<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-820x547.jpg" alt="" class="wp-image-428431" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/RJUL736CIBMWRICRDSGJHBJ5IE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: High Representative of the European Union for Foreign Affairs and Security Policy Josep Borrell speaks during a news conference in Beijing, China October 14, 2023. REUTERS/Xiaoyu Yin/File Photo</figcaption></figure>



BRUSSELS, Oct 23 (Reuters)&nbsp;&#8211;&nbsp;European Union countries on Monday adopted a framework to impose sanctions on members of a junta that seized power in Niger in July.



The new framework will allow the EU to sanction individuals and entities responsible for actions that threaten the peace, stability and security of Niger, undermine the constitutional order, or constitute serious violations to human rights or international humanitarian law, the EU Council said.



With this, the EU aims to mirror and strengthen any measures taken by the West&nbsp;African regional body ECOWAS.



&#8220;The EU has from the very beginning condemned the coup d&#8217;état in Niger in the strongest terms,&#8221; EU foreign policy chief Josep Borrell said.



&#8220;With today&#8217;s decision, the EU strengthens its support to ECOWAS&#8217; efforts and sends a clear message: military coups bear costs.&#8221;



With the restrictive measures, the EU could freeze assets of targeted entities and individuals and hand them travel bans.



This is a developing story&#8230;



(Reporting by Bart Meijer; Editing by Bernadette Baum)

High Representative of the European Union for Foreign Affairs and Security Policy Josep Borrell speaks during a news conference in Beijing

EU agrees on framework for Niger sanctions

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318937-1697610036289-gettyimages-1221975332-dsc_3504-820x547.jpeg" alt="" class="wp-image-428425" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318937-1697610036289-gettyimages-1221975332-dsc_3504-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318937-1697610036289-gettyimages-1221975332-dsc_3504-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318937-1697610036289-gettyimages-1221975332-dsc_3504-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318937-1697610036289-gettyimages-1221975332-dsc_3504-768x513.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318937-1697610036289-gettyimages-1221975332-dsc_3504-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318937-1697610036289-gettyimages-1221975332-dsc_3504-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Athima Tongloom | Moment | Getty Images</figcaption></figure>



For most people, their goal is to work hard, save money and retire early. But a “soft saving” trend is emerging among younger workers, challenging the traditional way of thinking.



Soft saving refers to putting less money into the future, and using more of it for the present.



Generation Z — a generation that puts experiences before money — is leading the so-called soft saving wave, according to the Prosperity Index Study by Intuit. “Soft saving is the soft life’s answer to finances,” said the report.



A “soft life” is a lifestyle that embraces comfort and low stress, prioritizing personal growth and mental wellness.



The report found the approach to investing and personal finance by Gen Z’s — those born after 1997 — to be “softer” than previous decades.



What does that mean? It means younger investors tend to put their money in causes that reflect their personal views.



They also seek emotional connection with brands and professionals they choose to engage with, Liz Koehler, head of advisor engagement for BlackRock’s U.S. Wealth Advisory business told CNBC.



<h2 class="wp-block-heading" id="h-are-people-saving-less"><a></a>Are people saving less?</h2>



Younger workers have a desire to break free from restrictive financial constraints.



Three in four Gen Z would rather have a better quality of life than extra money in their banks, the Intuit report shows.



In fact, personal saving rates among Americans today seem to mirror the soft savings trend.&nbsp;



According to the U.S. Bureau of Economic Analysis, Americans are saving less in 2023. The personal saving rate — the portion of disposable income one sets aside for savings — was significantly lower at 3.9% in August, compared to the 8.51% average in the past decade, according to data from Trading Economics which goes as far back as 1959.



One of the reasons for a drop in personal savings is the rebound from the Covid-19 pandemic, said Ryan Viktorin, vice president financial consultant at Fidelity Investments, a financial services corporation.



As&nbsp;Americans spent significantly lower during the pandemic in the last two to three years, people more are likely to spend a lot more now to make up for lost time, she told CNBC.



Additionally, inflation makes it harder for people to cover their expenses or save, Koehler said.



The decrease in personal saving rates also reflects a change in financial goals among workers today.&nbsp;



As younger people enter the workforce, they bring in new financial priorities and are more likely to embrace a “balance between the traditional ‘hustle’ to save every single penny and using some of their extra income to enjoy life now,” Viktorin said.



<h2 class="wp-block-heading"><a></a>Retiring and savings</h2>



Retirement is the grand finale for most workers. However, more are concerned they may not be able to retire at all.&nbsp;



A report by Blackrock shows that in 2023, only 53% of workers believe they are on track to retire with the lifestyle they want. A lack of retirement income, worries over market volatility and high inflation were some of the reasons cited for a lack of confidence about retirement among workers.



Younger workers also share the same sentiments, where two in three Gen Z are not sure if they will ever have enough money to retire.&nbsp;



However, this fear may not be that much of a concern for the younger generation, as most are actually looking to retire early — or to retire at all, the report by Intuit showed.



Additionally, the Transamerican Center for Retirement Studies found that almost half the working population either expects to work past the age of 65, or do not have plans to retire.



Traditionally, retiring entails leaving the workforce permanently. However, experts found that the very definition of retirement is also changing between generations.



About 41% of Gen Z and 44% of millennials — those who are currently between&nbsp;27 and 42 years old — are significantly more likely to want to do some form of paid work during&nbsp;retirement.



That’s higher than the 31% of Gen X (those born between 1965 to 1980) and 21% of Baby Boomers (born between 1946 to 1964) surveyed, the report by the Transamerican Center for Retirement Studies showed.&nbsp;



This increasing preference for a lifelong income, could perhaps make the act of “retiring” obsolete.&nbsp;



Although younger workers don’t intend to stop working, there is still an effort to beef up their retirement savings.



Fidelity’s second quarter retirement analysis found that millennials and Gen Z’s are still major beneficiaries of the 401(k) saving plan, a retirement savings plan offered by American employers that has tax advantages for the saver.



The report revealed that in the second quarter of last year, the average 401(k) balances were up by double digits for Gen Z and millennials — Gen Z saw a 66% increase and millennials had 24.5% increase.



<h2 class="wp-block-heading"><a></a>What are people spending more on?</h2>



Still, one question remains: where are people directing their money as they spend more and save less?



The study by Intuit found that millennials and Gen Z are more willing to spend on hobbies and make non-essential purchases compared to Gen X and boomers.



About 47% of millennials and 40% of Gen Z expressed a need to have money to pursue their passion or hobby, compared to only 32% of Gen X and 20% of boomers. 



Experts highlighted travel and entertainment as some of the non-essential experiences the younger generation is prioritizing.



Andy Reed, head of investor behavior at investment management firm&nbsp;Vanguard, said Gen Z’s spending on entertainment increased to 4.4% in 2022, compared to 3.3% in 2019.



In addition, Americans are “re-focused” on post-pandemic travel, a possible reason why there is a decrease in personal saving rates, said Fidelity’s Viktorin.



