<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-820x542.jpg" alt="" class="wp-image-564438" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/MWJNRTIKPBIWTA3IJGUOFSGGVQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Locals walk past barricades that were used by protesters after the ruling Frelimo party was declared the winner of this month&#8217;s disputed election, in Maputo, Mozambique, October 25, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Dec 10 (Reuters) &#8211; South32 has withdrawn its output forecast for its Mozal Aluminium smelter in Mozambique amid post-election civil unrest, the Australian company said on Tuesday.



October&#8217;s disputed election results sparked protests from opposition supporters and there has been escalating violence since.



South32, which has a 63.7% stake in the Mozal Aluminium smelter, said the unrest had led to road blockages that have hampered the delivery of raw materials to the plant.



It had previously estimated output of 360 kilotonnes from the smelter this fiscal year. The project contributed about 28% of South32&#8217;s total aluminium output in fiscal 2024.



South African mining companies that ship minerals including chrome through the port of Maputo in Mozambique have also been hit by the unrest, which has on some days led to the closure of the main border between the neighbouring countries.



South African companies have grown increasingly reliant on routing cargo via the Maputo port as state-owned logistics group Transnet struggles to provide adequate freight rail and port services.



A spokesperson for miner Tharisa, which ships chrome via Maputo, told Reuters that the company had been affected by the latest border closure.



&#8220;It&#8217;s a significant amount of trucks that we have on the road,&#8221; said Ilja Graulich, adding that Tharisa may consider declaring a force majeure to its customers if the latest border closure is prolonged.



(Reporting by Felix Njini in Johannesburg and Sherin Sunny in Bengaluru. Editing by Savio D&#8217;Souza and Mark Potter)

Mozambique’s ruling party retains power in contested election

Mozambique’s post-election protests hit South32 plant, chrome exports

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg" alt="" class="wp-image-536645" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Dec 10 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand softened early on Tuesday, at the start of a day packed with local economic data releases.



At 0626 GMT, the rand traded at 17.81 against the U.S. dollar, about 0.2% weaker than Monday&#8217;s close.



South Africa-focussed investors will look to October&#8217;s mining production data at 0930 GMT and the manufacturing output figures for the same month at 1100 GMT.



Although the releases will not be market-moving individually, together they are important indicators of economic performance, analysts said.



Also on the investors&#8217; radars will be November&#8217;s Business Confidence Index, due at 0930 GMT, for signs of private sector sentiment towards Africa&#8217;s most industrialised economy.



South Africa&#8217;s benchmark 2030 government bond was little changed in early deals, with the yield at 8.895%.



(Reporting by Tannur Anders; Editing by Sumana Nandy)

New South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg

South African rand softens at start of data-filled day

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-820x547.jpg" alt="" class="wp-image-564339" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters during the spring meetings of the International Monetary Fund (IMF) and World Bank in Washington, DC, US, on Thursday, April 13, 2023. The IMF trimmed its global-growth projections, warning of high uncertainty and risks as financial-sector stress adds to pressures emanating from tighter monetary policy. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, Dec 10 (Reuters)&nbsp;&#8211;&nbsp;The World Bank downgraded Kenya&#8217;s economic growth estimate for this year to 4.7% on Tuesday, from an initial 5.0%, citing the impact of floods, anti-government protests and flailing fiscal consolidation efforts.



The East African nation has managed to stabilise its foreign exchange rate, boost hard currency reserves held by the central bank and lower inflation this year, but it still faces a high risk of debt distress, the World Bank said in a new report.



&#8220;Debt vulnerabilities including elevated debt servicing costs, accumulated pending bills, and missing revenue targets remain key challenges,&#8221; the bank said in the Kenya Economic Update report, which is usually published twice a year.



Although the growth estimate for this year is lower than last year&#8217;s rate of 5.6%, it will still be higher than the sub-Saharan Africa average of 3.0%, the bank said.



Kenya&#8217;s growth will, however, inch up to 5.1% in the medium term, it said, if the government successfully deals with the fiscal challenges.



&#8220;Revenue shortfalls resulted in additional spending cuts, and rising financing needs resulted in increased domestic borrowing,&#8221; the World Bank said.



Apart from the problems caused by a high debt load, the attendant servicing costs and flagging government revenues, the economy faces social unrest and financial risks, the report found.



Deadly protests in June forced President William Ruto to abandon tax hikes meant to raise more than $2 billion in additional revenue, which dampened investor sentiment.



The protests came hot on the heels of widespread flooding in April and May, which also caused disruptions.



Non-performing loans in the banking sector have also been growing, the report said, as borrowers struggle to service their loans amid high interest rates and a slowdown in economic activity.



The bank urged the government to tackle &#8220;structural imbalances&#8221; that &#8220;hinder Kenya&#8217;s goal of sustained and inclusive growth&#8221; that creates higher quality jobs for the people.



