes, according to local media reports.



Jordaan, who was a leading figure in bringing the 2010 World Cup to South Africa, had tried to interdict his imminent arrest on Tuesday, but the Johannesburg High Court is only scheduled to hear his submission on Thursday.



The arrest stems from a raid by police on the SAFA offices in March, after which police spokesperson Katlego Mogale said the allegations are that &#8220;between 2014 and 2018, the president of SAFA used the organisation&#8217;s resources for his personal gain, including hiring a private security company for his personal protection and a public relations company, without authorisation from the SAFA board.&#8221;



Jordaan, 73, and his reported co-accused, SAFA chief financial officer Gronie Hluyo and businessman Trevor Neethling, are due to appear in court later on Wednesday.



Neither Jordaan nor SAFA responded to a request for comment from Reuters, but in his affidavit to court seeking to block his arrest, he denies any wrongdoing.



(Reporting by Nick Said; Editing by Christian Radnedge)

FIFA World Cup Trophy arrives at Lanseria Airport

South Africa FA president Danny Jordaan arrested

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ZTA2SOQSIFIDVMFOYKRV5C5I24-820x615.jpg" alt="" class="wp-image-553691" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ZTA2SOQSIFIDVMFOYKRV5C5I24-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ZTA2SOQSIFIDVMFOYKRV5C5I24-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ZTA2SOQSIFIDVMFOYKRV5C5I24-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ZTA2SOQSIFIDVMFOYKRV5C5I24-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ZTA2SOQSIFIDVMFOYKRV5C5I24-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ZTA2SOQSIFIDVMFOYKRV5C5I24-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Zainab Abubakar eats cooked food with her children at Gubio IDP camp in Maiduguri, Nigeria October 28, 2024. REUTERS/Abraham Achirga</figcaption></figure>



GUBIO, Nigeria, Nov 13 (Reuters)&nbsp;&#8211;&nbsp;Unrelenting price rises and a brutal insurgency had already made it hard for Nigerians in northeastern Borno State to feed their families. When a dam collapsed in September, flooding the state capital and surrounding farmland, many people ran out of options.



Now they queue for handouts in camps for those displaced by fighting between extremist Boko Haram rebels and the military. When those run out, they seek work on local farms where they risk being killed or raped by local bandits.



&#8220;I can&#8217;t even cry anymore. I&#8217;m too tired,&#8221; said Indo Usman, who tried to start again in the state capital Maiduguri, rearing animals for the two annual Muslim holy days, after years of repeatedly fleeing rebel attacks in rural Borno.



The flood washed that all away, driving her, her husband and their six children to a bare room at Gubio, an unfinished housing project about 96 km (60 miles) northwest of Maiduguri that has become a displacement camp.



Torrential rains and floods in 29 of Nigeria&#8217;s 36 states this year have destroyed more than 1.5 million hectares of cropland, affecting more than nine million people, according to the Food and Agriculture Organization of the United Nations.



Climate change is a factor, as is Nigeria&#8217;s poorly maintained or non-existent infrastructure as well as vulnerabilities caused by the weakening Naira currency and the scrapping of a government fuel subsidy.



The cost of staples like rice and beans has doubled, tripled or even quadrupled in a year, depending on location &#8212; an unmanageable shock for millions of poor families.



Mass kidnappings for ransom in the northwest and conflict between farmers and pastoralists in the central belt, traditionally the nation&#8217;s bread basket, have also disrupted agriculture and squeezed food supplies.



<h2 class="wp-block-heading" id="h-hungriest-of-the-hungry">&#8216;HUNGRIEST OF THE HUNGRY&#8217;</h2>



Roughly 40% of Nigeria&#8217;s more than 200 million people live below the international poverty line of $2.15 per person per day, the World Bank estimates.



Already, 25 million people live in acute food and nutrition insecurity &#8211; putting their lives or livelihoods in immediate danger, according to a joint analysis by the government and U.N. agencies. That number is expected to rise to 33 million by next June-August.



&#8220;The food crisis in Nigeria is immense because what we are seeing is a crisis within a crisis within a crisis,&#8221; said Trust Mlambo, head of programme for the northeast at the World Food Programme, in an interview with Reuters in Maiduguri.



