<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="484" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E.jpg" alt="" class="wp-image-422637" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Ghana&#8217;s Finance Minister Ken Ofori-Atta speaks during a news conference in Accra, Ghana December 13, 2022. REUTERS/Cooper Inveen</figcaption></figure>



ACCRA, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s President Nana Akufo-Addo has replaced the finance minister in a cabinet reshuffle amid criticism of his handling of the country&#8217;s economic&nbsp;problems.



The move, announced on Wednesday by the president&#8217;s office, comes ahead of an election in December.



Outgoing finance minister Ken Ofori-Atta has been overseeing the government&#8217;s debt restructuring efforts as the West African country tries to emerge from its worst economic crisis in a generation.



Akufo-Addo&#8217;s office said Ofori-Atta would be replaced by Mohammed Amin Adam, currently the minister of state at the finance ministry.



Amin Adam previously served as the deputy energy minister responsible for the petroleum sector.



Akufo-Addo chose Ofori-Atta as his finance minister when he became head of state in 2017, pledging to create jobs, fight poverty and boost economic growth by cutting taxes and red tape.



Ofori-Atta has been heavily criticised by protesters and lawmakers from the opposition and his own party for his handling of&nbsp;Ghana&#8217;s&nbsp;economic woes.



(Reporting by Christian Akorlie and Maxwell Akalaare Adombila; Writing by Anait Miridzhanian and Nellie Peyton; Editing by Alexander Winning and Angus MacSwan)

Ghana’s Finance Minister Ken Ofori-Atta speaks during a news conference in Accra

Ghana president replaces finance minister in reshuffle

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-820x547.jpeg" alt="" class="wp-image-456040" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pro-EU demonstrators protest outside Parliament against Brexit on the fourth anniversary of Britain’s official departure from the European Union in London, United Kingdom on January 31, 2024. Future Publishing | Getty Images</figcaption></figure>



LONDON — Post-Brexit Britain has “significantly underperformed” other advanced economies since the 2016 EU referendum, according to new analysis from Goldman Sachs, which aims to quantify the economic cost of the Leave vote.



In a note last week entitled “The Structural and Cyclical Costs of Brexit,” the Wall Street bank estimates that the U.K. economy grew 5% less over the past eight years than other comparable countries.



The true hit to the British economy could be anywhere from 4% to 8% of real gross domestic product (GDP), however, the bank said, acknowledging the difficulties of extracting the impact of Brexit from other simultaneous economic events including the Covid-19 pandemic and the 2022 energy crisis. Real GDP is a growth metric that has been adjusted for inflation.



Goldman Sachs attributed the economic shortfall to three key factors: reduced trade; weaker business investment; and labor shortages as a result of lower immigration from the EU.



The U.K. voted 52% to 48% to leave the EU on June 23, 2016, but officially exited the union on Jan. 31, 2020.



Over that period until today, U.K. goods trade has underperformed other advanced economies by around 15% since the Leave vote, according to the bank’s estimates, while business investment has fallen “notably short” of pre-referendum levels.



Meantime, immigration from the EU has fallen — a key pledge of the Vote Leave campaign — only to be replaced by a less economically active cohort of non-EU migrants, primarily students, the research said.



“Taken together, the evidence points to a significant long-run output cost of Brexit,” the report’s authors said.



The bank noted the reduction in trade was in line with expectations and the underperformance in investment was “more pronounced” that anticipated. However, it said the shifts in immigration patterns posed the most important cyclical repercussions for the U.K. economy — and inflation in particular.



“The post-Brexit change in immigration flows has reduced the elasticity of labor supply in the U.K., contributing to the post-pandemic surge in inflation and pointing to more cyclical labor market and inflation pressures going forward,” the report said.



U.K. real GDP per capita has barely risen above pre-Covid levels and currently stands 4% above the mid-2016 level, it said. That compares to 8% for the euro zone area and 15% for the U.S.



Meantime, the U.K. has recorded higher inflation over the period, with U.K. consumer prices rising 31% since mid-2016 compared with 27% in the U.S. and 24% in the euro zone, it added.



While the report noted that new non-EU trade agreements could potentially mitigate the costs of Brexit, estimates suggest that the benefit is likely to be small.



The British government estimates that its free trade agreement with Australia will boost U.K. GDP by 0.08% per year, while the economic impact of a new trade deal with Switzerland is unclear.



Meantime, the timelines for prospective new trade deals with major partners such as the U.S. and India have not yet been announced.

107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484

Brexit Britain has ‘significantly underperformed’ other advanced economies, Goldman Sachs says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-820x461.jpeg" alt="" class="wp-image-442452" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker tying copper wire rods before loading them onto a truck in Huai’an, Jiangsu Province of China.
Vcg | Visual China Group | Getty Images</figcaption></figure>



Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Prices of most non-ferrous metals eased on Wednesday, weighed down by a stronger dollar after hotter-than-expected U.S. inflation data dampened expectations for early interest rate cuts from the Federal Reserve.



Three-month copper on the London Metal Exchange&nbsp;CMCU3&nbsp;was down 0.8% at $8,195.50 a metric ton, as of 0531 GMT.



The dollar traded near three-month highs against major peers as traders pushed back bets for a first Fed rate cut following surprisingly hot U.S. inflation figures overnight.&nbsp;USD/



A stronger U.S. currency makes dollar-priced metals more expensive for holders of other currencies.



&#8220;Base metals prices are trading lower due to strong U.S. CPI numbers which weighed on expectations of sooner and deeper rate cuts,&#8221; ANZ analyst Soni Kumari said.



Federal funds futures currently price in no rate cut in March and a lower than 50% chance of easing in May, according to LSEG&#8217;s rate probability app.



Data on Tuesday showed U.S. consumer prices increased more than expected in January amid rises in the costs of shelter and healthcare.



Copper, widely used in power and construction, is down more than 4% this month on concerns about demand from top consumer China and its property sector in particular, though activity is muted this week as China celebrates the Lunar New Year.



