<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, 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, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><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>



NAIROBI, June 11 (Reuters)&nbsp;&#8211;&nbsp;Kenya has reached a staff level agreement with the International Monetary Fund on Tuesday, the organisation said, paving the way for the disbursement of about $976 million.



The fund said in a statement that if its Executive Board approves a second review of Kenya&#8217;s Resilience and Sustainability Facility, it would have immediate access to $120 million.



The lender also urged the East African nation to adjust its 2024/25 budget to include more revenue raising measures, as a worsening in the primary fiscal balance in the previous financial year and a tax collection shortfall was expected to keep domestic borrowing needs high.



Although Kenya has been facing liquidity challenges since 2022, it managed to sell a new $1.5 billion Eurobond from international markets in February, albeit at a steep price, to partly buy back another Eurobond that is maturing in June.



The issuance assuaged investor concerns about a potential default, restored foreign investors confidence in the economy and caused the shilling currency to strengthen against the dollar.



The fund said fiscal adjustments for 2024/25 could remedy the situation.



&#8220;Authorities have taken decisive steps towards fiscal consolidation by introducing several measures in the context of the draft 2024/25 Budget and the 2024 Finance Bill,&#8221; it added.



The finance minister is due to present the 2024/25 (July-June) budget to parliament on Thursday.



Parliament approved overall spending for the year at 4 trillion shillings ($31 billion), up from the 3.75 trillion shillings the minister presented last June for the 2023/24 year. That budget was later adjusted to 3.85 trillion shillings.



The 2024/25 budget will be accompanied by the Finance Bill 2024, a separate law outlining revenue-raising proposals which some critics say some could cripple sectors including financial services, transport, manufacturing and retail.



Kenya&#8217;s current IMF deal, which is for a total of $3.6 billion, was agreed in April 2021. The current review is the seventh under the program.



Last week, the central bank governor said Kenya will use part of a $1.2 billion World Bank budget support loan to make a payment of roughly $500 million on a Eurobond maturing this month.



($1 = 129.0000 Kenyan shillings)



(Additional reporting by Gursimran Kaur in Bangalore; Editing by Jacqueline Wong and Miral Fahmy)

IMF logo is seen outside the headquarters building in Washington

IMF reaches staff level agreement with Kenya, urges fiscal consolidation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-820x550.jpg" alt="" class="wp-image-495374" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows Tata Steel Port Talbot steel production plant, ahead of its planned transition from blast furnace to electric arc furnaces, at Port Talbot, Wales, Britain, March 11, 2024. REUTERS/Toby Melville/File Photo</figcaption></figure>



LONDON, June 5 (Reuters)&nbsp;&#8211;&nbsp;A group of 10 West African countries has weighed into a debate over whether companies around the world should be allowed to use carbon offsets to cut emissions, arguing they are critical to attracting financing for climate and conservation efforts.



While some scientists and technical advisers have criticised offsets as undermining efforts to rein in climate change by permitting continued greenhouse gas emissions, others see them as a necessary tool to boost crucial finance.



In a letter to the Science-Based Targets initiative (SBTi), the world&#8217;s top corporate climate-target verifier, the 10 countries called on its trustees to ensure offsetting is included within net-zero guidance to companies.



The letter, signed by Burkina Faso, Cape Verde, Ivory Coast, Gambia, Guinea-Bissau, Guinea, Liberia, Mali, Senegal and Togo, said recent reports questioning the validity of offsetting emissions were the work of &#8220;misguided activists&#8221;.



There is growing debate over the ethics and efficacy of offsets, also called carbon credits, to excuse some corporate emissions. Offsets are generated by investing in projects that lower or prevent carbon emissions and can be traded.



On Wednesday, U.N. Secretary-General Antonio Guterres weighed into the fray, warning about &#8220;dubious carbon offsets that erode public trust while doing little or nothing to help the climate.&#8221;



&#8220;We need high integrity carbon markets that are credible and with rules consistent with limiting warming to 1.5 degrees. I also encourage scientists and engineers to focus urgently on carbon dioxide removal and storage – to deal safely and sustainably with final emissions from the heavy industries hardest to clean.&#8221;



The letter&#8217;s main author told Reuters that the lack of certainty in the SBTi&#8217;s guidance was damaging corporate confidence and slowing financing.



&#8220;The SBTi is, rightly or wrongly, the gatekeeper that can unlock finance from corporations around the world that wish to contribute to climate action &#8230; at the same time as (and not instead of) taking action to decarbonise their valuation,&#8221; said Ousmane Fall Sarr, coordinator of the West African Alliance on Carbon Markets and Climate Finance.



The SBTi&#8217;s current guidance only allows very limited use of renewable energy certificates which a company can use to reduce so-called Scope 2 emissions, those related directly to the energy it uses.



