<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/K3R6TLCHVRIXXEGLDCVETAAITQ-820x547.jpg" alt="" class="wp-image-451111" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Italy&#8217;s newly appointed Prime Minister Giorgia Meloni speaks to the media following a meeting with Italian President Sergio Mattarella at the Quirinale Palace in Rome, Italy October 21, 2022. REUTERS/Guglielmo Mangiapane</figcaption></figure>



ROME, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Italian Prime Minister Giorgia Meloni called for a new partnership with Africa on Monday, unveiling a long-awaited plan aimed at boosting economic ties, creating an energy hub for Europe and curbing immigration.



Speaking at a one-day summit attended by more than two dozen African leaders and European Union officials, Meloni outlined a series of initiatives, pledging an initial 5.5 billion euros ($5.95 billion), including state guarantees.



&#8220;We believe it is possible to envision and write a new chapter in the history of our relationship, a cooperation among equals, far from any predatory imposition or charitable stance towards Africa,&#8221; Meloni said in an opening speech.



However, the proposal got a cool response from some of those present, with Moussa Faki Mahamat, chairman of the African Union Commission, saying he wished Africa had been consulted first.



&#8220;I want to insist here on the need to move from words to actions. You can well understand that we can no longer be satisfied with mere promises that are often not kept,&#8221; he said, standing alongside Meloni in Italy&#8217;s ornate Senate.



Among the African leaders present were the presidents of Tunisia, Senegal, Kenya, the Republic of Congo and Somalia. In all, 45 African states were represented at various levels.



Critics have said that heavily indebted Italy cannot hope to compete with the likes of China, Russia and Gulf states, that are all looking to boost their presence in Africa, which is home to many of the world&#8217;s natural resources.



While Rome claims ownership of the plan, which it has named after the late Enrico Mattei, who founded state oil company Eni, Meloni said her government would look to help from the private sector and international bodies such as the European Union.



Underscoring that point, European Commission President Ursula von der Leyen, European Council President Charles Michel and the head of the EU Parliament were all at the Rome meeting.



&#8220;The Mattei Plan&#8230; fits perfectly into our European Global Gateway worth 150 billion euros. This is our plan for Africa,&#8221; von der Leyen told Monday&#8217;s gathering, referring to an infrastructure project unveiled in 2021.



<h2 class="wp-block-heading" id="h-energy-needs">ENERGY NEEDS</h2>



Meloni has made the Mattei plan a central plank of her foreign policy since taking office in late 2022.



Energy needs lie at the heart of the initiative, with Rome looking to serve as a gateway into European markets for natural gas from Africa that has become vital after Russia&#8217;s invasion of Ukraine made diversification of supplies a priority for the EU.



Eni, Italy&#8217;s largest importer of natural gas, has already countered lower Russian supplies by shipping increased volumes from Africa, where it has had a presence for decades.



The company has said Algeria, Egypt and Libya will be Italy&#8217;s main gas suppliers for the next few years.



But Meloni also said Europe had to bolster industry and agriculture in Africa to strengthen local economies as a way of persuading disaffected young Africans from migrating north.



Some 157,600 boat migrants reached Italy last year, the largest number since 2016, undermining Meloni&#8217;s electoral pledge to halt the flow of unauthorised arrivals.



Most departed from North African countries such as Tunisia and Libya, many fleeing poverty and conflict in sub-Saharan Africa and the Middle East.



&#8220;Mass immigration will never be stopped, human traffickers will never be defeated if we do not address the many causes that push a person to leave their home,&#8221; Meloni told the summit. &#8220;This is exactly what we intend to do.&#8221;



(Writing by Crispian Balmer; Editing by Alex Richardson and Sharon Singleton)

Italy’s newly appointed Prime Minister Giorgia Meloni speaks to the media following a meeting with Italian President Sergio Mattarella, in Rome

Italy’s Meloni seeks new partnership with Africa, funds limited

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-820x547.jpeg" alt="" class="wp-image-451066" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The PlayStation DualSense controller and PlayStation 5 console. Jakub Porzycki | Nurphoto | Getty Images</figcaption></figure>



Sony is making a bold bet on Africa’s video game industry.&nbsp;



The Japanese consumer electronics and gaming giant has invested an undisclosed sum into Carry1st, a video game studio based in Cape Town, South Africa, via its Sony Innovation Fund venture arm, Carry1st told CNBC exclusively.&nbsp;



The deal is a strategic investment that will see the two companies partner on a range of commercial opportunities. For now, the two companies are in the “exploratory stages” of that partnership.



Cordel Robbin-Coker, CEO and co-founder of Carry1st, said talks with the Sony Innovation Fund began about eight to nine months ago, and that his pitch to the PlayStation console maker was that Africa is the next big market to find growth in video games.&nbsp;



“As large companies like Sony that have really strong footholds in tier-one and tier-two markets start thinking about where the next billion customers and gamers are going to come from, our pitch is that Africa is a prime market for that,” Robbin-Coker told CNBC in an interview.&nbsp;



“We believe very firmly that there is an incredibly underrated console opportunity in Africa,” Robbin-Coker said, citing countries like Nigeria, Morocco and Algeria as places where console adoption is rising a lot.&nbsp;



Sony is coming into an emerging gaming market with blistering growth potential. Sub-Saharan Africa’s gaming industry is expected to generate over $1 billion for the first time in 2024, according to research from Carry1st and venture capital firm Konvoy. 



Many gamers in Africa are buying consoles on “gray” markets — in other words, from vendors who’ve imported consoles from overseas to resell them locally, Robbin-Coker added.&nbsp;



<h2 class="wp-block-heading" id="h-expanding-playstation-in-africa-nbsp"><a></a>Expanding PlayStation in Africa&nbsp;</h2>



One aspect of Carry1st’s partnership with Sony was about helping the games and entertainment giant expand PlayStation’s footprint in Africa. 



Sony forecast it would sell a record 25 million PlayStation 5 units in its 2023 fiscal year, which would mark the best year for any PlayStation console in history. The PS5 was initially blighted by shortages due to a scarcity of chips and supply chain disruptions.



Sony’s bet with its stake in Carry1st is that Africa will be the next major market to drive growth in PS5 sales.



“Our hope is that we can help [Sony] to expand their reach of PlayStation in the region and support them in a range of ways, including broader go-to-market strategies, as well as digital payments,”&nbsp;Robbin-Coker told CNBC.



He noted Carry1st could take advantage of the changing console business model, where sales have gone from primarily in-store payments for physical consoles and games to a more online experience marked by digital downloads, free-to-play games, and in-app purchases.&nbsp;



Carry1st’s localized payment service Pay1st allows African gamers to buy games using local infrastructure, bank accounts, and payment methods including M-Pesa and mobile wallets. Game makers can monetize their games on Carry1st, the company’s online marketplace for games and add-on content.&nbsp;



<h2 class="wp-block-heading"><a></a>Original games in the pipeline&nbsp;&nbsp;</h2>



Carry1st, founded in 2018, specializes in developing mainly social and casual puzzle-based mobile games for an African audience.  



