<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ESY6J5J7ABKT3L6B7A2M34W7YY-820x547.jpg" alt="" class="wp-image-507757" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ESY6J5J7ABKT3L6B7A2M34W7YY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ESY6J5J7ABKT3L6B7A2M34W7YY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ESY6J5J7ABKT3L6B7A2M34W7YY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ESY6J5J7ABKT3L6B7A2M34W7YY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ESY6J5J7ABKT3L6B7A2M34W7YY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ESY6J5J7ABKT3L6B7A2M34W7YY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s president Cyril Ramaphosa delivers the State of the Nation Address (SONA) to a joint sitting of the National Assembly and the National Council of Provinces in Cape Town, South Africa, February 10, 2022. Nic Bothma/Pool via REUTERS</figcaption></figure>



PRETORIA, July 15 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s President Cyril Ramaphosa warned other developing nations on Monday that future carbon taxes proposed by rich countries would damage their economies unless they act swiftly to ditch fossil fuels in favour of green energy.



Addressing a National Treasury and World Bank climate change conference in the capital Pretoria, Ramaphosa said the carbon intensity of South Africa&#8217;s economy, which relies heavily on burning coal to produce electricity, was unsustainable.



&#8220;For decades our reliance on coal &#8230; allowed us to produce electricity cheaply. But the world has changed and this dependency has come to pose significant risks,&#8221; he said, chiefly carbon taxes proposed by trading blocs like the European Union.



&#8220;Instruments like the European Union&#8217;s Carbon Border Adjustment Mechanism &#8230; (have) the potential to cause great damage to developing economies,&#8221; he said.



Data from think tank Ember shows South Africa was the most carbon-intensive major economy in 2022, producing 709 grams of carbon dioxide per kilowatt hour of energy generated.



That has put it in the world&#8217;s top 15 greenhouse gas emitters &#8211; above Turkey, Italy, France or Britain, according to watchdog Climate Transparency.



Ramaphosa highlighted the impact of storms last week around the city of Cape Town, which shut down the port and caused &#8220;caused devastation to homes, communities, businesses and infrastructure&#8221;, as an example of negative climate impacts.



&#8220;The countries of the Global South &#8230; feel the effects of climate change most, despite being least responsible historically for global emissions,&#8221; he said.



South Africa&#8217;s new energy minister vowed last week to accelerate the transition to renewable energy, in a shift in rhetoric from his predecessor, a defender of the coal business. Yet few details have emerged of how this will occur.



Western donors are offering billions of dollars in loans to fund the transition, but South African officials say they barely scratch the surface of the finance needed.



The country has some of the world&#8217;s best available sun and wind energy, yet years-long bureaucratic delays to granting licenses and policy uncertainty has turned off investors, and last year the government delayed decommissioning eight coal-fired power stations well into 2030, citing energy security.



(Reporting by Tim Cocks; additional reporting by Kopano Gumbi; Editing by Alison Williams)

South Africa’s Ramaphosa urges green energy to avoid carbon border tax

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-820x576.jpg" alt="" class="wp-image-507752" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The head of Nigeria&#8217;s state oil company NNPC, Mele Kyari, speaks during an interview with Reuters in Abuja, Nigeria August 7, 2019. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LAGOS, July 15 (Reuters)&nbsp;&#8211;&nbsp;Nigerian state-owned oil firm NNPC shareholding in Dangote refinery has been whittled down to 7.2% from 20% after failing to pay the balance of funding owed, Aliko Dangote, the refinery&#8217;s owner told the BusinessDay newspaper.



NNPC, which is in talks over another oil-backed loan to boost its finances, agreed three years ago to buy shares for $2.7 billion in the 650,000 barrels per day refinery.



But Dangote told reporters during a briefing at the plant on the outskirts of Lagos on Sunday that NNPC failed to meet its part of the deal, the BusinessDay newspaper reported on Monday.



&#8220;NNPC no longer owns a 20% stake in the Dangote refinery. They were (meant) to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,&#8221; Dangote was quoted saying.



NNPC was not immediately available to comment.



The Dangote refinery has been struggling to secure enough crude supplies locally because Nigeria&#8217;s production is constrained by lack of investment, pipeline vandalism and crude theft.



That has forced the refinery to import U.S. crude to reach its full capacity next year.



Dangote said he expected the refinery and a fertiliser plant, which is in the same complex, to be listed on the Nigerian stock exchange in the first quarter of 2025.



A senior company executive said in May the refinery aimed for a dual listing on the London and Lagos bourses.



(Reporting by MacDonald Dzirutwe, Editing by Louise Heavens)

FILE PHOTO: The head of NNPC, Mele Kyari, speaks during an interview with Reuters in Abuja

Nigeria’s NNPC stake in Dangote refinery reduced over non-payment, CEO tells paper

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1336" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/FEWOQ7AP7VKRLHUUH22MJ7YJ3A-scaled.jpg" alt="" class="wp-image-507731" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/FEWOQ7AP7VKRLHUUH22MJ7YJ3A-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/FEWOQ7AP7VKRLHUUH22MJ7YJ3A-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/FEWOQ7AP7VKRLHUUH22MJ7YJ3A-820x535.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/FEWOQ7AP7VKRLHUUH22MJ7YJ3A-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/FEWOQ7AP7VKRLHUUH22MJ7YJ3A-768x501.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/FEWOQ7AP7VKRLHUUH22MJ7YJ3A-1536x1002.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Kenya&#8217;s President William Ruto addresses delegates after signing the Independent Electoral and Boundaries Commission Amendment Bill 2024, backed by the National Dialogue Committee (NADCO), at the Kenyatta International Conference Centre in Nairobi, Kenya July 9, 2024. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, July 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government plans to cut 2024-25 spending by 1.9% and widen the fiscal deficit to 3.6% of GDP in a revised budget, the treasury said, weeks after it was forced to roll back tax hikes due to mass protests.



President William Ruto last week fired almost his entire cabinet and pledged to set up a broad-based government in his latest concession to demands from protesters.



Public demonstrations began last month against the now-binned tax hikes, but went on to demand Ruto&#8217;s resignation and deep-rooted political changes to tackle corruption and poor governance.



Ruto had earlier this month proposed spending cuts and additional borrowing in roughly equal measure to fill the nearly $2.7 billion budget hole caused by the withdrawal of the tax hikes.



When lawmakers return to parliament next week they will need to debate and pass the supplementary budget, which was signed by Chris Kiptoo, principal treasury secretary on July 11, and shared on parliament&#8217;s website.



The supplementary budget projects total spending at 3.87 trillion Kenyan shillings ($30 billion), down from 3.99 trillion shillings ($31 billion), Kiptoo said.



Recurrent expenditure is estimated to fall 2.1%, while development expenditure will drop 16.4%, he said.



Despite the withdrawal of the tax-hike legislation, the energy regulator on Monday raised the road maintenance levy to 25 shillings per litre of fuel, up from 18 shillings.



Facing the worst crisis of his two-year presidency, Ruto has been caught between the demands of lenders such as the International Monetary Fund (IMF) to cut deficits, and a population struggling with the high cost of living.



The IMF said on Thursday it was assessing recent developments in Kenya and making adjustments to evolving circumstances.



