<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="509" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS.jpg" alt="" class="wp-image-452347" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS-768x489.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">The logo of commodities trader Glencore is pictured in front of the company&#8217;s headquarters in Baar, Switzerland, November 20, 2012. REUTERS/Arnd Wiegmann/File Photo</figcaption></figure>



LUSAKA, Feb 2 (Reuters)&nbsp;&#8211;&nbsp;Zambia has agreed to restructure a $1.5 billion debt owed by Mopani Copper Mines to Glencore, which arose from its acquisition of Mopani in 2021, state-owned mining firm ZCCM-Investment Holdings (ZCCM-IH)&nbsp;ZCCM.LZ&nbsp;said on Friday.



Last November, Zambia picked the United Arab Emirates&#8217; International Resources Holdings (IRH) as the new strategic equity investor in Mopani, to take up a 51% stake in return for a $1.1 billion capital injection. IRH&#8217;s interest in Mopani will be held through its wholly-owned subsidiary, Delta Mining Ltd.



As part of the deal, IRH, a unit of Abu Dhabi&#8217;s most valuable listed company, International Holdings Company (IHC), will provide $400 million as a shareholder loan towards clearing Mopani&#8217;s debt. Of that, $300 million is earmarked for the Glencore debt and the remaining $100 million will be used to settle third-party letters of credit secured by Glencore for Mopani.



&#8220;The effect of this is that the gross debt owed by Mopani to Glencore &#8230; will be replaced by the above shareholder loan owed to Delta of up to $400 million, resulting in an overall net reduction in Mopani debt of over $1.2 billion,&#8221; ZCCM-IH said.



Glencore was not immediately available to comment.



Mopani and Glencore also agreed on a royalty agreement which will see the global commodities giant receiving an unspecified share of Mopani&#8217;s profit in the event that the copper price exceeds $12,000 per ton.



ZCCM-IH said &#8220;the relationship between Glencore and Mopani will be restructured&#8221; following the agreed settlements and &#8220;there shall be no indebtedness between Glencore and Mopani&#8221;.



IRH&#8217;s investment will provide funding to support Mopani&#8217;s target to raise its output to 200,000 tons of copper annually in the next three years, ZCCM-IH said.



The miner produced 72,694 metric tons of copper in 2022, down from 87,618 metric tons in 2021.



(Reporting by Chris Mfula; Editing by Nelson Banya and David Evans)

FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company’s headquarters in Baar

Zambia to restructure $1.5 bln Glencore debt with new Mopani investor

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-820x462.jpeg" alt="" class="wp-image-452310" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107308670-1695930955313-gettyimages-1478432952-118.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Gold purchases from central banks led to last year’s surge, with purchases exceeding 1,000 tons for two consecutive years. Traffic_analyzer | Istock | Getty Images</figcaption></figure>



Gold demand hit record highs in 2023 as persistent geopolitical tensions and weakness in China’s economy pushed investors toward the safe haven asset, the World Gold Council said in report.



Total gold transactions stood at 4,899 tons last year compared with 4,741 tons in 2022, inclusive of over the counter deals as well as stock flows that reflect changes to inventories on commodity exchanges.



Unlike trading conducted by an exchange, OTC transactions take place directly between two parties.



The biggest drivers of gold demand in 2023 were the Russia-Ukraine war and Israel-Hamas conflict as well as the slowdown in China’s economy — and these could continue boosting the metal’s prices well into 2024, said Shaokai Fan, head of central banks at WGC.&nbsp;



Prices hit an all-time high of $2,100 an ounce in December as central banks as well as retail investors increased purchases of gold — central bank purchases have exceeded 1,000 tons for two consecutive years. 



“2023 was the second highest year in history of central bank gold buying, within a hair’s breadth of the record high in 2022,” Fan told CNBC in a Zoom interview.&nbsp;



The report showed that the People’s Bank of China was the biggest buyer of gold at 225 tons last year, bumping up its stock to 2,235 tons.



“If you as an individual will see that your own central bank is buying large amounts of gold, you’re at the very least more aware of gold … Or maybe you’re even influenced by the fact that your central bank is buying a lot of gold, you may think of gold as a personal&nbsp;investment as well,”&nbsp; Fan said.&nbsp;



China’s real estate crisis has also pushed more investors toward gold, he highlighted.



China Evergrande, once among the country’s largest property developers, was ordered by a Hong Kong court to liquidate after the company failed to reach an 11th-hour deal over the weekend to restructure.



The country’s investments in gold bars and coins rose 28% from 2023 and stood at 280 tons last year.



“Chinese investors are worried about the future of other asset classes, and they’re turning to gold as a way to protect their investment portfolios,” Fan said. Gold has actually done very well in renminbi terms, and very well compared to other asset classes in China.”&nbsp;



<h2 class="wp-block-heading" id="h-gold-jewelry-purchases"><a></a>Gold jewelry purchases</h2>



Data from the World Gold Council showed that&nbsp;China dethroned India as the world’s largest gold&nbsp;jewelry buyer in 2023.&nbsp;



People in China bought 603 tons of gold Jewelry in 2023, a 10% increase from the previous year.&nbsp;



This was largely due to a rise in weddings that were postponed after the economy reopened from the pandemic in late 2022, Fan noted. 



He&nbsp;elaborated that gold purchases could rise further as the Lunar New Year approaches, and according to Asian folklore, the upcoming Year of the Dragon is a good year to have children.&nbsp;



“More babies will generally [cause] a positive impact on gold demand,” Fan said, but warned that China’s gold demand could fall after the first quarter of 2024.&nbsp;



Apart from rising gold prices and a slowdown in economic growth, this year is predicted to be a less auspicious year for marriages, the WGC report said.&nbsp;India too will have just 16 auspicious wedding dates in the first quarter, compared with 28 last year.