Carry1st currently only makes and scales games for other clients, like Activision. But the company is now planning to develop its own original titles this year, with development underway on three new games.&nbsp;&nbsp;



Little is known about the original games for now, but Robbin-Coker says he is “very confident” about the road map for Carry1st’s original titles, and that he “firmly believes” the company is on track to launch its debut first-party game sometime in 2024.&nbsp;



Carry1st is still an early-stage startup, but its growth has been on a tear in recent years. Carry1st says its revenues climbed nearly ninefold between 2021 and 2023. Carry1st said it was unable to give a fuller picture of its financials given the sensitivity of the numbers.&nbsp;



Carry1st works with the likes of Activision, Supercell and Riot Games to bring Western game franchises like “Call of Duty: Mobile” and “Valorant” to Africa.&nbsp;



The company is behind the mobile games “Mancala Adventures,” “SpongeBob Krusty Cook-Off” — made in partnership with Nickelodeon — “Ludo Blitz” and “Mine Rescue.”&nbsp;



Sony’s investment in Carry1st marks the first financial commitment of its new flagship African venture fund, Sony Innovation Fund: Africa, which launched in October 2023 to invest in early-stage startups in Africa’s entertainment industry.&nbsp;



Sony Ventures Corporate, Sony’s venture arm, allocated an initial $10 million to its Africa fund.&nbsp;&nbsp;



Carry1st’s latest deal adds to its list of venture backers, with another top name on the cap table. Andreessen Horowitz, Bitkraft Ventures, Google, Riot Games, and rapper Nas have so far backed the company with $60 million of funding to date.&nbsp;

107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q

Sony is making a bold bet on an African gaming startup to boost PlayStation’s reach in the continent

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="756" height="426" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3.jpg" alt="" class="wp-image-417686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3.jpg 756w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3-160x90.jpg 160w" sizes="auto, (max-width: 756px) 100vw, 756px" /><figcaption class="wp-element-caption">Economic Community of West African States (ECOWAS) flag is pictured during an extraordinary summit of ECOWAS to hear reports from recent missions to Mali, Burkina Faso and Guinea following military coups in those countries, in Accra, Ghana March 25, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



NIAMEY/BAMAKO, Jan 28 (Reuters)&nbsp;&#8211;&nbsp;Niger, Mali and Burkina Faso, three West African states led by the military, said on Sunday they are immediately leaving the Economic Community of West African States (ECOWAS), a regional economic bloc that has been urging them to return to democratic rule.



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



The move could further weaken ECOWAS which has struggled to contain a democratic retreat in the West Africa region.



In response to the withdrawal ECOWAS said it is yet to receive any formal notification about the withdrawal and declined further comment.



The bloc had previously said it does not recognise the military-led governments, vowing that coups would no longer be tolerated after the military takeovers in Mali, Burkina Faso and Guinea and an attempted coup in Guinea-Bissau.



Since the coups &#8211; and despite sanctions, negotiations and threats of military intervention &#8211; the military leaders have failed to provide a clear timetable for a return to constitutional rule.



Instead, they have hardened their rhetoric against the bloc and accused it of being influenced by external powers. The three have also cut military and other ties with former colonial master France, and turned to Russia for security support.



<h2 class="wp-block-heading" id="h-existential-fight">EXISTENTIAL FIGHT</h2>



The military leaders have argued they want to restore security before organising elections, as the three Sahel nations struggle contain insurgencies linked to al Qaeda and Islamic State.



&#8220;After 49 years, the valiant peoples of Burkina Faso, Mali, and Niger regretfully and with great disappointment observe that the (ECOWAS) organization has drifted from the ideals of its founding fathers and the spirit of Pan-Africanism,&#8221; Colonel Amadou Abdramane, Niger junta spokesman, said in the statement.



&#8220;The organization notably failed to assist these states in their existential fight against terrorism and insecurity,&#8221; Abdramane added.



Bakary Sambe, regional director of the Timbuktu Institute think tank, said there were clear signs that the junta-led states were moving towards a split from the bloc, as they strengthen ties between themselves and created a new alliance.



It is unclear for now how the decision by the landlocked junta states, will impact the 15-member regional bloc where goods and citizens move freely.



According to the bloc&#8217;s treaty, member states wishing to withdraw must give a written one-year notice. It is unclear for now if the three states have done so. The treaty say they must continue to abide by its provisions during the year-long period.



The three are also members of the eight-nation West African Monetary Union (UEMOA) which uses the West Africa CFA franc currency pegged to the Euro.



The monetary union, following decisions by ECOWAS leaders after the coups in Mali and Niger, had cut off their access to the regional financial market, and the regional central bank. It later restored Mali&#8217;s access but Niger remains suspended.



(Reporting by Tiemoko Diallo, Boureima Balima, Felix Onuah and MacDonald Dzirutwe; Writing by Bate Felix; Editing by William Maclean and David Holmes)

ecowas-3

Three West African junta-led states quit ECOWAS regional block

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="564" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-820x564.jpg" alt="" class="wp-image-450156" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-820x564.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-768x528.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-1536x1056.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the International Court of Justice (ICJ) on the day of the trial to hear a request for emergency measures by South Africa, who asked the court to order Israel to stop its military actions in Gaza and to desist from what South Africa says are genocidal acts committed against Palestinians during the war with Hamas in Gaza, in The Hague, Netherlands, January 11, 2024. REUTERS/Thilo Schmuelgen</figcaption></figure>



THE HAGUE, Jan 26 (Reuters)&nbsp;&#8211;&nbsp;The World Court on Friday ordered Israel to take action to prevent acts of genocide as it wages war against Hamas militants in the Gaza Strip, but it stopped short of calling for an immediate ceasefire.



Ruling on a case brought by South Africa, the court said Israel must ensure its forces did not commit genocide and take measures to improve the humanitarian situation for Palestinian civilians in the enclave.



In the ruling, 15 of the 17 judges on the International Court of Justice (ICJ) panel voted for emergency measures which covered most of what South Africa asked for, with the notable exception of ordering a halt to Israeli military action in Gaza.



Israel&#8217;s military operation has laid waste to much of the densely populated enclave and killed more than 25,000 Palestinians in nearly four months, according to Gaza health authorities.



Israel unleashed its assault after a cross-border rampage on Oct. 7 by Hamas militants. Israeli officials said 1,200 people were killed, mostly civilians, and 240 taken hostage.



The court said it was &#8220;gravely concerned&#8221; about the fate of the hostages in Gaza and called on Hamas and other armed groups to immediately release them without conditions.



But the ruling, welcomed by Palestinians, will still be an embarrassment for Israel and its closest allies, including the United States.



Israel had asked the court to reject the case outright, saying it respects international law and has a right to defend itself.



&#8220;The state of Israel shall&#8230;take all measures within its power to prevent the commission of all acts within the scope of Article II of the Genocide convention,&#8221; the court said.



Israel must report back to it on what steps it was taking in a month&#8217;s time,&nbsp;it said.



Israeli Prime Minister Benjamin Netanyahu said the charge of genocide leveled against Israel was &#8220;outrageous&#8221; and said it would do whatever is necessary to defend itself.



&#8220;The vile attempt to deny Israel this fundamental right is blatant discrimination against the Jewish state, and it was justly rejected,&#8221; he said in a statement.



