<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1500" height="1000" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/EZPYBC4O4FOVFK4OHFZ6JGQSCM.avif" alt="" class="wp-image-588658"/><figcaption class="wp-element-caption">South African President Cyril Ramaphosa gestures as he delivers his 2025 State of the Nation Address in Cape Town, South Africa, February 6, 2025. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, Feb 20 (Reuters) &#8211; Foreign ministers from the G20 top economies were to meet in South Africa on Thursday and Friday, amid tensions between members over the Ukraine war, trade disputes and with the top U.S. diplomat staying away owing to a feud with the hosts.



The G20 countries, which represent some 85% of global GDP and three quarters of trade, often struggle to see eye to eye, but geopolitical rifts since Russia&#8217;s 2022 Ukraine invasion have rendered it more fractious than ever.



The discord has increased since President Donald Trump took office a month ago and implemented rapid changes in Washington&#8217;s trade and foreign policies.



South Africa holds the rotating presidency of the group and for President Cyril Ramaphosa the first G20 meeting in Africa was an opportunity to get rich nations to heed poorer countries&#8217; concerns &#8211; worsening inequality, inadequate action on climate change, and a financial system that favours investment banks over poor sovereign debtors.



But the United States won&#8217;t be attending: Secretary of State Marco Rubio earlier this month rejected as &#8220;very bad&#8221; the previously agreed agenda of &#8220;diversity, equity and inclusion&#8221;.



Then Trump cut U.S. aid to South Africa in an ideological dispute with the latter&#8217;s efforts to redress historic racial injustices in land ownership &#8211; and over its genocide case against U.S. ally Israel at the International Court of Justice.



The gathering takes place as Trump has upended the U.S. policy of solidarity with Ukraine as he seeks to broker peace in its war with Russia. He has blamed President Volodymyr Zelenskiy for the conflict, and sidelined NATO allies in ending a campaign to isolate Russia.



The U.S. absence is an opportunity for China, which has the world&#8217;s second biggest economy, to expand its influence. Such efforts by Beijing are normally focused on the Global South but China has quickly sought to capitalise on the cracks in the transatlantic alliance.



Its foreign ministry said on Monday that &#8220;healthy and stable&#8221; China-EU relations are needed now more than ever.



(Reporting by Tim Cocks; Additional reporting by Nellie Peyton, Tannur Anders in Johannesburg; Editing by Frances Kerry)

EZPYBC4O4FOVFK4OHFZ6JGQSCM

G20 foreign ministers gather amid tensions over trade, Ukraine

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Feb 20 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand firmed slightly in early trade on Thursday, recouping some of the previous session&#8217;s losses as focus shifted from a delay in the national budget to the first meeting of G20 foreign ministers in Johannesburg.



At 0812 GMT, the rand traded at 18.4925 against the dollar, about 0.2% stronger than its previous close.



The local currency slipped on Wednesday after a last-minute postponement of the budget due to disagreements within the country&#8217;s coalition government over a proposal to hike value-added tax (VAT).



President Cyril Ramaphosa said the cabinet would work together to deliver a new budget, which is now scheduled for March 12.



South Africa, which currently has the presidency of the Group of 20 major economies, will host the first meeting of foreign ministers later on Thursday amid tensions with the U.S. over the country&#8217;s land redistribution policy and its genocide case against Israel at the World Court.



G20 finance ministers and central bank governors are due to meet next week in Cape Town.



South Africa&#8217;s benchmark 2030 government bond was slightly stronger, with the yield down 1.5 basis points to 9.165%.



(Reporting by Sfundo Parakozov; Editing by Helen Popper)

Illustration photo of South African rand

South African rand partially recoups losses, with focus on G20 meeting

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/YHJLDZP43BMT3MATCRMZFOLZ6Q.avif" alt="" class="wp-image-588585"/><figcaption class="wp-element-caption">U.S. Secretary of the Treasury Scott Bessent speaks, at the White House, in Washington, U.S. February 3, 2025. REUTERS/Elizabeth Frantz/File Photo</figcaption></figure>



MIAMI/BERLIN, Feb 19 (Reuters)&nbsp;&#8211;&nbsp;U.S. Treasury Secretary Scott Bessent&nbsp;said on Wednesday he will&nbsp;skip next week&#8217;s meeting of finance ministers and central bank governors from the Group of 20 major economies in Cape Town, South Africa.



The decision to miss the regular gathering of finance leaders from the world&#8217;s largest economies is highly unusual for a U.S. Treasury secretary, as the U.S. often leads G20 agreements on financial and monetary policy matters.



Bessent said in a post on X that he would not attend the summit due to &#8220;obligations in Washington&#8221;. A senior official would attend in his place, he added.



He said he looked forward to seeing his global counterparts in Washington meetings of the International Monetary Fund and the World Bank in coming months.



One of the sources told Reuters that G20 member countries had been informed of Bessent&#8217;s decision not to attend. A second source said Bessent could not attend because he had &#8220;duties with the president.&#8221;



It was not immediately clear if those duties were linked to a possible summit meeting between U.S. President Donald Trump and Russian President Vladimir Putin.



Trump on Tuesday told reporters he would &#8220;probably&#8221; still meet with Putin to discuss ending the Ukraine war before the end of the month. The Kremlin echoed that hope early Wednesday, but said the meeting could happen later.



The White House and&nbsp;U.S. Treasury did not respond to&nbsp;requests for comment&nbsp;on&nbsp;Bessent&#8217;s&nbsp;plans. The New York Times first reported Bessent&#8217;s planned absence.



The G20&nbsp;group &#8211; which includes the U.S., China and Russia among others &#8211; has&nbsp;tackled a range of issues affecting the global economy,&nbsp;from responding to the COVID-19 pandemic and fighting inflation to&nbsp;dealing with&nbsp;climate change, debt&nbsp;distress and trade conflicts.



