<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>



Feb 21 (Reuters)&nbsp;&#8211;&nbsp;A gauge of emerging market stocks recovered to levels last seen at the start of the year on Wednesday, boosted by strong gains in Chinese equities, while the South African rand was flat ahead of a pre-election budget speech.



As of 0905 GMT, MSCI&#8217;s gauge for emerging market stocks&nbsp;.MSCIEF&nbsp;rose 0.1%, briefly touching a near seven-month high, buoyed by advances in Chinese shares.



China blue-chips .CSI300 closed 1.4% higher, its seventh straight day of gains, while equities in Shanghai .SSEC advanced 1.0% as investors took heart over policymakers&#8217; efforts to boost market confidence.



China&#8217;s stock exchanges said major quant fund Lingjun Investment had broken rules on orderly trading and barred it from buying and selling for three days, as part of wider regulatory efforts to revive market confidence.



The South African rand&nbsp;ZAR=&nbsp;edged 0.1% lower to 18.91 per dollar ahead of the 2024 budget speech by Finance Minister Enoch Godongwana at 1200 GMT.



&#8220;The challenge for South Africa&#8217;s finance minister will be seeking out pre-election giveaways while continuing to show that South Africa&#8217;s debt-to-GDP trajectory will be stabilising at around 78% in 2025/26 &#8230; that will be a challenging task given weak growth,&#8221; Chris Turner, global head of markets at ING wrote in a note.



Separately, South Africa&#8217;s headline consumer inflation quickened to 5.3% year-on-year in January from 5.1% in December.



Currencies in emerging Europe traded in a tight range owing to a lack of catalysts, with Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;tipping 0.4% lower against the euro.



Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;eased 0.1%, while the Czech crown&nbsp;EURCZK=&nbsp;was pinned at 21-month lows, trading at 25.393 per euro. A broader index of EM currencies&nbsp;.MIEM00000CUS&nbsp;was flat.



The Romanian leu&nbsp;EURRON=&nbsp;was flat at 4.974 per euro, while stocks in Bucharest&nbsp;.BETI&nbsp;gained 0.6% ahead of minutes from the Romanian central bank&#8217;s last policy meeting on Friday.



Later in the day, minutes from the Federal Reserve&#8217;s latest policy meeting would be eyed, as global markets re-assess the timing of interest rate cuts following stubbornly-high inflation data in the world&#8217;s biggest economy last week.



Elsewhere in emerging markets, Pakistan&#8217;s sovereign dollar bonds jumped after two major political parties said late on Tuesday they had reached an agreement to form a coalition government.



HIGHLIGHTS:



** Bank Indonesia holds rates, keeps tips for cut in second half



** Turkish consumer confidence slips in February, official data shows



** South Africa to hold national and provincial elections on May 29



(Reporting by Shashwat Chauhan in Bengaluru; Editing by Sharon Singleton)

Illustration photo of South African rand

Stocks advance on China boost, South Africa’s rand flat ahead of budget speech

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-820x547.jpeg" alt="" class="wp-image-458363" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">IBADAN, Nigeria &#8211; Feb. 19, 2024: Demonstrators are seen at a protest against the hike in price and hard living conditions in Ibadan on February 19, 2024. Samuel Alabi | Afp | Getty Images</figcaption></figure>



With annual inflation nearing 30% and a currency in freefall, Nigeria is facing one of its worst economic crises in years, provoking nationwide outrage and protests.



The Nigerian naira hit a new all-time low against the U.S. dollar on both the official and parallel foreign exchange markets on Monday, sliding to almost 1,600 against the greenback on the official market from around 900 at the start of the year.



President Bola Tinubu announced Tuesday that the federal government plans to raise at least $10 billion to boost foreign exchange liquidity and stabilize the naira, according to multiple local media reports.



The currency is down around 70% since May 2023 when Tinubu took office, inheriting a struggling economy and promising a raft of reforms aimed at steadying the ship.



In a bid to fix the beleaguered economy and attract international investment, Tinubu unified Nigeria’s multiple exchange rates and enabled market forces to set the exchange rate, sending the currency plunging. In January, the market regulator also changed how it calculates the currency’s closing rate, resulting in another de facto devaluation.



Years of foreign exchange controls have also generated enormous pent-up demand for U.S. dollars at a time when overseas investment and crude oil exports have declined.



“The weakened exchange rate should increase imported inflation, which will exacerbate price pressures in Nigeria,” Pieter Scribante, senior political economist at Oxford Economics, said in a note Friday.



The country is Africa’s largest economy and has a population of more than 210 million people, but relies heavily on imports to meet the needs of its rapidly growing population.



“Shrinking disposable incomes and worsening cost-of-living pressures should remain concerns throughout 2024, further stifling consumer spending and private sector growth,” Scribante added.



Inflation, meanwhile, continues to soar, with the headline consumer price index hitting 29.9% year-on-year in January, its highest level since 1996. The increase is being driven by a persistent rise in food prices which jumped by 35.4% last month compared to the year before.



The surging cost of living and economic hardship prompted protests across the country over the weekend. The plummeting currency has added to the negative impact of government reforms such as the removal of gas subsidies, which tripled gas prices.



President Tinubu said in late July that the government had already saved more than 1 trillion naira ($666.4 million) from removing the subsidies, which it will redirect into infrastructure investment.



