<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-820x547.jpg" alt="" class="wp-image-468010" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ZO2TST2SFBIXRI7CA7KFKOUIUI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: 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 prices jumped more than 3% on Friday after Israel carried out a strike on Iran, triggering fears of an expanding war in the Middle East.



Israel carried out a limited military strike against Iran and is currently assessing the strike’s effectiveness and damage caused, a source familiar with the situation told NBC News. The operation was conducted in the early hours of Friday morning local time.



Both oil benchmarks pared gains after initially jumping over 3% on news of explosions in Iran. Global benchmark Brent traded 1.73% higher at $88.62 a barrel after topping $90 earlier, while the U.S. West Texas Intermediate rose 1.75% to $84.1 per barrel.



Safe haven assets also rose. Spot gold prices&nbsp;surged to a fresh all-time high of 2,411.09 per ounce, while the&nbsp;yen&nbsp;strengthened 0.45% to 153.93 against the U.S. dollar.



Iran’s Fars news agency reported that explosions were heard near the airport in Isfahan, and that flights to Tehran, Isfahan and Shiraz airports have been suspended. Flight tracking site Flight Radar 24 showed that multiple flights were diverted over Iranian airspace early Friday.



A Telegram channel affiliated with the Islamic Revolutionary Guard Corps said that there were no explosions on the ground in Isfahan and that the explosive sounds were caused by Iran’s defenses. The country’s armed forces also said that nuclear facilities in the Isfahan province were “in complete security.”



<h2 class="wp-block-heading" id="h-shadow-war-is-over"><a></a>‘Shadow war’ is over</h2>



Israel on Sunday vowed to “exact a price” from Iran in response to the weekend’s large-scale aerial assault on the Jewish state.



A day earlier, Iran struck military targets inside Israel, launching more than 300 missiles and drones, in retaliation for an Israeli strike on its embassy compound in Damascus, Syria.



“With Israel’s apparent strikes on Iran today, retaliating for Iran’s attack on Israel last Sunday, we now have a direct nation-on-nation hot war,” said Rapidan Energy’s Director of Global Oil Service, Clay Seigle.



“The ‘shadow war’ chapter has come to an end,” he added.



While Washington has pledged an “ironclad” commitment to Israel, President Joe Biden has also told Israeli Prime Minister Benjamin Netanyahu the U.S. will not join any offensive operations against Iran, a senior administration official told NBC News.



“The U.S. should avoid further entrapment in Israel’s efforts to drag U.S. military forces into a broader war with Iran,” said Sarah Leah Whitson, executive director of Democracy for the Arab World Now, or Dawn.



Israel’s decision to attack Iran in spite of pleas from its primary backers is a “clear indicator of how irresponsible and unaccountable the Israeli government is,” she added.



Seigle maintained that’s it’s still too early to determine what could happen next.



<h2 class="wp-block-heading"><a></a>Risks to markets</h2>



However, he pointed out that the “big risk” for oil markets in the expanding Middle East war is that oil exports from the Arabian Gulf will be cut off. The region is responsible for more than 20 million barrels of oil per day.



A disruption or closure of the Strait of Hormuz, a key chokepoint which sits between Iran and Oman and through which one-fifth of global oil production flows daily, would also cause oil prices to shoot higher.



“A Hormuz disruption would be very serious for the world economy, potentially driving oil prices well into the triple digits to levels that induce demand destruction,” he added.



Symbolically, the Jewish state’s attack on Iran is also “bigger than anything Israel has carried out in the past,” given how it is a direct strike against targets inside Iranian territory by the Israeli military, Eurasia Group said in a note. That being said, the political risk consultancy said such a response suggests the escalatory pressure will likely be contained — Iran has not acknowledged that a missile strike took place, blaming the explosions instead on air defense systems.



“The response from the Islamic Republic has been to downplay the attack, suggesting that the regime will feel little need to respond immediately,” said Eurasia Group.

FILE PHOTO: Pump jacks operate at sunset in an oil field in Midland

Oil jumps 3%, spot gold hits record high after Israel launches strike in Iran

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-820x547.jpg" alt="" class="wp-image-477848" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) and World Bank spring meetings signage outside the IMF headquarters in Washington, DC, US, on Wednesday, April 17, 2024. The International Monetary Fund inched up its expectations for global economic growth this year, citing strength in the US and some emerging markets, while warning the outlook remains cautious amid persistent inflation and geopolitical risks. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



LONDON, April 18 (Reuters)&nbsp;&#8211;&nbsp;Development agencies gathering in Washington this week face one of their toughest battles in years: getting a rich world worried about wars abroad and elections at home to commit more cash to the world&#8217;s poorest countries.



The poor world&#8217;s development is backsliding at an historic rate amid debt crises, higher-for-longer global interest rates and mounting investment needs. At the same time, it needs trillions more per year to meet climate spending goals alone.



At the last round of IMF and World Bank meetings in October, global leaders expected rich-world inflation to ease more quickly than it has, and thus for interest rate cuts to take pressure off financing costs.



Since then, an expanding conflict in the Middle East and the ongoing war in Ukraine have thrown up additional funding pressures, curbing the rich world&#8217;s already waning appetite to spend on development aid.



&#8220;Budgetary constraint in a number of countries is increasing,&#8221; Odile Renaud-Basso, president of the European Bank for Reconstruction and Development told Reuters in London ahead of the meetings. &#8220;There is more expenditure for defense and there is tension about support for development aid.&#8221;



&#8220;The global situation is becoming increasingly challenging,&#8221; she added.



Renaud-Basso said lenders trying to raise funds, such as World Bank&#8217;s International Development Association (IDA), would provide a bellwether for the rich world&#8217;s appetite to donate.



The World Bank&#8217;s lending arm to poor countries is targeting record commitments above its last replenishment of $93 billion, which it used early due to the COVID-19 pandemic and the fallout from Russia&#8217;s invasion of Ukraine. It has begun issuing bonds to leverage its lending.



&#8220;We&#8217;ve been able to do more with the same level of donor contributions,&#8221; IDA director Dirk Reinermann told Reuters. &#8220;The problem is that this party is slowly coming to an end&#8230;the zero point where we are fully leveraged, it&#8217;s coming closer and closer.&#8221;



In its last replenishment, 52 high- and middle-income countries contributed, led by the United States, Japan, Germany, the United Kingdom and France.



But many of those are grappling with donor fatigue. France and the UK have made large cuts to overseas aid in recent years, while in the United States political battles ahead of the presidential election have stalled other foreign spending commitments, including to Israel and Ukraine.



According to a recent United Nations report, official development assistance globally hit a record in 2022, but the share of it going to developing countries fell by 2%.



&#8220;I don&#8217;t think the world has ever been in such a state,&#8221; said Vera Songwe, chair of the Liquidity and Sustainability Facility, a group that aims to lower debt costs for Africa.



Songwe herself worked on IDA&#8217;s replenishment round during her time at the World Bank, and described a whirlwind global tour to press finance ministers, parliamentarians and other officials for funding.



It is never an easy sell, she said. But this year is different.



