<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/106886069-1621527756504-gettyimages-1232996080-porzycki-bitcoinc210519_npFCy-820x462.jpeg" alt="" class="wp-image-500011" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/106886069-1621527756504-gettyimages-1232996080-porzycki-bitcoinc210519_npFCy-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/106886069-1621527756504-gettyimages-1232996080-porzycki-bitcoinc210519_npFCy-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/106886069-1621527756504-gettyimages-1232996080-porzycki-bitcoinc210519_npFCy-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/106886069-1621527756504-gettyimages-1232996080-porzycki-bitcoinc210519_npFCy-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/106886069-1621527756504-gettyimages-1232996080-porzycki-bitcoinc210519_npFCy.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A photo illustration depicting the cryptocurrency bitcoin. Jakub Porzycki | NurPhoto via Getty Images</figcaption></figure>



Bitcoin continued its descent to $60,000 on Monday.



The price of the flagship cryptocurrency was last down by more than 4% at $61,211.00, according to Coin Metrics. Earlier, it fell to $60,666.30, its lowest level in more than a month. It’s down more than 8% in the past week.



Digital asset investment products notched a second consecutive week of outflows, according to CoinShares. Last week crypto investment products saw their lowest trading volumes globally since the U.S. bitcoin ETFs launched in January.



“We have now seen $1.2 billion of outflows from crypto ETFs over the last two weeks which all began after the FOMC meeting. Our belief is that continued pessimism over the number of rate cuts is weighing on sentiment for crypto,” James Butterfill, head of research at the crypto-focused asset manager, told CNBC. “The Fed have indicated they need to see further evidence of inflation falling before they become more dovish, so any macro say that highlights inflation continues to fall will likely support prices, and conversely, an inflationary date will weigh on prices.”



Eleanor Gaywood, head of strategy at Coincover, said there are often market jitters ahead of the personal consumption expenditure index, the Fed’s preferred inflation gauge, which is due this Friday. She said signs of a rate cut in September could ease investor nerves and steady bitcoin’s price.

106886069-1621527756504-gettyimages-1232996080-porzycki-bitcoinc210519_npFCy

Bitcoin tumbles back to $60,000 to start the week

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-820x547.jpg" alt="" class="wp-image-373504" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1920x1280.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-600x400.jpg 600w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



JOHANNESBURG, June 24 (Reuters)&nbsp;&#8211;&nbsp;The South African rand slipped on Monday, as markets waited for President Cyril Ramaphosa to announce the cabinet lineup of his government of national unity.



At 1100 GMT, the rand traded at 18.1275 against the dollar, about 0.9% weaker than its previous close.



&#8220;Perceived friction between the GNU (government of national unity) partners is playing a role in today’s decline, although the rand was due for a technical correction in any case,&#8221; Danny Greeff, co-head of Africa at ETM Analytics, said.



The African National Congress lost its parliamentary majority in an election last month, the first time in 30 years, which forced it to seek coalition partners.



Nine other parties have joined the ANC, including the pro-business Democratic Alliance (DA), which is favoured by investors.



&#8220;By adding more parties to the coalition, the ANC is walking a fine line between forming an inclusive government and losing investor confidence by diluting the DA’s influence,&#8221; Greeff said.



Investors want the ANC and the Democratic Alliance to play a leading role in the new government and will be watching Ramaphosa’s cabinet picks for insights into the balance of power within the coalition, he said.



Ramaphosa said in his weekly newsletter on Monday that the government&#8217;s top priority was economic growth to create jobs.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index traded around 1.2% stronger than its previous close.



South Africa&#8217;s benchmark 2030 government bond was weaker, with the yield up 15 basis points to 9.835%.



(Reporting by Tannur Anders; Editing by Alison Williams and Tomasz Janowski)

101416618-rand

South African rand falls, focus on cabinet announcement

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-820x547.jpg" alt="" class="wp-image-422301" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man trades U.S. dollars for Ghanaian cedis at a currency exchange office in Accra, Ghana, June 15, 2015. Picture taken June 15. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, June 24 (Reuters)&nbsp;&#8211;&nbsp;Ghana has reached an agreement in principle with&nbsp;two bondholder&nbsp;groups to restructure&nbsp;some$13 billion of&nbsp;international debt,&nbsp;it said on Monday,&nbsp;taking it a step&nbsp;closer to completing its debt overhaul that has been years in the making.



Under the agreement, bondholders will forego about $4.7 billion of their claims and provide cash flow relief of about $4.4 billion during the period of Ghana&#8217;s current financial support programme with the International Monetary Fund that is scheduled to end in 2026.



&#8220;The formal launch of the consent solicitation is expected in the upcoming weeks,&#8221; the government said in a statement.



The agreement will provide Ghana a path to economic recovery through significant debt relief and provision of cash flow, the committee representing international bondholders said in a statement, while welcoming the deal.



The deal comes a week after Ghana struck another agreement with its bilateral creditors, paving the way for the IMF&#8217;s executive board to sign off on a $360 million disbursement after the second review of Ghana&#8217;s $3 billion programme.



The board is scheduled to meet on June 28.



