<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LSUYGZLQFJNSJMK2KNF3ABV4GM-820x429.jpg" alt="" class="wp-image-463313" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LSUYGZLQFJNSJMK2KNF3ABV4GM-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LSUYGZLQFJNSJMK2KNF3ABV4GM-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LSUYGZLQFJNSJMK2KNF3ABV4GM-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LSUYGZLQFJNSJMK2KNF3ABV4GM-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LSUYGZLQFJNSJMK2KNF3ABV4GM.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A customer compares prices while shopping at a Pick and Pay shop in East London, in the Eastern Cape province, South Africa, March 17, 2023. REUTERS/Siphiwe Sibeko/FILE PHOTO</figcaption></figure>



March 6 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s business confidence slipped in the first quarter of 2024 amid&nbsp;ongoing&nbsp;load shedding, port congestion and inflation, a survey showed on Wednesday.



The business confidence index fell to 30 points in the&nbsp;first quarter&nbsp;from 31 points in the previous three months, according to a survey by the Rand Merchant Bank (RMB) and compiled by the Bureau for Economic Research.



&#8220;The same supply constraints, including load-shedding, logistical challenges, and heightened global and domestic policy uncertainty, keep South African businesses in a stranglehold,&#8221; said Isaah Mhlanga, chief economist and head of research at RMB.



Retail confidence fell by 13 points quarter-on-quarter to 34 points, weighed&nbsp;down&nbsp;by poor demand for consumer durable goods and&nbsp;an overall&nbsp;fall in retailers&#8217; profitability.



The country&#8217;s manufacturing sector was dragged down by weaker domestic and export demand,&nbsp;according to the survey. Manufacturing confidence fell by five points to 21 points.



&#8220;Worryingly, respondents turned even more downbeat about investment and business conditions going forward,&#8221; it&nbsp;said.



On the other hand, builders, wholesalers and car dealers remained upbeat as contractor activity improved and demand for consumer goods rose.



Meanwhile, South Africa&#8217;s private sector activity expanded in February for the first time in six months as staffing and purchasing levels increased amid stronger confidence, an S&amp;P Global South Africa Purchasing Managers&#8217; survey showed on Tuesday.



&#8220;Looking further ahead, the expectation of moderating inflation&#8230; and possibly lower borrowing costs due to an expected shallow cutting cycle of the policy interest rate may help with local consumer demand in the second-half of the year,&#8221;&nbsp;RMB&#8217;s Mhlanga said.



(Reporting by Prerna Bedi in Bengaluru; Editing by Sonia Cheema)

LSUYGZLQFJNSJMK2KNF3ABV4GM

South Africa’s business confidence slips in Q1, survey shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg" alt="" class="wp-image-463267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Copper plates on wagons ready for onward shipping at the Mufulira refinery, operated by Mopani Copper Mines Plc, in Mufulira, Zambia, on Friday, May 6, 2022. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



KoBold Metals, a mining startup backed by billionaires including Bill Gates and Jeff Bezos, is bullish on the discovery potential of some of the most sought-after energy transition metals.



It comes shortly after the Silicon Valley-based metals exploration company announced the rare discovery of a vast copper deposit in Zambia.



Josh Goldman, president of KoBold Metals, told CNBC that the firm’s investors were thrilled by the discovery, particularly at a time when the mining industry is struggling to keep pace with a metals-intensive energy transition.



“They are feeling delighted about this news because this is what we set out to do. The point of the company is to discover, find and develop mineral resources that we need for the energy transition,” Goldman said via videoconference.



“This is the first major win for the company, and it is among the most extraordinary ore bodies in the world,” he added.



KoBold Metals says it uses artificial intelligence to create a “treasure map” to help find new deposits of materials such as copper, lithium, cobalt and nickel. The company currently has more than 60 exploration-stage projects across several countries.



The startup’s investors include U.S. venture capital firm Andreessen Horowitz, Norwegian energy giant Equinor, the world’s largest mining group BHP, and Breakthrough Energy, a climate and technology fund founded by Bill Gates in 2015.



Breakthrough Energy’s backers include Bridgewater Associates’ Ray Dalio, Virgin Group’s Richard Branson, Alibaba’s Jack Ma and Amazon’s Jeff Bezos.



KoBold Metals is now focusing on advancing its Mingomba project in Zambia, which it expects to start producing copper within 10 years, and discovering the next trove of critical minerals, according to Goldman.



“The Central African copper belt is the part of the world where you can find things of this extraordinary grade. And that’s why we are there. The geology is extraordinary,” he said.



“It is not just that there haven’t been deposits like this. It’s that there are more to be found. Here is Mingomba — and then where is the next Mingomba after this? This is the part of the world and style of deposit where we can find resources of this scale and quality, and Zambia provides an operating environment that is really extraordinary,” he added.



Copper is in high demand due to its use in renewable energy infrastructure, energy storage systems and electric vehicles. Zambia is Africa’s second-largest copper producer after the Democratic Republic of the Congo.



<h2 class="wp-block-heading" id="h-the-potential-for-discovery-is-great"><a></a>‘The potential for discovery is great’</h2>



KoBold Metals said that most copper currently being mined has an ore grade of around 0.6%, whereas its Mingomba deposit has copper ore grades of more than 5%.



“That means that you have to mine a lot less rock in order to get the same amount of copper,” Goldman said.



“For a 0.5% ore deposit, you have to mine 200 kilograms of rock to get 1 kilogram of copper. For a 5% ore deposit, you have to mine 20 kilograms of rock to get 1 kilogram of copper. So, that’s a lot less Earth that you have to disturb, that’s a lot less waste that you create.”



Goldman said KoBold Metals plans to list shares publicly in the next three to four years.



“We do expect in due course that being a public company is likely going to be the best way to finance the business,” he added.



“The point of the company is to be serially successful in exploration — and to improve exploration success overall and to decrease the capital intensity of discovery,” Goldman said. “We think the potential for discovery is great. There is a lot more to be found in Zambia.”

107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER

Bill Gates-backed startup confident it can unearth more buried treasure after a historic copper find

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-820x462.jpeg" alt="" class="wp-image-452310" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Gold purchases from central banks led to last year’s surge, with purchases exceeding 1,000 tons for two consecutive years.
Traffic_analyzer | Istock | Getty Images</figcaption></figure>



March 6 (Reuters)&nbsp;&#8211;&nbsp;Gold prices held above the $2,100 level on Wednesday, near a record peak hit in the previous session as hopes for U.S. rates easing by mid-year mount, while traders awaited remarks on the economy&#8217;s health from Federal Reserve Chair Jerome Powell.



