<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/3PBH7NBXMROD5CZFOTBGE4JVVI-820x530.jpg" alt="" class="wp-image-461485" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/3PBH7NBXMROD5CZFOTBGE4JVVI-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/3PBH7NBXMROD5CZFOTBGE4JVVI-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/3PBH7NBXMROD5CZFOTBGE4JVVI-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/3PBH7NBXMROD5CZFOTBGE4JVVI-768x496.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/3PBH7NBXMROD5CZFOTBGE4JVVI-1536x992.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/3PBH7NBXMROD5CZFOTBGE4JVVI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker takes a break from sorting avocados at a farm factory in Nelspruit in Mpumalanga province, about 51 miles (82 km) north of the Swaziland border, South Africa, June 14, 2018. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, March 1 (Reuters) &#8211; South African manufacturing activity recovered in February after a steep slump the month before, a Purchasing Managers&#8217; Index (PMI) survey showed on Friday.



The seasonally-adjusted PMI increased to 51.7 points in February from 43.6 in January, rising above the 50-point mark that separates expansion from contraction.



The business activity sub-index and new sales orders performed better in February but remained in negative territory.



&#8220;Respondents were more upbeat about exports, possibly signalling some alleviation of the congestion and disruptions at local harbours,&#8221; Absa, which sponsors the PMI, said in a statement.



South Africa is facing record power shortages and a logistics crisis at its rail and port operator Transnet which have strangled business activity and slowed growth in Africa&#8217;s most industrialised economy.



(Reporting by Bhargav Acharya; Editing by Alexander Winning)

A worker takes a break from sorting avocados at a farm factory in Nelspruit in Mpumalanga province

South African factory activity recovers in February – Absa PMI

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2036339260-820x615.jpg" alt="" class="wp-image-461198" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2036339260-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2036339260-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2036339260-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2036339260-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2036339260-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2036339260-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo taken on Feb. 27, 2024, shows the venue of a four-day World Trade Organization ministerial conference through Feb. 29 in Abu Dhabi, the United Arab Emirates. (Photo by Kyodo News via Getty Images)</figcaption></figure>



ABU DHABI, Feb 29 (Reuters)&nbsp;&#8211;&nbsp;Negotiations at the World Trade Organisation (WTO) ministerial meeting in Abu Dhabi were set to go into overtime on Thursday, with the trade body announcing the closing session had been delayed, and no sign of a breakthrough in negotiations.



The biennial conference is seeking deals on ending fishing subsidies and extending a moratorium on digital trade tariffs &#8211; a move that India and South Africa oppose.



The scheduled announcement of a final agreement after four days of intergovernmental talks was pushed back four hours until midnight in the Gulf State (2000 GMT).



Some delegates expressed scepticism that a deal would be reached by then, telling Reuters that serious differences remained on a range of issues meant to address global trade.



&#8220;Tense! Difficult,&#8221; said one delegate on condition of anonymity.



India&#8217;s trade minister said he was &#8220;sad&#8221; some countries were still obstructing significant outcomes. He gave little sign New Delhi would drop its opposition to extending a waiver on digital tariffs.



&#8220;Of course we feel sad that some countries are still obstructing significant outcomes that could have helped less developed countries and developing countries gain confidence in the working of&nbsp;WTO,&#8221; Piyush Goyal told reporters on the final day of the talks.



Still, he voiced optimism that &#8220;significant outcomes&#8221; could be achieved in the negotiations.



<h2 class="wp-block-heading" id="h-fisheries-draft-deal-faces-opposition">FISHERIES DRAFT DEAL FACES OPPOSITION</h2>



A grouping of Pacific islands, including Papua New Guinea and the Solomon Islands, were also opposing a draft deal on changes to fisheries subsidies, with Fiji&#8217;s deputy prime minister telling Reuters it did not go far enough.



&#8220;We would like the large subsidising countries to put a cap on the current level of subsidies,&#8221; Manoa Seru Kamikamica said.



India&#8217;s Goyal did not name the countries that he said were blocking results at the talks. But he said his top priority was fixing the&nbsp;WTO&#8217;s dispute system, adding he had raised the lack of progress with U.S. Trade Representative Katherine Tai in a Wednesday meeting.



&#8220;The first and highest priority is to get the Appellate Body of the dispute resolution mechanism in place because without that all the decisions we are taking cannot be adjudicated upon,&#8221; he said.



The WTO&#8217;s top appeals court has been hamstrung for four years due to U.S. opposition to judge appointments and remains out of service. Tai already ruled out an agreement on WTO dispute settlement appeals reform this week, but said negotiations were showing progress.



Asked whether India would drop its opposition to a waiver on tariffs on digital goods like film downloads, he said: &#8220;Let us see what everybody else is budging on&#8221;.



(Reporting by Emma Farge, Alexander Cornwell and Rachna Uppal; Editing by Alex Richardson and Emelia Sithole-Matarise)

WTO ministerial conference in Abu Dhabi

WTO talks head into overtime with no sign of breakthrough

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



Feb 29 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks eyed strong monthly gains on Thursday, with a Chinese recovery fuelling the bulk of the gains, while most currencies were range-bound ahead of key U.S. inflation data, which is likely to set the tone for rate cut expectations.



At 0901 GMT, MSCI&#8217;s index for emerging market (EM) stocks&nbsp;.MSCIEF&nbsp;was up 0.1%, on track for a monthly advance of 4.5%, its best February performance since 2012.



Mainland Chinese shares&nbsp;.CSI300&nbsp;closed 1.9% higher following a more than 1% fall in the previous session, with a monthly gain of 9.4% snapping a six-month losing streak.



&#8220;Investor sentiment has stabilised since China&#8217;s markets reopened, in part supported by positive retail spending and travel data from the holiday period,&#8221; Wee Khoon Chong, APAC market strategist at BNY Mellon, wrote.



State-led buying and tighter regulations have been primarily responsible for pulling China&#8217;s blue-chip index off five-year lows, but more aggressive stimulus is needed for the momentum to continue amid a moribund economy.&nbsp;.SS



Stocks in emerging Europe also had a bright start, with Turkey&#8217;s main index&nbsp;.XU100&nbsp;gaining 0.7%, while shares in Warsaw&nbsp;.WIG20&nbsp;jumped 1.2%.



Turkey&#8217;s economy grew 4.5% last year and 4.0% in the fourth quarter, beating expectations as strong domestic demand offset fallout from devastating earthquakes and a slowdown in main trading partners.