&#8220;We remain positive on copper due to renewed supply challenges. Tight concentrate market, created by recent mine closures, have seen smelter processing fees falling sharply,&#8221; ANZ&#8217;s Kumari said.



&#8220;Following years of relentless growth, Chinese smelters are now being forced to postpone new plants, bring forward maintenance and even cut production outright amid heavy financial losses. This could impact refined copper production.&#8221;



In other metals, LME aluminium&nbsp;CMAL3&nbsp;slipped 0.6% to $2,212 a ton, nickel&nbsp;CMNI3&nbsp;was steady at $16,270, zinc&nbsp;CMZN3&nbsp;fell 0.7% to $2,299.50, while lead&nbsp;CMPB3&nbsp;rose 0.4% to $2,005. Tin&nbsp;CMSN3&nbsp;dropped 1.4% to $27,200.



For the top stories in metals and other news, click



TOP/MTL&nbsp;or&nbsp;MET/L



(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)

107352936-1704115855740-gettyimages-1460414638-vcg111420025727

Most base metals fall on stronger dollar after US inflation data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-820x524.jpg" alt="" class="wp-image-455807" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-1536x981.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A women uses an iPhone mobile device as she passes a lighted Apple logo at the Apple store at Grand Central Terminal in New York City, U.S., April 14, 2023. REUTERS/Mike Segar</figcaption></figure>



BRUSSELS, Feb 13 (Reuters)&nbsp;&#8211;&nbsp;Apple&nbsp;AAPL.O&nbsp;has won an exemption for its iMessage and Microsoft&nbsp;MSFT.O&nbsp;for its Bing search engine from new EU tech rules after the companies convinced antitrust regulators their services are not gateways for businesses to reach end-users.



The European Union&#8217;s Digital Markets Act&nbsp;(DMA), which takes effect in three weeks&#8217; time, requires Microsoft, Apple, Alphabet&#8217;s&nbsp;GOOGL.O&nbsp;Google, Amazon&nbsp;AMZN.O, Meta Platforms&nbsp;META.O&nbsp;and ByteDance to allow third-party apps or app stores on their platforms and make it easier for people to switch to rivals.



The companies are also prohibited from favouring their services over rivals.



Following a five-month investigation, the European Commission found iMessage, Bing, Edge and Microsoft Advertising &#8220;did not qualify as gatekeeper services,&#8221; the EU executive said in a statement.



The Commission said Apple&#8217;s App Store, iOS operating system and Safari browser will continue to be classified as gatekeepers as will Microsoft&#8217;s Linkedin social network and Windows operating system.



It made &#8220;a thorough assessment of all arguments, taking into account input by relevant stakeholders&#8221;, the Commission said without providing details of the companies&#8217; arguments.



Apple had said iMessage usage is negligible, even on its devices, compared to rival messaging services in the EU and that iMessage is not an important channel for businesses to reach users in the bloc.



&#8220;Consumers today have access to a wide variety of messaging apps, and often use many at once, which reflects how easy it is to switch between them,&#8221; an Apple spokesperson said.



Microsoft said that Bing, Edge and Microsoft Advertising operate as challengers in the market and are of relatively small scale, meaning they are not important gateways for business users.



&#8220;We will continue to engage with the Commission and industry at large to ensure Microsoft&#8217;s other designated platforms comply fully with the DMA,&#8221; a Microsoft spokesperson said.



Lazar Radic, an antitrust expert at the International Center for Law and Economics, said: &#8220;It is a good sign that the Commission has considered market realities, instead of just slapping the &#8216;gatekeeper&#8217; label on iMessage because it fulfills certain quantitative thresholds.



&#8220;This suggests the Commission is capable of avoiding the temptation to over-regulate.&#8221;



However, the&nbsp;Coalition for Open Digital Ecosystems (CODE), whose members include Google, Meta Platforms&nbsp;META.O&nbsp;and Qualcomm&nbsp;QCOM.O,&nbsp;disagreed with the&nbsp;Commission&#8217;s decision&nbsp;to exempt&nbsp;services such as iMessage.



&#8220;Today’s surprising decision undermines the objectives of the DMA, as well as its potential to improve choice and contestability for all Europeans,&#8221; it said in a statement.



(Reporting by Bart Meijer and Foo Yun Chee; Editing by Barbara Lewis and Keith Weir)

women uses her iPhone mobile device as she passes a lighted Apple logo at the Apple store in New York

Apple, Microsoft win exemptions for iMessage, Bing from EU rules

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-820x461.jpeg" alt="" class="wp-image-455790" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Inflation rose more than expected in January as stubbornly high shelter prices weighed on consumers, the Labor Department reported Tuesday.



The consumer price index, a broad-based measure of the prices shoppers face for goods and services across the economy, increased 0.3% for the month, the Bureau of Labor Statistics reported. On a 12-month basis, that came out to 3.1%, down from 3.4% in December.



Economists surveyed by Dow Jones had been looking for a monthly increase of 0.2% and an annual gain of 2.9%.



Excluding volatile food and energy prices, so-called core CPI accelerated 0.4% in January and was up 3.9% from a year ago, unchanged from December. The forecast had been for 0.3% and 3.7% respectively.



Shelter prices, which comprise about one-third of the CPI weighting, accounted for much of the increase. The index for that category rose 0.6% on the month, contributing more than two-thirds of the headline increase, the BLS said. On a 12-month basis, shelter increased 6%.



Food prices moved higher as well, up 0.4% on the month. Energy helped offset some of the increase, down 0.9% due largely to a 3.3% slide in gasoline prices.



Stock market futures slid sharply following the release. Futures tied to the Dow Jones Industrial Average were off more than 250 points and Treasury yields surged higher.



Even with the rise in prices, inflation-adjusted earnings increased 0.3% for the month. However, adjusted for the decline in the average workweek, real weekly earnings fell 0.3%. Real average hourly earnings rose 1.4% from a year ago.



