<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107374281-1708014467967-gettyimages-2005544457-75350394-820x575.jpeg" alt="" class="wp-image-485012" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107374281-1708014467967-gettyimages-2005544457-75350394-820x575.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107374281-1708014467967-gettyimages-2005544457-75350394-300x210.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107374281-1708014467967-gettyimages-2005544457-75350394-128x90.jpeg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107374281-1708014467967-gettyimages-2005544457-75350394-768x539.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107374281-1708014467967-gettyimages-2005544457-75350394-1536x1078.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107374281-1708014467967-gettyimages-2005544457-75350394-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



The U.K. economy has emerged from recession as gross domestic product rose 0.6% in the first quarter, official figures showed Friday, beating expectations.



Economists polled by Reuters had forecast growth of 0.4% on the previous three months of the year.



The U.K. entered a shallow recession in the second half of 2023, as persistent inflation continued to hurt the economy.



Although there is no official definition of a recession, two straight quarters of negative growth is widely considered a technical recession.



The U.K.’s production sector expanded by 0.8% in the period from January to March, while construction fell by 0.9%. On a monthly basis, the economy grew by 0.4% in March, following 0.2% expansion in February.



In output terms, the services sector — crucial to the U.K. economy — grew for the first time since the first quarter in 2023, the Office for National Statistics said. The 0.7% growth was mainly driven by the transport services industry which saw its highest quarterly growth rate since 2020.



U.K. Prime Minister Rishi Sunak, whose Conservative Party recently suffered significant losses at local elections, welcomed the news. “The economy has turned a corner,” he said in a post on social media platform X.



“We know things are still tough for many people, but the plan is working, and we must stick to it,” Sunak added.



Suren Thiru, economics director at ICAEW, a professional group for chartered accountants, struck a more measured tone. He said the positive impact of weaker inflation could be curtailed by a renewed caution to spend amid political uncertainty ahead of general elections expected later this year.



“The UK’s escape from recession is a rather hollow victory because the big picture remains one of an economy struggling with stagnation, as poor productivity and high economic inactivity limits our growth potential,” said Thiru.



The Bank of England’s Monetary Policy Committee on Thursday warned that indicators of persistent inflation “remain elevated,” and voted to keep its main interest rate at 5.25%.



The central bank forecast headline inflation close to 2% in the near-term, but said it expects an increase slightly later in the year as the effects of a sharp fall in energy prices wear off.

107374281-1708014467967-gettyimages-2005544457-75350394

UK economy emerges from recession with 0.6% growth 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/2024/05/GettyImages-1251784570-820x547.jpg" alt="" class="wp-image-484765" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The International Monetary Fund (IMF) headquarters during the spring meetings of the IMF and World Bank Group in Washington, DC, US, on Thursday, April 13, 2023. The IMF trimmed its global-growth projections, warning of high uncertainty and risks as financial-sector stress adds to pressures emanating from tighter monetary policy. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



LUSAKA, May 9 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Thursday it would continue discussions with Zambian authorities on policies&nbsp;that would unlock the next disbursal from a $1.3 billion, three year loan programme.



An IMF staff team was in Lusaka from April 24 to May 7 to discuss Zambia&#8217;s economic policies for its third review of the country&#8217;s 38-month Extended Credit-Facility programme, which was approved in September 2022.



The completion of the review would pave the way for the fourth disbursement under the programme, after the IMF&#8217;s board released $187 million in December, as the country moves closer to emerging from debt default while struggling with a punishing drought.



Vera Martin, the IMF&#8217;s mission chief for the southern African nation, said talks between the IMF staff and the authorities focused on analysing recent economic developments and the impact of the drought.



&#8220;Discussions will continue virtually in the coming weeks toward completion of the Third ECF review,&#8221; sheadded in a statement issued at the end of the mission that did not say why an agreement was not reached during the visit to Lusaka.



One of the largest copper producers on the African continent, Zambia defaulted in 2020 during the COVID-19 pandemic.



Its debt restructuring efforts have been beset by delays, although they took a step forward in March when the government and a group of bondholders reached a deal-in-principle to rework about $3 billion of international bonds.



(Reporting by Chris Mfula in Lusaka, additional reporting by Jahnavi Nidumolu and Disha Mishra, Writing by Bhargav Acharya and Rachel Savage Editing by Bate Felix and David Gregorio)

Spring Meetings Of The International Monetary Fund And World Bank

IMF to continue discussions with Zambian authorities after visit

<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-1251784338-820x547.jpg" alt="" class="wp-image-484743" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The International Monetary Fund (IMF) headquarters during the spring meetings of the IMF and World Bank Group in Washington, DC, US, on Thursday, April 13, 2023. The IMF trimmed its global-growth projections, warning of high uncertainty and risks as financial-sector stress adds to pressures emanating from tighter monetary policy. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



ABUJA, May 9 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund on Thursday maintained its growth forecast of 3.3% for Nigeria&#8217;s economy for 2024, up from 2.9% last year, citing a pick up in services and trade sectors.



The IMF added that growth outlook was still challenging in Africa&#8217;s most populous nation and top oil producer, with food price inflation 40% in March, raising food security concern.



&#8220;If Nigeria grows at 3.3% that is just above the population dynamics, which is a big challenge,&#8221; IMF mission chief for Nigeria, Axel Schimmelpfenning, told journalists.



Since taking office about a year ago, President Bola Tinubu has embarked on sweeping reforms, including slashing costly petrol and electricity subsidies and devaluing the naira currency twice within a year to narrow the gap between the official and parallel market exchange rates.



The Fund forecast that fuel subsidies could cost up to 3% of GDP this year as the increases in pump prices have not kept up with their dollar cost, Schimmelpfennig said, adding that officials remain committed to phasing that out in another one or two years.



&#8220;The reforms are focused on how to raise that growth so that Nigerians can see real impacts on their living standards,&#8221; Schimmelpfenning said.



Global ratings agencies have reviewed Nigeria&#8217;s economic outlook upwards due to the impact of reforms, with Fitch the latest to revise Nigeria&#8217;s outlook to positive from stable on May 3.