Gold Jewelry purchases fell by 6% in 2023 to 562 tons from the previous year due to the country’s price sensitive market, Fan said.



<h2 class="wp-block-heading"><a></a>2024 outlook&nbsp;</h2>



Gold purchases this year are unlikely to meet 2023 levels, but a fall in inflation could prevent a drastic drop in demand, WGC said.&nbsp;



“Should inflation drop significantly consumers might start to feel wealthier in real terms, which could mitigate some of the drop in demand.” 



Inflation in the U.S. came in at 3.3% on a 12-month basis in 2023, still above the Federal Reserve’s 2% target, with Fed Chairman Jerome Powell saying Wednesday that the U.S. Federal Reserve was unlikely to cut interest rates in March.



The announcement triggered a 3% fall in gold prices which stood at $2,064 during Asia’s Thursday morning trading session.



“During periods of persistent strong hyperinflation, gold does very well. But during moderate inflationary periods, gold can go either way. It might be determined by other factors as well,” Fan said.

107308670-1695930955313-gettyimages-1478432952-118

Gold demand hit record highs in 2023 amid geopolitical risks, China weakness

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1804152399-820x547.jpg" alt="" class="wp-image-452135" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1804152399-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1804152399-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1804152399-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1804152399-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1804152399-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1804152399-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Lewis Hamilton of Mercedes before group photo ahead of the Formula 1 Abu Dhabi Grand Prix at Yas Marina Circuit in Abu Dhabi, United Arab Emirates on November 26, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)</figcaption></figure>



Seven-time Formula 1 world champion Lewis Hamilton is on the cusp of a surprise move from Mercedes to Ferrari for the 2025 season, according to multiple media reports.



Both Sky Sports and BBC Sport reported on the news and suggested that formal confirmation could come as early as Thursday. ESPN, meanwhile, cited sources within Formula 1 as saying the deal was “as good as done.”



CNBC was not able to independently verify the reports.



Mercedes declined to comment when contacted by CNBC. A spokesperson at Ferrari was not immediately available to comment.



A move to Ferrari, one of the most iconic teams in the history of motorsport, would bring an end to a remarkably successful partnership. Hamilton first signed with Mercedes in 2013 and went on to win six of his seven world titles with the team between 2014 and 2020.



The prospect of Hamilton joining Ferrari has been the subject of intense speculation over recent years, although Hamilton has previously said he intends to stay with Mercedes for the rest of his life.



In August of last year, Hamilton signed a new two-year deal with Mercedes to keep him on board through the 2025 season, although it’s not clear whether the contract included an exit clause.



Mercedes team principal Toto Wolff described the team’s partnership with Hamilton at the time as “one of the most successful in the sport’s history” adding that it was “always a formality” they would continue with “F1′s biggest global star.”



If Hamilton were to leave Mercedes for Ferrari, it is reported he would likely replace Ferrari’s&nbsp;Carlos Sainz given that&nbsp;his teammate, Charles Leclerc,&nbsp;recently signed a fresh contract extension.



The start of the next Formula 1 season gets underway in Bahrain from Feb. 29.

F1 Abu Dhabi Grand Prix 2023

Formula 1 star Lewis Hamilton to leave Mercedes and join Ferrari in shock move: Reports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-820x542.jpg" alt="" class="wp-image-452096" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/VD3Z4T2SLNI6BBBICXVUAKWUBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., on March 19, 2019. REUTERS/Leah Millis/File Photo</figcaption></figure>



LONDON, Feb 1 (Reuters)&nbsp;&#8211;&nbsp;Major central banks stood pat on interest rates in January, as the much anticipated change of course in the global monetary policy draws closer while emerging market peers ploughed on with rate cuts.



January saw five of the central banks overseeing the 10 most heavily traded currencies &#8211; the U.S. Federal Reserve, the ECB, the Bank of Japan, Bank of Canada and Norges Bank &#8211; hold rate setting meetings with none changing rates. That follows on from eight meetings in December where only Norway hiked.



&#8220;Interest rates are set to remain front and centre in 2024,&#8221; Philip Shaw at Investec said in a research note. &#8220;However, in a departure from the last two years, now the question is not how far central banks will raise rates, but when and how far they will cut.&#8221;



Fed chair Jerome Powell on Wednesday delivered a sweeping endorsement of the U.S. economy&#8217;s strength and said the next rate move would be lower. But he also pushed back against markets betting on a move as soon as March, with expectations now anticipating a first Fed cut in May.



Meanwhile, emerging economies &#8211; which have been frontrunning both the tightening and the easing cycle &#8211; ploughed on with rate cuts.



Five of the Reuters sample of 18 central banks in developing economies cut rates in January &#8211; matching the December number which had been the highest number in at least three years. Across the Reuters markets sample, 12 central banks held rate setting meetings last month.



Policy makers in Brazil, Hungary, Colombia and Chile all extended their easing push, while Israel joined the fray, delivering the first rate cut in four years. The moves brought the January rate cut tally to 275 basis point &#8211; the biggest monthly total since May 2022.



Turkey was the sole outlier in January, delivering another 250 bps rate hike to shore up its battered currency and tackle sticky inflation, though the central bank said it had now completed its aggressive tightening cycle.



Analysts predicted that monetary easing would continue to broaden out in the months ahead.



&#8220;Mexico&#8217;s central bank will probably be the next to cut rates later this quarter, and many Asian central banks will join the fray in April and May, which is sooner than most expect,&#8221; said William Jackson at Capital Economics in a note to clients.



(Reporting by Karin Strohecker and Sumanta Sen; Editing by Andrew Heavens)

FILE PHOTO: Federal Reserve Board building is pictured in Washington

Major central bank rates plateau in January ahead of expected cuts

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



Feb 1 (Reuters)&nbsp;&#8211;&nbsp;Emerging market currencies were range-bound against a firm dollar on Thursday after Federal Reserve Chair Jerome Powell pushed back against hopes of an early rate cut, while stocks edged higher as investors digested mixed business activity data from the region.