“Inflation is generally moving in the right direction,” said Bright MLS Chief Economist Lisa Sturtevant. “But it’s important to remember that a lower inflation rate does not mean that prices of most things are falling — rather, it simply means that prices are rising more slowly. Consumers are still feeling the pinch of higher prices for the things they buy most often.”



The release comes as Federal Reserve officials look to set the proper balance for monetary policy in 2024. Though financial markets have been looking for aggressive interest rate cuts, policymakers have been more cautious in their public statements, focusing on the need to let the data be their guide rather than preset expectations.



Fed officials expect inflation to recede back to their 2% annual target in large part because they think shelter prices will decelerate through the year. January’s increase could be problematic for a central bank looking to take its foot off the brake for monetary policy at its tightest in more than two decades.



“The much-anticipated CPI report is a disappointment for those who expected inflation to edge lower allowing the Fed to begin easing rates sooner rather than later,” said Quincy Krosby, chief global strategist at LPL Financial. “Across the board numbers were hotter than expected making certain that the Fed will need more data before initiating a rate cutting cycle.”



Generally, the inflation data had been encouraging, even if annual rates remain well above the Fed’s 2% target. Moreover, core inflation, which officials believe is a better guide of long-run trends, has been even more stubborn as housing costs have held higher than anticipated.



In recent days, policymakers including Chair Jerome Powell have said the broader strength of the U.S. economy gives the Fed more time to process data is it doesn’t have to worry about high rates crushing growth.



Market pricing prior to the CPI release indicated a tilt towards the first rate cut coming in May, with a likely total of five quarter-percentage point moves lower before the end of 2024, according to CME Group data. However, several Fed officials have said they think two or three cuts are more likely.



Outside of the jump in shelter costs, the rest of the inflation picture was a mixed bag.



Used vehicle prices declined 3.4%, apparel costs fell 0.7% and medical commodities declined 0.6%. Electricity costs rose 1.2% and airline fares increased 1.4%. At the grocery store, ham prices fell 3.1% and eggs jumped 3.4%.



This is breaking news. Please check back here for updates.

107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ

Prices rose more than expected in January as US inflation won’t go away

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-820x548.jpg" alt="" class="wp-image-455760" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: President of Senegal Macky Sall delivers a national statement at the World Climate Action Summit during the United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates, December 1, 2023. REUTERS/Amr Alfiky</figcaption></figure>



DAKAR, Feb 13 (Reuters) &#8211; Senegal&#8217;s communications ministry told mobile operators to suspend internet access on Tuesday, ahead of a planned silent march by activist groups, which was banned by authorities, over the abrupt postponement of a presidential election.



The announcement just weeks ahead of the planned Feb. 25 vote that it would be postponed, triggered violent clashes last week that resulted in the death of three young people and multiple arrests.



Parliament has voted to hold the election on Dec. 15.



The delay spurred opposition members&#8217; concerns as it extended President Macky Sall&#8217;s mandate in an unprecedented break with Senegal&#8217;s democratic tradition.



It was unclear whether the march would take place after authorities on Monday banned it, citing logistical concerns.



The civil society and religious groups that called the demonstration will hold a press conference later on Tuesday to announce next steps, spokesman Amadou Samb told Reuters.



The vote&#8217;s postponement dismayed many in Senegal, one of West Africa&#8217;s more stable democracies, in a region where military takeovers and constitutional manoeuvring have forced democracy into retreat in many countries in recent years.



In a statement, the ministry blamed hateful online messages for the deaths and material damage incurred during the recent demonstrations.



In the capital Dakar, police in riot gear on Friday fired tear gas, stun grenades and what appeared to be rubber bullets at protesters who were burning tyres and throwing stones, a Reuters reporter said.



Amnesty International and the U.N. human rights office called on the Senegalese government to investigate the killings and police brutality against protesters.



At least 266 people have been arrested across the country, including journalists, spokesperson for the U.N. High Commissioner for Human Rights Liz Throssell said.



West Africa&#8217;s regional bloc ECOWAS on Monday sent a parliamentary diplomatic mission to Senegal to discuss the political situation in the country.



(Reporting by Bate Felix, Alessandra Prentice, Emma Farge and Portia Crowe; Writing by Anait Miridzhanian; Editing by Bernadette Baum)

FILE PHOTO: Senegal President Macky Sall

Ahead of planned march over vote delay, Senegal suspends internet access

<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/THZQRJPZIFI3JPNGWNL6YVEHR4-820x547.jpg" alt="" class="wp-image-455675" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Burkina Faso&#8217;s interim President Ibrahim Traore attends a meeting with Russia&#8217;s President Vladimir Putin following the Russia-Africa summit in Saint Petersburg, Russia, July 29, 2023. Alexander Ryumin/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG/NIAMEY, Feb 13 (Reuters)&nbsp;&#8211;&nbsp;Days after Burkina Faso, Mali and Niger announced last month they were quitting the West Africa political union ECOWAS, Burkina Faso&#8217;s military ruler Ibrahim Traore was already naming his next target: the region&#8217;s CFA franc currency.



&#8220;It&#8217;s not just the currency. Anything that maintains us in slavery, we&#8217;ll break those bonds,&#8221; the 35-year-old army captain turned coup leader said in an interview, posted on YouTube.



The three countries jointly announced on Jan. 28 they were pulling out of the Economic Community of West African States (ECOWAS) after it pressured them to restore constitutional order following a string of coups.



Having already kicked out French soldiers and rolled back a U.N. mission in Mali, these states have consistently shown they value sovereignty over expediency.



Their attitude towards the euro-pegged CFA franc appears no different, although economists and experts say dumping the CFA franc would be riskier and significantly more complicated than withdrawing from ECOWAS, a move seen as a bold, if potentially ill-advised, act of defiance.



Last November, the finance ministers of Burkina Faso, Mali and Niger said they would weigh the option of setting up a monetary union and top officials from all three countries have, to varying degrees, voiced support for abandoning the currency.