The West African gold and cocoa producer defaulted on most of its $30 billion in external debt in 2022,&nbsp;after&nbsp;the&nbsp;fallout from&nbsp;the COVID-19 pandemic, the war in Ukraine and higher global interest rates&nbsp;exacerbated economic strains.



It started formal talks with two groups of bondholders in mid-March &#8211; a group of Western asset managers and hedge funds and another one including regional African banks.



The negotiations, however,&nbsp;had&nbsp;stalled in April after the proposed deal failed to meet the&nbsp;IMF&#8217;s&nbsp;debt sustainability analysis requirements, and both sides were under pressure to finalise an agreement before December elections in Ghana.



Investors are watching Ghana&#8217;s debt restructuring closely after Zambia&#8217;s bondholders signed off on the southern African nation&#8217;s own debt overhaul which was more than three years in the making.



Ghana&#8217;s international bonds inched higher on the day, reversing earlier losses, with most of the curve bid between 51-53.5 cents in the dollar, Tradeweb data showed.



(Reporting by Maxwell Akalaare Adombila in Accra and Duncan Miriri in Nairobi, additional reporting by Marc Jones, MaPrerna Bedi, Shanima A and Alexander Winning in Johannesburg; Editing by Karin Strohecker and Anil D&#8217;Silva)

GVVD7RTPANKEHJR4J5T4JRVGHA

Ghana reaches agreement in principle on $13 bln bond rework

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1314" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-scaled.jpg" alt="" class="wp-image-499905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-768x493.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-1536x985.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Naspers&#8217; logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



June 24 (Reuters) &#8211; South Africa&#8217;s Naspers said on Monday its full-year earnings more than doubled, buoyed by improved performance of its e-commerce businesses and contribution from China&#8217;s Tencent 0700.HK, which accounts for the bulk of earnings and revenues.



The technology investor said its core headline earnings per share, a key indicator of operating performance in South Africa, from continuing operations rose to 1,148 U.S. cents for the year ended March 31, from a restated 546 cents a year ago.



Naspers, with global investments housed in Amsterdam-listed Prosus, said its consolidated e-commerce business has achieved profitability in the second half of the year, ahead of its expectation for first half of 2025.



The firm posted an annual consolidated e-commerce trading profit of $24 million, compared with a loss of $435 million.



Consolidated revenue from continuing operations grew 8% to $6.4 billion, with Classifieds and Food Delivery businesses being the biggest contributors, it said.



Naspers controls Amsterdam-listed Prosus and holds its international investments there.



It has investments in food delivery companies iFood of Brazil, Delivery Hero&nbsp;DHER.DE&nbsp;and India&#8217;s Swiggy, educational software firms such as SkillSoft and Stack Overflow, and payments companies such as India-focused PayU.



Prosus also holds a stake in Chinese software and gaming giant Tencent&nbsp;0700.HK, which it sold down to 25% from 26.2% last year, to fund a rolling share buyback program.



Naspers and Prosus say the buybacks benefit shareholders because Prosus is worth 30% less than the value of the Tencent stake, or $98 billion at current prices.



(Reporting by Nqobile Dludla and Prerna Bedi; Editing by Rashmi Aich)

FILE PHOTO: Illustration shows smartphone with Naspers’ logo

S.Africa’s Naspers profit doubles on Tencent, e-commerce performance

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg" alt="" class="wp-image-426709" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE.jpg 1457w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan President Yoweri Museveni attends a session of the Russia-Africa summit in Saint Petersburg, Russia, July 28, 2023. Mikhail Tereshchenko/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



KAMPALA, June 21 (Reuters)&nbsp;&#8211;&nbsp;Uganda has signed a pact with a business association from the United Arab Emirates to build a new international airport, President Yoweri Museveni&#8217;s office said on Friday.



The deal for the East African nation&#8217;s third such airport expands the UAE&#8217;s economic footprint beyond its interests in the renewable energy and oil and gas industries.



The UAE&#8217;s Sharjah Chamber of Commerce and Industry will build the airport just outside the Kidepo National Park in the northeast near Uganda&#8217;s border with Kenya, Museveni&#8217;s office said in a statement, without giving the cost.



Construction will start in August, said Abdallah Sultan Al Owais, chairman of the Sharjah business body.



The airport will boost tourism by drawing visitors to the 1,442-sq-km (557-sq-mile) Kidepo park known for lions, giraffes, buffaloes and other big game.



The agreement was &#8220;a sign of the deepening relations with our Gulf partners and another opportunity to co-operate in investment and trade&#8221;, Museveni, who witnessed the signing, said in a post on X.



(Reporting by Elias Biryabarema; Editing by George Obulutsa and Clarence Fernandez)

A session of the Russia-Africa summit in Saint Petersburg

Uganda signs deal with UAE to build third international airport

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



WASHINGTON, June 20 (Reuters)&nbsp;&#8211;&nbsp;The IMF said on Thursday its executive board approved funding&nbsp;for Tanzania of $786.2 million to help tackle climate change while also completing a separate review allowing for the disbursement of $149.4 million for budget support.



Tanzanian authorities are committed to continue implementing reforms to preserve macro-financial stability, strengthen economic recovery, and promote sustainable and inclusive growth, the International Monetary Fund said in a statement.