(Reporting by Duncan Miriri; Editing by Ros Russell)

Spring Meetings Of The International Monetary Fund And World Bank

World Bank cuts Kenya’s 2024 growth estimate to 4.7% on fiscal challenges

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3288" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/DCHRVBQRQ5MELH6UNHHLJO57MY.avif" alt="" class="wp-image-564051"/><figcaption class="wp-element-caption">National Democratic Congress (NDC) presidential candidate and former Ghanaian President John Dramani Mahama salutes supporters during his final election campaign rally in Accra, Ghana December 5, 2024. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



ACCRA, Dec 9 (Reuters)&nbsp;&#8211;&nbsp;John Dramani Mahama, who is returning as Ghana&#8217;s president eight years after losing power, achieved his political comeback on a promise to mend the West African country&#8217;s economy.



His main rival conceded defeat on Sunday after partial results showed Mahama, 66, was on course to win Saturday&#8217;s presidential election and that his National Democratic Congress would win a parliamentary election held the same day.



The eldest son of a wealthy rice trader turned politician, Mahama became Ghana&#8217;s interim leader in 2012 after the sudden death of President John Atta Mills, under whom Mahama served as vice president.



Mahama defeated his main challenger, Akufo-Addo, in an election a few months later &#8211; the first in a series of votes that pitted the two against each other.



During his four-year term, Mahama invested heavily in infrastructure but drew criticism over prolonged power shortages, macroeconomic instability and allegations of political corruption although he was not personally tainted.



Polls before Saturday&#8217;s election had forecast Mahama to win after a spiralling economic and cost-of-living crisis in cocoa, gold and oil-producing Ghana hit the popularity of Akufo-Addo&#8217;s government and increased momentum for a change in leadership.



In an interview with Reuters before the election, Mahama said he would seek to renegotiate terms of a $3 billion International Monetary Fund bailout secured last year to restructure the country&#8217;s debt.



He has also promised to ease business regulations, introduce a 24-hour triple-shift work system, enact tax reforms and invest $10 billion in modernising infrastructure.



&#8220;This election is not just another election. It&#8217;s a defining moment for our nation,&#8221; he told his final campaign rally, urging voters to &#8220;reset the country&#8221;.



<h2 class="wp-block-heading" id="h-thank-you-ghana">&#8216;THANK YOU, GHANA&#8217;</h2>



Mahama went to a private boarding school in Accra and also studied communications in the capital at the University of Ghana in the 1980s before moving to Moscow to study psychology.



He was first elected to parliament in 1996 and served as communications minister from 1998 to 2001. Atta Mills appointed him vice president in 2009.



Mahama failed to secure a second term as president in 2016, when Akufo-Addo defeated him on the back of falling gold, oil and cocoa export prices. Akufo-Addo defeated Mahama again in 2020 on a promise to restore growth.



Celebrating what he called an emphatic win in Saturday&#8217;s election Mahama wrote on X: &#8220;Thank you, Ghana.&#8221;



Mahama was born and raised as a Christian, like the majority of Ghanaians. He is married with five children.



An avid reader and writer, he has published columns in Ghanaian and international newspapers, including an opinion piece on the death of South Africa&#8217;s first black president Nelson Mandela for the New York Times.



In 2012, he wrote a memoir in which he recalled the military coup that ousted Ghana&#8217;s founding president, Kwame Nkrumah, in 1966. Mahama was seven at the time.



(Writing by Sofia Christensen, Editing by Timothy Heritage)

DCHRVBQRQ5MELH6UNHHLJO57MY

John Dramani Mahama returning as Ghana president on pledge to mend economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-820x547.jpg" alt="" class="wp-image-564033" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-169658566-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">PORT LOUIS, MAURITIUS &#8211; MAY 30: Prime Minister Navin Ramgoolam of Mauritius speaks during the opening ceremony of the 63th FIFA Congress at Swami Vivekananda International Convention Centre on May 30, 2013 in Port Louis, Mauritius. (Photo by Alexander Hassenstein &#8211; FIFA/FIFA via Getty Images)</figcaption></figure>



PORT LOUIS, Dec 9 (Reuters)&nbsp;&#8211;&nbsp;The state of Mauritius&#8217; economy is &#8220;much worse than we imagined&#8221;, its new prime minister said, as an audit he launched into the Indian Ocean archipelago&#8217;s public finances neared completion.



Navin Ramgoolam announced the audit days after his coalition won a resounding election victory in November, alleging the previous government had manipulated data to put a positive spin on the country&#8217;s economic prospects.



The former finance minister, Renganaden Padayachy, has not responded to requests for comment about Ramgoolam&#8217;s allegations since the launch of the audit. Padayachy did not respond to further calls and a message seeking comment on Monday.



&#8220;We are almost completing our audit of the economy. It&#8217;s shocking what we have seen. It&#8217;s much worse than we imagined. Mauritians will soon discover the exact situation of the economy,&#8221; Ramgoolam said in comments broadcast on Mauritian television and radio stations on Saturday.



Ramgoolam, who is also the&nbsp;new&nbsp;finance minister, did not provide any figures to back up his weekend comments.



The country of about 1.3 million people is seen as one of Africa&#8217;s most stable democracies.



Mauritius&nbsp;markets itself as a link between Africa and Asia, deriving most of its revenue from a flourishing offshore financial sector, tourism and textiles.



Economic growth was 7% last year, but the rising cost of living was a key issue in the election, colouring voters&#8217; views on the previous government led by Pravind Jugnauth.