Spot gold&nbsp;XAU=&nbsp;edged down 0.1% at $2,126.13 per ounce, as of 0458 GMT. U.S. gold futures&nbsp;GCcv1&nbsp;fell 0.4% to $2,134.30.



Spot prices hit a record peak of $2141.59 per ounce overnight on Tuesday, rallying for a fifth straight session.



Gold&#8217;s rally is sentiment driven, which was triggered by last week&#8217;s poor U.S. economic data that gave little more clarity for a June rate cut, said Ajay Kedia, director at Kedia Commodities, Mumbai, adding, without other factors at play, such as dollar&#8217;s movement, or any surge in geopolitical tensions, gold could see profit taking.



Traders are weighing in risks to the U.S. economic health in a high-interest rate environment and would be tuning into Powell&#8217;s first day of semi-annual congressional testimony for more clarity on the same.



U.S. services industry growth slowed a bit in February amid a decline in employment and new orders for U.S.-manufactured goods dropped more than expected in January.



Data on the U.S. labour market due this week will also be closely watched for. Any downside surprise could help support gold.



Traders see a 71% chance for a June Fed rate cut. Lower rates boost the appeal of non-yielding bullion.



&#8220;The central banks are buying more than 1,000 tons of gold consecutively from last two years versus the historic average of 300 (tons). This has made-up for all the loss in the retail and ETF demand,&#8221; said Kunal Shah, head of research, Nirmal Bang Commodities, Mumbai.&nbsp;GOL/ETF



Spot platinum&nbsp;XPT=&nbsp;rose 0.4% to $884.16 per ounce, and palladium&nbsp;XPD=&nbsp;rose over 1% to $958.20, while silver&nbsp;XAG=&nbsp;dropped 0.3% to $23.63.



(Reporting by Harshit Verma in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)

107308670-1695930955313-gettyimages-1478432952-118

Gold holds above $2,100 near record high, focus on Powell testimony

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-820x547.jpg" alt="" class="wp-image-459177" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/STGRVJG24JLG5H7LHUH3IYPOV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A sign board is seen near the Sibanye gold mine in Westonaria, west of Johannesburg, April 6, 2016. REUTERS/Siphiwe Sibeko</figcaption></figure>



March 5 (Reuters)&nbsp;&#8211;&nbsp;Sibanye Stillwater&nbsp;SSWJ.J&nbsp;on Tuesday reported a $2 billion annual loss and scrapped its final dividend, hurt by a slump in platinum group metal (PGM) prices that is forcing South African mining companies to restructure and cut jobs.



The hit on Sibanye&#8217;s income comes as the company advances projects including a lithium mine in Finland and plans to develop another one in the U.S.



CEO Neal Froneman said Sibanye may consider a capital raise if the lower metal prices persist for longer, but he ruled out a rights issue.



&#8220;We are going to raise additional capital, but this perception that it&#8217;s going to be a rights issue is completely wrong,&#8221; he said during a results call.



The precious metals producer swung to the loss last year from a $1.2 billion profit the previous year and record earnings in 2021, when prices for rhodium and palladium rallied.



It reported impairments of $2.6 billion at its U.S. palladium mines, a nickel operation in France and a gold mine in South Africa due in part to the significant decline in metal prices and an uncertain outlook.



The loss comes after Sibanye embarked on a deal spree, buying battery metal assets in France, Finland, Australia and the U.S.



The fall in prices for PGMs, mostly used by automakers to curb toxic emissions, is forcing South African mining companies to restructure and cut jobs.



Froneman said in a statement that more restructuring might be required, especially at Sibanye&#8217;s U.S. PGM operations and the Sandouville nickel refinery in France.



&#8220;We recognize however that if low commodity prices persist, earnings are going to remain under pressure and, with ongoing inflationary cost pressure, there may be further restructuring required,&#8221; Froneman said.



Sibanye&#8217;s peers Anglo American PlatinumAMSJ.J and Impala PlatinumIMPJ.J are also restructuring loss-making operations and cutting costs, a process which will cost thousands of jobs.



(Reporting by Nelson Banya and Felix Njini; Editing by Jason Neely, Jan Harvey and David Evans)

FILE PHOTO: FILE PHOTO: A sign board is seen near the Sibanye gold mine in Westonaria

Sibanye falls to $2 bln loss, weighs capital raise if metal prices worsen

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-820x536.jpg" alt="" class="wp-image-463006" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Binance logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File Photo </figcaption></figure>



Binance on Tuesday announced that it will discontinue all Nigerian naira services, amid an ongoing legal dispute between the U.S. cryptocurrency firm remains and Africa’s most populous country.



In an update posted on its website, Binance said that, starting this Friday, any remaining naira balances in user accounts will be automatically converted to Tether, a cryptocurrency stablecoin pegged to the U.S. dollar.



The company will not support any deposits of Naira after 2 p.m. UTC on Tuesday and will no longer support withdrawals of the currency after 6 a.m. UTC on Friday, the announcement said.



Nigeria is also one of the world’s biggest crypto markets, but the Nigerian government has demanded almost $10 billion in compensation from Binance, which it accuses of manipulating foreign exchange rates via currency speculation and rate fixing, and arrested two of the firm’s senior executives last week, according to multiple media reports.



The Nigerian naira has lost almost 70% of its value over the past few months, as Africa’s largest economy faces a currency crisis and soaring inflation.

TWPFC2BD5BP3RMHTKU7RSFBWQM

Binance to discontinue Nigerian currency services as legal squabble deepens

<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/TAQBB7LBMNPSFNKLQIHOTWTOJM-1-820x547.jpg" alt="" class="wp-image-462971" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TAQBB7LBMNPSFNKLQIHOTWTOJM-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TAQBB7LBMNPSFNKLQIHOTWTOJM-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TAQBB7LBMNPSFNKLQIHOTWTOJM-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TAQBB7LBMNPSFNKLQIHOTWTOJM-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TAQBB7LBMNPSFNKLQIHOTWTOJM-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TAQBB7LBMNPSFNKLQIHOTWTOJM-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view shows solar panels at the green hydrogen proof-of-concept site in Vredendal, Western Cape, South Africa, November 15, 2022. REUTERS/Esa Alexander</figcaption></figure>



CAPE TOWN, March 5 (Reuters)&nbsp;&#8211;&nbsp;The Southern African Power Pool (SAPP) and investment advisers Climate Fund Managers on Tuesday launched a new $1.3 billion target fund to build&nbsp;high-voltage transmission lines linking countries in the region.



