<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-820x461.jpeg" alt="" class="wp-image-544730" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A family shops for Halloween candy at a Walmart Supercenter on October 16, 2024 in Austin, Texas.  Brandon Bell | Getty Images</figcaption></figure>



Just because the Federal Reserve is nearing its inflation goal doesn’t mean the problem is solved, as the high price of goods and services across the U.S. economy continues to pose a burden for individuals, businesses and policymakers.



Recent price reports on goods and services, despite being a bit stronger than expected, indicate that the rate of inflation over the past year is getting close to the central bank’s 2% target.



In fact, Goldman Sachs recently estimated that when the Bureau of Economic Analysis later this month releases its figures on the Fed’s favorite price measure, the inflation rate could be close enough to get rounded down to that 2% level.



But inflation is a mosaic. It can’t be captured fully by any individual yardstick, and by many metrics is still well above where most Americans, and in fact some Fed officials, feel comfortable.



Sounding like many of her colleagues, San Francisco Fed President Mary Daly last Tuesday touted the easing of inflation pressures but noted that the Fed isn’t declaring victory nor is it eager to rest on its laurels.



“Continued progress towards our goals is not guaranteed, so we must stay vigilant and intentional,” she told a group gathered at the New York University Stern School of Business.



<h2 class="wp-block-heading" id="h-inflation-is-not-dead">Inflation is not dead</h2>



Daly began her talk with an anecdote of a recent encounter she had while walking near her home. A young man pushing a stroller and walking a dog called out, “President Daly, are you declaring victory?” She assured him she was not waving any banners when it comes to inflation.



But the conversation encapsulated a dilemma for the Fed: If inflation is on the run, why are interest rates still so high? Conversely, if inflation still hasn’t been whipped — those who were around in the 1970s might remember the “Whip Inflation Now” buttons — why is the Fed cutting at all?



In Daly’s eyes, the Fed’s half percentage point reduction in September was an attempt at “right-sizing” policy, to bring the current rate climate in line with inflation that is well off its peak of mid-2022 at the same time as there are signs the labor market is softening.



As evidenced by the young man’s question, convincing people that inflation is easing is a tough sell.



When it comes to inflation, there are two things to remember: the rate of inflation, which is the 12-month view that garners headlines, and the cumulative effects that a more than three-year run has had on the economy.



Looking at the 12-month rate provides only a limited view.



The annual rate of CPI inflation was 2.4% in September, a vast improvement over the 9.1% top in June 2022. The CPI measure draws the bulk of public focus but is secondary to the Fed, which prefers the personal consumption expenditures price index from the Commerce Department. Taking the inputs from the CPI that feed into the PCE measure led Goldman to its conclusion that the latter measure is just a few hundredths of a percentage point from 2%.



Inflation first passed the Fed’s 2% objective in March 2021 and for months was dismissed by Fed officials as the “transitory” product of pandemic-specific factors that would soon recede. Fed Chair Jerome Powell, in his annual policy speech at the Jackson Hole, Wyoming summit this August, joked about “the good ship Transitory” and all the passengers it had in the early days of the inflation run-up.



Obviously, inflation wasn’t transitory, and the all-items CPI reading is up 18.8% since then. Food inflation has surged 22%. Eggs are up 87%, auto insurance has soared almost 47% and gasoline, though on a downward trajectory these days, is still up 16% from then. And, of course, there’s housing: The median home price has jumped 16% since Q1 of 2021 and 30% from the beginning of the pandemic-fueled buying frenzy.



Finally, while some broad measures of inflation such as CPI and PCE are pulling back, others show stubbornness.



For instance, the Atlanta Fed’s measure of “sticky price” inflation — think rent, insurance and medical care — was still running at a 4% rate in September even as “flexible CPI,” which includes food, energy and vehicle costs, was in outright deflation at -2.1%. That means that prices that don’t change a lot are still high, while those that do, in this particular case gasoline, are falling but could turn the other way.



The sticky-price measure also brings up another important point: “Core” inflation that excludes food and energy prices, which fluctuate more than other items, was still at 3.3% in September by the CPI measure and 2.7% in August as gauged by the PCE index.



While Fed officials lately have been talking more about headline numbers, historically they’ve considered core a better measure of long-run trends. That makes the inflation data even more troublesome.



<h2 class="wp-block-heading"><a></a>Borrowing to pay higher prices</h2>



Prior to the 2021 spike, American consumers had grown accustomed to negligible inflation. Even so, during the current run, they have continued to spend, spend and spend some more despite all the grumbling about the soaring cost of living.



In the second quarter, consumer spending equaled close to $20 trillion at an annualized pace, according to the Bureau of Economic Analysis. In September, retail sales increased a larger-than-expected 0.4%, with the group that feeds directly into gross domestic product calculations up 0.7%. However, year-over-year spending increased just 1.7%, below the 2.4% CPI inflation rate.



A growing portion of spending has come through IOUs of various forms.



Household debt totaled $20.2 trillion through the second quarter of this year, up $3.25 trillion, or 19%, from when inflation started spiking in Q1 of 2021, according to Federal Reserve data. In the second quarter of this year, household debt rose 3.2%, the biggest increase since Q3 of 2022.



So far, the rising debt hasn’t proved to be a major problem, but it’s getting there.



The current debt delinquency rate is at 2.74%, the highest in nearly 12 years though still slightly below the long-term average of around 3% in Fed data going back to 1987. However, a recent New York Fed survey showed that the perceived probability of missing a minimum debt payment over the next three months jumped to 14.2% of respondents, the highest level since April 2020.



And it’s not just consumers who are racking up credit.



Small business credit card usage has continued to tick higher, up more than 20% compared to pre-pandemic levels and nearing the highest in a decade, according to Bank of America. The bank’s economists expect the pressure could ease as the Fed lowers interest rates, though the magnitude of the cuts could come into question if inflation proves sticky.



In fact, the one bright spot of the small business story relative to credit balances is that they actually haven’t kept up with the 23% inflation increase going back to 2019, according to BofA.



Broadly speaking, though, sentiment is downbeat at small firms. The September survey from the National Federation of Independent Business showed that 23% of respondents still see inflation as their main problem, again the top issue for members.



