<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-820x547.jpg" alt="" class="wp-image-420940" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1319228121-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s national flag in Hong Kong. Photographer: Paul Yeung/Bloomberg</figcaption></figure>



BEIJING, Dec 19 (Reuters) &#8211; China is able to achieve economic growth of 5% in 2024, Wang Yiming, a policy adviser to the central bank, said on Tuesday.



China&#8217;s economy is likely to grow 5% next year, if investment rises 4-5%, consumption rises 6-7%, and exports return to growth, Wang told an economic forum in Beijing.



China has space to step up support for the economy, given that its central government debt burden is relatively low and consumer prices are also low, Wang said.



China&#8217;s consumer prices fell at the fastest rate in three years in November.



Wang said China may be able to cut interest rates as the Federal Reserve has likely stopped raising its own rates, although a wide interest rate gap between the two countries and worries about the impact on banks could act as constraints.



At the annual Central Economic Work conference held from Dec. 11-12, Chinese leaders pledged to adjust policy to support an economic recovery in 2024.



China&#8217;s growth is expected to hit the government&#8217;s target of around 5% this year. (Reporting by Albee Zhang and Kevin Yao; Editing by Kirsten Donovan)

Chinese National Flag

China can achieve 5% economic growth in 2024, c.bank adviser says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="463" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NENDO62V3ZLP5MPGSLW3PPS3G4.jpg" alt="" class="wp-image-437940" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NENDO62V3ZLP5MPGSLW3PPS3G4.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NENDO62V3ZLP5MPGSLW3PPS3G4-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NENDO62V3ZLP5MPGSLW3PPS3G4-142x90.jpg 142w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A general picture shows the skyline of Tanzania&#8217;s port city of Dar es Salaam, File. REUTERS/Andrew Emmanuel</figcaption></figure>



NAIROBI, Dec 19 (Reuters)&nbsp;&#8211;&nbsp;Tanzania&#8217;s economy is expected to grow by about 5.5% in 2024, up from about 5% in 2023,&nbsp;but it faces risks from external geopolitical factors, its&nbsp;finance minister and central bank governor said in a letter to the International Monetary Fund.



In June, Finance Minister Mwigulu Nchemba said the East African nation&#8217;s economy was forecast to grow 5.2% this year.



&#8220;Intensification of geopolitical conflicts, increased commodity price volatility, abrupt global slowdown or recession, and natural disasters related to climate change could weigh negatively on the near-term outlook of the Tanzanian economy,&#8221; Nchemba and Central Bank Governor Emmanuel Tutuba said in the letter, made public late on Monday.



Nchemba and Tutuba said in the Nov. 27 letter that the central bank had sold $353.9 million on the foreign exchange market between July and October and had reduced the frequency and amounts of interventions.



&#8220;Going forward, forex interventions will be limited to addressing disorderly market conditions while the exchange rate will be allowed to be flexible to cushion the economy against external shocks,&#8221; Nchemba and Tutuba said.



Tanzania&#8217;s economy largely relies on tourism, mining, agriculture and manufacturing.



(Reporting by George Obulutsa; Editing by Edmund Klamann and Gerry Doyle)

NENDO62V3ZLP5MPGSLW3PPS3G4

Tanzania GDP to grow about 5.5% in 2024 – finmin, cenbank gov

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-820x542.jpg" alt="" class="wp-image-437936" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker prepares a garment at the the Utexrwa garment factory in Kigali, Rwanda April 17, 2018. REUTERS/Jean Bizimana</figcaption></figure>



NAIROBI, Dec 19 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s economy is expected to grow 6.6% in 2024, up from this year&#8217;s figure of 6.2%, the finance minister and central bank governor told the International Monetary Fund in a letter.



In February, Finance Minister Uzziel Ndagijimana had forecast economic growth of about 7.5% for the East African country in 2024 and 2025. The economy grew 8.2% in 2022.



&#8220;We foresee a temporary softening of economic growth, driven by needed tighter fiscal and monetary policies,&#8221; Ndagijimana and Central Bank Governor John Rwangombwa said in the Nov. 29 letter, made public late on Monday.



&#8220;On the demand side, private consumption and investment are expected to be the main growth drivers in the medium term as



fiscal consolidation ensues.&#8221;



In November, Rwanda&#8217;s central bank held its key lending rate at 7.5% RWREPO=ECI, saying it saw inflation falling towards its target range of 2% to 8% by year-end.



External factors could cloud the outlook for growth, however, Ndagijimana and Rwangombwa said.



&#8220;A further deepening of geopolitical fragmentation, another spike in global energy, food, and fertiliser prices, or a steeper decline in trading partners growth would weigh on the outlook,&#8221; they said.



(Reporting by George Obulutsa; Editing by Jacqueline Wong and Clarence Fernandez)

A worker prepares a garment at the the Utexrwa garment factory in Kigali

Rwanda says GDP growth expected to rise in 2024, still below 2022 figure

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-820x547.jpg" alt="" class="wp-image-421437" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, September 28, 2022. REUTERS/Yves Herman</figcaption></figure>



NAIROBI, Dec 18 (Reuters)&nbsp;&#8211;&nbsp;Kenya and the European Union moved closer to sealing an Economic Partnership Agreement that will grant the East African nation&#8217;s exports duty-free status and unlimited access to the bloc, officials said on Monday.



Both sides had initialled a draft deal in June after seven months of negotiations. The EU is one of Kenya&#8217;s biggest export markets.



The deal was approved by the European Union Council last week. It will now be presented to the parliaments of both sides for ratification before it comes into force.



&#8220;Today&#8217;s agreement heralds a new dawn where Kenyan goods gain immediate duty- and quota-free access to the European market,&#8221; Rebecca Miano, Kenya&#8217;s trade minister, said before signing the agreement at a ceremony in Nairobi.