&#8220;We think a lot has happened. We also have to recognise that the problems built up over many years were quiet severe. We can&#8217;t expect that everything is going to be resolved overnight,&#8221; he added.



Schimmelpfenning said scaling up a cash transfer programme and boosting government revenues so that the country has more resources to provide services to its citizens is a key priority.



On monetary policy, the IMF welcomed the Central Bank of Nigeria&#8217;s (CBN) recent interest rate hikes to curb galloping inflation, calling for a data-driven approach to further rate tightening.



The IMF urged the CBN to build up its foreign exchange reserves and recommended a transparent and balanced framework for forex interventions aimed solely at smoothing out excessive short-term volatility.



(Additional reporting by Elisha Bala-Gbogbo;Editing by Bate Felix, Tomasz Janowski and Franklin Paul)

IMF maintains Nigeria growth forecast at 3.3% for 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-820x521.jpg" alt="" class="wp-image-484690" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-1536x975.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A pedestrian walks on a sideway outside the Safaricom mobile phone customer care centre in the central business district of Nairobi, Kenya, November 10, 2021. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, May 9 (Reuters)&nbsp;&#8211;&nbsp;Kenyan telecom operator Safaricom&nbsp;SCOM.NR&nbsp;on Thursday reported a 3.5% rise in its annual core earnings to 94.9 billion Kenyan shillings ($724 million) as solid growth in its home market helped cushion the costs of its nascent Ethiopian business.



The group, which is partly owned by South Africa&#8217;s Vodacom&nbsp;VODJ.J&nbsp;and Britain&#8217;s Vodafone&nbsp;VOD.L, said the Ethiopian business was gaining momentum and should start being a significant contributor to the group&#8217;s growth from next year.



It launched Safaricom Ethiopia in 2022, betting that the populous nation will power growth after about five years of investment.



In Kenya, the company achieved a 20.4% rise in earnings before interest and tax (EBIT) to 139.9 billion shillings, against a guidance of 129 to 132 billion, but overall group performance was dampened by the new business in Ethiopia.



Net income attributable to owners of the company grew 1.2% year on year to 62.99 billion Kenyan shillings.



The group EBIT exceeded the company&#8217;s forecast of 87 to 93 billion shillings, driven by &#8220;customer segmentation, public sector digitisation, investments in new technologies and better use of data and analytics to understand and serve customers better,&#8221; the company said in a statement.



&#8220;We are extremely pleased with what we have been able to achieve as a group despite the significant startup costs in our Ethiopia business,&#8221; Group CEO Peter Ndegwa told an investor briefing.



Safaricom&#8217;s active customer base in Ethiopia doubled to 4.4 million, he said.



&#8220;We expect that from 2025, Ethiopia will start being a significant growth contributor at group level for both top and bottom line,&#8221; he said, adding that the Ethiopia business was expected to break-even by the end of 2026.



The company forecast group EBIT of 103 billion to 109 billion shillings for the current year ending in March 2025.



Overall group service revenue grew 13.4% year on year to 335 billion shillings.



Safaricom group&#8217;s M-Pesa mobile financial services business grew 8.8% to 117.2 billion shillings, while mobile data revenue grew 11.4% to 54 billion shillings, the company said in a statement.



It proposed to pay shareholders a final dividend of 0.65 shillings per share, said company chair Adil Khawaja, bringing the total for the year to 1.20 shillings, same as the previous year.



&#8220;In Kenya, like many other companies, we faced major macroeconomic challenges. High inflation, a weakening shilling, effects of the prolonged drought and rising taxes,&#8221; Khawaja said.



&#8220;We pressed on with our expansion in Ethiopia and took all the startup obstacles in our stride,&#8221; he said.



($1 = 131.0000 Kenyan shillings)



(Reporting by Hereward Holland; Writing by Tannur Anders; Editing by Jamie Freed, Varun H K and Emelia Sithole-Matarise)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ

Safaricom annual earnings edge up helped by Kenya

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-820x523.jpg" alt="" class="wp-image-484618" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-1536x979.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/3LKZGMPQTBP45IVKQWNJZASDQE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Clementine Musonge, a trader, counts Congolese francs bank notes at the Kituku market in Goma, North Kivu province of the Democratic Republic of Congo February 15, 2024. REUTERS/Arlette Bashizi/File photo</figcaption></figure>



May 8 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Wednesday it had reached a staff-level agreement with Democratic Republic of Congo on the final review of a $1.5 billion loan programme, noting the need for Congo to manage properly funds from a revised mining&nbsp;deal.



This takes Congo one step closer to completing an IMF programme for the first time. Previous agreements have been derailed by issues including a lack of transparency in its vast mining sector.



&#8220;Performance under the (three-year) program has been generally positive, with most quantitative objectives met and key reforms implemented, albeit at a slow pace,&#8221; the Fund said in a statement.



Once approved by the IMF board, the agreement will allow for the disbursement of a final tranche of around $200 million.



The IMF noted that the world&#8217;s top supplier of cobalt &#8211; the mineral used in smartphones &#8211; and the third-largest producer of copper must account for the positive impact of a recently amended Sicomines joint venture with Chinese companies in its revised budget law for 2024.



&#8220;In addition, mechanisms will need to be put in place or reinforced to ensure the proper use and governance of these funds,&#8221; the Fund said.



President Felix Tshisekedi pushed for the revision of the 2008 infrastructure for minerals deal with Sinohydro Corp and China Railway Group to bring more benefits for Congo. An agreement was signed in March.



&#8220;The IMF is concerned about the mechanisms for using this money and has asked for it to be paid into the public treasury accounts rather than being managed by an agency as has been done in the past,&#8221; a finance ministry official, who requested anonymity, told Reuters.



Publishing mining contracts was also one of the conditions of the IMF programme and last week Congo shared long-awaited details of the revised Sicomines terms, which include around $7 billion of infrastructure investments from the Chinese side provided that copper prices remain high.



Under the previous version of the agreement, only $822 million of $3 billion promised to infrastructure investments was disbursed, according to a 2023 report by Congo&#8217;s state auditor.



