<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)

IMF logo is seen outside the headquarters building in Washington

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

<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. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



PRETORIA, June 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s economy recorded a small contraction in the first quarter of 2024, statistics agency data showed on Tuesday, hurt by a slump in the mining and construction sectors.



Gross domestic product shrank 0.1% in quarter-on-quarter seasonally-adjusted terms. Economists polled by Reuters had expected growth of 0.1%.



On a year-on-year basis the economy grew 0.5%&nbsp;ZAGDPY=ECI&nbsp;compared to economists&#8217; prediction for 0.6% growth.



The South African economy has stagnated over the last decade with rolling power cuts, high unemployment, and port and rail inefficiencies dragging down growth.



Six out of 10 industries tracked by Statistics South Africa contracted in the first three months of the year, led by construction and mining which declined 3.1% and 2.3% respectively.



A bleak backdrop for consumer spending also made a dent in first-quarter growth, as final consumption expenditure contracted 0.3%.



The South African central bank sees GDP growth of 1.2% this year, saying late last month that it expected a better second-quarter performance.



But the outlook has been muddied by last week&#8217;s election in which the African National Congress&nbsp;lost its majority&nbsp;for the first time in 30 years and must now seek one or more coalition partners to govern the country.



&#8220;The unexpected election results mean that things have become even more uncertain, and all bets are off,&#8221; Jee-A van der Linde, a senior economist at Oxford Economics Africa, said in a research note. &#8220;A business-friendly coalition outcome would improve confidence and should unlock fresh investment that could give the economy legs to run from the second half of 2024.&#8221;



(Reporting by Kopano Gumbi; Additional reporting by Bhargav Acharya in Johannesburg; Editing by Alexander Winning and Christina Fincher)

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

South African economy unexpectedly contracts in first quarter

<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-2019589029-820x547.jpg" alt="" class="wp-image-493806" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Duncan Pieterse, director general of the National Treasury, during a news conference ahead of the budget presentation in Cape Town, South Africa, on Wednesday, Feb. 21, 2024. South African Finance minister Enoch Godongwana will table his annual budget on Wednesday in the lead up to elections that opinion polls show will deprive the ruling African National Congress of a parliamentary majority for the first time in three decades. Photographer: Dwayne Senior/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, June 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s National Treasury intends to stick to a balanced fiscal stance under a coalition government, its director-general said on Tuesday, after the African National Congress&nbsp;(ANC)&nbsp;lost its majority in last week&#8217;s election.



&#8220;I think that our fiscal strategy is achievable, even in a coalition environment&#8230; because it&#8217;s quite balanced,&#8221; Duncan Pieterse told Reuters in an interview.



The ANC has up to two weeks to agree a coalition pact or another form of power-sharing arrangement with other political parties, after its share of the vote dropped below 50% for the first time in the post-apartheid era.



&#8220;A balanced macro-fiscal stance becomes more defensible in an uncertain political environment. And we intend to continue managing the fiscal stance along those lines,&#8221; Pieterse said.



The ANC&#8217;s potential partners diverge widely, from the free-marketeer Democratic Alliance (DA) to the more radical uMkhonto we Sizwe (MK) and the Economic Freedom Fighters (EFF), parties that advocate nationalising mines and banks and redistributing land.



South African markets rallied on Monday as investors bet on the ANC opting for a coalition including the DA rather than one involving MK or the EFF.



(Reporting by Kopano Gumbi; Writing by Alexander Winning; Editing by Joe Bavier)

South Africa’s Finance Minister Enoch Godongwana Presents Budget

South Africa’s fiscal stance to stay balanced under coalition, Treasury says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-820x551.jpg" alt="" class="wp-image-493790" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-1536x1033.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Korean President Yoon Suk-yeol attends a press conference marking two years in office, at the Presidential Office in Seoul, South Korea, May 9, 2024. SONG KYUNG-SEOK/Pool via REUTERS</figcaption></figure>



SEOUL, June 4 (Reuters)&nbsp;&#8211;&nbsp;South Korean President Yoon Suk Yeol said on Tuesday the country will step up cooperation with African nations to secure a stable supply of critical minerals and speed up negotiations to promote economic partnerships and trade.



Hosting a first-ever summit with the leaders of 48 African countries, Yoon said South Korea will increase development aid for Africa to $10 billion over the next six years as it looks to tap the continent&#8217;s rich mineral resources and potential as a vast export market.



&#8220;We will seek sustainable ways to work together on issues directly related to future growth, such as stable supplies of key minerals and digital transformation,&#8221; Yoon said in his opening remarks.



He also pledged to offer $14 billion in export financing to promote trade and investment for South Korean companies in African countries.



South Korea is one of the world&#8217;s largest energy buyers and is home to leading semiconductor producers. It is also home to the world&#8217;s fifth-largest automaker Hyundai Motor Group, which is making a push for electrification.



Partnering with Africa, which has 30% of the world&#8217;s reserves of critical minerals including chrome, cobalt and manganese is crucial, Yoon&#8217;s office has said.