But SBTi&#8217;s board of trustees said on April 9 that, subject to certain rules and guidance, it would allow them for Scope 3 emissions, those associated with their supply chains, distribution and product use. This was welcomed by both companies and developing countries that are relying on carbon offset projects to generate cash.



Uncertainty remained, however, because the board had not followed SBTi&#8217;s normal procedure for policy-setting. SBTi has said it is reviewing the scientific research and debating the issue before making a final call.



In a statement to Reuters, it said it welcomed feedback from all stakeholders, and would open a public consultation once its research was complete.



<h2 class="wp-block-heading" id="h-no-alternative">&#8216;NO ALTERNATIVE&#8217;</h2>



The SBTi, formed by a coalition of non-profit organisations, is seen as a key player in global efforts to scale up the market for voluntary carbon credits by addressing quality concerns and ensuring they deliver the benefits they claim.



The United States added momentum on&nbsp;May&nbsp;28 by unveiling its own guidelines for voluntary carbon credits.



In their May 24 letter, the West African countries reminded the SBTi board of its pledge in April, which is still on its website. &#8220;To us, carbon markets is climate finance,&#8221; the letter said. &#8220;There is no alternative. We are at a pivotal moment.&#8221;



With climate financing still far below needed levels, the letter said offset revenues were crucial to supporting poor communities, encouraging conservation, making the transition to clean energy and adapting to the conditions of a warmer world.



The OECD has said poor nations&#8217; actual climate investment needs could total $1 trillion per year by 2025.



Ousmane said the lack of clarity on offsets would also hold up country efforts to calculate and update their national climate plans ahead of the COP29 United Nations climate summit in November in Baku, Azerbaijan.



Countries must update these &#8220;nationally determined contributions&#8221; before next year&#8217;s COP30 summit in Brazil, but are being encouraged to submit them this year.



(Reporting by Virginia Furness in London; Editing by Katy Daigle, Simon Jessop, Alexander Smith and Rod Nickel)

FILE PHOTO: Views of Tata Steel Port Talbot steel production plant in Port Talbot, Wales

West African nations call for firms to be able to offset carbon

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



June 10 (Reuters)&nbsp;&#8211;&nbsp;Emerging market assets fell on Monday with political uncertainties preoccupying investors after a spate of elections, while U.S. inflation reports and Federal Reserve policy decisions topped this week&#8217;s watchlist.



The MSCI EM equities index and the currencies gauge slipped 0.3% each after last week&#8217;s gains. The Chinese stock market was shut due to a public holiday.



At the top of investors&#8217; radar is the Fed&#8217;s rate decision due on Wednesday, with a slew of inflation reports throughout the week further shaping the outlook for policy after last week&#8217;s hot&nbsp;jobs data&nbsp;pointed to a robust U.S. economy.



&#8220;High U.S. rates can also exacerbate capital flight out of EMs in favour of the U.S., which will further tighten local financial conditions. A significant number of EMs will be hoping the Fed starts to cut rates soon,&#8221; said Stuart Cole, head macro economist at Equiti Capital.



Mexico&#8217;s ruling Morena party and its allies won a super-majority in the lower house of Congress but not the Senate,&nbsp;falling just short&nbsp;of the two-thirds majority needed in both houses to change the constitution.



The Mexican peso inched up 0.3% against the dollar in early trade after logging its steepest weekly decline since March 2020.



In Central and Eastern Europe, official results reported by the media showed Polish Prime Minister Donald Tusk&#8217;s Civic Coalition (KO)&nbsp;came first in European Parliament elections.



The zloty was up 0.1% against the euro, which fell sharply on political uncertainty after French President Emmanuel Macron called a snap parliamentary election following his party&#8217;s big losses to the far right in the EU vote.



Hungarian Prime Minister Viktor Orban&#8217;s Fidesz party&nbsp;was on track&nbsp;for its worst result in a national vote in nearly two decades, where a political newcomer trounced all other opposition parties.



The forint fell 0.2%, leading losses among CEE peers, after Hungarian inflation spiked less than expected, keeping rate cut expectations alive.



&#8220;In CEE, the far right were kept in check and did not do as well as in some other EU states&#8230;The far right certainly made gains and are now more of a force to be reckoned with, but they did not do quite as well as had been feared,&#8221; Cole added.



Israeli minister&nbsp;Benny Gantz&nbsp;resigned from Prime Minister Benjamin Netanyahu&#8217;s emergency cabinet, withdrawing the only centrist grouping from the otherwise far-right coalition. While this won&#8217;t pose an immediate threat of a government collapse, it could leave Netanyahu reliant on hardliners, with no end in sight to the Gaza war and a possible escalation in tensions.



Narendra Modi was sworn in as India&#8217;s prime minister for a third term. Stocks were muted after recouping steep losses made on June 4 following a shock election setback.