The head of the Niger junta, Abdourahamane Tiani, said in an interview on state television on Sunday that abandoning the CFA franc would be a sign of sovereignty and a necessary step in moving away from French &#8220;colonisation&#8221;.



To do so, however, would mean much more than simply printing new banknotes.



A newly created central bank would need to manage a delicate transition away from the CFA franc, formulate monetary policy, and decide what to do about more than $4.6 billion in outstanding CFA-denominated regional bonds.



<h2 class="wp-block-heading" id="h-the-french-robbed-us">&#8216;THE FRENCH ROBBED US&#8217;</h2>



The CFA franc currencies &#8211; one West African and another for Central Africa &#8211; sit at the heart of an emotional debate over sovereignty and development in French-speaking Africa.



Proponents hail the CFA franc&#8217;s peg to the euro as a guarantee of macroeconomic stability in one of the world&#8217;s most volatile regions.



Critics denounce it as a brake on growth and an outdated vestige of French colonial rule: until a 2019 reform, countries were required to hold a portion of their foreign reserves with the French Treasury.



But never since its inception in 1945 has there been the prospect of such a mass exodus.



&#8220;The French have robbed us with the CFA franc. African countries must definitively break with this currency,&#8221; said Omar Issoufou, a 25-year-old Nigerien who is studying electrical engineering in the capital Niamey.



The military takeovers that have swept across the arid Sahel region were driven by anger over Islamist violence, which Mali&#8217;s U.N. mission and a sprawling French anti-militant operation had failed to snuff out.



Punishment for the putsches &#8211; the imposition of economic sanctions by ECOWAS, including freezing of some of Mali and Niger&#8217;s assets held by the regional central bank &#8211; fuelled tensions between the new regimes and the West African Economic and Monetary Union, known by its French acronym UEMOA.



&#8220;The moment UEMOA became a weapon of war &#8230; I can understand why these three countries moved to clearly free themselves from their engagements towards the Union,&#8221; Hamma Hamadou, a former head of Niger&#8217;s tax authority, told Reuters.



Beyond ideological issues of sovereignty and practical concerns related to sanctions, some view moving away from the CFA franc as an opportunity.



&#8220;The CFA franc has been very detrimental to these countries over the long run,&#8221; said Ndongo Samba Sylla of International Development Economics Associates, a network of economists focused on the Global South. &#8220;They have lower inflation and extra exchange rate stability, but they&#8217;ve suffered from an over-valued currency.&#8221;



All three countries have largely agricultural economies. But their inability to set monetary policy has left their exports uncompetitive, he said, and hindered industrial development.



The peg to the euro, meanwhile, makes little sense when the bulk of West Africa&#8217;s external trade is done in dollars, he added.



<h2 class="wp-block-heading" id="h-great-depression">&#8216;GREAT DEPRESSION&#8217;</h2>



Withdrawing from ECOWAS is already looking easier said than done. Disentangling their economies and finances from UEMOA will be even more delicate.



UEMOA&#8217;s eight members deposit their foreign exchange reserves with the Dakar-based regional central bank. Those reserves are mutualised as are liabilities, making a determination of how much each country would be able to walk away with a difficult calculation.



Then there&#8217;s the question of CFA-denominated debt. Burkina Faso has over 1.2 trillion CFA francs ($1.99 billion) in outstanding bonds. Mali has slightly over 1 trillion CFA francs, while it&#8217;s 498 billion CFA francs for Niger.



&#8220;We will enter into a zone of turbulence if these countries pull out,&#8221; said one financial expert involved in regional debt issuances, who asked not to be named due to market sensitivity.



There was no clarity, he said, on where the bonds would be listed, whether they would remain in CFA francs or even if the new currency would be convertible.



&#8220;There would be a lot of problems for the holders of these sovereign bonds,&#8221; he said.



The turmoil would likely leave the three states cut off from future financing from regional and international capital markets, experts said. Burkina Faso already called off a bond auction in the wake of its ECOWAS withdrawal announcement due to a lack of interest.



Uncertainty could provoke capital flight and an immediate depreciation of a new currency. Imports could become prohibitively expensive, fuelling run-away inflation.



&#8220;I think you&#8217;re taking 10% to 20% off your GDP,&#8221; said Charlie Robertson, head of macro strategy at London-based FIM Partners. &#8220;Leaving the single currency is bringing on the Great Depression,&#8221; he said, adding it would be the worst policy mistake the countries could make.



In light of these risks, the juntas are approaching the currency question more carefully than their ECOWAS withdrawal.



Two government officials from the countries told Reuters that the committee charged with studying a new monetary union, while still planned, had not yet met.



Prime Minister Choguel Maiga of Mali &#8211; the only one of the three to have ever issued its own currency &#8211; has urged patience.



When Mali exited UEMOA in 1962 in the wake of independence, its new currency was at parity with the CFA franc, but upon its return to the union in 1984 was worth only half as much.



To ensure lessons have been learned, Maiga says the committee needs time to assess all the implications before the country draws up plans for a new currency with its two neighbours.



&#8220;This is what I say to the Malians,&#8221; Maiga told business leaders last month. &#8220;Sure, you have this passion. You want it. But this is strategic.&#8221;



($1 = 604.0000 CFA francs)



(Reporting by Joe Bavier and Boureima Balima; Additional reporting by Loucoumane Coulibaly in Abidjan, Moussa Aksar in Niamey, Giulia Paravicini in Nairobi and Leigh Thomas in Paris; Editing by Susan Fenton)

FILE PHOTO: Russia’s President Putin and Burkina Faso’s interim President Traore meet in St Petersburg

For West African juntas, CFA franc pits sovereignty against expediency

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="511" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-820x511.jpg" alt="" class="wp-image-455659" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-820x511.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-768x479.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-1536x958.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Displaced Congolese people are reflected on a puddle, at the Muchacha primary school, where they live after recently fleeing from their Shasha village following clashes between M23 rebels and the Armed Forces of the Democratic Republic of the Congo (FARDC) in Sake, the Democratic Republic of Congo February 6, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



JOHANNESBURG, Feb 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa will send 2,900 troops as part of its contribution to the Southern African Development Community (SADC) force deployed to tackle armed groups in eastern Democratic Republic of Congo, the president&#8217;s office said in a statement on Monday.



