<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-820x547.jpg" alt="" class="wp-image-548180" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view of the newly-commissioned Dangote Petroleum refinery in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, (Reuters) &#8211; Nigeria&#8217;s Dangote Refinery said on Wednesday it has made its first export of petrol to Cameroon, a milestone that could pave way for regional energy integration and help stabilise fuel prices across the region.



The 650,000 barrel refinery built by Nigerian billionaire Aliko Dangote in Lagos aims to compete with European refiners when operating at full capacity and is expected to change trading of refined products in the Atlantic basin.



The company&nbsp;did not provide&nbsp;details&nbsp;of how much was exported.



Cameroon&#8217;s energy firm Neptune Oil said in the statement that both companies were exploring new initiatives to establish a reliable supply chain that will help stabilize fuel prices and opportunities across the region.



Neptune Oil said the petrol supply transaction was executed without intermediaries.



(Reporting by MacDonald Dzirutwe; Writing by Chijioke Ohuocha. Editing by Jane Merriman and Diane Craft)

FILE PHOTO: A view of the newly-commissioned Dangote Petroleum refinery in Ibeju-Lekki, Lagos

Nigeria’s Dangote Refinery makes first petrol export to Cameroon

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107308954-1695982808104-gettyimages-1664665862-US-CPI-AUGUST-820x461.jpeg" alt="" class="wp-image-564863" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107308954-1695982808104-gettyimages-1664665862-US-CPI-AUGUST-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107308954-1695982808104-gettyimages-1664665862-US-CPI-AUGUST-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107308954-1695982808104-gettyimages-1664665862-US-CPI-AUGUST-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107308954-1695982808104-gettyimages-1664665862-US-CPI-AUGUST-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107308954-1695982808104-gettyimages-1664665862-US-CPI-AUGUST-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107308954-1695982808104-gettyimages-1664665862-US-CPI-AUGUST.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Customers shop at a supermarket in Foster City, California, the United States, Sept. 13, 2023. Xinhua News Agency | Xinhua News Agency | Getty Images</figcaption></figure>



Consumer prices rose at a faster annual pace in November, a reminder that inflation remains an issue both for households and policymakers.



The consumer price index showed a 12-month inflation rate of 2.7% after increasing 0.3% on the month, the Bureau of Labor Statistics reported Wednesday. The annual rate was 0.1 percentage point higher than October.



Excluding food and energy costs, core CPI was at 3.3% on an annual basis and 0.3% monthly. The 12-month core reading was unchanged from a month ago.



All of the numbers were in line with the Dow Jones consensus estimates.



The readings come with Federal Reserve officials mulling over what to do at their policy meeting next week, Markets strongly expect the Fed to lower its benchmark short-term borrowing rate by a quarter percentage point when the meeting wraps up Dec. 18, but then skip January as they measure the impact successive cuts have had on the economy.



The report further solidified the outlook for a cut, with traders raising the odds to 99%, according to the CME Group’s FedWatch measure. Odds of a January cut also edged higher, hitting about 23%.



“In-line core inflation clears the way for a rate cut at next week’s [Federal Open Market Committee] meeting,” said Whitney Watson, global co-head and co-CIO for fixed income at Goldman Sachs Asset Management. “Following today’s data the Fed will depart for the holiday break still confident in the disinflation process and we think it remains on course for further gradual easing in the new year.”



While inflation is well off the 40-year high it saw in mid-2022, it remains above the Fed’s 2% annual target. Some policymakers in recent days have expressed frustration with inflation’s resilience and have indicated that the pace of rate cuts may need to slow if more progress isn’t made.



If the Fed follows through with a cut next week, it will have taken a full percentage point off the federal funds rate since September.



Much of the November increase in CPI came from shelter costs, which rose 0.3% and have been one of the most stubborn components of inflation. Fed officials and many economists expect housing-related inflation to ease as new rental leases are negotiated, but the item has continued to increase each month.



The BLS estimated that the shelter item, which has about a one-third weighting in the CPI calculation, accounted for about 40% of the total increase in November. The shelter index rose 4.7% on a 12-month basis in November.



Used vehicle prices rose 2% monthly while new vehicle prices increased 0.6%, reversing the recent trend that has seen those items come down.



Elsewhere, food costs rose 0.4% monthly and 2.4% year over year, while the energy index increased 0.2% but was down 3.2% annually.



The increase in the CPI meant that average hourly earnings for workers were basically flat for the month when adjusted for inflation, but increased 1.3% from a year ago, the BLS said in a separate release.

107308954-1695982808104-gettyimages-1664665862-US-CPI-AUGUST

Annual U.S. inflation rate accelerates to 2.7% in November, as expected

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/WHPPRFAEWVI2PAWUHJUMPQXPVA.avif" alt="" class="wp-image-564860"/><figcaption class="wp-element-caption">United Nations Secretary-General Antonio Guterres attends a joint statement with Portuguese Prime Minister Luis Montenegro (not pictured), in Sao Bento Palace, Lisbon, Portugal, November 27, 2024. REUTERS/Pedro Nunes/File Photo</figcaption></figure>



JOHANNESBURG, Dec 11 (Reuters)&nbsp;&#8211;&nbsp;United Nations Secretary-General Antonio Guterres said on Wednesday that existing debt relief mechanisms were far from adequate to address global vulnerabilities, calling on the Group of Twenty nations to do more to deliver financial justice.