A broader gauge of EM currencies&nbsp;.MEIM00000CUS&nbsp;was flat at 1,726.73 points as caution prevailed ahead of the release of the Federal Reserve&#8217;s preferred inflation gauge later in the day &#8211; the personal consumer expenditures (PCE) price index, which is expected to set the tone for rate cut expectations in the world&#8217;s biggest economy.



Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;edged 0.2% higher against the euro, though was on track to be the worst performing currency amongst local peers this month.



Earlier in the week, the National Bank of Hungary (NBH) slashed its base rate by 100 basis points to 9%.



The Polish zloty&nbsp;EURPLN=&nbsp;eased 0.1%, while the Czech crown&nbsp;EURCZK=&nbsp;also lost 0.1%.



Weakness in the dollar&nbsp;=USD&nbsp;helped South Africa&#8217;s rand&nbsp;ZAR=&nbsp;rise 0.4%, with Israel&#8217;s shekel&nbsp;ILS=&nbsp;also gaining 0.6%.



Meanwhile, Western powers butted heads over how to handle frozen Russian assets on Wednesday as G20 finance ministers kicked off a discussion of challenges for the global economy, trying to set aside deep geopolitical divisions.



The discussions will continue later in the day.



(Reporting by Shashwat Chauhan in Bengaluru;Editing by Mark Potter)

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

Stocks eye monthly gains on China rebound, currencies steady ahead of US inflation test

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-820x546.jpg" alt="" class="wp-image-412999" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of the headquarter of the embattled South African main electricity provider ESKOM is pictured on February 4, 2015 in Johannesburg. South Africa power supply was under &#8220;extreme&#8221; pressure on February 2, 2015 and likely to remain so until end of the week after a technical fault at the country&#8217;s sole nuclear plant, electricity utility Eskom said. AFP PHOTO/GIANLUIGI GUERCIA (Photo by Gianluigi GUERCIA / AFP) (Photo by GIANLUIGI GUERCIA/AFP via Getty Images)</figcaption></figure>



JOHANNESBURG, Feb 29 (Reuters)&nbsp;&#8211;&nbsp;Dan Marokane is about to tackle the hardest job in South Africa: getting the lights back on.



As CEO of state power utility Eskom, he takes on an organisation hampered by alleged coal theft and sabotage, which faces financial and technical crises.



He will be working with a government shareholder that has a conflicted vision for the country&#8217;s future energy mix and is struggling to move forward on a major overhaul of its electricity supply industry.



As South Africa heads for national elections in May, turning Eskom around and solving a persistent power crunch could rescue Africa&#8217;s most industrialised economy from a cycle of decline, Eskom&#8217;s board chairman told Reuters.



Failure would mean the country is stuck with the status quo of crippling blackouts that currently cut off electricity for everything from homes and businesses to traffic lights and hospitals for up to 10 hours every day.



&#8220;There are two things here that need to be done simultaneously,&#8221; Mteto Nyati, the chairman of Eskom&#8217;s board of directors, said in an interview.



&#8220;One is to fix the current business. And the other is to reposition and restructure Eskom so that it can be relevant for the future.&#8221;



Nyati said the utility&#8217;s incoming boss, who holds degrees in chemical and petroleum engineering as well as an MBA, possesses the technical know-how and leadership skills to succeed where so many others have failed.



Marokane, who Eskom said will not speak publicly until he formally begins his tenure on Friday, previously served as a senior Eskom executive for five years until 2015.



&#8220;He&#8217;s going to be able to learn and hit the ground running,&#8221; Nyati said.



Others are less optimistic.



Eskom&#8217;s role in powering the country&#8217;s economy has made the CEO job South Africa&#8217;s most high-profile executive position. But its challenges mean fewer and fewer corporate high-flyers are willing to take it on.



&#8220;Dan is likely the most qualified person on the short list,&#8221; said Peter Attard Montalto, managing director of the consultancy firm Krutham. &#8220;But that is an exceptionally low bar.&#8221;



<h2 class="wp-block-heading" id="h-revolving-door">REVOLVING DOOR</h2>



Eskom&#8217;s top job has become a revolving door through which more than a dozen CEOs have passed over the past 15 years, serving in either a permanent or acting capacity.



Two of the previous permanent appointees were Phakamani Hadebe and Andre de Ruyter. The former left citing the damage the job had done to his health. The latter allegedly had poison slipped into his coffee.



Eskom is still recovering from a period of pervasive corruption that engulfed many South African state-owned companies under former President Jacob Zuma. Zuma denies wrongdoing.



Marokane has portrayed himself as a victim of the so-called state capture era, having been suspended from his Eskom job with several other executives.



&#8220;I was not a moderate performer,&#8221; he told a commission investigating state capture in 2020. &#8220;To be sitting at home with a cloud of suspicion and poor performance on you, it&#8217;s very painful,&#8221; he said, based on the transcript of his testimony before the commission.



Marokane comes to Eskom after a stint at Tongaat Hulett, where he attempted to rescue the sugar company following an accounting scandal that eventually saw it placed in bankruptcy protection.



On his return to Eskom, he will take on a distressed company dependent upon government bailouts and that needs to push through plans to unbundle it into separate generation, transmission and distribution businesses, a process that has become bogged down in bureaucracy and red tape.



He will face a daily struggle to keep Eskom&#8217;s fleet of ageing plants online while assuaging the concerns of donors that have pledged billions of dollars to wean South Africa off coal, which generates some 80% of its power.



Marokane will need to push for new generating capacity &#8211; largely in the form solar and wind &#8211; overcoming resistance to renewable power from some quarters of an African National Congress-led government.



&#8220;It&#8217;s an extremely tough job,&#8221; de Ruyter, who spent three years as CEO before his alleged poisoning and a falling out with the Eskom board, told Reuters.



&#8220;Maybe he should avoid having a personalised coffee mug.&#8221;



(Additional reporting by Olivia Kumwenda-Mtambo in Johannesburg. Editing by Jane Merriman)

SAFRICA-ELECTRICITY-NUCLEAR-ECONOMY-ENERGY

New Eskom boss under pressure to turn South Africa’s lights back on

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106892639-1622836826337-bit-1.jpg" alt="" class="wp-image-412818" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106892639-1622836826337-bit-1.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106892639-1622836826337-bit-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106892639-1622836826337-bit-1-160x90.jpg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption class="wp-element-caption">Art at the cryptocurrency conference Bitcoin 2021 Convention at the Mana Convention Center in Miami on June 4, 2021.
Marco Bello | AFP | Getty Images</figcaption></figure>



Bitcoin’s all-time high is in sight after the cryptocurrency surpassed $61,000 on Wednesday. However, in many African currencies’ terms, the world’s largest cryptocurrency is already trading at record highs. The flagship crypto rose as high as $61,023.44 on Coindesk, roughly 11% off its November 2021 record of $68,982.20. The latest rally was sparked by the disclosure on Monday that crypto investing and software firm MicroStrategy had bought about 3,000 bitcoins for $155 million.