Although the younger generation is saving less, it doesn’t mean they are living paycheck to paycheck.&nbsp;



In fact, “Gen Z appear to be living within their means, and their increased spending seems to reflect rising costs of essentials more than a rising taste for luxury,” Reed noted.&nbsp;



“Spending money on things that truly make you happy is great … [but] people should satisfy their near-term needs and stay on-track with their long-term goals before spending freely,” he added.

107318937-1697610036289-gettyimages-1221975332-dsc_3504

Say goodbye to retirement? A ‘soft saving’ trend is emerging among young people

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="419" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-820x419.jpg" alt="" class="wp-image-428397" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-820x419.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-300x153.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-160x82.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER-768x392.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER.jpg 1370w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Credit: REUTERS/STRINGER</figcaption></figure>



CAPE TOWN, Oct 20 (Reuters)&nbsp;&#8211;&nbsp;Africa is at the forefront of a global wave of new floating gas facilities as countries on the continent seek to meet surging demand in Europe as quickly and cheaply as possible, analysts and energy companies told Reuters.



Eni&nbsp;ENI.MI, BP&nbsp;BP.L&nbsp;and smaller independent players such as Nigeria&#8217;s UTM&nbsp;Offshore&nbsp;are driving the surge with projects on Africa&#8217;s east and west coasts.



Floating Liquefied Natural Gas (FLNG) vessels shipped Mozambique&#8217;s first-ever gas exports last November, and the Republic of Congo is preparing for its first LNG exports in December.



Africa currently exports 40 million tons per annum (mmtpa) of gas, and Westwood Global Energy group expects the continent to add 10.2 mmpta in new FLNG capacity by 2027, with projects in Mozambique, Nigeria, Senegal, Mauritania and Republic of the Congo.



&#8220;We believe FLNG will be a nice tool of developing gas in a quicker and more efficient way,&#8221; Luca Vignati, Eni&#8217;s upstream director told Reuters.



Over the next five years Westwood forecasts $13 billion in spending on FLNG, with Africa accounting for just under 60% of the 18.3 mmpta of added FLNG capacity by 2027. It expects a further 36.5 mmpta to start up after 2027 valued at $22 billion.



<h2 class="wp-block-heading" id="h-taking-to-the-sea">TAKING TO THE SEA</h2>



FLNG facilities are ships that can pump, liquefy, store and export gas directly from offshore fields. They bypass extensive – and costly – infrastructure needed to process gas onshore, and keep a distance from communities who often protest against having projects nearby.



Operators, energy companies and bankers say improvements in vessel technology and turnaround times have hastened demand since Shell&#8217;s&nbsp;SHEL.L&nbsp;pioneering but delayed FLNG vessel Prelude, anchored off Australia.



&#8220;A typical FLNG can be done for a fraction of the cost of a traditional (LNG production) train,&#8221; Fola Fagbule, senior vice president with the African Finance Corporation, which has helped fund FLNG projects in Africa.



Illustrating potential savings, one analyst said capex costs for Cameroon&#8217;s Golar FLNG facility, a repurposed vessel, could be as low as $550 a ton, compared to $900-$1,100 for a new onshore terminal on the U.S. Gulf Coast.



Africa has struggled to pump its gas despite record prices following Russia&#8217;s invasion of Ukraine as the energy transition focus hit fossil fuel financing.



The energy transition has also made investors cautious about multi-billion-dollar projects with 20-30-year investment cycles. FLNG has a quicker turnaround, with Eni targeting new-build ships to produce just four years after investment.



&#8220;You don&#8217;t need to have a 25-year plateau for huge reserves. You may be there for five or 10 years, and then you move to the next field, and this is the flexibility we want,&#8221; Eni&#8217;s Vignati told Reuters.



<h2 class="wp-block-heading" id="h-at-the-centre">AT THE CENTRE</h2>



Africa currently has more than 50% of the world&#8217;s FLNG capacity. The offshore ships also bypass safety issues, such as those that delayed TotalEnergies&#8217; $20 billion Afungi terminal in northern Mozambique &#8211; adding to their appeal.



&#8220;Africa is the centre right now &#8230; and its going to grow,&#8221; Gavin Thompson, vice chair research at Wood Mackenzie told Reuters on the sidelines of an African energy conference in Cape Town.



&#8220;Interestingly it&#8217;s not one single country or one single region, we are seeing around both East and West Africa,&#8221; he said, adding, &#8220;they are competing against each other&#8221;.



The lower costs are also crucial. Wood Mackenzie data showed that the total amount of upstream capital expenditure across Africa is falling.



Eni is deploying two vessels, one repurposed and another larger new vessel, to the Republic of the Congo for a total expected output of 3 mmtpa by 2025.



It also plans to make a final investment decision with its JV partners regarding a second 3.4 mmtpa FLNG project in Mozambique&#8217;s Rovuma Basin by June next year.



Bruno Itoua, hydrocarbons minister for Congo Republic, told the Cape Town energy conference that its first exports would come by December 2023.



&#8220;It&#8217;s not only an investment opportunity but also an extraordinary chance to build a legacy,&#8221; he said.



African gas exports can be controversial, as around 600 million people, half of those on the continent, lack access to electricity.



But governments, some of which are in debt crises, are under pressure to rake in royalties and taxes while prices are hot.



Fagbule of the AFC said it was not unusual for governments to earmark some gas from FLNG facilities for domestic consumption, but that full-scale projects targeting domestic markets are tough to finance due to a limited amount of customers able to pay.



&#8220;They see the amount of demand for seaborne natural gas that can be delivered across the globe, and they are trying to get that as soon as possible,&#8221; he said.



(Reporting by Wendell Roelf and Libby George; editing by Jason Neely)

2023-10-20T095534Z_1_SP6_RTRLXPP_2_LYNXPACKAGER

Amid gas scramble, Africa leads a boom in nimble export facilities

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-820x462.jpeg" alt="" class="wp-image-428388" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rafael Henrique | Lightrocket | Getty Images</figcaption></figure>



X, the social media service formerly known as Twitter, will launch two new tiers of subscriptions for users, its owner Elon Musk said on Friday.



One tier will be “lower cost with all features, but no reduction in ads,” while the other is “more expensive, but has no ads,” Musk said.



This week, X announced it will begin a test that charges users $1 per year in New Zealand and the Philippines in order to “post &amp; interact with other posts.” X said it is part of a program designed to fight spam and bot activity. Those who opt out will only be able to read posts.



It’s unclear if the $1 annual subscription is one of the two new subscription tiers that Musk is referencing.



The social media company already has a $8 per month subscription service called X Premium. Users who signed up to this can get the blue checkmark on their account as well as other features, such as the ability to edit a post.



Since taking over Twitter in October 2022 and rebranding to X, Musk has made sweeping changes, including making cuts to trust and safety teams and removing the blue checkmark from non-paying accounts. The blue checkmark helped users identify authentic accounts belonging to public figures. Musk has also reinstated previously banned accounts on the platform.