<h2 class="wp-block-heading" id="h-south-africa-tensions">SOUTH AFRICA TENSIONS</h2>



South Africa holds the G20 presidency from December 2024 to November 2025.&nbsp;The U.S. will head the group next year.



Tensions between the U.S. and South Africa have risen in recent weeks following complaints from&nbsp;Trump&nbsp;over South Africa&#8217;s land policy.



Earlier this month, Trump said that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly.&#8221;



The White House said Washington would formulate a plan to resettle white South African farmers and their families as refugees, with U.S. officials to prioritize humanitarian relief for Afrikaners in South Africa, who are mostly white descendants of early Dutch and French settlers.



U.S. Secretary of State Marco Rubio subsequently canceled a trip to Johannesburg for a meeting of G20 foreign ministers on Thursday and Friday.



Mark Sobel, a former senior Treasury official, said the decision to skip the G20 gathering was a huge error.



&#8220;This was a golden opportunity for Bessent to meet his counterparts in plenary sessions and more importantly in behind-the-scenes bilaterals, including with China,&#8221; for discussions on global economic and tax policy and exchange rates, said Sobel, U.S. chair of the OMFIF think tank.



(Reporting by Andrea Shalal in Miami, Katherine Jackson in Washington and Christian Kraemer in Berlin; Additional reporting by David Lawder and Jasper Ward; Writing by David Lawder and Brendan O&#8217;Boyle; Editing by Chizu Nomiyama and Stephen Coates)

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US Treasury’s Bessent to skip G20 meeting in South Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="570" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-820x570.jpg" alt="" class="wp-image-588294" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-820x570.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-768x534.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-1536x1068.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa&#8217;s Finance Minister Enoch Godongwana speaks during his 2024 budget speech in Cape Town, South Africa, February 21, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



CAPE TOWN, Feb 19 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s national budget was postponed at the last minute on Wednesday because of a disagreement between the political parties in the ruling coalition government.



The speaker of the National Assembly, Thoko Didiza, told lawmakers that the budget had never been postponed like this in the three decades since the end of apartheid.



The budget was now expected to be tabled on March 12, she added.



For the first time in the democratic era, the African National Congress (ANC) will need the support of other parties to pass the budget this year, since it lost its parliamentary majority in an election last year.



Its main partner in the coalition, the Democratic Alliance, said the budget had been postponed because of its opposition to the ANC&#8217;s proposal to increase value-added tax (VAT) by 2 percentage points.



The local rand currency extended losses after the budget was delayed, at one point trading down 1% against the dollar on the day.



The Business Day newspaper reported on Wednesday that the proposal to increase VAT was intended to plug holes in the education budget and support social spending.



The last time VAT was raised was in 2018, and opposition parties and labour unions have in recent weeks voiced strong opposition to rumours of a further increase.



Since the aftermath of the 2008-09 global financial crisis, the government of Africa&#8217;s most industrialised nation has struggled to deliver economic growth rates high enough to make a dent in inequality and unemployment.



Public debt has climbed steeply because of revenue shortfalls and runaway spending.



(Additional reporting by Olivia Kumwenda-Mtambo, Tannur Anders and Sfundo Parakozov in Pretoria;Writing by Bhargav Acharya;Editing by Alexander Winning and Aidan Lewis)

South Africa’s Finance Minister Godongwana presents 2024 budget in Cape Town

South African budget postponed over lack of agreement

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/7YSVP3V465LYDNPKSHKB2M4NNI-820x545.jpg" alt="" class="wp-image-588302" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/7YSVP3V465LYDNPKSHKB2M4NNI-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/7YSVP3V465LYDNPKSHKB2M4NNI-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/7YSVP3V465LYDNPKSHKB2M4NNI-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/7YSVP3V465LYDNPKSHKB2M4NNI-768x510.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/7YSVP3V465LYDNPKSHKB2M4NNI-1536x1020.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/7YSVP3V465LYDNPKSHKB2M4NNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African opposition leader, John Steenhuisen of the Democratic Alliance (DA) gestures during a march against crime in Riverlea, ahead of the May 29 general elections in Johannesburg, South Africa, May 16, 2024. REUTERS/Siphiwe Sibeko/File Phot</figcaption></figure>



JOHANNESBURG, Feb 19 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Democratic Alliance (DA) party said the 2025 budget was postponed on Wednesday due to its opposition to a 2-percentage-point increase in value-added tax (VAT) proposed by the African National Congress (ANC).



This is a developing story&#8230;



(Reporting by Bhargav Acharya;Editing by Alexander Winning)

7YSVP3V465LYDNPKSHKB2M4NNI

South Africa’s DA says budget postponed due to its opposition to VAT increase

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="720" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/HACNBSSITZP6VKINH5EEMDGPKI.avif" alt="" class="wp-image-583356"/><figcaption class="wp-element-caption">South African President Cyril Ramaphosa briefs the media on South Africa&#8217;s G20 presidency for 2025 at the parliament in Cape Town, South Africa, December 3, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



South African President Cyril Ramaphosa has called an emergency cabinet meeting after the Democratic Alliance threatened not to support today’s budget statement by Finance Minister Enoch Godongwana over a proposal to hike the value added tax.



Three sources told CNBC Africa that Godongwana proposed raising the rate from the current 15 percent to plug a hole created by the withdrawal of funding from the United States over South Africa’s land reforms and perceived support for Russia and China.



The rand declined more than 10 cents to as low as R18.46 against the dollar after trading mostly little changed in morning trade.

