<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank unveiled a big interest rate hike on Tuesday aimed at stabilising the shilling currency&nbsp;KES=, whose depreciation has spurred price pressures, curbed foreign investment and affected debt-servicing.



The Central Bank of Kenya raised its policy rate&nbsp;KECBIR=ECI&nbsp;by 2 percentage points to 12.5%, its first hike since June when it raised it by 1 percentage point.



&#8220;There is need to adjust the monetary policy stance to address the pressures on the exchange rate and mitigate second round effects,&#8221; the central bank&#8217;s Monetary Policy Committee (MPC) said in a statement.



&#8220;This will ensure that inflationary expectations remain anchored, while setting inflation on a firm downward path towards the 5.0 percent mid-point of the target range.&#8221;



Inflation&nbsp;KECPI=ECI&nbsp;dipped to 6.8% year-on-year in November from 6.9% in October, with the central bank saying on Tuesday that exchange rate depreciation had contributed about 3.0 percentage points to the November reading.



The shilling&nbsp;KES=&nbsp;is down more than 19% against the dollar this year, having struck repeated all-time lows along the way.



&#8220;The MPC &#8230; stands ready to further tighten monetary policy as necessary to ensure price and exchange rate stability are achieved,&#8221; the central bank said, adding its MPC would meet again in February 2024.



Razia Khan, chief Africa and Middle East economist at Standard Chartered Bank, said there had been pressure from the International Monetary Fund and World Bank to tighten policy meaningfully.



&#8220;Market interest rates were already well in excess of the policy rate, so it&#8217;s questionable whether this has a near-term impact,&#8221; she said.



Kenya is being watched closely to see how it handles the settlement of a $2 billion Eurobond that is maturing in June next year.



Central bank governor Kamau Thugge told reporters that authorities were expecting $300 million from regional bank Trade and Development Bank in the first two weeks of December&nbsp;and&nbsp;that would be used to buy back part of the Eurobond.



Thugge said Kenya expected a further $1.25-$1.5 billion in budget support from the World Bank early next year.



(Reporting by George Obulutsa and Duncan Miriri; Editing by Alexander Winning and Christina Fincher)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya central bank tries to stabilise shilling with big rate hike

<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/VMMSUJP37ZIHJBSNEGRW226KR4-1-820x547.jpg" alt="" class="wp-image-433094" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">British Home Secretary James Cleverly and Rwandan Minister of Foreign Affairs Vincent Biruta sign a new treaty, in Kigali, Rwanda, December 5, 2023. The treaty will address concerns by the Supreme Court, including assurances that Rwanda will not remove anybody transferred under the partnership to another country. Ben Birchall/Pool.</figcaption></figure>



KIGALI/LONDON, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;British interior minister James Cleverly signed a new treaty with Rwanda on Tuesday in an attempt to overcome a court decision to block the government&#8217;s controversial policy of sending asylum seekers to the East African country.



The Rwanda plan is at the centre of the government&#8217;s strategy to cut migration and is being watched closely by other countries considering similar policies.



The United Kingdom&#8217;s Supreme Court last month ruled that such a move would violate international human rights laws enshrined in domestic legislation.



The new treaty will include an agreement that Rwanda would not expel asylum seekers to a country where their life or freedom would be threatened &#8211; one of the court&#8217;s major concerns.



There will also be a monitoring committee to enable individuals to lodge confidential complaints directly to them and a new appeal body made up of judges from around the world.



Cleverly said there was now no &#8220;credible&#8221; reason to block the deportation flights because the treaty addressed all the issues raised by the Supreme Court and no extra money had been given to Rwanda to upgrade the deal from the existing memorandum of understanding.



&#8220;I really hope that we can now move quickly,&#8221; Cleverly told a press conference in Rwanda&#8217;s capital Kigali.



Many lawyers and charities said it was unlikely that deportation flights could start before next year&#8217;s election. The opposition Labour Party, which has a double-digit lead in the polls, plans to ditch the Rwanda policy if it wins.



Under the plan agreed last year, Britain intends to send thousands of asylum seekers who arrived on its shores without permission to Rwanda to deter migrants crossing the Channel from Europe in small boats.



In return, Rwanda has received an initial payment of 140 million pounds ($180 million) with the promise of more money to fund the accommodation and care of any deported individuals.



<h2 class="wp-block-heading" id="h-pressure">PRESSURE</h2>



Prime Minister Rishi Sunak is under intense pressure to cut net migration, which hit a record 745,000 last year, with the vast majority coming through legal routes.



&#8220;Stop the boats&#8221; is one of five goals Sunak set for his government, to end the flow of asylum seekers who pay people smugglers for their Channel crossings, often in overcrowded boats that are not seaworthy.



The Supreme Court ruled against the Rwanda plan because there was a risk that deported refugees would have their claims wrongly assessed or returned to their country of origin to face persecution.



The new treaty is expected to be followed later this week by the publication of legislation declaring Rwanda a so-called safe country, designed to stop legal challenges against the planned deportation flights.



However, this is likely to trigger a new round of political and legal wrangling. The first flight was scheduled to go last summer but was cancelled at the last moment because of legal challenges.



Sarah Gogan, an immigration lawyer at Harbottle &amp; Lewis, said Rwanda&#8217;s human rights record meant the government&#8217;s policy would be challenged.



&#8220;Rwanda is an unsafe country and this is not a quick fix,&#8221; she said. &#8220;You cannot in a matter of weeks or months reform a country and turn it into one with an impartial judiciary and administrative culture.&#8221;



Yvette Cooper, Labour&#8217;s home affairs spokeswoman, dismissed the government&#8217;s latest plans as another &#8220;gimmick&#8221;.



(Reporting by Andrew MacAskill and Michael Holden; Additional reporting by Rishabh Jaiswal, Muvija M and Kylie MacLellan; Editing by Bernadette Baum and Angus MacSwan)

VMMSUJP37ZIHJBSNEGRW226KR4-1

UK interior minister signs new Rwanda treaty to resurrect asylum plan

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-820x462.jpeg" alt="" class="wp-image-433063" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Chinese yuan cash bills and chinese flag (money, economy, finance, inflation, crisis) Javier Ghersi | Moment | Getty Images</figcaption></figure>



Ratings agency Moody’s downgraded its outlook on China’s government credit ratings to negative from stable, expecting Beijing’s support and possible bailouts for distressed local governments and state-owned enterprises to diminish China’s fiscal, economic and institutional strength.