&#8220;Over time, European goods will also gain preferential access to the Kenyan market.&#8221;



Kenya is a major exporter of tea, coffee, flowers, fruits and vegetables to the EU, which accounts for 21% of its overall exports. It buys machinery, pharmaceuticals and other chemicals from the EU.



Bilateral trade between the two stood at a total of 3.3 billion euros in 2022, EU and Kenya government data showed, making it the East African nation&#8217;s second largest trade partner.



Kenya signed an initial trade deal with the EU in 2016, alongside its partners in the then six member nation East African Community trade bloc, but it was not signed by most of the EAC countries and therefore did not fully come into effect.



The EAC has since expanded to eight member nations, who will all be welcome to join the new deal, Kenya&#8217;s President William Ruto said.



&#8220;This agreement that we are signing today leaves the door open, and I say, wide open, for our EAC partners to join,&#8221; President William Ruto said at the ceremony.



While the other EAC members are classified as least developed countries, meaning their exports could continue to get access without the deal, Kenya is middle income and therefore had to seek a stand-alone arrangement.



&#8220;We encourage the other Eastern African countries to join,&#8221; EU Commission President Ursula von der Leyen said.



(Reporting by George Obulutsa; Editing by Duncan Miriri and Michael Perry)

TP5R6HBNPZIGTOANNA35PFUUUM

Kenya, EU advance economic partnership agreement to boost trade

<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>



Dec 14 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets currencies and stocks hit two-week highs on Thursday after the U.S. Federal Reserve tilted to a dovish policy stance, while Argentina&#8217;s inflation hit 161%, underscoring the challenges for the new government.



MSCI&#8217;s gauge of emerging markets stocks&nbsp;.MSCIEF&nbsp;jumped 1.6%, while a basket of currencies&nbsp;.MIEM00000CUS&nbsp;advanced 0.8% against the dollar by 0927 GMT.



The Fed left interest rates unchanged on Wednesday, with Chair Jerome Powell saying the historic tightening of monetary policy is likely over with a discussion of cuts in borrowing costs coming &#8220;into view.&#8221;



&#8220;The Fed acknowledged the better inflation outlook and the employment slowdown but was careful not to give totally in to market expectations of a quick pace of rate cuts,&#8221; said Paolo Zanghieri, senior economist at Generali Investments.



&#8220;Chair Powell sounded rather optimistic on inflation and not particularly worried about the last leg of disinflation being particularly difficult,&#8221; Zanghieri added.



In South America, the focus remained on Argentina as data on Wednesday showed annual inflation rate hit 161% in November, faster than expected and the highest monthly figure this year.



The data reflected the daunting challenges new President Javier Milei faces in navigating the country&#8217;s turbulent economic waters and is the first inflation report since Milei took office last Sunday.



Most regional stocks across Asia jumped, with equities across Turkey and South Africa also advancing.



The only outlier was China, as the Shanghai Composite Index .SSEC and the blue-chip stocks .CSI300 fell 0.3% and 0.5% respectively after data showed new bank lending in China jumped less than expected in November.



However, the Chinese offshore yuan&nbsp;CNH=D3&nbsp;hit more than a one-week high and was last seen at 7.1435 to the dollar.



Elsewhere in Asia, both the central banks of Philippines and Taiwan kept interest rates steady unchanged.



South African rand&nbsp;ZAR=&nbsp;was little changed ahead of local economic data.



Russia&#8217;s rouble&nbsp;RUBUTSTN=MCX&nbsp;rose to a near two-week high and was last trading at 89.5250 per dollar after the Fed decision, while investors awaited the domestic central bank&#8217;s policy decision on Friday.



In Central and Eastern Europe, both the Hungarian forint&nbsp;EURHUF=&nbsp;and Polish zloty&nbsp;EURPLN=&nbsp;were down 0.2% versus the euro after rising slightly, while the Czech crown&nbsp;EURCZK=&nbsp;held steady.



The European Commission said on Wednesday that Hungary could start claiming up to 10.2 billion euros ($11.00 billion) in refunds on projects after finding it had fulfilled conditions on the independence of its judiciary.



Brazil&#8217;s central bank lowered its benchmark interest rate by 50 basis points on Wednesday for the fourth time in a row and signaled that it would keep cutting rates at that pace beyond its next meeting.



The central bank decisions of Mexico and Peru and Brazil&#8217;s retail sales are due later in the day.



(Reporting by Siddarth S in Bengaluru; Editing by Varun H K)

World map with charts and graphs as symbols of global finance

EM assets hit two-week highs on dovish Fed tilt; Argentina’s CPI hits 161%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107235681-1683214886781-gettyimages-1252628483-US-WASHINGTON_DC-FED-INTEREST_RATES-HIKE-820x461.jpeg" alt="" class="wp-image-436114" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107235681-1683214886781-gettyimages-1252628483-US-WASHINGTON_DC-FED-INTEREST_RATES-HIKE-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107235681-1683214886781-gettyimages-1252628483-US-WASHINGTON_DC-FED-INTEREST_RATES-HIKE-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107235681-1683214886781-gettyimages-1252628483-US-WASHINGTON_DC-FED-INTEREST_RATES-HIKE-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107235681-1683214886781-gettyimages-1252628483-US-WASHINGTON_DC-FED-INTEREST_RATES-HIKE-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107235681-1683214886781-gettyimages-1252628483-US-WASHINGTON_DC-FED-INTEREST_RATES-HIKE-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107235681-1683214886781-gettyimages-1252628483-US-WASHINGTON_DC-FED-INTEREST_RATES-HIKE.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



The Federal Reserve on Wednesday held its key interest rate steady for the third straight time and set the table for multiple cuts to come in 2024 and beyond.