Those changes have scared off advertisers. In July, Musk said X’s cash flow remains negative because of a nearly 50% drop in advertising revenue coupled with “heavy debt.”



New subscriptions could be a bid to improve the company’s finances and open new revenue streams.



X is facing challenges from less mature players such as Meta’s Threads and Bluesky.

107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631

X, formerly Twitter, will launch two new subscription tiers, Elon Musk 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/2023/10/GettyImages-1251769072-820x547.jpg" alt="" class="wp-image-428375" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1251769072-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1251769072-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1251769072-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1251769072-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1251769072-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1251769072-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo via Getty Images</figcaption></figure>



Africa, with its rich tapestry of cultures, traditions, and histories, has always been a cradle of inspiration for the world. Over the past few decades, the continent has started to garner more international attention not just for its traditional styles but for its modern, avant-garde fashion trends. In particular, Johannesburg, Lagos, and Dakar, have emerged as the epicenters of this fashion renaissance, paving the way for African designers to shine on the global stage.



<h2 class="wp-block-heading" id="h-1-johannesburg-south-africa-a-fusion-of-modernity-and-tradition">1. Johannesburg, South Africa: A Fusion of Modernity and Tradition</h2>



In the heart of South Africa, Johannesburg pulses with the energetic rhythm of urbanization, economic growth, and cultural exchange. Here, the fashion scene is characterized by a harmonious blend of African heritage with contemporary designs.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1252795879-820x547.jpg" alt="" class="wp-image-428374" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1252795879-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1252795879-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1252795879-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1252795879-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1252795879.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">JOHANNESBURG, SOUTH AFRICA &#8211; MAY 06: A mannequin makes preparation ahead of Soweto Fashion Week in Soweto district of Johannesburg, South Africa in May 06, 2023. (Photo by Ihsaan Haffejee/Anadolu Agency via Getty Images)</figcaption></figure>



High-end shopping districts like Sandton City and Maboneng Precinct showcase this mix, with boutique stores offering everything from bead-embellished evening gowns to chic, urban streetwear.



Prominent designers like David Tlale and Rich Mnisi have represented Johannesburg in major international fashion weeks. Their designs often narrate a story of the South African experience, combining modern aesthetics with elements inspired by traditional African motifs.



<h2 class="wp-block-heading" id="h-2-lagos-nigeria-the-pulse-of-pan-african-fashion">2. Lagos, Nigeria: The Pulse of Pan-African Fashion</h2>



Lagos, often dubbed the &#8216;New York of Africa&#8217;, is the beating heart of the continent&#8217;s fashion scene. The city&#8217;s influence transcends Nigeria, making ripples throughout Africa and across oceans.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1350638169-820x547.jpg" alt="" class="wp-image-428376" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1350638169-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1350638169-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1350638169-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1350638169-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1350638169.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">LAGOS, NIGERIA &#8211; OCTOBER 30: A model walks the runway for Cynthia Abila, during Lagos Fashion Week 2021 on October 30, 2021 in Lagos, Nigeria. (Photo by Emmanuel Obianke/Getty Images)</figcaption></figure>



Lagos hosts the internationally renowned Lagos Fashion Week, an annual event that draws designers, media, and fashion enthusiasts from around the globe. The city&#8217;s designers, such as Lisa Folawiyo and Mai Atafo, have successfully integrated the vibrant textiles and patterns indigenous to West Africa with global fashion trends, creating universally appealing designs.



Street fashion in Lagos is equally compelling. Balogun Market, for instance, offers a mesmerizing array of fabrics, from Ankara to Adire, which local tailors transform into bespoke outfits.



<h2 class="wp-block-heading" id="h-3-dakar-senegal-where-art-meets-fashion">3. Dakar, Senegal: Where Art Meets Fashion</h2>



Dakar is not just Senegal&#8217;s capital; it&#8217;s the artistic soul of West Africa. Fashion in Dakar is deeply intertwined with the city&#8217;s art, music, and dance scenes.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1245350409-820x547.jpg" alt="" class="wp-image-428377" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1245350409-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1245350409-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1245350409-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1245350409-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1245350409.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DAKAR, SENEGAL &#8211; DECEMBER 04: Models walk the runway during the 20th Dakar Fashion Week in Goree Island, Dakar, Senegal on December 04, 2022. (Photo by Stefan Kleinowitz/Anadolu Agency via Getty Images)</figcaption></figure>



The Dakar Fashion Week, founded by designer Adama Ndiaye, is a testament to the city&#8217;s position in the fashion world. The event showcases the innovative designs of Senegalese and pan-African designers who often fuse traditional Wolof styles with contemporary fashion elements.



Bright boubous, tailored pantsuits, and intricate embroidery are just a few of the elements that Senegalese designers incorporate into their globally inspired collections.



<h2 class="wp-block-heading" id="h-4-nairobi-kenya-east-africa-s-fashion-gem">4. Nairobi, Kenya: East Africa&#8217;s Fashion Gem</h2>



Nairobi, Kenya&#8217;s bustling capital, is an emerging fashion hub that represents the spirited amalgamation of traditional Maasai beadwork with contemporary styles. With its burgeoning middle class and a young, tech-savvy population, Nairobi is increasingly becoming the nexus of East African fashion.



The Nairobi Fashion Week is a significant event on the city&#8217;s calendar, spotlighting designers who adeptly blend Kenyan heritage with global trends. Designers like Anyango Mpinga, known for her eco-friendly and ethically-produced designs, and Ugandan born, Sylvia Owori, one of East Africa’s most enduring designers, are putting Nairobi on the global fashion map.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1726724935-820x547.jpg" alt="" class="wp-image-428378" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1726724935-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1726724935-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1726724935-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1726724935-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1726724935.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; OCTOBER 14: A model dressed in a outfitwalks on the catlwak during the Kibera Fashion Week. (Photo by Donwilson Odhiambo/Getty Images)</figcaption></figure>



Places like the Maasai Market offer visitors a sensory overload with an array of vibrantly colored fabrics, jewelry, and handcrafted items that influence and shape local fashion narratives.



<h2 class="wp-block-heading" id="h-5-marrakesh-morocco-a-tapestry-of-timeless-elegance">5. Marrakesh, Morocco: A Tapestry of Timeless Elegance</h2>



Nestled at the foothills of the Atlas Mountains, Marrakesh has long been a destination for luxury and mystique. The city, with its rich history as a trading hub and a melting pot of Berber, Arabian, and European cultures, naturally infuses this eclectic heritage into its fashion.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1145935997-820x547.jpg" alt="" class="wp-image-428380" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1145935997-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1145935997-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1145935997-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1145935997-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GettyImages-1145935997.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">MARRAKECH, MOROCCO &#8211; APRIL 29: A model walks the runway during the Christian Dior Couture S/S20 Cruise Collection on April 29, 2019 in Marrakech, Morocco. (Photo by Pascal Le Segretain/Getty Images for Dior)</figcaption></figure>



Marrakesh’s medinas are alive with tailors and artisans crafting everything from flowing kaftans to intricately designed leather goods. Designers like Yassine Morabite, who integrates Moroccan traditional elements with modern art, encapsulate the essence of Marrakesh&#8217;s style.