Alongside soaring inflation and a plunging currency, Nigeria is also battling record levels of government debt, high unemployment, power shortages and declining oil production — its main export. These economic pressures are compounded by violence and insecurity in many rural areas.



“Excess market liquidity, exchange rate pressures, and food and fuel shortages threaten price stability, while inflation risks rising out of the government’s control,” Oxford Economics’ Scribante added.



“Robust import demand could force the Central Bank of Nigeria (CBN) to reimpose import bans and FX restrictions to lessen the burden on the balance of payments. This could exacerbate domestic product shortages and increase inflation further.”



Inflation is expected to peak at nearly 33% year-on-year in the second quarter of 2024, according to Oxford Economics, and could stay higher for longer given the plethora of economic risks ahead.



“Furthermore, rising inflation and increased hawkishness by the CBN indicate that the policy rate could be raised this quarter,” Scribante said. The policy rate currently sits at 18.75%.



“We expect a combined 200 bps in rate hikes at the next two MPC meetings, scheduled for end-February and end-March this year; however, we think that more hikes are needed to stem rising inflation,” Scribante added.



Jason Tuvey, deputy chief emerging markets economist at Capital Economics, sees the CBN opting for a bigger interest rate bazooka when policymakers meet on Feb. 26 and 27.



“The meeting will be a key test of whether the policy shift under President Tinubu is truly regaining some momentum,” Tuvey said in a note Thursday.



“We expect that the MPC will try to restore some of its inflation-fighting credibility by delivering a large interest rate of 400bp, to 22.75%.

107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8

Africa’s largest economy is battling a currency crisis and a crumbling economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="527" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-820x527.jpg" alt="" class="wp-image-458083" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-820x527.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-768x494.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-1536x988.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/KB3XP45BC5OJRD6EVRXRJ2KARA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Job seekers wait beside a road for casual work offered by passing motorists in Eikenhof, south of Johannesburg, South Africa, November 20, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



PRETORIA, Feb 20 (Reuters) &#8211; South Africa&#8217;s unemployment rate rose in the fourth quarter of last year, bucking a trend where jobs tend to be added around the holiday season as a labour market recovery from the COVID-19 pandemic ground to a halt.



Analysts said the rise in the official unemployment rate to 32.1% from 31.9% in the third quarter painted a dismal picture months before the country is due to hold national and provincial elections.



The rand extended losses on the data in cautious trade before Wednesday&#8217;s 2024 budget.



A presentation by the statistics agency showed community and social services, construction, agriculture and trade sectors contributed to the unemployment increase and that the fourth quarter followed eight consecutive quarters of job gains.



The head of labour statistics at Statistics South Africa, Desiree Manamela, said the drop in employment in the trade sector in the final quarter of 2023 was unusual.



&#8220;In previous periods we saw employment being created and mainly because of what happens in trade during the festive season,&#8221; she said.



High levels of unemployment and weak economic growth are perennial hot-button issues at the polls, denting support for the governing African National Congress (ANC) in recent elections and boosting opposition parties.



Analysts widely expect the ANC will lose its parliamentary majority for the first time since it came to power at the end of apartheid three decades ago.



President Cyril Ramaphosa, the ANC&#8217;s leader, is expected to announce the election date this week.



In particular the ANC has struggled to win over younger voters, who continue to experience the highest levels of unemployment and many of whom have not registered to vote.



Job cuts announced this week by mining companies Anglo American Platinum and Kumba Iron Ore suggest there could be further upward pressure on the unemployment rate in 2024. 



(Gumbi reported from Pretoria and Miridzhanian from Johannesburg Editing by Alexander Winning and Ros Russell)

Job seekers wait beside a road for casual work offered by passing motorists

South African labour market recovery stalls months before election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-820x551.jpg" alt="" class="wp-image-458037" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Men sit as they wait for a prospective employer for the day in Abuja, Nigeria December 19, 2018. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Feb 20 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s unemployment rate rose to 5% in the third quarter amid a cost-of-living crisis after the government scrapped a popular but costly petrol subsidy.



President Bola Tinubu has defended his two biggest reforms &#8211; the scrapping of the subsidy and foreign exchange controls &#8211; saying although this would lead to hardship in the short term, they are necessary to attract investment and boost government finances.



The unemployment rate rose from 4.2% in the previous quarter, according to data released by the National Bureau of Statistics late on Monday.



The jobless rate among young people aged 15-24 rose to 8.6% from 7.2%. Unemployment in the urban areas also rose marginally to 6% from 5.9% in the previous quarter.



Nigeria, Africa&#8217;s most populous nation of more than 200 million people, has been dogged by high unemployment for decades due to a rapid population rise that has outpaced economic growth.



But the jobless rate has crashed from a record 33% in the fourth quarter of 2020 after the government revised the methodology for computing the data in early 2023.



Still, underemployment persists with 87% self-employed. Only 12.7% were in wage employment during the period.



The informal employment rate, which measures the proportion of workers in the grey economy, was little changed at 92.3%, according to the NBS, while the workforce participation also fell slightly to 79.5% from 80.4% in the second quarter.