With the inflation rate easing and the economy holding in, policymakers on the Federal Open Market Committee voted unanimously to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.&nbsp;



Along with the decision to stay on hold, committee members penciled in at least three rate cuts in 2024, assuming quarter percentage point increments. That’s less than market pricing of four, but more aggressive than what officials had previously indicated. 



Markets had widely anticipated the decision to stay put, which could end a cycle that has seen 11 hikes, pushing the fed funds rate to its highest level in more than 22 years. There was uncertainty, though, about how ambitious the FOMC might be regarding policy easing. Following the release of the decision, the Dow Jones Industrial Average jumped more than 400 points, surpassing 37,000 for the first time.



The committee’s “dot plot” of individual members’ expectations indicates another four cuts in 2025, or a full percentage point. Three more reductions in 2026 would take the fed funds rate down to between 2%-2.25%, close to the long-run outlook, though there was considerable dispersion in the estimates for the final two years. 



Markets, though, followed up the meeting and Chair Jerome Powell’s press conference by pricing in an even more aggressive rate-cut path, anticipating 1.5 percentage points in reductions next year, double the FOMC’s indicated pace.



In a possible nod that hikes are over, the statement said that the committee would take multiple factors into account for “any” more policy tightening, a word that had not appeared previously. 



“While the weather is still cold outside, the Fed has suggested a potential thawing of frozen high interest rates over the next few months,” said Rick Rieder, chief investment officer of global fixed income at asset management giant BlackRock.



Along with the interest rate hikes, the Fed has been allowing up to $95 billion a month in proceeds from maturing bonds to roll off its balance sheet. That process has continued, and there has been no indication the Fed is willing to curtail that portion of policy tightening.&nbsp;



<h2 class="wp-block-heading" id="h-inflation-eased-over-the-past-year"><a></a>Inflation ‘eased over the past year’</h2>



The developments come amid a brightening picture for inflation that had spiked to a 40-year high in mid-2022.&nbsp;



“Inflation has eased from its highs, and this has come without a significant increase in unemployment. That’s very good news,” Chair Jerome Powell said during a news conference.



That echoed new language in the post-meeting statement. The committee added the qualifier that inflation has “eased over the past year” while maintaining its description of prices as “elevated.”&nbsp;Fed officials see core inflation falling to 3.2% in 2023 and 2.4% in 2024, then to 2.2% in 2025. Finally, it gets back to the 2% target in 2026.



Economic data released this week showed both consumer and wholesale prices were little changed in November. By some measures, though, the Fed is nearing its 2% inflation target. Bank of America’s calculations indicate that the Fed’s preferred inflation gauge will be around 3.1% year over year in November, and actually could hit a 2% six-month annualized rate, meeting the central bank’s goal. 



The statement also noted that the economy “has slowed,” after saying in November that activity had “expanded at a strong pace.”&nbsp;



In the news conference, Powell said: “Recent indicators suggest that growth in economic activity has slowed substantially from the outsized pace seen in the third quarter. Even so, GDP is on track to expand around 2.5% for the year as a whole.”



Committee members upgraded gross domestic product to grow at a 2.6% annualized pace in 2023, a half percentage point increase from the last update in September. Officials see GDP at 1.4% in 2024, roughly unchanged from the previous outlook. Projections for the unemployment rate were largely unchanged, at 3.8% in 2023 and rising to 4.1% in subsequent years. &nbsp;



Officials have stressed their willingness to hike rates again if inflation flares up. However, most have said they can be patient now as they watch the impact the previous policy tightening moves are having on the U.S. economy. &nbsp;



Stubbornly high prices have exacted a political toll on President Joe Biden, whose approval rating has suffered in large part because of negative sentiment on how he has handled the economy. There had been some speculation that the Fed could be reluctant to make any dramatic policy actions during a presidential election year, which looms large in 2024. 



However, with real rates, or the difference between the fed funds rate and inflation, running high, the Fed would be more likely to act if the inflation data continues to cooperate.

107235681-1683214886781-gettyimages-1252628483-US-WASHINGTON_DC-FED-INTEREST_RATES-HIKE

Fed holds rates steady, indicates three cuts coming in 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-820x546.jpg" alt="" class="wp-image-412999" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of the headquarter of the embattled South African main electricity provider ESKOM is pictured on February 4, 2015 in Johannesburg. South Africa power supply was under &#8220;extreme&#8221; pressure on February 2, 2015 and likely to remain so until end of the week after a technical fault at the country&#8217;s sole nuclear plant, electricity utility Eskom said. AFP PHOTO/GIANLUIGI GUERCIA (Photo by Gianluigi GUERCIA / AFP) (Photo by GIANLUIGI GUERCIA/AFP via Getty Images)</figcaption></figure>



Dec 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s struggling state power company Eskom said on Wednesday it made a 1.6 billion rand ($84 million) profit after tax in the first six months of its financial year to the end of September.



The debt-laden utility has this year implemented the worst power cuts on record in Africa&#8217;s most industrialised economy.



&#8220;Eskom cautions that despite achieving a profit in the first six months, an after-tax loss of 23.2 billion rand is expected by the end of the financial year,&#8221; it added in a statement.



Eskom cited poor generating plant performance, tariffs which it says do not allow it to fully recover its costs, high debt servicing costs and non-payment by some customers among reasons for the projected full-year loss.