The revised deal still includes terms which Congolese and international civil society organisations see as disadvantageous to Congo. These include Sicomines&#8217;s exemption from paying taxes until 2040.



(Writing by Alessandra Prentice; Editing by Chris Reese and Deepa Babington)

Eastern Congo residents scramble for food and safety as conflict intensifies

IMF and DR Congo reach agreement on final review of loan deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="559" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RLSNGTM6G5NE7C4IJFIL2VTIHE-820x559.jpg" alt="" class="wp-image-484600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RLSNGTM6G5NE7C4IJFIL2VTIHE-820x559.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RLSNGTM6G5NE7C4IJFIL2VTIHE-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RLSNGTM6G5NE7C4IJFIL2VTIHE-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RLSNGTM6G5NE7C4IJFIL2VTIHE-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RLSNGTM6G5NE7C4IJFIL2VTIHE-1536x1047.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RLSNGTM6G5NE7C4IJFIL2VTIHE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Supporters of the African National Congress hold the party flag during ANC campaign in Atteridgeville a township located to the west of Pretoria, South Africa July 5, 2016. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, May 9 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s African National Congress (ANC), fighting to extend its 30-year grip on power in elections this month, would like to cast the government programmes that support Dalene Raiters and her family as a success story.



But the 48-year-old doesn&#8217;t see it that way.



&#8220;The ANC, I don&#8217;t want to even talk to them,&#8221; an angry Raiters told Reuters from the single room in Johannesburg she shares with her sons and grandson. &#8220;(Nelson) Mandela&#8217;s dream is not their dream.&#8221;



With record unemployment and a moribund economy hitting support among voters, the ANC is touting South Africa&#8217;s welfare system &#8211; a developing world rarity &#8211; as a landmark achievement.



&#8220;These grants and subsidies do much more than give people what they need to live,&#8221; President Cyril Ramaphosa said in February. &#8220;They are an investment in the future.&#8221;



But the growing number of people requiring assistance &#8211; over 24 million this year, against a tax base of just 7.1 million &#8211; is straining the system.



Its future could depend on who in a field that includes two dominant parties espousing vastly divergent political visions &#8211; the Economic Freedom Fighters (EFF) or Democratic Alliance &#8211; the ANC chooses as a coalition partner if it loses its majority, as polls suggest.



&#8220;It&#8217;s an enormous mark of failure, and it is not sustainable &#8230; We&#8217;re on a very risky path,&#8221; said Ann Bernstein, director of the Centre for Development and Enterprise, a Johannesburg-based think-tank.



<h2 class="wp-block-heading" id="h-economic-failure">ECONOMIC FAILURE</h2>



Social security and economic prosperity were bedrock tenets of ANC policy when it won power under anti-apartheid hero Mandela in 1994.



But today more than 60% of South Africans live in poverty, according to the World Bank, while a decade of economic stagnation has pushed unemployment above 32%, nearly 10 points higher than 30 years ago. Over a third of the population receives cash grants and other social support.



During the pandemic, the government created a new benefit for the working-age unemployed accessed by over 6 million people. Though meant to be temporary, it was extended earlier this year, against the advice of Finance Minister Enoch Godongwana.



For Thabo Mbeki &#8211; an ANC leader and South Africa&#8217;s president from 1999 to 2008 &#8211; the welfare system was never intended to be a cure for poverty and unemployment. Instead, the goal was to grow an inclusive economy so more people could earn an income.



&#8220;That hasn&#8217;t worked as well as it should. And I think that objective, we need to get back to it,&#8221; he told Reuters.



Dalene Raiters lost her job at a local primary school 16 years ago. Her adult son is also jobless. Like many South Africans, their entire family of four lives off the grants of those who qualify.



For Raiters that means the 1,080 rand ($58) per month she receives for two minor dependents &#8211; her teenage boy and grandson supplemented with handouts from a local mosque, feeding schemes or odd jobs she does for neighbours.



It&#8217;s never enough.



&#8220;Sometimes it breaks my heart,&#8221; she said, in tears.



<h2 class="wp-block-heading" id="h-doomsday-coalition">&#8220;DOOMSDAY COALITION&#8221;</h2>



While the ANC denies it will need a coalition, most polls predict an end to its single-party governance after May 29.



The business-friendly, centre-right Democratic Alliance (DA) &#8211; the largest opposition party &#8211; would seem an awkward fit.



While it is promising to increase the value of select grants and convert the pandemic-era payment into a job-seekers grant, it is primarily focused on job creation.



It wants to relax labour laws and do away with affirmative action aimed at redressing apartheid-era discrimination.



Though the DA squarely blames the ANC for the country&#8217;s current troubles, it has not ruled out partnering with its ideological opponent to prevent what leader John Steenhuisen dubs a &#8220;doomsday coalition&#8221; of the ANC and the Marxist EFF.



&#8220;I&#8217;ve seen the mass emigration from places like Zimbabwe and Venezuela. I&#8217;ve seen the starvation,&#8221; Steenhuisen told Reuters. &#8220;I don&#8217;t want that for South Africa.&#8221;



The EFF, which has stated its desire for the finance portfolio were it to partner with the ANC, did not respond to repeated requests for an interview.



Its demands for land redistribution and the nationalisation of mines and banks have long spooked investors.



And its election manifesto calls for a doubling of existing social benefits across the board, the establishment of a new grant for unemployed university graduates and more free public services for the poor.



Michael Sachs, an economist at the Southern Centre for Inequality Studies, said the system currently has the resources to support its intended beneficiaries: children and pensioners.



What it can&#8217;t do is cope with the effects of skyrocketing unemployment and formal sector stagnation.



&#8220;If those social problems continue to mount and the only answer of government is to provide more social grants, then eventually it will become unsustainable, definitely,&#8221; he said.



For Raiters, the answer isn&#8217;t more welfare benefits: only work will give the next generation a chance.