(Reporting by Ankika Biswas in Bengaluru)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

Emerging markets assets slip after elections, Fed decision in spotlight

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-820x461.jpeg" alt="" class="wp-image-477062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An employee handles one kilogram gold bullions at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023. 
Chalinee Thirasupa | Bloomberg | Getty Images</figcaption></figure>



The gold mining industry is struggling to sustain production growth as deposits of the yellow metal become harder to find, according to the World Gold Council.



“We’ve seen record first quarter mine production in 2024 up 4% year on year. But the bigger picture, I think about mine production is that, effectively, it plateaued around 2016, 2018 and we’ve seen no growth since then,” WGC Chief Market Strategist John Reade said.



According to data from the international trade association, mine production inched up only 0.5% in 2023 compared to a year ago.



In 2022, the growth was 1.35% year on year, the year before it was 2.7%, while in 2020, global gold production logged the first decline in a decade, sliding 1%.



“I think the overwhelming story there is: after 10 years of rapid growth from around 2008, the mining industry is struggling to report sustained growth in production,” said Reade.



New gold deposits are becoming harder to find around the world as many prospective areas have already been explored, he elaborated.



Large-scale gold mining is capital-intensive, and requires significant exploration and development, taking an average of 10 to 20 years before a mine is ready for production, according to WGC.



Even during the exploration process, the likelihood of a discovery progressing into the development of a mine is low, with only about 10% of global gold discoveries containing sufficient metal to warrant mining.



Around 187,000 metric tons of gold has been mined to date, with the majority coming from China, South Africa and Australia. Gold reserves that can be excavated are estimated at around 57,000 tonnes, according to the United States Geological Survey.



Aside from the discovery process, government permits getting harder to secure and requiring more time to come through have made mining more difficult, Reade added. Securing licenses and permits needed before mining companies can start operations can take several years.



Additionally, many mining projects are planned for remote areas that require infrastructure such as roads, power, and water, resulting in added costs in building these mines and financing operations, Reade said.



“It’s getting harder to find gold, permit it, finance it, and operate it,” he said.



Gold prices are taking a breather after rallying to record highs in recent months bolstered by strong demand led by China. Spot gold is currently trading at $2,294.3 per ounce.

107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD

Gold is getting harder to find as miners struggle to excavate more, World Gold Council says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-820x543.jpg" alt="" class="wp-image-494654" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-1536x1017.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Members of the ANC attend the National Executive Committee (NEC) meeting, looking at options to form a new South African government, its Secretary-General Fikile Mbalula said in Boksburg, in the East of Johannesburg, South Africa, June 6, 2024. REUTERS/Siphiwe Sibeko/ File Photo</figcaption></figure>



JOHANNESBURG, June 7 (Reuters)&nbsp;&#8211;&nbsp;South African opposition parties said on Friday they were waiting for more details on a proposal by the African National Congress to form a government of national unity after it lost its majority for the first time in the democratic era.



The former anti-apartheid liberation movement once led by Nelson Mandela has run South Africa since 1994. But voters, angered by years of economic stagnation, high unemployment and corruption, punished it at the ballot box on May 29.



It remains the biggest party. But the lack of an outright majority means it must now share power &#8211; and President Cyril Ramaphosa said on Thursday the ANC leadership had decided that a broad collaboration was the best way forward for South Africa.



The Democratic Alliance (DA), the largest opposition party, said it was open to talks and was &#8220;committed to the process&#8221;.



&#8220;But the broad invitation to all parties &#8230; rather than limiting it to parties committed to our current constitutional dispensation, the rule of law and a social-market economy, has undoubtedly complicated matters,&#8221; spokesperson Werner Horn said.



&#8220;Our negotiation team will &#8230; have further meetings with other parties to listen to their views and reaction,&#8221; Horn added.



The ANC will have 159 of the 400 seats in the new National Assembly. Its nearest rivals are the pro-business, white-led DA, with 87 seats; the populist uMkhonto we Sizwe (MK) led by former President Jacob Zuma, with 58; and the hard-left Economic Freedom Fighters (EFF) with 39.



Ramaphosa said the ANC had already held constructive discussions with the EFF and DA, as well as with the smaller Inkatha Freedom Party (IFP), the National Freedom Party and the Patriotic Alliance.



Zuma&#8217;s MK said it expected to meet with the ANC soon.



During the election campaign, the DA had called any potential ANC tie-up with the EFF or MK a &#8220;doomsday coalition&#8221; that would tank the economy. Both smaller parties advocate nationalising mines and seizing land without compensation.



The EFF said it would not be part of a government involving the DA.



&#8220;We are not desperate for positions in government,&#8221; its deputy leader Floyd Shivambu told a press conference.



The socially conservative IFP, which has its power base among South Africa&#8217;s Zulu people, said it was not averse to the proposal of a national unity government.



&#8220;However, the devil is in the details, which will become clearer in the coming days,&#8221; it said in a statement.