At least 30 heads of state are attending the summit, with delegations from 48 countries participating. Yoon and the chair of the African Union, Mauritania President Mohamed Ould Ghazouani, are due to issue a joint statement, Yoon&#8217;s office said.



Yoon proposed &#8220;shared growth&#8221; as a pillar of cooperation with the continent and stressed the need to establish a framework to promote trade and exchange, vowing to speed up talks for economic partnership agreements and trade and investment promotion frameworks.



By reaching out with offers to help with industrial infrastructure and digital transformation, South Korea is trying to tap into a vast and fast-growing market that is home to 1.4 billion people, the majority of whom are 25 or younger.



Park Jong-dae, a former South Korean ambassador to South Africa and Uganda, argued Western and Chinese models of development had failed African nations, and South Korea offered a valuable alternative path.



&#8220;The essence of Korean model of development cooperation is human development, and about management, rather than about provision of assistance per se,&#8221; he said.



&#8220;Korea has the experience and knowhow of development &#8230; while many African countries have immense possibilities for development based on yet to be explored, untapped resources and endowment, and dynamic young population,&#8221; he said.



On Wednesday, South Korean business leaders will host a business summit focused on investment, industrial development and food security.



Yoon will continue separate meetings with visiting leaders.



(Reporting by Jack Kim, Hyonhee Shin, Josh Smith and Hyunsu Yim; Editing by Jamie Freed)

South Korean President Yoon Suk-yeol attends a press conference marking two years in office, in Seoul

South Korea’s Yoon calls for greater cooperation with Africa on minerals, trade

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-820x546.jpg" alt="" class="wp-image-493635" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">MIDRAND, SOUTH AFRICA &#8211; JUNE 02: Displays during the announcement of the final result at the National Result Operation Centre (ROC) at Gallagher Estate on June 02, 2024 in Midrand, South Africa. South Africans voted in the country&#8217;s seventh democratic general elections to elect a new National Assembly as well as the provincial legislature in each of the nine provinces. (Photo by Sydney Seshibedi/Gallo Images via Getty Images)</figcaption></figure>



JOHANNESBURG, June 3 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand, stocks and government bonds gained on Monday, as investors bet on the prospect of the African National Congress (ANC) striking a coalition deal with a market-friendly party after failing to get a majority in last week&#8217;s election.



The assets tumbled last week on worries of a tie-up with the more radical parties like the far-left Economic Freedom Fighters (EFF) or former president Jacob Zuma&#8217;s uMkhonto we Sizwe (MK), compared to a coalition that brings in the pro-business Democratic Alliance (DA).



Financial and political analysts said on Monday the chances of an ANC-DA pact were higher than one involving MK or EFF.



&#8220;The most likely result of South Africa&#8217;s May 29 election is a deal between the ruling African National Congress and the centrist Democratic Alliance, which would keep key economic policies unchanged and slightly improve the country&#8217;s fiscal and growth outlook,&#8221; BMI analysts said in a research note.



The ANC got 40.2% of the vote last week, with the DA coming second at 21.8%, MK third at 14.6% and the EFF fourth at 9.5%.



At 1351 GMT, the rand traded at 18.6225 against the U.S. dollar&nbsp;ZAR=D3, up around 0.8% from Friday&#8217;s close.



On the Johannesburg Stock Exchange, the Top-40 index&nbsp;.JTOPI&nbsp;was up about 1.4%. The yield on the benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;fell 10.5 basis points to 10.595%, reflecting a stronger price.



Johann Els, chief economist at investment group Old Mutual, said markets would view a coalition between the ANC, DA and the socially conservative Inkatha Freedom Party (IFP) favourably due to &#8220;the promise of more policy reform, stronger implementation, and a firm stance against corruption&#8221;.



The IFP got 3.9% of the vote in the election.



Els cautioned that markets were likely to remain volatile over the coming weeks and that a negative coalition outcome would spark a selloff.



Local media have reported that the DA could be open to entering a cooperation pact with the ANC, supporting it in key decisions in exchange for top jobs in parliament.



Political parties have two weeks to work out a deal before the new parliament sits and chooses a president, still likely to be ANC leader Cyril Ramaphosa since the party remains the biggest force.



(Editing by Alexander Winning and Sriraj Kalluvila)

Atmosphere At The National Results Operations Centre At Gallagher Estate On Day 04 In South Africa

South African assets gain on rising hopes of market-friendly coalition

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-820x615.jpg" alt="" class="wp-image-493619" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A member of the Nigeria Labour Congress dances in front of the domestic airport which has been shut down as Nigeria&#8217;s main labour unions called for an indefinite strike from Monday after failing to agree to a new minimum wage with the government, in Lagos, Nigeria. June 3, 2024.REUTERS/Seun Sanni</figcaption></figure>



LAGOS/ABUJA, June 3 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s main labour unions on Monday shut down the national grid and disrupted airline operations across the country as they began an indefinite strike over the government&#8217;s failure to agree a new minimum wage.



