<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-820x547.jpg" alt="" class="wp-image-548216" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">General view of the venue as Saudi Arabia&#8217;s Minister of Energy Prince Abdulaziz bin Salman Al Saud attends the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. REUTERS/Hamad I Mohammed</figcaption></figure>



RIYADH, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Saudi Arabia is in the advanced stages of talks about a stake in a copper mine in Zambia and is expecting a deal by the end of the year, the CEO of Saudi Arabia’s flagship mining company Ma’aden told Reuters on Wednesday.



“We are looking at Zambia, we are talking with a company there, with a mine there, so those are pretty advanced stage discussions,” CEO Robert Wilt, who is also vice chairman of Saudi Arabia’s international mining venture Manara Minerals, said.



&#8220;We&#8217;d have something wrapped up by the end of the year,&#8221; Wilt, speaking on the sidelines of the Future Investment Forum conference in Riyadh, said.



Sources told Reuters earlier this month that Manara, a joint venture between Ma&#8217;aden 1211.SE and Saudi Arabia&#8217;s $925 billion Public Investment Fund was closing in on a deal to buy a minority stake in Canadian miner First Quantum Minerals&#8217; Zambian copper and nickel assets.



The sources had said the Saudi company was in advanced talks to acquire between 15% and 20% equity in the Zambian assets with one of them estimating the stake at between $1.5 billion and $2 billion.



“Obviously, Africa is mineral rich with a lot of copper in the copper belt. So it just makes perfect sense, because the geographical proximity and our desire for copper to be looking in Africa,” Wilt said.



Manara has made significant investments in metals as part of Saudi Arabia&#8217;s efforts to secure minerals and expand Saudi Arabia&#8217;s mining sector.



The country&#8217;s growing mining industry is a key pillar in de-facto ruler Crown Prince Mohammed Bin Salman&#8217;s Vision 2030 programme to diversify the economy away from oil dependency.



Manara&#8217;s first major foray abroad was a deal to become a 10% shareholder in Vale&#8217;s $26 billion copper and nickel spin-off Vale Base Metals in 2023.



Wilt said copper was becoming a &#8220;top priority&#8221; for Manara because it was a base metal like aluminum that would be increasingly in demand with the energy transition.



&#8220;The niche battery metals, while important, are not as fundamental to the success of the development of the downstream, but copper is essential.&#8221;



(Reporting by Pesha Magid; writing by Maha El DahanEditing by Tomasz Janowski and Jane Merriman)

Future Investment Initiative (FII) in Riyadh

Saudi Arabia in advanced talks over Zambia copper mine stake, Ma’aden CEO 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/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-820x547.jpg" alt="" class="wp-image-548180" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view of the newly-commissioned Dangote Petroleum refinery in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



LAGOS, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s Dangote oil refinery has a stockpile of 500 million litres of petrol, its billionaire founder said, countering claims by marketers who asserted they needed to supplement Dangote&#8217;s supplies with imports to meet fuel shortages.



Nigeria&#8217;s President, Bola Tinubu, had summoned oil regulators, the head of the state-owned NNPC, the finance minister, and Aliko Dangote to a meeting in Abuja on Tuesday.



The purpose was to review a policy requiring NNPC to sell crude oil to the Dangote refinery in local naira currency in an effort to ease foreign exchange pressure and help the mega refinery secure enough crude to meet its 650,000-barrel-per-day capacity.



Following the meeting, Dangote clarified that his business is not involved in retailing petrol and he should not be blamed for fuel shortages in Africa&#8217;s top oil producing country.



He also said that keeping fuel in storage tanks is costing him money.



&#8220;I expect the NNPC and marketers to stop importing. They should come and collect; we have everything they need,&#8221; said Dangote.



Two weeks ago, local fuel traders began increasing imports, claiming that the Dangote refinery was unable to meet domestic demand, exacerbating fuel shortages.



The Dangote Oil Refinery in Lagos began processing petrol in September, initially setting out to supply 25 million litres per day. The goal is to gradually increase production to 35 million litres daily, which Dangote believes will be sufficient to meet local demand.



At an oil conference in Lagos on Monday, however, the sector regulator said Nigeria’s daily petrol demand is between 45 and 50 million litres.



In a statement issued by a government spokesperson, President Tinubu urged stakeholders to focus on supplying enough petrol for local consumption to reduce dependence on imports.



He also directed them to use Afreximbank, the financial adviser for the naira crude sale scheme, as the settlement bank for naira pricing of crude and refined products.



Dangote previously had to buy crude on the international market, but it filed a complaint saying oil majors were blocking its access to locally produced oil by selling it above market price or claiming it was unavailable, forcing the refinery to rely on expensive imports.



Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the plan to sell crude in naira would remain in place, and the government would not intervene in determining the exchange rate for the oil sector.



Nigeria aims to end the importation of petroleum products once the Dangote Refinery reaches full operational capacity.



(Reporting by Isaac Anyaogu; Editing by Lincoln Feast.)

FILE PHOTO: A view of the newly-commissioned Dangote Petroleum refinery in Ibeju-Lekki, Lagos

Dangote says refinery has 500 mln litres of petrol in storage, can meet Nigeria’s demand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-820x547.jpg" alt="" class="wp-image-548126" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Umbrella for Democratic Change (UDC) supporters leave the final rally in Tlokweng, east of Gaborone, Botswana October 29, 2024. REUTERS/Thalefang Charles</figcaption></figure>



GABORONE, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Botswana started voting on Wednesday in an election that will determine whether President Mokgweetsi Masisi secures a second term, with slowing economic growth driven by declining diamond demand the central issue.