With international donors focused on emergencies in Gaza, Ukraine and Sudan, Mlambo said there was not enough funding to fully meet Nigeria&#8217;s growing need for food aid.



&#8220;We are really prioritising the hungriest of the hungry,&#8221; he said.



In Borno, the Alau dam, upriver from Maiduguri, gave way on Sept. 9, four days after state officials had told the public it was secure. Local residents and engineers had been warning that it was under strain.



Hundreds of people were killed in the resulting flood, according to aid workers who did not wish to be identified for fear of offending the state government. A spokesperson for the state government did not respond to requests for comment.



Zainab Abubakar, a self-employed tailor in the city who lived in relative comfort with her husband and six children in a house with a refrigerator, was awoken at midnight by water rushing into her bedroom.



They ran for their lives while the flood destroyed their house and carried everything away, including her sewing machine. Now, they are sheltering at Gubio and collecting rice from aid agencies in a plastic bucket.



&#8220;There is no alternative,&#8221; she said.



In Banki, on Nigeria&#8217;s border with Cameroon about 133 km (83 miles) southeast of Maiduguri, Mariam Hassan lost crops of maize, pepper and then okra in repeated flooding of her subsistence farm this year, leaving her with nothing to eat or sell.



&#8220;I beg the neighbours or relatives to give me food, not even for me but for my children, for us to survive,&#8221; said Hassan, who has eight children. &#8220;The situation has turned me into a beggar.&#8221;



(Additional reporting by Ahmed Kingimi and MacDonald Dzirutwe; Writing by Estelle Shirbon; Editing by Philippa Fletcher)

More Nigerians face hunger as floods worsen impact of inflation, conflict

Millions of Nigerians go hungry as floods compound hardship

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WTO-820x547.jpg" alt="" class="wp-image-553664" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WTO-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WTO-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WTO-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WTO-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WTO-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/WTO-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Meghan, Duchess of Sussex (not pictured), co-hosts an event of Women in Leadership with Dr Ngozi Okonjo-Iweala, Director General of the World Trade Organization in Abuja, Nigeria, May 11, 2024. REUTERS/Marvellous Durowaiye/File Photo</figcaption></figure>



GENEVA, Nov 12 (Reuters)&nbsp;&#8211;&nbsp;The World Trade Organization&nbsp;is&nbsp;planning&nbsp;a special meeting of its top decision-making body later this month where a call could be made on the reappointment of its&nbsp;Director-General Ngozi Okonjo-Iweala, a document showed on Tuesday.



Trade sources said such a meeting appeared to be a route that could fast-track the appointment process to avoid any risk of it getting blocked by U.S. President-elect Donald Trump, whose teams and allies have criticised both Okonjo-Iweala and the trade watchdog in the past.



The&nbsp;WTO document sent by the General Council chair said the first day of the Nov. 28-29 meeting would allow Okonjo-Iweala, a former Nigerian finance minister, to present her vision for the 166-member organisation and answer delegates&#8217; questions. The second day could provide &#8220;an opportunity for Members to take a decision on the appointment of the next Director-General&#8221;, it said.



Okonjo-Iweala, 70, is the sole candidate for the job and told Reuters she wants to complete &#8220;unfinished business&#8221; from her first term which includes new rules on cutting fishing subsidies and finding a fix for its hobbled appeals court.



Dozens of countries have voiced support in recent WTO meetings for her reappointment after her term expires on Aug. 31,&nbsp;2025. But some have privately observed that the WTO&#8217;s election process, which typically lasts months, could allow for Trump&#8217;s team to oppose her candidacy.



Trump is set to be inaugurated on Jan. 20.



In 2020, his administration gave its support to a rival candidate and sought to block her first term. She secured U.S. backing only when President Joe Biden succeeded Trump in the White House.



Those who follow the trade body say it is likely to face a messy, recriminatory period for trade under Trump. He has vowed to impose new tariffs of 10%-20% on global imports and 60% on goods from China, well above the rates it has committed to under WTO rules and upending global trade flows.