This strike is the fourth embarked upon by the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), two of the country&#8217;s biggest unions, since President Bola Tinubu took office last year.



The Transmission Company of Nigeria (TCN) said union members drove away operators at the country&#8217;s power control rooms and shut down at least six substations, which eventually shut the national grid at 02:19 am (0119 GMT).



Nigerian airline Ibom Air said it was suspending flights until further notice due to the strike, while another, United Nigeria, said airports across the country have been shut down and that striking workers had permitted none of its flights to operate.



Electricity and aviation unions said in a statement on Monday they had directed their workers to withdraw their services in compliance with the indefinite strike.



Since taking office Tinubu has embarked on Nigeria&#8217;s boldest reforms, which has fuelled a rise in inflation to an almost 30-year high and worsened a cost-of-living crisis in Africa&#8217;s most populous nation.



He has been under pressure from unions to offer relief to households and small businesses after scrapping subsidies on petrol, which kept fuel cheap but cost the government $10 billion last year.



Unions declared an indefinite strike on Friday after talks for a new minimum wage meant to cushion the impact of reforms collapsed. They said the strike would last until a new minimum wage was in place.



The TCN said it was making effort to recover and stabilize the national grid, but unions were obstructing grid recovery nationwide.



Unions have also demanded a reversal of an electricity tariff hike effected last month for better-off consumers who use the most power, as the government tries to wean the economy off subsidies.



On Thursday, Nigeria&#8217;s privatisation body said the country had secured a World Bank loan of $500 million for its electricity sector.



(Writing by Chijioke Ohuocha; Editing by David Goodman and Jan Harvey)

Nigerian unions shut down power grid, disrupt airlines with strike over minimum wage

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="526" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-820x526.jpg" alt="" class="wp-image-493604" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-1536x985.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A delegate looks on as South Africa&#8217;s governing African National Congress (ANC) holds a national policy conference at the Nasrec Expo Centre in Johannesburg, South Africa.
REUTERS/Siphiwe Sibeko</figcaption></figure>



LONDON, June 3 (Reuters) &#8211; A &#8220;less coherent&#8221; South African government after elections that cost the ruling African National Congress its majority for the first time since the end of Apartheid could threaten the country&#8217;s credit rating outlook, rating agency Scope said on Monday.



The ANC won just over 40% of last week&#8217;s vote, its worst showing since it took power 30 years ago. The government of Cyril Ramaphosa will now have to share power, likely with a major political rival.



&#8220;A less coherent government and specifically any further impairment of economic and/or fiscal challenges might place at risk the stable outlook assigned to the ratings,&#8221; Scope said in a report.



Scope added that regardless of the final government formed, decision making and governance in South Africa are likely to get more complicated.



Scope is next scheduled to review South Africa&#8217;s credit ratings by Sept.&nbsp;13. It has currently assigned a BB rating to South Africa, with a stable outlook.



The next government faces a slate of unenviable challenges, from crime, corruption and unemployment to record power shortages.



The focus is now on which party forms a coalition with the ANC; investors are worried about the ramifications of an alliance with the far-left Economic Freedom Fighters (EFF),or the uMkhonto we Sizwe (MK), while most would prefer the white-led, pro-business Democratic Alliance (DA).



Separately, Moody&#8217;s said a coalition government could complicate the execution of fiscal, economic and social policies that would help address the country&#8217;s structural credit weaknesses.



(Reporting By Libby George; Editing by Amanda Cooper and Hugh Lawson)

South Africa’s ANC party holds national policy conference

“Less coherent” South African govt could threaten ratings outlook – Scope

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-820x524.jpg" alt="" class="wp-image-493524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-1536x982.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Korean President Yoon Suk Yeol at a recent meeting in the Blue House in Seoul, South Korea, 27 May 2024. JEON HEON-KYUN/Pool via REUTERS/File Photo</figcaption></figure>



SEOUL, June 3 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s rich mineral resources and its potential as a vast export market are at the top of South Korea&#8217;s agenda as it hosts a summit with the leaders of 48 nations this week with plans for aid on industrial infrastructure and digital transformation.



Africa is a &#8220;crucial partner&#8221; for South Korea to further its industrial advances and &#8220;cooperation with Africa is not a choice but a necessity&#8221;, President Yoon Suk Yeol&#8217;s deputy national security adviser Kim Tae-hyo said.



At least 30 heads of state are attending the summit on Tuesday, with delegations from 48 countries participating. Yoon and the chair of African Union, President Mohamed Ould Ghazouani of Mauritania, will issue a joint statement, Yoon&#8217;s office said.



On Wednesday, South Korean business leaders will host a business summit focused on investment, industrial development and food security.



&#8220;Africa&#8217;s strategic importance has never been greater,&#8221; Kim said.