Masisi&#8217;s Botswana Democratic Party (BDP) has governed the southern African state since 1966 and remains the favourite to win despite the party&#8217;s falling popularity. Voters elect a National Assembly, with the largest party then choosing the president.



The BDP faces a fragmented opposition with its biggest challenge coming from the Umbrella for Democratic Change (UDC), a coalition led by lawyer Duma Boko. Two other parties have put forward candidates for president.



Voting started smoothly in the capital Gaborone, with long queues outside most polling stations. Over a million people are registered to vote in the country of some 2.3 million, according to the electoral commission.



BDP supporter Penny Mogale, 35, said she was voting for a continuation of entrepreneurship programmes under Masisi which she said had helped her to start a catering business.



&#8220;There are no jobs available but the government is giving us an opportunity to create jobs for ourselves. I want the party to be given a chance to continue with these initiatives,&#8221; she said.



A 26-year-old security guard at a supermarket in downtown Gaborone said he would vote for change at the end of his shift.



&#8220;We work long hours but we earn very little and the government has been refusing to raise the minimum wage,&#8221; said Teto Mosweunyane.



The opposition UDC has pledged to more than double the minimum wage from 1,500 Botswana pula ($112) per month to 4,000 pula if it wins.



Economic issues have dominated the campaign. Although Botswana is one of the wealthiest countries per capita in sub-Saharan Africa, a decline in the global diamond market saw its economic growth forecast for 2024 slashed to 1%.



Botswana is the world&#8217;s top producer by value of diamonds and has struggled to diversify its economy.



Opposition parties have criticized Masisi for the weakening growth rate as well as high levels of inequality and unemployment, while Masisi says his plans to create jobs were disrupted by the COVID-19 pandemic but remain on track.



Masisi came to power in 2018 through a planned transition after his predecessor Ian Khama served the maximum 10 years in office. He kept the job after a 2019 poll which the BDP won.



Election results are usually announced within a few days.



($1 = 13.4409 pulas)



(Reporting by Brian Benza; Writing by Nellie Peyton; Editing by Olivia Kumwenda-Mtambo, Christina Fincher and Ros Russell)

Botswana prepares for elections

Botswana heads to the polls with diamond downturn in focus

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



LONDON, Oct 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank is prepared to use &#8220;whatever tools at our disposal&#8221; to manage inflation, its central bank chief Olayemi Cardoso said on Tuesday.



Inflation in Africa&#8217;s most populous country rose in September for the first time in three months, reaching 32.70% in annual terms, spurred by food and energy costs.



Cardoso told the FT Africa Summit in London that while he expected headline inflation to moderate in the coming months, food inflation was &#8220;proving stickier&#8221;.



He said the country &#8220;cannot tire&#8221; with its reform efforts.



(Reporting by Libby George in London; Writing by Elisha Bala-Gbogbo; Editing by Alexander Winning)

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

Nigeria ready to use all tools to manage inflation, c.bank chief says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg" alt="" class="wp-image-486141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-1536x1012.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A shopper walks past a Vodacom shop in Johannesburg, file. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 29 (Reuters) &#8211; South Africa&#8217;s Competition Tribunal blocked Vodacom&#8217;s proposed merger with fibre group Maziv on Tuesday, a blow for the ambitions of the country&#8217;s biggest mobile operator to expand its fibre footprint nationwide.



The Competition Tribunal, which makes the final ruling on deals, said in a statement that its reasons for the decision will be issued in due course.



Vodacom announced in 2021 that it would pay 6 billion rand ($339 million) in cash and in certain fibre assets valued at 4.2 billion rand for a 30% stake in a newly formed company called Maziv, the parent company of Dark Fibre Africa and Vumatel.



But last year the Competition Commission recommended to the tribunal that the proposed merger be prohibited on the grounds that it is likely to substantially prevent or lessen competition in several markets.



The commission said the conditions offered by the merger parties did not fully address the resultant harm to competition.



($1 = 17.7024 rand)



(Reporting by Nqobile Dludla; Editing by Jan Harvey)

FILE PHOTO: A shopper walks past a Vodacom shop in Johannesburg

South Africa blocks Vodacom’s proposed merger with Maziv

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-820x547.jpg" alt="" class="wp-image-547812" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo for Google is seen at a Google store in Manhattan, New York City, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photo</figcaption></figure>



LAGOS, Oct 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria based fintech Moniepoint has raised $110 million in new funding from investors including Google to scale up digital payments and banking solutions across Africa, the company said on Tuesday.



Moniepoint started operations in 2015 providing infrastructure and payment solutions for banks and financial institutions but has grown to also offer personal banking services.



The latest funding round was supported by existing investors London-based Development Partners International and private equity firm Lightrock. Google&#8217;s Africa Investment Fund and Verod Capital came in as new investors.



Sources close to the transaction said the new funding valued Moniepoint above $1 billion, giving it &#8220;unicorn&#8221; status &#8211; a term for tech firms with a valuation of a billion dollars or more.



The new capital would be used to speed up Moniepoint&#8217;s growth across Africa and build an integrated platform for businesses.