&#8220;I know I&#8217;m not going to live a long time,&#8221; she said. &#8220;But for the future, I hope my grandson can get a better job.&#8221;



($1 = 18.5653 rand)



(Reporting by Kopano Gumbi and Joe Bavier; Additional reporting by Sisipho Skweyiya, Sfundo Parakozov, Tim Cocks and Nellie Peyton; Editing by Catherine Evans)

Supporters of the African National Congress hold the party flag during ANC president Jacob Zuma’s election campaign in Atteridgeville a township located to the west of Pretoria

South African social safety net at crossroads as ANC support wanes

<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-2151125823-820x547.jpg" alt="" class="wp-image-484355" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2151125823-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2151125823-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2151125823-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2151125823-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2151125823-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2151125823-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NEW YORK, NEW YORK &#8211; MAY 02: President of Botswana Mokgweetsi Masisi speaks onstage during Global Citizen NOW 2024 at Spring Studios on May 02, 2024 in New York City. (Photo by Noam Galai/Getty Images)</figcaption></figure>



Botswana, the world’s largest diamond producer, says it’s closely following BHP Billiton’s battle to buy Anglo American, which controls their diamond venture through De Beers.



President Mokgweetsi Masisi told CNBC Africa at the U.S.-Africa Business Summit in Dallas, Texas that while no-one had approached Botswana about the matter, the government would defend its interests in De Beers, in which it owns 15 percent. De Beers and the Botswana government jointly co-own Debswana Diamond, the largest diamond producer in the world by value.



“The value of De Beers is fundamentally created by Botswana. Without Botswana De Beers doesn’t exist,” he said in an interview with Fifi Peters.



Australian company BHP Billiton, the world’s largest miner, has offered about $39 billion for London-based Anglo American’s copper mines, minus its Botswana and South African assets in Debswana, Kumba Iron Ore and Anglo American Platinum. Anglo has rejected the overture arguing it undervalues its initiatives to unlock value for shareholders.



Analysts say BHP might be mulling a second bid and could face competition from commodities producer Glencore. South African Mines Minister Gwede Mantashe, who has met with Anglo executives, has said he is watching developments.



“Well, we remain laser focused on the developments because we clearly are an interested party,” he said. “I also want to state for the record that the value of De Beers is fundamentally created by Botswana. Because without Botswana, De Beers doesn&#8217;t exist.”



BHP has proposed that Anglo sell its shares in units Anglo Platinum and Kumba Iron Ore as an option to exit the South African assets it does not want included in the deal. It hasn’t pronounced on De Beers.

Global Citizen NOW 2024 – Day 2

Botswana says it will protect its diamond interests as BHP Bids for Anglo American

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="570" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-820x570.jpg" alt="" class="wp-image-484289" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-820x570.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-768x534.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-1536x1068.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: An abandoned Nigeria&#8217;s first oil well that was built in 1956 sits under an uncompleted building in Oloibiri, Bayelsa State, Nigeria February 9, 2024. REUTERS/Seun Sanni/File Photo</figcaption></figure>



LAGOS, May 8 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is inviting bids from international investors with financial and technical capacity for 12 onshore and deepwater oil blocks, its oil regulator said in a speech yesterday at a global oil conference in Houston, Texas.



Africa&#8217;s biggest oil producer opened this year&#8217;s licensing round on April 29 seeking to deepen exploitation of the country&#8217;s estimated 37.5 billion barrels of crude oil and 209.26 trillion cubic feet of natural gas reserves.



&#8220;Nigeria is committed to conducting the licensing round in a fair, competitive and transparent manner and ensuring a level playing field for both indigenous and international investors,&#8221; said Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).



Some investors have balked at participating in previous bids due to a lack of transparency in the award process leading to companies without capacity to drill winning oil fields. This eventually led to threats to cancel the awards.



Komolafe said in addition to these blocks, the seven deep offshore blocks from the 2022 mini-bid round exercise shall also be concluded along with this licensing round.



This will bring a total of 19 oil blocks offered to investors in 2024.



Apart from technical and commercial ability, the regulator said it would pay attention to how the bidders plan to align with the country&#8217;s net-zero carbon emissions targets, eliminate gas flares and avoid polluting rivers and farmlands.



Nigeria, a member of the Organization of the Petroleum Exporting Countries (OPEC) has seen its oil production decline from around 2 million barrels a decade ago to just over 1.3 million barrels per day.



Oil majors are leaving onshore fields prone to sabotage and frequent claims to compensation for spills to focus on deepwater fields where disruptions are less common.



(Reporting by Isaac Anyaogu; Editing by Toby Chopra)

FILE PHOTO: Shell leaves Nigeria’s onshore fields amid calls for accountability

Nigeria invites bids for 12 new oil blocks, promises fair process

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="569" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/JOD25CABLBPLLFAZFMZFTYCY24-820x569.jpg" alt="" class="wp-image-484219" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/JOD25CABLBPLLFAZFMZFTYCY24-820x569.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/JOD25CABLBPLLFAZFMZFTYCY24-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/JOD25CABLBPLLFAZFMZFTYCY24-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/JOD25CABLBPLLFAZFMZFTYCY24-768x533.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/JOD25CABLBPLLFAZFMZFTYCY24-1536x1066.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/JOD25CABLBPLLFAZFMZFTYCY24-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Supporters wave flags at the African National Congress Election Manifesto launch in Durban, South Africa, February 24, 2024. REUTERS/Rogan Ward/File Photo</figcaption></figure>



JOHANNESBURG, May 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s election on May 29 could bring momentous change, with polls suggesting the ruling African National Congress is likely to lose its majority after 30 years in power.



The following are key facts about the ANC and rival parties, including smaller ones that could play a pivotal role in forming a coalition government, should the opportunity arise.



<h2 class="wp-block-heading" id="h-african-national-congress">AFRICAN NATIONAL CONGRESS</h2>



The ANC enjoys rock-solid loyalty from many Black South Africans, especially older voters, due to its heroic past as a liberation movement that helped end apartheid and usher in multi-racial democracy under the leadership of Nelson Mandela.



It has won a majority in national elections held every five years since 1994, but its support has dwindled in recent years due to persistent poverty and inequality, high unemployment, corruption scandals, erratic power supply and high crime rates.



If the polls are correct, the ANC is on course to lose its majority for the first time since it came to power, but it should still be the largest party by a wide margin, raising the possibility of coalition talks.