South Korea is one of the world&#8217;s largest energy buyers and is home to leading semiconductor producers and the world&#8217;s fifth largest automaker making a push for electrification. Partnership with Africa with 30% of the world&#8217;s critical mineral including chrome, cobalt and manganese is crucial, Yoon&#8217;s office said.



Since Friday, Yoon has held meetings with the leaders of Sierra Leone, Tanzania and Ethiopia and is scheduled to meet separately the heads of other states including Zimbabwe, Togo, Rwanda and Mozambique on Monday.



Tanzania said it would borrow $2.5 billion over the next five years from South Korea through concessional loans, while Ethiopia signed a $1 billion financing deal over four years for infrastructure, science and technology, health and urban development.



By reaching out with offers to help with industrial infrastructure and digital transformation, South Korea is trying to tap into a vast and fast-growing market that is home to 1.4 billion people, the majority of whom are 25 or younger.



Agreements aimed at laying the groundwork for trade and investment are expected to be signed with several countries, which will help establish the administrative foundation for freer trade and advanced customs management, Kim said.



Aid on agricultural technology and plans for cooperation on climate change responses are also on the agenda.



(Reporting by Jack Kim; Additional reporting by Hyonhee Shin; Editing by Gerry Doyle)

FILE PHOTO: FILE PHOTO: South Korean President Yoon Suk Yeol

South Korea’s Yoon hosts Africa summit to tap minerals, vast export market

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-820x545.jpg" alt="" class="wp-image-493571" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-1536x1021.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows the Tetra Pak factory floor in Durban, South Africa, April 4, 2024. REUTERS/Rogan Ward/File Photo</figcaption></figure>



JOHANNESBURG, June 3 (Reuters)&nbsp;&#8211;&nbsp;South African manufacturing activity slumped in May, a Purchasing Managers&#8217; Index (PMI) survey showed on Monday, with respondents citing uncertainty linked to last week&#8217;s election and sluggish demand.



Wednesday&#8217;s vote saw the African National Congress lose its outright majority for the first time in 30 years, meaning it must now share power for the first time in the country&#8217;s post-apartheid history.



The seasonally-adjusted PMI for the factory sector dropped to 43.8 points in May from 54.0 in April, falling below the 50-point mark that separates expansion from contraction.



&#8220;Numerous respondents said that orders were put on hold as clients waited for the election results,&#8221; local bank Absa, which sponsors the survey, said in a statement.



&#8220;The PMI has been in contractionary territory for three out of five months this year, as the manufacturing sector seems volatile in an election year.&#8221;



(Reporting by Alexander Winning; Editing by Bate Felix)

A general view of the Tetra Pak factory floor in Durban

South African factory activity slumps in May on election uncertainty – Absa PMI

<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 3 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was slightly stronger early on Monday, with analysts expecting coalition negotiations to be the main driver this week, after the African National Congress (ANC) failed to secure a majority for the first time in 30 years last week.



At 0810 GMT, the domestic currency traded at 18.7325 against the U.S. dollar&nbsp;ZAR=D3, up more than 0.2% from Friday.



The ANC got 40.2% of the vote on Wednesday, its worst election showing of the democratic era, which means that it will have to strike an agreement with one or more smaller parties to govern, an unprecedented prospect in the country&#8217;s post-apartheid history.



The prospect of an ANC tie-up with more radical parties like the far-left Economic Freedom Fighters (EFF) or former president Jacob Zuma&#8217;s uMkhonto we Sizwe (MK) has rattled investors, who would prefer a coalition that brings in the pro-business Democratic Alliance (DA).



&#8220;The rand has staged a recovery from its lows and appears to be unwinding some of the risk&#8230; priced in that the ANC would automatically default to forming an alliance with Zuma&#8217;s MK party or &#8230; (the) EFF,&#8221; ETM Analytics said in a note.



&#8220;Investors increasingly realise that the more responsible and productive alliance would likely be between the ANC and the DA.&#8221;



Local media have reported that the DA could be open to entering a cooperation pact with the ANC, supporting it in key decisions in exchange for top jobs in parliament.



Political parties have two weeks to work out a deal before the new parliament sits and chooses a president, who would likely still be ANC leader Cyril Ramaphosa, since the ANC remains the biggest force.



On the Johannesburg Stock Exchange, the Top-40 index&nbsp;.JTOPI&nbsp;was up roughly 1.2% in early trade. The benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was firmer, while the yield fell 10 basis points to 10.6%.



(Reporting by Alexander Winning; Editing by Rashmi Aich)

Illustration photo of South African rand

South African rand edges higher; focus on coalition negotiations this week

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-820x543.jpg" alt="" class="wp-image-493557" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-1536x1018.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Korean President Yoon Suk-yeol speaks during an inaugural dinner at a hotel in Seoul, South Korea, May 10, 2022. Jeon Heon-Kyun/Pool via REUTERS</figcaption></figure>



DAR ES SALAAM, June 3 (Reuters)&nbsp;&#8211;&nbsp;Tanzania and Ethiopia said they had signed accords with&nbsp;South Korea for loans of billions of dollars, part of broader deals that will give the Asian nation access to Africa&#8217;s crucial mineral resources and vast export market.