But while the ICJ&#8217;s decisions are final and without appeal, the court has no way to enforce them.



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



South Africa&#8217;s deputy president Paul Mashatile and Justice Minister Ronald Lamola were seen cheering and dancing at a gathering of the governing African National Congress party following the court&#8217;s verdict.



South Africa argued two weeks ago that Israel&#8217;s aerial and ground offensive was aimed to bring about &#8220;the destruction of the population&#8221; of Gaza.



The 1948 Genocide Convention, enacted in the wake of the mass murder of Jews in the Nazi Holocaust, defines genocide as &#8220;acts committed with intent to destroy, in whole or in part, a national, ethnical, racial or religious group&#8221;.



Acts of genocide named in the convention include killing members of the group, causing serious bodily or mental harm to members of the group and deliberately inflicting conditions of life calculated to bring about the destruction of the group in whole or in part.



(Reporting by Stephanie van den Berg in The Hague, Anthony Deutsch and Bart Meijer in Amsterdam; Writing by Ingrid Melander; Editing by Angus MacSwan)

A general view of the International Court of Justice (ICJ) on the day of the trial to hear a request for emergency measures by South Africa, who asked the court to order Israel to stop its military actions in Gaza, in The Hague

World Court says Israel must take steps to prevent acts of genocide in Gaza

<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/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-820x547.jpg" alt="" class="wp-image-450088" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Israeli soldiers fire a mortar, as the conflict continues between Israel and the Palestinian Islamist group Hamas, on the border with the central Gaza, Israel January 22, 2024. REUTERS/Amir Cohen</figcaption></figure>



WASHINGTON, Jan 25 (Reuters)&nbsp;&#8211;&nbsp;U.S. Secretary of State Antony Blinken spoke on Thursday with South African Foreign Minister Naledi Pandor about the war in Gaza, a day ahead of a ruling at the World Court on urgent measures in a case in which Israel is accused of genocide.



<h2 class="wp-block-heading" id="h-why-it-is-important">WHY IT IS IMPORTANT</h2>



U.N. judges on Friday will rule on South Africa&#8217;s request for emergency measures against Israel, which is accused at the International Court of Justice of state-led genocide for its military operation in Gaza.



Friday&#8217;s ruling will not deal with the core accusation of the case &#8211; whether genocide occurred &#8211; but will focus on the urgent intervention sought by South Africa.



<h2 class="wp-block-heading" id="h-key-quotes">KEY QUOTES</h2>



In a call on Thursday, Blinken reaffirmed U.S. support &#8220;for Israel&#8217;s right to ensure the terrorist attacks of October 7 can never be repeated,&#8221; the U.S. State Department said in a statement.



Blinken and Pandor also discussed the need to protect civilian lives in Gaza, and ensure regional peace that &#8220;advances the establishment of an independent Palestinian state,&#8221; according to the State Department. It added the two also reaffirmed U.S.-South Africa bilateral ties.



<h2 class="wp-block-heading" id="h-context">CONTEXT</h2>



South Africa has requested an immediate halt to Israel&#8217;s military operation, which has laid waste to much of the enclave and killed more than 25,000 people or over 1% of Gaza&#8217;s 2.3 million population, according to the local health authorities.



Israel rejects the accusations from South Africa and says it has a right to defend itself following the Oct. 7 attack on Israel by Palestinian Islamist group Hamas, which governs Gaza. Israeli officials say that in that attack 1,200 people were killed and 240 taken hostage.



South Africa has asked for nine emergency measures, which act like a restraining order while the court hears the case in full, which could take years. The court is not bound to follow South Africa&#8217;s requests and could order its own measures if it finds it has jurisdiction at this stage of the case.



(Reporting by Kanishka Singh in Washington; Editing by Jacqueline Wong)

G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1

US, South Africa discuss Gaza war ahead of ruling on measures in genocide case

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-820x462.jpeg" alt="" class="wp-image-450070" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SUIXI, CHINA &#8211; DECEMBER 30: An employee works on the production line of aluminum foil at a workshop of Anhui Limu New Material Technology Co., Ltd on December 30, 2023 in Suixi County, Huaibei City, Anhui Province of China. (Photo by Li Xin/VCG via Getty Images) Vcg | Visual China Group | Getty Images</figcaption></figure>



Global commodity markets are in a “super squeeze” amid supply disruptions and lack of investment — and it’s only going to get worse as geopolitical and climate risks exacerbate the situation, HSBC said.



“For some time now we have described global commodity markets as being in a ‘super-squeeze,’” its chief economist Paul Bloxham told CNBC.



A commodity “super squeeze” is denoted by higher prices driven by supply constraints more than a robust growth in demand, he explained.



“If it’s a supply constraint that’s driving high commodity prices, it’s a very different story for global growth,” said via Zoom. Higher prices as a result of a super squeeze are “not as positive.”



“We see the deeper ‘super-squeeze’ factors on the supply-side as still set to play a key role in keeping commodity prices elevated,” he said, outlining factors like political uncertainties, climate change and the lack of investments into the green energy transition.



Geopolitical risks include the ongoing Israel-Hamas conflict in Gaza and the Ukraine war, which have hampered global trade, as seen in shipping disruptions from the recent Houthi attacks in the Red Sea.



Another reason is climate change, which disrupts supply chains as well as commodities supply, especially in the agricultural space.



“The super squeeze could be deeper, or more prolonged if geopolitical, climate change or energy transition related supply disruptions are larger than expected,” he added.



<h2 class="wp-block-heading" id="h-lack-of-investments"><a></a>Lack of investments</h2>



The world’s pursuit of a net-zero carbon future is fueling demand for energy transition metals such as copper and nickel, Bloxham pointed out.



However, there are insufficient investments allocated to procuring these critical minerals, leading to a sharper supply squeeze on energy transition metals — in particular copper, aluminum and nickel, he said.



As energy transition ramps up, markets could be looking at a shortage of a slew of metals like graphite, cobalt, copper, nickel and lithium in the next decade, the Energy Transitions Commission said in a report in July.



At the recent COP28 climate change conference, more than 60 countries backed a plan to triple global renewable energy capacity by 2030, in what is largely deemed as a step forward for energy transition and a further boost in demand for metals required for that transition. 



“Large-scale mining projects can take 15-20 years, and the last decade has seen a lack of investment in exploration and production for key energy transition materials,” the report said.



Annual capital investments in these metals averaged $45 billion in the last two decades, and must rise to around $70 billion each year through to 2030 to ensure an ample stream of supply, according to the ETC report.



Without more investment in new capacities, supply will be constrained, HSBC’s Bloxham said, adding that “for any given amount of demand,” it should be expected that commodity prices will stay more elevated than in the past.



“That seems to be playing out across many of the commodities at the moment.”



Technology could also be a gamechanger if a development came along and made it much easier to extract the metals used in the battery space, Bloxham added.



He did not say how long it will take global commodity markets to move out of the squeeze, but one way out of it — which would also push commodity prices lower — is a “bigger and deeper [economic] downturn globally,” he said.



“Commodities are notoriously volatile asset classes, with a long history that is prone to a short squeeze and the current landscape points to more of the same,” said Brian Luke, senior director and head of commodities at S&amp;P Dow Jones Indices. He highlighted that extreme weather events and geopolitics have also impacted the agricultural and energy commodity baskets.