($1 = 19.0557 rand)



(Reporting by Alexander Winning; Editing by Mark Potter)

SAFRICA-ELECTRICITY-NUCLEAR-ECONOMY-ENERGY

South Africa’s Eskom makes H1 profit but sees full-year loss

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GTR4FRR34RIYHMTLPBM4CQTLEI-820x547.jpg" alt="" class="wp-image-435831" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GTR4FRR34RIYHMTLPBM4CQTLEI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GTR4FRR34RIYHMTLPBM4CQTLEI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GTR4FRR34RIYHMTLPBM4CQTLEI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GTR4FRR34RIYHMTLPBM4CQTLEI-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GTR4FRR34RIYHMTLPBM4CQTLEI-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GTR4FRR34RIYHMTLPBM4CQTLEI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Firefighters tackle fire in a field as forest fires ravage the Bolivian Amazon, in San Buenaventura, Bolivia November 22, 2023. REUTERS/Claudia Morales//File Photo</figcaption></figure>



DUBAI, Dec 13 (Reuters)&nbsp;&#8211;&nbsp;How to adapt to the impacts of climate change was one of the many difficult questions addressed at the COP28 talks in Dubai &#8211; and how to pay for it has yet to be answered.



The final deal from the U.N. climate summit in Dubai on Wednesday was vague on where much-needed finance would come from &#8211; a topic picked up by a number of countries as they commented on the deal.



&#8220;Adaptation is really a life and death issue,&#8221; the Bangladesh climate envoy Saber Hossain Chowdhury said. &#8220;We cannot compromise on adaptation. We cannot compromise on lives and livelihoods.&#8221;



So finance should be &#8220;geared to delivering the resources that we need,&#8221; he said. &#8220;It&#8217;s absolutely fundamental.&#8221;



A source involved in the talks said a push for firmer action had been hampered by the need to agree a new overall climate finance target next year. The current $100 billion annual target &#8211; which had been missed in the past &#8211; expires in 2025.



Despite that, the source said delegates had increasingly acknowledged adaptation finance was not just about moving &#8220;chunks of money north to south&#8221;, but part of a wider discussion about what a country&#8217;s economy would look like in the future.



As a result, a requirement in the final deal for countries to deliver a national adaptation plan by 2030 &#8211; 51 countries have already done so &#8211; should, in theory, help the available money get to where it is needed most.



<h2 class="wp-block-heading" id="h-significant-start">&#8216;SIGNIFICANT START&#8217;</h2>



Despite concern around the lack of commitment to provide more money, Singapore&#8217;s environment minister said she was glad the topic had risen up the agenda.



&#8220;As a small island state we struggled with adaptation for many editions of COP,&#8221; said Grace Fu, so the inclusion of more focused language in the final deal text was &#8220;a very significant start for us&#8221;.



The sharper focus followed a landmark November U.N. report showing that developing nations would need up to 18 times more funding than they currently receive to build resilience into their economies to withstand the impacts of climate change.



The annual financing shortfall for adaptation was as much as $366 billion, compared with the $25 billion provided during the 2017-2021 period, the U.N. Environment Programme (UNEP) said.



David Nicholson, chief climate officer at humanitarian NGO Mercy Corps, called the report a &#8220;wake-up call&#8221;.



Yet money flows remain sluggish. The biggest news announced at COP28 was a commitment of $3 billion in new money from the United States to the Green Climate Fund, which aims to put at least half of its investment dollars into adaptation projects.



&#8220;At COP28, the international community made progress in righting the scales,&#8221; GCF chief Mafalda Duarte told Reuters, pointing to a total of $12.8 billion in new capital raised for the fund to support climate action across the developing world.



&#8220;It must mobilise global solidarity with those countries least prepared to safeguard communities from climate impacts.&#8221;



A U.N. Adaptation Fund, though, had only raised around half of the $300 million it had hoped to reach in 2023 by the end of the conference.



<h2 class="wp-block-heading" id="h-hurdles">HURDLES</h2>



For many private investors, the hurdles include working out how to make a profit from projects, even though failure to finance adaptation could ultimately impact their other investments.



&#8220;Lenders are finding it challenging to see the returns that can be made in this sector. There are insufficient incentives for lenders at the moment,&#8221; John Shum, partner at law firm King &amp; Wood Mallesons, said.



The areas where investors could do more include helping to bolster natural ecosystems in exchange for valuable carbon credits or building climate-resilient infrastructure. Others are also investing in bonds linked to protecting nature.



Regulators also need to force companies to disclose their exposure to the physical risks of climate change and to reward those taking action to reduce their exposure through better credit ratings and lower capital requirements, said Rowan Douglas, CEO, at Howden Climate Risk and Resilience.



&#8220;Without it, there is limited economic rationale or reward for investing in adaptation.&#8221;



For Yvonne Aki-Sawyerr, mayor of the Sierra Leone capital Freetown, among the most vulnerable cities in Africa as it faces floods and coastal erosion, adaptation and mitigation, such as greening energy supplies, needed to be considered together.



&#8220;Making too fine a distinction just makes for division. We&#8217;re at the point now where we should be addressing the climate crisis and the funding should be what it is.&#8221;



(Reporting by Simon Jessop, David Stanway, Kate Abnett; Editing by Katy Daigle and Barbara Lewis)

FILE PHOTO: Firefighters tackle fire in a field as forest fires ravage the Bolivian Amazon, in San Buenaventura

COP28 calls for adapting to warmer world without resolving how to pay

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2NYL26N5I5JW3NDSK4SNUHQ7QM-820x521.jpg" alt="" class="wp-image-435811" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2NYL26N5I5JW3NDSK4SNUHQ7QM-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2NYL26N5I5JW3NDSK4SNUHQ7QM-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2NYL26N5I5JW3NDSK4SNUHQ7QM-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2NYL26N5I5JW3NDSK4SNUHQ7QM-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2NYL26N5I5JW3NDSK4SNUHQ7QM-1536x977.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2NYL26N5I5JW3NDSK4SNUHQ7QM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Union for Democracy and Social Progress (UDPS) party supporters gather as they wait for the arrival of Democratic Republic of the Congo&#8217;s President Felix Tshisekedi for a campaign rally at the Afia stadium in Goma, North Kivu province of the Democratic Republic of Congo December 10, 2023. REUTERS/Stringer/File Photo</figcaption></figure>



KINSHASA, Dec 13 (Reuters)&nbsp;&#8211;&nbsp;Democratic Republic of Congo&#8217;s government has asked the United Nations to allow its peacekeeping mission to help with the logistics of organising national elections next week, according to a letter seen by Reuters.