MicroStrategy, based in Virginia, in the U.S., is currently the largest publicly traded owner of Bitcoin. CNBC.com says the company reported holding about 190,000 of the cryptocurrency tokens earlier this month, which would be worth over $10.5 billion at current prices.



But with many African currencies trading at some of their weakest levels against the dollar because of high U.S. interest rates and an unfavorable global environment, bitcoin prices in local currency terms have been boosted to all-time highs as detailed below:



<iframe title="% return of $1000's invested in BTC in Naira" aria-label="Bar Chart" id="datawrapper-chart-UbDrd" src="https://datawrapper.dwcdn.net/UbDrd/1/" scrolling="no" frameborder="0" style="border: none;width: 100%;max-width: 600px;" height="192" data-external="1"></iframe>



<h2 class="wp-block-heading" id="h-record-breaking-highs">Record-breaking highs:</h2>



<ul class="wp-block-list">
<li>South African Rand (ZAR): 1 bitcoin is now worth R1,185,530 surpassing the previous record of 1 million ZAR set in 2023.</li>



<li>Kenyan Shilling (KES): Bitcoin skyrocketed to KES 8,972,000, shattering the previous high of 4.5 million KES set in 2021.</li>



<li>Nigerian Naira (NGN): The value of 1 bitcoin reached 96,086,600 NGN, surpassing the previous record of 26 million NGN set in 2021.</li>



<li>Ghanaian Cedi (GHS): Bitcoin hit a new high of 764,866 GHS, eclipsing the previous record of 400,000 GHS set in 2021.</li>



<li>Rwandan Franc (RWF): Bitcoin reached a record high of 79,463,490 RWF, dwarfing the previous record of 3 million RWF set in 2022.</li>
</ul>



<h2 class="wp-block-heading" id="h-how-much-a-1-000-investment-in-bitcoin-would-be-worth">How much a $1,000 investment in Bitcoin would be worth</h2>



For those who invested in Bitcoin as early as 2015, the current surge presents a remarkable return on investment. Consider someone who invested USD 1,000 in Bitcoin in 2015, when the price was around $250. Today, that investment would be worth:



<ul class="wp-block-list">
<li>South Africa: 4,679,000 ZAR</li>



<li>Kenya: 35,624,000 KES</li>



<li>Nigeria: 384,056,000 NGN</li>



<li>Ghana: 3,059,000 GHS</li>



<li>Rwanda: 316,468,000 RWF</li>
</ul>



This is at a time when <a href="https://businessday.ng/africa/article/7-worst-performing-african-currencies-in-2023/">7 out of the 10</a> worst-performing currencies in 2023 are in the African continent.



<h2 class="wp-block-heading" id="h-before-investing-do-your-due-diligence">Before investing, do your due diligence</h2>



It&#8217;s important to remember that the cryptocurrency market is highly volatile, and past performance is not indicative of future results. Investing in Bitcoin carries inherent risks, and individuals should conduct thorough research before making any investment decisions.

104893268-GettyImages-818871806

Bitcoin hits record highs in African currencies as it nears all-time highs

<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/LVIEU3HYJFIJTNLRMSDVJ6XM7E-820x547.jpg" alt="" class="wp-image-460825" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LVIEU3HYJFIJTNLRMSDVJ6XM7E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LVIEU3HYJFIJTNLRMSDVJ6XM7E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LVIEU3HYJFIJTNLRMSDVJ6XM7E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LVIEU3HYJFIJTNLRMSDVJ6XM7E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LVIEU3HYJFIJTNLRMSDVJ6XM7E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LVIEU3HYJFIJTNLRMSDVJ6XM7E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Delegates attend the 13th WTO ministerial conference in Abu Dhabi, United Arab Emirates, February 26, 2024. REUTERS/Abdel Hadi Ramahi/File Photo</figcaption></figure>



ABU DHABI, Feb 28 (Reuters)&nbsp;&#8211;&nbsp;India and South Africa have filed a formal objection against an investment agreement at a World Trade Organization meeting in Abu Dhabi, blocking its adoption, a document showed and delegates confirmed on Wednesday.



The Investment Facilitation for Development (IFD) Agreement, agreed by some 125 countries or about three-quarters of the WTO&#8217;s members, aims to simplify red tape, improve the investment environment and encourage foreign direct investment.



But according to WTO rules, any one of its 164 members can block a deal from being adopted by the body &#8211; a step which is necessary to ensure that countries are in compliance.



&#8220;We underscore that given the lack of exclusive consensus, this is not a matter for the&#8230;(meeting) agenda,&#8221; the document said. The Indian and South African delegations did not immediately comment publicly on the development.



Negotiations to set new global trade rules on a broad range of topics are due to wrap up on Thursday, although delegates said that little progress has so far been made, barring the formal accession of two new members to the body: East Timor and Comoros. A paragraph on climate change is confined to an annex of the draft package of deals since members cannot agree.



&#8220;It&#8217;s hard to tell if we are going to land something or if we are sleepwalking into failure,&#8221; said one trade delegate.



(Reporting by Rachna Uppal and Emma Farge; Editing by Alexander Cornwell, Kirsten Donovan)

Delegates attend the 13th WTO ministerial conference in Abu Dhabi

India, South Africa block investment deal at WTO talks

<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/GettyImages-2020618884-820x547.jpg" alt="" class="wp-image-460817" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2020618884-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2020618884-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2020618884-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2020618884-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2020618884-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-2020618884-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Group of 20 signage at City Hall in Rio de Janeiro, Brazil, on Wednesday, Feb. 21, 2024. The Group of 20 nations is so split on the conflicts in Gaza and Ukraine that they may be forced to reduce the forum&#8217;s scope and avoid geopolitical issues altogether this year, according to people familiar with the matter. Photographer: Lucas Landau/Bloomberg via Getty Images</figcaption></figure>



SAO PAULO, Feb 28 (Reuters)&nbsp;&#8211;&nbsp;Brazil&#8217;s Finance Minister Fernando Haddad on Wednesday warned of global economic challenges, as G20 finance leaders gathered in Sao Paulo for a meeting overshadowed by deep divisions in the group over the wars in Ukraine and in Gaza.



