<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="581" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-820x581.jpg" alt="" class="wp-image-503034" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-820x581.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-300x213.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-768x544.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM-1536x1088.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Excavators and drillers at work in an open pit at Tenke Fungurume, a copper and cobalt mine 110 km (68 miles) northwest of Lubumbashi in Congo&#8217;s copper-producing south. Picture taken January 29, 2013. REUTERS/Jonny Hogg//File Photo</figcaption></figure>



NEW DELHI, July 2 (Reuters)&nbsp;&#8211;&nbsp;India is in talks with&nbsp;countries in Africa&nbsp;and Latin America&nbsp;to get critical&nbsp;mineral blocks on a government-to-government basis, Veena Kumari Dermal, joint secretary&nbsp;of the&nbsp;Ministry of Mines, said at an industry event on Tuesday.



The official&nbsp;said that&nbsp;India is&nbsp;also in discussions&nbsp;with Australia for critical&nbsp;minerals.



The South Asian country may&nbsp;have to&nbsp;fast-track&nbsp;clearance for domestic critical minerals blocks,&nbsp;she added.



&#8220;We are having lots of discussions with many other resource-rich countries both in Africa as well as in Latin America for getting a block on a G2G basis or on a priority basis&#8221;, the joint secretary said.



Indian state-owned firm Khanij Bidesh India Ltd (KABIL) is in&nbsp;the&nbsp;process of setting up in Argentina to start exploration, the joint secretary said.



In January, KABIL signed a $24 million lithium exploration pact for five blocks in Argentina.



V.L. Kantha Rao, India&#8217;s secretary of mines, said at industry event in March that India was exploring opportunities in Africa for minerals such as copper, cobalt, and other critical resources, while also pursuing lithium blocks in Australia.



(Reporting by Neha Arora in New Delhi, Writing by Ashna Teresa Britto; Editing by Mrigank Dhaniwala and Sonia Cheema)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YEGVQ7V2ORNN3AV3IRZ2GEW6UM

India in talks with Africa, Latin America countries for critical mineral blocks, official says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-820x547.jpg" alt="" class="wp-image-503012" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A protester walks amid smoke as supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, participate in an anti-government protest against the imposition of tax hikes by the government in Nairobi, Kenya July 21, 2023. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, July 2 (Reuters) &#8211; Riot police used tear gas to disperse protesters in Kenya&#8217;s capital Nairobi on Tuesday and demonstrations took place in other towns, after young activists called for more protests following a week of clashes in which dozens died.



Reuters journalists saw clouds of tear gas on a main road through central Nairobi before midday, where riot police in helmets had been present since early morning.



Outside the capital, Kenyan television stations showed hundreds of protesters marching peacefully, carrying palm fronds in Mombasa on the Indian Ocean coast, and dozens in Kisumu on Lake Victoria. In the southwestern town of Migori, protesters had set tyres on fire.



Members of the protest movement, which has no official leaders and largely organises via social media, have rejected appeals from President William Ruto for dialogue, even after he abandoned proposed tax rises that triggered the demonstrations.



Dozens of Kenyans have been killed in demonstrations and clashes with police since June 18, most of them shot by officers last Tuesday, when some protesters tried to storm parliament to block lawmakers from voting on the tax increases.



Infuriated by the deaths &#8211; at least 39 according to the government-funded Kenya National Commission on Human Rights (KNHCR) &#8211; many are demanding that Ruto steps down.



<h2 class="wp-block-heading" id="h-demanding-ruto-s-resignation">DEMANDING RUTO&#8217;S RESIGNATION</h2>



&#8220;We are determined to push for the president&#8217;s resignation,&#8221; said Ojango Omondi, an activist in Nairobi. &#8220;We hope for a peaceful protest and minimal casualties, if any.&#8221;



The authorities appealed for calm.



&#8220;It&#8217;s a beautiful day to choose patriotism. A beautiful day to choose peace, order and the sanctity of our nationhood,&#8221; State House communications director Gerald Bitok wrote on X on Tuesday, adding in Swahili: &#8220;Violence is not patriotism.&#8221;



Downtown Nairobi was busier on Tuesday morning than it had been in recent days, with shops that had been shut during the protests reopening. Residents believed the worst of the unrest had passed for now.



&#8220;I think it&#8217;s not going to be maandamano (protest) because maybe people are afraid, because some people have been shot,&#8221; said Kennedy Otwal, who was walking through downtown.



The protests, which started as an online outpouring of anger over nearly $2.7 billion of tax hikes in a proposed finance bill, have grown into a nationwide movement against corruption and misgovernance.



<h2 class="wp-block-heading" id="h-caught-between-demands">CAUGHT BETWEEN DEMANDS</h2>



Ruto, facing the most serious crisis of his nearly two-year-old presidency, has been caught between the demands of lenders such as the International Monetary Fund to cut deficits, and a hard-pressed population reeling from the soaring cost of living.



He has directed the treasury to come up with ways to cut spending to fill a budget gap caused by the bill&#8217;s withdrawal, and also said more borrowing will be required.



Veteran anti-corruption activist John Githongo told Reuters that while Ruto had addressed the nation and media, &#8220;there isn&#8217;t an indication that he wants to take action&#8221; on protesters&#8217; demands, including firing corrupt officials.



&#8220;There hasn&#8217;t been any indication by the government that they are going to take the calls to deal with corruption seriously,&#8221; he said.



The protests were mostly peaceful until last Tuesday, when some protesters briefly stormed parliament and set part of it ablaze, and police opened fire.



Ruto has defended the actions of the police, and blamed the violence on &#8220;criminals&#8221; who hijacked the demonstrations.



(Reporting by Aaron Ross, Monicah Njeri and Jeff Kahinju; Additional reporting by Olivia Kumwenda-Mtambo; Writing by Hereward Holland and Peter Graff; Editing by Andrew Heavens and Bernadette Baum)

Anti-government protests against the imposition of tax hikes by the government in Nairobi

Kenya police use tear gas to disperse crowds after call for more demonstrations

<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/KHXBMAI2KVMZVFFWJRXE5BTEH4-820x547.jpg" alt="" class="wp-image-502746" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People react to tear gas during a demonstration over police killings of people protesting against Kenya&#8217;s proposed finance bill 2024/2025, in Nairobi, Kenya, June 27, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, July 1 (Reuters) &#8211; Kenyan activists called for protesters to take to the streets again on Tuesday, with many rejecting appeals from President William Ruto for dialogue following his decision to withdraw proposed tax hikes.