&#8220;Even in 2008, China was still growing then. This is much more difficult.&#8221;



It amounts to a perfect storm for poor countries. In the decade after the global financial crisis, with record-low interest rates, money flowed freely and the external public debt stock in low and middle income rose to $9 trillion, from $5.6 trillion in 2012.



China during that time also opened its financial taps, lending billions via its Belt and Road Initiative. But amid simmering debt problems at home, it has since pulled back.



This has significantly narrowed the availability of affordable finance for developing countries.



&#8220;There are very few such pots of money with such low concessional rates the world over, especially pots of money that come from a multilateral lender that has certain checks and balances,&#8221; said Giulia Pellegrini, a senior portfolio manager for emerging market debt at Allianz Global Investors.



Getting money from IDA, or another multilateral lender such as EBRD, can spur private lenders and eurobond investors to open their wallets, she added.



&#8220;Seeing a strong vote of confidence from some of these multilateral bodies, giving them concessional finance is a way to say these countries are embarking on a positive reform,&#8221;&nbsp;she said.



Reinermann said IDA&#8217;s backing from the World Bank itself and other institutions is strong. But that would not, he said, make securing commitments easy.



&#8220;Fiscal situations are not flush anywhere,&#8221; he said. &#8220;Right now it looks like a real mountain to climb.&#8221;



(Reporting by Libby George and Karin Strohecker; editing by Christina Fincher)

Spring Meetings Of The International Monetary Fund And World Bank

Battle for development cash heats up at IMF/World Bank meetings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-820x573.jpg" alt="" class="wp-image-458452" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana speaks during his medium-term budget policy statement in Cape Town, South Africa, November 1, 2023. REUTERS/Esa Alexander</figcaption></figure>



WASHINGTON, April 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa will use future&nbsp;drawdowns&nbsp;of its Gold and Foreign Exchange Contingency Reserve Account to curb its debt burden, Finance Minister Enoch Godongwana said, adding he was pondering tax hikes and expenditure cuts in the next post-election budget.



Africa&#8217;s most industrialised nation is grappling with an ailing economy and high debt ahead of a general election on May 29 that could see the governing African National Congress party lose its parliamentary majority for the first time since the end of apartheid 30 years ago.



Earlier this year, the government announced a change to the framework governing the so-called GFECRA account that captures gains and losses to foreign currency reserve transactions, allowing for a drawdown of 150 billion rand ($8 billion) over the next three years.



&#8220;Eskom is out, or Transnet,&#8221; Godongwana told Reuters on the sidelines of the International Monetary Fund and World Bank meeting, ruling out financial support from the account for the country&#8217;s ailing state-energy firms.



&#8220;Debt service costs now have emerged the highest expenditure item &#8211; therefore that is a red flag.&#8221;



Other measures were also on the horizon a bit further out.



The country&#8217;s next 2025/2026 budget &#8211; scheduled for February next year &#8211; could also see more pronounced adjustments than the last one, the minister said.



&#8220;If you want to do a fiscal consolidation you must do it far away from the election, and the timing for us is the budget that we will table on the 19th February 2025,&#8221; said Godongwana, when asked about the absence of significant expenditure reductions in the recent budget.



The next budget, nearly a year down the line, must send a signal and timeline by which fiscal consolidation would be concluded, the minister added.



&#8220;Now that is going to require maybe well that we cut expenditure and maybe well that we tweak some taxes &#8211; it could be a combination of both,&#8221; he said.



Another push the government would focus on in the months to come was consolidating the plethora of social spending measures and grants, said Godongwana.



Prospects for economic growth, currently forecast at 1.6% for 2024, could face headwinds if loadshedding were to intensify or Middle East tension to escalate.



&#8220;I factor in that there is a possibility of downside risks.&#8221;



However, the recent droughts that have wreaked havoc across much of Sub-Saharan Africa, including South Africa itself, would have no impact on food inflation, at least for now, he said.



($1 = 18.9824 rand)



(Reporting by Karin Strohecker; Editing by Toby Chopra)

South Africa issues medium-term budget policy statement

S.Africa contingency reserves won’t be spent on Eskom, Transnet, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147878080-820x547.jpg" alt="" class="wp-image-477763" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147878080-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147878080-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147878080-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147878080-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147878080-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147878080-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nicolas Mombrial, senior communications officer at the International Monetary Fund (IMF), from left, Vitor Gaspar, director of fiscal affairs at the International Monetary Fund (IMF), Era Dabla-Norris, division chief of fiscal affairs at the International Monetary Fund (IMF), and Marcos Poplawski-Ribeiro, deputy division chief of fiscal policy and surveillance at the International Monetary Fund (IMF), during a Fiscal Monitor news conference during the annual meetings of the International Monetary Fund (IMF) and World Bank in Washington, DC, US, on Wednesday, April 17, 2024. The International Monetary Fund inched up its expectations for global economic growth this year, citing strength in the US and some emerging markets, while warning the outlook remains cautious amid persistent inflation and geopolitical risks. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



The International Monetary Fund says South Africa needs to implement a debt ceiling as part of an overall strategy to contain increasing indebtedness in Africa’s largest economy.



South Africa public debt to gross domestic product ratio is projected to reach 86 percent by 2029 amid slow growth and continued bailouts of struggling state-owned enterprises such as power utility Eskom, logistics operator Transnet and airliner South African Airways. The national treasury says debt should peak at 75 percent of GDP by 2027 before declining, compared with 49 percent before the Covid-19 pandemic.



&#8220;South Africa has a good fiscal rule and complementing this with a debt ceiling could be useful in improving expenditure efficiency,&#8221; Era Dabla-Norris, the IMF’s Deputy Director for Fiscal Affairs told a news briefing at the release of its April 2024 Fiscal Monitor report. &#8220;We believe more decisive efforts are needed to cut spending and this can be done by reducing transfers to state-owned enterprises, rationalizing untargeted subs while protecting public investment and protecting well targeted social assistance for vulnerable populations.&#8221;



The country barely avoided a recession last year, posting growth of 0.6 percent, which the IMF forecasts could climb to 0.9 percent this year, before accelerating to 1.2 percent in 2025 as power supply improves, and the impact of economic reforms kicks in.



For sub-Saharan Africa the fund, sees sub-Saharan fiscal deficits declining to 4 percent this year versus 5.2 percent in 2023, and further improving to 2.7 percent by 2029. General debt to GDP ratios should decline to 44 percent by 2029 compared with 55 percent last year.



The fund is recommending that governments around the world avoid fiscal slippages and focus on rebuilding buffers in order to safeguard fiscal sustainability in the medium term. This as it forecast global public debt may top 100 percent of GDP by the end of the decade from 93 percent now.



&#8220;Fiscal consolidations are never easy but it is best not to wait until markets dictate their conditions. The right approach is to start now, gradually, and credibly. Once inflation is under control, credible multiyear consolidations will help pave the way for further monetary policy easing,&#8221; the report says.



This was especially pertinent this year as half of the world’s population goes to the polls to elect new governments.