The one-year deployment will cover the period between Dec. 15. 2023 and Dec. 15, 2024, and will cost around 2 billion rand ($105.75 million), the statement said.



The 16-member state SADC approved the eastern Congo mission in May last year to help Congo, the world&#8217;s top supplier of cobalt and Africa&#8217;s top copper producer, address instability and deteriorating security in its restive eastern region.



Decades of conflicts in eastern Congo between myriad rival armed groups over land and resources has killed hundreds of thousands of people and displaced more than 7 million.



The SADC force has an offensive mandate to support Congo&#8217;s army fight armed groups. It will include troops from Malawi, South Africa and Tanzania.



The deployment comes as Congo battles Tutsi-led M23 rebels whose attacks and advances in recent days, is threatening the North Kivu provincial capital, Goma.



($1 = 18.9133 rand)



(Writing by Bate Felix; Editing by Marguerita Choy)

Thousands more flee rebel advance in eastern Congo

South Africa to deploy 2,900 troops to fight armed groups in eastern Congo

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="584" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-820x584.jpg" alt="" class="wp-image-455387" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-820x584.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-300x214.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-768x547.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-1536x1094.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Zimbabwe&#8217;s Finance Minister Mthuli Ncube stands with a briefcase at the Parliament Building in Mt Hampden on the day he presents the 2024 National Budget, Harare, Zimbabwe November 30, 2023.REUTERS/Philimon Bulawayo/FILE PHOTO</figcaption></figure>



HARARE, Feb 12 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&nbsp;is working on new&nbsp;measures to stabilise its local currency including linking the exchange rate to hard assets such as gold and creating a currency board, Finance Minister Mthuli Ncube said on Monday.



The Zimbabwean dollar has fallen about 40% since the start of the year,&nbsp;hurt by increased foreign-currency demand from civil servants being paid December bonuses and weaker commodity prices denting inflows.



Last week President Emmerson Mnangagwa said authorities were looking to introduce a &#8220;structured currency&#8221;, without explaining how that would work, and the central bank governor said that work was ongoing.



&#8220;The idea going forward is to make sure that we manage the growth of liquidity which has a high correlation to money supply growth and inflation. The way to do that is to link the exchange rate to some hard asset such as gold,&#8221; said Ncube.



&#8220;To do that you have to have some sort of currency board type system in place where the growth of the domestic liquidity is constrained by the value of the asset that is backing the currency,&#8221; he said in a press briefing.



More announcements will come in due course, he said, adding that he believed the new measures would offer &#8220;a lasting solution to the currency volatility&#8221;.



The Southern African country is still scarred by memories of hyperinflation under longtime leader Robert Mugabe.



The government relaunched a local currency in 2019 after a decade of dollarisation, but it rapidly lost value and authorities reauthorised the use of foreign currencies in domestic transactions soon after.



(Reporting by Nyasha Chingono; Writing by Nellie Peyton, Editing by Gareth Jones and Ed Osmond)

Zimbabwe’s Finance Minister Mthuli Ncube stands with a briefcase at the Parliament Building in Mt Hampden on the day he presents the 2024 National Budget, Harare

Zimbabwe to link exchange rate to hard assets, create currency board

<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>



Feb 12 (Reuters)&nbsp;&#8211;&nbsp;A gauge of emerging market stocks was marginally lower in light trading on Monday, with Indian shares amongst leading fallers, while Israel&#8217;s shekel dipped after ratings agency Moody&#8217;s downgraded the country&#8217;s credit rating.



MSCI&#8217;s index for EM stocks&nbsp;.MSCIEF&nbsp;edged 0.1% lower by 0918 GMT, on track for its third straight session decline, while currencies&nbsp;.MIEM00000CUS&nbsp;were largely flat on the day.



Israel&#8217;s shekel ILS= fell 0.4% against the dollar after Moody&#8217;s on Friday downgraded the country&#8217;s credit rating, citing material political and fiscal risks from its war with the Palestinian militant group Hamas.



The rating was cut to &#8220;A2&#8221;, which is five notches above investment grade, while its credit outlook was kept at negative, meaning a further downgrade is possible.



&#8220;Against the background of the security situation, a notch decrease in creditworthiness appears also rather unspectacular and would only follow market pricing rather than cause it,&#8221; Michel Nies, an economist at Citi, wrote in a note.



&#8220;However, the negative outlook and the statement for the latter might be more concerning in the sense that an end to hostilities would not necessarily lead to a reversal of the downgrade.&#8221;



Activity was mostly muted due to holidays in major hubs including mainland China, Singapore, South Korea, Taiwan and Malaysia.



In Europe, official data showed Turkey&#8217;s unemployment rate fell 0.1 percentage point month-on-month to 8.8% in December, edging back towards the lowest level in a decade which it hit in October.



The lira&nbsp;TRY=&nbsp;was mostly stable against the dollar, while equities&nbsp;.XU100&nbsp;gained 0.9%, lifted by rising materials shares.



Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;eased 0.3% against the Euro after rising as much as 0.6% in the previous session, while South Africa&#8217;s rand&nbsp;ZAR=&nbsp;edged 0.1% higher, on track for its first daily advance in four sessions.



In the Gulf, Saudi Arabia&#8217;s benchmark stock index .TASI gained 0.2% after Israel said it had &#8220;concluded&#8221; a series of strikes on southern Gaza.



The International Monetary Fund said on Sunday Middle East economies were lagging below growth projections due to oil production cuts and the Israel-Hamas conflict, even as the global economic outlook remained resilient.



Meanwhile, stocks in Pakistan .KSE fell as much as 2.8% after the country&#8217;s national elections ended with no party winning a majority in parliament.