Guterres made the comments during a visit to South Africa, which became the first African country to lead the G20 when it took the helm of the international forum of developed and developing economies this month.



The G20&#8217;s &#8220;Common Framework&#8221;, a debt relief architecture launched during the COVID-19 pandemic to help heavily-indebted countries get back on track quickly, has been criticised following slow restructurings in countries including Zambia.



&#8220;I recognise all the efforts the G20 has made in relation to the so-called &#8216;Framework&#8217;, but let&#8217;s be clear. We are far from having an instrument able to address the debt problem that exists at global level,&#8221; Guterres told a G20 event in Johannesburg.



&#8220;We need meaningful solutions to address the debt crisis, so countries can invest in meeting the basic needs of their people and drive long-term development.&#8221;



Guterres also used his speech to G20 sherpas and finance officials to underscore that global governance institutions needed to be reformed to serve African countries better.



He said there should be an enhanced role for multilateral development banks and greater concessional funding, but that boosting gross domestic product should not be the only targeted metric.



&#8220;It&#8217;s very important to look especially also at vulnerability,&#8221; Guterres said.



South African Finance Minister Enoch Godongwana told the same event that addressing debt vulnerabilities would be a focus of his country&#8217;s G20 presidency.



South Africa will propose creating an expert panel to focus specifically on Africa&#8217;s financing needs, he said, adding that &#8220;debt sustainability cannot be solved through the Common Framework alone&#8221;.



(Additional reporting by Tannur Anders and Bhargav Acharya. Writing by Alexander Winning. Editing by Mark Potter)

WHPPRFAEWVI2PAWUHJUMPQXPVA

UN chief says debt relief tools far from adequate

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/I7JNEWQ4GVLM3NU76F6XVVSAV4.avif" alt="" class="wp-image-564821"/><figcaption class="wp-element-caption">People walk on the street around Kwame Nkrumah circle in Accra, Ghana, December 2, 2016. Picture taken December 2, 2016. REUTERS/Luc Gnago/File Photo</figcaption></figure>



ACCRA, Dec 11 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s economic growth quickened in the third quarter in a further sign of the west African country&#8217;s ongoing recovery from its worst economic crisis in a generation, statistics agency data showed on Wednesday.



Gross domestic product grew by 7.2% year-on-year in the third quarter of 2024, the most since the second quarter of 2019, the data showed.



The positive economic momentum comes as a new president and government prepare to take office on Jan. 7 after ex-president and main opposition leader John Dramani Mahama won Saturday&#8217;s election.



Growth in the second quarter of 2024 was revised to 7.0% from 6.9%, the agency said.



Ghana&#8217;s industrial sector, largely driven by mining and quarrying, grew by 10.4%, while the services sector expanded by 6.4% and the agricultural sector by 3.2%.



The cocoa sector in the world&#8217;s second biggest producer, however, contracted for the fifth consecutive quarter by 26%, the data showed.



Ghana defaulted on most of its external debt in 2022, leading to a painful restructuring.



Its cedi currency has been strengthening, but high inflation and government debt sustainability remain a concern for investors.



(Reporting by Maxwell Akalaare Adombila and Christian Akorlie; Writing by Anait Miridzhanian; Editing by Alex Richardson and Bernadette Baum)

I7JNEWQ4GVLM3NU76F6XVVSAV4

Ghana’s economy grew 7.2% in third quarter in recovery from crisis

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="471" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/SA-INFLATION.avif" alt="" class="wp-image-524647"/><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, Dec 11 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s&nbsp;inflation rate&nbsp;rose less than expected in November,&nbsp;staying&nbsp;just below the central bank&#8217;s target range&nbsp;thanks to food inflation slowing&nbsp;to its lowest level in almost 14 years.



Headline consumer inflation was 2.9% year on year in November from 2.8% in October. In month-on-month terms, inflation was at 0.0% in November, compared with -0.1% in October, Statistics South Africa data showed.



Economists polled by Reuters had forecast headline inflation would accelerate to 3.1%&nbsp;in annual terms.&nbsp;The South African Reserve Bank&nbsp;targets inflation of between 3% and 6%, aiming for the midpoint of that band.



&#8220;We expect inflation will continue to edge higher over the coming months. But it is likely to remain contained and stay below the 4.5% target midpoint,&#8221; Jason Tuvey, deputy chief emerging markets economist at Capital Economics,&nbsp;said.



The central bank last month cut its main lending rate by 25 basis points (bps) for the second meeting in a row, after inflation dropped below the target range in October for the first time in years.



Tuvey said a&nbsp;50-bps cut was not out of the question at the central bank&#8217;s next policy meeting&nbsp;in January.



Food and non-alcoholic beverages&nbsp;inflation&nbsp;slowed to 2.3%&nbsp;year on year&nbsp;in November from 3.6% one month earlier, the lowest rate&nbsp;of price increases for that&nbsp;category since December 2010, the statistics agency said.



But&nbsp;a month-on-month increase in fuel prices pushed the November headline inflation figure higher in annual terms.



Annual core inflation, which excludes food and fuel prices, also came in below expectations at 3.7% in November compared with 3.9% one month earlier.