&#8220;History shows governments tend to spend more and tax less during election years,&#8221; it said. &#8220;Deficits in election years tend to exceed forecasts by 0.4 percentage points of GDP, compared to non-election years. In this great election year, governments should exercise fiscal restraint to preserve sound public finances.&#8221;

IMF says South Africa needs a debt ceiling as public debt spirals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-820x573.jpg" alt="" class="wp-image-460717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A MultiChoice logo is displayed outside the company&#8217;s building in Cape Town, South Africa February 2, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, April 18 (Reuters)&nbsp;&#8211;&nbsp;French media group Vivendi&#8217;s&nbsp;VIV.PA&nbsp;Canal+ said on Thursday that it has bought 3.7 million shares in South African broadcaster MultiChoice&nbsp;MCGJ.J&nbsp;to increase its stake to 40.83%.



Last Monday, Canal+ made an all-cash mandatory offer to buy all the shares of MultiChoice it does not already own for 35 billion rand.



Canal+ had said that it reserves the right to buy more MultiChoice shares in the market during the course of the offer. Should the French company buy these shares at more than 125 rand each, it is obliged to increase the offer price &#8220;to not less than the highest consideration paid per MultiChoice share&#8221;.



It has increased its stake from 36.6% as of April 8, buying shares from April 12 to April 17 at 117.50 rand, 115.99 rand, 115.95 rand and 116 rand per share, it said in a statement on Thursday.



The offer at 125 rand per share is with the board of MultiChoice awaiting approval.



(Reporting by Nqobile Dludla; editing by Jason Neely)

FILE PHOTO: MultiChoice logo is displayed outside the company in Cape Town

Vivendi’s Canal+ increases stake in South Africa’s MultiChoice to 40.83%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU.jpg" alt="" class="wp-image-477732" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Bernadette Handing carries Pearl Millet Ear Head as she plods through the submerged sorghum field after heavy rain in Kournari village, on the outskirts of Ndjamena, Chad October 26, 2022. REUTERS/Mahamat Ramadan</figcaption></figure>



NIAMEY, April 18 (Reuters)&nbsp;&#8211;&nbsp;On a hospital bed in Niger, a 96-year-old woman lay motionless attached to a drip &#8211; one of thousands of possible victims of West Africa&#8217;s worst heatwave in living memory, which a report said on Thursday was linked to fossil fuel-driven climate change.



In late March and early April, days and nights of extreme heat above 40° Celsius (104°F) gripped many West African countries. Temperatures soared so high in Mali and Burkina Faso they equated to a once in 200-year event, according to the report on the Sahel region by World Weather Attribution (WWA).



The severity of the heatwave led WWA&#8217;s team of climate scientists to conduct a rapid analysis, which concluded the temperatures would not have been reached if industry had not warmed the planet by burning fossil fuels and other activities.



&#8220;In a pre-industrial climate, we wouldn&#8217;t expect to see heat waves at this intensity at all,&#8221; WWA statistician Clair Barnes told Reuters.



&#8220;It was the hottest that anyone in living memory has had to deal with (there),&#8221; she said.



Despite a lack of data, WWA estimates there were hundreds or possibly thousands of heat-related deaths, and it warned such extreme heat will become much more common without greater global efforts to reduce planet-warming emissions.



On the current trajectory, if fossil fuel emissions do not fall &#8220;we would expect to see heatwaves like this maybe ten times more frequently, so potentially up to ten times a year,&#8221; Barnes said.



&#8220;It&#8217;s something that people are going to have to adapt to and learn to live with.&#8221;



Given the growing threat, the group recommends that countries formulate heat action plans that would warn citizens when extreme temperatures are imminent and offer guidance on how to prevent overheating.



<h2 class="wp-block-heading" id="h-elderly-at-risk">ELDERLY AT RISK</h2>



The plight of the nonagenarian in Niger illustrates the threat such extreme temperatures pose, particularly to older people in countries where access to air conditioning or even electric fans can be limited.



Standing at the hospital bedside on Monday, daughter Zeynabou Toure described how her mother quickly sickened in the heat at the start of April, prompting them to rush to hospital.



They were among an unusually high number of patients seeking care at the facility in Niger&#8217;s sun-baked capital Niamey, said doctor Andia Abdoul-Kader.



&#8220;We have seen more and more cases of dehydration,&#8221; he told Reuters in his office. &#8220;It really affects the elderly &#8230; four to five litres of water need to be replenished for the patient to return to normal.&#8221;



While Abdoul-Kader has not recorded excess deaths, Gabriel Toure Hospital in the capital of neighbouring Mali reported 102 deaths, likely heat-related, in the first four days of April. This compares to 130 deaths it recorded in total for the whole of April last year.



&#8220;This indicates an exceptional situation this year,&#8221; said one of the hospital&#8217;s department heads, doctor Djibo Mahamane Django, in an online video post on April 5.



(Additional reporting by Cooper Inveen in Dakar and Tiemoko Diallo in BamakoAdditional reporting and writing by Alessandra Prentice; Editing by Aurora Ellis)

Catastrophic floods in West Africa threaten food security for years to come in Kournari

Deadly heat in West Africa warns of climate change-driven scorchers to come, says report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-820x547.jpg" alt="" class="wp-image-424241" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo in Washington, United States, September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



LONDON, April 17 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund&#8217;s Board has backed a key change to give it more freedom to support crisis-hit countries even if debt renegotiations with big creditor governments like China are still ongoing.



The proposal is to reform what the IMF calls its Lending Into Official Arrears (LIOA) policy, a framework that determines if and when it can lend to a country that owes money to another IMF-member nation.



In a statement late on Tuesday the Fund said its Executive Board had endorsed &#8220;reforms to promote the IMF&#8217;s capacity to support countries undertaking debt restructurings&#8221;.



A key change will be that it will be able to lend to a country where no debt agreement with one or more of its bilateral creditors has been reached if the Fund has been provided with &#8220;additional safeguards&#8221;.



Debt crisis veterans have been long been urging a change to the IMF&#8217;s approach having seen delays in agreements with the likes of China widely blamed for dragging out Zambia, Ethiopia and Sri Lanka&#8217;s defaults for years.



&#8220;Directors supported the addition of a fourth strand under which the Fund shall seek additional safeguards where an adequately representative agreement has not been reached through a representative standing forum,&#8221; the IMF said.



(Reporting by Marc Jones; editing by Philippa Fletcher)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

IMF Board backs key change to lending-into-official-arrears policy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="571" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-820x571.jpg" alt="" class="wp-image-477407" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-820x571.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-1536x1070.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman uses a trolley as she shops at a Pick n Pay store at the Dobson Point Shopping Centre, in Soweto, South Africa, March 19, 2024. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, April 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s headline consumer inflation fell to 5.3% year on year in March from 5.6% in February&nbsp;ZACPIY=ECI, statistics agency data showed on Wednesday.



Analysts polled by Reuters had forecast that inflation would slow to 5.4% in annual terms.