At least 24 people were killed in clashes between protesters and police last week, when parliament was briefly stormed and set ablaze.



The protests, which have been led by young people and organised largely on social media, were initially sparked by a finance bill intended to raise 346 billion Kenyan shillings ($2.69 billion) in taxes.



But the demands of many protesters have escalated over the past two weeks to include calls to root out corruption and for Ruto to step down, presenting the most serious crisis of his two-year-old presidency.



An interview Ruto gave on Sunday evening to Kenyan television networks, in which he mostly defended the actions of the police and his government, seemed to have only hardened the positions of protesters.



On Monday, activists were sharing pamphlets on social media that urged people to occupy the capital Nairobi&#8217;s Central Business District. Many posted under the hashtag #OccupyCBDTuesday.



The protest movement has no official leadership, and it was not clear to what extent people would respond to these calls after tens of thousands came out last week in some of the country&#8217;s largest protests in recent memory.



In audio forums on social media, activists have been discussing how to maintain momentum now that the immediate objective of killing the finance bill has been attained.



<h2 class="wp-block-heading" id="h-spending-cuts">SPENDING CUTS</h2>



In his interview on Sunday, Ruto reiterated his previous calls for dialogue with young people. He said he was prepared to do this in a forum of their choosing, including the X Spaces where they often gather to discuss issues and strategise.



Many protesters reject the calls for dialogue, seeing them as an effort to co-opt the movement.



&#8220;You can’t dialogue with someone who is killing you on the other hand,&#8221; one activist said during an X Space over the weekend.



Ruto defended the conduct of the police in his interview, saying they had done the best they could under the circumstances and blaming &#8220;criminals&#8221; who he said had hijacked peaceful protests.



Ruto also suggested in the interview that the budget gap caused by the withdrawal of proposed tax hikes would be funded by borrowing, seemingly contradicting earlier statement that money would be saved through austerity measures.



Asked about&nbsp;this on Monday, Finance Minister Njuguna Ndung&#8217;u noted that there are legal limits on borrowing and the carrying capacity of debt.



&#8220;So it means that we must have expenditure cuts. This will be known once Parliament approves Supplementary one (budget),&#8221; he told Reuters in a text message.



Kenya&#8217;s national debt of more than 70% of gross domestic product already surpasses the statutory limit of 55% of GDP.



After withdrawing the bill, Ruto asked lawmakers to pass a supplementary budget, but parliament is currently in recess.



($1 = 128.5000 Kenyan shillings)



(Reporting by Aaron Ross; Editing by George Obulutsa and Toby Chopra)

People protest against Kenya’s proposed finance bill 2024/2025, in Nairobi

Kenyan activists call for more protests as govt pledges austerity

<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/ACKWZYM3F5LCNAPKWQETI5UNQU-820x547.jpg" alt="" class="wp-image-502742" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ACKWZYM3F5LCNAPKWQETI5UNQU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa&#8217;s president elect Cyril Ramaphosa interacts with a group on the day of his inauguration ceremony for his second term as South African president, in Pretoria, South Africa, June 19, 2024. REUTERS/Alet Pretorius/File Photo</figcaption></figure>



JOHANNESBURG, July 1 (Reuters)&nbsp;&#8211;&nbsp;South African assets rose sharply on Monday after President Cyril Ramaphosa formed a new cabinet following a long wait that included the former opposition leader and signalled continuity in fiscal policy by sticking to his previous finance minister.



Some investors, however, said the gains were likely to be short-lived as it would take time for the new government&#8217;s agenda and performance to become clear.



At 1125 GMT the rand traded at 18.09 against the dollar, 0.6% stronger than its previous close.



Ramaphosa named Democratic Alliance (DA) leader John Steenhuisen as agriculture minister in his 32-member cabinet line-up on Sunday. Alongside the DA and his African National Congress (ANC), Ramaphosa made space for five other coalition parties in the cabinet.



While the ANC retained control of the finance, defence and foreign affairs ministries, analysts saw the inclusion of the pro-business DA in other key portfolios as positive, while they welcomed the fact that Finance Minister Enoch Godongwana remained in his post.



&#8220;The outcome is clearly a compromise, and both of the major coalition players have had to accept less than what they would have preferred,&#8221; said Markus Korhonen, senior associate in Strategic Intelligence at S-RM, referring to the ANC and DA.



Jee-A van der Linde, senior economist at Oxford Economics, said it remained to be seen whether the unity government formed by Ramaphosa would be able to address South Africa&#8217;s economic issues, but the new cabinet was a &#8220;business-friendly&#8221; outcome.



Ramaphosa&#8217;s ANC lost its majority for the first time in three decades in the May 29 election and has formed a unity government with former rivals as a way to stay in power.



&#8220;It&#8217;s definitely been a bit of a sugar rush I would say, because the positivity is quite pervasive,&#8221; said Jason Swartz, portfolio manager at Old Mutual Investment Group.



&#8220;We&#8217;re going to need to see a little bit more information around actual tangible changes that we will see to policy and an implementation of those policies,&#8221; he said.



Korhonen said the focus now would be on the new government&#8217;s legislative agenda.



&#8220;A formal legislative agenda would provide a good indication of those issues that the government will set out to achieve, and what they might decide to deprioritise considering the potential difficulties in reaching agreement across the coalition,&#8221; he added.



On the domestic economic front, a purchasing managers&#8217; index survey showed factory activity contracted again in June. Vehicle sales figures for June are due later on Monday.



On the Johannesburg Stock Exchange, the Top-40 index was up 0.5% while the all-share index gained 0.8%. The country&#8217;s benchmark 2030 government bond strengthened, with the yield down 10 basis points at 9.885%.



(Reporting by Bhargav Acharya and Kopano Gumbi; Editing by Alexander Winning, David Goodman and Anil D&#8217;Silva)

South African Rand coins are seen in this illustration picture

South African markets cheer Ramaphosa’s ‘business friendly’ cabinet

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-820x573.jpg" alt="" class="wp-image-502453" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/E4XPLDHJ4FJATLM6TW5UKVG4MI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Opposition Democratic Alliance party leader John Steenhuisen speaks at South Africa&#8217;s parliament in Cape Town, South Africa, December 13, 2022. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, June 30 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s President Cyril Ramaphosa appointed the Democratic Alliance party&#8217;s leader John Steenhuisen as agriculture minister in his new cabinet, Ramaphosa said in a televised address to the nation on Sunday.