The powerful COSATU trade union group, a major ANC ally, said it would engage with the ANC and another backer Communist Party in the coming days, including on the various &#8220;permutations and modalities&#8221; that would need to be in such a government.



The new parliament has to convene within two weeks of Sunday&#8217;s results declaration and one of its first acts must be to elect the president.



The constitutional deadline, which will fall on or near June 16, is putting pressure on the ANC and others to reach an agreement quickly.



(Additional reporting by Alexander Winning, Bhargav Acharya, Olivia Kumwenda-Mtambo and Siyabonga Sishi; Writing by Joe Bavier; Editing by Andrew Heavens)

South Africa’s ANC meets to decide on preferred partners to govern

South African parties await details of ANC unity government proposal

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="756" height="426" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/Power-lines-Reuters.png" alt="" class="wp-image-494651" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/Power-lines-Reuters.png 756w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/Power-lines-Reuters-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/Power-lines-Reuters-160x90.png 160w" sizes="auto, (max-width: 756px) 100vw, 756px" /></figure>



KAMPALA, June 7 (Reuters)&nbsp;&#8211;&nbsp;Uganda suffered a rare nationwide electricity blackout for several hours on Friday, its state-run power grid operator said, adding that electricity was gradually being restored late in the afternoon.



The grid shutdown happened during the testing a newly completed, Chinese-built $1.5 billion 600 megawatt hydropower plant on the Nile river in the country&#8217;s north, Uganda Electricity Transmission Company Limited (UETCL) said in a post on X platform.



&#8220;Uganda Electricity Transmission Company Limited informs the general public that a national blackout has been registered following a load rejection test at the Karuma hydro power plant,&#8221; the company posted on X on Friday.



In another post about two hours later, it said the grid had been restored partially.



Uganda has an installed power generation capacity of 2,000 MW, according to the energy ministry. It generates more power than it consumes and has been exploring the possibility of exporting the surplus to neighbours like South Sudan and Kenya.



(Reporting by Elias Biryabarema; Editing George Obulutsa, William Maclean)

Power-lines-Reuters

Uganda hit by nationwide blackout for several hours, grid operator says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="566" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-820x566.jpg" alt="" class="wp-image-494648" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-820x566.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-768x530.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-1536x1060.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Sybil Esth, a Sierra Leonean migrant, repatriated from Algeria six months ago, looks on while holding her child in Agadez, Niger, April 23, 2024. REUTERS/Stringer</figcaption></figure>



NAIROBI, June 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s parliament has approved government spending of 4.00 trillion shillings ($31.01 billion) in the fiscal year that starts in July, up from the 3.75 trillion shillings it approved last June for the current fiscal year.



The finance ministry is due to present the final version of the budget next week, with slight variations expected to the proposed amount of spending.



&#8220;This house &#8230; will be approving a budget &#8230; of 4.006 trillion shillings,&#8221; Ndindi Nyoro, chairperson of parliament&#8217;s Budget and Appropriations Committee, said on Thursday ahead of the approval.



The 2024/25 budget will be presented alongside a highly contested piece of draft legislation, the Finance Bill 2024.



The bill proposes tax changes aimed at increasing revenue collection, but critics say it could cripple sectors ranging from financial services and manufacturing to retail.



President William Ruto defends the tax measures as necessary to curb the country&#8217;s reliance on borrowing and fund spending priorities.



($1 = 129.0000 Kenyan shillings)



(Reporting by George Obulutsa; Editing by Alexander Winning)

Migrants wait for their departure to Libya in Agadez

Kenya parliament approves $31 bln government spending next fiscal year

<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 7 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was stronger in early trade on Friday, after the African National Congress (ANC) said it would seek to form a government of national unity after failing to win a majority in last week&#8217;s election.



At 0712 GMT, the rand traded at 18.88 against the dollar&nbsp;ZAR=D3, around 0.6% stronger than its previous close.



ANC leader Cyril Ramaphosa said late on Thursday that the former liberation movement would invite other political parties to form a government of national unity (GNU), a similar arrangement to the one after 1994&#8217;s historic all-race vote that ended apartheid.



The ANC said it had already held constructive talks with parties including the far-left Economic Freedom Fighters (EFF) and pro-business Democratic Alliance (DA).



&#8220;The rand is trading marginally firmer this morning in cautious trade as markets await the exact makeup of the GNU and what parties will be involved,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



&#8220;Trading conditions will remain on the volatile side as traders turn cautious and liquidity dries up a bit.&#8221;



The ANC is expected to brief the media later on Friday on the outcomes of Thursday&#8217;s National Executive Committee meeting.



On Friday the rand could also take its direction from U.S. jobs data.



In domestic economic data, South Africa&#8217;s net foreign reserves rose to $58.287 billion at the end of May, from $57.851 billion in April, central bank data showed.



The benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was firmer in early deals, the yield down 3 basis points to 10.615%.



(Reporting by Tannur Anders; Editing by Alexander Winning)

Illustration photo of South African rand

South African rand gains after ANC says it seeks unity government

<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-2153716937-820x547.jpg" alt="" class="wp-image-494387" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2153716937-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2153716937-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2153716937-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2153716937-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2153716937-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2153716937-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Delegations are being seen at the World Bank Group exhibition booth at The 10th World Water Forum 2024 in Nusa Dua, Bali, Indonesia, on May 23, 2024. The 10th World Water Forum from May 18 to 25, 2024, is serving as a platform for dialogue to create solutions to global water management issues. (Photo by Johanes P. Christo/NurPhoto via Getty Images)</figcaption></figure>



NAIROBI, June 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya plans to use part of a World Bank budget support loan to make a payment of roughly $500 million on a Eurobond maturing this month, its central bank governor said on Thursday.



The East African country sold a $1.5 billion international bond in February at great cost to fund the buyback of a large portion of the $2 billion bond maturing in June.



Before that, investors had feared Kenya might not be able to repay the bond due to its strained public finances.



&#8220;We do expect some disbursements from the World Bank of about $1.2 billion related to the development policy operations. Part of that &#8230; will be used to settle the $500 million of the remaining Eurobond,&#8221; Central Bank of Kenya Governor Kamau Thugge told a news conference.



Asked about a World Bank report that said the government was planning another buyback later this year, Thugge said the bank was still in discussions with the Treasury.



He said the central bank was sticking to its economic growth forecast of 5.7% this year, despite recent flooding, as the services sector was resilient and agriculture performing well.



Kenya&#8217;s economy is estimated to have grown 5.8% in the first quarter of this year, after 2023 growth of 5.6%.



On Wednesday, the central bank held its benchmark lending rate KECBIR=ECI at 13.0%, saying the current stance would ensure that inflation remained stable around the mid-point of its target range in the near term.



In response to a questions about when rates would go down, Thugge said the bank would look at external developments before deciding what direction its benchmark rate would take at the appropriate time.



(Reporting by George Obulutsa; Editing by Alexander Winning)

The 10th World Water Forum In Bali

Kenya to use World Bank loan to make $500 mln bond payment this month

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, June 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank is sticking to its 5.7% economic growth forecast for this year despite recent floods, its governor said on Thursday.



&#8220;Despite the recent flooding in some parts of the country, the economy is expected to remain strong in 2024 supported by the resilient services sector and robust performance of the agricultural sector,&#8221; Governor Kamau Thugge told a news conference.



Thugge added that the&nbsp;East African economy was&nbsp;estimated to have grown 5.8% in the first quarter of this year.&nbsp;Last year the economy grew 5.6%.



On Wednesday the central bank held its benchmark lending rate KECBIR=ECI at 13.0%, saying its current stance would ensure that inflation remained stable around the mid-point of its target range in the near term.



(Reporting by George Obulutsa; Editing by Tomasz Janowski and Alexander Winning)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya’s central bank sticks to 5.7% growth forecast for this year despite floods

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="560" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-820x560.jpg" alt="" class="wp-image-494353" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-820x560.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-300x205.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-768x524.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-1536x1049.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A truck drives amongst workings at the De Beers Voorspoed Diamond mine near Kroonstad, South Africa May 3, 2017. REUTERS/James Oatway/File Photo</figcaption></figure>



JOHANNESBURG, June 6 (Reuters)&nbsp;&#8211;&nbsp;The Botswana government may raise its shareholding in global diamond miner De Beers, President Mokgweetsi Masisi told JCK News, after parent company Anglo American&nbsp;AAL.L&nbsp;said it plans to spin off or sell the business.



The government owns a 15% stake in De Beers and Botswana accounts for 70% of the company&#8217;s annual rough diamond supply.



Anglo outlined a radical review of its business including a sale or divestment of the diamond business to focus on copper, iron ore and a fertilizer project in the UK to fend off a takeover from bigger rival BHP Group BHP.AX .



Masisi told JCK in Las Vegas that Anglo&#8217;s sale of De Beers would be &#8220;the best thing&#8221; if it happens.



The government could raise its shareholding in De Beers &#8220;if it&#8217;s attractive to,&#8221; Masisi told the online diamond news channel. The president in May told CNBC Africa that government would defend its interests in the diamond miner.



Among the plans Anglo could consider is an initial public offering for the diamond business, Reuters reported on May 14, citing sources.



Like other luxury goods, diamond prices have been hammered by a slump in global demand. De Beers has been limiting supply and offering flexibility to contracted customers. In February, Anglo announced a $1.6 billion impairment charge on De Beers. Anglo acquired De Beers in 2011, buying the Oppenheimer family&#8217;s 40% stake for $5.1 billion.