(Reporting by Elisha Bala-Gbogbo; Editing by Shri Navaratnam)

Men sit as they wait for a prospective employer for the day in Abuja

Nigeria’s Q3 jobless rate rises to 5% as impact of reforms takes effect

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-820x462.jpg" alt="" class="wp-image-458020" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">(L) Oil pumpjacks and (R) gold bars Getty Images</figcaption></figure>



Gold prices could soar to $3,000 per ounce, and oil to $100 per barrel within the next 12 to 18 months subject to any one of three possible catalysts, according to Citi.



Gold, which is currently trading at $2,016, could surge by about 50%, if central banks sharply ramp up purchases of the yellow metal, a possible stagflation, or in case of a deep global recession, Aakash Doshi, Citi’s North America head of commodities research, told CNBC.



<h2 class="wp-block-heading" id="h-central-bank-s-gold-rush"><a></a>Central bank’s gold rush</h2>



“The most likely wildcard path to $3,000/oz gold is a rapid acceleration of an existing but slow-moving trend: de-dollarization across Emerging Markets central banks that in turn leads to a crisis of confidence in the U.S. dollar,” Citi analysts including Doshi wrote in a recent note.



That could double central bank’s gold purchases, challenging jewelry consumption as the largest driver of gold demand, Doshi elaborated. 



Central banks’ gold purchases have “accelerated to record levels” in recent years, as they seek to diversify reserves and reduce credit risk, Citi said. China and Russian central banks are leading gold purchases, with India, Turkey, and Brazil, also increasing&nbsp;bullion buying.



The world’s central banks have sustained two successive years of more than 1,000 tons of net gold purchases, the World Gold Council reported in January.



“If that goes again [to] double very quickly to 2,000 tons, we think that would be actually very bullish for gold,” Doshi told CNBC via phone.



<h2 class="wp-block-heading"><a></a>A global recession?</h2>



Another trigger that could drive gold to $3,000 would be a “deep global recession” that could spur the U.S. Federal Reserves to cut rates rapidly.



“That means the brakes have been cut, not to 3%, but to 1% or lower &#8211; that will take us to $3,000,” Doshi said, noting that this is a low probability scenario.



Gold prices tend to share an inverse relationship with interest rates. As interest rates dip, gold becomes more appealing compared to fixed-income assets such as bonds, which would yield weaker returns in a low interest rate environment. 



The Fed benchmark interest rate has been between 5.25% and 5.5% since July 2023, the highest since January 2001 when it shot to 6% following the dot-com bubble burst. Markets expect the Fed to cut rates in May or June.



Stagflation — an increasing inflation rate, a slowing economic growth and rising unemployment — could be another trigger, though Doshi said there’s a “very low probability” of such a scenario.



Gold is perceived as a safe haven and tends to perform well in periods of economic uncertainty when investors move away from the riskier assets such as equities.



These three potential triggers aside, Citi maintains that their base case for bullion is $2,150 in the second half of 2024, and the price of gold to average a little over $2,000 in the first half. A new record could be reached towards the end of 2024, Doshi added.



<h2 class="wp-block-heading"><a></a>Oil at $100?</h2>



Another wildcard scenario highlighted in Citi’s report was for oil prices to hit triple digits again.



The catalysts for oil to hit $100 per barrel include higher geopolitical risks, deeper OPEC+ cuts and supply disruptions from key oil producing regions, Doshi said.&nbsp;



The ongoing Israel-Hamas war has not hit oil production or exports, with the only significant impact being the Houthi attacks from Yemen on oil tankers and other ships traversing the Red Sea.



Major oil producer Iraq has been impacted by the conflict and any further escalation could hurt other major OPEC+ suppliers in the region, Citi said.



Recent developments show that tensions have been rising on the border between Israel and Lebanon, raising fears that the war in Gaza could spread elsewhere in the Middle East.



Doshi said Iraq, Iran, Libya, Nigeria and Venezuela are vulnerable to supply disruptions, with steeper U.S. sanctions policy on Iran and Venezuela potentially on the cards.&nbsp;



Other geopolitical risks such as Russian oil supplies, should Ukraine attack Russian refineries with drones, cannot be ruled out, Citi’s analysts wrote. Doshi maintained that their base case for oil stands at around $75 per barrel for the year.



Global benchmark Brent’s April futures were trading at $83.56 a barrel, while the U.S. West Texas Intermediate March futures stood at $79.13 per barrel.<a href="https://www.tetrapak.com/insights/trendipedia" target="_blank" rel="noreferrer noopener"></a>

102851129-oilandgold

Gold at $3,000 and oil at $100 by 2025? Citi analysts don’t rule it out

<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/QV7ZOHJXTNLE7JAJJXH4EOPHSI-820x461.jpg" alt="" class="wp-image-457691" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An aerial view of the streets in the capital Niamey, Niger July 28, 2023. REUTERS/Souleymane Ag Anara</figcaption></figure>



DAKAR, Feb 19 (Reuters) &#8211; Niger last week missed a debt payment of 13.4 billion CFA francs ($22 million), the West African debt management agency said on Monday, bringing the total default to some $519 million since a July coup and its suspension from regional financial markets.



The West African monetary union debt management agency UMOA Titres said in a statement that Niger had failed to make a repayment of principal which was due on Feb. 16.



It noted that this occurred in the context of Niger being subject to sanctions imposed by the conference of heads of state and government of the West African Economic and Monetary Union (known by its French acronym, UEMOA).



&#8220;This situation is carefully monitored by UMOA-Titres in collaboration with the institutions concerned,&#8221; it said in a statement.