&#8220;This platform will include services such as digital payments, banking, foreign exchange (FX), credit, and business management tools, making it a one-stop shop for business solutions,&#8221; Moniepoint said.



Nigeria is the fastest growing fintech market in Africa, driven by its more than 200 million people, many who still lack access to financial services like banking.



Moniepoint started offering personal banking services in August last year.



The fintech says it processes over 800 million transactions, with a monthly value of more than $17 billion.



(Reporting by MacDonald Dzirutwe; Editing by Alison Williams)

FILE PHOTO: The logo for Google is seen at  a Google store in Manhattan, New York City, U.S.

Google among investors putting $110 million into Nigeria’s Moniepoint

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-820x547.jpg" alt="" class="wp-image-547744" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view of the newly-commissioned Dangote petroleum refinery is pictured in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



LAGOS, (Reuters) &#8211; Ghana could buy petroleum products from Nigeria&#8217;s Dangote Oil Refinery once the facility is operating at full capacity, cutting more expensive exports from Europe, the head of the country&#8217;s oil regulator said on Monday.



This could end monthly fuel imports from Europe of $400 million, Mustapha Abdul-Hamid, chairman of the National Petroleum Authority, Ghana said at the OTL Africa Downstream oil conference in Lagos.



&#8220;If the refinery reaches 650,000 bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,&#8221; Hamid said.



The Dangote Oil refinery built by Nigerian billionaire Aliko Dangote is expected to operate at&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3JC04R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">near</a>&nbsp;full capacity at the end of the year and analysts believe it could be fully operational in the first quarter of 2025.



Hamid said importing from Nigeria rather than Europe would bring down the prices of other goods and services by removing freight costs. Eventually, he said African countries would agree on a common currency that should dampen demand for dollars. Ghana&#8217;s economy, which grew by 6.9% year-on-year in the second quarter of 2024, has been driven largely by a strong expansion of the extractive sector which has boosted demand for fuel.



(Reporting by Isaac Anyaogu; Editing by Susan Fenton)

FILE PHOTO: A view of the newly-commissioned Dangote petroleum refinery is pictured in Ibeju-Lekki, Lagos

Ghana eyes fuel imports from Dangote oil refinery

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-820x547.jpg" alt="" class="wp-image-547511" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Nigerian naira notes in a market place in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



ABUJA, Oct 28 (Reuters)&nbsp;&#8211;&nbsp;The central bank of Nigeria has signed an agreement with the International Finance Corp to expand local currency financing for Nigerian businesses and cut foreign exchange risks, the agencies said in a statement on Monday.



The IFC, a World Bank Group member, aims to &#8220;significantly scale up&#8221; its financing in Nigeria, targeting over $1 billion in the coming years, the statement said.



The partnership will enable IFC to manage currency risks and increase its investments in Nigeria&#8217;s naira currency across agriculture, housing, infrastructure, energy, small and medium-sized enterprises, and the creative industry.



&#8220;Many of these sectors require local currency financing, and IFC&#8217;s partnership with the (central bank) is a key tool in expanding access,&#8221; the statement said.



(Reporting by Elisha Bala-Gbogbo; Editing by Jan Harvey)

Man counts Nigerian naira notes in a market place ahead of Nigeria’s Presidential elections in Yola

Nigeria signs funding deal with IFC to boost naira currency financing

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-820x461.jpeg" alt="" class="wp-image-547489" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">UK Finance Minister Rachel Reeves makes a speech during the Labour Party Conference that is held at the ACC Liverpool Convention Center in Liverpool, UK on September 23, 2024.  Anadolu | Getty Images</figcaption></figure>



LONDON — U.K. Finance Minister Rachel Reeves will deliver the government’s hotly awaited debut budget on Wednesday, putting to bed weeks of uncertainty over potential tax hikes and spending cuts.



The fiscal announcement — Labour’s first in almost 15 years — has been the source of much speculation, with Prime Minister Keir Starmer warning of “painful” decisions as his administration seeks to square what it says is a “black hole” in the public finances with its wider pro-growth agenda.



Reeves brought some clarity to that narrative on Thursday, by confirming that she would use her budget to announce a widely anticipated change to the U.K.’s debt rules in a bid to free up billions of pounds for investment. However, she did not specify exactly what the investment rule would change.



“We will measure debt differently. But, of course, we will put guardrails in place,” Reeves told Sky News Thursday, following her initial announcement in the Financial Times.



Reports suggest that the Treasury could target public sector net financial liabilities (PSNFL) in the U.K.’s measure of debt, rather than public sector net debt. The PSNFL measure takes in a wider account of the government’s balance sheet, including financial assets and liabilities, than public sector net debt. The Treasury declined to comment on the proposals.



In a note Friday, Goldman Sachs estimated that the changes could increase the government’s fiscal headroom by around £50 billion ($65 billion). Still, Goldman Sachs noted that the Treasury was unlikely to use all of that added leeway, and that any increase would be phased in gradually “over several years.”



“We think that the Chancellor would be very unlikely to use all the resulting fiscal space and would instead leave a much larger margin of headroom against the debt rule,” Goldman sachs said in the note.



As such, Reeves is still expected to rely heavily on a raft of tax changes to fill what she has described as a £100 billion spending gap ($129.6 billion) over the next five years. Here’s a look at what might change.



