<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-820x462.jpeg" alt="" class="wp-image-428799" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Office-sharing company WeWork filed for Chapter 11 bankruptcy protection in New Jersey federal court Monday, saying that it had entered into agreements with the vast majority of its secured note holders and that it intended to trim “non-operational” leases.



The bankruptcy filing is limited to WeWork’s locations in the U.S. and Canada, the company said in a press release. The company reported liabilities ranging from $10 billion to $50 billion, according to a bankruptcy filing.



“I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement,” WeWork CEO David Tolley said in a press release. “We remain committed to investing in our products, services, and world-class team of employees to support our community.



WeWork has suffered one of the most spectacular corporate collapses in recent U.S. history over the past few years. Valued in 2019 at $47 billion in a round led by Masayoshi Son’s SoftBank, the company tried and failed to go public five years ago.



The pandemic caused further pain as many companies abruptly ended their leases, and the economic slump that followed led even more clients to close their doors.



It disclosed in an August regulatory filing that bankruptcy could be a concern.



WeWork debuted through a special purpose acquisition company in 2021 but has since lost about 98% of its value. The company in mid-August announced a 1-for-40 reverse stock split to get its shares trading back above $1, a requirement for keeping its New York Stock Exchange listing.



WeWork shares had fallen to a low of about 10 cents and were trading at about 83 cents before the stock was halted Monday.



Former CEO and co-founder Adam Neumann said that the filing was “disappointing.”



“It has been challenging for me to watch from the sidelines since 2019 as WeWork has failed to take advantage of a product that is more relevant today than ever before,” Neumann said in a statement to CNBC. “I believe that, with the right strategy and team, a reorganization will enable WeWork to emerge successfully.”



As recently as September, the company said it had been actively renegotiating leases and that it was “here to stay.” The company had close to $16 billion in long-term lease obligations, according to securities filings.



The company leases millions of square feet of office space in 777 locations around the world, according to its regulatory filings.



WeWork has engaged Kirkland &amp; Ellis and Cole Schotz as legal advisors. PJT Partners will serve as its investment bank, with support from C Street Advisory Group and Alvarez &amp; Marsal.



CNBC’s Ari Levy contributed to this report.

107283802-1691585442966-gettyimages-1585942148-AFP_33QT9M7

WeWork, once valued at $47 billion, files for bankruptcy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-820x547.jpg" alt="" class="wp-image-426999" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/NZYQIEEYZBO4NPHLOGIRU5XFFY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of China Xi Jinping attends the plenary session during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg, South Africa on August 23, 2023. GIANLUIGI GUERCIA/Pool via REUTERS</figcaption></figure>



JOHANNESBURG/HONG KONG, Nov 6 (Reuters)&nbsp;&#8211;&nbsp;Chinese financial institutions lent $1.34 trillion to developing countries from 2000 to 2021, U.S. researchers at AidData said in a report that showed the world&#8217;s biggest bilateral lender switching from infrastructure to rescue lending.



While lending commitments peaked at almost $136 billion in 2016, China still committed to almost $80 billion of loans and grants in 2021 according to the data, which captures almost 21,000 projects in 165 low and middle income countries as probably the most comprehensive dataset of its type.



Overseas finance has won Beijing allies across the developing world, while drawing criticism from the West and in some recipient countries, including Sri Lanka and Zambia, that infrastructure projects it funded saddled them with debt they were unable to repay.



Both the sources and the focus of China&#8217;s overseas financing, have changed, the data showed.



In 2013, when President Xi Jinping launched the Belt and Road Initiative to build infrastructure across the developing world, China&#8217;s policy banks accounted for over half of the lending. Their share started falling from 2015 and was 22% by 2021.



The People&#8217;s Bank of China and the State Administration of Foreign Exchange (SAFE), which manages China&#8217;s foreign currency reserves, accounted for more than half of lending in 2021, almost all bailout lending.



&#8220;Beijing is navigating an unfamiliar and uncomfortable role— as the world&#8217;s largest official debt collector,&#8221; said the report by AidData, a research lab at William and Mary university.



Much of China&#8217;s growing rescue lending is denominated in renminbi, the report found, with loans in the Chinese currency overtaking U.S. dollars in 2020. Overdue payments to Chinese lenders have also risen.



One way China is managing repayment risk is through foreign currency cash escrow accounts it controls, AidData said. The arrangement is controversial because it gives China debt seniority, meaning other lenders, including multilateral development banks, could get paid second during any coordinated debt relief.



AidData identified 15 countries, primarily in Africa, with escrow accounts totalling a combined $2.5 billion at their peak in June 2023.



Brad Parks, the study&#8217;s lead author, said they were not able to identify all such accounts, as they are normally kept private. He noted, though, that they had found collateralised loans worth $614 billion and that cash was the main source of collateral required by Chinese lenders, indicating that the amount in escrow accounts could be far higher than $2.5 billion.



China is also working more with multilateral lenders and Western commercial banks. Half of its non-emergency lending in 2021 was syndicated loans, 80% of that alongside Western banks and international financial institutions.



The destinations of Chinese overseas lending have also changed. Loan commitments to African countries fell from 31% of the total in 2018 to 12% in 2021, while lending to European countries almost quadrupled to 23%.



A different dataset showed loan commitments to African countries falling to a 20-year low in 2022.



(Reporting by Rachel Savage and Clare Baldwin; Editing by Tomasz Janowski)

BRICS Summit in Johannesburg

China lent $1.34 trln in 2000-2021, focus shifts from Belt and Road to rescue finance-report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="590" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-820x590.jpg" alt="" class="wp-image-428788" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-820x590.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-300x216.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-768x553.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-1536x1106.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MCDMHXO42NKDXGY53Q62NDMHBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nigeria&#8217;s Central Bank Governor Godwin Emefiele briefs the media during the MPC meeting in Abuja, Nigeria January 24, 2020. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Nov 6 (Reuters)&nbsp;&#8211;&nbsp;A Nigerian court on Monday ordered that former central bank governor Godwin Emefiele, who has been in detention for three months, be unconditionally released or that the government produce him in court on Wednesday for a bail hearing.



Emefiele has been in detention since June 10, charged with procurement fraud, but his trial has stalled since August when the Department of State Services failed to present him in court to enter a plea.



The former central bank chief was not present in court for his bail hearing on Monday prompting Judge Olukayode Adeniyi to demand that the Attorney General of the Federation and the Economic and Financial Crimes Commission (EFCC) release him or bring him to court in two days.



Emefiele was initially detained by the Department of State Services (DSS) but the EFCC, a government anti-corruption agency, said on Monday he had now been in their custody for a week.



Emefiele, who has not commented publicly on the case, was suspended by President Bola Tinubu on June 9 and was arrested a day later by the DSS.