Ramaphosa reappointed the African National Congress&#8217;s Enoch Godongwana as finance minister and named Gwede Mantashe as mineral and petroleum resources minister, while Ronald Lamola was appointed minister of international relations and cooperation.



This is a developing story&#8230;



(Reporting by Bhargav Acharya, Tannur Anders and Alexander Winning)

FILE PHOTO: Opposition Democratic Alliance party leader John Steenhuisen speaks at South Africa’s parliament

South Africa’s Ramaphosa appoints DA’s Steenhuisen as agriculture minister

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/image.png" alt="" class="wp-image-501447" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/image.png 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/image-300x200.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/image-135x90.png 135w" sizes="auto, (max-width: 720px) 100vw, 720px" /></figure>



NAIROBI, June 28 (Reuters)&nbsp;&#8211;&nbsp;After their stunning success forcing the government to shelve $2.7 billion in tax hikes, young Kenyan activists are setting their sights higher, taking aim at deeply ingrained corruption and misgovernance.



Protesters say the finance bill President William Ruto abandoned on Wednesday was only a symptom of the problems plaguing a country where many young people face dwindling job prospects despite strong economic growth.



The movement has little precedent in its mass mobilisation of Kenyans across ethnic and regional divisions while rejecting any kind of political leadership. Protests in Kenya have historically been led by elites, often ending in power-sharing deals that yielded few tangible benefits for demonstrators.



Protesters now face the challenge of maintaining unity and momentum while pursuing broader, less immediate goals. They will also have to decide how to respond to Ruto&#8217;s offer of dialogue, which the president made on Wednesday without offering specifics.



Writer and activist Nanjala Nyabola said most of those involved in the recent protests were motivated by legitimate, strongly held grievances with the government.



&#8220;Until those grievances are addressed, it&#8217;s unlikely that they&#8217;re going to be willing to make concessions.&#8221;



How the diffuse and leaderless movement, which largely organised via social media, pursues its objectives moving forward remains an open question &#8211; and a source of internal debate.



Christine Odera, co-chair of the Kenya Coalition on Youth, Peace and Security, a civil society organisation, said there was a need for it to develop more formalised structures to advance the interests of young people and speak to the government.



&#8220;If we go organically then we might lose the whole conversation,&#8221; said Odera, who participated in the protests. &#8220;The president has said we need to have conversations. All of us cannot sit in a stadium and have a conversation.&#8221;



Others strongly disagree.



Ojango Omondi, a member of the Social Justice Centres Working Group, a community activist group in a poor district of Nairobi, said creating formal structures and designating national representatives could let the movement be corrupted by politicians.



&#8220;We don&#8217;t need to negotiate anything,&#8221; he said. &#8220;All we want is better living conditions. All we want is the leaders to stop using our resources &#8230; to sponsor their lavish lifestyle.&#8221;



<h2 class="wp-block-heading" id="h-question-of-unity">QUESTION OF UNITY</h2>



Omondi said there was plenty to keep the past week&#8217;s protesters engaged &#8211; from organising funerals for the nearly two dozen people&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3IM15H&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">killed in clashes</a>&nbsp;with police on Tuesday to forcing recall elections against members of parliament.



Another key moment could be the government&#8217;s next bid to pass a finance bill, which is needed to fund expenditures in the upcoming fiscal year. Some protesters suspect the government will still try to jam through tax raises.



In a country where ethnic affinities have traditionally been a key driver of protest, the current youth-driven demonstrations have stood out for building unity around common grievances.



But cracks are already emerging.



Despite Ruto&#8217;s U-turn on the tax hikes, some protesters called for a planned march on the presidential residence to go ahead on Thursday in an attempt to force the president from power. Others rejected the idea as a dangerous gambit.



In the end, there were protests in&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3IP064&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">several cities</a>, although they were smaller than on Tuesday.



In Ruto&#8217;s hometown and political stronghold of Eldoret, where thousands from different ethnic groups took to the streets on Tuesday, a human rights activist said some tensions were resurfacing since the president withdrew the bill.



Nicholas Omito, CEO of the Centre for Human Rights and Mediation, said demonstrators from Ruto&#8217;s Kalenjin ethnic group were arguing that protests should end now that the bill was dropped. Ethnic Kikuyu demonstrators were insisting they should continue until Ruto resigned.



Nyabola, the writer, conceded that the solidarity on display as Kenyans across all walks of life took to the streets in the bold showdown with their government could not undo the country&#8217;s long history of ethnic division.



&#8220;You&#8217;re never going to get rid of it completely,&#8221; she said. &#8220;But for now the class and wealth disparity between politicians and ordinary people has been the focus.&#8221;



(Reporting by Aaron Ross and Giulia ParaviciniAdditional reporting by Edwin OkothEditing by Joe Bavier)

image

After dramatic tax win, Kenyan protesters plot next moves

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1439" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-scaled.jpg" alt="" class="wp-image-424954" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-1536x1079.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A street money changer counts South African Rands in Harare, Zimbabwe, file. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



JOHANNESBURG, June 27 (Reuters)&nbsp;&#8211;&nbsp;The South African rand fell sharply on Thursday as traders were spooked by a local media report that there was a major disagreement between the pro-business Democratic Alliance (DA) party and President Cyril Ramaphosa over cabinet posts.



At 1050 GMT, the rand traded at 18.36 against the dollar, around 1% weaker than its previous close.



Ramaphosa&#8217;s African National Congress (ANC) and the DA emerged as the two largest parties in the unity government after the ANC lost its parliamentary majority in an election last month.



The DA is expected to get cabinet positions in return for supporting Ramaphosa&#8217;s re-election as president.



News website News24 reported that Ramaphosa had backtracked on an offer to give the DA the minister of trade, industry and competition position, replacing it with tourism minister, although the overall number of ministerial positions offered remained the same at six.



News24 said the DA&#8217;s leadership had decided to tell Ramaphosa that if he does not stick to a prior agreement struck earlier in the week then &#8220;the deal is off&#8221; between the two parties.