President Cyril Ramaphosa could face an internal leadership challenge if the party is perceived to have performed poorly.



The ANC has outperformed poll numbers in previous elections and some analysts say it could win again, pointing to its formidable campaigning machine and the advantages of incumbency.



<h2 class="wp-block-heading" id="h-democratic-alliance">DEMOCRATIC ALLIANCE</h2>



The pro-business DA, which won the second-largest share of the vote in the last election, has formed an alliance with several smaller parties in an effort to broaden its appeal.



The party controls the provincial government of Western Cape, where South Africa&#8217;s second most populous city, Cape Town, is located.



The party proposes to scrap the ANC&#8217;s flagship Black empowerment scheme, which its leader John Steenhuisen has described as &#8220;racial bean counting&#8221;, in favour of policies focused on reducing poverty regardless of skin colour.



Steenhuisen, who has not ruled out a post-election deal with the ANC, has rejected criticism that the DA represents white privilege, saying it wants to practise good governance for the benefit of all South Africans.



The DA released a campaign advert in which a South African flag is seen slowly burning, presented as a symbol of the risks facing the nation should the ANC go into coalition with left-wing parties. Ramaphosa condemned what he described as an abuse of the national flag for party political purposes.



<h2 class="wp-block-heading" id="h-economic-freedom-fighters">ECONOMIC FREEDOM FIGHTERS</h2>



Formed in 2013 by Julius Malema, a firebrand former leader of the ANC&#8217;s youth wing who broke away from the party, the EFF draws its support predominantly from voters who are young, poor and Black.



The party presents itself as Marxist, advocating the nationalisation of industries and land redistribution to address racial injustice &#8212; policies that are unpopular with South Africa&#8217;s business community.



The EFF is seen as a potential coalition partner for the ANC due to Malema&#8217;s historic ties with the ruling party.



<h2 class="wp-block-heading" id="h-umkhonto-we-sizwe-mk">UMKHONTO WE SIZWE (MK)</h2>



The MK party is a recent entrant, having been registered in September 2023, but it received a major boost when former president Jacob Zuma, who has fallen out with the ANC, announced in December he was backing it.



Polls suggest it has been eating into the EFF&#8217;s support base and could attract significant votes on May 29, especially in Zuma&#8217;s home province of KwaZulu Natal where he retains a loyal following.



The EFF&#8217;s Malema, who has a complicated history with Zuma, has said his party is open to a post-election alliance with MK. Malema was once Zuma&#8217;s protege, but the pair fell out, after which Malema left the ANC.



MK is named after the ANC&#8217;s former armed wing in the apartheid era.



<h2 class="wp-block-heading" id="h-inkatha-freedom-party">INKATHA FREEDOM PARTY</h2>



The socially conservative IFP, led by Velenkosini Hlabisa, draws its support from KwaZulu Natal province, the Zulu heartland. Its policies include giving more power to traditional rulers and launching a national debate on reinstating the death penalty.



Founded in 1975 by Zulu nationalist leader Mangosuthu Buthelezi, the IFP has a fraught history with the ANC. The parties were in violent conflict during the final years of apartheid, but worked together in the government of national unity that was formed after the 1994 election.



<h2 class="wp-block-heading" id="h-actionsa">ACTIONSA</h2>



Founded in 2020, ActionSA is popular in the country&#8217;s richest province of Gauteng, where the commercial capital Johannesburg is located. Its leader Herman Mashaba was the city&#8217;s mayor, though he was part of the DA at the time.



The party says it favours minimal government interference in the economy.



(Reporting by Bhargav Acharya and Tannur Anders; Editing by Estelle Shirbon and Ed Osmond)

FILE PHOTO: Supporters at the African National Congress Election Manifesto launch in Durban

Parties vying for power in South Africa’s 2024 election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="450" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/BRVM-Transcribe-Image-1-820x450.png" alt="" class="wp-image-483973" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/BRVM-Transcribe-Image-1-820x450.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/BRVM-Transcribe-Image-1-300x165.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/BRVM-Transcribe-Image-1-160x88.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/BRVM-Transcribe-Image-1-768x422.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/BRVM-Transcribe-Image-1.png 993w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Cote d&#8217;Ivoire expects to launch a commodities exchange later this year, seeking to provide a marketplace for soft commodities key for the development of West Africa’s farming sector.



The exchange, to be based in Abidjan Cote d&#8217;Ivoire’s commercial capital, will initially trade kola nuts, cashew nuts and corn (maize), Edoh Amenounve, the CEO of the West African Regional Stock Exchange (BRVM), told CNBC Africa in an interview. Cocoa, the region’s dominant crop, will be added later, he said.



&#8220;We hope that we will start this year,&#8221; said Amenounve, who is pitching the BRVM and the commodities exchange to South African investors. &#8220;We are just trying to have all the operational tools in place in terms of informational system. If all these are ready, we will start this commodity exchange.&#8221;



Cote d&#8217;Ivoire is one Africa’s fastest growing economies, with 2024 growth forecast at 6.5 percent before moderating to 6.4 percent the following year, according to the International Monetary Fund. The country is the world’s largest exporter of cocoa with agriculture the mainstay of the economy at about 22 percent of gross domestic product.



Amenounve said apart from pitching the commodity exchange, he was also canvassing support for investment on the BRVM, the 8-member regional stock exchange which is the fifth largest on the continent. The JSE is Africa’s largest and oldest exchange. Growth is picking up across the region in spite of political instability in some countries, he said.



&#8220;Côte d&#8217;Ivoire is the lead in our region and the economic growth in Côte d&#8217;Ivoire is an average 7% during the last 10 years. And for the entire region, we are something in the region of about 6% GDP growth,&#8221; he said. &#8220;We have oil and gas now in Côte d&#8217;Ivoire, in Senegal, in Niger. We have mining in Burkina Faso, in Mali. We think that the fundamentals are very strong and the investors can continue to invest in the West African region.&#8221;



He said South African investors currently own about 5 percent of the BRVM, a figure he wants to grow given the region’s expanding economies. While the JSE was a competitor for now and a clear leader, the future lay in African stock exchanges collaborating through the African Securities Exchanges Association, Amenounve said. 