<h2 class="wp-block-heading"><a></a>The Fed’s choice</h2>



Amid the swirling currents of the good news/bad news inflation picture, the Fed has an important decision to make at its Nov. 6-7 policy meeting.



Since policymakers in September voted to lower their baseline interest rate by half a percentage point, or 50 basis points, markets have acted curiously. Rather than price in lower rates ahead, they’ve begun to indicate a higher trajectory.



The rate on a 30-year fixed mortgage, for instance, has climbed about 40 basis points since the cut, according to Freddie Mac. The 10-year Treasury yield has moved up by a similar amount, and the 5-year breakeven rate, a bond market inflation gauge that measures the 5-year government note against the Treasury Inflation Protected Security of the same duration, has moved up about a quarter point and recently was at its highest level since early July.



SMBC Nikko Securities has been a lone voice on Wall Street encouraging the Fed to take a break from cuts until it can gain greater clarity about the current situation. The firm’s position has been that with stock market prices eclipsing new records as the Fed has shifted into easing mode, softening financial conditions threaten to push inflation back up. (Atlanta Fed President Raphael Bostic recently indicated that a November pause is a possibility he’s considering.)



“For Fed policymakers, lower interest rates are likely to further ease financial conditions, thereby boosting the wealth effect through higher equity prices. Meanwhile, a fraught inflationary backdrop should persist,” SMBC chief economist Joseph LaVorgna, who was a senior economist in the Donald Trump White House, wrote in a note Friday.



That leaves folks like the young man who Daly, the San Francisco Fed president, encountered uneasy about the future and hinting whether the Fed perhaps is making a policy mistake.



“I think we can move towards [a world] where people have time to catch up and then get ahead,” Daly said during her talk in New York. “That is, I told the young father on the sidewalk, my version of victory, and that’s when I will consider the job done.”

108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu

Here’s why inflation may look like it’s easing but is still a huge problem

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-820x461.jpeg" alt="" class="wp-image-544690" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China’s central bank supplied 14-day cash to its banking system for the first time in months on Monday and at a lower interest rate, signaling its intent to further ease monetary conditions. Jiang Qiming | China News Service | Getty Images</figcaption></figure>



China on Monday lowered its main benchmark lending rates by 25 basis points at the monthly fixing.



The one-year loan prime rate (LPR) has been cut to 3.1%, while the five-year LPR has been trimmed to 3.6%, the People’s Bank of China (PBOC) said.



The one-year LPR influences corporate loans and most household loans in China, while the five-year LPR serves as a benchmark for mortgage rates.



The move was expected. China’s central bank governor Pan Gongsheng had indicated on Friday during a forum held in Beijing that the loan prime benchmark rates would be lowered by 20 to 25 basis points.



During the forum, Pan also said that the amount of cash that banks need to have on hand, also known as the reserve requirement ratio or RRR, could be lowered by another 25 to 50 basis points by the end of the year, depending on the liquidity situation.



The seven-day reverse repurchase rate will be cut by 20 basis points, while the medium-term lending facility rate will be lowered by 30 basis points, Pan also highlighted.&nbsp;



While the loan prime rate cuts were expected, it does confirm that monetary stimulus is at least “occurring on a significant basis in China,” said Shane Oliver, head of investment strategy and chief economist at AMP. However, he noted that the cut alone is insufficient to lift the country’s economy, reiterating growing calls for more fiscal stimulus.



“The cost of money, the supply of money, is not the real issue in China. The real issue is a lack of demand, and that’s why I think fiscal stimulus is so important,” he added.



Despite recent cuts, the real interest rate in China is still “too high,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. “I expect more rate cuts next year as the Fed rate declines.”



Last month, China’s central bank trimmed its reserve requirement ratio 50 basis points. The move came as the PBOC released a blitz of support measures aimed at shoring up the world’s second largest economy, which is facing a prolonged property crisis and weak consumer sentiment.



China surprised the markets by shaving its major short and long term lending rates in July.



Last week, China reported slightly better than expected third-quarter GDP growth of 4.6% year-on-year. Additional data released on Friday, including retail sales and industrial production for September, had also beat expectations, a hopeful sign for the country’s flagging economy.



—CNBC’s Evelyn Cheng contributed to this report.

107077973-1655689250819-gettyimages-1402870855-vcg111387492036

China cuts benchmark lending rates by 25 basis points

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-820x547.jpg" alt="" class="wp-image-419241" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Electricity pylon is seen near from the Tihange Nuclear Power Station on August 10, 2022, in Tihange, Belgium. As the European Union prepares for the drastic reduction of Russian gas imports, some users are concerned about the risk of heating and electricity cuts next winter. (Photo by Thierry Monasse/Getty Images)</figcaption></figure>



SINGAPORE, Oct 21 (Reuters) &#8211; Tanzania is building a grid interconnector with Zambia to help assist in mitigating a drought-driven power crisis, Tanzania&#8217;s deputy prime minister said at the Singapore International Energy Week conference on Monday.



&#8220;We have some interconnectors with our neighbours, Rwanda, Burundi, Kenya and now we are pulling up an interconnector with Zambia, which will help us to assist our neighbour in Zambia who is facing a deadly drought,&#8221; said Doto Biteko, who is also the energy minister.



&#8220;Tanzania being a member of the Eastern African Power Pool &#8230; we have a bigger market where whenever we have access to electricity, we can sell to our neighbouring countries.&#8221;



The development of the grid interconnector will take 36 months, with work having begun last month, he&nbsp;added&nbsp;on the sidelines of the conference.



Kenya, Tanzania and Zambia said in 2014 that they will spend $1.4 billion to link their power grids by 2018 and create a regional power pool for trading electricity.



On the $42 billion development of Tanzania LNG, a liquefied natural gas export plant, Biteko said the government is in negotiations with the project&#8217;s partners and operators to finalise the host government agreement, but did not give a timeline for when negotiations will be completed.



Tanzania LNG was delayed by proposed government changes to a financial agreement reached last year. A government spokesperson said the proposed amendment to the Host Government Agreement intends to ensure that both sides benefit fairly in the whole deal.