South Korea is hosting at least 30 heads of state, including Tanzania and Ethiopia, at a South Korea-Africa summit this week.



Tanzania said it will borrow $2.5 billion over the next five years from South Korea through concessional loans.



The East African country also signed two accords on Korean use of its ocean resources and minerals used in clean energy technologies such as nickel, lithium and graphite, presidential spokesperson Zuhura Yunus said on Sunday.



Ethiopia, a fast-growing economy with 126 million people, signed a $1 billion financing deal over four years for infrastructure, science and technology, health and urban development, the state-affiliated Fana media outlet said.



Tanzanian President Samia Suluhu Hassan is also seeking cooperation in sectors including sustainable use of ocean resources, development of natural gas deposits and creative industries, and for Tanzania to supply labour to South Korea, according to Yunus.



Since Friday, South Korean President Yoon Suk Yeol has held meetings with the leaders of Sierra Leone, Tanzania and Ethiopia and was due to meet separately with heads of other states including Zimbabwe, Togo, Rwanda and Mozambique on Monday.



(Reporting by Nuzulack Dausen; editing by Hereward Holland, Mrigank Dhaniwala and Mark Heinrich)

FILE PHOTO: U.S. Vice President Kamala Harris meets with Tanzania’s President Samia Suluhu Hassan inside the Eisenhower Executive Office Building at the White House in Washington

South Korea agrees to lend billions to Tanzania, Ethiopia

<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/LXWOJWTALZJ6NEFM2DKAKL3EUU-820x547.jpg" alt="" class="wp-image-493501" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/LXWOJWTALZJ6NEFM2DKAKL3EUU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/LXWOJWTALZJ6NEFM2DKAKL3EUU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/LXWOJWTALZJ6NEFM2DKAKL3EUU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/LXWOJWTALZJ6NEFM2DKAKL3EUU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/LXWOJWTALZJ6NEFM2DKAKL3EUU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/LXWOJWTALZJ6NEFM2DKAKL3EUU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Cyril Ramaphosa, Midrand, June 2, 2024. REUTERS/Ihsaan Haffejee</figcaption></figure>



JOHANNESBURG, June 2 (Reuters)&nbsp;&#8211;&nbsp;President Cyril Ramaphosa called on South Africa&#8217;s political parties to work together for the good of the country as final results from last week&#8217;s election confirmed his African National Congress had lost its majority for the first time.



The result, announced on Sunday, is the worst election showing for the ANC &#8211; Africa&#8217;s oldest liberation movement, once led by Nelson Mandela &#8211; since it came to power 30 years ago, ending white minority rule.



Voters, angry at joblessness, inequality and rolling blackouts, slashed support for the ANC to 40.2%, down from 57.5% in the previous 2019 parliamentary vote.



Official results showed the ANC winning 159 seats in the 400-seat National Assembly, down from 230 previously.



The result means that the ANC must now share power, likely with a major political rival, in order to keep it &#8211; an unprecedented prospect in South Africa&#8217;s post-apartheid history.



&#8220;South Africans expect the parties for which they have voted to find common ground, overcome their differences and act together for the good of everyone. That&#8217;s what South Africans have said,&#8221; Ramaphosa said after the electoral commission announced the final results.



He called the election a &#8220;victory for our democracy.&#8221;



Political parties now have two weeks to work out a deal before the new parliament sits to choose a president, who would likely still hail from the ANC, since it remains the biggest force.



&#8220;This is the time for all of us to put South Africa first,&#8221; Ramaphosa said.



ANC officials earlier on Sunday said the party was humbled by the result and had &#8220;nothing to celebrate&#8221; but stood by Ramaphosa, once Mandela&#8217;s lead negotiator to end apartheid, and said they would not bend to pressure for him to step down.



The poor showing has fuelled speculation that Ramaphosa&#8217;s days might be numbered, either due to the demands of a prospective coalition partner or as a result of an internal leadership challenge.



&#8220;That is a no-go area,&#8221; Fikile Mbalula, the ANC&#8217;s secretary general, told a press briefing, the party&#8217;s first since the polls.



&#8220;Did we commit mistakes? Yes, we did. In governance and everywhere else,&#8221; he said, adding that the ANC was now committed to forming a government &#8220;that&nbsp;is stable and that is able to govern effectively&#8221;.



The ANC&#8217;s leadership will meet on Tuesday to plot the path forward.



COSATU &#8211; South Africa&#8217;s largest trade union group and a major ANC ally &#8211; also rallied behind Ramaphosa.



&#8220;What&#8217;s key is that a coalition be led by the ANC and President Ramaphosa,&#8221; COSATU spokesman Matthew Parks said.



<h2 class="wp-block-heading" id="h-doomsday-coalition">&#8216;DOOMSDAY COALITION&#8217;</h2>



Before Wednesday&#8217;s vote,&nbsp;the ANC had won every national election by a landslide since 1994, but over the last decade its support has waned.