As finance leaders kicked off their two-day discussions on Wednesday, their host Hadded said the global economic conjuncture was &#8220;challenging&#8221; and required the G20 to address issues ranging from climate change and poverty.



Brazil&#8217;s coordinator of the finance track at the G20, Tatiana Rosito, said negotiations for the economic portion of the group&#8217;s communique were successfully completed by finance ministry and central bank deputies in a &#8220;very positive&#8221; atmosphere.



But German Finance Minister Christian Lindner said his country will only agree on the G20 communique if geopolitical issues such as the war in Ukraine are mentioned.



He also said the G20 finance leaders are discussing financing for Ukraine to raise pressure on Russia, adding that funds could be mobilized for Kyiv by using proceeds from frozen Russian assets.



His remarks highlight challenges the group may face in agreeing on a G20 communique. A draft version, seen by Reuters on Tuesday, had made only a passing reference in their closing statement to regional conflicts due to deep divisions over wars in Gaza and Ukraine.



It was far shorter than previous years, reflecting Brazil&#8217;s hope to sidestep controversial geopolitical issues with language mentioning &#8220;wars&#8221; left in brackets, underscoring a lack of consensus on the matter.



The smaller G7 group of advanced nations also met on Wednesday, where they likely discussed measures to apply pressure on Russia.



U.S. Treasury Secretary Janet Yellen on Tuesday called on allies to move urgently to unlock the value of frozen Russian sovereign assets to help Ukraine, prompting an angry response from Russian officials.



Canada threw its support behind the U.S. idea with Finance Minister Chrystia Freeland saying on Tuesday the two countries agreed on the urgent need to move forward with confiscating frozen Russian sovereign assets to help Ukraine.



Finance officials and central bankers from the G20 are meeting at a time of lingering global economic uncertainties, increasing strains of record debt burdens, and worries that inflation may not yet be tamed.



Another source of tension is Brazil&#8217;s push to give developing nations of the Global South more voice in G20 meetings as well as global lenders like the International Monetary Fund and World Bank, where leadership is currently dominated by advanced economies.



(Reporting by Marcela Ayrer and Christian Kraemer; Writing by Leika Kihara; editing by Gabriel Araujo and Chizu Nomiyama)

G-20 Foreign Ministers Meeting in Rio de Janeiro

Brazil warns of global economic challenges as G20 finance chiefs meet

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/HPBGECXM2RM4DJT5RIFPZCG5KU-820x547.jpg" alt="" class="wp-image-424855" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/HPBGECXM2RM4DJT5RIFPZCG5KU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/HPBGECXM2RM4DJT5RIFPZCG5KU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/HPBGECXM2RM4DJT5RIFPZCG5KU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/HPBGECXM2RM4DJT5RIFPZCG5KU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/HPBGECXM2RM4DJT5RIFPZCG5KU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/HPBGECXM2RM4DJT5RIFPZCG5KU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The United Nations headquarters building is pictured with a UN logo in the Manhattan borough of New York City, New York, U.S., March 1, 2022. REUTERS/Carlo Allegri/File Photo</figcaption></figure>



HARARE, Feb 28 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s public debt will stay above pre-pandemic levels in 2024 and 2025, with many countries still at risk of falling into debt distress as they continue to struggle to service international loans, a U.N. official said on Wednesday.



Addressing a United Nations Commission for Africa (UNECA) conference in Victoria Falls, the agency&#8217;s macroeconomics and governance director Adam Elhiraika said eight countries were in debt distress, while 13 were &#8220;expected to be at risk of debt distress&#8221;.



Africa has been hit by repeated economic shocks since 2020, from the COVID-19 pandemic to Russia&#8217;s invasion of Ukraine and rising U.S. interest rates, putting cash-strapped, debt-laden governments in a political and fiscal bind.



&#8220;Debt will (stay) above the pre-pandemic level. This is huge,&#8221; Elhiraika said, adding that the continent&#8217;s debt-to-GDP ratio was 62.5% at the end of 2022.



This ratio doubled to 57% in the decade to 2020 and could rise 10 percentage points in the next five years if Africa&#8217;s fiscal trajectory does not change, according to a recent International Monetary Fund (IMF) report.



&#8220;There is need for African countries to work with international partners to address debt distress,&#8221; Elhiraika said.



Africa&#8217;s fiscal deficit deteriorated to 4.6% of GDP last year, Elhiraika said, without citing previous years&#8217; figures, and is set to widen further to 5% in 2024.



Many African governments are having to slash spending, while interest payments are growing faster.



Zimbabwe Finance Minister Mthuli Ncube called for a rethink of the global financial system.



&#8220;Access to finance for Africa must be made cheaper and easier. Hence, there is a need to re-look at the international financial architecture to ensure that it is fit for purpose,&#8221; Ncube said, addressing the conference.



Zambia became the first African nation to default on its debt in late 2020, during the COVID-19 pandemic. Ghana followed in 2022, while Ethiopia became the latest last December.



(Reporting by Nyasha Chingono; Editing by Rachel Savage and Kevin Liffey)

FILE PHOTO: United Nations in New York City

Africa’s debt to stay above pre-pandemic levels through 2025, UN official says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JQGFTS26MROVBPBXUG2OKL4EEY-820x558.jpg" alt="" class="wp-image-460736" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JQGFTS26MROVBPBXUG2OKL4EEY-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JQGFTS26MROVBPBXUG2OKL4EEY-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JQGFTS26MROVBPBXUG2OKL4EEY-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JQGFTS26MROVBPBXUG2OKL4EEY-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JQGFTS26MROVBPBXUG2OKL4EEY-1536x1046.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JQGFTS26MROVBPBXUG2OKL4EEY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Trucks deliver containers to be loaded onto a ship at the port in Durban, South Africa, January 31, 2024. REUTERS/Rogan Ward/File Photo</figcaption></figure>



JOHANNESBURG, Feb 28 (Reuters)&nbsp;&#8211;&nbsp;South African fashion retailers are ramping up local production and using alternative sea ports and air freight to mitigate the impact of congestion at traditional ports that has caused massive delays in stock deliveries, executives told Reuters.



State-owned logistics company Transnet said in November the backlogs at the Port of Durban and congestion at Richards Bay were due to factors including under-investment in equipment and maintenance, warning that procuring some of the new equipment could take as long as 12 to 18 months.



Although South African fashion retailers have been moving production closer to home, they still rely heavily on imports, especially from Asia, for some products.