MSCI&#8217;s index of emerging market (EM) currencies&nbsp;.MIEM00000CUS&nbsp;was muted at 0922 GMT, while the dollar&nbsp;=USD&nbsp;held close to its highest level since mid-December.



The Fed held rates steady late Wednesday, as widely expected, but Powell, at a conference following the decision, said a rate cut at the March meeting was unlikely, leading investors to shift bets of the first cut to May.



&#8220;Markets have a tendency of being impatient when waiting for major central banks led by the Fed to start monetary policy easing after being hooked over many years&#8230;to low-interest rates,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



&#8220;This explains why investors ended up disappointed with remarks from Chair Powell. Consequently, the dollar is broadly stronger and EM currencies are weaker.&#8221;



The South African rand&nbsp;ZAR=&nbsp;slipped 0.1% against the dollar, and the Israeli shekel&nbsp;ILS=&nbsp;moved 0.2% lower.



Asian currencies were mixed with China&#8217;s yuan&nbsp;CNY=CFXS&nbsp;down 0.2% versus the dollar.



A gauge of regional stocks&nbsp;.MSCIEF&nbsp;rose 0.4% after two straight days of losses.



EM assets started 2024 on a sour note, logging declines in January due to uncertainty around the timing of U.S. interest rate cuts and fresh evidence of China&#8217;s uneven economic growth.



China&#8217;s blue-chip index .CSI300 closed up 0.1% on Thursday after a private-sector survey showed the country&#8217;s factory activity expanded modestly in January. Hong Kong&#8217;s Hang Seng .HSI gained 0.5%.



South Korean shares .KS11 advanced 1.8% following data which showed domestic factory activity expanded in January for the first time in 19 months.



Indian shares .NSEI, .BSESN lost momentum after the government presented its last budget before a national election due by May. The country&#8217;s factory activity expanded at its fastest pace in four months in January.



In other news, Pakistan&#8217;s election panel has summoned top security officials for a meeting on Thursday to discuss increasing violence in the country&#8217;s western provinces ahead of next week&#8217;s national election.



(Reporting by Amruta Khandekar: Editing by Tasim Zahid)

istockphoto-1076949610-612×612-1

Currencies meander after Fed rate cut pushback, PMIs in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-820x615.jpg" alt="" class="wp-image-452045" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: West African leaders gather for Economic Community of West African States (ECOWAS) Head of States and Government meeting in Abuja, Nigeria August 10, 2023. REUTERS/Abraham Achirga/File Photo</figcaption></figure>



DAKAR, Jan 31 (Reuters)&nbsp;&#8211;&nbsp;Mali&nbsp;said on Wednesday it was not planning to leave West Africa&#8217;s currency zone while Burkino Faso indicated it would do so after they and Niger announced their withdrawal from the region&#8217;s political bloc in protest.



In a blow to hard-fought regional integration, the three military-led nations, among the world&#8217;s poorest, are planning to quit the 15-member Economic Community of West African states (ECOWAS) after being criticised for their respective coups.



That has left uncertain their future in the eight-nation West African Economic and Monetary Union (UEMOA or WAEMU) which uses a common currency, the CFA franc, pegged to the euro.



Asked whether Mali planned to leave UEMOA, Foreign Minister Abdoulaye Diop told Reuters: &#8220;Mali is withdrawing from ECOWAS but remains a member of UEMOA.&#8221;



Speaking separately about their decision to leave ECOWAS, Burkina Faso&#8217;s military leader Ibrahim Traore said a departure from the monetary union was on the cards.



&#8220;This means that in some time you will tackle the currency, which is the CFA?&#8221; journalist Alain Foka asked Traore in a video posted on his YouTube channel. &#8220;Probably,&#8221; Traore replied.



Mali, Burkina Faso and Niger are all ruled by military officers who seized power in coups since 2020 and have resisted ECOWAS&#8217; and other outside pressure to restore democracy.



The three countries, battling insurgencies from militants linked to al Qaeda and Islamic State, have created a new pact known as the Alliance of Sahel States and declared their intention to strengthen political, economic and monetary union.



Critics of the CFA franc see it as a relic of French colonialism while proponents say it has provided financial stability in a turbulent region.



Moody&#8217;s ratings agency said economic growth was at risk.



&#8220;While not our baseline expectation, an exit from WAEMU would be much more detrimental to sovereigns leaving the monetary union because of the credit support that WAEMU membership provides in terms of macroeconomic stability and reduced external vulnerability,&#8221; it added.



The ECOWAS region&#8217;s trade and services flows are worth nearly $150 billion a year.



(Reporting by Giulia Paravicini and Bate Felix; Writing by Bhargav Acharya and Nellie Peyton; Editing by Tom Hogue and Andrew Cawthorne)

Burkina may quit West African currency union, but not Mali

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="806" height="600" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1.png" alt="" class="wp-image-417481" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1.png 806w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1-300x223.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1-121x90.png 121w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/Multichoice-logo-1-768x572.png 768w" sizes="auto, (max-width: 806px) 100vw, 806px" /></figure>



JOHANNESBURG, Feb 1 (Reuters)&nbsp;&#8211;&nbsp;Vivendi&#8217;s&nbsp;VIV.PA&nbsp;Canal Plus has offered to buy all the shares it does not own in South Africa&#8217;s MultiChoice Group&nbsp;MCGJ.J&nbsp;&#8211; a deal worth roughly $1.7 billion and one that it says would help the pay TV company thrive in a competitive international market.



Canal Plus, the top shareholder in MultiChoice with a 31.67% stake according to LSEG data, said it would likely pay 105 rand in cash per share, a 40% premium to MultiChoice&#8217;s closing share price on Wednesday.