Asked about the potential to speed the WTO&#8217;s reappointment of Okonjo-Iweala, Trump&#8217;s transition team responded with a non-specific answer.



&#8220;The American people reelected President Trump because they trust him to lead our country and restore peace through strength around the world. When he returns to the White House, he will take the necessary action to do just that,&#8221; a Trump-Vance transition spokesperson said in an emailed statement.



The U.S. Trade Representative&#8217;s office, still controlled by the Biden administration, declined to comment.



There is no guarantee that WTO members, which approve decisions by consensus, will agree to a second term for Okonjo-Iweala at the November meeting and the chair could opt to postpone the decision, trade sources said.



If they do pursue it, it might backfire, suggested Keith Rockwell, a former WTO director and senior fellow at the Hinrich Foundation. &#8220;Let&#8217;s see how the United States likes being pushed into a corner,&#8221; he said, calling the actions to speed up the appointment process &#8220;unprecedented.&#8221;



(Reporting by Emma Farge; Additional reporting by David Lawder in Washington; editing by Thomas Seythal, Alexandra Hudson and Richard Chang)

Meghan, Duchess of Sussex, co-hosts an event of Women in Leadership with Dr Ngozi Okonjo-Iweala, Director General of the World Trade Organization in Abuja

WTO may seek to reappoint chief ahead of Trump presidency

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA.jpg" alt="" class="wp-image-529012" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA-300x205.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TJORLERHRFO4NIRPMFSZ32CFMA-768x525.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: An oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo</figcaption></figure>



Oil prices may see a drastic fall in the event that oil alliance OPEC+ unwinds its existing output cuts, said market watchers who are predicting a bearish year ahead for crude.



“There is more fear about 2025′s oil prices than there has been since years — any year I can remember, since the Arab Spring,” said Tom Kloza, global head of energy analysis at OPIS, an oil price reporting agency.



“You could get down to $30 or $40 a barrel if OPEC unwound and didn’t have any kind of real agreement to rein in production. They’ve seen their market share really dwindle through the years,” Kloza added.



A decline to $40 a barrel would mean around a 40% erasure of current crude prices. Global benchmark Brent is currently trading at $72 a barrel, while U.S. West Texas Intermediate futures are around $68 per barrel.



Given that oil demand growth next year probably won’t be much more than 1 million barrels a day, a full unwinding of OPEC+ supply cuts in 2025 would “undoubtedly see a very steep slide in crude prices, possibly toward $40 a barrel,” Henning Gloystein, head of energy, climate and resources at Eurasia Group, told CNBC.&nbsp;



Similarly, MST Marquee’s senior energy analyst Saul Kavonic posited that should OPEC+ unwind cuts without regard to demand, it would “effectively amount to a price war over market share that could send oil to lows not seen since Covid.”



However, the alliance is more likely to opt for a gradual unwinding early next year, compared to a full scale and immediate one, the analysts said.



The oil cartel has been exercising discipline in maintaining its voluntary output cuts, to the point of extending them.



In September, OPEC+ postponed plans to begin gradually rolling back on the 2.2 million barrels per day of voluntary cuts by two months in an effort to stem the slide of oil prices. The 2.2 million bpd cut, which was implemented over the second and third quarters, had been due to expire at the end of September.&nbsp;



At the start of this month, the oil cartel again decided to delay the planned oil output increase by another month to the end of December.



Oil prices have been weighed by a sluggish post-Covid recovery in demand from China, the world’s second-largest economy and leading crude oil importer. In its monthly report released Tuesday, OPEC lowered its 2025 global oil demand growth forecast from 1.6 million barrels per day to 1.5 million barrels per day.



The pressured prices were also conflagrated by a perceivably oversupplied market, especially as key oil producers outside the OPEC alliance like the U.S., Canada, Guyana and Brazil are also planning to add supply, Gloystein highlighted.



<h2 class="wp-block-heading" id="h-bearish-year-ahead-for-oil"><a></a>Bearish year ahead for oil</h2>



The market consensus is that there’ll be a “substantial” oil stock build next year, said Citibank energy strategist Martoccia Francesco.