Equinor and Shell are joint operators while Exxon Mobil, Pavilion Energy, Medco Energi and Tanzania&#8217;s national oil company TPDC are partners.



(Reporting by Emily Chow, Sudarshan Varadhan and Trixie Yap; Editing by Sonali Paul and Stephen Coates)

Tihange Nuclear Power Station

Tanzania building grid interconnector with Zambia to help mitigate power crisis

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="960" height="503" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WY6G22MR2FISHBZ2DHXCZR57HY.avif" alt="" class="wp-image-543693"/><figcaption class="wp-element-caption">World Bank President Ajay Banga looks on during an interview with Reuters in Washington, U.S., October 15, 2024. REUTERS/Nathan Howard/File Photo</figcaption></figure>



WASHINGTON, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;World Bank President Ajay Banga said on Thursday that bilateral&nbsp;and Paris Club commercial&nbsp;creditors need to provide more debt forgiveness to&nbsp;poor&nbsp;debt-distressed countries, and that the development lender was working on ways to ease service costs to improve development outcomes.



Banga, speaking to reporters ahead of World Bank and International Monetary Fund annual meetings&nbsp;next week, said the bank has already answered calls for its share of debt relief in restructurings by providing billions of dollars in additional grants and deeply discounted loans to debtor countries.



Some $16 billion to $17 billion has gone to Zambia, Chad, Ethiopia and Ghana during their slow and painful debt restructuring processes.



&#8220;Effectively, what we&#8217;re doing is giving them the lifeline they need, whether you do it as a debt forgiveness or you give them a grant,&#8221; Banga said. &#8220;Debt forgiveness is required, but not from us. It&#8217;s required from those creditors. That&#8217;s the issue we&#8217;re trying to work our way through.&#8221;



Banga did not specifically mention China, which has been among the largest creditors to debt-distressed countries and has been slow to agree to reductions in debt principal.



Banga said that the World Bank was working with several countries on potential ways to re-profile debt to reduce servicing costs &#8220;and take the distance and put it into development, life, education, what you would call a debt-for- development swap.&#8221;



(Reporting by David Lawder; Editing by Chizu Nomiyama and Mark Porter)

WY6G22MR2FISHBZ2DHXCZR57HY

World Bank’s Banga says more bilateral, commercial debt forgiveness needed

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-820x545.jpg" alt="" class="wp-image-543673" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view shows banners with the logo of the annual BRICS summit near the Kazan Kremlin and the Kul Sharif Mosque in Kazan, Russia October 17, 2024. REUTERS/Alexey Nasyrov</figcaption></figure>



MOSCOW, Oct 18 (Reuters)&nbsp;&#8211;&nbsp;The BRICS group will generate most of the global economic growth in the coming years thanks to its size and relatively fast growth compared with that of&nbsp;developed Western&nbsp;nations, Russian President Vladimir Putin said on Friday.



Putin hopes to build up BRICS &#8211; which has expanded to include Egypt, Ethiopia, Iran and the United Arab Emirates as well as Brazil, Russia, India, China and South Africa &#8211; as a powerful counterweight to the West in global politics and trade.



The Kremlin leader is due to host a BRICS summit in the Russian city of Kazan on Oct. 22-24.



&#8220;The countries in our association are essentially the drivers of global economic growth. In the foreseeable future, BRICS will generate the main increase in global GDP,&#8221; Putin told officials and businessmen at BRICS business forum in Moscow.



&#8220;The economic growth of BRICS members will increasingly depend less on external influence or interference. This is essentially economic sovereignty,&#8221; Putin added.



Next week&#8217;s summit is being presented by Moscow as evidence that Western efforts to isolate Russia over its actions in Ukraine have failed.



Russia wants other countries to work with it to overhaul the global financial system and end the dominance of the U.S. dollar.



China, India and the UAE confirmed on Friday that their leaders&nbsp;would&nbsp;attend&nbsp;the&nbsp;summit&nbsp;in Kazan.



Putin cited some of the&nbsp;initiatives&nbsp;that Russia has previously outlined ahead of the summit, including a joint cross-border payments system and a reinsurance company.



He called on the New Development Bank, the BRICS&#8217; only functioning multilateral development institution, to invest in technology and infrastructure across the countries of the Global South.



&#8220;As a development institution, the bank already serves as an alternative to many Western financial mechanisms, and we will naturally continue to develop it,&#8221; Putin said. He called for more investment in e-commerce and artificial intelligence.



Putin sought to promote Russia&#8217;s new transport megaprojects such as the Arctic Sea Route and the North-to-South corridor, linking Russia to the Gulf and Indian Ocean through the Caspian Sea and Iran.



&#8220;It is the key to increasing freight transportation between the Eurasian and African continents,&#8221; he said.



(Reporting by Oksana Kobzeva and Gleb Bryanski; Editing by Gareth Jones)

Views of Kazan ahead of BRICS summit

Putin says BRICS will generate most of global economic growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="516" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-820x516.jpg" alt="" class="wp-image-543609" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-820x516.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-768x483.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-1536x967.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Cabinet Secretary of the Ministry of Interior and National Administration Kithure Kindiki speaks during a joint press conference, with British Minister of State for Security Tom Tugendhat during his visit, in Nairobi, Kenya May 10, 2023. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Oct 18 (Reuters) &#8211; Kenyan President William Ruto chose Interior Minister Kithure Kindiki as his new deputy on Friday, but a court blocked his appointment until it hears a case next week challenging the impeachment of Kindiki&#8217;s predecessor.



The high court&#8217;s intervention came after lawmakers had already approved Kindiki&#8217;s appointment on Friday. It extends a period of political turmoil in the East African country that started with mass protests against unpopular tax hikes in June.



The Senate vote on Thursday to uphold impeachment charges against Ruto&#8217;s previous deputy, Rigathi Gachagua, marked the first time that a Kenyan deputy president had been removed from office by impeachment.



In an order, the high court in the capital Nairobi said Kindiki&#8217;s appointment as deputy president and the Senate&#8217;s resolution upholding impeachment charges against Gachagua were suspended until Oct. 24, when a bench of judges appointed by the chief justice will debate the issue.