(Reporting by Villen Anganan; Writing by George Obulutsa; Editing by Alexander Winning and Kate Mayberry)

63rd FIFA Congress – Opening Ceremony

Mauritius economy ‘much worse than we imagined’, new prime minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="720" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GZ42FNCPGRK2ZE3SBHPBDHACCI.avif" alt="" class="wp-image-563964"/><figcaption class="wp-element-caption">Supporters of Ghana&#8217;s main opposition National Democratic Congress (NDC) party candidate and former President John Dramani Mahama celebrate after his rival Vice President Mahamudu Bawumia conceded defeat day after the presidential and parliamentary election in Ghana, December 8, 2024. REUTERS/Zohra Bensemra</figcaption></figure>



ACCRA, (Reuters) &#8211; Ghana&#8217;s former President John Dramani Mahama has staged a political comeback by winning the West African nation&#8217;s presidential election after his rival Vice President Mahamudu Bawumia conceded defeat on Sunday.



The result of Ghana&#8217;s general election is another blow to a ruling party in a region where voters, hit by economic hardship, high inflation and local currency depreciation, have caused upsets as they seek changes in leadership.



Mahama, 66, who served as Ghana&#8217;s president from 2012 to 2016, framed Bawumia as representing a continuation of the policies that led to Ghana&#8217;s worst economic crisis in a generation.



The world&#8217;s second biggest cocoa grower, and major gold-producing nation, reached a deal with the International Monetary Fund last year for a $3 billion bailout after it defaulted on most of its international debt.



&#8220;I have, this morning, received a congratulatory call from my brother Dr. Bawumia, following my emphatic victory in Saturday’s election. Thank you, Ghana,&#8221; Mahama said in a post on X social media.



Addressing a press conference from his residence, Bawumia said he called Mahama to congratulate him, adding that Mahama&#8217;s National Democratic Congress (NDC) also won the parliamentary election.



&#8220;The data from our own internal collation of the election results indicate that former President John Dramani Mahama has won the presidential election decisively,&#8221; Bawumia said, adding that NDC also won the parliamentary election.



Bawumia said he conceded before the official result to ease tensions.



Before his concession, scuffles had been reported in several local constituency centres where results were still arriving from polling stations.



&#8220;I am making this concession speech before the official announcement by the Electoral Commission to avoid further tension and preserve the peace of our country,&#8221; Bawumia said.



&#8220;It is important that the world investor community continues to believe in the peaceful and democratic character of Ghana,&#8221; he added.



Hundreds of NDC supporters took to the streets of the capital Accra on Sunday to celebrate after Bawumia conceded defeat.



Early results had shown Mahama and the NDC party with a commanding lead. Joy News reported that Mahama was leading with over 53% of the vote to Bawumia&#8217;s 45.16% after provisional results from 68 out of a total 276 constituencies were counted.



In a news conference on Sunday before Bawumia conceded, Sammy Gyamfi, national spokesperson for the NDC, said provisional internally collated results by party agents from 38,896 out of the total 40,976 polling stations showed Mahama was leading with around 56%.



He said the party appeared on track to win around 185 out of 276 seats in Parliament.



(Reporting by Maxwell Akalaare Adombila, Christian Akorlie and Bate Felix Writing by Bate Felix; Editing by Kirsten Donovan and Christina Fincher)

GZ42FNCPGRK2ZE3SBHPBDHACCI

Ghana’s former President Mahama wins election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-820x547.jpg" alt="" class="wp-image-563928" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-2188369249-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ABU DHABI, UNITED ARAB EMIRATES &#8211; DECEMBER 05: Max Verstappen of the Netherlands and Oracle Red Bull Racing looks on in the Paddock during previews ahead of the F1 Grand Prix of Abu Dhabi at Yas Marina Circuit on December 05, 2024 in Abu Dhabi, United Arab Emirates. (Photo by Mark Thompson/Getty Images)</figcaption></figure>



ABU DHABI, Dec 8 (Reuters)&nbsp;&#8211;&nbsp;Formula One world champion Max Verstappen will serve a penalty for swearing when he visits Rwanda next week to collect his winner&#8217;s trophy, the governing FIA said on Sunday.



Verstappen, who secured his fourth successive championship in Las Vegas last month, was ordered to do &#8220;work of public interest&#8217; after swearing during a Singapore Grand Prix press conference in September.



The FIA&#8217;s prize-giving gala is in Kigali next week, a first for the governing body.



It said after the season-ending Abu Dhabi Grand Prix that the Red Bull driver &#8220;would undertake some work with junior competitors as part of the grassroots development programme organised by the Rwanda Automobile Club&#8221;.



The activity will involve an FIA Affordable Cross Car built locally from blueprints provided by the governing body.



The Dutch driver collected a 10-second penalty in Sunday&#8217;s season-ending Abu Dhabi Grand Prix after a first-lap collision with McLaren&#8217;s Oscar Piastri.



While Verstappen apologised to Piastri, he was less complimentary about the stewards who gave him the time penalty and two penalty points on his licence.



The 27-year-old now has a total of eight points for the 12-month period, with 12 triggering an automatic one-race ban.



&#8220;Could we ask for 20 seconds, stupid idiots,&#8221; he said over the radio, a reference to the two 10-second penalties he received in Mexico in October.