Financial markets are on edge over the composition of the cabinet, as it will give an indication of whether the ANC intends to meaningfully share power with parties including the DA.



&#8220;As the cabinet announcement delay continues and rumours circulate, the rand is likely to experience further selling pressure,&#8221; said Zain Vawda, market analyst at OANDA.



The Johannesburg Stock Exchange&#8217;s Top-40 index was last down around 0.5%. The benchmark 2030 government bond was weaker, as the yield rose 15 basis points to 9.975%.



(Reporting by Tannur Anders; Editing by Alexander Winning and Anil D&#8217;Silva)

FILE PHOTO: A street money changer counts South African Rands in Harare

South African rand drops on news report of discord over cabinet posts

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-scaled.jpg" alt="" class="wp-image-501050" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Demonstrators react as police use tear gas to disperse protesters during a demonstration against Kenya&#8217;s proposed finance bill 2024/2025 in Nairobi, Kenya, June 25. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, June 27 (Reuters)&nbsp;&#8211;&nbsp;Kenyan police put up roadblocks on streets leading to the presidential palace on Thursday as some protesters vowed to &#8220;occupy State House&#8221;, despite the president&#8217;s climbdown on proposed tax hikes that sparked a week of demonstrations.



It was not clear how far protesters would be mollified by President William Ruto&#8217;s Wednesday decision to withdraw the finance bill, a day after clashes killed at least 23 people and parliament was briefly stormed and set alight.



Ruto is grappling with the most serious crisis of his two-year-old presidency as the youth-led protest movement has grown rapidly from online condemnations of the tax hikes into mass rallies demanding a political overhaul.



Lacking a formal leadership structure, however, protest supporters were divided on how far to carry the demonstrations.



&#8220;Let&#8217;s not be foolish as we fight for a better Kenya,&#8221; Boniface Mwangi, a prominent social justice activist, said in an Instagram post.



He voiced support for demonstrations on Thursday but opposed calls to invade State House, the president&#8217;s formal offices and residence, a move that he said could spur more violence and be used to justify a crackdown.



In the capital, Nairobi, police and soldiers patrolled the streets on Thursday and blocked access to the State House.



Police fired teargas to disperse several dozen people who had gathered in the centre of the city, although the crowds were nowhere near the size of those in Tuesday&#8217;s mass protests.



Reuters reporters saw army vehicles on the streets after the government deployed the military to help police.



Hundreds of protesters gathered in the port city of Mombasa and in the western city of Kisumu, local television footage showed, although those gatherings appeared peaceful.



While some protest supporters said they would not demonstrate on Thursday as the finance bill had been scrapped, others pledged to press on, saying only Ruto&#8217;s resignation would satisfy them.



&#8220;Right now is not about just the finance bill but about #RutoMustGo,&#8221; political activist and protester Davis Tafari told Reuters in a text message. &#8220;We have to make sure that Ruto and his MPs have resigned and fresh elections are held &#8230; We occupy State House for dignity and justice.&#8221;



Eli Owuor, 34, from Kibera, an informal settlement and a traditional hotbed of protests, also said he was prepared to join a push on to the State House.



&#8220;We may just need to visit Zakayo today in his house to prove that after parliament we can occupy State House,&#8221; he said, using a nickname protesters have given to Ruto that references a a biblical tax collector viewed as corrupt.



<h2 class="wp-block-heading" id="h-dialogue-austerity-are-next-steps">DIALOGUE, AUSTERITY ARE NEXT STEPS</h2>



In a speech on Wednesday, Ruto defended his push to raise taxes on items such as bread, cooking oil and diapers, saying it was justified by the need to cut Kenya&#8217;s high debt, which has made borrowing difficult and squeezed the currency.



But he acknowledged that the public had overwhelmingly rejected the finance bill. He said he would now start a dialogue with Kenyan youth and work on austerity measures, beginning with cuts to the budget of the presidency.



The International Monetary Fund, which has been urging the government to cut its deficit to obtain more funding, said it was closely monitoring the situation in Kenya.



&#8220;We are deeply concerned about the tragic events in Kenya in recent days,&#8221; the IMF said in a statement. &#8220;Our main goal in supporting Kenya is to help it overcome the difficult economic challenges it faces and improve its economic prospects and the well-being of its people.&#8221;



Ratings agency Moody&#8217;s said the shift in focus to cutting spending rather than boosting revenue will complicate the disbursement of future IMF funding and slow the pace of fiscal consolidation.



Analysts at JPMorgan said they had maintained their forecasts for a deficit of 4.5% of GDP in FY2024/2025, but acknowledged the government and IMF targets could be revised in light of recent developments.



They said the Central Bank of Kenya was unlikely to begin cutting rates until the final quarter of this year.



<h2 class="wp-block-heading" id="h-broad-appeal">BROAD APPEAL</h2>



Unlike previous demonstrations in Kenya called by political figures and often mobilised on the basis of ethnicity, the current protests have appealed broadly to those weary of rising living costs and endemic corruption.



From big cities to rural areas, most of Kenya&#8217;s 47 counties saw protests on Tuesday, even in Ruto&#8217;s hometown of Eldoret in his ethnic Kalenjin heartland.



At least 23 people were killed nationwide and 30 were being treated for bullet wounds, the Kenya Medical Association said. Medical officials in Nairobi said scores were injured.



(Reporting by Aaron Ross; Additional reporting by Giulia Paravicini, Monicah Mwangi and Olivia Kumwenda-Mtambo; Writing by Sharon Singleton; Editing by Clarence Fernandez and Philippa Fletcher)

Demonstration against Kenya’s proposed finance bill 2024/2025 in Nairobi

Kenya braces for fresh protests despite president’s tax climbdown

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IBU6Z3WQIRPDRFTLELJJA6WZCM-820x541.jpg" alt="" class="wp-image-501074" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IBU6Z3WQIRPDRFTLELJJA6WZCM-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IBU6Z3WQIRPDRFTLELJJA6WZCM-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IBU6Z3WQIRPDRFTLELJJA6WZCM-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IBU6Z3WQIRPDRFTLELJJA6WZCM-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IBU6Z3WQIRPDRFTLELJJA6WZCM-1536x1014.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IBU6Z3WQIRPDRFTLELJJA6WZCM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A fruits and vegetables vendor (L) pushes a trolly as he sets up his stall in Soweto, south west of Johannesburg, South Africa June 1, 2017. REUTERS/Siphiwe Sibek/File Photo</figcaption></figure>



June 27 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s consumer confidence improved slightly in the second quarter due to fewer hours of load-shedding and a drop in fuel and food prices, but uncertainty around national elections kept some consumers worried, data released on Thursday showed.