“Should the producers group proceed with their production plan, the market surplus could nearly double… reaching as much as 1.6 million barrels per day,” said Francesco.&nbsp;



Even if OPEC+ doesn’t unwind the cuts, the future ofl prices is still looking break. Citi analysts expect Brent price to average $60 per barrel next year.



Further fueling the bearish outlook is the incoming administration of U.S. President-elect Donald Trump, whose return is associated by some with a potential trade war, said analysts who spoke to CNBC.



“If we do get a trade war — and a lot of economists think that a trade war is possible, and particularly against China — we could see much, much lower prices,” said OPIS’ Kloza.



Trump has also touted a “drill baby drill” policy for U.S. producers, vowing to cut energy prices in half.



For that to happen to retail gasoline prices, oil would need to drop to “below $40” per barrel, said Matt Smith, Kpler’s lead oil analyst.



Right now, retail gasoline prices are at a “sweet spot” at $3 per gallon, where consumers do not feel the pinch and input prices are still sufficiently high for producers, Smith added.

FILE PHOTO: An oil pump jack outside Almetyevsk, Russia

Oil could plunge to $40 in 2025 if OPEC unwinds voluntary production cuts, analysts say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="564" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5ZABZJ64ORN6FNDDUVALDCPACU-820x564.jpg" alt="" class="wp-image-553370" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5ZABZJ64ORN6FNDDUVALDCPACU-820x564.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5ZABZJ64ORN6FNDDUVALDCPACU-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5ZABZJ64ORN6FNDDUVALDCPACU-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5ZABZJ64ORN6FNDDUVALDCPACU-768x528.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5ZABZJ64ORN6FNDDUVALDCPACU-1536x1056.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5ZABZJ64ORN6FNDDUVALDCPACU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A shopper walks past the DSTV satellite TV subscription store, a product of MultiChoice Group Limited, a South Africa-based entertainment company, at the Mall of the North, in Polokwane, in the Limpopo province of South Africa, March 31, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Nov 12 (Reuters) &#8211; South African pay television company MultiChoice Group reported a 99% fall in half-year profit on Tuesday and described the operating environment as &#8220;extremely hostile&#8221;.



The owner of DStv, whose pay-TV business operates across 50 countries in sub-Saharan Africa, said its performance was marred by weaker local currencies and constrained consumer spending particularly in Nigeria and extreme power disruptions in Zambia.



Multichoice said its adjusted core headline earnings per share &#8211; its measure of the underlying performance &#8211; fell to 2 cents per share for the six months ended Sept. 30, down from 356 cents per share a year earlier.



Overall group revenue at Multichoice fell by 10% to 25.4 billion rand ($1.41 billion) on a reported basis but grew by 4% on an organic basis, which excludes the impact of foreign exchange effects and mergers and acquisitions.



Multichoice said subscriptions fell by 5% and 15% respectively in its South African and Rest of Africa operations.



It said profit was further hit by incremental investments in streaming platform Showmax, which Multichoice is prioritising to fight off competition from streaming giants Netflix, Amazon and Disney.



&#8220;Stripping out Showmax, the group would have seen reported trading profit increase by 28% on an organic basis,&#8221; said Multichoice, whose shares were down 0.3% at 1212 GMT.



(Reporting by Sfundo Parakozov; Editing by Tannur Anders, Jan Harvey and Alexander Smith)

A shopper walks past the DSTV satellite TV subscription store, in Polokwane

South Africa’s Multichoice profit plunges as subscriptions slip

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="527" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KB3XP45BC5OJRD6EVRXRJ2KARA-1-820x527.jpg" alt="" class="wp-image-553304" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KB3XP45BC5OJRD6EVRXRJ2KARA-1-820x527.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KB3XP45BC5OJRD6EVRXRJ2KARA-1-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KB3XP45BC5OJRD6EVRXRJ2KARA-1-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KB3XP45BC5OJRD6EVRXRJ2KARA-1-768x494.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KB3XP45BC5OJRD6EVRXRJ2KARA-1-1536x988.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KB3XP45BC5OJRD6EVRXRJ2KARA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Job seekers wait beside a road for casual work offered by passing motorists in Eikenhof, south of Johannesburg, South Africa, November 20, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



PRETORIA, Nov 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s unemployment rate fell in the three months after the formation of a coalition government that has boosted business confidence and led to hopes for more progress on economic reform, data showed on Tuesday.