The Regional Transmission Infrastructure Financing Facility (RTIFF) starts with $20 million in commitments from SAPP, and aims for a first close of $500 million in 2025 in a bid to overcome a key obstacle constraining growth in an evolving energy sector.



Finance will be raised from public and private sector investors locally and internationally, a joint statement said.



Despite an abundance of energy sources in Africa, a lack of connections between countries has hampered integration and trade among SAPP&#8217;s 12 members, which include regional economic heavyweight South Africa and top copper exporter Zambia.



&#8220;RTIFF dismantles this by enabling the private sector to work alongside public sector utilities to roll out new transmission lines at scale,&#8221;&nbsp;Victor Mapani, chairperson of the SAPP executive committee, said&nbsp;in a statement.



The facility,&nbsp;with&nbsp;a fund life of between 20 and 25&nbsp;years, is&nbsp;expected to reach a final close of $1.3 billion within two years.



A renewable energy&nbsp;push, including wind, solar and&nbsp;hydro, has highlighted the dearth of connections across the region where projects, often in remote areas, are unable to connect to national grids.



A competitive electricity market with daily trades, SAPP is aiming to connect Angola, Malawi and Tanzania to the platform and has identified eight priority transmission projects, officials said at a press launch.



&#8220;Since Malawi is already being connected to Mozambique and Tanzania is being connected to Zambia, the next key project is the connection of Angola to Namibia,&#8221; Stephen Dihwa, executive director of SAPP told Reuters.



The Angola-Namibia interconnector is estimated to cost $356 million, he said, around a tenth of the total investment needed for transmission lines by 2040 to enhance regional integration.



South Africa&#8217;s debt-ridden power utility Eskom, which requires around 350 billion rand ($18.41 billion) over the next decade to upgrade its transmission network, is wooing the private sector for investment to overcome the country’s worst electricity shortages on record.



&#8220;The lack of investment in grid infrastructure is one of the reasons for ongoing blackouts in many parts of Southern Africa,&#8221; Amit Mohan, head of private credit at CFM said.



($1 = 19.0136 rand)



(Reporting by Wendell Roelf; Editing by Kirsten Donovan and Chizu Nomiyama)

Greener pastures: Is South Africa ready to profit from green hydrogen?

New $1.3 bln energy fund for transmission links across Southern 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/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



PRETORIA, March 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s economy grew 0.1% in the fourth quarter of 2023 in quarter-on-quarter seasonally adjusted&nbsp;terms, narrowly avoiding a technical recession,&nbsp;statistics agency data showed on Tuesday.



The economy grew 0.6% in 2023, said Statistics South Africa.



The fourth quarter growth rate was slightly lower than&nbsp;the 0.3% growth&nbsp;economists polled by Reuters had predicted&nbsp;ZAGDPN=ECI.



Tuesday&#8217;s data is the last gross domestic product (GDP) release before national and provincial elections in May.



Africa&#8217;s most industrialised economy has stagnated over the last decade,&nbsp;with GDP averaging 0.8% since 2012.



Inefficiencies at state-owned power utility Eskom and port and freight rail company Transnet are one reason why growth has been so weak.



A cost-of-living crisis that has squeezed consumer spending has also dented growth.



A technical recession is defined as two consecutive quarters of contracting economic output. The economy shrunk 0.2% in the third quarter of 2023.



(Reporting by Kopano Gumbi and Sfundo Parakozov; Writing by Nellie Peyton; Editing by Alexander Winning)

Illustration photo of South African rand

South Africa narrowly avoids technical recession in Q4

<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/WGOK2WU4INNKBOOKDM7ZFW7OWM-820x547.jpg" alt="" class="wp-image-462896" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WGOK2WU4INNKBOOKDM7ZFW7OWM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WGOK2WU4INNKBOOKDM7ZFW7OWM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WGOK2WU4INNKBOOKDM7ZFW7OWM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WGOK2WU4INNKBOOKDM7ZFW7OWM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WGOK2WU4INNKBOOKDM7ZFW7OWM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WGOK2WU4INNKBOOKDM7ZFW7OWM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of French TV channel &#8216;Canal Plus&#8217; is pictured outside a company building in Issy-les-Moulineaux near Paris, France, August 17, 2022. REUTERS/Sarah Meyssonnier/File Photo</figcaption></figure>



JOHANNESBURG, March 5 (Reuters)&nbsp;&#8211;&nbsp;French media group Vivendi&#8217;s&nbsp;VIV.PA&nbsp;Canal+ has raised its offer to buy all the shares of South Africa&#8217;s MultiChoice&nbsp;MCGJ.J&nbsp;that it does not already own, the companies said on Tuesday.



Canal+, the biggest shareholder in MultiChoice, will offer 125 rand per share, valuing the pending shares at about 33.7 billion rand ($1.77 billion) according to Reuters calculations, after its previous offer of 105 rand was rejected last month.



On Monday, Canal+ said it would make a firm offer by no later than April 8 after the Takeover Regulations Panel said it should immediately announce one because its 35.01% shareholding in MultiChoice triggered a mandatory offer requirement.



MultiChoice, Africa&#8217;s biggest pay-tv company, had said the 105 rand per share offer significantly undervalued the group.



Both companies said they intend to mutually co-operate and &#8220;accordingly, MultiChoice will give customary exclusivity undertakings to Canal+.&#8221;



Once the mandatory offer is made, the Independent Board of MultiChoice will be constituted and will, after receipt of the independent expert&#8217;s opinion, provide its opinion and recommendation on the offer, the companies added.



($1 = 19.0542 rand)



(Reporting by Nqobile Dludla in Johannesburg and Radhika Anilkumar in Bengaluru; Editing by Varun H K)

FILE PHOTO: The logo of French TV channel ‘Canal Plus’ is pictured outside a company building in Issy-les-Moulineaux

Canal+ raises bid for South Africa’s MultiChoice

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="520" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-860462600-820x520.jpg" alt="" class="wp-image-462631" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-860462600-820x520.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-860462600-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-860462600-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-860462600-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-860462600-1536x973.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-860462600-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">HONG KONG, HONG KONG &#8211; OCTOBER 11: A man holds an Apple iPad Mini as he uses Apple Music app on October 11, 2017 in Hong Kong, Hong Kong. (Photo by studioEAST/Getty Images)</figcaption></figure>



The European Commission, the European Union’s executive arm, on Monday hit&nbsp;Apple&nbsp;with a 1.8 billion euro ($1.95 billion) antitrust fine for abusing its dominant position on the market for the distribution of music streaming apps.