($1 = 128.7500 Kenyan shillings)



(Reporting by Hereward Holland; Editing by Arun Koyyur)

Kenya’s President William Ruto signs the Independent Electoral and Boundaries Commission Amendment Bill 2024, in Nairobi

Kenya to cut spending in revised budget after tax-hike rollback

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2TU5RF27YVKWNPFXJZY3IBZPGI-820x547.jpg" alt="" class="wp-image-507696" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2TU5RF27YVKWNPFXJZY3IBZPGI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2TU5RF27YVKWNPFXJZY3IBZPGI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2TU5RF27YVKWNPFXJZY3IBZPGI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2TU5RF27YVKWNPFXJZY3IBZPGI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2TU5RF27YVKWNPFXJZY3IBZPGI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2TU5RF27YVKWNPFXJZY3IBZPGI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rwanda&#8217;s incumbent President and presidential candidate for the Rwandan Patriotic Front (RPF) Paul Kagame addresses his supporters during his final campaign rally in Gahanga, Kicukiro district in Kigali, Rwanda, July 13, 2024. REUTERS/Jean Bizimana</figcaption></figure>



KIGALI, July 15 (Reuters) &#8211; Voters in Rwanda lined up at polling stations on Monday to elect their next president, with 66-year-old incumbent Paul Kagame, who has ruled the central African country for nearly a quarter of a century, expected to cruise to victory.



Kagame has won more than 93% of the vote at each of the three previous elections. Eight candidates had applied to run against him, but only two were retained in the final list validated by the electoral commission.



The others, including Kagame&#8217;s most vocal critics, were barred for various reasons that included prior criminal convictions.



At the Rwandexco polling centre in the capital Kigali people started queueing 90 minutes before polls opened.



Voter Barimukije Pheneas said he had chosen to re-elect Kagame, who is praised for rebuilding the country in the aftermath of the 1994 genocide by prioritising development and putting in place effective social services.



&#8220;We voted smoothly without any crowding, and we are happy,&#8221; Pheneas said. &#8220;I voted for Paul Kagame because he has achieved a lot for us; he united us.&#8221;



Kagame is running against two other candidates, Frank Habineza and Philippe Mpayimana, who also challenged him at the last poll in 2017.



He is looking to win the endorsement of the more than 9 million eligible voters, who are also electing members of parliament. Provisional results are expected by July 20.



Motorcycle taxi driver Karangwa Vedaste said the voting process was calm and peaceful.



&#8220;I voted for a leader I trust. The one I voted for is a secret in my heart. We will share it when he wins,&#8221; Vedaste said.



Kagame won nearly 99% of the vote in the 2017 poll, which followed a constitutional change removing term limits that would have prevented him from standing again.



He has won acclaim for transforming Rwanda into a thriving economy but has also faced criticism from rights activists and Western nations for muzzling the media, stifling opposition and backing rebel groups in neighbouring Democratic Republic of Congo.



Rwanda&#8217;s government has denied all the accusations against it, and while campaigning, Kagame promised continued development and stability.



Its human rights record was thrown into the spotlight when Rwanda struck a migration deal in 2022 with the UK to receive thousands of asylum seekers. Britain&#8217;s new government has said it would scrap the deal.



(Writing by Elias Biryabarema; Editing by Ros Russell and Michael Perry)

Rwandan President Paul Kagame campaigns in Kigali

Rwandans vote in election expected to extend Kagame’s long rule

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NQFF6V3255MN7P5MFDWEA3F5UE-820x547.jpg" alt="" class="wp-image-506788" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NQFF6V3255MN7P5MFDWEA3F5UE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NQFF6V3255MN7P5MFDWEA3F5UE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NQFF6V3255MN7P5MFDWEA3F5UE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NQFF6V3255MN7P5MFDWEA3F5UE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NQFF6V3255MN7P5MFDWEA3F5UE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NQFF6V3255MN7P5MFDWEA3F5UE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Residents walk between flooded shacks following severe weather from a cold front in Masiphumelele, Cape Town, South Africa July 11, 2024. REUTERS/Nic Bothma/File Photo</figcaption></figure>



CAPE TOWN, July 12 (Reuters)&nbsp;&#8211;&nbsp;More stormy weather loomed over Cape Town after days of high winds and drenching rain that have displaced hundreds of people, flooded homes and uprooted trees, authorities said on Friday.



Close to 33,000 dwellings in both informal settlements and suburbs have been affected, the city&#8217;s disaster management centre said.



Essentials such as meals, blankets, mattresses, roof sheeting and hygiene packs were being distributed to affected communities amid biting winds and plunging temperatures.



&#8220;We have a huge humanitarian situation to deal with and all authorities are working together to address this,&#8221; Anton Bredell, Western Cape Minister for Local Government, said in a statement.



All the city&#8217;s major catchment dams were full or nearing capacity, the Western Cape government said, warning the Breede River in Swellendam town was flowing at more than 1,000 cubic metres a second and was in danger of breaching its banks as more rain is expected.



&#8220;In Laingsburg, the Floriskraal Dam is at 118% and communities in the immediate downstream vicinity have been alerted of the risk of flooding,&#8221; Bredell said, referring to affected towns beyond the city&#8217;s boundaries.



The South Africa Weather Service has warned that an approaching cold front will cause strong to near gale-force winds of around 40 to 60 kph (25-37 mph) between Table Bay and Plettenberg Bay on Sunday.



Wave heights of up to five metres (16 feet) were expected on Saturday morning. Ships at Cape Town port, one of the busiest in South Africa, were advised to taking necessary precautions such as tending to moorings regularly to prevent snapping.



Despite the damage, some residents were enjoying the bad weather. Online videos showed youngsters frolicking about in flooded roads and even boogie boarding down saturated hills.



(Reporting by Wendell Roelf)

Flooding in Cape Town

Cape Town braces for more wind and rain; thousands affected by stormy weather

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="567" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/Z6ZWDH7YP5PTDIR6R7OWDNZ6MI-820x567.jpg" alt="" class="wp-image-506707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/Z6ZWDH7YP5PTDIR6R7OWDNZ6MI-820x567.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/Z6ZWDH7YP5PTDIR6R7OWDNZ6MI-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/Z6ZWDH7YP5PTDIR6R7OWDNZ6MI-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/Z6ZWDH7YP5PTDIR6R7OWDNZ6MI-768x531.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/Z6ZWDH7YP5PTDIR6R7OWDNZ6MI-1536x1063.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/Z6ZWDH7YP5PTDIR6R7OWDNZ6MI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s President William Ruto addresses the nation after he dissolved his entire cabinet apart from the foreign minister in the wake of nationwide protests over new taxes, at State House in Nairobi, Kenya July 11, 2024. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, July 12 (Reuters)&nbsp;&#8211;&nbsp;Luxury cars, private helicopters, mounds of cash. The lavish lifestyles of Kenya&#8217;s lawmakers, splashed across TikTok and X, added fuel to anger simmering last month among a young, plugged-in population over proposed tax hikes.



Weeks-long protests about the tax measures have increasingly drawn attention to the large salaries, perks and ostentation of members of parliament (MPs) in a country where three quarters of the population is young and well-paid work is scarce.



Fury boiled over on June 25, when protesters stormed parliament and set it ablaze, pelting fleeing politicians&#8217; vehicles with stones. Since then, private residences and businesses of several MPs, mainly those associated with the ruling coalition, have been attacked.



Now, TikTok and X are being wielded as protest tools. Politicians&#8217; videos are edited and reposted with negative comments. The platforms are awash with allegations of mismanaged funds and discussions on next steps for the as-yet largely leaderless youth movement.



Activists are sharing advice how to use recall powers to topple representatives and have even built an AI-powered chatbot that spits out media reports of corruption allegations when a politician&#8217;s name is entered.