The official unemployment rate fell to 32.1% in the third quarter of 2024, from 33.5% in the second quarter, the first time the official rate had fallen in a year, Statistics South Africa figures showed.



The coalition government was formed in June after the African National Congress lost its parliamentary majority for the first time in 30 years, pushing it into a broad alliance with the market-friendly Democratic Alliance and other smaller parties.



Investor optimism over the coalition fuelled a rally in the country&#8217;s rand currency and local-currency debt.



The decline in joblessness in the latest three-month period was driven by rising employment in six of the 10 industries tracked by the statistics agency: community and social services, construction, trade, agriculture, mining and utilities.



There were job losses in transport, manufacturing, private households and finance.



However, South Africa still has one of the highest unemployment rates in the world, and Black South Africans continue to experience the worst unemployment levels relative to the country&#8217;s other racial groups.



Statistician-General Risenga Maluleke told a press conference that the long-term unemployment rate had risen more than 10 percentage points in the last decade, rooted in a mismatch between people&#8217;s skills and the jobs on offer.



Under an expanded definition of unemployment, which includes those discouraged from seeking work, 41.9% of the labour force was jobless in the third quarter, down from 42.6% in the second.



(Reporting by Kopano Gumbi; Additional reporting by Tannur Anders; Editing by Alexander Winning and Alex Richardson)

Job seekers wait beside a road for casual work offered by passing motorists

South African unemployment rate dips under coalition 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/2024/11/O54XSCJWJJMT5LVMUWPPJYCAQE-820x547.jpg" alt="" class="wp-image-553286" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/O54XSCJWJJMT5LVMUWPPJYCAQE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/O54XSCJWJJMT5LVMUWPPJYCAQE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/O54XSCJWJJMT5LVMUWPPJYCAQE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/O54XSCJWJJMT5LVMUWPPJYCAQE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/O54XSCJWJJMT5LVMUWPPJYCAQE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/O54XSCJWJJMT5LVMUWPPJYCAQE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People work out on the outskirts of Dakar, Senegal October 29, 2024. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



NAIROBI/DAKAR, Nov 11 (Reuters)&nbsp;&#8211;&nbsp;Senegal will have to wait until at least June to get any sort of resolution of its lending programme with the International Monetary Fund that could lead to fresh disbursements, a source with knowledge of the process told Reuters.



There was no immediate comment from the finance ministry on the prospect of a delay that will be a test for a government seeking quick support to help it deal with an increasingly precarious fiscal situation.



A $1.9 billion IMF programme agreed in June 2023 has been on hold since a government audit three months later uncovered larger debt and deficit figures than the previous administration had reported, sending yields on the West African nation&#8217;s dollar bonds soaring and triggering credit ratings downgrades.



Dakar is seeking a new programme with the Fund, but the source said the IMF will not even consider the request before the audit findings, which are scheduled to be certified by Senegal&#8217;s court of auditors mid-December, are subsequently reviewed by the Fund&#8217;s executive board.



&#8220;They need to start by sorting out the issues identified in the audit,&#8221; the source said. Following the certification, the Fund&#8217;s board was expected to determine the next steps towards a resolution, a process expected to take another six months, the source added.



Senegal&#8217;s finance ministry did not immediately respond to a request for comment.



Senegal secured in June last year $1.526 billion under a three-year IMF Extended Fund Facility and Extended Credit Facility programme plus additional financing of $371.1 million from the Resilience and Sustainability Facility providing long-term concessional cash for climate-related spending.



Senegal got payouts of $216 million when it reached the loan agreement with the Fund and another $279 million in December last year after getting sign off on the first review by the executive board.



Subsequent reviews and IMF board sign-off, the step that ultimately triggers more payouts, have not been completed.



The IMF board is expected to consider various remedies for the misreporting, the source said, including demanding potential reimbursements for any loans advanced on the basis of the misreported data.