Masisi told JCK News Botswana&#8217;s ideal partner in De Beers would be a long-term investor. The government will try to keep the &#8220;bad guys out&#8221; and wants investors whose vision is aligned with the government&#8217;s.



&#8220;One of the characteristics of a bad owner is someone who has impatient capital,&#8221; Masisi said. &#8220;This industry requires somebody who is in it for the long-haul, because it has its ups and downs.&#8221;



(Reporting by Felix Njini; Additional reporting by Clara Denina. Editing by Jane Merriman)

FILE PHOTO: A truck drives amongst workings at the De Beers Voorspoed Diamond mine near Kroonstad

Botswana may raise De Beers stake as Anglo weighs spin-off

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-820x461.jpeg" alt="" class="wp-image-494337" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Median CEO pay hit $16.3 million in 2023, or nearly 200 times the typical worker’s wages for the year, according to data analyzed for The Associated Press by Equilar.



Typical compensation packages for chief executives who run companies in the S&amp;P 500 rose nearly 13% last year, the AP reports. And roughly two dozen chief executives in the survey saw a pay bump of 50% or more.



Workers, on the other hand, saw wages rise by 5.2% in the last year, just above the rate of inflation, with some of the biggest gains going toward the lowest-paid workers. The median S&amp;P 500 employee earned $81,467 in 2023.



<h2 class="wp-block-heading" id="h-a-widening-ceo-to-worker-pay-gap">A widening CEO-to-worker pay gap</h2>



The CEO-to-worker pay gap grew in the last year as company boards scrambled to keep executives from quitting and businesses fared well in the stock market. In 2022, CEOs made roughly 185 times their typical worker; with the jump in 2023 numbers, CEOs now make roughly 196 times their employees.



The disparity is largely driven by the fact that many top executives are paid based on how well their company performs, and stock awards make up roughly 70% of their total compensation packages.



CEO pay is generally decided on by shareholders, who in the last four years have overwhelmingly voted in support of executive compensation plans, according to Equilar data.



Top bosses haven’t always made so much more than their workforce.



CEO pay has increased by 1,209% since 1978, compared with an 15% bump for the typical worker over this time period, according to the left-leaning Economic Policy Institute.



Typical worker wages have not increased as fast as CEO pay for a number of reasons, says Lawrence Mishel, a distinguished fellow at the EPI: high unemployment, globalization, the erosion of unions, low labor standards, the increase in noncompete clauses and domestic outsourcing, like shifting to a workforce of freelancers. Notably, the Federal Trade Commission recently voted to ban noncompete clauses, which impacts some 30 million American workers, though the move is facing legal action from business groups.



Whether CEOs are overpaid is “really up to shareholders to decide,” says Amit Batish, the senior director of content and communications at Equilar.



“One may argue that paying a CEO adequately is critical to the success of an organization, ensuring long-term stability and growth, particularly during economic downturns,” Batish tells CNBC Make It. If certain performance goals, especially financial growth, aren’t met, shareholders might express their dissatisfaction by cutting compensation.



As it stands now, Batish expects CEO pay to continue to outpace growth in median worker pay but notes that CEO stock compensation isn’t a guarantee — CEOs may not be able to cash in on their stock awards for years, if at all, unless they meet certain targets in their stock value or operating profits. Meanwhile, median employee pay is in cash salaries and bonuses, “making the comparison difficult at times.”



That being said, “the value of stock awards can also appreciate over time, bringing even more value to executives, while the value of cash for employees contends with inflation,” Batish says.



This widening gap could be a reason why Americans are dissatisfied with the economy, says Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies.



“Most of the focus here is on inflation, which people are really feeling, but they’re feeling the pain of inflation more because they’re not seeing their wages go up enough,” Anderson told the AP.



<h2 class="wp-block-heading" id="h-the-highest-paid-ceos"><a></a>The highest-paid CEOs</h2>



The highest-paid CEOs are concentrated in the communication services industry, the consumer defensive industry and health care. The CEO-to-worker pay gap is highest for retailers and other businesses where employees earn lower hourly wages.



The top-paid CEOs in the S&amp;P 500, according to the AP survey, include Hock Tan of Broadcom Inc., with a compensation package valued close to $162 million; William Lansing of Fair Isaac Corp, or FICO ($66.3 million); Tim Cook of Apple Inc. ($63.2 million); Hamid Moghadam of Prologis Inc. ($50.9 million); and Ted Sarandos, co-CEO of Netflix ($49.8 million).



Of the 341 CEOs included in the data, 25 are women. The highest-paid female CEOs include Lisa Su of Advanced Micro Devices ($30.3 million); Mary Barra of General Motors ($27.8 million); and Jane Fraser of Citigroup ($25.5 million).