Niger has been suspended from the regional financial market, and the regional central bank by the Economic Community of West African States (ECOWAS) and UEMOA following a military coup in July that ousted President Mohamed Bazoum.



The country announced last month, along with neighbours Mali and Burkina Faso, that it was leaving ECOWAS with immediate effect. The regional bloc has a summit planned for Feb. 24 to discuss the situation.



($1 = 604.0000 CFA francs)



(Reporting by Nellie Peyton, editing by Ed Osmond)

Aerial view of the streets in Niamey

Niger misses debt payment, default up to almost $520 million

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-820x524.jpg" alt="" class="wp-image-418610" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/F5HEVWSA65JFHLPH4VWHRBUB5I.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A cow is seen near the AngloAmerican sign board outside the Mogalakwena platinum mine in Mokopane , north-western part of South Africa , Limpopo province May 18, 2016. REUTERS/Siphiwe Sibeko</figcaption></figure>



Feb 19 (Reuters)&nbsp;&#8211;&nbsp;Anglo American Platinum&nbsp;AMSJ.J&nbsp;said on Monday it&nbsp;plans to cut thousands of jobs at its mines in South Africa after its profits plunged by 71% last year.



The Anglo American&nbsp;AAL.Lunit said in a statement that it is embarking on a restructuring that could affect about&nbsp;3,700 jobs at its South African operations&nbsp;as it battles to keep the lid on costs amid&nbsp;falling platinum-group metals prices.



The miner is also reviewing contracts with 620 service providers, Amplats said.



The restructuring decision &#8220;has not been taken lightly&#8221; Craig Miller, the chief executive officer.



&#8220;It&#8217;s very much a last resort, not least as we recognise the unemployment challenges in South Africa and the socio-economic impact that the proposed restructuring may have on our people and the communities we are part of,&#8221; Miller said on a conference call.



The&nbsp;Johannesburg-based firm said its profit slumped to&nbsp;14 billion rand ($741.81 million) in the year ended Dec.31&nbsp;compared to&nbsp;48.8 billion rand the previous year. Amplats slashed its dividend by 81%, to 21.30 rand per share.



Still, Amplats said the payout is within its ratio of 40% of headline earnings.



The prices of palladium and rhodium fell 37% and 58%



in the year, respectively. Amplats&#8217; South African peers including Sibanye Stillwater have also announced plans to cut jobs due to the fall in metal prices.



Anglo American CEO Duncan Wanblad, told Reuters on Feb.5 that the group was considering deeper cost-cutting measures if market conditions did not improve. In December, Anglo American has announced sweeping cuts to save about $1.8 billion by 2026.



As part of the cost-cutting measures, Amplats is postponing planned projects at its Amandelbult complex, it said.



($1 = 18.8727 rand)



(Reporting by Prerna Bedi in Bengaluru and Nelson Banya in Harare; Additional reporting by Felix Njini; Editing by Savio D&#8217;Souza and Kim Coghill)

F5HEVWSA65JFHLPH4VWHRBUB5I

Amplats plans to cut thousands of jobs cuts after profit plunge

<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/A6RAHQABDRIGTJNVXZ2UH7TGEQ-820x547.jpg" alt="" class="wp-image-451705" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast, January 30, 2020.REUTERS/Luc Gnago</figcaption></figure>



JOHANNESBURG, Feb 16 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s economic growth fell to 3.2% last year from 4.1% in 2022, the African Development Bank said on Friday, but it projected higher growth this year for all regions except central Africa.



The AfDB said political instability and China&#8217;s economic slowdown were compounding the shocks of COVID-19 and Russia&#8217;s war in Ukraine.



The final figure for 2023 was below the 3.4% growth the AfDB had forecast in November. It also cut its regional growth estimates for central and north Africa, amid a recession in oil producer Equatorial Guinea and the aftermath of devastating flooding in Libya.



&#8220;The shocks buffeting African economies since 2020 have damaged growth, with long-term implications,&#8221; the bank said in a report.



Despite the shocks buffeting the region, 15 African countries posted economic growth of more than 5% last year, the AfDB said, including Ethiopia, which is restructuring its external debt, Ivory Coast, Democratic Republic of Congo, Mauritius and Rwanda.



The bank forecast faster growth in all regions except for central Africa in 2024, with southern Africa seen as remaining the laggard at 2.2% compared with 5.7% in east Africa.



Southern Africa&#8217;s &#8220;sluggish performance reflects the continued economic stagnation in South Africa,&#8221; the bank said, with the region&#8217;s largest economy, which holds national elections this year, predicted to grow 1.1% in 2024, up from 0.8% last year.



&#8220;This underwhelming economic situation has aggravated the country&#8217;s persistently high unemployment, poverty, and inequality and prevented it from reaping democratic dividends in the 30 years since the end of White minority rule,&#8221; AfDB said.



Nigeria, West Africa&#8217;s largest economy, is set to grow 2.9% in 2024, up 0.4 percentage points from last year as a sharply devalued currency pushes up inflation, exacerbating a cost of living crisis.



In Egypt, high inflation and foreign exchange shortages are forecast to drag growth down to 3.7% this year, versus 4% in 2023.



(Reporting by Rachel Savage;)

The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast

Africa’s economic growth fell to 3.2% in 2023, says African Devt Bank

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government said on Thursday that it would buy back more than $1.4 billion of its $2 billion international bond maturing in June, announcing the results of a tender offer it launched last week.