HACNBSSITZP6VKINH5EEMDGPKI

S. Africa’s Ramaphosa Calls Urgent Cabinet Meeting over budget

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1005" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/4AYCAYRYPFC5LO7RDLWAFNT4NM.avif" alt="" class="wp-image-588214"/><figcaption class="wp-element-caption">Rwandan security officers escort Congolese forces who surrendered, in Gisenyi, Rwanda, January 27, 2025. REUTERS/Jean Bizimana</figcaption></figure>



NAIROBI, Feb 19 (Reuters) &#8211; Rwanda&#8217;s sole international government bond fell by the biggest margin since August 2022 on Wednesday, as worries over fighting in the neighbouring Democratic Republic of the Congo, where Rwanda backs M23 rebels, intensified.



The 1.7 cent fall in the 2031-maturing bond left it at 79 cents, its lowest level since January 2024.



Late last month, the M23 rebels seized Goma, the largest city in eastern Congo, and fighting has since spread to other areas as the group tries to capture more territory.



United Nations human rights office also accused M23 rebels on Tuesday of executing children in eastern Congo during their advance.



Rwanda&#8217;s government in Kigali meanwhile said it was suspending development co-operation with Belgium, accusing Brussels of working jointly with the Congo to &#8220;sabotage&#8221; Rwanda&#8217;s access to development finance, including from multilateral institutions.



This M23 advance is the gravest escalation in more than a decade of the long-running conflict in eastern Congo, rooted in the spillover of Rwanda&#8217;s 1994 genocide into Congo and the struggle for control of Congo&#8217;s vast minerals resources.



Rwanda rejects allegations from Congo, the UN and Western powers that it supports M23 with arms and troops. It says it is defending itself against the threat from a Hutu militia, which it says is fighting with the Congolese military.



The conflict risks driving up Rwanda&#8217;s debt costs and weakening its currency, credit ratings agency S&amp;P said earlier this month.



(Reporting by Duncan Miriri; editing by Marc Jones)

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Rwanda’s international bond plunges as concerns over M23 rebels mount

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-820x547.jpeg" alt="" class="wp-image-588196" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Fruit and veg stall Borough Market on 27th August 2024 in London, United Kingdom. Borough Market is a retail food market and farmers market in Southwark. It is one of the largest and oldest food markets in London, with a market on the site dating back to at least the 12th century.  Mike Kemp | In Pictures | Getty Images</figcaption></figure>



The U.K.’s inflation rate rose sharply to 3% in January, coming in above analyst expectations, according to data released by the Office for National Statistics (ONS) on Wednesday.



Economists polled by Reuters had expected a reading of 2.8% in the twelve months to January.



Britain’s consumer price index (CPI) fell to a lower-than-expected 2.5% in December,&nbsp;with core price growth also slowing further.



Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by 3.7% in the 12 months to January, which was up from 3.2% in the previous month. Notably, the core services annual rate rose from 4.4% to 5.0%, the ONS said.



“Inflation increased sharply this month to its highest annual rate since March last year. The rise was driven by air fares not falling as much as we usually see at this time of year, partly impacted by the timing of flights over Christmas and New Year. This was the weakest January dip since 2020,” Grant Fitzner, the ONS’ chief economist, commented Wednesday.



“After falling this time last year, the cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals. Private school fees were another factor, as new VAT [a sales tax] rules meant prices rose nearly 13% this month,” he said, in comments on the X social media platform.



Responding to the latest data, U.K. Chancellor Rachel Reeves said that delivering economic growth and “getting more money in people’s pockets” were her priorities, while acknowledging that “millions of families are still struggling to make ends meet.”



The British pound was little changed against the dollar following the data release, trading at $1.2615.



<h2 class="wp-block-heading" id="h-sluggish-growth"><a></a>Sluggish growth</h2>



The U.K.’s inflation rate had hit a more than three-year low of 1.7% in September, but monthly prices have picked up since on the back of higher fuel costs and services fees rising faster than the price of goods.



Earlier in February, sluggish growth and a recent drop in inflation prompted the Bank of England to make its first interest rate cut of the year, bringing its benchmark rate down to 4.5%.



The central bank signaled further rate trims were coming but noted that higher global energy costs and regulated price changes are expected to push up headline inflation to 3.7% in the third quarter of 2025, “even as underlying domestic inflationary pressures are expected to wane further.” The BOE expects the inflation rate to fall back to the 2% target by 2027.



Along with listing its price growth outlook, the central bank also halved the U.K.’s economic growth forecast from 1.5% to 0.75% this year.



The latest leap in CPI inflation was no surprise, but it was larger than everyone expected, Ruth Gregory, deputy chief U.K. economist at Capital Economics, noted Wednesday.



“It’s no secret that higher energy prices will push CPI inflation further above 3% over the next 7 months. We doubt this will prevent the Bank from cutting rates further. Indeed, we still think CPI inflation will fall below 2% in 2026 as the fading of some temporary effects and the weak economy feed through to lower services inflation,” she said in emailed comments.



“The risk is that the rise in inflation proves more persistent and rates are cut more slowly than we expect, or not as far,” Gregory added.

108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014

UK inflation leaps to higher-than-expected 3% in January

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-820x547.jpeg" alt="" class="wp-image-588161" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man carrying a kite in the shape of the Chinese national flag walks along the Bund while buildings of Pudong’s Lujiazui financial district  in Shanghai, China Bloomberg | Bloomberg | Getty Images</figcaption></figure>



China is starting to see a rebound in its mergers and acquisition scene after years of decline as the government’s stimulus measures start to bear fruit, while pressure from Donald Trump’s tariffs is also driving industry consolidation.



In 2024, China’s M&amp;A activity was on course to log its fifth straight year of decline, until the final quarter of the year, which saw a sudden acceleration in activity. The value of deals conducted during that period jumped 78.5% to $129 billion from $72 billion in the previous quarter, data from Dealogic showed.