Investors can &#8220;access the 2,000 listed companies on all the exchanges in Africa so you can compare the performance of all these companies,&#8221; he said. &#8220;That is very important for me, I think we have done for the integration.&#8221;



&#8220;Yes, we started already in West Africa and what is important to know is that the integration of the capital markets in Africa is key for the development of our continent. We cannot stay small, small, small stock exchanges compared to the JSE and pretend to have the performance that we have in Asia or in Europe or in America. It is important that we talk together.&#8221;

BRVM-Transcribe-Image-1

Cote d’Ivoire commodities exchange to be launched this year, BRVM CEO says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/PK5YBKQWU5JPXEI6SBIPP7LIQM-820x574.jpg" alt="" class="wp-image-483938" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/PK5YBKQWU5JPXEI6SBIPP7LIQM-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/PK5YBKQWU5JPXEI6SBIPP7LIQM-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/PK5YBKQWU5JPXEI6SBIPP7LIQM-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/PK5YBKQWU5JPXEI6SBIPP7LIQM-768x538.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/PK5YBKQWU5JPXEI6SBIPP7LIQM-1536x1075.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/PK5YBKQWU5JPXEI6SBIPP7LIQM.jpg 1856w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Former South African President, Jacob Zuma speaks about his political future at a press conference in Orlando East, Soweto, Johannesburg, South Africa, December 16, 2023. REUTERS/Shiraaz Mohamed/File Photo</figcaption></figure>



JOHANNESBURG, May 7 (Reuters)&nbsp;&#8211;&nbsp;Former South African President Jacob Zuma is facing an attempt to oust him from leadership positions in his new party, state broadcaster SABC reported on Tuesday, three weeks before an election in which he is expected to attract significant support.



One of the most divisive figures in South Africa, Zuma was president from 2009 until 2018, when he was forced to quit following a string of corruption scandals involving his administration.



Openly hostile to his successor President Cyril Ramaphosa, Zuma announced in December he would not vote for the ruling African National Congress, his longtime party, in the May 29 election, instead backing new party uMkhonto we Sizwe (MK).



With polls suggesting the ANC will lose its majority for the first time since it came to power in 1994, smaller parties like MK could potentially gain leverage after the election in a scenario where the ANC is looking for coalition partners.



Support for MK has hovered between 8% and 13% since Zuma&#8217;s endorsement, according to polls. Zuma has become the party&#8217;s public face despite remaining an ANC member.



But after Zuma fell out with MK founder Jabulani Khumalo and ousted him from the party, Khumalo has hit back by writing to the electoral commission saying Zuma was not the rightful leader of MK and his face should not appear on ballot papers, SABC reported.



A spokesperson for MK said Zuma was the party&#8217;s president and Khumalo had been expelled. The electoral commission said it did not wish to involve itself in internal party disputes and Zuma had been the registered leader of MK since April 10.



In a measure of Zuma&#8217;s perceived potential for causing disruption, the ANC postponed a disciplinary hearing against him that was supposed to take place this week, citing security concerns ahead of the election.



Zuma remains a force in South African politics, especially in his home province of KwaZulu Natal where protests erupted in 2021 after he was jailed for refusing to participate in a corruption inquiry.



MK is named after the ANC&#8217;s former armed wing in the apartheid era.



(Reporting by Tannur Anders; Writing by Estelle Shirbon, Editing by Alexandra Hudson)

Former South African President, Jacob Zuma speaks about his political future at a press conference in Soweto, in Johannesburg

South Africa’s Zuma faces dissent in new party as election nears

<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/CT4VY4XKGZMQBDEIRI26VVUIBI-1-820x547.jpg" alt="" class="wp-image-483872" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CT4VY4XKGZMQBDEIRI26VVUIBI-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CT4VY4XKGZMQBDEIRI26VVUIBI-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CT4VY4XKGZMQBDEIRI26VVUIBI-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CT4VY4XKGZMQBDEIRI26VVUIBI-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CT4VY4XKGZMQBDEIRI26VVUIBI-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CT4VY4XKGZMQBDEIRI26VVUIBI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Amazon is seen, November 15, 2022. REUTERS/Pascal Rossignol/File Photo</figcaption></figure>



JOHANNESBURG, May 7 (Reuters)&nbsp;&#8211;&nbsp;Amazon&nbsp;AMZN.O&nbsp;launched its online shopping service in South Africa on Tuesday, challenging a number of online retailers dominated by Naspers&#8217;&nbsp;NPNJn.J&nbsp;Takealot.com.



Africa&#8217;s most advanced economy is usually seen as a good entry point for companies to expand into the continent and Amazon could be doing the same, analysts have said in the past.



The launch of its service comes at a time when South Africa has seen a sharp rise in online shopping after the pandemic created an opportunity for e-commerce to finally take hold, with retailers doubling down on investments in response.



Amazon.co.za will offer same-day delivery and next-day delivery with more than 3,000 pickup points. Shoppers will get free delivery on first orders, followed by free delivery for subsequent orders above 500 rand ($27.07), it said in a statement.



Customers in South Africa will be able to shop from a selection of local and international brands across 20 different product categories such as consumer electronics, home and small kitchen appliances, including international brands such as Apple, Amazon said.



More than 60% of the items sold in Amazon&#8217;s stores globally are from independent sellers &#8211; most of which are small and medium-sized businesses.



&#8220;Building a strong relationship with South African brands and businesses is incredibly important to us. We want Amazon.co.za to be the place where they can reach millions of customers,&#8221; said Robert Koen, managing director of Amazon Sub-Saharan Africa.



South Africa&#8217;s growing and evolving retail sector has also attracted international fast fashion e-commerce retailers Shein and Temu, with their rapid rise driven by robust demand for their low-priced apparel. Temu launched in the country earlier this year.



Retailers are also doubling down on e-commerce investments as internet connectivity and smartphone penetration rises in the country.



($1 = 18.4720 rand)



(Reporting by Nqobile Dludla, Editing by Louise Heavens)

FILE PHOTO: The logo of Amazon is seen, November 15, 2022.