Shares in MultiChoice surged more in Thursday morning trade but were still far below the offer price indicating a lack of investor confidence that the deal would definitely go through. They were last up 23% at 92 rand.



Canal Plus said its current offer, worth 31.7 billion rand according to Reuters calculations, is non-binding and indicative and that once due diligence has been completed, it intends to deliver a letter of firm intention to MultiChoice&#8217;s board.



MultiChoice, which operates in 50 countries in sub-Saharan Africa, said it has received a letter from the French media company and would update shareholders should there be any further developments.



&#8220;For MultiChoice to continue to thrive in Africa it will require a strategy that enhances its scale as well as strengthened local and global expertise. Our potential offer, if successful, would be an important next step for MultiChoice to realise its full potential,&#8221; Maxime Saada, chairman and CEO of Canal Plus, said in a statement.



MultiChoice has over the years invested billions of rand to fight off competition from international streaming giants such as Netflix&nbsp;NFLX.O, Amazon&nbsp;AMZN.O&nbsp;and Disney&nbsp;DIS.N. Netflix, for example, has also been investing in local content.



Saada added that the deal would give MultiChoice the resources to invest in scale, local African talent and stories.



As part of MultiChoice&#8217;s efforts to fight off competition, it partnered last year with Comcast&#8217;s&nbsp;CMCSA.O&nbsp;NBCUniversal and Sky to revamp MultiChoice&#8217;s existing Showmax streaming service, which now offers LIVE Premier League content.



Canal Plus also said that it actively plans to list following proposals by parent company Vivendi to split into four entities and ultimately would like to also list in South Africa.



($1 = 18.7137 rand)



(Reporting by Nqobile Dludla; Additional reporting by Disha Mishra in Bengaluru; Editing by Edwina Gibbs)

Multichoice logo (1)

Vivendi’s Canal+ submits offer to acquire South Africa’s Multichoice

<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/HU3MKIDLCRMEBMPYFQ4XMM6YFM-820x547.jpg" alt="" class="wp-image-451804" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Signage is seen outside the Moody&#8217;s Corporation headquarters in Manhattan, New York, U.S., November 12, 2021. REUTERS/Andrew Kelly</figcaption></figure>



JOHANNESBURG, Jan 31 (Reuters) &#8211; The decision of Burkina Faso, Mali and Niger to exit the Economic Community of West African States (ECOWAS) could hinder the bloc&#8217;s economic growth, Moody&#8217;s ratings agency said on Wednesday.



It would be much more detrimental if they also decided to leave the West African Economic and Monetary Union (WAEMU), though that was not expected, the agency added.



The three junta-led countries announced on Sunday that they were planning to leave ECOWAS, the region&#8217;s main economic and political bloc. Their position on also leaving the monetary union has not been made clear.



&#8220;The three countries&#8217; departures would disrupt the economic integration that is ECOWAS&#8217; raison d&#8217;etre and weigh on business confidence, potentially hindering the bloc&#8217;s economic growth,&#8221; said Moody&#8217;s in a statement.



&#8220;While not our baseline expectation, an exit from WAEMU would be much more detrimental to sovereigns leaving the monetary union because of the credit support that WAEMU membership provides in terms of macroeconomic stability and reduced external vulnerability,&#8221; it added.



Mali&#8217;s foreign minister on Wednesday told Reuters that Mali would remain a member of the eight-nation monetary union, which uses the West Africa CFA franc currency pegged to the euro.



However, in an interview shared by the three Sahel states information service on Wednesday, Burkina Faso&#8217;s military leader Ibrahim Traore said that they would &#8220;probably&#8221; leave the currency zone.



Such an exit would be credit negative for the West African Development Bank, the monetary union&#8217;s development bank, because Burkina Faso, Mali and Niger accounted for 17% of its paid-in capital and 35% of its loan portfolio at the end of 2022, said Moody&#8217;s.



(Reporting by Rachel Savage; Writing by Nellie Peyton; Editing by Andrew Heavens and Emelia Sithole-Matarise)

Signage is seen outside the Moody’s Corporation headquarters in Manhattan, New York

Moody’s: West African countries’ exit from regional bloc could hinder growth

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Jan 31 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks fell on Wednesday as dismal factory activity data from China added to worries about its economic woes while most currencies were subdued in the run up to the Federal Reserve&#8217;s interest rate decision.



MSCI&#8217;s index of emerging market (EM) equities&nbsp;.MSCIEF&nbsp;was down 0.5% by 0957 GMT, while a gauge of regional currencies&nbsp;.MIEM00000CUS&nbsp;was flat against a firm dollar&nbsp;=USD.



Both EM stocks and currencies were set to end the first month of 2024 with their biggest monthly percentage drop since August as reduced bets of U.S. interest rate cuts and fresh concerns about China&#8217;s faltering economy sapped risk appetite.



Equities in mainland China .CSI300 and Hong Kong .HIS shed 0.9% and 1.4% on Wednesday after data showed China&#8217;s manufacturing activity contracted for the fourth straight month in January.



The blue-chip index&nbsp;.CSI300&nbsp;was headed for its sixth straight month in the red.



The Fed&#8217;s policy decision, due at 1400 ET (1900 GMT), followed by commentary from Fed Chair Jerome Powell, is a key catalyst for the dollar and emerging markets as it will shape expectations for the timing of U.S. rate cuts.



Investors have pushed back expectations of the first rate cut from March to May given evidence of resilience in the U.S. economy.



&#8220;If Powell is more decisive than last time in pushing back against the rather ambitious expectations for this year, then the dollar should benefit again,&#8221; said Michael Pfister, FX analyst at Commerzbank in a note.



Among currencies, the South African rand&nbsp;ZAR=&nbsp;firmed 0.5% against the dollar.