He resigned in August, paving the way for the appointment of new central bank governor Olayemi Cardoso in September.



(Reporting by Camillus Eboh; Editing by Alison Williams)

Nigeria’s Central Bank Governor Godwin Emefiele briefs the media during the MPC meeting in Abuja

Nigerian court orders release or bail hearing for ex-central bank head

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-820x576.jpg" alt="" class="wp-image-428782" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-1536x1079.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/JI5LQDESTVLR3AQZGRK5W2J7YQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A delegate poses in front of flags during the opening of the U.S.-sub-Saharan Africa trade forum to discuss the future of the African Growth and Opportunity Act (AGOA), at the NASREC conference center in Johannesburg, South Africa, November 3, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



WASHINGTON, Nov 6 (Reuters)&nbsp;&#8211;&nbsp;A trade program that grants exports from qualifying African countries duty-free access to the U.S. market should be extended by 16 years, said Democratic Senator Chris Coons, a leading voice on U.S.-Africa policy.



Talks are underway for the renewal of the two-decade-old African Growth and Opportunity Act (AGOA), which is due to expire in 2025.



African countries want a 10-year renewal of the pact ahead of the 2024 U.S. election. President Joe Biden&#8217;s administration is also seeking the program&#8217;s reauthorization but has called for certain reforms.



Coons, a member of the Senate Foreign Relations Committee, has sponsored a bill that seeks to integrate AGOA and the African Continental Free Trade Agreement, which includes the majority of African nations.



According to a draft version of the bill exclusively obtained by Reuters, the program would maintain benefits for countries as they grow wealthier, allowing them to remain until they are determined to be high-income for five years, instead of removing them if they reach that threshold for a single year.



&#8220;My AGOA Renewal Act would extend this program, incentivizing investments that will create jobs, bolster economic development, and strengthen our standing in the region,&#8221; Coons said in a statement.



Spokespeople for Senator Ben Cardin, the committee&#8217;s chairman, did not immediately respond to a request for comment.



James Risch, the panel&#8217;s top Republican, wrote in a letter to Biden administration officials on Thursday that he supports the early reauthorization of the program, but wants to see changes to its eligibility criteria and other modifications.



More than $10 billion worth of African exports entered the United States duty-free under the program in 2022. The pact has bipartisan support in Washington, but there are divisions on how to update it.



U.S. Trade Representative Katherine Tai said on Saturday that AGOA should aim to boost usage of the program by countries that qualify, though she did not give details on how it would do so.



American business groups have said they need certainty over AGOA, so that African countries are able to take advantage of a global push to reduce dependence on Chinese manufacturing.



(Reporting by Makini Brice; Editing by Paul Simao)

South Africa hosts US-Africa trade summit

US-Africa program should be extended through 2041, Senate Democrat says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg" alt="" class="wp-image-428778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. Picture taken September 10, 2018. REUTERS/Afolabi Sotunde/Illustration/File Photo</figcaption></figure>



ABUJA, Nov 6 (Reuters) &#8211; Nigeria&#8217;s naira firmed to 1,000 per dollar on the black market on Monday, online platform abokiFX showed, recovering from a record low of 1,300 naira, after the central bank started to clear outstanding currency forwards owed to banks.



The naira has hit successive record lows on the black market, where it trades freely, as excess demand on the official market gets funnelled to the unofficial market.



The central bank last week said it had started clearing outstanding foreign currency forwards owed to banks, with banking sources saying an initial payment of $1 billion had been made. The naira has been under pressure from past due obligations.



The naira crossed the 1,000 naira mark on the black market on Sept. 26, the day newly-appointed central bank governor Olayemi Cardoso appeared before the Nigerian senate for his confirmation hearing.



The central bank has not intervened on the official market since October, helping accelerate the naira&#8217;s slide on the black market.



The currency hit a record low of 1,300 naira per dollar on the black market, a month after it crossed the 1,000 naira mark, amid thin trading volumes on the parallel market and dollar shortages on the official market.



Nigeria lifted restrictions on trading the currency on the official market in June, to the delight of investors, but the expected dollar inflow is yet to materialise, sending the naira tumbling.



Cardoso has said the naira will adjust once rules for market participants are made clear. Finance Minister Wale Edun has said Nigeria is expecting $10 billion in foreign currency inflows in weeks to improve foreign exchange market liquidity.



On the official market, the naira was trading at 884.53 to the dollar at 1200 GMT.



(Reporting by Chijioke Ohuocha; Editing by Mark Potter)

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

Nigeria’s naira firms on black market, central bank settles FX forwards

<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>



Nov 6 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets stocks opened the week on a flying note on Monday led by gains in South Korean shares after the country re-imposed a short-selling ban, while currencies rose on hopes that the U.S. Federal Reserve was done with its rate hiking cycle.



The MSCI index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;jumped 2.2% by 0954 GMT and was on track for its best day since June.



South Korea&#8217;s benchmark KOSPI .KS11 index soared 5.7%, recording its best session since early 2020, as authorities said on Sunday they will re-impose a ban on short-selling through the first half of 2024 to promote a &#8220;level-playing field&#8221;



China shares&nbsp;.SSEC&nbsp;rose 0.9%, while the yuan&nbsp;CNY=CFXS&nbsp;gained 0.4% ahead of key domestic economic data this week, including crucial inflation numbers.



The world&#8217;s second-largest economy also recorded its first-ever quarterly deficit in foreign direct investment (FDI), according to balance of payments data, underscoring Beijing&#8217;s challenge in wooing overseas companies in the wake of a &#8220;de-risking&#8221; move by Western governments.



Global fund managers sold China equities sharply in October despite further steps from authorities aimed at boosting the country&#8217;s economy, according to a report from Morgan Stanley.



The MSCI gauge for emerging markets (EM) currencies&nbsp;.MIEM00000CUS&nbsp;also strengthened 0.6% against a weak dollar, and was set for its best day since March, if gains hold.



November has been a bright start for EM assets after a dismal October, as comments from Fed Chair Jerome Powell and a weak jobs report last week boosted risk appetite on hopes that the central bank was done with its tightening cycle.



Investors will keenly focus on the U.S. debt auctions this week, after the U.S. Treasury Department on Wednesday said it will slow the pace of increase in its longer-dated debt auctions in the November 2023 to January 2024 quarter.



&#8220;Risk appetite has vastly improved and one of the big headwinds to emerging markets FX has now been cleared and that has been the building risk premium in Treasury yields,&#8221; said Simon Harvey, Head of FX Analysis, Monex Europe.



&#8220;The currencies that are being the most sensitive to these dynamics, the Indonesian rupiah or the South Korean won, they&#8217;re posting huge gains off on the back of this.&#8221;



The Korean won&nbsp;KRW=&nbsp;and the rupiah&nbsp;IDR=&nbsp;jumped 1.2% and 1.3% respectively.