The East African country has been on the radar of investors because they feared it might not be able to repay due to its strained public finances.



This week Kenya sold a new $1.5 billion Eurobond at great cost to fund the buyback of a large portion of the $2 billion bond.



The government said in a regulatory notice that it would buy $1.443 billion in aggregate principal amount of the bond, slightly more than the maximum tender offer it had announced on Tuesday.



It will buy investors&#8217; holdings back at par, or face value.



An accrued interest payment will be paid in addition to the purchase price, the notice said.



Confidence that the Eurobond would be repaid has lifted the local shilling currency KES= in recent days, helping it recover to its strongest level against the dollar since June 2023 on Thursday.



However the double-digit yield Kenya was forced to pay on the $1.5 billion bond sold this week is an indication that it is still seen as risky by investors.



The pressure on the Kenyan government&#8217;s finances has forced it to try to squeeze every shilling it can from taxpayers, angering voters who had supported the current government on the premise it would lower the cost of living.



But it benefits from international backing, including from the International Monetary Fund, which boosted its support programme by $941 million in January.



(Reporting by George Obulutsa and Alexander Winning; Additional reporting by Rachel Savage; Editing by Kirsten Donovan, Andrew Heavens and Alex Richardson)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya to buy back over $1.4 bln of bond that had unnerved investors

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-820x547.jpg" alt="" class="wp-image-428991" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is considering the introduction of state police in its 36 states to bolster its national police force as it struggles to contain widespread violence and insecurity, the information minister said on Thursday.



An Islamist insurgency in the northeast, kidnappings for ransom, deadly farmer-herder clashes in the central belt and separatist and gang violence in the southeast are some of the challenges faced by Nigeria&#8217;s police force.



President Bola Tinubu met the country&#8217;s state governors to discuss insecurity, which is hurting farmers and contributing to high food prices and inflation.



The federal government and the state governments agreed that a state police force was necessary, marking &#8220;a significant shift&#8221; in approach, Information Minister Mohammed Idris told reporters after the meeting.



This is the first time that Nigeria&#8217;s federal and state governments have agreed on the need to set up state police to reinforce the more than 300,000-strong national police force in Africa&#8217;s most populous nation.



Nigerian Police Inspector General Kayode Egbetokun said last year at least 190,000 more officers were needed to secure the country adequately. He said the force was well below the United Nations&#8217; recommended ratio of one police officer to about 450 citizens.



Some states, like Lagos, have annual budgets the size of small African countries, and have long advocated for their own state police, saying this would help combat insecurity.



Ikemesit Effiong of risk consultancy SBM Intelligence said establishing state police would not solve the whole problem.



&#8220;Expanding the police force is one thing, fundamentally reframing the architecture and focus of policing from retribution and state control to investigation and crime prevention is quite another,&#8221; Effiong said.



(Reporting by Felix Onuah; Editing by Ros Russell)

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria mulls state policing to combat growing insecurity

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ACCRA, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s new finance minister, Mohammed Amin Adam, pledged on Thursday to keep its $3 billion International Monetary Fund (IMF) programme on track as it aims to finish restructuring its overseas debt before an election in December.



President Nana Akufo-Addo replaced Ken Ofori-Atta with Adam, a petroleum economist who was minister of state at the finance ministry, in a cabinet reshuffle after criticism of the ex-banker&#8217;s leadership during the West African country&#8217;s worst economic crisis in a generation.



Ofori-Atta negotiated the IMF bailout loan to address the crisis, which saw inflation and debt servicing costs spiral upwards in 2022. He was, alongside Adam, seeking relief on about $13 billion owed to private bondholders when he was removed.



&#8220;There will not be any delays in the ongoing debt negotiations with bondholders because I have been part of the process,&#8221; Adam, once deputy minister of energy in charge of petroleum, said in a telephone interview.



&#8220;The advisers remain the same and the targets have not changed,&#8221; he said, noting that he was involved in talks from the start.



With national elections approaching in December, some analysts fear the new minister could relax fiscal consolidation to bolster the electoral fortunes of the ruling party.



&#8220;There will be no reversal on the IMF programme of fiscal consolidation. Revenue mobilization will be aggressive, backed by new reforms at the Ghana Revenue Authority,&#8221; Adam said.



He also said spending would be efficient and directly benefit Ghanaians.



&#8220;I am a pro-reform person,&#8221; Adam said. &#8220;And therefore strongly support the structural benchmarks under the IMF programme&#8221;.



The IMF has expressed its support for the new minister.



The World Bank board last month approved $300 million for Ghana, after it reached a deal to restructure $5.4 billion of loans with its official creditors.



Ghana is entitled to a three-part, $900 million Development Policy Operation loan from the World Bank and Adam told a local radio station earlier on Thursday that negotiations for the next disbursement were about to start.