A second court order said Kindiki cannot assume office until the case is heard.



Gachagua was impeached on five out of 11 charges including gross violation of the constitution and stirring ethnic hatred &#8211; accusations that he denied and dismissed as politically motivated.



Kindiki was a top contender to be Ruto&#8217;s running mate during the 2022 election and was appointed interior minister shortly after the president took office in September that year.



The interior ministry includes oversight of the police. Rights groups have accused the police of using excessive force during the nationwide protests earlier this year that called for the withdrawal of a now-shelved finance law and reforms to tackle corruption.



During an appearance before parliament in September, Kindiki said police acted within the law and that the government did not engage in extrajudicial killings or abductions.



Gachagua helped Ruto secure a large block of votes from the populous central Kenya region during the 2022 election. But in recent months, he has spoken of being sidelined, amid widespread reports in local media signalling a rift with Ruto as political alliances shifted.



Gachagua, who was hospitalised and absent during the Senate vote to dismiss him, filed a petition on Friday seeking to stop Ruto from naming his replacement pending a judicial hearing, a court filing showed.



The 59-year-old politician has filed or is a party to several cases challenging the impeachment process.



(Reporting by George Obulutsa and Humphrey Malalo; Writing by Bhargav Acharya;Editing by Alexander Winning, Ammu Kannampilly, Andrew Heavens and Angus MacSwan, William Maclean)

Kenya’s Cabinet Secretary of the Ministry of Interior and National Administration Kithure Kindiki addresses a press conference in Nairobi

Kenyan court blocks deputy president appointment hours after Ruto picks ally

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-820x429.jpg" alt="" class="wp-image-543581" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Deputy President Rigathi Gachagua speaks during a press conference, ahead of lawmakers&#8217; vote over his impeachment motion at his residence in Karen, Nairobi Kenya, October 7, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s senate voted to dismiss Deputy President Rigathi Gachagua from office by impeachment on five out of 11 charges levelled against him on Thursday, in an unprecedented move that risks pushing the country towards a political crisis.



The National Assembly voted last week to impeach Gachagua, who helped President William Ruto win an election two years ago but has been assailed by allies of the president over alleged disloyalty and a series of provocative public comments.



Fifty-four out of 67 senators voted to dismiss Gachagua on the first count of &#8220;gross violation of the constitution&#8221;, more than the two-thirds majority required under the law, making him the first Kenyan president or deputy president forced from office by impeachment.



&#8220;Accordingly, His Excellency Rigathi Gachagua&#8230; ceases to hold office,&#8221; said Senate Speaker Amason Kingi.



The process, however, is unlikely to stop there. Gachagua has filed several petitions challenging the push to oust him, and the chief justice has appointed a panel of three judges to examine them.



Gachagua, who has denied the allegations, had been&nbsp;due to defend himself against&nbsp;the charges in&nbsp;the Senate on Thursday afternoon&nbsp;ahead of the vote.



When he failed to show up, his lawyer&nbsp;Paul Muite said the deputy president had been hospitalised with intense chest pains, urging the Senate to pause proceedings for a couple of days.



But the senate declined to do so, prompting Gachagua&#8217;s legal team to leave the chambers in protest.



Dan Gikonyo, a doctor treating Gachagua, told reporters the deputy president was admitted to a Nairobi hospital with heart trouble on Thursday afternoon, but was now stable and would likely have to remain in hospital for 24-72 hours.



Some senators questioned the decision to proceed with the vote, despite Gachagua&#8217;s absence.



&#8220;We are to try a man in hospital because the only crime that Rigathi Gachagua has committed is a political crime, so he has to be removed out of the way, whatever it will take,&#8221; said Senator John Methu.



But Senator Moses Otieno Kajwang defended the move to impeach Gachagua, saying, &#8220;we must drain the swamp&#8221;.



<h2 class="wp-block-heading" id="h-risks-for-ruto">RISKS FOR RUTO</h2>



Ruto, who has fallen out with Gachagua in recent months, has not commented on the proceedings, but could face a public backlash following the impeachment, political analysts said.



Many Kenyans view the impeachment process as politically motivated, and a distraction from the aftermath of the deadly anti-tax protests in June and July that exposed deep discontent with government policies and alleged corruption.



The hearings, which have involved in-depth scrutiny of Gachagua&#8217;s finances, could boomerang back at Ruto, said Karuti Kanyinga, a professor at the University of Nairobi&#8217;s Institute for Development Studies.



&#8220;We are going to hear people demanding that the same thing that has been done on Gachagua be done to the president,&#8221; Kanyinga said.



Gachagua, who has&nbsp;previously called the impeachment process a political lynching based on&nbsp;falsehoods, had&nbsp;been due to respond to a litany of accusations laid out on Wednesday by lawmaker Mwengi Mutuse, who accusedhim of inciting ethnic hatred.



Mutuse also accused Gachagua of acquiring properties worth over $40 million since becoming deputy president, despite reporting a net worth of only around $6 million&nbsp;before entering office.



Elisha Ongoya, a member of Gachagua&#8217;s legal team, said the allegations lacked evidence and were based on speculation.



(Reporting by Hereward Holland, Ammu Kannampilly, George Obulutsa and Sonia Rao; Editing by Christina Fincher, Ammu Kannampilly, Bernadette Baum, Bill Berkrot and Marguerita Choy)

Z5ZCDEUALVJB3FKZTMZRN6CCHI (1)

Kenya senate votes to remove deputy president from office by impeachment

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-820x461.jpeg" alt="" class="wp-image-543550" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China has announced in the past week a series of measures aimed at boosting its economy ahead of a key Politburo meeting later this week focused on reviewing the first half performance of the world’s second-largest economy. Str | Afp | Getty Images</figcaption></figure>



China’s National Bureau of Statistics on Friday reported third-quarter GDP growth of 4.6% year on year, slightly exceeding the 4.5% expected by economists polled by Reuters.



That’s less than the second-quarter growth of 4.7% year on year. On a quarterly basis, the third quarter saw 0.9% expansion, compared to 0.7% in the second quarter.