And deal-making is about to pick up more, according to industry watchers whom CNBC spoke to.



The uptick in deal flow in the fourth quarter of 2024 was in part fueled by stimulus efforts introduced by policymakers in late September, said Vivian Wong, head of M&amp;A Analytics at ION Analytics, which is under the same group as Dealogic. Those measures aimed to consolidate domestic industries in order to enhance competitiveness in China’s slowing economy, added Wong.



China’s M&amp;A volume has been trending downward since 2020. Furthermore, the total value of deals logged in 2024 is about 45% less than the $553 billion generated in 2020, according to data from Dealogic.



This was largely because of weak overall economic activity in China and the ensuing bearish sentiments, said Theodore Shou, chief investment officer at Skybound Capital, an alternative assets manager.



The conservative positioning of Chinese corporations also led to less appetite for private market transactions in the past couple of years, he added.



However, 2025 will “see significant merger and acquisition activities involving China,” Zhe Yu, a partner at Shanghai-based Zhong Lun Law Firm, which offers legal support for M&amp;A ventures and IPO deals in China, told CNBC.&nbsp;



<h2 class="wp-block-heading" id="h-a-hedge-against-trump-tariffs"><a></a>A hedge against Trump tariffs?</h2>



Apart from Beijing’s stimulus measures, the flurry of tariff threats before U.S. President Trump’s term and their eventual implementation are also a key driving force for Chinese companies to adapt by diversifying their supply chains and ensuring they have the means to do so, said Deloitte’s APAC M&amp;A Services Leaders Stanley Lah, who is also the firm’s deputy leader of financial advisory in China.



Trump signed an order imposing 10% tariffs against China on Feb. 1. They came into effect Feb. 4 and will apply on top of the existing tariffs of up to 25% on Chinese goods levied during his first presidency.



That development will nudge domestic companies toward consolidation as they look for alternative shipping routes to the U.S. that avoid China as a point of origin, as well as try to become more effective in global markets, Lah said.



“It’s something they need to do quickly, and buying is faster than building a green field,” he added, referring to building facilities and infrastructure from scratch.



This pressure is most keenly felt by small companies in China.



In the third quarter of 2024, China’s micro and small enterprises reported average revenue of 136,000 yuan ($18,700), marking a 4.8% decline compared with the same period in 2023, according to Peking University’s Centre for Enterprise Research’s most recent survey on MSEs. 



To stay afloat, many MSEs had to cut back on hiring and shrink their operations, among a slew of cost-cutting strategies, the survey said.



M&amp;A transactions also allow small companies to better compete on an international scale. For example, Chinese banks or security houses need to consolidate and attain a large-enough scale to prevent downsizing, said Ernst &amp; Young’s Asia-Pacific IPO Leader Ringo Choi.&nbsp;



China saw its biggest wave of rural bank mergers last year as smaller banks were plagued by weak loan growth and increasing bad loans, according to Reuters’ analysis of government data.



“It no longer makes economic sense for small players to reinvent the wheels again and again just to stay in the game and ultimately, they will not be able to afford that,” said Skybound Capital’s Shou. Chinese companies are competing “too forcefully” with each other, which is lowering their margins, he added.



Corporate consolidations also offer an attractive exit strategy for some of those companies, especially as filing an IPO in the Chinese stock markets becomes increasingly uncertain, Yu said.



<h2 class="wp-block-heading"><a></a>Fewer regulatory hurdles, more financial means</h2>



Last September, in a bid to enhance deal-making efficiency, the China Securities Regulatory Commission announced that it will simplify its approval processes and cut down the review time for qualified companies. It will also encourage firms to raise capital for their M&amp;A deals in phases.&nbsp;



Previously, deal-makers faced long approval periods and had to contend with extensive information disclosure demands that came with antitrust and data security concerns.



While antitrust laws and hurdles remain, merging filing requirements have relaxed significantly, Yu said. “Many transactions that would otherwise have been subject to merger filing clearance are no longer required to be filed.”



Interest rates in China are also likely to remain at current levels, which may keep M&amp;A costs at a reasonable level, he added.



Companies with a stronger balance sheet and cash piles also have the capacity to buy out firms in a weaker position as a form of investment, said Lah.



Bigger domestic companies are accumulating large reserves of cash, with Chinese-listed firms paying out a record 2.4 trillion yuan in dividends last year. Goldman Sachs estimates that Chinese companies’ cash distribution could hit $3.5 trillion yuan this year to notch a new high.



Big tech companies like Pinduoduo, a Chinese online retailer, currently have a lot of dry powder, which could go into dividend payouts, share buybacks and even M&amp;A, Ernst &amp; Young’s Choi observed.



<h2 class="wp-block-heading"><a></a>More domestic M&amp;A</h2>



A larger portion of the incoming M&amp;A deals will center around domestic transactions rather than cross-border ones, said Deloitte’s Lah, a sentiment echoed by Shou. Both believe that foreign interest in buying Chinese companies has yet to recover.



Moreover, cross-border M&amp;A activities in the high-tech sector is unlikely because of geopolitical factors, said Yu.



Still, Chinese companies may bail out failing foreign peers by merging with or acquiring them, said Shou.



Domestically, some Chinese companies may opt for joint ventures in attempts to expand to new markets, Shou said. The “really hot sectors” which are doing well, such as technology and green energy, will see money coming in, according to Lah.



Similarly, Zhong Lun Law Firm’s Yu sees many potential consolidation opportunities in industries related to new energy, such as solar and wind energy and nickel mining, among others.



Less competitive industries and companies could also let themselves be bought out as a means to survive, the industry watchers whom CNBC spoke to suggested.



One sector that will experience more deals is “fragmented industries with struggling players,” Lah said, because it’s “difficult to make profits as a small company.”