The main opposition party, the white-led, pro-business Democratic Alliance (DA), received 21.8% of votes.



uMkhonto we Sizwe (MK) &#8211; &#8220;spear of the nation&#8221; in the Zulu language &#8211; a new party led by former President Jacob Zuma named after the ANC&#8217;s former armed wing, managed to take 14.6%, doing most of the damage to the ANC.



Despite doing better than expected, MK said it was considering challenging the results in court.



The far-left Economic Freedom Fighters (EFF), led by former ANC youth leader Julius Malema, got 9.5%.



The prospect of an ANC tie-up with either the EFF or MK has rattled South Africa&#8217;s business community and international investors, who would prefer a coalition that brings in the DA.



DA leader John Steenhuisen said on the party&#8217;s YouTube channel that it had named a team to begin talks with other parties with the aim of preventing such an alliance, which he called a &#8220;doomsday coalition&#8221;.



&#8220;For the Democratic Alliance, burying our heads in the sand while South Africa faces its greatest threat since the dawn of democracy is not an option,&#8221; he said.



The small Inkatha Freedom Party (IFP), a conservative Zulu party with a power base in KwaZulu-Natal province that won nearly 4% of the vote, was to meet separately on Sunday to discuss its next steps.



Local media reported that the DA could be open to entering a cooperation pact with the ANC, supporting it in key decisions in exchange for top jobs in parliament. The IFP would also be part of such a deal.



&#8220;I would almost certainly think (the ANC) wouldn&#8217;t just go with the DA. They would most probably go with somebody like the IFP as well just because of the perception that the DA is a very white party,&#8221; said Melanie Verwoerd, a political analyst.



(Additional reporting by Bate Felix and Kopano Gumbi in Johannesburg and Wendell Roelf in Cape Town; Writing by Joe Bavier; Editing by Emelia Sithole-Matarise and Giles Elgood)

Results announced for South Africa’s national election

South Africa’s president urges unity as ANC support plunges

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-820x540.jpg" alt="" class="wp-image-502375" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa&#8217;s President, Cyril Ramaphosa, speaks during the launch of the new Sandvik Khomanani manufacturing site at Khomanani in Kempton Park, Johannesburg, South Africa, September 9, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, June 30 (Reuters) &#8211; South African President Cyril Ramaphosa appointed former opposition leader John Steenhuisen as minister of agriculture on Sunday, bringing the Democratic Alliance and other parties into his new coalition cabinet.



Ramaphosa&#8217;s African National Congress was forced to join forces with rival parties to stay in power after losing its majority for the first time in three decades in a May 29 election.



The announcement of the new cabinet of the government of national unity followed weeks of protracted and at times acrimonious negotiations.



Ramaphosa retained the ANC&#8217;s Enoch Godongwana as finance minister while Ronald Lamola was appointed minister of international relations and cooperation, replacing Naledi Pandor.



Gwede Mantashe stayed on as mineral and petroleum resources minister but the president removed energy from his portfolio. The combination of mineral resources had been seen by many as creating a prejudice in favour of coal as a source of power generation.



Energy will now fall within the portfolio of Electricity Minister Kgosientsho Ramokgopa.



&#8220;These men and women we have appointed to the executive &#8230; reflect the diversity of our nation,&#8221; Ramaphosa said. &#8220;In the spirit of partnership and collaboration, the incoming government will work together.&#8221;



Wrangling over who gets what cabinet seat was the last hurdle to setting up a government, which now faces the task of reviving a moribund economy, fixing crumbling roads and power stations and creating jobs for the third of South Africans out of work.



&#8220;We look forward to being part of a new era in South Africa’s democratic journey, and to bringing real and tangible change to the millions of citizens who voted for it,&#8221; Steenhuisen said in a statement following the announcement.



Some minor parties also saw their leaders receive cabinet posts.



<h2 class="wp-block-heading" id="h-anc-took-hit-at-polls">ANC TOOK HIT AT POLLS</h2>



For decades the ANC had traded on its legacy of ending apartheid 30 years ago, when Nelson Mandela came to power and successfully reconciled a country deeply divided along racial, ethnic and class lines.



But voters became angered by the ANC&#8217;s poor record on delivering on basic services including water, schools and electricity.



&#8220;It is a major shake-up with very few of the old faces still in there, which is a good thing,&#8221; said Melanie Verwoerd, political analyst and former South African diplomat. &#8220;I think in general it&#8217;s a very positive step and of course very positive that they could actually get this done.&#8221;



Whether the current loose coalition of former enemies can improve on the ANC&#8217;s record&nbsp;may depend on the extent to which they can put aside their ideological differences, analysts have said. There are several potential hurdles to policymaking.



The DA wants to scrap some of the ANC&#8217;s Black empowerment programmes, saying that they have mostly made a politically connected business elite fabulously wealthy while much of the Black majority stays poor.