In April and May during the build-up to the protests, ruling party MP Zaheer Jhanda posted videos of himself on TikTok admiring his gleaming Range Rover, a Mercedes G Wagon and a Lexus, triggering angry online commentary.



Protesters have since tried to storm his home, in the western town of Kisii.



Jhanda did not respond to requests for comment.



&#8220;Why would you show us your lavish lifestyle and still not do your job as a leader?&#8221; said artist and activist Rachel Stephanie Akinyi, referring to politicians&#8217; social media posts.



&#8220;What are you trying to show us? &#8216;We have the power to use your money the way we want to, to take care of our own needs.&#8217; But what about us?&#8221;, said Akinyi, who goes by the stage name &#8216;Spontaneous The Poet&#8217;.



In a sign of the pressure the protests are keeping on President William Ruto, on Thursday he said that after listening to Kenyans and reflecting, he had dismissed his entire cabinet apart from the foreign minister, with the aim of setting up a new &#8220;broad-based government.&#8221;



Last week, Ruto, 57, said some officials displayed &#8220;obnoxious opulence.&#8221; He announced austerity measures including cuts to his own offices budget and ordered a review of pay rises MPs and other officials had been due to receive in July.



Didmus Barasa, the ruling party MP for Kimilili in Western Kenya, told Reuters the protesters had valid concerns about what he called the &#8220;insensitivities&#8221; of the government&#8217;s handling of economic development. He did not give further details.



Barasa denied MPs were overpaid.



His personal wealth, including a private helicopter, was a reward for legitimate business activities, he said. Barasa, who is a former soldier and not widely known as a businessman, said he owned a hospital in Turkey.



&#8220;Yes, I have a helicopter. I have a helicopter that I purchased,&#8221; he said. &#8220;I am an inspiration of very many young people in this country.&#8221;



Barasa, after being questioned by a senator about the helicopter, previously said in online comments that he could afford it because he chose to maintain only one wife and believed in God.



Caroline Gaita, Executive Director of Mzalendo, an organisation that monitors parliament, said young Kenyans previously disinterested in politics are re-engaging, aware of the impact legislation has on their daily lives and demanding lawmakers listen to them.



Calling the protests an &#8220;awakening of Gen Z,&#8221; Tom Mboya, an expert on politics and corruption in Kenya, said there was a perception that politicians were rarely, if ever, held to account since Ruto took office in 2022.



&#8220;They have become bolder in their flashy and opulent lifestyles at a time when Kenyans are being taxed to their limit,&#8221; Mboya said of officials and MPs, some of whom have been filmed handing out wads of cash to people in their constituencies.



In 2023, Kenya ranked 126 out of 180 countries in the world by Transparency International&#8217;s Corruption Perception Index,&nbsp;down three places from 2022.



Ruto&#8217;s office did not respond to requests for comment on this story.



<h2 class="wp-block-heading" id="h-lawmakers-face-recall">LAWMAKERS FACE RECALL</h2>



On June 26, Ruto scrapped the tax hikes that triggered the unrest. At least 39 people have been killed in violence related to the protests.



But the anger did not fade.



Having faced little opposition since his 2022 election, Ruto and MPs must now contend with smaller but ongoing country-wide protests that transcend political and ethnic divides that have historically shaped social movements in Kenya, a regional power and Western ally.



There is a growing push for lawmakers to be removed now rather than wait until elections in 2027, with guidelines published online on how to do it, in what would be the first use of recall powers introduced in 2010.



The process involves collecting signatures of at least 30 percent of registered voters in the constituency and then presenting them to the election commission.



Voters in Kabete constituency near Nairobi have collected 5,000 of the 10,000 signatures they need to recall their MP, Ndungi Githuku, a human rights activist involved in the process said.



&#8220;I&#8217;m hoping that Kabete will be able to inspire the rest of the country to take action&#8221; Githuku said. &#8220;We are taking this country back.&#8221;



Kenya&#8217;s opposition, wary of being caught up in the wave of discontent, has named six of its own members to be recalled, subject to the same process.



Even if the MPs who are under pressure escape being ousted, they have lost legitimacy in the eyes of Kenyans, said Senator Richard Onyonka, who was an MP for 15 years.



“I think they are heavily damaged,” he said.



<h2 class="wp-block-heading" id="h-dishing-out-millions">DISHING OUT MILLIONS</h2>



Kenyan MPs earn around 33 times the national average wage, and are no strangers to accusations of corruption and waste.



Basic pay for MPs is currently 725,502 Kenya shillings ($5,650) per month in a country where annual per capita income is about $2,000, making them among the best paid in the world compared to average incomes.



They can claim extra money for sitting on committees, cheap loans for houses and extra vehicles, and thousands of dollars per month for travel to constituencies.



Every year, each of Kenya&#8217;s 290 MPs is given over $1 million under a scheme called Constituency Development Funds (CDF) set up to promote local development. The programme has long been plagued by accusations from Kenya&#8217;s Auditor-General (AG) and the national media that the money is inefficiently spent or embezzled.



Kenya&#8217;s Supreme Court ruled in 2022 that the scheme was unlawful but it has not been scrapped, providing MPs with cash to hand out on building classrooms, subsidising education or improving security.



A Reuters analysis of 100 audits of constituency spending by the Auditor-General found 42 constituencies where a total of about 1.7 billion shillings ($13 million) of spending under the CDF scheme on bursaries for school children could not be fully accounted for in the 2021/22 financial year.



The remaining 58 audits reviewed did not mention the bursaries.



The Speaker of the National Assembly did not reply to requests for comment.



MPs have long justified high pay saying that they are expected to distribute cash in their constituencies.



A 2021 report by UK and Dutch think-tanks the Westminster Foundation for Democracy Limited (WFD) and the Netherlands Institute for Multiparty Democracy found aspiring members of Kenya&#8217;s parliament had to spend over $180,000, mostly out their own pockets, to campaign in 2017, a figure likely to have risen in 2022, according to anti-corruption expert Mboya, one of the authors.



At weekends, it is not unusual for lawmakers to return home in fleets of SUVs or by helicopter.



&#8220;People are angry and hate us as leadership because every weekend, helicopters crisscross the sky, all of them going to functions where these millions are being dished (out),&#8221; Boni Khalwale told fellow senators on July 3.



(Additional reporting by Edwin Okoth, Edwin Waita and Aaron Ross in Nairobi; Editing by Frank Jack Daniel)

Kenya’s President Ruto sacks cabinet after nationwide protests over new taxes

Social media fuels Kenyan youth backlash over lawmakers’ opulence

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-scaled.jpg" alt="" class="wp-image-495905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, (Reuters) &#8211; Nigeria&#8217;s labour unions told President Bola Tinubu on Thursday that soaring prices and a weakening currency were biting hard as they pushed for a new minimum wage they say will help cushion workers from the worst cost of living crisis in generations.



<h2 class="wp-block-heading" id="h-why-it-s-important">WHY IT&#8217;S IMPORTANT</h2>



Labour unions suspended a strike in early June to give negotiations on the new minimum wage a chance but a failure to reach an agreement could prompt unions to call for new action.



Leaders in Nigeria are mindful of deadly riots in Kenya that forced the government to backtrack from raising taxes and are trying to balance between appeasing restive workers and borrowing more to meet wage demands.



Any major disruptions to economic activity could tip over an economy struggling with tepid growth, low production of oil, its main export, and high cost of living.