Another source confirmed a resolution would take &#8220;a few months&#8221;.



The Fund said last month it was assessing the implications of the data revisions.



<h2 class="wp-block-heading" id="h-cash-strapped">CASH-STRAPPED</h2>



Senegal had already been grappling with slower-than-projected growth and a worsening budget deficit before the revelations about the larger debt and deficit figures.



President Bassirou Diomaye Faye&#8217;s government reopened a privately placed international bond last month to raise $300 million.



Public debt averaged 76.3% of GDP, compared with the previously reported 65.9%, the audit found. The end-2023 budget deficit stood at over 10%, more than double the original indication.



&#8220;The hidden fiscal cost revelations under the previous government have raised markets&#8217; concerns around Senegal&#8217;s debt sustainability,&#8221;&nbsp;J.P.Morgan&nbsp;said in a research note.



The yield on Senegal&#8217;s 2048 bond rose above 10% for the first time since early August, in the sessions following the release of the initial audit findings.



The bonds inched down in early trading on Tuesday.



Faye, elected in March on the back of youth voters&#8217; disenchantment with the previous government&#8217;s economic policies, has called a snap legislative election for Sunday.



He blamed the previous parliament&#8217;s refusal to initiate a new budget law, and its pushback against a plan to abolish wasteful state bodies for the move.



His Pastef party will need to secure a majority of the 165 seats to implement his economic reforms. Pastef held just 26 seats in the dissolved legislature.



&#8220;Parliamentary elections can provide some needed political capital for the new government to commence the now heavier lifting required to correct the trajectory of fiscal accounts,&#8221; J.P.Morgan said.



Implications of misreporting to IMF generally make investors nervous. The Fund suspended disbursements to Mozambique in 2016 after it failed to disclose more than $1 billion in external loans.



(Reporting by Duncan Miriri and Portia Crowe; Editing by Karin Strohecker and Andrew Heavens)

FILE PHOTO: People work out on the outskirts of Dakar

Senegal will have to wait at least until June for IMF loan resolution, source says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/107351661-17036182092023-10-24t101848z_1359207624_rc2yy3ac3wuf_rtrmadp_0_fintech-crypto-bitcoin-820x461.jpeg" alt="" class="wp-image-553187" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/107351661-17036182092023-10-24t101848z_1359207624_rc2yy3ac3wuf_rtrmadp_0_fintech-crypto-bitcoin-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/107351661-17036182092023-10-24t101848z_1359207624_rc2yy3ac3wuf_rtrmadp_0_fintech-crypto-bitcoin-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/107351661-17036182092023-10-24t101848z_1359207624_rc2yy3ac3wuf_rtrmadp_0_fintech-crypto-bitcoin-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/107351661-17036182092023-10-24t101848z_1359207624_rc2yy3ac3wuf_rtrmadp_0_fintech-crypto-bitcoin-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/107351661-17036182092023-10-24t101848z_1359207624_rc2yy3ac3wuf_rtrmadp_0_fintech-crypto-bitcoin-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/107351661-17036182092023-10-24t101848z_1359207624_rc2yy3ac3wuf_rtrmadp_0_fintech-crypto-bitcoin.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dado Ruvic | Reuters</figcaption></figure>



Bitcoin was trading just shy of $90,000 Monday night after breaching $80,000 just a day earlier.



The flagship cryptocurrency was last higher by 12% at $89,100, according to Coin Metrics. Earlier Monday, it rose as high as $89,623.00. Its price is expected by many investors to continue making fresh records on its way up to $100,000 later this year.



“Bitcoin is now in price discovery mode after breaking through all-time highs early last Wednesday morning when it was officially declared that Trump won the election,” said Mike Colonnese, an analyst at H.C. Wainwright. “Strong positive sentiment is likely to persist through the balance of 2024 and [we] see bitcoin prices potentially reaching the six-figure mark by the end of this year.”



Crypto investors have been cheering President-elect Donald Trump’s promises to make the regulatory environment more supportive and even friendly toward crypto businesses, which have long struggled with a lack of clarity of the rules of the road.