“The national economy showed positive signs of growth in September,” Sheng Laiyun, the bureau’s deputy commissioner, said at the press conference, according to CNBC’s translation of the Chinese. “The confidence is building up to hit the full-year growth target of around 5%.”



Other data released on Friday, such as retail sales and industrial production, had also beat expectations, a hopeful sign for the world’s second largest economy.



Beijing has faced growing public scrutiny over its ability to meet its own annual growth target of “around 5%.”



“Since real GDP expanded by 4.8% in the first three quarters of the year, the full year GDP growth target of around 5%&nbsp;is now within reach with extra stimulus in&nbsp;Q4,” said Tianchen Xu, senior economist at The Economist Intelligence Unit.



“Despite the multitude of challenges, China’s economy is not incurable as some would suggest,” Xu added. “There’s reason to be more optimistic about growth in the coming years, given how the government is committed to shoring up the economy.”



After the release of a slew of disappointing economic data, Chinese officials last month announced a slate of support measures to jumpstart its sluggish economy, including cutting the amount of cash the banks needs to have on hand by 50 basis points.



Authorities continued to dip feed more stimulus measures throughout this month amid low consumer sentiment and a flagging property sector. Over the weekend, China’s Minister of Finance Lan Fo’an told reporters that the central government has room to increase debt and the deficit, without giving any details on the size of the package.



Mainland China’s CSI 300 was trading up 0.7% and Hong Kong’s Hang Seng index was up 1.3% following Friday’s data release.



Bruce Pang, chief economist and head of research for Greater China at JLL, said that the performance of the economy “aligns with market expectations, given the weak domestic demand, a still struggling housing market, and slowing export growth.”

107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P

China reports third-quarter GDP growth of 4.6%, slightly beating expectations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-820x547.jpg" alt="" class="wp-image-543347" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">World Bank President Ajay Banga speaks on the second day of the annual meeting of the International Monetary Fund and the World Bank, following last month&#8217;s deadly earthquake, in Marrakech, Morocco, October 10, 2023. REUTERS/Susana Vera</figcaption></figure>



WASHINGTON, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;World Bank President Ajay Banga said on Thursday that bilateral creditors need to provide more debt forgiveness to&nbsp;poor&nbsp;debt-distressed countries, and that the development lender was working on ways to ease service costs to improve development outcomes.



Banga, speaking to reporters ahead of World Bank and International Monetary Fund annual meetings&nbsp;next week, said the bank has already answered calls for its share of debt relief in restructurings by providing billions of dollars in additional grants and deeply discounted loans to debtor countries.



Some $16 billion to $17 billion has gone to Zambia, Chad, Ethiopia and Ghana during their slow and painful debt restructuring processes.



&#8220;Effectively, what we&#8217;re doing is giving them the lifeline they need, whether you do it as a debt forgiveness or you give them a grant,&#8221; Banga said. &#8220;Debt forgiveness is required, but not from us. It&#8217;s required from those creditors. That&#8217;s the issue we&#8217;re trying to work our way through.&#8221;



Banga did not specifically mention China, which has been among the largest creditors to debt-distressed countries and has been slow to agree to reductions in debt principal.



Banga said that the World Bank was working with several countries on potential ways to re-profile debt to reduce servicing costs &#8220;and take the distance and put it into development, life, education, what you would call a debt-for- development swap.&#8221;



(Reporting by David Lawder; Editing by Chizu Nomiyamaand Mark Porter)

Second day of the International Monetary Fund and the World Bank meeting in Marrakech

World Bank’s Banga says more bilateral debt forgiveness needed

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-820x615.jpg" alt="" class="wp-image-543315" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People shop at a fresh food market in Oyingbo, Lagos, Nigeria December 17, 2021. Picture taken December 17, 2021. REUTERS/Nneka Chile/File Photo</figcaption></figure>



ABUJA, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is beginning to reap the benefits of significant policy reforms following a near fiscal crisis in 2020, but must stay the course, the World Bank said on Thursday.



President Bola Tinubu has instituted reforms including ending a decades-old petrol subsidy and devaluing the currency to try to boost output, which has been sluggish for about a decade.



World Bank lead economist for Nigeria Alex Sienaert said that Nigeria&#8217;s fiscal deficit has reduced from 6.2% of Gross Domestic Product (GDP) in the first half of last year to 4.4% in the first half of this year, with the reforms leading to robust growth in service sectors, stability in the oil sector, and improvements in the foreign exchange market.



&#8220;We are seeing a fiscal consolidation underway with the fiscal deficit shrinking and that&#8217;s driven by a combination of expenditure being roughly constant in real terms, and revenues which are surging,&#8221; Sienaert said during a presentation in the capital Abuja.



&#8220;This surge in revenues is largely due to the removal of the implicit forex subsidy that was happening before, which was even larger than the petrol subsidy, which we talk a lot about,&#8221; he said.



The World Bank expects Nigeria&#8217;s economy to grow at 3.3% this year, rising to 3.6% in 2025.



Nigeria&#8217;s fiscal crisis had been mounting following two economic recessions in the last eight years due to a combination of economic mismanagement and policy challenges.



The recent reforms, including a focus on price stability and a unified market-reflective exchange rate by the central bank, have proven critical in stemming an economic downturn, but they have stoked inflation.



&#8220;The ultimate purpose here, of course, is jobs and opportunities,&#8221; Sienaert said.



(Reporting by Elisha Bala-Gbogbo; Editing by Angus MacSwan)

FILE PHOTO: People shop at a fresh food market in Oyingbo, Lagos

Nigeria seeing positive results from fiscal reforms, World Bank says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/EWIHZR63PZN5DEGVL2QOXJBLFM-820x575.jpg" alt="" class="wp-image-543284" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/EWIHZR63PZN5DEGVL2QOXJBLFM-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/EWIHZR63PZN5DEGVL2QOXJBLFM-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/EWIHZR63PZN5DEGVL2QOXJBLFM-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/EWIHZR63PZN5DEGVL2QOXJBLFM-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/EWIHZR63PZN5DEGVL2QOXJBLFM-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/EWIHZR63PZN5DEGVL2QOXJBLFM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Cars are seen on display at a showroom of a Nissan dealership in Melrose, South Africa, July 16, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa is considering introducing tax rebates or subsidies for consumers to boost buying of electric vehicles, President Cyril Ramaphosa said on Thursday, as Africa&#8217;s most industrialised economy transitions its automotive industry.