In the last three years, President Samia Suluhu Hassan&#8217;s administration has undertaken various economic reforms with ambitions to return the country&#8217;s economic growth to the pre-pandemic real gross domestic product growth rate of 6% to 7%.



Tanzania&#8217;s economic reform program remained strong, the IMF said, adding that economic growth rebounded in 2023 after slowing down in 2022.



&#8220;The current account deficit is narrowing, reflecting fiscal consolidation, easing commodity prices, and tight external financing conditions,&#8221; the IMF said.



While economic recovery is expected to gain momentum going forward, the IMF noted that it faced headwinds from an &#8220;unfavorable global economic environment.&#8221;



Tanzania&#8217;s economy, which relies on tourism, mining, agriculture and manufacturing, has remained resilient in the face of back-to-back extreme weather events and climate change, driven by a surge in the services sector, according to the World Bank.



The economy is forecast to accelerate to 5.4% this calendar year, up from 5.1% in 2023, minister of state in the president&#8217;s Office for Planning and Investment Kitila Mkumbo said last week.



(Reporting by Kanishka Singh; Editing by Chris Reese and Sandra Maler)

IMF logo is seen outside the headquarters building in Washington

IMF approves over $900 mln to support Tanzania budget, climate change fight

<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/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg" alt="" class="wp-image-498805" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the Makola market, one of the country&#8217;s largest trading centres in Accra, Ghana March 26, 2022. Picture taken March 26, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, June 20 (Reuters) &#8211; Ghana has reached an agreement in principle with its bondholders for the restructuring of $13 billion worth of international debt, three sources told Reuters on Thursday, on the heels of a deal finalised with official creditors earlier this month.



The deal will see bondholders take a haircut on principal of up to 37% and maturity of the bonds lengthened, two of the sources said.



The West African gold and cocoa producing nation defaulted on most of its $30 billion in external debt in 2022, under the strain of the COVID-19 pandemic, the war in Ukraine and higher global interest rates and surging debt.



Like Zambia, Ghana also signed up for debt treatment under the G20 Common Framework, a process designed to facilitate quick debt overhauls and to bring the newest large bilateral lender, China, into the process.



Zambia&#8217;s bondholders signed off on its restructuring earlier this month, after the southern African copper producer became the first African country to default during the pandemic.



For Ghana, &#8220;things are pretty close. We can expect an announcement by next week,&#8221; one source said, asking not to be named because they were not authorised to speak to media.



The other two sources said the announcement could come as soon as Friday.



Ghana&#8217;s finance ministry and the Paris Club, an alliance of creditor nations, could not immediately be reached for comment due to the late hour.



Ghana started formal talks with two groups of bondholders in mid-March &#8211; a group of Western asset managers and hedge funds and another one including regional African banks.



The negotiations, however, stalled in April after the proposed deal failed to meet the International Monetary Fund&#8217;s (IMF) debt sustainability analysis requirements, forcing both sides to regroup to find a suitable solution.



The three sources said the deal had since fit into a revised IMF debt framework on Ghana shared with bondholders earlier, resulting in the agreement in principle.



The world&#8217;s No.2 cocoa producer earlier this month agreed a pact with its official creditor committee to formalise a debt restructuring deal reached in January.



The outlines of the agreement paved the way for the IMF executive board to hold a June 28 meeting on Ghana to consider a second review of its $3 billion loan, three-year package and the release of the next tranche of $360 million.



(Editing by Alessandra Prentice, Shri Navaratnam and Jamie Freed)

FILE PHOTO: FILE PHOTO: People make trade in Accra

Ghana, bondholders reach agreement in principle to restructure $13 bln debt, sources say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1310" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-scaled.jpg" alt="" class="wp-image-498574" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-1536x982.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Riot police officers control civilians after a bus was torched by unknown people ahead of protests by supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, in a nationwide protest over cost of living and President William Ruto&#8217;s government in Nairobi, Kenya May 2, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, June 20 (Reuters)&nbsp;&#8211;&nbsp;Riot police fired tear gas and water cannons to disperse thousands of demonstrators in Nairobi on Thursday as coordinated marches took place across Kenya against government plans to raise $2.7 billion in additional taxes to reduce the budget deficit.



Spraying people with purple-coloured water from water cannons, police sought to clear protesters in Nairobi&#8217;s central business district and blocked their path to parliament.



It was not clear why police used force as the demonstration appeared peaceful.



The Kenya Red Cross&#8217; Nairobi branch said on X it had attended to eight injured people from the protests. It did not give more details on the nature of injuries.



Police spokesperson Resila Onyango and Nairobi police commander Adamson Bungei did not respond to requests for comment.



Protesters say the tax rises will hurt the economy and raise the cost of living for Kenyans who are already struggling to make ends meet.



A parliamentary panel urged the government on Tuesday to scrap some new taxes proposed in its finance bill, including new ones on car ownership, bread, cooking oil and financial transactions.



The panel also recommended that a fuel tax towards road maintenance be increased.



President William Ruto was elected almost two years ago on a platform to help Kenya&#8217;s working poor, but has faced repeated anti-tax protests. He has defended the tax increases, saying the government needs to reduce its reliance on borrowing.