While bitcoin has long been deemed a safe asset in Washington – that is, not subject to securities laws – the long tail of cryptocurrencies and crypto-related startups have been operating in a risky grey area.



“That’s just shifted 180 degrees,” Matt Hougan, chief investment officer of Bitwise Asset Management, told CNBC. “We’re now in a positive regulatory environment, we now have tailwinds from that, and that comes in the case of a market that was already in a bull market … that’s going to push us higher.”



Ether was trading higher by 5.8% Monday evening. Payments token XRP rose nearly 4% and the token linked to decentralized finance project Polygon gained more than 4%. Dogecoin has been one of the biggest winners – likely due to its connection with Elon Musk, who helped get Trump elected. It’s up 38%.



In the stock market, Coinbase and MicroStrategy gained about 3% and 5%, respectively, in extended trading. In the regular session on Monday, Coinbase surged 19% to trade above $300 for the first time since 2021. It’s now about 6% from its high from that year.



Traders and analysts agree this rally is just only beginning.



“It does seem like there’s an air gap between the previous [bitcoin] all-time highs around $72,000 and $100,000,” Hougan said. “It’s hard exactly to see what would force sellers to come into this market and halt the momentum before we get to that level. Of course, there are no guarantees. You could see pullbacks, but we’re in a new crypto market cycle. … I do think that we are right to be bullish and the bias is still on the upside.”

107351661-17036182092023-10-24t101848z_1359207624_rc2yy3ac3wuf_rtrmadp_0_fintech-crypto-bitcoin

Bitcoin is closing in on $90,000 for the first time ever

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="590" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-820x590.jpg" alt="" class="wp-image-550088" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-820x590.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-300x216.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-768x553.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-1536x1105.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A branch of South African mobile communications provider Vodacom in Cape Town is shown in this picture taken November 10, 2015. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



JOHANNESBURG, Nov 11 (Reuters) &#8211; South Africa&#8217;s biggest telecoms operator Vodacom said on Monday it will not look into other M&amp;A deals after its proposed merger with fibre group Maziv was blocked by regulators last month.



The decision by the country&#8217;s Competition Tribunal was a blow to Vodacom&#8217;s ambitions of expanding its fibre footprint nationwide.



It followed an extensive 26-day hearing where the merger parties, the Competition Commission, government and rivals of Vodacom and Maziv argued for or against the deal which was initially proposed in 2021.



Vodacom Chief Executive Shameel Joosub said that looking at other M&amp;A deals is off the table.&nbsp;&#8220;We don&#8217;t want to be stuck in the competition authorities for another three years,&#8221; he told a media call on Monday after the group reported a 19.4% drop in half-year earnings, hurt by start-up losses at its Ethiopian operations and foreign currency depreciation.



Vodacom shares were down 4.53% at 1122 GMT.



The group, which is majority owned by Britain&#8217;s Vodafone, is still awaiting the Tribunal&#8217;s detailed reasons for blocking the Maziv merger. &#8220;It&#8217;s a travesty for South Africa that we&#8217;ve lost the opportunity for such a material investment, which would have been between 14 and 17 billion (rand) investment, plus an additional 25 billion in capex,&#8221; Joosub said.



The Tribunal can take up to two months to detail the grounds for its ruling but Joosub said that he hopes to receive it more quickly to help the group prepare for a potential appeal.



Vodacom also cut its interim dividend by 6.6% from a year earlier after its results on Monday.



It launched Safaricom Ethiopia last year with a consortium led by Kenya&#8217;s Safaricom, which is part-owned by the South African company and Vodafone, betting that the new unit would break even in year four &#8211; but this has been pushed back.



&#8220;As a result of the currency impact in Ethiopia Safaricom (we) revised the EBITDA break-even target for Ethiopia to FY 2027 from FY 2026,&#8221; Joosub said.



Group service revenue declined 1.2% in the six months ended Sept. 30 to 58.6 billion rand ($3.33 billion) due to currency headwinds. However, on a normalised basis it grew 9.9%.