Equities in India .NSEI were down 0.6%, dragged lower by declining energy shares. .BO



(Reporting by Shashwat Chauhan in Bengaluru; Editing by Ros Russell)

istockphoto-1076949610-612×612-1

Stocks edge lower in holiday affected trade; Israel’s shekel down after rating cut

<figure class="wp-block-image size-large"><img decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/05/Herbert-Wigwe-Group-CEO-Access-Bank-Plc1-781x800.jpg" alt="" class="wp-image-417434"/></figure>



Feb 10 (Reuters)&nbsp;&#8211;&nbsp;Six people, including the group chief executive of one of Nigeria&#8217;s largest banks, were killed in a helicopter crash in Southern California on Friday, authorities and the banking group said.



Six people were on board the helicopter when it crashed around 10 p.m. Friday (0600 GMT Saturday) near Nipton, California, the U.S. Federal Aviation Administration said in a statement.



Access Holdings said its CEO&nbsp;Herbert&nbsp;Wigwe, his wife and son were among those who died in the crash.



&#8220;We extend our deep and sincere sympathies to his family and loved ones,&#8221; Access Holdings Chairman Abubakar Jimoh said in a statement on Sunday, adding that the company will soon appoint an acting CEO.



Local media reported that the Nigerian Exchange Group&#8217;s former Chairman Abimbola Ogunbanjo also died in the crash.



The San Bernardino County Sheriff’s Department said the scene of the crash was determined to be east of the 15-Freeway, near Halloran Springs Road, adding that no survivors had been located as of Saturday.



The FAA identified the helicopter as a Eurocopter EC 130 and said it would investigate along with the National Transportation Safety Board.



The helicopter was headed to Las Vegas when it crashed near a border city between Nevada and California, according to multiple reports.



(Reporting by Surbhi Misra, Jyoti Narayan in Bengaluru and MacDonald Dzirutwe in Lagos; Editing by Andrea Ricci and Sharon Singleton)

Herbert-Wigwe-Group-CEO-Access-Bank-Plc1

Nigeria’s Access Bank Group CEO among six dead in California helicopter crash

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/VWGGGHRVGFNNBKICEKKB2G2CXI.jpg" alt="" class="wp-image-419501" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/VWGGGHRVGFNNBKICEKKB2G2CXI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/VWGGGHRVGFNNBKICEKKB2G2CXI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/VWGGGHRVGFNNBKICEKKB2G2CXI-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A bitcoin representation is seen in a file photo, in Paris, France, June 23, 2017. REUTERS/Benoit Tessier/File Photo</figcaption></figure>



<a href="https://www.cnbc.com/quotes/BTC.CM=/">Bitcoin</a>&nbsp;marched higher to end the week, with its price breaching the $47,000 level for the first time in almost two years.&nbsp;



On Friday the flagship cryptocurrency rose more than 4% to $47,307.00, according to Coin Metrics, a level not seen since March 2022.&nbsp;<a href="https://www.cnbc.com/quotes/ETH.CM=/">Ether</a>&nbsp;advanced 3% to $2,511.75.&nbsp;



Bitcoin trading volume and sentiment have been suppressed over the past two weeks as investors worried about big outflows from the&nbsp;<a href="https://www.cnbc.com/quotes/">Grayscale Bitcoin ETF</a>&nbsp;and a deeper pullback in its price ahead of an expected rip higher this year. Nevertheless, bitcoin’s now up 10% for the week, while ether is on track for a 9% gain.



Positive sentiment appears to be returning now as the GBTC outflows have slowed. Additionally, momentum from the S&amp;P 500 briefly touching 5,000 Thursday for the first time ever may be spilling over to crypto.



“The recent price appreciation of bitcoin could be attributed to recent inflows into the spot ETFs, the prospect of the halving around the corner, which tends to generate optimism from investors as prices often shoot&nbsp; up after, and general market momentum,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs. “In the past, there have been parallels between bitcoin and tech stocks. Lower rates, falling inflation, earnings growth and indices like the S&amp;P 500 hitting groundbreaking levels certainly improve risk sentiment for the asset class.”



The move pulled crypto equities higher in premarket trading. Crypto exchange&nbsp;<a href="https://www.cnbc.com/quotes/COIN/">Coinbase</a>&nbsp;and bitcoin proxy&nbsp;<a href="https://www.cnbc.com/quotes/MSTR/">Microstrategy</a>&nbsp;each gained more than 6%, while the biggest miners,&nbsp;<a href="https://www.cnbc.com/quotes/RIOT/">Riot Platforms</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/MARA/">Marathon Digital</a>, rose 10% and 11%, respectively.



Bitcoin is nearing a key resistance level, which Fairlead Strategies earlier this week identified at $48,600. Hitting that level would open the door to a new all-time high, the firm said.



On Thursday, bitcoin&nbsp;<a href="https://www.cnbc.com/2024/02/08/bitcoin-rises-above-45000-its-highest-level-in-almost-a-month.html">passed $45,000 for the first time since Jan. 12</a>, the day after U.S. bitcoin ETFs began trading. The cryptocurrency has struggled to maintain its pre-ETF highs but has avoided falling to as low as $36,000, as expected. It has not fallen below $39,000 in the past month.

FILE PHOTO: Bitcoin representation is seen in an illustration picture taken at La Maison du Bitcoin in Paris

Bitcoin breaks above $47,000 for the first time since March 2022

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="566" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-820x566.jpg" alt="" class="wp-image-454325" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-820x566.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-768x531.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-1536x1061.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African President Cyril Ramaphosa delivers his 2024 state of the nation address in Cape Town, South Africa, February 8, 2024. REUTERS/Esa Alexander/Pool</figcaption></figure>



JOHANNESBURG, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s President Cyril Ramaphosa used a major speech in parliament on Thursday to play up his party&#8217;s achievements over the last 30 years, but gave little detail about his plans to address the country&#8217;s current major challenges.



Ramaphosa&#8217;s African National Congress (ANC) party, which has governed since Nelson Mandela led it to victory in the first post-apartheid democratic election in 1994, is heading into its most competitive campaign yet.