Elsewhere on Thursday, demonstrators in places such as Nyeri, Nakuru, Eldoret,&nbsp;Isiolo, Mombasa&nbsp;and Kisumu called for lawmakers to drop the bill and waved placards with slogans like &#8220;We say no to economic dictatorship&#8221;, and chanted &#8220;Ruto must go&#8221;. Those protests took place peacefully.



On Thursday afternoon, police also dispersed protesters in Eldoret.



The International Monetary Fund has urged the government to increase revenues in its 2024/25 budget to reduce state borrowing.



Lawmakers were debating the bill on Thursday in its second reading before parliament. Ruto has a majority in parliament, although some lawmakers allied to his coalition have expressed reservations about the bill.



Kimani Ichung&#8217;wah, the parliament&#8217;s majority leader, said lawmakers will meet on Tuesday to vote on the proposed changes to the bill.



Ndindi Nyoro, chairperson of the parliament&#8217;s budget committee, said the Finance Ministry had told parliament that scrapping the handful of proposed tax hikes would lead to a revenue shortfall of 200 billion shillings in the 2024/25 budget meaning equivalent spending cuts would have to be made.



Hundreds of people demonstrated on Tuesday against the bill, in the biggest backlash against Ruto&#8217;s government since protests in July last year, when rights groups said at least nine people were killed.



(Additional reporting by Hereward Holland, George Obulutsa and Humphrey Malalo in Nairobi, Noor Ali in IsioloEditing by Christina Fincher, Frances Kerry and Franklin Paul)

Nationwide protest over cost of living and President William Ruto’s government in Nairobi

Police fire tear gas, water cannon at anti-tax protesters in Kenya capital

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, June 20 (Reuters)&nbsp;&#8211;&nbsp;The Kenyan, Ghanaian and Ugandan currencies are expected to weaken over the next week to Thursday, while Nigeria&#8217;s and Zambia&#8217;s could trade around their current levels, traders said.



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



Kenya&#8217;s shilling is expected to slip on foreign-currency demand from manufacturers and importers.



Commercial banks quoted the shilling at 128.50/129.50 per dollar, compared with last Thursday&#8217;s closing rate of 128.00/129.00.



&#8220;Manufacturers and importers are starting to cover their mid-month and month-end needs,&#8221; one trader said. &#8220;I think it (the shilling) will weaken towards the middle of next week.&#8221;



The shilling has strengthened 22% against the dollar since the start of the year, according to LSEG data, boosted by a government debt management exercise that saw it buy back most of a $2 billion Eurobond that had unnerved investors.



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



Nigeria&#8217;s naira is seen range-bound on the official market next week, as demand for foreign exchange slows and central bank interventions dry up.



LSEG data showed the naira trading at 1,481 to the dollar on the official market on Thursday, around the same level as a week ago. The unit hit 1,492 naira versus the U.S. currency on the parallel market.



&#8220;We expect the naira to remain relatively stable next week,&#8221; a trader said.



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



Ghana&#8217;s cedi is expected to weaken further next week as local firms, especially in the manufacturing and telecommunication sectors, seek more dollars to buy imported goods.



LSEG data showed the cedi trading at 15.10 to the dollar on Thursday, compared with 15.00 at last Thursday&#8217;s close.



&#8220;The cedi lost further ground against the dollar this week, driven by continued demand pressures amid limited supply,&#8221; said Chris Nettey, head of trading at Stanbic Bank Ghana.



&#8220;We expect a similar narrative in the coming sessions, but the cedi&#8217;s downside could be limited by anticipation of the IMF disbursement of $360 million and Bank of Ghana interventions,&#8221; he added.



Sedem Dornoo, senior trader at Absa Bank Ghana, said foreign-currency flows were expected to remain thin and demand elevated.



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



Uganda&#8217;s shilling is seen trading with a weakening bias over the coming days, undermined by elevated demand for hard currency from merchandise importers.



Commercial banks quoted the shilling at 3,740/3,750 to the dollar on Thursday, compared to last Thursday&#8217;s close of 3,710/3,720.



&#8220;We are seeing significant (dollar) demand from importers which I reckon will remain elevated in the short term, particularly as we move toward the close of the fiscal year,&#8221; one trader said.



Uganda&#8217;s fiscal year ends in June.



The trader said the shilling was likely to weaken to around 3,780 against the dollar in the coming week.



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



Zambia&#8217;s kwacha is likely to hold steady following a decrease in demand for hard currency.



On Thursday commercial banks quoted the currency at 25.45 per dollar from 26.30 a week ago.



&#8220;The local unit is expected to exhibit forms of stability in the short run,&#8221; Access Bank said in a note.



(Reporting by Hereward Holland, Christian Akorlie, Chijioke Ohuocha, Elias Biryabarema and Chris Mfula; Editing by Alexander Winning)

ANCK25OQIFMHTJYACOM5XU5T24

WEEKAHEAD-Kenyan, Ghanaian and Ugandan currencies seen falling

<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-969639340-820x547.jpg" alt="" class="wp-image-498461" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-969639340-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A Transnet logo stands on a rail mounted gantry crane, manufactured by Terex Corp., at the Port of Durban, operated by Transnet SOC Holdings Ltd.&#8217;s Ports Authority, in Durban, South Africa, on Friday, May 25, 2018. Transnet last year reduced its seven-year capital-investment plan by 17 percent to 229.2 billion rand in response to lower-than-anticipated freight demand. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



June 20 (Reuters) &#8211; South Africa&#8217;s logistics utility Transnet said on Thursday it would appeal a court decision to award Sasol and TotalEnergies about 6.2 billion rand ($344 million) in damages and interest to settle a tariff dispute.