“They need a bigger scale,” or merge with a company with “bigger performance to survive in this new normal,” he said

108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY

China deal-making ramps up after years of decline as domestic companies prepare for Trump tariffs

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PIKWK2FQQVOJXDDJQ5VEJMBXA4.avif" alt="" class="wp-image-587900"/><figcaption class="wp-element-caption">People shop at a hypermarket in Abuja, Nigeria March 15, 2022. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Feb 18 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s annual inflation rate stood at 24.48% in January, the statistics agency said on Tuesday, well down from the previous month&#8217;s figure after the country&#8217;s price index was rebased for the first time in more than a decade.



The National Bureau of Statistics said the rebasing &#8211; in which the items in the reference &#8216;basket&#8217; used to calculate inflation were reweighted and the comparison period was updated from 2009 to 2024 &#8211; was necessary to reflect changes in consumption patterns.



&#8220;The price estimate from NBS will be much more reflective of the current inflationary pressure experienced within the economy,&#8221; Statistician-General Prince Adeyemi Adeniran told a press conference.



He said the latest data should not be interpreted as reflecting a sharp slowdown in inflation. Last month, before the rebasing, the statistics bureau put December inflation at 34.80% year on year.



&#8220;It&#8217;s not saying prices have come down in the market to this rate, but the rate of change between 2024 January and 2025 January is what the inflation rate is all about,&#8221; Adeniran said.



The Consumer Price Index is meant to be rebased every five years, but that had not happened in Nigeria since 2009 due to a lack of resources.



The latest rebasing benefited from data and technical support provided by the World Bank, the International Monetary Fund and the Central Bank of Nigeria, Adeniran said.



Nevertheless, Razia Khan, chief economist for Africa and Middle East at Standard Chartered, said financial markets had not expected the rebasing would make such a big difference to the headline inflation rate.



She said January&#8217;s lower figure potentially opened the door for an interest rate cut at the central bank&#8217;s monetary policy meeting this week.



The bank raised interest rates by 875 basis points last year, as inflation was driven up by President Bola Tinubu&#8217;s moves to end subsidies and devalue the naira currency. Tinubu&#8217;s administration hopes those reforms will shore up public finances and boost economic growth.



Khan said a 25-basis-point rate cut this week would have little market impact but would at least &#8220;acknowledge local sentiment that policy has been too tight&#8221;.



Food inflation, a key driver of the headline rate, was at 26.08% year on year in January after the rebasing.



(Reporting by Elisha Bala-Gbogbo and Chijioke Ohuocha; Additional reporting by Libby George in London; Editing by Alexander Winning and Angus MacSwan)

PIKWK2FQQVOJXDDJQ5VEJMBXA4

Nigeria’s inflation rate drops after statistics overhauled and updated

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4170" height="2920" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/ZM7ZQQRPDZJBLBYFPTU7SVFCM4.avif" alt="" class="wp-image-587847"/><figcaption class="wp-element-caption">Job seekers stand outside a construction site in Eikenhof, south of Johannesburg, South Africa, June 23, 2020. REUTERS/Siphiwe Sibeko/File Photo&nbsp;</figcaption></figure>



PRETORIA, Feb 18 (Reuters) &#8211; South Africa&#8217;s official unemployment rate fell in the final three months of last year, to 31.9% from 32.1% in the third quarter, data showed on Tuesday.



Unemployment&nbsp;also fell&nbsp;in the previous three-month period.



Four of the 10 industries tracked by Statistics South Africa recorded job gains in the fourth quarter of 2024, with the most jobs added in finance and manufacturing.



The number of unemployed people fell to 7.991 million in October-December last year, compared to 8.011 million in July-September.



An expanded unemployment rate, which includes those discouraged from seeking work, remained unchanged at 41.9%.



(Reporting by Kopano Gumbi; Additional reporting by Bhargav Acharya; Writing by Sfundo Parakozov; Editing by Alexander Winning)

ZM7ZQQRPDZJBLBYFPTU7SVFCM4

South Africa’s unemployment rate falls again in fourth quarter

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="720" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/RGENMVFBKFNCJPXWG4EPKO7ZPA.avif" alt="" class="wp-image-587782"/><figcaption class="wp-element-caption">Scientific officer Anathi Nkayi works in the research lab at the University of Cape Town&#8217;s Institute of Infectious Disease and Molecular Medicine, in Cape Town, South Africa February 17, 2025. REUTERS/Esa Alexander</figcaption></figure>



JOHANNESBURG, Feb 18 (Reuters)&nbsp;&#8211;&nbsp;South African lab technician Nozipho Mlotshwa was waiting for the test results for a potential HIV vaccine, which has eluded scientists for decades, when the order came from USAID to stop work.



The first round of vaccines she and her colleagues made in Johannesburg had produced an immune response in rabbits, which was promising but not conclusive &#8211; so they tweaked the formula and sent off four new versions for pre-clinical tests.



&#8220;This was very exciting. We were getting quite good results,&#8221; Mlotshwa, 32, told Reuters in the lab in the Antiviral Gene Therapy Research Unit at the city&#8217;s University of the Witwatersrand.



Now the animal blood samples containing their results are sitting untouched in a freezer.



A trial of an earlier, separate vaccine candidate, which was about to be tested on humans in South Africa as well as Kenya and Uganda, is also on ice.



Both trials are among the casualties of U.S. President Donald Trump&#8217;s decision to dismantle the United States Agency for International Development (USAID).



They are part of a wider South African-led HIV vaccine development scheme known as BRILLIANT and funded entirely by a $45 million grant from USAID. It is unclear if or when the project could resume. The U.S. State Department did not immediately respond to a request for comment.