TFG&nbsp;TFGJ.J, the owner of Foschini clothing brand, has fared better than competitors after it expanded its local factories and bought new ones over the last seven years.



As a result, TFG had enough stock for the key December festive season, it told Reuters.



The company added that it did not expect any major disruptions to ranges for the upcoming southern hemisphere autumn and winter months and that it was taking the necessary action, such as ordering earlier and amending destination ports.



South Africa&#8217;s autumn season starts in March.



Woolworths&nbsp;WHLJ.J&nbsp;and Truworths&nbsp;TRUJ.J&nbsp;are also ramping up local clothes production, using local suppliers and placing orders earlier, executives told Reuters.



Woolworths is placing smaller orders, more frequently, to avoid having big shipments stuck at the harbour, CEO Roy Bagattini said.



It is also directing ships to ports with fewer backlogs, such as Walvis Bay in Namibia, and then trucking the products to Cape Town, Bagattini added.



&#8220;Sometimes we look to air freight depending on the product and category. We fly stuff in, obviously it is costly and is not sustainable,&#8221; he said, adding Woolworths would not rely on this heavily to avoid higher expenses.



For the autumn and winter seasons, Woolworths is in a much better shape in terms of stock but not at 100% levels yet, Bagattini said, while Truworths cautioned there may be some stock shortages in autumn.



Truworths said its mitigation strategy also included sourcing from different countries.



It&#8217;s not just fashion retailers grappling with the problem. South African food services firm Bid Corporation BIDJ.Jsaid last week it was holding buffer stocks to mitigate the impact.



(Reporting by Nqobile Dludla; Editing by Olivia Kumwenda-Mtambo and Mark Potter)

FILE PHOTO: Trucks deliver containers to be loaded onto a ship at the port in Durban

South African fashion retailers boost local production amid port delays

<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, Feb 28 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s takeover panel has ruled that French media company Groupe Canal+ SA is required to make a mandatory offer immediately to buy shares of pay-TV company MultiChoice&nbsp;MCGJ.J&nbsp;that it does not already own, MultiChoice said on Wednesday.



Canal Plus, the biggest shareholder, earlier this month offered to buy the rest of the company.



It held a 31.67% stake at the time which rose to 35.01% shortly afterwards, topping&nbsp;a 35%&nbsp;threshold where a mandatory offer is required.



Its offer of 105 rand per share was rejected by the board of MultiChoice, saying it significantly undervalued the group.



&#8220;The panel rules that Canal+ must take immediate action to comply with the requirements of.. the (Companies) Act and the regulations by making a mandatory offer to the remaining shareholders of MultiChoice,&#8221; the Takeover Regulations Panel (TRP) said in its ruling.



Canal Plus had argued it was not required to make a mandatory offer as MultiChoice&#8217;s memorandum of incorporation restricts foreign companies from holding more than 20% of the broadcaster&#8217;s voting rights.



The TRP rejected this argument.



($1 = 19.1285 rand)



(Reporting by Nqobile Dludla; editing by Jacqueline Wong)

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

S.Africa Regulator orders Canal Plus to offer MultiChoice buyout

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



SINGAPORE, Feb 28 (Reuters)&nbsp;&#8211;&nbsp;Asian stocks eased on Wednesday in cautious trading ahead of a U.S. inflation reading this week that could influence the timing of the Federal Reserve&#8217;s easing cycle, while the New Zealand dollar fell after the central bank softened its hawkish stance.



MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan&nbsp;.MIAPJ0000PUS&nbsp;was 0.44% lower at 525.40 points but hovering around a near seven-month peak of 531.56 after a strong rally. The index is up 4.4% for the month, its strongest February performance in more than a decade.



Asia&#8217;s tentative trading on Wednesday is likely to be mimicked in Europe, with Eurostoxx 50 futures&nbsp;STXEc1&nbsp;down 0.12%, while German DAX futures&nbsp;FDXc1&nbsp;were up 0.06%.



Investor focus is squarely on the personal consumption expenditures price index (PCE) for January, the Fed&#8217;s preferred inflation measure, due on Thursday. The PCE is expected to have risen 0.3% on a monthly basis in January, up slightly from the 0.2% increase seen in December, a Reuters poll showed.



A slew of strong economic data along with inflation that has proven to be sticky has resulted in traders drastically dialling back their initial expectations of deep and early interest rate cuts from the Fed.



Markets now anticipate June to be the starting point of the easing cycle compared with March at the start of the year. Traders now expect 77 basis points of cuts this year versus pricing in 150 bps of easing at the start of the year.



Yuting Shao, macro strategist at State Street Global Markets, said individual data releases carry weight for a data-dependent Fed and will impact risk sentiment given the near-neutral positioning from investors.



&#8220;Although one data point does not make a trend, latest inflation and employment readings have raised the prospect that perhaps no landing scenario is driving many asset markets.&#8221;



Other data due this week that could help shape expectations from the Fed include the second estimate of gross domestic product, jobless claims and manufacturing activity.



Fed policymakers have also in recent days pushed back against cutting rates too early, with Governor Michelle Bowman on Tuesday saying she was in no rush to cut U.S. interest rates, particularly given upside risks to inflation that could stall progress or even cause a resurgence of price pressures.



<h2 class="wp-block-heading" id="h-trapped-kiwi">TRAPPED KIWI</h2>



The Reserve Bank of New Zealand (RBNZ) held the cash rate steady at 5.5% on Wednesday, reiterating that previous rate hikes had helped dampen prices, but adding that the risk of further rate hikes had been reduced.



That sent the New Zealand dollar&nbsp;NZD=D3&nbsp;down more than 1% to a nearly two-week low of $0.6101. The kiwi was last at $0.6111.



&#8220;The RBNZ has closed the door to further rate hikes, which was a surprise to somewhat hawkish expectations,&#8221; said Charu Chanana, head of currency strategy at Saxo.



&#8220;This may give room for NZD longs to unwind in the short term, but NZD still provides a strong carry in this low volatility environment.&#8221;



Meanwhile, the Australian dollar wobbled a bit in early trading after data showed consumer price inflation held at a two-year low in January, reinforcing market expectations interest rates would not need to increase any further. The Aussie&nbsp;AUD=D3&nbsp;was 0.43% lower at $0.6515.



The dollar index&nbsp;=USD, which measures the U.S. currency against six rivals, rose 0.116%.



The yen&nbsp;JPY=EBS&nbsp;remained bolted to the psychologically key 150 per dollar level and was last at 150.625 per dollar. The Nikkei&nbsp;.N225&nbsp;ended marginally lower on the day, having touched fresh record peaks this week.