(Reporting by Maxwell Akalaare Adombila, Editing by Rachel Savage, Alison Williams and Alex Richardson)

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

Ghana’s new finance minister pledges to keep IMF programme on track

<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/The-Elders-820x547.jpeg" alt="" class="wp-image-456384" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Written by: 



<ul class="wp-block-list">
<li>Mary Robinson, former President of Ireland, and Chair of The Elders</li>



<li>Gordon Brown, former Prime Minister of the United Kingdom</li>



<li>Annie Lennox, Singer-songwriter and political activist</li>



<li>Charles Oppenheimer, grandson of J. Robert Oppenheimer</li>



<li>Ban Ki-moon, Former UN Secretary-General and Deputy Chair of The Elders</li>



<li>Sir Richard Branson, Co-founder, Virgin Group</li>



<li>Christoph Heusgen, Chair of the Munich Security Conference</li>
</ul>



Our world is in grave danger. We face a set of threats that put all humanity at risk. Our leaders are not responding with the wisdom and urgency required.    



The impact of these threats is already being seen: a rapidly changing climate, a pandemic that killed millions and cost trillions, wars in which the use of nuclear weapons has been openly raised. &nbsp;



There could be worse to come. Some of these threats jeopardise the very existence of life on earth. We do not yet know how significant the emerging risks associated with Artificial Intelligence will be.&nbsp;&nbsp;



We are at a precipice. &nbsp;



The signatories of this letter call on world leaders to work together to address these existential threats more decisively. We welcome people of all communities, generations, and political views to join us in asking for courageous decision-making &#8211; for the sake of our common future. &nbsp;



The knowledge and resources to address these challenges exist. But too many of our leaders lack the political will or capability to take decisive action. They seek short-term fixes over long-term solutions.  &nbsp;



In a year when half the world’s adult population face elections, we urge all those seeking office to take a bold new approach. We need long-view leadership from decision-makers who understand the urgency of the existential threats we face, and believe in our ability to overcome them. &nbsp;



Long-view leadership means showing the determination to resolve intractable problems not just manage them, the wisdom to make decisions based on scientific evidence and reason, and the humility to listen to all those affected. Long-view leaders must have the moral strength to address both current concerns and long-term risks, often at the expense of vested interests.  &nbsp;



Such values should be common to all political leaders. But they are woefully missing in so many. We need leaders, women and men, who consistently demonstrate the courage to:  &nbsp;



<ol class="wp-block-list">
<li>Think beyond short-term political cycles and deliver solutions for both current and future generations.  &nbsp;</li>



<li>Recognise that enduring answers require compromise and collaboration for the good of the whole world.  &nbsp;</li>



<li>Show compassion for all people, designing sustainable policies which respect that everyone is born free and equal in dignity and rights. &nbsp;</li>



<li>Uphold the international rule of law and accept that durable agreements require transparency and accountability.   &nbsp;</li>



<li>Commit to a vision of hope in humanity’s shared future, not play to its divided past. &nbsp;</li>
</ol>



These principles of long-view leadership can inform urgent changes in policy. Governments can get to work now to agree how to finance the transition to a safe and healthy future powered by clean energy, relaunch arms control talks to reduce the risk of nuclear war, save millions of lives by concluding an equitable pandemic treaty, and start to build the global governance needed to make AI a force for good, not a runaway risk. &nbsp;



As leaders prepare to gather in New York in September for the UN Summit of the Future, it is time to change direction. The biggest risks facing us cannot be tackled by any country acting alone. Yet when nations work together, these challenges can all be addressed, for the good of us all. &nbsp;



Despite the seriousness of these existential threats, hope remains. Our best future can still lie ahead of us. We call on leaders to take the long view, and show the courage to lead us to that better future.

The-Elders

Open letter calling on world leaders to show long-view leadership on existential threats

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-820x547.jpeg" alt="" class="wp-image-456371" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People shopping on Oxford Street in London. Picture date: Thursday December 29, 2022. (Photo by James Manning/PA Images via Getty Images) James Manning &#8211; Pa Images | Pa Images | Getty Images</figcaption></figure>



LONDON — The U.K. economy slipped into a technical recession in the final quarter of last year, initial figures showed Thursday.



The Office for National Statistics said U.K. gross domestic product shrank by 0.3% in the final three months of the year, notching the second consecutive quarterly decline.



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



Economists polled by Reuters had produced a consensus forecast of -0.1% for the October to December period.



All three main sectors of the economy contracted in the fourth quarter, with the ONS noting declines of 0.2% in services, 1% in production and 1.3% in construction output.



Across the whole of 2023, the British GDP is estimated to have increased by just 0.1%, compared to 2022. For the month of December, output shrank by 0.1%.



U.K. Finance Minister Jeremy Hunt said that high inflation remains “the single biggest barrier to growth,” since it is forcing the Bank of England to keep interest rates firm and stymie economic growth.



“But there are signs the British economy is turning a corner; forecasters agree that growth will strengthen over the next few years, wages are rising faster than prices, mortgage rates are down and unemployment remains low,” he added.



Inflation has come down markedly in the U.K., but remains well above that of the country’s economic peers and the Bank of England’s 2% target, squeezing household finances. The headline consumer price index reading came in at 4% year-on-year in January.



<h3 class="wp-block-heading" id="h-shallow-and-short-lived-recession">‘Shallow and short-lived’ recession</h3>



Marcus Brookes, chief investment officer at Quilter Investors, said that the figures most likely indicate that the recession will be a “potentially shallow and short-lived one that may not reflect the true state of the economy,” which is set to experience a “muted recovery” throughout 2024.



“U.K. GDP contracting in both December and the fourth quarter of 2023 is mainly due to persistently high inflation, structural weaknesses in the labour market and low productivity growth, but also adverse weather conditions,” Brookes said via email.