The consumer confidence index (CCI), sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research (BER), improved to minus 12 points in the quarter, from minus 15 points in the first quarter.



&#8220;Positive developments such as the cessation of load-shedding during the second quarter, substantial cuts in fuel prices in June &#8230; a significant deceleration in food inflation likely buoyed confidence levels, particularly among low- and middle-income consumers,&#8221; FNB Chief Economist Mamello Matikinca-Ngwenya said.



However, the confidence among high-income households remained largely unchanged in the run-up to the national elections and amid persistently high interest rates.



&#8220;High interest rates and uncertainty over which parties would form part of South Africa&#8217;s government of national unity (GNU) probably kept the lid on high-income confidence,&#8221; Ngwenya said.



&#8220;Provided that the GNU remains intact and the JSE and rand exchange rate hold onto their recent gains, there is scope for an improvement in high-income confidence during the third quarter.&#8221;



The African National Congress (ANC) and its largest rival, the white-led, pro-business Democratic Alliance have agreed to work together in South Africa&#8217;s new government of national unity.



Investors anticipate that the unity government will pick up the pace on existing reform plans for electricity, rail and port sectors needed to revive an economy that has barely grown in the last decade and has an unemployment rate that is among the highest in the world.



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

A fruits and vegetables vendor pushes a trolly as he sets up his stall in Soweto, south west of Johannesburg

S. Africa consumer confidence recovers in Q2, survey shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



June 26 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) said on Wednesday its executive board had completed a third review of Zambia&#8217;s Extended Credit Facility and approved an immediate disbursement of some $569.6 million.



The Fund&#8217;s board also approved a request to increase its financial support from $1.3 billion to $1.7 billion to help the southern African country respond to a severe drought, which has caused crop losses and affected power generation.



In a statement, IMF official Antoinette Sayeh said Zambian authorities had made progress on economic and structural reforms while addressing humanitarian challenges due to the drought.



&#8220;Going ahead, coordinated macroeconomic policies, continued efforts to restore fiscal and debt sustainability, and consistent reform implementation would be key to addressing the impact of the drought, preserving macroeconomic stability, and bolstering growth,&#8221; said Sayeh, the Fund&#8217;s deputy managing director.



Copper-rich Zambia dragged itself out of default this month after a debt-restructuring process that took more than three-and-a-half years and was a cautionary tale for the G20&#8217;s Common Framework mechanism designed to help low-income countries tackle unsustainable debt burdens.



The protracted debt rework has deterred investment, constrained economic growth and weighed on local financial markets.



Zambia&#8217;s finance minister asked parliament last week to approve additional spending of 41.9 billion kwacha ($1.65 billion) to help repay external debt and address the drought.



(Reporting by Tannur Anders and Harshita Meenaktshi; editing by Diane Craft and Rami Ayyub)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

IMF approves $570 mln Zambia payout, increases loan to $1.7 bln

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-scaled.jpg" alt="" class="wp-image-427955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s President William Ruto attends the Sustainable Development Goals (SDG) Summit at United Nations headquarters in New York City, New York, U.S., September 18, 2023. REUTERS/Caitlin Ochs/File Photo</figcaption></figure>



NAIROBI, June 26 (Reuters) &#8211; Kenya&#8217;s president on Wednesday withdrew planned tax rises, bowing to pressure from protesters who had stormed parliament, launched demonstrations across the country and threatened more action this week.



William Ruto said he would not sign a finance bill including the hikes a day after violent clashes between police and protesters at the assembly and nationwide left at least 23 people dead and scores wounded, according to medics.



&#8220;Listening keenly to the people of Kenya who have said loudly that they want nothing to do with this finance bill 2024, I concede. And therefore, I will not sign the 2024 finance bill, and it shall subsequently be withdrawn,&#8221; he said in a televised address.



Ruto said he would now start a dialogue with Kenyan youth, without going into details, and work on austerity measures &#8211; starting with cuts to the budget of the presidency &#8211; to make up the difference in the country&#8217;s finances.



The move will be seen as a major victory for a week-old protest movement that grew from online condemnations of tax increases into mass rallies demanding a political overhaul, in the most serious crisis of Ruto&#8217;s two-year-old presidency.



It may see off the immediate threat of more unrest, but leaves Ruto still caught between the competing demands of his hard-pressed citizens and of lenders such as the IMF &#8211; which is urging the government to cut deficits to obtain more financing.



On Tuesday, police opened fire on crowds who massed around parliament and later broke into the assembly&#8217;s compound, minutes after lawmakers had voted through the tax measures and sent them on to the president.



The Nation newspaper documented protests in at least 35 of Kenya&#8217;s 47 counties, from big cities to rural areas &#8211; even in Ruto&#8217;s hometown of Eldoret in his ethnic Kalenjin heartland.



At least 23 people were killed across the East African country and another 30 were being treated for bullet wounds, the Kenya Medical Association said on Wednesday. Medical officials in Nairobi said scores had been injured.



Protesters had earlier vowed to keep up their demonstrations in messages on social media using the hashtag #tupatanethursday, or &#8220;see you on Thursday&#8221; in a mix of Swahili and English.



Posts on social media had urged people to occupy State House, the president&#8217;s office and residence, on Thursday, and the local offices of the World Bank and the International Monetary Fund (IMF) on Friday, though it was not immediately clear if the calls came from individuals or a broader movement.



Heavily armed police patrolled the streets of the capital Nairobi, which were quieter than usual on Wednesday.



The protests began as an online outpouring of anger by young, tech-savvy Kenyans at proposed taxes on bread and diapers and evolved into a nationwide movement calling for the scrapping of the entire finance bill including the taxes.



Thousands took to the streets of Nairobi and several other cities during two days of protests last week as an online movement gathered momentum.



Protests in Kenya have usually been called by political leaders who can be amenable to negotiated settlements. But the young Kenyans in the current demonstrations have no official leader and they have been growing increasingly bold in their demands.



Lawmakers had already removed some tax hikes from the final version of the finance bill on Tuesday, including ones on bread and cooking oil, but inserted others in an effort to avoid a budget gap.