The South African Reserve Bank (SARB) kept its main interest rate unchanged at 8.25%&nbsp;ZAREPO=ECI&nbsp;last month, saying its policy stance needed to remain restrictive to tackle higher inflation expectations.



It expects headline inflation to reach the midpoint of its target range of 4.5% only near the end of 2025.



SARB Governor Lesetja Kganyago told Reuters earlier in April that South African policymakers were in discussions to lower the bank&#8217;s current inflation target range of between 3% and 6% to bring it more in line with peers.



On a month-on-month basis, inflation was at 0.8% in March compared to 1.0% a month before, Statistics South Africa said.



This is a developing story&#8230;



(Reporting by Bhargav Acharya; Editing by Alexander Winning)

A woman uses a trolley as she shops at a Pick n Pay store, in Soweto

South Africa inflation slows slightly more than expected in March

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107390308-17109608742024-03-20t184840z_2039781085_rc2up6aegbf4_rtrmadp_0_usa-economy-fed-820x461.jpeg" alt="" class="wp-image-477391" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107390308-17109608742024-03-20t184840z_2039781085_rc2up6aegbf4_rtrmadp_0_usa-economy-fed-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107390308-17109608742024-03-20t184840z_2039781085_rc2up6aegbf4_rtrmadp_0_usa-economy-fed-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107390308-17109608742024-03-20t184840z_2039781085_rc2up6aegbf4_rtrmadp_0_usa-economy-fed-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107390308-17109608742024-03-20t184840z_2039781085_rc2up6aegbf4_rtrmadp_0_usa-economy-fed-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107390308-17109608742024-03-20t184840z_2039781085_rc2up6aegbf4_rtrmadp_0_usa-economy-fed-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107390308-17109608742024-03-20t184840z_2039781085_rc2up6aegbf4_rtrmadp_0_usa-economy-fed.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Federal Reserve Chair Jerome Powell said Tuesday that the U.S. economy, while otherwise strong, has not seen inflation come back to the central bank’s goal, pointing to the further unlikelihood that interest rate cuts are in the offing anytime soon.



Speaking to a policy forum focused on U.S.-Canada economic relations, Powell said that while inflation continues to make its way lower, it hasn’t moved quickly enough, and the current state of policy should remain intact.



“More recent data shows solid growth and continued strength in the labor market, but also a lack of further progress so far this year on returning to our 2% inflation goal,” the Fed chief said during a panel talk.



Echoing recent statements by central bank officials, Powell indicated the current level of policy likely will stay in place until inflation gets closer to target.



Since July 2023, the Fed has kept its benchmark interest rate in a target range between 5.25%-5.5%, the highest in 23 years. That was the result of 11 consecutive rate hikes that began in March 2022.



“The recent data have clearly not given us greater confidence, and instead indicate that it’s likely to take longer than expected to achieve that confidence,” he said. “That said, we think policy is well positioned to handle the risks that we face.”



Powell added that until inflation shows more progress, “We can maintain the current level of restriction for as long as needed.”



The comments follow inflation data through the first three months of 2024 that has been higher than expected. A consumer price index reading for March, released last week, showed inflation running at a 3.5% annual rate — well off the peak around 9% in mid-2022 but drifting higher since October 2023.



Treasury yields rose as Powell spoke. The benchmark 2-year note, which is especially sensitive to Fed rate moves, briefly topped 5%, while the benchmark 10-year yield rose 3 basis points. The S&amp;P 500 wavered after Powell’s remarks, briefly turning negative on the day before recovering.



Powell noted the Fed’s preferred inflation gauge, the personal consumption expenditures price index, showed core inflation at 2.8% in February and has been little changed over the past few months.



“We’ve said at the [Federal Open Market Committee] that we’ll need greater confidence that inflation is moving sustainably towards 2% before [it will be] appropriate to ease policy,” he said. “The recent data have clearly not given us greater confidence and instead indicate that it’s likely to take longer than expected to achieve that confidence.”



Financial markets have had to reset their expectations for rate cuts this year. At the start of 2024, traders in the fed funds futures market were pricing in six or seven cuts this year, starting in March. As the data has progressed, the expectations have shifted to one or two reductions, assuming quarter percentage point moves, and not starting until September.



In their most recent update, FOMC officials in March indicated they see three cuts this year. However, several policymakers in recent days have stressed the data-dependent nature of policy and have not committed to set level of reductions.



Correction: Powell’s comments follow inflation data through the first three months of 2024 that has been higher than expected. An earlier version misstated the year.

107390308-17109608742024-03-20t184840z_2039781085_rc2up6aegbf4_rtrmadp_0_usa-economy-fed

Fed Chair Powell says there has been a ‘lack of further progress’ this year on inflation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107401739-1713271291754-gettyimages-519464988-000090539233_Unapproved-820x461.jpeg" alt="" class="wp-image-477152" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107401739-1713271291754-gettyimages-519464988-000090539233_Unapproved-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107401739-1713271291754-gettyimages-519464988-000090539233_Unapproved-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107401739-1713271291754-gettyimages-519464988-000090539233_Unapproved-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107401739-1713271291754-gettyimages-519464988-000090539233_Unapproved-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107401739-1713271291754-gettyimages-519464988-000090539233_Unapproved-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107401739-1713271291754-gettyimages-519464988-000090539233_Unapproved.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Crowds walk below neon signs on Nanjing Road. The street is the main shopping district of the city and one of the world’s busiest shopping districts. Nikada | E+ | Getty Images</figcaption></figure>



The International Monetary Fund on Tuesday slightly raised its global growth forecast, saying the economy had proven “surprisingly resilient” despite inflationary pressures and monetary policy shifts.



The IMF now expects global growth of 3.2% in 2024, up by a modest 0.1 percentage point from its earlier January forecast, and in line with the growth projection for 2023. Growth is then expected to expand at the same pace of 3.2% in 2025.



The IMF’s chief economist, Pierre-Olivier Gourinchas, said the findings suggest the global economy is heading for a “soft landing,” following a string of economic crises, and that the risks to the outlook were now broadly balanced.



“Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose,” he said in a blog post.



Growth is set to be led by advanced economies, with the U.S. already exceeding its pre-Covid-19 pandemic trend and with the euro zone showing strong signs of recovery. But dimmer prospects in China and other large emerging market economies could weigh on global trade partners, the report said.



<h2 class="wp-block-heading" id="h-china-among-key-downside-risks"><a></a>China among key downside risks</h2>



China, whose economy remains weakened by a downturn in its property market, was cited among a series of potential downside risks facing the global economy. Also included were price spikes prompted by geopolitical concerns, trade tensions, a divergence in disinflation paths among major economies and prolonged high interest rates.



To the upside, looser fiscal policy, falling inflation and advancements in artificial intelligence were cited as potential growth drivers.



Central banks are now being closely watched for a signal on the future path of inflation, with opinion diverging on either side of the Atlantic as to when the Federal Reserve and the European Central Bank will cut rates. Some analysts have recently forecast a possible Fed rate hike as stubborn inflation and rising Middle East tensions weigh on economic sentiment.



The IMF said it sees global headline inflation falling from an annual average of 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies.