“These factors affected the performance of the services and construction sectors, which are the main drivers of the U.K. economy.”



He noted that some of these hindrances are temporary and have already started to ease, with the inflation print of January undershooting forecasts for a reacceleration.



“Over the coming months, we expect inflation to fall, potentially easing the pressure on U.K. households, and supporting the recovery of the consumer-driven economy,” Brookes added.



“The key indicator to watch is inflation in the services sector, which accounts for the bulk of the UK’s economic activity and employment and reflects the strength of wage growth and consumer demand, which are crucial for the U.K.’s recovery.”



Neil Birrell, chief investment officer at Premier Miton Investors, said Thursday’s figure and the softer-than-expected inflation data “may give rise to some concern over economic strength in the coming year.”



“Most sectors of the economy were weak, but the optimists will point to the fact that there is plenty of scope to cut interest rates should the current trend in inflation and growth accelerate.”

107350975-1703235128856-gettyimages-1245866118-70395549

UK economy slipped into technical recession at the end of 2023

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



JOHANNESBURG, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Senegal&#8217;s diversified funding sources mean it could be better placed than some countries to navigate investor concerns sparked by political uncertainty, after President Macky Sall delayed a presidential election, the International Monetary Fund said.



A significant portion of Senegal&#8217;s funding is on concessional terms, and a planned reduction in issuing more expensive syndicated loans will minimise its dependence on volatile private debt, a spokesperson for the fund said in emailed comments.



The abrupt postponement of the Feb. 25 vote until December plunged the once-stable country into crisis, intensifying a backlash against what many see as a bid to extend Sall&#8217;s mandate and undermine one of the remaining democracies in coup-hit west Africa.



Three people were killed and around 270 reportedly detained during the protests that swept the capital Dakar and several other Senegalese cities late last week, raising fears of protracted unrest.



&#8220;Recent political developments in Senegal have created some uncertainty, potentially impacting investor confidence and economic activity,&#8221; the IMF spokesperson said.



&#8220;While potential investor caution could lead to higher interest rates and tighter financial conditions, &#8230; Senegal may be better positioned than some to navigate potential investor concerns due to its diversified and less volatile funding sources.&#8221;



In a December report, the IMF noted that Senegal had borrowed more in 2023 to cover its 2024 financing needs, &#8220;in order to avoid interest rate spikes as the 2024 presidential elections approach&#8221;.



That caution could pay dividends.



&#8220;Senegal does not plan further debt issuance in 2024, a move that would require parliamentary approval,&#8221; the IMF spokesperson said.



Nonetheless, Senegal needs to stay on track with planned economic reforms in order to maintain debt sustainability, the IMF said.



Senegal&#8217;s public debt-to-GDP ratio climbed to an estimated 79.6% last year but was forecast to fall to 72.5% this year, the IMF said in December.



Senegal secured a three-year loan of about $1.9 billion from the IMF in June last year.



(Reporting by Rachel Savage; Editing by Alexander Winning and Michael Perry)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Senegal ‘better positioned than some’ to navigate investor concern, says IMF

<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/YIOWDZP565M7BIVJMFIUBVBNVQ-820x547.jpg" alt="" class="wp-image-456343" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Judges at the International Court of Justice (ICJ) rule on emergency measures against Israel following accusations by South Africa that the Israeli military operation in Gaza is a state-led genocide, in The Hague, Netherlands, January 26, 2024. REUTERS/Piroschka van de Wouw/File Photo</figcaption></figure>



JERUSALEM, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s latest request to the World Court against a possible offensive&nbsp;by Israel&nbsp;in southern Gaza serves Hamas and is an attempt to stop Israel from defending itself, the Israeli Foreign Ministry said on Wednesday.



South Africa on Tuesday asked The International Court of Justice (ICJ) to consider whether Israel&#8217;s plan to extend its offensive in Gaza into the city of Rafah requires additional emergency measures to protect Palestinians&#8217; rights.



Israel has said it is planning to expand its ground assault into Rafah, where over a million Palestinians have sought refuge from the offensive that has laid waste to much of the Gaza Strip since Hamas militants attacked Israel on Oct. 7.



&#8220;South Africa continues to represent the interests of the Hamas terrorist organization and is trying to deny Israel the fundamental right to defend itself and its citizens,&#8221; said Foreign Ministry spokesperson Lior Haiat.



The ICJ last month ordered Israel to take all measures within its power to prevent its troops from committing genocide against Palestinians in Gaza, in a case brought by South Africa.



&#8220;Israel is committed to upholding international law, including facilitating the transfer of humanitarian aid and preventing harm to innocents, while the Hamas terrorists are hiding behind the civilian population in the Gaza Strip and are holding 134 people hostage,&#8221; Haiat said on X.



Israel has denied all allegations of genocide in connection with its war against Islamist armed group Hamas, which is sworn to Israel&#8217;s destruction, and has asked the court to reject the case outright, saying it was baseless.



The court has not yet ruled on the core of the case brought by South Africa &#8211; whether genocide has occurred in Gaza. But it recognised the right of Palestinians in Gaza to be protected from acts of genocide.