<h2 class="wp-block-heading" id="h-what-changes-to-expect"><a></a>What changes to expect</h2>



Labour has repeatedly ruled out increases to income tax, National Insurance social security payments, value-added tax (a sales levy) and corporation tax, insisting it would not renege on pledges outlined in its election manifesto.



More recently, however, the government has shifted its narrative to avoiding tax rises for “working people,” suggesting that changes for higher earners and employers could be on the table.



Starmer fanned speculation last week when he said in an interview with Sky News that people who own shares would not fall within his “definition” of working people. The Treasury later clarified that it was possible for a working person to have a small amount of shares.



The government has also failed to rule out potential changes to National Insurance tax on employers’ pension contributions, which would see business owners pay more to employ workers.



Reports suggest that Reeves could extend the freeze on personal income tax thresholds introduced by the former Conservative government. While the policy does not raise headline income tax rates, it is often dubbed a “stealth tax” as it ultimately drags workers into paying more tax as pay rises tip them into higher tax brackets.



Elsewhere, changes to inheritance tax (IHT) and capital gains tax (CGT) remain on the table as the government seeks to reduce wealth imbalances across the country. That comes even as plans to introduce new levies on Britain’s “non-doms” could be watered down amid concerns it would fail to raise revenues and instead spark a wealth exodus.



Analysts have expressed mixed views over the expected measures, noting that Reeves has a fine line to tread in balancing the books. Goldman Sachs estimated in its Friday note that the government could need to raise £25 billion annually to meet its spending targets.



“Our broad message is that Chancellor Reeves will attempt to navigate a tight set of public finances to meet her dual aims of avoiding material real term cuts in non-protected spending and to raise public investment. Tax increases will be needed to help achieve these,” Investec said in a note Thursday.



Duncan Edwards, CEO of BritishAmerican Business, warned the government against going too far with measures that could harm business.



“Raising taxes, making it more expensive to do business here, penalizing investment through raising capital gains tax and so on, looks like a strange approach to delivering that growth agenda,” Edwards told CNBC’s “Squawk Box Europe” on Friday.



<h2 class="wp-block-heading"><a></a>UK market jitters</h2>



Reeves has faced criticism for not holding the budget closer to Labour’s July 4 election, with critics saying the delay has cast a cloud of uncertainty over the economy and businesses.



Consumer confidence fell in October to its lowest level since March, when former chancellor Jeremy Hunt delivered his last budget, the fresh GfK showed Friday. Business confidence also slipped to an 11-month low this month, S&amp;P Global flash figures indicated Thursday.



Meanwhile, government borrowing costs have risen sharply as memories of former-Prime Minister Liz Truss’s catastrophic September 2022 “mini-budget” remain close to mind. U.K. bond yields climbed following Reeves’ debt rule announcement Thursday, with 10-year gilt yields hovering near a 16-week high at 4.24%. Still, analysts ruled out the possibility of a similar market meltdown.



“Is this going to be a Liz Truss moment? We don’t think so whatsoever,” Andrzej Szczepaniak, vice president of European economics at Nomura, told CNBC’s “Street Signs” on Friday.



“Actually, now the government can carve out investment,” he continued. “That’s actually fairly positive for the U.K. economy. It has a long structural underinvestment situation versus its peers in the G7.”



Such increases to infrastructure investment have been recommended by the International Monetary Fund, which on Thursday raised its growth outlook for the U.K. It now expects the economy to expand 1.1% in 2024, up from its earlier estimate of 0.7%.



“This level of endorsement to these changes will have helped contain bond market reaction and avoid a big strop-out,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, wrote in a note Friday.



— CNBC’s Sam Meredith contributed to this report.

108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906

Britain’s Labour government to deliver debut Budget this week, settling weeks of uncertainty

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-820x562.jpg" alt="" class="wp-image-547405" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-1536x1052.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JXOFZTDK5VI4ZELV27266DHJHM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers push trolleys as they shop at a Pick n Pay store at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 28 (Reuters) &#8211; South African retailer Pick n Pay, which is listing its discount grocery chain Boxer in Johannesburg through an initial public offering, said on Monday that the base size of the IPO would be towards the upper end of its guidance.



Pick n Pay previously said proceeds from the IPO could be between 6 billion rand and 8 billion rand ($339 million and $452 million).



The retailer said in a statement that the Boxer IPO would include an overallotment option, which was not expected to exceed 500 million rand and would be settled through the issuance of new shares.



An overallotment option grants the underwriter the right to sell more shares than originally planned if demand proves higher than expected. It provides price stability.



The IPO is part of Pick n Pay&#8217;s two-step recapitalisation plan for much needed cash to lower its debt and fix its loss-making core Pick n Pay supermarkets business.



The group also wants Boxer to be accorded a market value which appropriately reflects its &#8220;superior&#8221; growth and return on invested capital.



&#8220;We&#8217;ve been able to obtain unsecured committed term debt and working capital facilities for the Boxer business post the IPO&#8221; from funding partners, Group Chief Finical Officer Lerena Olivier told investors.



Boxer said it has an expected gross drawn term debt of up to 850 million rand and about 2 billion rand of working capital facility.



Pick n Pay will retain a controlling stake in Boxer, Olivier added.



The company targets a dividend pay-out ratio of 40% of Boxer group headline earnings, it said.



Boxer, with 489 stores, is South Africa&#8217;s fastest growing discount grocery chain, with about 68% market share of the discount grocery retail market.