Global automakers like Ford, Volkswagen, BMW and Toyota manufacture models in South Africa for both the local and European markets. Britain and the European Union jointly consume 46% of the vehicles the country produces.



The move towards cleaner and more sustainable fuels, plus stringent regulation in key markets, is putting pressure on some global automakers to shift towards electric and hybrid models, Ramaphosa said at an automotive industry conference.



As a result, South Africa&#8217;s automotive industry is positioning itself to take advantage of the demand for new energy vehicles.



&#8220;Consideration must be given to incentives for manufacturers, as well as tax rebates or subsidies for consumers, to accelerate the uptake of electric vehicles,&#8221; Ramaphosa said.



To encourage the production of electric cars in South Africa, the government will introduce an allowance for new investments from March 1, 2026, Finance Minister Enoch Godongwana said in February in his budget.



This will allow producers to claim 150% of qualifying investment spending on electric and hydrogen-powered vehicles in the first year.



Ramaphosa added that the government is working to finalise comprehensive policy guidelines on so-called new energy vehicles &#8220;that do not exclude alternative technologies such as hybrids and plug-in hybrids&#8221;.



Last year, the minister for trade, industry and competition published a white paper outlining steps to support the transition such as government incentives and a temporary reduction on import duties for batteries in vehicles produced and sold in the domestic market.



The paper also advocated the production of batteries for battery electric vehicles in South Africa and the development of value chains in the green hydrogen fuel cell market.



&#8220;We are committed to working hand-in-hand with the private sector to promote the production of new energy vehicles and the development of the necessary infrastructure to support them,&#8221; Ramaphosa said.



($1 = 17.7422 rand)



(Reporting by Nqobile Dludla; Editing by Jan Harvey)

Cars are seen on display at a showroom, in Melrose

South Africa mulls tax rebates, subsidies to boost local EV industry

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-820x461.jpeg" alt="" class="wp-image-543281" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Christine Lagarde, president of the European Central Bank (ECB), left, and Wolfgang Proissl, director of general communications at the European Central Bank (ECB), at a rates decision news conference in Frankfurt, Germany, on Thursday, Sept. 12, 2024.  Bloomberg | Bloomberg | Getty Images</figcaption></figure>



The European Central Bank is widely expected to announce its third interest rate cut of the year at its Thursday meeting, after policymakers flagged reduced inflation risks and a weakening growth outlook.



Headline price rises in the euro area eased to 1.8% in September, coming in below the central bank’s 2% target for the first time in three years.



A cut on Thursday would see the ECB reducing rates at consecutive meetings for the first time since December 2011.



Expectations for a faster pace of monetary easing have built since the ECB’s Sept. 12 meeting, when market pricing suggested just one more rate cut this year, rather than the two priced in as of Thursday morning.



Along with the latest inflation print on Oct. 1, that shift in sentiment has come amid dovish comments from various ECB members. ECB President Christine Lagarde also swayed markets, when she said the latest data readings “strengthen our confidence that inflation will return to target in a timely manner.”



Another key factor is the euro zone growth outlook. The ECB trimmed its euro zone growth forecast for 2024 last month on the back of weaker domestic demand, now projecting an 0.8% GDP rise, compared with 0.9% previously. Some of its biggest economies continue to face major challenges, including manufacturing weakness in Germany and a huge fiscal consolidation project looming in France; while sentiment indicators remain weak.

108048848-1729142200339-gettyimages-2170767629-GERMANY_ECB

European Central Bank set for first back-to-back interest rate cut in 13 years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-820x553.jpg" alt="" class="wp-image-543225" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-1536x1037.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/DWCQX6GFJ5OCXGS5Z5ENXFGNQI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Deputy President Rigathi Gachagua speaks during a press conference, ahead of lawmakers&#8217; vote over his impeachment motion at his residence in Karen, Nairobi Kenya, October 7, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s Senate opened a second day of hearings on Thursday ahead of a vote on whether to remove Deputy President Rigathi Gachagua from office over charges he embezzled public funds, stirred ethnic hatred and undermined the government, which he denies.



The National Assembly voted last week to impeach Gachagua, who helped President William Ruto win an election two years ago but has been assailed by allies of the president over alleged disloyalty and a series of provocative public comments.



Ruto has not commented on the impeachment process, while Gachagua has called it a political lynching based on falsehoods.



If two-thirds of senators back the motion in a vote scheduled for Thursday evening, Gachagua will become the first Kenyan president or deputy president forced from office by impeachment, a process introduced under the 2010 constitution.



The second day of hearings is scheduled to include hours of testimony by Gachagua, who will respond to a litany of accusations laid out on Wednesday by a lawmaker from Ruto&#8217;s coalition.



The lawmaker, Mwengi Mutuse, said Gachagua had incited hatred in comments about ethnic minorities from his home region.



Mutuse also accused Gachagua of acquiring properties worth over $40 million since becoming deputy president, despite reporting a net worth before entering office of only around $6 million.



In response, Gachagua&#8217;s lawyer, Elisha Ongoya, said the allegations lacked evidence and were based on speculation.



Kenyan courts have declined to block the proceedings as Gachagua requested but have said they could review the legality of the process once it is completed.



The impeachment follows a realignment of Kenyan politics following mass street protests in June and July that forced Ruto to withdraw proposed tax hikes and shake up his cabinet.



Ruto appointed several allies of the main opposition leader Raila Odinga as ministers, a move that was seen as weakening Gachagua&#8217;s influence.



(Reporting by George Obulutsa and Sonia Rao; Editing by Aaron Ross and Christina Fincher)

Kenya’s Deputy President Rigathi Gachagua speaks during a press conference, ahead of lawmakers’ vote over his impeachment motion at his residence in Karen, Nairobi

Kenya’s Senate to vote on removal of deputy president

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-820x461.jpeg" alt="" class="wp-image-543173" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">09 March 2024, China, Peking: Ni Hong (r.), China’s Minister of Housing and Rural Development, speaks at a press conference.  Johannes Neudecker | Picture Alliance | Getty Images</figcaption></figure>



China will expand its “whitelist” of real estate projects and speed up bank lending for these unfinished developments to 4 trillion yuan ($561.8 billion) by the end of the year, the country’s housing ministry said Thursday.