&#8220;It feels like you&#8217;re building something and you could really make a huge difference,&#8221; Nigel Garrett, Chief Scientific Officer at the Desmond Tutu Health Foundation, a partner in the project, said.



&#8220;And then it&#8217;s wiped away.&#8221;



The project is one of many research efforts worldwide to be hit by Trump&#8217;s actions since taking office last month. Others include halting efforts to protect food crops from pests and diseases and blocking publication of a paper on the mpox outbreak.



<h2 class="wp-block-heading" id="h-holy-grail">&#8216;HOLY GRAIL&#8217;</h2>



HIV&#8217;s ability to mutate quickly has confounded efforts to create a vaccine ever since it was first identified in 1983. The researchers in Johannesburg are using the mRNA technology that created some COVID-19 vaccines.



Several other mRNA-based HIV vaccine candidates worldwide have reached clinical trials. BRILLIANT is unique in being Africa-led, aiming to develop capacity for producing vaccines in Africa.



For the past year the Johannesburg team had been working with genetic sequences from two South African patients who have HIV but whose bodies produce a rare type of antibody that neutralizes the virus. They are trying to simulate that immune response.



&#8220;We were gaining momentum,&#8221; said Patrick Arbuthnot, director of the research unit, adding: &#8220;an HIV vaccine is the holy grail of the field&#8221;.



Trump in January ordered a 90-day pause in all foreign development assistance pending assessment of its consistency with his &#8220;America First&#8221; foreign policy.



Separately, he has targeted South Africa with an executive order to cut all funding to the country, citing disapproval of its land reform policy and its genocide case against U.S. ally Israel.



The U.S. foreign aid freeze has affected programmes across the globe, stranding shipments of life-saving medical supplies, including HIV drugs, and leaving disaster response teams unable to deploy. Waivers for &#8220;life-saving humanitarian assistance&#8221; have been hampered.



<h2 class="wp-block-heading" id="h-good-for-the-world">&#8216;GOOD FOR THE WORLD&#8217;</h2>



Because South Africa has the world&#8217;s largest population of people living with HIV, at more than 8 million, it is a hub for research on the virus.



&#8220;Most of the landmark and groundbreaking studies have been conducted in this country. But these have been good for the whole world,&#8221; said Ntobeko Ntusi, CEO of the South African Medical Research Council, which is spearheading the HIV vaccine search.



Ntusi said he did not expect funding for projects like BRILLIANT to resume, given the executive order on aid to South Africa. The council gets about a third of its funding from U.S. federal sources, for research that is mostly on HIV and tuberculosis but covers other areas including maternal and infant mortality and antimicrobial resistance, he said.



Garrett said the shot that was ready for testing on humans was a mix of two vaccine substances developed in the United States and the Netherlands which have shown promise but never been tested together.



They are now sitting in storage.



&#8220;We had a huge opportunity, good funding. It&#8217;s difficult for other funders to fill that gap,&#8221; he said.



(Additional reporting by Catherine Schenck and Shafiek Tassiem; Editing by Tim Cocks and Aidan Lewis)

RGENMVFBKFNCJPXWG4EPKO7ZPA

Trump’s aid cuts stop South African HIV vaccine trials in their tracks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/107392987-17114704652024-03-08t094552z_60519508_rc2ao0aauku6_rtrmadp_0_cocoa-ivorycoast-820x547.jpeg" alt="" class="wp-image-587761" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/107392987-17114704652024-03-08t094552z_60519508_rc2ao0aauku6_rtrmadp_0_cocoa-ivorycoast-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/107392987-17114704652024-03-08t094552z_60519508_rc2ao0aauku6_rtrmadp_0_cocoa-ivorycoast-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/107392987-17114704652024-03-08t094552z_60519508_rc2ao0aauku6_rtrmadp_0_cocoa-ivorycoast-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/107392987-17114704652024-03-08t094552z_60519508_rc2ao0aauku6_rtrmadp_0_cocoa-ivorycoast-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/107392987-17114704652024-03-08t094552z_60519508_rc2ao0aauku6_rtrmadp_0_cocoa-ivorycoast-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/107392987-17114704652024-03-08t094552z_60519508_rc2ao0aauku6_rtrmadp_0_cocoa-ivorycoast-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Cocoa pods are pictured at a farm in Sinfra, Ivory Coast April 29, 2023.  Luc Gnago | Reuters</figcaption></figure>



Strong rains across Ivory Coast’s central regions are expected to strengthen cocoa trees and improve growing conditions for the April-to-September mid-crop, farmers said on Monday.



Ivory Coast, the world’s top producer of the main ingredient in chocolate, is in the dry season that runs from mid-November to March when rains are scarce.



Farmers had been worried that the hot weather would delay the start of the mid-crop season and tighten bean supply before the country’s central regions received above-average rains last week.



Farmers said they were now happy because the moisture was expected to help young pods to survive. They added that another rain was needed before the end of the month to improve the yield of cocoa trees.



“Trees will do better. Many cocoa trees had become weak due to lack of water,” said Etienne Brou, who farms near the central region of Yamoussoukro, where 18.2 millimetres (mm) of rain fell last week, 11.3 mm above the five-year average.



Similar comments were made in the central region of Bongouanou, where rainfall was above average, and in the west-central region of Daloa, where rains were below average but farmers said the moisture level was sufficient to help cocoa trees.



Farmers from the western region of Soubre and the southern region of Divo, where rains were below average, and farmers from the southern region of Agboville and the eastern region of Abengourou, where rains were above average, said growing conditions remained good with plenty of cherelles turning into small pods.



Farmers in those regions added that if rains became regular from March, the mid-crop would be as abundant as last season.



“If we have good rains from March onwards, we’ll have enough beans for the mid-crop,” said Kouassi Kouame, who farms near Soubre, where 1.2 mm of rain fell last week, 7.2 mm below the average.