As part of its strategy to grow, Boxer is actively pursuing store expansion, including rollouts to untapped areas, developing its suite of value-added services and expanding its supply chain with additional distribution centres where necessary to support new stores, it said.



For its 2025 financial year, Boxer forecasts turnover growth of about 10%-12%, and mid-teens growth in the next three to five years. It aims to double turnover within five years, the retailer added.



In the 26 weeks ended Aug. 25, turnover rose by 12% to 19.8 billion rand, it said, while its trading profit increased by 11.8% to 809 million rand.



($1 = 17.7137 rand)



(Additional reporting by Alexander Winning; Editing by Jacqueline Wong, Janane Venkatraman and Susan Fenton)

FILE PHOTO: Pick n Pay sales grow but warns on extra costs from power cuts

Boxer IPO in Johannesburg could raise close to $452 million for Pick n Pay

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-820x547.jpg" alt="" class="wp-image-547383" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Mokgweetsi Eric Keabetswe Masisi, President of Botswana addresses the &#8220;Summit of the Future&#8221; in the General Assembly Hall of the United Nations Headquarters in New York City, U.S., September 23, 2024. REUTERS/Caitlin Ochs/File Photo</figcaption></figure>



GABORONE, Oct 28 (Reuters)&nbsp;&#8211;&nbsp;Botswana will hold a general election on Wednesday with President Mokgweetsi Masisi competing against three challengers for a second term in the diamond-rich southern African state.



The poll could be competitive, analysts said, although a divided opposition gives the advantage to Masisi&#8217;s Botswana Democratic Party (BDP), which has ruled the country of 2.3 million people since its independence from Britain in 1966.



Botswana has enjoyed stability and relative prosperity thanks to its diamond wealth and small population, which gets free healthcare and education. It is the world&#8217;s top producer by value of the gem.



But a downturn in the diamond market has put a squeeze on revenues in the last few years, and the country has struggled to diversify its economy. Opponents say the BDP has been in power too long and accuse it of economic mismanagement and corruption, which it denies.



&#8220;Our diamonds have not been selling since April so yes, our revenues are down but the economic fundamentals still remain intact,&#8221; said Masisi at a presidential debate last week.



&#8220;We are going to continue with the projects and policies we have come up with that are aimed at putting more money and wealth into the hands of the citizens of this country,&#8221; he said.



One success of his first term was negotiating a new contract with diamond giant De Beers which will give Botswana a greater share of its rough diamonds. He also lifted a ban on elephant hunting which he says benefits rural communities, and instated an import ban on some produce items to help farmers.



His main challenger is Duma Boko of the opposition coalition Umbrella for Democratic Change (UDC).



The other candidates are Dumelang Saleshando of the Botswana Congress Party and Mephato Reatile of the Botswana Patriotic Front, backed by former President Ian Khama who quit the BDP after a feud with Masisi over scrapping the hunting ban and other issues.



Opponents have attacked Masisi&#8217;s economic record, citing rising unemployment, which stands at around 28%.



&#8220;It is not acceptable that a country such as ours which is the fifth richest per capita in Africa still has so many people living in poverty,&#8221; said Boko at the debate.



Botswana actually has the fourth highest gross domestic product (GDP) per capita of countries in sub-Saharan Africa, according to World Bank figures.



Boko has pledged to more than double the minimum wage and increase social grants, saying he would get the money by reducing wasteful spending.



The BDP has faced declining popularity but maintains a large majority in parliament, having won 38 of the 57 contested seats in 2019. The UDC won 15 seats. Voters in Botswana elect parliamentarians, who then elect the president.



Analysts said the opposition is crippled by a lack of funding.



&#8220;The playing field is not even,&#8221; said Ringisai Chikohomero, from the South Africa-based Institute for Security Studies.



After the last election the opposition claimed fraud and challenged the results at the High Court, which dismissed the case.



(Additional reporting and writing by Nellie Peyton; Editing by David Gregorio)

FILE PHOTO: World leaders attend United Nations “Summit of the Future”, in New York

Diamond-rich Botswana votes with President Masisi seeking second term

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1858" height="1045" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632.jpg" alt="" class="wp-image-547350" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632.jpg 1858w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/103308639-GettyImages-128384632-1536x864.jpg 1536w" sizes="auto, (max-width: 1858px) 100vw, 1858px" /><figcaption class="wp-element-caption">View of Iran’s oil industry installations in Mahshahr, Khuzestan province, southern Iran. Kaveh Kazemi | Getty Images</figcaption></figure>



Oil prices slid more than 4% on Monday as Israel’s strikes on Iran over the weekend were dubbed as “limited” by local media, with Citi analysts discounting chances of an escalation that disrupts oil supplies.



Futures for global crude benchmark Brent slid 4.34% to $72.75 a barrel, while U.S. West Texas Intermediate futures dropped 4.54% to $68.52 per barrel.



Israel on Saturday attacked Iran’s military installations in three provinces in response to Tehran launching ballistic missiles at Israel on Oct. 1.



Iranian News agency Tasnim reported the attack, which killed four soldiers, had inflicted “limited damages.” The strike steered clear of oil, nuclear, and civilian infrastructure locations. Local petro news network said that Iran’s oil industry operation is “underway normally” with no disruptions.