The Caftan du Maroc show, an annual event in Morocco, often held in Marrakesh, showcases the evolution of the traditional Moroccan Caftan, highlighting its transition and relevance in modern haute couture.



<h2 class="wp-block-heading" id="h-a-symphony-of-styles">A Symphony of Styles</h2>



While Johannesburg, Lagos, Dakar, Nairobi, and Marrakesh each bring their distinct flavors to the table, they collectively depict a continent that is not only proud of its deep-rooted traditions but is also unafraid to reinvent and redefine itself. These cities, with their fashion weeks, designers, street styles, and vibrant markets, are not just shaping African fashion but are also leaving indelible imprints on the global fashion narrative. As Africa continues its ascent in the global fashion arena, these capitals remain testament to its boundless creativity and resilience.

Friends  in colorful clothes on roof terrace in the city, Maputo, Mozambique

From Runways to Rooftops: Discover Africa’s Top 5 Trendsetting Fashion Capitals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-820x461.jpeg" alt="" class="wp-image-428381" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Federal Reserve Chairman Jerome Powell acknowledged recent signs of cooling inflation, but said Thursday that the central bank would be “resolute” in its commitment to its 2% mandate.



In a widely anticipated speech delivered to the Economic Club of New York, Powell evaded committing to a specific policy path but gave no indication that he was leaning toward a push higher for interest rates.



As Powell spoke, futures market traders erased any possibility of a rate hike in November and decreased the chances of a move even in December. He acknowledged the progress made toward bringing inflation back down to a manageable level but stressed vigilance in pursuing the central bank’s goals.



“Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said in prepared remarks. “We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters.”



“While the path is likely to be bumpy and take some time, my colleagues and I are united in our commitment to bringing inflation down sustainably to 2 percent,” Powell added.



The speech comes with questions over where the Fed heads from here after a succession of interest rate hikes aimed at cooling inflation. Stocks turned higher after Powell spoke and the 10-year Treasury yield backed off its highs for the session.



Powell said he doesn’t think rates are too high now.



“Does it feel like policy is too tight right now? I would have to say no,” he said. Still, he noted that “higher interest rates are difficult for everybody.”



Powell noted the progress made toward the Fed’s twin goals.



In recent days, data has shown that while inflation remains well above the target rate, the pace of monthly increases has decelerated and the annual rate has slowed to 3.7% from more than 9% in June 2022.



“Incoming data over recent months show ongoing progress toward both of our dual mandate goals —maximum employment and stable prices,” he said.



The speech was delayed at the onset by protesters from the group Climate Defiance who charged the dais at the club’s dinner and held up a sign saying “Fed is burning” surrounded by the words “money, futures and planet.”



After a short delay, Powell noted the labor market and economic growth may need to slow to ultimately achieve the Fed’s goal.



“Still, the record suggests that a sustainable return to our 2 percent inflation goal is likely to require a period of below-trend growth and some further softening in labor market conditions,” Powell said.



Fed officials have been using interest rate hikes in part to try to level out a supply-demand imbalance in the jobs market. The Fed has raised rates 11 times since March 2022 for a total of 5.25 percentage points. Coming from the near-zero level for the fed funds rate, that has taken the benchmark rate to its highest level in some 22 years.



“We’re very far from the effective lower bound, and the economy is handling it just fine,” Powell said.



The comments come the same day initial jobless claims hit their lowest weekly level since early in 2023, indicating that the labor market is still tight and could exert upward pressure on inflation.



Robust job creation in September and a slow pace of layoffs could put progress on inflation at risk.



“Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy,” he said.



In recent days, other Fed officials have said they think the Fed can be patient from here. Even some members who favor tighter monetary policy have said they think the Fed can halt rate hikes at least for now while they watch the lagged impact the rate hikes are expected to have on the economy.



Markets widely expect the Fed to hold off on additional rate hikes, though there remain questions over when officials might begin cutting rates.



Powell was noncommittal on the future of policy.



Given the uncertainties and risks, and how far we have come, the Committee is proceeding carefully. We will make decisions about the extent of additional policy firming and how long policy will remain restrictive based on the totality of the incoming data, the evolving outlook, and the balance of risks,” he said.

107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell

Powell says inflation is still too high and lower economic growth is likely needed to bring it down

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-820x461.jpeg" alt="" class="wp-image-428364" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Jobseekers during a Construction Career Fair at Cape Fear Community College in Wilmington, North Carolina, US, Wednesday, March 15, 2023.  Allison Joyce | Bloomberg | Getty Images</figcaption></figure>



Initial filings for unemployment benefits dipped last week, indicating that the U.S. labor market remains tight and a potential factor in persistent inflation.



Weekly jobless claims totaled a seasonally adjusted 198,000 for the period ended Oct. 14, the Labor Department reported Thursday. That marked a decline of 13,000 from the previous week and was below the Dow Jones estimate for 210,000. It was the lowest weekly level since Jan. 21.



Claims have been in a general deceleration pattern since the summer, but some economists worry that could change. Announced layoffs have been on the rise in recent weeks, indicating that the tide of lower claims could turn soon.



Continuing claims, which run a week behind, totaled 1.734 million, up 29,000 from the previous week and higher than the FactSet estimate for 1.698 million.



The labor market has been a critical factor in the Federal Reserve’s deliberations over monetary policy. Officials worry that a still-tight labor market could provide upward pressure on prices even after the central bank has raised rates 11 times totaling 5.25 percentage points since March 2022.



Markets were awaiting a speech later in the day from Fed Chair Jerome Powell, who is expected to provide some guidance on where policymakers head from here.



Following the report, stock market futures were mixed while Treasury yields held higher.



The labor market thus far has shown few effects of the United Auto Workers strike as well as other labor unrest. Claims spiked briefly over the summer but have been in a generally declining pattern since early August, holding in a range below 230,000 in recent weeks.



This week’s report covers the survey week the Labor Department uses for its nonfarm payrolls report.



In other economic news Thursday, the Philadelphia Fed reported its manufacturing index rose 5 points in October but remained in contraction territory at -9, lower than the -6.8 forecast. The survey gauges companies reporting expansion against contraction, so any reading below zero indicates contraction.



New orders, shipments and employment all turned positive after being in negative territory for September.

107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR

U.S. weekly jobless claims total 198,000, fewer than expected

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Stock</figcaption></figure>



Oct 19 (Reuters)&nbsp;&#8211;&nbsp;Sentiment was fragile on Thursday, with risky emerging markets stocks and currencies in the red as interest rate worries gathered steam and tensions in the Middle East showed little signs of easing.