Moody’s though retained China’s “A1” long-term rating on the country’s sovereign bonds, while expecting China annual GDP growth to slow to 4% in 2024 and 2025 and average 3.8% from 2026 to 2030.



Structural factors including weak demographics will drive a decline to 3.5% by 2030, it said.



The move underscores concerns over rising debt levels and the impact on broader growth in the world’s second-largest economy as Beijing resorts to fiscal stimulus to support local governments and contain the spiraling debt crisis among the country’s property developers.



“The outlook change also reflects the increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector,” Moody’s said in a statement issued Dec. 5.



“These trends underscore the increasing risks related to policy effectiveness, including the challenge to design and implement policies that support economic rebalancing while preventing moral hazard and containing the impact on the sovereign’s balance sheet,” Moody’s added.



China credit default swaps (the cost of insuring against a government default) rose 4 basis points from Monday’s closing level, according to Reuters data.



<h2 class="wp-block-heading" id="h-beijing-disappointment"><a></a>Beijing disappointment</h2>



China’s Finance Ministry expressed its disappointment with Moody’s downgrade decision.



“Moody’s concerns about China’s economic growth prospects and fiscal sustainability are unnecessary,” the ministry said in a statement Tuesday.



“Since the beginning of this year, in the face of the complex and severe international situation, and against the background of unstable global economic recovery and weakening momentum, China’s macro economy has continued to recover and high-quality development has steadily advanced,” the ministry added.



The central government said Oct. 24 that it had formalized a process allowing local governments to borrow funds for the year ahead — starting in the preceding fourth quarter, according to an announcement published by state media.



Beijing also announced a rare mid-year fiscal revision, which included the issuance of 1 trillion yuan in ($137 billion) in government debt — one of the biggest changes to the national budget in years. The amount was for the reconstruction of areas hit hard by natural disasters — such as this summer’s historic floods — and for catastrophe prevention.



Moody’s also cited the 1.6 trillion yuan increase in central government transfers to regional and local governments in 2022 from 2021, which partly but only temporarily offset the 2 trillion yuan in lost land sales revenue, as a key development that factored in its thinking.

107343067-1701767843065-gettyimages-1415687423-yuanybandera7

Moody’s cut China’s credit outlook to negative on rising debt risks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="519" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-820x519.jpg" alt="" class="wp-image-433031" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-1536x973.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Electricity lights up the central business district of Cape Town, South Africa, June 18, 2019. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



PRETORIA, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;The South African economy recorded a minor contraction in the third quarter of this year as output fell in the agriculture, mining and construction industries, statistics agency data showed on Tuesday.



The 0.2% contraction in quarter-on-quarter seasonally adjusted terms&nbsp;ZAGDPN=ECI&nbsp;was slightly larger than the 0.1% predicted by analysts polled by Reuters and followed two consecutive quarters of growth.



The latest figures mean Africa&#8217;s most industrialised economy grew just 0.3% in the first nine months of the year.



Joe de Beer, head of economic statistics at Statistics South Africa, said that almost all sectors of the economy were neither growing nor declining very much.



&#8220;The economy has moved sideways, &#8230; the numbers are just oscillating around zero,&#8221; he said at a briefing in the capital Pretoria.



In unadjusted year-on-year terms Q3 GDP contracted 0.7%&nbsp;ZAGDPY=ECI, also worse than analysts&#8217; prediction for a fall of 0.2%.



Previously growth in expenditure was driven by private investment in renewable energy as businesses look to compensate for the state utility Eskom implementing the worst power cuts on record. However this has slowed.



&#8220;In the second quarter there was a huge surge in imports of green energy-related products and that wasn&#8217;t sustained in the third quarter,&#8221; said de Beer.



Jason Tuvey, deputy chief emerging markets economist at Capital Economics, said the big picture was that South Africa&#8217;s economic recovery from the COVID-19 pandemic had been among the worst in emerging markets.



He predicted a modest pick-up in growth in 2024.



&#8220;The drag from power cuts should start to ease as efforts to improve supply bear fruit. And, with the election looming, fiscal policy will probably be less restrictive,&#8221; he said, referring to upcoming national elections expected to take place in the first half of 2024.



(Additional reporting by Tannur Anders in Johannesburg; Editing by Alexander Winning and Frances Kerry)

DUFCFSKNIRJZDEEYXNXJIRBYTY-1

South African economy contracts marginally in third quarter

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-820x462.jpeg" alt="" class="wp-image-433000" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man wearing a thawb walks past flags of nations participating in the UNFCCC COP28 Climate Conference the day before its official opening on November 29, 2023 in Dubai, United Arab Emirates. Sean Gallup | Getty Images News | Getty Images</figcaption></figure>



DUBAI, United Arab Emirates — Nearly 2,500 fossil fuel lobbyists are estimated to have been granted access to the COP28 climate conference in the United Arab Emirates, according to an analysis from advocacy groups, reflecting a sharp increase from last year.



A report published Tuesday by the Kick Big Polluters Out coalition found that at least 2,456 fossil fuel lobbyists registered to attend the two-week long summit. That’s more than almost every other country delegation, except for Brazil (3,081) and COP28 host the United Arab Emirates (4,409), the analysis said.



The findings come at the mid-way point of COP28 and as a fight over the future of fossil fuels takes center stage.



Campaigners say the number of fossil fuel lobbyists attending the talks is “beyond justification” and signals that polluting industries are seeking to advance a fossil fuel agenda at the expense of frontline communities.



Others, however, including former U.S. energy secretary Ernest Moniz, said that Big Oil’s participation at COP28 should be welcomed.



The International Energy Agency said in the run-up to the talks that the oil and gas industry faces a “moment of truth” about their role in the global energy system and the deepening climate crisis.



A COP28 spokesperson was not immediately available to comment when contacted by CNBC.



“2023 was a year like no other. Record temperatures, record levels of emissions, and now we see a record attendance from Big Polluters at UN climate talks,” said Muhammed Lamin Saidykhan, head of building movement power at Climate Action Network International, a global network of civil society organizations.