There have been challenges in the distribution of voting materials in Africa&#8217;s second-largest country due to a lack of paved roads and conflict in rebel-plagued eastern provinces, where a U.N. peacekeeping mission is deployed.



The mission, known as MONUSCO, has already helped deliver voting materials in the eastern provinces of Ituri, North Kivu and South Kivu. Its mandate is currently limited to those areas.



In a letter dated Dec. 12, the Kinshasa government asked the U.N. Security Council to allow MONUSCO to extend its logistical support to other provinces.



The mission&#8217;s spokesperson, Ndeye Khady Lo, confirmed the letter and said the mission was waiting for the Security Council&#8217;s reply.



Congo&#8217;s government and its national electoral commission (CENI) did not immediately respond to requests for comment.



Some analysts and civil society groups have raised concerns that the election on Dec. 20 could be delayed. In 2018, Congo postponed the vote by one week just three days before it was set to take place.



The CENI last week asked the presidency to provide aircraft urgently to help distribute voting materials in hard-to-reach areas.



The government has meanwhile asked neighbouring Angola to lend it some planes for the election period. But its request was refused because it came too late, a diplomatic source said.



(Reporting by Sonia Rolley; Writing by Sofia Christensen; Editing by Nellie Peyton and Mark Heinrich)

UDPS party supporters gather as they wait for the arrival of Democratic Republic of the Congo’s President Felix Tshisekedi for a campaign rally at the Afia stadium in Goma

Congo asks U.N. to help with challenging election logistics

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-820x518.jpg" alt="" class="wp-image-435757" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-768x485.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-1536x971.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u presents the Government Budget for the 2023/24 fiscal year inside the Parliament building in Nairobi, Kenya June 15, 2023. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Dec 13 (Reuters)&nbsp;&#8211;&nbsp;Kenya is searching for ways to bring its budget deficit for this financial year close to its original target after a slump in its currency forced its upward revision, a finance ministry official said on Wednesday.



The East African nation&#8217;s government revised its spending plans for the 2023/24 financial year to June 2024 in late October, after currency weakening increased foreign debt repayments by 1% of gross domestic product.



In the revised budget, the fiscal deficit was increased to 5.5% of GDP from the initial 4.4%, eliciting concerns about the government&#8217;s ability to stabilise public debt.



&#8220;We are still looking around to see how we can bring this 5.5 to 4.7% as a minimum,&#8221; Musa Kathanje, the director macro and fiscal affairs at the ministry, told an event convened to prepare the budget for the 2024/25 financial year.



Kenya&#8217;s central bank raised its benchmark lending rate by 200 basis points to its highest level in more than a decade last week, to try to stabilise the exchange rate.



The tighter monetary stance will work, Finance Minister Njuguna Ndung&#8217;u told the same budget preparation forum, helping to stabilise the macroeconomic fundamentals.



Officials also want to bring down the inflation rate, which has been stuck at close to 7% for the last three months, to around 5%.



The government expects the economy to grow by 5.5% this year and by a similar rate next year, finance ministry officials said.



The economy grew 4.8% in 2022.



(Reporting by Duncan Miriri; Editing by George Obulutsa and Tomasz Janowski)

FILE PHOTO: Kenya’s Finance Minister Njuguna Ndung’u presents the Government Budget for the 2023/24 fiscal year in Nairobi

Kenya eyes return to lower deficit this year, Treasury official says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/YU3SW7PWBVPE3AVFYSDN7VQI5Q-820x507.jpg" alt="" class="wp-image-435753" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/YU3SW7PWBVPE3AVFYSDN7VQI5Q-820x507.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/YU3SW7PWBVPE3AVFYSDN7VQI5Q-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/YU3SW7PWBVPE3AVFYSDN7VQI5Q-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/YU3SW7PWBVPE3AVFYSDN7VQI5Q-768x474.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/YU3SW7PWBVPE3AVFYSDN7VQI5Q-1536x949.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/YU3SW7PWBVPE3AVFYSDN7VQI5Q-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A customer compares prices while shopping at a Pick and Pay shop in East London, in the Eastern Cape province, South Africa, March 17, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Dec 13 (Reuters)&nbsp;&#8211;&nbsp;South African inflation slowed for the first time in four months in November thanks to cooling fuel prices which overpowered still-rising food costs.



Headline consumer inflation fell to 5.5% year on year in November from 5.9% in October&nbsp;ZACPIY=ECI, data from the statistics agency showed on Wednesday, a slightly bigger fall than the 5.6% predicted by analysts polled by Reuters.



South Africa&#8217;s central bank, the South African Reserve Bank (SARB) targets inflation between 3% and 6%.



Independent economist Elize Kruger said at 9.0% year on year food price inflation was higher than expected but that overall the data left her expectations intact that the SARB would stay cautious and keep interest rates at elevated levels in the coming months.



The SARB kept its main interest rate unchanged for the third policy meeting in a row last month, with Governor Lesetja Kganyago reiterating that the bank saw inflation stabilising around the mid-point of its target band by 2025.



Razia Khan, chief economist for Africa and the Middle East at Standard Chartered Bank, said headline inflation would probably fall further in December as more fuel price cuts were expected.



&#8220;With the inflation outlook improving &#8211; we think current rand weakness is temporary &#8211; the SARB should be in a position to roll back some of these hikes,&#8221; Khan said, adding the first interest rate cut could come in March.



Wednesday&#8217;s inflation figures had little effect on the rand, which was last trading&nbsp;ZAR=D3&nbsp;around 0.5% weaker against the dollar on the day.