“As the global economy approaches a soft landing, the near-term priority for central banks is to ensure that inflation touches down smoothly, by neither easing policies prematurely nor delaying too long and causing target undershoots,” Gourinchas said.



“At the same time, as central banks take a less restrictive stance, a renewed focus on implementing medium-term fiscal consolidation to rebuild room for budgetary maneuver and priority investments, and to ensure debt sustainability, is in order,” he added.



Despite the rosier outlook of Tuesday, global growth remains low by historic standards, owing in part to weak productivity growth and increasing geopolitical fragmentation. The IMF’s five-year forecast sees global growth at 3.1%, its lowest level in decades.

107401739-1713271291754-gettyimages-519464988-000090539233_Unapproved

IMF upgrades global growth forecast as economy proves ‘surprisingly resilient’ despite downside risks

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



Gold prices continued to hover near record highs days after Middle East tensions flared, boosting the safe-haven appeal of bullion.



Gold prices notched another record close Monday, with the most-active June contract for gold futures trading 0.37% higher to settle at $2,383 per ounce, and some say there’s more room to run.



“The recent gold rally has been aided by geopolitical heat and is coinciding with record equity index levels,” Citi wrote in a note dated April 15.



Demand for the safe-haven asset grew amid escalating tensions in the Middle East after Iran fired over 300 drones and missiles directly at Israel — most of which were intercepted, thanks to Israel’s Iron Dome air defense system.



Market watchers are closely monitoring a potential retaliation by the Jewish state, which has vowed to “exact a price” from Iran.



A significant retaliation could lead to a wider conflict, which would consequently trigger renewed buying of gold, as well as a rally in oil prices and strengthening of the U.S. dollar, said Bartosz Sawicki, market analyst at financial services firm Conotoxia fintech.



Gold, which retains its value as a hedge against inflation, tends to perform well in periods of economic uncertainty when investors move away from the riskier assets such as equities.



Bullion prices hit an all-time high of $2,448.80 per ounce intraday last Friday.



Spot gold prices have been on a tear since the start of the year, climbing over 15% year-to-date on the back of a cocktail of factors including a global central bank splurge, geopolitical tensions and expectations of rate cuts by the U.S. Federal Reserve. 



Gold prices usually have an inverse relationship with interest rates. As interest rates fall, gold becomes more appealing compared with fixed income assets such as bonds, which would yield weaker returns.



Hotter-than-expected inflation in March pushed back market expectations of a rate cut to September, and the expectation is now for two rate reductions instead of three.



n spite of that, analysts remain bullish on the yellow metal’s outlook, boosted by continued physical demand as well as its appeal as a geopolitical hedge.&nbsp;



“We project $3,000/oz gold over the next 6-18m,” said Citi’s analysts led by Aakash Doshi, Citi’s North America head of commodities research. The financial gold “price floor” has also moved higher from around $1,000 to $2,000 per ounce, Citi said.



On Friday, Goldman Sachs referred to the gold market as an “unshakeable bull market” and revised upward its price target for the yellow metal from $2,300 per ounce to $2,700 by the end of the year.



— CNBC’s Gina Francolla contributed to this report.

107385958-1710210089452-gettyimages-1868370670-THAILAND_GOLD

Gold is shining ‘bright like a diamond’ and could hit $3,000, says Citi

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-820x525.jpg" alt="" class="wp-image-477046" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-820x525.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-1536x983.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The company logo for Johnson &amp; Johnson is displayed to celebrate the 75th anniversary of the company&#8217;s listing at the New York Stock Exchange (NYSE) in New York, U.S., September 17, 2019. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



Corrects to the Zimbabwean regulator saying it &#8220;did not have a record of&#8221; the syrup being imported into the country instead of that it &#8220;did have a record of&#8221; in penultimate paragraph



KIGALI, April 15 (Reuters)&nbsp;&#8211;&nbsp;Drug regulators in Tanzania, Rwanda and Zimbabwe have recalled a batch of Johnson &amp; Johnson&nbsp;JNJ.N&nbsp;children&#8217;s cough syrup as a precautionary measure after their Nigerian counterpart said laboratory tests found high levels of toxicity.



The countries join Nigeria, Kenya and South Africa in recalling the same batch of the syrup, which is used to treat coughs, hay fever and other allergic reactions in children. South Africa has also recalled an additional batch.



Laboratory tests on the syrup by Nigeria&#8217;s health regulator showed a high level of diethylene glycol, which has been linked to the deaths of dozens of children in Gambia, Uzbekistan and Cameroon since 2022 in one of the world&#8217;s worst waves of poisoning from oral medication.



Diethylene glycol is toxic to humans when consumed and can result in acute kidney failure.



The batch of Benylin Paediatric syrup recalled was made by J&amp;J in South Africa in May 2021, although Kenvue&nbsp;KVUE.N&nbsp;now owns the brand after a spin-off from J&amp;J last year.



Tanzania Medicines and Medical Devices Authority (TMDA) said it had begun the recall on April 12 after hearing about the Nigerian test results.



&#8220;This is an exercise that does not involve investigation but rather monitoring to ensure that those affected drugs are removed from the market,&#8221; TMDA spokesperson Gaudensia Simwanza told Reuters on Monday.



A spokesperson for Kenya&#8217;s drug regulator said its test results on the syrup would likely be ready on Wednesday.



&#8220;A review of our safety database doesn&#8217;t reveal any adverse events reported,&#8221; the Rwanda Food and Drugs Authority said in a statement dated April 12. &#8220;However, Rwanda FDA issues the present recall for precautionary measures.&#8221;



Zimbabwe&#8217;s Medicines Control Agency said that it did&nbsp;not&nbsp;have a record of the product&#8217;s importation into Zimbabwe, but that it was concerned the syrup could enter the local market illegally. It said it would step up inspections in case.



Kenvue said in a statement that it was conducting its own assessment and working with health authorities to determine a course of action.



(Reporting by Philbert Girinema, Nuzulack Dausen and Nyasha Chingono; Additional reporting by Aaron Ross; Writing by Bhargav Acharya; Editing by Hereward Holland, Susan Fenton and Alexander Smith and Aurora Ellis)

FILE PHOTO: The company logo for Johnson & Johnson is displayed to celebrate the 75th anniversary of the company’s listing at the NYSE in New York

Tanzania, Rwanda, Zimbabwe join African recall of J&J cough syrup

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-820x547.jpg" alt="" class="wp-image-476778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, DC, US, on Tuesday, Sept. 27, 2022. World Bank President Malpass said he hasn&#8217;t considered resigning and isn&#8217;t under pressure from member countries to do so, after critics slammed him for dodging questions on whether he accepted the scientific consensus that the burning of fossil fuels is driving global warming. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



WASHINGTON, April 15 (Reuters)&nbsp;&#8211;&nbsp;Half of the world&#8217;s 75 poorest countries are experiencing a widening income gap with the wealthiest economies for the first time this century in a historical reversal of development, the World Bank said in a report on Monday.