Sasol said earlier on Thursday that it won the award in a High ruling against Transnet, which it accused of overcharging it for transporting crude oil for several years.



&#8220;The judgment thus has enormous implications not only for the public purse but also for Transnet’s ability to discharge its obligations,&#8221; Transnet said in a statement.



&#8220;Transnet intends to appeal the judgment,&#8221; it added.



In 2017, Sasol Oil joined TotalEnergies, its joint venture partner in the Natref crude oil refinery, in a lawsuit against Transnet Pipelines over a tariff dispute.



&#8220;On 18 June 2024, judgement was handed down by the High



Court in Sasol Oil and TotalEnergies&#8217; favour. Damages in the amount of 3,889,475,802 rand plus interest amounting to approximately 2.3 billion rand ($128 million) were awarded to Sasol Oil,&#8221; Sasol said in a statement.



TotalEnergies was not immediately available to comment.



The dispute has its roots in a 1967 agreement between the then South African government and Total, which established an inland crude oil refinery at a time when coastal refineries were struggling to meet inland demand.



To secure the participation of Total in the inland refinery Natref, the government put in place a pipeline tariff structure that would match the costs of a coastal processing facility.



Sasol, which was set up as a state-owned business in 1950 and privatised in 1979, owns 63,64% of Natref, with TotalEnergies holding the remainder.



($1 = 17.9996 rand)



(Reporting by Nelson Banya; editing by Jason Neely and Emelia Sithole-Matarise)

Operations At The Transnet SOC Ltd. Port Of Durban

Transnet to appeal against $344 mln Sasol award over tariff dispute

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1152" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, June 20 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand edged lower early on Thursday, as investors turned cautious ahead of newly re-elected President Cyril Ramaphosa&#8217;s cabinet appointments under a unity government.



At 0726 GMT, the rand traded at 17.9850 against the dollar, 0.15% weaker than its previous close.



The local currency had strengthened to a near 11-month high of 17.9200 on Wednesday after five political parties joined the African National Congress last week in forming a government of national unity, after it lost its absolute majority in general election.



&#8220;Markets will now be watching President Ramaphosa&#8217;s cabinet appointments with interest,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



There is no major economic data due in South Africa till next Thursday when Statistics South Africa will release monthly producer inflation figures.



On the stock market, the Top-40 index was up 0.2% in early trade.



South Africa&#8217;s benchmark 2030 government bond was weaker, with the yield up 4 basis points at 9.785%.



(Reporting by Bhargav Acharya; Editing by Shinjini Ganguli)

South African Economy As Inflation Rate Rises For First Time In 2017

South African rand edges lower, focus on president’s cabinet picks

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="900" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004.jpeg" alt="" class="wp-image-498426" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004.jpeg 1600w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004-1536x864.jpeg 1536w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



LONDON — The U.K. had some cause for celebration on Wednesday morning, as headline inflation hit the Bank of England’s 2% target for the first time in nearly three years.



But the print only served to further convince&nbsp;traders that an interest rate cut is not imminent.



Money market pricing by 11 a.m. in London implied just a 5% probability of a reduction of the Bank Rate during Thursday’s BOE meeting — after recording stronger odds&nbsp;earlier in the week. Bets on an August cut were also trimmed to roughly 30%.



While the 2% inflation reading is a significant milestone — not least as British politicians set out their stalls ahead of a general election in just over two weeks — it has been anticipated for some time and was largely driven by the sharp year-on-year decline in energy prices. Fluctuations in the rate over the coming months are expected as the drag from energy fades.



Policymakers are equally focused on services inflation, key to understanding domestic price pressures in the country’s services-oriented economy, which came in at 5.7% — higher than the 5.5% forecast by economists in a Reuters poll.



Core inflation, excluding the volatile components energy, food, alcohol and tobacco, remained well above the central bank’s long-term average at 3.5%.



“We’ve seen some good stuff in terms of seasonality, food prices are coming down as well,” James Sproule, chief economist at Handelsbanken, told CNBC’s “Street Signs Europe” on Wednesday.



“But looking over the rest of the year, even the Bank of England itself is expecting inflation to start to creep up a bit again over the course of the autumn,” he said.



“I think the most disturbing thing lots of economists like myself are looking at right now is what’s happening in services inflation. That’s largely about people’s salaries and earnings. And those numbers have been proving a good deal stickier than we would like,” Sproule said, with the BOE targeting services inflation of around 3%.



Whether the BOE cuts rates in August or September remains a close call, he added.



Average U.K. wage growth excluding bonuses held uncomfortably high for the BOE at 6% in June, though there were signs of a loosening labor market.



At its last meeting in May, the central bank said that recent inflation readings had been “encouraging,” but that the chance of a rate cut would be assessed at each meeting and based on the latest data.