The Commission said it found that Apple had applied restrictions on app developers that prevented them from informing iOS users about alternative and cheaper music subscription services available outside of the app.



Apple also banned developers of music streaming apps from&nbsp;providing any instructions&nbsp;about how users could subscribe to these cheaper offers, the Commission alleged.



This is Apple’s first antitrust fine from Brussels and is among one of the biggest dished out to a technology company by the EU.



Apple shares were down around 1.6% in pre-market trade in the U.S.



The European Commission opened an investigation into Apple after a complaint from Spotify in 2019. The probe was narrowed down to focus on contractual restrictions that Apple imposed on app developers which prevent them from informing iPhone and iPad users of alternative music subscription services at lower prices outside of the App Store.



Apple’s conduct lasted almost 10 years, according to the Commission, and “may have led many iOS users to&nbsp;pay significantly higher prices for music streaming subscriptions&nbsp;because of the high commission fee imposed by Apple on developers and passed on to consumers in the form of higher subscription prices for the same service on the Apple App Store.”



<h2 class="wp-block-heading" id="h-apple-response"><a></a>Apple response</h2>



In a fiery response to the fine, Apple said Spotify would stand to gain the most from the EU pronouncement.



“The primary advocate for this decision — and the biggest beneficiary — is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation,” Apple said in a statement.



“Today, Spotify has a 56 percent share of Europe’s music streaming market — more than double their closest competitor’s — and pays Apple nothing for the services that have helped make them one of the most recognisable brands in the world.”



Apple said that a “large part” of Spotify’s success is thanks to the Cupertino giant’s App Store, “along with all the tools and technology that Spotify uses to build, update, and share their app with Apple users around the world.”



Apple said that Spotify pays it nothing. That’s because instead of selling subscriptions in their iOS app, Spotify sell them via their own website stead. Apple does not collect a commission on those purchases.



Developers over the years have spoken out against the 30% fee Apple charges on in-app purchases.



Spotify in a statement called the Commission’s decision “an important moment in the fight for a more open internet for consumers.”



Apple’s rules muzzled Spotify and other music streaming services from sharing with our users directly in our app about various benefits—denying us the ability to communicate with them about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks,” Spotify said.



“Of course, Apple Music, a competitor to these apps, is not barred from the same behaviour.”



The Commission said that Apple prevented developers of music streaming apps from informing their iOS users within their apps about prices of subscriptions or offers available elsewhere.



App developers could not include links in their apps leading iOS users to the app developers’ websites where alternative subscription could be bought, the Commission alleges.



The EU’s executive arm also said that Apple prevented app developers from contacting their own newly-acquired users — for example via email — to inform them about alternative pricing options.



In a press briefing, EU antitrust chief Margrethe Vestager qualified the basic amount of the fine for Apple, excluding the 1.8 billion euro lumpsum, as “quite small” and likened it to a “speeding ticket, or a parking ticket” relative to the company’s scale.



“When Apple imposes these anti-steering provisions on the music provider, they as developers have no other choice than to either accept them or abandon the App Store. Apple with its App Store currently holds a monopoly,” Vestager said.



She added that the Commission has ordered Apple to remove the so-called anti-steering provisions and to “refrain from similar practices in the future.”



<h2 class="wp-block-heading"><a></a>EU scrutiny on tech giants rises</h2>



The fine will ramp up tensions between Big Tech and Brussels at a time when the EU is increasing scrutiny of these firms.



Last year, the Commission designated Apple among other tech firms like&nbsp;Microsoft&nbsp;and&nbsp;Meta&nbsp;as&nbsp;“gatekeepers” under a landmark regulation called the Digital Markets Act, which broadly came into effect last year.



The term gatekeepers refers to massive internet platforms which the EU believes are restricting access to core platform services, such as online search, advertising, and messaging and communications.



The Digital Markets Act aims to&nbsp;clamp down on anti-competitive practices&nbsp;from tech players, and force them to open out some of their services to other competitors. Smaller internet firms and other businesses have complained about being hurt by these companies’ business practices.



These laws have already had an impact on Apple. The Cupertino, California-based giant announced plans this year to&nbsp;open up its iPhone and iPad to alternative app stores&nbsp;other than its own. Developers have long-complained about the 30% fee Apple charges on in-app purchases.



Vestager fired a warning shot to Apple in regards to the DMA.



“In a couple of days on the 7th of March, Apple will have to comply with the full list of dos and don’ts under the DMA. Among others, Apple can no longer impose rules such as the anti-steering obligations … and this holds for any app on the App Store, not just music streaming apps.”



&#8211; CNBC’s Ryan Browne and Ruxandra Iordache contributed to this article.

Young man holds a smart device while using Apple Music app

Apple hit with more than $1.95 billion EU antitrust fine over music streaming

<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, March 4 (Reuters)&nbsp;&#8211;&nbsp;Vivendi&#8217;s&nbsp;VIV.PA&nbsp;French media company Canal+ will publish a firm intention to buy shares of South African pay-TV company MultiChoice&nbsp;MCGJ.J&nbsp;that it does not already own by no later than April 8, it said on Monday.



This follows a ruling on Wednesday by South Africa&#8217;s Takeover Regulations Panel that required Canal+ to immediately make a firm intention announcement because its 35.01% shareholding in MultiChoice triggered a mandatory offer requirement when it raised its stake earlier in February.



&#8220;Canal+ respects the decision taken by the Panel, and will comply with it. On this basis, Canal+ confirms that it has applied for and received from the Panel an exemption from adhering to the timing requirements,&#8221; the media group said.



The panel has extended the time period by 25 business days, it added.



Last month Canal+, the biggest shareholder in MultiChoice, offered to buy the rest of the company for 105 rand per share, however MultiChoice rejected its offer, saying it significantly undervalued the group.



MultiChoice said it notes the announcement and that the board will continue to act in the best interests of the company and its shareholders.



Shares in the owner of DStv and on-demand video streaming platform Showmax were up 2.56% at 0840 GMT.