Elsewhere in Central and Eastern Europe, Czech working day adjusted industrial output fell higher-than-expected 5.0% year-on-year in September, after a 1.7% fall in August, data showed.



(Reporting by Siddarth S in Bengaluru; Editing by Janane Venkatraman)

World map with charts and graphs as symbols of global finance

Stocks jump on boost from South Korean shares, FX rise

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-820x462.jpeg" alt="" class="wp-image-428762" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Elon Musk announced his new company xAI which he says has the goal to understand the true nature of the universe.  Jaap Arriens | Nurphoto | Getty Images</figcaption></figure>



Meet Grok, the first technology out of Elon Musk’s new AI company, xAI.



Grok, the company said, is modeled on “The Hitchhiker’s Guide to the Galaxy.” It is supposed to have “a bit of wit,” “a rebellious streak” and it should answer the “spicy questions” that other AI might dodge, according to a Saturday statement from xAI.



Leading up to the release, Musk posted on X, formerly Twitter, an example of Grok responding to a request for a step-by-step cocaine recipe.



“Oh sure!” Grok responded. “Just a moment while I pull up the recipe for homemade cocaine. You know, because I’m totally going to help you with that.” 



Grok also has access to data from X, which xAI said will give it a leg-up. Musk, on Sunday, posted a side-by-side comparison of Grok answering a question versus another AI bot, which he said had less current information.



Still, xAI hedged in its statement, as with any Large Language Model, or LLM, Grok “can still generate false or contradictory information.”



The prototype is in its early beta phase, only two months in training and is available to a select number of users to test out before the company releases it more widely. Users can sign up for a waitlist for a chance to use the bot. Eventually, Musk said on X, Grok will be a feature of X Premium+, which costs $16 per month.



The Tesla and Space X CEO appears to be positioning xAI as a challenger to companies like OpenAI, Inflection and Anthropic.



On an initial round of tests based on middle school math problems and Python coding tasks, the company said that Grok surpassed “all other models in its compute class, including ChatGPT-3.5 and Inflection-1.” It was outperformed by bots with larger data troves.



“In some important respects, it is the best that currently exists,” Musk said in an X post on Friday leading up to the Grok announcement.



Grok is a term coined by Robert A. Heinlein in his 1961 science fiction novel “Stranger in a Strange Land.” In the book, ‘grok’ is a Martian term with no direct Earthling translation. Critics have debated the word’s exact definition but have settled on some version of having very deep empathy or intuition with something. Merriam-Webster defines it simply as a transitive verb that means “to understand profoundly and intuitively.”



xAI launched in July with a team stacked with former employees of OpenAI, DeepMind and more. It is still hiring for several roles.



The company’s self-stated mandate is to build artificial intelligence “to advance our collective understanding of the universe.” Musk has previously said that he believes today’s AI makers are bending too far toward “politically correct” systems. xAI’s mission, it said, is to create AI for people of all backgrounds and political views.



Grok is said to be a means of testing that AI approach “in public.”

107271046-1689253889759-gettyimages-1529571780-arriens-elonmusk230713_npTNn

Elon Musk debuts ‘Grok’ AI bot to rival ChatGPT, others

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="516" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-820x516.jpg" alt="" class="wp-image-428729" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-820x516.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-768x483.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-1536x966.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3XQO5RV2PVMONDCXKX3VED6E7M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. Secretary of State Antony Blinken speaks to reporters about the war between Israel and Hamas and the situation in Gaza as he boards his aircraft to depart Washington on travel to the Middle East and Asia at Joint Base Andrews, Maryland, U.S., November 2, 2023. REUTERS/Jonathan Ernst/Pool</figcaption></figure>



JOHANNESBURG, Nov 3 (Reuters)&nbsp;&#8211;&nbsp;U.S. President Joe Biden&#8217;s administration wants to work with Congress to improve a U.S.-Africa&nbsp;trade pact, not just renew it without changes, U.S. Secretary of State Antony Blinken said on Friday.



The African Growth and Opportunity Act (AGOA), a U.S. trade initiative passed in 2000 to deepen trade ties with Africa and help African countries develop their economies, provides duty-free access to the U.S. market and is due to expire in September 2025 after being renewed twice.



African countries are pushing for an early 10-year extension without changes to reassure businesses and investors.



&#8220;President Biden fully supports the reauthorisation of AGOA. But we don&#8217;t just want to extend AGOA, we want to work with the United States Congress to make it even better,&#8221; Blinken said in a video message to a U.S.-Africa&nbsp;trade summit in Johannesburg, South&nbsp;Africa.



Despite longstanding bipartisan support for AGOA from U.S. lawmakers, who view it as critical in countering the influence of China on the continent, there are divisions over the need for updates.



More than a dozen U.S. senators are pushing for a quick AGOA renewal.



But the U.S. House of Representatives, paralysed for weeks by factional fighting over its speakership, faces a daunting list of must-pass legislation.



And attempts to change AGOA risk creating an impasse similar to the one that bogged down the reauthorisation of the Generalized System of Preferences, the largest and oldest U.S. trade preference programme,&nbsp;African government and U.S. industry associations say.



South&nbsp;African President Cyril Ramaphosa told the Johannesburg forum that&nbsp;African countries wanted the U.S. to look at the extension of AGOA for a sufficiently lengthy period to stimulate investment in new factories on the continent.



He said: &#8220;A more targeted effort to promote greater levels of investment can help to unlock AGOA&#8217;s opportunities.&#8221;



(Additional reporting by Carien du Plessis; Writing by Tannur Anders; Editing by Alexander Winning and Nick Macfie)

U.S. Secretary of State Blinken departs on trip to the Middle East and Asia from Joint Base Andrews in Maryland

Biden wants to improve U.S.-Africa trade pact, not just renew it – Blinken

<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>



Nov 3 (Reuters)&nbsp;&#8211;&nbsp;Risk taking in emerging markets gained steam on Friday with stocks and currencies on track for weekly gains, as investors stayed hopeful of U.S. rates peaking, while Pakistan&#8217;s main index hit a record high.



MSCI&#8217;s index tracking emerging markets equities&nbsp;.MSCIEF&nbsp;were up 1.3%, while a basket of regional currencies&nbsp;.MIEM00000CUS&nbsp;strengthened 0.3% against the dollar by 0917 GMT.



Following Federal Reserve&#8217;s Chair Jerome Powell&#8217;s comments on Wednesday, markets gained on the possibility that the central bank was done with rate hikes. However, U.S. October non-farm payrolls data due at 1230 GMT could be a test for the optimism.



EM stocks and currencies are eyeing their best weekly performances since July, with stocks set to end the week up 2.5% and the basket of currencies up 0.7%.