The&nbsp;Piastri collision&nbsp;could have been disastrous for McLaren, who were fighting Ferrari for the constructors&#8217; title and emerged on top thanks to Lando Norris winning from pole position.



&#8220;I apologised to Oscar. I never want to crash with anyone, especially not Oscar who is a great guy,&#8221; Verstappen told Sky Sports television.



&#8220;I went up the inside because we had a really good launch but then I realised that it was going to be tight at the apex.



&#8220;I tried to stay on the kerb but unfortunately we clipped with the tyres, hooked each other and both spun. It&#8217;s not great, as simple as that.&#8221;



Piastri fought back to 10th and McLaren&nbsp;became&nbsp;champions for the first time in 26 years,&nbsp;by 14 points.



(Reporting by Alan Baldwin, editing by Toby Davis and Clare Fallon)

F1 Grand Prix of Abu Dhabi – Previews

Motor racing-Verstappen to serve swearing penalty in Rwanda

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-820x547.jpg" alt="" class="wp-image-562966" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QOKAVEN6MRMWPH2LUXC4E2QNBU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian President Bola Ahmed Tinubu listens to French President Emmanuel Macron (not seen) as he delivers a statement to the press after a meeting at the Elysee Palace in Paris as part of his a two-day state visit to France, November 28, 2024. REUTERS/Sarah Meyssonnier/Pool/File Photo</figcaption></figure>



ABUJA, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s Senate has passed a bill seeking to make it a crime to export large quantities of unprocessed corn in an effort to alleviate hunger in the West African nation, documents seen by Reuters on Friday showed.



Africa&#8217;s most populous country is grappling with its worst cost-of-living crisis in a generation.



Economic hardship has worsened since President Bola Tinubu started austerity reforms, including devaluing the country&#8217;s naira currency and ending a decades-old petrol subsidy, fuelling inflation.



The weak Nigerian currency has spurred informal exports of corn, rice and sorghum to neighbouring countries due to the exchange rate differential with the West African CFA franc.



Corn is a staple in Nigeria that is also used for animal feed, drinks and processed flour.



The United States Department of Agriculture (USDA) forecasts a rise in Nigeria&#8217;s 2024/25 corn exports to 75,000 metric tons from its 2023/24 estimate of 50,000 metric tons.



The Senate bill, which will need the president&#8217;s assent to become law, will make it illegal to export unprocessed corn from a minimum of 1 metric ton.



Violators would pay the value of the corn in fines or face a one-year prison sentence.



A joint report by Nigeria&#8217;s government and the United Nations said in November that more than 30 million people are expected to be food insecure next year, a one-third jump from this year.



The USDA estimates that Nigeria consumes about 12 million metric tons of corn a year, importing roughly 100,000 metric tons.



(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Alexander Winning and Barbara Lewis)

FILE PHOTO: French President Macron meets Nigerian President Bola Tinubu in Paris

Nigeria’s Senate seeks to criminalise corn exports to tackle hunger

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59.jpg" alt="" class="wp-image-422969" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-59-768x487.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: A car drives past a construction site of the Central Business District (CBD) in the capital Gaborone, Botswana, September 21, 2018. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



GABORONE, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Botswana&#8217;s economy could shrink 1.7% this year, the first contraction since the COVID-19 pandemic, mostly because of a prolonged downturn in the global diamond market, finance minister Ndaba Gaolathe said.



In February, when it presented its budget, the southern African country&#8217;s government forecast 4.2% growth in 2024 but weakness in the diamond market since late last year has hurt demand for Botswana&#8217;s key export.



Debswana, Botswana&#8217;s joint venture with De Beers, lowered its 2024 diamond production guidance by about 6 million carats to 17.9 million carats. De Beers diamond sales were down 40% in the first nine months of 2024 from the year earlier period.



Gaolathe told lawmakers on Thursday that the contraction in Gross Domestic Product (GDP) this year could be greater than 1.7% should additional risks materialise, according to a copy of his remarks sent to reporters by the finance ministry.



Those risks include further disruptions in the diamond market, the impact of a severe regional drought and defects at a major power plant.



The budget deficit is now seen at 6.75% of GDP, compared to the estimate of 2.8% given in February, Gaolathe said.



Like other southern African countries Botswana has been affected by the worst regional drought in decades, which has sapped economic growth in neighbouring Namibia and Zimbabwe.



Botswana&#8217;s central bank said on Thursday that the economy would contract in 2024 but did not say by how much.



(Reporting by Brian Benza; Writing by Tannur Anders; Editing by Alexander Winning, Kirsten Donovan)

download-59

Botswana economy could shrink 1.7% this year, finance minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3345" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QBEYZAZEXFJCNHYDTQA5BDKG2M.avif" alt="" class="wp-image-562813"/><figcaption class="wp-element-caption">The logo of consulting firm McKinsey and Company is seen at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019. REUTERS/Charles Platiau/File Photo</figcaption></figure>



WASHINGTON/NEW YORK, Dec 5 (Reuters) &#8211; McKinsey and Company Africa Ltd, a subsidiary of McKinsey &amp; Company, will pay more than $122 million to resolve a U.S. investigation into a bribery scheme in South Africa, the Justice Department said on Thursday.