FILE PHOTO: Sustainable Development Goals (SDG) Summit at United Nations headquarters in New York

Kenya president backs down on tax rises after deadly 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/2024/06/GettyImages-2158704243-820x547.jpg" alt="" class="wp-image-500684" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; JUNE 25: People clash with police during a protest against the tax hikes in planned &#8216;Finance Bill 2024&#8217; as they march to the parliament building in Nairobi, Kenya on June 25, 2024. (Photo by Gerald Anderson/Anadolu via Getty Images)</figcaption></figure>



NAIROBI, June 26 (Reuters) &#8211; As John Aron headed out to join the protests raging outside parliament, he felt something huge had already shifted in Kenyan politics, jolting it away from its decades of dominance by party strongmen and ethnic loyalties.



At least eight people died when police opened fire on crowds trying to storm the assembly to protest against tax hikes on Tuesday. President William Ruto blamed &#8220;criminals&#8221;. Aron, from Nairobi&#8217;s Kibera slum, said the demonstrators were part of a brand new movement.



&#8220;It is going to unite the youth and the old like never before,&#8221; the 29-year-old told Reuters.



Over just one week, what began as an online outpouring of anger by young, tech-savvy Kenyans at proposed taxes on bread and diapers has morphed into nationwide movement untethered from the politicians who have traditionally rallied the masses.



Ruto&#8217;s allies initially dismissed the protests as a fit of pique by wealthy, entitled kids.



&#8220;They arrive at the protests in Uber. When they leave the protests, they go to KFC to eat chicken,&#8221; parliament majority leader Kimani Ichung&#8217;wah told supporters last week.



But the protests have built up into a much wider groundswell of anger that has become the most serious crisis of Ruto&#8217;s two-year-old presidency, leaving him fumbling for a response.



&#8220;It&#8217;s the people against the government,&#8221; Ronnie Baron, a 30-year-old English literature teacher&nbsp;said in the heart of the crowd in downtown Nairobi on Tuesday.



The slogans on the streets and social media have shifted from tax to calls for a complete political overhaul. &#8220;Ruto must go!&#8221; crowds chanted.



&#8220;Our leaders are saying they are going to sit down with the youth. And talk to us,&#8221; protester Mitchell Mwamodo said. But &#8220;we don&#8217;t have a leader. I am not trying to have a conversation. We are not ready to back down.&#8221;



Ruto&nbsp;had said on Sunday that he wanted to&nbsp;engage with the protest movement and praised it for staging earlier more peaceful demonstrations.



But as the rallies spread, authorities switched from the carrot to the stick, clashing with demonstrators across the country on Tuesday.



&#8220;They are just trying to find out which hand to shake and which hand to cut off,&#8221; said 37-year-old Mary Ngigi as tear gas swirled around her on Tuesday. &#8220;But we don&#8217;t even have any leaders.&#8221;



<h2 class="wp-block-heading" id="h-i-wish-i-was-born-in-another-country">&#8216;I WISH I WAS BORN IN ANOTHER COUNTRY&#8217;</h2>



Many said they had had enough of a political system under which the big parties took turns in power and funnelled jobs and opportunities to supporters and people from their ethnic groups.



&#8220;Our parents failed us. They voted along tribal lines,&#8221; 26-year-old Derick Kolito told Reuters. He said he had a master&#8217;s degree in accounts but had not managed to find a job.



&#8220;I am the son of peasants. You must have a godfather to get a job &#8230; I wish I was born in another country.&#8221;



Division among the main ethnic groups have traditionally been a key driver of politics and protest, with members of one group coming out against what they see as favouritism towards another.



But at demonstrations and in online forums where they have gathered to discuss and strategise, protesters have stuck to common grievances including steep rises in living costs and widespread corruption.



The protests have cut across Kenya&#8217;s geographic, social and ethnic landscape.



The Nation newspaper documented protests in at least 35 of Kenya&#8217;s 47 counties, from big cities to rural areas &#8211; even in Ruto&#8217;s hometown of Eldoret in his ethnic Kalenjin heartland.



Westen Shilaho, a scholar who has studied Kenyan protest movements, said the political elite have traditionally used &#8220;the ethnic card&#8221; to enhance their own power.



&#8220;Now that that one is not working in this context, they will try to insert the class card,&#8221;&nbsp;he said.



Veteran anti-corruption activist John Githongo said there was room for de-escalation &#8220;but it requires tremendous political creativity and humility on the part of the government.&#8221;



Parliamentarians&nbsp;did make some&nbsp;concessions to the protesters by removing some of the taxes in the finance bill &#8211; though they then added some others to&nbsp;reduce the deficit.



Minutes after they passed the legislation on Tuesday, protesters entered the parliamentary compound, pitching Kenyan democracy into uncharted waters.



By Wednesday morning, a new hashtag was trending on social media &#8211; #tupatanethursday, a mix of Swahili and English meaning &#8220;see you on Thursday&#8221;.



(Editing by Joe Bavier; Editing by Andrew Heavens)

Protest against tax hike in Kenya

Kenya’s youth-led protest movement leaves Ruto fumbling for a response

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-820x547.jpg" alt="" class="wp-image-500666" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2017194273-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">JP Morgan headquarters at Canary Wharf financial district at the heart of Canary Wharf financial district on 6th February 2024 in London, United Kingdom. Canary Wharf is an area located near the Isle of Dogs in the London Borough of Tower Hamlets and is defined by the Greater London Authority as being part of London&#8217;s central business district. Along with the City of London, it constitutes one of the main financial centres in the United Kingdom and the world, containing many high-rise buildings including the third-tallest in the UK, One Canada Square. (photo by Mike Kemp/In Pictures via Getty Images)</figcaption></figure>



June 25 (Reuters)&nbsp;&#8211;&nbsp;India&#8217;s imminent inclusion in the world&#8217;s most widely followed emerging market bond index, JPMorgan&#8217;s GBI-EM, is expected to draw a combined $11 billion away from South Africa, Poland and Thailand&#8217;s local markets, the bank&#8217;s analysts have estimated.



The Wall Street lender said India&#8217;s entry, which starts on Friday and will take 10 months to complete, was likely to pull $4.7 billion from South Africa, $3.3 billion from Poland and $3.2 billion from Thailand.