However, JP Morgan points out after filing through the EPFR data, that outflows from EM bond funds are still high across both hard and local currencies.



Pakistan&#8217;s benchmark stock index PAKS.PSX, .KSE surged 0.9% and hit a record high, a day after the country announced general election dates and the International Monetary Fund mission met with Pakistani authorities.



The local rupee&nbsp;PKR=&nbsp;was up 0.3%.



&#8220;Efficient handling of economic matters by the caretaker government is helping the economy and there are clear signs of economic revival,&#8221; said Mohammad Sohail, CEO of Topline Securities in Pakistan.



&#8220;After many years it looks like that IMF review will be completed smoothly this month. Moreover announcement of election dates has also helped support sentiment.&#8221;



The South Asian country is operating under a caretaker government after an IMF loan programme, approved in July, helped avert a sovereign debt default.



Also aiding gains, a private survey showed China services activity picked up in October, giving Hong Kong stocks .HSI a boost of 2.5%, their best one-day performance in three months.



Traders also gauged the impact of Washington&#8217;s latest sanctions against Russia over the war in Ukraine. The rouble RUBUTSTN=MCX edged up at 93 to the dollar.



Turkey&#8217;s lira TRYTOM=D4 weakened to 28.4 after data showed annual consumer price inflation dipped slightly to 61.4% in October.



Meanwhile in Africa, the South African rand ZAR= slipped 0.3% after a survey showed private sector activity fell in October.



Ethiopia&#8217;s birr ETB= was muted after ratings agency Fitch downgraded the country&#8217;s foreign currency debt deeper into junk territory, citing increased likelihood of a default.



In central Europe, Romania&#8217;s leu&nbsp;EURRON=&nbsp;traded tepidly against the euro ahead of Moody&#8217;s review of the country&#8217;s credit rating.



(Reporting by Johann M Cherian in Bengaluru; Additional reporting by Marc Jones; Editing by Varun H K)

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

Stocks, FX extend rally; Pak equities hit record high

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-820x462.jpeg" alt="" class="wp-image-428722" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Elon Musk, chief executive officer of Tesla Inc., at the AI Safety Summit 2023 at Bletchley Park in Bletchley, UK, on Wednesday, Nov. 1, 2023. Chris J. Ratcliffe | Bloomberg | Getty Images</figcaption></figure>



LONDON — Elon Musk thinks that artificial intelligence could eventually put everyone out of a job.



The billionaire technology leader, who owns Tesla, SpaceX, X, the company formerly known as Twitter, and the newly formed AI startup xAI, said late Thursday that AI will have the potential to become the “most disruptive force in history.”



“We will have something that is, for the first time smarter than the smartest human,” Musk said at an event at Lancaster House, an official U.K. government residence.



“It’s hard to say exactly what that moment is, but there will come a point where no job is needed,” Musk continued, speaking alongside British Prime Minister Rishi Sunak. “You can have a job if you wanted to have a job for personal satisfaction. But the AI would be able to do everything.” 



“I don’t know if that makes people comfortable or uncomfortable,” Musk joked, to which the audience laughed.&nbsp;



“If you wish for a magic genie, that gives you any wish you want, and there’s no limit. You don’t have those three wish limits nonsense, it’s both good and bad. One of the challenges in the future will be how do we find meaning in life.”



Musk has on multiple occasions warned of the threats that AI poses to humanity, having once said it could be more dangerous than nuclear weapons. He was one of numerous tech leaders who urged for a pause to development of AI more advanced than OpenAI’s GPT-4 software in a widely-cited open letter released earlier this year.



Other tech leaders disagree with that view, including Palantir’s boss Alex Karp. Speaking to BBC Radio in June, Karp said he is of the view that “many of the people asking for a pause, are asking for a pause because they have no product.”



Musk’s comments Thursday follow the conclusion to a landmark summit in Bletchley Park, England, where world leaders agreed to a global communique on AI that saw them find common ground on the risks the technology poses to humanity.



Technologists and political leaders used the summit to warn of the existential threats that AI poses, focusing on some of the possible doomsday scenarios that could be formed with the invention of a hypothetical superintelligence.



The summit saw the U.S. and China, two countries clashing the most tensely over technology, agree to find global consensus on how to tackle some of the most complex questions around AI, including how to develop it safely and regulate it.

107327057-1698855994841-gettyimages-1757274099-UK_AI_SUMMIT

Elon Musk says AI will eventually create a situation where ‘no job is needed’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="535" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-820x535.jpg" alt="" class="wp-image-428711" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-820x535.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-768x501.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-1536x1001.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LU3DJC6JPRKQDNC2VXM6L3ZNO4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man uses an iPhone 7 smartphone to demonstrate the mobile payment service Apple Pay at a cafe in Moscow, Russia, October 3, 2016. REUTERS/Maxim Zmeyev</figcaption></figure>



The Africa Export-Import Bank has added 11 African central banks to its flagship Pan- African Payment and Settlement System (PAPSS) and expects the rest to join by next year, a key step in its drive to cut costs and simplify trading across the region’s 55 territories.



“Trade goes well where payments can be made easily, and this is why we can only see trade pick up if we see improvement in efficient payments,” John Bosco Sebabi, PAPSS deputy CEO told CNBC Africa’s Godfrey Mutizwa this week.



Over 80 percent of intra-African payments currently go through either Europe or the United States, a process Afreximbank estimates costs as much as $5 billion in fees and compliance costs. It says PAPSS, a partnership with the African Union, will provide an alternative in which participants will transact in their own currencies without the need for a third party currency like the U.S. dollar.



Key participants in the system include central banks, which will act as regulators and clearance agents, commercial banks, fintechs, payment service providers and their customers comprising businesses across the region.



&#8220;The issue here is not the exclusion of the U.S dollar but to be able to ease this. For those in Zimbabwe or Rwanda, for example, PAPSS will debit their accounts in Zim dollars, credit their accounts in Rwanda francs and then the central banks work it out in any currency convenient to them,&#8221;&nbsp;Sebabi said.



The Africa Union launched the Africa Continental Free Trade Agreement in January 2021, the youngest and largest trading bloc in the world after rapid ratification creating a common market with a combined gross domestic product of $3.4 trillion for the continent’s 1.3 billion people.



The region has the lowest intra-regional trade volumes in the world at about 18 percent, compared with Europe’s 70 percent and Asia’s 59 percent. Sebabi expects PAPSS to gain traction quickly.



“This will rollout very, very quickly. We have got 81 commercial banks on board, mostly from the West African monetary zone,” he said.