(Reporting by Maayan Lubell; editing by Diane Craft)

FILE PHOTO: World Court rules on Gaza emergency measures in Israel genocide case, in The Hague

Israel says South Africa serving Hamas in latest bid to World Court

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-820x547.jpg" alt="" class="wp-image-428233" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People buy and sell vegetables at Mile 12 International Market in Lagos, Nigeria May 13, 2022. REUTERS/Temilade Adelaja</figcaption></figure>



ABUJA, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is planning to set up a national commodity board to regulate the price of grains and other items, as rising food costs stoke double-digit inflation in a country where smallholder farmers dominate production.



Nigeria&#8217;s annual inflation hit a nearly three-decade high of 28.92% in December as food prices surged, adding to a worsening cost of living crisis. Inflation data for January is due on Thursday.



Vice President Kashim Shettima said on Tuesday that the National Commodity Board would maintain a strategic food reserve that could be used to reduce volatility and stabilise prices and tackle escalating food inflation in Africa&#8217;s most populous nation.



Food inflation, which accounts for the bulk of Nigeria&#8217;s inflation basket, rose to 33.93% in December from 32.84% a month earlier, with higher prices across a broad range of items including bread, fish, meat, fruit and eggs.



Shettima said the government will revitalise food supply in the short-term through measures such as the distribution of fertiliser and grain to farmers and households, to counter the effect of removing a costly but popular fuel subsidy.



President Bola Tinubu last May embarked on Nigeria&#8217;s boldest reforms in decades by scrapping the fuel subsidy and devaluing the currency to try to revive economic growth.



But growth is yet to pick up while inflation has worsened.



Widespread kidnapping and banditry in farming areas has also pushed up food prices.



Shettima said the government will engage its &#8220;security architecture&#8221; to protect both farms and farmers, so they can return and work without fear of attack.



He added that concessionary funds will be granted to farmers while the government will drive irrigation to ensure year-round food production.



Nigeria scrapped marketing boards that guaranteed farmers minimum prices in the 1980s as part of reforms to end subsidies, promote exports and stabilise markets after prices rose on informal channels.



(Reporting by Felix Onuah; Writing by Chijioke Ohuocha; Editing by Kirsten Donovan)

People buy and sell vegetables at Mile 12 International Market in Lagos

Nigeria plans commodity board to regulate food prices as inflation soars

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="613" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-820x613.jpg" alt="" class="wp-image-456099" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-820x613.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-300x224.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-768x574.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-1536x1148.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People queue to withdraw money from a local bank in central Harare, Zimbabwe, August 24, 2023. REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) on Wednesday encouraged Zimbabwe to speed up currency reforms at the end of a staff visit, saying authorities should move towards a market-driven exchange rate and remove distortions currently in place.



The visit discussed Zimbabwe&#8217;s request for an IMF staff-monitored programme, part of the southern African country&#8217;s efforts to re-engage with the international financial community by demonstrating a track record of sound economic policies.



Zimbabwe has not been able to secure financing from the likes of the IMF for more than two decades due to arrears in servicing its debt to lenders including the World Bank, the African Development Bank and European Investment Bank.



&#8220;The IMF is currently precluded from providing financial support to Zimbabwe due to its unsustainable debt situation &#8230; and official external arrears,&#8221; the IMF said in a statement.



&#8220;An IMF financial arrangement would require a clear path to comprehensive restructuring of Zimbabwe&#8217;s external debt, including the clearance of arrears and a reform plan that is consistent with durably restoring macroeconomic stability.&#8221;



Zimbabwe&#8217;s central bank and finance ministry have said they are working on measures to stabilise the Zimbabwean dollar, which has fallen about 40% against the U.S. dollar since the start of the year.



One option being considered is linking the exchange rate to assets such as gold.



The IMF said policymakers should eliminate a restriction on the 10% allowable trading margin for pricing domestic transactions and narrow the central bank&#8217;s legal mandate to core functions.



Addressing a joint press conference with the IMF, Zimbabwe&#8217;s Finance Minister Mthuli Ncube said officials agreed the local currency needed to be more reflective of market conditions.



The Zimbabwean dollar was relaunched in 2019 after a decade of dollarisation, but it rapidly lost value and the use of foreign currencies in domestic transactions was reauthorised soon after.



Central bank Governor John Mangudya said the focus of an upcoming monetary policy statement would be stabilising the exchange rate.



(Editing by Alexander Winning, Kirsten Donovan)

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featured

Stocks advance on China boost, South Africa’s rand flat ahead of budget speech

Africa’s largest economy is battling a currency crisis and a crumbling economy

South African labour market recovery stalls months before election

Nigeria’s Q3 jobless rate rises to 5% as impact of reforms takes effect

Gold at $3,000 and oil at $100 by 2025? Citi analysts don’t rule it out

Niger misses debt payment, default up to almost $520 million

Amplats plans to cut thousands of jobs cuts after profit plunge

Africa’s economic growth fell to 3.2% in 2023, says African Devt Bank

Kenya to buy back over $1.4 bln of bond that had unnerved investors

Nigeria mulls state policing to combat growing insecurity

Ghana’s new finance minister pledges to keep IMF programme on track

Open letter calling on world leaders to show long-view leadership on existential threats

UK economy slipped into technical recession at the end of 2023

Senegal ‘better positioned than some’ to navigate investor concern, says IMF

Israel says South Africa serving Hamas in latest bid to World Court

Nigeria plans commodity board to regulate food prices as inflation soars

IMF says Zimbabwe should speed up currency reforms

News Tips

Advertise With Us

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