It will also pull $2.9 billion and $2.5 billion from the Czech Republic and Chile respectively, it added.



&#8220;For EM-dedicated investors, we view India&#8217;s index inclusion as a zero-sum game and expect outflows from other EM local bond markets to accommodate,&#8221; JPMorgan&#8217;s strategists led by Michael Harrison said in a note.



On a broader level, the Europe, Middle East and Africa (EMEA) area is estimated to see the largest regional hit to index weight.



EMEA EM&#8217;s aggregate weight is expected to drop to 26.2% by March when India&#8217;s inclusion is complete compared to around 32% at the start of this month and 40% in 2021, before Russia&#8217;s 2022 exclusion from the index following its invasion of Ukraine.



International investors have bought more than $10 billion of Indian government bonds in the nine months since India&#8217;s inclusion was announced in September, taking their ownership to a record high.



&#8220;Index-related inflows to date&#8230; suggest 32-40% of the expected total of $20-25 billion of index-related inflows to India have already played out,&#8221; Harrison added.



Bond indexes like JPMorgan&#8217;s are influential because investment funds and other types of money managers use them as performance benchmarks which effectively informs what they tend to buy and sell.



In contrast to South Africa and the others, China, Indonesia and Mexico are not expected to see any reductions in their 10% GBI-EM index weights &#8211; the maximum one country can have, and the level India will have reached by March.



Latin America is expected to see a modest decrease, while EM Asia&#8217;s index weightage is estimated to increase, JPMorgan added.



(Reporting by Siddarth S and Johann M Cherian in Bengaluru and Marc Jones in London; Editing by Jan Harvey)

JP Morgan Headquarters At Canary Wharf

India’s JPMorgan bond index entry to suck $11 billion from S.Africa, Poland and Thailand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="588" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/YDXUHLFUPRP4RNSFLEWADBZOR4-820x588.jpg" alt="" class="wp-image-500391" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/YDXUHLFUPRP4RNSFLEWADBZOR4-820x588.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/YDXUHLFUPRP4RNSFLEWADBZOR4-300x215.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/YDXUHLFUPRP4RNSFLEWADBZOR4-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/YDXUHLFUPRP4RNSFLEWADBZOR4-768x551.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/YDXUHLFUPRP4RNSFLEWADBZOR4-1536x1102.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/YDXUHLFUPRP4RNSFLEWADBZOR4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO &#8211; The tower of the headquarters of the Bank for International Settlements (BIS) is seen in Basel, Switzerland March 18, 2021. REUTERS/Arnd Wiegmann</figcaption></figure>



LONDON, June 25 (Reuters)&nbsp;&#8211;&nbsp;Central banks should embrace the benefits of artificial intelligence (AI) the Bank for International Settlements (BIS)has said, but stressed the technology should not replace humans when it comes to setting interest rates.



In its first major report into the rapidly advancing world of AI, the central banking umbrella group said policymakers need to harness its immense power to monitor data in real time in order to &#8220;sharpen&#8221; their inflation-predicting abilities.



That was something found badly wanting in the wake of COVID-19 and Russia&#8217;s invasion of Ukraine when the U.S. Federal Reserve, ECB and other major central banks all failed to grasp the strength of the global inflation surge.



New AI models should reduce the risk of a repeat although their untested nature and the fact they can &#8220;hallucinate&#8221; mean they should not become robo-ratesetters, Cecilia Skingsley, a top official at the BIS, said.



&#8220;We like to hold humans accountable,&#8221; the former Swedish central banker said, referring to the crucial role borrowing costs play in society and the need for judgment.



&#8220;So I can&#8217;t really see a future where an AI will be setting (interest) rates.&#8221;



The BIS, often dubbed the central bankers&#8217; central bank because of the joint work it does, already has eight projects involving AI.



Hyun Song Shin, its head of research and top economic adviser, said policymakers should not view it as &#8220;something magical&#8221; but did say it can help find needles in haystacks and spot vulnerabilities in financial systems.



The technology is also likely to radically reshape labour markets, impacting productivity and economic growth. Widespread adoption could see firms adjust prices more quickly in response to macro-economic changes with repercussions for inflation.



The BIS cautioned that AI also introduces risks, such as new types of cyber attacks, and may amplify existing ones, such as herding, bank runs and financial asset fire sales.



&#8220;The call for action to central banks is to foster a community of practice,&#8221; Shin said. &#8220;To share experience, to share best practice, but also to share data and the models themselves.&#8221;



(Reporting by Marc Jones; editing by Jason Neely)

FILE PHOTO – The tower of the Bank for International Settlements is seen in Basel

Central banks must prepare for profound impact of AI, BIS says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-820x547.jpg" alt="" class="wp-image-500343" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IDQEFEBXZ5P77DRBHHFL7D5QSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. currency is seen in this picture illustration taken March 6, 2020. REUTERS/Mike Segar/Illustration/File Photo</figcaption></figure>



WASHINGTON, June 25 (Reuters)&nbsp;&#8211;&nbsp;The U.S. dollar remains the world&#8217;s primary reserve currency, and neither the euro nor the so-called BRICS countries have been able to reduce global reliance on the dollar, a new study by the Atlantic Council&#8217;s GeoEconomics Center shows.



The group&#8217;s &#8220;Dollar Dominance Monitor&#8221; said the dollar continued to dominate foreign reserve holdings, trade invoicing, and currency transactions globally and its role as the primary global reserve currency was secure in the near and medium term.



Dollar dominance — the outsized role of the U.S. dollar in the world economy — has been strengthened recently given the robust U.S. economy, tighter monetary policy and heightened geopolitical risks, even as economic fragmentation has strengthened a push by BRICS countries to shift into other international and reserve currencies.



The Atlantic Council report said Western sanctions on Russia imposed by the Group of Seven advanced economies after Moscow&#8217;s invasion of Ukraine had accelerated efforts by the BRICS countries to develop a currency union, but the group had been unable to make progress on its de-dollarization efforts.



BRICS is an intergovernmental organization made up of Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates.



The council said China&#8217;s Cross-Border Interbank Payment System (CIPS) added 62 direct participants in the 12 months to May 2024, an increase of 78%, bringing the total to 142 direct participants and 1,394 indirect participants.



Negotiations around an intra-BRICS payment system were still in the nascent stages, but bilateral and multilateral agreements within the group could form the basis for a currency exchange platform over time. However, these agreements were not easily scalable, since they were negotiated individually, the report said.