For weeks, markets had braced themselves for an Israeli retaliation as Middle East tensions have continued to rise following the attack on Israel by Iran-backed Hamas on Oct. 7 last year.



Oil markets’ key consideration had been a direct engagement between both parties, with concerns of an attack on Iranian oil facilities rising in recent weeks. Iran accounts for up to 4% of global o



“The recent Israel military action is unlikely to be seen by the market as leading to an escalation that impacts oil supply,” Citi analysts wrote in a note on Monday, cutting the bank’s Brent oil forecast by $4 to $70 per barrel over the next three months.



Oil markets are also staring at an oversupply. “With Israel deliberately, and perhaps with some American encouragement, avoiding the targeting of crude oil facilities, the oil market is back to looking at an oversupplied market,” said Andy Lipow, president at Lipow Oil Associates.



Oil production has been increasing not just in key countries such as U.S., Canada and Brazil, but even among smaller players such as Argentina and Senegal, he added.



“Oil prices will remain under pressure for the rest of this year, it may be difficult to see Brent crude oil prices reaching $80 in the foreseeable future,” Lipow told CNBC via email.



The risk premium has come off a few dollars a barrel as the more limited nature of the strikes, including avoiding oil infrastructure, have raised hopes for a de-escalatory pathway, said Saul Kavonic, an energy analyst at MST Marquee.



The spotlight now will be on whether Iran will counter the attack in the coming weeks, which would see risk premium rise again, Kavonic told CNBC, noting that the overall trend still remains one of escalation, with the scope for another round of attacks remaining high.



During a cabinet meeting on Sunday, Iranian President Masoud Pezeshkian emphasized Iran’s right to react to Israel’s attack, but maintained that they do not seek war.



“We do not seek war, but we will defend our country and the rights of our people. We will give a proportionate response to the aggression,” he said.



Market attention will turn to Hamas‑Israel and Israel‑Hezbollah ceasefire talks that resumed over the weekend, director of mining and energy commodities research at Commonwealth Bank of Australia, Vivek Dhar said.



“Despite Israel’s choice of a low‑aggression response to Iran, we have doubts that Israel and Iran’s proxies (i.e. Hamas and Hezbollah) are on track for an enduring ceasefire,” Dhar wrote in a note.

103308639-GettyImages-128384632

Oil prices slide more than 4% after Israel’s ‘limited’ attack on Iran seen as not disrupting supplies

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-820x547.jpg" alt="" class="wp-image-546353" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: IMF African Department Director Abebe Aemro Selassie listens to a question during an interview with Reuters at the annual meeting of the International Monetary Fund and the World Bank, in Marrakech, Morocco October 9, 2023. REUTERS/Susana Vera/File Photo</figcaption></figure>



NAIROBI/WASHINGTON, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;Sub-Saharan African nations that depend on commodity exports need to reform their economies to tackle patchy regional economic growth, International Monetary Fund Africa Director Abebe Aemro Selassie said.



The region is expected to grow by 3.6% this year, unchanged from last year and down from an April forecast of 3.8%, the IMF said in its latest World Economic Outlook released this week, with commodity economies lagging their diversified counterparts.



The commodity intensive countries are growing at about half the rate of the rest of the region, the IMF said in the report, with oil exporters struggling the most in what it described as &#8220;subdued and uneven&#8221; regional growth.



&#8220;South Sudan, Nigeria, Angola are all very much in that camp,&#8221; Abebe told Reuters.



While diversified economies such as Senegal and Tanzania are expected to grow at above the regional average, Nigeria will fall short, growing at 2.9%, according to the IMF&#8217;s regional economic outlook for Sub-Saharan Africa launched on Friday.



&#8220;They have had very large macroeconomic imbalances, financing challenges which have held back growth,&#8221; Abebe said.



He said the government in Nigeria needed to &#8220;squarely address&#8221; those challenges, since they had caused high inflation and put pressure on the cost of living.



President Bola Tinubu&#8217;s government has launched a series of reforms it says are aimed at lifting economic growth and attracting investment.



South Africa, whose growth has been curbed by crippling electricity blackouts, is expected to grow by 1.1% this year, the IMF said.



Armed conflicts are also weighing on growth, the IMF said, citing South Sudan&#8217;s oil exports blocked by conflict in neighbouring Sudan, which hosts the crude export pipeline.



&#8220;They (oil exporters) need to find new sources of growth, get more private sector investment &#8211; so working on reforms that will facilitate that is important,&#8221; Abebe said.



Other challenges facing African oil producers include the global transition to green fuels due to climate change, the report said.



<h2 class="wp-block-heading" id="h-small-rebound">SMALL REBOUND</h2>



Sub-Saharan Africa&#8217;s economic growth is expected to improve slightly next year to 4.2%, the IMF report said.



The report found that nearly half of the 20 fastest growing economies in the world this year were in Sub-Saharan Africa, but cautioned that faster growth rates were required to reduce widespread poverty and inequalities.



One of the main obstacles to faster growth include a lack of access to affordable financing, the IMF said, as countries struggle with heavy debt loads and high debt servicing costs.



While some countries have been able to sell bonds on international capital markets this year following a two-year hiatus caused by geopolitical shocks and elevated interest rates in advanced economies such as the United States, the new funding came at a high cost.



&#8220;The old development finance architecture is not delivering, and, if anything, kind of is in the process of disintegrating,&#8221; Abebe said, citing &#8220;very problematic levels&#8221; of official bilateral funding for poor countries.