<h2 class="wp-block-heading" id="h-august-in-play"><a></a>August in play?</h2>



Members of the BOE’s Monetary Policy Committee, including Governor Andrew Bailey, will be more tight-lipped than usual on Thursday due to the upcoming national vote. The institution is politically independent and has stressed it would be willing to enact a rate cut if it believed one was required, irrespective of an election.



But both the ruling Conservative Party and its main opposition Labour have centered their platforms on the U.K.’s economic performance, meaning that central bank action — or lack thereof — will be closely watched.



Two members of the MPC voted to cut rates at the May meeting, versus seven who voted to hold.



James Smith, developed markets economist at ING, expects a repeat of&nbsp;that split on Thursday.



“That may be hard to square against the idea that the committee is very close to cutting rates. But the key thing to remember is that the five internal committee members, who hold the key to the first cut, tend to move as a pack,” Smith said in a note on&nbsp;Tuesday, meaning an August rate cut would remain firmly on the table.



A BOE decision to hold rates would come after the European Central Bank began its own path of reductions at its June meeting. Headline inflation in the euro zone came in higher than in the U.K. at 2.6% in May, but the core figure has cooled further.



Economists will be listening out for BOE messaging on liquidity conditions and their impact on the economy, as well as any hints that the Bank’s confidence has been shaken by the latest data, ING’s Smith said.



“But listening to Governor Andrew Bailey back in May, it sounded like he was keen to get on with the job of cutting interest rates. And a bit like the European Central Bank, the BOE seems more confident in its inflation predictions than it had been over the past couple of years,” he added.

107430853-1718793840829-gettyimages-1998366297-20240210_city_thames_sunset_004

Bank of England set to hold interest rates despite inflation hitting 2% target

<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/XTHTTNJCNBLMRCVMKQ64BXYBEI-820x547.jpg" alt="" class="wp-image-498157" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/XTHTTNJCNBLMRCVMKQ64BXYBEI-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 walks 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, June 19 (Reuters)&nbsp;&#8211;&nbsp;Investors are optimistic South Africa&#8217;s new unity government can deliver stable economic policies to revive growth, but are cautious about how the new coalition&#8217;s main partners can reconcile stark ideological differences.



The African National Congress (ANC) &#8211; which has governed since a vote in 1994 that marked the end of apartheid &#8211; has struck a deal with the white-led, pro-business Democratic Alliance (DA) and smaller parties after failing to win a parliamentary majority in national elections last month.



The agreement between the ideologically opposed ANC and DA marks a major political shift in the country and paves the way for a Government of National Unity under President Cyril Ramaphosa to bring in reforms needed to create economic growth and tackle high levels of unemployment and inequality.



Investors and credit rating agencies see the two biggest parties in the unity government agreeing on more liberal economic policies, but they could struggle to overcome their ideological differences.



The ANC, for instance, has increased spending on welfare payments, but the DA had in the run up to the election pushed to roll back some of them and to scrap some ANC Black empowerment policies.



The left-leaning Economic Freedom Fighters (EFF) and the party of former president Jacob Zuma, uMkhonto weSizwe (MK), will not join the unity government, choosing instead to be part of the opposition alliance.



&#8220;With populist parties choosing to reject the GNU, and the ANC&#8217;s bigger partners in the governing coalition centre-leaning and favouring more liberal economic policies, we think the GNU opens the possibility for more growth-friendly structural reforms and prudent macroeconomic policy choices,&#8221; HSBC economist David Faulkner said in a note.



&#8220;But the GNU could also face ideological divisions and exacerbate fractures within the ANC, factors that could make establishing a stable policy framework difficult.&#8221;



Among its priorities, the unity government is set to focus on rapid, inclusive and sustainable economic growth, the promotion of fixed capital investment, job creation, land reform and infrastructure development, the ANC has said.



&#8220;The election outcome is broadly favourable for the economic and fiscal outlook, compared with the alternatives,&#8221; S&amp;P Global Ratings said on Tuesday, but it also said the government faces an uphill battle to revive growth and maintain fiscal discipline, while navigating the new realities of coalition politics.



&#8220;Despite the reasonably constructive outcome, significant ideological differences between the ANC and the DA on issues such as affirmative action and foreign policy could destabilise the government,&#8221; S&amp;P said.



Smaller parties in the unity government include the socially conservative Inkatha Freedom Party and the right-wing Patriotic Alliance.



<h2 class="wp-block-heading" id="h-markets-surge">MARKETS SURGE</h2>



Financial markets have welcomed the unity government, with South Africa&#8217;s banking index, seen as a gauge of local economic recovery prospects, up 19% since June 7 &#8211; when the ANC announced it would seek to form a unity government.



The rand, one of the few emerging market currencies to chalk up gains since the start of the year, and local government bonds have also reacted positively.



&#8220;The spread between our bonds and U.S. bonds, it&#8217;s pretty much back to where it was pre-election,&#8221; said Mike van der Westhuizen, portfolio manager at Citadel, a local wealth management firm. &#8220;That risk premium in bonds is at sort of fair value,&#8221; he added.



Investors anticipate that the unity government will pick up the pace on the ANC&#8217;s existing reform plans for electricity, rail and port sectors. These are 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.