Southern African participants include Standard Bank, the continent’s largest bank by assets. People &#8220;will make payments within as little as 7-10seconds, with a maximum of 120seconds. This payment system has the ability to further advance intra-African trade ties.&#8221;

FILE PHOTO: Man uses iPhone 7 smartphone to demonstrate mobile payment service Apple Pay at cafe in Moscow

Afreximbank’s PAPSS Adds 11 African Central Banks to Continental Payments System

<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/UJYWVG4STRN6FFJZPWU3RC4P3A-820x547.jpg" alt="" class="wp-image-428707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/UJYWVG4STRN6FFJZPWU3RC4P3A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Italian Prime Minister Giorgia Meloni speaks during a news conference with Israeli Prime Minister Benjamin Netanyahu after their meeting at Palazzo Chigi, in Rome, Italy, March 10, 2023. REUTERS/Guglielmo Mangiapane/File Photo</figcaption></figure>



ROME, Nov 2 (Reuters)&nbsp;&#8211;&nbsp;A management structure including politicians and state-controlled&nbsp;firms&nbsp;will be in charge of an Italian government plan to boost&nbsp;energy cooperation with&nbsp;African countries&nbsp;and help curb mass illegal migration, a draft decree showed on Thursday.



The project, a flagship proposal of Prime Minister Giorgia Meloni, has been named after Enrico Mattei, founder of state-controlled oil and gas major Eni&nbsp;ENI.MI, but will lay the ground for cooperation beyond energy.



Under&nbsp;the draft decree,&nbsp;which is expected to be approved by the&nbsp;cabinet on Friday, Italy will help&nbsp;African nations in areas including education, exports, infrastructures, health and sustainable exploitation of natural resources.



Meloni previously said the project would aim to turn Italy into a major energy hub, distributing gas from North Africa and the Mediterranean to the rest of Europe, and address the root economic causes of mass migration from Africa.



&#8220;The Mattei Plan encourages the involvement of&nbsp;African states in the identification, definition and implementation of the Plan&#8217;s interventions,&#8221; the draft said.



Once heavily reliant on Russian gas, Italy managed to reduce such dependence since Russia&#8217;s invasion of Ukraine and now imports the fuel mostly from North&nbsp;Africa&nbsp;through several shippers including Eni,&nbsp;which will play a key role in helping Italy implement the Mattei plan, government officials said.



Migration is weighing on Italy&#8217;s right-wing administration. Arrivals of boat migrants have surged this year, with nearly 144,600 coming ashore against some 86,400 in the same period in 2022, severely denting an electoral pledge to block landings.



The draft said the Mattei Plan would last four years and envisage differentiated strategies for separate areas of the&nbsp;African continent.



The prime minister will oversee the administration in charge of the project, but representatives from state lender Cassa Depositi e Prestiti (CDP) and state-owned credit agency SACE will also be called in.



Italy, which will take over the presidency of the Group of Seven (G7) nations in 2024, pledged to make&nbsp;Africa&nbsp;a central theme while it is at the helm.



In July, it hosted a conference with Mediterranean and Middle East countries to discuss partnerships. Another summit with African nations was due in November, but the government postponed it after the Israel-Hamas war erupted.



(Reporting by Angelo Amante and Giuseppe Fonte; editing by Mark Heinrich)

UJYWVG4STRN6FFJZPWU3RC4P3A

Italy takes first step in flagship cooperation plan with Africa, draft shows

<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/GettyImages-1500303442-820x547.jpg" alt="" class="wp-image-428703" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1500303442-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ACCRA, GHANA &#8211; JUNE 18: H.E. Ambassador Albert Muchanga
Commissioner for Economic Development, Trade, Industry and Mining, African Union Commissioner (AUC) speaks at the African Export-Import Bank (Afreximbank) Annual Meeting on June 18, 2023 at the Accra International Conference Center in Accra, Ghana. The event is to mark the high point of the bank’s year-long 30th-anniversary celebrations, under the theme “Delivering the Vision. Building Prosperity for Africans”. (Photo by Ernest Ankomah/Getty Images)</figcaption></figure>



JOHANNESBURG, Nov 2 (Reuters) &#8211; Africa wants the U.S. Congress to renew its flagship trade programme for the continent for at least 10 years, the African Union&#8217;s top trade official said on Thursday, adding that any modifications to the initiative should only be considered later.



Speaking at the start of three days of meetings of&nbsp;African trade ministers and U.S. officials, AU Trade Commissioner Albert Muchanga also said the United States will not be granted tariff free access to a new&nbsp;African free trade area.



First launched in 2000, the African Growth and Opportunity Act (AGOA) grants exports from qualifying African countries duty free access to the United States &#8211; the world&#8217;s largest consumer market. It is due to expire in September 2025, and discussions are currently under way for its possible renewal.



&#8220;(An extension of) 10 to 20 years is very critical to the investment community. Anything lower than that would generate uncertainty,&#8221; Muchanga told the ministers, who gathered in Johannesburg to form a common position on the future of the programme.



The&nbsp;African ministers are due to meet with U.S. officials, including U.S. Trade Representative Katherine Tai, on Friday and Saturday.



U.S. lawmakers and the Biden administration have voiced support for renewing AGOA, which saw over $10 billion worth of&nbsp;African exports enter the United States duty free last year.



However, there is debate in Washington over whether the initiative needs updating.



Constance Hamilton, the Biden administration&#8217;s top trade official for Africa, said last week that Congress should consider changes that would &#8220;make the programme more impactful&#8221;.



African governments and some U.S. industry groups warn that attempting to modify AGOA as part of the renewal process could delay its reauthorisation.



&#8220;If there are any enhancements to be made, those should be done after the extension,&#8221; Muchanga said.



AGOA&#8217;s duty free provisions are currently one-sided. U.S. exports to&nbsp;African markets remain subject to national tariffs. Some U.S. lawmakers have in the past suggested the programme should be made more reciprocal.



Africa&nbsp;is in the process of setting up a new continent-wide free trade area, known as the AfCFTA, that aims to bring together 1.3 billion people in a $3.4 trillion economic bloc. Once fully implemented it will be the largest free trade area since the establishment of the World Trade Organization.



Muchanga told the ministers that many of the U.S. officials and lawmakers he had met to discuss AGOA&#8217;s renewal had assumed U.S. exports would be granted duty free entrance to the AfCFTA.



&#8220;I&#8217;ve told them very, very frankly that that is not possible,&#8221; he said. &#8220;If they try to export goods from the United States of America into&nbsp;Africa, they are going to meet national tariffs.&#8221;



The Biden administration said on Oct. 30 it intended to end the participation of Gabon, Niger, Uganda and the Central African Republic in AGOA over governance and rights failings.



(Reporting by Joe Bavier, Editing by William Maclean)

30th Afreximbank Annual Import-Export Fair In Ghana

Africa-US trade programme needs at least 10-year extension, AU says

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



Nov 2 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets&nbsp;received a boost&nbsp;on Thursday as investors were optimistic that U.S. interest rates have peaked, while Turkey&#8217;s central bank governor reiterated the regulator&#8217;s commitment to orthodox policy.