Core inflation&nbsp;ZACPYY=ECI, which excludes food and fuel prices, rose to 4.5% year on year in November from 4.4% in October.



(Editing by Alexander Winning and Alison Williams)

FILE PHOTO: South Africans face more interest rate hike pain as inflation sticks

South African inflation back on downward path thanks to fuel

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



BLANTYRE, Dec 13 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has approved $137 million of budget support for Malawi, with an immediate disbursement of $80 million, the bank said in a statement.



The funding will help the southern African country enhance fiscal sustainability, stimulate private sector-led growth, and increase resilience to shocks, the World Bank said.



After the initial $80 million, the remaining $57 million can be triggered in the event of a crisis, it added.



The support comes as Malawi battles chronic foreign-currency shortages that have led to a lack of fuel, medicines and fertilisers.



Malawi devalued its kwacha currency by 30% against the dollar last month.



&#8220;The Bank is now able to respond with a substantial budget support operation that supports an ongoing program of reforms,&#8221; said Nathan Belete, World Bank country director for Malawi, Zambia, Zimbabwe and Tanzania.



The International Monetary Fund, which approved a loan of about $178 million to Malawi in November, has said the country needs almost $1 billion in debt relief by 2027.



(Reporting by Frank Phiri; Writing by Bhargav Acharya; Editing by Alexander Winning and Alison Williams)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

World Bank approves $137 million budget support for Malawi

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-820x461.jpeg" alt="" class="wp-image-435715" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">COP28 president Sultan Ahmed Al Jaber speaks during the Transforming Food Systems in the Face of Climate Change event on the sidelines of the COP28 climate summit at Dubai Expo on December 1, 2023. Ludovic Marin | Afp | Getty Images</figcaption></figure>



Government ministers representing nearly 200 countries on Wednesday agreed to a deal that calls for a transition away from fossil fuels, after a previous proposal was met with heated and widespread backlash.



“With an unprecedented reference to transitioning away from all fossil fuels, The UAE Consensus is delivering a paradigm shift that has the potential to redefine our economies,” the summit’s UAE presidency said on social media. Dubai has been hosting the conference for the past two weeks against a backdrop of controversy, geopolitical conflicts and increasing extreme weather events.



“We delivered world first after world first,” the UAE summit presidency said in a further social media update. “A global goal to triple renewables and double energy efficiency. Declarations on agriculture, food and health. More oil and gas companies stepping up for the first time on methane and emissions. And we have language on fossil fuels in our final agreement.”



The latest proposal published by the UAE earlier on Wednesday called for “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science.”



The deal text also urged for “accelerating efforts towards the phase-down of unabated coal power” and for “tripling renewable energy capacity globally and doubling the global average annual rate of energy efficiency improvements by 2030.”



Critically, the proposal did not mandate an absolute phase-out of hydrocarbons.



A “phase-out” commitment would likely have required a shift away from fossil fuels until their use is eliminated, while a “phase down” agreement would have indicated a reduction in their use — but not an absolute end.



Many believed the COP28 summit could only be considered a success if it resulted in a deal to “phase out” all fossil fuels. On Monday, one young climate activist burst onto the stage to call for action on this issue. Licypriya Kangujam, 12, interrupted a presidency event while holding a sign that read: “End fossil fuel. Save our planet and our future.”



The burning of coal, oil and gas is the largest contributor to climate change, accounting for more than three quarters of global greenhouse gas emissions.



The Wednesday announcement comes after a previous draft text published in the final throes of the talks triggered widespread criticism for failing to include language on ending the use of fossil fuels, as negotiations laid bare deep divisions among policymakers over the future of hydrocarbons.



The draft deal of Monday suggested a range of options for countries to accelerate climate action but, crucially, it omitted language regarding a “phase-out” or “phase down” of fossil fuels.



Alok Sharma, the U.K.’s COP26 president, on Tuesday said that only a deal including “very clear” language on the phase-out of fossil fuels and a credible plan to deliver that would be good enough to keep alive the prospect of limiting global warming to 1.5 degrees Celsius.



The 1.5 degrees Celsius threshold is the aspirational global temperature limit set in the landmark 2015 Paris Agreement. Its importance is widely recognized because so-called tipping points become more likely beyond this level.



“If we don’t reach agreement on that language, I think the consequences are going to be grave,” Sharma told CNBC’s “Street Signs Europe.”



“We have seen that 2023 is going to be the hottest year on record, we see climatic events coming thick and fast around the world. And I think the question that world leaders have to ask themselves is, if they are not willing to act now, then when?”



“This is the moment,” he continued. “This is the time in history where we have to step forward, be ambitious, come up with a deal which includes the phase-out of fossil fuels because ultimately the future of our generation, indeed, [of] future generations, absolutely depends upon it.”



<h2 class="wp-block-heading" id="h-how-did-the-talks-unfold">How did the talks unfold?</h2>



COP28 President Sultan Al-Jaber sparked a backlash earlier this month after he claimed there is “no science” behind calls for a phase-out of fossil fuels. His remarks followed reporting by the BBC ahead of the summit that suggested UAE officials were seeking to cash in on their host status to push for oil and gas deals.



A COP28 spokesperson described the documents referred to in the BBC article as “inaccurate.” Separately, Al-Jaber said last week that his team “very much believe and respect the science” and added that he’d been surprised by the “constant and repeated attempts to undermine the work of the COP28 presidency.”



Al-Jaber was seen as a contentious choice to lead COP28 discussions in Dubai given that he also works as the head of the state-run Abu Dhabi National Oil Co.



In an unprecedented start to proceedings on Nov. 30, delegates at COP28 sealed the details of a landmark deal to help the world’s most vulnerable countries pay for the impacts of climate disasters.