Amazon launches online shopping service in South Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-1-1-1-820x547.jpg" alt="" class="wp-image-468014" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-1-1-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-1-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-1-1-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-1-1-1-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-1-1-1-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-1-1-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pump jacks operate at sunset in an oil field in Midland, Texas U.S. August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo</figcaption></figure>



Oil futures climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil-producing region.



Brent crude futures were up 77 cents, or 0.9%, to $83.73 a barrel at 1055 GMT, while U.S. West Texas Intermediate crude futures were at $78.98 a barrel, up 87 cents, or 1.1%.



Last week, both futures contracts posted their steepest weekly loss in three months, with Brent falling more than 7% and WTI down 6.8%, as investors weighed weak U.S. jobs data and the possible timing of a Federal Reserve interest rate cut.



The geopolitical risk premium in oil prices also eased as talks for a Gaza ceasefire were underway.



However, prospects for a deal faded as Hamas reiterated its demand for an end to the war in exchange for the freeing of hostages and Israel appeared poised to launch a long-threatened assault in the southern Gaza Strip.



On Monday, Israel’s military called on Palestinian civilians to evacuate Rafah as part of a “limited scope” operation.



“News that Israel wants to go ahead and extend its operation into Rafah risks derailing a potential ceasefire agreement and reigniting Middle Eastern geopolitical tensions which had appeared to be easing,” IG markets analyst Tony Sycamore said.



Also supporting oil was Saudi Arabia’s move to raise the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signaling expectations of strong demand this summer.



In China, the world’s largest crude importer, services activity remained in expansionary territory for the 16th straight month, while growth in new orders accelerated and business sentiment rose solidly, boosting hopes of a sustained economic recovery.

ZO2TST2SFBIXRI7CA7KFKOUIUI-1-1-1

Oil climbs as Gaza tensions rise, Saudi Arabia hikes prices

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="515" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WYWKVX5CSBLQZHHAYIW3OJEPMM-820x515.jpg" alt="" class="wp-image-483576" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WYWKVX5CSBLQZHHAYIW3OJEPMM-820x515.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WYWKVX5CSBLQZHHAYIW3OJEPMM-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WYWKVX5CSBLQZHHAYIW3OJEPMM-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WYWKVX5CSBLQZHHAYIW3OJEPMM-768x482.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WYWKVX5CSBLQZHHAYIW3OJEPMM-1536x965.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WYWKVX5CSBLQZHHAYIW3OJEPMM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A protestor holds a placard as she joins a demonstration against oil major Royal Dutch Shell&#8217;s plans to start seismic surveys to explore petroleum systems off the country&#8217;s popular Wild Coast, at Muizenberg beach in Cape Town, South Africa, December 5. 2021. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



CAPE TOWN, May 6 (Reuters)&nbsp;&#8211;&nbsp;Oil major Shell&nbsp;SHEL.L&nbsp;will divest its majority shareholding from a local South African downstream unit after a comprehensive review of its businesses across all regions, it said on Monday.



&#8220;As a result of this review, Shell has decided to reshape the downstream portfolio and intends to divest our shareholding in SDSA&#8230; this decision was not taken lightly,&#8221; a Shell statement said. It did not specify when the decision took effect.



Shell Downstream SA (SDSA) was formed after Shell South Africa and black empowerment company, Thebe Investment Corporation, agreed a decade ago to merge Shell South Africa Marketing and Shell South Refining businesses. Thebe held a 28% equity stake.



Shell, which has been present in South Africa for more than century, is still exploring the country&#8217;s offshore, incurring opposition from environmental campaigners who have launched court action.



During the divestment process, Shell said on Monday it would work to preserve SDSA&#8217;s operating capabilities and maintain its brand presence.



A Thebe spokesperson was not immediately available for comment.



One of SDSA&#8217;s main assets and South Africa&#8217;s largest refinery, Sapref, in the east coast port city of Durban has not been operating since 2022 when Shell and its refinery joint venture partner, BP&nbsp;BP.L, decided on a spending freeze and halt to the refinery&#8217;s operations.



Flooding along the coast that killed nearly 400 people that same year severely damaged the plant, which at that stage provided around 35% of South Africa&#8217;s refining capacity.



South Africa&#8217;s Central Energy Fund said two years ago it was interested in Sapref, which has a nameplate capacity of 180,000 barrels per day, as it seeks to overcome energy security concerns.



On Monday, an energy official, speaking on condition of anonymity, said CEF had signed a non disclosure agreement with the parties involved and therefore could not comment.



South Africa is a net importer of refined petroleum products, a challenge exacerbated since the closure of Sapref and the country&#8217;s second largest refinery Enref, also in Durban.



(Reporting by Wendell Roelf; editing by Barbara Lewis)

FILE PHOTO: Protestors demonstrate against Royal Dutch Shell’s plans to start seismic surveys in Cape Town

Shell to exit South Africa’s downstream businesses

<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/G4VUBYBJBFLRBEUKL2ZYINM3HE-820x547.jpg" alt="" class="wp-image-483558" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Mozambique President Filipe Jacinto Nyusi speaks to reporters ahead of a meeting with U.S. Secretary of State Antony Blinken during the US-Africa Leaders Summit at the Walter E. Washington Convention Center in Washington, DC, U.S., December 14, 2022. Mandel Ngan/Pool via REUTERS/File Photo</figcaption></figure>



MAPUTO, May 6 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s ruling FRELIMO party has announced Daniel Chapo will be its presidential candidate in an election scheduled for October.



FRELIMO has governed the southern African country since gaining independence in 1975 and hopes Chapo will lead the party to another victory in the Oct. 9 election.



&#8220;The soap opera of speculation is over, including speculation about the third term,&#8221; President Filipe Nyusi said on state television on Sunday, dismissing the prospect of contesting elections again.



&#8220;We must all unite around comrade Daniel Francisco Chapo, in the demanding march towards electoral victory next October,&#8221; Nyusi said.



Mozambique&#8217;s constitution limits the president to two five-year terms. However, there had been media speculation that Nyusi would seek a third term after his&nbsp;re-election&nbsp;as party leader in 2022.