107402021-1713288153679-gettyimages-648951146-dsc_7546

The typical CEO makes nearly 200 times more than their workers

<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/EYYBONFVFVOUPBL7XNUPPRYTNI-820x547.jpg" alt="" class="wp-image-494333" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: President of the African National Congress (ANC) Cyril Ramaphosa delivers an address to supporters during the political party’s final rally ahead of the upcoming election at FNB stadium in Johannesburg, South Africa, May 25, 2024. REUTERS/Alaister Russell/File Photo</figcaption></figure>



JOHANNESBURG, June 6 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand made a slight recovery early on Thursday, having slipped the day before when the African National Congress (ANC) said it would try to form a government of national unity following last week&#8217;s election.



At 0715 GMT, the rand traded at 18.90 against the dollar&nbsp;ZAR=D3, 0.2% stronger than its previous close.



The ANC lost its majority in the May 29 election for the first time since coming to power 30 years ago. It said on Wednesday that it had met with all interested parties keen to contribute ideas to form a government.



The party&#8217;s National Executive Committee will hold high-stakes internal talks later on Thursday to discuss options.



&#8220;Traders are likely to remain on edge until there is some certainty on the way forward, and we expect trading in the Rand to be fairly volatile and headline-driven in the short term,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index was up 0.1% in early trade.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was stronger in early trade, with the yield down 12 basis points at 10.610%.



(Reporting by Bhargav Acharya; Editing by Christina Fincher)

FILE PHOTO: President of the ANC Cyril Ramaphosa attends a rally ahead of the upcoming election at FNB stadium in Johannesburg

South African rand edges higher with focus on ANC talks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-820x536.jpg" alt="" class="wp-image-494166" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows the logo of South Africa&#8217;s central reserve bank, at the reserve bank offices in Pretoria, South Africa, January 26, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, June 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank said on Wednesday it expected the country&#8217;s financial system to remain resilient despite risks from worldwide elections, persistent geo-political tensions and weak domestic market conditions.



With more than 70 countries going to the polls this year &#8211; among them South Africa last month &#8211; the South African Reserve Bank said the possible changes in policy that might result had heightened market volatility.



The governing African National Congress (ANC) lost its majority for the first time in three decades in national and provincial elections on May 29.



The ANC said on Wednesday that it was leaning towards a government of national unity with several parties, which last happened at the fall of apartheid in 1994.



The rand has traded erratically since last week as news of the election outcomes filtered through to investors.



At 1331 GMT, the rand traded at 18.89 against the dollar ZAR=D3, around 0.9% weaker than its previous close after a press conference by the ANC where the party discussed its future path.



The party has held discussions with the business friendly Democratic Alliance and radical left Economic Freedom Fighters, among others.



The central bank said in the first edition of its Financial Stability Review, the biannual health check of the financial system, that high exposure to government debt and the weak fiscal position overall, undermined market resilience.



Steady progress had been made to strengthen the domestic financial safety net through the introduction of deposit insurance and a broader financial sector stress-test which included banks and insurance companies, the central bank said.



Globally, geo-political tensions and stickier inflation meant some economies were experiencing divergent recoveries, increasing market volatility.



Despite these risks, the central bank said it expected the financial system to remain resilient over the forecast period to May 2025.



(Reporting by Kopano Gumbi; Editing by Tannur Anders and Philippa Fletcher)

South Africa trims rate hikes as power cuts slash growth prospects

South Africa’s financial system stable despite headwinds, central bank says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="555" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-820x555.jpg" alt="" class="wp-image-494118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-1536x1039.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s President William Ruto delivers a national statement at the World Climate Action Summit during the United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates, December 1, 2023. REUTERS/Thaier Al Sudani/File Photo</figcaption></figure>



NAIROBI, June 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya plans to carry out another Eurobond buyback this year, which would bring the total amount of debt it has bought back in 2024 to about $2.5 billion, the World Bank said.



In February, Kenya&#8217;s government said it would buy back more than $1.4 billion of its $2 billion Eurobond maturing in June via a tender offer launched that month for a new bond.



The government&nbsp;said at the time&nbsp;the new bond would amortise in three equal instalments in 2029, 2030 and 2031, giving a weighted average tenure of six years.



It means that, by the end of June, Kenya will have to pay another $557 million to clear the $2 billion Eurobond.



The World Bank said Kenya&#8217;s government would have to be proactive in its liability management and focus on concessional borrowing to reduce its interest costs and amortisation pressure, especially between 2028 and 2031, to forestall future liquidity squeezes.



&#8220;To this end, the GoK (government) is considering another Eurobond buyback in 2024, bringing the total 2024 buyback



to approximately $2.5 billion, smoothing the amortisation profile&#8230;&#8221; the World Bank said in a report released last week after approving a&nbsp;$1.2 billion loan&nbsp;for Kenya.



&#8220;In addition, the GoK is considering liability management by leveraging sustainability instruments like debt swaps and sustainability-linked bonds.&#8221;



The shilling and stocks on the Kenyan bourse rallied in February, helped by increased confidence after the government sold the new&nbsp;Eurobond.