The Turkish lira TRYTOM=D3 was flat at 30.359 against the dollar. Data showed the country&#8217;s foreign trade deficit narrowed 3.2% year-on-year to $105.99 billion in 2023 while tourism revenues hit a record high.



In other news, Asian central banks may see scope to loosen monetary policy later this year as inflation moderates, the International Monetary Fund said on Wednesday.



Data showed Taiwan&#8217;s trade-dependent economy grew faster than expected in the fourth quarter. The Taiwan dollar TWD=TP was down 0.3%.



&#8220;We believe the tech-export recovery and Taiwan&#8217;s place in the AI-related supply chain are likely to provide additional lift in 2024,&#8221; Barclays analysts said in a note.



(Reporting by Amruta Khandekar; Editing by Andrew Cawthorne)

Stock market report. 3d illustration

Stocks, FX set for monthly losses; Fed rate verdict 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/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg" alt="" class="wp-image-428778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. Picture taken September 10, 2018. REUTERS/Afolabi Sotunde/Illustration/File Photo</figcaption></figure>



ABUJA, Jan 31 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s naira dropped to a record low against the dollar on the official market on Tuesday, FMDQ Exchange data showed on Wednesday, slipping below rates on the unofficial parallel market in intra-day trades.



The naira fell as low as 1,531 to the dollar during trading on Tuesday, FMDQ data showed, compared with 1,460 naira quoted on the parallel market. The currency later closed at 1,482.57 naira on the official market, according to FMDQ.



The latest fall occurred after market regulator FMDQ OTC Securities Exchange said its methodology for calculating closing rates on the currency was revised last Friday to include more data, and that the levels on its computation had changed.



The naira has lost around 40% since the start of the year. Its official exchange rate has been drifting towards the parallel market level as foreign currency shortages in the West African nation funnel demand to unofficial sources.



The central bank has warned lenders about underreporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.



On Wednesday the currency eased on the forwards market, with traders quoting the dollar as low as 1,650 in a year&#8217;s time.



(Reporting by Chijioke Ohuocha; Editing by Jan Harvey)

FILE PHOTO: Nigerian naira banknotes are seen in this picture illustration

Nigerian naira hits record low of 1,531 to dollar on official market – FMDQ

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-820x547.jpg" alt="" class="wp-image-451705" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast, January 30, 2020.REUTERS/Luc Gnago</figcaption></figure>



LONDON/JOHANNESBURG, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;The African Development Bank (AfDB) has sold its long-awaited hybrid capital note, the first financing of its kind for multilateral development banks, which are under increasing pressure to find ways to boost their lending.



The G20 group of major economies has urged multilateral lenders to explore hybrid financing structures, to try to maximise balance sheets and increase funding to help developing economies with crises including climate change.



The $750 million perpetual hybrid note has a 5.75% coupon, tighter than the 6.375% guidance. The deeply subordinated, debt-like equity instrument has a lower credit rating than the lender&#8217;s AAA-rated bonds and can be redeemed by investors after 10.5 years or every five years thereafter.



&#8220;This is not a one-off transaction, it is definitely one of many more transactions to come,&#8221; said Hassatou N&#8217;Sele, VP Finance and Chief Financial Officer for the AfDB Group, declining to give more details on future issuance plans.



&#8220;We are establishing hybrid capital issued by AAA rated multilateral development banks as a new asset class &#8230; Other MDBs have indicated an interest in exploring hybrid capital.&#8221;



After an investor roadshow in September, the AfDB delayed the launch amid rising borrowing costs and choppy markets.



BNP Paribas and Goldman Sachs structured and coordinated the issuance, while Barclays and BofA Securities joined as bookrunners. S&amp;P Global rates the notes an AA-minus.



Damian Saunders, FIG Syndicate at BNP Paribas, said the transaction attracted a broad range of investors from private banks to asset managers and specialist credit funds.



&#8220;It was clearly a big learning curve for all parties involved and that includes the investor side as well – investors had to go away and decide how to price this risk,&#8221; Saunders said.



The AfDB&#8217;s acting treasurer told Reuters in November the bank has the capacity to issue $4 billion-$5 billion of hybrid capital bonds, but would be &#8220;progressive&#8221; with one or two transactions per year.



The terms of the hybrid note allow for a permanent principal writedown if the AfDB faces stress and needs shareholders to increase its capital, while coupon payments also can be skipped.



(Reporting by Karin Strohecker and Rachel Savage, Additional reporting by Rodrigo Campos, Editing by Marguerita Choy)

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

African Development Bank sells hybrid note in development finance first

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-820x461.jpeg" alt="" class="wp-image-451521" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



JOHANNESBURG/WASHINGTON, Jan 30 (Reuters) &#8211; The International Monetary Fund on Tuesday edged its forecast for global economic growth higher, upgrading the outlook for both the United States and China &#8211; the world&#8217;s two largest economies &#8211; and citing faster-than-expected easing of inflation.



The IMF&#8217;s chief economist, Pierre-Olivier Gourinchas, said the global lender&#8217;s updated World Economic Outlook showed that a &#8220;soft landing&#8221; was in sight, but overall growth and global trade still remained lower than the historical average. However the fund downgraded its Sub-Saharan Africa forecast on subpar growth in Nigeria and South Africa, the region&#8217;s largest economies.



&#8220;The global economy continues to display&nbsp;remarkable&nbsp;resilience, with inflation declining steadily and growth holding up. The chance of a &#8216;soft landing&#8217; has increased,&#8221;&nbsp;Gourinchas&nbsp;told reporters in Johannesburg, adding, &#8220;We are very far from a global recession scenario.&#8221;



But he cautioned that the base of&nbsp;expansion&nbsp;was slow and risks remained, including geopolitical tensions in the Middle East and attacks in the Red Sea that could disrupt commodity prices and supply chains.