The differential between per capita income growth in the poorest countries and the richest has widened over the past five years, according to the report.



&#8220;For the first time, we see there is no convergence. They&#8217;re getting poorer,&#8221; Ayhan Kose, deputy chief economist for the World Bank and one of the report&#8217;s authors, told Reuters.



&#8220;We see a very serious structural regression, a reversal in the world &#8230; that&#8217;s why we are ringing the alarm bells here,&#8221; he said.



The report said the 75 countries eligible for grants and zero-interest loans from the World Bank&#8217;s International Development Association (IDA) risk a lost decade of development without ambitious policy shifts and significant international aid.



Kose said growth in many IDA countries had already begun to taper off in these countries before the COVID-19 pandemic, but it would be just 3.4% in 2020-2024, the weakest half-decade of growth since the early 1990s. Russia&#8217;s invasion of Ukraine, climate change, increases in violence and conflict also weighed heavily on their prospects.



More than half of all IDA countries are in Sub-Saharan Africa; 14 are in East Asia and eight are in Latin America and the Caribbean. Thirty-one have per capita incomes of less than $1,315 a year. They include the Democratic Republic of Congo, Afghanistan and Haiti.



One in three IDA countries is poorer now than on the eve of the pandemic. IDA countries account for 92% of the world&#8217;s people who lack access to a sufficient quantity of affordable, nutritious food. Half of the countries are in debt distress, meaning they are unable to service debt or are at high risk of not being able to.



And despite their young populations &#8211; a demographic boon at a time when populations were aging nearly everywhere else, rich natural resources and abundant solar-energy potential, private and government creditors had been backing away from them.



U.S. Treasury Undersecretary Jay Shambaugh raised concerns about the worsening situation last week, warning China and other emerging official creditors against free-riding by curtailing loans to low-income countries just as the IMF or multilateral development banks were pouring funds in.



Almost 40 countries saw external public debt outflows in 2022, and the flows likely worsened in 2023, he said.



Kose said ambitious policies were needed to accelerate investment, including domestic efforts to strengthen fiscal, monetary and financial policies, and structural reforms to improve education and increase domestic revenues.



Significant financial support from the global community was also essential to make progress and lower the risk of protracted stagnation, Kose said, noting that the World Bank hoped to drum up a robust replenishment of IDA funds by December.



Stronger international coordination on climate change, debt restructurings and measures supporting cross-border trade would also be crucial, it said.



Indermit Gill, World Bank chief economist, noted that China, India and South Korea &#8211; now major economic powerhouses &#8211; had once been among the world&#8217;s poorest countries, but were able to tackle extreme poverty and raise living standards.



&#8220;The world cannot afford to turn its back on IDA countries,&#8221; he said.



(Reporting by Andrea Shalal; Editing by Edwina Gibbs)

World Bank As Chief Wont Resign Over Climate Comments

World Bank sounds alarm on ‘historical reversal’ of development for poorest nations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-820x547.jpg" alt="" class="wp-image-476763" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



LAGOS, April 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s creaking grid collapsed for the fifth time this year in the early hours of Monday, highlighting the country&#8217;s inability to provide reliable power after raising tariffs for wealthier consumers by 230% only two weeks ago.



Nigeria&#8217;s electricity regulator on April 3 approved an increase in tariffs for the 15% of consumers who use the most power, as the government tries to reduce the $2.6 billion worth of subsidies for the sector.



The head of the Nigerian electricity regulator, Musiliu Oseni, defended the tariff increase saying it will mean an end to grid collapses and bring investment into the sector.



National supply data showed the supply of power via the grid fell to around 50MW early on Monday from 4,020MW the previous day.



The Transmission Company of Nigeria, which oversees the grid, has not yet issued a statement on the cause of the latest near complete halt to the supply of power via the grid and did not immediately reply to an inquiry by Reuters.



Gas shortages and vandalism have triggered grid collapses in the past.



The new rate raises the tariff to 225 naira per kilowatt hour from a maximum of 68 naira for about 15% of customers, who will enjoy a maximum of 20 hours of supply daily.



Some analysts have criticised the tariff increase because it pushes more power to wealthier consumers from the meagre 4,000MW available for distribution to over 200 million Nigerians from the grid.



Nigeria, Africa&#8217;s most populous nation, faces perennial power shortages that have contributed to years of weak economic growth.



Its electricity sector faces a myriad of problems, including a failing grid, gas shortages, high debt and vandalism. The country has 12,500 megawatts of installed capacity, but produces only about a quarter of that, leaving many Nigerians reliant on expensive diesel-powered generators.



(Reporting by Isaac Anyaogu; Editing by David Holmes)

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Nigeria’s grid collapses weeks after tariffs raised for wealthier consumers

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107361439-1705616097110-gettyimages-1494104649-2023_vrtg_may_05_0003-820x462.jpeg" alt="" class="wp-image-476716" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107361439-1705616097110-gettyimages-1494104649-2023_vrtg_may_05_0003-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107361439-1705616097110-gettyimages-1494104649-2023_vrtg_may_05_0003-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107361439-1705616097110-gettyimages-1494104649-2023_vrtg_may_05_0003-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107361439-1705616097110-gettyimages-1494104649-2023_vrtg_may_05_0003-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107361439-1705616097110-gettyimages-1494104649-2023_vrtg_may_05_0003.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Vertigo3d | E+ | Getty Images</figcaption></figure>



The chief technology officer of Ceres Power has warned that as artificial intelligence tools become more widely used for efficiency, there is a risk that this could result in even higher energy consumption.



“What scares me is the energy consumption if you’re using ChatGPT [for simple queries],” Caroline Hargrove said during an “IOT: Powering the Digital Economy” panel on the new energy landscape.



Hargrove is CTO of Ceres Power, a developer of clean energy technology, including electrolysers for green hydrogen.



An International Energy Agency report, published in January, highlighted that on average a typical Google search uses 0.3 watt-hours of electricity versus 2.9 watt-hours for a ChatGPT request.



The report suggested that when this technology is incorporated into 9 billion searches daily, it would require nearly 10 terawatt-hours of additional electricity a year.  



More broadly, the IEA’s report said that by 2026, the “AI industry is expected to have grown exponentially to consume at least ten times its [electricity] demand in 2023.”



Hargrove said if this consumption was not managed properly “then the perverse effect could happen that we use so much more energy.”



“So as much as I’m a big fan in using the data to really optimize everything, we should use it to reduce our consumption, but the perverse effect can happen when you have a new toy and, and people getting behind it at [such] a rate,” she said.



<h2 class="wp-block-heading" id="h-responsible-users-of-ai"><a></a>‘Responsible users’ of AI</h2>



Mary de Wysocki, chief sustainability officer at technology company Cisco, made a similar point in that it was important to be “responsible users of [AI] where we know where can add the benefit and not just use it because it’s potentially fun.”



Meanwhile, Bertrand Piccard, founder and chairman of the environmental non-profit organization Solar Impulse Foundation, said AI is a “fantastic way to reduce energy consumption” if it is well managed.