<h2 class="wp-block-heading"><a></a>Metals most impacted</h2>



Analysts say metals will likely see the most upside.



Bloxham noted that aside from clean energy metals, iron ore was also on his list due to falling inventory and a lack of investments into expanding capacity.&nbsp;



Iron ore has seen a price jump of over 24% in the last year, according to data from FactSet. The benchmark 62%-grade iron ore last traded at $135.48 per ton.



“The reason why [iron ore] has a sudden squeeze-up is because inventory has been very low,”&nbsp;said Bank of America Securities’ head of Asia -Pacific basic materials, Matty Zhao.



She noted that in spite of China’s property crisis, steel production has continued, fueling demand for iron ore and coking coal, which are integral to steelmaking.



China, which makes around 55% of the world’s steel, produced 874.7 million tons of steel in the first 10 months of 2023 — up 1.4% across the same period in 2022.



<h2 class="wp-block-heading"><a></a>What squeeze?</h2>



While risks remain, one analyst is of the view that commodity markets are still “adequately supplied” for the most part.



“The commodity markets are currently focused on slumping demand due to the sluggish global economy. As such, there’s not too much concern about supplies,” said Arlan Suderman, chief commodities economist at financial services firm StoneX.



Oil, for one, saw an increase in global oil inventories in 2023.



Some are still hoping that a rebound in Chinese demand will help.



“A resurgence from Asia will go a long way in determining if commodities will have a breakout year,” said S&amp;P’s Luke, adding that 2023 saw a year of unfulfilled demand from China which weighed heavily on commodity markets.&nbsp;

107355390-1704724879173-gettyimages-1896093454-vcg111472304231

Commodity markets are in a ‘super squeeze’ — and higher prices could be here to stay

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="598" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-820x598.jpg" alt="" class="wp-image-449839" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-820x598.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-300x219.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-123x90.jpg 123w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-768x560.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-1536x1120.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Opposition Movement for Democratic Change (MDC) leader Nelson Chamisa attends a media briefing in Harare, Zimbabwe, January 29, 2019. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Jan 25 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s main opposition leader Nelson Chamisa quit his Citizens Coalition for Change (CCC) party on Thursday, two years to the day after its formation, saying it had been hijacked by the ruling ZANU-PF in a power grab.



&#8220;Fellow citizens, this is to officially and under my hand inform you that, with immediate effect I no longer have anything to do with CCC,&#8221; Chamisa wrote in a lengthy statement posted on his X account.



The CCC party, which enjoys huge urban support, won 103 of the 280 seats in Zimbabwe&#8217;s main house of Parliament and swept most of the urban councils in last year&#8217;s general election.



However, several CCC lawmakers and councillors have been ejected from their seats by an official claiming to the party&#8217;s secretary general, but who Chamisa and the CCC say is an imposter.



Efforts to reverse the recalls in the courts have failed. The CCC accuses ZANU-PF, in power since independence in 1980, of using the courts to destroy the opposition.



ZANU-PF has dismissed the accusations, but has benefited from the recalls after winning most of the resultant by-elections.



&#8220;The CCC has to all intents and purposes been criminally handed over to ZANU-PF,&#8221; Chamisa said in his statement.



The ZANU-PF spokesperson could not immediately be reached for comment.



It was not immediately clear if lawmakers and councillors loyal to Chamisa would quit their posts in solidarity, a move which would trigger a wave of by-elections.



Chamisa&#8217;s emergence as successor to long-time opposition leader Morgan Tsvangirai, who died in 2018, triggered leadership battles and splits within Zimbabwe&#8217;s main opposition movement.



He formed the CCC in January 2022 after losing a series of court battles over control of the Movement for Democratic Change (MDC), which first emerged in 2000 as the biggest threat to ZANU-PF&#8217;s stranglehold on power.



The 45-year-old lawyer and pastor, who rejected his narrow losses in the last two presidential elections to President Emmerson Mnangagwa, did not give details of his next move, but hinted at forming a new opposition movement.



(Reporting by Nyasha Chingono; Editing by Olivia Kumwenda-Mtambo and Andrew Heavens)

FILE PHOTO: Opposition Movement for Democratic Change leader Nelson Chamisa attends a media briefing in Harare

Zimbabwe opposition leader Chamisa quits ‘hijacked’ party

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-820x541.jpg" alt="" class="wp-image-425628" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-1536x1013.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of South Africa&#8217;s central reserve bank is seen during the delivery of a keynote address by South Africa&#8217;s central bank governor, Lesetja Kganyago, at the University of the Witwatersrand in Johannesburg, South Africa, November 1, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



PRETORIA, Jan 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank maintained its key lending rate as economists expected on Thursday, saying it did not yet see a clear disinflation trend that would justify cutting rates.



It was the fourth meeting in a row that the bank&nbsp;left&nbsp;its repo rate&nbsp;ZAREPO=ECIon hold&nbsp;at 8.25%.



All&nbsp;20&nbsp;economists polled by Reuters had forecast that the rate would be left unchanged.



Thursday&#8217;s&nbsp;decision was unanimous, South African Reserve Bank (SARB) Governor Lesetja Kganyago told a news conference, introducing a new member of the Monetary Policy Committee, David Fowkes.



Inflation fell for a second month to 5.1% year on year in December from 5.5% in November, remaining within the central bank&#8217;s target range of 3%-6%.



The bank said&nbsp;previously that it wanted&nbsp;to see inflation sustainably around the midpoint of its target range, which is 4.5%, before considering rate cuts.



The central bank said&nbsp;on Thursday that the&nbsp;return to its inflation target had been slow.



&#8220;There isn&#8217;t a discernible trend that shows that inflation is declining towards (the midpoint of) our target,&#8221;&nbsp;Kganyagotold reporters.



Growth and&nbsp;inflation forecasts were little changed since the&nbsp;November rate meeting, with the bank flagging&nbsp;on Thursday&nbsp;that electricity, port, and rail constraints continued to pose serious risks to&nbsp;the economy.



Another potential source of uncertainty is this year&#8217;s national election, which will be the seventh since the dawn of democracy at the end of apartheid.



Political analysts say the governing African National Congress could lose its parliamentary majority for the first time since 1994 and have to enter into a coalition with other parties.



Economists from Alexforbes, Bank of America and HSBC all expect the SARB to begin cutting rates in July and ease policy gradually with between 75 basis points to 125 basis points of cuts this year. David Omojomolo at Capital Economics expects rates to be cut by 50 basis points this year.



(Additional reporting by Anait Miridzhanian and Olivia Kumwenda-Mtambo in JohannesburgEditing by Alexander Winning, Alexandra Hudson)

FILE PHOTO: South Africa’s central bank governor to delivers keynote address

South African central bank wants clearer disinflation trend before cutting rates

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-820x548.jpg" alt="" class="wp-image-449759" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Containers are seen stacked up on the container ship MSC Maria Elena at the port of Antwerp, Belgium September 23, 2022. REUTERS/Yves Herman/File Photo</figcaption></figure>



Jan 25 (Reuters)&nbsp;&#8211;&nbsp;Australian mining giant BHP Group&nbsp;BHP.AX&nbsp;said on Thursday that the Red Sea disruptions are forcing some of its freight service providers to take alternative routes, such as Africa&#8217;s Cape of Good Hope, while others still prefer the Red Sea with additional controls.