“The window to preserve a liveable planet is rapidly closing. At the same time, ever greater numbers of Big Polluters are allowed to roam around this summit, which communities on the frontlines cannot afford to have fail again,” they added.



<h2 class="wp-block-heading" id="h-phase-out-vs-phase-down"><a></a>Phase out vs. phase down</h2>



The surge in the number of fossil fuel lobbyists attending the U.N. climate talks follows a growing call from public officials, U.N. constituencies and civil society groups to eject polluters from the talks.



For many at the U.N. talks, which are being held in Dubai through Dec. 12, COP28 can only be recognized as a success if it results in a deal to phase out all fossil fuels, the burning of which is the chief driver of the climate crisis. 



Not everyone is on board with calls for a phase-out. Russia has said it would oppose this language being used in the final agreement, while COP28 host the United Arab Emirates has signaled its preference for a phase-down.



The language of the final agreement will be closely monitored. A “phase out” commitment would likely require a shift away from fossil fuels until their use is eliminated, while a “phase down” could indicate a reduction in their use — but not an absolute end.



There’s also a debate about whether an agreement should center on “abated” fossil fuels, which are trapped and stocked with carbon capture and storage technologies. “Unabated” fossil fuels are largely understood to be produced and used without substantial reductions in the amount of emitted greenhouse gases.



In an unprecedented start to proceedings on Thursday, 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.



A flurry of COP28 announcements have since sought to help decarbonize the energy sector, with nearly 120 governments on Saturday pledging to triple renewable energy capacity by 2030.

107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre

‘Beyond justification’: Record number of fossil fuel lobbyists attend COP28 climate talks in Dubai

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-820x546.jpg" alt="" class="wp-image-413517" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-1536x1023.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: U.S. Secretary of State Antony Blinken speaks during the release of the &#8220;2020 Country Reports on Human Rights Practices&#8221; at the State Department in Washington, DC, U.S., March 30, 2021. Mandel Ngan/Pool via REUTERS/File Photo</figcaption></figure>



WASHINGTON, Dec 4 (Reuters)&nbsp;&#8211;&nbsp;The United States on Monday expanded a visa restriction policy on Ugandan officials to include those it believes are responsible for undermining democracy and repressing marginalized groups in Uganda, while also announcing a new visa restriction policy for officials in Zimbabwe.



U.S. Secretary of State Antony Blinken announced the visa restrictions and mentioned, among others, the marginalization of groups like the LGBT community in Uganda and civil society advocates in Zimbabwe. Blinken&#8217;s statements did not name any official.



Uganda&#8217;s anti-LGBTQ law, considered one of the harshest in the world, was enacted in May and carries the death penalty for &#8220;aggravated homosexuality,&#8221; an offence that includes transmitting HIV through gay sex.



In June, the U.S. State Department imposed visa restrictions on Ugandan officials after the passage of the law. The State Department also previously put visa restrictions on Ugandan officials following the country&#8217;s 2021 elections, which it called &#8220;flawed.&#8221;



&#8220;Today, I am announcing the expansion of the visa restriction policy to include current or former Ugandan officials or others who are believed to be responsible for, or complicit in, undermining the democratic process in Uganda or for policies or actions aimed at repressing members of marginalized or vulnerable populations,&#8221; Blinken said on Monday.



&#8220;These groups include, but are not limited to, environmental activists, human rights defenders, journalists, LGBTQI+ persons, and civil society organizers.&#8221;



Blinken also announced a new visa restriction policy for those he said were undermining democracy in Zimbabwe.



Zimbabwean President Emmerson Mnangagwa won a second term in a disputed vote in August, which the opposition described as a &#8220;gigantic fraud&#8221; amid criticism from election observers who say the election failed to meet regional and international standards.



&#8220;Anyone who undermines the democratic process in Zimbabwe &#8211; including in the lead-up to, during, and following Zimbabwe&#8217;s August 2023 elections &#8211; may be found ineligible for U.S. visas under this policy,&#8221; Blinken said.



(Reporting by Kanishka Singh in Washington; Editing by Leslie Adler and Sandra Maler)

FILE PHOTO: “2020 Country Reports on Human Rights Practices” release at the State Department in Washington

US restricts visas for Uganda, Zimbabwe officials, citing repression

<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/GettyImages-1251771740-820x547.jpg" alt="" class="wp-image-432767" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ebrahim Patel, South Africa&#8217;s trade minister, speaks during the South Africa Investment Conference in Johannesburg, South Africa, on Thursday, April 13, 2023. Today&#8217;s conference starts as data this week showed that the South African economy has probably entered a technical recession. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Dec 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s automotive industry will likely produce its first electric vehicle (EV) in 2026, the trade minister said on Monday, as he outlined plans for the country&#8217;s green&nbsp;transport&nbsp;transition.



The electrification of transport is one of the key pillars underpinning South Africa&#8217;s Just Energy Transition (JET) plan for a low-carbon and climate-resilient economy.



The JET plan estimates that an investment of 128.1 billion rand ($6.84 billion) would be needed from 2023–2027 for the transport sector to contribute meaningfully to South Africa&#8217;s decarbonisation commitments.



South Africa is the largest automotive manufacturing hub on the African continent, hosting global brands such as Toyota, Isuzu, Volkswagen and Mercedes, among others.



It is also highly integrated into the global supply chain, drawing components from across the world and exporting the final consumer product to more than 150 countries worldwide.



&#8220;We&#8217;re already producing hybrids but we anticipate that the first electric vehicles are likely to be produced already by 2026,&#8221; Minister of Trade, Industry and Competition, Ebrahim Patel told journalists.



Based on discussions his department was having with the automakers, the first batch of EVs will be limited. Growth should then accelerate between 2026 and 2030, with only one manufacturer anticipating moving into battery electric vehicle production after 2030, he added without naming any brands.



In a 68-page EV plan, the government outlined steps to support the transition, such as government incentives, a temporary reduction on import duties for batteries in vehicles produced and sold in the domestic market, and the commercialisation of green hydrogen production as a source of sustainable fuel.



It will also reform network industries, including freight rail and ports and implement energy reforms.



The country&#8217;s power crisis poses one of the risks as the country&#8217;s state-power utility Eskom struggles to keep the lights on.