(Reporting by Nqobile Dludla, Editing by Louise Heavens and Angus MacSwan)

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

Canal+ to make firm offer to buy remainder of S.Africa’s MultiChoice by April 8

<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/FDBBWF6ACROQDKEJOGUF5E2RYU-820x547.jpg" alt="" class="wp-image-462583" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FDBBWF6ACROQDKEJOGUF5E2RYU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FDBBWF6ACROQDKEJOGUF5E2RYU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FDBBWF6ACROQDKEJOGUF5E2RYU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FDBBWF6ACROQDKEJOGUF5E2RYU-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FDBBWF6ACROQDKEJOGUF5E2RYU-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FDBBWF6ACROQDKEJOGUF5E2RYU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Chickens are seen at a poultry farm at Hartbeesfontein, a settlement near Klerksdorp, in the North West province, South Africa, August 15, 2018. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, March 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s RCL&nbsp;RCLJ.J&nbsp;will unbundle its Rainbow Chicken business and list it on the Johannesburg stock exchange as part of a strategic review, the food producer said on Monday as it reported half-year earnings growth of 52.6%.



RCL, which owns brands such as Selati sugar, Ouma rusks and Yum Yum peanut butter, has been assessing whether its portfolio delivers sustainable earnings and value for shareholders.



It had resolved to bulk up its fast-moving consumer goods business through acquisitions while separating its chicken, sugar and Vector Logistics into separate legal entities. Vector was eventually sold last year.



On Monday, RCL said the board gave its preliminary approval on March 1 to pursue the formal separation of Rainbow through an unbundling.



&#8220;The board is of the view that the unbundling of Rainbow will enable both businesses to pursue their respective growth ambitions and investment theses in a focused manner and with improved alignment on capital allocation priorities,&#8221; the food producer added.



The poultry unit had been the company&#8217;s mainstay business until about 10 years ago when its purchase of Foodcorp gave it exposure to branded consumer products like grocery.



The group now wants to focus on those businesses rather than &#8220;commodity non-core investment areas&#8221;, Group Chief Financial Officer Rob Field told Reuters.



Well into the second year of the turnaround phase, Rainbow&#8217;s underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 225.1 million rand ($11.83 million) to 286.8 million rand in the six months to end-December, notwithstanding the 184 million rand impact of Avian Influenza.



Rainbow&#8217;s performance, including a 10.8% rise in revenue to 7.2 billion rand, was mainly due to better agricultural performance aided by a new breed rollout, cost control, improved margins and higher retail and wholesale volumes.



&#8220;We feel like we&#8217;ve sufficiently turned the corner now. There is proper evidence of the turnaround and that the business is sustainable into the future,&#8221; Field said.



RCL reported headline earnings per share from continuing operations &#8211; a profit measure &#8211; of 81.2 cents and group revenue growth of 8.4% to 20.1 billion rand, largely due to higher volumes at Rainbow, higher sugar prices and the inclusion of the Sunshine bread bakery business.



($1 = 19.1122 rand)



(Reporting by Nqobile Dludla; Editing by Clarence Fernandez and Janane Venkatraman, Kirsten Donovan )

Chickens are seen at a poultry farm at Hartbeesfontein, a settlement near Klerksdorp, in the North West province

South Africa’s RCL Foods to spin-off and list Rainbow Chicken business

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="482" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-820x482.jpeg" alt="" class="wp-image-462538" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-820x482.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-300x176.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-153x90.jpeg 153w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-768x452.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-1536x904.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds.jpeg 1700w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A Chinese flag flutters on top of the Great Hall of the People ahead of the opening ceremony of the Belt and Road Forum (BRF), to mark 10th anniversary of the Belt and Road Initiative, in Beijing, China October 18, 2023. Edgar Su | Reuters</figcaption></figure>



BEIJING — China is set this week to kick off its annual parliamentary meetings, which investors are watching closely for signals on economic stimulus.



The country’s gross domestic product grew by 5.2% in 2023, but overall recovery from the Covid-19 pandemic was slower than many had expected. A prolonged slump in the massive real estate market and falling global demand for Chinese exports have contributed to low levels of consumer and business sentiment.



That’s all led to questions over whether Beijing will step in with large-scale support. So far, authorities have been relatively reserved.



Beijing signaled in December that any new policy support would be “appropriate,” said Wang Jun, chief economist at Huatai Asset Management, adding “there’s no way” that stimulus would be as large as it was in 2008. That’s according to a CNBC translation of his Mandarin-language remarks.



China’s economic policy is typically set at an annual meeting in December by leaders within the ruling Communist Party of China.



The meetings this month, known as the “Two Sessions,” are at the government, instead of party, level and typically release more details on policy plans, such as the GDP target for the year.



Wang said he is watching for comments on authorities’ plans for the real estate sector, capital markets and local government finances.



Back in 2008, when the world was reeling from the financial crisis, China unleashed a massive stimulus package to sustain growth with greater demand. While the economy rebounded, the measures drew criticism for a resulting surge in local government debt.



Beijing in recent years has emphasized the need to stem financial risks and clamped down on real estate developers’ high reliance on debt for growth, an issue tied to local government finances. This time around, China’s monetary policy also faces constraints on how far it can deviate from the U.S. Federal Reserve’s interest rate path.



<h2 class="wp-block-heading" id="h-gdp-and-other-economic-targets"><a></a>GDP and other economic targets</h2>



The Chinese People’s Political Consultative Conference, an advisory body, is set to kick off its annual meeting on Monday.



The following day the National People’s Congress legislature is due to begin its meeting. Tuesday is also when the country’s premier is expected to share the year’s targets for GDP, employment and other economic indicators in what’s called the “Government Work Report.”



“The target will likely remain relatively high,” said Bank of China’s chief researcher Zong Liang, noting GDP grew by 5.2% last year. That’s according to a CNBC translation of his Mandarin-language remarks.



He expects the target for the fiscal deficit will be around 3.5% and that monetary policy will also be relatively loose.



China in October made a rare announcement that it was raising the fiscal deficit to 3.8%, from 3%.



“We expect the on-budget deficit – which excludes special bonds, policy bank bonds, and local government financing vehicle (LGFV) debt – to be set at 3.0%-3.5% of GDP, narrowing from last year’s 3.8% of GDP,” Louise Loo, lead economist at Oxford Economics, said in a report Thursday.



“We expect a modest step-up in the local government special bonds (LGSB) quota, to RMB4.0tn from RMB3.8tn last year,” Loo said. “Authorities may also finally put pen to paper on the reported RMB1tn in planned central government special bonds (CGSBs), reflecting the increasing role of central coffers amid a continued debt cleanup process among local government entities this year.”