&#8220;The Red Sea is one of the key shipping routes in the world, however, the majority of BHP&#8217;s shipments do not go through this route,&#8221; and there have been no major business disruptions so far, the world&#8217;s largest listed miner said in a statement.



The move follows reports from companies such as oil major BP&nbsp;BP.L&nbsp;and Shell&nbsp;SHEL.L&nbsp;that have paused transits through the Red Sea as strikes on commercial vessels by the Iran-aligned Houthis have stymied trade between Europe and Asia.



Some shipping companies have instructed vessels to reroute via a slower and more expensive Cape of Good Hope.



Some 320 million tons of bulk commodities sail through the Suez Canal and through the Red Sea, accounting for 7% of global dry bulk trade, Gerard Ang, BHP&#8217;s head of maritime iron ore, said at an industry conference in Singapore earlier on Thursday.



In the short term, this could lead to a squeeze in tonnage supply in the North Atlantic market which translates to a more volatile, dry bulk market for shipping, Ang added.



The Wall Street Journal earlier reported that BHP is diverting almost all of its shipments from Asia to Europe away from the Red Sea.



The miner, with operations spread across Australia, Chile, Brazil, the U.S. and Canada, primarily produces copper, iron ore and metallurgical coal. It generated $1.96 billion in revenue from Europe in 2023, around 3.6% of its total revenue of $53.82 billion.



&#8220;From a long-term perspective, we don&#8217;t really see a big profound impact on the trade,&#8221; Ang said.



(Reporting by Clara Denina, Florance Tan, Chandni Shah, Sameer Manekar and Swati Verma; Editing by Savio D&#8217;Souza, Sonia Cheema and Eileen Soreng)

FILE PHOTO: Activity at the port of Antwerp

Red sea attacks push BHP to divert some shipping via African coast

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="554" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ZD2R6PHEFBNJ7FZING5IMG2BXE-820x554.jpg" alt="" class="wp-image-449733" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ZD2R6PHEFBNJ7FZING5IMG2BXE-820x554.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ZD2R6PHEFBNJ7FZING5IMG2BXE-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ZD2R6PHEFBNJ7FZING5IMG2BXE-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ZD2R6PHEFBNJ7FZING5IMG2BXE-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ZD2R6PHEFBNJ7FZING5IMG2BXE-1536x1037.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ZD2R6PHEFBNJ7FZING5IMG2BXE.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A demonstrator holds a sign during a protest as judges at The International Court of Justice (ICJ) in the Hague, hear a request for emergency measures to order Israel to stop its military actions in Gaza, in Amman Jordan January 11, 2024. REUTERS/Jehad Shelbak</figcaption></figure>



THE HAGUE, Jan 25 (Reuters) &#8211; The United Nations&#8217; top court will rule on Friday on whether it will grant emergency measures against Israel following accusations by South Africa that its military operation in Gaza is a state-led genocide against Palestinians.



The 15 judges at the International Court of Justice (ICJ), also known as the World Court, are joined for this case by a judge specially appointed by South Africa and one by Israel. Both are distinguished figures in their countries with extraordinary personal histories. The court&#8217;s legally-binding decisions are made by a simple majority but it has no way to enforce them.



<h2 class="wp-block-heading" id="h-dikgang-moseneke">DIKGANG MOSENEKE</h2>



&#8211; Moseneke, 76, is one of South Africa&#8217;s most senior retired judges who fought against apartheid and played a key role in the country&#8217;s transition to democracy.



&#8211; He was imprisoned at the age of 15 for protesting apartheid and spent 10 years in South Africa&#8217;s notorious Robben Island prison, where he befriended Nelson Mandela.



&#8211; Moseneke studied for his university degree while behind bars and worked as an attorney after his release. He was later asked by Mandela to help draft South Africa&#8217;s interim constitution and oversee its first democratic elections.- He was appointed to South Africa&#8217;s Constitutional Court in 2002. In 2005, he was appointed Deputy Chief Justice, a position he held until his retirement in 2016.



&#8211; In a 2021 interview with Oxford University about his autobiography he recalled he had a very deep sense of right and wrong as a child. &#8220;Apartheid was already a big teacher, like most states&#8230; it taught people inequality.&#8221;.



&#8211; He has a reputation as &#8220;a fair-minded and thorough judge who follows the facts of the case&#8221;, according to Frans Viljoen, a professor of international human rights law at the University of Pretoria.



<h2 class="wp-block-heading" id="h-aharon-barak">AHARON BARAK</h2>



&#8211; Barak, 87, is a Holocaust survivor born in Lithuania in 1936 who became a chief justice of Israel&#8217;s Supreme Court.



&#8211; He is one of few children to survive the Jewish ghetto in the central Lithuanian city of Kovno (Kaunas) during World War Two. He has called his survival a miracle. &#8220;Since that episode, I have never feared death,&#8221; he said.



&#8211; Barak was smuggled out of the ghetto by his mother who hid him in a bag of uniforms that were manufactured there. He immigrated to then-British Mandate Palestine in 1947, a year before it became Israel



&#8211; Between 1975 and 1978 Barak served as Israel&#8217;s Attorney General. In 1978 he was appointed to the Supreme Court and served as its president from 1995 to 2006 when he retired.



&#8211; Barak is known as a champion of Supreme Court activism and has been a vocal critic of Prime Minister Benjamin Netanyahu, whose judicial reform push last year bitterly polarized the public.



&#8211; In an interview last November with Canadian daily the Globe and Mail, Barak voiced support for Israel&#8217;s military actions in Gaza. &#8220;I agree totally with what the government is doing,&#8221; he said. Asked about accusations that Israel was conducting a genocidal war in Gaza, Barak said that term should be used to describe the Oct. 7 attacks on Israel by Hamas.



&#8220;What we are doing is to prevent them from doing it again,&#8221; he said.



(Reporting by Stephanie van den Berg and Anthony Deutsch, additional reporting by Nellie Peyton in Johannesburg and Dan Williams in Jerusalem, editing by Silvia Aloisi, Alexandra Hudson)

ZD2R6PHEFBNJ7FZING5IMG2BXE

Who are the veteran South African and Israeli judges hearing the Gaza genocide case?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Jan 25 (Reuters) &#8211; The South African rand was steady in early trade on Thursday, with investors awaiting release of producer price inflation data and the central bank&#8217;s rate decision later in the day.



At 0700 GMT the rand traded at 18.8800 against the U.S. dollar, little changed from the previous close.



The rand had strengthened on Wednesday after consumer inflation fell for a second consecutive month to 5.1% year on year in December, but analysts said it was unlikely to affect interest rates yet.



South African Reserve Bank (SARB) Governor Lesetja Kganyago has previously said he wants inflation to decline sustainably to about 4.5% before considering rate cuts.



Producer price inflation for December will be released at 0930 GMT and is expected to show a decline from 4.6% year on year in November.