The effective bans on CO2-emitting vehicles from 2035 in key markets like the European Union and UK will be profound, as they absorb nearly half of South African auto production, the plan read.



($1 = 18.7387 rand)



(Reporting by Nqobile Dludla; Editing by Sharon Singleton)

Key Speakers at the South Africa Investment Conference

South Africa likely to produce first EV in 2026: Minister

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="599" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-820x599.jpg" alt="" class="wp-image-432717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-820x599.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-300x219.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-123x90.jpg 123w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-768x561.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-1536x1122.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/IU3FWJ6GIFLSZJZKHJ6VYDSSLM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: &#8216;COP28 UAE&#8217; logo is displayed on the screen during the opening ceremony of Abu Dhabi Sustainability Week (ADSW) under the theme of &#8216;United on Climate Action Toward COP28&#8217;, in Abu Dhabi, UAE, January 16, 2023. REUTERS/Rula Rouhana/File Photo</figcaption></figure>



DUBAI, Dec 4 (Reuters) &#8211; Money pledges grabbed the spotlight again at COP28 in Dubai on Monday as delegates turned their focus to the yawning gap in the need for climate finance and what&#8217;s on offer.



The United Arab Emirates, the host of this year&#8217;s conference, pledged $270 billion in green finance by 2030 through its banks, and several development banks made fresh moves to scale up their funding efforts, including by agreeing to pause debt repayments when disaster strikes.



But leaders of the region&#8217;s biggest economy and the world&#8217;s biggest oil producer Saudi Arabia have so far not attended the U.N. summit, in sharp contrast to their participation in last year&#8217;s COP27 conference in Sharm el-Sheikh, Egypt.



On Monday, Prince Abdulaziz bin Salman, energy minister and the key climate negotiator, for the kingdom, was a no-show at the Saudi Green Initiative. De facto ruler Crown Prince Mohammad bin Salman also did not deliver a speech to world leaders as scheduled on Friday.



<h2 class="wp-block-heading" id="h-vast-needs">VAST NEEDS</h2>



The amount of cash needed for the energy transition, climate adaptation and disaster relief is overwhelming.



A report released Monday estimated that emerging markets and developing countries will need $2.4 trillion a year in investment to cap emissions and adapt to the challenges posed by climate change.



&#8220;The world is not on track to realise the goals of the Paris Agreement. The reason for this failure is a lack of investment, particularly in emerging market and developing countries outside China,&#8221; said co-author Nicholas Stern, chair of the Grantham Research Institute on Climate Change and the Environment.



&#8220;The central challenge is to accelerate and implement the fostering and financing of this investment from a range of sources.&#8221;



Vulnerable countries that are already being hit by costly climate disasters are asking for billions more through a newly formed disaster fund, although current pledges are only around $700 million.



&#8220;Unless we have an urgent set of decision-making, we are going to suffer what every parent suffers from &#8211; exciting expectations and being unable to deliver,&#8221; said Barbados Prime Minister Mia Mottley, who has become a prominent voice in global discussions about mobilising climate finance.



In a news conference, she urged countries to go beyond voluntary pledges and pleas to charities and private investors and instead to consider taxes as a way to boost climate funding.



A global 0.1% tax on financial services, for example, could raise $420 billion, she said, while a 5% tax on global oil and gas profits in 2022 would have yielded around $200 billion.



&#8220;The planet needs global governance not in a big stick way, but in a simple way of us cooperating with each other to be able to work with the institutions that we have,&#8221; she added.



Other delegates, including U.N. Secretary-General Antonio Guterres, have called for an end to fossil fuel subsidies which have hit a record $7 trillion per year.



Activists with the Asian Peoples&#8217; Movement on Debt and Development said they worried the sums pledged would be inadequate.



&#8220;The climate finance that they have pledged at this COP28 is simply not enough,&#8221; said Pakistani activist Zaigham Abbas, whose country was devastated last year by widespread flooding. &#8220;We are not looking for charity here. We are not looking for peanuts &#8230; The scale of the catastrophe that we are staring is unprecedented.&#8221;



<h2 class="wp-block-heading" id="h-moving-money">MOVING MONEY</h2>



The biggest pledge on Monday came from the UAE&#8217;s banking system, joining peers in other regions in pledging to lend more to green projects. It followed a Friday pledge of $30 billion for climate-related projects from the oil producing Gulf state.



Elsewhere, France and Japan said they would support a move by the African Development Bank to leverage IMF Special Drawing Rights for climate and development.



The European Bank for Reconstruction and Development, meanwhile, said it would include climate resilient debt clauses in new loan deals with some poorer countries.



Danish investment firm Copenhagen Infrastructure Partners announced plans to raise $3 billion for renewable projects in emerging markets.



This year also features the biggest-ever representation of business at the annual U.N. summit, amid hopes for more private investment toward climate causes.



The emirate of Abu Dhabi teamed up with private sector partners including BlackRock and HSBC to launch a climate research and advisory hub to boost financing options in the region.



&#8220;The scale of the climate crisis demands urgent and game-changing solutions from every industry,&#8221; COP28 President Ahmed Al-Jaber said. &#8220;Finance plays a critical role in turning our ambitions into actions.&#8221;



For daily comprehensive coverage on COP28 in your inbox, sign up for the Reuters Sustainable Switch newsletter here.



(Reporting by Simon Jessop, Maha El Dahan and Hadeel Al Sayegh; Additional reporting by Alexander Cornwell, Elizabeth Piper and David Stanway; Editing by Katy Daigle and Miral Fahmy)

FILE PHOTO: ‘COP28 UAE’ logo is displayed on the screen during the opening ceremony of Abu Dhabi Sustainability Week (ADSW) under the theme of ‘United on Climate Action Toward COP28’, in Abu Dhabi

Climate finance takes centre stage at COP28 climate talks

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



Dec 4 (Reuters)&nbsp;&#8211;&nbsp;Most emerging markets stocks and currencies&nbsp;edged&nbsp;up on Monday, while Indian stocks hit new record highs after a string of&nbsp;state&nbsp;election wins for the ruling party, and investors analysed Turkish inflation that hit its highest level this year.