The DA has endorsed a government programme code named &#8220;Operation Vulindlela&#8221;, a Zulu term meaning clear the path, that was initiated in 2020 by the ANC-led government to speed up structural reforms.



Adam Furlan, emerging markets fixed income portfolio manager at NinetyOne investments &#8211; South Africa&#8217;s largest asset manager, said the DA&#8217;s desire to support the initiative bodes well for policy continuity.



&#8220;We expect that to continue and hopefully at a more brisk pace,&#8221; said Furlan.



Ramaphosa is expected to announce his new cabinet, in consultation with his new coalition partners, a few days after his inauguration on Wednesday.



Some analysts expressed concern that the ANC was unlikely to give up the key finance portfolio.



&#8220;The best case scenario for asset prices from this point is that DA gets responsibility for finance, public enterprises, and energy, and the worst case, is that their cabinet representation is merely a token one,&#8221; said Tellimer market research said in a note.



(Additional reporting by Nqobile Dludla; Editing by Olivia Kumwenda-Mtambo and Jane Merriman)

FILE PHOTO: Inauguration of South Africa’s president-elect Ramaphosa, in Pretoria

Investors cautiously optimistic S.Africa’s new government can deliver growth-friendly reforms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-820x507.jpg" alt="" class="wp-image-498092" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-820x507.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-768x474.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-1536x949.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KC77RFN7RNKTEDE5FOCEDTGIM-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A customer compares prices while shopping at a Pick and Pay shop in East London, in the Eastern Cape province, South Africa, March 17, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, June 19 (Reuters)&nbsp;&#8211;&nbsp;South African inflation was stable in May, data showed on Wednesday, but analysts do not expect interest rate cuts any time soon as it remains above the central bank&#8217;s desired level.



Headline consumer inflation came in at 5.2% year on year in May, the same as in April, in line with the forecast of economists polled by Reuters.



The South African Reserve Bank (SARB) wants to see inflation fall to 4.5%, the midpoint of its target band, and has kept its main interest rate at its highest level since 2009 for more than a year to try to achieve that objective.



Inflation has been above 5% for months, and the central bank estimated last month that inflation would only stabilise at 4.5% in the second quarter of 2025.



According to a Reuters poll released on Tuesday, the SARB could wait until November before cutting its repo rate.



Capital Economics analyst David Omojomolo said the formation of a government of national unity following last month&#8217;s election could ease the central bank&#8217;s fiscal concerns, meaning a higher chance of a rate cut before the end of this year.



Annabel Bishop at Investec bank said after Wednesday&#8217;s data that the central bank&#8217;s tone would probably remain hawkish for now.



Five political parties have joined the African National Congress (ANC) in a unity government after the ANC lost its majority in the May 29 vote for the first time since the end of apartheid 30 years ago.



Markets have been reassured because the unity government includes the pro-business Democratic Alliance and excludes parties viewed as more radical, the hard-left Economic Freedom Fighters and uMkhonto we Sizwe led by former president Jacob Zuma.



Inflation was at 0.2% in May on a month-on-month basis, compared to 0.3% in April.



(Additional reporting by Tannur Anders; Editing by Alexander Winning and Elaine Hardcastle)

South Africans face more interest rate hike pain as inflation sticks

South African inflation stable but still above central bank objective

<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 19 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand strengthened to a nearly 11-month high early on Wednesday, ahead of local inflation figures and President Cyril Ramaphosa&#8217;s inauguration for a second term.



At 0719 GMT, the rand traded at 17.9575 against the dollar, 0.57% stronger than its previous close. It earlier hit 17.9475 per dollar, a level last seen in late July 2023.



Investors will turn their focus towards Statistics South Africa at 0800 GMT for the release of monthly inflation figures. Economists polled by Reuters predict May year-on-year inflation to come in at 5.2%.



Attention will also be on the capital Pretoria, where Ramaphosa is set to take oath as South Africa&#8217;s president after last month&#8217;s election in which the African National Congress (ANC) lost its majority for the first time since the end of apartheid 30 years ago.



Five political parties have joined the ANC in a government of national unity including the pro-business Democratic Alliance, which is favoured by markets.



On the stock market, the Top-40 index was up 1.3% while the broader all-share index traded 1.2% higher in early trade.



South Africa&#8217;s benchmark 2030 government bond was stronger in early deals, with the yield down 15 basis points to 9.705%.



(Reporting by Bhargav Acharya; editing by Barbara Lewis)

Illustration photo of South African rand

South African rand firms to 11-month high, local inflation in focus

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1305" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-scaled.jpg" alt="" class="wp-image-497865" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-1536x979.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Protestors participate in a demonstration against Kenya&#8217;s proposed finance bill 2024/2025 in Nairobi, Kenya, June 18, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, June 18 (Reuters)&nbsp;&#8211;&nbsp;A Kenyan parliamentary panel recommended on Tuesday that the government scrap some new taxes proposed as part of next year&#8217;s budget, as hundreds of protesters angered by the measures took to the streets in the capital Nairobi.



The tax hikes, including new levies on cars and bread, are the latest effort by President William Ruto&#8217;s administration to boost revenue and reduce borrowing, but they have triggered widespread opposition.