<h2 class="wp-block-heading" id="h-by-the-numbers">BY THE NUMBERS</h2>



The government is offering a monthly wage of 62,000 naira ($40) but unions want 250,000 naira ($160) and have asked authorities to roll back increases in gasoline and electricity prices. The last minimum wage was agreed in 2019.



<h2 class="wp-block-heading" id="h-what-s-next">WHAT&#8217;S NEXT?</h2>



The labour leaders said they had agreed some issues with Tinubu, which they did not disclose, and added that they would reconvene another meeting in a week.



($1 = 1,560.00 naira)



(Editing by MacDonald Dzirutwe)

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria unions meet president in push for new minimum wage

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="572" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-820x572.jpg" alt="" class="wp-image-506368" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-1536x1071.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE.jpg 1822w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s President William Ruto speaks at a press conference where he announced spending cuts in government after protests against Kenya&#8217;s proposed finance bill 2024/2025, in Nairobi, Kenya, July 5, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, July 11 (Reuters)&nbsp;&#8211;&nbsp;Kenyan President William Ruto on Thursday fired his entire cabinet apart from the foreign minister, bowing to pressure from&nbsp;nationwide protests that have created&nbsp;the biggest crisis of his two-year presidency.



The youth-led protests against planned tax hikes started off peacefully but turned violent, killing at least 39 people in clashes with the police last month. Some demonstrators briefly stormed parliament, before Ruto abandoned the new taxes.



&#8220;I will immediately engage in extensive consultations across different sectors and political formations and other Kenyans, both in public and private, with the aim of setting up a broad-based government,&#8221; Ruto said in a televised address to the nation, adding that he would announce additional measures later.



He also dismissed the attorney general but said the office of the deputy president was not affected.



The sweeping cabinet changes were what Kenyans have been asking for, veteran anti-corruption activist John Githongo told Reuters.



&#8220;Let us see what happens now if the new ministers deal with big issues around corruption and just the arrogance and excess of his administration and the fact that a lot of Kenyans died during the demonstrations,&#8221; he said. &#8220;Hopefully this should temporarily calm things.&#8221;



Ruto has been caught between the demands of lenders such as the International Monetary Fund (IMF) to cut deficits and a hard-pressed population reeling from rising cost of living.



Last week he proposed spending cuts and additional borrowing in roughly equal measure to fill the nearly $2.7 billion budget hole caused by the withdrawal of the tax hikes.



Analysts have said the tax rollback means Kenya is likely to miss IMF targets although the government does not have debts that are due.



The budget deficit is now projected at 4.6% of gross domestic product in the fiscal year that started on July 1.



Ojango Omondi, a community activist from the Social Justice Centres Working Group in Nairobi, said dismissing so many cabinet ministers was a &#8220;move towards justice&#8221;, but activists would want to see who Ruto appoints in their place.



&#8220;It&#8217;s one thing to dismiss, the second is to ensure that the people that will be chosen in the cabinet are accountable to the constitution and the rule of law,&#8221; Omondi said.



(Additional reporting by Aaron Ross in Nairobi and Bhargav Acharya in Johannesburg; Writing by Alexander Winning; Editing by Bate Felix and Arun Koyyur)

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

Kenyan president sacks cabinet, bowing to pressure from protests

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AU3TIBJDBBNTFCB7MP32IQ4O5A-820x547.jpg" alt="" class="wp-image-506442" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AU3TIBJDBBNTFCB7MP32IQ4O5A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AU3TIBJDBBNTFCB7MP32IQ4O5A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AU3TIBJDBBNTFCB7MP32IQ4O5A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AU3TIBJDBBNTFCB7MP32IQ4O5A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AU3TIBJDBBNTFCB7MP32IQ4O5A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AU3TIBJDBBNTFCB7MP32IQ4O5A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Nigerian naira notes in a market place in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



LUSAKA, July 11 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s kwacha and Kenya&#8217;s shilling could fall against the dollar in the next week to Thursday, while Uganda&#8217;s shilling,&nbsp;Nigeria&#8217;s naira&nbsp;and Ghana&#8217;s cedi are seen broadly stable, traders said.



<h2 class="wp-block-heading" id="h-kenya">KENYA</h2>



Kenya&#8217;s shilling is expected to slip on increased demand for dollars from oil-retailing companies at a time that some market participants are holding off from big bets because of uncertainty over the budget and an International Monetary Fund (IMF) disbursement.



Commercial banks quoted the shilling at 128.75/129.75 per dollar, compared with last Thursday&#8217;s closing rate of 127.75/128.75.



In mid-June Kenya reached a staff-level agreement with IMF, paving the way for a disbursement of about $976 million once board approval is granted.



But since the staff agreement was reached Kenyan President William Ruto withdrew planned tax hikes in response to nationwide protests, a move analysts say could result in the country missing key IMF programme targets.



&#8220;There&#8217;s an element of, you know, wait and see, we still need to hear from the IMF okay and even from Treasury in terms of what is the final budget going to look like,&#8221; one trader said.



<h2 class="wp-block-heading" id="h-nigeria">NIGERIA</h2>



Nigeria&#8217;s naira is seen little changed on the official market and in street trading.



LSEG data showed the naira at 1,534 to the dollar on the official market on Thursday, compared with around 1,507 a week ago. The unit was quoted at 1,558 on the parallel market on Thursday.



Central bank governor Olayemi Cardoso said at a conference on Thursday that the bank&#8217;s clearer communication had helped reduce market volatility.



&#8220;A lot of the wide swings that we saw are gradually beginning to smoothen out as a result of a better understanding of the market, greater transparency that is taking place and the comfort that those using the market see in it,&#8221; he said.



<h2 class="wp-block-heading" id="h-ghana">GHANA</h2>



Ghana&#8217;s cedi is expected to hold its ground due to improved liquidity on the interbank market.



LSEG data showed the cedi trading at 15.35 to the dollar on Thursday, compared with 15.30 at last Thursday&#8217;s close.



&#8220;The cedi has seen continued stability this week amid increased volume of dollar supply even with reduced intervention from the central bank. We expect the stability to remain in the coming week,&#8221; said Chris Nettey, head of trading at Stanbic Bank Ghana.



&#8220;(The dollar/cedi pair) has been largely directionless in recent sessions, with very little trading activity between market makers. Improved flows from corporates have also contributed to tighter bid-offer spreads. Up ahead, we expect much of the same,&#8221; said Sedem Dornoo, senior trader at Absa Bank Ghana.



<h2 class="wp-block-heading" id="h-zambia">ZAMBIA</h2>



Zambia&#8217;s kwacha is expected to remain under pressure due to strong demand for hard currency.



On Thursday the currency of Africa&#8217;s second-largest copper producer was trading at 25.35 per dollar from 24.30 a week ago.



&#8220;In the foreseeable future, losses are anticipated for the kwacha,&#8221; Access Bank said in a note.



<h2 class="wp-block-heading" id="h-uganda">UGANDA</h2>



Uganda&#8217;s shilling is seen trading around its current levels as hard-currency demand is curtailed by mid-month tax payments due in the local currency.



Commercial banks quoted the shilling at 3,695/3,705 to the dollar, compared to last Thursday&#8217;s close of 3,692/3,702.



&#8220;Demand will be tepid as we have mid-month taxes around the corner,&#8221; one trader said, adding the shilling would likely trade in a range of 3,680-3,710 to the U.S. currency in the coming week.