The weekly average temperature across Ivory Coast last week ranged from 27.8 to 33.2 degrees Celsius.

107392987-17114704652024-03-08t094552z_60519508_rc2ao0aauku6_rtrmadp_0_cocoa-ivorycoast

Ivory Coast rains revive cocoa farmers’ hopes for healthy mid-crop

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-1258349926-820x547.jpg" alt="" class="wp-image-587559" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-1258349926-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-1258349926-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-1258349926-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-1258349926-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-1258349926-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-1258349926-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Iain Williamson, chief executive officer of Old Mutual Ltd., speaks during the Future of Finance 2023 in Cape Town, South Africa, on Thursday, June 1, 2023. South Africa is the world&#8217;s 14th-biggest producer of greenhouse-gas emissions and relies on fossil fuels to generate the bulk of its electricity. Photographer: Dwayne Senior/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Feb 17 (Reuters) &#8211; South Africa&#8217;s Old Mutual Ltd said on Monday that Iain Williamson will take early retirement and step down as chief executive officer and executive director of the firm on August 31 after five years at the helm of the insurer.



&#8220;He will leave Old Mutual a stronger, more resilient and more innovative company that is ideally positioned to grow and thrive into the future,&#8221; the company said in a statement, adding that the board has started the process to identify a new CEO.



Williamson has spent 32 years with the Old Mutual Group, the last five as CEO.



(Reporting by Nqobile Dludla; Editing by Tomasz Janowski)

Key Speakers at Future of Finance Cape Town

South Africa’s Old Mutual CEO Williamson to take early retirement

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3500" height="2333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PXLKBZI2LZOEZMX4CFG34SUVRQ.avif" alt="" class="wp-image-587490"/><figcaption class="wp-element-caption">South African Minister of International Relations and Cooperation Ronald Lamola speaks during a meeting with US Secretary of State Antony Blinken at the Lotte Palace Hotel on September 26, 2024 in New York. BRYAN R. SMITH/Pool via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG, Feb 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s foreign minister Ronald Lamola told Reuters on Monday that the United States had not responded to attempts to&nbsp;discuss&nbsp;President Donald Trump&#8217;s&nbsp;executive order cutting off aid.



Trump cut U.S. financial assistance to the country this month, citing disapproval of its land reform policy and of its genocide case against Israel at the International Court of Justice.



&#8220;Despite all our attempts, through our mission in Washington to formally engage and communicate&#8230; we are awaiting feedback and a response. We&#8217;re hopeful that they will find a moment to respond and have the discussion with us,&#8221; Lamola told Reuters in an interview.



&#8220;We don&#8217;t think it&#8217;s ideal that diplomatic matters can only be handled through social media.&#8221;



South Africa will host the G20 meeting of foreign ministers later this week in Johannesburg, which U.S. Secretary of State Marco Rubio is not attending after he expressed disapproval of South Africa&#8217;s G20 theme &#8220;Solidarity, Equality, Sustainability&#8221;.



Lamola said South Africa was setting up bilateral meetings with a number of countries with whom it has good trade relations, including China which he said had pledged its support.



&#8220;(China said) that they are there in solidarity with us, and they stand ready to pledge support in terms of whatever trade relations and challenges that they can,&#8221; the minister said.



Lamola said South Africa would continue to try to contact the United States.



&#8220;We will not get tired, &#8230; the best scenario will be us and them finding each other on a number of issues. But we have to face reality that we have to plan for all scenarios.&#8221;



(Reporting by Nellie Peyton and Tim Cocks; Writing by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning)

PXLKBZI2LZOEZMX4CFG34SUVRQ

South Africa says US has not responded to attempts to discuss Trump aid cut

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4973" height="3477" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/N3DCCO5VZROJFBGQI7LRUQAIQU.avif" alt="" class="wp-image-587468"/><figcaption class="wp-element-caption">South African Minister of Mineral Resources and Energy, Gwede Mantashe speaks at the Investing in African Mining Indaba in Cape Town, South Africa February 3, 2025. REUTERS/Esa Alexander/File Photo</figcaption></figure>



CAPE TOWN, Feb 17 (Reuters) &#8211; South Africa could turn to Russia or Iran to expand its civilian nuclear power capacity, a senior government minister said, a stance analysts say could deepen a rift with the United States and further delay the renewal of a strategic energy pact.



South Africa, which operates Africa&#8217;s only nuclear power plant, Koeberg, plans to add 2,500 megawatts of new capacity to tackle electricity outages that have plagued the economy and to reduce emissions.



&#8220;We can&#8217;t have a contract that says Iran or Russia must not bid, we can&#8217;t have that condition,&#8221; Minister of Mineral and Petroleum Resources Gwede Mantashe, one of the government&#8217;s leading proponents of expanding nuclear capacity, said.



&#8220;If they are the best in terms of the offer on the table, we&#8217;ll take any (country),&#8221; he told Reuters.



The country is under scrutiny from Washington after President Donald Trump issued a far-reaching executive order this month halting aid. Among other criticisms, the order claimed &#8211; without providing evidence &#8211; that South Africa was &#8220;reinvigorating its relations with Iran to develop commercial, military, and nuclear arrangements&#8221;.



Pretoria has no bilateral cooperation with Iran on nuclear power or any nuclear-related technology, the office of South African President Cyril Ramaphosa said.



A U.S. State Department spokesperson did not comment on the possibility of Iran or Russia helping South Africa expand its civilian nuclear capacity.



A South African tender for nuclear projects, initially planned for last year, has been delayed for further consultation following legal challenges led by the then opposition Democratic Alliance party, now part of the coalition government.