Piccard referred to the example of smart electricity grids using this technology that “will integrate intermittent renewable energy … with storage, with the distribution, with the consumption which means that almost no energy will be lost.”



“So [these are] the things that give me hope,” he said.



A report by the Climate Action Against Disinformation (CAAD) coalition, published in March, looked at the risks that AI could pose amid the climate crisis, including its growing energy demand.



Based on its findings, the coalition recommended that regulators ensure technology companies are transparent in reporting the energy used and emissions produced by their AI models.



CAAD also said governments should enforce these transparency rules with “clear, strong penalties” if companies fail to comply.

107361439-1705616097110-gettyimages-1494104649-2023_vrtg_may_05_0003

Green hydrogen tech boss warns of AI energy consumption risk

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107400835-1713107631482-gettyimages-89133867-win308_sub305_002-820x462.jpeg" alt="" class="wp-image-476713" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107400835-1713107631482-gettyimages-89133867-win308_sub305_002-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107400835-1713107631482-gettyimages-89133867-win308_sub305_002-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107400835-1713107631482-gettyimages-89133867-win308_sub305_002-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107400835-1713107631482-gettyimages-89133867-win308_sub305_002-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/107400835-1713107631482-gettyimages-89133867-win308_sub305_002.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Win-initiative/neleman | Stone | Getty Images</figcaption></figure>



With about 100 million tracks available and over 600 million subscribers, helping listeners find the music they will love has become a navigational challenge for Spotify. It’s the promise of personalization and meaningful recommendations that will give the vast catalog more meaning, and that is central to Spotify’s mission.



The streaming audio giant’s suite of recommendation tools has grown over the years: Spotify Home feed,<a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__newsroom.spotify.com_2019-2D05-2D02_five-2Dways-2Dto-2Dmake-2Dyour-2Ddiscover-2Dweekly-2Dplaylists-2Deven-2Dmore-2Dpersonalized_&amp;d=DwMFaQ&amp;c=slrrB7dE8n7gBJbeO0g-IQ&amp;r=0CWepIbi9zbaptf4QjVSaQ&amp;m=h9I6Nob4JYekdULzm3jgGOyZdoRdqnNui4auLB7TtMlDKP_ZGUWB6PrjmpMYbufk&amp;s=0QBH1FDSLbahb2il0Si1F0IY6Roe1C9utj_AdXH9x-A&amp;e=" target="_blank" rel="noreferrer noopener"> </a>Discover Weekly<a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__newsroom.spotify.com_2019-2D05-2D02_five-2Dways-2Dto-2Dmake-2Dyour-2Ddiscover-2Dweekly-2Dplaylists-2Deven-2Dmore-2Dpersonalized_&amp;d=DwMFaQ&amp;c=slrrB7dE8n7gBJbeO0g-IQ&amp;r=0CWepIbi9zbaptf4QjVSaQ&amp;m=h9I6Nob4JYekdULzm3jgGOyZdoRdqnNui4auLB7TtMlDKP_ZGUWB6PrjmpMYbufk&amp;s=0QBH1FDSLbahb2il0Si1F0IY6Roe1C9utj_AdXH9x-A&amp;e=" target="_blank" rel="noreferrer noopener">,</a> Blend, Daylist, and<a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__newsroom.spotify.com_2021-2D03-2D31_introducing-2Dnew-2Dspotify-2Dmixes-2Dpersonalized-2Dplaylists-2Dfeaturing-2Dyour-2Dfavorite-2Dartists-2Dgenres-2Dand-2Ddecades_&amp;d=DwMFaQ&amp;c=slrrB7dE8n7gBJbeO0g-IQ&amp;r=0CWepIbi9zbaptf4QjVSaQ&amp;m=h9I6Nob4JYekdULzm3jgGOyZdoRdqnNui4auLB7TtMlDKP_ZGUWB6PrjmpMYbufk&amp;s=T0MnheFfxWq86g36mOmmh_m-Wzgl35V9p7jnRNYwGtM&amp;e=" target="_blank" rel="noreferrer noopener"> </a>Made for You Mixes. And in recent years, there have been signs that it is working. According to data released by Spotify at its 2022 Investor Day, artist discoveries every month on Spotify had reached 22 billion, up from 10 billion in 2018, “and we’re nowhere near done,” the company stated at that time.



Over the past decade or more, Spotify has been investing in AI and, in particular, in machine learning. Its recently launched AI DJ may be its biggest bet yet that technology will allow subscribers to better personalize listening sessions and discover new music. The AI DJ mimics the vibe of radio by announcing the names of songs and lead-in to tracks, something aimed in part to help ease listeners into extending out of their comfort zones. An existing pain point for AI algorithms — which can be excellent at giving listeners what it knows they already like — is anticipating when you want to break out of that comfort zone. 



The AI DJ combines personalization technology, generative AI, and a dynamic AI voice, and listeners can tap the DJ button when they want to hear something new, and something less-directly-derived from their established likes. Behind the dulcet tones of an AI DJ there are people, tech experts and music experts, who aim to improve the recommendation capacity of Spotify’s tools. The company has hundreds of music editors and experts across the globe. A Spotify spokesperson said the generative AI tool allows the human experts to “scale their innate knowledge in ways never before possible.” &nbsp;



The data on a particular song or artist captures a few attributes: particular musical features, and which song or artist it has been typically paired with&nbsp;among the millions of listening sessions whose data the AI algorithm can access.&nbsp;Gathering information about the song is a fairly easy process, including release year, genre, and mood — from happy to danceable or melancholic. Various musical attributes, such as tempo, key, and instrumentation, are also identified. Combining this data associated with millions of listening sessions and other users’ preferences helps to generate new recommendations, and makes the leap possible from aggregated data to individual listener assumptions.



In its simplest formulation, “Users who liked Y also liked Z. We know you like Y, so you might like Z,” is how an AI finds matches. And Spotify says it’s working. “Since launching DJ, we’ve found that when DJ listeners hear commentary alongside personal music recommendations, they’re&nbsp;more willing to try something new (or listen to a song they may have otherwise skipped),” the spokesperson said.&nbsp;



If successful, it’s not just listeners that get relief from a pain point. A great discovery tool is as beneficial to the artists seeking to build connections with new fans.



Julie Knibbe, founder &amp; CEO of Music Tomorrow — which aims to help artists connect with more listeners by understanding how algorithms work and how to better work with them — says everyone is trying to figure out how to balance familiarity and novelty in a meaningful way, and everyone is leaning on AI algorithms to help make this possible. Be she says the balance between discovering new music and staying with established patterns is a central unresolved issue for all involved, from Spotify to listeners and the artists.



“Any AI is only good at what you tell them to do,” Knibbe said. “These recommender systems have been around for over a decade and they’ve become very good at predicting what you will like. What they can’t do is know what’s in your head, specifically when you want to venture out into a new musical terrain or category.”&nbsp;



Spotify’s Daylist is an attempt to use generative AI to take into account established tastes, but also the varying contexts that can shape and reshape a listeners’ tastes across the course of a day, and make new recommendations that fit various moods, activities and vibes. Knibbe says it’s possible that improvements like these continue, and the AI gets better at finding the formula for how much novelty a listener wants, but she added, “the assumption that people want to discover new music all the time is not true.”