Privately owned McKinsey Africa was charged with one count of conspiracy to violate the Foreign Corrupt Practices Act for agreeing to pay bribes to officials at state-owned energy company Eskom and port and freight rail operator Transnet in exchange for non-public information about consulting contracts.



McKinsey Africa entered into a three-year deferred prosecution agreement with the Justice Department.



&#8220;McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits,&#8221; said Nicole M. Argentieri, head of the Justice Department’s Criminal Division.



Vikas Sagar, a senior former partner at McKinsey, previously pleaded guilty to one count of conspiracy to violate the act. He could not immediately be reached for comment.



In a statement, McKinsey said Sagar had concealed his conduct from the company, and that it fired him soon after it learned about the issues.



McKinsey and McKinsey Africa earned around $85 million in profits through the bribery scheme, the Justice Department said. Eskom had hired McKinsey to help it execute a &#8220;turnaround plan.&#8221;



Inefficiencies at Eskom and Transnet have constrained growth in Africa&#8217;s most industrialized economy for more than a decade.



The Justice Department said McKinsey Africa had received credit for cooperating with its investigation and conducting anti-corruption training for employees. The $122,850,000 McKinsey has agreed to fork up includes a penalty it will pay in South Africa.



McKinsey is also in talks with the Justice Department to pay more than $600 million to resolve a separate investigation into the consulting firm&#8217;s work helping opioid manufacturers boost sales that allegedly contributed to a deadly addiction epidemic, people familiar with the matter have told Reuters.



(Reporting by Doina Chiacu and Ismail Shakil; additional reporting by Nate Raymond; Writing by Luc Cohen; Editing by Caitlin Webber and Jonathan Oatis)

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McKinsey Africa to pay $122 million in South Africa bribery scheme, US Justice Department says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Donor countries have pledged a record $100 billion three-year replenishment of the World Bank&#8217;s fund for the poorest nations, providing a vital lifeline for their struggles against crushing debts, climate disasters, inflation and conflict.



The World Bank made the announcement early on Friday in Seoul at a pledging conference for the International Development Association, which provides grants and very low-interest loans to 78 low-income countries.



The total exceeds the previous $93 billion IDA replenishment announced in December 2021. Countries will contribute about $24 billion directly to IDA, only marginally increased from the $23.5 billion pledged in 2021, but the fund will issue bonds and employ other financial leverage to stretch that to the targeted $100 billion in grants and loans through mid-2028.



The two-day pledging conference fell short of the $120 billion goal that African heads of state had called for, partly because the U.S. dollar&#8217;s strength .DXY &#8211; pushed up by Donald Trump&#8217;s U.S. presidential election victory &#8211; diminished the dollar value of significant increases in foreign currency contributions by several countries.



At a G20 leaders&#8217; summit in Brazil last month, Norway increased its pledge by 50% from 2021 to 5.024 billion krone. That&#8217;s $455 million at current exchange rates, but at the start of 2024, it would have been worth $496 million.



South Korea boosted its pledge by 45% to 846 billion won, ($597 million), Britain by 40% to 1.8 billion pounds, and Spain by 37% to 400 million euros. Spain&#8217;s pledge was worth $423 million on Friday, $10 million less than the day it was announced in October.



U.S. President Joe Biden pledged a $4 billion U.S. contribution, up from $3.5 billion in the previous round.



The World Bank did not immediately reveal the amounts of other pledges, but said that 17 donor countries had committed to raising their contributions by more than 25%, with 10 offering increases of 40% or more.



World Bank President Ajay Banga said in a statement that IDA will be able to stretch the new pledges further because of work done to optimize the development lender&#8217;s balance sheet over the past two years, increasing its lending capacity by some $150 billion over 10 years.



The bank&#8217;s ability to leverage contributions will transform &#8220;modest contributions into life-changing investments,&#8221; Banga said in an open letter to shareholders and client countries.



About 35 countries have graduated from IDA to become donors, including China, South Korea, Chile, Jordan, and Turkey.



Banga said the resources will allow the bank to put job creation at the center of its work, even as it addresses climate change and other global crises.



&#8220;In this context, IDA is not just a financial instrument; it is a catalyst for job creation,&#8221; Banga said. &#8220;It provides countries with the resources to build infrastructure, improve education and health systems and foster private sector growth.&#8221;



($1 = 0.9455 euros)



(Reporting by David Lawder; Editing by Shri Navaratnam and Saad Sayeed)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank wins $100 bln replenishment of fund for poorest countries

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/UF4K7PHXAZNURIYHXZYZ7KQQXA.avif" alt="" class="wp-image-562468"/><figcaption class="wp-element-caption">Diamonds are seen during an exhibition in Gaborone, Botswana, November 23, 2015. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



GABORONE, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;Botswana&#8217;s central bank left its main lending rate unchanged on Thursday, saying the economy was expected to operate below capacity and not generate demand-driven inflationary pressures because of a slump in the global diamond market.



The Bank of Botswana held its Monetary Policy Rate at 1.90% for the second policy meeting in a row. The rate is based on a seven-day instrument.



&#8220;The economy will contract this year primarily due to the downturn in the global diamond market and moderately recover next year,&#8221; central bank Governor Cornelius Dekop told a news conference.



The southern African country&#8217;s economy is largely dependent on the export of diamonds, and declining earnings from the precious stone have limited government spending.