The operationalization of the so-called loss and damage fund prompted a standing ovation from delegates in the audience. The historic agreement was hailed as a welcome breakthrough and one that helped to clear the way for policymakers to negotiate on other major issues.



Thereafter, a flurry of announcements sought to help decarbonize the energy sector, with nearly 120 governments pledging to triple renewable energy capacity by 2030. Other initiatives launched at the conference included sizable blocs committing to expand nuclear power and slash methane emissions.

107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB

COP28 climate summit ends with deal to transition away from fossil fuels

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2Y6XTVFSZVPOPO5NVBOIEAEKKY-820x615.jpg" alt="" class="wp-image-435695" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2Y6XTVFSZVPOPO5NVBOIEAEKKY-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2Y6XTVFSZVPOPO5NVBOIEAEKKY-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2Y6XTVFSZVPOPO5NVBOIEAEKKY-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2Y6XTVFSZVPOPO5NVBOIEAEKKY-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2Y6XTVFSZVPOPO5NVBOIEAEKKY-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2Y6XTVFSZVPOPO5NVBOIEAEKKY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People carry bags of relief grains at a camp for the Internally Displaced People in Adadle district in the Somali region, Ethiopia, January 22, 2022. Picture taken January 22, 2022. Claire Nevill/World Food Programme/Handout via REUTERS/File Photo</figcaption></figure>



DAKAR, Dec 12 (Reuters)&nbsp;&#8211;&nbsp;A record 49.5 million people are expected to go hungry in West and Central Africa next year due to a combination of conflict, climate change and high food prices, the United Nations said on Tuesday.



The figure is 4% higher than in 2023. In coastal countries, the number of people facing acute hunger is expected to reach 6.2 million in 2024, up 16% from this year, according to a new regional food security analysis released by the U.N. World Food Programme (WFP) and other humanitarian agencies.



&#8220;Acute hunger remains at record levels in the region, yet funding needed to respond is not keeping pace,&#8221; said Margot Vandervelden, WFP&#8217;s acting regional director for Western Africa.



&#8220;Insufficient funding means the moderately hungry will be forced to skip meals and consume less nutritious food, putting them at risk of falling back into crisis or emergency phases, perpetuating the cycle of hunger and malnutrition,&#8221; she said.



More than two out of three households in West and Central Africa cannot afford healthy diets, the analysis found.



The cost of a daily nutritious diet in the central Sahel countries Burkina Faso, Mali and Niger is 110% higher than the daily minimum wage in the region, it said.



Sahel countries are facing an Islamist insurgency that has displaced some four million people from their homes and farms, according to U.N. figures. Democratic Republic of Congo also has multiple ongoing conflicts that have displaced nearly seven million.



The Sahel crisis has pushed people to seek refuge in neighbouring coastal countries such as Ivory Coast, Togo and Ghana, which is grappling with its worst economic crisis in a generation.



&#8220;Almost 80% of people who are currently in a difficult food situation are in areas affected by conflict,&#8221; said Ollo Sib, a senior research adviser for the WFP.



He warned that without intervention, the situation could deteriorate further in certain areas as over 2.6 million people were at risk of falling into famine.



(Reporting by Ngouda Dione; Writing by Nellie Peyton; Editing by Mark Potter)

WFP warns millions facing hunger as driest weather in decades ravages Horn of Africa

Nearly 50 mln facing hunger in West, Central Africa as conflict spreads

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-820x547.jpg" alt="" class="wp-image-435417" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s President William Ruto looks on during his swearing-in ceremony at Moi International Stadium in Nairobi, Kenya September 13, 2022. REUTERS/Baz Ratner</figcaption></figure>



NAIROBI, Dec 12 (Reuters)&nbsp;&#8211;&nbsp;Visitors to Kenya from across the world will no longer require a visa from January, President William Ruto said on Tuesday.



Ruto said his government had developed a digital platform to ensure all visitors would receive an electronic travel authorisation in advance, instead of needing to apply for a visa.



&#8220;It shall no longer be necessary for any person from any corner of the globe to carry the burden of applying for a visa to come to Kenya,&#8221; he said in a speech in the capital Nairobi at an event to mark 60 years of independence from Britain.



Ruto has long advocated for visa-free travel within the African continent.



At a conference in the Republic of Congo in October he said people from African countries would not require a visa to visit Kenya by the end of 2023.



The tourism industry plays a vital role in Kenya&#8217;s economy, offering beach holidays along its Indian Ocean coastline and wildlife safaris inland.



&#8220;Kenya has a simple message to humanity: Welcome Home!&#8221; he said.



(Reporting by Duncan Miriri; Writing by Bhargav Acharya; Editing by Alexander Winning, Kirsten Donovan)

Kenya’s President William Ruto’s swearing-in ceremony in Nairobi

Kenya to scrap visas for all visitors, president says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2MD722664VMN5HRQWT5KGRONNI-1-820x546.jpg" alt="" class="wp-image-435353" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2MD722664VMN5HRQWT5KGRONNI-1-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2MD722664VMN5HRQWT5KGRONNI-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2MD722664VMN5HRQWT5KGRONNI-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2MD722664VMN5HRQWT5KGRONNI-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2MD722664VMN5HRQWT5KGRONNI-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/2MD722664VMN5HRQWT5KGRONNI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South African Minister of Electricity, Dr Kgosientsho Ramokgopa briefs the media on implementation of the Energy Action Plan, at Tshedimosetso House in Hatfield, Tshwane, South Africa September 26, 2023. Jairus Mmutle/GCIS/Handout via REUTERS/File photo</figcaption></figure>



CAPE TOWN, Dec 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa will launch a bidding process for an extra 2,500 megawatts (MW) of nuclear power by March, as the country attempts to tackle its worst power outages on record.



Businesses and households have been left without power for up to 10 hours on some days this year, hitting South Africa&#8217;s economic output and prompting plans to boost generation.