India&#8217;s benchmark stock indices hit fresh all-time highs, after the country&#8217;s ruling Bharatiya Janata Party (BJP) secured key victories in three of the four state assembly elections.



The NSE Nifty 50 index&nbsp;.NSEI&nbsp;advanced 1.9% to 20,656.40 points.&nbsp;The&nbsp;S&amp;P BSE Sensex&nbsp;.BSESNalso&nbsp;gained 1.9% and hit 68,763.07 points.



&#8220;India&#8217;s strong markets rallied further following the vote count on Dec. 3 as investors now expect political stability amid a fast economic recovery,&#8221; said Shumita Deveshwar, chief&nbsp;India&nbsp;economist at TS Lombard.



Separately, Reliance RELI.NS added 1.1% as the Indian oil firm was set to meet executives from Venezuelan state firm PDVSA next week to discuss direct crude sales following the easing of U.S. sanctions on the South American country.



MSCI&#8217;s gauge tracking developing markets currencies&nbsp;.MIEM00000CUS&nbsp;inched up 0.2%, while the equities index&nbsp;.MSCIEF&nbsp;added 0.1% by 0922 GMT.



Last week, both indexes notched their third straight&nbsp;week of&nbsp;gains, extending November&#8217;s rally as investors warmed&nbsp;up&nbsp;to riskier emerging market assets on optimism that interest&nbsp;rates&nbsp;in the U.S. have peaked.



Meanwhile, Turkey&#8217;s lira TRYTOM=D3 weakened to 28.896 to the dollar, though latest data showed annual domestic inflation rose to 61.98% in November, just shy of expectations and rose to its highest level this year boosted by food and transportation prices.



&#8220;Markets remain uncertain if further tightening is on the table and fear the CBT (Turkish Central Bank) might opt to halt the tightening before the local elections in March,&#8221; said Bartosz Sawicki, market analyst at Conotoxia fintech.



The local BIST 100 stock index .XU100 reversed early gains and shed 0.2%. Separately, a magnitude 4.8 earthquake struck the Turkey region, as per the German Research Centre for Geosciences (GFZ).



In Hong Kong, embattled property developer Evergrande Group 3333.HK jumped 9.2% after saying it has been granted an adjournment of a court hearing into a liquidation petition to Jan. 29, giving it time to finalise a revamped offshore debt-restructuring plan.



Investors are also closely watching renewed fighting between Israel and Hamas following a seven-day truce that ended last week. Tel Aviv&#8217;s main stock index .TA125 was flat, while the shekel ILS= edged up by 0.4%.



Poland&#8217;s zloty EURPLN= dipped 0.1% against the euro. Late on Friday, ratings agency S&amp;P Global said the new likely local government will be able to unlock access to EU funds.



(Reporting by Johann M Cherian in Bengaluru; Editing by Sonia Cheema)

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

Stocks, FX kick off week steady; Indian, Turkish assets in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-820x462.jpeg" alt="" class="wp-image-429017" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kristalina Georgieva, managing director of the International Monetary Fund, at a press conference at the IMF Headquarters on April 14, 2023.
Kevin Dietsch | Getty Images News | Getty Images</figcaption></figure>



Dubai, UNITED ARAB EMIRATES — The head of the International Monetary Fund on Sunday underlined the case for carbon pricing at the COP28 climate summit, saying that the oil and gas industry recognizes “the writing on the wall.”



A long-time proponent of carbon pricing, IMF Managing Director Kristalina Georgieva said this approach creates an incentive for polluters to rapidly decarbonize.



Carbon pricing ascertains the cost that a company needs to pay for its planet-warming emissions and is widely regarded as the most cost-effective and flexible way to cut such pollution.



The IMF recently raised its average price forecast to $85 a ton by the end of the decade, up from a previous forecast of $75. Underlining the scale of the challenge, Georgieva said the current average price is around $20 per ton.



“For those that have adopted a carbon price, how do we get big emitters to accept that we need to accelerate decarbonization?” Georgieva told CNBC’s Dan Murphy at the COP28 conference.



“Well, two things. One, without a carbon price, it won’t happen fast enough. So, we have to move to that incentive,” she said.



“Two, Mother Nature is helping us because countries rich and poor are already experiencing the devastating force of climate change.”



Her comments come as policymakers and business leaders convene in Dubai for the U.N.’s two-week long climate summit, which is scheduled to end on Dec. 12.



The conference is a pivotal opportunity to accelerate climate action, at a time when the world is on track to record its hottest year on record and as extreme weather events take their toll across the globe.



For the IMF chief, COP28 marks an important opportunity for countries to reassess policies that incentivize the use of fossil fuels. She stressed that government subsidies for coal, oil and gas hit $1.3 trillion last year.



“Now we have to pull this gradually and substitute with the other part of the incentive, which is pricing. I want to tell everybody who is willing to listen that a carbon price has [been] proven to work,” Georgieva said, adding that existing schemes — such as the EU’s Emissions Trading System — have registered a rapid reduction of emissions.



“Two, it generates revenues. The same European Union got 175 billion euros ($191 billion) collected from [a] carbon price,” she said.



“Three, it can be fair. It is fair first, because the more you pollute, the more you pay, and the less you pollute, the less you pay. But also, many countries [can] take some of this money and give it back, especially to the vulnerable people.”



Asked about the role of the oil and gas industry at COP28 and how to get Big Oil on side with carbon pricing, Georgieva said, “One of the good news that comes from research is that we are going to see the peak of oil and gas in this decade. Consumption is then going to gradually going down.”



“One of the great news from COP is a commitment to triple renewables in energy within the next years. Where the power of COP has come is by mobilizing the voices of people and that is already happening. I cannot think of any industry that is willing to be the enemy of the people,” she continued.



“I think that oil and gas is seeing the writing on the wall. We see many of the oil-producing countries diversifying quite rapidly and we also see an investment coming from money generated from oil into renewables [at] scale.”

107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3

IMF chief makes the case for carbon pricing as ‘writing on the wall’ for oil and gas

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-820x429.jpg" alt="" class="wp-image-432579" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1.jpg 1910w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Traffic_analyzer | Istock | Getty Images</figcaption></figure>



Gold prices notched a new record on Monday for a second day in a row — with spot prices touching $2,100 as the global rush for bullion appears set to continue.