“On balance, the additional fiscal impulse this year, assuming a bazooka-like fiscal package is not forthcoming, is unlikely to be particularly large.”



<h2 class="wp-block-heading"><a></a>Watching for comments on real estate and tech</h2>



The Two Sessions is also a period for releasing the budget and for delegates to discuss needed policy changes and plans.



“Speeches by top policymakers will be key to watch, including interviews of key ministers, such as Minister of Industry and Information Technology, Minister of Science and Technology, and Minister of Housing and Urban-Rural Development. These key ministers will discuss various policies in more detail,” Goldman Sachs analysts said in a report.



During the parliamentary meetings, Chinese officials will likely also discuss plans to bolster tech and innovation, in line with a recent high-level call to bolster “new productive forces.”



Authorities announced Monday that China’s premier would not hold the usual press conference at this year’s parliamentary meeting, and that such press meetings are canceled for the rest of the current congressional term, which would typically run for another three years. The announcement noted there would be more ministry-level press conferences on the economy and foreign affairs, but did not say whether the foreign minister would hold a press conference as has been the case in past years.



The advisory body is set to conclude its annual meeting on Sunday, March 10, according to an official announcement. The National People’s Congress is set to end the afternoon of the following day, Monday, March 11.



Bank of China’s Zong expects that policymakers will send signals on opening up borders or other business opportunities to foreigners, as well as improving the environment for non-state-owned enterprises.



However, specific implementation details are typically left to individual ministries to announce, following high-level directives from Beijing.



Any direct support for consumption is unlikely, but broader moves to improve the social safety net would be of note.



“On the demand side, the delayed Third Plenum [of the Chinese Communist Party’s Central Committee] (originally set for December) suggests that longer term demand policies – including on fiscal, tax, and pensions reforms – may still be in initial stages of discussion, but could still warrant a mention here,” Loo said.



<h2 class="wp-block-heading"><a></a>The macro context</h2>



This year’s Two Sessions follow regular leadership reshuffles that have strengthened the ruling Communist Party of China’s control of the government.



At the parliamentary meeting last year, Beijing announced an overhaul of finance and tech regulation by establishing party-led commissions to oversee the two sectors. Chinese President Xi Jinping, who is also the party’s general secretary, gained an unprecedented third term as president.



No major Chinese government or party leadership positions are scheduled to change this year, while the U.S. is set to hold its presidential election in November.



Since last summer, Chinese authorities have already announced a slew of policies to bolster growth and acknowledged the need to increase confidence. Critics say the measures are relatively piecemeal.



Recent economic data releases point to a mixed picture for growth, with some improvement in manufacturing but real estate at best only stabilizing.



Huatai’s Wang expects the economy will recover gradually this year, and that in contrast to last year, nominal GDP will be better than real GDP. That means the perceived improvement this year will be more tangible for consumers and businesses.

107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds

Chinese leaders to hold annual ‘Two Sessions’ meeting as debate about bazooka-like stimulus swirls

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-820x539.jpg" alt="" class="wp-image-462535" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-1536x1009.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People participate in a protest against the postponement of the presidential election scheduled on February 25 in Dakar, Senegal February 24, 2024. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



DAKAR, March 4 (Reuters)&nbsp;&#8211;&nbsp;Writer Moustapha Gueye voted for Senegalese President Macky Sall at the last two elections.



But disappointment in Sall&#8217;s second term and the president&#8217;s thwarted attempt to postpone the next vote have shaken Gueye&#8217;s allegiance to the ruling Benno Bokk Yakaar (BBY) coalition.



Reclining on a sofa at his home in Dakar, Gueye said he was saddened that Sall&#8217;s presidency had culminated in a bitter electoral tussle with the opposition and in unrest that has dented Senegal&#8217;s reputation as one of West Africa&#8217;s more stable nations.



&#8220;These are domestic issues that Senegal should have grown out of,&#8221; he said.



Sall&#8217;s shock decision to issue a decree delaying the election just weeks before it was due to take place in February revived widespread fears that he was trying to tweak the constitution to stay in power longer.



Sall denies this. A court later overruled his order, but too late to keep to the original electoral schedule.



Mechanic Ousmane Sene said he was tired of second-guessing the ruling party&#8217;s intentions.



&#8220;The reason I won&#8217;t vote for Benno (BBY) anymore is simply that I trusted them, but not anymore. That trust has been betrayed,&#8221; he said at his roadside repair shop in a Dakar suburb.



Authorities have still not confirmed a new date for the vote.



As the process grinds on, BBY and Sall will be gauging how the unresolved crisis is swaying other long-time supporters like Gueye and Sene and how it is affecting the chances of their handpicked candidate in the presidential race, Amadou Ba.



<h2 class="wp-block-heading" id="h-total-confusion">&#8216;TOTAL CONFUSION&#8217;</h2>



Sall cited concerns over potential election disputes as the reason for the delay. But many believe BBY and Sall tried to postpone the vote because they were unsure about their own candidate and wanted time to think.



Sall has publicly stood by Ba. But equally public critics of the candidate include at least two cabinet ministers and senior BBY member Souleymane Jules Diop, who took to the radio in late 2023 to accuse Ba of being bland and uninspiring, local media reported.



&#8220;It&#8217;s very evident that the election delay would not have taken place if Macky Sall believed that Amadou Ba was clearly capable of winning the presidency,&#8221; Tochi Eni-Kalu, Africa analyst at political risk consultancy Eurasia Group, said.



A 10-month delay could have bought enough time for a reshuffle of the candidate list, but on Feb. 15 a top court ruled that such a postponement would be unlawful and ordered the election be scheduled as soon as possible.



With Ba still on the ticket for now, the crisis may turn out to have been a politically costly miscalculation by Sall and BBY if their electoral manoeuvring has put off many other voters like Gueye and Sene.



With no official public election polls, shifts in voter intention are hard to measure.



But of those who voted for Sall in the last election in 2019, only 60% are believed to be planning to vote for BBY&#8217;s candidate this time, said statistician Moubarak Lo who, as adviser to the prime minister, produces strategic analysis for the authorities.



Lo said he thought the estimated fall was less a response to the recent upheaval than a natural drop-off in support over the course of a presidential term.



He cautioned against drawing any conclusions about the election outcome at this stage. &#8220;Today, it&#8217;s total confusion,&#8221; he told Reuters on Feb. 24.