(Reporting by Chris Mfula, George Obulutsa, Elias Biryabarema, Christian Akorlie and Elisha Bala-GbogboEditing by Alexander Winning)

FILE PHOTO: Man counts Nigerian naira notes in a market place in Yola

Zambian and Kenyan currencies seen under pressure

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LLWMXSWBVJMF3BMTIDLHLYEXLI-820x543.jpg" alt="" class="wp-image-506323" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LLWMXSWBVJMF3BMTIDLHLYEXLI-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LLWMXSWBVJMF3BMTIDLHLYEXLI-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LLWMXSWBVJMF3BMTIDLHLYEXLI-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LLWMXSWBVJMF3BMTIDLHLYEXLI-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LLWMXSWBVJMF3BMTIDLHLYEXLI-1536x1017.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LLWMXSWBVJMF3BMTIDLHLYEXLI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Rwanda&#8217;s President Paul Kagame of the ruling Rwanda Patriotic Front (RPF) party sits to submit his candidacy for an a July 15 election at Rwanda&#8217;s National Election Commission in Kiyovu, Kigali, Rwanda May 17, 2024. REUTERS/Jean Bizimana/File Photo</figcaption></figure>



KIGALI, July 11 (Reuters)&nbsp;&#8211;&nbsp;Rwandan President Paul Kagame is expected to cruise to a fourth term in office in an election on Monday against two opposition candidates who were cleared to run against him but have only modest expectations.



Kagame, 66, helped lead the rebel movement that ended the 1994 genocide in Rwanda and has served as president since 2000. He faces only two rivals because six other potential candidates were not cleared to run by the state-run electoral commission.



Kagame won nearly 99% of the vote in the last election in 2017, which followed a constitutional change removing term limits that would have barred him from standing again.



His reelection could signal further stability but also continued global scrutiny, given accusations of rights abuses and continued tensions with neighbouring Democratic Republic of Congo.



Kagame has won praise during his tenure for rebuilding the country of 14 million after the genocide, in which more than a million people were killed. Rwanda has emerged as a regional financial hub.



But his government has been accused by Western nations and rights activists of muzzling the media, assassinating opponents, and backing rebel groups in neighbouring Congo.



International scrutiny was intensified by the migration deal Rwanda struck in 2022 to receive thousands of asylum seekers from Britain. Newly elected British Prime Minister Keir Starmer confirmed on Saturday he would scrap the agreement.



Rwanda&#8217;s government has denied all the accusations against it, and while campaigning, Kagame promised continued development and stability.



&#8220;With you, there is nothing our country will not achieve, because today you have leaders who are not foolish and you are not foolish,&#8221; he told young supporters at a rally last week in Eastern Province.



<h2 class="wp-block-heading" id="h-two-challengers">TWO CHALLENGERS</h2>



Eight candidates had applied to run against Kagame, but only two were retained in the final list validated by the electoral commission. The others, including Kagame&#8217;s most vocal critics, were invalidated for various reasons that included prior criminal convictions.



The two approved candidates, Frank Habineza and Philippe Mpayimana, ran against Kagame in 2017.



In an interview with Reuters, Habineza, the leader of the Democratic Green Party, said he expected to exceed his total of 0.48% of the vote from 2017.



&#8220;People are only considering 2017 and say that I got 0.4%, but they forget that our party stood for parliament and got more than 5%,&#8221; he said.



Mpayimana, who works for the Ministry of National Unity and Civic Engagement, urged voters at a campaign event to consider his candidacy.



&#8220;It&#8217;s true you cannot change the winning team, but we also have to give opportunities to the junior teams to see if they can deliver on their pledges. That is what democracy means,&#8221; he said.



Over 9 million voters are registered for the polls in which they will also elect members of the 80-seat lower house of parliament. Provisional results are expected by July 20.



(Reporting by Aaron Ross, Editing by Bate Felix and Timothy Heritage)

FILE PHOTO: Rwanda’s President Paul Kagame submits his candidature for re-election in Kigali

Kagame expected to cruise to fourth term in Rwanda election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="597" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/JQPE6SE4FVJ2TESCZASBTQHGQI-820x597.jpg" alt="" class="wp-image-506072" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/JQPE6SE4FVJ2TESCZASBTQHGQI-820x597.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/JQPE6SE4FVJ2TESCZASBTQHGQI-300x218.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/JQPE6SE4FVJ2TESCZASBTQHGQI-124x90.jpg 124w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/JQPE6SE4FVJ2TESCZASBTQHGQI-768x559.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/JQPE6SE4FVJ2TESCZASBTQHGQI-1536x1119.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/JQPE6SE4FVJ2TESCZASBTQHGQI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">File photo: A woman fetches drinking water from an unprotected well, as Zimbabwe is experiencing an El Nino-induced drought, resulting in malnutrition among children under the age of five, pregnant and lactating women, and adolescents, in Kotwa in Mudzi district, Zimbabwe July 2, 2024. REUTERS/Philimon Bulawayo/File photo</figcaption></figure>



HARARE, July 10 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe has revised its economic growth forecast downwards as southern Africa&#8217;s worst drought in decades ravages crop yields, its finance minister told Reuters on Wednesday, but a bounceback in growth is likely in 2025.



Finance Minister Mthuli Ncube said economic growth is forecast at 2% for 2024, down from 3.5% forecast in November, due to an El Niño-induced drought which has led to widespread crop failure.



El Niño is a natural climate phenomenon in which surface waters of the central and eastern Pacific become unusually warm, causing changes in global weather patterns.



Zimbabwe is among the hardest hit by drought in the region, impacting crop yields. Neighbours Zambia and Malawi have declared states of disaster as a result of the drought.



Last month, the International Monetary Fund also said it expected Zimbabwe&#8217;s growth to fall to 2%, down from 5.3% last year.



&#8220;We are all downgrading our growth targets for 2024 because of deeper than expected impact on our agriculture, but next year is brighter,&#8221; Ncube said.



Growth is expected to recover to above 5% in 2025, he added.



In May, the Zimbabwean government forecasted that staple maize production will drop 72% in the 2023/24 season.



Ncube said the drought had affected agriculture output and the country expects to import 1.4 million metric tonnes of grain.



To ease hunger across the country, Zimbabwe received around $32 million drought insurance last week from an African Union agency. Government has also appealed to international donors to assist with food aid.



Ncube will give the mid-term budget review later this month.



(Reporting by Nyasha Chingono, Editing by Tannur Anders and Angus MacSwan)

A woman fetches drinking water from an unprotected well, in Kotwa in Mudzi district

Lower growth forecast for Zimbabwe as drought ravages crop yields – finmin

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108003607-1720573755368-gettyimages-2157355769-cfoto-dailylif240617_npCKV-820x461.jpeg" alt="" class="wp-image-505971" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108003607-1720573755368-gettyimages-2157355769-cfoto-dailylif240617_npCKV-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108003607-1720573755368-gettyimages-2157355769-cfoto-dailylif240617_npCKV-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108003607-1720573755368-gettyimages-2157355769-cfoto-dailylif240617_npCKV-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108003607-1720573755368-gettyimages-2157355769-cfoto-dailylif240617_npCKV-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108003607-1720573755368-gettyimages-2157355769-cfoto-dailylif240617_npCKV-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108003607-1720573755368-gettyimages-2157355769-cfoto-dailylif240617_npCKV.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Consumers are shopping at a supermarket in Qingzhou, China, on June 12, 2024.  Nurphoto | Nurphoto | Getty Images</figcaption></figure>



BEIJING — China’s consumer price inflation rose by 0.2% in June from a year ago, missing expectations, while producer prices fell in-line with forecasts, data from the National Bureau of Statistics on Wednesday showed.