(Reporting by Tannur Anders; Editing by Alexander Winning and Kate Mayberry)

SA INFLATION

South Africa inflation rises less than expected, helped by food

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108072174-1733432641152-gettyimages-2186442290-AFP_36ND9GA-820x461.jpeg" alt="" class="wp-image-564731" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108072174-1733432641152-gettyimages-2186442290-AFP_36ND9GA-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108072174-1733432641152-gettyimages-2186442290-AFP_36ND9GA-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108072174-1733432641152-gettyimages-2186442290-AFP_36ND9GA-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108072174-1733432641152-gettyimages-2186442290-AFP_36ND9GA-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108072174-1733432641152-gettyimages-2186442290-AFP_36ND9GA-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108072174-1733432641152-gettyimages-2186442290-AFP_36ND9GA.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man shops at a Target store in Chicago on November 26, 2024. Kamil Krzaczynski | AFP | Getty Images</figcaption></figure>



A key economic report coming Wednesday is expected to show that progress has stalled in bringing down the inflation rate, though not so much that the Federal Reserve won’t lower interest rates next week.



The consumer price index, a broad measure of goods and services costs across the U.S. economy, is expected to show a 2.7% 12-month inflation rate for November, which would mark a 0.1 percentage point acceleration from the previous month, according to the Dow Jones consensus.



Excluding food and energy, so-called core inflation is forecast at 3.3%, or unchanged from October. Both measures are projected to show 0.3% monthly increases.



With the Fed targeting annual inflation at 2%, the report will provide more evidence that the high cost of living remains very much a fact of life for U.S. households.



“Looking at these measures, there’s nothing in there that says the inflation dragon has been slain,” said Dan North, senior economist at Allianz Trade Americas. “Inflation is still here, and it doesn’t show any convincing moves towards 2%.”



Along with the read Wednesday on consumer prices, the Bureau of Labor Statistics on Thursday will release its producer price index, a gauge of wholesale prices that is projected to show a 0.2% monthly gain.



<h2 class="wp-block-heading" id="h-halting-progress-but-more-cuts"><a></a>Halting progress, but more cuts</h2>



To be sure, inflation has moved down considerably from its CPI cycle peak around 9% in June 2022. However, the cumulative impact of price increases has been a burden to consumers, particularly those at the lower end of the wage scale. Core CPI has been drifting higher since July after showing a steady series of declines.



Still, traders in futures markets are placing huge odds that policymakers again will cut their benchmark short-term borrowing rate by a quarter of a percentage point when the Federal Open Market Committee concludes its meeting Dec. 18. Odds of a cut were near 88% on Tuesday morning, according to the CME Group’s FedWatch measure.



“When the market is locked in like where it is today, the Fed doesn’t want to make a big surprise,” North said. “So unless something has skyrocketed that we haven’t foreseen, I’m pretty sure the Fed is on a lock here.”



The CPI increase for November likely came from a few key areas, according to Goldman Sachs.



Car prices are expected to show a 2% monthly increase, while air fares are seen as 1% higher, the firm’s economists projected in a note. In addition, the nettlesome increase in auto insurance is likely to continue, rising 0.5% in November after posting a 14% increase over the past year, Goldman estimated.



<h2 class="wp-block-heading"><a></a>More trouble ahead</h2>



While the firm sees “further disinflation in the pipeline over the next year” from easing in the autos and housing rental categories, as well as softening in the labor markets, it also worries that President-elect Donald Trump’s planned tariffs could keep inflation elevated in 2025.



Goldman projects core CPI inflation will soften, but just to 2.7% next year, while the Fed’s target inflation gauge, the personal consumption expenditures price index, will move to 2.4% on the core reading from its most recent 2.8% level.



With inflation projected to run well above 2% and macro economic growth still running near 3%, this wouldn’t normally be an environment in which the Fed would be cutting. The Fed uses higher interest rates to curb demand, which theoretically would force businesses to lower prices.



Markets expect the Fed to skip the January meeting then possibly cut again in March. From there, market pricing is for only one or at most two cuts through the rest of 2025.



“Two percent to me doesn’t mean just touching 2% and bouncing along. It means hitting 2% for a continuous, foreseeable future, and none of that is evident in any of those reports,” North said. “You don’t really want to cut in that environment.”

108072174-1733432641152-gettyimages-2186442290-AFP_36ND9GA

The CPI report Wednesday is expected to show that progress on inflation has hit a wall

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-820x542.jpg" alt="" class="wp-image-564438" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Locals walk past barricades that were used by protesters after the ruling Frelimo party was declared the winner of this month&#8217;s disputed election, in Maputo, Mozambique, October 25, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Dec 10 (Reuters) &#8211; South32 has withdrawn its output forecast for its Mozal Aluminium smelter in Mozambique amid post-election civil unrest, the Australian company said on Tuesday.



October&#8217;s disputed election results sparked protests from opposition supporters and there has been escalating violence since.



South32, which has a 63.7% stake in the Mozal Aluminium smelter, said the unrest had led to road blockages that have hampered the delivery of raw materials to the plant.



It had previously estimated output of 360 kilotonnes from the smelter this fiscal year. The project contributed about 28% of South32&#8217;s total aluminium output in fiscal 2024.



South African mining companies that ship minerals including chrome through the port of Maputo in Mozambique have also been hit by the unrest, which has on some days led to the closure of the main border between the neighbouring countries.