Delays in announced fiscal consolidation in what Gourinchas called &#8220;the biggest global election year in history&#8221; could boost economic activity but might also spur inflation, he added.



The IMF said the improved outlook was supported by stronger private and public spending despite tight monetary conditions, as well as increased labor force participation, mended supply chains and cheaper energy and commodity prices.



The IMF forecast global growth of 3.1% in 2024, up two-tenths of a percentage point from its October forecast, and said it expected unchanged growth of 3.2% in 2025. The historical average for the 2000-2019 period was 3.8%.



Global trade was expected to expand by&nbsp;3.3% in 2024 and 3.6% in 2025, well below the historical average of 4.9%, with gains weighed down by&nbsp;thousands of fresh trade restrictions.



The IMF stuck with its October forecast for headline inflation of 5.8% for 2024, but lowered the 2025 forecast to 4.4% from 4.6% in October. Excluding Argentina, which has seen inflation spike, global headline inflation would be lower, Gourinchas said.



Advanced economies should see average inflation of 2.6%, down four-tenths of a percentage point from the October forecast, with inflation set to reach central bank targets of 2% in 2025. By contrast, inflation would average 8.1% in emerging market and developing economies in 2024, before easing to 6% in 2025.



The IMF said average oil prices would drop 2.3% in 2024, versus the 0.7% decline it had predicted in October, and said prices were expected to drop 4.8% in 2025.



<h2 class="wp-block-heading" id="h-red-sea-attacks">RED SEA ATTACKS</h2>



&#8220;Staying on the path to a soft landing will not be easy,&#8221; Gourinchas said, noting that&nbsp;new commodity price spikes from geopolitical shocks, including&nbsp;continued attacks on shipping in the Red Sea, could prolong tight monetary conditions.



Gourinchas told reporters the IMF was watching developments in the Middle East closely, but the broader economic impact&nbsp;appeared&nbsp;&#8220;relatively limited&#8221;&nbsp;as of now.



&#8220;It doesn&#8217;t seem to represent, as of now, a major source of potentially reigniting supply-side inflation,&#8221; he&nbsp;said.



The United States got one of the biggest upgrades in the January update of the IMF outlook, with its GDP now forecast to expand by 2.1% in 2024 versus the 1.5% forecast in October. Growth was expected to ease to 1.7% in 2025.



Gourinchas credited fiscal support and consumer spending for the upgrade, but said the IMF had&nbsp;warned&nbsp;Washington that some of its subsidies from domestic producers and other industrial policies could violate global trade rules.



The euro area got a downgrade, and was now expected to grow just 0.9% in 2024 and 1.7% in 2025, with the biggest European economy &#8211; Germany &#8211; expected to see minimal GDP growth of 0.5% in 2024 instead of the 0.9% forecast in October.



China&#8217;s GDP was expected to grow by 4.6% in 2024, an upward revision of four-tenths of a percentage point from October, and 4.1% in 2025. Gourinchas said the boost reflected significant fiscal support from the authorities, and a less-severe-than-expected slowdown stemming from the property sector.



The U.S. Federal Reserve, European Central Bank and Bank of England were expected to&nbsp;start lowering interest rates gradually in the second half of 2024, Gourinchas said, adding, &#8220;We are not quite there yet.&#8221;



The Bank of Japan was expected to maintain low interest rates, and that was &#8220;appropriate,&#8221; but the IMF had told it to be ready to raise rates if inflation spiked, he said.



Gourinchas added that markets had been &#8220;excessively optimistic&#8221; on the prospects for early interest rate cuts by major central banks, and a repricing could increase long-term interest rates and trigger more rapid fiscal consolidation that would weigh on growth prospects.



Emerging market and developing economies&nbsp;were expected to grow by&nbsp;4.1% in 2024, with&nbsp;emerging&nbsp;and developing Europe getting an upgrade due to&nbsp;stronger-than-expected growth in Russia on the back of&nbsp;military spending for the war in Ukraine.



Russia&#8217;s GDP was expected to grow 2.6% in 2024, 1.5 percentage points more than expected in October, with growth seen easing to 1.1% in 2025. The IMF said there could be further revisions since the numbers were preliminary and there were questions about the extent of Russia&#8217;s fiscal stimulus.



Negative growth in Argentina depressed the forecast for the Latin America and Caribbean region, with growth seen dropping to 1.9% in 2024, four-tenths of a percentage point lower than in October. Growth should edge higher to 2.5% in 2025, the IMF said.



Gourinchas said the global outlook reflected more balanced upside and downside risks, with the risk of a wider conflict in the Middle East offset by the prospect that lower fuel prices could help inflation fall faster than expected.



&#8220;We see them as broadly balanced at this point,&#8221; he said, noting that a lot of the downside risks &#8211; especially with respect to disinflation &#8211; seen a year ago had not materialized.



(Reporting by Andrea Shalal; Editing by Paul Simao)

107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO

IMF lifts 2024 global growth outlook, lowers Sub-Saharan Africa

<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/FQSWANA64BMHTLLIX6FC6NZVV4-820x547.jpg" alt="" class="wp-image-451490" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A backdrop is prepared for a group photo session as West African leaders meet to discuss transitional roadmap for Mali, Burkina Faso and Guinea, in Accra, Ghana, July 3, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



DAKAR, Jan 30 (Reuters) &#8211; A decision by Mali, Burkina Faso and Niger to quit West Africa&#8217;s economic and political bloc reverses decades of regional integration, leaving millions of people in limbo, and is likely to deepen the three junta-led countries&#8217; ties with Russia.



The move to withdraw from the 15-member Economic Community of West African States (ECOWAS) could yet take time to implement, opening a door for negotiations.



But, if carried through, it is set to disrupt the region&#8217;s trade and services flows, worth nearly $150 billion a year.



It also raises questions over millions of nationals from the three poor and landlocked nations who settled in neighbouring states as the bloc allows visa-free travel and right to work.