Ni Hong, China’s minister of housing and urban-rural development, made the announcement at a press conference, alongside officials from the central bank, finance ministry and the National Financial Regulatory Administration.



A total of 2.23 trillion yuan had already been approved in loans to whitelisted developers. That figure will almost double to 4 trillion yuan by the end of 2024, according to a senior official from the financial regulatory administration.



Launched in January, China’s “whitelist” initiative allows city governments to recommend residential projects to banks for speedier lending. The intent was to ensure the completion of unfinished housing projects so they could finally be delivered to buyers.



All commercial housing projects are now eligible for the “whitelist” project, Xiao Yuanqi, vice minister of the administration said Thursday. The move is expected to broaden the list.



Xiao also stressed that banks should deploy funds “as soon as possible,” saying they could release the loans in full to developers rather than in tranches, according to CNBC’s translation of the Chinese.



The briefing was the latest in a series of high-level government policy announcements aimed at bolstering the economy.



In late September, Pan Gongsheng, the People Bank of China governor announced a 50 basis-point cut to the amount of cash banks need to have on hand, known as the reserve requirement ratio or RRR. He also lowered the minimum down payment for second-home loans nationwide from 25 percent to 15 percent.



Days later, officials in a top-level meeting, chaired by Chinese president Xi Jinping, pledged to “halt the real estate market decline and spur a stable recovery.”



<h3 class="wp-block-heading" id="h-disappointing-briefing">Disappointing briefing?</h3>



The officials on Thursday’s briefing appeared to be mostly “fine-tuning existing policies,” Bruce Pang, chief economist and head of research of Greater China at JLL, said. “It will take time for the improvement on sales volumes and prices to be translated into property investment and construction.”&nbsp;



Some investors saw the recent flurry of activity as a sign that Beijing was finally ready to take drastic measures to stimulate growth, and they had hoped for more stimulus measures from the briefing. As Xiao was speaking, Chinese CSI 300 real estate index dropped over 5%, in a sharp turnaround from gains of around 8.7% in the previous three trading sessions.



Volatility in the Chinese stock market is likely to continue as investors “lack conviction that the stimulus package and what’s been announced is going to turn around things,” said Chi Lo, senior economist at BNP Paribas Asset Management.



Over the weekend, officials from China’s Ministry of Finance announced that they would allow local governments to issue more special bonds for land purchases and allow affordable housing subsidies to be used for existing housing inventory, instead of only new construction.



Chinese property stocks soared on Monday off the news, with the Hang Seng Mainland Properties Index rising over 2%. Real estate was also the leading gainer in Mainland China’s CSI 300, advancing by nearly 5%.



From its peak in 2020, the HSMPI has lost more than 80%. In May, Ni told reporters at a press conference that developers “that must go bankrupt, should go bankrupt, or be restructured.”



<h3 class="wp-block-heading">Real estate slump</h3>



More than 50 cities across China have introduced policies to boost the real estate market, according to state media, citing the housing ministry.



Ahead of the Golden Week holiday, the city of Guangzhou announced it will remove all&nbsp;restrictions on home purchases. Meanwhile the governments of Beijing, Shanghai, Shenzhen moved to ease homebuying restrictions by non-local buyers and lowered the minimum down-payment ratios.



The slew of measures came after China’s previous measures had led to little meaningful rebounds. New home prices in August dropped at the fastest pace in more than nine years, according to the National Bureau of Statistics data.



The value of new homes sold fell by 23.6% for the year through August, slightly better than the 24.3% drop year-to-date as of July. Average home prices fell by 6.8% in August from the prior month on a seasonally adjusted basis, according to Goldman Sachs.



The real estate sector — once accounted for more than a quarter of China’s economy — had been in a painful downturn since 2021, when Beijing launched a crackdown on the sector’s high debt levels, sending a slew of developers to default on their debts and leave many housing projects unfinished. That had severely dampened homebuyers confidence in the market.



— CNBC’s Evelyn Cheng contributed to this story.

108048818-1729133179349-gettyimages-2061912118-20090101240309-99-276079

China pledges more financial support for ‘whitelist’ real estate projects

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="604" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-820x604.jpg" alt="" class="wp-image-542944" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-820x604.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-300x221.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-768x566.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-1536x1131.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YDJE2WKUFZKPZBHQDZIBXPBFEA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Daniel Chapo, presidential candidate of the ruling Frelimo party casts his vote during the general elections at Inhambane, in the southern Mozambique, October 9, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



MAPUTO, Oct 16 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s ruling party Frelimo was leading provisional election results in all 11 provinces on Wednesday, while opposition parties cried fraud and one called for a strike.



Frelimo&#8217;s presidential candidate Daniel Chapo was widely expected to win the Oct. 9 election. The party has governed Mozambique since 1975 and has been consistently accused of rigging elections, which it denies.



Full results are expected on Oct. 24.



Independent candidate Venancio Mondlane, seen as Chapo&#8217;s biggest challenger, said he was in the lead according to his own tally and called for a nationwide strike on Monday, Oct. 21.



&#8220;They (Frelimo) are not going to hand over power to anyone. They want to continue to control power, finance, business, oil, gas, diamonds, rubies,&#8221; Mondlane said in a video broadcast on his social media pages.



&#8220;To show that the people are actually ruling, we will paralyse all activity on Monday,&#8221; he said.



Presidential candidate Lutero Simango of the Democratic Movement of Mozambique, a small opposition party, said that he would challenge the results in court.



A Frelimo spokesperson did not immediately reply to a request for comment. In public remarks on Friday, Chapo called for people to remain calm while awaiting official results.



Election observers said the poll did not meet international standards for democratic elections. The International Republican Institute, a U.S.-based monitoring group, reported vote buying, intimidation, inflated voter rolls in Frelimo strongholds, limited transparency in result collation, and other issues.