China stocks slid as investors booked profits after a recent rally, while worries over the property sector lingered after a liquidation petition was filed against developer Country Garden.



Hong Kong&#8217; Hang Seng index&nbsp;.HSI&nbsp;fell 1.1% and China&#8217;s blue-chip CSI300 index&nbsp;.CSI300&nbsp;was down 0.27%.



U.S. crude&nbsp;CLc1&nbsp;fell 0.41% to $78.55 per barrel and Brent&nbsp;LCOc1&nbsp;was at $83.30, down 0.42% on the day, as the prospect of a delayed U.S. rate cutting cycle offset the boost provided by talk of extensions to production cuts from OPEC+.&nbsp;O/R



Spot gold XAU= rose 0.1% to $2,030.83 an ounce.



(Reporting by Ankur Banerjee; Editing by Muralikumar Anantharaman and Jamie Freed)

istockphoto-1076949610-612×612-1

Asian shares lose ground as US inflation data awaits; kiwi slides

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107367602-17067928972022-10-23t204940z_1048320918_up1eian1luq2v_rtrmadp_0_motor-f1-usa-820x461.jpeg" alt="" class="wp-image-460684" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107367602-17067928972022-10-23t204940z_1048320918_up1eian1luq2v_rtrmadp_0_motor-f1-usa-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107367602-17067928972022-10-23t204940z_1048320918_up1eian1luq2v_rtrmadp_0_motor-f1-usa-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107367602-17067928972022-10-23t204940z_1048320918_up1eian1luq2v_rtrmadp_0_motor-f1-usa-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107367602-17067928972022-10-23t204940z_1048320918_up1eian1luq2v_rtrmadp_0_motor-f1-usa-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107367602-17067928972022-10-23t204940z_1048320918_up1eian1luq2v_rtrmadp_0_motor-f1-usa-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107367602-17067928972022-10-23t204940z_1048320918_up1eian1luq2v_rtrmadp_0_motor-f1-usa.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Apple CEO Tim Cook waves a checkered flag to the race winner at the Formula One United States Grand Prix Circuit of the Americas in Austin, Texas, on Oct. 23, 2022. Mike Segar | Reuters</figcaption></figure>



Apple will wind down its team working on electric cars, called Special Projects Group, according to Bloomberg.



The news signals an end to Apple’s secretive effort to build a car to rival Tesla. The program employed thousands of employees but never fit with Apple’s core business of electronics and online services, and raised questions about where Apple would turn for the manufacturing of a vehicle.



Reports of Apple’s ambition to build a car first surfaced in 2014 after the company recruited automotive engineers and other talent from auto companies. While there was little public information about Apple’s plans, the company operated a program with autonomous Apple-owned cars equipped with sensors and safety drivers cruising around the San Francisco Bay Area.



Apple’s Special Projects Group had several reorganizations over the years, including layoffs in 2019, when employees were moved to different parts of the company. Some Apple employees in the car division may move to a generative artificial intelligence team, according to Bloomberg.



The company has other automotive-related projects, including its infotainment CarPlay software, which Apple says is installed on 80% of new vehicles.



Apple’s car project was part of an internal effort to look for technologies the company could develop with huge potential markets. Apple continues to develop health technologies, especially for the Apple Watch. And last month, the company released its first virtual reality headset, the Vision Pro.



Some of Apple’s Asian rivals in smartphones have invested heavily in designing and potentially manufacturing cars. Xiaomi, a maker of Android smartphones, announced a new electric vehicle this week. Foxconn, Apple’s main manufacturing partner, said last year it will build electric vehicles.



Apple and CEO Tim Cook never acknowledged the car project publicly, instead referring to it as work on “autonomous systems.” In 2016, Cook was asked by a shareholder about the project, and teased that “it’s going to be Christmas Eve for a long time.”



As part of its silence, Apple’s hasn’t outlined its expenditures in the auto space. Overall, the company spent about $30 billion on research and development in 2023, a 14% increase over the prior year. Apple’s R&amp;D budget includes investments in new software and features for its existing products such as the iPhone.



Apple shares rose less than 1% on the news on Tuesday. Apple declined to comment.

107367602-17067928972022-10-23t204940z_1048320918_up1eian1luq2v_rtrmadp_0_motor-f1-usa

Apple cancels plans to build an electric car

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-820x547.jpg" alt="" class="wp-image-449453" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Central Bank of Nigeria&#8217;s logo is seen on the headquarters building in Abuja, Nigeria January 22, 2018. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Feb 27 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank hiked interest rates by 4 percentage points on Tuesday, as trade unions protested over soaring food and fuel prices that have increased hardship in Africa&#8217;s biggest economy.



Central Bank of Nigeria Governor Olayemi Cardoso said the rise in the bank&#8217;s main lending rate to 22.75% from 18.75%&nbsp;NGCBIR=ECI&nbsp;was needed to arrest inflation, which has soared to its highest in almost three decades.



&#8220;The previous policy rate hikes have slowed the rise in inflationary pressure but not to a desirable extent. Members concluded that inflation could become more persistent in the medium term and pose more regulatory challenges if not effectively anchored,&#8221; Cardoso told a news conference.



He said all 12 members of the Monetary Policy Committee participated in the rate decision, which was the first since Cardoso took office last September.



Economists had predicted a big hike but were divided on the size the central bank would go for.



Nigeria&#8217;s international dollar bonds rose as Cardoso spoke, having fallen in price earlier in the day. The 2029 maturity was up the most, by about 0.3 cents to 95.5 cents, according to Tradeweb data.&nbsp;XS2445169985=TE



Inflation has been spurred by bold but unpopular reforms implemented by President Bola Tinubu in his first year in charge, including ending a costly fuel subsidy and devaluing the local naira currency twice&nbsp;NGN=D1.



Tinubu has defended those reforms, saying they were needed to boost growth and attract investment, but they have prompted public anger and, in some cases, desperation.



On Friday, some people were killed and others injured when authorities ran out of stock at a food distribution centre in Lagos, causing a stampede, the Nigeria Customs Service said.



&#8220;The crowd became desperate and charged through our barricades in search of rice bags inside emptied containers,&#8221; it said in a statement, adding that more than 5,000 people had showed up for the distribution.



The government this week approved the immediate resumption of cash transfers to 12 million vulnerable households, but labour unions want Tinubu&#8217;s administration to go further.