MSCI&#8217;s index tracking emerging markets stocks&nbsp;.MSCIEF&nbsp;rose 1.7%, its largest daily gain since late-July, while a basket of currencies&nbsp;.MIEM00000CUS&nbsp;strengthened 0.5% to an over one-month high against the dollar by 0923 GMT.



On Wednesday, the U.S. Federal Reserve held the policy rate steady in its current 5.25%-5.50% range.



While Chair Jerome Powell did not rule out another hike, markets judged he was not quite as hawkish as he could have been.



Powell seemed rather cautious at the meeting&nbsp;and investors are more certain now that the Fed is done with hiking at least for this year, said Minna Emilia Kuusisto, chief analyst at Danske Bank.



Emerging markets currencies have&nbsp;been under pressure&nbsp;for the past three months as worries over U.S. rates loomed amid geopolitical tensions.



However, with hopes of U.S. borrowing costs peaking, analysts expect&nbsp;the&nbsp;emerging market currencies to garner positive attention in November.



Meanwhile, Turkey&#8217;s BIST 100 index&nbsp;.XU100&nbsp;advanced 1.5%, its best day in a week, and the lira traded at 28.35 to the dollar.



The central bank vowed to continue gradual monetary tightening after raising its year-end inflation forecasts for this year and the next.



&#8220;The outlook has changed a lot for the positive in terms of economic and monetary policy&#8230; inflation is expected to remain very high for some time and rate hikes will continue unless something unexpected happens,&#8221; Kuusisto added.



The country&#8217;s lenders .XBANK also rose 1.3%. On Thursday, the regulator hiked required reserves for FX-protected lira deposits by 5 percentage points.



In central and eastern Europe, Czech&#8217;s crown&nbsp;EURCZK=R&nbsp;was little changed ahead of a monetary policy decision due at 1330 GMT.



Most economists polled by Reuters expect the regulator to face a close vote on whether to start cutting interest rates from more than two-decade highs this week or in December.



Poland&#8217;s zloty PLN= strengthened 0.4% after rate-setter Ludwik Kotecki said the country&#8217;s central bank should leave interest rates unchanged in November, due to significant uncertainty regarding future inflation and the shape of public finances.



Elsewhere, the International Monetary Fund (IMF) reached a preliminary agreement with Somalia that will allow for the release of $100 million in funding under a new 36-month credit programme.



In North&nbsp;Africa, Egypt is also expected to release its interest rate decision later in the day.



(Reporting by Johann M Cherian in Bengaluru; Editing by Sohini Goswami)

istockphoto-1076949610-612×612-1

Stocks, FX up as Fed holds rates; Turkey reiterates inflation fight

African tech startups have collectively raised $1.4 billion in the first nine months of 2023, with $492,418,000 raised in Q3 alone.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="460" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-820x460.webp" alt="" class="wp-image-428692" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-820x460.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-300x168.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-160x90.webp 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1-768x430.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/0_1.webp 1456w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A representation of startups in Africa. Image: Midjourney </figcaption></figure>



Despite these impressive figures, that total is down 48% on the corresponding period in 2022, according to Disrupt Africa’s annual African Tech Startups Funding Report.



The company says 2023 is set to be regressive, but in line with global trends in investments, it is regarded as the “reset” after tremendous growth.



A total of 186 African startups secured $1.4 billion in 2023 to date, when compared to the 633 that raised a combined $3,333,071,000 in 2022.



Tom Jackson, co-founder of Disrupt Africa, tells CNBC Africa that the pandemic didn’t impact the continent funding-wise, but only in terms of uptake.



“All sorts of sectors – fintech, e-health – took a boost in users, and the tech space got a kickstart; funding was increasing anyway, Covid had no impact,” says Jackson.



Cities like Lagos, Nairobi and Cape Town attracts the most funding in Africa. Jackson says they are “startup capitals” because they are essentially the capitals of the three main markets, with Cairo and Johannesburg ranking close.



“The bigger the city, the better the infrastructure, the more universities, the better the standard of living, the more likely it is to be a ‘startup capital’, hence London, New York, San Francisco, Paris, etc.,” says Jackson.



Fintech receives the lion’s share of funding, with 205 startups representing the 633 African total for 2022. Disrupt Africa says it remains Africa’s most powerful force, driven primarily by Nigeria, which accounted for almost 40% of funds received.



Ultimately, fintech is at the route of everything, adds Jackson. “Payments, and the ability to make them, is key to all sorts of things. So once those rails are in place, commerce, health, agri-trading, whatever it is – can work.”



<h2 class="wp-block-heading" id="h-nigeria-a-fertile-ground-for-innovation">Nigeria: a fertile ground for innovation</h2>



Akinbode Roberts, CEO of DataLeum, based in Nigeria, tells CNBC Africa that Lagos has always been a fertile ground for innovation, driven by the need to address local financial challenges, with Nigeria’s youthful population playing a critical role in this trend.



“The rapid adoption of smartphones has enabled the proliferation of mobile apps and USSD-based financial services – these technologies make it easier for people to access and use financial services,” says Roberts.



Nigeria has a demographic advantage due to its population of over 200 million people, which offers tremendous opportunities for startups thanks to a vast domestic market, he says.



The country has fostered a supportive ecosystem, says Roberts. “We have co-working spaces, incubators, accelerators, and various networking events that offer invaluable support to emerging businesses.”



While Nigeria is thriving, Roberts says their biggest challenge is access to funding. “Securing capital, especially in the early stages, can be a hurdle for many startups, and the shortage of skilled tech talent is also a concern.”



There is a need for more qualified professionals in areas like software development and data science, and the competition for these individuals is fierce, says Roberts.



Dataleum, an award-winning edu-tech startup is an AI-driven job matching platform aims to fill a gap in the market. “The demand for data-driven and enabled professionals has been steadily increasing across the continent as organizations recognize the value of data-driven decision-making,” says Roberts.



“There&#8217;s certainly a need for more skilled data scientists, data engineers, analysts and more data professionals to meet this growing demand.”



The company’s operation is based in Nigeria, but recently launched an office in the United Kingdom. “Our goal is to leverage our expertise and solutions to contribute to the growth of data analytics and business intelligence in multiple African countries,” says Roberts.



<h2 class="wp-block-heading" id="h-kenya-the-silicon-savannah-of-africa">Kenya, the ‘Silicon Savannah’ of Africa</h2>



Meanwhile in Kenya, dubbed the ‘Silicon Savannah’ of Africa, and home to M-Pesa, has been a pioneer in the tech startup scene.