South African companies have grown increasingly reliant on routing cargo via the Maputo port as state-owned logistics group Transnet struggles to provide adequate freight rail and port services.



A spokesperson for miner Tharisa, which ships chrome via Maputo, told Reuters that the company had been affected by the latest border closure.



&#8220;It&#8217;s a significant amount of trucks that we have on the road,&#8221; said Ilja Graulich, adding that Tharisa may consider declaring a force majeure to its customers if the latest border closure is prolonged.



(Reporting by Felix Njini in Johannesburg and Sherin Sunny in Bengaluru. Editing by Savio D&#8217;Souza and Mark Potter)

Mozambique’s ruling party retains power in contested election

Mozambique’s post-election protests hit South32 plant, chrome exports

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg" alt="" class="wp-image-536645" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><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, Dec 10 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand softened early on Tuesday, at the start of a day packed with local economic data releases.



At 0626 GMT, the rand traded at 17.81 against the U.S. dollar, about 0.2% weaker than Monday&#8217;s close.



South Africa-focussed investors will look to October&#8217;s mining production data at 0930 GMT and the manufacturing output figures for the same month at 1100 GMT.



Although the releases will not be market-moving individually, together they are important indicators of economic performance, analysts said.



Also on the investors&#8217; radars will be November&#8217;s Business Confidence Index, due at 0930 GMT, for signs of private sector sentiment towards Africa&#8217;s most industrialised economy.



South Africa&#8217;s benchmark 2030 government bond was little changed in early deals, with the yield at 8.895%.



(Reporting by Tannur Anders; Editing by Sumana Nandy)

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 softens at start of data-filled day

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-820x547.jpg" alt="" class="wp-image-564339" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters during the spring meetings of the International Monetary Fund (IMF) and World Bank in Washington, DC, US, on Thursday, April 13, 2023. The IMF trimmed its global-growth projections, warning of high uncertainty and risks as financial-sector stress adds to pressures emanating from tighter monetary policy. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, Dec 10 (Reuters)&nbsp;&#8211;&nbsp;The World Bank downgraded Kenya&#8217;s economic growth estimate for this year to 4.7% on Tuesday, from an initial 5.0%, citing the impact of floods, anti-government protests and flailing fiscal consolidation efforts.



The East African nation has managed to stabilise its foreign exchange rate, boost hard currency reserves held by the central bank and lower inflation this year, but it still faces a high risk of debt distress, the World Bank said in a new report.



&#8220;Debt vulnerabilities including elevated debt servicing costs, accumulated pending bills, and missing revenue targets remain key challenges,&#8221; the bank said in the Kenya Economic Update report, which is usually published twice a year.



Although the growth estimate for this year is lower than last year&#8217;s rate of 5.6%, it will still be higher than the sub-Saharan Africa average of 3.0%, the bank said.



Kenya&#8217;s growth will, however, inch up to 5.1% in the medium term, it said, if the government successfully deals with the fiscal challenges.



&#8220;Revenue shortfalls resulted in additional spending cuts, and rising financing needs resulted in increased domestic borrowing,&#8221; the World Bank said.



Apart from the problems caused by a high debt load, the attendant servicing costs and flagging government revenues, the economy faces social unrest and financial risks, the report found.



Deadly protests in June forced President William Ruto to abandon tax hikes meant to raise more than $2 billion in additional revenue, which dampened investor sentiment.



The protests came hot on the heels of widespread flooding in April and May, which also caused disruptions.



Non-performing loans in the banking sector have also been growing, the report said, as borrowers struggle to service their loans amid high interest rates and a slowdown in economic activity.



The bank urged the government to tackle &#8220;structural imbalances&#8221; that &#8220;hinder Kenya&#8217;s goal of sustained and inclusive growth&#8221; that creates higher quality jobs for the people.



(Reporting by Duncan Miriri; Editing by Ros Russell)

Spring Meetings Of The International Monetary Fund And World Bank

World Bank cuts Kenya’s 2024 growth estimate to 4.7% on fiscal challenges

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3288" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/DCHRVBQRQ5MELH6UNHHLJO57MY.avif" alt="" class="wp-image-564051"/><figcaption class="wp-element-caption">National Democratic Congress (NDC) presidential candidate and former Ghanaian President John Dramani Mahama salutes supporters during his final election campaign rally in Accra, Ghana December 5, 2024. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



ACCRA, Dec 9 (Reuters)&nbsp;&#8211;&nbsp;John Dramani Mahama, who is returning as Ghana&#8217;s president eight years after losing power, achieved his political comeback on a promise to mend the West African country&#8217;s economy.



His main rival conceded defeat on Sunday after partial results showed Mahama, 66, was on course to win Saturday&#8217;s presidential election and that his National Democratic Congress would win a parliamentary election held the same day.



The eldest son of a wealthy rice trader turned politician, Mahama became Ghana&#8217;s interim leader in 2012 after the sudden death of President John Atta Mills, under whom Mahama served as vice president.



Mahama defeated his main challenger, Akufo-Addo, in an election a few months later &#8211; the first in a series of votes that pitted the two against each other.



During his four-year term, Mahama invested heavily in infrastructure but drew criticism over prolonged power shortages, macroeconomic instability and allegations of political corruption although he was not personally tainted.