China’s consumer price index was expected to rise by 0.4% year-on-year in June, according to a poll by Reuters.



The producer price index, which measures factory-gate prices, dropped by 0.8% from a year ago — in line with expectations.



Core CPI, which strips out more volatile food and energy prices, rose by 0.6% year-on-year in June, slightly slower than the 0.7% increase for the first six months of the year.



Pork prices surged by 18.1% in June from a year ago, while beef prices fell by 13.4%. Tourism prices rose by 3.7% year-on-year in June, down by 0.8% from May.



“The risk of deflation has not faded in China. Domestic demand remains weak,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.



He added that China would rely on exports to support growth in the first half of the year.



The country is scheduled to release trade data for June on Friday.



Lackluster domestic demand in China has kept inflation low, in contrast to major economies such as the U.S. where prices have remained elevated.







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108003607-1720573755368-gettyimages-2157355769-cfoto-dailylif240617_npCKV

China’s inflation numbers miss expectations, rising 0.2% in June

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107383408-17097467082024-03-06t173039z_1867852560_rc2hg6akf319_rtrmadp_0_usa-fed-powell.jpeg" alt="" class="wp-image-505743" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107383408-17097467082024-03-06t173039z_1867852560_rc2hg6akf319_rtrmadp_0_usa-fed-powell.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107383408-17097467082024-03-06t173039z_1867852560_rc2hg6akf319_rtrmadp_0_usa-fed-powell-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107383408-17097467082024-03-06t173039z_1867852560_rc2hg6akf319_rtrmadp_0_usa-fed-powell-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107383408-17097467082024-03-06t173039z_1867852560_rc2hg6akf319_rtrmadp_0_usa-fed-powell-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107383408-17097467082024-03-06t173039z_1867852560_rc2hg6akf319_rtrmadp_0_usa-fed-powell-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">Federal Reserve Chair Jerome Powell speaks during a House Financial Services Committee hearing on the “Federal Reserve’s Semi-Annual Monetary Policy Report” on Capitol Hill in Washington, U.S., March 6, 2024.&nbsp; Bonnie Cash | Reuters</figcaption></figure>



Federal Reserve Chair&nbsp;Jerome Powell&nbsp;on Tuesday expressed concern that holding interest rates too high for too long could jeopardize economic growth.



Setting the stage for a two-day appearance on Capitol Hill this week, the central bank leader said the economy remains strong as does the labor market, despite some recent cooling. Powell cited some easing in inflation, which he said policymakers stay resolute in bringing down to their 2% goal.



“At the same time, in light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face,” he said in prepared remarks. “Reducing policy restraint too late or too little could unduly weaken economic activity and employment.”



The commentary coincides with the approaching one-year anniversary of the last time the Federal Open Market Committee raised benchmark interest rates.



The Fed’s overnight borrowing rate currently sits in a rage of 5.25%-5.5%, the highest level in some 23 years and the product of 11 consecutive hikes after inflation hit its highest level since the early 1980s.



Markets expect the Fed to begin cutting rates in September and likely following up with another quarter percentage point reduction by the end of the year. FOMC members at their June meeting, however,&nbsp;indicated just one cut.



<h2 class="wp-block-heading" id="h-strengthen-our-confidence"><a></a>‘Strengthen our confidence’</h2>



In recent days, Powell and his colleagues have indicated that&nbsp;recent inflation data has been somewhat encouraging&nbsp;after a surprise jump to start the year. Inflation as judged by the Fed’s preferred&nbsp;personal consumption expenditures price index&nbsp;was at 2.6% in May after peaking above 7% in June 2022.



“After a lack of progress toward our 2 percent inflation objective in the early part of this year, the most recent monthly readings have shown modest further progress,” Powell said. “More good data would strengthen our confidence that inflation is moving sustainably toward 2 percent.”



The statement is part of congressionally mandated semiannual updates on monetary policy. After delivering the remarks, Powell will face questioning from Senate Banking Committee members on Tuesday, then the House Financial Services Committee on Wednesday.



In past appearances, Powell has veered away from making dramatic policy announcements while having to dodge politically loaded questions from committee members. The questioning could get contentious this year as Washington is on edge amid a volatile presidential campaign.



However, Powell has stressed that the Fed is not political and does not get involved in taking policy sides outside of its own roles. In his prepared remarks, he emphasized the importance of “the operational independence that is needed” for the Fed to do its job.



His other remarks focused squarely on the stance of policy in relation to the broader economy. Recent data has shown the&nbsp;unemployment rate creeping higher&nbsp;and broad growth as measured by gross domestic product receding. Both the manufacturing and services sectors reported being in contraction during June.



But Powell said the data is showing that “the U.S. economy continues to expand at a solid pace” despite the deceleration in GDP.



“Private domestic demand remains robust, however, with slower but still-solid increases in consumer spending,” he said.

107383408-17097467082024-03-06t173039z_1867852560_rc2hg6akf319_rtrmadp_0_usa-fed-powell

Fed Chair Powell says holding rates high for too long could jeopardize economic growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HIIJDZFCB5P35MGUWBAGP3Y76E-820x547.jpg" alt="" class="wp-image-505670" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HIIJDZFCB5P35MGUWBAGP3Y76E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HIIJDZFCB5P35MGUWBAGP3Y76E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HIIJDZFCB5P35MGUWBAGP3Y76E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HIIJDZFCB5P35MGUWBAGP3Y76E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HIIJDZFCB5P35MGUWBAGP3Y76E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HIIJDZFCB5P35MGUWBAGP3Y76E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A person casts a ballot in the second round of the early French parliamentary elections, at a polling station in Paris, France, July 7, 2024. REUTERS/Sarah Meyssonnier</figcaption></figure>



July 9 (Reuters)&nbsp;&#8211;&nbsp;Elections are taking place this year in countries home to almost half of the world&#8217;s population, from Taiwan&#8217;s general election in January to the U.S. presidential race in November.



The votes come amid growing economic and geopolitical strife, with the Ukraine war, conflicts in the Middle East and rising trade tensions between the United States and China, the world&#8217;s two largest economies.



In some countries, there are concerns about the resilience of democracy itself as political discourse has polarized or been warped by disinformation. Many of this year&#8217;s elections will not be free and fair &#8211; or their results will be disputed.



Half-way through the biggest year for elections in history, here are some common themes that have emerged in Reuters&#8217; reporting from around the world:



<h2 class="wp-block-heading" id="h-cost-of-living">COST OF LIVING</h2>



From the price of green onions in Indonesia to higher fuel bills across Europe, rises in the price of food, energy and other basics have hit the living standards of households across the world. Incumbent governments and leaders are paying for it.



Polling showed that cost of living concerns were a powerful factor in a fall in support for Prime Minister Narendra Modi&#8217;s party in India, losses suffered by mainstream parties in June&#8217;s European Parliament elections and the poll rout of Britain&#8217;s ruling Conservatives.



In Africa, discontent over living standards and unemployment contributed to the ANC&#8217;s loss of its majority in South Africa&#8217;s election. Worsening poverty is likely to help shape the outcome of Ghana&#8217;s December vote to succeed President Nana Akufo-Addo.



Polling ahead of the U.S. election suggests voters are similarly unimpressed with President Joe Biden&#8217;s efforts to improve their livelihoods, with many Americans feeling their living standards are falling despite strong headline economic data. One outlier: In Mexico, the ruling MORENA party emerged the winner after offering ample subsidies to low-income voters.