<h2 class="wp-block-heading" id="h-opposition-momentum">OPPOSITION MOMENTUM</h2>



All eyes are on whether Sall agrees with a June 2 election date proposed on Tuesday after talks that were boycotted by most of the opposition presidential candidates. Some of them have formed an informal alliance in response to the electoral turmoil.



This closer collaboration could influence the result of the election if it leads to them rallying around a single candidate in a second round in the event no contender secures more than 50% in the first round.



&#8220;It&#8217;s very clear the momentum is on the opposition side now and that could have a bearing on the election,&#8221; Eurasia Group analyst Eni-Kalu said.



&#8220;It&#8217;s become very obvious that it&#8217;s going to be very difficult for Amadou Ba to win outright in the first round,&#8221; he added. &#8220;A lot depends on what happens in the next few weeks in terms of the opposition closing ranks and presenting a united front ahead of a run-off.&#8221;



The electoral turbulence has not deterred all BBY supporters. A pro-BBY rally in Dakar on Feb. 24 attracted hundreds of people, comparable in size to a pro-opposition rally a week earlier.



The crowd chanted and waved Senegalese flags handed out by organisers. One man carried a homemade cardboard sign that said &#8220;Macky, Senegal loves you.&#8221;



Penda, who gave only her first name, said her support for BBY was unchanged by recent events.



&#8220;We are here to show everyone, including the President, that those who love him continue to do so,&#8221; she said.



($1 = 602.7500 CFA francs)



(Additional reporting by Cooper Inveen and Diadie Ba; Editing by Andrew Heavens and Crystal Chesters)

FILE PHOTO: Senegalese civil society groups protest over delayed presidential election in Dakar

Senegal election crisis shakes support for Macky Sall’s coalition 

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline-1-820x462.jpeg" alt="" class="wp-image-462518" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline-1-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline-1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline-1.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Marathon Petroleum’s oil refinery in Anacortes, Washington. David Ryder | Reuters</figcaption></figure>



Oil prices edged lower Monday after oil cartel OPEC+ agreed to extend voluntary output reductions until the second quarter, in an effort to support the short-term stability of crude markets.



Global benchmark Brent slipped 0.05% to $83.52 a barrel Monday, while U.S. West Texas Intermediate futures traded down 0.19% at $79.82 per barrel.



OPEC+ announced on Sunday that the 2.2 million barrels per day of voluntary output cuts that were planned for the first quarter of this year will continue into the next quarter.



OPEC+ kingpin and de facto leader Saudi Arabia said it will prolong its voluntary cut of 1 million barrels per day until the end of the second quarter, state-owned Saudi Press Agency said Sunday. Riyadh’s crude production will stand at approximately 9 million barrels per day until the end of June.



Russia, another OPEC+ heavyweight, will slash its&nbsp;production and export supplies by a combined 471,000 barrels per day until the end of June. Moscow had volunteered to reduce its supplies by 500,000 barrels per day in the first quarter. Other key producers Iraq and UAE will also extend their voluntary production cuts of 220,000 barrels per day and 163,000 barrels per day respectively, until the end of the second quarter.



“This new move by OPEC+ clearly shows strong unity within the group, something that was put into question after the November ministerial meeting, which saw Angola leaving OPEC,” Rystad Energy’s Senior Vice President Jorge Leon wrote in a note following the oil cartel’s decision.



The extension signals “robust determination” to defend a price floor above $80 per barrel in the second quarter, he said, adding that if OPEC+ rapidly unwound the cuts, oil prices will drop to $77 per barrel in May.



“Such a move by OPEC+ might also be seen as a sign that demand prospects in the second quarter are less optimistic than the group thought in November last year,” he said.



Oil prices have been languishing in a narrow $75 to $85 per barrel range since the start of the year, in spite of OPEC+ supply cuts, persistent Houthi maritime attacks in the Red Sea artery and ongoing geopolitical risks from Israel’s war against Hamas.



—CNBC’s Ruxandra Iordache contributed to this report.

107028015-16468620192022-03-09t213112z_1256402390_rc27zs99uxg4_rtrmadp_0_ukraine-crisis-usa-gasoline-1

Oil prices slip after OPEC+ extends voluntary oil output cuts until mid-year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/7VFJAVAAS5MPLCGIMEWXWDNEG4-820x518.jpg" alt="" class="wp-image-461443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/7VFJAVAAS5MPLCGIMEWXWDNEG4-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/7VFJAVAAS5MPLCGIMEWXWDNEG4-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/7VFJAVAAS5MPLCGIMEWXWDNEG4-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/7VFJAVAAS5MPLCGIMEWXWDNEG4-768x485.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/7VFJAVAAS5MPLCGIMEWXWDNEG4-1536x970.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/7VFJAVAAS5MPLCGIMEWXWDNEG4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A logo is seen at the World Trade Organization (WTO) headquarters before a news conference in Geneva, Switzerland, October 5, 2022. REUTERS/Denis Balibouse/File Photo</figcaption></figure>



ABU DHABI, March 1 (Reuters)&nbsp;&#8211;&nbsp;World Trade Organization (WTO) negotiators extended talks again in Abu Dhabi on Friday as they struggled to break a political deadlock after five days of high-level negotiations.



It was far from clear whether a consensus could be reached among the WTO&#8217;s 164 members before a new deadline of 10 p.m. local time (1800 GMT). Several delegates warned that countries remained far apart as organisers announced a fifth extension.



&#8220;I think we&#8217;re leaving here empty-handed,&#8221; one delegate said.



On the fifth day of the ministerial meeting, most ministers had already gone home, although India&#8217;s Piyush Goyal and European Trade Commissioner Valdis Dombrovskis remained.



Goyal was smiling and shaking hands outside a meeting room barely 30 minutes from an informal ministerial meeting, as delegates gathered in small groups next to a coffee stand.



Delegates were seen earlier on Friday huddled outside meeting rooms, drinking coffee while others were poring over documents or typing urgently on mobile phones. One participant mimed pulling the pin out of a hand grenade.



Negotiators released new draft deals on Friday, which showed that all-night talks failed to reach a breakthrough.



The biennial high-level meeting of trade ministers from around the world is seeking to revise global commerce rules on a broad range of issues from fishing and farming to e-commerce.



A document circulated by the WTO said that &#8220;time is running out&#8221;. &#8220;It is everyone&#8217;s hope that this postponement allows reaching agreement,&#8221; it said.