Many polls indicate it will lose its absolute parliamentary majority in a vote expected to be held between May and August, forcing it to choose a coalition party to hold onto power.



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.



In his annual State of the Nation Address, Ramaphosa acknowledged these problems. But he laid out few new solutions, and was occasionally met with jeers from lawmakers.



&#8220;Over the last three decades &#8230; we have transformed the lives of millions of South Africans, providing the necessities of life and creating opportunities that never existed before,&#8221; Ramaphosa said.



He portrayed the ANC as having guided South Africa safely through challenges such as the COVID-19 pandemic and rampant corruption, and said the last five years had been a time of &#8220;rebuilding and renewal&#8221;.



The ANC came to power as the liberation movement that fought racist rule in South Africa. But many of today&#8217;s young voters were born after freedom was won and have grown up instead in an era marked by disappointment and disillusionment with the country&#8217;s leaders.



South Africa remains among the most unequal countries in the world with a gaping wealth disparity. Repeated corruption scandals have tarnished the party and undermined its moral authority in the eyes of many. The unemployment rate is at its highest ever, with more than 30% of South Africans out of work.



Many of South Africa&#8217;s economic woes stem from years of mismanagement and under-investment in state-owned enterprises, which Ramaphosa pledged to reform when he took office in 2018.



&#8220;The effects of state capture continue to be felt across society, from the shortage of freight locomotives to crumbling public services, from the poor performance of our power stations to failed development projects,&#8221; said Ramaphosa.



State capture is a term for the kind of systemic political corruption that defined the era of Ramaphosa&#8217;s predecessor Jacob Zuma. But some lawmakers jeered when he touted his corruption-fighting record. Ramaphosa survived his own corruption scandal in 2022.



In one bit of policy news, he said the state would extend and improve social grants it introduced during the COVID pandemic, without giving further details.



John Steenhuisen, the leader of the main opposition Democratic Alliance party, called the speech &#8220;a laundry list of recycled projects and promises that have been made since 2018 that haven&#8217;t come to fruition.&#8221;



Analysts had predicted ahead of the address that it was unlikely to move markets.



&#8220;People know what the state of the nation is. It&#8217;s not good,&#8221; said Louw Nel, senior political analyst at Oxford Economics Africa.



(Additional reporting by Wendell Roelf in Cape Town; Editing by Joe Bavier and Daniel Wallis)

South African President Cyril Ramaphosa’s state of the nation address in Cape Town

South Africa’s Ramaphosa touts ANC history in state of nation address

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-820x538.jpg" alt="" class="wp-image-454107" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-1536x1008.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Trafigura logo is pictured in the company entrance in Geneva March 11, 2012. REUTERS/Denis Balibouse</figcaption></figure>



LUSAKA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;The United States will provide more funds for the construction of the Lobito Corridor, a rail link to export metals from Central Africa&#8217;s Copperbelt, including a link for Zambia, U.S. energy envoy Amos Hochstein said.



Washington has been supporting the project linking mineral-rich Democratic Republic of Congo (DRC) and Zambia to Lobito port in Angola. The link seeks to bypass logistics bottlenecks in South Africa that have held up copper and cobalt exports &#8211; metals vital to the energy transition away from fossil fuels.



In 2022, a consortium led by global commodities giant Trafigura, Portugal&#8217;s Mota-Engil&nbsp;MOTA.LS&nbsp;and Vecturis SA of Belgium was awarded a 30-year concession for railway services and support logistics on the Lobito Corridor. The consortium plans to spend $455 million in Angola and $100 million in the DRC on equipment, operations and infrastructure maintenance.



Additional funding is required to extend the 1,700 km (1,060 miles) line into Zambia in the second phase.



&#8220;We have committed to finance $250 million for the Angola phase one. I expect that we will commit additional resources in the same range for the second phase,&#8221; Hochstein said late Wednesday in an interview ahead of an investment forum on the project in Zambia.



The first phase involved upgrading the rail line on the Angolan side, and the second phase will involve building a new multibillion-dollar rail through Zambia and beyond, he said.



&#8220;I expect that we will start seeing some significant volumes using the rail by June-July,&#8221; he said, without giving figures.



The U.S. and its partners have also mobilised close to $1 billion to expand the Lobito Corridor by developing a new 800 km (500 mile) rail line to further connect Zambia to the network, he said during the opening of the investment forum on Thursday.



&#8220;With the Africa Finance Corporation (AFC) as the private-sector lead developing the project, we aim to break ground in 2026 and have an operational rail between eastern Angola across northwestern Zambia by 2028,&#8221; he said.



The AFC had financing commitments from the U.S., the European Union and African Development Bank (AfDB), which would bring in extra private sector financing, he said.



Hochstein welcomed the announcement on Wednesday by mining firm Ivanhoe Mines&nbsp;IVN.TO&nbsp;that it had signed up to use the rail line for its copper exports from the DRC.



&#8220;That&#8217;s critically important because it shows commitment by the private sector to this project. It will also make financing cheaper,&#8221; Hochstein said.



He also said the U.S. was contemplating other similar projects in Africa and elsewhere.



&#8220;Within Africa, I expect to have at least one more in the next year,&#8221; Hochstein said, without specifying where.



(Reporting by Chris Mfula; Editing by Nelson Banya and Mark Potter)

FILE PHOTO: Trafigura logo is pictured in the company entrance in Geneva

US to commit more funds to African rail link for metal exports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg" alt="" class="wp-image-454063" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-300x172.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-157x90.jpg 157w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-768x440.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-1536x879.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the capital city of Kampala in Uganda, July 4, 2016. REUTERS/James Akena</figcaption></figure>



KAMPALA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s central bank raised 1.3 trillion shillings ($339 million) in a rare private placement Treasury bond auction this week, against a target of 1.5 trillion shillings, results of the auction showed on Thursday.



The private placement bond auction was the first since June 2022.