In a separate economic update on Kenya released on Wednesday, the bank forecast the economy would expand 5% this year after growing 5.6% in 2023.



(Reporting by George Obulutsa; Editing by Christina Fincher)

MZUR3KWFJZK6VCE3ZP6JUOG6AM

Kenya plans second Eurobond buyback in 2024, World Bank 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/DILFJA7KOJJ4VATMVNSVVR47UU-820x547.jpg" alt="" class="wp-image-494062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Mauritanian President Mohamed Ould Cheikh El Ghazouani speaks as South Korean President Yoon Suk Yeol looks on during a joint news conference during 2024 Korea-Africa Summit in Goyang, South Korea, June 4, 2024. REUTERS/Kim Hong-Ji</figcaption></figure>



SEOUL, June 5 (Reuters)&nbsp;&#8211;&nbsp;Nearly 50 deals and agreements have been signed during South Korea&#8217;s first summit with leaders from 48 African countries to cooperate in areas such as mining, energy and manufacturing, South Korea&#8217;s industry ministry said on Wednesday.



Hyosung Corp&nbsp;004800.KS, a South Korean conglomerate, signed a contract to supply electric transformers to Mozambique worth $30 million, the ministry said in a statement.



The industry ministry also signed agreements to cooperate on critical minerals with Madagascar and Tanzania in order to secure supplies for industries such as batteries, it said.



The 47 agreements with 23 African countries were made during the summit as Asia&#8217;s fourth-largest economy seeks to tap the minerals and the vast export market in Africa.



&#8220;Despite its enormous potential, Africa still accounts for only 1-2% of South Korea&#8217;s trade and investment..,&#8221; South Korean President Yoon Suk Yeol told a gathering of about 200 political and industry leaders from African countries and South Korea at a business summit on Wednesday.



&#8220;My hope is that mutually beneficial resource cooperation will be expanded,&#8221; Yoon said.



Yoon pledged on Tuesday that South Korea would increase development aid for Africa to $10 billion over the next six years, and said will offer $14 billion in export financing to promote trade and investment for South Korean companies in Africa.



(Reporting by Joyce Lee; Editing by Ed Davies)

Mauritanian President Mohamed Ould Cheikh El Ghazouani speaks as South Korean President Yoon Suk Yeol looks on during a joint news conference during 2024 Korea-Africa Summit in Goyang

South Korea, African countries sign agreements on minerals, exports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, 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, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><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>



LUSAKA, June 4 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) said on Tuesday that Zambia&#8217;s government had asked for its $1.3 billion loan programme to be increased to $1.7 billion to help it respond to a severe drought.



The IMF also said in a statement that it had reached a staff-level agreement on the third review of the southern African country&#8217;s Extended Credit Facility.



Once the latest review is approved by IMF&#8217;s executive board at a meeting expected by the end of June, Zambia will have access to roughly $573 million, the fourth disbursement under the facility.



Zambia is one of a handful of African countries grappling with a drought induced by the El Niño weather phenomenon that has plunged parts of the region into hunger.



The copper-rich country is close to emerging from a debt-restructuring process beset by delays after more than three and a half years.



Zambia&#8217;s finance ministry said last week that more than 90% of holders of its $3 billion in outstanding international bonds had accepted a restructuring proposal.



Finance Minister Situmbeko Musokotwane said the staff-level agreement announced on Tuesday was &#8220;testament to Zambia&#8217;s determination to rebuild macroeconomic and debt sustainability&#8221; and its efforts to finalise restructuring talks within the parameters of its IMF programme.



(Reporting by Chris Mfula in Lusaka and Karin Strohecker in London; Writing by Bhargav Acharya; Editing by Alexander Winning and Ros Russell)

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featured

IMF reaches staff level agreement with Kenya, urges fiscal consolidation

West African nations call for firms to be able to offset carbon

Emerging markets assets slip after elections, Fed decision in spotlight

Gold is getting harder to find as miners struggle to excavate more, World Gold Council says

South African parties await details of ANC unity government proposal

Uganda hit by nationwide blackout for several hours, grid operator says

Kenya parliament approves $31 bln government spending next fiscal year

South African rand gains after ANC says it seeks unity government

Kenya to use World Bank loan to make $500 mln bond payment this month

Kenya’s central bank sticks to 5.7% growth forecast for this year despite floods

Botswana may raise De Beers stake as Anglo weighs spin-off

The typical CEO makes nearly 200 times more than their workers

South African rand edges higher with focus on ANC talks

South Africa’s financial system stable despite headwinds, central bank says

Kenya plans second Eurobond buyback in 2024, World Bank says

South Korea, African countries sign agreements on minerals, exports

Zambia asks for IMF loan to be increased to $1.7 billion

News Tips

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