Polls before Saturday&#8217;s election had forecast Mahama to win after a spiralling economic and cost-of-living crisis in cocoa, gold and oil-producing Ghana hit the popularity of Akufo-Addo&#8217;s government and increased momentum for a change in leadership.



In an interview with Reuters before the election, Mahama said he would seek to renegotiate terms of a $3 billion International Monetary Fund bailout secured last year to restructure the country&#8217;s debt.



He has also promised to ease business regulations, introduce a 24-hour triple-shift work system, enact tax reforms and invest $10 billion in modernising infrastructure.



&#8220;This election is not just another election. It&#8217;s a defining moment for our nation,&#8221; he told his final campaign rally, urging voters to &#8220;reset the country&#8221;.



<h2 class="wp-block-heading" id="h-thank-you-ghana">&#8216;THANK YOU, GHANA&#8217;</h2>



Mahama went to a private boarding school in Accra and also studied communications in the capital at the University of Ghana in the 1980s before moving to Moscow to study psychology.



He was first elected to parliament in 1996 and served as communications minister from 1998 to 2001. Atta Mills appointed him vice president in 2009.



Mahama failed to secure a second term as president in 2016, when Akufo-Addo defeated him on the back of falling gold, oil and cocoa export prices. Akufo-Addo defeated Mahama again in 2020 on a promise to restore growth.



Celebrating what he called an emphatic win in Saturday&#8217;s election Mahama wrote on X: &#8220;Thank you, Ghana.&#8221;



Mahama was born and raised as a Christian, like the majority of Ghanaians. He is married with five children.



An avid reader and writer, he has published columns in Ghanaian and international newspapers, including an opinion piece on the death of South Africa&#8217;s first black president Nelson Mandela for the New York Times.



In 2012, he wrote a memoir in which he recalled the military coup that ousted Ghana&#8217;s founding president, Kwame Nkrumah, in 1966. Mahama was seven at the time.



(Writing by Sofia Christensen, Editing by Timothy Heritage)

DCHRVBQRQ5MELH6UNHHLJO57MY

John Dramani Mahama returning as Ghana president on pledge to mend economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-820x547.jpg" alt="" class="wp-image-564033" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">PORT LOUIS, MAURITIUS &#8211; MAY 30: Prime Minister Navin Ramgoolam of Mauritius speaks during the opening ceremony of the 63th FIFA Congress at Swami Vivekananda International Convention Centre on May 30, 2013 in Port Louis, Mauritius. (Photo by Alexander Hassenstein &#8211; FIFA/FIFA via Getty Images)</figcaption></figure>



PORT LOUIS, Dec 9 (Reuters)&nbsp;&#8211;&nbsp;The state of Mauritius&#8217; economy is &#8220;much worse than we imagined&#8221;, its new prime minister said, as an audit he launched into the Indian Ocean archipelago&#8217;s public finances neared completion.



Navin Ramgoolam announced the audit days after his coalition won a resounding election victory in November, alleging the previous government had manipulated data to put a positive spin on the country&#8217;s economic prospects.



The former finance minister, Renganaden Padayachy, has not responded to requests for comment about Ramgoolam&#8217;s allegations since the launch of the audit. Padayachy did not respond to further calls and a message seeking comment on Monday.



&#8220;We are almost completing our audit of the economy. It&#8217;s shocking what we have seen. It&#8217;s much worse than we imagined. Mauritians will soon discover the exact situation of the economy,&#8221; Ramgoolam said in comments broadcast on Mauritian television and radio stations on Saturday.



Ramgoolam, who is also the&nbsp;new&nbsp;finance minister, did not provide any figures to back up his weekend comments.



The country of about 1.3 million people is seen as one of Africa&#8217;s most stable democracies.



Mauritius&nbsp;markets itself as a link between Africa and Asia, deriving most of its revenue from a flourishing offshore financial sector, tourism and textiles.



Economic growth was 7% last year, but the rising cost of living was a key issue in the election, colouring voters&#8217; views on the previous government led by Pravind Jugnauth.



(Reporting by Villen Anganan; Writing by George Obulutsa; Editing by Alexander Winning and Kate Mayberry)

63rd FIFA Congress – Opening Ceremony

Mauritius economy ‘much worse than we imagined’, new prime minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="720" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GZ42FNCPGRK2ZE3SBHPBDHACCI.avif" alt="" class="wp-image-563964"/><figcaption class="wp-element-caption">Supporters of Ghana&#8217;s main opposition National Democratic Congress (NDC) party candidate and former President John Dramani Mahama celebrate after his rival Vice President Mahamudu Bawumia conceded defeat day after the presidential and parliamentary election in Ghana, December 8, 2024. REUTERS/Zohra Bensemra</figcaption></figure>



ACCRA, (Reuters) &#8211; Ghana&#8217;s former President John Dramani Mahama has staged a political comeback by winning the West African nation&#8217;s presidential election after his rival Vice President Mahamudu Bawumia conceded defeat on Sunday.



The result of Ghana&#8217;s general election is another blow to a ruling party in a region where voters, hit by economic hardship, high inflation and local currency depreciation, have caused upsets as they seek changes in leadership.



Mahama, 66, who served as Ghana&#8217;s president from 2012 to 2016, framed Bawumia as representing a continuation of the policies that led to Ghana&#8217;s worst economic crisis in a generation.