Most people still return, fairly happily, to familiar musical terrain and listening patterns.&nbsp;



“You have various&nbsp;profiles of listeners, curators, experts … people put different demands on the AI,” Knibbe said. “Experts are more difficult to surprise, but they aren’t the majority of listeners, who tend to be more casual,” and whose Spotify usage, she says, often amounts to creating a “comfortable background” to daily life.



Technology optimists often speak in terms of an era of “abundance.” With 100 million songs available, but many listeners preferring the same 100 songs a million times, it’s easy to understand why a new balance is being sought. But Ben Ratliff, a music critic and author of “Every Song Ever: Twenty Ways to Listen in an Age of Musical Plenty,” says algorithms are less solution to this problem than a further entrenching of it.



“Spotify is good at catching onto popular sensibilities and creating a soundtrack for them,” Ratliff said. “Its Sadgirl Starter Pack playlist, for instance, has a great name and about a million and a half likes. Unfortunately, under the banner of a gift, the SSP simplifies the oceanic complexity of young-adult depression into a small collection of dependably ‘yearny’ music acts, and makes hard clichés of music and sensibility form more quickly.” 



Works of curation that are clearly made by actual people with actual preferences remain Ratliff’s preference.&nbsp;Even a good playlist, he says, might have been made without much intention and conscience, but just a developed sense of pattern recognition, “whether it’s patterns of obscurity or patterns of the broadly known,” he said.



Depending on the individual, AI may have equal chances of becoming either a utopian or dystopian solution within the 100-million track universe.&nbsp;Ratliff says most users should keep it more simple in their streaming music journeys. “As long as you realize that the app will never know you in the way you want to be known, and as long as you know what you’re looking for, or have some good prompts at the ready, you can find lots of great music on Spotify.”&nbsp;

107400835-1713107631482-gettyimages-89133867-win308_sub305_002

How Spotify AI plans to know what’s going on inside your head, and find the right track for it

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-820x547.jpg" alt="" class="wp-image-476698" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People walk in front of closed shops as traders lock up their stores in protest of Ghana&#8217;s worsening economic conditions in Accra, Ghana October 19, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



JOHANNESBURG/ACCRA, April 15 (Reuters)&nbsp;&#8211;&nbsp;Ghana has failed to strike a deal with two bondholder groups to restructure $13 billion of international bonds, the government said on Monday, in a blow to its efforts to swiftly emerge from default and economic crisis.



Talks were derailed for now after the International Monetary Fund (IMF) indicated that the deal would not fit its debt sustainability parameters, which set out how much debt it thinks a country can afford, the government said in a statement.



Ghana had been in formal talks with two groups holding its international bonds since March 16 &#8211; one &#8220;international&#8221; group of Western asset managers and hedge funds and another one including regional African banks.



The regional African bondholder group had also rejected part of the proposed rework, including an option to retain the original value of the bonds with a longer maturity and lower coupon.



In December 2022, Ghana defaulted on most of its external debt of about $30 billion as it fell into economic crisis. Debt costs and inflation surged, reserves dwindled and the government found itself unable to access international bond markets.



Growth in the world&#8217;s second biggest cocoa producer has since started to recover, with the economy growing 2.9% in 2023, better than the 2.3% the IMF predicted in January.



&#8220;The Government is actively working on solutions that it believes would be consistent with IMF program parameters under the set of policies currently being discussed, with the objective of reaching a mutual agreement acceptable to all parties,&#8221; the government said in the regulatory statement.



The dollar-denominated bonds, known as eurobonds, fell between 2.6 and 3.2 cents, with most of the maturities trading between the 46 and 48 cents in the dollar mark, according to Tradeweb data.&nbsp;XS1968714540=TE



Regional bondholders believe the Ghanaian economy&#8217;s strong performance compared to the IMF&#8217;s original analysis of its debt sustainability could a pave the way to a deal by the end of 2024, Samuel Sule, Chief Executive Officer at Renaissance Capital Africa and financial advisor to the group, told Reuters.



The IMF approved a $3 billion, three-year loan program to Ghana in May 2023, contingent on Ghana undergoing reforms and finishing a debt restructuring that the fund deems sustainable.



Ghana&#8217;s government said the IMF had assessed the proposed bondholder deal against debt sustainability thresholds from the first review of the loan program, which was finished in January. The second review, in which thresholds could change, is ongoing.



An advisor to the international bondholder committee said in a statement that restructuring discussions would continue this week.



<h2 class="wp-block-heading" id="h-at-some-point">&#8216;AT SOME POINT&#8217;</h2>



Ghana &#8211; together with Zambia and Ethiopia &#8211; is reworking debt under the G20 Common Framework, a process set up during the COVID-19 pandemic to speed up debt overhauls.



However, progress has been slow.



Zambia struggled to get its bond restructuring deal over the line amid objections from official creditors, though it eventually reached an agreement in principle in late March.



Ghana is &#8220;confident&#8230; at some point&#8221; it will reach an agreement with bondholders, Finance Minister Mohammed Amin Adam told a press conference on Saturday.



The IMF&#8217;s Ghana mission chief Stephane Roudet told the joint news briefing, held to coincide with a staff-level agreement on the IMF&#8217;s second review of its $3 billion loan programme, that the Fund needed to continue to see progress in talks with bondholders.



Ghana is aiming to cut $10.5 billion from its external debt repayments and interest costs due from 2023 to 2026. It reached an agreement in principle in January to rework $5.4 billion of loans with official creditors, which will need to confirm that the bondholder deal is comparable to what they offered.



The bondholder deal that had been proposed would have included a heavily discounted option of three bonds maturing between 2030 and 2038 with coupons of 5% until 2027 and 6.5% after. Another &#8220;PAR option&#8221; offering no principal reduction would have matured in 2043, with a 1.5% coupon.



Bondholders who signed up for either option would have also received a separate bond representing accrued &#8220;Past Due Interest&#8221;. This bond and the discounted options would have had a nominal, face value haircut of 33%.



Some bondholders had favoured the use of so-called state-contingent debt instruments, which could increase payouts if Ghana&#8217;s economy performs better on agreed metrics, as a way of bridging differences in their outlook.



Bondholders had also pushed for a number of extra conditions to be included. IMF spokespeople did not immediately respond to a request for comment.



(Reporting by Rachel Savage and Maxwell Akalaare Adombila; Additional reporting by Bhargav Acharya in Johannesburg and Mrinmay Dey in Bangalore, Editing by Karin Strohecker, Lincoln Feast and Ros Russell)

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Oil jumps 3%, spot gold hits record high after Israel launches strike in Iran

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IMF says South Africa needs a debt ceiling as public debt spirals

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Gold is shining ‘bright like a diamond’ and could hit $3,000, says Citi

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How Spotify AI plans to know what’s going on inside your head, and find the right track for it

Ghana fails to reach debt deal with international bondholders

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