However, officials said on Tuesday that the new nuclear power procurement is not a short-term fix, as the first units are only expected to start operating in a decade.



&#8220;We are excited about the prospects and we are confident about our ability to ensure that within a reasonable period of time we are able (to announce) preferred bidders,&#8221; Electricity Minister Kgosientsho Ramokgopa told a news conference.



Ramokgopa reiterated that South Africa, which has the African continent&#8217;s only operational nuclear power plant, Koeberg, close to Cape Town, will build new ones at a scale and pace it can afford.



South Africans are wary of the government&#8217;s nuclear programme after a 9,600 MW nuclear deal with Russia, initiated during Jacob Zuma&#8217;s scandal-plagued presidency, was thwarted by a court challenge in 2017.



Meanwhile, financing and long-term storage options for radioactive waste remain concerns, environmentalists say.



&#8220;Nuclear should not be on the agenda. It is a myth that it is a climate change solution, a myth that it is the cheapest form of electricity &#8230; there is no way civil society can accept this,&#8221; said Liziwe McDaid, a local environmental campaigner.



Koeberg, with a capacity of around 1,900 MW, provides around 5% of the country&#8217;s energy needs out of a nominal installed capacity of about 46,000 MW.



Government is awaiting regulatory approval after applying for a 20-year extension to Koeberg&#8217;s operating licence which expires in July 2024.



South Africa expects to commission the first unit of the new 2,500 MW nuclear project by 2032/33, said Zizamele Mbambo, a senior energy ministry official.



&#8220;We must issue an open and transparent tender that makes sure there is cost competitiveness,&#8221; Mbambo added.



(Reporting by Wendell Roelf; Additional reporting by Tannur Anders; Editing by Bhargav Acharya, Alexander Winning and Alexander Smith)

South African Minister of Electricity, Dr Kgosientsho Ramokgopa briefs the media on implementation of the Energy Action Plan, at Tshedimosetso House in Hatfield

South Africa to seek bids for new nuclear power station

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-820x461.jpeg" alt="" class="wp-image-435349" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pedestrians walk towards the Chhatrapati Shivaji Terminus train station at dusk in Mumbai, India, on Wednesday, Oct. 4, 2023. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



India’s stock market value has overtaken Hong Kong’s to become the seventh largest in the world as optimism about the country’s economic prospects grows.



As of the end of November, the total market capitalization of the National Stock Exchange of India was $3.989 trillion versus Hong Kong’s $3.984 trillion, according to data from the World Federation of Exchanges.



India’s Nifty 50 index reached another record high on Tuesday. It has jumped 16% so far this year and is headed for its eighth straight year of gains. In contrast, Hong Kong’s benchmark Hang Seng index has plunged 17% year to date.



India has been a standout market this year in the Asia-Pacific region. Increased liquidity, more domestic participation and improving dynamics in the global macro environment in the form of falling U.S. Treasury yields have all boosted the country’s stock markets.



The world’s most populous country also heads into general elections next year, which analysts predict could be another victory for the ruling nationalist Bharatiya Janata Party.



“For the general election, opinion polls and recent state elections indicate that the incumbent BJP-led government may secure a decisive win, which could trigger a bull run in the first three to four months of the year on expectations of policy continuity,” HSBC strategists said in a client note.



HSBC said banks, health care and energy are the best positioned sectors for next year.



Sectors such as autos, retailers, real estate and telecoms are also relatively well positioned for 2024, while fast-moving consumer goods, utilities and chemicals are among those HSBC categorized as unfavorable.



<h2 class="wp-block-heading" id="h-hong-kong-lags"><a></a>Hong Kong lags</h2>



Hong Kong’s Hang Seng index is poised to notch a fourth year of declines and is the worst performer among major Asia-Pacific equity markets.



Last week, Moody’s cut its outlook for Hong Kong from stable to negative, citing the city’s financial, political, institutional and economic ties to mainland China. That downgrade came soon after Moody’s reduced its outlook for China’s government credit ratings to negative to stable.



In early November, the Hong Kong government said it expects the economy to grow 3.2% in 2023, trimming its GDP growth outlook from the 4% to 5% forecast in August.



The city’s government has warned that increasing geopolitical tensions and tight financial conditions continue to weigh on investments, exports of goods and consumption sentiment. Consumer confidence has also suffered in Hong Kong.



“Hong Kong’s economy is poised for a soft landing in 2024 as annual real GDP growth moderates to around 2% from 2023′s 3.5%,” said economists at DBS.



“Central to this recovery is mainland tourism revival, fortifying retail and catering sectors.”



China has set a growth target of 5% for 2023. Its third quarter-GDP came in at 4.9%, lifting hopes that the world’s second-largest economy will meet or even exceed expectations.

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featured

China can achieve 5% economic growth in 2024, c.bank adviser says

Tanzania GDP to grow about 5.5% in 2024 – finmin, cenbank gov

Rwanda says GDP growth expected to rise in 2024, still below 2022 figure

Kenya, EU advance economic partnership agreement to boost trade

EM assets hit two-week highs on dovish Fed tilt; Argentina’s CPI hits 161%

Fed holds rates steady, indicates three cuts coming in 2024

South Africa’s Eskom makes H1 profit but sees full-year loss

COP28 calls for adapting to warmer world without resolving how to pay

Congo asks U.N. to help with challenging election logistics

Kenya eyes return to lower deficit this year, Treasury official says

South African inflation back on downward path thanks to fuel

World Bank approves $137 million budget support for Malawi

COP28 climate summit ends with deal to transition away from fossil fuels

Nearly 50 mln facing hunger in West, Central Africa as conflict spreads

Kenya to scrap visas for all visitors, president says

South Africa to seek bids for new nuclear power station

India overtakes Hong Kong to become the world’s seventh largest stock market

News Tips

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