Last year, the government introduced a housing tax and increased contributions to the national health scheme in moves that also sparked protests.



Kimani Kuria, chair of the Kenyan parliament&#8217;s finance committee, said the committee recommended amending the government&#8217;s funding bill for the 2024/25 fiscal year to remove a new tax on car ownership, higher taxes on financial and mobile phone charges and the imposition of value-added tax on bread.



As he spoke, Reuters witnesses saw police fire teargas to disperse hundreds of protesters demonstrating near the parliament building.



&#8220;We can&#8217;t even afford diapers for the kids anymore &#8230; we need this government to do something,&#8221; protester Muthoni Wanjiku told Reuters.



Human rights groups and the country&#8217;s media council, which accredits journalists, accused police officers of using excessive force to stop the protests, including briefly detaining journalists covering them.



Amnesty Kenya said 201 people were arrested during Tuesday&#8217;s demonstrations, including journalists, observers from human rights groups and protesters.



&#8220;We demand the immediate and unconditional release of all arrested protesters and observers. We call on the (police) to uphold its duty to protect and respect the rights of Kenyan citizens to assemble peacefully,&#8221; it said on its X account.



Adamson Bungei, Nairobi County Police Commander, did not answer phone calls seeking comment.



President Ruto told lawmakers from his governing coalition on Tuesday that he was happy &#8220;we are having a conversation about taxes and about debt and about what we need to do about it&#8221;.



Opponents of the latest tax hikes say they could&nbsp;harm Kenya&#8217;s&nbsp;economy.



On Wednesday and Thursday lawmakers will hold a line-by-line debate and vote on the legislation underpinning the budget.



This year&#8217;s finance bill aims to raise an extra 346.7 billion shillings ($2.7 billion) in additional revenue, finance minister Njuguna Ndung&#8217;u said last week.



Some taxes in last year&#8217;s finance law, including the housing levy, are still being challenged in court.



($1 = 128.0000 Kenyan shillings)



(Additional reporting by Jefferson Kahinju; Writing by George Obulutsa and Duncan Miriri; Editing by Alexander Winning, Christina Fincher and Susan Fenton)

Anti-finance bill protesters clash with police in Nairobi

Kenyan parliament panel urges govt to scrap some new taxes as hundreds protest

<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/FVASB46IHROJZMH44F6CQPKGAQ-820x547.jpg" alt="" class="wp-image-497812" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The buildings of the central business district of Plateau are pictured ahead of the presidential elections in Abidjan, Ivory Coast October 27, 2020. Picture taken October 27, 2020. REUTERS/Luc Gnago</figcaption></figure>



ABIDJAN, June 18 (Reuters)&nbsp;&#8211;&nbsp;Ivory Coast expects a more than threefold increase to its oil output by 2027, boosted by recent oil and gas discoveries at the West African nation&#8217;s Baleine and Calao offshore fields, President Alassane Ouattara said on Tuesday.



The world&#8217;s top cocoa-producing nation is hoping to become a major regional oil and gas producer and regional energy hub.



Ouattara told a joint session of parliament that more than $15 billion is expected to be invested in the country&#8217;s oil sector, adding that output would grow to about 200,000 barrels per day (bpd) from 60,000 bpd by 2027.



&#8220;It will be a spectacular leap,&#8221; Ouattara said.



Italy&#8217;s Eni has said it would invest $10 billion in developing the Baleine field, which will take place in three phases from 2023 to 2027.



Certified reserves of the Baleine field, discovered by the Italian energy group in 2021, are estimated at 2.5 billion barrels of oil and 3.3 trillion cubic feet of natural gas.



The group announced its Calao discovery in March, with preliminary assessments indicating potential resources ranging between 1 billion and 1.5 billion barrels of oil.



Ivory Coast&#8217;s economic growth is forecast around 7% between 2024 and 2027, President Alassane Ouattara also said, adding that the country is expected to remain the economic powerhouse of the French-speaking West Africa region.



(Reporting by Loucoumane Coulibaly and Bate Felix; Writing by Anait Miridzhanian; Editing by Kirsten Donovan and David Goodman)

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featured

Bitcoin tumbles back to $60,000 to start the week

South African rand falls, focus on cabinet announcement

Ghana reaches agreement in principle on $13 bln bond rework

S.Africa’s Naspers profit doubles on Tencent, e-commerce performance

Uganda signs deal with UAE to build third international airport

IMF approves over $900 mln to support Tanzania budget, climate change fight

Ghana, bondholders reach agreement in principle to restructure $13 bln debt, sources say

Police fire tear gas, water cannon at anti-tax protesters in Kenya capital

WEEKAHEAD-Kenyan, Ghanaian and Ugandan currencies seen falling

Transnet to appeal against $344 mln Sasol award over tariff dispute

South African rand edges lower, focus on president’s cabinet picks

Bank of England set to hold interest rates despite inflation hitting 2% target

Investors cautiously optimistic S.Africa’s new government can deliver growth-friendly reforms

South African inflation stable but still above central bank objective

South African rand firms to 11-month high, local inflation in focus

Kenyan parliament panel urges govt to scrap some new taxes as hundreds protest

Ivory Coast expects threefold oil output increase by 2027

News Tips

Advertise With Us

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