The central bank also lowered its primary reserve requirement to 0% from 2.5% due to significantly reduced liquidity in the banking system.



Dekop said inflation was expected to average 2.9% in 2024 and 3.3% in 2025, compared with forecasts of 2.8% and 3.1% given at the bank&#8217;s previous monetary policy meeting in November.



The Bank of Botswana prefers inflation between 3% and 6% over the medium term. Annual inflation stood at 1.6% in October.



(Additional reporting by Bhargav Acharya; Writing by Tannur Anders; Editing by Alexander Winning, Kirsten Donovan)

UF4K7PHXAZNURIYHXZYZ7KQQXA

Botswana holds main interest rate as diamond slump saps economy

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="755" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/ZIJ3HNNBURIB3GCTMDH2DSOPEQ.avif" alt="" class="wp-image-562383"/><figcaption class="wp-element-caption">People queue in front of the South African Airways (SAA) counters at Cape Town International Airport, amid SAA pilots planning to strike following a deadlock in pay rise negotiations, in Cape Town, South Africa, December 5, 2024. REUTERS/Esa Alexander</figcaption></figure>



JOHANNESBURG, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;South African Airways said it had cancelled flights to Perth and Sao Paulo on Thursday after receiving confirmation from the SAA Pilots Association that they planned to strike following a deadlock in pay talks.



The company decided to cancel the Perth and Sao Paulo routes last night after being told the strike planned for Thursday would go ahead, Khaya Buthelezi, the airline&#8217;s senior manager of corporate relations, told Reuters.



&#8220;That&#8217;s the decision we took last night since we could not find partner airlines that we can transfer our customers to, it became clear that those two routes must be cancelled,&#8221; he said.



Early on Thursday, there were no disruptions to domestic flights and routes across Africa as the airline had made contingency plans, he said.



Some pilots were seen picketing outside the SAA office at the OR Tambo International Airport in Johannesburg, Buthelezi said.



The SAA Pilots Association (SAAPA) did not immediately respond to a request for comment.



SAAPA&#8217;s initial demand proposed in May was for a 30% increase in pilot salaries, which was subsequently reduced to 15.7%, including associated benefits, SAA said in a statement earlier this week.



The company&#8217;s interim Chief Executive Officer John Lamola said in that statement that the demand for a 15.7% pay rise would trigger the company&#8217;s decline into bankruptcy.



The airline has offered an 8.46% pay increase backdated to April.



The national carrier was on the verge of being liquidated before it entered a form of bankruptcy protection in 2019.



(Reporting by Sfundo Parakozov, Editing by Bhargav Acharya and Jane Merriman)

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South African Airways cancels some flights as pilots go on strike

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107354835-1704471188107-gettyimages-1902360932-CZECH_CRYPTO-820x461.jpeg" alt="" class="wp-image-562379" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107354835-1704471188107-gettyimages-1902360932-CZECH_CRYPTO-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107354835-1704471188107-gettyimages-1902360932-CZECH_CRYPTO-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107354835-1704471188107-gettyimages-1902360932-CZECH_CRYPTO-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107354835-1704471188107-gettyimages-1902360932-CZECH_CRYPTO-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107354835-1704471188107-gettyimages-1902360932-CZECH_CRYPTO-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/107354835-1704471188107-gettyimages-1902360932-CZECH_CRYPTO.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A neon sign indicates that Bitcoin is accepted inside the venue of the Paralelni Polis project, an organization combining art, social sciences and modern technology, in Prague, Czech Republic, on Friday, Jan. 5, 2024. Milan Jaros | Bloomberg | Getty Images</figcaption></figure>



The price of bitcoin soared past the long-awaited $100,000 benchmark for the first time ever late Wednesday evening.



The flagship cryptocurrency was last higher by more than 4% at $103,544.00, according to Coin Metrics. Earlier, it rose as high as $103,844.05. Bitcoin is now up more than 140% in 2024 and 48% since the election.



The move came hours after President-elect Donald Trump announced plans to nominate Paul Atkins as chair of the Securities and Exchange Commission, fulfilling perhaps his most important campaign promise to the crypto industry: to replace Gary Gensler, who has become something of a villain in crypto for the agency’s regulation-by-enforcement approach to the industry under his leadership.



It’s a day of celebration for longtime bitcoin investors, who have held on for dear life, or “HODL’d” through several of the cryptocurrency’s boom and bust cycles, during which government and financial institutions remained dismissive — and even hostile — toward the asset class.



That’s largely because of the cryptocurrency’s anti-establishment roots. The original idea for Bitcoin was proposed at the height of the 2008 financial crisis: a “peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution,” its founder, Satoshi Nakamoto, wrote in the Bitcoin Whitepaper.



In recent years, however, the industry has demonstrated the value of bitcoin to much of the institutional investing world. BlackRock, Fidelity, Invesco and others launched the first spot bitcoin ETFs at the beginning of this year — bitcoin’s “IPO” moment — and the growing demand for them by institutions has helped drive the price higher. In November, Rick Wurster, the incoming CEO of Charles Schwab, said the firm is preparing to enter spot crypto trading, pending regulatory changes expected in the next Trump administration.