WTO spokesperson Ismaila Dieng said the discussions were &#8220;intensive and difficult&#8221;.



India, along with South Africa, has opposed extending a moratorium on digital trade tariffs &#8211; a move that has overwhelming support of most governments and from business.



WTO talks have failed before and this year&#8217;s negotiations, held in the oil-rich Gulf state the United Arab Emirates, has highlighted fissures between some of the world&#8217;s top economies.



<h2 class="wp-block-heading" id="h-brics-disagreement">BRICS DISAGREEMENT</h2>



U.S. President Joe Biden&#8217;s trade chief Katherine Tai said in an interview with Reuters late on Thursday that if talks failed, fragmentation among the BRICS group would have contributed.



India and China, core members of the BRICS group of nations, have disagreed on key issues including on investment. India&#8217;s commerce minister joined the negotiations two days after they started and after his Chinese counterpart had left Abu Dhabi.



Pacific islands nations have also complained at the talks about feeling marginalized and overlooked by most major powers.



U.S. support for global trade and multilateral groups like the WTO has been renewed under Biden. But negotiators are mindful that former President Donald Trump, who disrupted the multilateral system, could win a second term in the U.S. presidential election in November.



So far, no deals have been agreed after nearly five days of talks in Abu Dhabi and even the formal acceptance of completed negotiations on improving investment was blocked at an organisation where all 164 members must agree by consensus.



However, many of the disputes are seen as political theatre and so one breakthrough could lead nations to drop opposition to other deals, as happened at the Geneva conference in 2022.



A consensus is also seen as important to the United Arab Emirates, which in recent years has appeared to place an increased emphasis on multilateralism and dialogue and a turnaround from the assertive foreign policy it was pursuing a decade ago.



It has served as a non-permanent member of the U.N. Security Council, hosted the U.N. COP28 Climate Conference, joined China and India as members of the BRICS grouping of nations, established ties with Israel and repaired fractured relations.



Ahead of the talks, UAE foreign minister Sheikh Abdullah bin Zayed Al Nahyan, a member of Abu Dhabi&#8217;s ruling family, announced a $10 million grant to support WTO initiatives.



(Reporting by Emma Farge and Rachna Uppal, writing by Alexander Cornwell and Emma Farge; Editing by Jacqueline Wong, Kim Coghill, Angus MacSwan and Emelia Sithole-Matarise)

FILE PHOTO: A logo is seen at the WTO in Geneva

Deadlocked WTO talks drag into fifth day with no breakthrough

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="568" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-820x568.jpg" alt="" class="wp-image-461589" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-820x568.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-768x532.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1536x1065.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past an MTN logo outside the company&#8217;s headquarters in Johannesburg, South Africa, March 13, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, March 1 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s biggest telecoms operator MTN Group&nbsp;MTNJ.J&nbsp;flagged on Friday an up to 80% fall in full-year profit as a sharp devaluation in the Nigerian naira pushed its biggest unit MTN Nigeria&nbsp;MTNN.LG&nbsp;to a loss.



South Africa-headquartered MTN said its headline earnings per share &#8211; one of the main profit measures &#8211; would fall between 60% and 80% in the year ended Dec. 31 from 1,154 cents a year earlier.



Nigeria&#8217;s central bank in June adopted new forex rules that MTN said had since led to an approximately 96.7% devaluation in the exchange rate to 907.1 naira per dollar by the end of December.



The operator said the devaluation drove higher operating and net finance costs and foreign exchange losses for MTN Nigeria, which are expected to impact the group&#8217;s financial performance.



MTN Nigeria reported a net forex loss of 740.4 billion naira ($569.54 million) in 2023, raising its net finance costs 341.9% to 951.5 billion naira.



MTN Group shares fell 7% in morning trade before paring losses to stand 1.20% lower by 1236 GMT with the group saying it still expects to declare a dividend in line with guidance of a minimum 330 cents per share.



Shares in MTN Nigeria tumbled 9.96%.



MTN Nigeria reported a loss after tax of 137 billion naira compared to a restated profit after tax of 348.7 billion naira in 2022.



The Nigeria operator withheld its final dividend for 2023 and also suspended is medium-term guidance for earnings before interest, tax, depreciation and amortisation margins.



($1 = 1,300.0000 naira)



(Reporting by Nqobile Dludla; Editing by Mrigank Dhaniwala, Kirsten Donovan)

FILE PHOTO: MTN downgrades medium-term margin target for South Africa on power outages

South Africa’s MTN flags 2023 profit slump on naira devaluation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/DDF5MFGBVZOMPF3MGP2DE7HGTM-820x547.jpg" alt="" class="wp-image-427043" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/DDF5MFGBVZOMPF3MGP2DE7HGTM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/DDF5MFGBVZOMPF3MGP2DE7HGTM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/DDF5MFGBVZOMPF3MGP2DE7HGTM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/DDF5MFGBVZOMPF3MGP2DE7HGTM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/DDF5MFGBVZOMPF3MGP2DE7HGTM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/DDF5MFGBVZOMPF3MGP2DE7HGTM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Zimbabwe&#8217;s President Elect Emmerson Mnangagwa speaks to the media at State House in Harare, August 27, 2023. REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, March 1 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s President Emmerson Mnangagwa abandoned a trip to Victoria Falls on Friday due to an anonymous threat of attack against the country&#8217;s airports, his spokesperson said.



On Friday morning, Zimbabwe airport authorities were made aware of an email sent through Fastjet Airline claiming a &#8220;credible bomb/firearm threat&#8221; targeting Zimbabwean airports, presidency spokesperson George Charamba said in a statement.



&#8220;As a precaution, the country&#8217;s security systems are now on heightened alert following this message whose source and credibility is also being investigated,&#8221; he said.



He said that Mnangagwa was due to address a meeting in the resort town but had suspended his trip to allow for investigations, and urged the public to remain calm.



&#8220;While our country is peaceful, and all our ports of entry are well secured, such alerts on possible terrorist attacks are taken and treated very seriously,&#8221; the statement said.



Local media had reported earlier on Friday that Mnangagwa&#8217;s private plan made a U-turn minutes before landing at Victoria Falls airport, and went back to the capital Harare.



An Air Zimbabwe plane with passengers on board was detained at Victoria Falls, while a Kenyan Airways flight rerouted to land in Livingstone, Zambia, according to local news reports.



(Reporting by Nyasha Chingono; Editing by Nellie Peyton and Alex Richardson)

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