Gold prices are on course to hit fresh highs next year and could remain above $2,000 levels, analysts said, citing geopolitical uncertainty, a likely weaker U.S. dollar and possible interest rate cuts.



Prices of the yellow metal have risen for two consecutive months with the Israel-Palestinian conflict boosting demand for the safe-haven asset, while expectations of interest rate cuts have provided further support. Gold tends to perform well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.



“The anticipated retreat in both the USD and interest rates across 2024 are key positive drivers for gold,” UOB’s Head of Markets Strategy, Global Economics and Markets Research, Heng Koon How, told CNBC via email. He estimated that gold prices could reach up to $2,200 by the end of 2024.



Similarly, another analyst is bullish on bullion’s outlook.



“There is simply less leverage this time around vs 2011 in gold &#8230; taking prices through $2,100 and putting $2,200/oz in view,” said Nicky Shiels, head of metals strategy at precious metals firm&nbsp;MKS PAMP.



<h2 class="wp-block-heading" id="h-all-that-glitters-is-gold"><a></a>All that glitters is gold</h2>



Spot gold prices rose to a new record high of $2,110.8 per ounce Monday before giving up some gains. It is currently trading at $2,084.59.



On Friday, gold touched $2,075.09 to surpass a precious intraday record high of $2,072.5 on Aug. 7, 2020, according to LSEG data.



Bart Melek, head of commodity strategies at TD Securities, expects gold prices to average $2,100 in the second quarter of 2024, with strong central bank purchases acting as a key catalyst in boosting prices.



According to a recent survey by the World Gold Council, 24% of all central banks intend to increase their gold reserves in the next 12 months, as they increasingly grow pessimistic about the U.S. dollar as a reserve asset.



“This means potentially higher demand from the official sector in the years to come,” Melek said.



A possible policy pivot by the Fed in 2024 could also be on the cards, he added. Lower interest rates tend to weaken the dollar and a softer dollar makes gold cheaper for international buyers thus driving up demand.



The Fed started its steady stream of rate hikes in March 2022 as inflation climbed to its highest in 40 years, diminishing gold’s appeal. 



Higher interest rates hurt demand for gold, which does not pay any interest, as assets such as bonds become more lucrative due to their higher yields.



On Nov. 29, Fed Governor Christopher Waller said he envisioned easing policy if inflation data continues to ease over the next three to five months, prompting analysts to forecast a spike in gold prices.



On Friday, while Fed Chairman Jerome Powell pushed back on expectations for aggressive interest rate cuts ahead, his remarks indicated the Fed may at least be done hiking for now.



“We believe the main factors buoying gold in 2024 will be interest rate cuts by the U.S. Fed, a weaker U.S. dollar and high levels of geopolitical tension,” BMI, a Fitch Solutions research unit, said in a recent note.

AA1kWCq1

Gold soars past $2,100 to new record — and analysts don’t expect it to stop there

<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/GettyImages-1815432571-820x547.jpg" alt="" class="wp-image-431887" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1815432571-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1815432571-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1815432571-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1815432571-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1815432571.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Attendees arrive at the Blue Zone on day three of the COP28 climate conference at Expo City in Dubai, United Arab Emirates, on Saturday, Dec. 2, 2023. More than 70,000 politicians, diplomats, campaigners, financiers and business leaders will fly to Dubai to talk about arresting the world&#8217;s slide toward environmental catastrophe. Photographer: Annie Sakkab/Bloomberg via Getty Images</figcaption></figure>



Dubai &#8211; The annual United Nations Climate Summit, known as COP28, is underway in Dubai, focusing on targeted action to address climate change and create a sustainable future for the planet. With over 100,000 participants, including global leaders and heads of states, this year&#8217;s event has become the most attended COP ever.



During the first day of the conference, an agreement was reached on the implementation of the <a href="https://www.cnbcafrica.com/media/6342094936112/loss-damage-fund-implementation-tops-africas-agenda-at-cop28-/">Loss and Damages Fund,</a> which aims to raise funds to protect vulnerable countries and support their adaptation to climate change. The initial target was set at $200 million, but pledges have already exceeded $400 million. According to the COP28 President, Sultan Ahmed Al-Jaber, this outcome demonstrates the commitment of world leaders to addressing the climate crisis.



In an<a href="https://www.cnbcafrica.com/media/6342161646112/cop28-president-on-africas-progress-in-energy-transition/"> interview with CNBC Africa</a>, Al-Jaber also highlighted the <a href="https://www.cnbcafrica.com/2023/africa-climate-summit-opens-with-focus-on-financing-continental-unity/">Africa Climate Summit</a> that took place in Nairobi before COP28. He commended the summit for its unique platform and emphasized the role it played in shaping COP28&#8217;s strategy and objectives. He stated that Africa&#8217;s political will and hands-on experience were instrumental in formulating an action-oriented agenda to address global challenges and keep the target of limiting global warming to 1.5 degrees Celsius within reach.



To support Africa&#8217;s energy transition, Al-Jaber announced the launch of a $4.5 billion fund that aims to replicate the success of the renewable energy projects implemented by Mazdar over the past 17 years. The fund, backed by the United Arab Emirates (UAE), will provide equity and development funding to attract private capital and mitigate risks, ensuring the security of investments in renewable energy projects across the continent. Al-Jaber projected that the fund, which has already started deploying $4.5 billion, will reach a total of $25 billion in the next three years.



The fund&#8217;s objective is to address Africa&#8217;s growing energy needs, stimulate economic development, create jobs, attract industries, and transfer knowledge and technology. Al-Jaber emphasized the importance of supporting the entire value chain of businesses involved in renewable energy projects, from manufacturing to supply chain resilience.



The COP28 President also praised Kenyan President William Ruto for his efforts in climate action, highlighting the unprecedented progress made in the country. These efforts align with the agenda of COP28 and contribute to advancing the energy transition in Africa and achieving global sustainability goals.



With Africa&#8217;s abundant renewable energy potential and increasing demand, the continent represents a significant opportunity for investment and development. The establishment of the $4.5 billion fund and the commitment of world leaders at COP28 demonstrate the international community&#8217;s recognition of Africa&#8217;s role in the energy transition and the urgent need to support sustainable development in the region.

Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough

COP28 President highlights Africa’s progress in energy transition at Climate Conference

<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>



JOHANNESBURG, Dec 1 (Reuters) &#8211; South African central bank deputy governor Fundi Tshazibana said on Friday there was a good case for domestic interest rates staying &#8220;higher for longer&#8221; as financial conditions had tightened and the government&#8217;s borrowing needs had risen.



Inflation is close to the upper end of the South African Reserve Bank&#8217;s preferred target range of between 3% and 6% &#8211; it rose to 5.9% in October, the latest month for which data is available.



In November at its final monetary policy meeting of 2023, the central bank kept its main lending rate unchanged at 8.25% , its third pause in a row following 10 consecutive hikes starting in November 2021.



&#8220;There still seems to be a good case for keeping rates higher for longer domestically,&#8221; Tshazibana told a Bank of America conference in Johannesburg.



Tshazibana said that was because the government needed to borrow more at a time when global interest rates were higher and the country was seen as riskier.



The treasury outlined increased borrowing plans in its mid-term budget statement in November, citing higher-than-budgeted-for public wage increases and rising pressure to bail out struggling state-owned entities among the reasons.



Tshazibana made clear on Friday that higher rates were not the central bank&#8217;s preference given economic stresses, calling them a second-best outcome.



&#8220;The underlying drivers of interest rates are going up. To maintain the value of the currency – that is, to stabilise inflation – actual rates must rise too,&#8221; she said.



For lower rates, the deputy governor said there needed to be different macroeconomic settings. She cited reforms to bring down the country&#8217;s risk premium and a lower inflation target among potential ways to achieve that.



&#8220;Higher for longer is not inevitable. We have to control inflation, but if we have different macro arrangements, that could be done more cheaply,&#8221; Tshazibana said. (Reporting by Kopano Gumbi Editing by Alexander Winning and Andrew Heavens)

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

South Africa central bank’s Tshazibana sees case for rates staying higher for longer

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-820x545.jpg" alt="" class="wp-image-431575" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-1536x1021.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Cop28-UAE-president-announces-30-bln-fund-to-bridge-climate-finance-gap-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of the United Arab Emirates Sheikh Mohamed bin Zayed Al Nahyan attends the United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates, December 1, 2023. REUTERS/Amr Alfiky</figcaption></figure>



DUBAI, Dec 1 (Reuters) &#8211; United Arab Emirates President Sheikh Mohammed Bin Zayed announced on Friday the establishment of a $30 billion climate fund for global climate solutions that it hopes will lead to $250 billion of investment by the end of the decade.



Dubbed ALTÉRRA, the fund will allocate $25 billion towards climate strategies and $5 billion specifically to incentivise investment flows into the Global South, according to a statement by the COP28 Presidency.



In collaboration with global asset managers BlackRock, Brookfield and TPG, ALTÉRRA has committed $6.5 billion to climate-dedicated funds for global investments, including the Global South, the statement said.



ALTÉRRA was established by Abu Dhabi-based alternate investment manager Lunate, and COP28 Director-General Majid Al Suwaidi will serve as ALTÉRRA&#8217;s chief executive officer. (Reporting by William James; Writing by Nadine Awadalla; Editing by Susan Fenton and Sharon Singleton)

U.N.’s COP28 climate summit in Dubai

Cop28 – UAE president announces $30 bln fund to bridge climate finance gap

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-820x462.jpg" alt="" class="wp-image-431529" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Bill Gates delivers a speech on Oct. 11, 2023 in Brussels, Belgium. Thierry Monasse | Getty Images News | Getty Images</figcaption></figure>



Dubai, UNITED ARAB EMIRATES —&nbsp;<a href="https://www.cnbc.com/quotes/MSFT/">Microsoft</a>&nbsp;co-founder Bill Gates on Friday shared his “big hope” for this year’s U.N. climate conference and said he was “definitely glass half-full” when it comes to preventing the worst of what the climate crisis has in store.



Speaking as world leaders convened in Dubai in the United Arab Emirates on the second day of the&nbsp;<a href="https://www.cnbc.com/cop28/">COP28 summit</a>, Gates said he believed there were many encouraging climate solutions but that these projects required the necessary support from policymakers and business leaders.



“Now, we need to take what looks very promising and scale it up, build the pilot plants, prove those out,” Gates told CNBC’s Tania Bryer on Friday. “And that requires government policies, it requires the big corporations to come in and so all these different communities that have to come together, they are represented here.”



COP28 is the United Nations’&nbsp;<a href="https://www.cnbc.com/2023/11/29/cop28-climate-summit-a-showdown-is-brewing-over-money-oil-and-carbon.html">biggest and most important annual climate conference</a>. The two-week long summit got underway on Thursday, with more than 160 world leaders expected to attend — alongside an estimated 70,000 delegates.



It is regarded as a pivotal opportunity to accelerate action to address the climate crisis at a time when global temperatures are&nbsp;<a href="https://www.cnbc.com/2023/11/08/climate-scientists-warn-2023-likely-to-be-the-hottest-year-on-record.html">hitting record highs</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/2023/08/04/south-america-argentina-and-chile-gripped-by-extreme-mid-winter-heat.html">extreme weather events</a>&nbsp;are affecting people worldwide.



“You know, I think 70,000 people and it seems like wow, do we need that many? But in fact, a lot of meetings here will be where those companies get the backing and the kind of experience of big companies, the government help and these entrepreneurs are going to come together,” Gates said.



“And so, facilitating the speed of innovation and the speed of the scale up, that’s my big hope for COP28.”



<h2 class="wp-block-heading" id="h-magic-of-invention-and-scale-up"><a></a>‘Magic of invention and scale-up’</h2>



Asked about criticism of conferences such as COP28, given that some feel they are often&nbsp;<a href="https://www.cnbc.com/2021/11/05/greta-thunberg-says-cop26-climate-summit-is-a-failure-and-a-pr-event.html">all talk and no action</a>, Gates defended the platform as a means to help drive progress across the globe.



“The collaboration between those sectors has improved a great deal,” Gates told CNBC.



“We are falling short of our aspirations in many areas and coming and saying, you know, how do we catch up? Can we do better in one area? Which countries are doing particularly well? Are there models from that?”



“It is a super important issue,” he continued. “It’s definitely glass half-full.”