On Wednesday, Federal Reserve chair Jerome Powell said bitcoin is “just like gold only it’s virtual, it’s digital,” speaking at the DealBook conference. He further clarified that “people are not using it as a form of payment, or as a store of value” and that “it’s not a competitor for the dollar, it’s really a competitor for gold.”



“We’re witnessing a paradigm shift. After four years of political purgatory, bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream,” Mike Novogratz, CEO of Galaxy Digital, told CNBC.



Bitcoin had been widely expected to reach the landmark $100,000 level since the U.S. presidential election. However, excited investors sent bitcoin closer to this mark much sooner than initially anticipated; it rose as high as $99,849.99 on Nov. 22. There is much hope that President-elect Trump will deliver on several pro-crypto initiatives in the year ahead – including the establishment of a national strategic bitcoin reserve or stockpile, no taxes on crypto transactions and opening up the crypto public equity markets with more IPOs.



“Over the long term, I’m bullish,” Novogratz added. “It won’t be a straight line up, and investors should always consider taking gains off the table. But, with a pro-crypto administration about to take charge in the U.S., it’ll be hard for the rest of the world not to take notice.”

107354835-1704471188107-gettyimages-1902360932-CZECH_CRYPTO

Bitcoin tops $100,000 as monster 2024 rally reaches new heights

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="721" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/I7IV7WCMLBKQBBJ2HO44Y2YBEI.avif" alt="" class="wp-image-562344"/><figcaption class="wp-element-caption">A woman uses a donkey cart to transport a barrel of water in drought affected areas in Higlo Kebele, Adadle woreda, Somali region of Ethiopia, in this undated handout photograph. Michael Tewelde/World Food Programme/Handout via REUTERS/ File Photo</figcaption></figure>



LONDON, (Reuters) &#8211; Multilateral lender Climate Investment Funds will back a $500 million plan to help drought-prone Ethiopia restore degraded land, protect its forests and bolster food security, it said on Wednesday.



CIF&#8217;s board said it had agreed a $37 million investment from its Nature, People, and Climate programme that it expects to mobilise $492 million in co-financing from other investors, including the World Bank and African Development Bank.



Most Ethiopians live in rural areas and rely on agriculture yet more than half of the country is experiencing some level of land degradation and around 11 million hectares are in danger of turning into desert, CIF said.



The funding is expected to help restore more than 320,000 hectares of wild Arabica coffee forests, farmlands, and rangelands in the Amhara, Oromia, South Ethiopia, and Somali regions and create an online registry of the country&#8217;s forests.



&#8220;This programme is really trying to get at how climate change and land degradation are undermining the livelihoods of millions of smallholder farmers and pastoralists in Ethiopia,&#8221; said Paul Hartman, the lead for CIF&#8217;s nature programmes.



As well as helping reduce poverty and increase economic sustainability, the plan, created by the government, aims to increase agricultural productivity and improve food security.



As countries gather in the Saudi Arabian capital of Riyadh for global talks on the issue of land degradation, Hartman said it was important for countries to weave the issue through their plans to combat climate change and biodiversity loss.



While around half the money targeted by Ethiopia had already been allocated by co-investors to projects, the rest would likely come from private and philanthropic investors in the months ahead, Hartman added.



Projects to receive funding will include those focused on afforestation and reforestation, regeneration of soil health and water conservation, and sustainable farming.



(Reporting by Simon Jessop; Editing by Christina Fincher)

I7IV7WCMLBKQBBJ2HO44Y2YBEI

Climate Investment Funds board backs $500 mln Ethiopia nature plan

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-820x547.jpg" alt="" class="wp-image-562084" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Joe Biden stands with Angolan Minister of Transport Ricardo Daniel Sandao Queiros Viegas de Abreu, during a visit to the Lobito Port Terminal to receive a briefing on the Lobito Atlantic Railway, in Lobito, Angola, December 4, 2024. REUTERS/Elizabeth Frantz</figcaption></figure>



LOBITO, Angola, Dec 4 (Reuters) &#8211; U.S. President Joe Biden met African leaders in the Angolan port of Lobito on Wednesday to advance a plan to extend a railway that could channel critical minerals from Congo and Zambia to the West via Lobito, and counter Chinese clout in the region.



As things stand, China is the main foreign player in Democratic Republic of Congo&#8217;s mining sector, which exports minerals considered critical for batteries and other industrial components key to transitioning away from fossil fuels.



The United States has provided a $550 million loan to support the&nbsp;Lobito&nbsp;venture, which involves refurbishing an existing railway through Angola and extending it into Congo&#8217;s mining heartland as part of the first phase.



No date has been given for its completion yet, while a second phase that would link Lobito to Zambia via a new railway line is still at the preparation stage, with an aim to break ground in 2026according to Washington.



The presidents of Angola, Congo and Zambia and the vice president of Tanzania joined Biden for a summit in Lobito on the last day of his first and only trip to Africa as president.



Biden and Congo&#8217;s Felix Tshisekedi affirmed their commitment to promoting investment and peace to allow the central African nation to make the most of its vast mineral wealth, according to a note from the White House issued after the two met.



Biden and Zambian counterpart Hakainde Hichilema also met to discuss the Zambian component of the Lobito project and other issues.