MSCI&#8217;s gauge for emerging markets equities&nbsp;.MSCIEF&nbsp;had dropped 1.2% to a near two-week low by 0904 GMT.



The currencies index&nbsp;.MIEM00000CUS&nbsp;also fell 0.2%, pressured by rising U.S. bond yields on both long and short-dated tenors which hit multi-year highs.



With latest U.S. data hinting at a resilient economy, traders are pricing in restrictive monetary policy for a while as they await Federal Reserve Chair Jerome Powell&#8217;s remarks at 1600 GMT.&nbsp;US/



&#8220;As much as (EM central banks) like to keep up with the Fed, many of them had pushed rates into restrictive territory and do need to dial back a bit in order to support growth,&#8221; Jonathan Petersen, senior markets economist at Capital Economics said.



&#8220;It could keep rates elevated a little bit longer than maybe we had anticipated in emerging markets but ultimately this is a negative.&#8221;



Meanwhile, worries about China&#8217;s embattled property sector mounted, with Country Garden&#8217;s 2007.HK bondholders seeking urgent talks with the troubled property giant after it missed a $15 million coupon repayment, sources said.



Hong Kong&#8217;s Hang Seng&nbsp;.HIS&nbsp;tumbled 2.5%, bogged down by a 2.5% drop in property stocks&nbsp;.HSMPI.



Separately, data showed China&#8217;s September new home prices fell, dashing hopes of a turnaround in demand during a traditionally peak home buying period despite efforts to revive the crisis-hit sector.



Furthermore, the Israel-Hamas conflict continued to be factor for the mood across markets over the past couple of sessions as investors watched out for any signs of escalation.



The Israeli shekel ILS= held steady against the dollar, while the cost of insuring Israel&#8217;s debt against default shot over a 10-year high, according to S&amp;P Global Market Intelligence.



Bringing some relief to inflation worries, oil prices eased after OPEC showed no signs of supporting Iran&#8217;s call for an oil embargo on Israel and as the U.S. planned to ease Venezuela sanctions.&nbsp;O/R



In eastern and central Europe, Polish September industrial output fell by 3.1% on an annual basis, missing a forecast of 3.6% decline. The zloty EURPLN= inched up 0.1% against the euro.



Romania&#8217;s leu EURRON=R was little changed ahead of the publication of central bank&#8217;s minutes on monetary policy issues due at 1200 GMT.



(Reporting by Johann M Cherian in Bengaluru; Editing by Alison Williams)

Investment-management

Stocks tumble and FX slide as eyes on Powell’s Fed remarks

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



JOHANNESBURG, Oct 19 (Reuters) &#8211; The South African rand was weaker in early trade on Thursday on soaring U.S. Treasury yields ahead of a speech by Federal Reserve Chair Jerome Powell.



At 0733 GMT, the rand traded at 19.0775 against the dollar , about 0.5% weaker than its previous close.



U.S. Treasury yields hit 16-year highs on Wednesday, boosted by expectations that the Fed would keep interest rates higher for longer.



&#8220;If yields continue to rise, the USD will eventually run stronger,&#8221; said Rand Merchant Bank analysts in a morning briefing.



The rand often takes its cues from global factors such as U.S. monetary policy in addition to local factors.



&#8220;The rate hike concerns and heightened Middle East tensions are driving the dollar stronger and dampening risk sentiment,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



&#8220;Poor local retail sales data also did not help the rand&#8217;s cause,&#8221; Cilliers added.



Global markets will turn their attention to a speech by Powell later in the day for hints on the future interest rate path of the world&#8217;s biggest economy.



Shares on the Johannesburg Stock Exchange opened lower, with the blue-chip Top-40 index down about 0.9%.



South Africa&#8217;s benchmark 2030 government bond was weaker in early deals, with the yield up 13.5 basis points to 10.960%. 



(Reporting by Tannur Anders; Editing by Bhargav Acharya and Alison Williams)

Illustration photo of South African rand

South African rand weaker on soaring US Treasury yields

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-820x547.jpg" alt="" class="wp-image-420977" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. Federal Reserve Board Chairman Jerome Powell takes questions from reporters after the Federal Reserve raised its target interest rate by three-quarters of a percentage point to stem a disruptive surge in inflation, during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, June 15, 2022.
Elizabeth Frantz | Reuters</figcaption></figure>



Federal Reserve Chair&nbsp;<a href="https://www.cnbc.com/jay-powell/">Jerome Powell</a>&nbsp;is set to deliver what could be a key policy address Thursday, in which he will be tasked with convincing markets the central bank is committed to keep hammering away at inflation, but perhaps now needs a little less force.



The top monetary policymaker will speak at noon ET to the Economic Club of New York at a critical time for the U.S. economy.



Inflation numbers <a href="https://www.cnbc.com/2023/09/29/pce-inflation-august-2023-good-news-for-inflation-hawks.html">have been improving</a> lately, but Treasury yields have been surging, sending conflicting messages about where monetary policy might be headed. Markets largely expect the Fed to stay on hold with rates, but they will be looking to Powell for confirmation and clarification on how officials view both current conditions and longer-term trends.



“Powell is always tacking back to whatever helps feed the narrative that they need to stay vigilant, and for understandable reasons,” said Luke Tilley, chief economist at Wilmington Trust. “I just expect him to keep talking about the strength of the economy and the surprising strength of the consumer in the third quarter as a risk for inflation. That is enough ammunition to keep talking about staying vigilant.”



Essentially, Tilley expects the Powell message to break into three parts: The Fed needed to get rates high quickly, which it did; that it had to find a peak level, which is part of the current debate; and that it needs to figure out how long rates need to stay this high to get inflation back to its 2% target.



“Really, their ultimate goal is to keep financial conditions tight so inflation comes down,” he said. “He’s going to use that framework, even if he’s dovish about Nov. 1 (the next Fed rate decision) or December to shift the hawkishness to that third question of how long to keep them this high.”



“Higher for longer” has become an unofficial mantra in recent days, with Philadelphia Fed President Patrick Harker&nbsp;<a href="https://www.cnbc.com/2023/10/13/philadelphia-fed-president-harker-advocates-holding-interest-rates-where-they-are.html">earlier this week mentioning the term</a>&nbsp;specifically for how he feels about policy.



Harker was one of several Fed officials, including governors Philip Jefferson, who&nbsp;<a href="https://www.federalreserve.gov/newsevents/speech/jefferson20231009a.htm" target="_blank" rel="noreferrer noopener">spoke earlier this month</a>, and Christopher Waller,&nbsp;<a href="https://www.cnbc.com/2023/10/18/feds-waller-says-officials-can-wait-watch-and-see-before-acting-on-interest-rates.html">who spoke Wednesday</a>, to advocate holding off on rate hikes at least in the immediate future while they weigh the effects of incoming data. Waller said the Fed can “wait, watch and see” before it moves on rates.