Jit Bhattacharya, CEO and co-founder of e-mobility startup BasiGo in Kenya, says the entrepreneurship ecosystem in Kenya is driven in large part by the fintech sector but with well-known, high-growth technology ventures in energy and climate, health, and education.



He acknowledges that Kenyan’s tech ecosystem has faced a difficult period in 2023, which saw several high-profile startups in the Kenyan ecosystem downsize, restructure, or shut down.



“While these challenges are real, Kenya remains a hub in Africa&#8217;s overall tech ecosystem and a preferred place to launch a technology venture in Africa,” says Bhattacharya.



“Tech hubs are an excellent meeting place for startups, investors, and the supporting ecosystem that helps these technology companies get off the ground,” he says.



And like Nigeria, the key challenge Kenyan tech startups face is getting access to funding. He believes the challenge for funding globally is more pronounced in Africa because funding comes from overseas investors.



BasiGo, founded in 2021, received a total of $10.9 million in funding to date, according to Crunchbase.



“What has attracted investment to BasiGo is the potential climate impact of our Electric Bus solution, says Bhattacharya. East Africa is home to some of the cleanest electricity in the world, with over 90% of Kenya&#8217;s electricity already generated from renewables.”



“As a result, replacing a single diesel bus in Kenya with an electric bus mitigates over 50 tonnes of CO2 per year, more than almost anywhere else in the world.&nbsp;Our bus market is entirely private sector, which makes it an attractive market for climate venture capital investors, adds Bhattacharya.



<h2 class="wp-block-heading" id="h-from-south-africa-to-the-world">From South Africa to the world</h2>



South Africa’s startup funding grew from $50 million in 2015 to near $350 million in 2021, according to Disrupt Africa. Though Cape Town is referred to as the “startup capital” of South Africa, Johannesburg is a close second.



The company says while other countries like Kenya, Nigeria and Egypt often surpass it for funded ventures or total funding, South African startups are by far the most successful when it comes to successful exits.



Knife Capital, a venture capital investment firm in Cape Town that focuses on accelerating international expansion of African innovation-driven businesses, tells CNBC Africa it does this by leveraging knowledge, networks and funding.



Keet van Zyl, co-founder and partner at Knife Capital, says early stage ventures looks for three main things: an amazing product or service; a large addressable market for it; and an entrepreneurial team&nbsp;that can execute an ambitious business plan.



“The magic&nbsp;happens when these three things lead to visible traction and a path to positive unit economics,” says van Zyl.



“Knife Capital assists in accelerating the international expansion of African&nbsp;entrepreneurial businesses that&nbsp;achieved a product/market fit in a beachhead&nbsp;market,” he says.



“The common appeal for startups that successfully expand out of Africa is access to new markets that diversifies the client base and offers hard currency revenue off a lower cost base,” explains van Zyl.



“International clients embrace the advanced technology and unique approach to overcoming user challenges that some African startups offer.”



“Africa is a great investment frontier based on the fundamentals of a rapidly expanding population, a rising middle class, a young urban&nbsp;citizenry entering the workforce and increased digital penetration that provides access to new technologies,” says van Zyl.



“Investment is all about calculated risk and probability of returns, and Africa offers good value for the savvy investor. With more investors getting exposed to amazing start-ups across the continent, more capital will flow.”

The Rise Of African Tech Hubs: How They Are Becoming The Silicon Valleys Of The Continent

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="514" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327279-16988668582023-11-01t190353z_811734167_rc2i44a8w2ze_rtrmadp_0_usa-economy-fed-820x514.jpeg" alt="" class="wp-image-428687" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327279-16988668582023-11-01t190353z_811734167_rc2i44a8w2ze_rtrmadp_0_usa-economy-fed-820x514.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327279-16988668582023-11-01t190353z_811734167_rc2i44a8w2ze_rtrmadp_0_usa-economy-fed-300x188.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327279-16988668582023-11-01t190353z_811734167_rc2i44a8w2ze_rtrmadp_0_usa-economy-fed-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327279-16988668582023-11-01t190353z_811734167_rc2i44a8w2ze_rtrmadp_0_usa-economy-fed-768x482.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327279-16988668582023-11-01t190353z_811734167_rc2i44a8w2ze_rtrmadp_0_usa-economy-fed-1536x964.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107327279-16988668582023-11-01t190353z_811734167_rc2i44a8w2ze_rtrmadp_0_usa-economy-fed-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



The Federal Reserve on Wednesday again held benchmark interest rates steady amid a backdrop of a growing economy and labor market and inflation that is still well above the central bank’s target.



In a widely expected move, the Fed’s rate-setting group unanimously agreed to hold the key federal funds rate in a target range between 5.25%-5.5%, where it has been since July. This was the second consecutive meeting that the Federal Open Market Committee chose to hold, following a string of 11 rate hikes, including four in 2023.



The decision included an upgrade to the committee’s general assessment of the economy. Stocks rallied on the news, with the Dow Jones Industrial Average gaining 212 points on the session.



“The process of getting inflation sustainably down to 2% has a long way to go,” Fed Chair Jerome Powell said in remarks at a news conference. He stressed that the central bank hasn’t made any decisions yet for its December meeting, saying that “The committee will always do what it thinks is appropriate at the time.”



Powell added that the FOMC is not considering or even discussing rate reductions at this time.



He also said the risks around the Fed doing too much or too little to fight inflation have become more balanced.



“This signals that while there is a potential risk for the Fed to do more, the bar has become higher for rate hikes, and we are clearly seeing this play out with two consecutive meetings of no policy action from the Fed,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.



<h2 class="wp-block-heading" id="h-economy-has-moderated"><a></a>Economy has ‘moderated’</h2>



The post-meeting statement had indicated that “economic activity expanded at a strong pace in the third quarter,” compared with the September statement that said the economy had expanded at a “solid pace.” The statement also noted that employment gains “have moderated since earlier in the year but remain strong.”



Gross domestic product expanded at a 4.9% annualized rate in the third quarter, stronger than even elevated expectations. Nonfarm payrolls growth totaled 336,000 in September, well ahead of the Wall Street outlook.



There were few other changes to the statement, other than a notation that both financial and credit conditions had tightened. The addition of “financial” to the phrase followed a surge in Treasury yields that has caused concern on Wall Street. The statement continued to note that the committee is still “determining the extent of additional policy firming” that it may need to achieve its goals. “The Committee will continue to assess additional information and its implications for monetary policy,” the statement said.



Wednesday’s decision to stay put comes with inflation slowing from its rapid pace of 2022 and a labor market that has been surprisingly resilient despite all the interest rate hikes. The increases have been targeted at easing economic growth and bringing a supply and demand mismatch in the labor market back into balance. There were 1.5 available jobs for every available worker in September, according to Labor Department data released earlier Wednesday.