The world&#8217;s second biggest cocoa grower, and major gold-producing nation, reached a deal with the International Monetary Fund last year for a $3 billion bailout after it defaulted on most of its international debt.



&#8220;I have, this morning, received a congratulatory call from my brother Dr. Bawumia, following my emphatic victory in Saturday’s election. Thank you, Ghana,&#8221; Mahama said in a post on X social media.



Addressing a press conference from his residence, Bawumia said he called Mahama to congratulate him, adding that Mahama&#8217;s National Democratic Congress (NDC) also won the parliamentary election.



&#8220;The data from our own internal collation of the election results indicate that former President John Dramani Mahama has won the presidential election decisively,&#8221; Bawumia said, adding that NDC also won the parliamentary election.



Bawumia said he conceded before the official result to ease tensions.



Before his concession, scuffles had been reported in several local constituency centres where results were still arriving from polling stations.



&#8220;I am making this concession speech before the official announcement by the Electoral Commission to avoid further tension and preserve the peace of our country,&#8221; Bawumia said.



&#8220;It is important that the world investor community continues to believe in the peaceful and democratic character of Ghana,&#8221; he added.



Hundreds of NDC supporters took to the streets of the capital Accra on Sunday to celebrate after Bawumia conceded defeat.



Early results had shown Mahama and the NDC party with a commanding lead. Joy News reported that Mahama was leading with over 53% of the vote to Bawumia&#8217;s 45.16% after provisional results from 68 out of a total 276 constituencies were counted.



In a news conference on Sunday before Bawumia conceded, Sammy Gyamfi, national spokesperson for the NDC, said provisional internally collated results by party agents from 38,896 out of the total 40,976 polling stations showed Mahama was leading with around 56%.



He said the party appeared on track to win around 185 out of 276 seats in Parliament.



(Reporting by Maxwell Akalaare Adombila, Christian Akorlie and Bate Felix Writing by Bate Felix; Editing by Kirsten Donovan and Christina Fincher)

GZ42FNCPGRK2ZE3SBHPBDHACCI

Ghana’s former President Mahama wins election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-820x547.jpg" alt="" class="wp-image-563928" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ABU DHABI, UNITED ARAB EMIRATES &#8211; DECEMBER 05: Max Verstappen of the Netherlands and Oracle Red Bull Racing looks on in the Paddock during previews ahead of the F1 Grand Prix of Abu Dhabi at Yas Marina Circuit on December 05, 2024 in Abu Dhabi, United Arab Emirates. (Photo by Mark Thompson/Getty Images)</figcaption></figure>



ABU DHABI, Dec 8 (Reuters)&nbsp;&#8211;&nbsp;Formula One world champion Max Verstappen will serve a penalty for swearing when he visits Rwanda next week to collect his winner&#8217;s trophy, the governing FIA said on Sunday.



Verstappen, who secured his fourth successive championship in Las Vegas last month, was ordered to do &#8220;work of public interest&#8217; after swearing during a Singapore Grand Prix press conference in September.



The FIA&#8217;s prize-giving gala is in Kigali next week, a first for the governing body.



It said after the season-ending Abu Dhabi Grand Prix that the Red Bull driver &#8220;would undertake some work with junior competitors as part of the grassroots development programme organised by the Rwanda Automobile Club&#8221;.



The activity will involve an FIA Affordable Cross Car built locally from blueprints provided by the governing body.



The Dutch driver collected a 10-second penalty in Sunday&#8217;s season-ending Abu Dhabi Grand Prix after a first-lap collision with McLaren&#8217;s Oscar Piastri.



While Verstappen apologised to Piastri, he was less complimentary about the stewards who gave him the time penalty and two penalty points on his licence.



The 27-year-old now has a total of eight points for the 12-month period, with 12 triggering an automatic one-race ban.



&#8220;Could we ask for 20 seconds, stupid idiots,&#8221; he said over the radio, a reference to the two 10-second penalties he received in Mexico in October.



The&nbsp;Piastri collision&nbsp;could have been disastrous for McLaren, who were fighting Ferrari for the constructors&#8217; title and emerged on top thanks to Lando Norris winning from pole position.



&#8220;I apologised to Oscar. I never want to crash with anyone, especially not Oscar who is a great guy,&#8221; Verstappen told Sky Sports television.



&#8220;I went up the inside because we had a really good launch but then I realised that it was going to be tight at the apex.



&#8220;I tried to stay on the kerb but unfortunately we clipped with the tyres, hooked each other and both spun. It&#8217;s not great, as simple as that.&#8221;



Piastri fought back to 10th and McLaren&nbsp;became&nbsp;champions for the first time in 26 years,&nbsp;by 14 points.



(Reporting by Alan Baldwin, editing by Toby Davis and Clare Fallon)

F1 Grand Prix of Abu Dhabi – Previews

Motor racing-Verstappen to serve swearing penalty in Rwanda

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-820x547.jpg" alt="" class="wp-image-562966" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian President Bola Ahmed Tinubu listens to French President Emmanuel Macron (not seen) as he delivers a statement to the press after a meeting at the Elysee Palace in Paris as part of his a two-day state visit to France, November 28, 2024. REUTERS/Sarah Meyssonnier/Pool/File Photo</figcaption></figure>



ABUJA, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s Senate has passed a bill seeking to make it a crime to export large quantities of unprocessed corn in an effort to alleviate hunger in the West African nation, documents seen by Reuters on Friday showed.