The South African Reserve Bank (SARB) will announce its rate decision around 1300 GMT. All 20 economists polled by Reuters forecast that the rate will be left unchanged at 8.25%.



South Africa&#8217;s benchmark 2030 government bond was flat in early deals, with the yield at 9.750%. 



(Reporting by Nellie Peyton; Editing by David Goodman )

Illustration photo of South African rand

South African rand steady ahead of PPI and rate decision

<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>



ABUJA, Jan 24 (Reuters) &#8211; Nigeria&#8217;s central bank aims for inflation to fall to about 21% and will work to strengthen the country&#8217;s undervalued naira currency, Governor Olayemi Cardoso said on Wednesday.



Cardoso faces pressure to raise interest rates when the Central Bank of Nigeria (CBN) holds a rate-setting meeting next month for the first time since he took office in September.



Inflation in December hit 28.92%, its highest level in more than 27 years.



&#8220;Inflationary pressures are expected to decline in 2024 due to the CBN&#8217;s inflation-targeting policy, which aims to rein in inflation to 21.4%,- Cardoso said in a speech, a copy of which the central bank shared by email.



He added that improved agricultural output and the easing of global supply chain pressures would boost consumer confidence and purchasing power.



Nigeria&#8217;s central bank is expected to pursue a more conventional monetary policy approach under Cardoso after years of unorthodox policies pursued by his predecessor, Godwin Emefiele.



In November, Cardoso announced the adoption of an inflation-targeting framework.



President Bola Tinubu made a series of reforms after becoming head of state last year, including scrapping a petrol subsidy and easing currency trading restrictions.



However the country still has a shortage of forex and suffers as a result of a wide gap between the official and parallel market exchange rates.



&#8220;We believe that the naira is currently undervalued and, coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term,- Cardoso said. &#8220;This coordinated approach will contribute to a more balanced and stable exchange rate.-



Cardoso said the CBN was trying to improve liquidity in the foreign exchange market, reiterating a pledge to clear outstanding FX obligations after paying at least $2 billion of the estimated $7 billion owed.



(Additional reporting by Camillus Eboh; Editing by Alexander Winning and Barbara Lewis)

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

Nigeria central bank aims for 21% inflation, seeks to support naira

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/WZJ3UCHGFZMMTAMGENQ7PE7ELA.jpg" alt="" class="wp-image-449414" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/WZJ3UCHGFZMMTAMGENQ7PE7ELA.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/WZJ3UCHGFZMMTAMGENQ7PE7ELA-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/WZJ3UCHGFZMMTAMGENQ7PE7ELA-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/WZJ3UCHGFZMMTAMGENQ7PE7ELA-768x504.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: Boys help their father pack a vegetable and fruit stall in Soweto, South Africa, September 17, 2020. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Jan 24 (Reuters) &#8211; South Africa&#8217;s consumer inflation fell for the second month in a row in December, to 5.1% year on year from 5.5% in November, statistics agency data showed on Wednesday.



The latest reading takes headline inflation slightly closer to the mid-point of the central bank&#8217;s 3%-6% target range, or 4.5%, where the bank has said it wants to see inflation before contemplating interest rate cuts.



The average inflation rate for 2023 was 6.0%, lower than 6.9% in 2022, Statistics South Africa said. Inflation is expected to average 5% in 2024.



The South African Reserve Bank will announce a monetary policy decision on Thursday.



All 20 economists in a Reuters poll published last week predicted it would keep its main lending rate steady at 8.25%.



Analyst Annabel Bishop at Investec said Wednesday&#8217;s data was unlikely to change the bank&#8217;s view on this year&#8217;s inflation.



&#8220;MPC (Monetary Policy Committee) &#8230; will likely continue to have a hawkish tone, warning of inflation risks, although on balance is expected to keep interest rates unchanged,&#8221; Bishop said.



&#8220;The MPC&#8217;s last meeting forecast CPI inflation at 5.0% y/y for 2024 &#8230; today&#8217;s figure is unlikely to change its 2024 view.&#8221;



Core inflation, which excludes food and fuel prices, was unchanged in December at 4.5% in annual terms.



(Reporting by Nellie Peyton; Editing by Alexander Winning and Christina Fincher)

FILE PHOTO: Boys help their father pack a vegetable and fruit stall in Soweto, South Africa

South African inflation falls for second month in December

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-481660659-820x551.jpg" alt="" class="wp-image-449399" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-481660659-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-481660659-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-481660659-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-481660659-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-481660659-1536x1033.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-481660659-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The national flag of the Ivory Coast (Côte d&#8217;Ivoire). (Photo by: Education Images/Universal Images Group via Getty Images)</figcaption></figure>



ABIDJAN/LONDON, Jan 23 (Reuters) &#8211; Ivory Coast successfully raised $2.6 billion through two bonds with respective maturities of nine and 13 years in its first return to the international Eurobonds market after two years of absence, the government said in a statement on Tuesday.



It said the issuance drew interest from more than 400 investors, in a record-breaking operation that generated an order book exceeding $8 billion, representing the highest order level ever recorded by a sovereign in West Africa.



&#8220;This transaction witnessed historic mobilization from major global investors, including existing holders of Ivorian bonds and new benchmark investors,&#8221; the budget and finance ministry said in the statement.



The two new bonds carry respective interest rates of 6.30% and 6.85% upon execution, the statement said.



&#8220;Simultaneously with the bond issuance, a Dollar-Euro currency hedge operation covering the entire issued amount was executed, resulting in an average interest rate of 6.61%,&#8221; it added.



Many Sub-Saharan African economies were hit hard by COVID-19, the fallout from Russia&#8217;s war in Ukraine and rising global interest rates, which made foreign currency debt prohibitively expensive for most from early 2022 and locked them effectively out of international capital markets.



Ivory Coast&#8217;s finance ministry said in the statement that the funds will primarily be used to repurchase and refinance the country&#8217;s existing Eurobonds, as well as international bank loans.



&#8220;Through the proactive management of its public debt, Ivory Coast is providing flexibility and liquidity to the entire region,&#8221; the statement said.



The world&#8217;s largest cocoa producer, which operates within the West Africa Economic and Monetary Union (WAEMU) whose currency is pegged to the euro, had focussed on issuing bonds denominated in euros to reduce its currency exposure.



(Reporting by Loucoumane Coulibaly in Abidjan and Karin Strohecker in London; Writing by Bate Felix; Editing by Mark Potter and Sandra Maler)

The national flag of the Ivory Coast

Ivory Coast says it raised $2.6 bln in oversubscribed Eurobonds issuance

<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/EJIV7ODDIFMVTNGCINZUL2IS5Y-820x547.jpg" alt="" class="wp-image-449241" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/EJIV7ODDIFMVTNGCINZUL2IS5Y-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/EJIV7ODDIFMVTNGCINZUL2IS5Y-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/EJIV7ODDIFMVTNGCINZUL2IS5Y-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/EJIV7ODDIFMVTNGCINZUL2IS5Y-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/EJIV7ODDIFMVTNGCINZUL2IS5Y-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/EJIV7ODDIFMVTNGCINZUL2IS5Y-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of the African Development Bank Group Akinwumi Adesina welcomes U.S. Secretary of State Antony Blinken at the AfricaRice Headquarters in Abidjan, Ivory Coast on January 23, 2024. ANDREW CABALLERO-REYNOLDS/Pool via REUTERS</figcaption></figure>



ABIDJAN, Jan 23 (Reuters)&nbsp;&#8211;&nbsp;U.S. Secretary of State Antony Blinken on Tuesday pledged $45 million in additional financing to help fight conflict and bring stability to coastal West Africa, where insecurity linked to jihadist insurgencies has increased in recent years.