For countries such as Kenya, where deadly anti-tax hikes protests in June forced the government to withdraw its finance bill for this fiscal year, such development assistance from overseas has been falling in recent years, a senior U.N. official told Reuters.



The solutions lay in ensuring that poor nations continue to access low-priced development financing from bilateral and multilateral lenders, Abebe said.



&#8220;We need also to find ways in which when countries are facing liquidity rather than solvency challenges, more financing can be made available for them to support reforms so they can move on to better times,&#8221; he said.



(Reporting by Duncan Miriri and Karin Strohecker; Graphics by Sumanta Sen; Editing by Alison Williams)

FILE PHOTO: IMF African Department Director Selassie at interview with Reuters during International Monetary Fund and the World Bank meeting in Marrakech

IMF urges African oil exporters’ reforms to boost ‘subdued’ growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-820x550.jpg" alt="" class="wp-image-546297" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-1536x1030.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of the Reserve Bank of Zimbabwe (RBZ)&#8217;s head office in Harare, Zimbabwe, July 17, 2024. REUTERS/Philimon Bulawayo</figcaption></figure>



JOHANNESBURG, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s consumer inflation surged to 37.2% month on month in October in local currency terms,&nbsp;data&nbsp;showed on Friday, after a&nbsp;sharp&nbsp;devaluation in the southern African country&#8217;s currency.



Zimbabwe&#8217;s central bank allowed the local gold-backed currency to fall over 40% in late September, to 24.3902 to the U.S. dollar. The currency has since fallen further, to 27.6880 to the dollar as of Friday, according to the central bank&#8217;s website.



In September, before the devaluation, consumer inflation was at 5.8% month on month in local currency terms.



The ZiG, which stands for Zimbabwe Gold, is Zimbabwe&#8217;s sixth attempt at a stable currency in 15 years after a bout of hyperinflation under leader Robert Mugabe. It was launched in April.



(Reporting by Tannur Anders; Additional reporting by Nyasha Chingono; Editing by Alexander Winning)

A general view of the Reserve Bank of Zimbabwe (RBZ)’s head office in Harare

Zimbabwe inflation surges after currency devaluation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="604" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-820x604.jpg" alt="" class="wp-image-546279" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-820x604.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-300x221.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-768x566.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-1536x1131.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Daniel Chapo, presidential candidate of the ruling Frelimo party casts his vote during the general elections at Inhambane, in the southern Mozambique, October 9, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



MAPUTO, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s ruling party Frelimo has retained power in this month&#8217;s national election, extending its five-decade rule in the Southern African state as the opposition accused it of fraud.



Frelimo&#8217;s Daniel Chapo, 47, will succeed President Filipe Nyusi to become Mozambique&#8217;s fifth president since its independence from Portugal in 1975. Nyusi is stepping down after serving the maximum two terms.



Chapo won over 70% of votes, the electoral commission said on Thursday. Venancio Mondlane, backed by the Podemos party, came second with 20% of votes, displacing former rebel movement Renamo, which had been the official opposition party but whose candidate came third this time around.



In the parliament, Frelimo increased its number of seats to 195 out of 250, more than the 184 it had before.



Observers have said the Oct. 9 election was not free and fair. A European Union mission reported irregularities during counting and alteration of results at the local and district level, problems which have marred most polls since Frelimo first allowed multi-party elections in 1994.



The electoral commission has declined to comment on allegations of vote-rigging. A Frelimo spokesperson did not reply to requests for comment.



Shortly after Chapo was declared winner, Mozambique&#8217;s sole dollar bond, maturing in 2031, fell for a fourth day, TradeWeb data showed as investors assessed the risk of unrest. 



Mondlane, who holds sway over many of the country&#8217;s young voters and claims he is the true election winner, has already called for nationwide protests on Thursday and Friday. Groups of protesters started to gather in the capital Maputo after the result was announced.



Police on Monday used teargas and gunfire to disperse opposition supporters protesting the murder of a Podemos lawyer and party official two days earlier, raising tensions.



Chapo, a lawyer, is seen as a business-friendly choice who analysts say is likely to maintain the status quo, including a fight against Islamist insurgents in the north and partnerships with companies like Exxon Mobil and TotalEnergies, which are trying to get major gas projects off the ground.



The country of nearly 35 million people is struggling with a large debt burden and worsening climate shocks, including drought and cyclones.



(Additional reporting by Siyabonga Sishi and Siphiwe Sibeko in Maputo, Bhargav Acharya and Tannur Anders in Johannesburg, and Libby George in London;Writing by Nellie Peyton;Editing by Alexander Winning and Aurora Ellis)

FILE PHOTO: Frelimo candidate Daniel Chapo casts his vote

Mozambique’s ruling party retains power in contested 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/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-820x547.jpg" alt="" class="wp-image-546260" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/2WVNT2DZKNM3JC4HV2CAJRSE2A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of molten copper at Anglo American&#8217;s smelter in Chagres, Chile, obtained by Reuters on April 26, 2024. Anglo American/Handout via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;The speed at which Anglo American shifts to becoming a copper-focused miner may well dictate its ultimate fate &#8211; survival as an independent operator, or absorption by a bigger rival such as BHP Group, which earlier this year failed to buy the group.