&#8220;Once again, as a country, we held elections that&#8230; do not reflect, at least from what we have been observing, the will of the voters,&#8221; said Edson Cortez, director of the Centre for Public Integrity (CIP), a Mozambican NGO.



A spokesperson for the electoral commission declined to comment on those allegations.



Videos circulating on social media showed street protests in the northern city of Nampula on Wednesday. Reuters was not immediately able to verify the videos.



Mozambique police have opened fire on political protesters in the past, including after last year&#8217;s local elections, according to human rights groups.



(Reporting by Manuel Mucari, Additional reporting and writing by Nellie Peyton; Editing by William Maclean)

FILE PHOTO: Frelimo candidate Daniel Chapo casts his vote

Mozambique ruling party leads early election results as opposition cries foul

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1307" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-scaled.jpg" alt="" class="wp-image-542875" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HLM3LV46JRI7HOGTAZAZKEDYXM-1536x980.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A woman walks past an Africa-focused tech startup Jumia Technologies, pickup station in downtown central business district in Nairobi, Kenya November 16, 2021. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



JOHANNESBURG, Oct 16 (Reuters) &#8211; Africa-focused e-commerce retailer Jumia Technologies will close its South African online fashion retailer Zando and its Tunisian operations by the end of the year to sharpen its focus on its other markets, the CEO told Reuters.



Jumia is aggressively cutting costs to try to turn profitable, including by reducing head count, exiting everyday grocery items and food delivery and cutting delivery services not related to its e-commerce business.



&#8220;The trajectory of the countries did not align with the strategy of the group,&#8221; CEO Francis Dufay said, citing complex macroeconomics, the competitive environment and low medium term potential for growth and profitability.



&#8220;We believe it&#8217;s the right decision,&#8221; he added. &#8220;It enables us to refocus our resources on the other nine markets, where we see more promising trends in terms of scale and profitability.&#8221;



Jumia&#8217;s remaining markets include Egypt, Kenya, Morocco and Nigeria. Dufay said success in any would &#8220;easily enable us to recover&#8221; lost volumes from South Africa and Tunisia.



These two businesses accounted for only 2.7% of total orders and 3% of Gross Merchandise Value in the six months ended June 30, Dufay said.



Zando.co.za was founded in 2012 and since then has grown to become a well-known South African online fashion platform. In Tunisia, the business has been operating under the Jumia brand for a decade, selling general merchandise.



Dufay said he was not planning to sell either operation, which will hold clearance sales before shutting.



The closures mean axing about 110 jobs, Dufay said, but some may be relocated to other parts of the group&#8217;s business.



The exit in South Africa follows shortly after the country&#8217;s biggest online retail group Takealot announced the sale of its online fashion business Superbalist in September, amid increasing competition from fast-fashion Chinese e-commerce retailers Shein and Temu.



Dufay said in South Africa &#8220;growth potential was definitely more difficult&#8221; because of the highly competitive environment.



(Reporting by Nqobile Dludla; Editing Tim Cocks and Barbara Lewis)

FILE PHOTO: A woman walks past a Jumia Technologies, pickup station in downtown Nairobi

African online retailer Jumia to exit South Africa and Tunisia

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="789" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1.jpg" alt="" class="wp-image-542871" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1.jpg 1200w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-768x505.jpg 768w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /><figcaption class="wp-element-caption">A logo of the Bank of Namibia is seen at the company&#8217;s headquarters in Windhoek, Namibia, February 24, 2017. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



WINDHOEK, Oct 16 (Reuters)&nbsp;&#8211;&nbsp;Namibia&#8217;s central bank cut its main interest rate&nbsp;for the second meeting in a row on Wednesday, saying inflation had fallen surprisingly quickly and that the economy needed more support.



Its Monetary Policy Committee (MPC) unanimously decided to cut the repo rate by 25 basis points to 7.25%, the same size of cut as at August&#8217;s meeting.



&#8220;The MPC noted the growing momentum in the international monetary policy easing cycle, the retreat in domestic inflation over the medium term, along with the recent downside surprise in the September 2024 inflation print,&#8221; Bank of Namibia Governor Johannes !Gawaxab said in a statement accompanying the decision.



Annual inflation in the southern African country fell to 3.4% in September, a steep drop from the 4.4% posted in August.



The central bank on Wednesday revised down its average inflation forecast for this year to 4.3%, versus a 4.7% forecast given at its last meeting.



It attributed the revision to a more favourable outlook for international oil prices and a stronger domestic exchange rate.



The bank said private sector credit extension remained subdued, suggesting that further support to the domestic economy was warranted.



&#8220;The domestic economy, while growing at a moderate pace, was operating below full capacity,&#8221; !Gawaxab said.



Growth is projected to slow to 3.1% in 2024, compared to 4.2% in 2023.



On a $750 million Eurobond redemption due in late 2025, the central bank governor said Namibia had already set aside 82% of the $500 million it wants to retire at maturity. The government still hopes to refinance the remaining $250 million, !Gawaxab said.



(Writing by Tannur Anders; Editing by Alexander Winning and Gareth Jones)

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featured

Here’s why inflation may look like it’s easing but is still a huge problem

China cuts benchmark lending rates by 25 basis points

Tanzania building grid interconnector with Zambia to help mitigate power crisis

World Bank’s Banga says more bilateral, commercial debt forgiveness needed

Putin says BRICS will generate most of global economic growth

Kenyan court blocks deputy president appointment hours after Ruto picks ally

Kenya senate votes to remove deputy president from office by impeachment

China reports third-quarter GDP growth of 4.6%, slightly beating expectations

World Bank’s Banga says more bilateral debt forgiveness needed

Nigeria seeing positive results from fiscal reforms, World Bank says

South Africa mulls tax rebates, subsidies to boost local EV industry

European Central Bank set for first back-to-back interest rate cut in 13 years

Kenya’s Senate to vote on removal of deputy president

China pledges more financial support for ‘whitelist’ real estate projects

Mozambique ruling party leads early election results as opposition cries foul

African online retailer Jumia to exit South Africa and Tunisia

Namibia central bank cuts key rate again to help growth

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