&#8220;This corridor is of vital importance to opening up our countries, to opening up our regions, the continent, and truly the global economy,&#8221; Hichilema said. &#8220;This project is a huge opportunity for investment, for trade.&#8221;



&#8220;The presidents underscored their conviction,&#8221; a White House statement said, &#8220;that countries should not be held back from investing in their development by the need to service unsustainably high debt, and together committed to continue advocating for reform.&#8221;



In June, Zambia&#8217;s international bondholders voted through their part of a $13.4 billion debt restructuring deal, making Zambia the first to complete a full-blown rework under the G20-led &#8220;Common Framework&#8221; architecture.



<h2 class="wp-block-heading" id="h-the-china-factor">THE CHINA FACTOR</h2>



The Lobito Atlantic Railway concession, awarded in 2022 to a consortium of Western companies, has been presented as a win against China, as Washington is increasingly concerned about the Chinese grip on critical minerals, including Congo&#8217;s vast reserves of copper and cobalt.



The second phase of the project&nbsp;envisions extending the Lobito corridor&nbsp;railway&nbsp;through&nbsp;Zambia and connecting it to&nbsp;Tanzania&#8217;s Indian Ocean port of Dar es Salaam.



The U.S. has funded feasibility studies&nbsp;for the second phase, but&nbsp;critics say it&nbsp;could&nbsp;offer&nbsp;China&nbsp;a rival route&nbsp;eastwards, undermining the entire project from Washington&#8217;s perspective.



After Donald Trump is sworn in as U.S. president in January, Washington is expected to take a harsher line with China and some officials have questioned whether U.S. support for the eastern route will continue.



Trump will likely back at least parts of the Lobito project and remain a close partner to Angola when he returns to the White House, according to two officials who served under the previous 2017-21 Trump administration.



The details relating to the funding and construction of the second phase of the project are still in question.



The Lobito project is backed by global commodities trader Trafigura, Portuguese construction group Mota-Engil and railway operator Vecturis. There is no date yet for its completion.



A senior U.S. official said on Tuesday that the Lobito project could be completed by the end of the decade, without providing further details.



The U.S. Development Finance Corporation has provided the $550 million loan to refurbish the 1,300-km (800-mile) rail network from Lobito to Congo.



U.S. officials announced&nbsp;fresh&nbsp;financing&nbsp;for the first phase of the venture&nbsp;this week through the Development Finance Corporation worth $600 million for projects including solar, minerals and telecommunications.



Biden pledged lasting U.S. engagement with Africa on the continent&#8217;s own terms as he met with his Angolan counterpart Joao Lourenco in Luanda on Tuesday. Biden&#8217;s trip delivered on a promise to visit Africa, but came only weeks before his presidency ends.



Despite his repeated pledges to be &#8220;all in on Africa&#8221;, U.S. influence in Africa has declined during his term in office. Washington has lost a military base in the Sahel region and made little progress breaking China&#8217;s commercial dominationin minerals seen as critical to national security.



Angola has long nurtured close ties with China and Russia but has recently moved closer to the West. Itaims to expand its collaboration with the United States on security and military initiatives, Lourenco said during Biden&#8217;s visit on Tuesday.



(Reporting by Jessica Donati and Trevor Hunnicutt; editing by Timothy Heritage, Estelle Shirbon and Mark Heinrich)

U.S. President Joe Biden vistis the Lobito Port Terminal

Biden meets African leaders in Angola to advance Lobito railway project

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3485" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SMGPRUOGTVKQFGJ7HDZKUUAZQQ.avif" alt="" class="wp-image-558475"/><figcaption class="wp-element-caption">Shoppers stand at a Pick n Pay store at the Dobson Point Shopping Centre, in Soweto, South Africa, March 19, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



Dec 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s consumer confidence slipped one point in the fourth quarter, although retail sales during the festive season are still expected to be their best levels last seen in 2019, a survey showed on Wednesday.



The consumer confidence index (CCI), sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research (BER), edged down to minus 6 points in the reported period from minus 5 a quarter ago.



A marked depreciation in the rand exchange rate along with higher petrol prices and trade uncertainties following the re-election of Donald Trump as U.S. president affected consumer confidence in the quarter.



Still, a rise in consumer spending due to lower inflation and interest rate cuts points to a festive season as strong as pre-pandemic levels.



&#8220;A string of favorable developments has seen consumer confidence riding much higher since the second quarter of 2024, including the formation of a government of national unity, the termination of load-shedding, a substantial deceleration in inflation, two interest rate cuts and the implementation of the two-pot retirement system,&#8221; said FNB Chief Economist Mamello Matikinca-Ngwenya.



(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips)

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Nigeria’s Senate seeks to criminalise corn exports to tackle hunger

Botswana economy could shrink 1.7% this year, finance minister says

McKinsey Africa to pay $122 million in South Africa bribery scheme, US Justice Department says

World Bank wins $100 bln replenishment of fund for poorest countries

Botswana holds main interest rate as diamond slump saps economy

South African Airways cancels some flights as pilots go on strike

Bitcoin tops $100,000 as monster 2024 rally reaches new heights

Climate Investment Funds board backs $500 mln Ethiopia nature plan

Biden meets African leaders in Angola to advance Lobito railway project

S.African consumer confidence drops, but signals strong festive season

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