&#8220;The removal of the petroleum subsidy and the dollar issue have caused untold hardship,&#8221; said Ibrahim Tajo Siraj, chair of a union of academic staff in the northern city of Kano, who joined a protest against the government&#8217;s economic policies on Tuesday.



(Reporting by Chijioke Ohuocha and Elisha Bala-GbogboAdditional reporting by Hamza Ibrahim in Kano, and Camillus Eboh and Ahmed Kingimi in Abuja, Rachel Savage in JohannesburgWriting by Bhargav Acharya and Nellie PeytonEditing by Alexander Winning and Christina Fincher)

Central Bank of Nigeria’s logo is seen on the headquarters building in Abuja

Nigeria hikes interest rates as unions protest economic hardship

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/HLW4U4DXTJI5LDOTA3PBSSGI4M-820x540.jpg" alt="" class="wp-image-460423" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/HLW4U4DXTJI5LDOTA3PBSSGI4M-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/HLW4U4DXTJI5LDOTA3PBSSGI4M-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/HLW4U4DXTJI5LDOTA3PBSSGI4M-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/HLW4U4DXTJI5LDOTA3PBSSGI4M-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/HLW4U4DXTJI5LDOTA3PBSSGI4M-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/HLW4U4DXTJI5LDOTA3PBSSGI4M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Cooling towers are pictured at a coal-based power station owned by state power utility Eskom in Duhva, South Africa, February 18, 2020. Picture taken February 18, 2020. REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, Feb 27 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s delay in taking coal-fired power stations offline will only harm its commitment to net-zero emissions by 2050 if the plants continue to burn well into the 2030s, the head of its donor-funded green energy plan said on Tuesday.



Officials admitted privately in November that South Africa will miss its binding 2030 carbon emissions targets under the Paris climate agreement, as Africa&#8217;s most industrialised country will run eight coal-fired power plants for longer than planned.



Countries around the world, including Canada, Britain and Germany have delayed or watered down energy transition plans.



South Africa is the 15th biggest emitter in the world, according to the Global Carbon Atlas, a significant drop from previous years. This is mostly owing to power shortages at state power provider Eskom. But its emissions are still much bigger than more developed economies like Britain, Vietnam or Italy.



&#8220;I think that if we delay well into the 2030s, we will have a problem in meeting our NDC (nationally determined contribution) commitments,&#8221; said Joanne Yawitch, head of the green energy overhaul which Western and multilateral donors are partly funding.



&#8220;(But) I don&#8217;t think South Africa is backtracked from (its climate commitments) in any way whatsoever,&#8221; she added.



The country committed under the Paris deal to cut emissions to between 350 and 420 million tonnes annually by 2030, from 442 million tonnes this decade. To do this, it planned to decommission eight coal-fired power plants, six by 2030 and the remaining by 2034, but has since backed away from closing them.



The economy has been hit by brutal daily power shortages.



&#8220;Over the last couple of years, we have certainly been on track to be below reasonably below that 420 megatons of carbon equivalent (the 2030 goal),&#8221; Yawitch said, adding that &#8220;we haven&#8217;t had any indications that there is risk to the (donor) &#8230; financing&#8221; from delays to decommissioning coal plants.



(Reporting by Tim Cocks, editing by Ed Osmond)

Cooling towers are pictured at a coal-based power station owned by Eskom in Duhva

South Africa says climate targets on track if coal switch not delayed again

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="552" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107343954-1701877568407-gettyimages-1835240563-wm_10263_h1xkdgsj-820x552.jpeg" alt="" class="wp-image-460391" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107343954-1701877568407-gettyimages-1835240563-wm_10263_h1xkdgsj-820x552.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107343954-1701877568407-gettyimages-1835240563-wm_10263_h1xkdgsj-300x202.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107343954-1701877568407-gettyimages-1835240563-wm_10263_h1xkdgsj-134x90.jpeg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107343954-1701877568407-gettyimages-1835240563-wm_10263_h1xkdgsj-768x517.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107343954-1701877568407-gettyimages-1835240563-wm_10263_h1xkdgsj-1536x1034.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107343954-1701877568407-gettyimages-1835240563-wm_10263_h1xkdgsj-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



The burgeoning artificial intelligence tools from companies such as OpenAI still have their share of skeptics, but don’t count JPMorgan Chase CEO Jamie Dimon among them.



The Wall Street titan told CNBC’s Leslie Picker on Monday that AI is not just a passing fad and is bigger than just the large language models such as Chat GPT. He compared the current moment favorably to the tech bubble around the start of the 21st century, when investor excitement seemingly got ahead of the actual changes.



“This is not hype. This is real. When we had the internet bubble the first time around … that was hype. This is not hype. It’s real,” Dimon said. “People are deploying it at different speeds, but it will handle a tremendous amount of stuff.”



JPMorgan has done work on the ability to use the new technologies internally, with Dimon saying that AI will eventually “be used in almost every job.” JPMorgan created a new role of chief data and analytics officer last year, in part to handle AI.



Dimon said Monday that there are 200 people at JPMorgan doing research on the large language models that have recently been rolled out by tech companies.



While acknowledging that AI can be used by bad actors, Dimon called himself a “big optimist” about the emerging technology, mentioning cybersecurity and pharmaceutical research as areas where it can be helpful.



“It may invent cancer cures because it can do things that the human mind simply cannot do,” Dimon said.

107343954-1701877568407-gettyimages-1835240563-wm_10263_h1xkdgsj

JPMorgan CEO Jamie Dimon says AI is not just hype — ‘This is real’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107223050-1681209527842-gettyimages-911964384-set04375-29january2018kw0061-1-820x462.jpeg" alt="" class="wp-image-460361" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107223050-1681209527842-gettyimages-911964384-set04375-29january2018kw0061-1-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107223050-1681209527842-gettyimages-911964384-set04375-29january2018kw0061-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107223050-1681209527842-gettyimages-911964384-set04375-29january2018kw0061-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107223050-1681209527842-gettyimages-911964384-set04375-29january2018kw0061-1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107223050-1681209527842-gettyimages-911964384-set04375-29january2018kw0061-1.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The bitcoin halving is an event that happens roughly every four years where rewards to miners are cut in halve, effectively limiting supply of the token. S3studio | Getty Images</figcaption></figure>



<a href="https://www.cnbcafrica.com/quotes/BTC=X/">Bitcoin</a>, the world’s largest cryptocurrency by market cap, extended a rally in Asia trading on Tuesday, reaching a two-year high of over $56,000 and uplifting the broader crypto market amid positive market developments and buying from crypto bulls.