It opposes the ANC&#8217;s desire to expropriate land &#8211; most of which is in white hands as a legacy of conquest by colonists and subsequent entrenched white minority rule &#8211; without compensation and give it to Black farmers.



The DA also seeks to phrase out South Africa&#8217;s minimum wage, currently sitting at 27.58 rand ($1.52) a hour, arguing it makes the workforce uncompetitive.



($1 = 18.1850 rand)



(Additional reporting by Wendell Roelf in Cape Town and Bhargav Acharya, Kopano Gumbi and Alexander Winning in Johannesburg; Editing by Joe Bavier and Mark Porter)

FILE PHOTO: South African President Cyril Ramaphosa attends the launch of the new Sandvik Khomanani manufacturing site

South Africa’s President Ramaphosa announces cabinet that includes ex-opposition leader

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-820x547.jpg" alt="" class="wp-image-486231" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DURBAN, SOUTH AFRICA &#8211; FEBRUARI 24: South African President and African National Congress (ANC) President Cyril Ramaphosa seated next to National Chairperson (and minister of mineral resources) Gwede Mantashe (c) and Fikile Mabula (l), the secretary general of the ANC and deputy President Paul Mashatile after speaking to supporters at the ANC Election Manifesto at Moses Mabhida Stadium on February 24, 2024, in Durban, South Africa. About 70,000 people gathered to hear ANC President Cyril Ramaphosa state the promises in advance of the election which will be held on May 29, 2024. Mr. Ramapahosa promised to step up his governments efforts to create jobs, welfare grants and a national health care program. ANC has seen decreased support in recent polls and especially KwaZulu-Natal province will be a tightly contested province during 2024 elections, Thirty years after the first democratic elections on April 27, 1994. (Photo by Per-Anders Pettersson/Getty Images)</figcaption></figure>



JOHANNESBURG, May 31 (Reuters) &#8211; For the first time in South Africa&#8217;s democratic era, the African National Congress (ANC) will have to seek a coalition partner to govern with after it was on course to fall well short of a majority in the national election.



Here are scenarios of what could happen next in South Africa and which parties the ANC might partner with:



<h2 class="wp-block-heading" id="h-will-ramaphosa-get-ousted">WILL RAMAPHOSA GET OUSTED?</h2>



With results in from over 60% of polling stations, the ANC had just under 42% of votes, by far its worst result since democratic elections began after the end of apartheid in 1994 and leaving it short of a majority in parliament.



Some political analysts say this could lead to party leader and South Africa&#8217;s President Cyril Ramaphosa having to step down.



Over the past four electoral cycles the ANC&#8217;s share of the vote gradually dropped, but never by more than five percentage points from one election to the next.



If the vote share of 42% or below is confirmed, the party could seek to oust Ramaphosa as its leader and nominate another high-profile politician such as Deputy President Paul Mashatile or Gwede Mantashe, currently in charge of the mines and energy ministry, to the National Assembly to elect as South African president.



A more probable scenario could see Ramaphosa carry on for a while to broker a coalition deal with another party in a bid to secure a parliamentary majority and then hand over to a successor, analysts say. Asked on Friday whether Ramaphosa would have to resign after the dismal election result, ANC First Deputy Secretary-General Nomvula Mokonyane said: &#8220;Nobody is going to resign.&#8221;



In any case, the ANC needs to move quickly as the constitution says the new National Assembly must convene within 14 days of the election results being declared, which is due to happen on Sunday, to elect a new president.



<h2 class="wp-block-heading" id="h-who-are-the-potential-coalition-partners">WHO ARE THE POTENTIAL COALITION PARTNERS?</h2>



Depending on the final numbers, the&nbsp;ANC&nbsp;may have no choice but to seek support from one of its larger rivals:&nbsp;the pro-business, white-led Democratic Alliance (DA), uMkhonto we Sizwe (MK), led by former president Jacob Zuma,&nbsp;or the Marxist Economic Freedom Fighters (EFF).



The price of a deal with either of those would likely be significant policy concessions by the ANC, as well as the offer of some senior government positions for their partner.



Analysts say it is difficult to envisage a stable arrangement under this scenario, and South Africa could be facing a period of unprecedented government volatility.



Investors and the business community would prefer a deal with the DA,&nbsp;which has received 23% of votes counted so far,&nbsp;and is seen as more market-friendly.



However, many analysts think the ideological divide between the ANC and the leading opposition party is so wide as to make such a deal difficult, if not impossible.



Led by Julius Malema, a former leader of the ANC&#8217;s youth wing, the EFF may be a more natural fit for the ANC, but relations are tense between Malema and some ANC factions.



The EFF,&nbsp;on 9.5% of the vote,&nbsp;said in April it would partner with the ANC if it got the powerful post of finance minister. The ANC, which has not disclosed its thinking on any non-majority scenario, would be unlikely to agree to this unless it were hugely weakened.



Steven Friedman, an academic affiliated with the University of Johannesburg and Rhodes University, said it was hard to imagine the ANC and the EFF governing together for five years.