Powell is expected to join the chorus Thursday, even if his message is filled with caveats about not becoming complacent in the fight against inflation.



“Powell has to present himself to investors as the dispassionate neutral leader and allow [others] to be more aggressive,” said Jeffrey Roach, chief economist for LPL Financial. “They’re not going to declare victory, and that is one reason why Powell is going to continue to talk somewhat hawkish.”



To that point, New York Fed President John Williams on Wednesday moved some of the way there, when he repeated another familiar mantra, that the Fed will have to keep the “restrictive stance of policy in place for some time” to deal with inflation, according to a Reuters report.



Similar to the other speakers, Powell likely will reiterate a data-dependent focus for the Fed after a much more aggressive path in which it has raised its benchmark borrowing rate 11 times for a total of 5.25 percentage points, its highest level in 22 years. The Fed&nbsp;<a href="https://www.cnbc.com/2023/10/11/fed-minutes-october-2023-.html">opted not to hike</a>&nbsp;in September.



He also, though, will be looked to for some guidance as to how he feels about rising yields, in light of the&nbsp;<a href="https://www.cnbc.com/2023/10/18/30-year-fixed-mortgage-rate-just-hit-8percent-for-the-first-time-since-2000.html">10-year Treasury having inched closer to 5%</a>, its highest point in 16 years.



The chair “will stick to the message … that the data has been coming in stronger than expected, but there has also been a big move in yields, which has tightened financial conditions, so no urgency for a policy response in November and the Fed can adopt a wait-and-see approach,” Krishna Guha, head of global policy and central bank strategy at Evercore ISI, said in a client note.



Guha said that a Fed on hold now will only be a “down payment” on “extra cuts” in rates for 2024 as inflation and economic growth both weaken.

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Fed Chair Powell to deliver key speech Thursday. Here’s what to expect

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-820x543.jpg" alt="" class="wp-image-428329" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-1536x1018.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BKEQXPVXKFIALBTT7X3G6DN3RM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Joe Biden walks as he departs Joint Base Andrews for a high-stakes visit to Israel, in Maryland, U.S., October 17, 2023. REUTERS/Evelyn Hockstein</figcaption></figure>



WASHINGTON, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;U.S. President Joe Biden left Washington Tuesday evening on a whirlwind trip that was originally expected to touch down in Israel for an update on Israel&#8217;s war aims in its battle with Hamas militants, and then Jordan, to stress the need to get humanitarian assistance to Gaza civilians.



A strike on a Gaza hospital late on Tuesday that killed hundreds of Palestinians saw Arab leaders call off their planned summit with Biden in Jordan however, and that leg of the trip cancelled.



MEETING WITH ISRAEL&#8217;S NETANYAHU BUT NOT ARAB LEADERS



Biden is spending part of Wednesday in Tel Aviv for talks with Israeli Prime Minister Benjamin Netanyahu and other officials as Israel prepares a ground offensive aimed at eliminating Hamas militants in Gaza who killed 1,300 people during a rampage through southern Israeli towns on Oct. 7.



Biden will no longer fly to Amman for talks about humanitarian assistance after Jordan&#8217;s King Abdullah cancelled a summit with Egyptian President Abdel Fattah al-Sisi, and Palestinian President Mahmoud Abbas.



Abbas, who has long been opposed to Hamas and whose organization exercises limited self-rule in the Israeli-occupied West Bank, said after the Gaza hospital strike he would not meet the U.S. President.



Palestinian authorities say Israel is responsible for the strike, Israel said the blast was caused by a failed rocket launch by the Palestinian Islamic Jihad militant group, which denied blame. Biden backed Israel&#8217;s account.



<h2 class="wp-block-heading" id="h-humanitarian-concerns-in-gaza">HUMANITARIAN CONCERNS IN GAZA</h2>



Biden&#8217;s second trip to a war zone this year &#8211; he visited Ukraine in February &#8211; carries some risk. His goal was originally to show American solidarity with Netanyahu while trying to avoid a broader regional war involving Iran and its Lebanese ally Hezbollah and Syria.



How he accomplishes that balance while meeting only Netanyahu and Israeli officials is unclear.



The United States has stationed a carrier strike group in the eastern Mediterranean in a show of force for Israel and a second is on the way.



Biden also wants to avert a humanitarian calamity in Gaza where authorities say thousands have already been killed in Israeli bombardment over the last week.



Hundreds of tons of aid from several countries have been waiting in Egypt&#8217;s Sinai peninsula for days pending a deal for its safe delivery to Gaza and the evacuation of some foreign passport holders through the Rafah crossing.



&#8220;He&#8217;ll make it clear that we want to continue working with all our partners in the region, including Israel, to get humanitarian assistance in and provide some kind of safe passage for civilians to get out,&#8221; said White House national security spokesperson John Kirby.



<h2 class="wp-block-heading" id="h-israel-red-lines">ISRAEL RED LINES</h2>



Biden and Netanyahu, thrown into a wartime partnership despite deep political differences on the way forward in the Middle East, have joined forces.



Biden has given Israel full-throated support while stressing the need to head off a massive humanitarian crisis in Gaza.



Their face-to-face meeting, after several phone calls since the attacks, will allow Biden to privately discuss concerns and possible red lines in the coming Gaza invasion.



Biden will also get an update on the scores of hostages taken by Hamas. The State Department has said 29 citizens of the United States were killed in the Hamas attacks, with 15 citizens and one lawful permanent resident unaccounted for.



Israel has vowed to annihilate the Hamas movement.



Biden will make clear that &#8220;Israel has the right and indeed the duty to defend its people from Hamas and other terrorists and to prevent future attacks,&#8221; Secretary of State Antony Blinken told reporters in Tel Aviv.



He said Israel would brief Biden on its war aims and strategy and how it will conduct operations &#8220;in a way that minimizes civilian casualties and enables humanitarian assistance to flow to civilians in Gaza in a way that does not benefit Hamas.&#8221;



The U.S. and Israel agreed to develop a plan that will enable humanitarian aid from donor nations and multilateral organizations to reach civilians in Gaza, Blinken said.



(Reporting By Steve Holland; additional reporting by Humeyra Pamuk in Tel Aviv; Editing by Raju Gopalakrishnan, Heather Timmons, Alexandra Hudson)

U.S. President Biden departs Joint Base Andrews for a high-stakes visit to Israel

Biden’s Israel visit focuses on Netanyahu after Arab summit cancelled

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



Oct 18 (Reuters)&nbsp;&#8211;&nbsp;Equities and currencies across most emerging markets came under pressure on Wednesday as investors stayed clear of big bets as oil prices spiked following intensifying tensions in the Middle East.



Oil prices jumped after hundreds were killed in a blast at a Gaza hospital, sparking concerns that the conflict could widen into the broader region and involve big oil suppliers like Iran. O/R



Adding to jitters, Jordan cancelled a summit with U.S. President Joe Biden, Egyptian and Palestinian leaders.