Africa&#8217;s most populous country is grappling with its worst cost-of-living crisis in a generation.



Economic hardship has worsened since President Bola Tinubu started austerity reforms, including devaluing the country&#8217;s naira currency and ending a decades-old petrol subsidy, fuelling inflation.



The weak Nigerian currency has spurred informal exports of corn, rice and sorghum to neighbouring countries due to the exchange rate differential with the West African CFA franc.



Corn is a staple in Nigeria that is also used for animal feed, drinks and processed flour.



The United States Department of Agriculture (USDA) forecasts a rise in Nigeria&#8217;s 2024/25 corn exports to 75,000 metric tons from its 2023/24 estimate of 50,000 metric tons.



The Senate bill, which will need the president&#8217;s assent to become law, will make it illegal to export unprocessed corn from a minimum of 1 metric ton.



Violators would pay the value of the corn in fines or face a one-year prison sentence.



A joint report by Nigeria&#8217;s government and the United Nations said in November that more than 30 million people are expected to be food insecure next year, a one-third jump from this year.



The USDA estimates that Nigeria consumes about 12 million metric tons of corn a year, importing roughly 100,000 metric tons.



(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Alexander Winning and Barbara Lewis)

FILE PHOTO: French President Macron meets Nigerian President Bola Tinubu in Paris

Nigeria’s Senate seeks to criminalise corn exports to tackle hunger

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59.jpg" alt="" class="wp-image-422969" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59-768x487.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: A car drives past a construction site of the Central Business District (CBD) in the capital Gaborone, Botswana, September 21, 2018. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



GABORONE, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Botswana&#8217;s economy could shrink 1.7% this year, the first contraction since the COVID-19 pandemic, mostly because of a prolonged downturn in the global diamond market, finance minister Ndaba Gaolathe said.



In February, when it presented its budget, the southern African country&#8217;s government forecast 4.2% growth in 2024 but weakness in the diamond market since late last year has hurt demand for Botswana&#8217;s key export.



Debswana, Botswana&#8217;s joint venture with De Beers, lowered its 2024 diamond production guidance by about 6 million carats to 17.9 million carats. De Beers diamond sales were down 40% in the first nine months of 2024 from the year earlier period.



Gaolathe told lawmakers on Thursday that the contraction in Gross Domestic Product (GDP) this year could be greater than 1.7% should additional risks materialise, according to a copy of his remarks sent to reporters by the finance ministry.



Those risks include further disruptions in the diamond market, the impact of a severe regional drought and defects at a major power plant.



The budget deficit is now seen at 6.75% of GDP, compared to the estimate of 2.8% given in February, Gaolathe said.



Like other southern African countries Botswana has been affected by the worst regional drought in decades, which has sapped economic growth in neighbouring Namibia and Zimbabwe.



Botswana&#8217;s central bank said on Thursday that the economy would contract in 2024 but did not say by how much.



(Reporting by Brian Benza; Writing by Tannur Anders; Editing by Alexander Winning, Kirsten Donovan)

download-59

Botswana economy could shrink 1.7% this year, finance minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3345" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QBEYZAZEXFJCNHYDTQA5BDKG2M.avif" alt="" class="wp-image-562813"/><figcaption class="wp-element-caption">The logo of consulting firm McKinsey and Company is seen at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019. REUTERS/Charles Platiau/File Photo</figcaption></figure>



WASHINGTON/NEW YORK, Dec 5 (Reuters) &#8211; McKinsey and Company Africa Ltd, a subsidiary of McKinsey &amp; Company, will pay more than $122 million to resolve a U.S. investigation into a bribery scheme in South Africa, the Justice Department said on Thursday.



Privately owned McKinsey Africa was charged with one count of conspiracy to violate the Foreign Corrupt Practices Act for agreeing to pay bribes to officials at state-owned energy company Eskom and port and freight rail operator Transnet in exchange for non-public information about consulting contracts.



McKinsey Africa entered into a three-year deferred prosecution agreement with the Justice Department.



&#8220;McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits,&#8221; said Nicole M. Argentieri, head of the Justice Department’s Criminal Division.



Vikas Sagar, a senior former partner at McKinsey, previously pleaded guilty to one count of conspiracy to violate the act. He could not immediately be reached for comment.



In a statement, McKinsey said Sagar had concealed his conduct from the company, and that it fired him soon after it learned about the issues.



McKinsey and McKinsey Africa earned around $85 million in profits through the bribery scheme, the Justice Department said. Eskom had hired McKinsey to help it execute a &#8220;turnaround plan.&#8221;



Inefficiencies at Eskom and Transnet have constrained growth in Africa&#8217;s most industrialized economy for more than a decade.



The Justice Department said McKinsey Africa had received credit for cooperating with its investigation and conducting anti-corruption training for employees. The $122,850,000 McKinsey has agreed to fork up includes a penalty it will pay in South Africa.



McKinsey is also in talks with the Justice Department to pay more than $600 million to resolve a separate investigation into the consulting firm&#8217;s work helping opioid manufacturers boost sales that allegedly contributed to a deadly addiction epidemic, people familiar with the matter have told Reuters.