($1 = 17.6023 rand)



(Reporting by Sfundo Parakozov; Editing by Kim Coghill, Eileen Soreng and Susan Fenton)

FILE PHOTO: A branch of South African mobile communications provider Vodacom in Cape Town

Vodacom not looking for other M&A deals after blocked Maziv merger

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/NJ2MN73ZIBPIVI4JIKXJJHMY2E-820x547.jpg" alt="" class="wp-image-552808" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/NJ2MN73ZIBPIVI4JIKXJJHMY2E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/NJ2MN73ZIBPIVI4JIKXJJHMY2E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/NJ2MN73ZIBPIVI4JIKXJJHMY2E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/NJ2MN73ZIBPIVI4JIKXJJHMY2E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/NJ2MN73ZIBPIVI4JIKXJJHMY2E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/NJ2MN73ZIBPIVI4JIKXJJHMY2E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ghana&#8217;s former president and current main opposition National Democratic Congress (NDC) party presidential candidate John Dramani Mahama, 65, addresses supporters during a political campaign launch ahead of December polls, in Tamale, Ghana, July 27, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Nov 11 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s main opposition leader John Dramani Mahama looks set to win December&#8217;s presidential election, an opinion poll showed on Monday, placing him ahead of his main challenger, ruling party candidate Muhamudu Bawumia.



Former president Mahama, 65, and current Vice President Bawumia, 60, are the two main contenders for the Dec. 7 election to replace President Nana Akufo-Addo, who is stepping down in January after two terms as head of the gold- and cocoa-producing nation. Eleven other candidates are also running.



Global InfoAnalytics, an Accra-based research group, released poll results on Monday that saw Mahama winning 52%, followed by 41.3% for Bawumia. The poll has a 1.9% error margin.



It found that voters were mainly concerned about the economy, jobs, education and infrastructure.



Mahama invested heavily in infrastructure during his 2012-17 presidency, when he faced criticism for power shortages and economic instability. His government was also embroiled in corruption allegations, although Mahama was never directly accused.



He is running again as the candidate of the main opposition National Democratic Congress (NDC).



Bawumia, an economist and&nbsp;former&nbsp;central banker, is running for the ruling New Patriotic Party (NPP), which grappled with Ghana&#8217;s worst economic crisis in a generation.



Both candidates have presented plans to boost the economy and improve livelihoods.



Ghana, the world&#8217;s second largest cocoa producer, defaulted on most of its $30 billion external debt in 2022 after years of overstretched borrowing.



Akufo-Addo&#8217;s government secured a 3-year, $3 billion bailout from the International Monetary Fund in 2023 and is now on the final lap of a painful process required for the money to be disbursed.



The Economist Intelligence Unit predicted an NDC win in October due to the NPP&#8217;s economic record. Fitch Solutions published a similar forecast that month.



Both Mahama and Bawumia are from northern Ghana, a historic NDC stronghold where the NPP has been making inroads.



Political analyst Alidu Seidu of the University of Ghana said the election would probably be a very close contest between the two.



Results were difficult to predict and a run-off vote was likely, he said.



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



(Editing by Sofia Christensen and Giles Elgood)

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featured

Nigeria inflation rises for second month, spurred by food

South African rand extends losses; S&P rating review due

Nigeria lifts oil production to 1.8 mln barrels per day

Africa has world’s least developed weather observation network

Senegal heads to the polls amid fiscal crisis, threat of unrest

S.Africa’s Vodacom eyes taking cloud-based phone to other African markets

IMF urged to cash in on gold price to help poor countries hit by climate change

South Africa FA president Danny Jordaan arrested

Millions of Nigerians go hungry as floods compound hardship

WTO may seek to reappoint chief ahead of Trump presidency

Oil could plunge to $40 in 2025 if OPEC unwinds voluntary production cuts, analysts say

South Africa’s Multichoice profit plunges as subscriptions slip

South African unemployment rate dips under coalition government

Senegal will have to wait at least until June for IMF loan resolution, source says

Bitcoin is closing in on $90,000 for the first time ever

Vodacom not looking for other M&A deals after blocked Maziv merger

Main Ghana opposition leader tipped to win presidential vote, poll shows

News Tips

Advertise With Us

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