A relatively unknown figure in national politics, Chapo is the governor of the southern Mozambican province of Inhambane. He won 225 votes (around 94%) cast by the party&#8217;s central committee, according to a party statement.



&#8220;We are going to work with all social strata,&#8221; Chapo said on television after his win.



A former radio announcer, Chapo was born in 1977, making him the first FRELIMO candidate born after the country&#8217;s independence.



He holds a law degree and a Master&#8217;s degree in development management and has filled a string of political roles including as an administrator of the districts of Nacala and Palma.



(Reporting by Manuel Mucari Writing by Tannur Anders Editing by Bhargav Acharya and Sharon Singleton)

FILE PHOTO: U.S.-Africa Business Forum at the Walter E. Washington Convention Center in Washington D.C

Mozambique’s ruling party announces Chapo as presidential candidate

<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/D7DNEISJRBLYDIMNLYUEMI4OMY-820x547.jpg" alt="" class="wp-image-483539" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/D7DNEISJRBLYDIMNLYUEMI4OMY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/D7DNEISJRBLYDIMNLYUEMI4OMY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/D7DNEISJRBLYDIMNLYUEMI4OMY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/D7DNEISJRBLYDIMNLYUEMI4OMY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/D7DNEISJRBLYDIMNLYUEMI4OMY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/D7DNEISJRBLYDIMNLYUEMI4OMY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: High-tension electrical power lines are seen at the Azura-Edo Independent Power Plant (IPP) on the outskirt of Benin City in Edo state, Nigeria June 13, 2018. . REUTERS/Akintunde Akinleye/File Photo</figcaption></figure>



LAGOS, May 6 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s electricity regulator has ordered the grid operator to cut back supplies to customers overseas to boost domestic supply.



In a directive issued last Friday, the Nigerian Electricity Regulatory Commission (NERC) said the grid operator&#8217;s current approach in managing supply has caused significant hardship for Nigerians because supply under bilateral contracts, including export to international customers, takes priority over supply to domestic customers.



The regulator said it was placing a cap of 6% on the total available grid generation to international off-takers for the next six months, effective from May 1.



Nigerian power firms have contracts with neighbouring African countries to deliver energy, which gives them foreign currency to support revenue from sub-economic tariffs. However, these companies have not always paid their bills on time.



Power cuts are common in Nigeria due to a shortage of electricity but they have become worse recently. Power companies recently raised tariffs for some domestic customers who are supposed to get more power daily, or 20 hours a day, but the power companies are unable to meet the supply.



As well as having contracts with countries such as Niger, Togo and Benin, Nigerian power firms have bilateral contracts with big users at home including industries and government departments that get priority supply over regular customers.



Analysts said the cap on overseas sales could create uncertainty in the sector. &#8220;Operationally, it will require power generation companies to adjust production and distribution, and potentially modify contracts on short notice,&#8221; said Mikolaj Judson, an analyst at global risk consultancy Control Risks.



He also said it will likely increase financial challenges by reducing revenue from overseas customers and will require power distribution firms, many of which already owe sizeable debts to power generation companies, to step up paying back their debts.



Electricity supply from the national grid had hovered below 3,000 megawatts for several weeks but has risen above 4,700 megawatts since Saturday after the directive, grid service data showed. Usually, local customers get less than 4000MW on normal days.



The regulator said current international and bilateral contracts have lax terms and off-takers frequently exceeded their contracted levels during peak operations at the expense of other grid users. Penalties for violating grid regulations are also not enforced, it said.



Last month, NERC raised tariffs by 230% for 15% of customers who are supposed to get more supply but the power companies have been unable to meet the contracted 20 hours.



The regulator&#8217;s decision to cut back supply to international customers may have also been prompted by those customers&#8217; inability to settle debts on time.



In a report issued in the last quarter of 2023, NERC said international customers owed Nigerian power companies a combined $12.02 million in unpaid debt for services rendered.



(Reporting by Isaac Anyaogu; Editing by Susan Fenton)

FILE PHOTO: High-tension electrical power lines are seen at the Azura-Edo IPP on the outskirt of Benin City

Nigeria cuts back electricity sales to overseas customers to boost domestic supply

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="534" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-820x534.jpg" alt="" class="wp-image-483474" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-820x534.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-768x500.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-1536x1000.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">File photo: A man looks at an item before buying at a spaza shop in Thembisa, on the East Rand, in South Africa, August 2, 2023. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, May 6 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity rose marginally in April as an improvement in business confidence encouraged companies to expand purchasing activity and staffing levels, a survey showed on Monday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) rose to 50.3 in April from 48.4 in March, its highest reading since February. A reading above 50 shows growth.



Business sentiment was boosted by a drop in rolling power cuts in April and a softer reduction in new orders.



&#8220;Some of the headwinds that have held the private sector back recently showed signs of easing in April, with reduced load shedding (power cuts) and a lesser degree of supply-chain delays signalled,&#8221; said Andrew Harker, economics director at S&amp;P Global Market Intelligence.



Some companies predict an improvement in demand after the general elections on May 29, Harker added.



South Africa went through April without a single day of power cuts by state power utility Eskom.



Eskom said last month it would probably be able to limit rolling power cuts over the winter months as the outlook for its fleet of power stations had improved.



(Reporting by Bhargav Acharya; editing by Christina Fincher)

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featured

UK economy emerges from recession with 0.6% growth in first quarter

IMF to continue discussions with Zambian authorities after visit

IMF maintains Nigeria growth forecast at 3.3% for 2024

Safaricom annual earnings edge up helped by Kenya

IMF and DR Congo reach agreement on final review of loan deal

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Parties vying for power in South Africa’s 2024 election

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South Africa’s Zuma faces dissent in new party as election nears

Amazon launches online shopping service in South Africa

Oil climbs as Gaza tensions rise, Saudi Arabia hikes prices

Shell to exit South Africa’s downstream businesses

Mozambique’s ruling party announces Chapo as presidential candidate

Nigeria cuts back electricity sales to overseas customers to boost domestic supply

South Africa business activity rises in April, PMI shows

News Tips

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