It noted that China has actively supported renminbi liquidity through swap lines with its trade partners, but the share of renminbi in global foreign currency reserves dropped to 2.3% from the peak of 2.8% in 2022.



&#8220;This is possibly because of reserve managers’ concern about China’s economy, Beijing’s position on the Russia-Ukraine war, and a potential Chinese invasion of Taiwan contributing to the perception of the renminbi as a geopolitically risky reserve currency,&#8221; the report said.



The euro, once considered a competitor to the dollar&#8217;s international role, was also weakening as an alternative currency, with those looking to reduce their risk exposure turning to gold instead, the report said.



It said Russian sanctions had made it clear to reserve managers that the euro was exposed to similar geopolitical risks as the dollar. Concerns around macroeconomic stability, fiscal consolidation, and the lack of a European capital markets union also hurt the euro’s international role, it said.



(Reporting by Andrea Shalal; Editing by Andrea Ricci)

FILE PHOTO: U.S. currency is seen in this picture illustration

US dollar’s dominance secure, BRICS see no progress on de-dollarization -report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="552" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-820x552.jpeg" alt="" class="wp-image-500325" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-820x552.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-300x202.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-134x90.jpeg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-768x517.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-1536x1033.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China’s Premier Li Qiang speaks during the 54th annual meeting of the World Economic Forum in Davos, Switzerland, January 16, 2024.  Denis Balibouse | Reuters</figcaption></figure>



DALIAN, China — Chinese Premier Li Qiang on Tuesday defended the country’s technological development while criticizing efforts to restrict global cooperation.



His remarks, at the opening of the World Economic Forum’s “Summer Davos” meeting in Dalian, China, came amid rising tensions with the EU over imports of Chinese electric cars.



“The rapid rise of China’s new industries is rooted in our unique comparative advantages,” Li said via an official English translation of his Mandarin-language remarks.



He noted the country’s large market, industrial network, labor force, diverse application scenarios and receptive consumers.



“That is how China’s emerging industries get their competitiveness,” Li said.



Earlier this month, the EU announced plans for tariffs on imports of Chinese electric cars. The U.S. has said it will raise duties on the vehicles to 100%.



China and the EU have reportedly agreed to discuss the potential tariffs.



“In many ways the depth of international cooperation determines the height of human development, so it’s essential that we embrace each other with open arms,” Li said, noting the need to “reject” confrontation.



Andrzej Duda, president of Poland, and Pham Minh Chinh, prime minister of Vietnam, gave remarks after Li.



The Chinese premier held state-level meetings in China with the two leaders ahead of the “Summer Davos.” Li had said in his meeting with Duda that China hoped the EU would view the country’s development objectively and create a fair market, according to state media. Poland is part of the EU.



At the Forum’s annual conference in Davos, Switzerland, in January, Li had said in a speech that technological innovation shouldn’t be used as a way to restrict other countries.



Beijing has repeatedly asked Washington to remove restrictions on Chinese companies that prevent them from buying advanced technology from U.S. firms.



<h2 class="wp-block-heading" id="h-economic-outlook"><a></a>Economic outlook</h2>



Li on Tuesday said China’s economic growth would remain “steady” in the second quarter, and that he was “confident” the country was “capable” of achieving the official growth target of 5% for this year.



China earlier this month reported data for May that showed retail sales grew by 3.7% from a year ago, beating expectations, while figures on industrial activity grew less than forecast. Real estate’s drag on the economy persisted, the data showed, while exports have held up as a supporter of growth.



When asked by World Economic Forum founder Klaus Schwab on stage about China’s economic policy, Li drew analogies from traditional Chinese medicine and boxing for explaining why Beijing was pursuing a more targeted and compilation-of-parts approach.



“In the past years we’ve been taking a lot of measures and done a lot that are aimed at keeping the [economic] roots healthy,” Li said, noting Beijing’s efforts to support technological innovation and businesses.



He said that China was adding support for its aging population and looking to it as a new driver of growth. Li did not elaborate on efforts to boost consumption beyond a previously announced trade-in policy.

107361656-17056708822024-01-16t100740z_243850206_rc2yi5adu5sj_rtrmadp_0_davos-meeting

China’s premier defends national competitiveness as trade tensions simmer

<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, June 25 (Reuters)&nbsp;&#8211;&nbsp;The South African rand clawed back some losses in early trade on Tuesday, as local media reported progress in negotiations over cabinet positions between the two biggest parties in the unity government.



At 0650 GMT, the rand traded at 18.0750 against the dollar, more than 0.2% stronger than its previous close. The currency fell about 0.8% against the dollar on Monday.



Markets have been on tenterhooks in the lead-up to the announcement of President Cyril Ramaphosa&#8217;s new cabinet, with signs of friction between the African National Congress (ANC) and the Democratic Alliance (DA) on Monday contributing to the rand&#8217;s fall.



But local news outlets including News24 said talks between the ANC and DA were moving forward after a meeting between Ramaphosa and DA leader John Steenhuisen on Monday. News24 reported a deal may be reached soon which would allow Ramaphosa to announce his executive by Wednesday.



&#8220;Market participants are likely to focus on how many and which ministerial positions the pro-business Democratic Alliance will get in the new cabinet. The more and the more senior, the better (for markets),&#8221; Commerzbank analysts said in a research note.



The ANC lost its parliamentary majority in an election last month, forcing it to share power for the first time since coming to power at the end of apartheid 30 years ago.



In total 10 political parties have agreed to join the unity government.



South Africa&#8217;s benchmark 2030 government bond was stronger in early deals, with the yield down 7 basis points to 9.785%.



(Reporting by Tannur Anders; Editing by Alexander Winning and Andrew Heavens)

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India in talks with Africa, Latin America countries for critical mineral blocks, official says

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Kenyan activists call for more protests as govt pledges austerity

South African markets cheer Ramaphosa’s ‘business friendly’ cabinet

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IMF approves $570 mln Zambia payout, increases loan to $1.7 bln

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Kenya’s youth-led protest movement leaves Ruto fumbling for a response

India’s JPMorgan bond index entry to suck $11 billion from S.Africa, Poland and Thailand

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China’s premier defends national competitiveness as trade tensions simmer

South African rand claws back some losses on reports cabinet talks progress

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