Currencies of large crude importers like Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;hit a record low of 28.05 against the dollar, while India&#8217;s rupee&nbsp;INR=&nbsp;was flat.



&#8220;The conflict in the Middle East does provide an upside risk to monetary policy in emerging markets,&#8221; said Shaun Murison, senior market analyst at IG Markets.



&#8220;Oil prices have renewed an upward trajectory which if extended or maintained will provide significant cost pressures to these economies.&#8221;



MSCI&#8217;s gauge of emerging market equities&nbsp;.MSCIEF&nbsp;fell 0.5%, while the currencies index&nbsp;.MIEM00000CUS&nbsp;was flat by 0900 GMT.



In some relief, a set of China data suggested a recent flurry of policy measures was helping to bolster a tentative recovery in the world&#8217;s second-largest economy.



The spot yuan CNY=CFXSstrengthened after data signalled gross domestic product (GDP) grew in quarter three, while September industrial production and retail sales rose and beat expectations.



However, caution loomed as Country Garden&#8217;s 2007.HK $15 million coupon payment deadline expired without word of payment and Hong Kong&#8217;s property sector .HSMPI closed 0.7% lower.



Riskier emerging markets currencies have seen little action recently as investors stayed wary amid a spiralling Israel-Hamas conflict, while keeping an eye on the U.S. monetary policy outlook and signs of a China recovery.



Israel&#8217;s shekel ILS= shed 0.1% and government bonds ticked lower after ratings agency Fitch placed its sovereign debt rating on watch negative and warned of negative rating action in case of major conflict escalation.



Meanwhile, Saudi Arabia&#8217;s sovereign wealth fund started taking orders for its debut dollar-denominated, dual-tranche Islamic bond.



Elsewhere, South Africa&#8217;s rand ZAR= added 0.3% after data showed September consumer inflation rose to 5.4% year-on-year from 4.8% in August.



Murison said the figures were unlikely to change the path of monetary policy in South Africa and expectations are that the central bank will maintain lending rates at current levels until the end of the year.



(Reporting by Johann M Cherian in Bengaluru; editing by Robert Birsel)

Stock market report. 3d illustration

Stocks slide, FX flat as Middle East conflict rages on

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-820x517.jpg" alt="" class="wp-image-428300" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-820x517.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-768x484.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E-1536x969.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OS4O3CS7QBOS3O54QF2N6D4B4E.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



JOHANNESBURG, Oct 18 (Reuters) &#8211; Inflation in South Africa rose sharply in September but stayed within the central bank&#8217;s target range, fuelling analysts&#8217; expectations that interest rates would be left unchanged next month.



Statistics South Africa said headline consumer inflation rose to 5.4% year-on-year in September from 4.8% in August , with food, fuel and transport sectors being the biggest contributors.



Core inflation, which excludes food and fuel costs, fell to 4.5% year-on-year in September from 4.8% in August.



The South African Reserve Bank (SARB) targets inflation between 3% and 6% and prefers to see it around the midpoint of that range.



Economist Elize Kruger said headline inflation was likely to remain above 5% until around the third quarter of 2024 but that the current level of interest rates was sufficiently restrictive.



&#8220;The SARB will keep rates unchanged at this level for a pro-longed period, before a first cut in interest rates would be considered,&#8221; she said.



Kruger also cautioned that the impact of a poultry crisis in the country on food inflation would only be seen in the October print.



South Africa is currently dealing with its worst outbreak of avian flu, which has hit egg and chicken meat supplies. Millions of chickens have been culled while many grocery retailers are limiting the number of eggs shoppers can buy.



The SARB warned on Tuesday that upside risks to inflation had strengthened over the past months, heightening uncertainty about a precise path for inflation.



Investec economist Annabel Bishop said inflation was expected to average 5.8% this year and 4.6% the next, while the rand currency and fuel prices posed risks to its outlook.



The central bank kept rates on hold in its previous two policy meetings after 10 consecutive hikes to curb inflation.



&#8220;There are likely to be no further hikes in South Africa&#8217;s interest rate cycle,&#8221; Bishop said. (Reporting by Bhargav Acharya and Tannur Anders; Editing by Olivia Kumwenda-Mtambo, Alexandra Hudson)

OS4O3CS7QBOS3O54QF2N6D4B4E

South Africa’s inflation rises sharply on food and fuel prices

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-820x462.jpeg" alt="" class="wp-image-428296" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Russia’s President Vladimir Putin and Chinese President Xi Jinping walk side by side to a group photo session during the third Belt and Road Forum for International Cooperation at the Great Hall of the People in Beijing on Oct. 18, 2023. Grigory Sysoyev | AFP | Getty Images</figcaption></figure>



In a rare international appearance since the war in Ukraine, Russian President Vladimir Putin addressed a live audience at the third Belt and Road forum in Beijing on Wednesday.



In the opening ceremony speech, Putin invited other countries to participate in the development of the Northern Sea Route. The meeting marks the 10th anniversary of the Belt and Road Initiative summit.



Speaking to 1,000 delegates representing over 130 countries, Putin said he agreed with Chinese President Xi Jinping that the Belt and Road idea “folds logically within multilateral efforts” to increase global cooperation.



“In the European part of Russia, we form an international north-south corridor &#8230; It connects Russian ports in the Baltic and Arctic with the ports on the coast of the Persian Gulf and the Indian Ocean along the entire route from our northern city,” Putin said according to a Google translation of his prepared remarks.



The Northern Sea Route is a 3,480 mile-long shipping route between the Pacific and Atlantic oceans which runs from the entrances of Novaya Zemiya straits in the west along the Russian Arctic Coast above Siberia.



Additionally, Moscow is working with foreign partners to also build railway routes from Central Siberia south toward China, Mongolia, and other ports of the Indian and Pacific Oceans, said Putin.



“Russia is the biggest country in the world,” Putin said. “That is why the connectivity of all the partners is relevant for the relations between the partners.”



Russia has a total area of 17,098,242 km², the largest in the world.



The successful development of the NSR “would potentially make Russia critical to global trade and communications between Asia and Europe,” according to an analysis by Foreign Policy.



Putin met Chinese counterpart Xi Jinping on Wednesday in Beijing in efforts to strengthen their “no-limits” partnership, against the backdrop of an escalating Middle East conflict and the ongoing Ukraine war.



Putin added that the “One Belt, One Road” initiative is consistent with Russian ideas to “create an integration circuit where freedom of trade, investment, and labor would be fully ensured.”



This marks Putin’s third attendance at the Belt and Road Forum, with the previous two held in 2017 and 2019.



In his opening address, Xi emphasized the progress made by the initiative, which he said would receive billions in new funds.



“The China Development Bank and the Export-Import Bank of China will each set up a 350 billion yuan ($47.9 billion) financing window,” Xi said. This will be on top of an additional 80 billion yuan which will be injected into the Silk Road Fund.



Xi added that China will continue to deepen cooperation in areas such as green infrastructure and green transportation to support the BRI International Green Development Coalition.