Blinken is on the second stop of a four-nation tour of Africa taking him to Cape Verde, Ivory Coast, Nigeria and Angola from Jan. 21-26.



The purpose of the trip is to discuss U.S.-African partnerships over trade, climate, infrastructure, health, security and other issues. It follows a summit in Washington with African leaders in December 2022.



Security challenges in West Africa, the fallout of a coup in Niger last year and Russia&#8217;s growing influence in the region are among key topics during Blinken&#8217;s trip.



He arrived in Ivory Coast&#8217;s financial capital Abidjan on Monday evening and met President Alassane Ouattara on Tuesday morning, after which he announced the extra financing at a joint press briefing.



Ivory Coast is one of several coastal West African countries impacted in recent years by Islamist insurgencies that took root in Mali in 2012 and spread across the Sahel region despite costly, internationally backed military efforts to contain it.



&#8220;We spent a lot of time discussing mutual security challenges,&#8221; Blinken said. &#8220;We appreciate Ivory Coast&#8217;s leadership in the fight against extremism and violence.&#8221;



The funding will supplement $300 million the U.S. has already invested in coastal West Africa over the past two years.



&#8220;We have increased military training by 15 times and are investing in civil protection in Ivory Coast,&#8221; Blinken added.



Ouattara said security in the region remained a challenge.



&#8220;That is why we do appreciate the USA for their support in the area of intelligence and the fight against terrorism,&#8221; he said.



The U.S. faced a setback in its fight against militants in the Sahel when military officers toppled Niger&#8217;s President Mohamed Bazoum, a key ally, in July last year.



The coup in Niger was one of a series of military takeovers or attempted power grabs that occurred in West and Central Africa over the past three years.



The instability has raised concern, particularly as juntas have cut ties with traditional Western allies such as the European Union and France, which withdrew thousands of troops from the Sahel last year.



Blinken met Akinwumi Adesina, president of the African Development Bank, at a sub-regional rice research institute in the afternoon. He is scheduled to fly to Nigeria in the evening.



(Reporting by Loucoumane Coulibaly; Writing by Sofia Christensen; Editing by Bate Felix and Nick Macfie)

U.S. Secretary of State Antony Blinken visits Ivory Coast

Blinken pledges $45 mln to boost coastal West Africa security

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107361594-1705663400079-gettyimages-1934702395-DAVOS_WEF_2024-820x461.jpeg" alt="" class="wp-image-449214" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107361594-1705663400079-gettyimages-1934702395-DAVOS_WEF_2024-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107361594-1705663400079-gettyimages-1934702395-DAVOS_WEF_2024-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107361594-1705663400079-gettyimages-1934702395-DAVOS_WEF_2024-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107361594-1705663400079-gettyimages-1934702395-DAVOS_WEF_2024-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107361594-1705663400079-gettyimages-1934702395-DAVOS_WEF_2024-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107361594-1705663400079-gettyimages-1934702395-DAVOS_WEF_2024.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Sam Altman, CEO of OpenAI, during a panel session at the World Economic Forum in Davos, Switzerland, on Jan. 18, 2024. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Executives at some of the world’s leading artificial intelligence labs are expecting a form of AI on a par with — or even exceeding — human intelligence to arrive sometime in the near future. But what it will eventually look like and how it will be applied remain a mystery.



Leaders from the likes of OpenAI, Cohere, Google’s DeepMind, and major tech companies like Microsoft and Salesforce weighed the risks and opportunities presented by AI at the World Economic Forum in Davos, Switzerland.



AI has become the talk of the business world over the past year or so, thanks in no small part to the success of ChatGPT, OpenAI’s popular generative AI chatbot. Generative AI tools like ChatGPT are powered large language models, algorithms trained on vast quantities of data.



That has stoked concern among governments, corporations and advocacy groups worldwide, owing to an onslaught of risks around the lack of transparency and explainability of AI systems; job losses resulting from increased automation; social manipulation through computer algorithms; surveillance; and data privacy.



<h2 class="wp-block-heading" id="h-agi-a-super-vaguely-defined-term"><a></a>AGI a ‘super vaguely defined term’</h2>



OpenAI’s CEO and co-founder Sam Altman said he believes artificial general intelligence might not be far from becoming a reality and could be developed in the “reasonably close-ish future.”



However, he noted that fears that it will dramatically reshape and disrupt the world are overblown.



“It will change the world much less than we all think and it will change jobs much less than we all think,” Altman said at a conversation organized by Bloomberg at the World Economic Forum in Davos, Switzerland.



Altman, whose company burst into the mainstream after the public launch of ChatGPT chatbot in late 2022, has changed his tune on the subject of AI’s dangers since his company was thrown into the regulatory spotlight last year, with governments from the United States, U.K., European Union, and beyond seeking to rein in tech companies over the risks their technologies pose.



In a May 2023 interview with ABC News, Altman said he and his company are “scared” of the downsides of a super-intelligent AI.



“We’ve got to be careful here,” said Altman told ABC. “I think people should be happy that we are a little bit scared of this.”



Then, Altman said that he’s scared about the potential for AI to be used for “large-scale disinformation,” adding, “Now that they’re getting better at writing computer code, [they] could be used for offensive cyberattacks.”



Altman was temporarily booted from OpenAI in November in a shock move that laid bare concerns around the governance of the companies behind the most powerful AI systems.



In a discussion at the World Economic Forum in Davos, Altman said his ouster was a “microcosm” of the stresses faced by OpenAI and other AI labs internally. “As the world gets closer to AGI, the stakes, the stress, the level of tension. That’s all going to go up.”



Aidan Gomez, the CEO and co-founder of artificial intelligence startup Cohere, echoed Altman’s point that AI will likely be a real outcome in the near future.



“I think we will have that technology quite soon,” Gomez told CNBC’s Arjun Kharpal in a fireside chat at the World Economic Forum.



But he said a key issue with AGI is that it’s still ill-defined as a technology. “First off, AGI is a super vaguely defined term,” Cohere’s boss added. “If we just term it as ‘better than humans at pretty much whatever humans can do,’ I agree, it’s going to be pretty soon that we can get systems that do that.”



However, Gomez said that even when AGI does eventually arrive, it would likely take “decades” for companies to truly be integrated into companies.



“The question is really about how quickly can we adopt it, how quickly can we put it into production, the scale of these models make adoption difficult,” Gomez noted.



“And so a focus for us at Cohere has been about compressing that down: making them more adaptable, more efficient.”



<h2 class="wp-block-heading"><a></a>‘The reality is, no one knows’</h2>



The topic of defining what AGI actually is and what it’ll eventually look like is one that’s stumped many experts in the AI community.