The price of bitcoin increased over 10% within two days, according to data from CoinMarketCap, after crypto investing and software firm MicroStrategy disclosed a purchase of about 3,000 bitcoins for $155 million on Monday.



MicroStrategy, based in Virginia, is currently the largest publicly traded owner of bitcoin. The company reported a holding of about 190,000 of the cryptocurrency tokens earlier this month, which would be worth over $10.5 billion today.



According to Greta Yuan, head of research at digital asset platform VDX, the market was “encouraged by crypto bulls such as MicroStrategy” as well as a “new record of Bitcoin ETF inflows.”



Most of the cryptocurrency market experienced a lift from the latest rally. Ethereum, the second-largest cryptocurrency by market cap, reached a multi-month high above $3,200.



Crypto-related equities also surged in trading in the U.S. MicroStrategy and San Francisco-based crypto exchange company Coinbase both leaped over 16% on Monday and continued gaining in aftermarket trading.



The two crypto-related companies have seen their stock prices grow 200% over the past year. 



Speaking to CNBC last week, Alesia Haas, Coinbase’s CFO, attributed the company’s recent strong financial results to the regulatory approval of spot bitcoin ETFs in the U.S. last month, which had triggered renewed fervor surrounding the cryptocurrency.&nbsp;



According to VDX’s Yuan, the surging price of bitcoin also reflects the “bullish sentiment of investors, especially in the U.S.,” ahead of an upcoming “bitcoin halving” set for the second half of April.&nbsp;



A bitcoin halving event occurs every four years, with the reward for bitcoin mining — the process by which transactions are digitally verified on the blockchain — cut in half, thus reducing the rate at which new bitcoin tokens are created and lowering the amount of new supply available.



“As Bitcoin’s halving draws closer, investors are rushing to the best positioning for the event. The new record of inflow volume of Bitcoin ETFs is another confidence check for bullish investors,” Yuan added.&nbsp;



The strong bitcoin performance also comes amid the dollar trading down on Monday and Tuesday. Markets anticipate U.S. economic data this week that could signal how soon the Federal Reserve may begin cutting interest rates.



Bitcoin prices and the U.S. dollar index have historically shown an inverse correlation.

107223050-1681209527842-gettyimages-911964384-set04375-29january2018kw0061-1

Bitcoin surpasses $56,000 benchmark, uplifts crypto market in latest rally

<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/SXGKQXEHZNJHHKDBGEFSY7CHIU-820x547.jpg" alt="" class="wp-image-460329" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Senegal&#8217;s President Macky Sall arrives for the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. Lewis Joly/Pool via REUTERS/File Photo</figcaption></figure>



DAKAR, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;Senegal&#8217;s President Macky Sall on Monday urged participants in a national dialogue to reach a consensus on a date to hold a delayed presidential election, failing which he will ask the Constitutional Council to find his replacement when his mandate ends on April 2.



The West African nation, set to become an oil and gas producer by the end of the year, has been thrown into an unprecedented political crisis after Sall postponed the election initially scheduled for Feb. 25.



Senegal&#8217;s Constitutional Council, the highest election authority, later ruled that Sall&#8217;s decision to postpone the election, and a subsequent 10-month postponement voted by parliament, were unconstitutional.



The electoral crisis has led to violent protests and warnings of authoritarian overreach in one of coup-hit West Africa&#8217;s more stable democracies.



Sall has declared that his mandate will end on April 2 as stipulated by the constitution so as to assuage fears he wanted to extend his rule in the country. However, the process to elect a new president was unlikely to be concluded by that date.



&#8220;If we reach a consensus, I will set the date for the election,&#8221; Sall said late on Monday while concluding the first of two days of the national dialogue. Participants included some candidates, political parties, civil society and traditional and religious organizations.



&#8220;Otherwise, I will ask the Constitutional Council to find my a replacement on April 2,&#8221; Sall warned.



The talks were boycotted by 15 of the 19 approved candidates who want him to hold the election as soon as possible and leave office when his mandate ends on April 2.



Sall told the national dialogue that the government will propose a general amnesty for those detained between 2021 and 2024 due to the political crisis.



The amnesty could see the release of firebrand opposition leader Ousmane Sonko who was excluded from the race, and his handpicked successor Bassirou Diomaye Faye, who are both detained.



(Reporting by Portia Crowe and Diadie Ba; Writing by Bate Felix; Editing by David Gregorio)

featured

South African factory activity recovers in February – Absa PMI

WTO talks head into overtime with no sign of breakthrough

Stocks eye monthly gains on China rebound, currencies steady ahead of US inflation test

New Eskom boss under pressure to turn South Africa’s lights back on

Bitcoin hits record highs in African currencies as it nears all-time highs

India, South Africa block investment deal at WTO talks

Brazil warns of global economic challenges as G20 finance chiefs meet

Africa’s debt to stay above pre-pandemic levels through 2025, UN official says

South African fashion retailers boost local production amid port delays

S.Africa Regulator orders Canal Plus to offer MultiChoice buyout

Asian shares lose ground as US inflation data awaits; kiwi slides

Apple cancels plans to build an electric car

Nigeria hikes interest rates as unions protest economic hardship

South Africa says climate targets on track if coal switch not delayed again

JPMorgan CEO Jamie Dimon says AI is not just hype — ‘This is real’

Bitcoin surpasses $56,000 benchmark, uplifts crypto market in latest rally

Senegal seeks consensus on date for delayed presidential election

News Tips

Advertise With Us

featured

South African factory activity recovers in February – Absa PMI

WTO talks head into overtime with no sign of breakthrough

Stocks eye monthly gains on China rebound, currencies steady ahead of US inflation test

New Eskom boss under pressure to turn South Africa’s lights back on

Bitcoin hits record highs in African currencies as it nears all-time highs

India, South Africa block investment deal at WTO talks

Brazil warns of global economic challenges as G20 finance chiefs meet

Africa’s debt to stay above pre-pandemic levels through 2025, UN official says

South African fashion retailers boost local production amid port delays

S.Africa Regulator orders Canal Plus to offer MultiChoice buyout

Asian shares lose ground as US inflation data awaits; kiwi slides

Apple cancels plans to build an electric car

Nigeria hikes interest rates as unions protest economic hardship

South Africa says climate targets on track if coal switch not delayed again

JPMorgan CEO Jamie Dimon says AI is not just hype — ‘This is real’

Bitcoin surpasses $56,000 benchmark, uplifts crypto market in latest rally

Senegal seeks consensus on date for delayed presidential election

News Tips

Advertise With Us

Newsletters