<h2 class="wp-block-heading" id="h-almost-a-decade-of-talks">ALMOST A DECADE OF TALKS</h2>



Pretoria and Washington had been seeking to conclude after almost a decade of talks a new civilian nuclear pact, known as a Section 123 Agreement, a prerequisite for exporting U.S.-made nuclear fuel or equipment.



&#8220;The allegations made in the executive order can significantly complicate getting the agreement renewed,&#8221; said Isabel Bosman, a nuclear energy researcher at the South African Institute of International Affairs.



The State Department spokesperson did not comment on whether Trump&#8217;s executive order would affect talks between the two countries.



The previous 123 agreement, implemented in 1997, lapsed in December 2022.



Negotiations for a new agreement have already been finalised at a technical level but nothing is signed yet as legal processes on both sides were incomplete, Zizamele Mbambo, a senior official in South Africa&#8217;s energy ministry said.



&#8220;As far as we know both sides remain firmly committed to conclude this new agreement,&#8221; he added.



Failure to secure a new deal could block South African power utility Eskom from sourcing reactor fuel from Westinghouse for Unit 1 at Koeberg, industry analysts say. Unit 2 is supplied by France&#8217;s Framatome.



It may also hinder U.S. companies, such as the Bill Gates-backed TerraPower and ASP Isotopes ASPI.O, from investing in South Africa during a global atomic renaissance, the analysts added.



(Reporting by Wendell Roelf; additional reporting by Timothy Gardner in Washington; editing by Joe Bavier and Emelia Sithole-Matarise)

N3DCCO5VZROJFBGQI7LRUQAIQU

South Africa open to nuclear project bids from Russia or Iran, minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/MTPYEYSKNVOEZBDRFXJLTR5D3Q.avif" alt="" class="wp-image-587420"/><figcaption class="wp-element-caption">A general view of the skyline of Addis Ababa, Ethiopia November 3, 2021. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



NAIROBI, Feb 17 (Reuters)&nbsp;&#8211;&nbsp;Investors holding Ethiopia&#8217;s defaulted bond said on Monday there are &#8220;significant flaws&#8221; in the latest International Monetary Fund report that suggests the country is facing a solvency issue, a scenario that would require them to grant debt relief.



The salvo is the latest battle between the creditor committee, the IMF and Ethiopia over whether the country is facing a liquidity issue, meaning it might only need more time to pay, or a solvency issue, which could require debt writedowns known as haircuts.



&#8220;The Committee disagrees with the conclusions reached by the IMF in the staff report,&#8221; it said in a statement, adding that the IMF analysis &#8220;incorporates export projections and reserve adequacy targets that do not align with the Committee&#8217;s assessment of Ethiopia&#8217;s economic fundamentals&#8221;.



It said it had issued a paper detailing &#8220;significant flaws in the recently published IMF staff report&#8230; which it believes are artificially creating a solvency issue for Ethiopia&#8221;.



Neither the IMF nor the Ethiopian government immediately responded to requests for comment.



Ethiopia&#8217;s government has said bondholder losses are unavoidable, and last year proposed an 18% haircut.



The committee letter said the IMF&#8217;s latest staff report &#8220;fails to acknowledge significant improvements in Ethiopia&#8217;s macroeconomic situation,&#8221; and that it had significantly undervalued increases in key exports, including gold and coffee.



The committee, which represents investors who account for more than 40% of the holdings of Ethiopia&#8217;s $1 billion bond, said it reserved the right to take action, including potential proceedings in English courts, to enforce Ethiopia&#8217;s obligations to repay the outstanding debt.



(Reporting by Duncan Miriri; Editing by Libby George and Helen Popper)

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G20 foreign ministers gather amid tensions over trade, Ukraine

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US Treasury’s Bessent to skip G20 meeting in South Africa

South African budget postponed over lack of agreement

South Africa’s DA says budget postponed due to its opposition to VAT increase

S. Africa’s Ramaphosa Calls Urgent Cabinet Meeting over budget

Rwanda’s international bond plunges as concerns over M23 rebels mount

UK inflation leaps to higher-than-expected 3% in January

China deal-making ramps up after years of decline as domestic companies prepare for Trump tariffs

Nigeria’s inflation rate drops after statistics overhauled and updated

South Africa’s unemployment rate falls again in fourth quarter

Trump’s aid cuts stop South African HIV vaccine trials in their tracks

Ivory Coast rains revive cocoa farmers’ hopes for healthy mid-crop

South Africa’s Old Mutual CEO Williamson to take early retirement

South Africa says US has not responded to attempts to discuss Trump aid cut

South Africa open to nuclear project bids from Russia or Iran, minister says

Ethiopia bondholders say IMF report contains ‘significant flaws’

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featured

G20 foreign ministers gather amid tensions over trade, Ukraine

South African rand partially recoups losses, with focus on G20 meeting

US Treasury’s Bessent to skip G20 meeting in South Africa

South African budget postponed over lack of agreement

South Africa’s DA says budget postponed due to its opposition to VAT increase

S. Africa’s Ramaphosa Calls Urgent Cabinet Meeting over budget

Rwanda’s international bond plunges as concerns over M23 rebels mount

UK inflation leaps to higher-than-expected 3% in January

China deal-making ramps up after years of decline as domestic companies prepare for Trump tariffs

Nigeria’s inflation rate drops after statistics overhauled and updated

South Africa’s unemployment rate falls again in fourth quarter

Trump’s aid cuts stop South African HIV vaccine trials in their tracks

Ivory Coast rains revive cocoa farmers’ hopes for healthy mid-crop

South Africa’s Old Mutual CEO Williamson to take early retirement

South Africa says US has not responded to attempts to discuss Trump aid cut

South Africa open to nuclear project bids from Russia or Iran, minister says

Ethiopia bondholders say IMF report contains ‘significant flaws’

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