The bank typically sells government bonds monthly through open auctions, but in 2020 began selling some bonds using private placements where it invites only specific banks to take part in the offer as opposed to customary open auctions.



In this week&#8217;s auction, three-year, five-year, 10-year, 15-year and 20-year Treasury bonds were on offer and the central bank received bids worth 2.3 trillion shillings.



The debt notes are due to mature at various dates between 2026 and 2043.



Eight banks were invited to participate in the auction, including local units of global lenders Standard Bank, Standard Chartered, Citibank and Absa.



($1 = 3,830.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Editing by Bhargav Acharya and Mark Potter)

A general view shows the capital city of Kampala in Uganda

Uganda’s central bank nets $339 mln in rare private placement debt auction

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg" alt="" class="wp-image-454022" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man shows off Zimbabwean currency notes outside a grocery store in Harare, Zimbabwe, March 17, 2022. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s central bank and finance ministry are working on measures to stabilise the local currency, the central bank governor said.



The Zimbabwean dollar has fallen about 40% since the start of the year, hurt by increased foreign-currency demand from civil servants being paid December bonuses and weaker commodity prices denting inflows.



That has caused inflation to accelerate in an economy still scarred by memories of hyperinflation under longtime leader Robert Mugabe.



Earlier this week President Emmerson Mnangagwa said authorities were looking to introduce a &#8220;structured currency&#8221;, without explaining how that would work.



&#8220;What His Excellency the President said is to provide forward guidance to the market on the thrust of the monetary policy statement that the Bank and Treasury are working on,&#8221; Reserve Bank of Zimbabwe Governor John Mangudya told Reuters late on Wednesday.



&#8220;The President would like to see durable stability of prices and the exchange rate in the economy.&#8221;



&#8220;Currently the economy is growing in an inflationary environment, an environment that the Bank needs to appropriately attend to,&#8221; the central bank governor added.



He did not say when the monetary policy statement with the new measures would be released.



The government relaunched a local currency in 2019 after a decade of dollarisation, but it rapidly lost value and authorities reauthorised the use of foreign currencies in domestic transactions soon after.



Independent economist Prosper Chitambara said people had little faith in the Zimbabwean dollar.



Chitambara said: &#8220;Economic agents have lost confidence in the local currency and that spurs demand for the U.S. dollar. Restoration of confidence in the currency will take time.&#8221;



(Reporting by Nyasha Chingono; Editing by Alexander Winning and Jan Harvey)

FILE PHOTO: Zimbabwe’s poor feel the impact of far away Ukraine war

Zimbabwe working on measures to stabilise currency, central bank governor says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-820x547.jpg" alt="" class="wp-image-453994" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NEW YORK, NEW YORK &#8211; SEPTEMBER 23: Ethiopia&#8217;s Deputy Prime Minister Demeke Mekonnen Hassen speaks during the United Nations General Assembly (UNGA) at the United Nations headquarters on September 23, 2023 in New York City. Heads of state and governments from at least 145 countries are gathered for the 78th UNGA session amid the ongoing war in Ukraine and natural disasters such as earthquakes, floods and fires around the globe. (Photo by David Dee Delgado/Getty Images)</figcaption></figure>



ADDIS ABABA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s parliament on Thursday approved the appointment of intelligence service chief Temesgen Tiruneh as deputy prime minister, replacing Demeke Mekonnen, who had served in the role for 11 years, the government said.



In addition, parliament accepted the nomination of Taye Atske Selassie, a former ambassador to the United Nations, as foreign minister. Demeke had also served as foreign minister since 2020.



Temesgen, who has coordinated the government&#8217;s response to a conflict that broke out last year in the Amhara region, was elected in late January to succeed Demeke as a vice president of the ruling Prosperity Party.



A vice president of the party typically serves as deputy prime minister.



Ethiopia&#8217;s national security adviser Redwan Hussein was chosen to replace Temesgen as head of the National Intelligence and Security Service (NISS) &#8211; Ethiopia&#8217;s top spy agency.



A long-time ally of Abiy, Redwan was also the lead government negotiator during the peace deal brokered in Pretoria to end the civil war in the Tigray region in 2022.



His previous experience includes serving as a state minister at the foreign affairs ministry, and also as Ethiopia&#8217;s ambassador to Eritrea.



Demeke has been a face of continuity during a turbulent period in Ethiopian politics. He was appointed deputy prime minister after the death of longtime Prime Minister Meles Zenawi in 2012 and survived a reorganisation of the ruling party after Abiy came to power in 2018.



Abiy appointed Demeke as foreign minister days after civil war broke out in November 2020 in the northern Tigray region. The conflict lasted two years and killed tens of thousands of people.



Mekdes Daba, a former World Health Organization official, has also been appointed to replace Lia Tadesse as health minister, the Ethiopian Broadcasting Corporation said.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa and Bhargav Acharya; Editing by Aaron Ross and Andrew Cawthorne)

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featured

Ghana president replaces finance minister in reshuffle

Brexit Britain has ‘significantly underperformed’ other advanced economies, Goldman Sachs says

Most base metals fall on stronger dollar after US inflation data

Apple, Microsoft win exemptions for iMessage, Bing from EU rules

Prices rose more than expected in January as US inflation won’t go away

Ahead of planned march over vote delay, Senegal suspends internet access

For West African juntas, CFA franc pits sovereignty against expediency

South Africa to deploy 2,900 troops to fight armed groups in eastern Congo

Zimbabwe to link exchange rate to hard assets, create currency board

Stocks edge lower in holiday affected trade; Israel’s shekel down after rating cut

Nigeria’s Access Bank Group CEO among six dead in California helicopter crash

Bitcoin breaks above $47,000 for the first time since March 2022

South Africa’s Ramaphosa touts ANC history in state of nation address

US to commit more funds to African rail link for metal exports

Uganda’s central bank nets $339 mln in rare private placement debt auction

Zimbabwe working on measures to stabilise currency, central bank governor says

Ethiopia intelligence head Temesgen approved as deputy prime minister

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