BHP walked away from a $49 billion bid to acquire Anglo in May after it was rebuffed three times. With a six-month block on another approach set to expire at the end of November, a deal is again under scrutiny.



Anglo was able to convince investors during BHP&#8217;s approach that it had a better plan to grow value, focused on shedding underperforming platinum, diamonds and coal to focus on copper, a metal key for the energy transition.



If that succeeds, the higher value that comes with copper assets may help keep Anglo safe, one portfolio manager at a Cape Town fund manager said.



But the longer it takes to achieve a transformation, the more likely it is that investors will be tempted by another bid.



Investors with shares in both companies told Reuters that even though they expect BHP CEO Mike Henry to renew his pursuit for the London-listed miner, the timing and even the rationale for such an approach could be shaped by whether Anglo can grow beyond the grasp of cash-rich rivals.



Anglo CEO Duncan Wanblad is rushing to sell coking coal mines in Australia and nickel assets in Brazil while spinning off platinum mines in South Africa. The company is also weighing whether to sell or separately list its De Beers diamonds unit.



Anglo&#8217;s world-class copper assets in Latin America are the prize for rivals seeking increased exposure to copper.



But its copper mines are still dogged by operational issues. On Thursday, it said copper output declined 13% in the third quarter, though the company remains on course to meet this year&#8217;s output guidance of 730,000 tons to 790,000 tons.



Anglo declined to comment. BHP did not respond to emailed requests for comment.



<h2 class="wp-block-heading" id="h-choosing-the-moment">CHOOSING THE MOMENT</h2>



Anglo&#8217;s shares rose as much as 4.3% in London on Monday amid a broad uptick in mining stocks, but have shed most of the premium they added in the wake of BHP&#8217;s approach.



If Anglo&#8217;s valuation takes time to catch up with its restructuring, it could present a golden opportunity for BHP.



According to a source at a top investor in both companies, a restructured Anglo creates more value for BHP, which is still wary of the risks associated with absorbing South African assets.



&#8220;If I was BHP, I would say let Anglo do most of the heavy lifting, the restructuring it promised it will do by end 2025,&#8221; the source told Reuters.



Any potential new bid should come when some of the restructuring is expected to completed by June or July next year, they added.



BHP may have to wait until Anglo spins off its platinum business by mid-2025 to make the deal less complex, UBS Group analysts said. &#8220;We expect Anglo to re-rate as the group simplifies,&#8221; UBS said. &#8220;If not, we see potential for another takeover approach.&#8221;



Christiaan Bothma, an investment analyst at Johannesburg-based money manager Sanlam Private Wealth, which has shares in both companies, told Reuters it would &#8220;make sense&#8221; for BHP to wait for Anglo to do the asset separation for them.



But he added: &#8220;The counter argument to this would be if they wait (too) long, Anglo&#8217;s valuation premium may be too high or iron ore prices too low (BHP&#8217;s primary currency).&#8221;



(Reporting by Felix Njini in Johannesburg, Editing by Veronica Brown, Pratima Desai and Jan Harvey)

FILE PHOTO: A general view of molten copper at Anglo American’s smelter in Chagres

Can Anglo’s copper pivot help thwart renewed takeover bid?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-820x547.jpg" alt="" class="wp-image-546212" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MSJ5YKFIENLXFNSFEOJVDGTYHY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Governor of the South African Reserve Bank, Lesetja Kganyago, gestures during an interview with Reuters in Centurion, South Africa April 3, 2024. REUTERS/James Oatway/File Photo</figcaption></figure>



WASHINGTON, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand has further room to strengthen if the government in Pretoria pushes ahead with reforms and prudent policies, the country&#8217;s&nbsp;central bank chief&nbsp;Lesetja Kganyago told Reuters.



The currency of Africa&#8217;s most industrialized nation has been a top emerging market performer, strengthening some 2.5% against the U.S. dollar, since the start of the year while most of the rand&#8217;s peers have suffered losses against the greenback.



&#8220;There should be positive momentum and that positive momentum is not going to be something just driven by the markets,&#8221; Kganyago, the governor of the South African Reserve Bank, said in an interview on Thursday on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington.



&#8220;It&#8217;s going to be whether government continues to act with resolve and stays the path in terms of prudent policies and structural reforms going forward,&#8221; he said, adding that momentum for reforms would not just bolster the currency but could also support the country&#8217;s bonds and stocks.



South Africa&#8217;s National Treasury announced over the summer a number of reforms in the energy, freight, water, and telecommunications sectors, and has pledged to reduce spending and raise revenue as well as take further steps to lower borrowing over the medium-term period.



The rand has enjoyed broad gains since the African National Congress was forced to forge alliances with other political parties after failing to win a parliamentary majority in an election in May &#8211; its first such defeat since the 1994 election that marked the end of white minority rule and apartheid.



&#8220;If you restore investor or consumer confidence, it&#8217;s like a free stimulus for you,&#8221; he said.



Asked about efforts by South African policymakers to lower the inflation target from the current 3%-6% range, Kganyago said work was underway between the National Treasury and the central bank on arriving at the target, and he was hopeful the process would be concluded next year.



&#8220;Where there is absolutely no disagreement on is that the target must be lower. But how far lower?&#8221; he said, adding that the out-of-line target meant the country was losing competitiveness.



(Reporting by Karin Strohecker; Editing by Paul Simao)

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