(Reporting by Doina Chiacu and Ismail Shakil; additional reporting by Nate Raymond; Writing by Luc Cohen; Editing by Caitlin Webber and Jonathan Oatis)

QBEYZAZEXFJCNHYDTQA5BDKG2M

McKinsey Africa to pay $122 million in South Africa bribery scheme, US Justice Department says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Donor countries have pledged a record $100 billion three-year replenishment of the World Bank&#8217;s fund for the poorest nations, providing a vital lifeline for their struggles against crushing debts, climate disasters, inflation and conflict.



The World Bank made the announcement early on Friday in Seoul at a pledging conference for the International Development Association, which provides grants and very low-interest loans to 78 low-income countries.



The total exceeds the previous $93 billion IDA replenishment announced in December 2021. Countries will contribute about $24 billion directly to IDA, only marginally increased from the $23.5 billion pledged in 2021, but the fund will issue bonds and employ other financial leverage to stretch that to the targeted $100 billion in grants and loans through mid-2028.



The two-day pledging conference fell short of the $120 billion goal that African heads of state had called for, partly because the U.S. dollar&#8217;s strength .DXY &#8211; pushed up by Donald Trump&#8217;s U.S. presidential election victory &#8211; diminished the dollar value of significant increases in foreign currency contributions by several countries.



At a G20 leaders&#8217; summit in Brazil last month, Norway increased its pledge by 50% from 2021 to 5.024 billion krone. That&#8217;s $455 million at current exchange rates, but at the start of 2024, it would have been worth $496 million.



South Korea boosted its pledge by 45% to 846 billion won, ($597 million), Britain by 40% to 1.8 billion pounds, and Spain by 37% to 400 million euros. Spain&#8217;s pledge was worth $423 million on Friday, $10 million less than the day it was announced in October.



U.S. President Joe Biden pledged a $4 billion U.S. contribution, up from $3.5 billion in the previous round.



The World Bank did not immediately reveal the amounts of other pledges, but said that 17 donor countries had committed to raising their contributions by more than 25%, with 10 offering increases of 40% or more.



World Bank President Ajay Banga said in a statement that IDA will be able to stretch the new pledges further because of work done to optimize the development lender&#8217;s balance sheet over the past two years, increasing its lending capacity by some $150 billion over 10 years.



The bank&#8217;s ability to leverage contributions will transform &#8220;modest contributions into life-changing investments,&#8221; Banga said in an open letter to shareholders and client countries.



About 35 countries have graduated from IDA to become donors, including China, South Korea, Chile, Jordan, and Turkey.



Banga said the resources will allow the bank to put job creation at the center of its work, even as it addresses climate change and other global crises.



&#8220;In this context, IDA is not just a financial instrument; it is a catalyst for job creation,&#8221; Banga said. &#8220;It provides countries with the resources to build infrastructure, improve education and health systems and foster private sector growth.&#8221;



($1 = 0.9455 euros)



(Reporting by David Lawder; Editing by Shri Navaratnam and Saad Sayeed)

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Nigeria’s Dangote Refinery makes first petrol export to Cameroon

Annual U.S. inflation rate accelerates to 2.7% in November, as expected

UN chief says debt relief tools far from adequate

Ghana’s economy grew 7.2% in third quarter in recovery from crisis

South Africa inflation rises less than expected, helped by food

The CPI report Wednesday is expected to show that progress on inflation has hit a wall

Mozambique’s post-election protests hit South32 plant, chrome exports

South African rand softens at start of data-filled day

World Bank cuts Kenya’s 2024 growth estimate to 4.7% on fiscal challenges

John Dramani Mahama returning as Ghana president on pledge to mend economy

Mauritius economy ‘much worse than we imagined’, new prime minister says

Ghana’s former President Mahama wins election

Motor racing-Verstappen to serve swearing penalty in Rwanda

Nigeria’s Senate seeks to criminalise corn exports to tackle hunger

Botswana economy could shrink 1.7% this year, finance minister says

McKinsey Africa to pay $122 million in South Africa bribery scheme, US Justice Department says

World Bank wins $100 bln replenishment of fund for poorest countries

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featured

Nigeria’s Dangote Refinery makes first petrol export to Cameroon

Annual U.S. inflation rate accelerates to 2.7% in November, as expected

UN chief says debt relief tools far from adequate

Ghana’s economy grew 7.2% in third quarter in recovery from crisis

South Africa inflation rises less than expected, helped by food

The CPI report Wednesday is expected to show that progress on inflation has hit a wall

Mozambique’s post-election protests hit South32 plant, chrome exports

South African rand softens at start of data-filled day

World Bank cuts Kenya’s 2024 growth estimate to 4.7% on fiscal challenges

John Dramani Mahama returning as Ghana president on pledge to mend economy

Mauritius economy ‘much worse than we imagined’, new prime minister says

Ghana’s former President Mahama wins election

Motor racing-Verstappen to serve swearing penalty in Rwanda

Nigeria’s Senate seeks to criminalise corn exports to tackle hunger

Botswana economy could shrink 1.7% this year, finance minister says

McKinsey Africa to pay $122 million in South Africa bribery scheme, US Justice Department says

World Bank wins $100 bln replenishment of fund for poorest countries

News Tips

Advertise With Us

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