Ivory Coast alone is home to more than 5 million people from Burkina Faso, Mali and Niger.



Niger shares 1,500 km of border with Nigeria and 80% of its trade is done with its richer neighbour, said Seidik Abba, president of the Paris-based CIRES think tank.



Ghana, Togo and Benin also have a big diaspora from Niger.



&#8220;If they decide to go ahead and leave, it will become a very big problem, economically and politically, and the stakes are the highest for the people from these three countries,&#8221; he said.



More than a dozen analysts and Africa diplomats consulted by Reuters agreed the trio&#8217;s stance on ECOWAS underscored tumult across a region where armies have struggled to contain Islamist militants since seizing power in several countries.



Meanwhile, Russia has been extending its influence at the expense of former colonial power France, regional heavyweight Nigeria and the United States.



Earlier this month, Russia and Niger, ruled by a junta since a coup last year, agreed to develop military ties. Russian military personnel flew into Burkina Faso&#8217;s capital Ouagadougou last week to ensure the safety of the country&#8217;s military leader. Russia&#8217;s Wagner mercenary group also has 1,000 fighters in Mali.



The three military-ruled countries jointly announced their departure on Sunday, accusing ECOWAS of abandoning its founding ideals and falling under the influence of foreign powers.



They said the bloc had offered little support against Islamic insurgencies that have killed thousands and displaced over 2 million.



<h2 class="wp-block-heading" id="h-empty-threat">EMPTY THREAT</h2>



ECOWAS has responded to a wave of coups in the region since 2020 with sanctions that the juntas have called &#8220;illegal and inhumane.&#8221; The bloc also threatened to use force to restore constitutional rule in Niger, but did not follow through.



On Monday, ECOWAS chair Nigeria said the &#8220;unelected&#8221; military authorities of the three countries were letting their people down, but added it remained willing to engage with them.



Established in 1975, ECOWAS has sought to promote economic and political cooperation within the fragmented region, home to a mix of former French and British colonies.



Mucahid Durmaz, senior West Africa analyst at risk intelligence company Verisk Maplecroft, said he now expects increased tariffs and new restrictions on the movement of people, goods and money.



The move by the trio is likely the &#8220;silliest own goal since the United Kingdom voted for Brexit,&#8221; said Charlie Robertson, head of macro strategy at London-based investment management company FIM Partners, referring to Britain&#8217;s departure from the European Union.



&#8220;The three countries were already among the poorest in ECOWAS, and indeed the world – and leaving won&#8217;t help,&#8221; he said, adding the trio account for just 8% of the bloc&#8217;s gross domestic product.



Under ECOWAS rules, leaving the bloc takes at least a year, so those living outside their home countries should not face immediate consequences.



But in a worst-case scenario, &#8220;we could see one of the major movements of people that we have seen in decades &#8211; citizens across the subregion packing their things and heading back home,&#8221; said Kwesi Aning, a Ghana-based security analyst.



Gilles Yabi, founder of West African think tank WATHI, said the trio had stopped short of announcing their withdrawal from the regional monetary and economic union that uses the CFA franc, something that would have an even bigger impact.



&#8220;I think Mali, Niger and Burkina Faso know that it&#8217;s not easy – it&#8217;s not possible actually – to withdraw from the monetary union, when you don&#8217;t have your own system in place, a new currency in place, for example,&#8221; he said.



<h2 class="wp-block-heading" id="h-embargo-on-ourselves">&#8216;EMBARGO ON OURSELVES&#8217;</h2>



In Mali&#8217;s capital, Bamako, tailor Adama Coulibaly welcomed the juntas&#8217; decision, saying it was normal for the countries to take matters into their own hands because ECOWAS had failed.



But health worker Nagnouma Keita was apprehensive. &#8220;Our three states cannot survive on their own, especially since they have no access to the sea. I believe that, in reality, we are imposing an embargo on ourselves,&#8221; she said.



Some analysts said ECOWAS had been too swift to punish the juntas, having previously failed to call out civilian leaders, in Ivory Coast and Guinea among others, who extended their rule through problematic elections or referendums.



Threatening military intervention against the juntas but failing to act also reduced the bloc&#8217;s credibility, they said.



For years, security experts have said countries in the region must work closer – sharing more intelligence – to tackle the spreading insurgencies that are feeding off poverty, neglect and abuse as much as ideology.



Instead, the latest crisis at ECOWAS highlights the growing rift between the Western-allied elected governments and military-run countries increasingly relying on Russia and China.



&#8220;The departure from ECOWAS will have catastrophic consequences for the ability to respond to the many security challenges facing this region,&#8221; said Abba.



(Reporting by Bate Felix, David Lewis and Giulia ParaviciniAdditional reporting by Tiemoko Diallo and Boureima Balima, editing by Silvia Aloisi and Andrew Cawthorne)

FILE PHOTO: West African leaders hold summit to discuss roadmap for Mali, Burkina Faso and Guinea

West Africa’s ‘Brexit’ moment spells trouble for the region

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg" alt="" class="wp-image-424605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-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 as people struggle with the economic hardship and cashflow problems ahead of Nigeria&#8217;s Presidential elections, in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



ABUJA, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Nigerian non-deliverable currency forwards fell sharply to record lows against the U.S. dollar on Tuesday, mirroring falls on the official spot market, LSEG data showed.



Non-deliverable currency forwards, derivative products used to hedge against future exchange rate moves, indicated markets expected the naira&#8217;s exchange rate at 1,427.50 to the dollar in one month&#8217;s time&nbsp;NGNNDFOR=.



FMDQ Exchange data on Monday showed the naira had fallen to a record low of 1,421 per dollar on Friday on the thinly traded official market, below levels seen on the unofficial parallel market, where the currency trades freely.



On Monday, Nigeria&#8217;s central bank warned lenders about under reporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.