Core inflation is currently running at 3.7% on an annual basis, according to the latest personal consumption expenditures price index reading, which the Fed favors as an indicator for prices.



While that has decreased steadily this year, it is well above the Fed’s 2% annual target.



The post-meeting statement indicated that the Fed sees the economy holding strong despite the rate hikes, a position in itself that could prompt policymakers into a prolonged tightening stance.



In recent days, the “higher-for-longer” mantra has become a central theme for where the Fed is headed. While multiple officials have said they think rates can stay where they are as the Fed assesses the impact of the previous increases, virtually none have said they are considering cuts anytime soon. Market pricing indicates the first cut could come around June 2024, according to CME Group data.



<h2 class="wp-block-heading"><a></a>Surging bond yields</h2>



The restrictive stance has been a factor in the surging bond yields. Treasury yields have risen to levels not seen since 2007, the earliest days of the financial crisis, as markets parse out what is ahead. Yields and prices move in opposite direction, so a rise in the former reflects waning investor appetite for Treasurys, generally considered the largest and most liquid market in the world.



The surge in yields is seen as a byproduct of multiple factors, including stronger-than-expected economic growth, stubbornly high inflation, a hawkish Fed and an elevated “term premium” for bond investors demanding higher yields in return for the risk of holding longer-duration fixed income.



There also are worries over Treasury issuance as the government looks to finance its massive debt load. The department this week said it will be auctioning off $776 billion of debt in the fourth quarter, starting with $112 billion across three auctions next week.



During a recent appearance in New York, Powell said he thinks the economy may have to slow further to bring down inflation. Most forecasters expect economic growth to tail off ahead.



A Treasury Department forecast released earlier this week indicated that the pace of growth likely will tumble to 0.7% in the fourth quarter and just 1% for the full year in 2024. Projections the Fed released in September put expected GDP growth at 1.5% in 2024.



In the wake of the Fed’s comments, the Atlanta Fed’s GDPNow growth tracker slashed expectations for fourth-quarter GDP almost in half to 1.2% from 2.3%. The gauge takes in data on a real-time basis and adjusts its estimates with the latest information.



Whitney Watson, co-CIO of fixed income and liquidity solutions at Goldman Sachs Asset Management, said it’s likely the Fed will keep its policy unchanged into next year.



“There are risks in both directions,” Watson said. “The rise in inflation expectations, owing to higher gas prices, combined with strong economic activity, preserves the prospect of another rate hike. Conversely, a more pronounced economic slowdown caused by the growing impact of higher interest rates might accelerate the timeline for transitioning to rate cuts.”

107327279-16988668582023-11-01t190353z_811734167_rc2i44a8w2ze_rtrmadp_0_usa-economy-fed

Fed holds rates steady, upgrades assessment of economic growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="506" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-820x506.jpg" alt="" class="wp-image-428670" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-820x506.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-768x474.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-1536x947.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/73K36OHT2BKOPN4BG65FNKSHEI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Locals walk past electricity pylons during frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Soweto, South Africa, July 3, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s hopes for a raft of new power projects to help it out of a crippling energy crisis are fading, with investment still elusive as an already extended funding deadline looms, government officials, companies and bankers have told Reuters.



Africa&#8217;s most developed economy is facing daily power cuts due to regular breakdowns at state power utility Eskom&#8217;s ageing coal-fired plants, and needs an extra 4-6 gigawatts (GW) of generating capacity, officials say, to end rolling blackouts.



But of the 11 power projects selected to deliver nearly 2 GW of new capacity by mid 2023 during a fast-tracked 2020 emergency auction, eight, representing more than 90% of the anticipated capacity, have yet to even secure investment.



Following the COVID-19 pandemic, the projects, a mix of solar, wind, battery storage and natural gas, have faced rising interest rates and higher costs for everything from solar panels and wind turbines to labour.



That has made it tougher for them to secure the investment they need from banks.



&#8220;When they were bid, I do think (the projects) were feasible,&#8221; said Sherrill Byrne, a banker at Standard Bank who has worked with some of the companies. &#8220;But the market moved against them, and now they are struggling.&#8221;



Only the three smallest, all from Norway&#8217;s Scatec&nbsp;SCATC.OL, have made significant progress, with one, of 50 megawatt capacity, coming online last month.



&#8220;The other two are likely to start before the end of the year,&#8221; said Zaid Moola, head of investment banking at Standard Bank&nbsp;SBKJ.J, the lead financier to Scatec&#8217;s projects.



The other successful bidders who sources say have yet to secure funding &#8211; South Africa&#8217;s Mulilo, France&#8217;s EDF and Engie&nbsp;ENGIE.PA, Turkish floating LNG firm Karpowership and Saudi Arabia&#8217;s Acwa Power&nbsp;2082.SE&nbsp;&#8211; have already had several extensions on an original mid-2022 deadline to reach financial close.



A possibly final year-end deadline for funding is now looming, the sources said, raising doubts over whether some of the projects will be built.



<h2 class="wp-block-heading" id="h-underdeliver">UNDERDELIVER</h2>



Delays in emergency power procurement will continue to hurt state utility Eskom&#8217;s financial performance this year, its acting CEO Calib Cassim said on Tuesday.



Other planned power projects in the country also look set to underdeliver. A source told Reuters in July the government now expects only half the anticipated 2.6 GW in capacity from a 2021 bidding round for wind and solar projects to come online.



A top official in President Cyril Ramaphosa&#8217;s office, who asked not to be named as he was not authorised to speak publicly on the matter, said it is unlikely further extensions to the 2020 projects beyond the coming December fundraising deadline will be permitted.



Beyond then, companies may be forced to relinquish their allotted grid capacity, he said, adding that decisions on deadline extensions are ultimately up to the Department of Mineral Resources and Energy. The DMRE told Reuters it weighs requests on a case-by-case basis.



Neither Acwa Power, which is building one 150 MW plant, nor Mulilo, which is meant to build two projects, responded to emailed questions.



A Mulilo executive, however, who asked not to be named as he was not authorised to speak to the press, said it had scrapped one of its projects after failing to secure approval for its location, while the other is still seeking to raise funds.



Mohamed Hoosen, Engie&#8217;s managing director for renewables in Asia, Middle East and Africa, said it plans to reach financial close on its 128 MW Oya Energy project by early December and launch it by October 2025.



EDF Renewables CEO Tristan De Drouas said his group signed power purchase agreements with Eskom in August and is arranging funds for its 75 MW Umoyilanga plant.



Karpowership, which is planning three plants with combined capacity of 1.22 GW, did not respond to questions on funding, but said South Africa&#8217;s environmental ministry has given it port access for one of its projects.



(Reporting by Promit Mukherjee; Editing by Joe Bavier and Jan Harvey)

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