While economic policymakers say there are signs that inflation is returning to normal, they warn it has not yet been fully tamed and many economies remain fragile.



&#8220;A number of pressure points could throw the global economy off track,&#8221; Agustin Carstens, head of the central bank umbrella group the Bank of International Settlements (BIS), warned in June.



<h2 class="wp-block-heading" id="h-green-transition">GREEN TRANSITION</h2>



With the cost of living uppermost in many voters&#8217; minds, climate change action has often been crowded out of election campaigns &#8211; even as global temperatures break new records and death tolls from extreme heat climb.



While surveys show Europeans still support ambitious action on global warming, the debate there has focused on the perceived cost to livelihoods, with farming and other lobbies stepping up calls for an easing of net-zero policies.



In the EU elections, ecologist Greens shed most of the gains made five years earlier. In Britain, Labour dropped a 28-billion-pound green investment pledge ahead of the July 4 general election, saying the country could not afford it, while their Conservative rivals described themselves as &#8220;on the side of drivers&#8221;, attacking low-traffic and low-emission schemes.



The biggest challenge to the green transition may come from the United States, with Donald Trump campaigning on policies supporting continued fossil fuel use. It remains to be seen how much of Biden&#8217;s Inflation Reduction Act (IRA) green subsidies stay in place in the event of a Trump victory.



<h2 class="wp-block-heading" id="h-swing-to-the-far-right">SWING TO THE (FAR)RIGHT?</h2>



The cost of living crisis has led to rising support for far-right movement&nbsp;in Western countries&nbsp;with a mix of anti-immigration and nationalist policies, often unfunded economic spending plans and populist rhetoric attacking global elites.



Back in March, Portugal&#8217;s Chega party quadrupled its seats in parliament to become the country&#8217;s third-largest party. Three months later, its far-right, eurosceptic peers across Europe made gains in elections to the European Parliament.



In France, Marine Le Pen&#8217;s National Rally failed in elections on Sunday to achieve the majority they were coveting but became the largest single party in a hung parliament that now risks plunging Europe&#8217;s second-largest economy into policy paralyis.



In Britain, the anti-immigrant, nationalist Reform Party won over four million votes, contributing to the collapse in support for the ruling Conservatives even if Britain&#8217;s first-past-the-post electoral system meant it only won a handful of seats.



Austria&#8217;s Sept. 29 election will be closely watched, with polls showing the far-right Freedom Party (FPO) leading rivals after it ranked first in European Parliament elections.



In the United States, Trump has made immigration one of his top domestic campaign issues, declaring he would carry out mass deportations, end birthright citizenship, and expand a travel ban on people from certain countries.



Mohit Kumar, chief economist for investment house Jefferies, noted that immigration as an election theme was hottest in precisely the large Western economies whose ageing populations were creating labour shortages.



&#8220;Economically we need immigration but the political dynamics are shifting away from immigration,&#8221; he said.



<h2 class="wp-block-heading" id="h-debt-and-election-largesse">DEBT AND ELECTION LARGESSE</h2>



With economic hardship so prevalent, many politicians are offering to spend big and cut taxes in a bid to win power &#8211; at the risk of adding to global debt already at record levels after huge post-pandemic stimulus packages in rich-world economies.



Credit rating firm S&amp;P Global has warned the United States, France and other Group of Seven (G7) governments were unlikely to halt rises in their debt &#8220;at the present stage in their electoral cycles&#8221;.



The BIS annual report in June said an election year like this brought an &#8220;especially high&#8221; risk of fiscal expansion that could complicate efforts to bring inflation down to target.



Budget watchdogs in Britain and France &#8211; two countries struggling to balance their budgets &#8211; noted that many spending pledges were either unfunded or unrealistically costed.



Trump has pledged to keep in place a broad 2017 tax cut that he signed while in office, and his economic team has discussed a further round of cuts beyond those enacted in his first term.



Biden, meanwhile, proposes raising levies on businesses and rich individuals, while vowing not to increase taxes for households earning less than $400,000 a year and to assist low- and middle-income Americans with childcare costs. U.S. federal government currently has more than $34 trillion in debt.



Such levels of debt are seen making the global economy more vulnerable to financial shocks and the International Monetary Fund has urged governments to reduce their borrowing.



&#8220;Unfortunately, fiscal plans so far are insufficient and could be derailed further given the record number of elections this year,&#8221; its chief economist Pierre-Olivier Gourinchas said in a recent blog.



<h2 class="wp-block-heading" id="h-defence-and-security">DEFENCE AND SECURITY</h2>



As geopolitical tensions rise, defence and security matters have been prominent in a number of election campaigns so far this year &#8211; particularly in countries near the hotspots.



In February, Finland elected as president Alexander Stubb, who campaigned on the previously non-aligned country fully participating in NATO and allowing the transit of nuclear arms through it. Incumbents in Lithuania won an election dominated by concerns over Russia and calls for higher defence spending.



Taiwan&#8217;s presidential and parliamentary elections on Jan. 13 focused around arguments on how best to deal with China, which views the island as its own territory. The ruling DPP party secured the presidency for a third term as its candidate vowed to safeguard Taiwan from intimidation while emphasising the need for dialogue with Beijing.



In the United States, Democratic voters&#8217; anger over Israel&#8217;s military action in Gaza &#8211; and over Biden&#8217;s continued support of Israel – has emerged as a major vulnerability for him. American views on the conflict have broken down along party lines with Republicans largely supporting Israel.



While Biden voices unwavering support for NATO, Trump has said that if he is returned to the White House, America would fundamentally rethink NATO&#8217;s purpose. He has also asserted without evidence that if elected he would end the conflict in Ukraine before even taking office. On that, Biden has retorted that Trump has &#8220;no idea what he&#8217;s talking about&#8221;.



<h2 class="wp-block-heading" id="h-democracy-at-stake">DEMOCRACY AT STAKE?</h2>



Pro-democracy watchdogs estimate that nearly three-quarters of the world&#8217;s population live in autocracies. Observers and human rights groups have signalled concerns about the fairness of elections this year in Bangladesh, Azerbaijan, Belarus, Cambodia, Iran and Russia. Votes in Algeria and Uzbekistan face similar questions.



Modi&#8217;s electoral setback has been hailed by some commentators as proof of the resilience of its democracy. There was relief at the peaceful handover of power in Senegal in March after moves by the incumbent to delay the vote triggered protests.



Democracy&#8217;s biggest test this year may, however, be in Washington.



Trump refuses to commit to accepting the election results or to rule out possible violence around the Nov. 5 contest. He is already laying the groundwork to contest a potential defeat.



&#8220;We should be quite worried,&#8221; Steven Levitsky, political scientist and professor of government at Harvard University, told a Brookings think tank event in June.



&#8220;A democracy cannot survive if one party in a two-party system is not committed to playing by the democratic rules of the game.&#8221;



(Graphics by Sumanta Sen and Anand Katakam; Editing by Simon Robinson and Daniel Flynn)

France votes in the second round of the 2024 snap legislative elections

How this year of elections is set to reshape global politics

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-820x523.jpg" alt="" class="wp-image-505609" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-1536x980.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows the central business district in downtown Nairobi, Kenya February 18, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



July 8 (Reuters)&nbsp;&#8211;&nbsp;Moody&#8217;s cut Kenya&#8217;s sovereign rating deeper into junk territory on Monday, citing diminished capacity to implement a fiscal consolidation strategy to contain its debt burden.