“We haven’t gone as fast as we’d like and yet particularly, if you see in the innovation pavilion, these smaller companies, the ideas cover all the areas of emissions. And there’s hope that many of these clean approaches given time won’t cost extra,” Gates added.



The billionaire philanthropist said the costs of solar electricity and EV batteries have come down.



“And so, that same magic of invention and scale up, if we apply that broadly &#8230; I have hope that despite these delays and incredible complexity that the message coming out of these meetings does help drive progress,” Gates said.

Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium

Bill Gates shares his ‘big hope’ for COP28 as world leaders gather for climate talks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-820x462.jpg" alt="" class="wp-image-431341" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man wearing a thawb walks past flags of nations participating in the UNFCCC COP28 Climate Conference the day before its official opening on November 29, 2023 in Dubai, United Arab Emirates. Sean Gallup | Getty Images News | Getty Images</figcaption></figure>



Dubai, UNITED ARAB EMIRATES — Countries at the U.N. COP28 summit on Thursday agreed on deal details for a disaster fund to help nations reeling from damages caused by the climate crisis.



This agreement, struck on the opening day of the conference in the United Arab Emirates, builds on a deal for a loss and damage fund brokered at COP27 in Egypt last year — widely seen as a historic breakthrough and potential turning point in the climate crisis.



Many key arrangements were left unresolved at the time, such as who should pay into the fund, how large should it be and who should administer the money.



The operationalization of the fund on Thursday prompted a standing ovation from delegates in the audience.



So far, the pledges to the fund include $100 million from Germany, $100 million from the United Arab Emirates, $17 million from the U.S. and $10 million from Japan. The U.K. has also pledged sums into the fund.



Payments are made into the fund on a voluntary basis, and all developing countries are eligible to directly access the resources. The World Bank will be the interim host to the fund for a period of four years — an issue that has previously fueled tensions between high-income and low-income countries.



In emailed comments, Friederike Roder, vice president of sustainable development advocacy group Global Citizen, described the announcement of a loss and damage fund as a “historic decision,” but added that “a fund is worthless without any dollars in it” and urged wealthy countries to step and announce significant pledges.



“The needs for loss and damage and other climate finance will continue to increase. This is why we also need, additionally, to tap into other financing sources, such as international taxes,” Roder said.



High-income countries, which account for the bulk of historical greenhouse gas emissions, have long opposed the creation of a loss and damage fund to compensate low-income nations.



Advocates argue that the fund is required to account for climate impacts — including hurricanes, floods and wildfires or slow-onset impacts such as rising sea levels — that countries cannot defend against, either because the risks are unavoidable, or because they lack the financial resources to do so.



Avinash Persaud, special climate envoy to Barbados, said that the deal reflects “a hard fought historic agreement.”



“It shows recognition that climate loss and damage is not a distant risk but part of the lived reality of almost half of the world’s population and that money is needed to reconstruct and rehabilitate if we are not to let the climate crisis reverse decades of development in mere moments,” he added.



<h2 class="wp-block-heading" id="h-a-boost-to-momentum">A boost to momentum?</h2>



 In Dubai, Alex Scott, an analyst at environmental think tank E3G, described the deal to establish a loss and damage fund as a “massive” breakthrough that reflected “a huge show of global cooperation.”



“There is often a lot of skepticism at these multilateral spaces because they are often getting every country to agree, so they always end up being the lowest common denominator and end up with diplomatic speak that doesn’t really make sense to people,” Scott told CNBC.



“But this is very clear. This is a decision to establish the fund that they agreed they would try to establish last year. I think it will be a good momentum boost for the rest of the negotiations.”



Policymakers will now need to reflect on how much they are willing to put into the fund, Scott said.



Low-income countries have previously called for sums of at least $100 billion a year by 2030, to be put toward the loss and damage caused by the climate crisis.



“I would expect some countries might hold back their pledges and wait until the very end, as part of the negotiating tactics to bring the final package together,” Scott said.

Countries at COP28 approve climate disaster fund deal details in early breakthrough

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--820x547.jpg" alt="" class="wp-image-431295" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/World-to-hit-1.4C-of-warming-in-record-hot-2023--scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People wearing sun protection gear amid a heatwave walk on a street in Beijing, China July 1, 2023. REUTERS/Tingshu Wang/File Photo</figcaption></figure>



DUBAI, Nov 30 (Reuters) &#8211; With a month to run, 2023 will reach global warming of about 1.4 degrees Celsius (2.5 Fahrenheit) above preindustrial levels, adding to &#8220;a deafening cacophony&#8221; of broken climate records, the World Meteorological Organization (WMO) said on Thursday.



The WMO&#8217;s provisional State of the Global Climate report confirms that 2023 will be the warmest year on record by a large margin, replacing the previous record-holder 2016, when the world was around 1.2C warmer than the preindustrial average.



It adds to the urgency world leaders face as they wrestle with phasing out fossil fuels at the United Nations annual climate summit COP28, which begins on Thursday in Dubai.



&#8220;Greenhouse gas levels are record high. Global temperatures are record high. Sea level rise is record high. Antarctic sea ice record low,&#8221; WMO Secretary General Peterri Taalas said.



The report&#8217;s finding, however, does not mean the world is about to cross the long-term warming threshold of 1.5C that scientists say is the ceiling for avoiding catastrophic climate change under the 2015 Paris Agreement.



For that, the level of warming would need to be sustained for longer.



Already, a year of 1.4C has provided a frightening preview of what permanently crossing 1.5C might mean.



This year, Antarctic sea ice reached its lowest winter maximum extent on record, some 1 million square kilometres (386,000 sq miles) less than the previous record. Swiss glaciers lost about 10% of their remaining volume over the last two years, the report said. And wildfires burned a record area in Canada, amounting to about 5% of the country&#8217;s woodlands.



Climate change, driven by the burning of fossil fuels, combined with the emergence of the natural El Nino climate pattern in the Eastern Pacific pushed the world into record territory this year.



Next year could be worse, the scientists said, as El Nino&#8217;s impacts are likely to peak this winter and drive higher temperatures in 2024.



(Reporting by Gloria Dickie; editing by Barbara Lewis)

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World to hit 1.4C of warming in record hot 2023

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