Lila Ibrahim, chief operating officer of Google’s AI lab DeepMind, said no one truly knows what type of AI qualifies as having “general intelligence,” adding that it’s important to develop the technology safely.



“The reality is, no one knows” when AGI will arrive, Ibrahim told CNBC’s Kharpal. “There’s a debate within the AI experts who’ve been doing this or a long time both within the industry and also within the organization.”



“We’re already seeing areas where AI has the ability to unlock our understanding &#8230; where humans haven’t been able to make that type of progress. So it’s AI in partnership with the human, or as a tool,” Ibrahim said.



“So I think that’s really a big open question, and I don’t know how better to answer other than, how do we actually think about that, rather than how much longer will it be?” Ibrahim added. “How do we think about what it might look like, and how do we ensure we’re being responsible stewards of the technology?”



<h2 class="wp-block-heading"><a></a>Avoiding a ‘s&#8212; show’</h2>



Altman wasn’t the only top tech executive asked about AI risks at Davos.



Marc Benioff, CEO of enterprise software firm Salesforce, said on a panel with Altman that the tech world is taking steps to ensure that the AI race doesn’t lead to a “Hiroshima moment.”



Many industry leaders in technology have warned that AI could lead to an “extinction-level” event where machines become so powerful they get out of control and wipe out humanity.



Several leaders in AI and technology, including Elon Musk, Steve Wozniak, and former presidential candidate Andrew Yang, have called for a pause to AI advancement, stating that a six-month moratorium would be beneficial in allowing society and regulators to catch up.



Geoffrey Hinton, an AI pioneer often called the “godfather of AI,” has previously warned that advanced programs “might escape control by writing their own computer code to modify themselves.”



“One of the ways these systems might escape control is by writing their own computer code to modify themselves. And that’s something we need to seriously worry about,” said Hinton in an October interview with CBS’ “60 Minutes.”



Hinton left his role as a Google vice president and engineering fellow last year, raising concerns over how AI safety and ethics were being addressed by the company.



Benioff said that technology industry leaders and experts will need to ensure that AI averts some of the problems that have beleaguered the web in the past decade or so — from the manipulation of beliefs and behaviors through recommendation algorithms during election cycles, to the infringement of privacy.



“We really have not quite had this kind of interactivity before” with AI-based tools, Benioff told the Davos crowd last week. “But we don’t trust it quite yet. So we have to cross trust.”



“We have to also turn to those regulators and say, ’Hey, if you look at social media over the last decade, it’s been kind of a f&#8212;ing s&#8212; show. It’s pretty bad. We don’t want that in our AI industry. We want to have a good healthy partnership with these moderators, and with these regulators.”



<h2 class="wp-block-heading"><a></a>Limitations of LLMs</h2>



Jack Hidary, CEO of SandboxAQ, pushed back on the fervor from some tech executives that AI could be nearing the stage where it gets “general” intelligence, adding that systems still have plenty of teething issues to iron out.



He said AI chatbots like ChatGPT have passed the Turing test, a test called the “imitation game,” which was developed by British computer scientist Alan Turing to determine whether someone is communicating with a machine and a human. But, he added, one big area where AI is lacking is common sense.



“One thing we’ve seen from LLMs [large language models] is very powerful can write says for college students like there’s no tomorrow, but it’s difficult to sometimes find common sense, and when you ask it, ‘How do people cross the street?’ it can’t even recognize sometimes what the crosswalk is, versus other kinds of things, things that even a toddler would know, so it’s going to be very interesting to go beyond that in terms of reasoning.”



Hidary does have a big prediction for how AI technology will evolve in 2024: This year, he said, will be the first that advanced AI communication software gets loaded into a humanoid robot.



“This year, we’ll see a ‘ChatGPT’ moment for embodied AI humanoid robots right, this year 2024, and then 2025,” Hidary said.



“We’re not going to see robots rolling off the assembly line, but we’re going to see them actually doing demonstrations in reality of what they can do using their smarts, using their brains, using LLMs perhaps and other AI techniques.”



“20 companies have now been venture backed to create humanoid robots, in addition of course to Tesla, and many others, and so I think this is going to be a conversion this year when it comes to that,” Hidary added.

107361594-1705663400079-gettyimages-1934702395-DAVOS_WEF_2024

Tech execs say a type of AI that can outdo humans is coming, but have no idea what it looks like

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



Jan 23 (Reuters)&nbsp;&#8211;&nbsp;Equities in emerging markets regained ground on Tuesday, supported by news of potential steps by Chinese authorities to stabilise domestic stock markets, while regional currencies were mixed against a softer dollar.



MSCI&#8217;s index of emerging market equities&nbsp;.MSCIEF&nbsp;advanced 0.4% by 0900 GMT, with Hong Kong&#8217;s Hang Seng&nbsp;.HSI&nbsp;index leading the charge, jumping 2.6%.



Stocks in mainland China .CSI300 also ended higher after China&#8217;s cabinet said on Monday it will step up measures to stabilise market confidence. However the index was not far from five-year lows hit last week.



Policymakers are seeking to mobilise about 2 trillion yuan ($278.53 billion) as part of a stabilisation fund to buy shares onshore through the Hong Kong exchange link, according to a Bloomberg News report. China&#8217;s yuan CNY=CFXS firmed 0.3% against the dollar.



&#8220;This is a strong message that conveys Beijing’s intention to artificially support Chinese markets,&#8221; ING strategists said in a research note, but added it was only a temporary fix.



&#8220;Ultimately, stronger conviction on a Chinese economic rebound is likely necessary to drive a sustainable recovery in Chinese-linked stocks.&#8221;



Taiwan&nbsp;.TWII&nbsp;and South Korea&#8217;s&nbsp;.KS11&nbsp;tech-heavy stock indexes also rose, tracking a positive finish on Wall Street overnight. Equities in Turkey&nbsp;.XU100&nbsp;and South Africa&nbsp;.JTOPI&nbsp;gained over 1%.



Japanese shares .N225 surged to fresh 34-year highs as the Bank of Japan stood pat on ultra-loose monetary policy.



Assets in emerging markets (EM) have been under pressure this year due to concerns around China&#8217;s economic growth and reduced bets of U.S. interest rate cuts. Investors are now awaiting policy decisions from the European Central Bank (ECB) as well as South Africa and Turkey this week.



Indian shares .NSEI, .BSESN were among laggards on Tuesday, pulled down by a drop in shares of Zee EntertainmentZEE.NS.



Among currencies, the South African rand&nbsp;ZAR=&nbsp;came off three month lows to trade at 19.1161 to the dollar. However, the Israeli shekel&nbsp;ILS=&nbsp;and the Turkish lira&nbsp;TRYTOM=D3&nbsp;were weaker.



A broader gauge of EM currencies&nbsp;.MIEM00000CUS&nbsp;was muted.



Sri Lanka&#8217;s central bank kept interest rates steady on Tuesday, in line with market expectations as a new tax threatened upward pressure on expenses. The country&#8217;s CSE index .CSE dipped 1.0% while the local currency LKR= was flat.



(Reporting by Amruta Khandekar; Editing by Angus MacSwan)

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Nigeria central bank aims for 21% inflation, seeks to support naira

South African inflation falls for second month in December

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