He cited their inability last year to agree on a constitutional change on land reform even though their positions on the issue are closely aligned.



A deal with the MK, currently emerging as the third biggest partywith around 12%, would also be difficult to digest for the ANC, which struggled to clean its reputation after the corruption scandals of the Zuma era.



&#8220;What we do know now is that the ANC is in a trilemma,&#8221; said Sizwe Mpofu-Walsh, a political analyst at the University of the Witwatersrand in Johannesburg.



&#8220;The ANC will have to decide whether it goes with its historical partners, the EFF and MK, or whether it takes an unprecedented step of reaching across the aisle of South African politics in a grand coalition with the DA.



&#8220;Anyone of those coalitions is politically unprecedented,&#8221; he said. &#8220;It remains to be seen to what extent that represents a true policy shift in South Africa.&#8221;



LESS LIKELY SCENARIOS



If the ANC gets a last-minute boost to secure over 45% of the vote, which looks out of reach at this stage, it could try to make a deal with small- or medium-sized parties to form a government.



Analysts have said the socially conservative Inkatha Freedom Party (IFP), which is strong in KwaZulu-Natal province and is polling at about 3% nationally, could be the ANC&#8217;s first choice, but its support would be insufficient to secure a majority.



(Additional reporting by Nellie Peyton; Editing by Silvia Aloisi and Toby Chopra)

ANC Election Manifesto Rally

What happens next in South Africa after ANC loses majority?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-820x462.jpeg" alt="" class="wp-image-492772" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Voters during the South Africa general elections on May 29, 2024 in Johannesburg, South Africa.  Gallo Images | Gallo Images | Getty Images</figcaption></figure>



Live updates of partial results from South Africa’s parliamentary election reappeared on the electoral commission’s website, following a glitch of at least two hours.



The prints are closely watched amid early indications that the country’s governing African National Congress, the liberation party of Nelson Mandela, could lose its parliamentary majority for the first time in the 30 years since it assumed governance.



The electoral commission’s portal was briefly blank at 06:08 a.m. London time, but once more displayed results by 08:23 a.m. in London, according to CNBC monitoring.



The commission did not immediately respond to a CNBC request for comment on the interruption in updates. Reuters reported that the disruption was a result of a technical glitch that technicians at the results center in Midrand, north of Johannesburg, were attending to.



Once the portal returned online, its data showed support for the ANC at 41.86% off 55.63% of the ballots, with the Democratic Alliance (DA) at 23.67%, and the Marxist Economic Freedom Fighters (EFF) securing 19.98%.



A final result near the current preliminary 42% would be a steep tumble for the ANC, which last earned 57.5% of support in the 2019 election. It would also propel incumbent President Cyril Ramaphosa to begin negotiations for a coalition government, stoking political uncertainty that could bleed into the country’s economic prospects.

107422449-1717142477047-gettyimages-2154698181-ED_506321

South Africa’s election portal resumes showing partial results after brief glitch

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-820x545.jpg" alt="" class="wp-image-492769" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-1536x1021.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People wait to get vaccinated against the coronavirus disease (COVID-19) amid the outbreak, in Bangkok, Thailand, January 10, 2022. REUTERS/Soe Zeya Tun/ File Photo</figcaption></figure>



LONDON, May 31 (Reuters)&nbsp;&#8211;&nbsp;The world is unprepared for another health crisis like COVID-19, a leading global health expert has warned, as countries make a last push to agree a way forward for a pandemic treaty amid fears the political climate for agreement could sour.



World Health Organization member states gathered in Geneva on Friday to work out how to continue negotiations about an accord after missing this month’s deadline.



“We only hope that&#8230; (in the) next few months, we don&#8217;t have another pandemic that finds us in a world which is still unprepared for a major crisis,” Muhammad Ali Pate, Nigeria’s health minister and a board member of the Global Fund to Fight Aids, Tuberculosis and Malaria, told Reuters.



A major sticking point in the treaty has been provisions for low and middle-income countries to have access to 20% of tests, treatments and vaccines developed to fight the pandemic, either at no-profit costs or donated.



Ali Pate said the figure was reasonable to avoid the scramble for life-saving products that saw African countries last-in-line during COVID.



While talks on the treaty are likely to continue for several months or even years, a parallel process to update an existing set of rules that govern international disease outbreaks are closer to agreement, sources said, and could be signed off before the end of the WHO’s annual meeting on Saturday.



Other negotiators and observers said there was a sense of urgency in the treaty talks, not least because of concerns that elections in a number of key countries this year could bring in right-leaning governments who fear the treaty could threaten their sovereignty, which the WHO denies and a clause in the document guards against.



“This needs to be done now or else things are only going to get worse with things moving to the right,” said one Western diplomat.



(Reporting by Emma Farge and Jennifer Rigby; Editing by Nick Macfie)

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South Korea, African countries sign agreements on minerals, exports

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South Korea’s Yoon calls for greater cooperation with Africa on minerals, trade

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