The credit ratings agency downgraded the country&#8217;s local- and foreign-currency long-term issuer ratings and foreign-currency senior unsecured debt ratings to &#8220;Caa1&#8221; from &#8220;B3&#8221;.



In June, Kenyan President Willian Ruto withdrew planned tax hikes in response to mass protests that turned deadly, killing at least 24 people.



The scrapped finance bill contained measures intended to aid the government&#8217;s aim to raise $2.7 billion in additional taxes to reduce budget deficit and state borrowing.



In order to compensate for the withdrawn finance bill, Ruto&#8217;s administration has proposed cuts in spending.



Moody&#8217;s said that while the spending cuts should narrow fiscal deficit, it would be at a more gradual pace than previously assumed, and as a result expect Kenya&#8217;s debt affordability to remain weaker for longer.



&#8220;In the context of heightened social tensions, we do not expect the government to be able to introduce significant revenue-raising measures in the foreseeable future,&#8221; the ratings agency said.



Moody&#8217;s affirmed its &#8216;negative&#8217; outlook for Kenya, stating that the larger fiscal deficits will push up borrowing requirements and subsequently increase government liquidity risks.



(Reporting by Raechel Thankam Job; Editing by Maju Samuel)

General view of the central business district in Nairobi

Moody’s pushes Kenya’s rating deeper into junk

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-scaled.jpg" alt="" class="wp-image-505362" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Customers peruse goods at Makola market in Accra, Ghana, June 15, 2015. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, July 8 (Reuters)&nbsp;&#8211;&nbsp;Ghana has cleared a key hurdle to restructure its international bonds, as its official creditors confirmed the proposed debt rework was not overly favourable to bondholders.



&#8220;The Ministry &#8230; has received a formal confirmation from its Official Creditor Committee (OCC) that the Agreement in Principle reached with representatives of Eurobond holders is consistent with the Comparability of Treatment principle,&#8221; Ghana&#8217;s finance ministry said in a statement on Monday.



&#8220;Comparability of Treatment&#8221; is a principle from the Paris Club of wealthy creditor nations aimed at ensuring its members do not give outsized concessions compared to private lenders or others outside the group.



A Paris Club spokesperson confirmed the OCC had found Ghana&#8217;s bond restructuring deal gave comparable treatment to different types of creditor.



Leeuwner Esterhuysen, economist at Oxford Economics Africa, said the green light from official creditors meant Ghana could soon issue new bonds to investors to replace the ones being restructured.



&#8220;The country aims to begin the bond exchange this month still and conclude it by the end of September,&#8221; he said.



Ghana had in January reached a deal to restructure $5.4 billion of loans with its Official Creditor Committee, including China and France, which co-chair the group.



The country clinched an agreement in principle with two bondholder groups to restructure around $13 billion of its international bonds in late June, making it the second African country after Zambia in recent weeks to reach the final stages of a debt overhaul.



The government now needs to ask all its bondholders to vote on the proposed deal, which if confirmed would finalise the debt rework.



The West African gold and cocoa producer defaulted on most of its $30 billion in external debt in 2022, after the COVID-19 pandemic, the war in Ukraine and higher global interest rates exacerbated years of overstretched borrowing.



(Reporting by Christian Akorlie; Writing by Alexander Winning; Editing by Karin Strohecker and Arun Koyyur)

Customers peruse goods at Makola market in Accra

Ghana gets green light for bond rework from official creditors

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="423" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160553943-820x423.jpg" alt="" class="wp-image-505345" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160553943-820x423.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160553943-300x155.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160553943-160x83.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160553943-768x396.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160553943-1536x793.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2160553943-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">CAPE TOWN, SOUTH AFRICA &#8211; JULY 03: Minister of Electricity Kgosientsho Ramokgopa during the swearing-in ceremony of the new national executive members at Cape Town International Convention Centre on July 03, 2024 in Cape Town, South Africa. The new National Executive constitutes the 7th Democratic Administration as a Government of National Unity comprising a diversity of political parties as an outcome of the national and provincial elections held on Wednesday, 29 May 2024. (Photo by Brenton Geach/Gallo Images via Getty Images)</figcaption></figure>



PRETORIA, July 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s new energy minister vowed on Monday to accelerate the shift to renewable energy from coal, breaking with a predecessor who opposed swift decarbonision and pledged to keeping burning coal for a long time.



Kgosientsho Ramokgopa, who now runs the newly-created Energy and Electricity Ministry, was addressing journalists as Africa&#8217;s most industrial nation celebrated more than 100 days with no power cuts &#8211; a record over years of crippling blackouts.



&#8220;I am going to be ultra-aggressive on the &#8230; renewable energy. You are going to see an exponential share,&#8221; he told a news conference in the capital Pretoria, adding that he wanted to signal to investors &#8220;our intention to go that route&#8221;.



Owing to its reliance on coal-fired power stations run by state provider Eskom, South Africa is among the world&#8217;s top 15 greenhouse gas emitters &#8211; pushing out more than Britain, Turkey or France &#8211; and has the highest carbon intensity among the Group of 20 largest economies, according to watchdog Climate Transparency.



&#8220;We are going to be the leaders on this continent in relation to renewables,&#8221; Ramakgopa said.



It cut a very different tone from predecessor Gwede Mantashe, who had repeatedly urged resisting international pressure to rush into green energy, questioning its viability.



President Cyril Ramaphosa chose his new cabinet at the end of last month, after weeks of horse-trading with other parties following the ruling African National Congress&#8217;s unprecedented majority loss in a May election.



Previously, energy had been tied to mines, under Mantashe, but Ramaphosa hived it off and merged it with Ramokgopa&#8217;s electricity ministry, in what analysts saw as a move to decouple energy from coal.



With 400,000 square kilometres (about 150,000 square miles) of semi-desert and a vast coastline battered by strong winds, South Africa also has some of the world&#8217;s most abundant renewable energy potential.



Yet policy uncertainty has discouraged investment, and activists bemoaned a government decision last year to delay decommissioning several coal-fired power stations well into 2030, citing energy security.



Ramokgopa admitted South Africa&#8217;s switch to green energy had &#8220;taken a bit longer than what is necessary,&#8221; and said his priority would be meeting business people to discuss &#8220;the hurdles that undermined &#8230; their appetite to participate.&#8221;



(Reporting by Tim Cocks Additional reporting by Sfundo Parakozov and Tannur Anders; editing by David Evans)

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featured

South Africa’s Ramaphosa urges green energy to avoid carbon border tax

Nigeria’s NNPC stake in Dangote refinery reduced over non-payment, CEO tells paper

Kenya to cut spending in revised budget after tax-hike rollback

Rwandans vote in election expected to extend Kagame’s long rule

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Social media fuels Kenyan youth backlash over lawmakers’ opulence

Nigeria unions meet president in push for new minimum wage

Kenyan president sacks cabinet, bowing to pressure from protests

Zambian and Kenyan currencies seen under pressure

Kagame expected to cruise to fourth term in Rwanda election

Lower growth forecast for Zimbabwe as drought ravages crop yields – finmin

China’s inflation numbers miss expectations, rising 0.2% in June

Fed Chair Powell says holding rates high for too long could jeopardize economic growth

How this year of elections is set to reshape global politics

Moody’s pushes Kenya’s rating deeper into junk

Ghana gets green light for bond rework from official creditors

South Africa energy minister vows change with ‘aggressive’ renewables rollout

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