The naira&#8217;s official exchange rate had been drifting towards the parallel market level as the central bank is yet to clear outstanding amounts owed in forward deals, worsening a shortage of foreign currency in Africa&#8217;s biggest economy.



The central bank still has about $5 billion in forwards that have matured, after it paid $2.5 billion to manufacturers and importers. The backlog has been a major concern for investors despite assurances by the Central Bank of Nigeria (CBN) that it would clear them.



Other maturities on the forwards market on Tuesday also fell, with traders quoting the currency as low as 1,626.18 naira per dollar in a year&#8217;s time.



(Reporting by Chijioke Ohuocha; Editing by Ed Osmond and Mark Potter)

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

Nigeria’s naira hits new lows vs dollar on forwards market – LSEG data

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



Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Equities in emerging economies lost momentum on Tuesday as markets in China and Hong Kong were hit by growing property sector concerns, while the Hungarian forint was subdued in the run-up to a widely expected local rate cut.



MSCI&#8217;s index for emerging market (EM) stocks had shed 0.7% by 0912 GMT, coming off a two-week high hit in the prior session.



Heavyweight China .CSI300 and Hong Kong .HSI stocks fell 1.8% and 2.3% respectively, as the liquidation of property giant China Evergrande triggered fresh concerns over China&#8217;s heavily indebted real estate sector.



&#8220;The Evergrande headlines yesterday serve as a reminder that there are no quick fixes for the property sector and the measures announced by policymakers to support local equity markets&#8230;are not proving effective,&#8221; Chris Turner, global head of markets at ING wrote in a note.



China&#8217;s 10-year government bond yieldsCN230026=, CN10YT=RR slid below 2.47% to their lowest levels since June 2002 as markets bet the country would ease monetary policy to support its faltering economy.



Most other Asian bourses were also in the red as an uptick in oil prices due to tensions in the Middle East raised concerns about prolonged inflationary pressures ahead of the U.S. Federal Reserve&#8217;s interest rate announcement due on Wednesday.



Commentary from the central bank following the decision will be a key catalyst for risky EM assets as it will influence bets about the timing of U.S. rate cuts, which have been scaled back this month.



Equities in Turkey&nbsp;.XU100, South Africa&nbsp;.JTOPI, Poland&nbsp;.WIG&nbsp;and Romania&nbsp;.BETI&nbsp;climbed between 0.2% and 0.6%.



In currencies, the Hungarian forint EURHUF= was down 0.1%, languishing at near four-month lows against the euro ahead of a local monetary policy decision due at 1300 GMT. The National Bank of Hungary is expected to cut its base rate by 100 basis points to 9.75%, according to a Reuters poll.



The Czech crown EURCZK= slipped 0.1% while the benchmark ten-year bond yield CZ10YT=RR fell to 3.904%. Data showed the Czech economy rose 0.2% on a quarterly basis in the last three months of 2023.



A broader gauge of EM currencies&nbsp;.MIEM00000CUS&nbsp;edged up 0.2%.



The South African rand ZAR= slipped 0.1%, while the Thai baht THB=TH, South Korean won KRW= and Taiwan dollar TWD=TP rose between 0.2% and 0.5% against the dollar.



(Reporting by Amruta Khandekar; editing by Jason Neely)

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

Stocks sputter on China property sector woes, Hungary in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-820x562.jpg" alt="" class="wp-image-451375" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Economic Community of West African States (ECOWAS) court signage and logo is pictured in Abuja, Nigeria February 16, 2022. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria on Monday said the &#8220;unelected&#8221; military authorities in Niger, Mali, and Burkina Faso were letting their people down with their joint decision to leave the Economic Community of West African States (ECOWAS).



Nigeria, which is the current chair of the political and economic bloc, was commenting for the first time on the three junta-led countries&#8217; Sunday announcement that they were immediately quitting the nearly 50-year-old regional alliance.



The Nigerian foreign ministry in a statement said those seeking to leave ECOWAS were not acting in good faith.



&#8220;Instead, unelected leaders engage in a public posturing to deny their people the sovereign right to make fundamental choices over their freedom of movement, freedom to trade and freedom to choose their own leaders,&#8221; it said.



ECOWAS has so far declined to comment on the move, which could further weaken the bloc as it struggles to contain a democratic retreat in the West Africa region.



Mali and Niger&#8217;s foreign ministries earlier informed the ECOWAS Commission of their decision in written notices dated on Monday, which were seen by Reuters.



Nigeria said it remained willing to engage with the three nations.



Their exit decision, announced in a simultaneous joint statement on national television channels, is a blow to the bloc&#8217;s regional integration efforts after it suspended the three following coups.



(Reporting by Felix Onuah in Abuja, Fadimata Kontao in Bamako, Boureima Balima in Niamey; Writing by Nellie Peyton and Alessandra Prentice; Editing by Chris Reese and Sandra Maler)

Ecowas court hearing on whether Nigeria’s Twitter ban violated rights, in Abuja

ECOWAS chair Nigeria slams juntas’ move to quit bloc

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg" alt="" class="wp-image-428505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-1536x1009.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows Nigeria&#8217;s Central Bank headquarters in Abuja, Nigeria November 22, 2020. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank has injected $500 million to clear outstanding foreign exchange demand backlog, it said in a statement on Monday.



Africa&#8217;s biggest economy has about $7 billion in forex forwards that have matured, a major concern for investors as foreign currency shortages continue to weigh down the naira currency, despite assurances by the Central Bank of Nigeria (CBN) that it would clear the backlog.



Earlier this month, it paid about $2 billion of the backlog across sectors such as manufacturing, aviation, and petroleum, CBN spokesperson Hakama Sidi Ali said.



This is a developing story&#8230;



(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Jon Boyle)

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Zambia to restructure $1.5 bln Glencore debt with new Mopani investor

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