Xi and Putin are also set to hold bilateral talks Wednesday.



In the decade since Xi launched the Belt and Road Initiative, new infrastructure investments have helped extend China’s influence in the developing world.

107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A

Russia’s Putin speaks at China’s Belt and Road forum in rare international appearance

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-820x547.jpg" alt="" class="wp-image-428290" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CT4VY4XKGZMQBDEIRI26VVUIBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Amazon is seen, November 15, 2022. REUTERS/Pascal Rossignol/File Photo</figcaption></figure>



JOHANNESBURG, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;Amazon&nbsp;AMZN.O&nbsp;said on Tuesday it would launch its online shopping service in South Africa next year, making it only the second African country after Egypt where the U.S. e-commerce giant has set up a locally-dedicated website.



South Africa will be Amazon&#8217;s 21st country with a local domain name-based website, challenging a slew of online retailers dominated mainly by Naspers&#8217;&nbsp;NPNJn.J&nbsp;Takealot.com.



&#8220;The launch of Amazon.co.za in 2024 will provide independent sellers throughout the country an opportunity to rapidly launch, grow, and scale their businesses,&#8221; Amazon said in a statement.



Africa&#8217;s most advanced economy is usually seen as a beachhead for companies to expand into the continent and Amazon could be doing the same, analysts have said in the past.



The launch of its service comes at a time when South Africa has seen a sharp rise in online shopping after the pandemic created an opportunity for e-commerce to finally take hold, with retailers doubling down on investments in response.



But of late the spike in online sales appears to have peaked as South Africans return to shopping malls.



Also, given South Africa&#8217;s anaemic growth, high unemployment, power supply and transportation problems, analysts do not see the launch as a game-changer for Amazon or a major disruptor for the local industry.



&#8220;I don&#8217;t think their takeover of South Africa retail is a slam dunk,&#8221; said Sasfin Wealth senior equity analyst Alec Abraham.



While Amazon is expected to intensify competition with local online and traditional retailers, &#8220;the reality is that the consumer pie in South Africa is not growing,&#8221; he said.



Last year, Takealot Group Chief Executive Officer Mamongae Mahlare told Reuters the company&#8217;s vast delivery network and local appeal would ensure it competes well with Amazon.



It is not yet known how Amazon&#8217;s platform will be configured as it will have to comply with the local competition authority&#8217;s rules which mandate online retailers to separate their retail division from their marketplace operations.



(Reporting by Nqobile Dludla; Editing by Promit Mukherjee and Mark Potter)

FILE PHOTO: The logo of Amazon is seen, November 15, 2022.

Amazon to launch online shopping service in South Africa in 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-820x429.jpg" alt="" class="wp-image-428267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GBWK4H7B3ZI2ZMQX6TI6OQT76A.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



LONDON, Oct 17 (Reuters) &#8211; Ghana&#8217;s sovereign dollar bonds dropped sharply on Tuesday after a government presentation of debt rework scenarios that aimed for a haircut of between 30-40% on the principal disappointed investors.



Some bonds fell to their lowest level in three months, with the 2061 issue down as much as 2.9 cents in the dollar to 38.9 cents, Tradeweb data showed.&nbsp;XS2115147287=TE&nbsp;The bonds later recovered some ground, though were still down between 1.5 cents and 2.2 cents in the dollar.



The West African country, which produces gold, cocoa and oil, is in talks with bilateral and commercial creditors to restructure its debts during its worst economic crisis in a generation, having been locked out of international capital markets as it struggles with spiralling domestic debt costs.



Apart from the haircut, Finance Minister Ken Ofori-Atta also told investors that the government was aiming for a coupon of no more than 5% and a final maturity of not more than 20 years on the bonds that would be issued as part of the debt rework for its $13 billion of outstanding international bonds.



While exact details were still missing, Morgan Stanley said in a note to clients it had calculated a recovery value of $38 versus the current average price of $44 on the bonds.



&#8220;In our view, this proposal is unlikely to be accepted by the bondholders as the ultimate recovery value would be extremely low compared to history,&#8221; Morgan Stanley&#8217;s Neville Z Mandimika said.



&#8220;However, it is important to note that this is only a first proposal and various revisions will likely be made, presumably with a higher recovery value,&#8221; Mandimika said, adding that the government had also indicated that a value recovery instrument was being considered.



(Reporting by Karin Strohecker Additional reporting by Marc Jones Editing by Amanda Cooper and Mark Potter)

GBWK4H7B3ZI2ZMQX6TI6OQT76A

Ghana dollar bonds tumble as investors balk at debt overhaul plans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-820x542.jpg" alt="" class="wp-image-428259" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-1536x1015.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/BJPVVF2C5ZIUJOFIJRBBD7TYU4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ashley Karungi 33, a member of the lesbian, gay, bisexual, transgender, intersex and queer (LGBTQ) community and a single mother of two poses for a picture with rainbow colours at the offices of Rella Women&#8217;s Empowerment Program, for LGBTQ rights advocacy, after a Reuters interview in Kulambiro suburb of Kampala, Uganda April 4, 2023. REUTERS/Abubaker Lubowa/File Photo</figcaption></figure>



MARRAKECH, Morocco, Oct 16 (Reuters) &#8211; The World Bank will aim to ensure gay and transgender Ugandans are not discriminated against in its programmes before resuming new funding, which was halted in August over an anti-LGBTQ law, a bank executive said.



World Bank project documents will make it clear that LGBTQ Ugandans should not face discrimination and that staff will not be arrested for including them, Victoria Kwakwa, the bank&#8217;s head for eastern and southern Africa, told Reuters.



Rights groups have said that the Anti-Homosexuality Act (AHA), which was enacted in May and prescribes the death penalty for certain same-sex acts, has unleashed a torrent of abuse against LGBTQ people, mostly by private individuals.



&#8220;We&#8217;re doing all this to clarify this is not what you should be doing in World Bank-financed projects and to say you are allowed to do it the right way and you will be not be arrested,&#8221; Kwakwa said, on the sidelines of the World Bank and International Monetary Fund&#8217;s annual meetings in Marrakech, Morocco.



She declined to give a timeline for assessing the measures&#8217; efficacy and moving to a decision on whether to resume new funding for Uganda.



&#8220;We have discussed this at length with government. Government is comfortable with that,&#8221; Kwakwa said.



When the World Bank suspended new funding, Ugandan officials accused the development finance institution of hypocrisy, saying it was lending to countries in the Middle East and Asia that have the same or harsher laws targeting LGBTQ people.



The government would need to revise its budget to reflect the suspension&#8217;s potential financial impact, a junior finance minister said at the time.



The World Bank&#8217;s portfolio of projects in the East African country was $5.2 billion at the end of 2022. These have not been affected by the decision to suspend new financing.



(Reporting by Rachel Savage and Jorgelina do Rosario, Editing by Andrew Cawthorne)

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